STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 2012
STATE FARM VARIABLE DEFERRED ANNUITY POLICY
STATE FARM LIFE INSURANCE COMPANY VARIABLE ANNUITY
SEPARATE ACCOUNT
OF STATE FARM LIFE INSURANCE COMPANY
P.O. Box 2307
Bloomington, Illinois 61702-2307
This Statement of Additional Information expands upon subjects discussed in the current Prospectus for the
variable deferred annuity policy (the “Policy”) offered by State Farm Life Insurance Company (“State Farm, “we,”
“us,” or “our”). You may obtain a copy of the Prospectus dated May 1, 2012 by calling 1-888-702-2307 (Toll free)
or by writing to us at the above address. Terms used in the current Prospectus for the Policy are incorporated into
and made a part of this Statement of Additional Information.
THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND
SHOULD BE READ ONLY IN CONJUNCTION WITH THE PROSPECTUSES
FOR THE POLICY AND THE FUNDS.
Printed in U.S.A.
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
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ADDITIONAL POLICY PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Incontestability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Error in Age or Sex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET INVESTMENT FACTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ANNUITY PAYMENT PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount of Fixed Annuity Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount of Variable Annuity Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Annuity Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Annuity Unit Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ILLUSTRATION OF CALCULATION OF ANNUITY UNIT VALUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ILLUSTRATION OF VARIABLE ANNUITY PAYMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PAYMENT OF PROCEEDS UPON DEATH OF OWNER OR ANNUITANT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Death of Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Death of Annuitant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ADDITION, DELETION OR SUBSTITUTION OF INVESTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SAFEKEEPING OF ACCOUNT ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISTRIBUTION OF THE POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EXPERTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RELATIONSHIPS WITH THE COMPANIES THAT MAINTAIN THE BENCHMARK INDICES . . . . . . . . . . . . . . . . .
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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ADDITIONAL POLICY PROVISIONS
The Policy
The Policy contains the Basic Plan, any amendments, endorsements, and riders, and a copy of the application.
The Policy is the entire contract.
Only an officer has the right to change the Policy. No agent has the authority to change the Policy or to waive
any of its terms. All endorsements, amendments, or riders must be signed by an officer to be valid.
Ownership
You, as the Owner, are named in the application. You may exercise any provision of the Policy only by request
and while the Annuitant is alive. Your Successor Owner is named in the application if you are not the Annuitant.
You may change the Owner or Successor Owner by sending us a request while the Annuitant is alive. We have
the right to request the Policy to make the change on it. The change will take effect the day you sign the request,
but the change will not affect any action we have taken before we receive the request. A change of Owner or
Successor Owner does not change the beneficiary designation. No more than two Owners and no more than two
Successor Owners can be named.
Incontestability
We will not contest the Policy. Any rider has its own incontestability provision.
Error in Age or Sex
If the Annuitant’s, Payee’s, or second designated person’s date of birth or sex is not correct, every benefit will
be such as premiums paid would have bought at the correct age or sex, based on the rates at the date of issue. We
may require proof of the Annuitant’s, Payee’s, second designated person’s age and sex before annuity income
payments start. Any overpayment with compound interest at 6% a year will be charged against the Policy. This
amount will be deducted from any annuity income payments due after the error is found. Any underpayment with
compound interest at 6% a year will be paid to you in one sum.
Participation
We do not expect to pay dividends on the Policy. However, we may apportion and pay dividends each year. All
dividends apportioned will be derived from the divisible surplus of our participating business. Any such dividends
will be paid only at the end of the Policy Year. There is no right to a partial or pro rated dividend prior to the end of
the Policy Year. We will transfer the dividend to the Policy Accumulation Value at the end of the Policy Year. Unless
specified by you, the amount transferred is allocated to each Subaccount and the Fixed Account on a pro-rata basis.
Assignment
You may assign a nonqualified Policy or any interest in it. We will recognize an assignment only if it is in
writing and filed with us. We are not responsible for the validity or effect of any assignment. An assignment may
limit the interest of any Beneficiary.
