LONDON PACIFIC LIFE & ANNUITY COMPANY
LPLA SEPARATE ACCOUNT ONE
Supplement dated December 31, 1998
This supplement should be attached to your copy of the Prospectus for the
variable annuity contracts issued by London Pacific Life & Annuity Company and
LPLA Separate Account One.
1. Effective January 25, 1999, you may no longer allocate Contributions or make
transfers of Contract Value to the Berkeley U.S. Quality Bond Portfolio and the
Berkeley Money Market Portfolio of LPT Variable Insurance Series Trust. If, as
of January 25, 1999, you are participating in the Dollar Cost Averaging Program
and are having amounts transferred from the Berkeley Money Market Sub-Account or
the Berkeley U.S. Quality Bond Sub-Account to the other Sub-Accounts, you may
continue to have transfers made out of these Sub-Accounts until there is no
value left in these Sub-Accounts.
2. Beginning January 25, 1999, you may allocate Contributions or transfer
Contract Value to the Federated Prime Money Fund II and the Federated Fund for
U.S. Government Securities II of Federated Insurance Series. Additionally,
beginning January 25, 1999, under the Dollar Cost Averaging Program, you may
transfer amounts from the Federated Prime Money Fund II Sub-Account or the
Federated Fund for U.S. Government Securities II Sub-Account to the other
Sub-Accounts.
Federated Insurance Series is a mutual fund with eight separate investment
portfolios, two of which are available under the Contracts. Federated Advisers
is the investment adviser of the Federated Prime Money Fund II and the Federated
Fund for U.S. Government Securities II. The following Portfolios are available
under the Contract:
Federated Prime Money Fund II
Federated Fund for U.S. Government Securities II
3. The following revises certain information in the second paragraph under
"Highlights:"
Any references to the Berkeley Money Market Sub-Account are deleted and are
replaced with the Federated Prime Money Fund II Sub-Account. This means that
with respect to the circumstances described in (a), (b) and (c) in that
paragraph, the Company will allocate initial Contributions to the Federated
Prime Money Fund II Sub-Account.
4. The following supplements certain information in the LPLA Separate Account
One Fee Table under "LPLA Variable Insurance Series Trust's Annual Expenses:"
Effective May 1, 1999, the Company will no longer voluntarily reimburse the
Berkeley U.S. Quality Bond and the Berkeley Money Market Portfolios' expenses.
For the year ending December 31, 1999, the "Other Expenses" of the Berkeley U.S.
Quality Bond Portfolio are estimated to be 2.75% and the "Other Expenses" of the
Berkeley Money Market Portfolio are estimated to be 2.25%.
5. The following information is added to the "LPLA Separate Account One Fee
Table:"
<TABLE>
<CAPTION>
Federated Insurance Series' Annual Expenses
(as a percentage of the average daily net assets of a Portfolio)
Management Other
Portfolio Fees Expenses Total Annual Expenses
- --------- ---- -------- ---------------------
<S> <C> <C> <C>
Federated Prime Money Fund II (1) .50% .30% .80%
Federated Fund for U.S. Government
Securities II (1) .60% .20% .80%
<FN>
(1) Without expense waivers and reimbursements, the total annual operating
expenses for the year ended December 31, 1997 would have been 1.00% for the
Federated Prime Fund II and 1.25% for the Federated Fund for U.S. Government
Securities II.
</FN>
</TABLE>
<TABLE>
<CAPTION>
6. The following information is added under "Examples:"
Time Periods
------------
1 Year 3 Years Five Years 10 Years
------ ------- ---------- --------
Federated Insurance Series Trust
<S> <C> <C> <C> <C>
Federated Prime Money Fund II $25.02 $78.64 $137.47 $310.92
Federated Fund for U.S. Government
Securities II $25.02 $78.64 $137.47 $310.92
</TABLE>
7. The following information as of September 30, 1998 is added to the "Condensed
Financial Information" section of the Prospectus:
Sub-Account Period Ended 9-30-98
Harris Associates Value
Unit value at beginning of period $15.08
Unit value at end of period 13.54
No. of units outstanding at end of period 434,330
MFS Total Return
Unit value at beginning of period $13.20
Unit value at end of period 13.58
No. of units outstanding at end of period 759,821
Berkeley U.S. Quality Bond
Unit value at beginning of period $10.99
Unit value at end of period 11.75
No. of units outstanding at end of period 157,620
Berkeley Money Market
Unit value at beginning of period $10.76
Unit value at end of period 11.01
No. of units outstanding at end of period 277,425
Strong Growth
Unit value at beginning of period $15.72
Unit value at end of period 16.08
No. of units outstanding at end of period 304,215
Robertson Stephens Diversified Growth
Unit value at beginning of period $12.21
Unit value at end of period 10.75
No. of units outstanding at end of period 415,475
Lexington Corporate Leaders
Unit value at beginning of period $14.25
Unit value at end of period 13.98
No. of units outstanding at end of period 473,383
Morgan Stanley U.F. High Yield
Unit value at beginning of period (5/4/98) $10.00
Unit value at end of period 9.46
No. of units outstanding at end of period 34,125
Morgan Stanley U.F. International Magnum
Unit value at beginning of period (5/4/98) $10.00
Unit value at end of period 8.28
No. of units outstanding at end of period 169,233
Morgan Stanley U.F. Emerging Markets Equity
Unit value at beginning of period (5/4/98) $10.00
Unit value at end of period 6.12
No. of units outstanding at end of period 7,720
BT Equity 500 Index
Unit value at beginning of period (5/4/98) $10.00
Unit value at end of period 9.06
No. of units outstanding at end of period 37,675
8. The following is added to the Prospectus:
Year 2000
The Company's computer systems related to variable annuity products is Year 2000
compliant. Like other variable annuity companies, The Company would be adversely
affected if the computer systems used by the adviser, the sub- advisers and
other service providers to the Eligible Funds do not properly process and
calculate data-related information and data as of and after January 1, 2000. The
Company believes the adviser, sub-advisers and service providers are taking
steps that they believe are reasonably designed to address the Year 2000 issue.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact.
9. The Prospectus and Statement of Additional Information are dated December 31,
1998.
