ThZeal - The Zeal

ANNUITY INVESTORS LIFE INSURANCE COMPANY^{^®}
ANNUITY INVESTORS^® VARIABLE ACCOUNT B

THE COMMODORE INDEPENDENCE^{^®}
INDIVIDUAL AND GROUP FLEXIBLE PREMIUM DEFERRED ANNUITIES
PROSPECTUS DATED MAY 1, 2007

This prospectus describes individual and group flexible premium deferred annuity contracts. The individual contracts and interests in the group contracts are referred to in this prospectus as the “Contracts.” Annuity Investors Life Insurance Company^® (the “Company”) is the issuer of the Contracts. The Contracts are available for tax-qualified and non-tax-qualified annuity purchases. The Contracts offer tax-deferred treatment of earnings, Annuity Benefits, and a Death Benefit. The tax treatment of annuities is discussed in the Federal Tax Matters section of this prospectus. The Contracts offer both variable and fixed investment options.

The variable investment options are Subaccounts of Annuity Investors^® Variable Account B (the “Separate Account”). The Contracts currently offer 46 Subaccounts. Each Subaccount invests in shares of a registered investment company or a portfolio of a registered investment company (each, a “Portfolio”). The Portfolios are listed below.


AIM Variable Insurance Funds		Financial Investors Variable Insurance Trust
-AIM V.I. Capital Development Fund-Series I Shares		-Ibbotson Balanced ETF Asset Allocation Portfolio-Class II
-AIM V.I. Core Equity Fund-Series I Shares		-Ibbotson Conservative ETF Asset Allocation Portfolio-Class II
-AIM V.I. Financial Services Fund-Series I Shares		-Ibbotson Growth ETF Asset Allocation Portfolio-Class II
-AIM V.I. Global Health Care Fund -Series I Shares -AIM V.I. High Yield Fund-Series I Shares -AIM V.I. Small Cap Equity Fund-Series I Shares		-Ibbotson Income /Growth ETF Asset Allocation Portfolio-Class II Franklin Templeton Variable Insurance Products Trust -Templeton Foreign Securities Fund-Class 2
American Century Variable Portfolios
-American Century VP Large Company Value Fund-Class I		Janus Aspen Series
-American Century VP Mid Cap Value Fund-Class I		-Janus Aspen Series Balanced Portfolio-Institutional Shares
-American Century VP Ultra^â Fund-Class I		-Janus Aspen Series Forty Portfolio-Institutional Shares
-American Century VP Vista ^SM Fund-Class I		-Janus Aspen Series International Growth Portfolio-Inst. Shares
		-Janus Aspen Series Large Cap Growth Portfolio-Inst. Shares
Calamos^® Advisors Trust		-Janus Aspen Series Mid Cap Growth Portfolio-Inst. Shares
-Calamos Growth and Income Portfolio
		Oppenheimer Variable Account Funds
Davis Variable Account Fund, Inc.		-Oppenheimer Balanced Fund/VA-Non-Service Shares
-Davis Value Portfolio		-Oppenheimer Capital Appreciation Fund/VA-NS Shares
		-Oppenheimer Main Street Fund^®/VA-Non-Service Shares
The Dreyfus Socially Responsible Growth Fund, Inc. -Initial Shares
		PIMCO Variable Insurance Trust
Dreyfus Stock Index Fund, Inc.-Initial Shares		-PIMCO VIT Real Return Portfolio-Administrative Class
		-PIMCO VIT Total Return Portfolio-Administrative Class
Dreyfus Investment Portfolios
-Dreyfus IP MidCap Stock Portfolio-Service Shares		Van Kampen-The Universal Institutional Funds, Inc.
-Dreyfus IP Technology Growth Portfolio-Initial Shares		-Van Kampen UIF Core Plus Fixed Income Portfolio-Class I
		-Van Kampen UIF Mid-Cap Growth Portfolio-Class I
Dreyfus Variable Investment Funds		-Van Kampen UIF U.S. Mid Cap Value Portfolio-Class I
-Dreyfus VIF Appreciation Portfolio-Initial Shares		-Van Kampen UIF U.S. Real Estate Portfolio-Class I
-Dreyfus VIF Developing Leaders Portfolio-Initial Shares		-Van Kampen UIF Value Portfolio-Class I
-Dreyfus VIF Growth and Income Portfolio-Initial Shares
-Dreyfus VIF Money Market Portfolio		Wilshire Variable Insurance Trust
		-Wilshire 2010 Moderate Fund
DWS Investments VIT Funds		-Wilshire 2015 Moderate Fund
-DWS Small Cap Index VIP-Class A		-Wilshire 2025 Moderate Fund
		-Wilshire 2035 Moderate Fund
		-Wilshire 2045 Moderate Fund

The fixed investment options are provided through the Company’s Fixed Account. The Contracts currently offer 2 fixed investment options: the Fixed Accumulation Account option and the Fixed Account One-Year Guarantee option. This prospectus includes information you should know before investing in the Contracts. This prospectus is not complete without the current prospectuses for the Portfolios. Please keep this prospectus and the Portfolio prospectuses for future reference.

A Statement of Additional Information (“SAI”), dated May 1, 2007, contains more information about the Separate Account and the Contracts. The SAI is part of this prospectus. The table of contents for the SAI is printed on the last page of this prospectus. For a free copy of the SAI, complete and return the form on the last page of this prospectus, or call us at 1-800-789-6771. You may also access the SAI (as well as all other documents filed with the Securities and Exchange Commission (“SEC”) with respect to the Contracts, the Separate Account or the Company) at the SEC’s web site: www.sec.gov. The registration number for the Contracts is 333-51955.

NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

These securities may be sold by a bank or credit union, but are not financial institution products.

•

The Contracts are not FDIC or NCUSIF insured.

•

The Contracts are obligations of the Company and not of the bank or credit union.

•

The bank or credit union does not guarantee the Company’s obligations under the Contracts.

•

The Contracts involve investment risk and may lose value.

This prospectus relates to 2 versions of The Commodore Independence contract—the 2007 version and the 1998 version.

The 2007 version is not available in all states. To find out which version of the Contract is available in the state where you live, contact us at our Administrative Office, P.O. Box 5423, Cincinnati, OH 45201-5423, 1-800-789-6771.

Some provisions in the 2007 version differ from the corresponding provisions in the 1998 version. We have noted these differences in this prospectus. Please refer to the form number on your Contract or certificate to determine the applicable Contract version.


2007 Version Form Numbers		1998 Version Form Numbers
P 1813206 (individual contract)		A 802 (NQ98)-3 and A 802 (Q98)-3 (individual contracts)
G 2010407 (group contract)		G 802 (99)-3 (group contract)
C 2010507 (participant certificate )		G 802 (99)-3 (participant certificate)

For assistance in identifying the version of the Contract that you own or the group Contract under which you are a participant, contact us at our Administrative Office, P.O. Box 5423, Cincinnati OH 45201-5423, 1-800-789-6771.

TABLE OF CONTENTS


DEFINITIONS			1
EXPENSE TABLES			4
Contract Owner Transaction Expenses			4

Annual Contract Maintenance Fee			4

Separate Account Annual Expenses			4

Total Annual Portfolio Operating Expenses			4

Examples			5

FINANCIAL INFORMATION			6
Condensed Financial Information			6

Financial Statements			6

OVERVIEW			6
What is the Separate Account?			6

What Are the Contracts?			6

How Do I Purchase or Cancel a Contract?			6

Will Any Charges or Penalties Apply if I Make Withdrawals or Surrender a Contract?			7


What Other Charges and Deductions Apply to the Contract?			7

How Do I Contact the Company?			7

THE PORTFOLIOS			8
Portfolios			8

Additions or Substitutions of Portfolios			11

CHARGES AND DEDUCTIONS			12
Charges and Deductions by the Company			12

Contract Maintenance Fee			12
Transfer Fee			12
Administration Charge			13
Mortality and Expense Risk Charge			13
Premium Taxes			13
Discretionary Waivers of Charges			13
Expenses of the Portfolios			13

PURCHASE PAYMENTS AND ALLOCATIONS TO INVESTMENT OPTIONS			14
Purchase Payments			14

Current Restrictions on Purchase Payment Amounts			14
Allocations to Investment Options			15
Additional Information about Fixed Account Options			15
Current Restrictions on Allocations			15
Renewal of Fixed Account One-Year Guarantee Period Option			16

TRANSFERS			17
Transfers			17

Current Restrictions on Transfers			17
Maximum transfer amounts			17
Automatic Transfer Programs			17
How to Request a Transfer			18
Changes in or Termination of Automatic Transfer Programs			19
Transfer Restrictions Related to Active Trading Strategies			19

WITHDRAWALS AND SURRENDERS			20
Restrictions and Charges on Withdrawals and Surrenders			20
Deferral of Payment			21
Systematic Withdrawal			21
CONTRACT LOANS			21
TERMINATION			22

iii


OTHER INFORMATION
Reports and Confirmations			22
			22
Householding			22

Electronic Delivery of Required Documents			22

Voting of Portfolio Shares			22

ANNUITY BENEFIT			23
Annuity Benefit			23

Annuity Commencement Date			23
Form of Annuity Benefit			24
Person Who Receives Annuity Benefit Payments			24

DEATH BENEFIT			25
Death Benefit			25

Death Benefit Amount			25
Example of Determination of Death Benefit Amount			26
Death Benefit Commencement Date			26
Allocations and Transfers of Death Benefit Amount			26
Form of Death Benefit			27
Application of a Death Benefit to a Settlement Option			27
Person Who Receives Death Benefit Payments			28
Step Up in Account Value for Successor Owner			28

SETTLEMENT OPTIONS			29
Settlement Options			29

Payments under Settlement Options			29
Considerations in Selecting a Settlement Option			30

THE CONTRACTS			30
Right to Cancel			30

Ownership Provisions			31

Owner			31
Successor Owner			31
Joint Owners			31
Transfer of Ownership			31
Assignment			31
Annuitant Provisions			32

Annuitant			32
Beneficiary Provisions			32

Payees under the Contract			33

Payees			33
Designation of Other Payees			33

ANNUITY INVESTORS LIFE INSURANCE COMPANY^®			34


THE SEPARATE ACCOUNT			34
DISTRIBUTION OF VARIABLE ANNUITY CONTRACTS			35
FEDERAL TAX MATTERS			36
Tax Deferral on Annuities			36

Tax-Qualified Retirement Plans			36

Individual Retirement Annuities			36
Roth IRAs			37
Tax-Sheltered Annuities			37
Texas Optional Retirement Program			37
Pension, Profit—Sharing, and 401(k) Plans			37
Roth TSAs and Roth 401(k)s			37
Governmental Deferred Compensation Plans			37
Nonqualified Deferred Compensation Plans			37

Summary of Income Tax Rules			38

CALCULATION OF BENEFIT PAYMENTS			39
Fixed Dollar Payments			39

Variable Dollar Payments			39

GLOSSARY OF FINANCIAL TERMS			40
Account Value			40

Accumulation Units			40

PERFORMANCE INFORMATION			42
Yield Data			42

Total Return Data			42

Other Performance Measures			42

THE REGISTRATION STATEMENT			43
STATEMENT OF ADDITIONAL INFORMATION			44
APPENDIX A: CONDENSED FINANCIAL INFORMATION			45
APPENDIX B: PORTFOLIOS			56
AIM Variable Insurance Funds			56

American Century Variable Portfolios, Inc.			57

Calamos^® Advisors Trust			58

Davis Variable Account Fund, Inc.			58

Dreyfus Portfolios			58

DWS Investments VIT Funds⁽¹⁾			59

Financial Investors Variable Insurance Trust			60

Franklin Templeton Variable Insurance Products Trust			60

Janus Aspen Series			61

Oppenheimer Variable Account Funds			62

PIMCO Variable Insurance Trust			62

Van Kampen-The Universal Institutional Funds, Inc.			62

Wilshire Variable Insurance Trust			63

APPENDIX C: TRANSFER RESTRICTIONS			65
Restrictions on Transfers; Disruptive Trading, Market Timing and Frequent Transfers			65

U.S. Mail Restrictions on Persons Engaged in Harmful Trading Practices			65
U.S Mail Restrictions on Managers of Multiple Contracts			65
Other Restrictions			66

DEFINITIONS

The capitalized terms defined on this page will have the meanings given to them when used in this prospectus. Other terms that have a specific meaning under the Contracts, but which are not defined on this page, will be explained as they are used in this prospectus.

Account Value

The aggregate value of your interest in all of the Subaccounts and the Fixed Account options as of the end of any Valuation Period.

Accumulation Unit

A unit of measure used to calculate the value of a Subaccount before the Commencement Date. The value of an Accumulation Unit is referred to as the “Accumulation Unit Value.” See the Glossary of Financial Terms section of this prospectus for an explanation of how Accumulation Unit Values are calculated.

Annuitant

The natural person on whose life Annuity Benefit payments are based. More information about the Annuitant is included in the Contracts section of this prospectus.

Annuity Benefit

The payments that may be made under the Annuity Benefit section of the Contract.

Beneficiary

The person entitled to receive any Death Benefit under this Contract. More information about the Beneficiary is included in the Contract section of the prospectus.

Benefit Unit

A unit of measure used to determine the dollar value of any variable dollar payments after the Commencement Date. The value of a Benefit Unit is referred to as the “Benefit Unit Value.” See the Calculation of Benefit Payments and the Glossary of Financial Terms section of this prospectus for additional information about Benefit Units and an explanation of how Benefit Unit Values are calculated.

Contract Anniversary

The date in each year that is the annual anniversary of the Contract effective date. The Contract effective date is the date that the Contract is issued. The Contract effective date is set out on the Contract specifications page.

Contract Year

Each 12 month period that begins on the Contract effective date or on a Contract Anniversary.

Company

Annuity Investors Life Insurance Company^®.

The words “we” “us” and “our” in this prospectus also refer to Annuity Investors Life Insurance Company^®.

Commencement Date

The Annuity Commencement Date if an Annuity Benefit is payable or the Death Benefit Commencement Date if a Death Benefit is payable.

•

The Annuity Commencement Date is the first day of the first payment interval for which an Annuity Benefit payment is to be made. The Annuity Commencement Date is shown on the Contract specifications page.

•

The Death Benefit Commencement Date is (1) the first day of the first payment interval for a Death Benefit that is paid as periodic payments or (2) the date of payment for a Death Benefit that is paid as a lump sum.

Contract

An individual contract or interest in a group contract described in this prospectus.

Death Benefit

The benefit described in the Death Benefit section of the Contract.

Fixed Account

The Fixed Account is part of the Company’s general account. The Fixed Account options are listed in the “Allocations to Investment Options” section of this prospectus.

Owner

For purposes of this prospectus, references to Owner mean (1) the owner of an individual annuity contract or (2) the participant in a group annuity contract (even though the participant is not the owner of the group contract itself).

The words “you” and “your” in this prospectus also refer to the Owner as defined above.

Portfolio

A registered investment company or a portfolio of a registered investment company in which the corresponding Subaccount invests. The Portfolios are listed on the cover page of this prospectus.

Purchase Payments

An amount paid to us for this Contract, less any fee charged by the person remitting payments and the deduction of applicable premium or other taxes.

Separate Account

Annuity Investors Variable Account B, which is an account that was established and is maintained by the Company.

Subaccount

A subdivision of the Separate Account. Each Subaccount invests in the shares of the corresponding Portfolio listed on the cover page of this Prospectus.

SEC

Securities and Exchange Commission.

Tax Qualified Contract

A contract that is intended to qualify for special tax treatment for retirement savings. The Contract specifications page indicates whether this Contract is a Tax-Qualified Contract.

Valuation Date

Each day on which the New York Stock Exchange is open for business.

Valuation Period

The period starting at the close of regular trading on the New York Stock Exchange on any Valuation Date and ending at the close of trading on the next succeeding Valuation Date.

Written Request

Information provided to us or a request made to us that is:

•		complete and satisfactory to us and

•		on our form or in a manner satisfactory to us and

•		received by us at our Administrative Office, P.O. Box 5423, Cincinnati, Ohio 45201-5423.

A Written Request may, at our discretion, be made by telephone or electronic means.

We will treat a Written Request as a standing order. It may be modified or revoked only by a subsequent Written Request, when permitted by the terms of the Contract. A Written Request is subject to (1) any payment that we make before we acknowledge the Written Request and (2) any other action that we take before we acknowledge the Written Request.

EXPENSE TABLES

These tables describe the fees and expenses you will pay when you buy or hold the Contract. No charges are imposed when you withdraw amounts from or surrender the Contract.

The first table describes the fees and expenses that you will pay at the time you buy the Contract, make a transfer between investment options, or borrow money under the Contract. Premium taxes may also be deducted.

Contract Owner Transaction Expenses


	Current			Maximum
Sales load imposed on Purchase Payments	None			None
Sales load imposed on withdrawals or on surrenders	None			None
Transfer Fee	$	25	*	$	30
Automatic Transfer Program Fee	None			$	30
Systematic Withdrawal Fee	None			$	30


*		This fee currently applies to transfers in excess of 12 in any Contract Year.


Loan Interest Spread**			3.00	%


**		The Loan Interest Spread is the difference between the amount of interest we charge you for a loan and the amount of interest we credit to that portion of the Contract used to secure the loan.

The next table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including Portfolio fees and expenses.

Annual Contract Maintenance Fee


Annual Contract Maintenance Fee		$	40

Separate Account Annual Expenses

Separate Account annual expenses are shown as a percentage of the average value of the Owner’s interest in the Subaccounts.


									Enhanced Contracts
	Standard								With Administration
	Contracts			Enhanced Contracts*					Charge Waived*
Mortality and Expense Risk Charge		1.25	%		0.95	%	0.75	%		0.95	%	0.75	%
Administration Charge		0.15	%		0.15	%	0.15	%		0.00	%	0.00	%

Total Separate Account Annual Expenses		1.40	%		1.10	%	0.90	%		0.95	%	0.75	%


*		When we expect to incur reduced sales and servicing expenses, we may issue a Contract with a reduced mortality and expense risk charge. These Contracts are referred to as “Enhanced Contracts.” When we also expect to incur reduced administrative expenses, we may waive the Administration Charge for Enhanced Contracts.

The next table shows the minimum and maximum total operating expenses of the Portfolios that you may pay periodically during the time that you own the Contract. Portfolio operating expenses are deducted from Portfolio assets and include management fees, distribution and service (12b-1) fees, acquired fund fees and expenses, and other expenses. More detail concerning each Portfolio’s fees and expenses is contained in the prospectus of that Portfolio.

Total Annual Portfolio Operating Expenses

(expenses that are deducted from Portfolio assets, including management fees, distribution and service (12b-1) fees, acquired fund fees and expenses, and other expenses)


	Minimum			Maximum
Before any fee reduction or expense reimbursement		0.27	%		10.73	%
After contractual fee reductions and/or expense reimbursements		0.27	%		1.67	%

The information about Portfolio expenses that we used to prepare this table was provided to us by the Portfolios. We have not independently verified the Portfolio expense information. The minimum and maximum expenses shown in the table are for the year ended December 31, 2006, except as noted below. Actual expenses of a Portfolio in future years may be higher or lower.

The maximum expenses shown in the table are the expenses of the Wilshire 2045 Moderate Fund (the “Wilshire Fund”). The Wilshire Fund is structured as a “fund of funds” and invests in other investment companies (the “Acquired Funds”). As a result, the Wilshire Fund will likely incur higher expenses than funds that invest directly in securities. The expenses shown in the table for the Wilshire Fund include fees and expenses of the Acquired Funds. The Wilshire Fund’s expenses before any reduction or reimbursement reflect the small asset base of the Wilshire Fund, which commenced operations on May 1, 2006. The Wilshire Fund’s expenses after reductions and/or reimbursements reflect that (1) its adviser has contractually agreed to waive management fees and/or reimburse expenses through April 30, 2008, so that the Wilshire Fund’s expenses, excluding the fees and expenses of the Acquired Funds will not exceed 0.50% and (2) two components (other expenses and expense reimbursements) of the Wilshire Fund’s total expenses were calculated as of April 10, 2007 to reflect asset growth in the Wilshire Fund since December 31, 2006.

Examples

These examples are intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. These costs include the Contract Owner transaction expenses (described in the first table above), the annual contract maintenance fee and the Separate Account annual expenses (described in the second table above), and Portfolio operating expenses (described in the third table above). Your actual costs may be higher or lower than the costs shown in the examples.

Assumptions

•

You invest $10,000 in the Contract for the periods indicated and your investment has a 5% return each year.

•

The annual contract maintenance fee of $40 and Separate Account annual expenses of 1.40% are incurred.

•

The maximum Portfolio expenses before reimbursement (10.73%) or after reimbursement (1.67%) are incurred or the minimum Portfolio expenses (0.27%) are incurred.

•

Table #1 assumes that you surrender your Contract at the end of the indicated period.

•

Table #2 assumes that you annuitize your Contract at the end of the indicated period or you keep your Contract and leave your money in your Contract for the entire period.

(1) If you surrender your Contract at the end of the period:


	1 year		3 years		5 years		10 years
Maximum portfolio expenses before reimbursement	$	1,189	$	3,511	$	5,787	$	11,476
Maximum portfolio expenses after reimbursement	$	355	$	1,133	$	2,011	$	4,713
Minimum portfolio expenses	$	213	$	686	$	1,230	$	2,955

(2) If you annuitize your Contract at the end of the period or keep your Contract for the entire period:


	1 year		3 years		5 years		10 years
Maximum portfolio expenses before reimbursement	$	1,189	$	3,511	$	5,787	$	11,476
Maximum portfolio expenses after reimbursement	$	355	$	1,133	$	2,011	$	4,713
Minimum portfolio expenses	$	213	$	686	$	1,230	$	2,955

OVERVIEW

What is the Separate Account?

The Separate Account is an account that was established and is maintained by the Company. It is a unit investment trust registered with the SEC under the Investment Company Act of 1940. The Separate Account is divided into Subaccounts. Each Subaccount invests in shares of the corresponding Portfolio listed on the cover page of this prospectus. If you choose a variable investment option, you are investing in a Subaccount, not directly in the corresponding Portfolio.

What Are the Contracts?

The Contracts are individual and group deferred annuities, which are insurance products. The Contracts are sold with either a standard or an enhanced fee structure, as described in the Expense Tables of this prospectus.

The Contracts are available in both tax-qualified and non-tax-qualified forms, both of which are designed to be eligible for tax-deferred investment status. See the Federal Tax Matters section of this prospectus for more information about tax qualifications and taxation of annuities in general.

Before the Commencement Date, you can allocate Purchase Payments among any of the variable investment options currently offered and two Fixed Account options.

•

The variable investment options are the Subaccounts. Each Subaccount invests in a Portfolio. You bear the risk of any investment gain or loss on amounts allocated to the Subaccounts.

•

The Fixed Account options earn a fixed rate of interest declared by us, which will be at least 3% per year. We guarantee amounts invested in a Fixed Account option and the earnings on those amounts so long as those amounts remain in the Fixed Account option.

After the Commencement Date, payments can be allocated between variable dollar benefit and fixed dollar benefit options. If a variable dollar benefit option is selected, Benefit Units can be allocated to any of the Subaccounts that are then available.

How Do I Purchase or Cancel a Contract?

The requirements to purchase a Contract are explained in The Contracts section of this prospectus. You may purchase a Contract only through a registered securities representative.

You may cancel a Contract within 20 days after you receive it. The right to cancel may be longer in some states. In many states, you will bear the risk of investment gain or loss on any amounts allocated to the Subaccounts prior to cancellation. The right to cancel may not apply to group Contracts. The right to cancel is described more fully in the Right to Cancel section of this prospectus.

Will Any Charges or Penalties Apply if I Make Withdrawals or Surrender a Contract?

There are no charges imposed on withdrawals from the Contracts or surrenders of the Contracts, except that the annual Contract maintenance fee will be deducted at the time of a surrender. Withdrawal and surrender procedures are described in the Withdrawals and Surrenders section of this prospectus.

A penalty tax may be imposed at the time of a withdrawal or a surrender depending on your age and other circumstances. Tax consequences of a withdrawal or a surrender are described in the Federal Tax Matters section of this prospectus. The right to withdraw or surrender may be restricted under certain tax-qualified retirement plans.

What Other Charges and Deductions Apply to the Contract?

We will charge the fees and charges listed below unless we reduce or waive the fee or charge as discussed in the Charges and Deductions section of this prospectus. The mortality and expense risk charge may never be entirely waived.

•

An annual Contract maintenance fee, which is assessed only against investments in the Subaccounts

•

A transfer fee for certain transfers among investment options

•

An administration charge, which is an expense of the Separate Account and charged against all assets in the Subaccounts

•

A mortality and expense risk charge, which is an expense of the Separate Account and charged against all assets in the Subaccounts

•

Premium taxes, if any

In addition to charges and deductions under the Contracts, the Portfolios incur expenses that are passed through to you. Portfolio expenses for the fiscal year ended December 31, 2006 are described in the prospectuses and statements of additional information for the Portfolios.

How Do I Contact the Company?

Any questions or inquiries should be directed to our Administrative Office, P.O. Box 5423, Cincinnati, Ohio 45201-5423, 1-800-789-6771. Please include the Contract number and your name. You may also contact us through our web site, www.gafri.com.

THE PORTFOLIOS

Portfolios

The Separate Account currently is divided into 46 Subaccounts.. Each Subaccount invests in the corresponding Portfolio listed below. The current Portfolio prospectuses, which accompany this prospectus, contain additional information concerning the investment objectives, policies and practices of each Portfolio, the investment advisory services and administrative services of each Portfolio, and the expenses of each Portfolio.

You should read the Portfolio prospectuses carefully before making any decision concerning the allocation of Purchase Payments to, or transfers among, the Subaccounts.

There is no assurance that the Portfolios will achieve their stated objectives. The SEC does not supervise the management or the investment policies and/or practices of any of the Portfolios.

All dividends and capital gains distributed by the Portfolios are reinvested in the Separate Account and reflected in Accumulation Unit Values. Portfolio dividends and net capital gains are not distributed to Owners.

The Portfolios are available only through insurance company separate accounts and certain qualified retirement plans. Though a Portfolio may have a name and/or investment objectives that are similar to those of a publicly available mutual fund, and/or may be managed by the same investment advisor that manages a publicly available mutual fund, the performance of the Portfolio is entirely independent of the performance of any publicly available mutual fund. Neither the Company nor the Portfolios make any representations or assurances that the investment performance of any Portfolio will be the same or similar to the investment performance of any publicly available mutual fund.


