File No. 33-79170, 811-8524
Filed under Rule 497(e)
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
PROSPECTUS SUPPLEMENT
MARCH 27, 1998
TO THE
EQUI-SELECT VARIABLE ANNUITY PROSPECTUS
DATED MAY 1, 1997 AS SUPPLEMENTED MAY 28, 1997,
JUNE 26, 1997, 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").
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 following substitutions will occur:
ESS TRUST PORTFOLIO TO BE REPLACED GCG TRUST SUBSTITUTE SERIES
- ---------------------------------- ---------------------------
Growth & Income Portfolio Growth & Income Series
Research Portfolio Research Series
Total Return Portfolio Total Return Series
Value + Growth Portfolio Value + Growth Series
International Fixed Income Portfolio Global Fixed Income Series
OTC Portfolio Mid-Cap Growth Series
Money Market Portfolio Liquid Asset Series
Mortgage-Backed Securities Portfolio Limited Maturity Bond Series
Advantage Portfolio Limited Maturity Bond 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. Contract holders will benefit
directly from any reduction of Trust expenses. Contract holders will not bear
any expense associated with the Substitution.
Two of the Series of the GCG Trust to be substituted, the Liquid Asset and
Limited Maturity Bond Series, already exist and are offered under some but not
all variable contracts. The other Series are not currently available, but will
be made available at the time of 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. 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 variable annuity Prospectus.
Enclosed is a current Prospectus for the GCG Trust detailing all Series
presently available. All Series of the Trust are not available to all variable
contracts. Also, 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. 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.
5344-SUPP 3/27/98
