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AMERICAN GENERAL LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VL-R
THE ONE(R) VUL SOLUTION(SM)
FLEXIBLE PREMIUM
VARIABLE LIFE INSURANCE POLICIES
SUPPLEMENT DATED NOVEMBER 7, 2000
TO
PROSPECTUS DATED OCTOBER 23, 2000
Effective November 1, 2000 American General Life Insurance Company ("AGL")
is amending the prospectus for the sole purpose of reflecting a change in the
principal underwriter and distributor of the Policies.
On Page 38 of the prospectus, the section titled "DISTRIBUTION OF THE
POLICIES", is deleted in its entirety and replaced with the following:
DISTRIBUTION OF THE POLICIES
American General Distributors, Inc. ("AGDI") is the principal underwriter
and distributor of the Policies. Before November 1, 2000 American General
Securities Incorporated ("AGSI") served in this role. AGSI is our subsidiary
broker-dealer. For a period of time you may receive written information from us
that identifies AGSI as the distributor of the Policies.
AGDI is an affiliate of AGL. In the states of Florida and Illinois, AGDI
is known as American General Financial Distributors of Florida, Inc. and
American General Financial Distributors of Illinois, Inc., respectively. AGDI's
principal office is at 2929 Allen Parkway, Houston, Texas 77019. AGDI was
organized as a Delaware corporation on June 24, 1994 and is a registered broker-
dealer under the Securities Exchange Act of 1934, as amended and a member of the
National Association of Securities Dealers, Inc. ("NASD"). AGDI is also the
principal underwriter for AGL's Separate Accounts A and D, as well as the
underwriter for various separate accounts of other AGL affiliates. These
separate accounts are registered investment companies. AGDI, as the principal
underwriter and distributor, is not paid any fees on the Policies.
We and AGDI have entered into an exclusive sales agreement with Banc One
Securities Corporation ("BOSC"). The Policies will be sold by registered
representatives of BOSC. These registered representatives are also required to
be authorized under applicable state regulations as life insurance agents to
sell variable life insurance and are appointed by AGL as an AGL representative
for the Policies. BOSC is a member of the NASD.
We pay compensation directly to BOSC for the promotion and sales of the
Policies. The compensation payable to BOSC for the sales of the Policies may
vary with the sales agreement, but is generally not expected to exceed the
amounts described below:
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A. For a Policy issued based on simplified underwriting:
. 1.2% annually of the Policy's accumulation value (reduced by any
outstanding loan) in Policy years 1 through 10; and
. .95% annually of the Policy's accumulation value (reduced by any
outstanding loan) in Policy years 11 through 15.
B. For a Policy issued based on full underwriting:
. 2.5% of the Policy's accumulation value (reduced by any outstanding
loan) in Policy year 1;
. 1.0% annually of the Policy's accumulation value (reduced by any
outstanding loan) in Policy years 2 through 10;
. 0.50% annually of the Policy's accumulation value (reduced by any
outstanding loan) in Policy years 11 through 20; and
. 0.25% annually of the Policy's accumulation value (reduced by any
outstanding loan) after Policy year 20.
The maximum value of any alternative amounts we may pay for sales of the
Policies is expected to be equivalent over time to the amounts described above.
For example, we may pay BOSC compensation in a lump sum which will not exceed
the aggregate compensation described above.
We pay a comparable amount of compensation to BOSC with respect to any
increase in the specified amount of coverage that you request. In addition, we
may pay BOSC expense allowances, bonuses, wholesaler fees and training
allowances.
We pay the compensation directly to BOSC. We pay the compensation from our
own resources which does not result in any additional charge to you that is not
described on page 7 of the prospectus. BOSC may compensate its registered
representative or employee who acts as agent in selling you a Policy.
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On Page 46 of the prospectus, the section titled "PRINCIPAL UNDERWRITER'S
MANAGEMENT", is deleted in its entirety and replaced with the following:
PRINCIPAL UNDERWRITER'S MANAGEMENT
The directors and principal officers of the principal underwriter are:
<TABLE>
<CAPTION>
POSITION AND OFFICES
WITH UNDERWRITER,
NAME AND PRINCIPAL AMERICAN GENERAL
BUSINESS ADDRESS DISTRIBUTORS, INC.
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<S> <C>
Robert P. Condon Director and Chairman,
The Variable Annuity Life Insurance Company Chief Executive Officer and President
2929 Allen Parkway
Houston, TX 77019
Mary L. Cavanaugh Director and Secretary
The Variable Annuity Life Insurance Company
2929 Allen Parkway
Houston, TX 77019
Thomas G. Norwood Director, Chief Financial
The Variable Annuity Life Insurance Company Officer and Treasurer
2929 Allen Parkway
Houston, TX 77019
Jane E. Bates Vice President and
The Variable Annuity Life Insurance Company Chief Compliance Officer
2929 Allen Parkway
Houston, Texas 77019
V. Keith Roberts Vice President - Operations
The Variable Annuity Life Insurance Company
2929 Allen Parkway
Houston, Texas 77019
D. Lynne Walters Tax Officer
The Variable Annuity Life Insurance Company
2929 Allen Parkway
Houston, TX 77019
Cheryl G. Hemley Assistant Secretary
The Variable Annuity Life Insurance Company
2929 Allen Parkway
Houston, TX 77019
</TABLE>
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<TABLE>
<CAPTION>
POSITION AND OFFICES
WITH UNDERWRITER,
NAME AND PRINCIPAL AMERICAN GENERAL
BUSINESS ADDRESS DISTRIBUTORS, INC.
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<S> <C>
Daniel R. Cricks Assistant Tax Officer
The Variable Annuity Life Insurance Company
2929 Allen Parkway
Houston, TX 77019
Jim D. Bonsall Assistant Treasurer
The Variable Annuity Life Insurance Company
2929 Allen Parkway
Houston, TX 77019
Steven Rubinstein Assistant Treasurer
The Variable Annuity Life Insurance Company
2929 Allen Parkway
Houston, Texas 77019
Marylyn S. Zlotnick Assistant Treasurer
The Variable Annuity Life Insurance Company
2929 Allen Parkway
Houston, TX 77019
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