SUPPLEMENT DATED JANUARY 11, 1999 TO
PROSPECTUS DATED MAY 1, 1998
for the Scudder Horizon Plan
Charter National Variable Annuity Account
CHARTER NATIONAL LIFE INSURANCE COMPANY
Please add the following paragraph to the section entitled "Charter
National Life Insurance Company" which begins on page 15 of the prospectus:
On December 21, 1998 Allstate Life Insurance Company ("Allstate")
announced that it entered into an agreement with Leucadia National
Corporation to purchase Charter National Life Insurance Company. The
transaction is subject to regulatory approvals and is expected to close
during the second quarter of 1999.
Please substitute the following two paragraphs for the section of the
prospectus on page 16 entitled "Agreements with Allstate Life Insurance
Company":
On September 2, 1998, Charter and Leucadia entered into a coinsurance
agreement with Allstate reinsuring all of Charter's rights, liabilities and
obligations with respect to the Variable Account under the Contracts. On
the same date, Charter and Allstate entered into an administrative services
agreement under which Allstate will administer the Contracts. (See
"Services Agreement," p.52) Neither of these agreements will change the
fact that Charter is primarily liable to You under Your Contract. Moreover,
at this time there will be no changes to the address or phone numbers that
you are currently using.
CNL, Inc. ("CNL") is the principal underwriter of the Contracts. On
September 2, 1998, Leucadia, then sole owner of all of the stock of CNL,
sold all of its CNL stock to Allstate. (See "Distribution of the Contract,"
p.52)
* * * *
Please substitute the following paragraph for the section of the prospectus
on page 52 entitled "Services Agreement":
On September 2, 1998, Charter entered into an administrative services
agreement with Allstate under which Allstate will provide the
administrative services in connection with the Contract and the Variable
Account on behalf of Charter. Among the services Allstate will provide are
premium payment processing, all transfer, withdrawal or surrender requests,
preparation of records and reports relating to the Variable Account and the
Contracts (including records of all purchases and redemptions of shares of
the Portfolios). In addition, Allstate will be responsible to pay all
expenses in connection with the Contracts and the Variable Account.
Allstate's principal address is 3100 Sanders Road, Northbrook, IL 60062. At
this time, you should continue to send your payments and requests to
Charter at 8301 Maryland Avenue, St. Louis, Missouri 63105 or call
1-800-242-4402.