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NET INVESTMENT FACTOR
The Net Investment Factor is an index applied to measure the investment performance of a Subaccount from
one Valuation Period to the next. The Net Investment Factor for any Subaccount for any Valuation Period is equal to
(1) divided by (2) and subtracting (3) from the result, where:
(1) is the result of:
(a) the Net Asset Value Per Share of the Fund held in the Subaccount determined at the end of the
current Valuation Period; plus
(b) the per share amount of any dividend or capital gain distribution made by the Fund held in the
Subaccount, if the “ex-dividend” date occurs during the Valuation Period; plus or minus
(c) a per share charge or credit for any taxes reserved for
(2) is the Net Asset Value Per Share of the Fund held in the Subaccount, determined at the end of the prior
Valuation Period,
(3) is a daily factor representing the mortality and expense risk charge deducted from the Subaccount
adjusted for the number of days in the Valuation Period. Such charge will not exceed an annual rate of
1.25% of the daily net asset value of the Variable Account.
ANNUITY PAYMENT PROVISIONS
Amount of Fixed Annuity Payments. On the Annuity Date, the amount you have chosen to apply to provide
fixed annuity income payments will be applied under the annuity income option you have chosen. The annuity
option payment factor in effect on the Annuity Date times that amount will be the dollar amount of each payment.
Each of these payments will be equal and will not change.
The annuity option payment factor used to determine the amount of the fixed annuity payments will not be less
than the guaranteed minimum annuity payment factors shown in the Policy.
Amount of Variable Annuity Payments. These income payments will vary in amount. The dollar amount of
each payment attributable to each Subaccount is the number of Annuity Units for each Subaccount times the
Annuity Unit Value of that Subaccount. The sum of the dollar amounts for each Subaccount is the amount of the
total variable annuity income payment. The Annuity Unit Value for each payment will be determined no earlier than
five Valuation Days preceding the date the annuity income payment is due. We guarantee the payment will not vary
due to changes in mortality or expenses.
Annuity Units. On the Annuity Date, the number of Annuity Units for an applicable Subaccount is determined
by multiplying (1) by (2) and dividing the result by (3), where:
(1) is the part of the Cash Surrender Value or Death Benefit on that date applied under that Subaccount;
(2) is the Guaranteed Minimum Payment Factor for the Annuity Option chosen; and
(3) is the Annuity Unit Value for the Subaccount at the end of the Valuation Period encompassing that date.
Annuity Unit Value. The Annuity Unit Values for each Subaccount were arbitrarily set initially at $10 when that
Subaccount began operation. Thereafter, the Annuity Unit Value for every Valuation Period is the Annuity Unit Value
at the end of the previous Valuation Day times the Net Investment Factor times the Annuity Interest Factor. The
Annuity Interest Factor is used to neutralize the Assumed Investment Rate of 3 1⁄ 2% a year used to determine the
guaranteed minimum payment factors. The Assumed Investment Rate is significant in determining the amount of
each variable annuity income payment and the amount by which each variable annuity income payment varies from
one payment to the next.
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ILLUSTRATION OF CALCULATION OF ANNUITY UNIT VALUE
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Accumulation unit value for current valuation period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulation unit value for immediately preceding valuation period . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Annuity unit value for immediately preceding valuation period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Factor to compensate for the assumed investment rate of 3.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Annuity unit value of current valuation period ((1) / (2)) x (3) x (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11.12
11.10
20.00
.9999
20.03
ILLUSTRATION OF VARIABLE ANNUITY PAYMENTS
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Number of accumulation units at Maturity Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Accumulation unit value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11.12
Adjusted Policy Accumulation Value (1)x(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111,200
Monthly annuity payment per $1,000 of adj. Policy Accumulation Value . . . . . . . . . . . . . . . . . . . . . .
5.82
Monthly annuity payment (3)x(4) / 1,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
647.18
Annuity unit value at Maturity Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20.03
Number of annuity units (5)/(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.3105
Assume annuity unit value at the end of first month equal to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20.20
First monthly annuity payment (7)x(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
652.67
Assume annuity unit value at the end of second month equal to . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.90
Second monthly annuity payment (7)x(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
642.98
Assume annuity unit value at the end of third month equal to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20.50
Third monthly annuity payment (7)x(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
662.37
PAYMENT OF PROCEEDS UPON DEATH OF OWNER OR ANNUITANT
Death of Owner
The Code requires the following distributions under a Non-Qualified annuity when you die.
