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SUPPLEMENT DATED FEBRUARY 12, 1996 TO CURRENT PROSPECTUS FOR
NASL VARIABLE ACCOUNT
Effective March 4, 1996, two new investment portfolios will be added to NASL
Series Trust (the "Trust"), the underlying investment medium for the variable
portion of your contract. The new portfolios are the Small/Mid Cap and the
International Small Cap Trusts (the "Portfolios"). Fred Alger Management, Inc.
("Alger") will provide investment subadvisory services to the Small/Mid Cap
Trust and Founders Asset Management, Inc. ("Founders") will provide investment
subadvisory services to the International Small Cap Trust. Below is a brief
description of each Portfolio's investment objective and certain policies
relating to that objective and a schedule of fees applicable to the Portfolio.
INVESTMENT OBJECTIVE AND POLICIES
Small/Mid Cap Trust
The investment objective of the Small/Mid Cap Trust is to seek long
term capital appreciation. Alger will pursue this objective by investing at
least 65% of the portfolio's total assets (except during temporary defensive
periods) in small/mid cap equity securities. As used herein small/mid cap equity
securities are equity securities of companies that, at the time of purchase,
have total market capitalization between $500 million and $5 billion.
International Small Cap Trust
The investment objective of the International Small Cap Trust is to
seek capital appreciation. Founders will pursue this objective by investing
primarily in securities issued by foreign companies which have total market
capitalizations or annual revenues of $1 billion or less. These securities may
represent companies in both established and emerging economies throughout the
world.
For more information on the Portfolios, Alger and Founders, see the NASL Series
Trust prospectus dated February 12, 1996.
FEE TABLE AND EXAMPLE
The Contract Owner or owner (collectively, "Contract Owner") Transaction
Expenses, Annual Contract Fee and Separate Account Annual Expenses are as set
forth in the current Fee Table with respect to existing portfolios. The Trust
Annual Expenses and Example are amended to include the Portfolios as
follows:
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TRUST ANNUAL EXPENSES
(as a percentage of Trust average net assets)
<TABLE>
<CAPTION>
Management Other Total Trust
Trust Portfolio Expenses Expenses Annual Expenses
- --------------- -------- -------- ---------------
<S> <C> <C> <C>
Small/Mid Cap Trust 1.00% .25%* 1.25%
International Small Cap Trust 1.10% .30%* 1.40%
</TABLE>
*Based on estimates of payments to be made during the current fiscal year.
EXAMPLE
A Contract Owner would pay the following expenses on a $1,000 investment,
assuming 5% annual return on assets, if the Contract Owner surrendered the
contract at the end of the applicable time period:
<TABLE>
<CAPTION>
Trust Portfolio 1 Year 3 Years
- --------------- ------ -------
<S> <C> <C>
Small/Mid Cap Trust $57 $119
International Small Cap Trust $58 $123
</TABLE>
A Contract Owner would pay the following expenses on a $1,000 investment,
assuming 5% annual return on assets, if the Contract Owner annuitized as
provided in the contract or did not surrender the contract at the end of the
applicable time period:
<TABLE>
<CAPTION>
Trust Portfolio 1 Year 3 Years
- --------------- ------ -------
<S> <C> <C>
Small/Mid Cap Trust $29 $90
International Small Cap Trust $31 $94
</TABLE>
The example for each Portfolio does not include 5 and 10 year figures
because each is a newly formed portfolio.
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