Supplement Dated October 18, 2000 to
Prospectus Dated May 1, 2000 as Supplemented September 1, 2000 for
WRL FREEDOM PREMIER
A Flexible Payment Variable Accumulation Deferred Annuity Contract
ISSUED BY
Western Reserve Life Assurance Co. of Ohio
AND ITS
WRL Series Annuity Account
THIS SUPPLEMENT PROVIDES ADDITIONAL INFORMATION TO THE INFORMATION IN THE MAY 1,
2000 PROSPECTUS. PLEASE READ IT CAREFULLY AND KEEP IT WITH YOUR MAY 1, 2000
PROSPECTUS FOR FUTURE REFERENCE.
An owner of certain fixed life insurance policies and certificates issued by us
and certain of our affiliates (the "Companies") may be entitled to purchase the
WRL Freedom Premier in connection with the settlement of litigation against the
Companies and under the terms of the settlement agreement. We call the WRL
Freedom Premier contract that is purchased under these terms an "Enhanced Value
Annuity Contract."
Bankers United Life Assurance Company, one of the Companies, will issue a
premium voucher credit to each qualified applicant ("you") in the amount
determined under the terms of the settlement agreement. You may apply the
premium voucher credit toward the purchase of an Enhanced Value Annuity
Contract. In order to receive the benefit of the premium voucher credit, you
must submit the premium voucher to us no later than the Contract date of the
Enhanced Value Annuity Contract. We will credit the premium voucher credit to
your Enhanced Value Annuity Contract on the Contract date, and we will allocate
the amount of the premium voucher credit in accordance with your premium
allocation schedule, unless you instruct us otherwise.
The premium voucher credit expires five years after the date it is issued. The
premium voucher credit may be transferred to a person or entity in your
immediate family (generally, your spouse, child, stepchild or parent) or any
person in whom you have an insurable interest. The premium voucher credit may
not be redeemed for cash. And premium voucher credits may not be aggregated;
only one voucher may be applied toward the premium of a single Enhanced Value
Annuity Contract.
The premium voucher credit will vest immediately, become part of the Enhanced
Value Annuity Contract's cash value, and is not subject to refund or revocation
by us.
Premiums paid for the Enhanced Value Annuity Contract, other than the premium
paid using the premium voucher credit, must be paid from a source other than a
surrender of, policy loan against, or withdrawal of values from, an existing
insurance product issued by any of the Companies. No money from a tax-qualified
plan or product will be accepted as payment for the Enhanced Value Annuity
Contract, and the Enhanced Value Annuity Contract cannot be issued on a
tax-qualified basis.
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IF YOU ARE A PERSON WHO MAY BE ENTITLED TO PURCHASE AN ENHANCED VALUE ANNUITY
CONTRACT UNDER THE TERMS OF THE SETTLEMENT AGREEMENT, YOU SHOULD CALL THE
BANKERS UNITED CLASS ACTION INFORMATION LINE AT 800-572-0153 FOR ADDITIONAL
INFORMATION.
THIS SUPPLEMENT DOES NOT PROVIDE TAX ADVICE. PURCHASING AN ENHANCED VALUE
ANNUITY CONTRACT MAY HAVE TAX CONSEQUENCES. YOU SHOULD CONSULT WITH YOUR TAX
ADVISER PRIOR TO PURCHASING AN ENHANCED VALUE ANNUITY CONTRACT.
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