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SUPPLEMENT DATED JULY 1, 1999 TO
PROSPECTUS DATED MAY 1, 1999 FOR
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 REFERENCE.
1. INFORMATION FOR THE FOLLOWING UNDERLYING MUTUAL FUNDS CONTAINED IN THE
"UNDERLYING MUTUAL FUND ANNUAL EXPENSES" TABLE LOCATED ON PAGES 7 THROUGH 8
OF YOUR PROSPECTUS, IS AMENDED AS FOLLOWS:
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
(AS A PERCENTAGE OF UNDERLYING MUTUAL FUND AVERAGE NET ASSETS, AFTER EXPENSE REIMBURSEMENT)
- --------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Morgan Stanley Dean Witter Universal Funds, Inc. - 0.27% 1.03% 0.00% 1.30%
Emerging Markets Debt Portfolio
- --------------------------------------------------------------------------------------------------------------------
NSAT Capital Appreciation Fund 0.58% 0.22% 0.00% 0.80%
- --------------------------------------------------------------------------------------------------------------------
NSAT Government Bond Fund 0.44% 0.22% 0.00% 0.66%
- --------------------------------------------------------------------------------------------------------------------
NSAT Money Market Fund 0.34% 0.21% 0.00% 0.55%
- --------------------------------------------------------------------------------------------------------------------
NSAT Total Return Fund 0.57% 0.21% 0.00% 0.78%
- --------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap Value Fund 0.47% 0.58% 0.00% 1.05%
- --------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Company Fund 1.00% 0.25% 0.00% 1.25%
- --------------------------------------------------------------------------------------------------------------------
Van Eck Worldwide Insurance Trust - Worldwide Emerging 0.69% 0.61% 0.00% 1.30%
Markets Fund
- --------------------------------------------------------------------------------------------------------------------
Van Kampen Life Investment Trust - Morgan Stanley Real 1.00% 0.08% 0.00% 1.08%
Estate Securities Portfolio
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
The expenses shown above are deducted by the underlying mutual fund before it
provides Nationwide with the daily net asset value. Nationwide then deducts
applicable variable account charges from the net asset value to calculate the
unit value of the corresponding sub-account. The management fees and other
expenses are more fully described in the prospectus for each underlying mutual
fund. Information relating to the underlying mutual funds was provided by the
underlying mutual funds and not independently verified by Nationwide.
Some underlying mutual funds are subject to fee waivers and expense
reimbursements. The following chart shows what the expenses would have been for
such funds without fee waivers and expense reimbursements.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Morgan Stanley Dean Witter Universal Funds, Inc. - 0.80% 1.25% 0.00% 2.05%
Emerging Markets Debt Portfolio
- --------------------------------------------------------------------------------------------------------------------
NSAT Capital Appreciation Fund 0.60% 0.22% 0.00% 0.82%
- --------------------------------------------------------------------------------------------------------------------
NSAT Government Bond Fund 0.50% 0.22% 0.00% 0.72%
- --------------------------------------------------------------------------------------------------------------------
NSAT Money Market Fund 0.40% 0.21% 0.00% 0.61%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
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APO-1828-10
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<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NSAT Total Return Fund 0.59% 0.21% 0.00% 0.80%
- -----------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap Value Fund 0.90% 0.58% 0.00% 1.48%
- -----------------------------------------------------------------------------------------------------------------------
Van Eck Worldwide Insurance Trust - Worldwide Emerging 1.00% 0.61% 0.00% 1.61%
Markets Fund
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
2. INFORMATION FOR THE FOLLOWING UNDERLYING MUTUAL FUNDS CONTAINED IN THE
"EXAMPLE" CHART LOCATED ON PAGES 9 THROUGH 11 OF YOUR PROSPECTUS, IS
AMENDED AS FOLLOWS:
The following chart shows the amount of expenses (in dollars) that would be
incurred under this contract assuming a $1,000 investment, 5% annual return, and
no change in expenses. These dollar figures are illustrative only and should not
be considered a representation of past or future expenses. Actual expenses may
be greater or less than those shown below.
The example reflects expenses of both the variable account and the underlying
mutual funds. The example reflects the standard 7 year CDSC schedule and the
maximum amount of variable account charges that could be assessed to a contract
(1.30%). The example also reflects the maximum $30 Contract Maintenance Charge
expressed as a percentage of the average contract account size for existing
contracts. Since the average contract account size issued under this prospectus
is greater than $1,000, the expense effect of the Contract Maintenance Charge is
reduced accordingly. Deductions for premium taxes are not reflected but may
apply.
The summary of contract expenses and example are to help contract owners
understand the expenses associated with the contract.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
- --------------------------------------------------------------------------------------------------------------------------
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Morgan Stanley Dean Witter 98 130 172 307 28 85 145 307 * 85 145 307
Universal Funds, Inc. -
Emerging Markets Debt
Portfolio
- --------------------------------------------------------------------------------------------------------------------------
NSAT Capital Appreciation 92 114 146 255 22 69 119 255 * 69 119 255
Fund
- --------------------------------------------------------------------------------------------------------------------------
NSAT Government Bond Fund 91 110 138 240 21 65 111 240 * 65 111 240
- --------------------------------------------------------------------------------------------------------------------------
NSAT Money Market Fund 90 106 132 228 20 61 105 228 * 61 105 228
- --------------------------------------------------------------------------------------------------------------------------
NSAT Total Return Fund 92 114 145 253 22 69 118 253 * 69 118 253
- --------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap 95 122 159 281 25 77 132 281 * 77 132 281
Value Fund
- --------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small 97 128 169 302 27 83 142 302 * 83 142 302
Company Fund
- --------------------------------------------------------------------------------------------------------------------------
Van Eck Worldwide Insurance 98 130 172 307 28 85 145 307 * 85 145 307
Trust - Worldwide Emerging
Markets Fund
- --------------------------------------------------------------------------------------------------------------------------
Van Kampen Life Investment 95 123 160 284 25 78 133 284 * 78 133 284
Trust - Morgan Stanley Real
Estate Securities Portfolio
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
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3. THE FIRST PARAGRAPH OF THE "DOLLAR COST AVERAGING" PROVISION ON PAGES 39
THROUGH 40 OF YOUR PROSPECTUS IS AMENDED TO DELETE THE FOLLOWING SENTENCE:
"Contract owners may participate in this program if their contract value is
$15,000 or more."
4. THE LAST SENTENCE OF THE FIRST PARAGRAPH OF THE "DEATH OF CONTRACT
OWNER--NON-QUALIFIED CONTRACTS" PROVISION ON PAGE 42 OF YOUR PROSPECTUS IS
AMENDED AS FOLLOWS:
"If no contingent owner is named, the annuitant becomes the contract
owner."
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APO-1828-10
