<PAGE>
Supplement Dated October 2, 2000 to Prospectus Dated May 1, 2000
for Pacific Select Variable Annuity II, a variable annuity contract
issued by Pacific Life Insurance Company
This supplement changes the Prospectus to reflect the
following, and restates information contained in a
supplement dated August 28, 2000:
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Two new Variable The two new Variable Investment Options are added to
Investment Options the list on page 1 of the Prospectus.
are available
. Strategic Value
. Focused 30
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The Bond and Income The Bond and Income Variable Account terminated on
Investment Option September 22, 2000. There will be no charge on
is no longer transfers for at least 60 days from that date.
available Thereafter, Pacific Life reserves the right to impose
transfer fees for transfers as stated in the
Prospectus, but there is no current plan to do so. Any
transfer made during this time will not count toward
any limitation we may impose on the number of transfers
you may make annually.
All references to the Bond and Income Investment
Option, Portfolio, Subaccount or Variable Account in
this Prospectus are removed.
Unless you instruct us otherwise, to the extent any
outstanding instruction you have on file with us
designates the Bond and Income Subaccount, the
instruction will be deemed an instruction for the
Managed Bond Subaccount. Instructions include, but are
not limited to, instructions for Purchase Payment
allocations, any transfer or exchange instructions,
including instructions under the Portfolio Rebalancing,
Dollar Cost Averaging, and Sweep Programs, and Partial
Withdrawal instructions.
---------------------------------------------------------
The Strategic Value The Strategic Value and Focused 30 Variable Accounts
and Focused 30 invest in the Strategic Value and Focused 30 Portfolios
Variable Accounts of the Fund. References to the 20 Variable Investment
are added as Options throughout the Prospectus are changed to refer
Variable Investment to 22 Variable Investment Options or Subaccounts.
Options
<PAGE>
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AN OVERVIEW OF The following on page 7 of the Prospectus is replaced:
PACIFIC SELECT
VARIABLE ANNUITY Other Expenses
II-Fees and The table also shows the Fund expenses for each
Expenses Paid by Portfolio based on expenses in 1999, adjusted to
the Pacific Select reflect recently reduced custody fees. To help limit
Fund: Other Fund expenses, effective July 1, 2000 we have
Expenses is contractually agreed to waive all or part of our
replaced investment advisory fees or otherwise reimburse each
Portfolio for operating expenses (including
organizational expenses, but not including advisory
fees, additional costs associated with foreign
investing and extraordinary expenses) that exceed an
annual rate of 0.10% of its average daily net assets.
Such waiver or reimbursement is subject to repayment to
us to the extent such expenses fall below the 0.10%
expense cap. For each Portfolio, our right to repayment
is limited to amounts waived and/or reimbursed that
exceed the new 0.10% expense cap and, except for the
Strategic Value and Focused 30 Portfolios, that do not
exceed the previously established 0.25% expense cap.
Any amounts repaid to us will have the effect of
increasing expenses of the Portfolio, but not above the
0.10% expense cap. There is no guarantee that we will
continue to cap expenses after December 31, 2001. In
1999, Pacific Life reimbursed the Small-Cap Index
Portfolio $96,949.
<TABLE>
-----------------------------------------------------------------------
CAPTION>
Less
Advisory Other Total adviser's Total net
Portfolio fee expenses expenses+ reimbursement expenses
-----------------------------------------------------------------------
As an annual % of average daily net assets
<S> <C> <C> <C> <C> <C>
Aggressive
Equity 0.80 0.04 0.84 -- 0.84
Emerging
Markets/1/ 1.10 0.19 1.29 -- 1.29
Diversified
Research/2/ 0.90 0.05 0.95 -- 0.95
Small-Cap Equity 0.65 0.04 0.69 -- 0.69
International
Large-Cap/2/ 1.05 0.10 1.15 -- 1.15
Equity 0.65 0.03 0.68 -- 0.68
I-Net
Tollkeeper/2/ 1.50 0.14 1.64 (0.04) 1.60
Multi-Strategy 0.65 0.04 0.69 -- 0.69
Equity Income 0.65 0.04 0.69 -- 0.69
Strategic
Value/2/ 0.95 0.08 1.03 -- 1.03
Growth LT 0.75 0.03 0.78 -- 0.78
Focused 30/2/ 0.95 0.08 1.03 -- 1.03
Mid-Cap Value 0.85 0.07 0.92 -- 0.92
Equity Index/3/ 0.25 0.04 0.29 -- 0.29
Small-Cap Index 0.50 0.30 0.80 (0.20) 0.60
REIT 1.10 0.15 1.25 (0.05) 1.20
International
Value 0.85 0.09 0.94 -- 0.94
Government
Securities 0.60 0.05 0.65 -- 0.65
Managed Bond/1/ 0.60 0.05 0.65 -- 0.65
Money Market/1/ 0.35 0.04 0.39 -- 0.39
High Yield
Bond/1/ 0.60 0.05 0.65 -- 0.65
Large-Cap Value 0.85 0.08 0.93 -- 0.93
-----------------------------------------------------------------------
</TABLE>
/1/ Total adjusted net expenses for these Portfolios in
1999, after deduction of an offset for custodian
credits were: 1.28% for Emerging Markets Portfolio,
0.64% for Managed Bond Portfolio, 0.38% for Money
Market Portfolio, and 0.64% for High Yield Bond
Portfolio.