(1) If you die before the Annuity Date, you are not the Annuitant, and you either have not named a Successor
Owner or your named Successor Owner is not a living natural person, the Cash Surrender Value must be
paid within 5 years after your date of death.
(2) If you die before the Annuity Date, you are the Annuitant, and you either have not named any beneficiary
or your named beneficiary is not a living natural person, the death benefit must be paid within 5 years
after your date of death.
(3) If you die before the Annuity Date, you are not the Annuitant, and your sole Successor Owner is a person
other than your spouse, your Successor Owner may elect to have the Cash Surrender Value paid under
an annuity option or any other method of payment then provided by us other than an interest only
method of payment. The election must be made and payments must start within one year after your
death and must not extend beyond the life or life expectancy of your Successor Owner. If no election is
made within this time, distribution will be made within five years after your date of death.
(4) If you die before the Annuity Date, you are the Annuitant, and your sole named surviving primary
beneficiary is a person other than your spouse, your surviving primary beneficiary may elect to have the
Death Benefit paid under an annuity option or any other method of payment then provided by us other
than an interest only method of payment. The election must be made and payments must start within one
year after your death and must not extend beyond the life or life expectancy of your primary beneficiary.
If no election is made within this time, distribution will be made within five years after your date of death.
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(5) If you die before the Annuity Date, you are not the Annuitant, and your sole Successor Owner is your
surviving spouse, your surviving spouse becomes the Owner. The right of a spouse to continue the
Policy, and all Policy provisions relating to spousal continuation are available only to a person who meets
the definition of “spouse” under Federal law. The Federal Defense of Marriage Act currently does not
recognize same-sex marriages or civil unions, even those which are permitted under individual state
laws. Therefore the spousal continuation provisions of this Policy will not be available to such partners or
same sex marriage spouses. Consult a tax advisor for more information on this subject.
(6) If you die before the Annuity Date, you are the Annuitant, and your surviving spouse is your sole named
primary beneficiary, your spouse will replace you as Owner and may replace you as Annuitant. If your
spouse does not elect to replace you as Annuitant, the Death Benefit must be paid to your spouse under
an annuity option or any other method of payment then provided by us for an owner. For purposes of the
preceding sentence, the election must be made, payments must start within one year after your death,
and must not extend beyond your spouse’s life or life expectancy; however, if your spouse does not
choose a method of payment within this time, distribution will be made under Annuity Option 1—Life
Annuity.
(7) If you die on or after the Annuity Date and you are not the Annuitant, any remaining payments must be
paid to your Successor Owner at least as fast as the method of payment in effect at your death.
(8) If you die on or after the Annuity Date and you are the Annuitant, any remaining payments must be paid
to the beneficiary at least as fast as the method of payment in effect at your death.
If you are not a living natural person, the Annuitant will be treated as the Owner for purposes of this provision.
If you are not a living natural person and there is a change in the Annuitant, such change shall be treated as the
death of the Owner for purposes of this provision. If the Policy has two owners, the first death of either owner is
treated as the death of the owner for purposes of this provision. For purposes of this provision, the amount of any
distribution will be determined on that date of such distribution. Notwithstanding anything in the Policy to the
contrary, the surviving joint owner will be treated as the Successor Owner of the Policy.
Other rules apply to Qualified Policies.
Death of Annuitant
Death of Annuitant Who is not an Owner. If the Annuitant dies before the Annuity Date and the Annuitant is
not an Owner, the Death Benefit will be paid as provided in the Beneficiary Provisions of the Policy. If the method of
payment chosen is not available or no method of payment is chosen, payment will be in one sum.
If the Annuitant dies on or after the Annuity Date while you are alive, any remaining payments must be paid to
you at least as fast as the method of payment in effect on the Annuitant’s date of death.
Beneficiary Designation. This is as shown in the application. It includes the name of the beneficiary and the
order and method of payment. If you name “estate” as a beneficiary, it means the executors or administrators of
the last survivor of you and all beneficiaries. If you name “children” of a person as a beneficiary, only children born
to or legally adopted by that person as of the Annuitant’s date of death will be included.
