SUPPLEMENT DATED NOVEMBER 16, 1998, TO
THE PROSPECTUS DATED MAY 1, 1998
THE EXCHEQUER VARIABLE ANNUITY
A FLEXIBLE PREMIUM DEFERRED COMBINATION
FIXED AND VARIABLE ANNUITY CONTRACT
ISSUED BY
SECURITY LIFE OF DENVER INSURANCE COMPANY
AND
SECURITY LIFE SEPARATE ACCOUNT A1
THIS SUPPLEMENT UPDATES CERTAIN INFORMATION CONTAINED IN YOUR PROSPECTUS.
PLEASE READ IT CAREFULLY AND KEEP IT WITH YOUR PROSPECTUS FOR FUTURE
REFERENCE.
The address of the Customer Service Center found on pages 2 and 51 is deleted
and replaced as follows:
Security Life of Denver
Customer Service Center
P.O. Box 11520
Church Street Station
New York, NY 10286-1520
(800) 933-5858
The first sentence in the "Customer Service Center" section on page 18 is
deleted and replaced as follows:
Golden American Life Insurance Company and its affiliates provide
administrative services for Security Life at our Customer Service Center
at P.O. Box 11520, Church Street Station, New York, NY 10286-1520.
The investment limitation of a maximum of 18 Divisions of the Variable
Account over the lifetime of the Contract is deleted. References to this
investment limitation in the Prospectus found on pages 1, 13, 18 and 23 are
deleted.
The partial withdrawal transaction charge is deleted. References in the
Prospectus to the partial withdrawal transaction charge found on pages 9, 14,
28, 29, 34, 46 and 57 are deleted.
The last sentence in the second paragraph in the "Dollar Cost Averaging"
section on page 23 is deleted.
The second sentence in the last paragraph in the "Dollar Cost Averaging"
section on page 23 is deleted.
The last paragraph in the "Dollar Cost Averaging" section on page 24 is
deleted and replaced as follows:
You may make changes to your Dollar Cost Averaging options by telephoning
our Customer Service Center. See Telephone Privileges, page 33.
<PAGE>
The "Automatic Rebalancing" section on Page 24 is hereby deleted and replaced
as follows:
AUTOMATIC REBALANCING
The Automatic Rebalancing feature provides a method for maintaining a
balanced approach to investing your Accumulation Value and simplifying
the process of asset allocation over time. There is no charge for this
feature. Any transfers as a result of the operation of this feature are
not counted toward the limit of 12 transfers per Contract Year for
purposes of the Excess Transfer Charge.
When you apply for the Contract, or at any subsequent time during the
Accumulation Period, you may elect Automatic Rebalancing by electing
this feature on the application or notifying us in writing or by
telephone. Automatic Rebalancing allows you to match your Variable
Division Accumulation Value allocations over time with the allocation
percentages you have selected. Automatic Rebalancing will take place on
the last Valuation Date of each calendar quarter. We will automatically
reallocate the amounts in each of the Variable Divisions to match your
allocation percentages. This will rebalance any Variable Division
Accumulation Values that may be out of line with the allocation
percentages you initially indicated. Automatic Rebalancing allocations
may not include an allocation to the Guaranteed Interest Division.
Automatic Rebalancing allocations may contain up to two (2) decimal
places, e.g. 33.33%, and must sum to 100%. No less than 1% may be
allocated to any one (1) division.
If you elect this feature, on each rebalancing date we will transfer
amounts among the Variable Divisions so that the ratio of your Division
Accumulation Value in each Variable Division to your total Accumulation
Value in all Variable Divisions matches your selected allocation
percentage for that Division.
If you elect Automatic Rebalancing with your application, the first
transfer will occur on the next rebalancing date after the Free Look
Period has ended. If you elect this feature after the Contract Date,
the first transfer will be processed on the next rebalancing date after
we receive the notification at our Customer Service Center and the Free
Look Period has ended.
You may change the allocation percentages for Automatic Rebalancing at
any time and your Accumulation Value will be reallocated as of the
Valuation Date that we receive your allocation instructions at our
Customer Service Center.
Automatic Rebalancing may be terminated at any time, so long as we
receive written notice of the termination at least seven days prior to
the next rebalancing date.
If you elect both Automatic Rebalancing and Dollar Cost Averaging,
Dollar Cost Averaging will take place first. After Dollar Cost
Averaging has terminated, Automatic Rebalancing will begin.
You may make changes to your Automatic Rebalancing options by telephoning
our Customer Service Center. See Telephone Privileges, page 33.
<PAGE>
The last paragraph in the "Your Right to Transfer Among Divisions" section on
page 28 is deleted and replaced as follows:
You may make transfers by telephoning our Customer Service Center or by
completing the Transfer and Allocation Change Form. See Telephone
Privileges, page 33.
The first sentence of the first paragraph on page 29 in the "Partial
Withdrawals" section is deleted and replaced as follows:
You may request a partial withdrawal by telephoning or writing our
Customer Service Center.
The first paragraph in the "Telephone Privileges" section on page 33 is
deleted and replaced as follows:
You may make transfers, changes in your Dollar Cost Averaging and
Automatic Rebalancing options, or request partial withdrawals by
telephoning our Customer Service Center.
The third sentence in the second paragraph in the "Telephone Privileges"
section is deleted.
The third paragraph in the "Surrender Charge" section found on page 34 is
deleted and replaced as follows:
Any applicable surrender charges will be deducted from the Accumulation
Value in proportion to the Accumulation Value in each Division from
which the partial withdrawal was taken. In instances where the partial
withdrawal equals the entire Accumulation Value in each such Division,
charges will be deducted proportionately from all of the Divisions in
which you invested.
The third sentence in the "Excess Transfer Charge" section found on page 34
is deleted and replaced as follows:
The charge will be deducted from each Division from which the transfer
is made in proportion to the amount transferred from each Division.
The second sentence in the "Combination Annuity Payout" section on page 37 is
deleted and replaced as follows:
You can split the Proceeds among Fixed and Variable Annuity Payouts in
any proportion you choose, with the exception that a minimum of 25% must
be allocated to each option you elect as of the Supplementary Contract
Effective Date.