Portfolio
AIM Variable Insurance Funds		Adviser and Type of Fund
AIM V.I. Capital Development Fund		A I M Advisors, Inc.
Series I Shares		Mid cap growth
AIM V.I. Core Equity Fund		A I M Advisors, Inc.
Series I Shares		Large cap blend
AIM V.I. Financial Services Fund		A I M Advisors, Inc.
Series I Shares		Sector
AIM V.I. Global Health Care Fund		A I M Advisors, Inc.
Series I Shares		Sector
AIM V.I. High Yield Fund		A I M Advisors, Inc.
Series I Shares		High yield bond
AIM V.I. Small Cap Equity Fund		A I M Advisors, Inc.
Series I Shares		Small cap blend

American Century Variable Portfolios, Inc.

American Century VP Large Company Value Fund		American Century Investment Management, Inc.
Class I Shares		Large cap value
American Century VP Mid Cap Value Fund		American Century Investment Management, Inc.
Class I Shares		Mid cap value
American Century VP Ultra^â Fund		American Century Investment Management, Inc.
Class I Shares		Large cap growth
American Century VP Vista^SMFund		American Century Investment Management, Inc.
Class I Shares		Mid cap growth

Calamos^â Advisors Trust

Calamos Growth and Income Portfolio		Calamos Advisors LLC
		Convertibles


Portfolio
AIM Variable Insurance Funds		Adviser and Type of Fund
Davis Variable Account Fund, Inc.
Davis Value Portfolio		Davis Selected Advisers, L.P.
		Sub-Adviser--Davis Selected Advisers-NY, Inc.
		Large cap blend

Dreyfus Portfolios

Dreyfus Investment Portfolios MidCap Stock Portfolio		The Dreyfus Corporation
Service Shares		Mid cap blend
Dreyfus Investment Portfolio Technology Growth Portfolio		The Dreyfus Corporation
Initial Shares		Sector
The Dreyfus Socially Responsible Growth Fund, Inc.		The Dreyfus Corporation
Initial Shares		Large cap growth
		The Dreyfus Corporation
		Index Manager--Mellon Equity Associates (an
Dreyfus Stock Index Fund, Inc.		affiliate of Dreyfus)
Initial Shares		Large cap blend
		The Dreyfus Corporation
Dreyfus Variable Investment Fund Appreciation Portfolio		Sub-Adviser--Fayez Sarofim & Co
Initial Shares		Large cap blend
Dreyfus Variable Investment Fund Developing Leaders
Portfolio		The Dreyfus Corporation
Initial Shares		Small cap blend
Dreyfus Variable Investment Fund Growth and Income
Portfolio		The Dreyfus Corporation
Initial Shares		Large cap blend
Dreyfus Variable Investment Fund Money Market Portfolio		The Dreyfus Corporation
		Money market

DWS Investments VIT Funds

		Deutsche Asset Management, Inc.
DWS Small Cap Index VIP		Sub-Adviser--Northern Trust Investments, N.A.
Class A		Small cap blend

Financial Investors Variable Insurance Trust
		ALPS Advisers, Inc.
Ibbotson Balanced ETF Asset Allocation Portfolio		Sub-Adviser--Ibbotson Associates, Inc.
Class II		Asset allocation
		ALPS Advisers, Inc.
Ibbotson Conservative ETF Asset Allocation Portfolio		Sub-Adviser--Ibbotson Associates, Inc.
Class II		Asset allocation
		ALPS Advisers, Inc.
Ibbotson Growth ETF Asset Allocation Portfolio		Sub-Adviser--Ibbotson Associates, Inc.
Class II		Asset allocation
		ALPS Advisers, Inc.
Ibbotson Income and Growth ETF Asset Allocation Portfolio		Sub-Adviser--Ibbotson Associates, Inc.
Class II		Asset allocation

Franklin Templeton Variable Insurance Products Trust
		Advisor--Templeton Investment Counsel, LLC
		Sub-Advisor--Franklin Templeton Investment
Templeton Foreign Securities Fund		Management Limited
Class 2		Foreign large cap value

Janus Aspen Series
Janus Aspen Series Balanced Portfolio		Janus Capital Management LLC
Institutional Shares		Balanced
Janus Aspen Series Forty Portfolio		Janus Capital Management LLC
Institutional Shares		Large cap growth


Portfolio
AIM Variable Insurance Funds		Adviser and Type of Fund
Janus Aspen Series International Growth Portfolio		Janus Capital Management LLC
Institutional Shares		Foreign large cap growth
Janus Aspen Series Large Cap Growth Portfolio		Janus Capital Management LLC
Institutional Shares		Large cap growth
Janus Aspen Series Mid Cap Growth Portfolio		Janus Capital Management LLC
Institutional Shares		Mid cap growth

Oppenheimer Variable Account Funds
Oppenheimer Balanced Fund/VA		OppenheimerFunds
Non-Service Shares		Balanced
Oppenheimer Capital Appreciation Fund/VA		OppenheimerFunds
Non-Service Initial Shares		Large cap growth
Oppenheimer Main Street Fund^®/VA		OppenheimerFunds
Non-Service Initial Shares		Large cap blend

PIMCO Variable Insurance Trust
PIMCO VIT Real Return Portfolio		Pacific Investment Management Company LLC
Administrative Class		Inflation-indexed bond
PIMCO VIT Total Return Portfolio		Pacific Investment Management Company LLC
Administrative Class		Intermediate term bond

Van Kampen—The Universal Institutional Funds, Inc.
Van Kampen UIF Core Plus Fixed Income Portfolio		Van Kampen⁽¹⁾
Class I		Intermediate term bond
Van Kampen UIF Mid Cap Growth Portfolio		Van Kampen⁽¹⁾
Class I		Mid cap growth
Van Kampen UIF U.S. Mid Cap Value Portfolio		Van Kampen⁽¹⁾
Class I		Mid cap value
Van Kampen UIF U.S. Real Estate Portfolio		Van Kampen⁽¹⁾
Class I		Specialty-real estate
Van Kampen UIF Value Portfolio		Van Kampen⁽¹⁾
Class I		Large cap value

Wilshire Variable Insurance Trust
Wilshire 2010 Moderate Fund		Wilshire Associates Incorporated
		Target maturity
Wilshire 2015 Moderate Fund		Wilshire Associates Incorporated
		Target maturity
Wilshire 2025 Moderate Fund		Wilshire Associates Incorporated
		Target maturity
Wilshire 2035 Moderate Fund		Wilshire Associates Incorporated
		Target maturity
Wilshire 2045 Moderate Fund		Wilshire Associates Incorporated
		Target maturity


⁽¹⁾		Morgan Stanley Investment Management Inc., which does business in certain instances using the name “Van Kampen,” serves as the investment advisor to the U.S. Mid Cap Value, Value, Core Plus Fixed Income and U.S. Real Estate Portfolios.

Each Ibbotson Portfolio and each Wilshire Portfolio listed in the table above is structured as a “fund of funds.” A “fund of funds” attempts to achieve its investment objective by investing in other investment companies (each, an “Acquired Fund”), which in turn invest directly in securities. Each Ibbotson Portfolio and each Wilshire Portfolio indirectly incurs a proportionate share of the expenses of each Acquired Fund in which it invests. As a result of this fund of funds structure, the Ibbotson Portfolios and the Wilshire Portfolio will likely incur higher expenses than funds that invest directly in securities.

Additions or Substitutions of Portfolios

New Subaccounts may be established when, in our sole discretion, marketing, tax, investment or other conditions warrant. Any new Subaccounts will be made available to existing Owners on a basis to be determined by us and that is not discriminatory. We do not guarantee that any of the Subaccounts or any of the Portfolios will always be available for allocation of Purchase Payments or variable dollar payments or for transfers. We may substitute the shares of a different portfolio or a different class of shares for shares held in a Portfolio.

In the event of any addition, merger, combination or substitution, we may make such changes in the Contract as may be necessary or appropriate to reflect such event. Additions, mergers, combinations or substitutions may be due to an investment decision by us, or due to an event not within our control, such as liquidation of a Portfolio or an irreconcilable conflict of interest between the Separate Account and another insurance company that offers the Portfolio. We will obtain approval of additions, mergers, combinations or substitution from the SEC to the extent required by the Investment Company Act of 1940, or other applicable law. We will also notify you before we make a substitution.

CHARGES AND DEDUCTIONS

Charges and Deductions by the Company

We assess two types of charges and deductions. We assess charges to the Contract, which are reflected in the Account Value of the Contract, but not in Accumulation Unit Values or Benefit Unit Values. These charges are the annual Contract maintenance fee, transfer fees, and premium taxes, where applicable. We also assess charges against the Separate Account. These charges are reflected in the Accumulation Unit Values and Benefit Unit Values. These charges are the administration charge and the mortality and expense risk charge.

Except as described below, we will never charge more to a Contract than the fees and charges described below, even if our actual expenses exceed the total fees and charges collected. If the fees and charges that we collect exceed the actual expenses that we incur, the excess will be profit to us and will not be returned to Owners.


ü Net asset value		The amount computed by a Portfolio as the price at which the Portfolio’s shares are purchased and redeemed. It is computed no less frequently than each Valuation Period.

Contract Maintenance Fee


Purpose of Fee		To offset expenses incurred in issuing the Contracts and in maintaining the Contracts and the Separate Account.

Amount of Fee		$40.00 per year.

When Assessed		Before the Commencement Date, we deduct this fee as of the Valuation Period after each Contract Anniversary that this Contract is in effect. After the Commencement Date, we deduct a portion of the annual fee from each variable dollar payment. We also deduct the full annual fee at the time of a surrender.

Assessed Against What		Amounts invested in the Subaccounts. The fee does not apply to the Fixed Account. Before the Commencement Date, we deduct this fee pro rata from the Subaccounts in which the Contract has an interest at that time. After the Commencement Date, if variable payments are to be made, we deduct a pro rata portion of the annual fee from each payment.

Waivers		Before the Commencement Date if the Account Value is at least $40,000 on the date the fee is due (individual Contracts only). After the Commencement Date if the amount applied to a variable dollar benefit is at least $40,000 (individual Contracts only). In our discretion where we incur reduced sales and servicing expenses. After the Commencement Date where required to satisfy state law.


*Transfer Fee*

Purpose of Fee		To offset costs incurred in administering the Contracts.

Amount of Fee		$25 for each transfer in excess of 12 in any Contract Year. We reserve the right to change the amount of this fee at any time.

When Assessed		Before the Commencement Date.

Assessed Against What		Deducted from amount transferred.

Waivers		Currently, the transfer fee does not apply to transfers associated with the dollar cost averaging, interest sweep and portfolio rebalancing programs. Transfers associated with these programs do not count toward the 12 free transfers permitted in a Contract Year. We reserve the right to eliminate this waiver at any time. We reserve the right to change the amount of the transfer fee in the future, or the number of transfers that can be made without incurring the transfer fee. We also reserve the right to charge fees for the automatic transfer programs described in the Transfers section of this prospectus, and/or for the systematic withdrawal program described in the Withdrawals and Surrenders section of this prospectus, if we determine, in our discretion, that such charges are necessary to offset the costs of administering the programs.

*Administration Charge*

Purpose of Charge		To offset expenses incurred in administering the Contracts and the Separate Account.

Amount of Charge		Daily charge equal to 0.000411% of the daily net asset value for each Subaccount, which corresponds to an annual effective rate of 0.15%.

When Assessed		Before the Commencement Date and, if variable dollar payments are to be made, after the Commencement Date.

Assessed Against What		Amounts invested in the Subaccounts. This charge does not apply to the Fixed Account.

Waivers		May be waived or reduced in our discretion where we incur reduced sales and servicing expenses.

*Mortality and Expense Risk Charge*

Purpose of Charge		As compensation for assuming mortality and expense risks under the Contract.

		• We assume mortality risks because we are obligated under the Contracts to make Annuity Benefit payments and Death Benefit payments.

		• We assume expense risks because our actual expenses in administering the Contracts and the Separate Account could exceed the amount recovered through the Contract maintenance fees, transfer fees and administration charges.

Amount of Charge		Daily charge equal to 0.003446% of the daily net asset value for each Subaccount, which corresponds to an effective annual rate of 1.25%.

When Assessed		Before the Commencement Date and, if variable dollar payments are to be made, after the Commencement Date.

Assessed Against What		Amounts invested in the Subaccounts. This charge does not apply to the Fixed Account.

Waivers		When we expect to incur reduced sales and servicing expenses, we may issue a Contract with a reduced mortality and expense risk charge. These Contracts are referred to as “Enhanced Contracts.” The mortality and expense risk charge under an Enhanced Contract is either:

		• a daily charge of 0.002615% of the daily net asset value for each Subaccount, which corresponds to an effective annual rate of 0.95%, or

		• a daily charge of 0.002063% of the daily net asset value for each Subaccount, which corresponds to an effective annual rate of 0.75%.

Premium Taxes

Currently some state governments impose premium taxes on annuity purchase payments. These taxes currently range from zero to 3.5% depending upon the jurisdiction. A federal premium tax has been proposed but not enacted. We will deduct any applicable premium taxes from the Purchase Payments or the Account Value at the time that the tax is imposed.

Discretionary Waivers of Charges

We will look at the following factors to determine if we will waive a charge, in part or in full, due to reduced sales and servicing expenses: (1) the size and type of the group to which sales are to be made, (2) the total amount of Purchase Payments to be received, and (3) any prior or existing relationship with us. We would expect to incur reduced sales and servicing expenses in connection with Contracts offered to our employees and employees of our subsidiaries and/or affiliates. There may be other circumstances, of which we are not presently aware, that could result in reduced sales and servicing expenses. In no event will we waive a charge where such waiver would be unfairly discriminatory to any person.

Expenses of the Portfolios

In addition to charges and deductions by the Company, each Portfolio incurs management fees and other expenses that are described in the prospectus and statement of additional information for the Portfolio. Portfolio expenses, like Separate Account expenses, are reflected in Accumulation Unit Values and Benefit Unit Values.

PURCHASE PAYMENTS AND ALLOCATIONS TO INVESTMENT OPTIONS

Generally you can make one or more Purchase Payments at any time before the Annuity Commencement Date. We will allocate Purchase Payments to the available Subaccounts and Fixed Account options according to your instructions.

You can control the allocation of investments through transfers or through the following investment programs offered by the Company: dollar cost averaging, portfolio rebalancing, and interest sweep. These programs and telephone, facsimile and Internet transfer procedures are described in the Transfers section of this prospectus.

Purchase Payments

Purchase Payments must be received by us at our Variable Administrative Office, P.O. Box 5423, Cincinnati, Ohio 45201-5423. Upon request, we will provide you with a receipt as proof of payment.

Current Restrictions on Purchase Payment Amounts


	Tax Qualified Contract	Non Tax Qualified Contract

*Minimum* amounts

Minimum initial Purchase Payment	$20,000	$20,000
Minimum additional Purchase Payment	$50	$100

*Maximum* amounts
Maximum single Purchase Payment	$500,000 or Company approval	$500,000 or Company approval

We reserve the right to increase or decrease the minimum and maximum Purchase Payment amounts, at our discretion and at any time, where permitted by law.

We will apply your initial Purchase Payment to your account using the following rules.

•

If the application form is in good order, we will apply the initial Purchase Payment within 2 business days of receipt of the Purchase Payment.

•

If the application form is not in good order, we will attempt to get the application form in good order within 5 business days. If the application form is not in good order at the end of 5 business days, we will inform the applicant of the reason for the delay and that the Purchase Payment will be returned immediately unless he or she specifically agrees that we may keep the Purchase Payment until the application form is in good order. Once the application form is in good order, we will apply the Purchase Payment within 2 business days.

We will apply each additional Purchase Payment to your account as of the Valuation Date on which we receive the Purchase Payment and any related allocation instructions in good order. If any portion of the additional Purchase Payment is allocated to a Subaccount, we will apply it at the next Accumulation Unit Value calculated after we receive the Purchase Payment and related allocation instructions in good order.

Allocations to Investment Options

You can allocate Purchase Payments in whole percentages to any of the available Subaccounts or Fixed Account options. Allocation instructions must be made by Written Request.


Subaccount Options		Fixed Account Options
\|
See the Portfolios section of this prospectus for a list of the currently available Subaccounts.		The currently available Fixed Account options for individual Contracts are:

		• Fixed Accumulation Account

		• Fixed Account One-Year Guarantee Period

		The Fixed Account options are not available under group Contracts.

Interests in the Subaccounts are securities registered with the SEC. You bear the risk of investment gain or loss on amounts allocated to the Subaccounts.

Interests in the Fixed Account options are not securities and are not registered with the SEC. We guarantee amounts allocated to the Fixed Account options and interest credited to the Fixed Account options.

Additional Information about Fixed Account Options

Amounts allocated to the Fixed Account options will receive a stated rate of interest of at least 3% per year. We may from time to time pay a higher current interest rate for either Fixed Account option. The interest rate credited to each Purchase Payment allocated to the Fixed Accumulation Account will not be changed for at least 12 months following the date on which we receive the Purchase Payment. Thereafter, it will not be changed more frequently than once per calendar quarter. The interest rate credited to amounts that you transfer to the Fixed Accumulation Account will not be changed more frequently than once per calendar quarter. The interest rate credited to an amount held under the Fixed Account One-Year Guarantee Period will not be changed until the end of the one-year period. Your Contract contains more information about the Fixed Account options, including information about how and when interest rates are determined and changed and how and when interest is credited to amounts allocated to the Fixed Account options.

Current Restrictions on Allocations


Minimum Allocations

Minimum allocation to any Subaccount		$ 10

Minimum allocation to Fixed Accumulation Account		$ 10 Not available under group Contracts.

Minimum allocation to Fixed Account One-Year Guarantee Period		$ 2,000
		Not available under group Contracts.
		No amounts may be allocated to this option if the guarantee period ends after the Annuity Commencement Date.

Allocation During Right to Cancel Period		No current restrictions, however, we reserve the right to require that Purchase Payment(s) be allocated to the money market Subaccount or to the Fixed Accumulation Account during the right to cancel period.

We may, in our sole discretion, restrict or prohibit allocations to Subaccounts or Fixed Account options from time to time on a nondiscriminatory basis.

Renewal of Fixed Account One-Year Guarantee Period Option

An amount that is allocated or transferred to the Fixed Account One-Year Guarantee Period option will mature at the end of one year. We will notify you of the date on which the amount matures and the Fixed Account options available at that time.

When an amount matures, you may transfer it to any of the Fixed Account options or Subaccounts that are then available to you under this Contract. We must receive a Written Request to transfer the maturing amount within the 30 day period that ends on the date that the amount matures. The transfer will be effective on the day after the amount matures.

If you do not transfer the amount, then we will apply it to a new guarantee period under the same option if it is then available to you. The interest rate for the new period will be the then current rate for that option. If that option is not available to you, then the amount will be transferred to the Fixed Accumulation Account. The renewal or transfer will be effective on the day after the amount matures.


1998 Version		An amount that was allocated or transferred to any of the then available Fixed Account options with a guarantee period will mature at the end of the period. When an amount matures, you may transfer it as indicated above. No amount may be allocated to a guarantee period option that would extend beyond the Owner’s 85^th birthday or 5 years after the effective date of the Contract, if later (the “85/5 restriction”). If you do not transfer the amount, then we will apply it to a new guarantee period under the One-Year Guarantee Period Option. If that guarantee period is not available due to the 85/5 restriction, then the amount will be transferred to the Fixed Accumulation Account.

TRANSFERS

Transfers

Before the Commencement Date, you may transfer amounts among Subaccounts, between Fixed Account options (where available), and/or between Subaccounts and Fixed Account options (where available).

A transfer is effective on the Valuation Date during which we receive the request for transfer. We will process transfers to a Subaccount at the Accumulation Unit Value calculated after we receive the transfer request in good order.

Current Restrictions on Transfers


*Minimum transfer amounts*

Minimum transfer from any Subaccount		$500 or balance of Subaccount, if less

Minimum transfer from any Fixed Account option		$500 or balance of Fixed Account option, if less No amounts may be transferred from a Fixed Account option during the first Contract Year Amounts transferred from Fixed Account options to Subaccounts may not be transferred back to Fixed Account options for a period of 6 months from the date of the original transfer.

Minimum transfer to Fixed Account One-Year Guarantee Period		$2,000 Not available under group Contracts. No amounts may be transferred to this option if the guarantee period ends after the Annuity Commencement Date.

*Maximum transfer amounts*

Maximum transfer from a Fixed Account option		If a transfer is made in connection with a renewal of the Fixed Account One-Year Guarantee Period option, the entire amount that has matured may be transferred. Other transfers from a Fixed Account option during a Contract Year may not exceed the greater of (1) $500 and (2) 20% of the value of that option as of the most recent Contract Anniversary.

We may, in our sole discretion, restrict or prohibit any type of transfer or the availability of any Subaccount or Fixed Account option on a nondiscriminatory basis. We may modify our transfer procedures at any time and at our sole discretion.

Automatic Transfer Programs

Before the Commencement Date, we offer the automatic transfer services described below. To enroll in one of these programs, you will need to complete the appropriate authorization form, which you can obtain from us by calling 1-800-789-6771. There are risks involved in switching between investment options available under the Contract.

Currently, the transfer fee does not apply to dollar cost averaging, portfolio rebalancing, or interest sweep transfers, and transfers under these programs will not count toward the 12 transfers permitted under the Contract without a transfer fee charge.


		Minimum
Service	Description	Account Requirements	Limitations/Notes
Dollar Cost Averaging Dollar cost averaging requires regular investments regardless of fluctuating price levels and does not guarantee profits or prevent losses in a declining market. You should consider your financial ability to continue dollar cost averaging transfers through periods of changing price levels.	Automatic transfers from the money market Subaccount to any other Subaccount(s), or from the Fixed Accumulation Account option (where available) to any Subaccount(s) on a monthly or quarterly basis.	Source of funds must be at least $10,000. Minimum transfer per month is $500. When balance of source of funds falls below $500, entire balance will be allocated according to dollar cost averaging instructions.	Dollar cost averaging transfers may not be made to any of the Fixed Account options. The dollar cost averaging transfers will take place on the last Valuation Date of each calendar month or quarter as requested by the Owner.

Portfolio Rebalancing Portfolio rebalancing does not guarantee profits or prevent losses in a declining market.	Automatically transfer amounts between the Subaccounts and the Fixed Accumulation Account option (where available) to maintain the percentage allocations selected by the Owner.	Minimum Account Value of $10,000.	Transfers will take place on the last Valuation Date of each calendar quarter. Portfolio rebalancing will not be available if the dollar cost averaging program or an interest sweep from the Fixed Accumulation Account option is being utilized.

Interest Sweep	Automatic transfers of the income from any Fixed Account option(s) to any Subaccount(s).	Balance of each Fixed Account option selected must be at least $5,000. Maximum transfer from each Fixed Account option selected is 20% of such Fixed Account option’s value per year. Amounts transferred under the interest sweep program will reduce the 20% maximum transfer amount otherwise allowed.	Interest sweep transfers will take place on the last Valuation Date of each calendar quarter. Interest sweep is not available from the Seven-Year Guaranteed Interest Rate Option if the Principal Guarantee Program is selected.

How to Request a Transfer

Currently, you may make a transfer request by Written Request or any of the following alternate methods:

•

by telephone at 1-800-789-6771

•

by facsimile at 513-412-3766 or

•

over the Internet through our web site at www.gafri.com.

All transfer requests must comply with the terms of the Contract. We accept transfer instructions once each Valuation Period. Once instructions have been accepted, they may not be rescinded; however, new instructions may be given the following Valuation Period.

You may place transfer requests by telephone, by facsimile or over the Internet between 9:30 a.m. and 4:00 p.m. Access to these alternate methods of placing transfer requests, particularly through our web site, may be limited or unavailable during periods of peak demand, system upgrading and maintenance, or for other reasons. We may withdraw the right to make transfers by telephone, facsimile or over the Internet upon 10 days’ written notice to affected Contract Owners.

We will not be liable for complying with transfer instructions that we reasonably believe are genuine, or for any loss, damage, cost or expense in acting on such instructions. In addition, we will not be liable for refusing to comply with transfer instructions that we reasonably believe are not genuine, or for any loss, damage, cost or expense for failing to act on such instructions. You or the person controlling payments will bear the risk of such loss. We will employ reasonable procedures to determine that telephone, facsimile or Internet instructions are genuine. If we do not employ such procedures, we may be liable for losses due to unauthorized or fraudulent instructions. These procedures may include, among others, tape recording telephone instructions or requiring use of a unique password or other identifying information.

Changes in or Termination of Automatic Transfer Programs

You may change any automatic transfer instructions that are in place or may terminate your participation in any of the automatic transfer programs at any time. To change your instructions or to terminate your participation, you must send us a Written Request by U.S. or overnight mail, or by facsimile at 513-412-3766. You must give us at least 30 days’ notice to change any automatic transfer instructions that are already in place or to terminate your participation in an automatic transfer program.

We may terminate, suspend or modify any aspect of the automatic transfer programs described above without prior notice to you, as permitted by applicable law. Any such termination, suspension or modification will not affect automatic transfer programs already in place.

We may also impose an annual fee for participation in an automatic transfer program or increase the current annual fee, as applicable, in such amount(s) as we may then determine to be reasonable. The maximum amount of the annual fee that we would impose for participating in each automatic transfer program is $30.

Transfer Restrictions Related to Active Trading Strategies

Neither the Contracts described in this prospectus nor the underlying Portfolios are designed to support active trading strategies that involve frequent movement between or among Subaccounts (sometimes referred to as “market-timing” or “short-term trading”). Persons who intend to use an active trading strategy should consult a financial advisor and request information on variable annuity contracts that offer underlying Portfolios designed specifically to support active trading strategies.

We have implemented several processes and/or restrictions aimed at eliminating the negative impact of active trading strategies. Appendix C to this prospectus contains more information about these processes and restrictions.

WITHDRAWALS AND SURRENDERS

You can access your Account Value before the Annuity Commencement Date through withdrawals from the Contract, Contract loans (if available), or a surrender of the Contract. Contract loans are described more fully in the next section of this prospectus.

