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SUPPLEMENT DATED AUGUST 1, 1997 TO
PROSPECTUS DATED MAY 1, 1997 FOR
INDIVIDUAL MODIFIED SINGLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACTS
ISSUED BY
NATIONWIDE LIFE INSURANCE COMPANY
THROUGH ITS
NATIONWIDE VARIABLE ACCOUNT - II
THIS SUPPLEMENT UPDATES CERTAIN INFORMATION CONTAINED IN YOUR PROSPECTUS. PLEASE
READ IT AND KEEP IT WITH YOUR PROSPECTUS FOR FUTURE INFORMATION.
I. THE "LOAN PRIVILEGE" SECTION OF THE PROSPECTUS IS AMENDED BY REPLACING THE
SIXTH PARAGRAPH OF SUCH SECTION WITH THE FOLLOWING:
Loans must be repaid in substantially level payments, not less frequently than
quarterly, within five years. Loans used to purchase the principal residence of
the Contract Owner must be repaid within 15 years. During the loan term, the
outstanding balance of the loan will continue to earn interest at an annual rate
as specified in the loan agreement. Loan repayments will consist of principal
and interest in amounts set forth in the loan agreement. Loan repayments will be
processed in the same manner as a Purchase Payment, except that no loan
repayments less than $1,000 are permitted into the Guaranteed Term Options. Loan
repayments will be allocated among the Fixed and Variable Accounts and the
Guaranteed Term Options in accordance with the Contract, unless the Contract
Owner and the Company agree to amend the Contract at a later date on a case by
case basis. If the proportional share of the loan repayment to the Guaranteed
Term Option is less than $1,000, that portion of the loan repayment will be
allocated to the Nationwide Separate Account Trust Money Market Fund, unless the
Contract Owner directs such loan repayments to be directed to the Fixed Account
or another investment option available in the Variable Account.
II. ITEM NO. 5 OF THE SUPPLEMENT FILED ON JULY 14, 1997 IS AMENDED BY REPLACING
THE PARAGRAPH FOR MORGAN STANLEY UNIVERSAL FUNDS, INC. WITH THE FOLLOWING:
Morgan Stanley Universal Funds, Inc. (the "Fund") is a mutual fund designed to
provide investment vehicles for variable annuity contracts and variable life
insurance policies and for certain tax-qualified investors. The Fund is an
open-end management investment company, or mutual fund. The Fund is managed by
Morgan Stanley Asset Management, Inc.
