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PROVIDIAN LIFE AND HEALTH INSURANCE COMPANY
SEPARATE ACCOUNT V
SUPPLEMENT DATED APRIL 1, 1996
to
SUPPLEMENT DATED February 16, 1996
to
SUPPLEMENT DATED July 1, 1995
to
PROSPECTUS DATED May 1, 1995
for
THE PRISM VARIABLE ANNUITY
Offered by
PROVIDIAN LIFE AND HEALTH INSURANCE COMPANY
(A Missouri Stock Company)
The following sentence is hereby added to the definition of "General Account
Guaranteed Option" contained in the "Glossary" section (which definition appears
on p. 3); to the paragraph under the heading "The Prism Variable Annuity"
contained in the "Highlights" section (which paragraph appears on p. 5); to the
paragraph under the heading "Investment Choices" contained in the "Highlights
section (which paragraph appears on p. 5); and to the first paragraph under the
heading "Allocation of Purchase Payments" contained in the "Contract Features"
section (which paragraph appears on pp. 14-15):
"The General Account Guaranteed Options are available for sale in most, but not
all, states."
* * * * * * * * * *
The first sentence of the definition of "Contract Owner" contained in the
"Glossary" section (which definition appears on p. 3) is hereby revised to read
as follows: "The person or persons designated as the Contract Owner in the
Contract."
* * * * * * * * * *
The first sentence of the paragraph under the heading "How to Invest" contained
in the "Highlights" section (which sentence appears on p. 5) is hereby revised
to read as follows: "To invest in the Contract, please consult your agent who
will provide the necessary information to us in a customer order form or your
completed application or send your completed application to us."
* * * * * * * * * *
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The first and second paragraphs under the heading "Allocation of Purchase
Payments" contained in the "Highlights" section (which paragraphs appear on p.
6) and the second and third paragraphs under the heading "Allocation of Purchase
Payments" contained in the "Contract Features" section (which paragraphs appear
on p. 15) are hereby revised to read as follows:
"If the state of issue of your Contract is CA, GA, ID, LA, MI, MO, NE, NH, NC,
OK, OR, SC, UT, VA or WV, then your initial Net Purchase Payment(s) will, when
your Contract is issued, be invested in CRI Money Market until the expiration of
the Right to Cancel Period (which is assumed for this purpose to be 15 to 35
days (i.e., a 10 to 30 day Right to Cancel Period plus a five day grace period
to allow for mail delivery) or more in some instances as specified in your
Contract after the issuance of your Contract) and then invested according to
your initial allocation instructions (except that any accrued interest will
remain in CRI Money Market if it is selected as an initial allocation option),
provided that you may elect to have the portion of your initial Net Purchase
Payment(s) allocated to the Guaranteed Index Rate Options invested immediately
upon our receipt thereof in order to lock in the rates then applicable to such
options.
If the state of issue of your Contract is any other state, your initial Net
Purchase Payment(s) will, unless you indicate otherwise, be invested in your
Portfolios and Guaranteed Index Rate Options immediately upon our receipt
thereof, IN WHICH CASE YOU WILL BEAR FULL INVESTMENT RISK FOR ANY AMOUNTS
ALLOCATED TO THE PORTFOLIOS DURING THE RIGHT TO CANCEL PERIOD. (Please note that
this automatic investment feature is not yet available in MD, TX or WA. If the
state of issue of your Contract is MD, TX or WA, please check with your agent to
determine the status of your Contract. Also, immediate investment is not
available with respect to any amount allocated to THE FIVE-YEAR GUARANTEED
EQUITY OPTION WHICH IS ILLIQUID FOR FIVE YEARS.)"
