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PAGE 1
Prospectus Supplement*
June 13, 1997
Privileged Assets Select Annuity
30325 D (4/97)
S-6102 C (4/97)
The following information replaces page 10 of the Privileged Assets Select
Annuity prospectuses dated May 1, 1997.
<TABLE>
<CAPTION>
INVESCO VIF Janus Aspen Warburg Pincus
Industrial Series World- Janus Aspen American Trust - Post-
Income wide Growth Series Growth Century VP American Venture Capital
(After expense (After expense (After expense Capital Century VP (After fee
reimbursement) reimbursement) reimbursement) Appreciation Value limitation)
<S> <C> <C> <C> <C> <C> <C>
Management fees .75% .66% .65% 1.00% 1.00% .62%
Other expenses .20 .14 .04 -- -- .78
Total .95%***^ .80%*** .69%*** 1.00%+ 1.00%+ 1.40%++
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*** The figures given above are based on gross expenses before expense offset
arrangements, if any, during 1996, for these funds. As of the date of this
prospectus, certain fees are being waived or expenses are being assumed by
the respective investment managers or service providers for certain of the
underlying mutual funds, in each case on a voluntary basis. Without such
waivers or reimbursements, the "Management fees," "Other expenses" and
"Total" that would have been incurred for the last completed fiscal year
would be: 0.75%, 0.44 and 1.19%, respectively, for the INVESCO VIF -
Industrial Income Portfolio; .77%, .14 and .91%, respectively, for Janus
Aspen Series Worldwide Growth and .79%, .04 and .83%, respectively, for
Janus Aspen Series Growth. See the Portfolios' prospectuses for a discussion
of fee waiver and expense reimbursements.
+ Operating expenses of the underlying funds at Dec. 31, 1996.
++ Absent the waiver of fees by the Portfolio's investment adviser and
co-administrator, Management Fees would equal 1.25%; Other Expenses would
equal 0.82%; and Total Portfolio Operating Expenses would equal 2.07%. Other
Expenses for the Portfolio is based on annualized estimates of expenses for
the fiscal year ending Dec. 31, 1997 net of any fee waivers or expense
reimbursements. The investment adviser has undertaken to limit the
Portfolio's Total Portfolio Operating Expenses to 1.40% through Dec. 31,
1997.
^ It should be noted that the Fund's actual operating expenses were lower than
the figures shown because the Fund's custodian fees were reduced under an
expense offset arrangement. However, as a result of an SEC requirement for
mutual funds to state their total operating expenses without crediting any
such expenses offset arrangements, the figures shown above do not reflect
these reductions. In comparing expenses for different years, please note the
Ratios of Expenses to Average Net Assets shown under "Financial Highlights",
in the Fund's prospectus, do reflect any reductions prior to the fiscal year
ended Dec. 31, 1996.
*Valid until next prospectus update.
