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SUPPLEMENT DATED APRIL 1, 1997 TO
THE STATEMENT OF ADDITIONAL INFORMATION DATED APRIL 1, 1997 FOR
PACIFIC INNOVATIONS VARIABLE ANNUITY
The following section is added to page 13 of the Statement of Additional
Information.
Waivers and Reduced Charges
We will credit additional amounts to Contracts owned by Eligible
Persons if such Contracts are purchased directly through Pacific
Mutual Distributors, Inc. Under such circumstances, Eligible Persons
will not be afforded the benefit of services of any other
broker/dealer nor will commissions be payable to any broker/dealer in
connection with such purchases. Eligible Persons must contact us
directly with servicing questions, Contract changes and other matters
relating to their Contracts. The amount credited to Contracts owned
by Eligible Persons will equal the reduction in expenses we enjoy by
not incurring brokerage commissions in selling such Contracts, with
such crediting being made in accordance with our administrative procedures.
