SUPPLEMENT DATED AUGUST 20, 1997
TO
PROSPECTUS DATED MAY 1, 1997
WRL SERIES ANNUITY ACCOUNT
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 shares of the Bond Portfolio of the WRL Series Fund, Inc. (the
"Fund") for shares of the Short-to-Intermediate Government Portfolio of the Fund
currently held by the corresponding Sub-Account of the WRL Series Annuity
Account (the "Account"). To the extent required by law, approvals of the
substitution will also be obtained from the state insurance regulators in
certain jurisdictions.
If approved, the effect of the share substitution will be to replace
the Short-to-Intermediate Government Portfolio with the Fund's Bond Portfolio as
an investment option under the individual flexible premium deferred variable
annuity contract (the "Contract") described in your May 1, 1997 prospectus. The
Bond 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 substitution
as soon as all necessary regulatory approvals have been obtained (anticipated to
be before December 31, 1997), by redeeming the Short-to-Intermediate Government
Portfolio shares in cash and purchasing with the proceeds shares of the Bond
Portfolio. If carried out, the proposed substitution would result in the
involuntary reinvestment of Contract owners' Cash Value invested in the
Short-to-Intermediate Government Portfolio.
The investment objective of the Fund's Bond Portfolio is:
BOND PORTFOLIO: seeks the highest possible current income within the
confines of the primary goal of insuring the protection of capital by
investing in debt securities issued by the U.S. Government and its
agencies and in medium to high-quality corporate debt securities.
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 substitution, each Contract owner will be permitted to make one
transfer from the Short-to-Intermediate Government Sub-Account of all the Cash
Value under the Contract invested in that Sub-Account to other available
Sub-Account(s) 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 substitution.
In connection with the proposed substitution, the Short-to-Intermediate
Government Portfolio 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-Account of the Account investing
in the Short-to-Intermediate Government Portfolio.
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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