AMENDMENT TO SERVICE AGREEMENT

The  Service  Agreement  dated  November  15, 1999 by and among  Preferred  Life
Insurance  Company of New York and Van Kampen Asset  Management,  Inc. is hereby
amended by deleting the existing  Schedule Two and inserting in lieu thereof the
following:

                                  SCHEDULE TWO
                                LIST OF CONTRACTS
               (1st revised edition - effective February 1, 2000)

1.       Preferred Life USAllianz Advantage


IN WITNESS WHEREOF,  the parties have caused their duly authorized  officer's to
execute this amendment to the participation agreement as of February 1, 2000.


VAN KAMPEN ASSET MANAGEMENT INC.                     PREFERRED LIFE INSURANCE
                                                     COMPANY OF NEW YORK

By:/s/Stephen L. Boyd                           By:/s/ Michael T. Westermeyer
Name: STEPHEN L. BOYD                           Name:  MICHAEL T. WESTERMEYER
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Title: EXECUTIVE VICE PRESIDENT                 Title:   SECRETARY
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