You may take withdrawals from the Contract at any time before the Annuity Commencement Date. Withdrawals must be made by Written Request. The amount of the withdrawal must be at least $500. No withdrawal can be made that would reduce the Account Value of the Contract to less $500. A withdrawal will result in the cancellation of Accumulation Units from each of the applicable Subaccounts and/or a reduction in the value of your interest in the applicable Fixed Account options. Unless the Written Request states otherwise, the reduction in each Subaccount and Fixed Account option will be in the same proportion as the reduction in the total Account Value. If you wish to specify the Subaccount(s) and/or Fixed Account option(s) from which you wish to make a withdrawal and the amount of the withdrawal to be taken from each specified Subaccount and/or Fixed Account option, you must include this information in the Written Request.

You may surrender a Contract in full for the Account Value at any time before the Annuity Commencement Date. A full surrender will terminate the Contract. Surrenders must be made by Written Request. The amount available for surrender will be the Account Value at the end of the Valuation Period in which the Written Request for surrender is received by us. Any fee, charges, loans or applicable premium tax or other taxes not previously deducted will be deducted as part of the calculation of the Account Value.

•

Please review the explanation of a Written Request in the Definitions section of this prospectus.

An amount paid on a withdrawal or surrender may be paid to or for another annuity or tax-qualified account in an exchange, transfer, or rollover to the full extent allowed by federal tax law.

A withdrawal or surrender is effective on the Valuation Date during which we receive the Written Request for withdrawal or surrender in good order. A withdrawal or surrender that results in the cancellation of Accumulation Units will be processed at the next Accumulation Unit Value calculated after we receive the Written Request in good order.

Restrictions and Charges on Withdrawals and Surrenders


	Tax Qualified Contracts	Non Tax Qualified Contracts

Minimum withdrawal amount	$500	$500

Minimum remaining Account Value after a withdrawal	$500	$500

Amount available for surrender (valued as of end of Valuation Period in which we receive the surrender request)	Account Value subject to tax law or employer plan restrictions on withdrawals	Account Value subject to employer plan restrictions on withdrawals

Contract maintenance fee on full surrender	$40

Tax penalty for early withdrawal	When applicable, 10% of amount distributed before age 59¹/2 (25% for certain SIMPLE IRAs)

Deferral of Payment

We have the right to suspend or delay the date of payment of a withdrawal or surrender from the Subaccounts at certain times. We may do this for any period:

•

when the New York Stock Exchange is closed or when trading on the New York Stock Exchange is restricted;

•

when the SEC determines that an emergency exists as a result of which the disposal of securities in the Separate Account is not reasonably practicable or it is not reasonably practicable to determine fairly the value of the nets assets in the Separate Account; or

•

when the SEC permits a suspension or delay in payment for the protection of security holders.

As permitted under certain state laws, we also reserve the right to delay the processing and payment of a withdrawal or surrender from the Fixed Account. We may delay processing and payment for up to 6 months after we receive your Written Request. If we delay processing and payment, we will comply with applicable state law.

Systematic Withdrawal

Before the Annuity Commencement Date, you may elect to automatically withdraw money from the Contract. The Account Value must be at least $10,000 in order to make a systematic withdrawal election. The minimum monthly amount that can be withdrawn is $100.

You may begin or discontinue systematic withdrawals at any time by Written Request. You must give us at least 30 days’ notice to change any systematic withdrawal instructions that are currently in place. We reserve the right to discontinue offering systematic withdrawals at any time.

Currently, we do not charge a fee for systematic withdrawal services. However, we reserve the right to impose an annual fee in such amount as we may then determine to be reasonable for participation in the systematic withdrawal program. If imposed, the fee will not exceed $30 annually.

Before electing a systematic withdrawal program, you should consult with a financial advisor. Systematic withdrawal is similar to annuitization, but will result in different taxation of payments and potentially a different amount of total payments over the life of the Contract than if annuitization were elected.

CONTRACT LOANS

We may make loans to Owners of certain Tax Qualified Contracts. If loans are available under a Tax Qualified Contract, loan provisions are described in the loan endorsement to the Contract. These loans will be secured with an interest in the Contract. The collateral for the loan will be moved from the designated Subaccounts to the Fixed Accumulation Account option and will earn a fixed rate of interest applicable to loan collateral. Loan amounts and repayment requirements are subject to provisions of the Internal Revenue Code. A default on a loan will result in a taxable event. You should consult a tax advisor before exercising loan privileges.

A loan, whether or not repaid, will have a permanent effect on the Account Value of a Contract because the collateral cannot be allocated to the Subaccounts or Fixed Account One-Year Guarantee Period option. The longer the loan is outstanding, the greater the effect is likely to be. The effect could be favorable or unfavorable. If the investment results are greater than the interest rate being credited on collateral while the loan is outstanding, the Account Value will not increase as rapidly as it would have increased if no loan were outstanding. If investment results are below that interest rate, the Account Value will be higher than it would have been if no loan had been outstanding.

TERMINATION

We reserve the right to terminate any Contract at any time that the Account Value is less than $500. If we terminate the Contract, we will pay you the Account Value less any fees and charges, loans, and applicable premium tax or other taxes not previously deducted.

A group Contract may be terminated on 60 days advance notice, in which case participants will be entitled to continue their interests on a deferred, paid-up basis, subject to our termination right as described above.

OTHER INFORMATION

Reports and Confirmations

At least once each Contract Year, we will mail reports of the Contract’s Account Value and any other information required by law to you. We will not send these reports after the Commencement Date or a full surrender of the Contract, whichever is first.

We will confirm receipt of any Purchase Payments made after the initial Purchase Payment in quarterly statements of account activity.

Householding

If you and other Owners at a shared address consented to receive only one copy of each prospectus, annual report, or other required document per household (“householding”), you may revoke your consent at any time. Please contact us at 1-800-789-6771 or www.gafri.com if you wish to receive separate documents.

If you are currently receiving multiple copies of required documents, you may contact us at 1-800-789-6771 or www.gafri.com for additional information about householding.

Electronic Delivery of Required Documents

If you wish to receive prospectuses, SAIs, annual reports, and other required documents only in electronic form, you must give your consent to electronic delivery. You may revoke this consent at any time. Please contact us at 1-800-789-6771 or www.gafri.com for additional information about electronic delivery of documents.

Voting of Portfolio Shares

To the extent required by law, we will vote all Portfolio shares held in the Separate Account at regular and special shareholder meetings of the respective Portfolios. The Portfolios are not required to hold annual or other regular meetings of shareholders.

Before the Commencement Date, we will vote Portfolio shares according to instructions of Owners, unless we are permitted to vote shares in our own right. We will solicit voting instructions in accordance with procedures established by the respective Portfolios. Each person or entity having a voting interest in a Subaccount will receive proxy material, reports and other material relating to the appropriate Portfolio.

We will calculate the number of votes for which you may provide voting instructions separately for each Subaccount. We will determine the number by applying your percentage interest, if any, in a particular Subaccount to the total number of votes attributable to that Subaccount. We will determine your percentage interest and the total number of votes as of the record date established by that Portfolio for voting purposes.

We will also vote or abstain from voting shares for which we receive no timely instructions and shares we hold as to which Owners have no beneficial interest (including shares held by us as reserves for benefit payments*). We will vote or abstain from voting such shares in proportion to the voting instructions we receive from Owners of all Contracts participating in the Subaccount.

Neither the Owner nor payee has any interest in the Separate Account after the Commencement Date. Benefit Units are merely a measure of the amount of the benefit payments we are obligated to pay on each payment date.

ANNUITY BENEFIT


Annuity Benefit
üAnnuity Benefit		The payments that may be made under the Annuity Benefit section of the Contract.

üAnnuity Benefit Amount		The Account Value, reduced by any fees and charges, loans, and applicable premium tax or other taxes not previously deducted, will be used to provide Annuity Benefit payments under the Contract.

üAnnuity Commencement Date		The first day of the first payment interval for which an Annuity Benefit payment is to be made.

When the Contract is annuitized, we promise to pay a stream of Annuity Benefit payments for the duration of the settlement option selected. Upon annuitization, the Account Value is no longer available to you. Annuity Benefit payments are based on the Account Value. Annuity Benefit payments may be calculated and paid as variable dollar payments, fixed dollar payments, or a combination of both The stream of payments, whether variable dollar or fixed dollar, is an obligation of our general account. However, we guarantee only the amount of fixed dollar payments. You (or the applicable payee) bear the risk that any variable dollar payment may be less than the initial variable dollar payment or that it may decline to zero, if Benefit Unit Values for that payment decrease sufficiently.

Annuity Commencement Date

The Annuity Commencement Date is set out on the Contract specification page. You may change the Annuity Commencement Date by Written Request. We must receive the Written Request at least 30 days before the date that the Annuity Benefit payments are scheduled to begin.

Ø Please review the explanation of a Written Request in the Definitions section of this prospectus.

You should consider the following rules when designating the Annuity Commencement Date.


Tax Qualified Contract		Non Tax Qualified Contract
The Annuity Commencement Date generally must be no later than the Contract Anniversary following your 70^thbirthday. The Annuity Commencement Date can be later only if we agree.		The Annuity Commencement Date generally must be no later than (1) the Contract Anniversary following the 85^th birthday of the elder of you or any joint owner or (2) five years after the effective date of the Contract, whichever is later. The Annuity Commencement Date can be later only if we agree

Form of Annuity Benefit

You may elect to have Annuity Benefit payments made pursuant to any form of settlement option that is currently available. The standard forms of settlement options are described in the Settlement Options section of this prospectus. You may request fixed dollar payments, variable dollar payments, or a combination of both.

You may elect a settlement option or change your election by Written Request. The election or any change in your election must be made before the Annuity Commencement Date. We must receive your Written Request at least 30 days before the Annuity Commencement Date.

If you have not made an election as to the form of settlement option, we will attempt to contact you to ascertain the form of settlement option to be used. If you do not select a settlement option, Annuity Benefit payments will be made annually under the terms of Settlement Option B with a fixed period of 10 years, as described in the Settlement Options section of this prospectus. In addition, the form of the Annuity Benefit payments (fixed dollar payments, variable dollar payments, or a combination of both) will reflect the allocation of your Account Value as of the end of the Valuation Period that precedes the Annuity Commencement Date.


1998 Version		If you do not select a settlement option, Annuity Benefit payments will be fixed dollar payments made monthly under the terms of Settlement Option B for a period of 10 years.

If this Contract is a Tax Qualified Contract, an election of a settlement option is subject to restrictions stated in the tax qualification endorsement. If this Contract is not a tax qualified contract, then an election of a settlement option is subject to the distribution rules set forth in the Contract.


Ø		Additional information about fixed dollar payments and variable dollar payments is included in the Calculation of Benefit Payments section of this prospectus.

Person Who Receives Annuity Benefit Payments

Annuity Benefit payments generally will be made to the Annuitant as payee. There are 2 exceptions to this general rule.

•		If you are not the Annuitant, you can elect to have the Annuity Benefit payments made to yourself as payee.

•		Annuity Benefit payments may be paid as a transfer or rollover to, or as a tax-free exchange for, an annuity or tax-qualified account as permitted by federal tax law.

Annuity Benefit payments that are still payable after the death of the payee will be made to the applicable contingent payee or, if there is no designated or surviving contingent payee, the estate of the last payee who received payments.

For group contracts, Annuity Benefit payments will be made to the Participant as payee. Any Annuity Benefit amounts remaining payable on his or her death will be paid to the contingent payee designated by the Participant by Written Request. We may reject the naming of a non-natural payee. The Participant will be the person on whose life any Annuity Benefit payments are based.

Ø Please review the explanation of a Written Request in the Definitions section of this prospectus.

DEATH BENEFIT

Death Benefit


üBeneficiary		The person entitled to receive any Death Benefit under this Contract. More information about the Beneficiary is included in the Contract section of the prospectus .

üDeath Benefit		The benefit described in the Death Benefit section of the Contract.

üDeath Benefit Commencement Date(1)		The first day of the first payment interval for a Death Benefit that is paid as periodic payments or (2) the date of payment for a Death Benefit that is paid as a lump sum.

üDeath Benefit Valuation Date		The earlier of (1) the date that we have received both Due Proof of Death and a Written Request with instructions as to the form of the Death Benefit and (2) the Death Benefit Commencement Date.

üDue Proof of Death		A certified copy of a death certificate or a certified copy of a decree made by a court of competent jurisdiction as to the finding of death. We will also accept other proof that is satisfactory to us.

Ø Please review the explanation of a Written Request in the Definitions section of this prospectus.

A Death Benefit will be paid under this Contract if you or a joint owner dies before the Annuity Commencement Date and before the Contract is surrendered.

A Death Benefit will also be paid under the following circumstances.

•

You or a joint owner is a non-natural person and the Annuitant dies before the Annuity Commencement Date and before the Contract is surrendered.

•

The Contract is a Tax Qualified Contract and the Annuitant dies before the Annuity Commencement Date and before the Contract is surrendered.

If your surviving spouse becomes a successor owner of the Contract, no Death Benefit will be paid on your death.

Only one Death Benefit will be paid under the Contract. No Death Benefit will be paid until we receive Due Proof of Death. If a Death Benefit becomes payable, it will be in lieu of all other benefits under the Contract and all other rights under this Contract will be terminated.

Death Benefit Amount

The amount of the Death Benefit will be based on the greater of (1) the Account Value on the Death Benefit Valuation Date and (2) the total of all Purchase Payments, reduced proportionally for any withdrawals. Any reduction in the Purchase Payments that we make to reflect withdrawals will be made in the same percentage as the percentage reduction in your Account Value on the date of the withdrawal.

Example of Determination of Death Benefit Amount
This example is intended to help you understand how a withdrawal impacts the Death Benefit amount.

Assuming your total Purchase Payments equal $100,000, your Account Value is $90,000, you withdraw $10,000 from the Contract, and you are left with an Account Value of $80,000.

Step One: Calculate the proportional reduction.


1		—		$80,000 $90,000		Account Value immediately after withdrawal Account Value immediately before withdrawal		= 11.1111%		Percentage Reduction


$100,000		Purchase Payments		x 11.1111%		Percentage Reduction		= $11,111		Proportional Reduction

Step Two: Calculate the reduced Purchase Payment amount.


Purchase Payments	$	100,000
Less proportional reduction for withdrawals		- 11,111

Purchase Payments reduced for withdrawals	$	88,889

Step Three: Determine the Death Benefit amount.

Immediately after the withdrawal, the reduced Purchase Payments of $88,889 is greater than the Account Value of $80,000, so the Death Benefit amount would be $88,889.


1998 Version		The Death Benefit will be an amount equal to the greater of (1) the Account Value as of the Death Benefit Valuation Date and (2) 100% of the Purchase Payment(s) received by us, less any amounts returned to you.

The death benefit amount will be reduced by any applicable premium tax or other taxes not previously deducted and by any outstanding loans.

Death Benefit Commencement Date

The Beneficiary may designate the Death Benefit Commencement Date by Written Request. The Written Request must be made within one year of the death of the applicable person. If no designation is made, then the Death Benefit Commencement Date will be one year after the death.

Ø Please review the explanation of a Written Request in the Definitions section of this prospectus.

Allocations and Transfers of Death Benefit Amount

On the Death Benefit Valuation Date, we will allocate the Death Benefit amount among the Subaccounts and the Fixed Account options. This allocation will be made in the same proportion as the value of each option bears to the total Account Value as of the end of the Valuation Period immediately before that date. After this allocation, the amount of the Death Benefit to be paid will be based on the Account Value.

Between the Death Benefit Valuation Date and the Death Benefit Commencement Date, the Beneficiary may transfer funds among the Subaccounts and the Fixed Account options. These transfers are subject to the limitations described in the Transfers section and Appendix C of this prospectus.

Form of Death Benefit

You may elect to have Death Benefit payments made in one lump sum or pursuant to any form of settlement option that is currently available. The standard forms of settlement options are described in the Settlement Options section of this prospectus. You may request fixed dollar payments, variable dollar payments, or a combination of both. There is no additional charge associated with the form of Death Benefit election.

The election must be made before your death. You may change the election at any time before your death. The election or any change in the election must be made by Written Request.

If you do not make any election, the Beneficiary may make that election after your death and before the Death Benefit Commencement Date. A Beneficiary may change the Beneficiary’s own election by Written Request. We must receive the Written Request at least 30 days before the Death Benefit Commencement Date.

If neither you nor the Beneficiary has made an election, Death Benefit payments will be made annually under the terms of Settlement Option A with a fixed period of 4 years, as described in the Settlement Options section of this prospectus. In addition, the form of the Death Benefit payments (fixed dollar payments, variable dollar payments, or a combination of both) will reflect the allocation of your Account Value as of the end of the Valuation Period that precedes the Death Benefit Commencement Date.


1998 Version		If you do not select a settlement option, Death Benefit payments will be fixed dollar payments made monthly under the terms of Settlement Option A for a period of 4 years.


Ø		Additional information about fixed dollar payments and variable dollar payments is included in the Calculation of Benefit Payments section of this prospectus.

The Beneficiary generally will be the person on whose life any Death Benefit payments under a settlement option will be based. If the Beneficiary is a non-natural person, the Beneficiary may elect to have payments under a life option based on the life of a person to whom the Beneficiary is obligated. This election must be made by Written Request before the Death Benefit Commencement Date.

Ø Please review the explanation of a Written Request in the Definitions section of this prospectus.

If this Contract is a Tax-Qualified Contract, an election of a settlement option is subject to restrictions stated in the tax qualification endorsement. If this Contract is not a tax-qualified contract, then an election of a settlement option is subject to the distribution rules set forth in the Contract.

Application of a Death Benefit to a Settlement Option

When a Death Benefit is applied to a settlement option, we promise to pay a stream of benefit payments for the duration of the settlement option selected. Benefit payments are based on the Account Value. Benefit payments may be calculated and paid as variable dollar payments, fixed dollar payments, or a combination of both. The stream of

payments, whether variable dollar or fixed dollar, is an obligation of our general account. However, we guarantee only the amount of fixed dollar payments. The Beneficiary (or the applicable payee) bears the risk that any variable dollar payment may be less than the initial variable dollar payment, or that it may decline to zero, if Benefit Unit Values for that payment decrease sufficiently.

Person Who Receives Death Benefit Payments

Death Benefit payments generally will be made to the Beneficiary as payee. There are 2 exceptions to this general rule.

•

If the Beneficiary is a non-natural person, the Beneficiary may elect to have Death Benefit payments made to a payee to whom the Beneficiary is obligated to make corresponding payments.

•

Death Benefit payments may be paid as a transfer or rollover to, or as a tax-free exchange for, an annuity or tax-qualified account as permitted by federal tax law.

Death Benefit payments that are still payable after the death of the payee will be made to the applicable contingent payee or, if there is no designated or surviving contingent payee, the estate of the last payee who received payments.

Step Up in Account Value for Successor Owner

If your spouse becomes the successor owner of the Contract, the Account Value may be increased. There is no additional charge associated with this feature.

•

The Account Value will be increased to equal the amount of the Death Benefit that would have been payable if your spouse had not become the successor owner.

•

If the Death Benefit that would have been payable is equal to the Account Value on the applicable date, the Account Value will not be increased.

If the Account Value is increased under this provision, we will add the amount of the increase to the Fixed Accumulation Account.

Any increase under this provision will occur as of the date that would have been the Death Benefit Valuation Date. The date that would have been the Death Benefit Valuation Date will be the later of (1) the date that we receive Due Proof of Death or (2) the date we receive the successor owner election. This date will never be later than one year after the date of your death.

SETTLEMENT OPTIONS

Settlement Options

We will make periodic payments under the standard forms of settlement options described below. More than one settlement option may be elected if the requirements for each settlement option elected are satisfied.

We will make periodic payments in any other form of settlement option that is acceptable to us at the time of any election. All elected settlement options must comply with pertinent laws and regulations. Once payment begins under a settlement option that is contingent on the life of a specified person or persons, the settlement option may not be changed or commuted (i.e., redeemed at present value). Other settlement options may be commuted on a basis acceptable to you and us at the time of the commutation request.


Option		Description
Option A Income for a Fixed Period		We will make periodic payments for a fixed period of 5 to 30 years. (Payment intervals of 1 to 4 years are available for Death Benefit settlement options only.)

Option B Life Annuity with Payments for a Fixed Period		We will make periodic payments for at least a fixed period. If the person on whose life benefit payments are based lives longer than the fixed period, then we will make payments until his or her death.

Option C Joint and One-Half Survivor Annuity		We will make periodic payments until the death of the primary person on whose life benefit payments are based. After the death of the primary person, we will make one-half of the periodic payment until the death of the secondary person on whose life benefit payments are based.

Payments under Settlement Options

Payments under any settlement option may be in fixed dollar payments, variable dollar payments, or a combination of both. Payments under any settlement option may be in monthly, quarterly, semi-annual or annual payment intervals. The first payment will be paid as of the last day of the initial payment interval. If the amount of any regular payment under the form of settlement option elected would be less than $50, an alternative form of settlement option will have to be elected. In our discretion, we may require benefit payments to be made by direct deposit or wire transfer to the account of a designated payee.

If payment under a settlement option depends on whether a specified person is still alive, we may at any time require proof that the person is still living. We will require proof of the age of any person on whose life payments are based. If more than one person is the payee under a settlement option, we will make payments to the payees jointly. No more than 2 persons may be initial payees under Option C.

We may modify minimum amounts, payment intervals and other terms and conditions at any time without prior notice to you. If we change the minimum amounts, we may change any current or future payment amounts and/or payment intervals to conform with the change.


Ø		Additional information about fixed dollar payments and variable dollar payments is included in the Calculation of Benefit Payments section of this prospectus.

Considerations in Selecting a Settlement Option

The dollar amount of benefit payments will vary with the frequency of the payment interval and the duration of the payments.

•

Generally, the amount of each payment in a stream of payments will be less as the frequency of payments increases, or as the length of the payment period increases, because more payments will be paid.

•

For life contingent settlement options (Option B and Option C), the amount of each payment in the stream of payments will generally be less as the life expectancy of the Annuitant or Beneficiary increases because more payments are expected to be paid.

•

All elected settlement options must comply with pertinent laws and governmental regulations and rulings, which may include restrictions on the length of time over which payments may be made and/or may require payments to be made within a certain time period or at certain times.

THE CONTRACTS

Each Contract is an agreement between you and us. Values, benefits and charges are calculated separately for each Contract. In the case of a group Contract, the agreement is between us and the group owner. An individual participant under a group Contract will receive a certificate of participation, which is evidence of the participant’s interest in the group Contract. A certificate of participation is not a Contract. Values, benefits and charges are calculated separately for each certificate issued under a Contract. The description of Contract provisions in this prospectus applies to the interests of certificate Owners, except where otherwise noted.

Because we are subject to the insurance laws and regulations of all the jurisdictions where we are licensed to operate, the availability of certain Contract rights and provisions in a given state may depend on that state’s approval of the Contracts. Where required by state law or regulation, the Contracts will be modified accordingly.

Right to Cancel

If you are the Owner of an individual Contract, you may cancel it by returning it and giving us written notice of cancellation. You have until midnight of the 20^th day following the day you receive the Contract. The Contract must be returned and the required notice must be given to us, or to the agent who sold it to you, in person or by mail. If sent by mail, the return of the Contract or the notice is effective on the date it is postmarked, with the proper address and with postage paid. If you cancel your individual Contract as set forth above, the Contract will be void and we will refund the Purchase Payments plus or minus any investment gains or losses under the Contract as of the end of the Valuation Period during which we receive the returned Contract.

Federal law or the law of the state where you live may vary your cancellation rights.

•

When required by state or federal law, we will refund the Purchase Payments without any investment gain or loss, during all or the applicable part of the right to cancel period.

•

When required by state or federal law, we will refund the Purchase Payments in full, without deducting any fees or charges, during the right to cancel period.

•

When required by state law, the right to cancel period may be longer than 20 days.

•

When required by state law, the right to cancel may apply to group Contracts.

During the right to cancel period, we reserve the right to allocate all Purchase Payments temporarily to the Fixed Accumulation Account or a money market Subaccount, at our discretion. If we exercise this right, we will reallocate your Account Value as of the end of the right to cancel period. When we make this reallocation, we will follow the allocation instructions that you provided with your initial Purchase Payment.

Ownership Provisions

Owner

The Owner is the person with authority to exercise all of the ownership rights under a Contract, such as making allocations among investment options, electing a settlement option, and designating the Annuitant, Beneficiary and payee. If you live in a community property state and have a spouse at any time while you own this Contract, the laws of that state may vary your ownership rights.

An Owner must ordinarily be a natural person, or a trust or other legal entity holding a Contract for the benefit of a natural person. If the Owner or a joint owner is a non-natural person, then the age of the eldest Annuitant will be treated as the age of the owner for all purposes under this Contract.

Successor Owner

In some cases, your spouse may succeed to the ownership of the Contract after your death. Specifically, if you die before the Annuity Commencement Date and your spouse is the surviving joint owner or sole surviving Beneficiary under the Contract, he or she will become the successor owner of the Contract if (1) you make that Written Request before your death or (2) after your death, your spouse makes that Written Request within one year of your death and before the Death Benefit Commencement Date. As successor owner, your spouse will then succeed to all rights of ownership under the Contact except the right to name another successor owner.


1998 Version		Your spouse may not succeed to the ownership of the Contract after your death unless the Contract was issued with an endorsement that permits your spouse to become the successor owner.

Joint Owners


Tax Qualified Contracts		For an individual Contract, no joint owner is permitted.

Non Tax Qualified Contracts		Two persons may jointly own the Contract. Each joint owner may exercise allocation and transfer rights independently. All other rights of ownership must be exercised by joint action.

		A surviving joint owner who is not the spouse of a deceased owner may not become a successor owner, but will be deemed to be the Beneficiary of the Death Benefit that becomes payable on the death of the first owner to die, regardless of any Beneficiary designation.

*Transfer of Ownership*
Tax Qualified Contracts		You may not transfer, sell or in any way alienate your interest in the Contract except to the limited extent provided in the tax qualification endorsement.

Non Tax Qualified Contracts		You may transfer ownership at any time during your lifetime. A transfer must be made by Written Request. Except as otherwise elected or required by law, a transfer of ownership will not cancel a designation of an Annuitant or Beneficiary or a settlement option election. A transfer of ownership may have adverse tax consequences

*Assignment*
Tax Qualified Contracts		You may not pledge, charge, encumber, or in any way assign your interest in the Contract.

