<PAGE>
As filed with the Securities and Exchange Commission on December 4, 2000.
File No. 333-93319
811-07329
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
POST-EFFECTIVE AMENDMENT NO. 1
TO THE FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF
SECURITIES OF UNIT INVESTMENT TRUSTS REGISTERED ON
FORM N-8B-2
A. Exact name of trust: Separate Account VL I
B. Name of depositor: Hartford Life and Annuity Insurance Company
C. Complete address of depositor's principal executive offices:
P. O. Box 2999
Hartford, CT 06104-2999
D. Name and complete address of agent for service:
Marianne O'Doherty
Hartford Life and Annuity Insurance Company
P. O. Box 2999
Hartford, CT 06104-2999
It is proposed that this filing will become effective:
___ immediately upon filing pursuant to paragraph (b) of Rule 485
_X_ on January 2, 2001 pursuant to paragraph (b) of Rule 485
___ 60 days after filing pursuant to paragraph (a)(1) of Rule 485
___ on __________, 2000 pursuant to paragraph (a)(1) of Rule 485
___ this post-effective amendment designates a new effective date
___ for a previously filed post-effective amendment.
E. Title and amount of securities being registered: Pursuant to Rule
24f-2 under the Investment Company Act of 1940, the Registrant has
registered an indefinite amount of securities.
F. Proposed maximum aggregate offering price to the public of the
securities being registered: Not yet determined.
G. Amount of filing fee: Not applicable.
H. Approximate date of proposed public offering: As soon as practicable
after the effective date of this registration statement.
<PAGE>
RECONCILIATION AND TIE BETWEEN
FORM N-8B-2 AND PROSPECTUS
ITEM NO. OF FORM N-8B-2 CAPTION IN PROSPECTUS
----------------------- ---------------------
1. Cover Page
2. Cover Page
3. Not Applicable
4. Statement of Additional Information -
Distribution of the Policies
5. About Us - Separate Account VL I
6. About Us - Separate Account VL I
7. Not required by Form S-6
8. Not required by Form S-6
9. Legal Proceedings
10. About Us - Separate Account VL I; The
Funds
11. About Us - Separate Account VL I; The
Funds
12. About Us - The Funds
13. Fee Table; Charges and Deductions
14. Premiums
15. Premiums
16. Premiums
17. Making Withdrawals From Your Policy
18. About Us - The Funds; Charges and
Deductions
19. Your Policy - Contract Rights
20. Not Applicable
21. Loans
22. Not Applicable
23. Not Applicable
24. Not Applicable
25. About Us - Hartford Life and Annuity
Insurance Company
26. Not Applicable
27. About Us - Hartford Life and Annuity
Insurance Company
28. Statement of Additional Information -
General
29. About Us - Hartford Life and Annuity
Insurance Company
30. Not Applicable
31. Not Applicable
32. Not Applicable
33. Not Applicable
34. Not Applicable
35. Statement of Additional Information -
Distribution of the Policies
36. Not required by Form S-6
37. Not Applicable
38. Statement of Additional Information -
Distribution of the Policies
39. Statement of Additional Information -
Distribution of the Policies
40. Not Applicable
41. Statement of Additional Information -
Distribution of the Policies
42. Not Applicable
43. Not Applicable
44. Premiums
45. Not Applicable
46. Premiums; Making Withdrawals From Your
Policy
47. About Us - The Funds
48. Cover Page; About Us - Hartford Life
and Annuity Insurance Comapany
49. Not Applicable
50. About Us - Separate Account VL I
51. Not Applicable
52. About Us - The Funds
53. Taxes
54. Not Applicable
55. Not Applicable
56. Not Required by Form S-6
57. Not Required by Form S-6
58. Not Required by Form S-6
59. Not Required by Form S-6
<PAGE>
The Prospectus is incorporated by reference in this Post-Effective Amendment
No. 1, by reference to Pre-Effective Amendment No. 1 to the Registration
Statement on Form S-6 (File No. 333-93319), as filed on April 12, 2000 and
declared effective on May 1, 2000.
A Supplement to the Prospectus, dated January 2, 2001 is included in this
Post-Effective Amendment.
<PAGE>
<TABLE>
<S> <C>
STAG ACCUMULATOR VARIABLE UNIVERSAL LIFE
SEPARATE ACCOUNT VL I
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SUPPLEMENT DATED JANUARY 2, 2001 TO PROSPECTUS
DATED MAY 1, 2000 [LOGO]
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Effective January 15, 2001 the following changes apply:
The following Sub-Accounts are added in alphabetical order to the cover page of
the prospectus:
<TABLE>
<CAPTION>
SUB-ACCOUNT PURCHASES SHARES OF:
<S> <C>
American Funds Global Growth Fund Sub-Account Class 2 of the Global Growth Fund of American
Funds Insurance Series
American Funds Global Small Capitalization Fund Class 2 of the Global Small Capitalization Fund of
Sub-Account American Funds Insurance Series
American Funds Growth Fund Sub-Account Class 2 of the Growth Fund of American Funds
Insurance Series
American Funds Growth-Income Fund Sub-Account Class 2 of the Growth-Income Fund of American
Funds Insurance Series
Hartford Global Leaders Sub-Account Class IA of Hartford Global Leaders HLS Fund of
Hartford Series Fund, Inc.
Hartford Global Technology Sub-Account Class IA of Hartford Global Technology HLS Fund of
Hartford Series Fund, Inc.
</TABLE>
Under the section entitled "Summary of Benefits and Risks", the paragraph
entitled "Investment Choices" is deleted and replaced with the following:
INVESTMENT CHOICES -- You may invest in up to 9 different investment choices
within your policy, from a choice of 42 investment options and a fixed Account.
You may transfer money amount your investment choices, subject to restrictions.
The table of Annual Fund Operating Expenses is deleted and replaced with the
following:
<TABLE>
<CAPTION>
TOTAL FUND
OPERATING
OTHER EXPENSES
MANAGEMENT FEES 12B-1 FEES EXPENSES (INCLUDING ANY
(INCLUDING ANY (INCLUDING ANY (INCLUDING ANY WAIVERS AND/OR ANY
WAIVERS) WAIVERS) REIMBURSEMENTS) REIMBURSEMENTS)
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
American Funds Global Growth Fund 0.68% 0.25% 0.03% 0.96%
---------------------------------------------------------------------------------------------------------------------------
American Funds Global Small Capitalization Fund 0.79% 0.25% 0.03% 1.07%
---------------------------------------------------------------------------------------------------------------------------
American Funds Growth Fund 0.38% 0.25% 0.01% 0.64%
---------------------------------------------------------------------------------------------------------------------------
American Funds Growth-Income Fund 0.34% 0.25% 0.01% 0.60%
---------------------------------------------------------------------------------------------------------------------------
Hartford Advisers HLS Fund 0.63% N/A 0.02% 0.65%
---------------------------------------------------------------------------------------------------------------------------
Hartford Bond HLS Fund 0.49% N/A 0.03% 0.52%
---------------------------------------------------------------------------------------------------------------------------
Hartford Capital Appreciation HLS Fund 0.64% N/A 0.02% 0.66%
---------------------------------------------------------------------------------------------------------------------------
Hartford Dividend and Growth HLS Fund 0.65% N/A 0.03% 0.68%
---------------------------------------------------------------------------------------------------------------------------
Hartford Global Leaders HLS Fund 0.74% N/A 0.12% 0.86%
---------------------------------------------------------------------------------------------------------------------------
Hartford Global Technology HLS Fund (1) 0.85% N/A 0.25% 1.10%
---------------------------------------------------------------------------------------------------------------------------
Hartford Growth and Income HLS Fund 0.78% N/A 0.04% 0.82%
---------------------------------------------------------------------------------------------------------------------------
Hartford Index HLS Fund 0.40% N/A 0.03% 0.43%
---------------------------------------------------------------------------------------------------------------------------
Hartford International Advisers HLS Fund 0.76% N/A 0.09% 0.85%
---------------------------------------------------------------------------------------------------------------------------
Hartford International Opportunities
HLS Fund 0.69% N/A 0.09% 0.78%
---------------------------------------------------------------------------------------------------------------------------
Hartford MidCap HLS Fund 0.76% N/A 0.03% 0.79%
---------------------------------------------------------------------------------------------------------------------------
Hartford Money Market HLS Fund 0.45% N/A 0.02% 0.47%
---------------------------------------------------------------------------------------------------------------------------
Hartford Mortgage Securities HLS Fund 0.45% N/A 0.03% 0.48%
---------------------------------------------------------------------------------------------------------------------------
Hartford Small Company HLS Fund 0.75% N/A 0.03% 0.78%
---------------------------------------------------------------------------------------------------------------------------
Hartford Stock HLS Fund 0.46% N/A 0.02% 0.48%
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
2 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL FUND
OPERATING
OTHER EXPENSES
MANAGEMENT FEES 12B-1 FEES EXPENSES (INCLUDING ANY
(INCLUDING ANY (INCLUDING ANY (INCLUDING ANY WAIVERS AND/OR ANY
WAIVERS) WAIVERS) REIMBURSEMENTS) REIMBURSEMENTS)
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Asia Pacific Growth Fund 0.80% N/A 0.33% 1.13%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Diversified Income Fund 0.68% N/A 0.10% 0.78%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Global Asset Allocation Fund 0.65% N/A 0.12% 0.77%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Global Growth Fund 0.61% N/A 0.12% 0.73%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Growth and Income Fund 0.46% N/A 0.04% 0.50%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Health Sciences Fund 0.70% N/A 0.13% 0.83%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT High Yield Fund 0.65% N/A 0.07% 0.72%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Income Fund 0.60% N/A 0.07% 0.67%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT International Growth Fund 0.80% N/A 0.22% 1.02%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT International Growth and Income Fund 0.80% N/A 0.18% 0.98%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT International New Opportunities Fund 1.08% N/A 0.33% 1.41%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Investors Fund 0.63% N/A 0.08% 0.71%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Money Market Fund 0.41% N/A 0.08% 0.49%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT New Opportunities Fund 0.54% N/A 0.05% 0.59%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT New Value Fund 0.70% N/A 0.10% 0.80%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT OTC & Emerging Growth Fund (2) 0.53% N/A 0.37% 0.90%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT The George Putnam Fund of Boston 0.65% N/A 0.18% 0.83%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Utilities Growth and Income Fund 0.65% N/A 0.06% 0.71%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Vista Fund 0.65% N/A 0.10% 0.75%
---------------------------------------------------------------------------------------------------------------------------
Putnam VT Voyager Fund 0.53% N/A 0.04% 0.57%
---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Asset Manager Portfolio (3) 0.53% N/A 0.09% 0.62%
---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity Income Portfolio (3) 0.48% N/A 0.08% 0.56%
---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio (3) 0.73% N/A 0.14% 0.87%
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Hartford Global Technology HLS Fund is a new fund. Total Fund Operating
Expenses are based on annualized estimates of such expenses to be incurred
during the current fiscal year.
(2) Total Annual Fund Operating Expenses for Putnam VT OTC & Emerging Growth
Fund reflect voluntary reductions and reimbursements through at least
December 31, 2000. Absent voluntary reductions and reimbursements, Total
Annual Fund Operating Expenses would have been as follows:
<TABLE>
<CAPTION>
TOTAL
FUND
OTHER OPERATING
MANAGEMENT FEES EXPENSES EXPENSES
<S> <C> <C> <C>
----------------------------------------------------------------------------------------------------
Putnam VT OTC & Emerging Growth Fund 0.70% 0.37% 1.07%
----------------------------------------------------------------------------------------------------
</TABLE>
(3) A portion of the brokerage commissions that certain funds pay was used to
reduce fund expenses. In addition, through arrangements with certain funds
of FMR on behalf of certain funds' custodian, credits realized as a result
of uninvested cash balances were used to reduce a portion of each applicable
fund's expenses. These reductions will continue through at least
December 31, 2000 pursuant to an agreement between the adviser and the
funds. Without these reductions, Total Fund Operating Expenses would have
been:
<TABLE>
<CAPTION>
TOTAL
FUND
OTHER OPERATING
MANAGEMENT FEES EXPENSES EXPENSES
<S> <C> <C> <C>
----------------------------------------------------------------------------------------------------
Fidelity VIP II Asset Manager Portfolio 0.53% 0.10% 0.63%
----------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio 0.48% 0.09% 0.57%
----------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio 0.73% 0.18% 0.91%
----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 3
--------------------------------------------------------------------------------
The following is added in the section entitled "About Us" immediately following
the Hartford Ratings table:
These ratings apply to Hartford's ability to meet its obligations under the
Contract. The ratings do not apply to the Separate Account or the underlying
Funds.
Under the section entitled "The Funds", the following language is added in
alphabetical order:
AMERICAN FUNDS GLOBAL GROWTH FUND -- Seeks long-term growth of capital by
investing primarily in common stocks of issuers domiciled around the world.
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND -- Seeks long-term growth of
capital by investing primarily in equity securities of smaller companies located
around the world that typically have market capitalization of $50 million to
$1.5 billion.
AMERICAN FUNDS GROWTH FUND -- Seeks long-term growth of capital by investing
primarily in common stocks which demonstrate the potential for appreciation.
AMERICAN FUNDS GROWTH-INCOME FUND -- Seeks growth of capital and income by
investing primarily in common stocks or other securities which demonstrate the
potential for appreciation and/or dividends.
HARTFORD GLOBAL LEADERS HLS FUND -- Seeks growth of capital by investing
primarily in equity securities issued through high-quality growth companies
worldwide that, in the opinion of Wellington Management, are leaders within
their respective industries as indicated by established market presence and
strong competitive position on a global, regional or country basis. Sub-advised
by Wellington Management.
HARTFORD GLOBAL TECHNOLOGY HLS FUND -- Seeks long-term capital appreciation by
investing in equity securities of technology companies worldwide. Sub-advised by
Wellington Management.
The Funds may not be available in all states.
Under the section entitled "The Funds", under the sub-section entitled
"Investment Advisers," the following paragraph is inserted as the first
paragraph of the section:
American Funds Global Growth Fund, American Funds Global Small Capitalization
Fund, American Funds Growth Fund and American Funds Growth-Income Fund are all
part of American Funds Insurance Series. American Funds Insurance Series is a
fully managed, diversified, open-end investment company organized as a
Massachusetts business trust in 1983. American Funds Insurance Series offers two
classes of fund shares: Class 1 shares and Class 2 shares. This policy invests
only in Class 2 shares of American Funds Insurance Series. The investment
adviser for each of the funds of American Funds Insurance Series is Capital
Research and Management Company located at 333 South Hope Street, Los Angeles,
California 90071. Capital Research and Management Company is a wholly owned
subsidiary of The Capital Growth Companies, Inc.
Under the section entitled "Investment Advisers", the second paragraph is
deleted and replaced with the following:
Each Hartford HLS Fund, except for Hartford Global Leaders HLS Fund, Hartford
Global Technology HLS Fund and Hartford Growth and Income HLS Fund is a separate
Maryland corporation registered with the Securities and Exchange Commission as
an open-end management investment company. Hartford Global Leaders HLS Fund and
Hartford Growth and Income HLS Fund are diversified series of Hartford Series
Fund, Inc., a Maryland corporation, also registered with the Securities and
Exchange Commission as an open-end management investment company. Hartford
Global Technology HLS Fund is a non-diversified series of Hartford Series Fund,
Inc. The shares of each Fund have been divided into Class IA and Class IB. Only
Class IA shares are available in this policy.
The fourth paragraph under the sub-section entitled "Illustration of Death
Benefits, Account Values and Cash Surrender Values" in the section entitled
"Statement of Additional Information" is deleted and replaced with the
following:
The amounts shown for the Death Benefit, Account Value and Cash Surrender Value
as of the end of each Policy Year take into account an average daily charge
equal to an annual charge of 0.75% of the average daily net assets of the Funds
for investment advisory and administrative service fees. The gross annual
investment return rates of 0%, 6% and 12% on the Fund's assets are equal to net
annual investment return rates (net of the 0.75% average daily charge) of
-0.75%, 5.25% and 11.25%, respectively.
The six "Illustration of Death Benefits, Account Values and Cash Surrender
Values" tables in the section entitled "Statement of Additional Information" are
replaced with the attached six tables.
The attached Financial Statements are added to the section entitled "Statement
of Additional Information."
THIS SUPPLEMENT SHOULD BE RETAINED WITH THE PROSPECTUS FOR FUTURE REFERENCE.
HV-2852
333-93391
<PAGE>
4 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
$500,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED NON-NICOTINE
$8,500 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS ------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------
1 8,925 6,304 0 500,000 6,096 0 500,000
2 18,296 12,164 4,269 500,000 10,106 2,211 500,000
3 28,136 18,193 10,903 500,000 14,113 6,823 500,000
4 38,468 24,428 17,743 500,000 18,105 11,420 500,000
5 49,316 30,900 24,820 500,000 22,061 15,981 500,000
6 60,707 39,412 33,937 500,000 27,757 22,282 500,000
7 72,667 48,273 43,403 500,000 33,448 28,578 500,000
8 85,226 57,506 53,241 500,000 39,108 34,843 500,000
9 98,412 67,116 63,456 500,000 44,696 41,036 500,000
10 112,258 77,105 77,105 500,000 50,182 50,246 500,000
11 126,796 87,921 87,921 500,000 55,682 55,682 500,000
12 142,060 99,169 99,169 500,000 61,051 61,051 500,000
13 158,088 110,866 110,866 500,000 66,263 66,263 500,000
14 174,918 123,035 123,035 500,000 71,291 71,291 500,000
15 192,589 135,708 135,708 500,000 76,092 76,092 500,000
16 211,143 148,902 148,902 500,000 80,601 80,601 500,000
17 230,625 162,646 162,646 500,000 84,738 84,738 500,000
18 251,082 176,974 176,974 500,000 88,405 88,405 500,000
19 272,561 191,922 191,922 500,000 91,495 91,495 500,000
20 295,114 207,522 207,522 500,000 93,892 93,892 500,000
25 425,964 299,216 299,216 500,000 91,112 91,112 500,000
30 592,967 416,791 416,791 500,000 39,086 39,086 500,000
--------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
These values reflect Current Front-End Sales Loads of 3.75% in all policy years
and Guaranteed Front-End Sales Loads of 5.75% in all policy years.
