GREAT NORTHERN INSURED ANNUITY CORPORATION
GNA VARIABLE INVESTMENT ACCOUNT
SUPPLEMENT DATED MAY 29, 1997
TO
PROSPECTUS DATED MAY 1, 1997
On or about May 16, 1997, Great Northern Insured Annuity Corporation
("GNA") and several other applicants filed an application with the Securities
and Exchange Commission seeking an order approving the substitution of shares of
certain investment portfolios of GE Investments Funds, Inc. for shares of
certain other investment portfolios of GNA Variable Series Trust and Variable
Investment Trust currently held by various sub-accounts of GNA Variable
Investment Account (the "Account"). To the extent required by law, approvals of
such substitutions will also be obtained from the state insurance regulators in
certain jurisdictions. The effect of such a share substitution would be to
replace certain portfolios of GNA Variable Series Trust and Variable Investment
Trust with those of GE Investments Funds, Inc. as investment options under the
Contracts described in your May 1, 1997 prospectus.
More particularly, GNA proposes to substitute: (1) shares of GE
Investments Funds' Income Fund for shares of GNA Variable Series Trust's
Adjustable Rate Portfolio, (2) shares of GE Investments Funds' Income Fund for
shares of GNA Variable Series Trust's Government Portfolio, (3) shares of GE
Investments Funds' Income Fund for shares of GNA Variable Series Trust's Fixed
Income Portfolio, (4) shares of GE Investments Funds' Premier Growth Fund for
shares of GNA Variable Series Trust's Growth Portfolio, (5) shares of GE
Investments Funds' Value Equity Fund for shares of GNA Variable Series Trust's
Value Portfolio, (6) shares of GE Investments Funds' International Equity Fund
for shares of GNA Variable Series Trust's International Equity Portfolio, (7)
shares of GE Investments Funds' U.S. Equity Fund for shares of GNA Variable
Series Trust's U.S. Equity Portfolio, and (8) shares of GE Investments Funds'
Money Market Fund for shares of GNA Variable Series Trust's Money Market
Portfolio.
The investment objectives of GE Investments Funds' Income Fund, GE
Investments Funds' Premier Growth Fund, GE Investments Funds' Value Equity Fund,
GE Investments Funds' International Equity Fund, GE Investments Funds' U.S.
Equity Fund, and GE Investments Funds' Money Market Fund are summarized below.
Contract owners and prospective purchasers should carefully read the prospectus
for such funds. GNA will send each Contract owner a copy of such prospectuses
before the proposed substitutions are carried out.
GE Investments Funds' Income Fund seeks the maximum level of income
consistent with prudent management and preservation of income by
investing in various types of income-bearing debt securities.
GE Investments Funds' Premier Growth Fund seeks long-term capital
growth as well as future (rather than current) income by investing
primarily in growth-oriented equity securities.
GE Investments Funds' Value Equity Fund seeks long-term capital
appreciation by investing primarily in common stock and other equity
securities that are undervalued by the market and offer above average
capital appreciation potential.
GE Investments Funds' International Equity Fund seeks long-term capital
growth by investing primarily in equity securities of foreign issuers.
GE Investments Funds' U.S. Equity Fund seeks long-term capital growth
by investing primarily in equity securities of U.S. issuers.
GE Investments Funds' Money Market Fund seeks the highest level of
current income consistent with high liquidity and safety of principal
by investing in various types of high quality money market securities.
From the date of this supplement to the date of the proposed
substitutions, each Contract owner will be permitted to make one transfer of all
amounts under a Contract invested in any one of the affected sub-accounts on the
date of the supplement to another sub-account without that transfer counting as
one of the six free transfers permitted in a Contract year or certificate year.
Also, GNA will not exercise any rights reserved under any Contract to impose
additional restrictions on transfers until at least thirty (30) days after the
proposed substitutions.
If the proposed substitutions are carried out, each Contract owner
affected by the substitution will be sent a written notice informing them that
the substitutions were carried out and that they may make one transfer of all
amounts under a Contract invested in any one of the affected sub-accounts on the
date of the notice to another sub-account without that transfer counting as one
of the six free transfers permitted in a Contract year or certificate year.
This supplement should be retained with the Prospectus for
future reference.
