<PAGE>
SUPPLEMENT DATED OCTOBER 1, 1997 TO
PROSPECTUS DATED MAY 1, 1997 FOR
INDIVIDUAL MODIFIED SINGLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACTS
ISSUED BY
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
THROUGH ITS
NATIONWIDE VA SEPARATE ACCOUNT-B
This Supplement updates certain information contained in your Prospectus.
Please read it and keep it with your Prospectus for future reference.
1. Effective November 1, 1997, the "UNDERLYING MUTUAL FUND ANNUAL EXPENSES"
provision of the Prospectus is amended by changing the Management Fees and
Other Expenses of the following Nationwide Separate Account Trust
underlying Mutual Fund options:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Management Other Expenses Total Mutual
Fees Fund Expenses
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Nationwide Separate Account Trust - Capital 0.65% 0.03% 0.68%
Appreciation Fund
- ---------------------------------------------------------------------------------------------------
Nationwide Separate Account Trust - Total Return 0.65% 0.02% 0.67%
Fund
- ---------------------------------------------------------------------------------------------------
Nationwide Separate Account Trust - Government 0.55% 0.02% 0.57%
Bond Fund
- ---------------------------------------------------------------------------------------------------
Nationwide Separate Account Trust - Money Market 0.45% 0.02% 0.47%
Fund
- ---------------------------------------------------------------------------------------------------
</TABLE>
2. Effective November 1, 1997, the "EXAMPLE" in the Prospectus is amended to
reflect the following information:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
If you surrender your If you do not surrender If you annuitize your
Contract at the end of the your Contract at the end of Contract at the end of the
applicable time period the applicable time period applicable time period
- ---------------------------------------------------------------------------------------------------------------------------
1 3 5 10 1 3 5 10 1 3 5 10
Yr. Yrs. Yrs. Yrs. Yr. Yrs. Yrs. Yrs. Yr. Yrs. Yrs. Yrs.
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Nationwide Separate
Account Trust - Capital 22 69 118 254 22 69 118 254 * 69 118 254
Appreciation Fund
- ---------------------------------------------------------------------------------------------------------------------------
Nationwide Separate
Account Trust - Total Return 22 69 118 253 22 69 118 253 * 69 118 253
Fund
- ---------------------------------------------------------------------------------------------------------------------------
Nationwide Separate
Account Trust - Government 21 65 112 242 21 65 112 242 * 65 112 242
Bond Fund
- ---------------------------------------------------------------------------------------------------------------------------
Nationwide Separate
Account Trust - Money 20 62 107 231 20 62 107 231 * 62 107 231
Market Fund
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
2. The "DOLLAR COST AVERAGING" provision of the prospectus is amended
effective November 3, 1997 by replacing the first paragraph of such
provision with the following:
DOLLAR COST AVERAGING - If the Contract Value is $15,000 or more, the
Contract Owner may direct the Company to automatically transfer a specified
amount from the Nationwide Separate Account Trust (NSAT) Government Bond
Fund, NSAT Money Market Fund or the Neuberger & Berman Advisers Management
Trust (AMT) Limited Maturity Bond Portfolio to any other Sub-Account within
the Variable Account on a monthly basis or as frequently as otherwise
authorized by the Company. This service is intended to allow the Contract
Owner to utilize Dollar Cost Averaging, a long-term investment program
which provides for regular, level investments over time. The Company makes
no guarantees that Dollar Cost Averaging will result in a profit or protect
against loss in a declining market. The minimum monthly Dollar Cost
Averaging transfer is $100. A written election of this service, on a form
provided
<PAGE>
by the Company, must be completed by the Contract Owner in order to begin
transfers. Once elected, transfers from the NSAT Government Bond Fund,
NSAT Money Market Fund or the Neuberger & Berman AMT Limited Maturity Bond
Portfolio will be processed monthly or on another approved frequency until
either the value in such funds is depleted or the Contract Owner instructs
the Company in writing to cancel the transfers.
4. The following information is added to the "FEDERAL TAX CONSIDERATIONS"
section as the second provision:
PUERTO RICO
Under the Puerto Rico tax code, Distributions prior to Annuitization
are treated as nontaxable return of principal until the principal is fully
recovered; thereafter, all Distributions are fully taxable. Distributions
after Annuitization are treated as part taxable income and part nontaxable
return of principal. The amount excluded from gross income after
Annuitization is equal to the amount of the Distribution in excess of 3% of
the total Purchase Payments paid, until an amount equal to the total
Purchase Payments paid has been excluded; thereafter, the entire
Distribution is included in gross income. Puerto Rico does not impose an
early withdrawal penalty tax. Generally, Puerto Rico does not require
income tax to be withheld from Distributions of income. A personal tax
advisor should be consulted.
5. Effective July 11, 1997, the Van Kampen American Capital Life Investment
Trust - Real Estate Securities Portfolio (formerly, "Van Kampen American
Capital Life Investment Trust - Real Estate Securities Fund") changed its
name to the following:
VAN KAMPEN AMERICAN CAPITAL LIFE INVESTMENT TRUST -
MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO
Accordingly, any and all references in the Prospectus are amended to
reflect this name change.
6. The portfolio manager for the Warburg Pincus Trust is changing from
Warburg, Pincus Counsellors, Inc. to Warburg Pincus Asset Management, Inc.
effective October 15, 1997. Accordingly, any and all references in the
Prospectus are amended to reflect this change.
