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SUPPLEMENT DATED AUGUST 6, 1998 TO THE PROSPECTUS
DATED MAY 1, 1998 FOR CANADA LIFE INSURANCE
COMPANY OF NEW YORK VARIABLE ANNUITY ACCOUNT 2
The following information supersedes and replaces any contrary information in
the prospectus:
On June 30, 1998, the shareholders of the International, Global Smaller
Companies, Global Technology and Global Growth Opportunities Portfolios (the
"Seligman Henderson Portfolios") of Seligman Portfolios, Inc. (the "Fund")
approved a Subadvisory Agreement between J. & W. Seligman & Co. Incorporated
(the "Manager") and Henderson Investment Management Limited (the "New
Subadviser"). The Fund's prior subadvisory arrangements with Seligman Henderson
Co. terminated on June 30, 1998. The Subadvisory Agreement, which became
effective on July 1, 1998, provides that the New Subadviser will furnish
investment advice, research and assistance with respect to the Seligman
Henderson Portfolios' non-U.S. investments. The Manager shall be responsible for
any U.S. investments and has overall responsibility for the management of the
Portfolios.
The New Subadviser receives for its services, in respect of each Seligman
Henderson Portfolio, a monthly fee from the Manager. The fee is calculated at
an annual rate of 0.50% of each Portfolio's average monthly assets under the New
Subadviser's supervision. The Subadvisory Agreement provides that it will
continue until December 31, 1999 and, thereafter, is subject to the annual
approval of the Fund's Board of Directors.
The subadvisory fee under these arrangements is paid by the Manager from its own
management fee and will not increase the fees payable by any Portfolio.
