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AMERICAN GENERAL ANNUITY INSURANCE COMPANY
A.G. SEPARATE ACCOUNT A
ELITEPLUS BONUS
Supplement issued July 7, 1999
To the Prospectus dated May 1, 1999
American General Annuity Insurance Company (the "Company") filed an application
with the Securities and Exchange Commission (the "Commission") today requesting
an order allowing the Company to replace the shares of the A.G. Series Trust
series included as variable account options in ElitePlus Bonus with shares of
comparable series of American General Series Portfolio Company ("AGSPC"), OCC
Accumulation Trust ("OCCAT") and Van Kampen Life Investment Trust ("LIT"). The
proposed substitutions are:
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REPLACED SERIES OF THE TRUST SUBSTITUTE SERIES
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American General U.S. Government Securities Portfolio AGSPC Government Securities Fund
Credit Suisse Growth and Income Portfolio AGSPC Growth & Income Fund
Credit Suisse International Equity Portfolio AGSPC International Equities Fund
Elite Value Portfolio OCCAT Managed Portfolio
State Street Global Advisors Growth Equity Portfolio AGSPC Stock Index Fund
State Street Global Advisors Money Market Portfolio AGSPC Money Market Fund
Van Kampen Emerging Growth Portfolio LIT Emerging Growth Portfolio
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The investment objectives, practices and restrictions of the AGSPC funds, OCCAT
Managed Portfolio, and LIT Emerging Growth Portfolio are substantially similar
to those of the A.G. Series Trust portfolio they will be replacing.
Information about the funds to be substituted is contained in their current
prospectuses, which may be obtained by calling 1-800-424-4990.
The Company believes that the proposed substitutions are in the best interest
of contract holders, because the replacement funds are substantially larger
and, therefore, tend to have lower expense ratios. The Company has been
holding down A.G. Series Trust's expense ratios through expense waivers and
reimbursements, but it does not intend to do so indefinitely. The
substitutions will not cause contract holders or their beneficiaries any
adverse tax consequences.
The Company expects to complete the substitutions before December 1999.
Completion of the substitutions is conditioned upon obtaining the approval of
the Commission and state insurance authorities. The Company will effect the
substitutions by simultaneously placing an order to redeem the shares of the
A.G. Series Trust series and an order to purchase shares of the respective
AGSPC, OCCAT or LIT series. The Company will bear all expenses directly
attributable to the substitutions. Contract holders will not incur any charges
or fees in connection with the substitutions.
Before and after the substitutions, contract holders may continue to transfer
among the variable and fixed-account options as described in the prospectus.
Additionally, the limitations on transfers from the variable account options
and non-DCA fixed account options will be waived up until and for one month
following the substitutions. The Company will send affected contractholders a
notice of the completion of the substitutions shortly following their
completion.
