COVA FINANCIAL SERVICES LIFE INSURANCE COMPANY
COVA VARIABLE ANNUITY ACCOUNT ONE
Supplement dated September 1, 2000
The following information supplements certain information contained in your Cova
variable annuity prospectus:
1. The following accumulation unit values for the period ended June 30, 2000 are
added to Appendix A:
AIM VARIABLE INSURANCE FUNDS:
Managed by A I M Advisors, Inc.
AIM V.I. Capital Appreciation Sub-Account
Beginning of Period $16.79
End of Period $18.04
Number of Accum. Units Outstanding 2,127,052
AIM V.I. International Equity Sub-Account
Beginning of Period $17.42
End of Period $15.42
Number of Accum. Units Outstanding 431,055
AIM V.I. Value Sub-Account
Beginning of Period $16.73
End of Period $16.57
Number of Accum. Units Outstanding 4,430,868
COVA SERIES TRUST
Managed by Lord, Abbett & Co.
Bond Debenture Sub-Account
Beginning of Period $13.77
End of Period $13.86
Number of Accum. Units Outstanding 10,965,278
Mid-Cap Value Sub-Account
Beginning of Period $10.88
End of Period $12.72
Number of Accum. Units Outstanding 2,867,155
Large Cap Research Sub-Account
Beginning of Period $14.64
End of Period $13.84
<PAGE>
Number of Accum. Units Outstanding 2,659,673
Developing Growth Sub-Account
Beginning of Period $14.45
End of Period $12.66
Number of Accum. Units Outstanding 2,987,923
Lord Abbett Growth and Income
Sub-Account
Beginning of Period $39.46
End of Period $38.33
Number of Accum. Units Outstanding 20,485,223
Managed by J.P. Morgan Investment
Management Inc.
Select Equity Sub-Account
Beginning of Period $18.38
End of Period $18.07
Number of Accum. Units Outstanding 12,265,969
Small Cap Stock Sub-Account
Beginning of Period $17.93
End of Period $17.95
Number of Accum. Units Outstanding 5,592,635
International Equity Sub-Account
Beginning of Period $16.33
End of Period $15.56
Number of Accum. Units Outstanding 7,926,508
Quality Bond Sub-Account
Beginning of Period $11.57
End of Period $11.90
Number of Accum. Units Outstanding 7,064,346
Large Cap Stock Sub-Account
Beginning of Period $22.55
End of Period $21.91
Number of Accum. Units Outstanding 10,893,382
GENERAL AMERICAN CAPITAL COMPANY
Managed by Conning Asset Management Company
Money Market Sub-Account
Beginning of Period $11.53
End of Period $11.80
Number of Accum. Units Outstanding 2,526,087
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST, CLASS 1 SHARES Managed by
Franklin Advisers, Inc.
<PAGE>
Franklin Large Cap Growth Securities Sub-Account
Beginning of Period $14.67
End of Period $16.25
Number of Accum. Units Outstanding 206,046
Franklin Small Cap Sub-Account
Beginning of Period $17.68
End of Period $18.33
Number of Accum. Units Outstanding 167,354
Templeton Global Income Securities Sub-Account
Beginning of Period $ 9.68
End of Period $ 9.72
Number of Accum. Units Outstanding 68,613
Managed by Templeton Investment Counsel, Inc.
Templeton International Securities Sub-Account
Beginning of Period $11.15
End of Period $11.13
Number of Accum. Units Outstanding 1,209,737
Managed by Templeton Global Advisors Limited
Templeton Growth Securities Sub-Account
Beginning of Period $12.56
End of Period $12.91
Number of Accum. Units Outstanding 108,652
2. The following replaces Appendix C - Performance Information:
FUTURE PERFORMANCE WILL VARY AND THE RESULTS SHOWN ARE NOT NECESSARILY
REPRESENTATIVE OF FUTURE RESULTS.
Note: The figures below present investment performance information for the
periods ended June 30, 2000. While these numbers represent the returns as of
that date, they do not represent performance information of the portfolios since
that date. Performance information for the periods after June 30, 2000 may be
different than the numbers shown below.
PART 1 - SEPARATE ACCOUNT PERFORMANCE
The portfolios listed below began operations before June 30, 2000. As a
result, performance information is available for the accumulation unit values
investing in these portfolios.
* Column A presents performance figures for the accumulation units which
reflect the insurance charges, the contract maintenance charge, the fees
and expenses of the investment portfolio, and assume that you make a
withdrawal at the end of the period and therefore the withdrawal charge is
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reflected.
* Column B presents performance figures for the accumulation units which
reflect the insurance charges as well as the fees and expenses of the
investment portfolio.
The inception dates shown below reflect the dates the Separate Account first
invested in the Portfolio. The performance returns for accumulation units
investing in the portfolios in existence for less than one year are not
annualized.
