SUPPLEMENT DATED AUGUST 12, 1999
TO PROSPECTUS DATED MAY 1, 1999 AND
SUPPLEMENT DATED MAY 1, 1999
FOR GROUP VARIABLE UNIVERSAL LIFE INSURANCE
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
THE PRUDENTIAL VARIABLE CONTRACT ACCOUNT GI-2
SPECIAL FEATURES OF THE GROUP CONTRACT FOR KPMG
The following information supplements the information about Investment Options
and the Funds on pages 4 through 7 of the Supplement dated May 1, 1999.
The Global Fixed Income Portfolio of the Warburg Pincus Trust II is no longer
available to you as an investment option.
You have an additional Fund available to you as an investment option.
Information about this new Fund, including its investment objective, its
investment management fees and other expenses, and its investment adviser,
appears below.
FUND NAME AND OBJECTIVE
MFS(R) VARIABLE INSURANCE TRUST(SM)
MFS GLOBAL GOVERNMENT SERIES: SEEKS INCOME AND CAPITAL APPRECIATION.
FUND FEES AND EXPENSES
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
Investment Total Fund Annual Expenses
Fund Management Fee Other Expenses (After Expense Reimbursements)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MFS(R) Variable Insurance Trust(SM)
MFS Global Government Series (1)(2) 0.75% 0.26% 1.01%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
(1) The MFS Global Government Series of the MFS(R) Variable Insurance Trust(SM)
has an expense offset arrangement which reduces the series' custodian fee
based upon the amount of cash maintained by the series with its custodian
and dividend disbursing agent. The MFS Global Government Series may enter
into other such arrangements and directed brokerage arrangements, which
would also have the effect of reducing the series' expenses. The expenses
shown do not take into account these expense reductions, and are therefore
higher than the actual expenses of the series.
(2) MFS has agreed to bear expenses for the MFS Global Government Series,
subject to reimbursement by the series, such that the series' "Other
Expenses" shall not exceed 0.25% of the average daily net assets of the
series during the current fiscal year. The payments made by MFS on behalf
of the series under this arrangement are subject to reimbursement by the
series to MFS, which will be accomplished by the payment of an expense
reimbursement fee by the series to MFS computed and paid monthly at a
percentage of the series' average daily net assets for its then current
fiscal year, with a limitation that immediately after such payment the
series' "Other Expenses" will not exceed 0.25%. The obligation of MFS to
bear the MFS Global Government Series' "Other Expenses" pursuant to this
arrangement, and the series= obligation to pay the reimbursement fee to
MFS, terminates on the earlier of the date on which payments made by the
series equal the prior payment of such reimbursable expenses by MFS or
December 31, 2004. Without such waivers and fee reductions, the Total Fund
Annual Expenses for this series would have been 1.11%.
FUND ADVISER
The investment adviser for the MFS(R) Variable Insurance Trust(SM) is
Massachusetts Financial Services Company ("MFS"). MFS' principal business
address is 500 Boylston Street, Boston, Massachusetts 02116. The principal
underwriter of the series is MFS Fund Distributors, Inc., which is also located
at 500 Boylston Street, Boston, Massachusetts 02116.
<PAGE>
Shea & Gardner
1800 Massachusetts Avenue NW
Washington, DC 20036
(202) 828-2000
Fax: (202) 828-2195
August 12, 1999
VIA ELECTRONIC FILING
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Re: The Prudential Variable Contract Account GI-2
File No. 333-01031
Ladies and Gentleman:
Filed herewith on behalf of the above-named registrant is a prospectus
supplement filed pursuant to Rule 497(d) under the Securities Act of 1933.
Respectfully submitted,
Michael K. Isenman
Enclosure
