SUPPLEMENT TO PROSPECTUS
DATED JULY 16, 1997
FOR LIFE OF VIRGINIA SEPARATE ACCOUNT 4
EFFECTIVE AUGUST 1, 1997
Form P1140 10/90
This supplement shall replace the Supplement to Prospectus Dated May 1, 1997,
for Life of Virginia Separate Account 4 for Policyowners in the State of
Washington for policies issued on or after August 1, 1997. Please keep this
Supplement with your prospectus dated May 1, 1997.
General Information
Contributions and/or transfers to the Guarantee Account, as described below,
become part of the General Account of Life of Virginia. Because of exemptive and
exclusionary provisions, interests in the General Account have not been
registered under the Securities Act of 1933, (the "1933 Act"), and the General
Account is not registered as an investment company under the Investment Company
Act of 1940, (the "1940 Act"). Accordingly, neither the General Account nor any
interests therein are subject to the provisions of the 1933 Act or the 1940 Act,
and the information in this supplement has not been reviewed by the staff of the
Securities and Exchange Commission. Disclosure regarding the Guarantee Account
and the General Account, however, may be subject to certain generally applicable
provisions of the federal securities laws relating to the accuracy and
completeness of statements made in prospectuses.
The Guarantee Account
The Policyowner may allocate net premium payments to the Guarantee Account or
transfer amounts between the Guarantee Account and the Investment Subdivisions
of Account 4. Upon maturity or surrender of the policy, any amount in the
Guarantee Account is added to the Account Value in Account 4, and, after
deduction of any applicable surrender charge, is paid in a lump sum, or applied
under an optional payment plan. (See Income Payments.) Amounts allocated or
transferred to the Guarantee Account earn interest at the interest rate in
effect at the time of such allocation. This rate is guaranteed to be at least 4%
per annum. A higher rate of interest may be credited, and Life of Virginia
reserves the right to credit bonus interest to initial premium or additional
premium allocated to a Guarantee Account participating in a Dollar-Cost
Averaging program. Any interest credited in excess of the guaranteed interest
rate of 4% per annum will be determined at the sole discretion of Life of
Virginia. Life of Virginia has no obligation to credit interest in excess of the
guaranteed minimum interest rate. With respect to each amount allocated, the
interest rate in effect at the time of allocation will be credited for one year
from that date, unless transferred out earlier pursuant to participation in or
termination of a Dollar-Cost Averaging program. Each year for which a particular
interest rate is guaranteed with respect to a particular allocation is the
interest rate guarantee period. At the end of the interest rate guarantee
period, a new interest rate will become effective, and a new interest rate
guarantee period will commence for any remaining portion of that particular
allocation.
Charges
The Mortality and Expense Risk and Distribution Expense charges are not
deducted from the Guarantee Account. Such charges are borne solely by Account 4.
The annual policy maintenance charge will be deducted from the Guarantee Account
if there is no account value in Account 4. If there is insufficient account
value in Account 4 at the time the charge is deducted, the excess of the policy
maintenance charge
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over the amount deducted from Account 4 will be deducted from the Guarantee
Account. (See Policy Maintenance Charge.)
Surrender charges apply to account values allocated to the General Account in
the same manner in which these charges apply to account values allocated to
Account 4.
Transfers
The Policyowner may transfer amounts between the Guarantee Account and the
available Investment Subdivisions of Account 4. Transfers will be effective on
the date the Policyowner's transfer request is received by the company.
With respect to transfers between the Guarantee Account and the available
Investment Subdivisions of Account 4, the following restrictions may be imposed:
Transfers from any particular allocation to the Guarantee Account to
Investment Subdivisions of Account 4 may be made only during the 30 day
period beginning with the end of the preceding interest rate guarantee period
applicable to that particular allocation. Life of Virginia may limit the
amount which may be transferred to the Investment Subdivisions. For any
particular allocation to the Guarantee Account, the limited amount will not
be less than (a) accrued interest on that allocation, plus (b) 25% of the
original amount of that allocation.
No transfers from any Investment Subdivision of Account 4 to the Guarantee
Account may be made during the six month period following the transfer of any
amount from the Guarantee Account to any Investment Subdivisions of Account
4.
In all other respects, the rules and charges applicable to transfers between the
various Investment Subdivisions of Account 4 will apply to transfers involving
the Guarantee Account.
Dollar-Cost Averaging
For policies issued on or after November 14, 1994, as an alternative to the
dollar-cost averaging program described in the Prospectus (see Dollar-Cost
Averaging"), Policyowners may elect to have Life of Virginia automatically
transfer specified amounts from the Guarantee Account to any available
Investment Subdivision on a monthly or quarterly basis. To make the election,
Policyowners must complete the Dollar-Cost Averaging section of the application
or a Dollar-Cost Averaging Agreement. Money may be allocated to the Guarantee
Account as an initial or additional premium or in the form of a transfer of
Account Value from one or more Investment Subdivisions. Such allocations must
comply with all applicable minimum amount and percentage requirements (see
Purchasing the Policies and Allocation of Net Premium Payments) as well as the
rules applicable to transfers to the Guarantee Account. Apart from automatic
transfers under the Dollar-Cost Averaging Agreement, all rules regarding
transfers from the Guarantee Account will apply.
Policyowners may designate the amount of value under the Policy allocated to
the Guarantee Account that is subject to the Dollar-Cost Averaging program. Life
of Virginia reserves the right to limit the minimum amount of each automatic
transfer to 10% per month of the amount so designated.
Automatic transfers from the Guarantee Account, as described above, will be
made on a first-in-first-out basis until the entire value of the designated
amount in the Guarantee Account is depleted. Prior to that time, a Policyowner
may discontinue such automatic transfers by sending Life of Virginia a written
notice.
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Life of Virginia reserves the right to transfer any remaining portion of an
allocation used for Dollar-Cost Averaging to a Guarantee Account with a new one
year interest rate guarantee period upon termination of the Dollar-Cost
Averaging program for that allocation. Life of Virginia also reserves the right
to discontinue or modify the alternative Dollar-Cost Averaging program at any
time for any reason on 30 days written notice to the Policyowner.
Surrenders
Surrenders may be made from the Guarantee Account in addition to Account 4,
(see Distributions Under the Policy). If a partial surrender is requested, the
Policyowner may specify the accounts from which the deduction should be made. If
no Guarantee Account is specified, the amount of the partial surrender will be
deducted first from the Investment Subdivisions of Account 4 on a pro-rata
basis, in proportion to the Account Value in Account 4. Any amount remaining
will be deducted from the Guarantee Account. Deductions from the Guarantee
Account will be taken from the amounts, (including interest credited to such
amounts), which have been in the Guarantee Account for the longest period of
time.
Deferral of Payment
Life of Virginia may defer payment of any amount from the Guarantee Account
for up to six months. Payment will not be deferred if applicable law requires
earlier payment, or if the amount payable is to be used to pay premiums on
policies in force with Life of Virginia.
THE GUARANTEE ACCOUNT MAY NOT BE AVAILABLE IN ALL STATES OR MARKETS
Dated July 16, 1997
The Life Insurance Company of Virginia
6610 West Broad Street
Richmond, Virginia 23230
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