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Filed Pursuant to Rule 497E
Registration No. 333-25549
AMERICAN GENERAL LIFE INSURANCE COMPANY
SEPARATE ACCOUNT D
WM STRATEGIC ASSET MANAGER
COMBINATION FIXED AND VARIABLE ANNUITY CONTRACTS
SUPPLEMENT DATED AUGUST 21, 1998
TO
PROSPECTUS DATED APRIL 1, 1998
Effective August 21, 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 is found on page 14
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 minimum initial purchase payment required
for Qualified Contracts, the description of the calculation of a higher interest
rate under certain automatic transfer plans, the Annual Contract Fee charged in
North Dakota and the name of an affiliated company which provides services to
AGL.
1. CHANGES WITH RESPECT TO RATINGS INFORMATION ABOUT AGL
ON PAGE 14, UNDER "FINANCIAL AND PERFORMANCE INFORMATION," THE FIRST FOUR
PARAGRAPHS 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.
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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 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 WITH RESPECT TO MINIMUM INITIAL PURCHASE PAYMENT FOR QUALIFIED
CONTRACTS
ON PAGE 11, THE FIRST SENTENCE UNDER "MINIMUM INVESTMENT REQUIREMENTS" IS
DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING:
Your initial purchase payment must be at least $2,000 if you are purchasing
a Qualified Contract, and $5,000 if you are purchasing a Non-Qualified
Contract.
3. CHANGE WITH RESPECT TO TRANSFERS
ON PAGE 21, THE FIFTH PARAGRAPH UNDER "TRANSFERS" IS DELETED IN ITS
ENTIRETY AND REPLACED WITH THE FOLLOWING:
Subject to the above general rules concerning transfers, you may establish
an automatic transfer plan, whereby amounts are automatically transferred
by us from the Money Market Division or the one-year Guarantee Period (or
any other Guarantee Period that is available at that time) to one or more
other Divisions on a monthly, quarterly, semi-annual or annual basis. This
kind of automatic transfer plan is also referred to as a dollar cost
averaging plan, under which the Owner will select the amount to be
transferred and the period of time over which transfers are to occur. We
may offer certain automatic transfer plans to Contract Owners who are not
presently owners of any annuity contract offered by AGL or an affiliate of
AGL. Under such plans, known as "special automatic transfer plans," we
will establish the period of time over which equal monthly transfers will
be made. We may offer a higher Guaranteed Interest Rate than would
otherwise be available for another Guarantee Period of the same duration
that is not offered under a special automatic transfer plan. Any such
higher interest rate will reflect differences in costs or services (due to
such factors as reduced sales expenses or administrative efficiencies
related to transferring amounts to other Divisions on an automatic, rather
than a discretionary, basis) and will not be unfairly discriminatory as to
any person. Transfers under all automatic transfer plans will not count
towards the 12 free transfers each Contract Year, nor incur the $25 charge
on additional transfers, nor will such transfers from the Guarantee Period
be subject to the 25% limitation or the Account Value minimum requirement
described above. See "Contract Issuance and Purchase Payments."
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4. CHANGE WITH RESPECT TO ANNUAL CONTRACT FEE
ON PAGE 30, ADD A SENTENCE AFTER THE FIRST SENTENCE OF THE PARAGRAPH UNDER
"ANNUAL CONTRACT FEE" AS FOLLOWS:
(For Contracts issued in the state of North Dakota, the Fee is $30.)
5. CHANGE OF NAME
THE NAME "AMERICAN GENERAL INDEPENDENT PRODUCER DIVISION," WHICH APPEARS
UNDER "SERVICES AGREEMENT" ON PAGE 40 AND UNDER "LEGAL MATTERS" ALSO ON
PAGE 40 HAS BEEN CHANGED TO "AMERICAN GENERAL LIFE COMPANIES" AND THE
ACRONYM "AGIPD," WHICH APPEARS UNDER "SERVICES AGREEMENT" HAS BEEN CHANGED
TO "AGLC."
