<PAGE>
Supplement to Prospectus Dated May 1, 2000 for Pacific Select Exec
Flexible Premium Variable Insurance Policy (the "policy")
Issued by Pacific Life Insurance Company
This supplement changes the prospectus to reflect the
following and restates information contained in a
supplement dated October 2, 2000:
---------------------------------------------------------
Eleven new variable The following new investment options are added to the
investment options chart on page 1 of the prospectus:
are available
.Blue Chip .Strategic Value
.Aggressive Growth .Focused 30
.Financial Services .Capital Opportunities
.Health Sciences .Mid-Cap Growth
.Technology .Global Growth
.Telecommunications
---------------------------------------------------------
The Bond and Income The Bond and Income variable account terminated on
investment option September 22, 2000.
is no longer
available All references to the Bond and Income variable account,
investment option or portfolio are removed. References
to the 21 variable investment options throughout the
prospectus are changed to refer to 31 variable
investment options.
Unless you instruct us otherwise, to the extent any
outstanding instruction you have on file with us
designates the Bond and Income investment option, the
instruction will be deemed an instruction for the
Managed Bond investment option. This includes, but is
not limited to, instructions for net premium
allocations, transfer instructions (including
instructions under any automatic transfer, portfolio
rebalancing and dollar cost averaging programs), and
partial withdrawal and monthly deduction instructions.
---------------------------------------------------------
The International Effective January 1, 2001 Lazard Asset Management is
Value Portfolio has the portfolio manager of the International Value
a new portfolio portfolio.
manager
---------------------------------------------------------
A portfolio manager Mercury Asset Management US has changed its name to
has changed its Mercury Advisors.
name
Supplement dated January 2, 2001
<PAGE>
---------------------------------------------------------
An overview of Other expenses
Pacific Select
Exec: Fees and The table also shows the advisory fee and fund expenses
expenses paid by as an annual percentage of each portfolio's average
the Pacific Select daily net assets for the year 2000. To help limit fund
Fund: Other expenses, effective July 1, 2000 we contractually
expenses is agreed to waive all or part of our investment advisory
replaced fees or otherwise reimburse each portfolio for
operating expenses (including organizational expenses,
but not including advisory fees, additional costs
associated with foreign investing and extraordinary
expenses) that exceed an annual rate of 0.10% of its
average daily net assets. Such waiver or reimbursement
is subject to repayment to us to the extent such
expenses fall below the 0.10% expense cap. For each
portfolio, our right to repayment is limited to amounts
waived and/or reimbursed that exceed the new 0.10%
expense cap and, except for portfolios that started on
or after October 2, 2000, that do not exceed the
previously established 0.25% expense cap. Any amounts
repaid to us will have the effect of increasing such
expenses of the portfolio, but not above the 0.10%
expense cap. There is no guarantee that we will
continue to cap expenses after December 31, 2001. In
2000, Pacific Life reimbursed approximately $14,627 to
the I-Net Tollkeeper Portfolio, $36,874 to the
Strategic Value Portfolio, $34,687 to the Focused 30
Portfolio and $28,882 to the Small-Cap Index Portfolio.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
Less