* * * * * * * * * *
Subsection (1) of the paragraph under the heading "Right to Cancel Period"
contained in the "Highlights" section (which paragraph appears on p. 6) and
Subsection (1) of the paragraph under the heading "Right to Cancel Period"
contained in the "Contract Features" section (which paragraph appears on p. 14)
are hereby revised to read as follows: "(1) if the state of issue of your
Contract is CA, GA, ID, LA, MI, MO, NE, NH, NC, OK, OR, SC, UT, VA or WV, then
for any amount of your initial Purchase Payment(s) invested in CRI Money Market,
we will return the Accumulated Value of the amount of your Purchase Payment(s)
so invested, or if greater, the amount of your Purchase Payment(s) so
invested,".
* * * * * * * * * *
The first sentence of the paragraph under the heading "Charges and Deductions"
contained in the "Contract Features" section (which sentence appears on p. 15)
is hereby
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revised to read as follows: "You may choose between two charge structures: A
Units or B Units."
* * * * * * * * * *
The first, second and third paragraphs under the heading "Contract Application
and Purchase Payments" contained in the "Contract Features" section (which
paragraphs appear on p. 14) are hereby revised to read as follows:
"If you wish to purchase a Contract, you should consult your agent who will
provide the necessary information to us in a customer order form or your
completed application or send your completed application and initial Purchase
Payment to the address indicated on the application, or to such other location
as the Company may from time to time designate. If you wish to make personal
delivery by hand or courier to the Company of the completed application and
initial Purchase Payment (rather than through the mail), you must do so at our
Administrative Offices at 400 West Market Street, Louisville, KY 40202. The
initial Purchase Payment for a Non-Qualified Contract must be equal to or
greater than the $5,000 minimum investment requirement. The initial Purchase
Payment for a Qualified Contract must be equal to or greater than $2,000 (or you
may establish a payment schedule of $50 a month by payroll deduction).
The Contract will be issued and the initial Purchase Payment less any Premium
Taxes will be credited within two Business Days after acceptance of the customer
order form or application and the initial Purchase Payment. Acceptance is
subject to the customer order form or application being received in good order,
and the Company reserves the right to reject any customer order form,
application or initial Purchase Payment.
If the initial Purchase Payment cannot be credited because the customer order
form or application is incomplete, we will contact you, explain the reason for
the delay and will refund the initial Purchase Payment within five Business
Days, unless you instruct us to retain the initial Purchase Payment and credit
it as soon as the necessary requirements are fulfilled."
* * * * * * * * * *
The first sentence of the first paragraph under the heading "Allocation of
Purchase Payments" contained in the "Contract Features" section (which sentence
appears on p. 14) is hereby revised to read as follows: "You instruct your
agent or specify in the Contract application how your Net Purchase Payments will
be allocated."
* * * * * * * * * *
The second paragraph under the heading "Exchanges among the Portfolios"
contained in the "Contract Features" section (which paragraph appears on p. 18)
is hereby revised to read as follows:
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"To take advantage of the privilege of initiating transactions by telephone, you
must first elect the privilege by completing the appropriate section of the
Contract acknowledgment form, which you will receive with your Contract, or the
application. You may also complete a separate telephone authorization form at a
later date. To take advantage of the privilege of authorizing a third party to
initiate transactions by telephone, you must first complete a third party
authorization form or the appropriate section of the Contract acknowledgment
form."
* * * * * * * * * *
The first sentence of the second paragraph under the heading "Dollar Cost
Averaging Option" contained in the "Contract Features" section (which sentence
appears on p. 21) is hereby revised to read as follows: "This Dollar Cost
Averaging Option may be elected on the customer order form, application or at a
later date."
* * * * * * * * * *
The first sentence of the paragraph under the heading "Designation of an
Annuitant's Beneficiary" contained in the "Contract Features" section (which
sentence appears on p. 22) is hereby revised to read as follows: "The Contract
Owner may select one or more Annuitant's Beneficiaries and name them in the
customer order form or application."
* * * * * * * * * *
The first sentence of the paragraph under the heading "Annuity Date" contained
in the "Contract Features" section (which sentence appears on p. 23) is hereby
revised to read as follows: "You may specify an Annuity Date, which can be no
later than the first day of the month after the Annuitant's 85th birthday,
without the Company's prior approval."
