COVA FINANCIAL SERVICES LIFE INSURANCE COMPANY
COVA VARIABLE ANNUITY ACCOUNT ONE
SUPPLEMENT DATED DECEMBER 10, 1996
TO PROSPECTUS DATED DECEMBER 2, 1996
This supplement should be attached to your copy of the Prospectus for the
variable annuity contracts issued by Cova Financial Services Life Insurance
Company ("Cova Life") and Cova Variable Annuity Account One ("Variable Account
One").
The purpose of this supplement is to notify you of a proposal to substitute
shares of the International Equity Portfolio of Cova Series Trust ("Cova
Trust") for shares of the Global Equity Portfolio of Lord Abbett Series Fund,
Inc. ("Lord Abbett Fund") held by Variable Account One to fund certain single
purchase payment and flexible purchase payment variable annuity contracts
("Contracts") issued by Cova Life.
On December 10, 1996, Cova Life filed an application with the Securities and
Exchange Commission ("Commission") requesting an order approving the
Substitution. Upon obtaining the order from the Commission approving the
Substitution, and subject to any prior approval by applicable state insurance
authorities, Cova Life and Variable Account One propose to effect the
Substitution as soon as is practical.
Cova Life has proposed the Substitution to provide a transfer of the assets
from the Global Equity Portfolio which in the future is not expected to be of
sufficient size to promote consistent investment performance or to reduce
operating expenses.
A Contract owner, prior to the date of Substitution, may transfer his or her
Global Equity Sub-Account Value to any other sub-account of Variable Account
One without any limitation or charge being imposed. Moreover, following the
Substitution for a period of 30 days, Cova Life will permit transfers from the
International Equity Sub-Account to any other sub-account of Variable Account
One available under your Contract without any limitation or charge being
imposed. After the 30 days, any transfers from the International Equity
Sub-Account will be subject to the restrictions described in the Prospectus.
A complete list of all available Portfolios in which Variable Account One
invests is set forth in the Prospectus. You may obtain a Prospectus by writing
or calling Cova Life at the address or telephone number set forth below.
Cova Life will effect the Substitution by simultaneously placing an order to
redeem the shares of the Global Equity Portfolio and an order to purchase
shares of the International Equity Portfolio.
Cova Life will bear the expenses attributable to the Substitution. Cova Life
will send affected Owners a notice within five days after the Substitution.
CUSTOMER SERVICE: (800) 343-8496
Issued by: Cova Financial Services Life Insurance Company
Distributed by: Cova Life Sales Company
One Tower Lane, Suite 3000
Oakbrook Terrace, Illinois 60181-4644
