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GENERAL AMERICAN LIFE INSURANCE COMPANY
PROSPECTUS SUPPLEMENT
DATED DECEMBER 28, 1999
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
FORM NUMBERS GMK99083-10, GMK99083-11
These pages supplement General American Life Insurance Company's
prospectus dated May 1, 1999 for the Flexible Premium Variable Life
Insurance Policy. Please review this supplement and keep it with your
prospectus and other important papers related to your policy. Please
contact your Agent / Registered Representative if you have any questions
regarding this information.
THE RUSSELL INSURANCE FUNDS ARE NOT AVAILABLE FOR POLICIES ISSUED ON OR
AFTER JANUARY 1, 2000. AS A RESULT, POLICIES ISSUED ON OR AFTER JANUARY
1, 2000 CANNOT ALLOCATE PREMIUMS TO THE RUSSELL INSURANCE FUNDS. THE
FOLLOWING PAGES REPLACE AND SUPPLEMENT PORTIONS OF THE PROSPECTUS TO
REFLECT THIS CHANGE. POLICIES WITH AN EFFECTIVE DATE PRIOR TO JANUARY
1, 2000 WILL CONTINUE TO HAVE ACCESS TO THE RUSSELL INSURANCE FUNDS AND
CAN CONTINUE TO ALLOCATE PREMIUMS INTO AND OUT OF THE RUSSELL INSURANCE
FUNDS. THIS SUPPLEMENT DOES NOT CHANGE THE OTHER FUNDS THAT ARE
AVAILABLE UNDER YOUR POLICY.
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THE FOLLOWING INFORMATION REPLACES THE SECTION TITLED "THE SEPARATE
ACCOUNT" IN THE SUMMARY SECTION OF YOUR PROSPECTUS.
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THE SEPARATE ACCOUNT. The separate account consists of divisions, which
represent different types of investments. Each division may either make
money or lose money. Therefore if you invest in a division of the
separate account, you may either make money or lose money, depending on
the investment experience of that division. There is no guaranteed rate
of return in the separate account.
The divisions of the separate account represent investment funds run by
various investment companies. The investment companies hire advisers to
operate or advise on the day-to-day operation of the funds. The
following list shows the investment companies whose funds are available
under the policy, along with the managers or advisers and the divisions
that they oversee.
NOTE: THE RUSSELL INSURANCE FUNDS ARE ONLY AVAILABLE ON POLICIES WITH
AN ISSUE DATE PRIOR TO JANUARY 1, 2000.
<TABLE>
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<CAPTION>
INVESTMENT COMPANY INVESTMENT MANAGER/ADVISER
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<S> <C>
General American Capital Company Conning Asset Management Company
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Russell Insurance Funds Frank Russell Investment Management Company
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American Century Variable Portfolios American Century Investment Management, Inc.
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J.P. Morgan Series Trust II J.P. Morgan Investment Management, Inc.
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Fidelity Investments Variable Insurance
Products Fund Fidelity Management & Research Company
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Fidelity Investments Variable Insurance
Products Fund II Fidelity Management & Research Company
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Van Eck Worldwide Insurance Trust Van Eck Associates Corporation
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</TABLE>
These investment funds have different investment goals and strategies,
which we have summarized in the following table. You should review the
prospectus of each fund, or seek professional guidance in determining
which fund(s) best meet your objectives.
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<TABLE>
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<CAPTION>
INVESTMENT FUND INVESTMENT OBJECTIVE
---------- ---- ---------- ---------
MANAGER NAME TYPE
------- ---- ----
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<S> <C> <C> <C>
Conning
Asset Management
Company S&P 500 Index Fund Growth & Income To achieve a rate of return that parallels the return of
the stock market as a whole, as represented by the
Standard and Poor's 500 Stock Index.
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Conning
Asset Management
Company Money Market Fund Money Market To obtain the highest level of current income consistent
with the preservation of capital and maintenance of
liquidity.
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Conning
Asset Management
Company Bond Index Fund Corporate Bonds To provide a rate of return that reflects the
performance of the bond market as a whole, as measured
by the Lehman Brothers Government/Corporate Bond Index.
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Conning
Asset Management
Company Asset Allocation Fund Balanced To obtain a high rate of long-term return composed of
capital growth and income.
