Supplement to Prospectus Dated May 1, 1997
Supplement Dated July 1, 1997
This Supplement is to be placed immediately preceding the Table of Contents of
the Prospectus.
The section entitled "CONTRACT EXPENSE SUMMARY - Annual Expenses of the
Sub-accounts" is amended as follows:
Annual Expenses of the Sub-accounts
(as a percentage of average daily net assets)*
Mortality and Expense Risk Charges 0.50%
Administration Charge 0.15%
-----
Total Annual Expenses of the Sub-accounts 0.65%
* Prior to July 1, 1994, Class 2 Sub-accounts of Separate Account B were
assessed total annual expenses of 1.90%, including an investment allocation
service charge of 1.0% and 0.90% for the combination of mortality, expense risk
as well as administration charges. Effective July 1, 1994, the investment
allocation services charge was no longer assessed against the Sub-accounts.
Therefore, total annual expenses were 0.90%. Effective July 1, 1997, the
combination of mortality, expense risk, and administration charges was reduced
to 0.65%.
The tables in the section entitled "EXPENSE EXAMPLES" are amended as follows:
The examples shown assume that: (a) fees and expenses remain constant; (b) there
are no withdrawals of Account Value during the period shown; (c) there are no
transfers or other transactions subject to a fee during the period shown; (d) no
tax charge applies; (e) the $35 Annual Maintenance Fee is represented as a .15%
charge based on our assumed average contract size; and (f) the expenses
throughout the period for the underlying mutual fund portfolios will be the
lower of the expenses without any applicable reimbursement or expenses after any
applicable reimbursement, as shown above in the section entitled "Contract
Expense Summary."
THE EXAMPLES ARE ILLUSTRATIVE ONLY - THEY SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES OF THE UNDERLYING MUTUAL FUNDS OR
THEIR PORTFOLIOS - ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. The
Sub-accounts are referred to below by their specific names.
Examples (amounts shown are rounded to the nearest dollar)
Whether or not you surrender your Annuity at the end of the applicable time
period or begin taking annuity payments at such time, you would pay the
following expenses on a $1,000.00 investment, assuming 5% annual return on
assets:
<TABLE>
<CAPTION>
After:
1 yr. 3 yrs. 5 yrs. 10 yrs.
Sub-accounts
<S> <C> <C> <C> <C>
JanCap Growth 2 19 60 103 221
AST Janus Overseas Growth 2 23 70 119 254
LA Growth and Income 2 18 56 96 207
Fed Utility Inc 2 18 55 94 202
Fed High Yield 2 19 58 99 213
AST Money Market 2 14 44 76 165
T. Rowe Price Asset Allocation 2 20 63 108 231
T. Rowe Price International Equity 2 21 66 113 241
T. Rowe Price Natural Resources 2 21 66 113 241
T. Rowe Price International Bond 2 20 62 106 228
T. Rowe Price Small Company Value 2 21 65 111 238
Founders Capital Appreciation 2 20 62 106 228
Founders Passport 2 22 68 116 248
INVESCO Equity Income 2 18 56 96 208
PIMCO Total Return Bond 2 17 53 91 198
PIMCO Limited Maturity Bond 2 17 53 91 198
Berger Capital Growth 2 19 58 99 212
RS Value + Growth 2 22 67 115 245
AST Putnam Value Growth & Income 2 19 59 101 218
AST Putnam International Equity 2 20 62 106 228
AST Putnam Balanced 2 18 56 96 208
Twentieth Century Strategic Balanced 2 20 62 107 229
Twentieth Century International Growth 2 23 70 119 254
AA Growth 2 16 50 86 186
AA Small Capitalization 2 17 53 91 197
AA MidCap Growth 2 17 52 89 192
NB Partners 2 18 55 95 205
MV Emerging Markets 2 23 71 121 258
</TABLE>
The section entitled "CHARGES AGAINST THE ASSETS - Administration Charge" is
amended as follows:
Administration Charge: We assess each Class 2 Sub-account, on a daily basis, an
administration charge. The charge is 0.15% per year of the average daily total
value of such Sub-account
The section entitled "CHARGES AGAINST THE ASSETS - Mortality and Expense Risk
Charges" is amended as follows:
Mortality and Expense Risk Charges: For Class 2 Sub-accounts, the mortality risk
charge is 0.25% per year and the expense risk charge is 0.25% per year. These
charges are assessed in combination each day against each Sub-account at the
rate of 0.50% per year of the average daily total value of each Sub-account.
AC-SUPP (7/97)