We may rely on an affidavit as to the ages, names, and other facts about all beneficiaries. We will incur no
liability if we act on such affidavit.
Change of Beneficiary Designation. You may make a change while the Annuitant is alive by sending us a
request. The change will take effect the date the request is signed and will replace previous beneficiary designations
for the Policy, but the change will not affect any action we have taken before we receive the request. We have the
right to request your Policy to make the change.
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After the Annuitant’s death, anyone who has the right to make a withdrawal may change the method of
payment or may select one of the annuity options, and may name a successor to their interest. The successor
payee may be their estate.
Order of Payment. When the Annuitant dies (1) before the Annuity Date and a death benefit is payable or (2)
on or after the Annuity Date, you are the Annuitant, and payments continue to the beneficiary, we will make such
payment(s) in equal shares to the primary beneficiaries living when payment is made. If a primary dies after the
first payment is made, we will pay that primary’s unpaid share in equal shares to the other primaries living when
payment is made. If the last primary dies, we will make payment in equal shares to the successor beneficiaries
living when payment is made. If a successor dies while receiving payments, we will pay that successor’s unpaid
share in equal shares to the other successors living when payment is made. If, at any time, no primary or
successor is alive, we will make a one sum payment in equal shares to the final beneficiaries. If, at any time, no
beneficiary is living, we will make a one sum payment to you, if living when payment is made. Otherwise, we will
make a one sum payment to the estate of the last survivor of you and all beneficiaries. “When payment is made”
means (1) the date that a periodic payment is due or (2) the date that a request is signed for a cash withdrawal or a
one sum payment. You may change this order of payment by sending us a request while the Annuitant is alive.
ADDITION, DELETION OR SUBSTITUTION OF INVESTMENTS
Where permitted by applicable law, we may:
(1) create new separate accounts;
(2) combine separate accounts, including the Variable Account;
(3) add new Subaccounts to or remove existing Subaccounts from the Variable Account or combine
Subaccounts;
(4) make any Subaccount available to such classes of policies as we may determine;
(5) add new funds or remove existing funds;
(6) substitute new funds for any existing Fund if shares of the Fund are no longer available for investment or
if we determine investment in a Fund is no longer appropriate in the light of the purposes of the Variable
Account;
(7) deregister the Variable Account under the Act if such registration is no longer required; and
(8) operate the Variable Account as a management investment company under the Act or in any other form
permitted by law.
The investment policy of the Variable Account will only be changed with the approval of the insurance
supervisory official of the state in Illinois, our State of domicile. The investment policy of the Variable Account is to
invest in one or more investment companies. The process for such approval is on file.
SAFEKEEPING OF ACCOUNT ASSETS
State Farm holds the title to the assets of the Subaccount. The assets are kept physically segregated and held
separate and apart from State Farm’s General Account assets and from the assets in any other separate account.
Records are maintained of all purchases and redemptions of Fund shares held by each of the Subaccounts.
A fidelity bond in the amount of $5 million covering State Farm’s directors, officers, and employees has been
issued by National Union Fire Insurance Company.
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DISTRIBUTION OF THE POLICIES
State Farm VP Management Corp., One State Farm Plaza, Bloomington, Illinois 61710, acts as the principal
underwriter of the Policies. State Farm VP Management Corp. is affiliated with State Farm Life Insurance Company
because each company is directly or indirectly owned by State Farm Mutual Automobile Insurance Company. State
Farm VP Management Corp. received $575,447 in 2011, $637,619 in 2010, and $724,462 in 2009 as commissions
for serving as principal underwriter of the Policies. State Farm VP Management Corp. did not retain any
commissions in 2011, 2010, and 2009.
We discontinued new sales of the Policies during the latter half of 2008; however, the Company will continue
to administer existing Policies and will continue to accept premiums and permit transfers for such Policies.
EXPERTS
The statutory statements of admitted assets, liabilities, capital and surplus of State Farm Life Insurance
Company as of December 31, 2011 and 2010, and the related statutory statements of operations and change in
capital and surplus, and cash flows for the years ended December 31, 2011, 2010, and 2009, included in this
Statement of Additional Information have been so included in the reliance on the report of PricewaterhouseCoopers
LLP, Independent Registered Public Accounting Firm, given on the authority of said firm as experts in accounting
and auditing.