The surrender charge effective in any year can be determined by subtracting the
cash surrender value from the account value.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION 5
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF ACCOUNT VALUE
$500,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED NON-NICOTINE
$11,500 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS ------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------
1 12,075 8,238 0 508,238 7,967 0 507,967
2 24,754 16,096 8,201 516,096 13,872 5,977 513,872
3 38,066 24,197 16,907 524,197 19,829 12,539 519,829
4 52,045 32,579 25,894 532,579 25,827 19,142 525,827
5 66,722 41,276 35,196 541,276 31,842 25,762 531,842
6 82,133 53,115 47,640 553,115 40,666 35,191 540,666
7 98,315 65,422 60,552 565,422 49,562 44,692 549,562
8 115,305 78,225 73,960 578,225 58,495 54,230 558,495
9 133,146 91,529 87,869 591,529 67,418 63,758 567,418
10 151,878 105,336 105,336 605,336 76,288 76,288 576,288
11 171,547 120,236 120,236 620,236 85,288 85,288 585,288
12 192,199 135,702 135,702 635,702 94,195 94,195 594,195
13 213,884 151,745 151,745 651,745 102,973 102,973 602,973
14 236,653 168,382 168,382 668,382 111,582 111,582 611,582
15 260,561 185,637 185,637 685,637 119,962 119,962 619,962
16 285,664 203,514 203,514 703,514 128,029 128,029 628,029
17 312,022 222,027 222,027 722,027 135,678 135,678 635,678
18 339,699 241,195 241,195 741,195 142,785 142,785 642,785
19 368,758 261,030 261,030 761,030 149,217 149,217 649,217
20 399,271 281,536 281,536 781,536 154,836 154,836 654,836
25 576,305 397,927 397,927 897,927 166,105 166,105 666,105
30 802,249 530,541 530,541 1,030,541 128,249 128,249 628,249
--------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
These values reflect Current Front-End Sales Loads of 3.75% in all policy years
and Guaranteed Front-End Sales Loads of 5.75% in all policy years.
The surrender charge effective in any year can be determined by subtracting the
cash surrender value from the account value.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
6 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
$500,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED NON-NICOTINE
$8,500 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS ------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------
1 8,925 6,718 0 500,000 6,499 0 500,000
2 18,296 13,390 5,495 500,000 11,248 3,353 500,000
3 28,136 20,664 13,374 500,000 16,310 9,020 500,000
4 38,468 28,634 21,949 500,000 21,708 15,023 500,000
5 49,316 37,397 31,317 500,000 27,460 21,380 500,000
6 60,707 48,887 43,412 500,000 35,441 29,966 500,000
7 72,667 61,551 56,681 500,000 44,010 39,140 500,000
8 85,226 75,523 71,258 500,000 53,212 48,947 500,000
9 98,412 90,933 87,273 500,000 63,087 59,427 500,000
10 112,258 107,921 107,921 500,000 73,691 73,691 500,000
11 126,796 127,242 127,242 500,000 85,318 85,318 500,000
12 142,060 148,607 148,607 500,000 97,896 97,896 500,000
13 158,088 172,247 172,247 500,000 111,541 111,541 500,000
14 174,918 198,430 198,430 500,000 126,385 126,385 500,000
15 192,589 227,460 227,460 500,000 142,573 142,573 500,000
16 211,143 259,670 259,670 500,000 160,264 160,264 500,000
17 230,625 295,444 295,444 500,000 179,635 179,635 500,000
18 251,082 335,221 335,221 500,000 200,899 200,899 500,000
19 272,561 379,496 379,496 500,000 224,318 224,318 500,000
20 295,114 428,804 428,804 500,000 250,214 250,214 500,000
25 425,964 770,892 770,892 894,234 434,952 434,952 504,544
30 592,967 1,342,421 1,342,421 1,436,391 755,936 755,936 808,852
--------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
These values reflect Current Front-End Sales Loads of 3.75% in all policy years
and Guaranteed Front-End Sales Loads of 5.75% in all policy years.
The surrender charge effective in any year can be determined by subtracting the
cash surrender value from the account value.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION 7
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF ACCOUNT VALUE
$500,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED NON-NICOTINE
$11,500 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS ------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------
1 12,075 8,789 289 508,789 8,504 4 508,504
2 24,754 17,724 9,829 517,724 15,400 7,505 515,400
3 38,066 27,478 20,188 527,478 22,799 15,509 522,799
4 52,045 38,165 31,480 538,165 30,736 24,051 530,736
5 66,722 49,904 43,824 549,904 39,241 33,161 539,241
6 82,133 65,705 60,230 565,705 51,251 45,776 551,251
7 98,315 83,091 78,221 583,091 64,181 59,311 564,181
8 115,305 102,232 97,967 602,232 78,087 73,822 578,087
9 133,146 123,296 119,636 623,296 93,020 89,360 593,020
10 151,878 146,460 146,460 646,460 109,044 109,044 609,044
11 171,547 172,723 172,723 672,723 126,559 126,559 626,559
12 192,199 201,673 201,673 701,673 145,413 145,413 645,413
13 213,884 233,583 233,583 733,583 165,718 165,718 665,718
14 236,653 268,764 268,764 768,764 187,591 187,591 687,591
15 260,561 307,566 307,566 807,566 211,148 211,148 711,148
16 285,664 350,355 350,355 850,355 236,495 236,495 736,495
17 312,022 397,547 397,547 897,547 263,728 263,728 763,728
18 339,699 449,608 449,608 949,608 292,943 292,943 792,943
19 368,758 507,046 507,046 1,007,046 324,240 324,240 824,240
20 399,271 570,416 570,416 1,070,416 357,732 357,732 857,732
25 576,305 1,007,178 1,007,178 1,507,178 563,765 563,765 1,063,765
30 802,249 1,724,163 1,724,163 2,224,163 846,519 846,519 1,346,519
--------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
These values reflect Current Front-End Sales Loads of 3.75% in all policy years
and Guaranteed Front-End Sales Loads of 5.75% in all policy years.
The surrender charge effective in any year can be determined by subtracting the
cash surrender value from the account value.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
8 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
$500,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED NON-NICOTINE
$8,500 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS ------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------
1 8,925 5,891 0 500,000 5,694 0 500,000
2 18,296 10,990 3,095 500,000 9,015 1,120 500,000
3 28,136 15,922 8,632 500,000 12,106 4,816 500,000
4 38,468 20,715 14,030 500,000 14,956 8,271 500,000
5 49,316 25,393 19,313 500,000 17,547 11,467 500,000
6 60,707 31,693 26,218 500,000 21,602 16,127 500,000
7 72,667 37,861 32,991 500,000 25,328 20,458 500,000
8 85,226 43,905 39,640 500,000 28,700 24,435 500,000
9 98,412 49,815 46,155 500,000 31,678 28,018 500,000
10 112,258 55,574 55,574 500,000 34,232 34,232 500,000
11 126,796 61,507 61,507 500,000 36,436 36,436 500,000
12 142,060 67,258 67,258 500,000 38,174 38,174 500,000
13 158,088 72,818 72,818 500,000 39,422 39,422 500,000
14 174,918 78,183 78,183 500,000 40,152 40,152 500,000
15 192,589 83,354 83,354 500,000 40,318 40,318 500,000
16 211,143 88,316 88,316 500,000 39,855 39,855 500,000
17 230,625 93,060 93,060 500,000 38,677 38,677 500,000
18 251,082 97,585 97,585 500,000 36,684 36,684 500,000
19 272,561 101,878 101,878 500,000 33,767 33,767 500,000
20 295,114 105,926 105,926 500,000 29,807 29,807 500,000
25 425,964 123,672 123,672 500,000 0 0 0
30 592,967 130,898 130,898 500,000 0 0 0
--------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
These values reflect Current Front-End Sales Loads of 3.75% in all policy years
and Guaranteed Front-End Sales Loads of 5.75% in all policy years.
The surrender charge effective in any year can be determined by subtracting the
cash surrender value from the account value.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION 9
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF ACCOUNT VALUE
$500,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED NON-NICOTINE
$11,500 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS ------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------
1 12,075 7,689 0 507,689 7,432 0 507,432
2 24,754 14,538 6,643 514,538 12,411 4,516 512,411
3 38,066 21,181 13,891 521,181 17,112 9,822 517,112
4 52,045 27,647 20,962 527,647 21,525 14,840 521,525
5 66,722 33,960 27,880 533,960 25,628 19,548 525,628
6 82,133 42,844 37,369 542,844 32,132 26,657 532,132
7 98,315 51,539 46,669 551,539 38,226 33,356 538,226
8 115,305 60,052 55,787 560,052 43,881 39,616 543,881
9 133,146 68,370 64,710 568,370 49,055 45,395 549,055
10 151,878 76,476 76,476 576,476 53,716 53,716 553,716
11 171,547 84,796 84,796 584,796 57,987 57,987 557,987
12 192,199 92,868 92,868 592,868 61,704 61,704 561,704
13 213,884 100,680 100,680 600,680 64,842 64,842 564,842
14 236,653 108,223 108,223 608,223 67,384 67,384 567,384
15 260,561 115,495 115,495 615,495 69,261 69,261 569,261
16 285,664 122,474 122,474 622,474 70,437 70,437 570,437
17 312,022 129,146 129,146 629,146 70,824 70,824 570,824
18 339,699 135,505 135,505 635,505 70,332 70,332 570,332
19 368,758 141,533 141,533 641,533 68,866 68,866 568,866
20 399,271 147,208 147,208 647,208 66,337 66,337 566,337
25 576,305 171,756 171,756 671,756 35,252 35,252 535,252
30 802,249 181,225 181,225 681,225 0 0 0
--------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
These values reflect Current Front-End Sales Loads of 3.75% in all policy years
and Guaranteed Front-End Sales Loads of 5.75% in all policy years.
The surrender charge effective in any year can be determined by subtracting the
cash surrender value from the account value.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
INDEX FOR HARTFORD AND FIDELITY
SUB-ACCOUNTS
Statements of Assets and
Liabilities For the Period Ended
September 30, 2000
(unaudited)..................... SA-2
Statements of Operations For the
Period Ended September 30, 2000
(unaudited)..................... SA-4
Statements of Changes in Net
Assets For the Period Ended
September 30, 2000
(unaudited)..................... SA-6
INDEX FOR PUTNAM SUB-ACCOUNTS
Statements of Assets and
Liabilities For the Period Ended
September 30, 2000
(unaudited)..................... SA-8
Statements of Operations For the
Period Ended September 30, 2000
(unaudited)..................... SA-12
Statements of Changes in Net
Assets For the Period Ended
September 30, 2000
(unaudited)..................... SA-15
</TABLE>
SA-1
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Bond Stock Money Advisers Capital Mortgage Index
Fund Fund Market Fund Appreciation Securities Fund
Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account
Sub-Account Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
--------------------------------------------------------------------------------------------------------------------------
HARTFORD BOND HLS FUND, INC. --
CLASS IA
Shares 13,643,119
Cost $14,431,575
.........................................................................................................................
Market Value $14,507,329 $ -- $ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD STOCK HLS
FUND, INC. -- CLASS IA
Shares 13,086,490
Cost $84,205,177
.........................................................................................................................
Market Value -- 81,343,099 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD MONEY MARKET HLS
FUND, INC. -- CLASS IA
Shares 36,519,763
Cost $36,519,763
.........................................................................................................................
Market Value -- -- 36,519,763 -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD ADVISERS HLS
FUND, INC. -- CLASS IA
Shares 14,055,338
Cost $40,081,143
.........................................................................................................................
Market Value -- -- -- 38,134,198 -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS
FUND, INC. -- CLASS IA
Shares 11,182,083
Cost $60,071,250
.........................................................................................................................
Market Value -- -- -- -- 70,610,458 -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD MORTGAGE SECURITIES HLS
FUND, INC. -- CLASS IA
Shares 1,014,534
Cost $1,106,370
.........................................................................................................................
Market Value -- -- -- -- -- 1,113,951 --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INDEX HLS
FUND, INC. -- CLASS IA
Shares 8,754,516
Cost $31,660,930
.........................................................................................................................
Market Value -- -- -- -- -- -- 35,692,303
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS FUND, INC. --
CLASS IA
Shares 8,618,478
Cost $12,825,896
.........................................................................................................................
Market Value -- -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life & Annuity
Insurance Company 150,933 179,214 2,332,555 135,462 165,905 15,888 137,378
.........................................................................................................................
Receivable from fund shares sold -- -- -- -- -- -- --
.........................................................................................................................
Total Assets 14,658,262 81,522,313 38,852,318 38,269,660 70,776,363 1,129,839 35,829,681
.........................................................................................................................
LIABILITIES:
Due to Hartford Life & Annuity
Insurance Company -- -- -- -- -- -- --
.........................................................................................................................
Payable for fund shares purchased 150,968 179,680 2,328,216 135,429 166,279 15,894 138,722
.........................................................................................................................
Total Liabilities 150,968 179,680 2,328,216 135,429 166,279 15,894 138,722
--------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $14,507,294 $81,342,633 $36,524,102 $38,134,231 $70,610,084 $1,113,945 $35,690,959
--------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 9,274,025 22,234,544 25,556,915 14,145,637 17,382,099 716,255 10,133,256
.........................................................................................................................
Unit Values $ 1.564293 $ 3.658390 $ 1.429128 $ 2.695830 $ 4.062230 $ 1.555236 $ 3.522161
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
September 30, 2000 International
Opportunities
Fund
Sub-Account
------------------------------------------------------------
ASSETS
Investments:
------------------------------------------------------------------------
HARTFORD BOND HLS FUND, INC. --
CLASS IA
Shares 13,643,119
Cost $14,431,575
................................
Market Value $ --
------------------------------------------------------------------------------------
HARTFORD STOCK HLS
FUND, INC. -- CLASS IA
Shares 13,086,490
Cost $84,205,177
................................
Market Value --
------------------------------------------------------------------------------------------------
HARTFORD MONEY MARKET HLS
FUND, INC. -- CLASS IA
Shares 36,519,763
Cost $36,519,763
................................
Market Value --
------------------------------------------------------------------------------------------------------------
HARTFORD ADVISERS HLS
FUND, INC. -- CLASS IA
Shares 14,055,338
Cost $40,081,143
................................
Market Value --
------------------------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS
FUND, INC. -- CLASS IA
Shares 11,182,083
Cost $60,071,250
................................
Market Value --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD MORTGAGE SECURITIES HLS
FUND, INC. -- CLASS IA
Shares 1,014,534
Cost $1,106,370
................................
Market Value --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INDEX HLS
FUND, INC. -- CLASS IA
Shares 8,754,516
Cost $31,660,930
................................
Market Value --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS FUND, INC. --
CLASS IA
Shares 8,618,478
Cost $12,825,896
................................
Market Value 12,558,768
--------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life & Annuity
Insurance Company 98,053
................................
Receivable from fund shares sold --
................................
Total Assets 12,656,821
................................
LIABILITIES:
Due to Hartford Life & Annuity
Insurance Company --
................................
Payable for fund shares purchased 98,191
................................
Total Liabilities 98,191
--------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $12,558,630
--------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 6,014,160
................................
Unit Values $ 2.088177
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-2
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Dividend Growth International Small MidCap Fidelity Fidelity Fidelity
and Growth and Income Advisers Company Fund VIP VIP VIP II
Fund Fund Fund Fund Sub-Account Equity-Income Overseas Asset
Sub-Account Sub-Account Sub-Account Sub-Account Portfolio Portfolio Manager
Sub-Account Sub-Account Portfolio
Sub-Account
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
-------------------------------------------------------------------------------------------------------------------------------
HARTFORD DIVIDEND AND GROWTH
HLS FUND, INC. -- CLASS IA
Shares 12,889,773
Cost $26,595,604
..............................................................................................................................
Market Value $26,467,949 $ -- $ -- $ -- $ -- $ -- $ -- $ --
-------------------------------------------------------------------------------------------------------------------------------
HARTFORD GROWTH AND INCOME
HLS FUND, INC. -- CLASS IA
Shares 4,174,639
Cost $5,731,014
..............................................................................................................................
Market Value -- 6,005,823 -- -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
ADVISERS HLS FUND, INC. --
CLASS IA
Shares 533,544
Cost $693,903
..............................................................................................................................
Market Value -- -- 656,050 -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
HARTFORD SMALL COMPANY HLS
FUND, INC. -- CLASS IA
Shares 5,471,936
Cost $11,332,623
..............................................................................................................................
Market Value -- -- -- 10,434,867 -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
HARTFORD MIDCAP HLS
FUND, INC. -- CLASS IA
Shares 5,857,498
Cost $12,710,913
..............................................................................................................................
Market Value -- -- -- -- 15,377,199 -- -- --
-------------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Shares 542,193
Cost $13,193,347
..............................................................................................................................
Market Value -- -- -- -- -- 13,305,425 -- --
-------------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP OVERSEAS
PORTFOLIO
Shares 243,823
Cost $5,253,574
..............................................................................................................................
Market Value -- -- -- -- -- -- 5,305,578 --
-------------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP II ASSET MANAGER
PORTFOLIO
Shares 142,813
Cost $2,418,803
..............................................................................................................................
Market Value -- -- -- -- -- -- -- 2,376,414
-------------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life &
Annuity Insurance Company 45,161 21,076 8,572 94,841 179,123 -- 3,612 --
..............................................................................................................................
Receivable from fund shares
sold -- -- -- -- -- 1,941 -- --
..............................................................................................................................
Total Assets 26,513,110 6,026,899 664,622 10,529,708 15,556,322 13,307,366 5,309,190 2,376,414
..............................................................................................................................
LIABILITIES:
Due to Hartford Life &
Annuity Insurance Company -- -- -- -- -- 2,174 -- 34
..............................................................................................................................
Payable for fund shares
purchased 45,634 21,060 8,575 94,863 179,126 -- 3,573 --
..............................................................................................................................
Total Liabilities 45,634 21,060 8,575 94,863 179,126 2,174 3,573 34
-------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $26,467,476 $6,005,839 $656,047 $10,434,845 $15,377,196 $13,305,192 $5,305,617 $2,376,380
-------------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 10,269,622 4,220,773 554,526 5,953,053 6,891,345 6,126,148 2,762,735 1,222,448
..............................................................................................................................
Unit Values $ 2.577259 $ 1.422924 $1.183079 $ 1.752856 $ 2.231378 $ 2.171869 $ 1.920422 $ 1.943951
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-3
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Bond Stock Money Advisers Capital Mortgage Index
September 30, 2000 Fund Fund Market Fund Appreciation Securities Fund
Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account
Sub-Account Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 81,181 $ 18,733 $1,328,132 $ 76,419 $ 24,486 $ 7,896 $ 3,350
.........................................................................................................................
Capital gains income -- 7,736,475 (726) 3,041,584 8,090,247 -- 314,343
.........................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
.........................................................................................................................
Net realized gain (loss) on
security transactions 178,706 40,847 -- 31,014 53,092 1,552 (14,373)
.........................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 869,995 (9,889,586) -- (3,011,624) 1,336,175 56,529 (905,387)
.........................................................................................................................
Net gain (loss) on investments 1,048,701 (9,848,739) -- (2,980,610) 1,389,267 58,081 (919,760)
--------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $1,129,882 $(2,093,531) $1,327,406 $ 137,393 $9,504,000 $65,977 $(602,067)
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended International
September 30, 2000 Opportunities
Fund
Sub-Account
--------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 80,238
................................
Capital gains income 1,285,199
................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
................................
Net realized gain (loss) on
security transactions 565
................................
Net unrealized appreciation
(depreciation) of investments
during the period (2,861,949)
................................
Net gain (loss) on investments (2,861,384)
---------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $(1,495,947)
----------------------------------------------------------------------------------------
</TABLE>
SA-4
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Dividend Growth International Small MidCap Fidelity Fidelity
September 30, 2000 and Growth and Income Advisers Company Fund VIP VIP
Fund Fund Fund Fund Sub-Account Equity-Income Overseas
Sub-Account Sub-Account Sub-Account Sub-Account Portfolio Portfolio
Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 18,548 $ 226 $ 6,192 $ -- $ -- $ 195,271 $ 54,276
.........................................................................................................................
