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VARIABLE ANNUITY ACCOUNT ONE
FIRST SUNAMERICA LIFE INSURANCE COMPANY
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SUPPLEMENT TO THE PROSPECTUS DATED APRIL 1, 1999
On July 29, 1999, First SunAmerica's and Anchor Series Trust's (the
"Trust") Substitution Application ("Application") was granted by the Securities
and Exchange Commission ("SEC") to allow:
o Shares of the Fixed Income Portfolio to be replaced with shares
of the Government and Quality Bond Portfolio; and
o Shares of the Foreign Securities Portfolio to be replaced with
shares of the Strategic Multi-Asset Portfolio (the Fixed Income
Portfolio and Foreign Securities Portfolio are referred to as
"Replaced Portfolios" and the Government and Quality Bond
Portfolio and Strategic Multi-Asset Portfolio are referred to as
the "Substituted Portfolios").
First SunAmerica and the Trust are in agreement that the substitution
is in the best interest of shareholders. First SunAmerica believes that the
Substituted Portfolios are appropriate replacements because:
o The Government and Quality Bond Portfolio has a similar investment
objective to the Fixed Income Portfolio, invests in the same type
of fixed income securities and generally has had better
performance and lower investment expenses; and
o The Strategic Multi-Asset Portfolio has a similar investment
objective to the Foreign Securities Portfolio, generally invests a
portion of its assets in foreign securities and in general, has
had better performance and a similar expense ratio. As a result of
the substitution the expense ratio may even decline if there is a
large influx of assets.
First SunAmerica accomplished the substitution by redeeming shares of
the Replaced Portfolios and simultaneously purchasing shares of the Substituted
Portfolios at the close of business on August 6, 1999 ("Substitution Date"). The
substitution will not cause a change in a Contract Owner's contract value or
death benefit. First SunAmerica will assume all costs and expenses associated
with the substitution.
Contract Owners invested in either of the Replaced Portfolios will be
mailed a notice of the substitution by August 12, 1999. For a period of
thirty-one (31) days from mailing of the notice, Contract Owners may transfer
all assets in the Substituted Portfolio to any other investment option, without
incurring any transfer fee or otherwise having the transfer count towards the
maximum free transfers per contract year. Transfers after that thirty-one (31)
day period will be subject to the standard contract provisions as discussed in
the prospectus.
The following language is added to page 24 of the prospectus as the second
paragraph under Administration:
During the accumulation phase, you will receive confirmation of
transactions within your contract. Transactions made pursuant to
contractual or systematic agreements, such as deduction of the annual
maintenance fee and dollar cost averaging, may be confirmed quarterly.
Purchase Payments received through the Automatic Payment Plan or a
salary reduction arrangement, may also be confirmed quarterly.
For all other transactions, we send confirmations immediately.
During the accumulation and income phases, you will receive a statement
of your transactions over the past quarter and a summary of your
account values.
August 9, 1999