As stated in their report, these financial statements were prepared by the Company in conformity with the
accounting practices prescribed or permitted by the Illinois Department of Financial and Professional Regulation—
Division of Insurance (statutory basis), which practices differ from accounting principles generally accepted in the
United States of America (GAAP). The effect on the financial statements of the variances between the statutory
basis of accounting and GAAP, although not reasonably determinable, are presumed to be material. Therefore, their
report contains an adverse opinion on the financial statements of the Company in conformity with GAAP, but an
unqualified opinion in conformity with statutory basis accounting.
The statements of assets and contract owners’ equity and surplus of the State Farm Life Insurance Company
Variable Annuity Separate Account at December 31, 2011 and the results of its operations for the year then ended,
and the changes in its contract owners’ equity and surplus for each of the two years in the period ended
December 31, 2011, included in this Statement of Additional Information have been so included in the reliance on
the report of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm, given on the authority
of said firm as experts in accounting and auditing.
OTHER INFORMATION
A registration statement has been filed with the SEC under the Securities Act of 1933, as amended, with
respect to the Policies discussed in this Statement of Additional Information. Not all the information set forth in the
registration statement, amendments and exhibits thereto has been included in this Statement of Additional
Information. Statements contained in this Statement of Additional Information concerning the content of the
Policies and other legal instruments are intended to be summaries. For a complete statement of the terms of these
documents, reference should be made to the instruments filed with the SEC.
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RELATIONSHIPS WITH THE COMPANIES THAT MAINTAIN THE BENCHMARK INDICES
Standard & Poor’s
“Standard & Poor’s®”, “S&P®”, “S&P 500®”, “Standard & Poor’s 500”, and “500” are trademarks of The
McGraw-Hill Companies, Inc. and have been licensed for use by State Farm and the Trust. Neither the State Farm
Variable Deferred Annuity, the Large Cap Equity Index Fund, nor the Stock and Bond Balanced Fund (the “Product
and Funds”) are sponsored, endorsed, sold or promoted by Standard & Poor’s, a division of The McGraw-Hill
Companies, Inc. (“S&P”).
S&P makes no representation or warranty, express or implied, to the owners of the Product and Funds or any
member of the public regarding the advisability of investing in securities generally or in the Product and Funds
particularly or the ability of the S&P 500 Index to track general stock market performance. S&P’s only relationship
to State Farm and the Trust is the licensing of certain trademarks and trade names of S&P and of the S&P 500
Index which is determined, composed and calculated by S&P without regard to State Farm, the Trust, the Product,
or the Funds. S&P has no obligation to take the needs of State Farm, the Trust, or the owners of the Product and
Funds into consideration in determining, composing or calculating the S&P 500 Index. S&P is not responsible for
and has not participated in the determination of the prices and amount of the Product and Funds or the timing of
the issuance or sale of the Product and Funds or in the determination or calculation of the equation by which the
Product and Funds are to be converted into cash. S&P has no obligation or liability in connection with the
administration, marketing or trading of the Product and Funds.
S&P does not guarantee the accuracy and/or the completeness of the S&P 500 Index or any data included
therein and S&P shall have no liability for any errors, omissions, or interruptions therein. S&P makes no
warranty, express or implied, as to results to be obtained by State Farm, the Trust, owners of the product and
Funds, or any other person or entity from the use of the S&P 500 Index or any data included therein. S&P
makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness
for a particular purpose or use with respect to the S&P 500 Index or any data included therein. Without limiting
any of the foregoing, in no event shall S&P have any liability for any special, punitive, indirect, or
consequential damages (including lost profits), even if notified of the possibility of such damages.
Frank Russell Company
The Russell 2000® Index is a trademark/service mark of the Frank Russell Company. Russell™ is a trademark
of the Frank Russell Company.
The Small Cap Equity Index Fund is not promoted, sponsored or endorsed by, nor in any way affiliated with
Frank Russell Company. Frank Russell Company is not responsible for and has not reviewed the Small Cap Equity
Index Fund nor any associated literature or publications and Frank Russell Company makes no representation or
warranty, express or implied, as to their accuracy, or completeness, or otherwise.
