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DECEMBER 17, 1998 SUPPLEMENT TO
PROSPECTUSES DATED MAY 1, 1998
THE FOLLOWING INFORMATION SUPPLEMENTS THE PRIMELITE PROSPECTUSES DATED MAY 1,
1998 FOR VARIABLE ANNUITY CONTRACTS ISSUED BY THE TRAVELERS INSURANCE COMPANY
AND THE TRAVELERS LIFE AND ANNUITY COMPANY.
1. The Fund Expenses information listed in the Profile is amended to read as
follows:
<TABLE>
<CAPTION>
TOTAL
TOTAL ANNUAL EXAMPLES: TOTAL
ANNUAL FUNDING TOTAL ANNUAL EXPENSES
INSURANCE OPTION ANNUAL AT END OF:
CHARGES EXPENSES CHARGES 1 YEAR 10 YEAR
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GREENWICH STREET SERIES FUND
Appreciation Portfolio.............. 1.50% .80% 2.30% $103 $264
</TABLE>
2. The Fee Table in the prospectus is amended to read as follows:
<TABLE>
<CAPTION>
MANAGEMENT FEE OTHER EXPENSES TOTAL ANNUAL
(AFTER EXPENSES ARE (AFTER EXPENSES ARE FUNDING OPTION
REIMBURSED) REIMBURSED) EXPENSES
<S> <C> <C> <C>
GREENWICH STREET SERIES FUND
Appreciation Portfolio 0.75% 0.05% 0.80%
</TABLE>
The Example shown in the Fee Table in the prospectus is amended to read as
follows:
<TABLE>
<CAPTION>
IF CONTRACT IS NOT
IF CONTRACT IS SURRENDERED AT SURRENDERED OR IS ANNUITIZED AT
THE END OF PERIOD SHOWN: THE END OF PERIOD SHOWN:
------------------------ ------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GREENWICH STREET SERIES FUND
Appreciation Portfolio 103 132 163 264 23 103 163 264
</TABLE>
3. The last paragraph of the "Withdrawal Charge" section of the prospectus is
amended by substituting the last sentence with the following:
(4) if the annuitant is confined to an Eligible Nursing Home as
described in Appendix B.
4. The paragraph entitled "Joint Owner" in the "Types of Ownership" section of
the prospectus is amended by substituting the last sentence with the
following:
If the owner is not also the annuitant, the entire interest of the
deceased joint owner will pass to the surviving joint owner,
superseding the rights of any contract beneficiaries; if the owner
is also the annuitant, a death benefit will be paid to the contract
beneficiary and not to the surviving joint owner.
5. The "Systematic Withdrawals" section of the prospectus is amended by
substituting the first sentence of the first paragraph with the following:
Beginning in the first contract year, and before the maturity date,
you may choose to withdraw a specified dollar amount (at least $100)
on a monthly, quarterly, semiannual or annual basis.
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6. The "Maturity Date" section of the prospectus is amended by substituting the
second paragraph with the following:
Unless you elect otherwise, the maturity date will be the later of
the annuitant's 90th birthday or ten years after the effective date
of the contract. (For contracts issued in Florida and New York, the
maturity date elected may not be later than the annuitant's 90th
birthday.)
7. The "Right to Return" section of the prospectus is deleted and replaced with
the following:
If you cancel the Contract within twenty days after you receive it,
you will receive a full refund of the Contract Value (including
charges). Where state law requires a longer right to return period,
or the return of purchase payments, the Company will comply. You
bear the investment risk during the right to return period;
therefore, the Contract Value returned may be greater or less than
your purchase payment. If the Contract is purchased as an Individual
Retirement Annuity, and is returned within the first seven days
after delivery, your full purchase payment will be refunded; during
the remainder of the right to return period, the Contract Value
(including charges) will be refunded. The Contract Value will be
determined at the close of business on the day we receive a written
request for a refund.
8. The following language is added to the "Other Information" section of the
prospectus:
MERGER
Effective October 8, 1998, the companies' ultimate parent, Travelers Group, Inc.
merged with Citicorp to become Citigroup Inc., a bank holding company. Citigroup
Inc.'s businesses produce a broad range of financial services -- asset
management, banking and consumer finance, credit and charge cards, insurance,
investments, investment banking and trading -and use diverse channels to make
them available to consumer and corporate customers around the world. Among these
businesses are Citibank, Commercial Credit, Primerica Financial Services,
Salomon Smith Barney, SSBC Asset Management, Travelers Life and Annuity, and
Travelers Property Casualty.
9. The last paragraph of the "Distribution of Variable Annuity Contracts"
section of the prospectus is amended by substituting the last sentence with
the following:
As of October 8, 1998, the principal underwriter for the Contracts
is CFBDS, Inc., an unaffiliated company. CFBDS, Inc. is located at
21 Milk Street, Boston, MA 02109.
10. The "Year 2000 Compliance" section of the prospectus is deleted and replaced
with the following:
The Company is highly dependent on computer systems and systems
applications for conducting its ongoing business functions. In 1996,
the Company began the process of identifying, assessing and
implementing changes to computer programs to address the year 2000
issue and developed a comprehensive plan to address the issue. The
issue involves the ability of computer systems that have time
sensitive programs to recognize properly the year 2000. The
inability to do so could result in major failures or miscalculations
that would disrupt the Company's ability to meet its customer and
other obligations on a timely basis.
The Company is in the process of implementing necessary changes, in
accordance with its Year 2000 plan, to bring all its critical
business systems into year 2000 compliance by early 1999. As part
of, and following, achievement of year 2000 compliance, systems have
been, and will
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continue to be, subjected to a certification process which validates
the renovated code before it is certified for use in production. In
addition, the Company is developing contingency plans to be used in
the event of an unexpected failure, which may result from the
complex interrelationships among our clients, business partners, and
other parties upon whom it relies. These plans are expected to be in
place by December 31, 1998.
The total pre-tax cost associated with the required modifications
and conversions is expected to be insignificant and is being
expensed as incurred in the period 1996 through 1999, and is not
expected to have a material effect on its financial position,
results of operations or liquidity. The Company also has third party
customers, financial institutions, vendors and others with which it
conducts business and has communicated with them on their plans to
address and resolve year 2000 issues on a timely basis. While it is
likely that these efforts by third party vendors will be successful,
it is possible that a series of failures by third parties could have
a material adverse effect on the Company's results of operations in
future years.
11. Appendix B of the prospectus is amended by adding the following statement
before the first paragraph:
(This waiver is not available if the Annuitant is age 71 or older on the
date the Contract is issued.)