Capital gains income 2,037,100 46,975 33,553 1,052,639 436,329 735,671 341,794
.........................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
.........................................................................................................................
Net realized gain (loss) on
security transactions 7,684 8,317 (148) 74,383 (285) 44,226 380
.........................................................................................................................
Net unrealized (depreciation) of
investments during the period (776,953) (14,130) (62,934) (1,637,799) 2,018,046 (402,633) (1,008,088)
.........................................................................................................................
Net (loss) on investments (769,269) (5,813) (63,082) (1,563,416) 2,017,761 (358,407) (1,007,708)
--------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $1,286,379 $ 41,388 $(23,337) $ (510,777) $2,454,090 $ 572,535 $ (611,638)
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended Fidelity
September 30, 2000 VIP II
Asset
Manager
Portfolio
Sub-Account
-----------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 59,219
................................
Capital gains income 139,516
................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
................................
Net realized gain (loss) on
security transactions 1,959
................................
Net unrealized (depreciation) of
investments during the period (198,297)
................................
Net (loss) on investments (196,338)
----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $ 2,397
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-5
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Bond Stock Money Advisers Capital Mortgage Index
September 30, 2000 Fund Fund Market Fund Appreciation Securities Fund
Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account
Sub-Account Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 81,181 $ 18,733 $ 1,328,132 $ 76,419 $ 24,486 $ 7,896 $ 3,350
.........................................................................................................................
Capital gains income -- 7,736,475 (726) 3,041,584 8,090,247 -- 314,343
.........................................................................................................................
Net realized gain (loss) on
security transactions 178,706 40,847 -- 31,014 53,092 1,552 (14,373)
.........................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 869,995 (9,889,586) -- (3,011,624) 1,336,175 56,529 (905,387)
.........................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 1,129,882 (2,093,531) 1,327,406 137,393 9,504,000 65,977 (602,067)
.........................................................................................................................
UNIT TRANSACTIONS:
Purchases 3,091,324 14,606,354 137,812,887 6,244,257 10,087,413 249,140 6,858,781
.........................................................................................................................
Net transfers (1,259,302) 19,120,565 (128,023,608) 7,553,082 15,869,136 (26,184) 2,178,320
.........................................................................................................................
Surrenders for benefit payments
and fees (501,400) (1,781,929) (928,909) (1,103,078) (1,443,218) (65,050) (1,034,327)
.........................................................................................................................
Net loan withdrawals (279,235) (443,047) (6,812,907) (95,499) (637,325) (5,815) (304,543)
.........................................................................................................................
Cost of insurance (630,773) (3,630,881) (4,763,737) (1,702,019) (2,589,213) (38,788) (1,660,662)
.........................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions 420,614 27,871,062 (2,716,274) 10,896,743 21,286,793 113,303 6,037,569
.........................................................................................................................
Total increase (decrease) in net
assets 1,550,496 25,777,531 (1,388,868) 11,034,136 30,790,793 179,280 5,435,502
.........................................................................................................................
NET ASSETS:
Beginning of period 12,956,798 55,565,102 37,912,970 27,100,095 39,819,291 934,665 30,255,457
--------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $14,507,294 $81,342,633 $36,524,102 $38,134,231 $70,610,084 $1,113,945 $35,690,959
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended International
September 30, 2000 Opportunities
Fund
Sub-Account
--------------------------------------------------------------
OPERATIONS:
Net investment income $ 80,238
................................
Capital gains income 1,285,199
................................
Net realized gain (loss) on
security transactions 565
................................
Net unrealized appreciation
(depreciation) of investments
during the period (2,861,949)
................................
Net increase (decrease) in net
assets resulting from
operations (1,495,947)
................................
UNIT TRANSACTIONS:
Purchases 2,179,053
................................
Net transfers 3,238,145
................................
Surrenders for benefit payments
and fees (395,889)
................................
Net loan withdrawals (142,954)
................................
Cost of insurance (461,637)
................................
Net increase (decrease) in net
assets resulting from unit
transactions 4,416,718
................................
Total increase (decrease) in net
assets 2,920,771
................................
NET ASSETS:
Beginning of period 9,637,859
---------------------------------------------------------------------------
END OF PERIOD $12,558,630
----------------------------------------------------------------------------------------
</TABLE>
SA-6
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Dividend Growth International Small MidCap Fidelity Fidelity
September 30, 2000 and Growth and Income Advisers Company Fund VIP VIP
Fund Fund Fund Fund Sub-Account Equity-Income Overseas
Sub-Account Sub-Account Sub-Account Sub-Account Portfolio Portfolio
Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 18,548 $ 226 $ 6,192 $ -- $ -- $ 195,271 $ 54,276
.........................................................................................................................
Capital gains income 2,037,100 46,975 33,553 1,052,639 436,329 735,671 341,794
.........................................................................................................................
Net realized gain (loss) on
security transactions 7,684 8,317 (148) 74,383 (285) 44,226 380
.........................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (776,953) (14,130) (62,934) (1,637,799) 2,018,046 (402,633) (1,008,088)
.........................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 1,286,379 41,388 (23,337) (510,777) 2,454,090 572,535 (611,638)
.........................................................................................................................
UNIT TRANSACTIONS:
Purchases 4,647,483 987,840 103,472 1,507,227 1,568,103 2,208,755 1,031,244
.........................................................................................................................
Net transfers 2,500,972 2,553,752 404,302 7,111,629 7,989,809 299,416 1,358,540
.........................................................................................................................
Surrenders for benefit payments
and fees (513,678) (162,335) (2,863) (313,424) (151,273) (446,705) (133,274)
.........................................................................................................................
Net loan withdrawals (455,054) (14,641) (3,745) (24,957) (34,449) (59,492) (36,989)
.........................................................................................................................
Cost of insurance (1,025,840) (356,185) (35,457) (391,219) (499,744) (486,411) (170,658)
.........................................................................................................................
Net increase in net assets
resulting from unit
transactions 5,153,883 3,008,431 465,709 7,889,256 8,872,446 1,515,563 2,048,863
.........................................................................................................................
Total increase in net assets 6,440,262 3,049,819 442,372 7,378,479 11,326,536 2,088,098 1,437,225
.........................................................................................................................
NET ASSETS:
Beginning of period 20,027,214 2,956,020 213,675 3,056,366 4,050,660 11,217,094 3,868,392
--------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $26,467,476 $6,005,839 $656,047 $10,434,845 $15,377,196 $13,305,192 $5,305,617
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended Fidelity
September 30, 2000 VIP II
Asset
Manager
Portfolio
Sub-Account
-----------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 59,219
................................
Capital gains income 139,516
................................
Net realized gain (loss) on
security transactions 1,959
................................
Net unrealized (depreciation)
appreciation of investments
during the period (198,297)
................................
Net increase (decrease) in net
assets resulting from
operations 2,397
................................
UNIT TRANSACTIONS:
Purchases 486,719
................................
Net transfers 134,621
................................
Surrenders for benefit payments
and fees (169,705)
................................
Net loan withdrawals 12,892
................................
Cost of insurance (87,121)
................................
Net increase in net assets
resulting from unit
transactions 377,406
................................
Total increase in net assets 379,803
................................
NET ASSETS:
Beginning of period 1,996,577
-----------------------------------------------------------------------------------------------------------------
END OF PERIOD $2,376,380
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-7
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Asia Diversified The George Global Asset Global Growth Health
Pacific Income Putnam Fund Allocation Growth and Income Sciences
Growth Sub-Account of Boston Sub-Account Sub-Account Sub-Account Sub-Account
Sub-Account Sub-Account
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT ASIA PACIFIC GROWTH
FUND
Shares 123,132
Cost $1,704,369
............................................................................................................................
Market Value: $1,382,778 $ -- $ -- $ -- $ -- $ -- $ --
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT DIVERSIFIED INCOME FUND
Shares 122,674
Cost $1,246,822
............................................................................................................................
Market Value: -- 1,131,054 -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT THE GEORGE PUTNAM FUND
OF BOSTON
Shares 105,554
Cost $1,076,273
............................................................................................................................
Market Value: -- -- 1,100,933 -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GLOBAL ASSET ALLOCATION
FUND
Shares 147,101
Cost $2,667,861
............................................................................................................................
Market Value: -- -- -- 2,528,668 -- -- --
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GLOBAL GROWTH FUND
Shares 968,263
Cost $20,820,462
............................................................................................................................
Market Value: -- -- -- -- 21,117,805 -- --
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GROWTH AND INCOME FUND
Shares 1,156,682
Cost $30,317,558
............................................................................................................................
Market Value: -- -- -- -- -- $28,685,716 --
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT HEALTH SCIENCES FUND
Shares 308,365
Cost $3,504,914
............................................................................................................................
Market Value: -- -- -- -- -- -- 4,542,210
-----------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company 367 -- 2,573 2,041 12,503 29,068 16,051
............................................................................................................................
Receivable from fund shares sold -- 422 -- -- -- -- --
............................................................................................................................
Total Assets 1,383,145 1,131,476 1,103,506 2,530,709 21,130,308 28,714,784 4,558,261
............................................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company -- 421 -- -- -- -- --
............................................................................................................................
Payable for fund shares purchased 142 -- 2,573 2,000 12,439 30,395 15,476
............................................................................................................................
TOTAL LIABILITIES 142 421 2,573 2,000 12,439 30,395 15,476
-----------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $1,383,003 $1,131,055 $1,100,933 $2,528,709 $21,117,869 $28,684,389 $4,542,785
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-8
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 High Yield Income International International International Investors Money
Sub-Account Sub-Account Growth Growth and New Sub-Account Market
Sub-Account Income Opportunities Sub-Account
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT HIGH YIELD FUND
Shares 1,134,887
Cost $12,412,090
.............................................................................................................................
Market Value: $10,872,217 $ -- $ -- $ -- $ -- $ -- $ --
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INCOME FUND
Shares 239,080
Cost $3,115,168
.............................................................................................................................
Market Value: -- 2,926,341 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL GROWTH
FUND
Shares 338,722
Cost $6,328,548
.............................................................................................................................
Market Value: -- -- 6,117,314 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL GROWTH
AND INCOME FUND
Shares 197,519
Cost $2,848,566
.............................................................................................................................
Market Value: -- -- -- 2,518,370 -- -- --
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL NEW
OPPORTUNITIES FUND
Shares 213,092
Cost $4,392,937
.............................................................................................................................
Market Value: -- -- -- -- 3,590,608 -- --
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INVESTORS FUND
Shares 509,035
Cost $6,916,629
.............................................................................................................................
Market Value: -- -- -- -- -- 7,396,276 --
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT MONEY MARKET FUND
Shares 2,045,746
Cost $2,045,746
.............................................................................................................................
Market Value: -- -- -- -- -- -- 2,045,746
------------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company 6,108 -- 41,867 18,421 10,615 13,089 6,000
.............................................................................................................................
Receivable from fund shares sold -- 431 -- -- -- -- --
.............................................................................................................................
Total Assets 10,878,325 2,926,772 6,159,181 2,536,791 3,601,223 7,409,365 2,051,746
.............................................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company -- 420 -- -- -- -- 5,825
.............................................................................................................................
Payable for fund shares purchased 6,111 -- 42,081 18,417 10,530 13,102 --
.............................................................................................................................
TOTAL LIABILITIES 6,111 420 42,081 18,417 10,530 13,102 5,825
------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $10,872,214 $2,926,352 $6,117,100 $2,518,374 $3,590,693 $7,396,263 $2,045,921
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-9
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 New New OTC & Utilities Vista Voyager
Opportunities Value Emerging Growth Sub-Account Sub-Account
Sub-Account Sub-Account Growth and Income
Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
--------------------------------------------------------------------------------------------------------------
PUTNAM VT NEW OPPORTUNITIES FUND
Shares 704,163
Cost $22,809,777
.............................................................................................................
Market Value: $29,553,738 $ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------------------------------------
PUTNAM VT NEW VALUE FUND
Shares 147,924
Cost $1,758,386
.............................................................................................................
Market Value: -- 1,823,908 -- -- -- --
--------------------------------------------------------------------------------------------------------------
PUTNAM VT OTC & EMERGING GROWTH
FUND
Shares 420,685
Cost $8,686,713
.............................................................................................................
Market Value: -- -- 7,803,707 -- -- --
--------------------------------------------------------------------------------------------------------------
PUTNAM VT UTILITIES GROWTH &
INCOME FUND
Shares 203,111
Cost $3,387,456
.............................................................................................................
Market Value: -- -- -- 3,593,035 -- --
--------------------------------------------------------------------------------------------------------------
PUTNAM VT VISTA FUND
Shares 189,200
Cost $4,059,430
.............................................................................................................
Market Value: -- -- -- -- 4,690,257 --
--------------------------------------------------------------------------------------------------------------
PUTNAM VT VOYAGER FUND
Shares 798,663
Cost $40,746,860
.............................................................................................................
Market Value: -- -- -- -- -- 45,691,507
--------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company 60,819 4,355 -- 1,517 29,973 --
.............................................................................................................
Receivable from fund shares sold -- -- 2,261,983 -- -- 545,132
.............................................................................................................
Total Assets 29,614,557 1,828,263 10,065,690 3,594,552 4,720,230 46,236,639
.............................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company -- -- 2,263,201 -- -- 545,960
.............................................................................................................
Payable for fund shares purchased 61,470 4,321 -- 2,496 30,339 --
.............................................................................................................
TOTAL LIABILITIES 61,470 4,321 2,263,201 2,496 30,339 545,960
--------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $29,553,087 $1,823,942 $ 7,802,489 $3,592,056 $4,689,891 $45,690,679
--------------------------------------------------------------------------------------------------------------
</TABLE>
SA-10
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES (UNAUDITED) (CONTINUED)
<TABLE>
----------------------------------------------------------------------------------
September 30, 2000 Units Unit Contract
Owned by Price Liability
Participants
<S> <C> <C> <C>
----------------------------------------------------------------------------------
Variable life contracts:
Asia Pacific Growth Fund 92,599 $14.935338 $ 1,383,003
.................................................................................
Diversified Income Fund 86,252 13.113302 1,131,055
.................................................................................
George Putnam Fund of Boston 99,717 11.040569 1,100,933
.................................................................................
Global Asset Allocation Fund 110,835 22.815002 2,528,709
.................................................................................
Global Growth Fund 640,322 32.980056 21,117,869
.................................................................................
Growth and Income Fund 1,066,866 26.886600 28,684,389
.................................................................................
Health Sciences 299,824 15.151502 4,542,785
.................................................................................
High Yield Fund 674,699 16.114172 10,872,214
.................................................................................
Income Fund 193,821 15.098227 2,926,352
.................................................................................
International Growth Fund 422,941 14.463235 6,117,100
.................................................................................
International Growth and Income Fund 212,655 11.842557 2,518,374
.................................................................................
International New Opportunities Fund 240,228 14.947040 3,590,693
.................................................................................
Investors Fund 530,200 13.949961 7,396,263
.................................................................................
Money Market Fund 1,442,702 1.418117 2,045,921
.................................................................................
New Opportunities Fund 739,381 39.970028 29,553,087
.................................................................................
New Value Fund 153,343 11.894540 1,823,942
.................................................................................
OTC & Emerging Growth Fund 389,270 20.043914 7,802,489
.................................................................................
Utilities Growth & Income Fund 145,635 24.664702 3,592,056
.................................................................................
Vista Fund 238,588 19.656868 4,689,891
.................................................................................
Voyager Fund 1,022,366 44.691134 45,690,679
.................................................................................
GRAND TOTAL: $189,107,804
----------------------------------------------------------------------------------
</TABLE>
SA-11
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Asia Diversified The George Global Global Growth Health
September 30, 2000 Pacific Income Putnam Asset Growth and Income Sciences
Growth Sub-Account Fund Allocation Sub-Account Sub-Account Sub-Account
Sub-Account of Boston Sub-Account
Sub-Account
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 40,548 $80,320 $ -- $ 38,909 $ 125,219 $ 387,912 $ --
......................................................................................................................
Capital gains income -- -- -- 203,203 3,120,633 1,826,387 --
......................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
......................................................................................................................
Net realized (loss) gain on
security transactions (6,316) 972 (575) 17 31,048 16,662 (31,220)
......................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (583,228) (71,127) 50,246 (275,929) (6,595,877) (1,021,167) 1,000,510
......................................................................................................................
Net (loss) gain on investments (589,544) (70,155) 49,671 (275,912) (6,564,829) (1,004,505) 969,290
-----------------------------------------------------------------------------------------------------------------------
NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS: $(548,996) $10,165 $49,671 $(33,800) $(3,318,977) $1,209,794 $969,290
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-12
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended High Yield Income International International International Investors Money
September 30, 2000 Sub-Account Sub-Account Growth Growth and New Sub-Account Market
Sub-Account Income Opportunities Sub-Account
Sub-Account Sub-Account
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 1,083,194 $183,258 $ 71,242 $127,626 $ 1,170 $ -- $ 58,023
...........................................................................................................................
Capital gains income -- -- 309,003 279,766 109,881 -- --
...........................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
...........................................................................................................................
Net realized gain (loss) on
security transactions 5 (2,297) (490) (86,915) (2,625) 565 --
...........................................................................................................................
Net unrealized (depreciation) of
investments during the period (1,325,070) (52,297) (850,702) (410,031) (1,029,081) (179,262) --
...........................................................................................................................
Net (loss) on investments (1,325,065) (54,594) (851,192) (496,946) (1,031,706) (178,697) --
----------------------------------------------------------------------------------------------------------------------------
NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS: $ (241,871) $128,664 $(470,947) $(89,554) $ (920,655) $(178,697) $ 58,023
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-13
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended New New OTC & Utilities Vista Voyager
September 30, 2000 Opportunities Value Emerging Growth Sub-Account Sub-Account
Sub-Account Sub-Account Growth and Income
Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ -- $ 17,148 $ -- $ 93,886 $ -- $ 11,639
.............................................................................................................
Capital gains income 1,732,437 60,728 60,050 165,739 24,883 4,938,560
.............................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
.............................................................................................................
Net realized (loss) gain on
security transactions (14,293) (138,999) (99,530) 5,887 (1,450) (51,831)
.............................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (1,177,155) 100,934 (1,497,426) 176,229 410,585 (6,091,215)
.............................................................................................................
Net (loss) gain on investments (1,191,448) (38,065) (1,596,956) 182,116 409,135 (6,143,046)
--------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS: $ 540,989 $ 39,811 $(1,536,906) $441,741 $434,018 $(1,192,847)
--------------------------------------------------------------------------------------------------------------
</TABLE>
SA-14
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Asia Diversified The Global Global Growth Health
September 30, 2000 Pacific Income George Asset Growth and Income Sciences
Growth Sub-Account Putnam Allocation Sub-Account Sub-Account Sub-Account
Sub-Account Fund of Sub-Account
Boston
Sub-Account
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 40,548 $ 80,320 $ -- $ 38,909 $ 125,219 $ 387,912 $ --
...................................................................................................................
Capital gains income -- -- -- 203,203 3,120,633 1,826,387 --
...................................................................................................................
Net realized (loss) gain on
security transactions (6,316) 972 (575) 17 31,048 16,662 (31,220)
...................................................................................................................