<TABLE>
<CAPTION>
PART 1 AIM VARIABLE INSURANCE FUNDS
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/00:
Accumulation Unit Performance
Column A Column B
Separate (reflects all (reflects insurance
Account charges and charges and
Inception portfolio expenses) portfolio expenses)
Portfolio Date in 1 yr since 1 yr since
Portfolio inception inception
---------------- --------- -------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C>
AIM V.I. Capital 12/31/97 36.32% 25.26% 40.92% 26.64%
Appreciation
AIM V.I. 12/31/97 25.91% 17.42% 30.51% 18.92%
International
Equity
AIM V.I. Value 12/31/97 7.03% 20.95% 11.63% 22.39%
</TABLE>
<TABLE>
<CAPTION>
PART 1 COVA SERIES TRUST
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/00:
Accumulation
Column A Unit Performance Column B
(reflects (reflects
all charges insurance
and portfolio charges and
Separate Account expenses portfolio
Inception Date expenses)
Portfolio in Portfolio 1 yr 5 yrs since 1 yr 5 yrs since
----------------- ---------------- ---------- -------- ------------- ---------- --------- ----------
inception inception
------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Select Equity 5/1/96 -8.40% N/A 14.24% -3.80% N/A 15.03%
Small Cap Stock 5/1/96 30.89% N/A 12.86% 35.49% N/A 13.70%
International Equity 5/1/96 10.43% N/A 9.74% 15.03% N/A 10.63%
Quality Bond 5/1/96 -1.82% N/A 3.47% 2.78% N/A 4.53%
Large Cap Stock 5/1/96 -3.92% N/A 20.02% 0.69% N/A 20.70%
Bond Debenture 5/1/96 -2.18% N/A 6.94% 2.42% N/A 7.90%
Mid-Cap Value 8/20/97 5.40% N/A 7.29% 10.01% N/A 8.76%
Large Cap Research 8/20/97 -0.71% N/A 10.63% 3.89% N/A 12.02%
Developing Growth 8/20/97 -5.09% N/A 7.13% -0.49% N/A 8.59%
Lord Abbett Growth and
Income 1/8/99 -6.55% N/A 1.40% -1.95% N/A 4.53%
</TABLE>
<TABLE>
<CAPTION>
PART 1 GENERAL AMERICAN CAPITAL COMPANY AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIOD ENDED 6/30/00:
Accumulation
Column A Unit Performance Column B
(reflects (reflects
all charges insurance
and portfolio charges and
Separate Account expenses) portfolio
Inception Date expenses)
Portfolio in Portfolio 1 yr since 1 yr since
----------------- ---------------- ---------- ------------- ---------- ----------
inception inception
------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Money Market 6/3/96 -0.20% 3.03% 4.40% 4.14%
</TABLE>
<TABLE>
<CAPTION>
PART 1 FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST, CLASS 1 SHARES
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/00:
Accumulation Unit Performance
Column A Column B
Separate (reflects all (reflects insurance
Account charges and charges and
Inception portfolio expenses) portfolio expenses)
Portfolio Date in 1 yr since 1 yr since
Portfolio inception inception
---------------- --------- -------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Templeton International
Securities (1) 5/1/98 6.56% 2.95% 11.16% 5.08%
Franklin Large Cap Growth
Securities (2) 3/1/99 17.59% 22.96% 22.19% 26.21%
Franklin Small Cap (3) 3/1/99 60.03% 64.89% 64.63% 67.82%
Templeton Global Income
Securities (4) 3/1/99 -6.60% -6.82% -2.00% -3.26%
Templeton Growth Securities (5) 1/19/99 -14.19% -1.82% -9.59% 1.49%
</TABLE>
(1) Previously, the Templeton International Securities Fund was known as the
Templeton International Fund. Effective May 1, 2000, the Templeton International
Securities Fund merged into the Templeton International Equity Fund. Performance
shown reflects historical performance of the Templeton International Securities
Fund.
(2) Effective May 1, 2000, the Franklin Large Cap Growth Investments Fund
(previously offered under the contract) merged into the Franklin Large Cap
Growth Securities Fund. Performance shown reflects historical performance of the
Franklin Large Cap Growth Securities Fund.
(3) Effective May 1, 2000, the Franklin Small Cap Investments Fund (previously
offered under the contract) merged into the Franklin Small Cap Fund. Performance
shown reflects historical performance of the Franklin Small Cap Fund.
(4) Effective May 1, 2000, the Templeton Bond Fund (previously offered under the
contract) merged into the Templeton Global Income Securities Fund. Performance
shown reflects historical performance of the Templeton Global Income Securities
Fund.
(5) Effective May 1, 2000, the Templeton Stock Fund (previously offered under
the contract) merged into the Templeton Growth Securities Fund. Performance
shown reflects historical performance of the Templeton Growth Securities Fund.
PART 2 - HISTORICAL FUND PERFORMANCE
Certain Funds ("Existing Funds") have been in existence prior to when the
Separate Account and your contract began investing in them. In order to show how
historical investment performance of the Funds affects accumulation unit values,
we have developed performance information.
The chart below shows the investment performance of the Existing Funds and the
accumulation units performance calculated by assuming that accumulation units
were invested in the Portfolio of the Existing Fund for the same periods.
