AMERICAN GENERAL LIFE INSURANCE COMPANY
SEPARATE ACCOUNT D
WM STRATEGIC ASSET MANAGER
FLEXIBLE PAYMENT VARIABLE AND FIXED INDIVIDUAL DEFERRED ANNUITY
CONTRACTS
SUPPLEMENT DATED JULY 14, 1999
TO
PROSPECTUS DATED APRIL 30, 1999
Effective July 1, 1999, American General Life Insurance Company
("AGL") is updating information in the Portfolio and Underlying
Fund Expenses and the Examples that follow. In addition, Effective
July 12, 1999, WM Funds Distributor, Inc., the distributor of shares
of each Series of the Trust has become distributor of the Contracts.
Prior to July 12, 1999, WM Fund Services, Inc., was distributor of
the Contracts.
1. On page 6, page 7, and the first paragraph of page 8, please
delete all of the information beginning with the section entitled
"PORTFOLIO AND UNDERLYING FUND EXPENSES" and insert in its place
the following:
PORTFOLIO AND UNDERLYING FUND EXPENSES
THE SERIES' ANNUAL EXPENSES (as a percentage of average net assets)
Annual Operating Expenses of the Portfolios and of the Funds (as a
percentage of average net assets)
<TABLE>
<CAPTION>
Annual
Expenses
After Fee
Other Expenses Waivers,
After Reimbursements
Management Fees Reimbursements and
Portfolios After Waivers(1) and Credits (1) Credits (1,2)
<S> <C> <C> <C>
Strategic Growth
Portfolio 0.00% 0.35% 0.35%
Conservative Growth
Portfolio 0.00% 0.35% 0.35%
Balanced Portfolio 0.00% 0.35% 0.35%
Flexible Income
Portfolio 0.00% 0.35% 0.35%
Income Portfolio 0.00% 0.35% 0.35%
Funds
Money Market Fund 0.44% 0.31% 0.75%
Short Term High
Quality Bond Fund 0.50% 0.39% 0.89%
U.S. Government
Securities Fund 0.50% 0.29% 0.79%
Income Fund 0.50% 0.31% 0.81%
Bond & Stock Fund 0.00% 1.50% 1.50%
Growth & Income Fund 0.80% 0.26% 1.06%
Northwest Fund 0.00% 1.50% 1.50%
Growth Fund 0.88% 0.28% 1.16%
<PAGE>
Emerging Growth Fund 0.88% 0.31% 1.19%
International Growth
Fund 0.81% 0.55% 1.36%
</TABLE>
(1) Management Fees, Other Expenses and Annual Expenses are based
on 1998 operating experience, restated to reflect current fees,
voluntary fee waivers, and expense reimbursements. Other
Expenses and Annual Expenses are estimated for the current fiscal
year for each of the Income Portfolio, Bond & Stock Fund, and
Northwest Fund because they had less than 10 months of operating
experience during 1998. Management Fees and Annual Expenses
reflect fee reductions implemented July 1, 1999 for each of the
Money Market Fund, U.S. Government Securities Fund, and Income
Fund. Absent voluntary waivers, Management Fees would have been
0.10% for each of the Portfolios and 0.45%, 0.63%, 0.63% and
0.93% for the Money Market Fund, Bond & Stock Fund, Northwest
Fund, and International Growth Fund, respectively. Absent
reimbursements and credits allowed by the custodian, Other
Expenses would have been 0.70%, 0.47%, 0.44%, 1.41%, 5.27%, 1.86%
and 2.13% for the Strategic Growth Portfolio, Conservative Growth
Portfolio, Balanced Portfolio, Flexible Income Portfolio, Bond
& Stock Fund, and Northwest Fund, respectively. Absent fee
waivers, expense reimbursements and credits allowed by the
custodian, Annual Expenses would have been 0.80%, 0.57%, 0.54%,
1.51%, 5.37%, 0.76%, 0.89%, 0.79%, 0.81%, 2.49%, 1.06%, 2.76%,
1.17%, 1.20%, and 1.48% for the Strategic Growth Portfolio,
Conservative Growth Portfolio, Balanced Portfolio, Flexible
Income Portfolio, Income Portfolio, Money Market Fund, Short
Term High Quality Bond Fund, U.S. Government Securities Fund,
Income Fund, Bond & Stock Fund, Growth & Income Fund,
Northwest Fund, Growth Fund, Emerging Growth Fund, and
International Growth Fund, respectively.
(2) The Annual Expenses of the Portfolios, combined with the
Annual Expenses of the underlying Funds are shown under
"Annual Expenses of the Portfolios and Underlying Funds
Combined," immediately following.
