SUPPLEMENT dated November 2, 1998 to
PROSPECTUS dated May 1, 1998 for
INDIVIDUAL FLEXIBLE PREMIUM DEFERRED
VARIABLE AND FIXED ANNUITY CONTRACT
issued by Protective Life Insurance Company
PIC MONEY MARKET FUND REPLACEMENT
Protective Life Insurance Company ("Protective Life") proposes to
replace PIC Money Market Fund with Oppenheimer Money Fund as an investment
option under the Contracts described in your May 1, 1998 prospectus. On or about
October 28, 1998, Protective Life and several other applicants filed an
application with the Securities and Exchange Commission seeking an order
approving the substitution of shares of Oppenheimer Variable Account Funds'
Money Fund for shares of Protective Investment Company's Money Market Fund
currently held by the PIC Money Market subaccount of Protective Variable Annuity
Separate Account. Protective Life will also obtain approvals of state insurance
regulators in any state where such approval is required by state law. The
substitution will not be made until all necessary approvals are obtained.
Oppenheimer Money Fund seeks the maximum current income from
investments in "money market" securities consistent with low capital risk and
the maintenance of liquidity. Owners and prospective purchasers should carefully
read the prospectus for Oppenheimer Variable Account Funds, which accompanied
your May 1, 1998 prospectus.
Each Owner may make one transfer of all Contract Value invested in the
PIC Money Market subaccount on the date of this supplement to another subaccount
or a fixed account without that transfer counting as a "free" transfer permitted
under a Contract. Also, Protective Life will not exercise any rights reserved
under any Contract to impose additional restrictions on transfers from the PIC
Money Market subaccount to another subaccount or a fixed account until at least
thirty (30) days after the proposed substitution.
If the proposed substitution is carried out, Protective Life will send
each Owner affected by the substitution a written notice that the substitution
was carried out and that he or she may, within thirty (30) days after the
substitution, make one transfer of all Contract Value invested in the
Oppenheimer Money Fund subaccount on the date of the notice to another
subaccount or a fixed account without that transfer counting as a "free"
transfer permitted under a Contract.
INVESTMENT MANAGER NAME CHANGE
The investment manager for each of the Protective Investment Company
Funds, Investment Distributors Advisory Services, Inc. ("IDASI"), has changed
its name to Protective Investment Advisors, Inc.
Please keep this supplement with your May 1, 1998 prospectus for
future reference.