* The performance figures in Column A for the Existing Funds reflect the fees
and expenses paid by the Portfolio.
* Column B presents performance figures for the accumulation units which
<PAGE>
reflect the insurance charges, the contract maintenance charge, the fees
and expenses of the Portfolio and assumes that you make a withdrawal at the
end of the period and therefore the withdrawal charge is reflected.
* Column C presents performance figures for the accumulation units which
reflect the insurance charges as well as the fees and expenses of the
Portfolio.
<TABLE>
<CAPTION>
PART 2 AIM VARIABLE INSURANCE FUNDS
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/00:
Fund Performance Accumulation Unit Performance
Column A Column B Column C
(reflects all (reflects insurance
charges and charges and
portfolio expenses) portfolio expenses)
Portfolio
Inception since since Unit since
Portfolio Date 1 yr 5 yrs inception 1 yr 5 yrs inception 1 yr 5 yrs inception
---------------- --------- ------- ------ ------------ ------ ------- ---------- ------ ----- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AIM V.I. Capital
Appreciation 5/5/93 42.91% 22.36% 21.98% 36.32% 20.86% 20.48% 40.92% 20.96% 20.58%
AIM V.I.
International
Equity 5/5/93 32.34% 17.27% 15.54% 25.91% 15.77% 14.04% 30.51% 15.87% 14.14%
AIM V.I. Value 5/5/93 13.20% 21.82% 21.26% 7.03% 20.32% 19.76% 11.63% 20.42% 19.86%
</TABLE>
<TABLE>
<CAPTION>
PART 2 GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND AVERAGE ANNUAL TOTAL
RETURN FOR THE PERIODS ENDED 6/30/00:
Fund Performance Accumulation Unit Performance
Column A Column B Column C
(reflects all (reflects insurance
Portfolio charges and charges and
Inception portfolio expenses) portfolio expenses)
Portfolio Date 1 yr 5 yrs 10 yrs 1 yr 5 yrs 10 yrs 1 yr 5 yrs 10 yrs
---------------- --------- ------- ------ ------------ ------- ----------- ------------- ------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market 10/1/87 5.88% 5.61% 5.24% -0.20% 4.11% 3.74% 4.40% 4.21% 3.84%
</TABLE>
PART 2 FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST AVERAGE ANNUAL TOTAL
RETURN FOR THE PERIODS ENDED 6/30/00:
<TABLE>
<CAPTION>
Fund Performance Accumulation Unit Performance
Column A Column B Column C
(reflects all (reflects insurance
charges and charges and
portfolio expenses) portfolio expenses)
Portfolio 10 yrs 10 yrs 10 yrs
Portfolio, Inception or since or since or since
Class 1 Shares Date 1 yr 5 yrs inception 1 yr 5 yrs inception 1 yr 5 yrs inception
--------------- --------- ------ ------ ---------- ------ ----- --------- ----- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Templeton Global
Income Securities(1) 1/24/89 -0.46% 3.80% 5.40% -6.60% 2.30% 3.90% -2.00% 2.40% 4.00%
Templeton Growth
Securities(2) 3/15/94 5.97% 13.37% 12.25% -14.19% 11.87% 10.75% -9.59% 11.97% 10.85%
Templeton International
Securities(3) 5/1/92 12.73% 15.54% 14.44% 6.56% 14.04% 12.94% 11.16% 14.14% 13.04%
Franklin Small Cap(4) 11/1/95 80.21% N/A 28.51% 60.03% N/A 26.03% 64.63% N/A 27.11%
Franklin Large Cap
Growth Securities(5) 5/1/96 31.33% N/A 23.19% 17.59% N/A 20.59% 22.19% N/A 21.79%
</TABLE>
(1) Effective May 1, 2000, the Templeton Bond Fund (previously offered under
the contract) merged into the Templeton Global Income Securities Fund.
Performance shown reflects historical performance and inception date of the
Templeton Global Income Securities Fund.
(2) Effective May 1, 2000, the Templeton Stock Fund (previously offered under
the contract) merged into the Templeton Growth Securities Fund. Performance
shown reflects historical performance and inception date of the Templeton Growth
Securities Fund.
(3) Previously, Templeton International Fund. Effective May 1, 2000, the
Templeton International Securities Fund merged into the Templeton International
Equity Fund. Performance shown reflects historical performance and inception
date of the Templeton International Securities Fund.
(4) Effective May 1, 2000, the Franklin Small Cap Investments Fund
(previously offered under the contract) merged into the Franklin Small Cap Fund.
Performance shown reflects historical performance and inception date of the
Franklin Small Cap Fund.
(5) Effective May 1, 2000, the Franklin Large Cap Growth Investments Fund
(previously offered under the contract) merged into the Franklin Large Cap
Growth Securities Fund. Performance shown reflects historical performance and
inception date of the Franklin Large Cap Growth Securities Fund.
CL-4407 (9/00) 21-VARI-S-1
