SUPPLEMENT TO BRAVO! PROSPECTUS DATED JULY 30, 1999.
SUPPLEMENT TO OVERTURE ANNUITY, ANNUITY II, ANNUITY III, APPLAUSE! PROSPECTUSES
DATED MAY 1, 1997. SUPPLEMENT TO ANNUITY III-PLUS, ACCENT!, ACCLAIM!, OVERTURE
LIFE, ENCORE!, APPLAUSE! II PROSPECTUSES DATED MAY 1, 1999.
SUPPLEMENT DATED OCTOBER 4, 1999.
This Supplement should be retained with the current prospectus for your variable
contract issued by Ameritas Variable Life Insurance Company ("AVLIC"). If you do
not have a current prospectus please contact AVLIC at 1-800-745-1112.
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NOTICE OF SUBSTITUTION
The SEC has published a notice of AVLIC's application for substitution
("Application") in the Federal Register. AVLIC's Application requests permission
to substitute the following "Replaced Portfolios" with the "Substitute
Portfolios" as indicated:
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REPLACED PORTFOLIO SUBSTITUTE PORTFOLIO SUBADVISER FOR SUBSTITUTE PORTFOLIO
------------------ -------------------- -----------------------------------
VIP Money Market Ameritas Money Market Calvert Asset Management Company, Inc.
VIP II Index 500 Ameritas Index 500 State Street Global Advisors
Alger American Growth Ameritas Growth Fred Alger Management, Inc. ("Alger Management")
Alger American Income & Growth Ameritas Income & Growth Alger Management
Alger American Small Capitalization Ameritas Small Capitalization Alger Management
Alger American MidCap Growth Ameritas MidCap Growth Alger Management
MFS Emerging Growth Ameritas Emerging Growth Massachusetts Financial Services Company ("MFS Co.")
MFS Research Ameritas Research MFS Co.
MFS Growth With Income Ameritas Growth With Income MFS Co.
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If no hearing is requested on the Application, AVLIC expects to set October 29,
1999, as the Substitution Date. Substitute Portfolios will take the place of the
designated Replaced Portfolios at the close of business of the New York Stock
Exchange on the Substitution Date. Valuations will be as of the close of
business on that date. Any amounts allocated to the Replaced Portfolios will
automatically be allocated to the Substitute Portfolios after that date.
AVLIC will allow transfers from the Replaced Portfolios to any other subaccount
available under the policy through a date at least 30 days following the
Substitution Date, without imposition of any administrative charge to the policy
owner. These transfers will not count as "free transfers" to which the policy
owner may otherwise be entitled. Furthermore, such transfers of account value
from the Replaced Portfolios to the Substitute Portfolios will likewise not be
subject to an administrative charge to the policy owner, nor count in
determining whether the maximum number of "free transfers" has been exceeded.
The proposed substitution will not affect your rights or our obligations under
the policy. AVLIC will bear any expenses in connection with the proposed
substitution.
In connection with the proposed substitution outlined above, effective as of the
Substitution Date, AVLIC will be making the Ameritas Portfolios available as
subaccounts under this policy.
Below is the Fund Expense Summary table, as presented in the prospectus, showing
the expenses for the Ameritas Portfolios.
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PORTFOLIO INVESTMENT 12b-1 OTHER TOTAL WAIVERS TOTAL
ADVISORY & EXPENSE EXPENSES AND/OR (Reflecting
MANAGEMENT REIMBURSEMENTS waivers and/or
reimbursements,
if any)
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AMERITAS PORTFOLIOS (1)
Ameritas Money Market .20% - .15% .35% .05% .30%
Ameritas Index 500 .24% - .17% .41% .13% .28%
Ameritas Growth .75% - .14% .89% .10% .79%
Ameritas Income & Growth .625% - .195% .82% .12% .70%
Ameritas Small Capitalization .85% - .15% 1.00% .11% .89%
Ameritas MidCap Growth .80% - .17% .97% .13% .84%
Ameritas Emerging Growth .75% - .16% .91% .06% .85%
Ameritas Research .75% - .40% 1.15% .29% .86%
Ameritas Growth With Income .75% - .25% 1.00% .12% .88%
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(1) This is a new Fund. Each portfolio's aggregate expenses are limited to the
advisory and administrative fees disclosed above for a period of one year
following the date the substitution order is issued. Following expiration
of this one year period, expenses of the Ameritas Portfolios will not be
permitted to exceed an expense ratio which is .10% greater than the prior
expense ratio of the corresponding replaced fund, unless an amendment to
the investment advisory contract is approved modifying or eliminating the
expense guarantee.
