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THE ALLEGIANCE VARIABLE ANNUITY
ALEXANDER HAMILTON VARIABLE ANNUITY SEPARATE ACCOUNT
SUPPLEMENT DATED DECEMBER 8, 1997
TO THE PROSPECTUS DATED MAY 1, 1997
On December 5, 1997, pursuant to an Order of the Securities and Exchange
Commission, the following substitutions took place for existing Contracts:
shares of the Money Market Portfolio of Chubb America Fund, Inc. ("CAF") were
substituted for shares of the Federated Prime Money Fund II, shares of the CAF
Balanced Portfolio were substituted for shares of the Balanced Fund of the
Alexander Hamilton Variable Insurance Trust ("AHVIT"), shares of the CAF Growth
and Income Portfolio were substituted for shares of the AHVIT Growth & Income
Fund, shares of the CAF Capital Growth Portfolio were substituted for shares of
the AHVIT Growth Fund, shares of the CAF Emerging Growth Portfolio were
substituted for shares of the AHVIT Emerging Growth Fund, shares of the CAF
World Growth Stock Portfolio were substituted for shares of the AHVIT
International Equity Fund, shares of the Oppenheimer Bond Fund of the
Oppenheimer Variable Account Funds were substituted for shares of the AHVIT
Investment Grade Bond Fund, and shares of the Oppenheimer Bond Fund were
substituted for shares of the AHVIT High Yield Bond Fund. Therefore, effective
December 5, 1997, the Variable Subaccounts no longer invest in the Alexander
Hamilton Variable Insurance Trust or the Federated Prime Money Fund II but
invest instead in the Money Market Portfolio, Balanced Portfolio, Growth and
Income Portfolio, Capital Growth Portfolio, Emerging Growth Portfolio, and World
Growth Stock Portfolio of CAF and the Oppenheimer Bond Fund of the Oppenheimer
Variable Account Funds.
The investment adviser for Chubb America Fund, Inc. is Chubb Investment Advisory
Corporation. The investment adviser for the Oppenheimer Variable Account Funds
is OppenheimerFunds, Inc.
The various portfolios of Chubb America Fund, Inc. and the Oppenheimer Bond
Portfolio have the following investment objectives:
The CAF Money Market Portfolio, sub-advised by Massachusetts Financial Services
Company, seeks to achieve as high a level of current income as is consistent
with preservation of capital and liquidity.
The CAF Balanced Portfolio, sub-advised by J.P. Morgan Investment Management,
Inc., seeks reasonable current income and long-term capital growth, consistent
with conservation of capital, by investing primarily in common stocks.
The CAF Growth and Income Portfolio, sub-advised by Warburg Pincus Asset
Management, Inc., seeks long-term growth of capital by investing primarily in a
wide range of equity issues that may offer capital appreciation and,
secondarily, seeks a reasonable level of current income.
SEE REVERSE SIDE
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The CAF Capital Growth Portfolio, sub-advised by Janus Capital Corporation,
seeks capital growth. Realization of income is not a significant investment
consideration by the Sub-Investment Manager and any income realized will be
incidental.
The CAF Emerging Growth Portfolio, sub-advised by Massachusetts Financial
Services Company, seeks long-term growth of capital. Dividend and interest
income from portfolio securities, if any, is incidental to the Portfolio's
investment objective of long-term growth.
The CAF World Growth Stock Portfolio, sub-advised by Templeton Global Advisors
Limited, seeks long-term capital growth through a policy of investing primarily
in stocks of companies organized in the U.S. or in any foreign nation. A
portion of the Portfolio may also be invested in debt obligations of companies
and governments of any nation. Any income realized will be incidental.
The Oppenheimer Bond Fund's primary objective is to earn a high level of current
income by investing primarily in a diversified portfolio of high yield
fixed-income securities. As a secondary objective the Bond Fund seeks capital
growth when consistent with its primary objective.