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Conning
Asset Management
Company Managed Equity Fund Growth To obtain long-term capital growth through investment in
common stocks.
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Conning
Asset Management
Company International Index Fund Growth:
International Stock To obtain investment results that parallel the price and
yield performance of publicly traded common stocks in
the Morgan Stanley Capital International, Europe,
Australia, and Far East Index ("EAFE Index").
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Conning
Asset Management
Company Mid-Cap Equity Fund Growth To obtain long-term capital appreciation through
investment primarily in common stocks of U.S.-based,
publicly traded companies with medium market
capitalization, defined as within the range of the S&P
Mid-Cap 400 at the time of the Fund's investment.
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Conning
Asset Management
Company Small-Cap Equity Fund Aggressive Growth To provide a high rate of return through investment in
the common stock of small companies, making up, at one
time, the smallest 20% of U.S.-based companies on the
New York Stock Exchange.
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Fidelity Management
& Research Company Growth Portfolio Growth To seek capital appreciation, normally through purchases
of common stocks, although its investments are not
restricted to any one type of security.
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Fidelity Management
& Research Company Equity-Income
Portfolio Growth & Income To seek reasonable income by investing primarily in
income-producing equity securities.
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Fidelity Management
& Research Company Overseas Portfolio Growth:
International Stock To seek long-term growth of capital primarily through
investment in foreign securities.
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Fidelity Management
& Research Company Asset Manager
Portfolio Balanced To seek a high total return with reduced risk over the
long-term by allocating its assets among domestic and
foreign stocks, bonds, and short-term fixed income
instruments.
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2
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<CAPTION>
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INVESTMENT FUND INVESTMENT OBJECTIVE
---------- ---- ---------- ---------
MANAGER NAME TYPE
------- ---- ----
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<S> <C> <C> <C>
Fidelity Management
& Research Company High Income
Portfolio High Yield Bond To seek a high level of current income by investing
primarily in high yielding, lower-rated, fixed income
securities, while also considering growth of capital.
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Van Eck Associates
Corporation Worldwide Hard
Assets Fund Aggressive Growth:
Specialty To seek long-term capital appreciation by investing in
equity and debt securities of companies engaged in the
exploration, development, production, and distribution
of gold and other natural resources such as strategic
and other metals, minerals, forest products, oil,
natural gas, and coal.
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Van Eck Associates
Corporation Worldwide Emerging
Markets Fund Aggressive Growth:
International Stock To obtain long-term capital appreciation by investing in
equity securities in emerging markets around the world.
The Fund emphasizes primarily investment in countries
that, compared to the world's major economies, exhibit
relatively low gross national product per capita, as
well as the potential for rapid economic growth.
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Frank Russell
Investment Management
Company
[ONLY AVAILABLE ON
POLICIES ISSUED
BEFORE 1/1/2000.] Multi-Style
Equity Fund Growth & Income To obtain income and capital growth by investing
principally in equity securities.
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Frank Russell
Investment Management
Company
[ONLY AVAILABLE ON
POLICIES ISSUED
BEFORE 1/1/2000.] Aggressive Equity
Fund Aggressive Growth To provide capital appreciation by assuming a higher
level of volatility than is ordinarily expected from the
Multi-Style Equity Fund, by investing in equity
securities.
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Frank Russell
Investment Management
Company
[ONLY AVAILABLE ON
POLICIES ISSUED
BEFORE 1/1/2000.] Non-U.S. Fund Growth:
International Stocks
and Bonds To achieve favorable total return and additional
diversification for United States investors by investing
primarily in equity and debt securities of non-United
States companies and non-United States governments.
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Frank Russell
Investment Management
Company
[ONLY AVAILABLE ON
POLICIES ISSUED
BEFORE 1/1/2000.] Core Bond Fund Growth & Income To maximize total return through capital appreciation
and income by assuming a level of volatility consistent
with the broad fixed-income market, by investing in
fixed-income securities.
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J.P. Morgan
Investment Management,
Inc. Bond Portfolio Growth & Income To provide a high total return consistent with moderate
risk of capital and maintenance of liquidity.
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3
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<CAPTION>
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INVESTMENT FUND INVESTMENT OBJECTIVE
---------- ---- ---------- ---------
MANAGER NAME TYPE
------- ---- ----
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<S> <C> <C> <C>
J.P. Morgan
Investment Management,
Inc. Small Company
Portfolio Aggressive Growth To provide high total return from a portfolio of equity
securities of small companies. The Fund invests at
least 65% of the value of its total assets in the common
stock of small U.S. companies primarily with market
capitalizations less than $1 billion.
