FEDERATED HIGH INCOME BOND FUND II
(FORMERLY, CORPORATE BOND FUND)
(A PORTFOLIO OF FEDERATED INSURANCE SERIES)
(formerly, Insurance Management Series)
SUPPLEMENT TO PROSPECTUS DATED APRIL 22, 1996
Under the heading "Investment Policies" please replace the section entitled
"Restricted and Illiquid Securities" with the following language:
"RESTRICTED AND ILLIQUID SECURITIES. The Fund may invest in restricted
securities. Restricted securities are any securities in which the Fund
may otherwise invest pursuant to its investment objective and policies,
but which are subject to restrictions on resale under federal securities
law. The Fund will limit investments in illiquid securities, including
certain restricted securities not determined by the Directors to be
liquid, non-negotiable time-deposits, and repurchase agreements providing
for settlement in more than seven days after notice, to 15% of the value
of its total assets."
April 26, 1996
FEDERATED INVESTORS
Since 1955
Federated Investors Tower
Pittsburgh, PA 15222-3779
Federated Securities Corp. is the distributor of the
fund and is a subsidiary of Federated Investors
Cusip 313916306