Non Tax Qualified Contracts		You may assign all or any part of your rights under this Contract except the rights to:
		• designate or change a Beneficiary
		• designate or change an Annuitant
		• transfer ownership and
		• elect a settlement option.
		The person to whom rights are assigned is called an assignee. An assignment must be made by Written Request. We are not responsible for the validity of any assignment. If an assignment is allowed, the rights of an assignee, including the right to any payment under the Contact, come before the right of the Owner, Annuitant, Beneficiary, or other payee. An assignment may be ended only by the assignee or as provided by law.

Annuitant Provisions

The Annuitant is the natural person on whose life Annuity Benefit payments are based.

Annuitant


Tax Qualified Contracts		If this Contract is an individual contract, the Annuitant must be the Owner. If this Contract is a group contract, then the Annuitant is the designated participant in the group plan for whose benefit the Contract was purchased. The designation cannot be changed.

Non Tax Qualified Contracts		The Annuitant is the person or persons designated by you. If you do not designate an Annuitant or if no Annuitant designated by you is surviving, then the Annuitant will be each Owner who is a natural person.

		• A designation may name 2 or more natural persons jointly as the Annuitant. On the death of a joint Annuitant, the survivor will become the sole Annuitant.
		• A designation may name a contingent Annuitant. A contingent Annuitant will become the Annuitant only if there is no surviving primary Annuitant.

		You generally may make or change a designation of Annuitant at any time before the Annuity Commencement Date. A designation of annuitant must be made by Written Request.

		The designation of Annuitant may not be made or changed if the Owner or a joint owner is a trustee or a non-natural person. Except as otherwise elected or as required by law, a change of Annuitant will not cancel a designation of a Beneficiary or a settlement option election.

Beneficiary Provisions

The Beneficiary is the person entitled to receive any Death Benefit under this Contract.

If there is a joint owner and that joint owner survives you, then that joint owner is the Beneficiary regardless of any designation of Beneficiary made by you. If there is no joint owner who survives you, than the Beneficiary is the person or persons that you designate. If there is no joint Owner or Beneficiary designated by you who survives you, then your estate will be the Beneficiary.

If a Beneficiary dies within 30 days after your death, we will assume that he or she did not survive you for purposes of this Contract.

You may designate 2 or more persons jointly as the Beneficiary. Unless you state otherwise, joint Beneficiaries who survive you will be entitled to equal shares. You may also designate one or more persons as contingent Beneficiary. Unless you state otherwise, a contingent Beneficiary will be entitled to a benefit only if there is no primary Beneficiary who survives you.

Unless you have specified that a prior designation of Beneficiary is irrevocable, you may make or change a designation of Beneficiary at any time before the Annuity Commencement Date. A designation of Beneficiary must be made by Written Request. Except as otherwise elected or as required by law, a change of Beneficiary will not cancel a designation of an Annuitant or a settlement option election.

The Beneficiary will be the measuring life for life contingent Death Benefit payments (Option C).

Payees under the Contract

A payee is a person to whom benefits are paid under this Contract.

Payees


Tax Qualified Contracts		You are the Annuitant under the Contract and, as the Annuitant, you are the payee of the Annuity Benefit.

Non Tax Qualified Contracts		The Beneficiary is the payee of the Death Benefit. The Annuitant under the Contract is the payee of the Annuity Benefit. If you are not the Annuitant, you can elect to have the Annuity Benefit Payments made to you as payee.

		The Beneficiary is the payee of the Death Benefit.

*Designation of Other Payees*

Annuity Benefits		You may designate a contingent payee to receive Annuity Benefit payments that are still payable after the death of the payee.

		If there is no such payee or contingent payee surviving, then we will make such payments to the person or person designated as contingent payee by the last payee who received payments.

		Failing that, we will make such payments to the estate of the last payee who received payments.

		Unless you have specified that a prior designation is irrevocable, you may change the payee or contingent payee at any time.

Death Benefits		You may designate a contingent payee to receive Death Benefit payments that are still payable after the death of the Beneficiary.

		If there is no such payee or contingent payee surviving, then we will make such payments to the person or person designated as contingent payee by the Beneficiary.

		Failing that, we will make such payments to the estate of the last payee who received payments.

		A Beneficiary may not change a contingent payee designation made by you. A Beneficiary may make or change any other payee or contingent designation at any time.

A designation or change of payee or contingent payee must be made by Written Request. In any event, the Annuitant will be the person on whose life Annuity Benefits payments are based and the Beneficiary will be the person on whose life Death Benefit payments under a settlement option will be based. No change of payee or contingent payee at any time will change this.

Irrevocable naming of a Payee other than the Owner can have adverse tax consequences.

ANNUITY INVESTORS LIFE INSURANCE COMPANY^®

The Company is a stock life insurance company incorporated under the laws of the State of Ohio in 1981. The Company is principally engaged in the sale of variable and fixed annuity policies. The administrative office of the Company is located at 525 Vine Street, Cincinnati, Ohio 45202.

The Company is a wholly owned subsidiary of Great AmericanLife Insurance Company^Ò, which is a wholly owned subsidiary of Great American Financial Resources^Ò, Inc. (“GAFRI”), a publicly traded insurance holding company (NYSE: GFR). GAFRI is in turn indirectly controlled by American Financial Group, Inc., a publicly traded holding company (NYSE: AFG).

We may from time to time publish in advertisements, sales literature and reports to Owners the ratings and other information assigned to the Company by one or more independent rating organizations such as A.M. Best Company, Standard & Poor’s, and Fitch. The purpose of the ratings is to reflect the financial strength and/or claims-paying ability of the Company. Each year A.M. Best Company reviews the financial status of thousands of insurers, culminating in the assignment of Best’s Ratings. These ratings reflect A.M. Best Company’s opinion of the relative financial strength and operating performance of an insurance company in comparison to the norms of the life/health insurance industry. Ratings of the Company do not reflect the investment performance of the Separate Account or the degree of risk associated with an investment in the Separate Account.

The obligations under the Contracts are obligations of the Company. The fixed benefits under this Contract are provided through the Fixed Account. The Fixed Account is part of our general account and its values are not dependent on the investment performance of the Subaccounts that make up the Separate Account. The variable benefits under this Contract are provided through the Separate Account, which is described below.

The Company and Great American Advisors ^{^®}, Inc., the principal underwriter of the Contracts, are involved in various kinds of routine litigation that, in management’s judgment, are not of material importance to their assets or the Separate Account. There are no pending legal proceedings against the Separate Account.

THE SEPARATE ACCOUNT

We established the Separate Account on December 19, 1996, as an insurance company separate account under the laws of the State of Ohio pursuant to resolution of our Board of Directors. It is divided into Subaccounts that invest in corresponding Portfolios.

The assets of the Separate Account will be held for the exclusive benefit of Owners of, and the persons entitled to payment under, the Contracts offered by this prospectus and all other contracts issued by the Separate Account. The assets of the Separate Account are owned by the Company, but they are held separately from the other assets of the Company. Under Ohio law, the assets of a separate account are not chargeable with liabilities incurred in any other business operation of the Company. Income, gains and losses incurred on the assets in the Separate Account, whether realized or not, are credited to or charged against the Separate Account, without regard to other income, gains or losses of the Company. Therefore, the performance of the Separate Account is entirely independent of the investment performance of our general account assets or any other separate account maintained by us.

We may operate the Separate Account as a management company or any other form permitted by law. We may de-register the Separate Account in the event such registration is no longer required. We may combine the Separate Account with one or more separate accounts. We would only take these actions if we deemed them to be in the best interest of persons having voting right under the Contracts.

DISTRIBUTION OF VARIABLE ANNUITY CONTRACTS

Great American Advisors^®, Inc. (“GAA”) is the principal underwriter of the contracts. Its business address is 525 Vine Street, Cincinnati, Ohio 45202. GAA is a wholly-owned subsidiary of Great American Financial Resources, Inc. and an affiliate of the Company.

The Contracts are sold by insurance agents who are also registered representatives of (1) GAA or (2) other broker-dealers that have entered into selling agreements with GAA. GAA and the other broker-dealers are registered under the Securities Exchange Act of 1934, and are members of the National Association of Securities Dealers, Inc. All registered representatives who sell the Contracts are appointed by the Company as insurance agents and are authorized under applicable state insurance regulations to sell variable annuity contracts.

The Company pays commissions to GAA for promotion and sale of the contracts. GAA retains the commissions for sales made through its registered representatives, or pays the commissions to other broker-dealers for sales made through their registered representatives. GAA and the other broker-dealers pay their registered representatives from their own funds. Commissions paid by us are calculated as a percentage of the purchase payments received for a contract or a percentage of the contract value (sometimes called a trail commission).

Commissions paid on the Contracts and payments for other services are not charged directly to you or your Account Value, but are charged indirectly through fees and charges imposed under the Contracts. If these fees and charges are not sufficient to cover the commissions and other payments, any deficiency will be made up from our general assets.

We paid the following amounts to GAA for the last three years: $1,757,857 for 2006, $1,995,224 for 2005, and $2,262,019 for 2004. These amounts include compensation related to other contracts issued through Annuity Investors Variable Account B.

A Portfolio may compensate the Company or GAA for the distribution and operational services that the Company or GAA provides and the costs that it incurs in providing these services. For example, each business day, we aggregate all purchase, redemption, and transfer requests from Contract owners with respect to a Portfolio and submit one request to the applicable Portfolio. As a result, the Portfolio does not incur the expenses related to processing individual requests from Contract owners. GAA also maintains the distribution network that supports the sale of our variable annuity products that invest in the Portfolios. Payments from a Portfolio to the Company or GAA for these services may be made pursuant to (1) the Portfolio’s Rule 12b-1 plan, in which case the payments are deducted from the Portfolio’s assets or (2) service, administration, sub-transfer or similar agreements between the Company or GAA and the Portfolio’s investment adviser or its affiliate.

FEDERAL TAX MATTERS

This section provides a general description of federal income tax considerations relating to the Contracts. The purchase, holding and transfer of a Contract may have federal estate and gift tax consequences in addition to income tax consequences. Estate and gift taxation is not discussed in this prospectus or in the Statement of Additional Information. State taxation will vary depending on the state in which you reside, and is not discussed in this prospectus or in the Statement of Additional Information.

The tax information provided in the prospectus and Statement of Additional Information is not intended or written to be used as legal or tax advice. It is written solely to provide information related to the sale and holding of the Contracts. As a taxpayer, you cannot use it for the purpose of avoiding penalties that may be imposed under the tax laws. You should seek advice on legal or tax questions based on your particular circumstances from an independent attorney or tax advisor.

Tax Deferral on Annuities

Internal Revenue Code (“IRC”) Section 72 governs taxation of annuities in general. The income earned on a Contract is generally not included in income until it is withdrawn from the Contract. In other words, a Contract is a tax-deferred investment. The Contracts must meet certain requirements in order to qualify for tax-deferred treatment under IRC Section 72. These requirements are discussed in the Statement of Additional Information. In addition, tax deferral is not available for a Contract when the Owner is not a natural person unless the Contract is part of a tax-qualified retirement plan or the Owner is a mere agent for a natural person. For a nonqualified deferred compensation plan, this rule means that the employer as Owner of the Contract will generally be taxed currently on any increase in the Account Value, although the plan itself may provide a tax deferral to the participating employee. For a group nonqualified Contract where the Owner has no rights over the separate interests, this rule is applied to each participant who is not a natural person.

Tax-Qualified Retirement Plans

Annuities may also qualify for tax-deferred treatment, or serve as a funding vehicle, under tax-qualified retirement plans that are governed by other IRC provisions. These provisions include IRC Sections 401 (pension and profit sharing plans), 403(b) (tax-sheltered annuities), 408 and 408A (individual retirement annuities), and 457(g) (governmental deferred compensation plans). Tax-deferral is generally also available under these tax-qualified retirement plans through the use of a trust or custodial account without the use of an annuity.

The tax law rules governing tax-qualified retirement plans and the treatment of amounts held and distributed under such plans are complex. If the Contract is to be used in connection with a tax-qualified retirement plan, including individual retirement annuities (“IRAs”), you should seek competent legal and tax advice regarding the suitability of the Contract for the situation involved and the requirements governing the distribution of benefits.

Contributions to a tax-qualified Contract are typically made with pre-tax dollars, while contributions to a non-tax-qualified Contract are typically made from after-tax dollars, though there are exceptions in either case. Tax-qualified Contracts may also be subject to restrictions on withdrawals that do not apply to non-tax-qualified Contracts. These restrictions may be imposed to meet the requirements of the IRC or of an employer plan. Following is a brief description of the types of tax-qualified retirement plans for which the Contracts are available.

Individual Retirement Annuities

IRC Sections 219 and 408 permit individuals or their employers to contribute to an individual retirement arrangement known as an “Individual Retirement Annuity” or “IRA”. Under applicable limitations, an individual may claim a tax deduction for certain contributions to an IRA. Contributions made to an IRA for an employee under a Simplified Employee Pension (SEP) Plan or Savings Incentive Match Plan for Employees (SIMPLE) established by an employer will not be includable in the gross income of the employee until the employee receives distributions from the IRA. Distributions from an IRA are taxable to the extent that they represent contributions for which a tax deduction was claimed, contributions made under a SEP plan or SIMPLE, or income earned on the Contract.

Roth IRAs

IRC Section 408A permits certain individuals to contribute to a Roth IRA. Contributions to a Roth IRA are not tax deductible. Tax-free distributions of contributions may be made at any time. Distributions of earnings are tax-free following the five-year period beginning with the first year for which a Roth IRA contribution was made if the Owner has attained age 59¹/2, become disabled, or died, or for qualified first-time homebuyer expenses.

Tax-Sheltered Annuities

IRC 403(b) of the Code permits contributions to a “tax-sheltered annuity” or “TSA” for the employees of public schools and certain charitable, religious, educational and scientific organizations described in IRC Section 501(c)(3). TSA contributions and Contract earnings are generally not included in the gross income of the employee until the employee receives distributions from the TSA. Amounts attributable to contributions made under a salary reduction agreement cannot be distributed until the employee attains age 59¹/2, severs employment, becomes disabled, incurs a hardship, or dies. The Texas ORP or any other plan under which the Contract was purchased may impose additional restrictions.

Texas Optional Retirement Program

The Texas Optional Retirement Program (“ORP”) provides for the purchase of IRC 403(b) Tax-Sheltered Annuities with fixed employer and employee contributions. Amounts attributable to such contributions cannot be distributed until the employee terminates employment from all Texas public institutions of higher education, retires, attains age 70¹/2, or dies. Amounts attributable to employer contributions vest after one year of participation. Distributions require written certification from the employer of the employee’s vesting status and, if the employee is living and under age 70¹/2, the employee’s retirement or other termination from employment.

Pension, Profit–Sharing, and 401(k) Plans

IRC Section 401 permits employers to establish various types of retirement plans for employees, and permits self-employed individuals to establish such plans for themselves and their employees. These plans may use annuity contracts to fund plan benefits. Generally, contributions are deductible to the employer in the year made, and contributions and earnings are generally not included in the gross income of the employee until the employee receives distributions from the plan. The IRC and the plan may impose restrictions on distributions. Purchasers of a Contract for use with such plans should seek competent advice regarding the suitability of the proposed plan documents and the Contract for their specific needs.

Roth TSAs and Roth 401(k)s

IRC Section 402A permits participants in certain TSA programs or 401(k) plans to designate some part or all of their future elective contributions as Roth contributions. Roth contributions to a TSA or 401(k) plan are included in the participant’s taxable income as earned. Distributions are considered to come proportionally from contributions and earnings. Distributions attributable to contributions are tax-free. Distributions attributable to earnings are tax-free following the five-year period beginning with the first year for which Roth contributions are made to the plan if the Owner has attained age 59¹/2, become disabled, or died. Amounts attributable to Roth TSA and Roth 401(k) contributions are subject to the same distribution restrictions that apply to other amounts attributable to TSA or 401(k) contributions made under a salary reduction agreement. The plan may impose additional restrictions.

Governmental Deferred Compensation Plans

State and local government employers may purchase annuity contracts to fund deferred compensation plans for the benefit of their employees described in IRC Section 457(b). Contributions and earnings are generally not included in the gross income of the employee until the employee receives distributions from the plan. Amounts cannot be distributed until the employee attains age 70¹/2, severs employment, becomes disabled, incurs an unforeseeable emergency, or dies. The plan may impose additional restrictions.

Nonqualified Deferred Compensation Plans

Employers may invest in annuity contracts in connection with unfunded deferred compensation plans for their employees. Such plans may include deferred compensation plans of non-governmental tax-exempt employers described in IRC Section 457(b); deferred compensation plans of both governmental and nongovernmental tax-exempt employers that are taxed under IRC Section 457(f) and subject to Section 409A; and nonqualified deferred compensation plans of for-profit employers subject to Section 409A. In most cases, these plans are designed so that amounts credited under the plan will not be includable in the employees’ gross income until paid under the plan. In these situations, the annuity contracts are not plan assets and are subject to the claims of the employer’s general creditors. Whether or not made from the Contract, benefits payments are subject to restrictions imposed by the IRC and the plan.

Summary of Income Tax Rules

The following chart summarizes the basic income tax rules governing tax-qualified and non-tax-qualified Contracts.


	Tax-Qualified Contracts and Employer Plans	Basic Non-Tax-Qualified Contracts
	• IRC §401 (Pension, Profit–Sharing, 401(k))	IRC §72 only
	• IRC §403(b) (Tax-Sheltered Annuities)
	• IRC §408 (IRA, SEP, SIMPLE IRA)
	• IRC §408A (Roth IRA)
	• IRC §402A (Roth TSA or Roth 401(k))
	• IRC §457
Plan Types	• IRC §409A (Nonqualified Deferred Compensation)

Who May Purchase a Contract	Natural person, employer, or employer plan. Nonqualified deferred compensation plans will generally lose tax-deferred status of Contract itself.	Anyone. Non-natural person may purchase but will generally lose tax-deferred status.

Restrictions on Distributions	Distributions from tax-qualified Contracts may be restricted to meet requirements of the Internal Revenue Code and/or terms of the retirement plan.	None.

Taxation of Surrenders	If there is an after-tax “investment in the contract,” a pro rata portion of the amount surrendered is taxable income based on the ratio of “investment in the contract” to Account Value. Usually, 100% of distributions from a qualified plan must be included in taxable income because there were no after-tax contributions and therefore no “investment in the contract.” Distributions from §408A Roth IRA or §402A Roth TSA or Roth 401(k) are completely tax free if certain requirements are met.	Account Value in excess of “investment in the contract” is included in taxable income. Generally, the “investment in the contract” will equal the sum of all purchase payments less prior non-taxable withdrawals. Surrenders are deemed to come from earnings first, and “investment in the contract” last. For a Contract purchased through a IRC §1035 exchange that includes contributions made before August 14, 1982, withdrawals are not taxable until those contributions have been returned in full.

Taxation of Benefit Payments (annuity benefit payments or death benefit payments)	For fixed dollar benefit payments, a percentage of each payment is tax free equal to the ratio of after-tax “investment in the contract” (if any) to the total expected payments, and the balance is included in taxable income. For variable dollar payments, a specific dollar amount of each payment is tax free, as predetermined by a pro rata formula, rather than a percentage of each payment. In either case, once the after-tax “investment in the contract” has been recovered, the full amount of each benefit payment is included in taxable income. Distributions from a §408A Roth IRA or §402A Roth TSA or Roth 401(k) are completely tax free if certain requirements are met.

Taxation of Lump Sum Death Benefit	Taxed to recipient generally in same manner as full surrender.

Possible Penalty Taxes for Surrenders and Benefit Payments Before Age 59¹/2	Taxable portion of payments made before age 59¹/2 may be subject to 10% penalty tax (or 25% for a SIMPLE IRA during the first two years of participation). Penalty taxes do not apply to payments after the participant’s death, or to §457 plans or §409A nonqualified deferred compensation plans. Other exceptions may apply.	Taxable portion of payments made before age 59¹/2 may be subject to a 10% penalty tax. Penalty taxes do not apply to payments after the Owner’s death. Other exceptions may apply.

Assignment of Contract/Transfer of Ownership	Assignment and transfer of Ownership generally not permitted.	Generally, deferred earnings taxable to transferor on transfer or assignment; transferee’s “investment in the contract” is increased by same amount. Gift tax consequences are not discussed herein.

Federal Income Tax Withholding	Eligible rollover distributions from §401, §403(b), and governmental §457(b) plan Contracts are subject to 20% mandatory withholding on taxable portion unless direct rollover. Distributions under nongovernmental §457(b) plan, 457(f) plan, and nonqualified deferred compensation plan are subject to wage withholding. For all other payments, Payee may elect to have taxes withheld or not.	Generally, Payee may elect to have taxes withheld or not.

CALCULATION OF BENEFIT PAYMENTS

Fixed Dollar Payments

The amount to be applied to Fixed Dollar payments is the Fixed Account Value as of the Commencement Date. It will include the amount of any transfer to Fixed Dollar payments that is made from the Separate Account on that date. It will not include the amount of any transfer to Variable Dollar payments that is made from the Fixed Account as of the end of the Valuation Period that precedes the Commencement Date. The amount to be applied to payments will be reduced by any fees and charges, loans, or applicable premium tax or other taxes not previously deducted.

The Fixed Account Value for this Contract at any time is equal to:

1)		Purchase Payment(s) that are allocated to the Fixed Account options; plus

2)		amounts transferred to the Fixed Account; plus

3)		interest credited to the Fixed Account; less

4)		any withdrawals, surrender, deductions, and transfers from the Fixed Account; and less

5)		other charges and adjustments made as described elsewhere in this Contract.

Fixed Dollar payments are determined as follows. We start with the amount to be applied to Fixed Dollar payments, expressed in thousands of dollars. This amount is then multiplied by the amount of the periodic payment per $1,000 of value. This payment is obtained from the Settlement Option Table for the option that is elected. Fixed Dollar payments will remain level for the duration of the payment period.

Variable Dollar Payments

The amount to be applied to Variable Dollar payments is the Variable Account Value as of the end of the Valuation Period that precedes the Commencement Date. It will include the amount of any transfer to Variable Dollar payments that is made from the Fixed Account as of that same time. It will be reduced by the amount of any transfer to Fixed Dollar payments that is to be made from the Separate Account on the Commencement Date. An amount that is transferred from the Fixed Account will be allocated among the Subaccounts by Written Request.

At any time, the Variable Account Value for this Contract is equal to the sum of the values of your interest in each Subaccount. The value of your interest in a Subaccount is equal to the number of your Accumulation Units for that Subaccount multiplied by the Accumulation Unit Value for that Subaccount. These values are determined as of the end of the preceding Valuation Period. The amount to be applied to payments will be reduced by any fees and charges, loans, or applicable premium tax or other taxes not previously deducted.

The Variable Dollar base payment is determined as follows. We start with the amount to be applied to Variable Dollar payments, expressed in thousands of dollars. This amount is then multiplied by the amount of the periodic payment per $1,000 of value. This payment is obtained from the Settlement Option Table for the option that is elected.

The number of Benefit Units in each Subaccount held for Variable Dollar payments is determined as follows. We divide the dollar amount of the Variable Dollar base payment from each Subaccount by the Benefit Unit Value for that Subaccount as of the Commencement Date. The number of Benefit Units in each Subaccount will change if the Person Controlling Payments makes transfers among Subaccounts. The Benefit Units in each Subaccount will change proportionally to a change in the base payment due to any change in the payment interval or as specified by the settlement option. Otherwise, the number of Benefit Units remains fixed during the payment period.

The actual amount of each Variable Dollar payment will reflect the investment performance of the Subaccount(s) selected. It may vary from payment to payment. The total amount of each Variable Dollar payment will be equal to the sum of the payments from each Subaccount. We will deduct a pro-rata portion of the Contract Maintenance Fee from this total.

The payment from each Subaccount is found by multiplying the number of Benefit Units held in that Subaccount for such Variable Dollar payments by the Benefit Unit Value for that Subaccount. We do this as of the end of the fifth Valuation Period before the date that the payment is due. An explanation of how Benefit Unit Values are calculated is included in the Glossary of Financial Terms of this prospectus.

GLOSSARY OF FINANCIAL TERMS

The following financial terms are explained in this section of the Prospectus: account value, variable account value, fixed account value, accumulation units, accumulation unit value, benefit unit value and net investment factor. Read these terms in conjunction with the other sections of this prospectus.

Account Value

The aggregate value of your interest in the Fixed Account options and all of the Subaccounts is referred to as the “Account Value.” The value of your interest in all of the Subaccounts is the “Variable Account Value. The value of your interest in all of the Fixed Account options is the “Fixed Account Value.”

The Account Value at any given time is the sum of: (1) amounts invested in the Fixed Account options plus the fixed rate(s) of interest earned on those amounts as of that time and (2) the value of your interest in the Subaccounts as of that time.

The value of your interest in a Subaccount at any time is equal to (1) the number of Accumulation Units for that Subaccount attributable to your Contract multiplied by (2) the Accumulation Unit Value for that Subaccount at the end of the preceding Valuation Period.

The Account Value at any time is net of any charges, deductions, surrenders, and/or outstanding loans incurred prior to or as of the end of that Valuation Period.

Accumulation Units

Purchase Payment(s) that are allocated to a Subaccount, and amounts that are transferred to a Subaccount, are converted into Accumulation Units. The number of Accumulation Units credited is determined by dividing the dollar amount directed to that Subaccount by the value of the Accumulation Unit for that Subaccount at the end of the Valuation Period during which the amount is received.

The following events will result in the cancellation of an appropriate number of Accumulation Units of a Subaccount:

1)		a transfer from a Subaccount;

2)		the surrender or a withdrawal of the Variable Account Value;

3)		the payment of a Death Benefit;

4)		the application of the Variable Account Value to a settlement option; or

5)		the deduction of the charges, fees, or other adjustments described in this Contract.

Accumulation Units will be canceled as of:

1)		the end of the Valuation Period during which we receive a Written Request that gives rise to such cancellation;

2)		the Commencement Date; or

3)		the end of the Valuation Period on which a charge, fee, or other adjustment is due.

