SUPPLEMENT TO PROSPECTUS
DATED JULY 16, 1997
FOR LIFE OF VIRGINIA SEPARATE ACCOUNT 4
EFFECTIVE AUGUST 1, 1997
Form P1142N 6/94
This supplement shall replace the Supplement to Prospectus dated May 1, 1997,
for Life of Virginia Separate Account 4. Please keep this Supplement with your
Prospectus.
General Information
Contributions and/or transfers to a 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 a 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 Owner may allocate 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 for the Guarantee Account at the at the time of such
allocation. Each period for which a particular interest rate is guaranteed with
respect to a particular allocation is the interest rate guarantee period. With
respect to each amount allocated, the interest rate in effect at the time of
allocation will be credited from the date of allocation to the end of the
interest rate guarantee period, unless transferred out earlier pursuant to
participation or termination of a Dollar-Cost Averaging program. 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. Life of Virginia currently offers an interest
rate guarantee period of one year.
The guaranteed minimum interest rate for allocations to the Guarantee Account is
3% per year. 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 in excess of the guaranteed interest rate will
be determined at the sole discretion of Life of Virginia. Life of Virginia has
no obligation to credit an interest rate in excess of the guaranteed minimum
interest rate.
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Charges
The Mortality and Expense Risk and Administrative Expense charges are not
deducted from the Guarantee Account. Such charges are borne solely by Account 4.
The Annual Policy Maintenance Charge and the Annual Death Benefit Charge, if
applicable, will be deducted from the Guarantee Account if there is no account
value in Account 4. If there is insufficient account value in the Account 4 at
the time the charges are deducted, the excess of these charges 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 Guarantee Account
in the same manner in which these charges apply to account values allocated to
Account 4.
Transfers
The Owner may transfer amounts between the Guarantee Account and the
Investment Subdivisions of Account 4. Transfers will be effective on the date
the Owner's transfer request is received by Life of Virginia. With respect to
transfers between the Guarantee Account and the 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) any 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.
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
As an alternative to the Dollar-Cost Averaging program described in the
prospectus (see "Dollar-Cost Averaging"), Owners 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, Owners 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 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.
Owners may designate the amount 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. Each automatic transfers, as described above, will be
made on a first-in-first-out basis until the entire value of the designated
amount in the Guarantee
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Account is depleted. Prior to that time, an Owner may discontinue such automatic
transfers by sending Life of Virginia a written notice.
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 this alternative Dollar-Cost Averaging program at any
time for any reason on 30 days written notice to the Owner.
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
Owner may specify the accounts from which the deduction should be made. If no
account is specified, the amount of the partial surrender will be deducted first
from the Investment Subdivisions of the Separate Account 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
July 16, 1997
The Life Insurance Company of Virginia
6610 West Broad Street
Richmond, Virginia 23230
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