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AMERICAN GENERAL LIFE INSURANCE COMPANY
SEPARATE ACCOUNT D
SELECT RESERVE(SM)
COMBINATION FIXED AND VARIABLE DEFERRED ANNUITY CONTRACTS
SUPPLEMENT DATED AUGUST 28, 1998
TO
PROSPECTUS DATED MAY 1, 1998
Effective August 28, 1998, American General Life Insurance Company ("AGL")
is updating information with regard to ratings it receives from certain
organizations which review and rate the financial status and claims-paying
ability of insurance companies. The discussion about ratings begins on page 11
of the prospectus. The A++ (Superior) rating from the A. M. Best Company was
lowered to A+ (Superior) on June 15, 1998. The ratings from the A. M. Best
Company, Standard & Poor's Corporation and Duff & Phelps Credit Rating Co. are
subject to change from time to time. Therefore, AGL is discontinuing its prior
practice and will no longer publish ratings in the prospectus. However, current
ratings may be reflected from time to time in any advertising about the
Contracts, as well as in any reports which publish such ratings.
In addition, AGL is changing the name of an affiliated company which
provides services to AGL.
1. CHANGES WITH RESPECT TO RATINGS INFORMATION ABOUT AGL
ON PAGE 11, THE FOUR PARAGRAPHS UNDER "FINANCIAL RATINGS" ARE DELETED IN
THEIR ENTIRETY AND REPLACED WITH THE FOLLOWING:
AGL may also advertise or report to Owners its ratings as an insurance
company by the A. M. Best Company. Each year, A. M. Best reviews the
financial status of thousands of insurers, culminating in the assignment of
Best's Ratings. These ratings reflect their current opinion of the
relative financial strength and operating performance of an insurance
company in comparison to the norms of the life/health industry. Best's
Ratings range from A++ to F.
In addition, the claims-paying ability of AGL as measured by the Standard &
Poor's Corporation may be referred to in advertisements or in reports to
Owners. A Standard & Poor's insurance claims-paying ability rating is an
assessment of an operating insurance company's financial capacity to meet
the obligations of its insurance policies in accordance with their terms.
Standard & Poor's ratings range from AAA to D.
AGL may additionally advertise its rating from Duff & Phelps Credit Rating
Co. A Duff & Phelps rating is an assessment of a company's insurance
claims paying ability. Duff & Phelps ratings range from AAA to CCC.
Current ratings from A. M. Best, Standard & Poor's, and Duff & Phelps may
be reflected from time to time in any advertising about the Contracts, as
well as in any reports which
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publish such ratings. The ratings reflect the claims paying ability and
financial strength of AGL. They are not a rating of investment performance
that purchasers of insurance products have experienced or are likely to
experience in the future.
2. CHANGE OF NAME
THE NAME "AMERICAN GENERAL INDEPENDENT PRODUCER DIVISION," WHICH APPEARS
UNDER "SERVICES AGREEMENT" ON PAGE 36 HAS BEEN CHANGED TO "AMERICAN GENERAL
LIFE COMPANIES" AND THE ACRONYM "AGIPD," WHICH APPEARS UNDER "SERVICES
AGREEMENT" AND UNDER "LEGAL MATTERS" ON PAGE 37, HAS BEEN CHANGED TO
"AGLC."