Accumulation Unit Value

The initial Accumulation Unit Value for the Money Market Subaccount was set at $1.00. The initial Accumulation Unit Value for each of the other Subaccounts was set at $10.00. After that, the Accumulation Unit Value at the end of each Valuation Period is the Accumulation Unit Value as of the end of the prior Valuation Period multiplied by the Net Investment Factor. The Net Investment Factor is described below. The Accumulation Unit Values will vary as a result of the varying investment experience of the Funds.

Benefit Unit Value

The Benefit Unit Value for each Subaccount is originally established in the same manner as Accumulation Unit Values. For any date after that, the value of a Benefit Unit for a Subaccount is determined by multiplying the Benefit Unit Value as of the end of the preceding Valuation Period by the Net Investment Factor described below. The product is then multiplied by the assumed daily investment factor for the number of days in the Valuation Period. The assumed daily investment factor is based on the assumed net investment rate for the Settlement Option Table that is used to fix the base payment.

Net Investment Factor


ü Net asset value		The amount computed by a Fund as the price at which the Fund’s shares are purchased and redeemed. It is computed no less frequently than each Valuation Period.

The Net Investment Factor is a measure of the investment performance of a Subaccount from one Valuation Period to the next. Each Subaccount has a Net Investment Factor for each Valuation Period. The Net Investment Factor may be greater than one, or it may be less than one. This means that the Accumulation Unit Value for each Subaccount may increase or it may decrease.

The Net Investment Factor for any Subaccount for any Valuation Period is determined by dividing (1) by (2) and then subtracting (3) from the result, where:

(1)

is equal to:

	a)		the Net Asset Value per share of the Fund held in the Subaccount, determined at the end of the applicable Valuation Period; plus

	b)		the per share amount of any dividend or net capital gain distributions made by the Fund held in the Subaccount, if the “ex-dividend” date occurs during the applicable Valuation Period; plus or minus

	c)		a per share charge or credit for any taxes reserved for, which is determined by the Company to have resulted from the investment operations of the Subaccount;

(2)

is the Net Asset Value per share of the Fund held in the Subaccount, determined at the end of the preceding Valuation Period; and

(3)

is the sum of the Mortality and Expense Risk Charge and the Administration Charge to be deducted from the Subaccount for the number of days in the applicable Valuation Period.

PERFORMANCE INFORMATION

From time to time, we may advertise yields and/or total returns for the Subaccounts. These figures are based on historical information and are not intended to indicate future performance. Performance data and a more detailed description of the methods used to determine yield and total return are included in the Statement of Additional Information.

Yield Data

The “yield” of the money market Subaccount refers to the annualized income generated by an investment in that Subaccount over a specified seven-day period. The “effective yield” of the money market Subaccount is the same as the “yield” except that it assumes reinvestment of the income earned in that Subaccount. The effective yield will be slightly higher than the yield because of the compounding effect of this assumed reinvestment. We only advertise yields for the money market Subaccount.

Total Return Data

We may advertise two types of total return data: “average annual total return” and “cumulative total return.” Average annual total return is presented in both standardized and non-standardized form. Cumulative total return data is currently presented only in non-standardized form. “Standardized” total return data reflects the deduction of all charges that apply to all Contracts of that type, except for premium taxes. “Non-standardized” total return data does not reflect the deduction of contract maintenance fees. Total return data that does not reflect contract maintenance fees will be higher than the total return realized by an Owner who incurs the charges.

“Average annual total return” is either hypothetical or actual return data that reflects performance of a Subaccount for a one-year period or for an average of consecutive one-year periods. If average annual total return data is hypothetical, it reflects performance for a period of time before the Separate Account commenced operations. When a Subaccount has been in operation for one, five and ten years, average annual total return will be presented for these periods, although other periods may be presented as well.

“Cumulative total return” is either hypothetical or actual return data that reflects the performance of a Subaccount from the beginning of the period presented to the end of the period presented. If cumulative total return data is hypothetical, it reflects performance for a period of time before the Separate Account commenced operations.

Other Performance Measures

We may include in reports and promotional literature rankings of the Subaccounts, the Separate Account or the Contracts, as published by any service, company, or person that ranks separate accounts or other investment products on overall performance or other criteria. Examples of companies that publish such rankings are Lipper Analytical Services, Inc., VARDS, IBC/Donoghue’s Money Fund Report, Financial Planning Magazine, Money Magazine, Bank Rate Monitor, Standard & Poor’s Indices, Dow Jones Industrial Average, and Morningstar.

We may also:

•

compare the performance of a Subaccount with applicable indices and/or industry averages

•

present performance information that reflects the effects of tax-deferred compounding on Subaccount investment returns

•

compare investment return on a tax-deferred basis with currently taxable investment return

•

illustrate investment returns by graphs, charts, or otherwise

THE REGISTRATION STATEMENT

We filed a Registration Statement with the SEC under the Securities Act of 1933 relating to the Contracts offered by this prospectus. This prospectus was filed as a part of the Registration Statement, but it does not constitute the complete Registration Statement. The Registration Statement contains further information relating to the Company and the Contracts. The Registration Statement and the exhibits thereto may be inspected and copied at the office of the SEC, located at 450 Fifth Street, N.W., Washington, D.C., and may also be accessed at the SEC’s web site www.sec.gov. The registration number for the Contracts is 333-51955.

Statements in this prospectus discussing the content of the Contracts and other legal instruments are summaries. The actual documents are filed as exhibits to the Registration Statement. For a complete statement of the terms of the Contracts or any other legal document, refer to the appropriate exhibit to the Registration Statement.

STATEMENT OF ADDITIONAL INFORMATION

A Statement of Additional Information containing more details concerning the subjects discussed in this prospectus is available. The following is the table of contents for the Statement of Additional Information:


	Page
ANNUITY INVESTORS LIFE INSURANCE COMPANY^{^®}		3
General Information and History		3
State Regulations		3
SERVICES		3
Safekeeping of Separate Account Assets		3
Records and Reports		3
Experts		3
DISTRIBUTION OF THE CONTRACTS		4
CALCULATION OF PERFORMANCE INFORMATION		4
Money Market Subaccount Standardized Yield Calculation		4
Average Annual Total Return Calculation		5
Cumulative Total Return Calculation		6
Standardized Average Annual Total Return Data		7
Non-Standardized Average Annual Total Return Data		13
OTHER PERFORMANCE MEASURES		22
BENEFIT UNITS-TRANSFER FORMULAS		23
FEDERAL TAX MATTERS		24
Taxation of Separate Account Income		24
Tax Deferred Status of Non Qualified Contracts		25
FINANCIAL STATEMENTS		25

Copies of the Statement of Additional Information dated May 1, 2007 are available without charge. To request a copy, please clip this coupon on the dotted line below, enter your name and address in the spaces provided, and mail to: Annuity Investors Life Insurance Company,P.O. Box 5423, Cincinnati, Ohio 45201-5423. You may also call the Company at 1-800-789-6771, or visit us at our web site www.gafri.com to request a copy.


Name:


Address:


City:


State:


Zip:

APPENDIX A: CONDENSED FINANCIAL INFORMATION


					Number of				Number of
					Enhanced				Enhanced
			Enhanced		(1.10% Total		Enhanced		(0.90% Total
			(1.10% Total		Separate		(0.90% Total		Separate
	Number of		Separate		Account		Separate		Account
	Standard		Account		Expenses)		Account		Expenses)
Standard	Accumulation		Expenses)		Accumulation		Expenses)		Accumulation
Accumulation	Units		Accumulation		Units		Accumulation		Units
Unit Value	Outstanding		Unit Value		Outstanding		Unit Value		Outstanding		Year
AIM V.I. Capital Development Fund-Series I Shares
12.930724		1,168,401.050		13.012710		6,948.243		13.067437		0.000		12/31/06
11.254617		16,459.887		11.291687		1,008.183		11.316377		0.000		12/31/05
10.413665		2,721.825		10.416351		0.000		10.418135		0.000		12/31/04
AIM V.I. Core Equity Fund-Series I Shares
10.812798		946,182.515		10.834974		3,675.733		10.849709		0.000		12/31/06
AIM V.I. Financial Services Fund-Series I Shares
13.250780		177,386.400		13.477974		2,490.821		13.631352		0.000		12/31/06
11.540835		198,663.153		11.703172		1,383.076		11.812566		0.000		12/31/05
11.051409		208,252.570		11.172949		256.950		11.254711		0.000		12/31/04
10.313195		157,061.561		10.395135		38.751		10.450179		0.000		12/31/03
8.070175		118,822.635		8.110243		0.000		8.137086		0.000		12/31/02
9.616190		71,816.401		9.635286		0.000		9.648046		0.000		12/31/01
AIM V.I. Global Health Care Fund-Series I Shares
11.212446		367,788.244		11.404707		1,104.143		11.534535		0.000		12/31/06
10.805644		405,402.095		10.957652		948.050		11.060091		0.000		12/31/05
10.132965		382,011.757		10.244403		727.654		10.319384		0.000		12/31/04
9.553444		311,542.224		9.629350		552.891		9.680353		1,325.870		12/31/03
7.580976		210,450.701		7.618614		203.656		7.643844		1,160.526		12/31/02
10.175290		59,824.959		10.195475		0.000		10.208982		0.000		12/31/01
AIM V.I. High Yield Fund-Series I Shares
11.887590		336,558.419		11.984482		257.915		12.049249		0.000		12/31/06
10.886907		350,885.548		10.942429		230.396		10.979447		0.000		12/31/05
10.749148		449,939.142		10.771273		214.851		10.785980		0.000		12/31/04
10.095432		859,221.923		10.290759		188.060		9.127994		755.565		12/31/03
8.186958		488,086.809		8.320679		169.835		7.365950		653.397		12/31/02
8.410616		546,183.962		8.522682		149.057		7.529874		2,221.642		12/31/01
10.025816		403,918.794		—		—		—		—		12/31/00
11.510803		221,636.210		—		—		—		—		12/31/99
10.689459		70,047.913		—		—		—		—		12/31/98
10.687084		10,260.821		—		—		—		—		12/31/97
AIM V.I. Small Cap Equity Fund-Series I Shares
12.572746		59,594.167		12.652463		552.133		12.705655		0.000		12/31/06
10.857407		15,527.249		10.893167		559.580		10.916974		0.000		12/31/05
10.184771		48.134		10.187404		0.000		10.189150		0.000		12/31/04
AIM V.I. Small Company Growth Fund-Series I Shares
10.356858		145,499.534		10.534498		2,285.979		10.654423		0.000		12/31/06
9.203351		141,453.043		9.332860		465.384		9.420117		0.000		12/31/05
8.873033		123,848.236		8.970653		388.008		9.036335		0.000		12/31/04
7.900935		131,306.947		7.963751		34.809		8.005948		1.635		12/31/03
6.004149		155,173.901		6.033996		0.000		6.054001		0.000		12/31/02


					Number of				Number of
					Enhanced				Enhanced
			Enhanced		(1.10% Total		Enhanced		(0.90% Total
			(1.10% Total		Separate		(0.90% Total		Separate
	Number of		Separate		Account		Separate		Account
	Standard		Account		Expenses)		Account		Expenses)
Standard	Accumulation		Expenses)		Accumulation		Expenses)		Accumulation
Accumulation	Units		Accumulation		Units		Accumulation		Units
Unit Value	Outstanding		Unit Value		Outstanding		Unit Value		Outstanding		Year
8.838420		27,720.462		8.856003		0.000		8.867759		0.000		12/31/01
American Century VP Large Company Value Fund-Class I Shares
12.494572		420,902.275		12.573776		280.955		12.626654		0.000		12/31/06
10.560864		99,384.541		10.595660		82.915		10.618830		0.000		12/31/05
10.216542		36,701.792		10.219180		0.000		10.220930		0.000		12/31/04
American Century VP Mid Cap Value Fund-Class I Shares
13.320957		911,824.088		13.405406		2,031.092		13.461747		0.000		12/31/06
11.229852		114,376.075		11.266849		132.931		11.291465		0.000		12/31/05
10.395465		24,970.228		10.398152		0.000		10.399928		0.000		12/31/04
American Century VP Ultra^{^®}Fund-Class I Shares
9.979396		707,542.380		10.042693		8,378.330		10.084934		0.000		12/31/06
10.463493		32,615.015		10.497965		0.000		10.520913		0.000		12/31/05
10.386756		598.086		10.389435		0.000		10.391213		0.000		12/31/04
American Century VP Vista^SMFund-Class I Shares
11.918299		976,806.445		11.993889		11,321.554		12.044325		0.000		12/31/06
11.088360		79,780.294		11.124884		0.000		11.149189		0.000		12/31/05
10.399373		4,938.285		10.402055		0.000		10.403835		0.000		12/31/04
Dreyfus IP Technology Growth Portfolios-Initial Shares
10.684409		1,309,668.746		10.752145		7,254.620		10.797370		0.000		12/31/06
10.388053		32,100.558		10.422269		0.000		10.445063		0.000		12/31/05
10.151024		198.889		10.153642		0.000		10.155381		0.000		12/31/04
The Dreyfus Socially Responsible Growth Fund, Inc.-Initial Shares
11.353220		701,011.037		11.678582		5,863.440		9.584710		0.000		12/31/06
10.543914		795,479.598		10.813247		5,790.816		8.856675		0.000		12/31/05
10.320091		913,267.538		10.551666		5,286.547		8.625051		0.000		12/31/04
9.854396		925,266.631		10.045110		4,815.599		8.194494		4,333.000		12/31/03
7.930106		960,232.146		8.059684		3,420.290		6.561870		3,843.678		12/31/02
11.317226		1,066,026.751		11.468022		1,578.746		9.318292		3,077.581		12/31/01
14.823134		894,007.973		—		—		—		—		12/31/00
16.894039		408,482.196		—		—		—		—		12/31/99
13.169143		140,614.024		—		—		—		—		12/31/98
10.320883		26,332.500		—		—		—		—		12/31/97
Dreyfus Stock Index Fund, Inc.-Initial Shares
15.179498		4,190,418.249		15.614354		7,744.043		12.611288		0.000		12/31/06
13.328744		4,493,460.193		13.669089		6,535.021		11.017946		0.000		12/31/05
12.911696		4,792,865.682		13.201315		7,554.962		10.619518		0.000		12/31/04
11.835440		4,670,251.024		12.064404		9,003.839		9.685471		73,399.535		12/31/03
9.349226		4,454,143.840		9.501934		6,861.288		7.613224		67,021.625		12/31/02
12.210993		4,141,595.630		12.373650		4,522.004		9.894503		58,922.095		12/31/01
14.100696		3,598,196.884		—		—		—		—		12/31/00
15.760394		2,129,772.165		—		—		—		—		12/31/99
13.250646		779,485.606		—		—		—		—		12/31/98
10.479569		69,510.645		—		—		—		—		12/31/97


					Number of				Number of
					Enhanced				Enhanced
			Enhanced		(1.10% Total		Enhanced		(0.90% Total
			(1.10% Total		Separate		(0.90% Total		Separate
	Number of		Separate		Account		Separate		Account
	Standard		Account		Expenses)		Account		Expenses)
Standard	Accumulation		Expenses)		Accumulation		Expenses)		Accumulation
Accumulation	Units		Accumulation		Units		Accumulation		Units
Unit Value	Outstanding		Unit Value		Outstanding		Unit Value		Outstanding		Year
Dreyfus VIF Appreciation Portfolio-Initial Shares
15.017729		946,182.350		15.447987		4,551.668		12.602520		0.000		12/31/06
13.075735		1,005,802.778		13.409645		4,744.717		10.917645		0.000		12/31/05
12.704674		1,036,367.953		12.989662		6,831.224		10.554457		0.000		12/31/04
12.265787		936,025.635		12.503079		8,455.513		10.138694		2,923.121		12/31/03
10.264481		821,738.414		10.432114		6,651.281		8.442660		2,343.298		12/31/02
12.497173		717,965.716		12.663627		5,276.343		10.228319		1,894.964		12/31/01
13.974173		649,590.073		—		—		—		—		12/31/00
14.262203		517,772.082		—		—		—		—		12/31/99
12.975443		170,523.015		—		—		—		—		12/31/98
10.103905		18,347.666		—		—		—		—		12/31/97
Dreyfus VIF Developing Leaders Portfolio-Initial Shares
15.049986		807,530.215		15.481299		5,517.924		14.729135		0.000		12/31/06
14.708620		908,638.512		15.084331		6,468.518		14.322591		0.000		12/31/05
14.099077		919,021.905		14.415462		6,838.658		13.660000		0.000		12/31/04
12.842412		898,484.551		13.090970		9,249.068		12.379997		5,775.857		12/31/03
9.888294		887,931.962		10.049896		5,581.765		9.485334		5,490.189		12/31/02
12.397758		698,539.631		12.563024		2,568.238		11.833795		4,481.981		12/31/01
13.391746		482,890.909		—		—		—		—		12/31/00
11.984035		275,503.637		—		—		—		—		12/31/99
9.867472		171,968.905		—		—		—		—		12/31/98
10.362314		41,359.506		—		—		—		—		12/31/97
Dreyfus VIF Growth and Income Portfolio-Initial Shares
12.799045		534,977.589		13.165752		3,400.363		12.136646		0.000		12/31/06
11.335178		573,338.603		11.624648		4,096.135		10.694477		0.000		12/31/05
11.122877		660,745.227		11.372419		5,058.158		10.441383		0.000		12/31/04
10.496627		594,854.140		10.699714		4,344.521		9.804034		1,018.544		12/31/03
8.409071		633,983.863		8.546428		2,655.811		7.815544		780.152		12/31/02
11.419341		646,842.656		11.571439		1,474.275		10.560897		544.980		12/31/01
12.299306		572,006.660		—		—		—		—		12/31/00
12.961023		331,756.261		—		—		—		—		12/31/99
11.243790		159,409.837		—		—		—		—		12/31/98
10.196538		32,231.762		—		—		—		—		12/31/97
Dreyfus VIF Money Market Portfolio
1.183188		6,426,348.042		1.211707		35,651.958		1.189895		0.000		12/31/06
1.152576		6,753,332.466		1.177927		40,350.784		1.154189		0.000		12/31/05
1.140557		5,458,310.932		1.162738		4,618.151		1.137075		0.000		12/31/04
1.146684		11,398,828.937		1.165764		9,040.873		1.138179		133,840.928		12/31/03
1.153638		26,597,370.970		1.169798		23,476.567		1.140327		126,326.727		12/31/02
1.153108		17,775,594.379		1.166325		15,244.920		1.134928		127,843.640		12/31/01
1.128116		7,677,545.259		—		—		—		—		12/31/00
1.083700		2,638,837.162		—		—		—		—		12/31/99
1.050876		658,981.650		—		—		—		—		12/31/98
1.016499		0.000		—		—		—		—		12/31/97


					Number of				Number of
					Enhanced				Enhanced
			Enhanced		(1.10% Total		Enhanced		(0.90% Total
			(1.10% Total		Separate		(0.90% Total		Separate
	Number of		Separate		Account		Separate		Account
	Standard		Account		Expenses)		Account		Expenses)
Standard	Accumulation		Expenses)		Accumulation		Expenses)		Accumulation
Accumulation	Units		Accumulation		Units		Accumulation		Units
Unit Value	Outstanding		Unit Value		Outstanding		Unit Value		Outstanding		Year
DWS Small Cap Index VIP Fund-Class A
17.321028		452,371.808		17.722591		276.237		17.994514		0.000		12/31/06
14.951171		417,983.505		15.251478		151.892		15.454348		0.000		12/31/05
14.543337		347,239.433		14.790573		44.787		14.957190		0.000		12/31/04
12.525203		434,240.830		12.699687		8.778		12.816964		1,637.748		12/31/03
8.673629		165,980.862		8.768488		0.000		8.832017		1,015.061		12/31/02
11.074827		153,151.939		11.162755		54.021		11.221359		577.104		12/31/01
11.003134		83,894.729		—		—		—		—		12/31/00
11.606269		15,259.149		—		—		—		—		12/31/99
Janus Aspen Series Balanced Portfolio-Institutional Shares
20.527683		2,849,443.225		21.115777		10,256.899		16.733348		0.000		12/31/06
18.802986		3,224,954.488		19.283124		11,389.809		15.250326		0.000		12/31/05
17.664922		3,596,278.746		18.061165		13,350.072		14.255222		0.000		12/31/04
16.507560		3,685,075.400		16.826897		19,069.761		13.254381		55,839.756		12/31/03
14.676594		3,702,620.254		14.916257		13,120.266		11.726184		53,841.269		12/31/02
15.907374		3,578,735.833		16.119263		9,654.166		12.646851		49,552.895		12/31/01
16.920712		3,181,464.624		—		—		—		—		12/31/00
17.556100		1,571,579.505		—		—		—		—		12/31/99
14.043929		373,285.807		—		—		—		—		12/31/98
10.604609		30,519.754		—		—		—		—		12/31/97
Janus Aspen Series Forty Portfolio-Institutional Shares
11.403714		1,272,789.383		11.668168		6,914.755		11.847172		0.000		12/31/06
10.576925		1,421,322.533		10.789432		8,924.998		10.932929		0.000		12/31/05
9.505422		1,369,066.381		9.667060		9,080.188		9.775955		0.000		12/31/04
8.153727		1,483,721.928		8.267358		11,535.264		8.343697		15,170.725		12/31/03
6.859260		1,548,077.357		6.934292		7,637.061		6.984492		12,880.523		12/31/02
8.247987		1,650,016.481		8.313484		4,570.921		8.357094		14,587.924		12/31/01
10.678675		1,384,637.536		—		—		—		—		12/31/00
13.234548		471,936.628		—		—		—		—		12/31/99
Janus Aspen Series International Growth Portfolio-Institutional Shares
27.500771		1,183,279.918		28.288499		12,357.534		23.044141		0.000		12/31/06
18.969977		966,575.134		19.454325		10,632.810		15.815871		0.000		12/31/05
14.542258		681,071.772		14.868462		11,182.362		12.063394		0.000		12/31/04
12.398800		669,789.197		12.638673		15,388.121		10.233679		1,862.207		12/31/03
9.318679		678,787.112		9.470891		11,468.866		7.653548		1,312.902		12/31/02
12.698027		675,126.139		12.867174		7,907.782		10.377532		901.701		12/31/01
16.774550		620,740.857		—		—		—		—		12/31/00
20.234788		142,343.325		—		—		—		—		12/31/99
11.256365		45,382.775		—		—		—		—		12/31/98
9.735841		12,541.039		—		—		—		—		12/31/97


					Number of				Number of
					Enhanced				Enhanced
			Enhanced		(1.10% Total		Enhanced		(0.90% Total
			(1.10% Total		Separate		(0.90% Total		Separate
	Number of		Separate		Account		Separate		Account
	Standard		Account		Expenses)		Account		Expenses)
Standard	Accumulation		Expenses)		Accumulation		Expenses)		Accumulation
Accumulation	Units		Accumulation		Units		Accumulation		Units
Unit Value	Outstanding		Unit Value		Outstanding		Unit Value		Outstanding		Year
Janus Aspen Series Large Cap Growth Portfolio-Institutional Shares
13.332590		1,661,699.848		13.714717		8,850.842		11.095916		0.000		12/31/06
12.140136		1,816,341.463		12.450279		12,118.207		10.052654		0.000		12/31/05
11.805932		1,963,661.008		12.070890		12,071.718		9.726734		0.000		12/31/04
11.455733		2,117,639.460		11.677475		17,617.840		9.390815		6,765.629		12/31/03
8.817912		2,338,003.425		8.962034		12,164.934		7.192879		5,335.350		12/31/02
12.166993		2,211,504.181		12.329165		7,211.443		9.875724		4,241.678		12/31/01
16.393493		1,792,958.592		—		—		—		—		12/31/00
19.453513		643,514.256		—		—		—		—		12/31/99
13.699715		172,190.630		—		—		—		—		12/31/98
10.239960		32,737.591		—		—		—		—		12/31/97
Janus Aspen Series Mid Cap Growth Portfolio-Institutional Shares
17.723408		1,111,731.741		18.231471		15,635.292		14.463654		0.000		12/31/06
15.820887		1,192,692.579		16.225130		18,154.900		12.846067		0.000		12/31/05
14.286652		1,246,239.904		14.607357		18,555.090		11.541971		0.000		12/31/04
11.999290		1,291,553.100		12.231626		21,025.289		9.645385		9,670.762		12/31/03
9.005921		1,290,667.557		9.153163		14,073.466		7.203589		7,684.759		12/31/02
12.672131		1,215,838.484		12.841113		8,626.211		10.086016		5,676.145		12/31/01
21.224171		993,843.327		—		—		—		—		12/31/00
31.565210		329,807.902		—		—		—		—		12/31/99
14.199318		53,896.345		—		—		—		—		12/31/98
10.723950		2,830.076		—		—		—		—		12/31/97
Oppenheimer Balanced Fund/VA-Initial Series
11.545935		284,653.565		11.619151		2,173.335		11.668021		0.000		12/31/06
10.535194		293,699.326		10.569900		1,006.485		10.593011		0.000		12/31/05
10.284433		3,001.731		10.287083		0.000		10.288847		0.000		12/31/04
Oppenheimer Capital Appreciation Fund/VA-Initial Series
11.380578		206,005.347		11.452745		1,085.611		11.500898		0.000		12/31/06
10.691883		85,720.169		10.727101		453.514		10.750537		0.000		12/31/05
10.317159		581.341		10.319818		0.000		10.321584		0.000		12/31/04
Oppenheimer Main Street Fund^{^®}/VA-Initial Series
12.267378		188,104.597		12.345144		2,240.578		12.397044		0.000		12/31/06
10.816022		161,384.797		10.851650		1,136.259		10.875367		0.000		12/31/05
10.350617		13,062.128		10.353285		0.000		10.355055		0.000		12/31/04
PIMCO VIT Real Return Portfolio-Administrative Class
10.154210		212,006.902		10.218623		4,352.416		10.261614		0.000		12/31/06
10.224854		240,401.144		10.258560		2,314.795		10.280983		0.000		12/31/05
10.156423		10,066.473		10.159043		0.000		10.160781		0.000		12/31/04
PIMCO VIT Total Return Portfolio-Administrative Class
10.417487		207,153.358		10.483551		1,880.102		10.527660		0.000		12/31/06
10.173284		199,476.486		10.206803		453.274		10.229129		0.000		12/31/05
10.070332		627.100		10.072934		0.000		10.074659		0.000		12/31/04


