SUPPLEMENT for the State of California dated
August 30, 2000 to PROSPECTUSES dated
May 1, 2000 for
PROTECTIVE ADVANTAGE(sm) VARIABLE ANNUITY
PROTECTIVE VARIABLE ANNUITY
PROTECTIVE VARIABLE ANNUITY II
ELEMENTS(sm) PLUS VARIABLE ANNUITY
ELEMENTS(sm) ACCESS VARIABLE ANNUITY
issued by Protective Life Insurance Company
The following Fund will become available as an investment option on October 1,
2000, subject to regulatory approval:
Goldman Sachs Variable Insurance Trust: Internet Tollkeeper Fund(sm)
ANNUAL FUND EXPENSES
The information about annual Fund expenses is amended by adding the following
information relating to the period January 1 to December 31, 1999:
<TABLE>
Management Other Total Annual
(Advisory) Expenses After Fund Expenses
Fees Reimbursement (after reimbursements)
----------------- ---------------------- -----------------------
<S> <C> <C> <C>
Goldman Sachs Variable Insurance Trust (7)
Internet Tollkeeper Fund. . . . . . 1.00 0.25 1.25
</TABLE>
The footnotes relating to the Annual Fund Expenses table are amended to add the
following note:
(7) Expenses are estimated; the Internet Tollkeeper Fund commenced
operations on April 28, 2000, and therefore has no historical fees and
expenses to report. Goldman Sachs Asset Management (the "Investment
Adviser"), a unit of the Investment Management Division of Goldman,
Sachs & Co., has voluntarily agreed to reduce or limit certain "Other
Expenses" of the Fund (excluding management fees, taxes, interest,
brokerage fee, litigation, indemnification and other extraordinary
expenses) to the extent such expenses exceed the percentage stated in
the table above (as calculated per annum) of the Fund's average daily
net assets. Such reductions or limits, if any, are calculated monthly
on a cumulative basis. The Investment Adviser may discontinue or modify
any limitations in the future at its discretion. Management Fees for
this Fund have been contractually set at 1.00%.
Protective Variable Annuity Separate Account
The information under the caption "Protective Variable Annuity Separate Account"
is amended to add the Goldman Sachs Internet Tollkeeper Sub-Account.
The Funds
The information under the caption "The Funds" is amended to add that the Goldman
Sachs Internet Tollkeeper Sub- Account invests in the Goldman Sachs Internet
Tollkeeper Fund, a portfolio of the Goldman Sachs Variable Insurance Trust. The
Goldman Sachs Variable Insurance Trust is managed by Goldman Sachs Asset
Management, a unit of the Investment Management Division of Goldman, Sachs & Co.
The descriptions of each Fund are amended to add the following information:
Goldman Sachs Variable Insurance Trust
Internet Tollkeeper Fund. This Fund seeks long-term growth of capital.
This Fund will pursue its objectives by investing, under normal circumstances,
at least 65% of its total assets in equity securities of "Internet Tollkeeper"
companies, which are companies in the media, telecommunications, technology and
Internet sectors that provide access, infrastructure, content and services to
Internet companies and Internet users.
Other Investors in the Funds
The information under the caption "Other Investors in the Funds" is amended to
include the Internet Tollkeeper Fund from the Goldman Sachs Variable Insurance
Trust.
38449v.3
