AMERICAN GENERAL LIFE INSURANCE COMPANY
SEPARATE ACCOUNT D
WM ADVANTAGE
FLEXIBLE PAYMENT VARIABLE AND FIXED
INDIVIDUAL DEFERRED ANNUITY CONTRACTS
SUPPLEMENT DATED DECEMBER 31, 1999
TO
PROSPECTUS DATED JULY 12, 1999
Effective December 31, 1999, all American
General Life Insurance Company Separate
Account D, WM Advantage Flexible Payment
Variable and Fixed Individual Deferred
Annuity Contracts will be changed to reflect
a revision in the method used to calculate
death proceeds. The revised method affects
Contracts under which the Annuitant or the
Owner dies before the Annuity Commencement
Date. The revision in the method used to
calculate death proceeds is subject to
applicable state insurance department
approvals.
Beginning on page 36 and continuing
through the first two paragraphs of
page 37, please delete all of the
information which precedes the heading
"Death Proceeds After the Annuity
Commencement Date" and insert in
its place the following:
DEATH PROCEEDS
Death Proceeds Before the Annuity
Commencement Date
The death proceeds described below are
payable to the Beneficiary under the
Contract if any of the following events
occurs before the Annuity Commencement Date:
o the Annuitant dies, and no Contingent
Annuitant has been named under a Non-
Qualified Contract;
o the Annuitant dies, and we also receive
proof of death of any named Contingent
Annuitant; or
o the Owner (including the first to die
in the case of joint Owners) of a Non-
Qualified Contract dies, regardless of
whether the deceased Owner was also the
Annuitant. (However, if the Beneficiary
is the Owner's surviving spouse, the
surviving spouse may elect to continue
the Contract as described later in this
Section).
If the deceased Annuitant or Owner had not
reached age 85 on December 31, 1999, the
death proceeds, before deduction of any
premium taxes and other applicable taxes,
will equal the greatest of:
o the sum of all net purchase payments
made, reduced by all partial
withdrawals;
o the Owner's Account Value as of the end
of the Valuation Period in which we
receive, at our Home Office, proof of
death and a Written request as to the
manner of payment;
o the Owner's Account Value on December
31, 1999, plus the sum of all net
purchase payments made after December
31, 1999, reduced by all subsequent
partial withdrawals made after December
31, 1999;
o the Owner's Account Value as of the
fifth Contract Anniversary that
occurred before December 31, 1999,
reduced by all subsequent partial
withdrawals; or
o the "highest anniversary value" before
the date of death, as defined below.
If a state does not allow us to offer the
third, fourth or fifth amount described
above, we will pay the greater of the first
or second options. We pay the greater of the
first or second options if the deceased
Annuitant or Owner had reached age 85 on or
before December 31, 1999.
The highest anniversary value before the
date of death will be determined as follows:
(a) First, we will calculate the Account
Values at the end of each of the past
Contract Anniversaries that occurs between
December 31, 1999 and the deceased's 85th
birthday;
(b) Second, we will increase each of these
Account Values by the amount of net purchase
payments the Owner has made since the end of
such Contract Anniversaries; and
(c) Third, we will reduce the result by the
amount of any withdrawals the Owner has made
since the end of such Contract
Anniversaries.
The highest anniversary value will be an
amount equal to the highest of such
values. Net purchase payments are
purchase payments less applicable taxes
deducted at the time the purchase
payments are made.
The death proceeds become payable to the
Beneficiary when we receive:
o proof of the Owner's or Annuitant's
death, and
o a Written request from the Beneficiary
specifying the manner of payment.
If the Owner has not already done so, the
Beneficiary may, within 60 days after the
date the death proceeds become payable,
elect to receive the death proceeds as (1) a
single sum or (2) in the form of one of the
Annuity Payment Options provided in the
Contract. (See "Annuity Payment Options.")
If we do not receive a request specifying
the manner of payment, we will make a single
sum payment, based on values we determine at
that time.
If the Owner (including the first to die if
there are joint Owners) under a Non-
Qualified Contract dies before the Annuity
Commencement Date, we will distribute all
amounts payable under the Contract in
accordance with the following rules:
o We will distribute all amounts:
(a) within five years of the date of death,
or
(b)if the Beneficiary elects, as
annuity payments, beginning within one
year of the date of death and
continuing over a period not extending
beyond the life or life expectancy of
the Beneficiary.
o If the Beneficiary is the Owner's
surviving spouse, the spouse may elect
to continue the Contract as the new
Owner. If the original Owner was the
Annuitant, the surviving spouse may
also elect to become the new Annuitant.
o If the Owner is not a natural person,
these distribution requirements apply
at the death of the primary Annuitant,
within the meaning of the Code. Under a
parallel section of the Code, similar
requirements apply to retirement plans
for which we issue Qualified Contracts.
Failure to satisfy the requirements
described in this Section may result in
serious adverse tax consequences.