					Number of				Number of
					Enhanced				Enhanced
			Enhanced		(1.10% Total		Enhanced		(0.90% Total
			(1.10% Total		Separate		(0.90% Total		Separate
	Number of		Separate		Account		Separate		Account
	Standard		Account		Expenses)		Account		Expenses)
Standard	Accumulation		Expenses)		Accumulation		Expenses)		Accumulation
Accumulation	Units		Accumulation		Units		Accumulation		Units
Unit Value	Outstanding		Unit Value		Outstanding		Unit Value		Outstanding		Year
Van Kampen UIF Core Plus Fixed Income Portfolio-Class I
14.997858		934,853.788		15.427535		4,516.328		14.567237		0.000		12/31/06
14.663212		1,031,163.550		15.037636		4,510.157		14.170531		0.000		12/31/05
14.269584		1,040,814.398		14.589653		5,455.212		13.720741		0.000		12/31/04
13.866152		1,111,500.860		14.134373		5,899.268		13.265872		1,753.649		12/31/03
13.437077		1,065,387.210		13.656469		3,834.895		12.791995		0.000		12/31/02
12.694998		713,042.852		12.864100		1,978.853		12.025963		0.000		12/31/01
11.776122		380,480.921		—		—		—		—		12/31/00
10.749115		279,193.758		—		—		—		—		12/31/99
11.079965		46,348.096		—		—		—		—		12/31/98
10.412276		4.653		—		—		—		—		12/31/97
Van Kampen UIF U.S. Mid Cap Value Portfolio-Class I
23.159385		581,474.070		23.822985		6,217.919		19.741624		0.000		12/31/06
19.459486		530,733.841		19.956509		5,226.294		16.504310		0.000		12/31/05
17.572071		467,487.388		17.966354		4,302.132		14.828568		0.000		12/31/04
15.551851		417,352.873		15.852805		3,927.983		13.057884		3,535.862		12/31/03
11.143745		383,714.571		11.325832		3,089.661		9.310623		2,938.407		12/31/02
15.699340		335,452.774		15.908551		1,648.470		13.052029		2,465.356		12/31/01
16.438193		253,713.630		—		—		—		—		12/31/00
15.049488		183,388.647		—		—		—		—		12/31/99
12.705082		111,076.120		—		—		—		—		12/31/98
11.113227		16,674.966		—		—		—		—		12/31/97
Van Kampen UIF U.S. Real Estate Portfolio-Class I
36.711245		617,880.841		37.762738		6,918.700		36.226614		0.000		12/31/06
26.969864		638,271.701		27.658464		6,314.368		26.480086		0.000		12/31/05
23.367170		618,052.255		23.891270		4,374.554		22.827424		0.000		12/31/04
17.374679		549,927.036		17.710793		5,725.997		16.888195		396.422		12/31/03
12.811814		469,712.672		13.021061		3,710.088		12.391776		378.990		12/31/02
13.094325		269,466.499		13.268793		1,955.110		12.602570		0.000		12/31/01
12.088940		147,402.642		—		—		—		—		12/31/00
9.482378		86,941.426		—		—		—		—		12/31/99
9.758808		43,786.457		—		—		—		—		12/31/98
11.101269		7,200.060		—		—		—		—		12/31/97
Van Kampen UIF Value Portfolio-Class I
16.611311		850,561.888		17.087197		6,292.311		16.372900		0.000		12/31/06
14.412225		863,389.460		14.780240		6,598.174		14.133911		0.000		12/31/05
13.978413		807,191.172		14.291958		5,717.704		13.639509		0.000		12/31/04
12.030718		620,028.974		12.263462		5,123.338		11.680115		5,265.487		12/31/03
9.098209		526,832.864		9.246820		3,689.937		8.789584		5,091.530		12/31/02
11.851536		401,628.667		12.009406		2,274.954		11.392961		3,995.102		12/31/01
11.751659		132,621.948		—		—		—		—		12/31/00
9.536137		78,330.649		—		—		—		—		12/31/99
9.848411		34,212.111		—		—		—		—		12/31/98
10.204064		9,944.401		—		—		—		—		12/31/97


Enhanced with	Number of Enhanced		Enhanced with		Number of Enhanced
Administration	with Administration		Administration		with Administration
charges waived	charges waived		charges waived		charges waived
(0.95% Total	(0.95% Total		(0.75% Total		(0.75% Total
Separate Account	Separate Account		Separate Account		Separate Account
Expenses)	Expenses)		Expenses)		Expenses)
Accumulation Unit	Accumulation Units		Accumulation Unit		Accumulation Units
Value	Outstanding		Value		Outstanding		Year
AIM V.I. Capital Development Fund-Series I Shares
13.053761		30.786		13.108573		13,889.446		12/31/06
11.310210		0.000		11.334888		0.000		12/31/05
10.417688		0.000		10.419472		0.000		12/31/04
AIM V.I. Core Equity Fund-Series I Shares
10.846037		0.000		10.860776		481.069		12/31/06
AIM V.I. Financial Services Fund-Series I Shares
13.592983		112.573		13.747660		2,974.384		12/31/06
11.785233		75.651		11.895426		2,656.644		12/31/05
11.234312		28.405		11.316604		296.508		12/31/04
10.436461		0.000		10.491819		506.763		12/31/03
8.130414		0.000		8.157371		331.521		12/31/02
9.644875		0.000		9.657683		0.000		12/31/01
AIM V.I. Global Health Care Fund-Series I Shares
11.502013		305.222		11.632963		9,669.402		12/31/06
11.034447		202.797		11.137654		7,840.922		12/31/05
10.300635		77.557		10.376110		3,984.789		12/31/04
9.667612		179.965		9.718905		3,546.346		12/31/03
7.637544		0.000		7.662880		2,641.906		12/31/02
10.205610		61.085		10.219152		0.000		12/31/01
AIM V.I. High Yield Fund-Series I Shares
12.033030		176.048		12.097966		896.818		12/31/06
10.970185		115.761		11.007248		1,138.551		12/31/05
10.782305		43.918		10.797012		774.713		12/31/04
10.389982		0.001		9.202367		587.034		12/31/03
8.388454		0.000		7.414915		367.999		12/31/02
8.579354		0.000		7.568636		0.000		12/31/01
AIM V.I. Small Cap Equity Fund-Series I Shares
12.692358		0.000		12.745634		447.990		12/31/06
10.911028		0.000		10.934828		0.000		12/31/05
10.188714		0.000		10.190457		0.000		12/31/04
AIM V.I. Small Cap Growth Fund-Series I Shares
10.624408		0.000		10.745391		4,110.972		12/31/06
9.398306		0.000		9.486239		3,227.771		12/31/05
9.019944		0.000		9.086065		3,181.463		12/31/04
7.995424		0.000		8.037880		2,571.023		12/31/03
6.049012		0.000		6.069108		1,926.298		12/31/02
8.864827		0.000		8.876613		0.000		12/31/01
American Century VP Large Company Value Fund-Class I Shares
12.613437		125.863		12.666366		582.549		12/31/06
10.613037		0.000		10.636196		0.000		12/31/05
10.220496		0.000		10.222238		0.000		12/31/04
American Century VP Mid Cap Value Fund-Class I Shares
13.447669		0.000		13.504095		4,798.742		12/31/06
11.285315		0.000		11.309936		23.011		12/31/05
10.399486		0.000		10.401262		0.000		12/31/04


Enhanced with	Number of Enhanced		Enhanced with		Number of Enhanced
Administration	with Administration		Administration		with Administration
charges waived	charges waived		charges waived		charges waived
(0.95% Total	(0.95% Total		(0.75% Total		(0.75% Total
Separate Account	Separate Account		Separate Account		Separate Account
Expenses)	Expenses)		Expenses)		Expenses)
Accumulation Unit	Accumulation Units		Accumulation Unit		Accumulation Units
Value	Outstanding		Value		Outstanding		Year
American Century VP Ultra^{^®}Fund-Class I Shares
10.074375		485.952		10.116676		1,630.132		12/31/06
10.515180		411.819		10.538120		4.188		12/31/05
10.390771		0.000		10.392546		0.000		12/31/04
American Century VP Vista^SMFund-Class I Shares
12.031706		181.135		12.082229		6,879.128		12/31/06
11.143119		21.514		11.167429		8.772		12/31/05
10.403392		21.514		10.405171		0.000		12/31/04
Dreyfus IP Technology Growth Portfolio-Initial Shares
10.786066		493.194		10.831351		2,499.762		12/31/06
10.439369		20.730		10.462156		2.095		12/31/05
10.154947		20.730		10.156685		0.000		12/31/04
The Dreyfus Socially Responsible Growth Fund, Inc.-Initial Shares
11.844662		0.000		9.706556		2,857.136		12/31/06
10.950470		0.000		8.955771		1,847.923		12/31/05
10.669460		0.000		8.708439		949.377		12/31/04
10.141935		0.000		8.261258		968.674		12/31/03
8.125307		0.000		6.605501		625.579		12/31/02
11.544188		0.000		9.366268		0.000		12/31/01
Dreyfus Stock Index Fund, Inc.-Initial Shares
15.836519		532.986		12.771644		14,298.329		12/31/06
13.842665		537.406		11.141253		12,717.488		12/31/05
13.348780		680.516		10.722192		8,796.650		12/31/04
12.180793		680.516		9.764386		7,635.158		12/31/03
9.579380		3,171.095		7.663841		5,807.305		12/31/02
12.455945		3,086.013		9.945431		0.000		12/31/01
Dreyfus VIF Appreciation Portfolio-Initial Shares
15.667624		0.000		12.762733		5,348.565		12/31/06
13.579785		0.000		11.039795		3,200.889		12/31/05
13.134636		150.958		10.656479		524.528		12/31/04
12.623565		150.958		10.221281		637.550		12/31/03
10.517029		150.958		8.498780		404.810		12/31/02
12.747715		150.958		10.280968		0.000		12/31/01
Dreyfus VIF Developing Leaders Portfolio-Initial Shares
15.701713		516.548		14.916250		4,478.428		12/31/06
15.276001		459.556		14.482701		4,245.206		12/31/05
14.576616		548.248		13.791916		3,532.709		12/31/04
13.217353		491.205		12.480727		2,861.914		12/31/03
10.131883		471.199		9.548300		2,066.318		12/31/02
12.646674		229.386		11.894597		0.000		12/31/01


Enhanced with	Number of Enhanced		Enhanced with		Number of Enhanced
Administration	with Administration		Administration		with Administration
charges waived	charges waived		charges waived		charges waived
(0.95% Total	(0.95% Total		(0.75% Total		(0.75% Total
Separate Account	Separate Account		Separate Account		Separate Account
Expenses)	Expenses)		Expenses)		Expenses)
Accumulation Unit	Accumulation Units		Accumulation Unit		Accumulation Units
Value	Outstanding		Value		Outstanding		Year
Dreyfus VIF Growth and Income Portfolio-Initial Shares
13.353024		0.000		12.290990		6,284.037		12/31/06
11.772215		0.000		10.814168		4,573.316		12/31/05
11.499396		0.000		10.542352		2,110.774		12/31/04
10.802876		0.000		9.883935		1,683.104		12/31/03
8.616047		0.000		7.867534		1,380.154		12/31/02
11.648352		0.000		10.615303		0.000		12/31/01
Dreyfus VIF Money Market Portfolio
1.227578		0.000		1.202985		79,903.634		12/31/06
1.192295		0.000		1.165821		74,816.781		12/31/05
1.175604		0.000		1.147250		41,121.286		12/31/04
1.177135		0.000		1.146810		30,543.174		12/31/03
1.179709		0.000		1.147255		13,181.025		12/31/02
1.174767		0.036		1.140245		0.000		12/31/01
DWS Small Cap Index VIP Fund-Class A
17.926929		73.897		18.202156		1,003.543		12/31/06
15.404037		57.528		15.609142		832.924		12/31/05
14.915983		36.274		15.084265		481.304		12/31/04
12.788062		144.907		12.906395		370.115		12/31/03
8.816430		4.364		8.880430		268.850		12/31/02
11.207088		272.943		11.266052		0.000		12/31/01
Janus Aspen Series Balanced Portfolio-Institutional Shares
21.416039		38.089		16.946087		6,565.836		12/31/06
19.527811		39.724		15.420964		4,291.048		12/31/05
18.262753		171.888		14.393020		2,476.146		12/31/04
16.989064		171.888		13.362331		2,154.381		12/31/03
15.037669		1,282.216		11.804093		1,579.653		12/31/02
16.226337		1,282.216		12.711912		0.000		12/31/01
Janus Aspen Series Forty Portfolio-Institutional Shares
11.802739		238.337		11.983880		7,866.365		12/31/06
10.897390		224.632		11.042426		7,397.910		12/31/05
9.749062		369.844		9.858999		4,108.809		12/31/04
8.324912		340.749		8.401910		3,673.250		12/31/03
6.972208		1,816.324		7.022777		2,582.245		12/31/02
8.346510		1,813.269		8.390380		0.000		12/31/01
Janus Aspen Series International Growth Portfolio-Institutional Shares
28.690648		56.867		23.336974		4,630.919		12/31/06
19.701127		56.867		15.992759		1,486.339		12/31/05
15.034373		22.784		12.179969		7.075		12/31/04
12.760432		0.000		10.317004		0.000		12/31/03
9.547961		0.000		7.704394		0.000		12/31/02
12.952582		0.000		10.430913		0.000		12/31/01


Enhanced with	Number of Enhanced		Enhanced with		Number of Enhanced
Administration	with Administration		Administration		with Administration
charges waived	charges waived		charges waived		charges waived
(0.95% Total	(0.95% Total		(0.75% Total		(0.75% Total
Separate Account	Separate Account		Separate Account		Separate Account
Expenses)	Expenses)		Expenses)		Expenses)
Accumulation Unit	Accumulation Units		Accumulation Unit		Accumulation Units
Value	Outstanding		Value		Outstanding		Year
Janus Aspen Series Large Cap Growth Portfolio-Institutional Shares
13.910006		0.000		11.236984		2,508.839		12/31/06
12.608502		0.000		10.165143		2,153.599		12/31/05
12.205852		128.720		9.820772		2,368.105		12/31/04
11.790223		128.720		9.467320		2,297.375		12/31/03
9.035150		128.720		7.240699		1,647.960		12/31/02
12.411252		128.720		9.926552		0.000		12/31/01
Janus Aspen Series Mid Cap Growth Portfolio-Institutional Shares
18.490639		198.823		14.647491		2,928.081		12/31/06
16.430939		174.191		12.989749		2,276.876		12/31/05
14.770332		251.906		11.653511		836.499		12/31/04
12.349444		218.778		9.723925		612.357		12/31/03
9.227625		856.311		7.251447		472.925		12/31/02
12.926320		832.210		10.137880		0.000		12/31/01
Oppenheimer Balanced Fund/VA-Initial Series
11.655797		21.039		11.704735		2,850.419		12/31/06
10.587241		21.039		10.610348		2,458.961		12/31/05
10.288407		21.039		10.290166		0.000		12/31/04
Oppenheimer Capital Appreciation Fund/VA-Initial Series
11.488852		0.000		11.537101		2,292.609		12/31/06
10.744687		0.000		10.768137		1,989.469		12/31/05
10.321144		0.000		10.322909		0.000		12/31/04
Oppenheimer Main Street Fund^{^®}/VA-Initial Series
12.384076		0.000		12.436042		53.947		12/31/06
10.869450		0.000		10.893157		24.847		12/31/05
10.354615		0.000		10.356388		0.000		12/31/04
PIMCO VIT Real Return Portfolio-Administrative Class
10.250872		0.000		10.293911		7.016		12/31/06
10.275393		0.000		10.297819		0.000		12/31/05
10.160349		0.000		10.162087		0.000		12/31/04
PIMCO VIT Total Return Portfolio-Administrative Class
10.516640		0.000		10.567262		35.340		12/31/06
10.223567		0.000		10.252148		3.738		12/31/05
10.074230		0.000		10.082128		0.000		12/31/04
Van Kampen UIF Core Plus Fixed Income Portfolio-Class I
15.647093		0.000		14.752371		6,674.444		12/31/06
15.228624		0.000		14.329012		5,142.497		12/31/05
14.752650		0.000		13.853286		2,009.888		12/31/04
14.270730		0.000		13.373842		1,396.144		12/31/03
13.767746		0.000		12.876914		1,029.422		12/31/02
12.949664		0.000		12.087792		0.000		12/31/01


Enhanced with	Number of Enhanced		Enhanced with		Number of Enhanced
Administration	with Administration		Administration		with Administration
charges waived	charges waived		charges waived		charges waived
(0.95% Total	(0.95% Total		(0.75% Total		(0.75% Total
Separate Account	Separate Account		Separate Account		Separate Account
Expenses)	Expenses)		Expenses)		Expenses)
Accumulation Unit	Accumulation Units		Accumulation Unit		Accumulation Units
Value	Outstanding		Value		Outstanding		Year
Van Kampen UIF U.S. Mid Cap Value Portfolio-Class I
24.162157		0.000		19.992502		3,602.634		12/31/06
20.210094		0.000		16.688897		2,736.473		12/31/05
18.167210		0.000		14.971848		1,952.421		12/31/04
16.005864		113.080		13.164187		1,518.257		12/31/03
11.418226		28.150		9.372474		957.992		12/31/02
16.014471		28.150		13.119130		0.000		12/31/01
Van Kampen UIF U.S. Real Estate Portfolio-Class I
38.299964		185.446		36.686891		6,139.587		12/31/06
28.009655		166.868		26.776196		4,606.920		12/31/05
24.158129		115.611		23.047942		2,205.295		12/31/04
17.881625		69.022		17.025662		1,794.121		12/31/03
13.127169		28.392		12.474088		1,338.574		12/31/02
13.357067		215.533		12.667405		0.000		12/31/01
Van Kampen UIF Value Portfolio-Class I
17.330296		33.363		16.581099		2,425.539		12/31/06
14.967892		33.363		14.292090		2,094.705		12/31/05
14.451571		33.363		13.771392		1,612.617		12/31/04
12.381730		33.363		11.775296		1,475.807		12/31/03
9.322154		33.363		8.848037		949.630		12/31/02
12.089242		124.533		11.451625		0.000		12/31/01

The above table gives year-end Accumulation Unit information for each Subaccount from the end of the year of inception to December 31, 2006. This information should be read in conjunction with the Separate Account financial statements including the notes to those statements. The beginning Accumulation Unit Value for each Subaccount shown other than the Dreyfus VIF Money Market Portfolio Subaccount was 10.00000 as of July 15, 1997 (the Separate Account commencement date) or as of May 1, 1999 (the effective date of the Subaccounts) for the Janus Aspen Series Forty Portfolio Subaccount and the DWS Small Cap Index VIP Fund Subaccount, or as of May 1, 2001 (the effective date of the Subaccounts) for the AIM V.I. Global Health Care Fund Subaccount, and AIM V.I. Financial Services Fund Subaccount, or as of November 1, 2004, (the effective date of the Subaccounts) for AIM V.I. Capital Development Fund Subaccount, AIM V.I. Small Cap Equity Fund Subaccount, Dreyfus IP Technology Growth Portfolio Subaccount, the four American Century Variable Portfolio Subaccount, the three Oppenheimer Variable Account Fund Subaccounts and the two PIMCO Variable Insurance Fund Subaccounts or as of May 1, 2006, (the effective date of the Subaccount) for the AIM V.I. Core Equity Fund Subaccount. The beginning Accumulation Unit Value for the Dreyfus VIF Money Market Portfolio Subaccount was 1.000000 as of July 15, 1997.

APPENDIX B: PORTFOLIOS


Portfolio / Advisor		Investment Objective / Strategy
AIM Variable Insurance Funds
AIM V.I. Capital Development Fund — Series I Shares Advisor — A I M Advisors, Inc.		The fund’s investment objective is long-term growth of capital. The fund seeks to meet its objective by investing primarily in equity securities of mid-capitalization companies. The fund may also invest up to 25% of its total assets in foreign securities. Any percentage limitations with respect to assets of the fund are applied at the time of purchase.

AIM V.I. Core Equity Fund — Series I Shares Advisor — A I M Advisors, Inc.		The fund’s investment objective is growth of capital. The fund seeks to meet its objectives by investing, normally, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in equity securities including convertible securities, of established companies that have long-term above-average growth in earnings, and growth companies that the portfolio manager believes have the potential for above-average growth in earnings. In complying with this 80% investment requirement, the fund’s investments may include synthetic instruments. The fund may also invest up to 25% of its total assets in foreign securities. Any percentage limitations with respect to assets of the fund are applied at the time of purchase.

AIM V.I. Financial Services Fund — Series I Shares Advisor — A I M Advisors, Inc.		The fund seeks capital growth. It is actively managed. The fund invests primarily in equity securities that the Advisor believes will rise in price faster than other securities, as well as in options and other investments whose values are based upon the values of equity securities. The fund normally invests at least 80% of its net assets in the equity securities and equity-related instruments of companies involved in the financial services sector. The fund may invest up to 25% of its assets in securities of non-U.S. issuers. Securities of Canadian issuers and American Depositary Receipts are not subject to this 25% limitation.

AIM V.I. Global Health Care Fund — Series I Shares Advisor — A I M Advisors, Inc.		The fund’s investment objective is capital growth. The fund seeks to meet its objective by investing, normally, at least 80% of its assets in securities of health care industry companies. The fund may invest in debt securities issued by health care industry companies, or in equity and debt securities of other companies believed will benefit from developments in the health care industry. The fund will normally invest in securities of companies located in at least three different countries, including the United States and may invest a significant portion of its assets in the securities of U.S. issuers. However, the fund will invest no more than 50% of its total assets in the securities of issuers in any one country, other than the U.S. The fund may invest up to 20% of its total assets in companies located in developing countries, i.e., those countries that are in the initial stages of their industrial cycle. The fund may also invest up to 5% of its total assets in lower-quality debt securities, i.e., “junk bonds”. Any percentage limitations with respect to assets of the fund are applied at the time of purchase.

AIM V.I. High Yield Fund — Series I Shares Advisor — A I M Advisors, Inc.		The fund’s investment objective is to achieve a high level of current income. The fund seeks to meet its objective by investing, normally, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in non-investment grade debt securities, i.e. “junk bonds”. In complying with this 80% investment requirement, the fund’s investments may include investments in synthetic instruments. The fund may invest up to 25% of its total assets in


Portfolio / Advisor		Investment Objective / Strategy
		foreign securities. The fund may also invest in credit derivatives. Any percentage limitations with respect to assets of the fund are applied at the time of purchase.

AIM V.I. Small Cap Equity Fund —Series I Shares Advisor - A I M Advisors, Inc.		The fund’s investment objective is long-term growth of capital. The fund seeks to meet its objective by investing, normally, at least 80% of its assets in equity securities, including convertible securities, of small-capitalization companies. In complying with the 80% investment requirement, the fund’s investments may include synthetic instruments. The fund may also invest up to 25% of its total assets in foreign securities. Any percentage limitations with respect to assets of the fund are applied at the time of purchase.

American Century Variable Portfolios, Inc.

American Century VP Large Company Value Fund — Class I Shares Advisor — American Century Investment Management, Inc.		The Fund seeks long-term capital growth. Income is a secondary objective. In selecting stocks for the Fund, its managers look for companies whose stock price may not reflect the companies’ value. The managers attempt to purchase the stocks of these undervalued companies and hold them until their stock price has increased to, or is higher than, a level the managers believe more accurately reflects the fair value of the company. The Fund invests primarily in larger companies. Under normal market conditions, the Fund will have at least 80% of its assets in equity securities of companies comprising the Russell 1000^® Index.

American Century VP Mid Cap Value Fund — Class I Shares Advisor — American Century Investment Management, Inc.		The Fund seeks long-term capital growth. Income is a secondary objective. Its managers look for stocks of companies that they believe are undervalued at the time of purchase. The managers use a value investment strategy that looks for companies that are temporarily out of favor in the market. The managers attempt to purchase the stocks of these undervalued companies and hold them until they have returned to favor in the market and their stock prices have gone up. The Fund will invest at least 80% of its assets in securities of companies whose market capitalization at the time of purchase is within the capitalization range of the Russell 3000^® Index, excluding the largest 100 such companies. The managers intend to manage the Fund so that its weighted capitalization falls within the capitalization range of the members of the Russell Midcap^® Index.

American Century VP Ultra^â Fund— Class I Shares Advisor — American Century Investment Management, Inc.		The Fund seeks long-term growth. Its managers look for stocks of large companies they believe will increase in value over time using a growth investment strategy developed by American Century. This strategy looks for companies with earnings and revenues that are not only growing, but growing at a successively faster, or accelerating, pace. This strategy is based on the premise that, over the long term, stocks of companies with accelerating earnings and revenues have a greater-than-average chance to increase in value.

American Century VP Vista^SM Fund — Class I Shares Advisor — American Century Investment Management, Inc.		The Fund seeks long-term capital growth. Its managers look for stocks of medium-sized and smaller companies they believe will increase in value over time, using a growth investment strategy developed by American Century. This strategy looks for companies with earnings and revenues that are not only growing, but growing at a successively faster, or accelerating pace. This strategy is based on the premise that, over the long term, the stocks of companies with accelerating earnings and revenues have a greater-than-average chance to increase in value.


Portfolio / Advisor		Investment Objective / Strategy
Calamos^® Advisors Trust

Calamos Growth and Income Portfolio Advisor — Calamos Advisors LLC		The portfolio seeks high long-term return through growth and current income. The portfolio invests primarily in a diversified portfolio of convertible, equity and fixed-income securities. In seeking to meet its investment objective, the portfolio’s adviser utilizes highly disciplined institutional management strategies designed to help enhance investment returns while managing risk. As part of these strategies, an in-depth proprietary analysis is employed on an issuing company and its securities.

Davis Variable Account Fund, Inc.

Davis Value Portfolio Advisor—Davis Selected Advisors, L.P. Sub-Advisor—Davis Selected Advisers—NY, Inc.		The fund’s investment objective is long-term growth of capital. The advisor uses the Davis Investment Discipline to invest the majority of the fund’s assets in equity securities issued by large companies with market capitalization of at least $10 billion. The advisor conducts extensive research to identify businesses that possess characteristics it believes foster the creation of long-term value, such as proven management, a durable franchise and business model, and sustainable competitive advantages. It aims to invest in such businesses when they are trading at a discount to their intrinsic value.