Advisory Other 12b-1 Total adviser's Total net
Portfolio fee expenses amounts+ expenses reimbursement expenses
----------------------------------------------------------------------------------------
As an annual % of average daily net assets
<S> <C> <C> <C> <C> <C> <C>
Blue Chip/1/ 0.95 0.06 -- 1.01 -- 1.01
Aggressive Growth/1/ 1.00 0.06 -- 1.06 -- 1.06
Aggressive Equity/2/ 0.80 0.04 0.02 0.86 -- 0.86
Emerging Markets/2/ 1.10 0.20 -- 1.30 -- 1.30
Diversified Research/2/ 0.90 0.08 0.01 0.99 -- 0.99
Small-Cap Equity/2/ 0.65 0.05 -- 0.70 -- 0.70
International Large-Cap/2/ 1.05 0.13 -- 1.18 -- 1.18
Equity 0.65 0.04 -- 0.69 -- 0.69
I-Net Tollkeeper/2/ 1.50 0.13 -- 1.63 (0.02) 1.61
Financial Services/1/ 1.10 0.15 -- 1.25 (0.05) 1.20
Health Sciences/1/ 1.10 0.11 -- 1.21 (0.01) 1.20
Technology/1/ 1.10 0.08 -- 1.18 -- 1.18
Telecommunications/1/ 1.10 0.08 -- 1.18 -- 1.18
Multi-Strategy 0.65 0.04 -- 0.69 -- 0.69
Equity Income/2/ 0.65 0.04 0.01 0.70 -- 0.70
Strategic Value 0.95 0.51 -- 1.46 (0.41) 1.05
Growth LT 0.75 0.04 -- 0.79 -- 0.79
Focused 30 0.95 0.43 -- 1.38 (0.33) 1.05
Mid-Cap Value/2/ 0.85 0.04 0.12 1.01 -- 1.01
International Value 0.85 0.11 -- 0.96 -- 0.96
Capital Opportunities/1/ 0.80 0.06 -- 0.86 -- 0.86
Mid-Cap Growth/1/ 0.90 0.06 -- 0.96 -- 0.96
Global Growth/1/ 1.10 0.19 -- 1.29 -- 1.29
Equity Index 0.25 0.04 -- 0.29 -- 0.29
Small-Cap Index/2/ 0.50 0.13 -- 0.63 (0.02) 0.61
REIT 1.10 0.05 -- 1.15 -- 1.15
Government Securities/2/ 0.60 0.05 -- 0.65 -- 0.65
Managed Bond/2/ 0.60 0.05 -- 0.65 -- 0.65
Money Market 0.34 0.04 -- 0.38 -- 0.38
High Yield Bond 0.60 0.04 -- 0.64 -- 0.64
Large-Cap Value/2/ 0.85 0.05 0.06 0.96 -- 0.96
----------------------------------------------------------------------------------------
</TABLE>
/1/ Expenses are estimated. There were no actual
advisory fees or expenses for these portfolios in
2000 because the portfolios started after December
31, 2000.
/2/ Total adjusted net expenses for these portfolios,
after deduction of an offset for custodian credits
and the 12b-1 recapture were: 0.84% for Aggressive
Equity Portfolio, 1.29% for Emerging Markets
Portfolio, 0.98% for Diversified Research
Portfolio, 0.69% for Small-Cap Equity Portfolio,
1.17% for International Large-Cap Portfolio, 1.60%
for I-Net Tollkeeper Portfolio, 0.69% for Equity
Income Portfolio, 0.89% for Mid-Cap Value
Portfolio, 0.60% for Small-Cap Index Portfolio,
0.62% for Government Securities Portfolio, 0.64%
for Managed Bond Portfolio, and 0.90% for Large-Cap
Value Portfolio.
+ The fund has a brokerage enhancement 12b-1 plan
under which brokerage transactions, subject to best
price and execution, may be placed with certain
broker-dealers in return for credits, cash or other
compensation ("recaptured commissions"). While a
portfolio pays the cost of brokerage when it buys
or sells a portfolio security, there are no fees or
charges to the fund under the plan. Recaptured
commissions may be used to promote and market fund
shares and the distributor may therefore defray
expenses for distribution that it might otherwise
incur. The SEC staff requires that the amount of
recaptured commissions be shown as an expense in
the chart above.
2
<PAGE>
---------------------------------------------------------
Your investment The chart in Your investment options: Variable
options is amended investment options is amended to add the following:
<TABLE>
<CAPTION>
THE PORTFOLIO'S THE PORTFOLIO'S PORTFOLIO
PORTFOLIO INVESTMENT GOAL MAIN INVESTMENTS MANAGER
<S> <C> <C> <C>
Blue Chip Long-term growth of Equity securities of "blue chip" A I M
capital. Current companies--typically large companies
income is of that are well established in their
secondary importance. respective industries.
