<PAGE> 1
SUPPLEMENT DATED JANUARY 2, 2001 TO
PROSPECTUS DATED MAY 1, 2000 FOR
MODIFIED SINGLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACTS
ISSUED BY
NATIONWIDE LIFE INSURANCE COMPANY
THROUGH ITS
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
THIS SUPPLEMENT UPDATES CERTAIN INFORMATION CONTAINED IN YOUR PROSPECTUS. PLEASE
READ IT AND KEEP IT WITH YOUR PROSPECTUS FOR FUTURE REFERENCE.
1. PAGE 1 OF YOUR PROSPECTUS IS AMENDED TO INCLUDE THE FOLLOWING UNDERLYING
MUTUAL FUND:
Fidelity VIP III Aggressive Growth Portfolio: Service Class 2
2. THE "UNDERLYING MUTUAL FUND ANNUAL EXPENSES" TABLE IS AMENDED TO INCLUDE
THE FOLLOWING:
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
(AS A PERCENTAGE OF UNDERLYING MUTUAL FUND NET ASSETS, AFTER EXPENSE
REIMBURSEMENT)
<TABLE>
<CAPTION>
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Management Other 12b-1 Total Underlying
Fees Expenses Fees Mutual Fund
Expenses
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Fidelity VIP III Aggressive Growth Portfolio: Service 0.63% 0.48% 0.25% 1.36%
Class 2*
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</TABLE>
*Based on estimated expenses for the first year.
The expenses shown above are deducted by the underlying mutual fund before
it provides Nationwide with the daily net asset value. Nationwide then
deducts applicable variable account charges from the net asset value in
calculating the unit value of the corresponding sub-account. The management
fees and other expenses are more fully described in the prospectus for each
underlying mutual fund. Information relating to the underlying mutual funds
was provided by the underlying mutual funds and not independently verified
by Nationwide.
3. THE "EXAMPLE" IS AMENDED TO INCLUDE THE FOLLOWING:
The following chart shows the expenses (in dollars) that would be incurred
under this contract assuming a $1,000 investment, 5% annual return, and no
change in expenses. These dollar figures are illustrative only and should
not be considered a representation of past or future expenses. Actual
expenses may be greater or less than those shown below.
The example reflects expenses of both the variable account and the
underlying mutual funds. The assumed variable account charge is 2.70% which
is the maximum charge for the maximum number of rider options.
APO-4789-3 1
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For those contracts that do not elect the maximum number of options, the
expenses are reduced. Deductions for premium taxes are not reflected but
may apply.
<TABLE>
<CAPTION>
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If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
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1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP III Aggressive 106 183 252 441 43 129 216 441 * 129 216 441
Growth Portfolio: Service
Class 2
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</TABLE>
*The contracts sold under this prospectus do not permit annuitization
during the first two contract years.
4. "APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL FUNDS" IS AMENDED TO INCLUDE
THE FOLLOWING:
VIP III AGGRESSIVE GROWTH: SERVICE CLASS 2
Investment Objective: Seeks capital appreciation by investing the fund's
assets primarily in common stocks of companies FMR believes offer potential
for accelerated earnings or revenue growth. Companies with high growth
potential tend to be companies with higher than average price/earnings
(P/E) ratios. Companies with strong growth potential often have new
products, technologies, distribution channels or a strong industry or
market position. FMR may invest the fund's assets in securities of foreign
issuers in addition to securities of domestic issuers. FMR may lend the
fund's securities to broker-dealers or other institutions to earn income
for the fund. FMR may use various techniques, such as buying and selling
futures contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values.
2
