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SUPPLEMENT DATED JULY 22, 1996 TO THE PROSPECTUSES FOR:
. PACIFIC SELECT VARIABLE ANNUITY DATED APRIL 1, 1996
("PROSPECTUS"); AND
. PACIFIC ONE DATED APRIL, 1, 1996 ("PROSPECTUS")
THE PROVISIONS OF THE "CONTACTING PACIFIC MUTUAL" SECTION OF THE
PROSPECTUS FOR PACIFIC SELECT VARIABLE ANNUITY AND THE "INVESTOR INQUIRIES AND
SUBMITTED FORMS AND REQUESTS" SECTION OF THE PROSPECTUS FOR PACIFIC ONE ARE
MODIFIED AS FOLLOWS:
Pacific Mutual does not generally require a signature guarantee unless
it appears that the Owner's signature may have changed over time, an executed
application or confirmation of application, as applicable, in proper form, is
not received by Pacific Mutual, or due to other circumstances.
THE PROVISIONS OF THE "DEATH BENEFIT" AND "DEATH OF OWNER" SECTIONS AND
OF THE PARAGRAPHS ENTITLED "OPTION 4 - FIXED PAYMENTS FOR SPECIFIED PERIOD" AND
"OPTION 5 - FIXED PAYMENTS OF A SPECIFIED AMOUNT" OF THE "ANNUITY OPTIONS"
SECTION OF THE PROSPECTUS FOR PACIFIC SELECT VARIABLE ANNUITY ARE MODIFIED AS
FOLLOWS:
In the event there is no Beneficiary living on the date of death of the
Annuitant during the Accumulation Period, Pacific Mutual will pay the death
benefit proceeds to the Owner, if living; otherwise to the Owner's estate. If
death of the Annuitant occurs on or after the Annuity Date and there is no
living Beneficiary on the date of death, any remaining unpaid payments for a
specified period or specified amount will be made to the Owner, if living;
otherwise to the Owner's estate.
After the Contract Year in which the Annuitant reaches 85 or after the
death of the Owner or Annuitant, whichever occurs first, any Minimum Guaranteed
Death Benefit will no longer be adjusted on each fifth Contract Anniversary
(except for adjustments for reductions caused by partial withdrawals and for
premium payments).
If the surviving spouse of the deceased Owner is the Owner Beneficiary,
or is the sole surviving joint tenant or Contingent Owner, such spouse may
continue the Contract in force as Owner (and Annuitant if the deceased Owner was
the sole Annuitant), rather than receive the death benefit proceeds, until the
earliest of the spouse's death, the death of the Annuitant, or the Annuity Start
Date.
THE PROVISIONS OF THE "DEATH BENEFITS" SECTION OF THE PROSPECTUS FOR
PACIFIC ONE ARE MODIFIED AS FOLLOWS:
We will pay the death benefit proceeds in a single sum upon receipt of
proof (in good form) of death and instructions regarding payment, or, if the
recipient chooses, as an annuity.
THE PROVISIONS OF THE PARAGRAPH ENTITLED "DISTRIBUTION-AT-DEATH RULES"
OF THE ADDITIONAL CONSIDERATIONS" SECTION UNDER "FEDERAL TAX MATTERS" OF THE
PROSPECTUS FOR PACIFIC SELECT VARIABLE ANNUITY AND OF THE PARAGRAPH ENTITLED
"TAXES PAYABLE ON ANNUITY PAYMENTS" OF THE "TAXES PAYABLE BY CONTRACT OWNERS:
GENERAL RULES" SECTION UNDER "FEDERAL TAX MATTERS" OF THE PROSPECTUS FOR PACIFIC
ONE ARE MODIFIED BY ADDING THE FOLLOWING:
If the Contract Owner or Annuitant dies and within sixty days after the
date on which a lump sum death benefit first becomes payable the designated
recipient elects to receive annuity payments in lieu of the lump sum death
benefit, then the designated recipient will not be treated for tax purposes as
having received the lump sum death benefit in the tax year it first becomes
payable. Rather, in that case, the designated recipient will be taxed on the
annuity payments as they are received.