/2/ Expenses are estimated. There were no actual
advisory fees or expenses for these Portfolios in
1999 because the Portfolios started after December
31, 1999.
/3/ Total adjusted net expenses for the Equity Index
Portfolio in 1999, after deduction of an offset for
custodian credits, were 0.28%. The advisory fee for
the Portfolio has also been adjusted to reflect the
advisory fee increase effective January 1, 2000.
The actual advisory fee and total adjusted net
expenses for this Portfolio in 1999, after
deduction of an offset for custodian credits, were
0.16% and 0.19%, respectively.
+ The Fund has adopted a brokerage enhancement 12b-1
plan, under which brokerage transactions may be
placed with broker-dealers in return for credits,
cash, or other compensation that may be used to
help promote distribution of Fund shares. There are
no fees or charges to any Portfolio under this
plan, although the Fund's distributor may defray
expenses of up to approximately $300,000 for the
year 2000, which it might otherwise incur for
distribution. If such defrayed amount were
considered a Fund expense, it would represent
approximately .0023% or less of any Portfolio's
average daily net assets.
2
<PAGE>
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AN OVERVIEW OF The following under Examples on page 8 of the
PACIFIC SELECT Prospectus is replaced:
VARIABLE ANNUITY
II-Examples is The following table shows the expenses you would pay on
replaced each $1,000 you invested if, at the end of each period,
you: annuitized your Contract; surrendered your
Contract and withdrew the Contract Value, or did not
annuitize or surrender, but left the money in your
Contract.
These examples assume the following:
. the Contract Value starts at $35,000
. the Investment Options have an annual return of 5%
. the Annual Fee is deducted for Contract Values less
than $50,000, after deducting any outstanding loan
and interest
. no Annual Fee is deducted for annuitized amounts or
Contract Values of $50,000 or more.
These examples do not show past or future expenses.
Your actual expenses in any year may be more or less
than those shown here.
<TABLE>
---------------------------------------------------------------------------------------
<CAPTION>
Expenses if you did
not annuitize or
Expenses if you Expenses if you surrender, but left
annuitized surrendered the money in your
your Contract ($) your Contract ($) Contract ($)
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Variable Account 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr
---------------------------------------------------------------------------------------
Aggressive Equity 87 72 124 265 87 117 133 265 24 72 124 265
---------------------------------------------------------------------------------------
Emerging Markets 91 86 146 308 91 131 155 308 28 86 146 308
---------------------------------------------------------------------------------------
Diversified Research 88 76 129 276 88 121 138 276 25 76 129 276
---------------------------------------------------------------------------------------
Small-Cap Equity 84 65 112 240 84 110 121 240 21 65 112 240
---------------------------------------------------------------------------------------
International Large-Cap 90 82 139 295 90 127 148 295 27 82 139 295
---------------------------------------------------------------------------------------
Equity 85 68 116 248 85 113 125 248 22 68 116 248
---------------------------------------------------------------------------------------
I-Net Tollkeeper 94 95 162 338 94 140 171 338 31 95 162 338
---------------------------------------------------------------------------------------
Multi-Strategy 85 68 116 249 85 113 125 249 22 68 116 249
---------------------------------------------------------------------------------------
Equity Income 85 68 116 249 85 113 125 249 22 68 116 249
---------------------------------------------------------------------------------------
Strategic Value 88 78 133 284 88 123 142 284 25 78 133 284
---------------------------------------------------------------------------------------
Growth LT 86 71 121 259 86 116 130 259 23 71 121 259
---------------------------------------------------------------------------------------
Focused 30 88 78 133 284 88 123 142 284 25 78 133 284
---------------------------------------------------------------------------------------
Mid-Cap Value 87 75 128 273 87 120 137 273 24 75 128 273
---------------------------------------------------------------------------------------
Equity Index 81 55 95 206 81 100 104 206 18 55 95 206
---------------------------------------------------------------------------------------
Small-Cap Index 85 68 116 249 85 113 125 249 22 68 116 249
---------------------------------------------------------------------------------------
REIT 90 83 142 300 90 128 151 300 27 83 142 300
---------------------------------------------------------------------------------------
International Value 88 75 129 275 88 120 138 275 25 75 129 275
---------------------------------------------------------------------------------------
Government Securities 85 67 114 245 85 112 123 245 22 67 114 245
---------------------------------------------------------------------------------------
Managed Bond 85 66 114 244 85 111 123 244 22 66 114 244
---------------------------------------------------------------------------------------
Money Market 82 59 100 217 82 104 109 217 19 59 100 217
---------------------------------------------------------------------------------------
High Yield Bond 85 66 114 244 85 111 123 244 22 66 114 244
---------------------------------------------------------------------------------------
Large-Cap Value 87 75 128 274 87 120 137 274 24 75 128 274
---------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
--------------------------------------------------------
YOUR INVESTMENT The chart on page 9 of the Prospectus YOUR INVESTMENT
OPTIONS: Your OPTIONS: Your Variable Investment Options is amended to
Variable add the following:
Investment Options
is amended
<TABLE>
<CAPTION>
Primary Investments
Portfolio Objective (under normal circumstances) Portfolio Manager
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Strategic Long-term growth of capital. Common stocks with the potential for long- Janus Capital
Value term growth of capital. Corporation
-----------------------------------------------------------------------------------------------------------
Focused 30 Long-term growth of capital. Common stocks selected for their growth Janus Capital
potential. Corporation
-----------------------------------------------------------------------------------------------------------
</TABLE>
4
