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AUGUST 15, 2000 SUPPLEMENT TO THE MAY 1, 2000
PORTFOLIO ARCHITECT LIFE PROSPECTUS OFFERED BY THE TRAVELERS LIFE AND ANNUITY
COMPANY.
The following information replaces page 26 of the Prospectus.
no longer have the economies of scale resulting from a larger combined fund.
Please consult the prospectuses of the Investment Options for additional
information.
DISTRIBUTION
The Company intends to sell the Contracts in all jurisdictions where it is
licensed to do business and where the Contract is approved. Any sales
representatives or employee associated with a broker-dealer who sells the
Contracts will be qualified to sell variable life insurance under applicable
federal and state laws. Each broker-dealer is registered with the SEC under the
Securities Exchange Act of 1934, and all are members of the NASD. The Contract
is offered through both affiliated and non-affiliated broker-dealers.
The principal underwriter of the Contracts is CFBDS, Inc., 21 Milk Street,
Boston, MA. CFBDS is not affiliated with the Company or the Separate Account.
However, it is currently anticipated that Travelers Distribution LLC, an
affiliated broker-dealer, may become the principal underwriter for the Contracts
sometime in 2000.
The maximum commission payable by the Company for distribution to the
broker-dealer will not exceed 7.5% of the premium payment. In addition, Tower
Square Securities, Inc., an affiliate of the Company, receives additional
incentive payments from the Company relating to its sale of the Contracts. From
time to time, the Company may pay or permit other promotional incentives in
cash, credit or other compensation.
LEGAL PROCEEDINGS AND OPINION
There are no pending material legal proceedings affecting the Policy Separate
Account, or any of the Investment Options. Legal matters in connection with
federal laws and regulations affecting the issue and sale of the Policy
described in this Prospectus and the organization of the Company, its authority
to issue the Policy under Connecticut law and the validity of the forms of the
Policy under Connecticut law have been passed on by the General Counsel of the
Company.
EXPERTS
The financial statements of Separate Account Two as of December 31, 1999 and for
the year ended December 31, 1999, have been included herein and in the
registration statement in reliance upon the report of KPMG LLP, independent
certified public accountants and upon the authority of said firm as experts in
accounting and auditing.
The financial statements of The Travelers Life and Annuity Company as of
December 31, 1999 and 1998, and for each of the years in the three-year period
ended December 31, 1999, have been included herein and in the registration
statement in reliance upon the report of KPMG LLP, independent certified public
accountants, appearing elsewhere herein, and upon the authority of said firm as
experts in accounting and auditing.
FEDERAL TAX CONSIDERATIONS
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GENERAL
The following is a general discussion of the federal income tax considerations
relating to the Policies. This discussion is based upon the Company's
understanding of the federal income tax laws as they are currently interpreted
by the Internal Revenue Service ("IRS"). These laws are complex, and tax results
may vary among individuals. A person contemplating the purchase of or the
exercise of elections under a Policy should seek competent tax advice.
IT SHOULD BE UNDERSTOOD THAT THIS IS NOT AN EXHAUSTIVE DISCUSSION OF ALL TAX
QUESTIONS THAT MIGHT ARISE UNDER THE POLICIES. NO ATTEMPT HAS BEEN MADE TO
ADDRESS ANY FEDERAL ESTATE TAX OR STATE AND LOCAL TAX CONSIDERATIONS WHICH MAY
ARISE IN CONNECTION WITH A POLICY. FOR COMPLETE INFORMATION, A QUALIFIED TAX
ADVISOR SHOULD BE CONSULTED.
THE COMPANY DOES NOT GUARANTEE THE TAX STATUS OF ANY POLICY AND THE FOLLOWING
TAX DISCUSSION IS BASED ON THE COMPANY'S UNDERSTANDING OF FEDERAL INCOME TAX
LAWS AS THEY ARE CURRENTLY INTERPRETED. THE COMPANY CANNOT GUARANTEE THAT THOSE
LAWS OR INTERPRETATIONS WILL REMAIN UNCHANGED.
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