ANNUAL EXPENSES OF THE PORTFOLIOS AND UNDERLYING FUNDS COMBINED
Each Portfolio will invest in Funds of the Trust and in the WM
High Yield Fund (a series of WM Trust I). You will indirectly
bear certain expenses associated with those Funds. The chart
below shows estimated combined annual expenses for each Portfolio
and the Funds in which that Portfolio may invest. The expenses
are based upon estimated expenses of each Portfolio and
underlying Fund for the fiscal year ended December 31, 1998,
restated to reflect current expenses and voluntary waivers.
Please refer to the Trust prospectus for more details.
The estimates assume a constant allocation of each Portfolio's
assets among the Funds identical to such Portfolio's actual
allocation at December 31, 1998.
<TABLE>
<CAPTION>
Combined
Portfolios Annual Expenses (3)
<S> <C>
Strategic Growth Portfolio 1.51%
Conservative Growth Portfolio 1.48%
Balanced Portfolio 1.40%
Flexible Income Portfolio 1.07%
Income Portfolio 1.12%
</TABLE>
<PAGE>
(3)Absent Portfolio and underlying Fund fee waivers, expense
reimbursements and credits allowed by the custodian, the
combined annual expenses for each Portfolio are estimated to
be: Strategic Growth Portfolio, 2.10%; Conservative Growth
Portfolio, 1.78%; Balanced Portfolio, 1.63%; Flexible Income
Portfolio, 2.26%; Income Portfolio, 6.23%.
Example The following expenses (1) would apply to a $1,000 investment
at the end of the applicable time period, if you surrender your
Contract (or if you annuitize under circumstances where you owe a
surrender Charge)(2), and if you assume a 5% annual return on assets:
<TABLE>
<CAPTION>
If all amounts are
invested in one of
the following Series 1 year 3 years 5 years(3) 10 years (3)
<S> <C> <C> <C> <C>
Strategic Growth
Portfolio $82 $103 $135 $214
Conservative Growth
Portfolio $82 $103 $135 $214
Balanced Portfolio $82 $103 $135 $214
Flexible Income
Portfolio $82 $103 $135 $214
Income Portfolio $82 $103 N/A N/A
Money Market Fund $86 $115 $156 $256
Short Term High
Quality Bond Fund $87 $119 $163 $270
U.S. Government
Securities Fund $86 $116 $158 $260
Income Fund $86 $117 $159 $262
Bond & Stock Fund $93 $137 N/A N/A
Growth & Income Fund $89 $124 $171 $287
Northwest Fund $93 $137 N/A N/A
Growth Fund $90 $127 $176 $297
Emerging Growth Fund $90 $128 $178 $300
International Growth
Fund $92 $133 $186 $316
</TABLE>
Example The following expenses (1) would apply to a $1,000
investment at the end of the applicable time period, if you do not
surrender your Contract (or if you annuitize under circumstances
where a surrender charge is not payable) (2), and if you assume a
5% annual return on assets:
<TABLE>
<CAPTION>
If all amounts are
invested in one of
the following Series 1 year 3 years 5 years(3) 10 years (3)
<S> <C> <C> <C> <C>
Strategic Growth
Portfolio $19 $58 $ 99 $214
Conservative Growth
Portfolio $19 $58 $ 99 $214
Balanced Portfolio $19 $58 $ 99 $214
Flexible Income
Portfolio $19 $58 $ 99 $214
Income Portfolio $19 $58 N/A N/A
Money Market Fund $23 $70 $120 $256
Short Term High
Quality Bond Fund $24 $74 $127 $270
U.S. Government
Securities Fund $23 $71 $122 $260
Income Fund $23 $72 $123 $262
Bond & Stock Fund $30 $92 N/A N/A
Growth & Income Fund $26 $79 $135 $287
Northwest Fund $30 $92 N/A N/A
Growth Fund $27 $82 $140 $297
Emerging Growth Fund $27 $83 $142 $300
International Growth
Fund $29 $88 $150 $316
</TABLE>
<PAGE>
___________
(1) The Examples use the current combined annual expenses for the
Portfolios (except for the Income Portfolio, for which expenses are
estimated), which invest in underlying Funds and use current expenses
for the Funds (except for the Bond & Stock and Northwest Funds, for
which expenses are estimated), which do not invest in other Funds of
the Trust.
(2) See "Surrender Charge" for a description of the circumstances
when you may be required to pay the Surrender Charge upon
annuitization.
(3) "N/A" indicates that SEC rules require that the Income Portfolio,
the Bond & Stock Fund and the Northwest Fund complete the Examples for
only the one and three year period.
The examples are not a representation of past or future expenses.
Actual expenses may be greater or less than those shown. The assumed
5% annual rate of return is not an estimate or a guarantee of future
investment performance. The examples assume an estimated average
Account Value of $40,000 for each of the Divisions.
2. On pages 13, 16 and 35, please delete each reference to "WM Fund
Services, Inc.," and insert in its place "WM Funds Distributor,
Inc."
<PAGE>