Aggressive Growth Long-term growth of Equity securities of small- and A I M
capital. medium-sized growth companies.
Financial Services Long-term growth of Equity securities in the financial INVESCO
capital. services sector. Such companies
include banks, insurance companies,
brokerage firms and other finance-
related firms.
Health Sciences Long-term growth of Equity securities in the health INVESCO
capital. sciences sector. Such companies
include medical equipment or
supplies, pharmaceuticals, health
care facilities and other health
sciences-related firms.
Technology Long-term growth of Equity securities in the technology INVESCO
capital. sector. Such companies include
biotechnology, communications,
computers, electronics, Internet
telecommunications, networking,
robotics, video and other
technology-related firms.
Telecommunications Long-term growth of Equity securities in the INVESCO
capital. Current telecommunications sector. Such as
income is of companies that offer telephone
secondary importance. service, wireless communications,
satellite communications, television
and movie programming, broadcasting
and Internet access.
Strategic Value Long-term growth of Equity securities with the potential Janus Capital
capital. for long-term growth of capital. Corporation
Focused 30 Long-term growth of Equity securities selected for their Janus Capital
capital. growth potential. Corporation
Capital Long-term growth of Equity securities with the potential MFS
Opportunities capital. for long-term growth of capital.
Mid-Cap Growth Long-term growth of Equity securities of medium-sized MFS
capital. companies believed to have above-
average growth potential.
Global Growth Capital appreciation. Equity securities of any size MFS
located within and outside of the
U.S.
</TABLE>
3
<PAGE>
---------------------------------------------------------
Telephone You may enroll in or give instructions regarding the
transactions is dollar cost averaging or portfolio rebalancing program
changed to by telephone if we have your completed telephone
Telephone and authorization on file.
electronic
transactions In early 2001, certain registered representatives will
be able to give us instructions electronically if
We expect to make authorized by you. You may appoint your registered
the electronic representative to give us instructions on your behalf
transaction feature by completing and filing an updated telephone and
available in early electronic authorization with us.
2001. Please ask
your registered Transactions made electronically will be subject to the
representative for same procedures, restrictions and risks as those made
more information. by telephone. Sometimes your electronic transactions
will not be able to reach us. For example, our website
may be busy because of unusual market activity or a
significant economic or market change, or telephone
lines or the Internet are out of service due to severe
weather conditions or other emergencies.
---------------------------------------------------------
Making withdrawals The last paragraph is replaced with:
is revised
We may limit the amount of a withdrawal so that the
withdrawal will not cause your face amount to be less
than $50,000.
---------------------------------------------------------
Taking out a loan The second and third bullet paragraphs are replaced
is revised with:
. Interest owing on the amount you've borrowed accrues
at an annual rate of 4.75% during the first 10 policy
years and 4.25% thereafter. Interest that has accrued
during the policy year is due on your policy
anniversary. If you do not pay the interest when it's
due, we'll add it to the amount of your loan and
begin accruing interest on it from the day it was
due. We'll also transfer an amount equal to the
interest that was due, from your policy's accumulated
value to the loan account. We'll transfer this amount
from your investment options in proportion to the
accumulated value you have in each option, unless you
tell us otherwise.
. The amount in the loan account earns interest daily
at an annual rate of 4.0%. On your policy
anniversary, we transfer the interest that's been
credited to the loan account proportionately to your
investment options according to your most recent
allocation instructions.
How much you can borrow is revised to read:
The minimum amount you can borrow is $500, unless there
are other restrictions in your state. You can borrow up
to the larger of the following amounts:
. 90% of the accumulated value in the investment
options, less any surrender charges that would apply
if you surrendered your policy on the day you took
out the loan
. the result of a X (b / c) -d, where:
a = the accumulated value of your policy less any
surrender charges that would have applied if you
surrendered your policy on the day you took out
the loan, and less 12 times the most recent
monthly charge
b = 1.04
c = 1.0475 during the first 10 policy years, and
1.0425 during policy year 11 and thereafter
d = any outstanding loan amount.
4