Dreyfus Portfolios

The Dreyfus Socially Responsible Growth Fund, Inc. — Initial Shares Advisor — The Dreyfus Corporation		The fund seeks to provide capital growth, with current income as a secondary goal. To pursue these goals, the fund, under normal circumstances, invests at least 80% of its assets in the common stocks of companies that, in the opinion of the fund’s management, meet traditional investment standards and conduct their business in a manner that contributes to the enhancement of the quality of life in America.

Dreyfus Stock Index Fund, Inc., — Initial Shares Advisor — The Dreyfus Corporation Index Sub-Investment Adviser — Mellon Equity Associates		The fund seeks to match the total return of the Standard & Poor’s 500 Composite Stock Price Index. To pursue this goal, the fund generally invests in all 500 stocks in the S&P 500^® in proportion to their weighting in the index.

Dreyfus Investment Portfolios MidCap Stock Portfolio — Initial Shares Advisor — The Dreyfus Corporation		The portfolio seeks investment results that are greater than the total return performance of publicly traded common stocks of medium-size domestic companies in the aggregate, as represented by the Standard & Poor’s MidCap 400^® Index (S&P 400). To pursue this goal, the portfolio normally invests at least 80% of its assets in stocks of midsize companies.

Dreyfus Investment Portfolios Technology Growth Portfolio — Initial Shares Advisor — The Dreyfus Corporation		The portfolio seeks capital appreciation. To pursue this goal, the portfolio normally invests at least 80% of its assets in the stocks of growth companies of any size that Dreyfus believes to be leading producers or beneficiaries of technological innovation.

Dreyfus Variable Investment Fund (“VIF”) Appreciation Portfolio — Initial Shares Advisor — The Dreyfus Corporation		The portfolio seeks long-term capital growth consistent with the preservation of capital. Its secondary goal is current income. To pursue these goals, the portfolio normally invests at least 80% of its assets in common stocks. The portfolio focuses on “blue chip” companies with total market capitalizations of more than $5 billion at the time of purchase, including multinational companies.


Portfolio / Advisor		Investment Objective / Strategy
Sub-Adviser — Fayez Sarofim & Co.

Dreyfus Variable Investment Fund (“VIF”) Developing Leaders Portfolio — Initial Shares Advisor — The Dreyfus Corporation		The portfolio seeks capital growth. To pursue this goal, the portfolio normally invests at least 80% of its assets in the stocks of companies Dreyfus believes to be developing leaders: companies characterized by new or innovative products, services or processes having the potential to enhance earnings or revenue growth. Based on current market conditions, the portfolio primarily invests in companies with total market values of less than $2 billion at the time of purchase.

Dreyfus Variable Investment Fund (“VIF”) Growth and Income Portfolio — Initial Shares Advisor — The Dreyfus Corporation		The portfolio seeks long-term capital growth, current income and growth of income consistent with reasonable investment risk. To pursue these goals, the portfolio invests primarily in stocks of domestic and foreign issuers. The portfolios stock investments may include common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings.

Dreyfus Variable Investment Fund (“VIF”) Money Market Portfolio Advisor — The Dreyfus Corporation		The portfolio seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity. An investment in a money market portfolio is not insured or guaranteed by the Federal Deposit Insurance Corporation, or any other government agency. Although a money market portfolio seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market portfolio.

DWS Investments VIT Funds⁽¹⁾

DWS Small Cap Index VIP- Class A Advisor — Deutsche Investment Management Americas Inc., Subadvisor — Northern Trust Investments, N.A.		The Portfolio seeks to replicate, as closely as possible, before the deduction of expenses, the performance of the Russell 2000 Index, which emphasizes stocks of small US companies. Under normal circumstances, the Portfolio intends to invest at least 80% of its assets, determined at the time of purchase, in stocks of companies included in the Russell 2000 Index and in derivative instruments, such as stock index futures contracts and options that provide exposure to the stocks of companies in the Russell 2000 Index.


⁽¹⁾		DWS Scudder is part of Deutsche Asset Management, which is the marketing name in the U.S. for the asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company.


Financial Investors Variable Insurance Trust

Ibbotson Balanced ETF Asset Allocation Portfolio Adviser — ALPS Advisers, Inc. Subadviser — Ibbotson Associates, Inc.		The Portfolio seeks to provide investors with capital appreciation and some current income. The Portfolio invests, under normal circumstances, at least 80% of its net assets plus the amount of any borrowings for investment purposes, in securities of exchange-traded funds (each, an “Underlying ETF” and collectively, the “Underlying ETFs”). The Portfolio will notify you in writing at least 60 days before making any changes to this policy. For the purposes of this 80% investment policy, assets are measured at the time of purchase.

Ibbotson Conservative ETF Asset Allocation Portfolio Adviser — ALPS Advisers, Inc. Subadviser — Ibbotson Associates, Inc.		The Portfolio seeks to provide investors with current income and preservation of capital. The Portfolio invests, under normal circumstances, at least 80% of its net assets plus the amount of any borrowings for investment purposes, in securities of exchange-traded funds (each, an “Underlying ETF” and collectively, the “Underlying ETFs”). The Portfolio will notify you in writing


Portfolio / Advisor		Investment Objective / Strategy
		at least 60 days before making any changes to this policy. For the purposes of this 80% investment policy, assets are measured at the time of purchase.

Ibbotson Growth ETF Asset Allocation Portfolio Adviser — ALPS Advisers, Inc. Subadviser — Ibbotson Associates, Inc.		The Portfolio seeks to provide investors with capital appreciation. The Portfolio invests, under normal circumstances, at least 80% of its net assets plus the amount of any borrowings for investment purposes, in securities of exchange-traded funds (each, an “Underlying ETF” and collectively, the “Underlying ETFs”). The Portfolio will notify you in writing at least 60 days before making any changes to this policy. For the purposes of this 80% investment policy, assets are measured at the time of purchase.

Ibbotson Income and Growth ETF Asset Allocation Portfolio Adviser — ALPS Advisers, Inc. Subadviser — Ibbotson Associates, Inc.		The Portfolio seeks to provide investors with current income and capital appreciation. The Portfolio invests, under normal circumstances, at least 80% of its net assets plus the amount of any borrowings for investment purposes, in securities of exchange-traded funds (each, an “Underlying ETF” and collectively, the “Underlying ETFs”). The Portfolio will notify you in writing at least 60 days before making any changes to this policy. For the purposes of this 80% investment policy, assets are measured at the time of purchase.

Franklin Templeton Variable Insurance Products Trust

Templeton Foreign Securities Fund — Class 2 Advisor — Templeton Investment Counsel, LLC		Seeks long-term capital growth. The Fund normally invests at least 80% of its net assets in investments of issuers located outside the U.S., including those in emerging markets, and normally invests predominantly in equity securities.

Janus Aspen Series

Janus Aspen Series Balanced Portfolio — Institutional Shares Advisor — Janus Capital Management LLC		This diversified portfolio seeks long-term capital growth, consistent with preservation of capital and balanced by current income. The Portfolio normally invests 50-60% of its assets in equity securities selected primarily for their growth potential and 40-50% of its assets in securities selected primarily for their income potential. Within the parameters of its specific investment policies, the portfolio may invest in foreign equity and debt securities, which may include investments in emerging markets. The Portfolio will normally invest at least 25% of its assets in fixed-income senior securities. The portfolio will limit its investment in high-yield/high-risk (also called “junk bonds”) to 35% or less of its net assets.

Janus Aspen Series Forty Portfolio — Institutional Shares Advisor — Janus Capital Management LLC		This non-diversified portfolio seeks long-term growth of capital by normally investing primarily in a core group of 20-40 common stocks selected for their growth potential. The portfolio may invest in companies of any size, from larger, well-established companies to smaller, emerging growth companies. Within the parameters of its specific investment policies, the portfolio may invest in foreign equity and debt securities, which may include investments in emerging markets.

Janus Aspen Series International Growth Portfolio — Institutional Shares Advisor — Janus Capital Management LLC		This diversified portfolio seeks long-term growth of capital by investing, under normal circumstances, at least 80% of its net assets plus the amount of any borrowings for investment purposes, in securities of issuers from several different countries, excluding the United States. Although the portfolio intends to invest substantially all of its assets in issuers located outside the United States, it may at times invest in U.S. issuers, and it may, under unusual circumstances, invest all of its assets in a single country. The portfolio may


Portfolio / Advisor		Investment Objective / Strategy
		have significant exposure to emerging markets. Within the parameters of its specific investment policies, the portfolio may invest in foreign equity and debt securities, which may include investments in emerging markets.

Janus Aspen Series Large Cap Growth Portfolio — Institutional Shares Advisor — Janus Capital Management LLC		This portfolio seeks long-term growth of capital in a manner consistent with the preservation of capital by investing, under normal circumstances, at least 80% of its net assets plus the amount of any borrowings for investment purposes, in common stocks of large-sized companies. Large sized companies are those whose market capitalization falls within the range of companies in the Russell 1000 Index at the time of purchase. Within the parameters of its specific investment policies, the portfolio may invest without limit in foreign equity and debt securities, which may include investments in emerging markets.

Janus Aspen Series Mid Cap Growth Portfolio — Institutional Shares Advisor — Janus Capital Management LLC		This diversified portfolio seeks long-term growth of capital by investing, under normal circumstances, at least 80% of its net assets plus the amount of any borrowings for investment purposes, in equity securities of mid -sized companies whose market capitalization falls, at the time of purchase, in the 12-month average of the capitalization range of the Russell Midcap Growth Index. Within the parameters of its specific investment policies, the portfolio may invest in foreign equity and debt securities, which may include investments in emerging markets.

Oppenheimer Variable Account Funds

Oppenheimer Balanced Fund/VA — Non-Service Shares Advisor — OppenheimerFunds, Inc.		The Fund seeks a high total investment return, which includes current income and capital appreciation in the value of its shares.

Oppenheimer Capital Appreciation Fund/VA — Non-Service Shares Advisor — OppenheimerFunds, Inc.		The Fund seeks capital appreciation by investing in securities of well-known, established companies.

Oppenheimer Main Street Fund^®/VA — Non-Service Shares Advisor — OppenheimerFunds, Inc.		The Fund seeks high total return (which includes growth in the value of its shares as well as current income) from equity and debt securities.

PIMCO Variable Insurance Trust

PIMCO VIT Real Return Portfolio — Administrative Class Advisor — Pacific Investment Management Company LLC		The Portfolio seeks maximum real return consistent with preservation of real capital and prudent investment management. The Portfolio invests under normal circumstances at least 80% of its assets in inflation-indexed bonds of varying maturities issued by the U. S. and non-U. S. governments, their agencies or government-sponsored enterprises and corporations.

PIMCO VIT Total Return Portfolio — Administrative Class Advisor — Pacific Investment Management Company LLC		The Portfolio seeks maximum total return consistent with preservation of capital and prudent investment management. The Portfolio invests under normal circumstances at least 65% of its assets in a diversified Portfolio of Fixed Income Instruments of varying maturities. The Fund’s average portfolio duration normally varies within a three- to six-year time frame, based on the Advisor’s forecast for interest rates.


Portfolio / Advisor		Investment Objective / Strategy
Van Kampen-The Universal Institutional Funds, Inc.

Van Kampen UIF Core Plus Fixed Income Portfolio — Class I Adviser — Van Kampen⁽¹⁾		The investment objective of the Core Plus Fixed Income Portfolio is to seek above-average total return over a market cycle of three to five years by investing primarily in a diversified portfolio of fixed income securities. The Portfolio invests primarily in a diversified mix of dollar denominated investment grade fixed income securities, particularly U.S. Government, corporate and mortgage securities. The Portfolio will ordinarily seek to maintain an average weighted maturity between five and ten years. The Portfolio may invest opportunistically in non-dollar-denominated securities and high yield securities (commonly referred to as “junk bonds”). The Portfolio may invest over 50% of its assets in mortgage securities.

Van Kampen UIF Mid-Cap Growth Portfolio — Class I Adviser—Van Kampen⁽¹⁾		The investment objective of the Mid Cap Growth Portfolio is to seek long-term capital growth by investing primarily in common stocks and other equity securities. The portfolio invests primarily in growth-oriented equity securities of U.S. mid cap companies and foreign companies, including emerging market securities. The Adviser selects issues form a universe of mid cap companies, most with market capitalization of generally less than $35 billion. The Adviser seeks to invest in high quality companies it believes have sustainable competitive advantages and the ability to redeploy capital at high rates of return.

Van Kampen UIF U.S. Mid Cap Value Portfolio — Class I Adviser — Van Kampen⁽¹⁾		The investment objective of the Mid Cap Value Portfolio is to seek above-average total return over a market cycle of three to five years by investing primarily in common stocks and equity securities. The Portfolio invests primarily in common stocks of companies traded on a U.S. securities exchange with capitalizations generally in the range of companies included in the Russell Midcap Value Index. The Adviser seeks attractively valued companies experiencing a change that is believed could have a positive impact on a company’s outlook, such as a change in management, industry dynamics or operational efficiency.

Van Kampen UIF U.S. Real Estate Portfolio — Class I Adviser — Van Kampen⁽¹⁾		The investment objective of the U.S. Real Estate Portfolio is to seek above-average current income and long-term capital appreciation by investing primarily in equity securities of companies in the U.S. real estate industry, including real estate investment trusts (REITs).

Van Kampen UIF Value Portfolio — Class I Adviser — Van Kampen⁽¹⁾		The investment objective of the Value Portfolio is to seek above-average total return over a market cycle of three to five years by investing primarily in common stocks and other equity securities. The Portfolio invests primarily in common stocks of companies with capitalizations generally greater than $1 billion. The Portfolio emphasizes a value style of investing seeking well established companies that appear undervalued and currently are not being recognized within the market place. The Portfolio may purchase stocks that do not pay dividends; and it may invest, to a limited extent, in foreign equity securities.


⁽¹⁾		Morgan Stanley Investment Management Inc., which does business in certain instances using the name “Van Kampen,” serves as the investment advisor to the U.S. Mid Cap Value, Value, Core Plus Fixed Income and U.S. Real Estate Portfolios.


Portfolio / Advisor		Investment Objective / Strategy
Wilshire Variable Insurance Trust

Wilshire 2010 Moderate Fund Advisor - Wilshire Associates Incorporated		The 2010 Moderate Fund’s investment objective is to provide high total return until its target retirement date. Thereafter, the 2010 Moderate Fund’s objective will be to seek high current income and, as a secondary objective, capital appreciation. The 2010 Moderate Fund operates under a fund of funds structure. The 2010 Moderate Fund invests in Underlying Funds according to a moderate asset allocation strategy designed for investors planning to retire in 2010, plus or minus two to three years. The 2010 Moderate Fund’s initial target allocation will be approximately 59% fixed income and 41% equity, with an increasing allocation to fixed income over time. Within 5 to 10 years after 2010, the 2010 Moderate Fund’s asset allocation should be approximately 80% investment in fixed income securities and the remaining 20% in equity securities.

Wilshire 2015 Moderate Fund Advisor - Wilshire Associates Incorporated		The 2015 Moderate Fund’s investment objective is to provide high total return until its target retirement date. Thereafter the 2015, Moderate Fund’s objective will be to seek high current income and, as a secondary objective, capital appreciation. The 2015 Moderate Fund operates under a fund of funds structure. The 2015 Moderate Fund invests in Underlying Funds according to a moderate asset allocation strategy designed for investors planning to retire in 2015, plus or minus two to three years. The 2015 Moderate Fund’s initial target allocation will be approximately 51% equity and 49% fixed income, with an increasing allocation to fixed income over time. Within 5 to 10 years after 2015, the 2015 Moderate Fund’s asset allocation should be approximately 80% investment in fixed income securities and the remaining 20% in equity securities.

Wilshire 2025 Moderate Fund Advisor - Wilshire Associates Incorporated		The 2025 Moderate Fund’s investment objective is to provide high total return until its target retirement date. Thereafter, the 2025 Moderate Fund’s objective will be to seek high current income and, as a secondary objective, capital appreciation. The 2025 Moderate Fund operates under a fund of funds structure. The 2025 Moderate Fund invests in Underlying Funds according to a moderate asset allocation strategy designed for investors planning to retire in 2025, plus or minus two to three years. The 2025 Moderate Fund’s initial target allocation will be approximately 72% equity and 28% fixed income, with an increasing allocation to fixed income over time. Within 5 to 10 years after 2025, the 2025 Moderate Fund’s asset allocation should be approximately 80% investment in fixed income securities and the remaining 20% in equity securities.

Wilshire 2035 Moderate Fund Advisor - Wilshire Associates Incorporated		The 2035 Moderate Fund’s investment objective is to provide high total return until its target retirement date. Thereafter, the 2035 Moderate Fund’s objective will be to seek high current income and, as a secondary objective, capital appreciation. The 2035 Moderate Fund operates under a fund of funds structure. The 2035 Moderate Fund invests in Underlying Funds according to a moderate asset allocation strategy designed for investors planning to retire in 2035, plus or minus two to three years. The 2035 Moderate Fund’s initial target allocation will be approximately 92% equity and 8% fixed income, with an increasing allocation to fixed income over time. Within 5 to 10 years after 2035, the 2035 Moderate Fund’s asset allocation should be approximately 80% investment in fixed income securities and the remaining 20% in equity securities.

APPENDIX C: TRANSFER RESTRICTIONS

Restrictions on Transfers; Disruptive Trading, Market Timing and Frequent Transfers
We discourage (and will take action to deter) short-term trading in the Contracts because the frequent movement between or among Subaccounts may negatively impact other Contract Owners, Annuitants and Beneficiaries. Short-term trading can result in:

	•		the dilution of Accumulation Unit Values or Portfolio net asset values

	•		Portfolio advisors taking actions that negatively impact performance such as keeping a larger portion of the Portfolio assets in cash or liquidating investments prematurely in order to support redemption requests

	•		increased administrative costs due to frequent purchases and redemptions

To help protect Contract Owners, Annuitants and Beneficiaries from the negative impact of these practices, we have implemented several processes and/or restrictions aimed at eliminating the negative impact of active trading strategies. There is no guarantee that we will be able to detect harmful trading practices, or, if it is detected, to prevent recurrences.

U.S. Mail Restrictions on Persons Engaged in Harmful Trading Practices

We monitor transfer activity in order to identify those who may be engaged in harmful trading practices and we produce and examine transaction reports. Generally, a Contract may appear on these reports if the Contract Owner (or a third party acting on their behalf) engages in a certain number of “transfer events” in a given period. A “transfer event” is any transfer, or combination of transfers, occurring on a given trading day (Valuation Date). For example, multiple transfers by a Contract Owner involving 10 underlying Portfolios in one day count as one transfer event. A single transfer occurring on a given trading day and involving only 2 underlying Portfolios (or one underlying Portfolio if the transfer is made to or from the Fixed Account options) will also count as one transfer event. A transfer event would not include a transfer made pursuant to one of the automatic transfer programs such as dollar cost averaging, portfolio rebalancing and interest sweep.

As a result of this monitoring process, we may restrict the method of communication by which transfer requests will be accepted. In general, we will adhere to the following guidelines:


Trading Behavior		Our Response
6 or more transfer events in one quarter of a Contract Year		We will mail a letter to the Contract Owner notifying the Contract Owner that:
		(1) we have identified the Contract Owner as a person engaging in harmful trading practices; and

		(2) if the Contract Owner’s transfer events exceed 12 in one Contract Year, we will automatically require the Contract Owner to submit transfer requests via regular first-class U.S. mail and we will not accept transfer requests from the Contract Owner that are sent by other means such as electronic means or overnight, priority or courier delivery.

More than 12 transfer events in one Contract Year		We will automatically require the Contract Owner to submit transfer requests via regular first-class U.S. mail and we will not accept transfer requests from the Contract Owner that are sent by any other means.

On each Contract Anniversary, we will start the monitoring anew, so that each Contract starts with zero transfer events the first day of each new Contract Year. See, however, the “Other Restrictions” provision below.

U.S Mail Restrictions on Managers of Multiple Contracts

Some investment advisors/representatives manage the assets of multiple Contracts pursuant to trading authority granted or conveyed by multiple Contract Owners. We generally will require these multi-contract advisors to submit all transfers requests via regular first-class U.S. mail.

Other Restrictions

We reserve the right to refuse or limit transfer requests, or take any other action we deem necessary, in order to protect Contract Owners, Annuitants, and Beneficiaries from the negative investment results that may result from short-term

trading or other harmful investment practices employed by some Contract Owners (or third parties acting on their behalf). In particular, trading strategies designed to avoid or take advantage of our monitoring procedures (and other measures aimed at curbing harmful trading practices) that are nevertheless determined by us to constitute harmful trading practices, may be restricted. We will consider the following factors:

•

the dollar amount involved in the transfer event

•

the total assets of the Portfolio involved in the transfer event

•

the number of transfer events completed in the current quarter of the Contract Year

•

whether the transfer event is part of a pattern of transfer events designed to take advantage of short-term market fluctuations or market efficiencies

In addition, the Portfolios reserve the right, in their sole discretion and without prior notice, to reject, restrict or refuse purchase orders received from insurance company separate accounts that the Portfolios determine not to be in the best interest of their shareholders. We will apply such rejections, restrictions or refusals by the Portfolios uniformly and without exception.

The restrictions discussed above are designed to prevent harmful trading practices. Despite such transfer restrictions, there is a risk that such harmful trading practices could still occur. If we determine our goal of curtailing harmful trading practices is not being fulfilled, we may amend or replace the procedures described above without prior notice. We will consider waiving the procedures described above for unanticipated financial emergencies.

ANNUITY INVESTORS LIFE INSURANCE COMPANY^Ò
ANNUITY INVESTORS^Ò VARIABLE ACCOUNT B

THE COMMODORE SPIRIT^Ò
THE COMMODORE ADVANTAGE^Ò
AND THE COMMODORE INDEPENDENCE^Ò
GROUP AND INDIVIDUAL FLEXIBLE PREMIUM DEFERRED ANNUITIES

SUPPLEMENTAL PROSPECTUS DATED MAY 1, 2007

Annuity Investors Life Insurance Company (“the Company,” “we,” “our” or “us”) is providing you with this Supplemental Prospectus that supplements and should be read with the prospectus (“Contract Prospectus”) dated May 1, 2007, for either The Commodore Spirit^®, The Commodore Advantage^® or The Commodore Independence^® Variable Annuity (the “Contract”). The Contract Prospectus contains details regarding your Contract. Please read the Contract Prospectus and this Supplemental Prospectus carefully and keep them for future reference. Unless otherwise indicated, terms used in this Supplemental Prospectus have the same meaning as in the Contract Prospectus.

This Supplemental Prospectus provides information you should know before making any decision to allocate purchase payments or transfer amounts to the subaccounts (collectively, the “Closed Subaccounts”) investing in the following Portfolios:


		AIM Variable Investment Funds
		-AIM V.I. Dynamics Fund-Series I Shares

		Janus Aspen Series
		-Janus Aspen Series Worldwide Growth Portfolio-Institutional Shares

		The Timothy Plan Variable Series
		-The Timothy Plan Conservative Growth Variable Series
		-The Timothy Plan Small-Cap Variable Series
		-The Timothy Plan Strategic Growth Variable Series

The Timothy Plan Small-Cap Variable Series Closed Subaccount is an additional investment option of the Contracts available only to Contract Owners who held Accumulation Units in that Subaccount on April 30, 2002. The AIM V.I. Dynamics Fund Closed Subaccount, the Janus Aspen Series Worldwide Growth Closed Subaccount, The Timothy Plan Conservative Growth Variable Series Closed Subaccount, and The Timothy Plan Strategic Growth Variable Series Closed Subaccount are additional investment options of the Contracts available only to Contract Owners who held Accumulation Units in these Subaccounts on November 30, 2004. Each of these investment options will become unavailable to you once you no longer have money in that Subaccount. Unless the context requires otherwise, all provisions of the Contract Prospectus are applicable to the Subaccounts described in this Supplemental Prospectus.

The Statement of Additional Information (“SAI”) dated May 1, 2007, contains more information about the Separate Account and the Contracts, including the Subaccounts. We filed the SAI with the Securities and Exchange Commission (SEC) and it is legally part of the Contract Prospectus and this Supplemental Prospectus. The table of contents for the SAI is located on the last page of the Contract Prospectus. For a free copy, complete and return the form on the last page of the Contract Prospectus, or call us at 1-800-789-6771. You may also access the SAI and the other documents filed with the SEC about the Company, the Separate Account and the Contracts at the SEC’s website: http://www.sec.gov. The registration number for The Commodore Spirit^® is 333-19725; The Commodore Advantage^® is 333-51971; and The Commodore Independence^® is 333-51955.

NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THE CONTRACT PROSPECTUS OR THIS SUPPLEMENTAL PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

You should rely only on the information contained in the Contract, the Contract Prospectus, this Supplemental Prospectus, the SAI, or our approved sales literature. The description of the Contract in the Contract Prospectus is subject to the specific terms of your Contract as it contains specific contractual provisions and conditions. If the terms of your Contract differ from those in the Contract Prospectus, you should rely on the terms in your Contract. No one is authorized to give any information or make any representation other than those contained in the Contract, the Contract Prospectus, this Supplemental Prospectus, the SAI or our approved sales literature.

These securities may be sold by a bank or credit union, but are not financial institution products.

§		The Contracts are not FDIC or NCUSIF insured

§		The Contracts are obligations of the Company and not of the bank or credit union

§		The bank or credit union does not guarantee the Company’s obligations under the Contracts

§		The Contracts involve investment risk and may lose value

FINANCIAL INFORMATION

Condensed Financial Information

Appendix A to this Supplemental Prospectus provides condensed financial information for the Commodore Spirit^®, the Commodore Advantage^®, and the Commodore Independence^® variable annuities with respect to each Closed Subaccount. This information includes the following information:

•

year-end accumulation unit value for each Closed Subaccount from the end of the year of inception through December 31, 2006

•

number of accumulation units outstanding as of the end of each period.

Financial Statements

The financial statements and reports of the independent registered public accounting firm of the Company and of the Separate Account are included in the Statement of Additional Information.