Net unrealized
(depreciation)
appreciation of
investments during the
period (583,228) (71,127) 50,246 (275,929) (6,595,877) (1,021,167) 1,000,510
...................................................................................................................
Net (decrease) increase in
net assets resulting from
operations (548,996) 10,165 49,671 (33,800) (3,318,977) 1,209,794 969,290
...................................................................................................................
UNIT TRANSACTIONS:
Purchases 213,787 156,758 162,548 324,802 3,560,313 4,136,989 495,300
...................................................................................................................
Net transfers 862,737 (5,716) 327,073 507,002 3,704,614 8,398,617 1,655,957
...................................................................................................................
Surrenders for benefit
payments and fees (171,946) (4,363) (11,981) (133,290) (463,294) (822,417) (128,862)
...................................................................................................................
Net loan activity 66,208 (1,318) (7,936) (31,429) (336,920) (134,188) (10,229)
...................................................................................................................
Cost of insurance (64,214) (48,863) (56,902) (91,496) (783,033) (1,056,729) (178,428)
...................................................................................................................
Net increase in net assets
resulting from unit
transactions 906,572 96,498 412,802 575,589 5,681,680 10,522,272 1,833,738
...................................................................................................................
Total increase in net assets 357,576 106,663 462,473 541,789 2,362,703 11,732,066 2,803,028
...................................................................................................................
NET ASSETS:
Beginning of period 1,025,427 1,024,392 638,460 1,986,920 18,755,166 16,952,323 1,739,757
--------------------------------------------------------------------------------------------------------------------
END OF PERIOD $1,383,003 $1,131,055 $1,100,933 $2,528,709 $21,117,869 $28,684,389 $4,542,785
--------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-15
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended High Yield Income International International International Investors Money
September 30, 2000 Sub-Account Sub-Account Growth Growth and New Sub-Account Market
Sub-Account Income Opportunities Sub-Account
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 1,083,194 $ 183,258 $ 71,242 $ 127,626 $ 1,170 $ -- $ 58,023
.............................................................................................................................
Capital gains income -- -- 309,003 279,766 109,881 -- --
.............................................................................................................................
Net realized gain (loss) on
security transactions 5 (2,297) (490) (86,915) (2,625) 565 --
.............................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (1,325,070) (52,297) (850,702) (410,031) (1,029,081) (179,262) --
.............................................................................................................................
Net (decrease) increase in net
assets resulting from
operations (241,871) 128,664 (470,947) (89,554) (920,655) (178,697) 58,023
.............................................................................................................................
UNIT TRANSACTIONS:
Purchases 1,821,795 415,426 714,094 315,099 772,793 986,911 204,949
.............................................................................................................................
Net transfers 1,821,219 180,305 3,860,416 1,662,163 3,152,109 2,819,029 916,830
.............................................................................................................................
Surrenders for benefit payments
and fees (295,016) (121,756) (131,183) (31,361) (40,870) (104,211) 12,405
.............................................................................................................................
Net loan activity (156,785) (29,810) 52,523 (34,942) (16,626) 20,061 51,216
.............................................................................................................................
Cost of insurance (373,536) (129,358) (257,893) (122,847) (170,611) (336,946) (43,847)
.............................................................................................................................
Net increase in net assets
resulting from unit
transactions 2,817,677 314,807 4,237,957 1,788,112 3,696,795 3,384,844 1,141,553
.............................................................................................................................
Total increase in net assets 2,575,806 443,471 3,767,010 1,698,558 2,776,140 3,206,147 1,199,576
.............................................................................................................................
NET ASSETS:
Beginning of period 8,296,408 2,482,881 2,350,090 819,816 814,553 4,190,116 846,345
------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $10,872,214 $2,926,352 $6,117,100 $2,518,374 $3,590,693 $7,396,263 $2,045,921
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-16
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended New New OTC & Utilities Growth Vista Voyager
September 30, 2000 Opportunities Value Emerging and Income Sub-Account Sub-Account
Sub-Account Sub-Account Growth Sub-Account
Sub-Account
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ -- $ 17,148 $ -- $ 93,886 $ -- $ 11,639
.................................................................................................................
Capital gains income 1,732,437 60,728 60,050 165,739 24,883 4,938,560
.................................................................................................................
Net realized (loss) gain on
security transactions (14,293) (138,999) (99,530) 5,887 (1,450) (51,831)
.................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (1,177,155) 100,934 (1,497,426) 176,229 410,585 (6,091,215)
.................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 540,989 39,811 (1,536,906) 441,741 434,018 (1,192,847)
.................................................................................................................
UNIT TRANSACTIONS:
Purchases 3,792,726 188,756 1,026,007 496,134 621,488 7,246,189
.................................................................................................................
Net transfers 8,633,141 901,566 6,979,577 576,784 2,645,263 9,229,658
.................................................................................................................
Surrenders for benefit payments
and fees (865,620) (67,824) (326,052) (156,142) (32,261) (887,710)
.................................................................................................................
Net loan activity (226,966) 23,595 (141,670) (29,619) (15,809) (344,634)
.................................................................................................................
Cost of insurance (1,088,418) (80,261) (382,536) (131,793) (174,297) (1,831,954)
.................................................................................................................
Net increase in net assets
resulting from unit
transactions 10,244,863 965,832 7,155,326 755,364 3,044,384 13,411,549
.................................................................................................................
Total increase in net assets 10,785,852 1,005,643 5,618,420 1,197,105 3,478,402 12,218,702
.................................................................................................................
NET ASSETS:
Beginning of period 18,767,235 818,299 2,184,069 2,394,951 1,211,489 33,471,977
------------------------------------------------------------------------------------------------------------------
END OF PERIOD $29,553,087 $1,823,942 $7,802,489 $3,592,056 $4,689,891 $45,690,679
------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-17
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Hartford Life and Annuity Insurance Company
Separate Account VL I and to the Owners of Units of Interest therein:
We have audited the accompanying statements of assets and liabilities of
Hartford Life and Annuity Insurance Company Separate Account VL I (Bond Fund,
Stock Fund, Money Market Fund, Advisers Fund, Capital Appreciation Fund,
Mortgage Securities Fund, Index Fund, International Opportunities Fund, Dividend
and Growth Fund, Growth and Income Fund, International Advisers Fund, Small
Company Fund, MidCap Fund, Fidelity VIP Equity-Income Portfolio, Fidelity VIP
Overseas Portfolio and Fidelity VIP II Asset Manager Portfolio) (collectively,
the Account) as of December 31, 1999, and the related statements of operations
and the statements of changes in net assets for the periods presented. These
financial statements are the responsibility of the Account's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Account as of December 31,
1999, and the results of their operations and the changes in their net assets
for the periods presented in conformity with generally accepted accounting
principles.
Hartford, Connecticut
February 17, 2000 ARTHUR ANDERSEN LLP
SA-1
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES
--------------------------------------------------------------------------------
<TABLE>
December 31, 1999 Bond Fund Stock Fund Money Advisers Capital Mortgage Index Fund
Sub-Account Sub-Account Market Fund Fund Appreciation Securities Sub-Account
Sub-Account Sub-Account Fund Fund
Sub-Account Sub-Account
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments:
---------------------------------------------------------------------------------------------------------------------------
HARTFORD BOND HLS FUND, INC. -
CLASS IA
Shares 13,036,853
Cost $13,751,074
..........................................................................................................................
Market Value $12,956,833 $ -- $ -- $ -- $ -- $ -- $ --
---------------------------------------------------------------------------------------------------------------------------
HARTFORD STOCK HLS FUND, INC. -
CLASS IA
Shares 7,774,248
Cost $48,538,058
..........................................................................................................................
Market Value -- 55,565,565 -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
HARTFORD MONEY MARKET HLS
FUND, INC. - CLASS IA
Shares 37,911,835
Cost $37,911,835
..........................................................................................................................
Market Value -- -- 37,911,835 -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
HARTFORD ADVISERS HLS FUND, INC.
-CLASS IA
Shares 9,140,726
Cost $26,035,509
..........................................................................................................................
Market Value -- -- -- 27,100,188 -- -- --
---------------------------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS
FUND, INC. - CLASS IA
Shares 6,532,743
Cost $30,616,570
..........................................................................................................................
Market Value -- -- -- -- 39,819,603 -- --
---------------------------------------------------------------------------------------------------------------------------
HARTFORD MORTGAGE SECURITIES HLS
FUND, INC. - CLASS IA
Shares 899,159
Cost $983,616
..........................................................................................................................
Market Value -- -- -- -- -- 934,668 --
---------------------------------------------------------------------------------------------------------------------------
HARTFORD INDEX HLS FUND, INC. -
CLASS IA
Shares 7,223,298
Cost $25,320,046
..........................................................................................................................
Market Value -- -- -- -- -- -- 30,256,807
---------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS FUND, INC. -
CLASS IA
Shares 5,137,704
Cost $7,043,176
..........................................................................................................................
Market Value -- -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life and
Annuity Insurance Company 10,232 216,368 8,988,784 41,538 160,115 4,896 236,972
..........................................................................................................................
Receivable from fund shares sold -- -- -- -- -- -- --
..........................................................................................................................
Total Assets 12,967,065 55,781,933 46,900,619 27,141,726 39,979,718 939,564 30,493,779
..........................................................................................................................
LIABILITIES:
Due to Hartford Life and Annuity
Insurance Company -- -- -- -- -- -- --
..........................................................................................................................
PAYABLE FOR FUND SHARES PURCHASED 10,267 216,831 8,987,649 41,631 160,427 4,899 238,322
..........................................................................................................................
TOTAL LIABILITIES 10,267 216,831 8,987,649 41,631 160,427 4,899 238,322
---------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $12,956,798 $55,565,102 $37,912,970 $27,100,095 $39,819,291 $ 934,665 $30,255,457
---------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 8,902,703 14,783,748 27,719,873 10,096,804 11,744,489 639,331 8,441,509
Unit Values $ 1.455378 $ 3.758526 $ 1.367718 $ 2.684027 $ 3.390466 $ 1.461942 $ 3.584129
---------------------------------------------------------------------------------------------------------------------------
<S> <C>
December 31, 1999 International
Opportunities
Fund
Sub-Account
------------------------------------------------------------
ASSETS:
Investments:
------------------------------------------------------------------------
HARTFORD BOND HLS FUND, INC. -
CLASS IA
Shares 13,036,853
Cost $13,751,074
................................
Market Value $ --
------------------------------------------------------------------------------------
HARTFORD STOCK HLS FUND, INC. -
CLASS IA
Shares 7,774,248
Cost $48,538,058
................................
Market Value --
------------------------------------------------------------------------------------------------
HARTFORD MONEY MARKET HLS
FUND, INC. - CLASS IA
Shares 37,911,835
Cost $37,911,835
................................
Market Value --
------------------------------------------------------------------------------------------------------------
HARTFORD ADVISERS HLS FUND, INC.
-CLASS IA
Shares 9,140,726
Cost $26,035,509
................................
Market Value --
------------------------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS
FUND, INC. - CLASS IA
Shares 6,532,743
Cost $30,616,570
................................
Market Value --
---------------------------------------------------------------------------------------------------------------------------
HARTFORD MORTGAGE SECURITIES HLS
FUND, INC. - CLASS IA
Shares 899,159
Cost $983,616
................................
Market Value --
---------------------------------------------------------------------------------------------------------------------------
HARTFORD INDEX HLS FUND, INC. -
CLASS IA
Shares 7,223,298
Cost $25,320,046
................................
Market Value --
---------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS FUND, INC. -
CLASS IA
Shares 5,137,704
Cost $7,043,176
................................
Market Value 9,637,998
---------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life and
Annuity Insurance Company 9,830
................................
Receivable from fund shares sold --
................................
Total Assets 9,647,828
................................
LIABILITIES:
Due to Hartford Life and Annuity
Insurance Company --
................................
PAYABLE FOR FUND SHARES PURCHASED 9,969
................................
TOTAL LIABILITIES 9,969
---------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $9,637,859
---------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 4,055,729
Unit Values $ 2.376357
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-2
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
December 31, 1999 Dividend Growth and International Small MidCap Fund Fidelity Fidelity
and Growth Income Fund Advisers Company Sub-Account VIP Equity- VIP
Fund Sub-Account Fund Fund Income Overseas
Sub-Account Sub-Account Sub-Account Portfolio Portfolio
Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments:
--------------------------------------------------------------------------------------------------------------------------
HARTFORD DIVIDEND AND GROWTH HLS
FUND, INC. - CLASS IA
Shares 9,320,261
Cost $19,378,338
.........................................................................................................................
Market Value $20,027,637 -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD GROWTH AND INCOME HLS
FUND, INC. - CLASS IA
Shares 2,064,778
Cost $2,667,080
.........................................................................................................................
Market Value -- 2,956,020 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL ADVISERS
HLS FUND, INC. - CLASS IA
Shares 152,987
Cost $188,594
.........................................................................................................................
Market Value -- -- 213,675 -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD SMALL COMPANY HLS
FUND, INC. - CLASS IA
Shares 1,397,014
Cost $2,316,312
.........................................................................................................................
Market Value -- -- -- 3,056,355 -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD MIDCAP HLS FUND, INC. -
CLASS IA
Shares 1,972,567
Cost $3,402,425
.........................................................................................................................
Market Value -- -- -- -- 4,050,665 -- --
--------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Shares 436,302
Cost $10,702,619
.........................................................................................................................
Market Value -- -- -- -- -- 11,217,330 --
--------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP OVERSEAS PORTFOLIO
Shares 140,975
Cost $2,808,265
.........................................................................................................................
Market Value -- -- -- -- -- -- 3,868,358
--------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP II ASSET MANAGER
PORTFOLIO
Shares 106,942
Cost $1,840,697
.........................................................................................................................
Market Value -- -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life & Annuity
Insurance Company 17,725 109,761 5,155 12,928 11,087 11,324 14,038
.........................................................................................................................
Receivable from fund shares sold -- -- -- -- -- -- --
.........................................................................................................................
Total Assets 20,045,362 3,065,781 218,830 3,069,283 4,061,752 11,228,654 3,882,396
.........................................................................................................................
LIABILITIES:
Due to Hartford Life & Annuity
Insurance Company -- -- -- -- -- -- --
.........................................................................................................................
Payable for fund shares purchased 18,148 109,761 5,155 12,917 11,092 11,560 14,004
.........................................................................................................................
TOTAL LIABILITIES 18,148 109,761 5,155 12,917 11,092 11,560 14,004
.........................................................................................................................
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $20,027,214 $2,956,020 $ 213,675 $3,056,366 $4,050,660 $11,217,094 $3,868,392
--------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 8,172,965 2,108,166 172,203 1,712,309 2,417,559 5,384,516 1,773,710
Unit Values $ 2.450422 $ 1.402176 $1.240838 $1.784939 $ 1.675516 $ 2.083213 $ 2.180961
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
December 31, 1999 Fidelity
VIP II
Asset
Manager
Portfolio
Sub-Account
----------------------------------------------------------
ASSETS:
Investments:
----------------------------------------------------------------------
HARTFORD DIVIDEND AND GROWTH HLS
FUND, INC. - CLASS IA
Shares 9,320,261
Cost $19,378,338
................................
Market Value --
----------------------------------------------------------------------------------
HARTFORD GROWTH AND INCOME HLS
FUND, INC. - CLASS IA
Shares 2,064,778
Cost $2,667,080
................................
Market Value --
----------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL ADVISERS
HLS FUND, INC. - CLASS IA
Shares 152,987
Cost $188,594
................................
Market Value --
----------------------------------------------------------------------------------------------------------
HARTFORD SMALL COMPANY HLS
FUND, INC. - CLASS IA
Shares 1,397,014
Cost $2,316,312
................................
Market Value --
----------------------------------------------------------------------------------------------------------------------
HARTFORD MIDCAP HLS FUND, INC. -
CLASS IA
Shares 1,972,567
Cost $3,402,425
................................
Market Value --
--------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Shares 436,302
Cost $10,702,619
................................
Market Value --
--------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP OVERSEAS PORTFOLIO
Shares 140,975
Cost $2,808,265
................................
Market Value --
--------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP II ASSET MANAGER
PORTFOLIO
Shares 106,942
Cost $1,840,697
................................
Market Value 1,996,605
--------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life & Annuity
Insurance Company 885
................................
Receivable from fund shares sold --
................................
Total Assets 1,997,490
................................
LIABILITIES:
Due to Hartford Life & Annuity
Insurance Company --
................................
Payable for fund shares purchased 913
................................
TOTAL LIABILITIES 913
................................
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $1,996,577
--------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 1,026,184
Unit Values $ 1.945633
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-3
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended Bond Fund Stock Fund Money Advisers Capital Mortgage Index Fund
December 31, 1999 Sub-Account Sub-Account Market Fund Appreciation Securities Sub-Account
Fund Sub-Account Fund Fund
Sub-Account Sub-Account Sub-Account
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 699,011 $ 372,982 $1,047,023 $ 551,404 $ 119,226 $ 52,036 $ 260,644
........................................................................................................................
Capital gains income 18,913 2,119,332 562 1,057,290 1,346,774 -- 232,059
........................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
........................................................................................................................
Net realized (loss) gain on
security transactions (2,719) (22,268) -- (966) 18,563 (1,722) 1,101
........................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (842,711) 4,413,611 -- 311,013 7,692,001 (39,099) 3,505,603
........................................................................................................................
Net (loss) gain on investments (845,430) 4,391,343 -- 310,047 7,710,564 (40,821) 3,506,704
-------------------------------------------------------------------------------------------------------------------------
NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS $(127,506) $6,883,657 $1,047,585 $1,918,741 $9,176,564 $ 11,215 $3,999,407
-------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Year Ended International
December 31, 1999 Opportunities
Fund
Sub-Account
------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 91,142
................................
Capital gains income --
................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
................................
Net realized (loss) gain on
security transactions 25,426
................................
Net unrealized (depreciation)
appreciation of investments
during the period 2,417,612
................................
Net (loss) gain on investments 2,443,038
------------------------------------------------------------------------
NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS $2,534,180
------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-4
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended Dividend Growth and International Small MidCap Fund Fidelity Fidelity
December 31, 1999 and Growth Income Fund Advisers Company Sub-Account VIP VIP
Fund Sub-Account Fund Fund Equity- Overseas
Sub-Account Sub-Account Sub-Account Income Portfolio
Portfolio Sub-Account
Sub-Account
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $314,327 $ 7,483 $ 3,715 $ -- $ -- $ 105,625 $ 58,254
........................................................................................................................
Capital gains income 499,713 17,234 -- 3,946 148,450 233,487 93,957
........................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
........................................................................................................................
Net realized (loss) gain on
security transactions (2,211) (4,508) 368 867 (12,844) 1,860 221,841
........................................................................................................................
Net unrealized appreciation of
investments during the period 22,405 282,943 24,842 716,883 638,826 132,738 896,895
........................................................................................................................
Net gain on investments 20,194 278,435 25,210 717,750 625,982 134,598 1,118,736
-------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $834,234 $303,152 $ 28,925 $721,696 $ 774,432 $ 473,710 $1,270,947
-------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Year Ended Fidelity
December 31, 1999 VIP II
Asset
Manager
Portfolio
Sub-Account
------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 35,234
................................
