SUPPLEMENT DATED JANUARY 1, 1997
TO
PROSPECTUS DATED MAY 1, 1996
MERIDIAN/INVESCO SECTOR VARIABLE ANNUITY
Effective January 1, 1997, WRL Investment Management, Inc. ("WRL
Management"), a Florida corporation, will replace Western Reserve Life Assurance
Co. of Ohio ("Western Reserve") as the investment adviser for the WRL Series
Fund, Inc. (the "Fund"). WRL Management is a wholly-owned subsidiary of Western
Reserve. Throughout the Prospectus, wherever Western Reserve is referred to as
the Fund's investment adviser, Western Reserve will be replaced with WRL
Management. Also, wherever reference is made to "twenty-one portfolios" of the
Fund, it will now mean "twenty-two portfolios" of the Fund.
THE FOLLOWING INFORMATION MODIFIES THE INFORMATION PROVIDED ON PAGE 4 OF THE
PROSPECTUS UNDER THE HEADING "SUMMARY - SUMMARY OF CHARGES AND EXPENSES";
FUND ANNUAL EXPENSES* (as a % of Fund average net assets)
* Effective January 1, 1997, the Fund has adopted a Plan of
Distribution pursuant to Rule 12b-1 under the 1940 Act ("Distribution
Plan") and pursuant to the Plan, has entered into a Distribution
Agreement with InterSecurities, Inc. ("ISI"), principal underwriter for
the Fund. Under the Distribution Plan, the Fund, on behalf of the
Portfolios, is authorized to pay to various service providers, as
direct payment for expenses incurred in connection with the
distribution of a Portfolio's shares, amounts equal to actual expenses
associated with distributing a Portfolio's shares, up to a maximum rate
of 0.15% (fifteen one-hundredths of one percent) on an annualized basis
of the average daily net assets. This fee is measured and accrued daily
and paid monthly. ISI has determined that it will not seek payment by
the Fund of distribution expenses with respect to any Portfolio during
the fiscal year ending December 31, 1997. Prior to ISI's seeking
reimbursement, Policyowners will be notified in advance.
THE FOLLOWING INFORMATION IS ADDED TO THE END OF THE PARAGRAPH ON PAGE 10 OF THE
PROSPECTUS UNDER THE HEADING "CHARGES AND DEDUCTIONS - EXPENSES OF THE FUND:"
Effective January 1, 1997, the Fund has adopted a Plan of Distribution pursuant
to Rule 12b-1 under the 1940 Act ("Distribution Plan") and pursuant to the Plan,
has entered into a Distribution Agreement with InterSecurities, Inc. ("ISI"),
principal underwriter for the Fund.
Under the Distribution Plan, the Fund, on behalf of the Portfolios, is
authorized to pay to various service providers, as direct payment for expenses
incurred in connection with the distribution of a Portfolio's shares, amounts
equal to actual expenses associated with distributing a Portfolio's shares, up
to a maximum rate of 0.15% (fifteen one-hundredths of one percent) on an
annualized basis of the average daily net assets. This fee is measured and
accrued daily and paid monthly. ISI has determined that it will not seek payment
by the Fund of distribution expenses with respect to any Portfolio during the
fiscal year ending December 31, 1997. Prior to ISI's seeking reimbursement,
Policyowners will be notified in advance.
