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AMERICAN GENERAL LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VL-R
CORPORATE AMERICA - VARIABLE
FLEXIBLE PREMIUM
VARIABLE LIFE INSURANCE POLICY
SUPPLEMENT DATED NOVEMBER 7, 2000
TO
PROSPECTUS DATED OCTOBER 2, 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 Policy.
On Page 41 of the prospectus, the section titled "DISTRIBUTION OF THE
POLICY", is deleted in its entirety and replaced with the following:
DISTRIBUTION OF THE POLICY
American General Distributors, Inc. ("AGDI") is the principal underwriter
and distributor of the Policy. 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 Policy.
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 Policy.
We and AGDI have sales agreements with various broker-dealers under which
the Policy will be sold by registered representatives of the broker-dealers.
These registered representatives are also required to be authorized under
applicable state regulations as life insurance agents to sell variable life
insurance. The broker-dealers are ordinarily required to be registered with the
SEC and must be members of the NASD.
We pay compensation directly to broker-dealers for promotion and sales of
the Policy. The compensation may vary with the sales agreement, but is generally
not expected to exceed, for the Policy:
. in the first Policy year, 20% of the premiums paid up to the target
amount and 4% of the premiums in excess of the target amount;
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. in Policy years 2-7, 8% of the premiums paid up to the target amount and
3 1/2% of the premiums in excess of the target amount;
. in Policy years 8-15, 3% of the premiums paid up to the target amount,
2% of the premiums in excess of the target amount and 0.15% of the
Policy's accumulation value (reduced by any outstanding loans); and
. in Policy years 16 and thereafter, 2% of the premiums paid up to the
target amount, 2% of the premiums in excess of the target amount; and
0.10% of the Policy's accumulation value (reduced by any outstanding
loans).
The maximum value of any alternative amounts we may pay for sales of the
Policy is expected to be equivalent over time to the amounts described above.
For example, we may pay a broker-dealer compensation in a lump sum which will
not exceed the aggregate compensation described above.
We pay a comparable amount of compensation to the broker-dealers with
respect to any increase in the specified amount of coverage that you request.
In addition, we may pay the broker-dealers expense allowances, bonuses,
wholesaler fees and training allowances.
We pay the compensation directly to any selling broker-dealer firm. We pay
the compensation from our own resources which does not result in any additional
charge to you that is not described on page 8 of the prospectus. Each broker-
dealer firm, in turn, may compensate its registered representative who acts as
agent in selling you a Policy.
On Page 48 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:
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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
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POSITION AND OFFICES
WITH UNDERWRITER,
NAME AND PRINCIPAL AMERICAN GENERAL
BUSINESS ADDRESS DISTRIBUTORS, INC.
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<S> <C>
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
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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