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American Century
Investment Management,
Inc. Income & Growth
Fund Growth & Income To attain long-term growth of capital as well as current
income. The Fund pursues a total return and dividend
yield that exceeds those of the S&P 500 by investing in
stocks of companies with strong dividend growth
potential.
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American Century
Investment Management,
Inc. International Fund Aggressive Growth:
International Stock To obtain capital growth over time by investing in
common stocks of foreign companies considered to have
better-than-average prospects for appreciation. Because
this Fund invests in foreign securities, a higher degree
of short-term price volatility, or risk, is expected due
to factors such as currency fluctuation and political
instability.
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American Century
Investment Management,
Inc. Value Fund Growth To attain long-term capital growth, with income as a
secondary objective. The Fund invests primarily in
equity securities of well-established companies that are
believed by management to be undervalued at the time of
purchase.
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</TABLE>
You may change the investments that you want to use for your future
premiums by notifying our Home Office. You may transfer your cash value
among the various investment funds, and you may withdraw money, but
there are certain rules. We don't charge you a transaction fee for the
first twelve transfers or withdrawals in a policy year, but we charge a
$25 fee for each transfer or withdrawal after the first twelve. (A
policy year is measured beginning on the anniversary of the date that
the policy was issued, and ending on the day before the next
anniversary.)
We have the right to change or eliminate transfers in the future,
although we don't currently intend to do so.
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THE FOLLOWING INFORMATION REPLACES THE TABLE TITLED "ANNUAL FUND
OPERATING EXPENSES" IN THE SUMMARY SECTION OF YOUR PROSPECTUS.
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<TABLE>
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ANNUAL FUND OPERATING EXPENSES <F1>
As a Percentage of Average Net Assets
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<CAPTION>
INVESTMENT
ADVISORY /
MANAGEMENT
FUND FEE OTHER EXPENSES TOTAL
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GENERAL AMERICAN CAPITAL COMPANY
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<S> <C> <C> <C>
S&P 500 Index Fund .25% .05% .30%
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Money Market Fund .125% .08% .205%
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Bond Index Fund .25% .05% .30%
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Managed Equity Fund .40% <F2> .10% .50%
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Asset Allocation Fund .50% .10% .60%
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International Index Fund .50% <F3> .30% .80%
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Mid-Cap Equity Fund .55% <F4> .10% .65%
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Small-Cap Equity Fund .25% .05% .30%
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<CAPTION>
RUSSELL INSURANCE FUNDS
(Amounts shown are after fee waivers and expense reimbursements described below.)
THE RUSSELL INSURANCE FUNDS ARE AVAILABLE ONLY ON POLICIES WITH AN ISSUE DATE PRIOR TO JANUARY 1, 2000.
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<S> <C> <C> <C>
Multi-Style Equity Fund .09% <F5> .83% .92% <F5>
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Aggressive Equity Fund .00% <F6> 1.25% 1.25% <F6>
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Non-U.S. Fund .00% <F7> 1.30% 1.30% <F7>
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Core Bond Fund .00% <F8> .80% .80% <F8>
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<CAPTION>
AMERICAN CENTURY VARIABLE PORTFOLIOS
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<S> <C> <C> <C>
Income & Growth Fund .70% .00% .70%
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International Fund 1.50% .00% 1.50%
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Value Fund 1.00% .00% 1.00%
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<CAPTION>
J.P. MORGAN SERIES TRUST II
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<S> <C> <C> <C>
Bond Portfolio .30% .45% .75%
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Small Company Portfolio .60% .55% 1.15%
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<CAPTION>
VARIABLE INSURANCE PRODUCTS FUND
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<S> <C> <C> <C>
Equity-Income Portfolio .50% .08% .58%
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Growth Portfolio .60% .09% .69%
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Overseas Portfolio .75% .17% .92%
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High Income Portfolio .59% .12% .71%
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<CAPTION>
VARIABLE INSURANCE PRODUCTS FUND II
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<S> <C> <C> <C>
Asset Manager .55% .10% .65%
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<CAPTION>
VAN ECK WORLDWIDE INSURANCE TRUST
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<S> <C> <C> <C>
Worldwide Hard Assets Fund 1.00% .00% 1.00%
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Worldwide Emerging Markets Fund 1.50% .00% 1.50%
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<FN>
<F1> The Fund expenses shown above are collected from the underlying
Fund, and are not direct charges against the Separate Account assets or
reductions from the Policy's Cash Value. These underlying Fund Expenses
are taken into consideration in computing each Fund's net asset value,
which is used to calculate the unit values in the Separate Account. The
management fees and other expenses are more fully described in the
prospectus of each individual Fund. The information relating to the
Fund expenses was provided by the Fund and was not independently
verified by General American. Except as otherwise specifically noted,
the management fees and other expenses are not currently subject to fee
waivers or expense reimbursements.