THE PORTFOLIOS

The Separate Account currently offers each of the Closed Subaccounts only to the Contract Onwers who held Accumulation Units in such Closed Subaccount on the date it was closed to new investors (as indicated on the first page of this Supplemental Prospectus). Each Closed Subaccount invests in the corresponding Portfolio listed below, which has its own investment objectives, policies and practices. The current Portfolio prospectuses, which accompany this Supplemental Prospectus, contain additional information concerning the investment objectives and policies of the Portfolios, the investment advisory services and administrative services of the Portfolios, and the charges of the Portfolios.

You should read the Portfolio prospectuses and this Supplemental Prospectus carefully before making any decision concerning allocating additional purchase payments or transferring amounts to any of these Closed Subaccounts or the Subaccounts.

There is no assurance that any Portfolio will achieve its stated objectives. The SEC does not supervise the management or the investment policies and/or practices and/or of any Portfolio.

All dividends and capital gains distributed by the Portfolios are reinvested in the Separate Account and reflected in Accumulation Unit Value. Portfolio dividends and net capital gains are not distributed to Owners.

The Portfolios are available only through insurance company separate accounts and certain qualified retirement plans. Though a Portfolio may have a name and/or investment objectives which are similar to those of a publicly available mutual fund, and/or may be managed by the same investment advisor that manages a publicly available mutual fund, the performance of the Portfolio is entirely independent of the performance of any publicly available mutual fund. Neither the Company nor the Portfolios make any representations or assurances that the investment performance of the Portfolios will be the same or similar to the investment performance of any publicly available mutual fund.


Portfolio		Adviser and Type of Fund
AIM Variable Investment Funds

AIM V.I. Dynamics Fund-Series I Shares		A I M Advisors, Inc.
		Mid cap growth

Janus Aspen Series

Janus Aspen Series Worldwide Growth Portfolio – Service Shares		Janus Capital Management LLC World stock

The Timothy Plan Variable Series

The Timothy Plan Conservative Growth Variable Series		Timothy Partners, Ltd. Asset allocation

The Timothy Plan Small-Cap Variable Series		Timothy Partners, Ltd. Small cap value

The Timothy Plan Strategic Growth Variable Series		Timothy Partners, Ltd. Asset allocation

Expenses of the Portfolios

In addition to charges and deductions by us, there are Portfolio management fees and administration expenses. These fees and expenses are described in the prospectuses and statements of additional information for the Portfolios. Portfolio expenses, like Separate Account expenses, are reflected in Accumulation Unit Values (or Benefit Unit Values).

Investment Options-Allocations

You may allocate purchase payments in whole percentages to any of the currently available Subaccounts described in the Contract Prospectus or to any of the Fixed Account options.

You may allocate purchase payments to The Timothy Plan Small-Cap Variable Series Closed Subaccount only if you held Accumulation Units in that Closed Subaccount as of April 30, 2002. This investment option will become unavailable to you once you no longer have Accumulation Units in these Closed Subaccounts.

You may allocate purchase payments to any of the following Closed Subaccounts only if you held Accumulation Units in the respective Closed Subaccount as of November 30, 2004.

AIM V.I. Dynamics Fund Closed Subaccount

Janus Aspen Series Worldwide Growth Portfolio Closed Subaccount

The Timothy Plan Conservative Growth Variable Series Closed Subaccount

The Timothy Plan Strategic Growth Variable Series Closed Subaccount

Each of these investment options will become unavailable to you once you no longer have money in that Closed Subaccount.

Substitutions of Portolios

As described in the Contract Prospectus, we may substitute a new Portfolio or similar investment option for any Portfolio in which a Subaccount invests. We would make a substitution to ensure the underlying Portfolio continues to be a suitable investment, consistent with the protection of investors. A substitution may be triggered by unsatisfactory investment performance, a change in laws or regulations, a change in a Portfolio’s investment objectives or restrictions, a change in the availability of the Portfolio for investment, or any other reason. Before any substitution, we will obtain any required approvals, including approval from the SEC or from Contract Owners.

APPENDIX A: CONDENSED FINANCIAL INFORMATION

The tables below give year-end Accumulation Unit Information for the Commodore Spirit, Commodore Advantage, and Commodore Independence variable annuities with respect to each Closed Subaccount from the end of the year of inception through December 31, 2006. It should be read in conjunction with the Separate Account financial statements, including the notes to those statements. The beginning Accumulation Unit Value for each Closed Subaccount shown was 10.00000 as of July 15, 1997 (the Separate Account commencement date) for the Janus Aspen Series Worldwide Growth Portfolio, or as of May 1, 1998 (the effective date of the Closed Subaccounts) for The Timothy Plan Small-Cap Variable Series, or as of May 1, 2001 (the effective date of the Closed Subaccounts) for the AIM V.I. Dynamics Fund — Series I Shares, or as of May 1, 2002 (the effective date of the Closed Subaccounts) for The Timothy Plan Conservative Growth Variable Series and The Timothy Plan Strategic Growth Variable Series.

The Commodore Spirit^{^®}(Current Contract)


					Number of
				Enhanced with	Enhanced with
	Number of		Number of	Administration	Administration
	Standard		Enhanced	Charges	Charges Waived
Standard	Accumulation	Enhanced	Accumulation	Waived	Accumulation
Accumulation	Units	Accumulation	Units	Accumulation	Units
Unit Value	Outstanding	Unit Value	Outstanding	Unit Value	Outstanding	Year
AIM V.I. Dynamics Fund-Series I Shares
10.287076	105,073.806	10.463499	0.000	10.552834	88.031	12/31/06
8.984924	75,896.111	9.111342	0.000	9.175262	60.280	12/31/05
8.229888	77,529.977	8.320433	0.000	8.366155	23.763	12/31/04
7.364205	63,086.332	7.422756	0.000	7.452291	0.000	12/31/03
5.417943	78,143.205	5.444887	0.000	5.458451	0.000	12/31/02
8.067308	93,275.876	8.083372	0.000	8.091444	0.000	12/31/01
Janus Aspen Series Worldwide Growth Portfolio-Institutional Shares
14.717387	1,410,898.731	15.139123	8,089.661	15.354205	198.036	12/31/06
12.627182	1,622,445.152	12.949718	9,847.675	13.113864	180.878	12/31/05
12.096493	1,892,337.612	12.367909	10,895.424	12.505798	292.617	12/31/04
11.708282	2,099,555.231	11.934844	14,464.542	12.049706	277.111	12/31/03
9.574914	2,438,561.261	9.731344	10,650.649	9.810429	2,191.502	12/31/02
13.032840	2,364,153.929	13.206482	7,650.835	13.294015	2,191.502	12/31/01
17.039678	2,082,293.354	17.215191	5,014.610	17.303370	3,484.654	12/31/00
20.488548	1,026,072.851	20.638429	2,225.846	20.713399	151.550	12/31/99
12.632936	402,131.168	12.687776	123.659	12.715080	0.000	12/31/98
9.935860	56,665.753	9.949496	0.000	9.956287	0.000	12/31/97
The Timothy Plan Conservative Growth Variable Series
12.081358	512,762.391	12.252064	13.418	12.338233	0.000	12/31/06
11.224446	572,609.363	11.348586	13.418	11.411149	0.000	12/31/05
10.806880	586,564.485	10.893329	175.420	10.936855	0.000	12/31/04
10.342389	348,794.768	10.393659	37.886	10.419451	0.000	12/31/03
8.916475	167,693.588	8.934171	0.200	8.943061	0.000	12/31/02


					Number of
				Enhanced with	Enhanced with
	Number of		Number of	Administration	Administration
	Standard		Enhanced	Charges	Charges Waived
Standard	Accumulation	Enhanced	Accumulation	Waived	Accumulation
Accumulation	Units	Accumulation	Units	Accumulation	Units
Unit Value	Outstanding	Unit Value	Outstanding	Unit Value	Outstanding	Year
The Timothy Plan Small-Cap Variable Series
20.317413	218,626.764	20.850379	1,655.833	21.035880	0.000	12/31/06
17.335322	277,780.814	17.736216	2,457.919	17.867005	0.000	12/31/05
17.697722	310,246.389	18.052188	2,782.088	18.157863	0.000	12/31/04
16.103370	325,717.236	16.376328	2,478.777	16.447350	0.000	12/31/03
11.570446	411,952.278	11.731810	1,895.369	11.765228	0.000	12/31/02
14.201161	358,967.966	14.356543	1,265.216	14.376029	0.000	12/31/01
12.876042	256,856.613	12.978169	676.849	12.976380	0.000	12/31/00
12.097693	94,238.615	12.157659	374.501	12.137973	0.000	12/31/99
10.283942	29,293.327	10.304332	17.653	N/A	N/A	12/31/98
The Timothy Plan Strategic Growth Variable Series
12.181313	629,515.069	12.352932	0.000	12.439564	0.000	12/31/06
11.247959	673,218.784	11.371889	0.000	11.434368	0.000	12/31/05
10.772978	687,211.128	10.858721	0.000	10.901897	0.000	12/31/04
10.104822	408,637.294	10.154501	0.000	10.179502	0.000	12/31/03
8.194917	159,507.218	8.210855	0.000	8.218868	0.000	12/31/02

The Commodore Spirit^{^®}(Contract with Death Benefit Rider No Longer Available*)


*		See The Commodore Spirit^® Supplemental Prospectus dated May 1, 2007 regarding the Cancelled Death Benefit Rider for more information.


			Number of		Number of
			Optional		Optional
		Optional	Death Benefit	Optional	Death Benefit
	Number of	Death Benefit	(issue age 65	Death Benefit	(issue age over
	Standard	(issue age 65	and younger)	(issue age over	65/under 79)
Standard	Accumulation	and younger)	Accumulation	65/under 79)	Accumulation
Accumulation	Units	Accumulation	Units	Accumulation	Units
Unit Value	Outstanding	Unit Value	Outstanding	Unit Value	Outstanding	Year
AIM V.I. Dynamics Fund-Series I Shares
10.287076	105,073.806	10.228974	157.523	10.142423	0.000	12/31/06
8.984924	75,896.111	8.943219	130.974	8.881025	0.000	12/31/05
8.229888	77,529.977	8.199982	100.281	8.155318	0.000	12/31/04
7.364205	63,086.332	7.344844	64.658	7.315884	0.000	12/31/03
5.417943	78,143.205	5.409027	24.686	5.395649	0.000	12/31/02
8.067308	93,275.876	8.061982	0.000	8.053984	0.000	12/31/01
Janus Aspen Series Worldwide Growth Portfolio-Institutional Shares
14.717387	1,410,898.731	14.579256	2,270.609	14.375089	0.000	12/31/06
12.627182	1,622,445.152	12.521328	2,340.830	12.364730	0.000	12/31/05
12.096493	1,892,337.612	12.007224	2,503.457	11.875064	0.000	12/31/04
11.708282	2,099,555.231	11.633594	2,809.923	11.522959	0.000	12/31/03
9.574914	2,438,561.261	9.523209	2,621.610	9.446581	0.000	12/31/02
13.032840	2,364,153.929	12.975281	1,362.573	12.889939	0.000	12/31/01
17.039678	2,082,293.354	N/A	N/A	N/A	N/A	12/31/00
20.488548	1,026,072.851	N/A	N/A	N/A	N/A	12/31/99
12.632936	402,131.168	N/A	N/A	N/A	N/A	12/31/98
9.935860	56,665.753	N/A	N/A	N/A	N/A	12/31/97
The Timothy Plan Conservative Growth Variable Series
12.081358	512,762.391	12.025018	9,153.898	11.940953	0.000	12/31/06
11.224446	572,609.363	11.183411	4,407.021	11.122095	0.000	12/31/05
10.806880	586,564.485	10.778271	4,590.387	10.735463	0.000	12/31/04
10.342389	348,794.768	10.325409	7,343.039	10.299964	0.000	12/31/03
8.916475	167,693.588	8.910599	1,125.801	8.901785	0.000	12/31/02
The Timothy Plan Small-Cap Variable Series
20.317413	218,626.764	20.143256	976.759	19.884612	0.000	12/31/06
17.335322	277,780.814	17.204132	781.843	17.009020	0.000	12/31/05
17.697722	310,246.389	17.581568	782.093	17.408569	0.000	12/31/04
16.103370	325,717.236	16.013800	604.436	15.880218	0.000	12/31/03
11.570446	411,952.278	11.517409	4,231.387	11.438200	0.000	12/31/02
14.201161	358,967.966	14.150023	13.748	14.073530	0.000	12/31/01
12.876042	256,856.613	N/A	N/A	N/A	N/A	12/31/00
12.097693	94,238.615	N/A	N/A	N/A	N/A	12/31/99
10.283942	29,293.327	N/A	N/A	N/A	N/A	12/31/98
The Timothy Plan Strategic Growth Variable Series
12.181313	629,515.069	12.124648	175.753	12.040151	0.000	12/31/06
11.247959	673,218.784	11.206981	140.480	11.145787	0.000	12/31/05
10.772978	687,211.128	10.744596	590.905	10.702146	0.000	12/31/04
10.104822	408,637.294	10.088364	3,195.360	10.063711	0.000	12/31/03
8.194917	159,507.218	8.189622	4,019.666	8.181687	0.000	12/31/02

The Commodore Independence^{^®}(Current Contract)


			Number of		Number of
			Enhanced		Enhanced
		Enhanced	(1.10% Total	Enhanced	(0.90% Total
		(1.10% Total	Separate	(0.90% Total	Separate
	Number of	Separate	Account	Separate	Account
	Standard	Account	Expenses)	Account	Expenses)
Standard	Accumulation	Expenses)	Accumulation	Expenses)	Accumulation
Accumulation	Units	Accumulation	Units	Accumulation	Units
Unit Value	Outstanding	Unit Value	Outstanding	Unit Value	Outstanding	Year
AIM V.I. Dynamics Fund-Series I Shares
10.287076	105,073.806	10.463499	0.000	10.582630	0.000	12/31/06
8.984924	75,896.111	9.111342	0.000	9.196547	0.000	12/31/05
8.229888	77,529.977	8.320433	0.000	8.381370	0.000	12/31/04
7.364205	63,086.332	7.422756	0.000	7.462101	7.139	12/31/03
5.417943	78,143.205	5.444887	0.000	5.462949	0.000	12/31/02
8.067308	93,275.876	8.083372	0.000	8.094120	0.000	12/31/01
Janus Aspen Series Worldwide Growth Portfolio-Institutional Shares
14.717387	1,410,898.731	15.139123	8,089.661	11.768528	0.000	12/31/06
12.627182	1,622,445.152	12.949718	9,847.675	10.046327	0.000	12/31/05
12.096493	1,892,337.612	12.367909	10,895.424	9.575676	0.000	12/31/04
11.708282	2,099,555.231	11.934844	14,464.542	9.221822	46,144.266	12/31/03
9.574914	2,438,561.261	9.731344	10,650.649	7.504379	39,742.411	12/31/02
13.032840	2,364,153.929	13.206482	7,650.835	10.164080	32,752.139	12/31/01
17.039678	2,082,293.354	N/A	N/A	N/A	N/A	12/31/00
20.488548	1,026,072.851	N/A	N/A	N/A	N/A	12/31/99
12.632936	402,131.168	N/A	N/A	N/A	N/A	12/31/98
9.935860	56,665.753	N/A	N/A	N/A	N/A	12/31/97
The Timothy Plan Conservative Growth Variable Series
12.081358	512,762.391	12.252064	13.418	12.367019	0.000	12/31/06
11.224446	572,609.363	11.348586	13.418	11.432023	0.000	12/31/05
10.806880	586,564.485	10.893329	175.420	10.951356	0.000	12/31/04
10.342389	348,794.768	10.393659	37.886	10.428026	0.000	12/31/03
8.916475	167,693.588	8.934171	0.200	8.946009	0.000	12/31/02
The Timothy Plan Small-Cap Variable Series
20.317413	218,626.764	20.850379	1,655.833	21.150591	0.000	12/31/06
17.335322	277,780.814	17.736216	2,457.919	17.955404	0.000	12/31/05
17.697722	310,246.389	18.052188	2,782.088	18.238528	0.000	12/31/04
16.103370	325,717.236	16.376328	2,478.777	16.512134	0.000	12/31/03
11.570446	411,952.278	11.731810	1,895.369	11.805762	0.000	12/31/02
14.201161	385,967.966	14.356543	1,265.216	14.418440	0.000	12/31/01
12.876042	256,856.613	12.978169	676.849	13.008207	0.000	12/31/00
12.097693	94,238.615	12.157659	374.501	12.137973	0.000	12/31/99
10.283942	29,293.327	10.304332	17.653	N/A	N/A	12/31/98
The Timothy Plan Strategic Growth Variable Series
12.181313	629,515.069	12.352932	0.000	12.468482	0.000	12/31/06
11.247959	673,218.784	11.371889	0.000	11.455183	0.000	12/31/05
10.772978	687,211.128	10.858721	0.000	10.916251	0.000	12/31/04
10.104822	408,637.294	10.154501	0.000	10.187798	0.000	12/31/03
8.194917	159,507.218	8.210855	0.000	8.221523	0.000	12/31/02


Enhanced with	Number of Enhanced	Enhanced with	Number of Enhanced
Administration	with Administration	Administration	with Administration
charges waived	charges waived	charges waived	charges waived
(0.95% Total	(0.95% Total	(0.75% Total	(0.75% Total
Separate Account	Separate Account	Separate Account	Separate Account
Expenses)	Expenses)	Expenses)	Expenses)
Accumulation Unit	Accumulation Units	Accumulation Unit	Accumulation Units
Value	Outstanding	Value	Outstanding	Year
AIM V.I. Dynamics Fund-Series I Shares
10.552834	88.031	10.672996	122.199	12/31/06
9.175262	60.280	9.261113	111.545	12/31/05
8.366155	23.763	8.427490	63.240	12/31/04
7.452291	0.000	7.491858	57.208	12/31/03
5.458451	0.000	5.476583	18.335	12/31/02
8.091444	0.000	8.102202	0.000	12/31/01
Janus Aspen Series Worldwide Growth Portfolio-Institutional Shares
15.354205	198.036	11.918070	2,527.467	12/31/06
13.113864	180.878	10.158682	2,571.733	12/31/05
12.505798	292.617	9.668184	2,190.387	12/31/04
12.049706	277.111	9.296883	2,169.871	12/31/03
9.810429	2,191.502	7.554217	1,573.229	12/31/02
13.294015	2,191.502	10.216331	0.000	12/31/01
The Timothy Plan Conservative Growth Variable Series
12.338233	0.000	12.453961	4,166.020	12/31/06
11.411149	0.000	11.495051	2,663.055	12/31/05
10.936855	0.000	10.995154	133.936	12/31/04
10.419451	0.000	10.453956	6.078	12/31/03
8.943061	0.000	8.954924	0.000	12/31/02
The Timothy Plan Small-Cap Variable Series
21.035880	0.000	21.380470	758.101	12/31/06
17.867005	0.000	18.123238	739.509	12/31/05
18.157863	0.000	18.381300	565.694	12/31/04
16.447350	0.000	16.616330	366.035	12/31/03
11.765228	0.000	11.862623	528.208	12/31/02
14.376029	0.000	14.466293	0.000	12/31/01
12.976380	0.000	N/A	N/A	12/31/00
12.137973	0.000	N/A	N/A	12/31/99
N/A	N/A	N/A	N/A	12/31/98
The Timothy Plan Strategic Growth Variable Series
12.439564	0.000	12.555889	182.582	12/31/06
11.434368	0.000	11.518110	132.752	12/31/05
10.901897	0.000	10.959701	70.404	12/31/04
10.179502	0.000	10.212939	30.285	12/31/03
8.218868	0.000	8.229559	0.000	12/31/02

The Commodore Advantage^{^®}(Current Contract)


			Number of
		Standard with	Standard with
	Number of	Administration	Administration
Standard	Standard	Charges Waived	Charges Waived
Accumulation Unit	Accumulation Units	Accumulation Unit	Accumulation Units
Value	Outstanding	Value	Outstanding	Year
AIM V.I. Dynamics Fund-Series I Shares
10.287076	105,073.806	10.374943	0.000	12/31/06
8.984924	75,896.111	9.047929	0.000	12/31/05
8.229888	77,529.977	8.275039	0.000	12/31/04
7.364205	63,086.331	7.393411	0.000	12/31/03
5.417943	78,143.205	5.431395	0.000	12/31/02
8.067308	93,275.876	8.075340	0.000	12/31/01
Janus Aspen Series Worldwide Growth Portfolio-Institutional Shares
14.717387	1,410,898.731	11.427272	9,745.222	12/31/06
12.627182	1,622,445.152	9.789468	17,865.960	12/31/05
12.096493	1,892,337.612	9.363811	18,261.241	12/31/04
11.708282	2,099,555.231	9.049605	17,208.944	12/31/03
9.574914	2,438,561.261	7.389719	10,530.938	12/31/02
13.032840	2,364,153.929	10.043546	0.000	12/31/01
17.039678	2,082,293.354	N/A	N/A	12/31/00
20.488548	1,026,072.851	N/A	N/A	12/31/99
12.632936	402,131.168	N/A	N/A	12/31/98
9.935860	56,665.753	N/A	N/A	12/31/97
The Timothy Plan Conservative Growth Variable Series
12.081358	512,762.391	12.166498	0.000	12/31/06
11.224446	572,609.363	11.286400	856.937	12/31/05
10.806880	586,564.485	10.850052	619.421	12/31/04
10.342389	348,794.768	10.368005	0.000	12/31/03
8.916475	167,693.588	8.925318	0.000	12/31/02
The Timothy Plan Small-Cap Variable Series
20.317413	218,626.764	20.453106	0.000	12/31/06
17.335322	277,780.814	17.424644	0.000	12/31/05
17.697722	310,246.389	17.761935	0.000	12/31/04
16.103370	325,717.236	16.137364	0.000	12/31/03
11.570446	411,952.278	11.577730	0.000	12/31/02
14.201161	358,967.966	14.189031	4.378	12/31/01
12.876042	256,856.613	N/A	N/A	12/31/00
12.097693	94,238.615	N/A	N/A	12/31/99
10.283942	29,293.327	N/A	N/A	12/31/98
The Timothy Plan Strategic Growth Variable Series
12.181313	629,515.069	12.266874	0.000	12/31/06
11.247959	673,218.784	11.309780	0.000	12/31/05
10.772978	687,211.128	10.815763	0.000	12/31/04
10.104822	408,637.294	10.129626	0.000	12/31/03
8.194917	159,507.218	8.202876	0.000	12/31/02

APPENDIX B: PORTFOLIOS


Portfolio / Adviser		Investment Objective / Strategy
AIM Variable Insurance Funds

AIM V.I. Dynamics Fund – Series I Shares Advisor — A I M Advisors, Inc.		The fund’s investment objective is long-term capital growth. The fund normally invests at least 65% of its net assets in common stocks of mid-size companies. The advisor actively manages the fund, focusing on mid-cap companies with high growth potential that also are favorably priced relative to the growth expectations for that company. The fund may invest up to 25% of its assets in securities of non-U.S. issuers. Securities of Canadian issuers and American Depositary Receipts are not subject to this 25% limitation. The fund also has the flexibility to invest in other types of securities including preferred stocks, convertible securities and bonds. Any percentage limitations with respect to assets of the fund are applied at the time of purchase.

Janus Aspen Series

Janus Aspen Series Worldwide Growth Portfolio-Institutional Shares Advisor — Janus Capital Management LLC		This diversified portfolio seeks long-term growth of capital in a manner consistent with the preservation of capital by investing primarily in common stocks of companies of any size located throughout the world. The portfolio normally invests in issuers from several different countries, including the U.S. The portfolio may, under unusual circumstances, invest in a single country. The portfolio may have significant exposure to emerging markets. Within the parameters of its specific investment policies, the portfolio may invest in foreign equity and debt securities, which may include investments in emerging markets.

The Timothy Plan Variable Series

The Timothy Plan Conservative Growth VS Advisor — Timothy Partners, Ltd.		The primary investment objective of the Timothy Plan Conservative Growth Variable Series is to seek moderate levels of long-term capital growth, with a secondary objective of current income. The Portfolio normally invests at least 75% in specific funds offered by the Timothy Plan family of funds. Fund investments are reallocated as new assets come into the Fund and at the end of each quarter, as needed to maintain the asset allocation. The securities in which the underlying funds shall be precluded from investing, by virtue of the funds’ and Portfolio’s ethical standards, are referred to as “excluded securities.”

The Timothy Plan Small-Cap Variable Series Advisor — Timothy Partners, Ltd.		The primary investment objective of the Timothy Plan Small-Cap Variable Series is to seek long-term capital growth, with a secondary objective of current income. The Portfolio seeks to achieve its objectives while abiding by ethical standards established for investments by the Portfolio. The securities in which the Portfolio is precluded from investing, by virtue of the Portfolio’s ethical standards, are referred to as excluded securities.


Portfolio / Advisor		Investment Objective / Strategy
Wilshire 2045 Moderate Fund Advisor—Wilshire Associates Incorporated		The 2045 Moderate Fund’s investment objective is to provide high total return until its target retirement date. Thereafter, the 2045 Moderate Fund’s objective will be to seek high current income and, as a secondary objective, capital appreciation. The 2045 Moderate Fund operates under a fund of funds structure. The 2045 Moderate Fund invests in Underlying Funds according to a moderate asset allocation strategy designed for investors planning to retire in 2045, plus or minus two to three years. The 2045 Moderate Fund’s initial target allocation will be approximately 100% equity, with an increasing allocation to fixed income over time. Within 5 to 10 years after 2045, the 2045 Moderate Fund’s asset allocation should be approximately 80% investment in fixed income securities and the remaining 20% in equity securities.


Portfolio / Adviser		Investment Objective / Strategy
The Timothy Plan Strategic Growth VS Advisor — Timothy Partners, Ltd.		The primary investment objective of the Timothy Plan Strategic Growth Variable Series is to seek medium to high levels of long-term capital growth, with a secondary objective of current income. The Portfolio normally invests at least 75% in specific funds offered by the Timothy Plan family of funds. Fund investments are reallocated as new assets come into the Fund and at the end of each quarter, as needed to maintain the asset allocation. The securities in which the underlying funds shall be precluded from investing, by virtue of the funds’ and Portfolio’s ethical standards, are referred to as “excluded securities.”