Capital gains income 44,630
................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
................................
Net realized (loss) gain on
security transactions 1,464
................................
Net unrealized appreciation of
investments during the period 89,708
................................
Net gain on investments 91,172
------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $171,036
------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-5
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended Bond Fund Stock Fund Money Market Advisers Capital Mortgage Index Fund
December 31, 1999 Sub-Account Sub-Account Fund Fund Appreciation Securities Sub-Account
Sub-Account Sub-Account Fund Fund
Sub-Account Sub-Account
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 699,011 $ 372,982 $ 1,047,023 $ 551,404 $ 119,226 $ 52,036 $ 260,644
..............................................................................................................................
Capital gains income 18,913 2,119,332 562 1,057,290 1,346,774 -- 232,059
..............................................................................................................................
Net realized (loss) gain on
security transactions (2,719) (22,268) -- (966) 18,563 (1,722) 1,101
..............................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (842,711) 4,413,611 -- 311,013 7,692,001 (39,099) 3,505,603
..............................................................................................................................
Net (decrease) increase in net
assets resulting from
operations (127,506) 6,883,657 1,047,585 1,918,741 9,176,564 11,215 3,999,407
..............................................................................................................................
UNIT TRANSACTIONS:
Purchases 2,698,950 12,119,056 140,220,886 5,793,490 8,084,428 412,204 5,041,446
..............................................................................................................................
Net transfers 9,691,325 23,050,670 (119,807,605) 12,348,443 8,095,535 244,979 12,746,107
..............................................................................................................................
Surrenders for benefit payments
and fees (718,711) (1,780,707) (491,397) (500,173) (913,711) (315,043) (1,035,217)
..............................................................................................................................
Net loan activity (99,513) (238,423) (5,409,347) (44,850) (166,948) (6,721) (149,959)
..............................................................................................................................
Cost of insurance (497,251) (2,526,384) (3,444,628) (1,188,712) (1,518,285) (71,630) (1,208,015)
..............................................................................................................................
Net increase in net assets
resulting from unit
transactions 11,074,800 30,624,212 11,067,909 16,408,198 13,581,019 263,789 15,394,362
..............................................................................................................................
Net increase in net assets 10,947,294 37,507,869 12,115,494 18,326,939 22,757,583 275,004 19,393,769
..............................................................................................................................
NET ASSETS:
Beginning of period 2,009,504 18,057,233 25,797,476 8,773,156 17,061,708 659,661 10,861,688
-------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $12,956,798 $55,565,102 $ 37,912,970 $27,100,095 $39,819,291 $ 934,665 $30,255,457
-------------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Year Ended International
December 31, 1999 Opportunities
Fund
Sub-Account
------------------------------------------------------------
OPERATIONS:
Net investment income $ 91,142
................................
Capital gains income --
................................
Net realized (loss) gain on
security transactions 25,426
................................
Net unrealized (depreciation)
appreciation of investments
during the period 2,417,612
................................
Net (decrease) increase in net
assets resulting from
operations 2,534,180
................................
UNIT TRANSACTIONS:
Purchases 2,369,344
................................
Net transfers (345,670)
................................
Surrenders for benefit payments
and fees (342,765)
................................
Net loan activity (69,327)
................................
Cost of insurance (382,923)
................................
Net increase in net assets
resulting from unit
transactions 1,228,659
................................
Net increase in net assets 3,762,839
................................
NET ASSETS:
Beginning of period 5,875,020
------------------------------------------------------------------------
END OF PERIOD $9,637,859
------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-6
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended Dividend Growth and International Small MidCap Fidelity Fidelity
December 31, 1999 and Growth Income Fund Advisers Company Fund Fund VIP Equity- VIP
Fund Sub-Account Fund Sub-Account Sub-Account Income Overseas
Sub-Account Sub-Account Portfolio Portfolio
Sub-Account Sub-Account
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 314,327 $ 7,483 $ 3,715 $ -- $ -- $ 105,625 $ 58,254
...........................................................................................................................
Capital gains income 499,713 17,234 -- 3,946 148,450 233,487 93,957
...........................................................................................................................
Net realized (loss) gain on
security transactions (2,211) (4,508) 368 867 (12,844) 1,860 221,841
...........................................................................................................................
Net unrealized appreciation of
investments during the period 22,405 282,943 24,842 716,883 638,826 132,738 896,895
...........................................................................................................................
Net increase in net assets
resulting from operations 834,234 303,152 28,925 721,696 774,432 473,710 1,270,947
...........................................................................................................................
UNIT TRANSACTIONS:
Purchases 4,867,866 366,470 38,551 492,570 518,046 2,649,542 1,343,347
...........................................................................................................................
Net transfers 6,916,438 2,340,975 169,407 1,813,451 2,801,192 2,562,251 (1,869,595)
...........................................................................................................................
Surrenders for benefit payments
and fees (840,062) (31,360) (20,325) (33,140) (25,676) (361,687) (176,455)
...........................................................................................................................
Net loan activity (140,021) (13,510) -- (7,461) (3,502) (14,647) (14,296)
...........................................................................................................................
Cost of insurance (972,972) (80,442) (8,886) (67,116) (86,761) (516,570) (188,963)
...........................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions 9,831,249 2,582,133 178,747 2,198,304 3,203,299 4,318,889 (905,962)
...........................................................................................................................
Net increase in net assets 10,665,483 2,885,285 207,672 2,920,000 3,977,731 4,792,599 364,985
...........................................................................................................................
NET ASSETS:
Beginning of period 9,361,731 70,735 6,003 136,366 72,929 6,424,495 3,503,407
----------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $20,027,214 $2,956,020 $213,675 $3,056,366 $4,050,660 $11,217,094 $3,868,392
----------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Year Ended Fidelity
December 31, 1999 VIP II
Asset
Manager
Portfolio
Sub-Account
------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 35,234
................................
Capital gains income 44,630
................................
Net realized (loss) gain on
security transactions 1,464
................................
Net unrealized appreciation of
investments during the period 89,708
................................
Net increase in net assets
resulting from operations 171,036
................................
UNIT TRANSACTIONS:
Purchases 511,702
................................
Net transfers 455,197
................................
Surrenders for benefit payments
and fees (42,732)
................................
Net loan activity (16,010)
................................
Cost of insurance (72,617)
................................
Net increase (decrease) in net
assets resulting from unit
transactions 835,540
................................
Net increase in net assets 1,006,576
................................
NET ASSETS:
Beginning of period 990,001
------------------------------------------------------------------------------------------------------------
END OF PERIOD $1,996,577
------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-7
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended Bond Fund Stock Fund Money Advisers Capital Mortgage Index Fund
December 31, 1998 Sub-Account Sub-Account Market Fund Fund Appreciation Securities Sub-Account
Sub-Account Sub-Account Fund Fund
Sub-Account Sub-Account
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 94,731 $ 133,161 $ 445,803 $ 169,656 $ 88,276 $ 37,142 $ 84,654
............................................................................................................................
Capital gains income -- 103,525 -- 63,605 250,090 -- 53,874
............................................................................................................................
Net realized gain (loss) on
security transactions 9,305 (98) -- 4,573 39,470 (871) (922)
............................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 38,190 2,521,917 -- 731,402 1,421,650 (8,524) 1,330,595
............................................................................................................................
Net increase in net assets
resulting from operations 142,226 2,758,505 445,803 969,236 1,799,486 27,747 1,468,201
............................................................................................................................
UNIT TRANSACTIONS:
Purchases 683,210 3,513,223 95,425,381 1,751,574 3,507,330 37,276 2,118,676
............................................................................................................................
Net transfers 571,074 10,950,874 (72,076,036) 5,691,550 9,794,312 550,267 6,100,193
............................................................................................................................
Surrenders for benefit payments
and fees (31,817) (207,585) (411,072) (489,261) (187,213) (5,125) (112,773)
............................................................................................................................
Net loan activity (7,510) (178,910) (3,001,765) (71,056) (101,857) (7,079) (209,775)
............................................................................................................................
Cost of insurance (110,589) (599,935) (1,609,252) (229,420) (489,408) (31,183) (280,128)
............................................................................................................................
Net increase in net assets
resulting from unit
transactions 1,104,368 13,477,667 18,327,256 6,653,387 12,523,164 544,156 7,616,193
............................................................................................................................
Net increase in net assets 1,246,594 16,236,172 18,773,059 7,622,623 14,322,650 571,903 9,084,394
............................................................................................................................
NET ASSETS:
Beginning of period 762,910 1,821,061 7,024,417 1,150,533 2,739,058 87,758 1,777,294
-----------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $2,009,504 $18,057,233 $25,797,476 $8,773,156 $17,061,708 $ 659,661 $10,861,688
-----------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Year Ended International
December 31, 1998 Opportunities
Fund
Sub-Account
------------------------------------------------------------
OPERATIONS:
Net investment income $ 74,346
................................
Capital gains income 99,646
................................
Net realized gain (loss) on
security transactions (741)
................................
Net unrealized appreciation
(depreciation) of investments
during the period 214,444
................................
Net increase in net assets
resulting from operations 387,695
................................
UNIT TRANSACTIONS:
Purchases 1,309,658
................................
Net transfers 3,666,828
................................
Surrenders for benefit payments
and fees (64,967)
................................
Net loan activity (30,352)
................................
Cost of insurance (165,473)
................................
Net increase in net assets
resulting from unit
transactions 4,715,694
................................
Net increase in net assets 5,103,389
................................
NET ASSETS:
Beginning of period 771,631
------------------------------------------------------------------------
END OF PERIOD $5,875,020
------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-8
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended Dividend Growth and International Small MidCap Fidelity Fidelity
December 31, 1998 and Growth Income Fund Advisers Company Fund Fund VIP Equity- VIP
Fund Sub-Account* Fund Sub-Account* Sub-Account* Income Overseas
Sub-Account Sub-Account* Portfolio Portfolio
Sub-Account Sub-Account
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
...........................................................................................................................
Net investment income $ 137,525 $ 267 $ -- $ -- $ -- $ 14,647 $ 7,173
...........................................................................................................................
Capital gains income 62,013 -- -- -- -- 52,127 21,143
...........................................................................................................................
Net realized gain (loss) on
security transactions 1,074 14 5 235 191 690 (6,944)
...........................................................................................................................
Net unrealized appreciation of
investments during the period 561,829 5,996 239 23,159 9,414 333,233 162,234
...........................................................................................................................
Net increase in net assets
resulting from operations 762,441 6,277 244 23,394 9,605 400,697 183,606
...........................................................................................................................
UNIT TRANSACTIONS:
Purchases 2,087,615 3,992 1,111 4,285 5,632 1,026,458 686,112
...........................................................................................................................
Net transfers 5,745,039 62,775 4,904 114,315 62,276 4,607,992 2,484,394
...........................................................................................................................
Surrenders for benefit payments
and fees (95,097) (315) (126) (1,068) (433) (66,082) (24,102)
...........................................................................................................................
Net loan activity (128,288) -- -- (3,356) (3,343) (40,966) (25,210)
...........................................................................................................................
Cost of insurance (288,431) (1,994) (130) (1,204) (808) (150,445) (74,993)
...........................................................................................................................
Net increase in net assets
resulting from unit
transactions 7,320,838 64,458 5,759 112,972 63,324 5,376,957 3,046,201
...........................................................................................................................
Net increase in net assets 8,083,279 70,735 6,003 136,366 72,929 5,777,654 3,229,807
...........................................................................................................................
NET ASSETS:
Beginning of period 1,278,452 -- -- -- -- 646,841 273,600
----------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $9,361,731 $ 70,735 $ 6,003 $ 136,366 $ 72,929 $6,424,495 $3,503,407
----------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Year Ended Fidelity
December 31, 1998 VIP II
Asset
Manager
Portfolio
Sub-Account
------------------------------------------------------------------------------------------------
OPERATIONS:
................................
Net investment income $ 6,411
................................
Capital gains income 19,232
................................
Net realized gain (loss) on
security transactions 68
................................
Net unrealized appreciation of
investments during the period 58,568
................................
Net increase in net assets
resulting from operations 84,279
................................
UNIT TRANSACTIONS:
Purchases 229,316
................................
Net transfers 567,140
................................
Surrenders for benefit payments
and fees (8,417)
................................
Net loan activity 5,364
................................
Cost of insurance (21,314)
................................
Net increase in net assets
resulting from unit
transactions 772,089
................................
Net increase in net assets 856,368
................................
NET ASSETS:
Beginning of period 133,633
------------------------------------------------------------------------------------------------------------
END OF PERIOD $990,001
------------------------------------------------------------------------------------------------------------------------
</TABLE>
* From inception, August 3, 1998, to December 31, 1998.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-9
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Notes to Financial Statements
December 31, 1999
1. ORGANIZATION:
Separate Account VL I (the Account) is a separate investment account within
Hartford Life and Annuity Insurance Company (the Company) and is registered with
the Securities and Exchange Commission (SEC) as a unit investment trust under
the Investment Company Act of 1940, as amended. Both the Company and the Account
are subject to supervision and regulation by the Department of Insurance of the
State of Connecticut and the SEC. The Account invests deposits by variable life
contractholders of the Company in various mutual funds (the Funds) as directed
by the contractholders.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the Account,
which are in accordance with generally accepted accounting principles in the
investment company industry:
A) SECURITY TRANSACTIONS -- Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Realized gains and losses on
the sales of securities are computed on the basis of identified cost of the fund
shares sold. Dividend and capital gains income is accrued as of the ex-dividend
date. Capital gains income represents those dividends from the Funds which are
characterized as capital gains under tax regulations.
B) SECURITY VALUATION -- The investments in shares of the Funds are valued at
the closing net asset value per share as determined by the appropriate Fund as
of December 31, 1999.
C) UNIT TRANSACTIONS -- Unit transactions are executed based on the unit values
calculated at the close of the business day.
D) FEDERAL INCOME TAXES -- The operations of the Account form a part of, and
are taxed with, the total operations of the Company, which is taxed as an
insurance company under the Internal Revenue Code. Under current law, no federal
income taxes are payable with respect to the operations of the Account.
E) USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the financial statements and the reported amounts
of income and expenses during the period. Operating results in the future could
vary from the amounts derived from management's estimates.
3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES:
A) DEDUCTIONS AND CHARGES FROM THE ACCOUNT VALUE -- On the policy date and on
each subsequent monthly activity date, the Company will deduct from the Account
an amount to cover mortality and expense risk charges, cost of insurance,
administrative charges and any other benefits provided by the rider. These
charges, which may vary from month to month in accordance which the terms of the
contracts, are deducted through termination of units of interest from the
applicable contractholders' accounts.
SA-10
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Hartford Life and Annuity Insurance Company Separate Account VL I
and to the Owners of Units of Interest therein:
We have audited the accompanying statements of assets and liabilities of
Hartford Life and Annuity Insurance Company Separate Account VL I (Asia Pacific
Growth, Diversified Income, The George Putnam Fund of Boston, Global Asset
Allocation, Global Growth, Growth and Income, Health Sciences, High Yield,
Income, International Growth, International Growth and Income, International New
Opportunities, Investors, Money Market, New Opportunities, New Value, OTC &
Emerging Growth, Utilities Growth and Income, Vista, and Voyager sub-accounts),
(collectively, the Account) as of December 31, 1999, and the related statements
of operations and the statements of changes in net assets for the periods
presented. These financial statements are the responsibility of the Account's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Account as of December 31,
1999, and the results of its operations and the changes in its net assets for
the periods presented in conformity with generally accepted accounting
principles.
Hartford, Connecticut
February 11, 2000 ARTHUR ANDERSEN LLP
SA-11
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES
--------------------------------------------------------------------------------
<TABLE>
December 31, 1999 Asia Diversified The George Global Global Growth Health
Pacific Income Putnam Asset Growth and Income Sciences
Growth Sub-Account Fund of Allocation Sub-Account Sub-Account Sub-Account
Sub-Account Boston Sub-Account
Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT ASIA PACIFIC GROWTH
FUND
Shares 59,308
Cost $763,799
.........................................................................................................................
Market Value: $1,025,436 $ -- $ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT DIVERSIFIED INCOME FUND
Shares 103,161
Cost $1,069,034
.........................................................................................................................
Market Value: -- 1,024,392 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT THE GEORGE PUTNAM FUND
OF BOSTON
Shares 63,974
Cost $664,046
.........................................................................................................................
Market Value: -- -- 638,460 -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GLOBAL ASSET ALLOCATION
FUND
Shares 101,320
Cost $1,850,142
.........................................................................................................................
Market Value: -- -- -- 1,986,878 -- -- --
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GLOBAL GROWTH FUND
Shares 615,132
Cost $11,862,166
.........................................................................................................................
Market Value: -- -- -- -- 18,755,385 -- --
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GROWTH AND INCOME FUND
Shares 632,560
Cost $17,563,290
.........................................................................................................................
Market Value: -- -- -- -- -- 16,952,615 --
--------------------------------------------------------------------------------------------------------------------------
PUTNAM VT HEALTH SCIENCES FUND
Shares 165,692
Cost $1,702,975
.........................................................................................................................
Market Value: -- -- -- -- -- -- 1,739,761
--------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company 19,991 624 7,259 49 21,718 17,539 20,591
.........................................................................................................................
Receivable from fund shares sold -- -- -- -- -- -- --
.........................................................................................................................
TOTAL ASSETS 1,045,427 1,025,016 645,719 1,986,927 18,777,103 16,970,154 1,760,352
.........................................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company -- -- -- -- -- -- --
.........................................................................................................................
Payable for fund shares purchased 20,000 624 7,259 7 21,937 17,831 20,595
.........................................................................................................................
TOTAL LIABILITIES 20,000 624 7,259 7 21,937 17,831 20,595
--------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $1,025,427 $1,024,392 $638,460 $1,986,920 $18,755,166 $16,952,323 $1,739,757
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-12
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
December 31, 1999 High Yield Income International International International Investors Money
Sub-Account Sub-Account Growth Growth New Sub-Account Market
Sub-Account and Income Opportunities Sub-Account
Sub-Account Sub-Account
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
----------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT HIGH YIELD FUND
Shares 748,099
Cost $8,511,216
.................................................................................................................................
Market Value: $8,296,413 $ -- $ -- $ -- $ -- $ -- $ --
----------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INCOME FUND
Shares 198,313
Cost $2,619,410
.................................................................................................................................
Market Value: -- 2,482,879 -- -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL GROWTH
FUND
Shares 108,549
Cost $1,710,608
.................................................................................................................................
Market Value: -- -- 2,350,076 -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL GROWTH
AND INCOME FUND
Shares 53,760
Cost $740,008
.................................................................................................................................
Market Value: -- -- -- 819,842 -- -- --
----------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL NEW
OPPORTUNITIES FUND
Shares 34,944
Cost $587,797
.................................................................................................................................
Market Value: -- -- -- -- 814,548 -- --
----------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INVESTORS FUND
Shares 276,392
Cost $3,531,197
.................................................................................................................................
Market Value: -- -- -- -- -- 4,190,105 --
.................................................................................................................................
PUTNAM VT MONEY MARKET FUND
Shares 846,307
Cost $846,307
.................................................................................................................................
