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SUPPLEMENT DATED JULY 1, 1999 TO
PROSPECTUS DATED MAY 1, 1999 FOR
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. INFORMATION FOR THE FOLLOWING UNDERLYING MUTUAL FUNDS CONTAINED IN THE
"UNDERLYING MUTUAL FUND ANNUAL EXPENSES" TABLE LOCATED ON PAGES 7
THROUGH 8 OF YOUR PROSPECTUS, IS AMENDED AS FOLLOWS:
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
<TABLE>
<CAPTION>
(AS A PERCENTAGE OF UNDERLYING MUTUAL FUND AVERAGE NET ASSETS, AFTER EXPENSE REIMBURSEMENT)
- -----------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Morgan Stanley Dean Witter Universal Funds, Inc. - 0.27% 1.03% 0.00% 1.30%
Emerging Markets Debt Portfolio
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NSAT Capital Appreciation Fund 0.58% 0.22% 0.00% 0.80%
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NSAT Government Bond Fund 0.44% 0.22% 0.00% 0.66%
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NSAT Money Market Fund 0.34% 0.21% 0.00% 0.55%
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NSAT Total Return Fund 0.57% 0.21% 0.00% 0.78%
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NSAT Nationwide Small Cap Value Fund 0.47% 0.58% 0.00% 1.05%
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NSAT Nationwide Small Company Fund 1.00% 0.25% 0.00% 1.25%
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Van Eck Worldwide Insurance Trust - Worldwide Emerging 0.69% 0.61% 0.00% 1.30%
Markets Fund
Van Kampen Life Investment Trust - Morgan Stanley Real 1.00% 0.08% 0.00% 1.08%
Estate Securities Portfolio
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</TABLE>
The expenses shown above are deducted by the underlying mutual fund before
it provides Nationwide with the daily net asset value. Nationwide then
deducts applicable variable account charges from the net asset value to
calculate the unit value of the corresponding sub-account. The management
fees and other expenses are more fully described in the prospectus for
each underlying mutual fund. Information relating to the underlying mutual
funds was provided by the underlying mutual funds and not independently
verified by Nationwide.
Some underlying mutual funds are subject to fee waivers and expense
reimbursements. The following chart shows what the expenses would have
been for such funds without fee waivers and expense reimbursements.
<TABLE>
<CAPTION>
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Morgan Stanley Dean Witter Universal Funds, Inc. - 0.80% 1.25% 0.00% 2.05%
Emerging Markets Debt Portfolio
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NSAT Capital Appreciation Fund 0.60% 0.22% 0.00% 0.82%
- -----------------------------------------------------------------------------------------------------------------
NSAT Government Bond Fund 0.50% 0.22% 0.00% 0.72%
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NSAT Money Market Fund 0.40% 0.21% 0.00% 0.61%
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</TABLE>
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<PAGE> 2
<TABLE>
<CAPTION>
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NSAT Total Return Fund 0.59% 0.21% 0.00% 0.80%
- -----------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap Value Fund 0.90% 0.58% 0.00% 1.48%
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Van Eck Worldwide Insurance Trust - Worldwide Emerging 1.00% 0.61% 0.00% 1.61%
Markets Fund
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</TABLE>
2. INFORMATION FOR THE FOLLOWING UNDERLYING MUTUAL FUNDS CONTAINED IN THE
"EXAMPLE" CHART LOCATED ON PAGES 9 THROUGH 11 OF YOUR PROSPECTUS, IS
AMENDED AS FOLLOWS:
The following chart shows the amount of expenses (in dollars) that would be
incurred under this contract assuming a $1,000 investment, 5% annual return, and
no change in expenses. These dollar figures are illustrative only and should not
be considered a representation of past or future expenses. Actual expenses may
be greater or less than those shown below.
The example reflects expenses of both the variable account and the underlying
mutual funds. The example reflects the maximum amount of variable account
charges that could be assessed to a contract (1.45%).
Deductions for premium taxes are not reflected but may apply.
The summary of contract expenses and example are to help contract owners
understand the expenses associated with the contract.
<TABLE>
<CAPTION>
If you surrender your contract If you do not surrender your If you annuitize your contract at
the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
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1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Morgan Stanley Dean Witter 29 88 151 318 29 88 151 318 * 88 151 318
Universal Funds, Inc. -
Emerging Markets Debt
Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
NSAT Capital Appreciation 24 73 125 266 24 73 125 266 * 73 125 266
Fund
- -------------------------------------------------------------------------------------------------------------------------------
NSAT Government Bond Fund 22 68 117 251 22 68 117 251 * 68 117 251
- -------------------------------------------------------------------------------------------------------------------------------
NSAT Money Market Fund 21 65 111 240 21 65 111 240 * 65 111 240
- -------------------------------------------------------------------------------------------------------------------------------
NSAT Total Return Fund 23 72 123 264 23 72 123 264 * 72 123 264
- -------------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap 26 81 138 292 26 81 138 292 * 81 138 292
Value Fund
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NSAT Nationwide Small 28 87 148 313 28 87 148 313 * 87 148 313
Company Fund
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Van Eck Worldwide Insurance 29 88 151 318 29 88 151 318 * 88 151 318
Trust - Worldwide Emerging
Markets Fund
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Van Kampen Life Investment 27 82 139 295 27 82 139 295 * 82 139 295
Trust - Morgan Stanley Real
Estate Securities Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
3. THE FIRST PARAGRAPH OF THE "DOLLAR COST AVERAGING" PROVISION ON PAGE 27 OF
YOUR PROSPECTUS IS AMENDED TO DELETE THE FOLLOWING SENTENCE:
"Contract owners may participate in this program if their contract value
is $15,000 or more."
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