The Ameritas Portfolios are managed by Ameritas Investment Corp. ("AIC"). AIC is
a registered investment adviser under the Investment Advisers Act of 1940, and
is an affiliate of AVLIC. AIC also contracts with subadvisers. The subadvisers
listed in the first chart, above, will provide investment subadvisory services
to the indicated Ameritas Portfolios.
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INVESTMENT OBJECTIVES AND POLICIES OF THE AMERITAS PORTFOLIOS
AMERITAS
PORTFOLIOS
PORTFOLIO INVESTMENT POLICIES OBJECTIVE
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Ameritas Invests in U.S. dollar-denominated money market securities of domestic and Seeks as high a level of
Money Market foreign issuers, including U.S. Government securities and repurchase current income as is
agreements. Invests more than 25% of total assets in the financial services consistent with preservation
industry. of capital and liquidity.
Ameritas Under normal conditions, seeks to track the S & P 500. Seeks investment results that
Index 500 correspond to the total return
of common stocks publicly
traded in the U.S., as
represented by the S & P 500.
Ameritas Focuses on companies that generally have broad product lines, markets, Seeks long-term capital
Growth financial resources and depth of management. Under normal circumstances, the appreciation.
portfolio invests primarily in equity securities, such as common or preferred
stocks, of large companies listed on U.S. exchanges or in the U.S. over-the-
counter market. The portfolio considers a large company to have a market
capitalization of $1 billion or greater.
Ameritas Under normal circumstances, invests in dividend paying equity securities, such Primarily seeks to provide a
Income & as common or preferred stocks, preferably those which the subadvisor believes high level of dividend
Growth also offer opportunities for capital appreciation. income. Its secondary goal
is to provide capital
appreciation.
Ameritas It focuses on small, fast-growing companies that offer innovative products, Seeks long-term capital
Small services or technologies to a rapidly expanding marketplace. Under normal appreciation.
Capitalization circumstances, the portfolio invests primarily in the equity securities, such as
common or preferred stocks, of small capitalization companies listed on U.S.
exchanges or in the U.S. over-the-counter market. A small capitalization
company is one that has a market capitalization within the range of companies in
the Russell 2000 Growth Index or the S&P SmallCap 600 Index.
Ameritas Invests in midsize companies with promising growth potential. Under normal Seeks long-term capital
MidCap circumstances, the portfolio invests primarily in the equity securities, such as appreciation.
Growth common or preferred stocks, of companies listed on U.S. exchanges or in the
U.S. over-the-counter market and having a market capitalization within the
range of companies in the S&P MidCap 400 Index.
Ameritas Invests, under normal market conditions, at least 65% of its total assets in Seeks long-term growth of
Emerging common stocks and related securities, such as preferred stocks, convertible capital.
Growth securities and depositary receipts for those securities, of emerging growth
companies.
Ameritas Invests, under normal market conditions, at least 80% of its total assets in Seeks long-term growth of
Research common stocks and related securities, such as preferred stocks, convertible capital and future income.
securities and depositary receipts. The portfolio focuses on companies that the
subadvisor believes have favorable prospects for long-term growth, attractive
valuations based on current and expected earnings or cash flow, dominant or
growing market share and superior management. The portfolio may invest in
companies of any size. The portfolio's investments may include securities
traded on securities exchanges or in the over-the-counter markets.
Ameritas Invests, under normal market conditions, at least 65% of its total assets in Seeks to provide reasonable
Growth With common stocks and related securities, such as preferred stocks, convertible current income and long-
Income securities and depositary receipts for those securities. These securities may be term growth of capital and
listed on a securities exchange or traded in the over-the-counter markets. While income.
the portfolio may invest in companies of any size, it may generally focus on
companies with larger market capitalizations that the subadvisor believes have
sustainable growth prospects and attractive valuations based on current and
expected earnings or cash flow.
See the prospectus or statement of additional information of the underlying
mutual fund for details.
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