American Legacy III Variable Annuity
Prospectus Supplement
October 12, 1998
THE CONTRACTS - COMMISSIONS on page 15 should be replaced with the
following: Commissions are paid to dealers under different commission options.
These options do not effect the level of charges you incur. The maximum
commission paid as a percentage of purchase payment is 6.25%. Alternate
commission schedules are available with lower initial commission amounts based
on purchase payments, plus ongoing annual compensation of up to 1.00%. At times,
additional sales incentives (up to an annual continuing 0.10% of contract value)
may be provided to dealers maintaining certain sales volume levels. Upon
annuitization, an annual continuing commission of up to 0.80% (or up to 0.90%
for dealers maintaining certain sales volume levels) of statutory reserves can
be paid to dealers. These commissions are not deducted from purchase payments or
contract value; they are paid by us.