Market Value: -- -- -- -- -- -- 846,307
----------------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life
Insurance Company 10,287 3,954 11,266 4,298 1,348 19,034 38
.................................................................................................................................
Receivable from fund shares
sold -- -- -- -- -- -- --
.................................................................................................................................
TOTAL ASSETS 8,306,700 2,486,833 2,361,342 824,140 815,896 4,209,139 846,345
.................................................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company -- -- -- -- -- -- --
.................................................................................................................................
Payable for fund shares
purchased 10,292 3,952 11,252 4,324 1,343 19,023 --
.................................................................................................................................
TOTAL LIABILITIES 10,292 3,952 11,252 4,324 1,343 19,023 --
----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $8,296,408 $2,482,881 $ 2,350,090 $ 819,816 $ 814,553 $4,190,116 $ 846,345
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-13
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
December 31, 1999 New New OTC & Utilities Vista Voyager
Opportunities Value Emerging Growth Sub-Account Sub-Account
Sub-Account Sub-Account Growth and Income
Sub-Account Sub-Account
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
-------------------------------------------------------------------------------------------------------------
PUTNAM VT NEW OPPORTUNITIES FUND
Shares 431,035
Cost $10,846,160
............................................................................................................
Market Value: $18,767,277 $ -- $ -- $ -- $ -- $ --
-------------------------------------------------------------------------------------------------------------
PUTNAM VT NEW VALUE FUND
Shares 68,996
Cost $853,708
............................................................................................................
Market Value: -- 818,297 -- -- -- --
-------------------------------------------------------------------------------------------------------------
PUTNAM VT OTC & EMERGING GROWTH
FUND
Shares 95,840
Cost $1,569,777
............................................................................................................
Market Value: -- -- 2,184,196 -- -- --
-------------------------------------------------------------------------------------------------------------
PUTNAM VT UTILITIES GROWTH &
INCOME FUND
Shares 141,128
Cost $2,365,588
............................................................................................................
Market Value: -- -- -- 2,394,936 -- --
-------------------------------------------------------------------------------------------------------------
PUTNAM VT VISTA FUND
Shares 58,596
Cost $991,514
............................................................................................................
Market Value: -- -- -- -- 1,211,757 --
-------------------------------------------------------------------------------------------------------------
PUTNAM VT VOYAGER FUND
Shares 505,231
Cost $22,435,679
............................................................................................................
Market Value: -- -- -- -- -- 33,471,541
-------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company 40,415 13 3,847 8,011 1,114 492,237
............................................................................................................
Receivable from fund shares sold -- -- -- -- -- --
............................................................................................................
TOTAL ASSETS 18,807,692 818,310 2,188,043 2,402,947 1,212,871 33,963,778
............................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company -- -- -- -- -- --
............................................................................................................
Payable for fund shares purchased 40,457 11 3,974 7,996 1,382 491,801
............................................................................................................
TOTAL LIABILITIES 40,457 11 3,974 7,996 1,382 491,801
-------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $18,767,235 $818,299 $2,184,069 $2,394,951 $1,211,489 $33,471,977
-------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-14
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
<TABLE>
----------------------------------------------------------------------------------
December 31, 1999 Units Unit Contract
Owned by Price Liability
Participants
<S> <C> <C> <C>
----------------------------------------------------------------------------------
Variable life contracts:
Asia Pacific Growth Fund 46,200 $22.195177 $ 1,025,427
.................................................................................
Diversified Income Fund 78,785 13.002362 1,024,392
.................................................................................
George Putnam Fund of Boston 60,436 10.564227 638,460
.................................................................................
Global Asset Allocation Fund 85,437 23.255993 1,986,920
.................................................................................
Global Growth Fund 482,134 38.900326 18,755,166
.................................................................................
Growth and Income Fund 653,956 25.922728 16,952,323
.................................................................................
Health Sciences Fund 161,082 10.800460 1,739,757
.................................................................................
High Yield Fund 502,850 16.498765 8,296,408
.................................................................................
Income Fund 172,404 14.401541 2,482,881
.................................................................................
International Growth Fund 149,977 15.669625 2,350,090
.................................................................................
International Growth and Income Fund 67,366 12.169641 819,816
.................................................................................
International New Opportunities Fund 41,148 19.795791 814,553
.................................................................................
Investors Fund 287,885 14.554810 4,190,116
.................................................................................
Money Market Fund 622,997 1.358506 846,345
.................................................................................
New Opportunities Fund 487,277 38.514515 18,767,235
.................................................................................
New Value Fund 76,911 10.639520 818,299
.................................................................................
OTC & Emerging Growth Fund 89,503 24.402281 2,184,069
.................................................................................
Utilities Growth & Income Fund 111,426 21.493623 2,394,951
.................................................................................
Vista Fund 74,657 16.227448 1,211,489
.................................................................................
Voyager Fund 733,633 45.624982 33,471,977
.................................................................................
GRAND TOTAL: $120,770,674
----------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-15
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended Asia Diversified The George Global Global Growth Health
December 31, 1999 Pacific Income Putnam Asset Growth and Income Sciences
Growth Sub-Account Fund Allocation Sub-Account Sub-Account Sub-Account
Sub-Account of Boston Sub-Account
Sub-Account
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ -- $ 53,173 $ 14,180 $ 24,983 $ 38,016 $ 155,610 $ 1,301
.....................................................................................................................
Capital gains income -- -- 523 70,125 791,631 776,527 --
.....................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
.....................................................................................................................
Net realized gain (loss) on
security transactions 17,843 1,938 996 80 (2,383) (33,784) (473)
.....................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 261,527 (37,046) (27,608) 95,549 6,067,598 (1,040,044) 21,618
.....................................................................................................................
Net gain (loss) on investments 279,370 (35,108) (26,612) 95,629 6,065,215 (1,073,828) 21,145
----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS: $279,370 $ 18,065 $(11,909) $190,737 $6,894,862 $ (141,691) $22,446
----------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-16
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended High Yield Income International International International Investors
December 31, 1999 Sub-Account Sub-Account* Growth Growth and New Sub-Account
Sub-Account Income Opportunities
Sub-Account Sub-Account
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $292,292 $ 110,447 $ -- $ -- $ 19 $ --
......................................................................................................................
Capital gains income -- 32,951 -- -- -- --
......................................................................................................................
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
......................................................................................................................
Net realized gain (loss) on
security transactions 245 3,034 3,599 (330) 39 249
......................................................................................................................
Net unrealized appreciation
(depreciation) of
investments during the
period (59,106) (190,824) 627,287 78,520 224,583 645,354
......................................................................................................................
Net gain (loss) on
investments (58,861) (187,790) 630,886 78,190 224,622 645,603
-----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS: $233,431 $ (44,392) $ 630,886 $ 78,190 $ 224,641 $ 645,603
-----------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Year Ended Money
December 31, 1999 Market
Sub-Account
-------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 32,522
.............................
Capital gains income --
.............................
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
.............................
Net realized gain (loss) on
security transactions --
.............................
Net unrealized appreciation
(depreciation) of
investments during the
period --
.............................
Net gain (loss) on
investments --
-------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS: $ 32,522
-------------------------------------------------------------------------------
</TABLE>
*Formerly Putnam U.S. Government and High Quality Bond Sub-Account, change
effective on April 9, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-17
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended New New OTC & Utilities Vista Voyager
December 31, 1999 Opportunities Value Emerging Growth Sub-Account Sub-Account
Sub-Account Sub-Account Growth and Income
Sub-Account Sub-Account
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ -- $ 3 $ -- $ 49,760 $ -- $ 15,233
..................................................................................................................
Capital gains income 106,172 690 4,151 52,257 84,505 1,221,590
..................................................................................................................
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
..................................................................................................................
Net realized gain (loss) on
security transactions (6,713) (66) 11,233 (253) 454 (39,914)
..................................................................................................................
Net unrealized appreciation
(depreciation) of
investments during the
period 6,825,628 (35,850) 610,876 (99,311) 212,805 9,581,148
..................................................................................................................
Net gain (loss) on
investments 6,818,915 (35,916) 622,109 (99,564) 213,259 9,541,234
-------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS: $ 6,925,087 $(35,223) $ 626,260 $ 2,453 $ 297,764 $10,778,057
-------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-18
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended Asia Diversified The George Global Asset Global Growth Health
December 31, 1999 Pacific Income Putnam Fund Allocation Growth and Income Sciences
Growth Sub-Account of Boston Sub-Account Sub-Account Sub-Account Sub-Account
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ -- $ 53,173 $ 14,180 $ 24,983 $ 38,016 $ 155,610 $ 1,301
.............................................................................................................................
Capital gains income -- -- 523 70,125 791,631 776,527 --
.............................................................................................................................
Net realized gain (loss) on
security transactions 17,843 1,938 996 80 (2,383) (33,784) (473)
.............................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 261,527 (37,046) (27,608) 95,549 6,067,598 (1,040,044) 21,618
.............................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 279,370 18,065 (11,909) 190,737 6,894,862 (141,691) 22,446
.............................................................................................................................
UNIT TRANSACTIONS:
Purchases 108,126 211,349 157,313 347,395 3,481,474 4,231,020 536,671
.............................................................................................................................
Net transfers 666,162 183,678 468,303 541,483 1,913,864 6,270,754 1,133,137
.............................................................................................................................
Surrenders for benefit payments
and fees (7,756) (26,818) (24,713) (33,349) (392,829) (335,856) (22,235)
.............................................................................................................................
Net loan activity (3,445) (133) (16,345) (4,153) (82,403) (65,775) (274)
.............................................................................................................................
Cost of insurance (19,412) (48,582) (30,579) (78,837) (576,892) (857,222) (82,181)
.............................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions 743,675 319,494 553,979 772,539 4,343,214 9,242,921 1,565,118
.............................................................................................................................
Total increase (decrease) in net
assets 1,023,045 337,559 542,070 963,276 11,238,076 9,101,230 1,587,564
.............................................................................................................................
NET ASSETS:
Beginning of period 2,382 686,833 96,390 1,023,644 7,517,090 7,851,093 152,193
------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $1,025,427 $1,024,392 $638,460 $1,986,920 $18,755,166 $16,952,323 $1,739,757
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-19
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended High Yield Income International International International Investors Money
December 31, 1999 Sub-Account Sub-Account* Growth Growth New Sub-Account Market
Sub-Account and Income Opportunities Sub-Account
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 292,292 $ 110,447 $ -- $ -- $ 19 $ -- $ 32,522
.............................................................................................................................
Capital gains income -- 32,951 -- -- -- -- --
.............................................................................................................................
Net realized gain (loss) on
security transactions 245 3,034 3,599 (330) 39 249 --
.............................................................................................................................
Net unrealized appreciation
(depreciation) of
investments during the
period (59,106) (190,824) 627,287 78,520 224,583 645,354 --
.............................................................................................................................
Net increase (decrease) in
net assets resulting from
operations 233,431 (44,392) 630,886 78,190 224,641 645,603 32,522
.............................................................................................................................
UNIT TRANSACTIONS:
Purchases 1,491,768 730,356 276,961 141,351 85,042 763,172 180,914
.............................................................................................................................
Net transfers 5,301,286 530,713 1,294,798 459,682 527,339 2,772,882 210,538
.............................................................................................................................
Surrenders for benefit
payments and fees (318,863) (37,656) (12,488) (14,071) (23,805) (25,132) (17,823)
.............................................................................................................................
Net loan activity (316,408) 8,214 (6,702) (159) (32) (1,256) (48,279)
.............................................................................................................................
Cost of insurance (287,610) (184,497) (71,011) (29,033) (15,818) (125,913) (39,490)
.............................................................................................................................
Net increase (decrease) in
net assets resulting from
unit transactions 5,870,173 1,047,130 1,481,558 557,770 572,726 3,383,753 285,860
.............................................................................................................................
Total increase (decrease) in
net assets 6,103,604 1,002,738 2,112,444 635,960 797,367 4,029,356 318,382
.............................................................................................................................
NET ASSETS:
Beginning of period 2,192,804 1,480,143 237,646 183,856 17,186 160,760 527,963
------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $8,296,408 $2,482,881 $2,350,090 $ 819,816 $ 814,553 $4,190,116 $ 846,345
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Formerly Putnam U.S. Government and High Quality Bond Sub-Account, change
effective on April 9, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-20
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended New New OTC & Utilities Vista Voyager
December 31, 1999 Opportunities Value Emerging Growth Sub-Account Sub-Account
Sub-Account Sub-Account Growth and Income
Sub-Account Sub-Account
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ -- $ 3 $ -- $ 49,760 $ -- $ 15,233
............................................................................................................
Capital gains income 106,172 690 4,151 52,257 84,505 1,221,590
............................................................................................................
Net realized gain (loss) on
security transactions (6,713) (66) 11,233 (253) 454 (39,914)
............................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 6,825,628 (35,850) 610,876 (99,311) 212,805 9,581,148
............................................................................................................
Net increase (decrease) in net
assets resulting from
operations 6,925,087 (35,223) 626,260 2,453 297,764 10,778,057
............................................................................................................
UNIT TRANSACTIONS:
Purchases 2,811,112 44,339 169,618 536,290 190,448 5,464,827
............................................................................................................
Net transfers 3,554,730 828,850 1,611,612 854,187 707,722 8,863,280
............................................................................................................
Surrenders for benefit payments
and fees (456,839) (5,976) (218,538) (87,831) 9,128 (548,816)
............................................................................................................
Net loan activity (49,216) (376) (114) (23,003) (262) (145,402)
............................................................................................................
Cost of insurance (540,650) (29,965) (34,954) (121,191) (40,396) (1,048,842)
............................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions 5,319,137 836,872 1,527,624 1,158,452 866,640 12,585,047
............................................................................................................
Total increase (decrease) in net
assets 12,244,224 801,649 2,153,884 1,160,905 1,164,404 23,363,104
............................................................................................................
NET ASSETS:
Beginning of period 6,523,011 16,650 30,185 1,234,046 47,085 10,108,873
-------------------------------------------------------------------------------------------------------------
END OF PERIOD $18,767,235 $818,299 $2,184,069 $2,394,951 $1,211,489 $33,471,977
-------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-21
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended Asia Pacific Diversified The George Global Global Growth Health
December 31, 1998 Growth Income Putnam Fund Asset Growth and Income Sciences
Sub-Account* Sub-Account of Boston Allocation Sub-Account Sub-Account Sub-Account*
Sub-Account* Sub-Account
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ -- $ 2,718 $ 532 $ 9,598 $ 66,009 $ 36,061 $ 126
................................................................................................................................
Capital gains income -- 1,154 -- 41,227 330,045 235,404 --
................................................................................................................................
Net realized gain (loss) on
security transactions -- 15 7 511 3,657 4,991 2
................................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 110 (9,453) 2,022 31,846 799,731 369,952 15,169
................................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 110 (5,566) 2,561 83,182 1,199,442 646,408 15,297
................................................................................................................................
UNIT TRANSACTIONS:
Purchases 1,025 85,364 26,333 197,777 1,777,192 1,520,697 43,812
................................................................................................................................
Net transfers 1,266 584,214 68,878 474,639 3,292,482 4,737,360 95,215
................................................................................................................................
Surrenders for benefit payments
and fees (8) (6,589) (507) (12,784) (99,324) (94,734) (539)
................................................................................................................................
Net loan activity -- (2) (39) (591) (60,658) (99,490) --
................................................................................................................................
Cost of insurance (11) (13,198) (836) (29,489) (227,264) (257,615) (1,592)
................................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions 2,272 649,789 93,829 629,552 4,682,428 5,806,218 136,896
................................................................................................................................
Total increase (decrease) in net
assets 2,382 644,223 96,390 712,734 5,881,870 6,452,626 152,193
................................................................................................................................
NET ASSETS:
Beginning of period -- 42,610 -- 310,910 1,635,220 1,398,467 --
---------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 2,382 $686,833 $ 96,390 $1,023,644 $7,517,090 $7,851,093 $ 152,193
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*From inception August 3, 1998, to December 31, 1998.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-22
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended High Yield Income International International International Investors Money
December 31, 1998 Sub-Account Sub-Account** Growth Growth and New Sub-Account* Market
Sub-Account* Income Opportunities Sub-Account
Sub-Account* Sub-Account*
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 34,276 $ 61,358 $ 631 $ 2,027 $ -- $ 111 $ 10,171
................................................................................................................................
Capital gains income 5,378 1,597 -- 4,882 -- -- --
................................................................................................................................
Net realized gain (loss) on
security transactions 8,112 2,773 (2) (4) 5 (1) --
................................................................................................................................
Net unrealized appreciation
(depreciation) of
investments during the
period (176,046) 12,767 12,182 1,315 2,169 13,554 --
................................................................................................................................
Net increase (decrease) in
net assets resulting from
operations (128,280) 78,495 12,811 8,220 2,174 13,664 10,171
................................................................................................................................
UNIT TRANSACTIONS:
Purchases 465,319 518,167 9,271 17,634 1,092 18,749 111,154
................................................................................................................................
Net transfers 1,652,869 (216,141) 217,210 159,730 14,115 131,102 294,105
................................................................................................................................
Surrenders for benefit
payments and fees (17,686) (23,212) (739) (640) (71) (525) (4,383)
................................................................................................................................
Net loan activity (12,272) (153) -- (1) -- (2) (1,053)
................................................................................................................................
Cost of insurance (51,815) (70,077) (907) (1,087) (124) (2,228) (9,256)
................................................................................................................................
Net increase (decrease) in
net assets resulting from
unit transactions 2,036,415 208,584 224,835 175,636 15,012 147,096 390,567
................................................................................................................................
Total increase (decrease) in
net assets 1,908,135 287,079 237,646 183,856 17,186 160,760 400,738
................................................................................................................................
NET ASSETS:
Beginning of period 284,669 1,193,064 -- -- -- -- 127,225
---------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $2,192,804 $ 1,480,143 $ 237,646 $ 183,856 $ 17,186 $ 160,760 $ 527,963
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*From inception August 3, 1998, to December 31, 1998.
**Formerly Putnam U.S. Government and High Quality Bond Sub-Account, change
effective on April 9, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-23
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended New New OTC & Utilities Vista Voyager
December 31, 1998 Opportunities Value Emerging Growth Sub-Account* Sub-Account
Sub-Account Sub-Account Growth and Income
Sub-Account* Sub-Account
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ -- $ 131 $ 10 $ 10,596 $ -- $ 5,550
................................................................................................................
Capital gains income 25,739 25 -- 18,263 -- 135,426
................................................................................................................
Net realized gain (loss) on
security transactions (50,616) 255 769 (609) 4 1,139
................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 967,053 439 3,544 84,719 7,437 1,302,791
................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 942,176 850 4,323 112,969 7,441 1,444,906
................................................................................................................
UNIT TRANSACTIONS:
Purchases 1,695,165 4,212 5,337 269,787 1,667 1,842,714
................................................................................................................
Net transfers 2,990,857 12,066 21,258 641,807 38,890 5,859,152
................................................................................................................
Surrenders for benefit payments
and fees (78,215) (154) (231) (7,600) (259) (104,683)
................................................................................................................
Net loan activity (10,265) -- (1) (8,087) -- (122,704)
................................................................................................................
