SUPPLEMENT DATED AUGUST 20, 1997
TO
PROSPECTUS DATED MAY 1, 1997
WRL SERIES ANNUITY ACCOUNT
C.A.S.E. RESERVE VARIABLE ANNUITY
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
On August 15, 1997, Western Reserve Life Assurance Co. of Ohio
("Western Reserve") and several other applicants filed an application with the
Securities and Exchange Commission ("SEC") seeking an order approving the
substitution of: (1) shares of the C.A.S.E. Growth Portfolio of the WRL Series
Fund, Inc. (the "Fund") for shares of the C.A.S.E. Quality Growth Portfolio of
the Fund, and (2) shares of the C.A.S.E. Growth Portfolio of the Fund for shares
of the C.A.S.E. Growth & Income Portfolio of the Fund currently held by the
corresponding Sub-Accounts of the WRL Series Annuity Account (the "Account"). To
the extent required by law, approvals of the substitutions will also be obtained
from the state insurance regulators in certain jurisdictions.
If approved, the effect of the share substitution will be to replace:
(1) the C.A.S.E. Quality Growth Portfolio with the C.A.S.E. Growth Portfolio;
and (2) the C.A.S.E. Growth & Income Portfolio with the C.A.S.E. Growth
Portfolio, as investment options under your C.A.S.E. Reserve Variable Annuity
Contract (the "Contract") described in your May 1, 1997 prospectus. The C.A.S.E.
Growth Portfolio is described in the Fund's current prospectus, which you
previously received under separate cover.
If approved, Western Reserve would carry out the proposed substitutions
as soon as all necessary regulatory approvals have been obtained (anticipated to
be before December 31, 1997), by redeeming the C.A.S.E. Quality Growth Portfolio
shares in cash and purchasing with the proceeds shares of the C.A.S.E. Growth
Portfolio, and by redeeming the C.A.S.E. Growth & Income Portfolio shares in
cash and purchasing with the proceeds shares of the C.A.S.E. Growth Portfolio.
If carried out, the proposed substitutions would result in the involuntary
reinvestment of Contract owners' Cash Value invested in the C.A.S.E. Quality
Growth and C.A.S.E. Growth & Income Portfolios.
The investment objective of the Fund's C.A.S.E. Growth Portfolio is:
C.A.S.E. GROWTH PORTFOLIO: seeks capital growth through investment in
common stocks of small to medium-sized companies. This Portfolio will
primarily invest in smaller, less well-established companies with
limited product lines and financial resources.
Contract owners and prospective purchasers should carefully read the
prospectus for the Fund. Additional copies of the Fund's prospectus are
available from Western Reserve (call 1-800-851-9777).
From the date of this Supplement until 30 days after the date of the
proposed substitutions, each Contract owner will be permitted to make one
transfer from each of the C.A.S.E. Quality Growth Sub-Account and the C.A.S.E.
Growth & Income Sub-Account of all the Cash Value under the Contract invested in
that Sub-Account to other available Sub-Account(s) (other than the C.A.S.E.
Quality Growth and C.A.S.E. Growth & Income Sub-Accounts) without that
transfer(s) counting as one of the limited number of transfers permitted in a
Contract Year free of charge. In addition, Western Reserve will not exercise any
rights reserved by Western Reserve under the Contract to impose additional
restrictions on transfers until at least 30 days after the proposed
substitutions.
In connection with the proposed substitutions, the C.A.S.E. Quality
Growth and the C.A.S.E. Growth & Income Portfolios will be closed to new
investment on November 15, 1997. After such date, Contract owners will not be
permitted to allocate net purchase payments to or transfer Cash Value to the
Sub-Accounts of the Account investing in the C.A.S.E. Quality Growth and the
C.A.S.E. Growth & Income Portfolios.
Wire Transfers. Effective September 1, 1997, Western Reserve will no
longer make payment for partial withdrawals or Surrenders under the Contract by
wire transfer.
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