<F2> The fees charged by the Managed Equity Fund are stated as a series
of annual percentages of the average daily value of the net assets of
the Fund. The percentages decrease with respect to assets of the Fund
above certain amounts, as follows: First $10 million, 0.40%; Next $20
million, 0.30%; Balance over $30 million, 0.25%.
<F3> The fees charged by the International Index Fund are stated as a
series of annual percentages of the average daily value of the net
assets of the Funds. The percentages decrease with respect to assets of
the Fund above certain amounts, as follows: First $10 million, 0.50%;
Next $20 million, 0.40%; Balance over $20 million, 0.30%.
<F4> The fees charged by the Mid-Cap Equity Fund are stated as a series
of annual percentages of the average daily value of the net assets of
the Funds. The percentages decrease with respect to assets of the Fund
5
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above certain amounts, as follows: First $10 million, 0.55%; Next $10
million, 0.45%; Balance over $20 million, 0.40%.
<F5> The Manager has voluntarily agreed to waive a portion of its 0.78%
management fee, up to the full amount of that fee, equal to the amount
by which the Fund's total operating expenses exceed 0.92% of the Fund's
average daily net assets on an annual basis, and to reimburse the Fund
for all remaining expenses after fee waivers which exceed 0.92% of
average daily net assets on an annual basis. The management fee waivers
and reimbursements are intended to be in effect for 1999, but may be
revised or eliminated at any time thereafter without notice to
shareholders. Absent the waiver, the management fee would have been
0.78%, and total Fund expenses would have been 1.61% of average daily
net assets.
<F6> The Manager has voluntarily agreed to waive a portion of its 0.95%
management fee, up to the full amount of that fee, equal to the amount
by which the Fund's total operating expenses exceed 1.25% of the Fund's
average daily net assets on an annual basis, and to reimburse the Fund
for all remaining expenses after fee waivers which exceed 1.25% of
average daily net assets on an annual basis. The management fee waivers
and reimbursements are intended to be in effect for 1999, but may be
revised or eliminated at any time thereafter without notice to
shareholders. Absent the waiver, the management fee would have been
0.95%, other expenses would have been 1.27%, and total Fund expenses
would have been 2.22% of average daily net assets.
<F7> The Manager has voluntarily agreed to waive a portion of its 0.95%
management fee, up to the full amount of that fee, equal to the amount
by which the Fund's total operating expenses exceed 1.30% of the Fund's
average daily net assets on an annual basis, and to reimburse the Fund
for all remaining expenses after fee waivers which exceed 1.30% of
average daily net assets on an annual basis. The management fee waivers
and reimbursements are intended to be in effect for 1999, but may be
revised or eliminated at any time thereafter without notice to
shareholders. Absent the waiver, the management fee would have been
0.95%, other expenses would have been 2.70%, and total Fund expenses
would have been 3.65% of average daily net assets.
<F8> The Manager has voluntarily agreed to waive a portion of its 0.60%
management fee, up to the full amount of that fee, equal to the amount
by which the Fund's total operating expenses exceed 0.80% of the Fund's
average daily net assets on an annual basis, and to reimburse the Fund
for all remaining expenses after fee waivers which exceed 0.80% of
average daily net assets on an annual basis. The management fee waivers
and reimbursements are intended to be in effect for 1999, but may be
revised or eliminated at any time thereafter without notice to
shareholders. Absent the waiver, the management fee would have been
0.60%, other expenses would have been 1.70%, and total Fund expenses
would have been 2.30% of average daily net assets.
</TABLE>
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