Cost of insurance (162,662) (324) (501) (34,433) (654) (253,931)
................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions 4,434,880 15,800 25,862 861,474 39,644 7,220,548
................................................................................................................
Total increase (decrease) in net
assets 5,377,056 16,650 30,185 974,443 47,085 8,665,454
................................................................................................................
NET ASSETS:
Beginning of period 1,145,955 -- -- 259,603 -- 1,443,419
-----------------------------------------------------------------------------------------------------------------
END OF PERIOD $6,523,011 $ 16,650 $30,185 $1,234,046 $ 47,085 $10,108,873
-----------------------------------------------------------------------------------------------------------------
</TABLE>
*From inception August 3, 1998, to December 31, 1998.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-24
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
1. ORGANIZATION:
Separate Account VL I (the Account) is a separate investment account within
Hartford Life and Annuity Insurance Company (the Company) and is registered with
the Securities and Exchange Commission (SEC) as a unit investment trust under
the Investment Company Act of 1940, as amended. Both the Company and the Account
are subject to supervision and regulation by the Department of Insurance of the
State of Connecticut and the SEC. The Account invests deposits by variable life
policyowners of the Company in the various mutual funds (the Funds) as directed
by the policyowners.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the Account,
which are in accordance with generally accepted accounting principles in the
investment company industry:
A) SECURITY TRANSACTIONS -- Security transactions are recorded on the trade date
(date the order to buy or sell is executed). Realized gains and losses on the
sales of securities are computed on the basis of identified cost of the fund
shares sold. Dividend and capital gains income is accrued as of the ex-dividend
date. Capital gains income represents dividends from the Funds which are
characterized as capital gains under tax regulations.
B) SECURITY VALUATION -- The investments in shares of the Funds are valued at
the closing net asset value per share as determined by the appropriate Fund as
of December 31, 1999.
C) UNIT TRANSACTIONS -- Unit transactions are executed based on the unit values
calculated at the close of the business day. All unit transactions are executed
at fair value.
D) FEDERAL INCOME TAXES -- The operations of the Account form a part of, and are
taxed with, the total operations of the Company, which is taxed as an insurance
company under the Internal Revenue Code. Under current law, no federal income
taxes are payable with respect to the operations of the Account.
E) USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the financial statements and the reported amounts
of income and expenses during the period. Operating results in the future could
vary from the amounts derived from management's estimates.
3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES:
A) COST OF INSURANCE -- In accordance with terms of the policies, the Company
assesses deductions for costs of insurance charges to cover the Company's
anticipated mortality costs. Because a policy's account value and death benefit
may vary from month to month, the cost of insurance charges may also vary.
B) MORTALITY AND EXPENSE RISK CHARGE -- The Company, as issuer of variable life
policies, provides the mortality and expense undertakings and, with respect to
the Account, receives a maximum annual fee of 1.40% of the Account's average
daily net assets. These charges are reflected in surrenders for benefit payments
and fees on the accompanying statements of changes in net assets.
C) ADMINISTRATIVE AND ISSUE CHARGES -- The Company assesses a monthly
administrative charge to compensate the Company for administrative costs in
connection with the policies. This charge covers the average expected cost for
these expenses at a maximum of $12 per month. Additionally, the Company assesses
a monthly charge in the first policy year for up-front costs of underwriting and
issuing a policy at a monthly maximum amount of $62.50. These charges are
reflected in surrenders for benefit payments and fees on the accompanying
statements of changes in net assets.
D) DEDUCTION OF ANNUAL MAINTENANCE FEE -- Annual maintenance fees are deducted
through termination of units of interest from applicable policyowners' accounts,
in accordance with the terms of the policies. In addition, certain other charges
may apply based on the characteristics of the underlying policy. These charges
are reflected in surrenders for benefit payments and fees on the accompanying
statements of changes in net assets.
SA-25
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
BALANCE SHEETS
(STATUTORY BASIS)
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
<S> <C> <C>
-----------------------------------------------------------------------------------
<CAPTION>
2000 1999
-----------------------------------------------------------------------------------
<S> <C> <C>
<CAPTION>
(UNAUDITED)
ASSETS
<S> <C> <C>
Bonds $ 1,226,915 $ 1,465,815
Common stocks 38,701 42,430
Mortgage loans 34,380 63,784
Policy loans 75,857 59,429
Cash and short-term investments 213,302 267,579
-----------------------------------------------------------------------------------
Other invested assets 18,836 2,892
-----------------------------------------------------------------------------------
Total cash and invested assets 1,607,991 1,901,929
Investment income due and accrued 20,344 21,069
Other assets 41,486 39,576
Separate account assets 47,812,204 44,865,042
-----------------------------------------------------------------------------------
TOTAL ASSETS $49,482,025 $46,827,616
-----------------------------------------------------------------------------------
LIABILITIES
Aggregate reserves for future benefits $ 615,263 $ 591,621
Policy and contract claim liabilities 11,835 7,677
Liability for premium and other deposit funds 1,583,921 1,969,262
Asset valuation reserve 3,647 4,935
Payable to affiliates 22,829 14,084
Accrued expense allowances and other amounts due
from separate account (1,392,483) (1,377,927)
Remittances and items not allocated 135,641 111,582
Other liabilities 152,799 118,464
Separate account liabilities 47,812,204 44,865,042
-----------------------------------------------------------------------------------
TOTAL LIABILITIES 48,945,656 46,304,740
-----------------------------------------------------------------------------------
CAPITAL AND SURPLUS
Common stock 2,500 2,500
Gross paid-in and contributed surplus 226,043 226,043
Unassigned funds 307,826 294,333
-----------------------------------------------------------------------------------
TOTAL CAPITAL AND SURPLUS 536,369 522,876
-----------------------------------------------------------------------------------
TOTAL LIABILITIES, CAPITAL AND SURPLUS $49,482,025 $46,827,616
-----------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-1
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
(STATUTORY BASIS)
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
<S> <C> <C>
----------------------------------------------------------------------------
<CAPTION>
2000 1999
----------------------------------------------------------------------------
<S> <C> <C>
REVENUES
Premiums and annuity considerations $ 564,487 $ 407,330
Annuity and other fund deposits 3,213,811 2,745,707
Net investment income 82,766 92,321
Commissions and expense allowances on
reinsurance ceded 96,524 243,448
Reserve adjustment on reinsurance ceded 1,022,716 702,323
Fee income 618,388 455,917
Other revenues 3,847 7,887
----------------------------------------------------------------------------
TOTAL REVENUES 5,602,539 4,654,933
----------------------------------------------------------------------------
BENEFITS AND EXPENSES
Death and annuity benefits 42,004 34,403
Disability and other benefits 4,228 4,583
Surrenders and other fund withdrawals 2,654,640 858,280
Commissions 363,369 353,077
Increase (Decrease) in aggregate reserves for
future benefits 23,431 (650)
(Decrease) Increase in liability for premium and
other deposit funds (384,393) 2,232
General insurance expenses 182,679 115,771
Net transfers to separate accounts 2,597,386 3,231,911
Other expenses 22,881 16,734
----------------------------------------------------------------------------
TOTAL BENEFITS AND EXPENSES 5,506,225 4,616,341
----------------------------------------------------------------------------
NET GAIN FROM OPERATIONS
Before federal income tax expense 96,314 38,592
Federal income tax expense 71,591 13,144
----------------------------------------------------------------------------
NET GAIN FROM OPERATIONS 24,723 25,448
Net realized capital losses, after tax (514) (36,258)
----------------------------------------------------------------------------
NET INCOME (LOSS) $ 24,209 $ (10,810)
----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-2
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS
(STATUTORY BASIS)
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
<S> <C> <C>
----------------------------------------------------------------------------
<CAPTION>
2000 1999
----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK
Beginning and end of year $ 2,500 $ 2,500
----------------------------------------------------------------------------
GROSS PAID-IN AND CONTRIBUTED SURPLUS
Beginning and end of year $226,043 $226,043
----------------------------------------------------------------------------
UNASSIGNED FUNDS
Balance, beginning of year $294,333 $247,969
Net income (loss) 24,209 (10,810)
Change in net unrealized capital gains (losses)
on common stocks and other invested assets (3,702) 1,489
Change in asset valuation reserve 1,288 18,079
Change in non-admitted assets (3,126) 2,773
Credit on reinsurance ceded (5,176) (2,716)
----------------------------------------------------------------------------
Balance, end of year $307,826 $256,784
----------------------------------------------------------------------------
CAPITAL AND SURPLUS
End of year $536,369 $485,327
----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-3
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
(STATUTORY BASIS)
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
<S> <C> <C>
----------------------------------------------------------------------------
<CAPTION>
2000 1999
----------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Premiums and annuity considerations $3,776,739 $3,152,996
Investment income 83,130 93,174
Fee income 618,388 455,917
Other income 1,114,139 949,553
----------------------------------------------------------------------------
Total income 5,592,396 4,651,640
----------------------------------------------------------------------------
Benefits paid 2,697,533 896,755
Federal income taxes (recoveries) payments (3,299) 24,000
Net transfers to separate accounts 2,597,386 3,231,911
Other expenses 585,737 552,191
----------------------------------------------------------------------------
Total benefits and expenses 5,877,357 4,704,857
----------------------------------------------------------------------------
NET CASH USED BY OPERATING ACTIVITIES (284,961) (53,217)
----------------------------------------------------------------------------
INVESTING ACTIVITIES
PROCEEDS FROM INVESTMENTS SOLD
Bonds 508,750 634,564
Common stocks 614 754
Mortgage loans 33,312 30,292
Other -- 1,351
----------------------------------------------------------------------------
NET INVESTMENT PROCEEDS 542,676 666,961
----------------------------------------------------------------------------
COST OF INVESTMENTS ACQUIRED
Bonds 274,569 727,958
Common stocks 468 166
Mortgage loans 3,681 56,013
Other 32,356 39,099
----------------------------------------------------------------------------
TOTAL INVESTMENTS ACQUIRED 311,074 823,236
----------------------------------------------------------------------------
NET CASH PROVIDED BY (USED FOR) INVESTING
ACTIVITIES 231,602 (156,275)
----------------------------------------------------------------------------
FINANCING AND MISCELLANEOUS ACTIVITIES
Net other cash used (918) (24,952)
----------------------------------------------------------------------------
NET CASH USED FOR FINANCING AND MISCELLANEOUS
ACTIVITIES (918) (24,952)
----------------------------------------------------------------------------
Net change in cash and short-term investments (54,277) (234,444)
Cash and short-term investments, beginning of
period 267,579 469,955
----------------------------------------------------------------------------
CASH AND SHORT-TERM INVESTMENTS, END OF PERIOD $ 213,302 $ 235,511
----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(STATUTORY BASIS)
(DOLLAR AMOUNTS IN MILLIONS UNLESS OTHERWISE STATED)
(Unaudited)
--------------------------------------------------------------------------------
1. BASIS OF PRESENTATION:
The accompanying unaudited financial statements of Hartford Life and Annuity
Insurance Company (the Company) have been prepared in conformity with statutory
accounting practices prescribed by the National Association of Insurance
Commissioners and the Connecticut Department of Insurance. Certain information
and note disclosures which are normally included in financial statements
prepared in accordance with statutory accounting practices have been condensed
or omitted, although the Company believes that the disclosures made are adequate
to make the information presented not misleading. In the opinion of management,
these statements include all adjustments which were normal recurring adjustments
necessary to present fairly the financial position, results of operations and
cash flows for the periods presented in accordance with statutory accounting
practices. For a description of significant accounting policies, see Note 1 of
Notes to Financial Statements in Hartford Life and Annuity Insurance Company's
1999 statutory basis financial statements.
Certain reclassifications have been made to prior year financial information to
conform to the current year classification of transactions and accounts.
2. INVESTMENTS:
In October 1998, the Company became aware of allegations of improper activities
at Commercial Financial Services Inc. (CFS), a securitizer and servicer of asset
backed securities. On December 11, 1998, CFS filed for protection under Chapter
11 of the Bankruptcy Code and, in June 1999, CFS ceased operations. In August
1999, the Company sold all of its CFS holdings recognizing a $36, after tax,
realized capital loss.
F-5
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
----------------------------------------------------
To the Board of Directors of
Hartford Life and Annuity Insurance Company:
We have audited the accompanying statutory balance sheets of Hartford Life and
Annuity Insurance Company (a Connecticut Corporation and wholly owned subsidiary
of Hartford Life Insurance Company) (the Company) as of December 31, 1999 and
1998, and the related statutory statements of operations, changes in capital and
surplus, and cash flows for each of the three years in the period ended December
31, 1999. These statutory financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
statutory financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
The Company presents its financial statements in conformity with statutory
accounting practices as described in Note 2 of notes to statutory financial
statements. When financial statements are presented for purposes other than for
filing with a regulatory agency, auditing standards generally accepted in the
United States require that an auditors' report on them state whether they are
presented in conformity with accounting principles generally accepted in the
United States. The accounting practices used by the Company vary from accounting
principles generally accepted in the United States as explained and quantified
in Note 2.
In our opinion, because of the effects of the matter discussed in the preceding
paragraph, the statutory financial statements referred to above do not present
fairly, in conformity with accounting principles generally accepted in the
United States, the financial position of the Company as of December 31, 1999 and
1998, or the results of its operations or its cash flows for each of the three
years in the period ended December 31, 1999.
In our opinion, the statutory financial statements referred to above present
fairly, in all material respects, the financial position of the Company as of
December 31, 1999 and 1998, and the results of its operations and its cash flows
for each of the three years in the period ended December 31, 1999 in conformity
with statutory accounting practices as described in Note 2.
Hartford, Connecticut
January 31, 2000 ARTHUR ANDERSEN LLP
F-1
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
BALANCE SHEETS
(STATUTORY BASIS)
($000)
--------------------------------------------------------
<TABLE>
<CAPTION>
AS OF DECEMBER 31,
<S> <C> <C>
------------------------------------------------------------------------------------------------
<CAPTION>
1999 1998
------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Bonds $ 1,465,815 $ 1,453,792
Common stocks 42,430 40,650
Mortgage loans 63,784 59,548
Policy loans 59,429 47,212
Cash and short-term investments 267,579 469,955
------------------------------------------------------------------------------------------------
Other invested assets 2,892 2,188
------------------------------------------------------------------------------------------------
Total cash and invested assets 1,901,929 2,073,345
Investment income due and accrued 21,069 20,126
Other assets 39,576 45,691
Separate account assets 44,865,042 32,876,278
------------------------------------------------------------------------------------------------
TOTAL ASSETS $46,827,616 $35,015,440
------------------------------------------------------------------------------------------------
LIABILITIES
Aggregate reserves for future benefits $ 591,621 $ 579,140
Policy and contract claim liabilities 7,677 5,667
Liability for premium and other deposit funds 1,969,262 2,011,672
Asset valuation reserve 4,935 21,782
Payable to affiliates 14,084 19,271
Accrued expense allowances and other amounts due from
separate accounts (1,377,927) (1,173,513)
Remittances and items not allocated 111,582 87,449
Other liabilities 118,464 111,182
Separate account liabilities 44,865,042 32,876,278
------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 46,304,740 34,538,928
------------------------------------------------------------------------------------------------
CAPITAL AND SURPLUS
Common stock 2,500 2,500
Gross paid-in and contributed surplus 226,043 226,043
Unassigned funds 294,333 247,969
------------------------------------------------------------------------------------------------
TOTAL CAPITAL AND SURPLUS 522,876 476,512
------------------------------------------------------------------------------------------------
TOTAL LIABILITIES, CAPITAL AND SURPLUS $46,827,616 $35,015,440
------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-2
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
(STATUTORY BASIS)
($000)
--------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
<S> <C> <C> <C>
-------------------------------------------------------------------------------------------------------
<CAPTION>
1999 1998 1997
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REVENUES
Premiums and annuity considerations $ 621,789 $ 469,343 $ 296,645
Annuity and other fund deposits 2,991,363 2,051,251 1,981,246
Net investment income 122,322 129,982 102,285
Commissions and expense allowances on reinsurance ceded 379,905 444,241 396,921
Reserve adjustment on reinsurance ceded 1,411,342 3,185,590 3,672,076
Fee income 647,565 448,260 290,675
Other revenues 842 9,930 (2,043)
-------------------------------------------------------------------------------------------------------
TOTAL REVENUES 6,175,128 6,738,597 6,737,805
-------------------------------------------------------------------------------------------------------
BENEFITS AND EXPENSES
Death and annuity benefits 47,372 43,152 65,961
Disability and other benefits 6,270 6,352 7,532
Surrenders and other fund withdrawals 1,250,813 739,663 454,417
Commissions 467,338 435,994 470,334
Increase (Decrease) in aggregate reserves for future
benefits 12,481 (10,711) 33,213
(Decrease) Increase in liability for premium and other
deposit funds (47,852) 218,642 640,840
General insurance expenses 192,196 190,979 77,237
Net transfers to separate accounts 4,160,501 4,956,007 4,914,980
Other expenses 35,385 22,091 15,671
-------------------------------------------------------------------------------------------------------
TOTAL BENEFITS AND EXPENSES 6,124,504 6,602,169 6,680,185
-------------------------------------------------------------------------------------------------------
NET GAIN FROM OPERATIONS
Before federal income tax (benefit) expense 50,624 136,428 57,620
Federal income tax (benefit) expense (10,231) 35,887 (14,878)
-------------------------------------------------------------------------------------------------------
NET GAIN FROM OPERATIONS 60,855 100,541 72,498
Net realized capital (losses) gains, after tax (36,428) 2,085 1,544
-------------------------------------------------------------------------------------------------------
NET INCOME $ 24,427 $ 102,626 $ 74,042
-------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-3
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS
(STATUTORY BASIS)
($000)
--------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
<S> <C> <C> <C>
-------------------------------------------------------------------------------------------------
<CAPTION>
1999 1998 1997
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK
Beginning and end of year $ 2,500 $ 2,500 $ 2,500
-------------------------------------------------------------------------------------------------
GROSS PAID-IN AND CONTRIBUTED SURPLUS
Beginning and end of year 226,043 226,043 226,043
-------------------------------------------------------------------------------------------------
UNASSIGNED FUNDS
Balance, beginning of year 247,969 143,257 74,570
Net income 24,427 102,626 74,042
Change in net unrealized capital gains on common stocks
and other invested assets 2,258 1,688 2,186
Change in asset valuation reserve 16,847 (8,112) (6,228)
Change in non-admitted assets 6,557 (1,277) (1,313)
Credit on reinsurance ceded (3,725) 9,787 --
-------------------------------------------------------------------------------------------------
Balance, end of year 294,333 247,969 143,257
-------------------------------------------------------------------------------------------------
CAPITAL AND SURPLUS,
End of year $522,876 $476,512 $371,800
-------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-4
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
(STATUTORY BASIS)
($000)
--------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
<S> <C> <C> <C>
-------------------------------------------------------------------------------------------------------
<CAPTION>
1999 1998 1997
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATING ACTIVITIES
Premiums and annuity considerations $3,613,217 $2,520,655 $2,277,874
Net investment income 122,998 127,425 101,991
Fee income 647,565 448,260 290,675
Other income 1,799,323 3,644,704 4,091,043
-------------------------------------------------------------------------------------------------------
Total income 6,183,103 6,741,044 6,761,583
-------------------------------------------------------------------------------------------------------
Benefits paid 1,303,801 790,051 529,733
Federal income tax (recoveries) payments (8,815) 25,780 (14,499)
Net transfers to separate accounts 4,364,914 5,222,144 5,199,354
Other expenses 669,525 626,240 547,692
-------------------------------------------------------------------------------------------------------
Total benefits and expenses 6,329,425 6,664,215 6,262,280
-------------------------------------------------------------------------------------------------------
NET CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES (146,322) 76,829 499,303
-------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
PROCEEDS FROM INVESTMENTS SOLD
Bonds 753,358 633,926 614,413
Common stocks 939 34,010 11,481
Mortgage loans 53,704 85,275 --
Other 1,490 19,990 152
-------------------------------------------------------------------------------------------------------
NET INVESTMENT PROCEEDS 809,491 773,201 626,046
-------------------------------------------------------------------------------------------------------
COST OF INVESTMENTS ACQUIRED
Bonds 804,947 586,913 848,267
Common stocks 464 7,012 28,302
Mortgage loans 57,665 59,702 85,103
Other 14,211 11,847 26,227
-------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS ACQUIRED 877,287 665,474 987,899
-------------------------------------------------------------------------------------------------------
NET CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES $ (67,796) $ 107,727 $ (361,853)
-------------------------------------------------------------------------------------------------------
FINANCING AND MISCELLANEOUS ACTIVITIES
Net other cash provided (used) 11,742 (24,033) (4,848)
-------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY (USED FOR) FINANCING
AND MISCELLANEOUS ACTIVITIES 11,742 (24,033) (4,848)
-------------------------------------------------------------------------------------------------------
Net (decrease) increase in cash and short-term investments (202,376) 160,523 132,602
Cash and short-term investments, beginning of year 469,955 309,432 176,830
-------------------------------------------------------------------------------------------------------
CASH AND SHORT-TERM INVESTMENTS, END OF YEAR $ 267,579 $ 469,955 $ 309,432
-------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(STATUTORY BASIS)
DECEMBER 31, 1999
(AMOUNTS IN THOUSANDS UNLESS OTHERWISE STATED)
--------------------------------------------------------------------------------
1. ORGANIZATION AND DESCRIPTION OF BUSINESS:
Hartford Life and Annuity Insurance Company (the "Company") is a wholly owned
subsidiary of Hartford Life Insurance Company ("HLIC"), which is an indirect
subsidiary of Hartford Life, Inc. ("HLI"). HLI is indirectly majority owned by
The Hartford Financial Services Group, Inc. ("The Hartford"). On February 10,
1997, HLI filed a registration statement, as amended, with the Securities and
Exchange Commission relating to the initial public offering of HLI Class A
Common Stock (the "Offering"). Pursuant to the Offering on May 22, 1997, HLI
sold to the public 26 million shares, representing approximately 18.6% of the
equity ownership of HLI.
