AMERICAN GENERAL LIFE INSURANCE COMPANY
SEPARATE ACCOUNT D
PLATINUM INVESTOR
FLEXIBLE PAYMENT VARIABLE AND FIXED INDIVIDUAL DEFERRED ANNUITY
CONTRACTS
SUPPLEMENT DATED AUGUST 9, 1999 TO
PROSPECTUS DATED MAY 3, 1999
Effective August 9, 1999 and subject to applicable
insurance department approvals, American General Life
Insurance Company Separate Account D, Platinum Investor
Flexible Payment Variable and Fixed Individual Deferred
Annuity Contracts will be changed to (1) eliminate the
requirement in eight states that initial purchase payments
be allocated to the Money Market Division for up to 25 days
after the Contract is issued; (2) correct a typographical
error under "Annuity Payment Options"; and (3) assess
Surrender Charges on any withdrawal allowed by Option 4,
which is described under "Available Annuity Payment
Options," if the withdrawal is not an annuity payment.
1. On page 10 and continuing on page 11, the entire
section "Minimum Investment Requirements" is deleted in its
entirety and replaced with the following:
Minimum Investment Requirements
Your initial purchase payment must be at least $2,000, if
you are buying a Qualified Contract, or $5,000, if you are
buying a Non-Qualified Contract. (See "Federal Income Tax
Matters" for a discussion of the various tax aspects
involved in purchasing Qualified and Non-Qualified
Contracts.) The amount of any subsequent purchase payment
that you make must be at least $100. If your Account Value
falls below $500, we may cancel your Contract and treat it
as a full surrender. We also may transfer funds, without
charge, from a Division (other than the Money Market
Division) or Guarantee Period under your Contract to the
Money Market Division, if the Account Value of that
Division or Guarantee Period falls below $500. (See
"Contract Issuance and Purchase Payments.")
You have a right to examine your Contract for 10 days after
it is delivered. During that time, you can cancel the
Contract and return it to us for a refund. There will be
no Surrender Charge if you cancel your Contract. (See
"Cancellation Right" and "Surrender Charge.") In some
states, the right to cancel the Contract and return it to
us is longer than 10 days.
Special procedure in eight states. Some states require us
to refund an amount equal to your purchase payments. We
follow a special procedure in eight of these states when we
issue a Contract. Currently in Georgia, Hawaii, Idaho,
Michigan, Missouri, Nebraska, Utah, and West Virginia, we
allocate any net purchase payment received before the first
Valuation Date following the 15th day (the 25th day in
Idaho) after the Contract's date of issue as follows:
- Any amount scheduled to be applied to the Fixed
Account will be applied to the Fixed Account; and
- Any amount scheduled to be applied to a Separate
Account Division will be applied to the Money
Market Division. (See "Cancellation Right.")
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On the first Valuation Date following the 15th day (25th
day in Idaho) after the date of issue, the Account Value of
the Money Market Division will be allocated to the Separate
Account Divisions which you selected. The allocation of
net purchase payments (following the 15th or 25th day after
the date of issue) is shown on Page 3 of your Contract, and
will remain in effect until changed by Written Notice.
We have asked each of these eight states to allow us to
discontinue this special procedure. When we receive each
state insurance department approval, we will discontinue
the special procedure in that state. In place of the
special procedure, we will follow your allocation
selections for all net purchase payments.
2. On page 29, the second full paragraph is deleted in
its entirety and replaced with the following:
In Texas, we will proceed differently if you have not
selected an Annuity Payment Option within 10 days before
the Annuity Commencement Date. We will pay you as if you
had elected to receive 120 payments under Annuity Payment
Option 2. (See "Option 2.")
3. On page 30, the entire section "Option 4 - Payments
for a Designated Period" is deleted in its entirety and
replaced with the following:
Option 4 - Payments for a Designated Period - We make
annuity payments monthly to an Annuitant or other
properly-designated payee, or at his or her death, to the
Beneficiary, for a selected number of years ranging from
five to 40. If this option is selected on a variable
basis, the designated period may not exceed the life
expectancy of the Annuitant or other properly-designated
payee.
A payee who receives Variable (but not Fixed) Annuity
Payments under Option 4 can elect at any time to withdraw
all or a portion of the value of the remaining Variable
Annuity Payments. You (if you are the payee) will receive
one payment for the withdrawal. We calculate the value of
any remaining Variable Annuity Payments under Option 4 by
assuming that each payment is equal and by discounting each
payment to the present at an annual rate of 3.5% (the
"assumed amount"). We calculate the "assumed amount" of
each remaining payment as of the end of the Valuation
Period in which we receive your Written request for a
withdrawal.
Under Option 4, each time you withdraw a portion of the
value of your Variable Annuity Payments, the remaining
Variable Annuity Payments will all be reduced
proportionately. If you elect to withdraw all of the value
of your Variable Annuity Payments, such payments cease.
The Contract terminates at that time unless we will owe you
Fixed Annuity Payments.
We have asked each state for permission to assess a
Surrender Charge on amounts you withdraw under Option 4
that are not annuity payments. If you buy a Contract after
we receive applicable insurance department approval, any
amount you withdraw under this option will be considered a
withdrawal subject to any applicable Surrender Charge.
These withdrawals will not qualify for any exception to
Surrender Charges or for any free withdrawal privilege.
(See "Surrender Charge.")
