OVATION PLUS VARIABLE ANNUITY
issued by
AIG LIFE INSURANCE COMPANY
through its
VARIABLE ACCOUNT I
Supplement to the profile and prospectus dated April 1, 2000.
We have applied for an exemptive order of the Securities and Exchange Commission
that would permit us to exercise the contractual rights described in the
prospectus relating to recovery of the Premium Enhancement if you cancel your
contract during the right to examine period or if, within twenty-four months
after receipt of a Premium Enhancement, you surrender part or all of your
contract or the death benefit becomes payable. There is no assurance that such
relief will be granted.
Prior to receiving the requested order, the following provisions will apply to
the profile and the prospectus, as indicated:
o In the profile, the paragraph under "10. OTHER INFORMATION" called "Right
to Examine and Cancel" and in the prospectus the first paragraph of the
section under "THE CONTRACT" called "Right to Examine Contract" are
modified such that any Premium Enhancement that we recover if you cancel
your contract during the right to examine period will be limited to an
amount equal to:
(A/B) x C, where
o A is the Contract Value, including the value of any Premium
Enhancement, at the time of cancellation;
o B is the Contract Value, including the value of any Premium
Enhancement, at the time of purchase; and
o C is the amount of any Premium Enhancement.
The result of this limit is that you will not receive less than you would have
received had there been no Premium Enhancement credited to your Contract Value.
o The following sections of the profile refer to potential recovery of
Premium Enhancements:
o the section called "7. ACCESS TO YOUR MONEY;" and
o the section called "9. DEATH BENEFIT."
The following sections of the prospectus refer to potential recovery of
Premium Enhancements:
o the section under "THE CONTRACT" called Premium Enhancement;
o the section under "ACCESS TO YOUR MONEY" called "Surrenders;" and
o the section under "DEATH BENEFIT" called "Traditional Death Benefit,"
"Optional Death Benefits," and "Accidental Death Benefit."
Each of these sections is modified by adding the following sentence:
We are currently waiving any contractual right to recapture Premium
Enhancements applied within twenty-four months of a surrender or
death, as described in the applicable section.
