AMENDMENT TO PARTICIPATION AGREEMENT

EXHIBIT 8(f)(ii)

AMENDMENT TO PARTICIPATION AGREEMENT

     The Fund Participation Agreement, dated October 1, 1999, by and among IL Annuity and Insurance Company, a life insurance company currently organized under the laws of Kansas, PIMCO Variable Insurance Trust, and PIMCO Funds Distributors LLC is hereby amended, effective as of June 1, 2001, as follows:

	1.		Paragraph 12.2, “the names and addresses of” in line 2 shall be replaced with “all information pertaining to”, and in line 4, “names and addresses and other” shall be deleted.
	2.		Paragraph 12.2, The following sentence shall be added at the end of this paragraph:

Each party hereto shall be solely responsible for the compliance of their officers, directors, employees, agents, independent contractors, and any affiliated and non-affiliated third parties with all applicable privacy-related laws and regulations including but not limited to the Xxxxx-Xxxxx- Xxxxxx Act and Regulation S-P.

3. Schedule A, Segregated Asset Accounts, is hereby amended to include:

IL Annuity and Insurance Co. Separate Account 1

4. Schedule A, is hereby amended to include the following section:

Contracts to be Issued by the Company

VCA-97
VSTAR-01

Designated Portfolios

High Yield Bond Portfolio (Administrative Class Shares)
Real Return Bond Portfolio (Administrative Class Shares)
Stocks PLUS Growth and Income Portfolio (Administrative Class Shares)

     All other terms and provisions of the Agreement not amended hereby shall remain in full force and effect.

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IN WITNESS WHEREOF, the parties have caused their duly authorized officers to execute this Agreement to Amend as of the date and year first above written.

PIMCO VARIABLE INSURANCE TRUST
By:		/s/ Xxxxxxx X. Xxxxxxx		7/31/01
		Name: Xxxxxxx X. Xxxxxxx		Date
		Title:   Senior VP
PIMCO FUNDS DISTRIBUTORS LLC
By:		/s/ Xxxxxx X. Xxxxxx, Xx.		7/25/01
		Name: Xxxxxx X. Xxxxxx, Xx.		Date
		Title:   Exec VP
IL ANNUITY AND INSURANCE COMPANY
By:		/s/ Xxxxxx X. XxXxxxx
		Name: Xxxxxx X. XxXxxxx		Date
		Title:   Sales Officer

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