Frank Russell Company reserves the right, at any time and without notice, to alter, amend, terminate or in any
way change its Index(es). Frank Russell Company has no obligation to take the needs of any particular fund or its
participants or any other product or person into consideration in determining, composing or calculating the
Index(es).
Frank Russell Company’s publication of the Index(es) in no way suggests or implies an opinion by Frank
Russell Company as to the attractiveness or appropriateness of investment in any or all securities upon which the
Index(es) are based. Frank Russell Company makes no representation, warranty, or guarantee as to the
accuracy, completeness, reliability, or otherwise of the index(es) or any data included in the index(es). Frank
Russell Company makes no representation or warranty regarding the use, or the results of use, of the index(es)
or any data included therein, or any security (or combination thereof) comprising the index(es). Frank Russell
Company makes no other express or implied warranty, and expressly disclaims any warranty, of any kind,
including, without means of limitation, any warranty of merchantability or fitness for a particular purpose with
respect to the index(es) or any data or any security (or combination thereof) included therein.
7
Morgan Stanley & Co. Incorporated
The Morgan Stanley Capital International Europe, Australasia, and Far East Free (EAFE® Free) Index is the
exclusive property of Morgan Stanley & Co. Incorporated (“Morgan Stanley”). Morgan Stanley Capital International
is a service mark of Morgan Stanley and has been licensed for use by the Trust.
The International Equity Index Fund is not sponsored, endorsed, sold or promoted by Morgan Stanley. Morgan
Stanley makes no representation or warranty, express or implied, to the owners of this fund or any member of the
public regarding the advisability of investing in funds generally or in this fund particularly or the ability of the Morgan
Stanley Capital International EAFE® Free Index to track general stock market performance. Morgan Stanley is the
licensor of certain trademarks, service marks and trade names of Morgan Stanley and of the Morgan Stanley Capital
International EAFE® Free Index which is determined, composed and calculated by Morgan Stanley without regard to
the issuer of this fund. Morgan Stanley has no obligation to take the needs of the issuer of this fund or the owners of
this fund into consideration in determining, composing or calculating the Morgan Stanley Capital International EAFE®
Free Index. Morgan Stanley is not responsible for and has not participated in the determination of the timing of, prices
at, or quantities of the fund to be issued or in the determination or calculation of the equation by which this fund is
redeemable for cash. Morgan Stanley has no obligation or liability to owners of this fund in connection with the
administration, marketing or trading of this fund.
Although Morgan Stanley shall obtain information for inclusion in or for use in the calculation of the
indexes from sources which Morgan Stanley considers reliable, neither Morgan Stanley nor any other party
guarantees the accuracy and/or the completeness of the indexes or any data included therein. Neither Morgan
Stanley nor any other party makes any warranty, express or implied, as to results to be obtained by the Trust,
the Trust’s customers and counterparties, owners of the Fund, or any other person or entity from the use of the
indexes or any data included therein in connection with the rights licensed hereunder or for any other use.
Neither Morgan Stanley nor any other party makes any express or implied warranties, and Morgan Stanley
hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose with respect to
the indexes or any data included therein. Without limiting any of the foregoing, in no event shall Morgan
Stanley or any other party have any liability for any direct, indirect, special, punitive, consequential or any
other damages (including lost profits) even if notified of the possibility of such damages.
FINANCIAL STATEMENTS
The audited statutory statements of admitted assets, liabilities, capital and surplus of State Farm Life
Insurance Company as of December 31, 2011 and 2010, and the related statutory statements of operations and
change in capital and surplus, and cash flows for the years ended December 31, 2011, 2010, and 2009 as well as
the Report of the Independent Registered Public Accounting Firm, appears in this SAI. Our financial statements
should be considered only as bearing on our ability to meet our obligations under the Policies. They should not be
considered as bearing on the investment performance of the assets held in the Variable Account.
Statements of assets and contract owners’ equity and surplus of the State Farm Life Insurance Company
Variable Annuity Separate Account at December 31, 2011, and the results of its operations for the year then ended,
and the changes in its contract owners’ equity and surplus for each of the two years in the period ended
December 31, 2011, also appear in the SAI.
The audits were conducted in accordance with standards of the Public Company Accounting Oversight Board
(United States).
8
