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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 or certificate (The new portfolios are not available
for investment for Ven 1 contract owners.). 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 $83* $133
International Small Cap Trust $84** $138***
</TABLE>
*$74, in the case of Ven 3 contract owners
**$75, in the case of Ven 3 contract owners
***$137, in the case of Ven 3 contract owners
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 $28 $85
International Small Cap Trust $29 $89
</TABLE>
The example for each Portfolio does not include 5 and 10 year figures
because each is a newly formed portfolio.
Maximum Number of Investment Options
Due to current adminstrative capabilities, a Contract Owner is limited
to a maximum of 17 investment options (including all fixed account investment
options) during the period prior to the maturity date of the contract (the
"Contract Period"). In calculating this limit for each Contract Owner,
investment options which the Contract Owner has allocated purchase payments at
any time during the Contract Period will be counted toward the 17 maximum even
if the Contract Owner no longer has contract value allocated to the investment
option.
VEN20/21.SUPP296
V7.SUPP296
V22/23.SUPP296
