Filed Pursuant to Rule 497(e)
File Number 33-78812
GREAT NORTHERN INSURED ANNUITY CORPORATION
SUPPLEMENT DATED NOVEMBER 24, 1998
TO THE PROSPECTUS
DATED MAY 1, 1998
FOR THE GROUP DEFERRED VARIABLE ANNUITY AND
MODIFIED GUARANTEED ANNUITY CONTRACT
Form 6193-93-02
Form 6190-93-02
Offered by
GREAT NORTHERN INSURED ANNUITY CORPORATION
6604 West Broad Street
Richmond, VA 23230
(804) 281-6000
The purpose of this Supplement is to make certain changes to your prospectus
regarding the market value adjustment. Please add or replace the following as
indicated:
On page 16 in the "Market Value Adjustment" subsection in the "Accumulation
Provisions" section:
Add the following sentence after the third sentence in the third
paragraph:
However, a negative market value adjustment will not exceed an amount
that would reduce the credited interest on a Fixed Guarantee Period
below an effective rate of 3% per year determined from the date we
established the relevant Fixed Guarantee Period to the date of the
transfer or payment (the "Negative Market Value Adjustment Floor").
On page 17 add the following paragraph after the sixth paragraph:
In the first example, assume the initial account value in the Fixed
Guarantee Period was $7,912.23 ($7,912.23 with interest credited at
5.0% for 4.8 years equals $10,000) and that no withdrawals or transfers
have been previously taken. The Negative Market Value Adjustment Floor
requires that the net payment (assuming no surrender charge) at least
equal the initial account value in the Fixed Guarantee Period with
interest credited at a rate of 3.0% per year ($7,912.23 with interest
credited at 3% per year for 4.8 years equals $9,118.23). The amount of
the Negative Market Value Adjustment Floor is the difference between
this minimum required net payment and the amount withdrawn ($9,118.23 -
$10,000 = -$881.77). In this example, the Negative Market Value
Adjustment Floor does not affect the amount of the market value
adjustment.
On page 17 add the following sentence after the second sentence in the
seventh paragraph:
However, at the 7% and 8% levels the Negative Market Value Adjustment
Floor would apply and the amount of the market value adjustment would
be limited to -$881.77.
<PAGE>
On page 41 delete Appendix B and replace it with the following:
Market Value Adjustments, Withdrawal Charges and Net Sub-account
Values for a 10-year Sub-account With a Guaranteed Interest
Rate of 5% Based on Interpolated Current Interest Rates of:
Guaranteed Rate New Rate
5.00% 3%
End 0f Sub- Market Minimum Net
Certificate Account Value Withdrawal 3% Guaranteed Sub-
Year Value Adjustment Charge Account Account
Value Value
1 10,500 1,984 448 10,300 12,037
2 11,025 1,834 445 10,609 12,414
3 11,576 1,668 354 10,927 12,891
4 12,155 1,487 264 11,255 13,378
5 12,763 1,288 174 11,593 13,877
6 13,401 1,072 0 11,941 14,473
7 14,071 836 0 12,299 14,907
8 14,775 579 0 12,668 15,354
9 15,513 301 0 13,048 15,815
10 16,289 0 0 13,439 16,289
Guaranteed Rate New Rate
5.00% 5%
End 0f Sub- Market Minimum Net
Certificate Account Value Withdrawal 3% Guaranteed Sub-
Year Value Adjustment Charge Account Account
Value Value
1 10,500 0 448 10,300 10,300
2 11,025 0 445 10,609 10,609
3 11,576 0 354 10,927 11,223
4 12,155 0 264 11,255 11,892
5 12,763 0 174 11,593 12,588
6 13,401 0 0 11,941 13,401
7 14,071 0 0 12,299 14,071
8 14,775 0 0 12,668 14,775
9 15,513 0 0 13,048 15,513
10 16,289 0 0 13,439 16,289
Guaranteed Rate New Rate
5.00% 7%
End 0f Sub- Market Minimum Net
Certificate Account Value Withdrawal 3% Guaranteed Sub-
Year Value Adjustment Charge Account Account
Value Value
1 10,500 -1,640 448 10,300 10,300
2 11,025 -1,545 445 10,609 10,609
3 11,576 -1,432 354 10,927 10,927
4 12,155 -1,301 264 11,255 11,255
5 12,763 -1,149 174 11,593 11,593
6 13,401 -974 0 11,941 12,427
7 14,071 -774 0 12,299 13,297
8 14,775 -547 0 12,668 14,227
9 15,513 -290 0 13,048 15,223
10 16,289 0 0 13,439 16,289
<PAGE>
The formulas used in determining the amounts shown in the above table are as
follows:
(1) Market Value Adjustment Factor (MVAF) =
(2) Maximum Free Withdrawal Amount (MFW) = 10% of current Sub-account Value.
MFW is subject to MVA but not to withdrawal charge.
(3) Market Value Adjustment (MVA)= [(Sub-Account Value) x MVAF].
(4) Withdrawal Charge (WC) = [(Premium-MFW) x Withdrawal Charge Percent].
(5) Minimum Guarantee at 3% (MG3) of purchase
payment = Purchase Payment x (1.03)^(n/365).
(6) Net Sub-Account Value = Maximum of [(Sub-Account Value + MVA-WC) or MG3].
PLEASE KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS
