SUPPLEMENT DATED DECEMBER 5, 1996
TO
PROSPECTUS DATED MAY 1, 1996
CITICORP LIFE VARIABLE ANNUITY SEPARATE ACCOUNT
CITICORP LIFE INSURANCE COMPANY
On or about December 5, 1996, Citicorp Life Insurance Company ("Citicorp Life")
and several other applicants intend to file an application with the Securities
and Exchange Commission ("SEC") seeking an order approving the substitution of
shares of certain portfolios of AIM Variable Insurance Funds, Inc. and the
Fidelity Variable Insurance Products Fund ("Fidelity VIP") for shares of the
investment portfolios of the Landmark VIP Funds currently held by various
subaccounts of Citicorp Life Variable Annuity Separate Account (the "Account").
To the extent required by law, approvals of such substitutions will also be
be obtained from the state insurance regulators in certain jurisdictions.
The effect of such a share substitution would be to replace the portfolios of
the Landmark VIP Funds with certain portfolios, described below, of AIM
Variable Insurance Funds, Inc. and Fidelity VIP as investment options under
the individual flexible premium deferred variable annuity contracts (the
"Contracts") described in your May 1, 1996 prospectus.
More particularly, Citicorp Life proposes to substitute: (1) shares issued
by the AIM Variable Insurance Funds, Inc. representing interests in the AIM
V.I. Government Securities Fund for shares currently held in a subaccount
of the Account representing interests in the Landmark VIP U.S. Government
Fund, (2) shares issued by Fidelity VIP representing interests in the
Fidelity VIP Growth Portfolio for shares currently held in a subaccount of
the Account representing interests in the Landmark VIP Equity Fund, (3) shares
issued by Fideilty VIP representing interests in the Fidelity VIP Equity-Income
Portfolio for shares currently held in a subaccount of the Account
representing interests in the Landmark VIP Balanced Fund, and (4) shares
issued by AIM Variable Insurance Funds, Inc. representing interests in the
AIM V.I. International Equity Fund for shares currently held in a subaccount
of the Account representing interests in the Landmark VIP International
Equity Fund. If approved by the SEC and appropriate state insurance
regulators, Citicorp Life would carry out the proposed substitutions on or
about May 1, 1997, by redeeming the Landmark VIP Funds shares described above
and purchasing with the proceeds, AIM Variable Insurance Funds, Inc. shares
and Fidelity VIP shares as described above. If carried out, the proposed
substitutions would result in the involuntary reinvestment of Contract
owners' cash value invested in the foregoing portfolios of the Landmark VIP
Funds as outlined above.
The investment objectives of the AIM V.I. Government Securities Fund, the
Fidelity VIP Growth Portfolio, the Fidelity VIP Equity-Income Portfolio and
the AIM V.I. International Equity Fund are summarized below. Contract owners
and prospective purchasers should carefully read the prospectuses for AIM
Variable Insurance Funds, Inc. and Fidelity VIP. Citicorp Life will send each
Contract owner a copy of those prospectuses at least 60 days before the
proposed substitutions are carried out.
AIM V.I. GOVERNMENT SECURITIES FUND seeks a high level of current income
consistent with reasonable concern for safety of principal by investing in
debt securities issued, guaranteed or otherwise backed by the United States
Government.
FIDELITY VIP GROWTH PORTFOLIO seeks capital appreciation. The Fund attempts
to achieve its objective by investing primarily in common stocks but may also
invest in other types of securities, including bonds and preferred stocks.
FIDELITY VIP EQUITY-INCOME PORTFOLIO seeks reasonable income by investing,
under normal circumstances, at least 65% of its assets in income producing
equity securities. The Fund may also invest in debt securities convertible
into common stock.
AIM V.I. INTERNATIONAL EQUITY FUND seeks long-term growth of capital by
investing in a diversified portfolio of international equity securities the
issuers of which are considered by AIM Advisors, Inc. to have strong earnings
momentum. Any income realized by the Fund will be incidental and will not be
an important criterion in the selection of portfolio securities.
From the date of this supplement until 30 days after the date of the proposed
substitutions, each Contract owner will be permitted to transfer all of his
or her cash value under a Contract in any of the subaccounts that would be
affected by the proposed substitutions to another subaccount(s) (other than one
of the other affected subaccounts) without that transfer(s) counting as one
of the limited number of transfers permitted in a Contract year free of charge.
Furthermore, until at least 30 days after the date of the proposed
substitutions, Citicorp will not impose any further restrictions on transfers
between the subaccounts of the Account and the Fixed Account.
In connection with the proposed substitutions, the Landmark VIP Funds will
close to new investment on January 31, 1997. After such date, Contract owners
will not be permitted to allocate net purchase payments to or transfer cash
value to the subaccounts of the Account investing in the Landmark VIP Funds.
The proposed substitutions have come about as a direct result of Citicorp Life
management's determination that the Landmark VIP Funds are good candidates for
consolidation with other funds given their small size, high annual expense
ratios and relatively unremarkable market performance. As noted, if the
approvals described above are obtained, Citicorp Life currently intends to
carry out the proposed substitutions on or about May 1, 1997. If the
approvals are not received, Citicorp Life will not carry out the proposed
substitutions.
