SUPPLEMENT DATED DECEMBER 5, 1996
TO
PROSPECTUS DATED MAY 1, 1996
FIRST CITICORP LIFE VARIABLE ANNUITY SEPARATE ACCOUNT
FIRST CITICORP LIFE INSURANCE COMPANY
On or about December 5, 1996, First Citicorp Life Insurance Company ("First
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 First Citicorp Life Variable Annuity Separate
Account (the "Account"). To the extent required by law, approvals of such
substitutions will also 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, First Citicorp Life proposes to substitute: (1) shares
issued by 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
Fidelity VIP representing interests in the Fidelity VYP 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, First Citicorp
Life would carry out the proposed substitutions on or about May 1, 1997, by
redeeming the Landmark VIP Fund shares described above and purchasing with the
proceeds, AIMM 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. First 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, First Citicorp Life will not impose any further restrictions
on transfers among and 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 First 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, First Citicorp Life currently intends
to carry out the proposed substitutions on or about May 1, 1997. If the
approvals are not received, First Citicorp Life will not carry out the proposed
substitutions.
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