File No. 33-79170, 811-8524
Filed under Rule 497(e)
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
PROSPECTUS SUPPLEMENT
MARCH 27, 1998
TO THE
PRIMELITE VARIABLE ANNUITY PROSPECTUS
DATED MAY 1, 1997 AS SUPPLEMENTED JULY 9, 1997,
OCTOBER 29, 1997 AND JANUARY 5, 1998
This supplement describes a proposal to replace all shares of the Portfolios of
the Equi-Select Series Trust (the "ESS Trust") by substituting shares of certain
Series of The GCG Trust (the "GCG Trust") in their place (the "Substitution").
Certain of those ESS Trust Portfolios are available under the PrimElite variable
annuity contracts.
Recently, Equitable Life Insurance Company of Iowa, together with its affiliated
insurance companies (collectively, the "Companies"), on behalf of themselves,
their separate accounts and the ESS and GCG Trusts filed an application with the
Securities and Exchange Commission (the "Commission") requesting an order
approving the Substitution. Upon obtaining such an order from the Commission,
and subject to any prior approval by applicable insurance authorities, the
Companies propose to effect the Substitution as soon as is practicable.
When approved, the PrimElite variable annuity contracts will be affected by the
following substitutions:
ESS TRUST PORTFOLIO TO BE REPLACED GCG TRUST SUBSTITUTE SERIES
- ---------------------------------- ---------------------------
Research Portfolio Research Series
Total Return Portfolio Total Return Series
OTC Portfolio Mid-Cap Growth Series
This proposal for substitution is being made to provide a transfer of the assets
of each Portfolio of the ESS Trust into similar Series of the GCG Trust in order
to reduce operating expenses and create larger economies of scale from which a
further reduction of expenses is anticipated. The above-listed Series of the
GCG Trust are not currently available, but will be made available at the time of
substitution. Contract holders will benefit directly from any reduction of
Trust expenses. Contract holders will not bear any expense associated with the
Substitution.
A contract holder with holdings in the ESS Trust, prior to the date of
Substitution, may transfer or reallocate the value in his or her subaccount in
the ESS Trust to any subaccounts currently available under his or her variable
contract including those subaccounts of the GCG Trust from now until the
Substitution without any limitation or charges. See the PrimElite Prospectus.
Moreover, following the Substitution for a period of 30 days, unlimited
transfers or reallocations will be permitted without any limitation or charge.
After the 30 days, any subaccount transfers or reallocations will be subject
to the current restrictions, if any, described in the PrimElite Prospectus.
Enclosed is a supplement to the GCG Trust Prospectus, which describes those
Series of the GCG Trust which are not currently available, but will be,
effective with substitution, including some which will not be available under
PrimElite contracts. Additional prospectuses or information may be obtained by
calling Customer Service at 800-344-6855.
The Companies believe, based on a review of existing federal income tax laws and
regulations, that the Substitution will not have any tax consequences to
contract holders.
Upon obtaining the requested order for substitution from the Commission, and
subject to any prior approval by applicable insurance authorities, the Companies
will effect the Substitution by simultaneously placing an order to redeem the
shares of the Portfolios of the ESS Trust and an order to purchase shares of
Series of the GCG Trust. Contract holders will not bear any expenses associated
with the Substitution. Directed Services, Inc., Equitable Life Insurance Company
of Iowa, Golden American Life Insurance Company and First Golden American Life
Insurance Company of New York will bear all expenses attributable to the
Substitution. After the Substitution has been completed, Customer Service will
send affected contract holders a notice within five days.
PE-1-SUPP 3/27/98