In 1998, the Company changed its name to Hartford Life and Annuity Insurance
Company from ITT Hartford Life and Annuity Insurance Company.
The Company offers a complete line of fixed and variable annuities, as well as
variable, universal and traditional individual life insurance.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
BASIS OF PRESENTATION
The accompanying statutory basis financial statements of the Company were
prepared in conformity with statutory accounting practices prescribed or
permitted by the National Association of Insurance Commissioners ("NAIC") and
the State of Connecticut Department of Insurance. Certain reclassifications have
been made to prior year financial information to conform to the current year
presentation.
Current prescribed statutory accounting practices include accounting
publications of the NAIC, as well as state laws, regulations and general
administrative rules. Permitted statutory accounting practices encompass
accounting practices approved by state insurance departments. The Company does
not follow any permitted statutory accounting practices that have a material
effect on statutory surplus, statutory net income or risk-based capital.
The preparation of financial statements in conformity with statutory accounting
principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reported periods. Actual results could
differ from those estimates. The most significant estimates include those used
in determining the liability for aggregate reserves for future benefits and the
liability for premium and other deposit funds. Although some variability is
inherent in these estimates, management believes the amounts provided are
adequate.
STATUTORY ACCOUNTING PRACTICES VERSUS GAAP
Statutory accounting practices and generally accepted accounting principles
("GAAP") differ in certain significant respects. These differences principally
involve:
(1) treatment of policy acquisition costs (commissions, underwriting and selling
expenses, etc.) which are charged to expense when incurred for statutory
purposes rather than on a pro-rata basis over the expected life and gross
profit stream of the policy for GAAP purposes;
(2) recognition of premium revenues, which for statutory purposes are generally
recorded as collected or when due during the premium paying period of the
contract and which for GAAP purposes, for universal life policies and
investment products, generally only consist of charges assessed to policy
account balances for cost of insurance, policy administration and
surrenders. When policy charges received relate to coverage or services to
be provided in the future, the charges are recognized as revenue on a
pro-rata basis over the expected life and gross profit stream of the policy.
Also, for GAAP purposes, premiums for traditional life insurance policies
are recognized as revenues when they are due from policyholders;
(3) development of liabilities for future policy benefits, which for statutory
purposes predominantly use interest rate and mortality assumptions
prescribed by the NAIC which may vary considerably from interest and
mortality assumptions used under GAAP;
(4) providing for income taxes based on current taxable income only for
statutory purposes, rather than establishing additional assets or
liabilities for deferred Federal income taxes to recognize the tax effect
related to reporting revenues and expenses in different periods for
financial reporting and tax return purposes or required under GAAP;
(5) excluding certain assets designated as non-admitted assets (e.g., negative
Interest Maintenance Reserve, and past due agents' balances) from the
balance sheet for statutory purposes by directly charging surplus;
(6) the calculation of post retirement benefits obligation which, for statutory
accounting, excludes non-vested employees whereas GAAP liabilities include a
provision for such employees; statutory and GAAP accounting permit either
immediate recognition of the liability or straight-line amortization of the
liability over a period not to exceed 20 years. For GAAP, The Hartford's
obligation was immediately recognized, whereas for statutory accounting, the
obligation is being recognized ratably over a 20 year period;
F-6
<PAGE>
(7) establishing a formula reserve for realized and unrealized losses due to
default and equity risk associated with certain invested assets (Asset
Valuation Reserve) for statutory purposes; as well as the deferral and
amortization of realized gains and losses, caused by changes in interest
rates during the period the asset is held, into income over the remaining
life to maturity of the asset sold (Interest Maintenance Reserve) for
statutory purposes; whereas on a GAAP basis, no such formula reserve is
required and realized gains and losses are recognized in the period the
asset is sold;
(8) the reporting of reserves and benefits net of reinsurance ceded for
statutory purposes; whereas on a GAAP basis, reserves are reported gross of
reinsurance with reserve credits presented as recoverable assets;
(9) the reporting of fixed maturities at amortized cost for statutory purposes,
whereas GAAP requires that fixed maturities be classified as
"held-to-maturity," "available-for-sale" or "trading," based on the
Company's intentions with respect to the ultimate disposition of the
security and its ability to affect those intentions. The Company's bonds
were classified on a GAAP basis as available-for-sale and accordingly, those
investments and common stocks were reflected at fair value with the
corresponding impact included as a separate component of Stockholder's
Equity; as well as the change in the basis of the Company's other invested
assets, which consist primarily of limited partnership investments, which is
recognized as income under GAAP and as a change in surplus under statutory
accounting; and
(10) statutory accounting calculates separate account liabilities using
prescribed actuarial methodologies, which approximate the market value of
separate account assets less applicable surrender charges. The separate
account surplus generated by these reserving methods is recorded as an
amount due to or from the separate account on the statutory basis balance
sheet, with changes reflected in the statutory basis results of operations.
On a GAAP basis, separate account assets and liabilities are held at fair
value.
As of and for the years ended December 31, the significant differences between
Statutory and GAAP basis net income and capital and surplus for the Company are
as follows:
<TABLE>
<CAPTION>
1999 1998 1997
<S> <C> <C> <C>
----------------------------------------
GAAP Net Income $ 75,654 $ 74,525 $ 58,050
Deferral and amortization of policy
acquisition costs, net (272,171) (331,882) (345,657)
Change in unearned revenue reserve (64,915) 23,118 4,058
Deferred taxes 57,833 2,476 47,092
Separate account expense allowance 214,388 259,287 282,818
Asset impairments and write-downs (17,250) 17,250 --
Benefit reserve adjustment 11,491 5,360 24,666
Gain on commutation of reinsurance
(Note 4) -- 52,026 --
Prepaid reinsurance premium (3,524) -- --
Statutory voluntary reserve (6,286) -- --
Other, net 29,207 466 3,015
----------------------------------------
STATUTORY NET INCOME $ 24,427 $ 102,626 $ 74,042
----------------------------------------
GAAP Stockholder's Equity $ 676,428 $ 648,097 $ 570,469
Deferred policy acquisition costs (1,887,824) (1,615,653) (1,283,771)
Unearned revenue reserve 95,965 160,951 134,789
Deferred taxes 122,105 68,936 64,522
Separate account expense allowance 1,398,030 1,183,642 924,355
Asset impairments and write-downs -- 17,250 --
Unrealized losses (gains) on
investments 26,292 (24,955) (21,451)
Benefit reserve adjustment 81,111 69,233 16,378
Asset valuation reserve (4,935) (21,782) (13,670)
Adjustment relating to Lyndon
contribution (Note 4) -- -- (23,671)
Prepaid reinsurance premium (7,728) (4,204) --
Statutory voluntary reserve (6,286) -- --
Other, net 29,718 (5,003) 3,850
----------------------------------------
STATUTORY CAPITAL AND SURPLUS $ 522,876 $ 476,512 $ 371,800
----------------------------------------
</TABLE>
F-7
<PAGE>
AGGREGATE RESERVES FOR FUTURE BENEFITS AND LIABILITY FOR PREMIUM AND OTHER
DEPOSIT FUNDS
Aggregate reserves for payment of future life, health and annuity benefits were
computed in accordance with applicable actuarial standards. Reserves for life
insurance policies are generally based on the 1958 and 1980 Commissioner's
Standard Ordinary Mortality Tables and various valuation rates ranging from 2.5%
to 6%. Accumulation and on-benefit annuity reserves are based principally on
individual annuity tables at various rates ranging from
2.5% to 8.75% and using the Commissioners Annuity Reserve Valuation Method
("CARVM").
The Company has established separate accounts to segregate the assets and
liabilities of certain life insurance and annuity contracts that must be
segregated from the Company's general assets under the terms of its contracts.
The assets consist primarily of marketable securities and are reported at market
value. Premiums, benefits and expenses of these contracts are reported in the
statutory basis statements of operations.
An analysis of Annuity Actuarial Reserves and Deposit Liabilities by Withdrawal
Characteristics as of December 31, 1999 (including general and separate account
liabilities) is as follows:
<TABLE>
<CAPTION>
% of
Amount Total
<S> <C> <C>
--------------------
Subject to discretionary withdrawal:
--------------------
With market value adjustment $ 4,564 0.0%
At book value less current surrender charge of 5% or more 1,427,302 3.2%
At market value 42,431,996 95.4%
--------------------
Total with adjustment or at market value 43,863,862 98.6%
At book value without adjustment (minimal or no charge or
adjustment): 573,583 1.3%
Not subject to discretionary withdrawal: 34,816 0.1%
--------------------
Total, gross 44,472,261 100.0%
Reinsurance ceded --
------------
Total, net $44,472,261
------------
</TABLE>
INVESTMENTS
Investments in bonds are carried at amortized cost. Bonds that are deemed
ineligible to be held at amortized cost by the NAIC Securities Valuation Office
("SVO") are carried at the appropriate SVO published value. When a reduction in
the value of a security is deemed to be unrecoverable, the decline in value is
reported as a realized loss and the carrying value is adjusted accordingly.
Short-term investments consist of money market funds and are stated at cost,
which approximates fair value. Common stocks are carried at fair value with the
current year change in the difference from cost reflected in surplus. Mortgage
loans, which are carried at cost and approximate fair value, include investments
in assets backed by mortgage loan pools. Other invested assets are generally
recorded at fair value.
The Asset Valuation Reserve ("AVR") is designed to provide a standardized
reserving process for realized and unrealized losses due to default and equity
risks associated with invested assets. The AVR balances were $4,935 and $21,782
as of December 31, 1999 and 1998, respectively. Additionally, the Interest
Maintenance Reserve ("IMR") captures net realized capital gains and losses, net
of applicable income taxes, resulting from changes in interest rates and
amortizes these gains or losses into income over the life of the bond or
mortgage sold. The IMR balance as of December 31, 1999 is an asset balance of
$981 and is reflected as a component of non-admitted assets in Unassigned Funds
in accordance with statutory accounting practices. The IMR balance as of
December 31, 1998 is a liability balance of $452 and is reflected as an other
liability. The net capital (losses) gains transferred to the IMR in 1999, 1998
and 1997 were $(1,255), $852 and $(719), respectively. The amount of income
(expense) amortized from the IMR in 1999, 1998 and 1997 included in the
Company's Statements of Operations, was $178, $(207), and $(85), respectively.
Realized capital gains and losses, net of taxes, not included in the IMR are
reported in the statutory basis statements of operations. Realized investment
gains and losses are determined on a specific identification basis.
CODIFICATION
The NAIC adopted the Codification of Statutory Accounting Principles in March
1998. The proposed effective date for this statutory accounting guidance is
January 1, 2001. It is expected that Connecticut, the Company's domiciliary
state, will adopt these accounting standards and, therefore, the Company will
make the necessary accounting and reporting changes required for implementation.
The Company has not yet determined the impact that these new accounting
standards will have on its statutory basis financial statements.
F-8
<PAGE>
3. INVESTMENTS:
(a) COMPONENTS OF NET INVESTMENT INCOME
<TABLE>
<CAPTION>
1999 1998 1997
<S> <C> <C> <C>
-----------------------------
Interest income from bonds and short-term investments $113,646 $123,370 $100,475
Interest income from policy loans 3,494 3,133 1,958
Interest and dividends from other investments 6,371 4,482 1,005
-----------------------------
Gross investment income 123,511 130,985 103,438
Less: investment expenses 1,189 1,003 1,153
-----------------------------
NET INVESTMENT INCOME $122,322 $129,982 $102,285
-----------------------------
</TABLE>
(b) COMPONENTS OF NET UNREALIZED CAPITAL (LOSSES) GAINS ON BONDS AND
SHORT-TERM INVESTMENTS
<TABLE>
<CAPTION>
1999 1998 1997
<S> <C> <C> <C>
-----------------------------
Gross unrealized capital gains $ 561 $ 10,905 $23,357
Gross unrealized capital losses (6,441) (833) (1,906)
-----------------------------
Net unrealized capital (losses) gains (5,880) 10,072 21,451
Balance, beginning of year 10,072 21,451 7,979
-----------------------------
CHANGE IN NET UNREALIZED CAPITAL (LOSSES) GAINS ON BONDS AND
SHORT-TERM INVESTMENTS $(15,952) $(11,379) $13,472
-----------------------------
</TABLE>
(c) COMPONENTS OF NET UNREALIZED CAPITAL GAINS (LOSSES) ON COMMON STOCKS
<TABLE>
<CAPTION>
1999 1998 1997
<S> <C> <C> <C>
--------------------------
Gross unrealized capital gains $2,508 $ 2,204 $ 537
Gross unrealized capital losses (24) (1,871) (1,820)
--------------------------
Net unrealized capital gains (losses) 2,484 333 (1,283)
Balance, beginning of year 333 (1,283) (3,447)
--------------------------
CHANGE IN NET UNREALIZED CAPITAL GAINS ON COMMON STOCKS $2,151 $ 1,616 $ 2,164
--------------------------
</TABLE>
(d) COMPONENTS OF NET REALIZED CAPITAL (LOSSES) GAINS
<TABLE>
<CAPTION>
1999 1998 1997
<S> <C> <C> <C>
--------------------------
Bonds and short-term investments $(37,959) $1,314 $ (120)
Common stocks 104 1,624 421
Other invested assets 172 (1) (307)
--------------------------
Realized capital (losses) gains (37,683) 2,937 (6)
Capital gains benefit -- -- (831)
--------------------------
Net realized capital (losses) gains (37,683) 2,937 825
Less: amounts transferred to the IMR (1,255) 852 (719)
--------------------------
NET REALIZED CAPITAL (LOSSES) GAINS $(36,428) $2,085 $1,544
--------------------------
</TABLE>
Sales and maturities of investments in bonds and short-term investments for the
years ended December 31, 1999, 1998 and 1997 resulted in proceeds of $1,367,027,
$1,354,563 and $1,435,820, gross realized capital gains of $1,106, $1,705, and
$964 and gross realized capital losses of $39,065, $391, and $1,084,
respectively, before transfers to the IMR. Sale of common stocks for the years
ended December 31, 1999, 1998 and 1997 resulted in proceeds of $939, $33,088,
and $10,168, gross realized capital gains of $115, $1,688, and $421 and gross
realized capital losses of $11, $64, and $0, respectively.
(e) DERIVATIVE INVESTMENTS
The Company had no significant derivative holdings as of December 31, 1999, 1998
or 1997.
(f) CONCENTRATION OF CREDIT RISK
Excluding U.S. government and government agency investments, the Company is not
exposed to any significant concentrations of credit risk in fixed maturities of
a single issuer greater than 10% of capital and surplus as of December 31, 1999.
F-9
<PAGE>
(g) BONDS, SHORT-TERM INVESTMENTS AND COMMON STOCKS
<TABLE>
<CAPTION>
1999
----------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
<S> <C> <C> <C> <C>
----------------------------------------------
U.S. government and government agencies and authorities:
-- Guaranteed and sponsored $ 4,768 $ 1 $ (37) $ 4,732
-- Guaranteed and sponsored -- asset backed 170,746 -- -- 170,746
States, municipalities and political subdivisions 10,401 -- (48) 10,353
International governments 7,351 94 (15) 7,430
Public utilities 18,413 92 (73) 18,432
All other corporate -- excluding asset-backed 592,233 374 (6,194) 586,413
All other corporate -- asset-backed 539,688 -- -- 539,688
Short-term investments 228,105 -- -- 228,105
Certificates of deposit 5,158 -- (74) 5,084
Parents, subsidiaries and affiliates 117,057 -- -- 117,057
----------------------------------------------
TOTAL BONDS AND SHORT-TERM INVESTMENTS $1,693,920 $561 $(6,441) $1,688,040
----------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
<S> <C> <C> <C> <C>
--------------------------------------------
Common stock -- unaffiliated $ 4,562 $1,105 $ (24) $ 5,643
Common stock -- affiliated 35,384 1,403 -- 36,787
--------------------------------------------
TOTAL COMMON STOCKS $39,946 $2,508 $ (24) $42,430
--------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
1998
----------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
<S> <C> <C> <C> <C>
----------------------------------------------
U.S. government and government agencies and authorities:
-- Guaranteed and sponsored $ 4,982 $ 35 $ (2) $ 5,015
-- Guaranteed and sponsored -- asset-backed 75,615 -- -- 75,615
States, municipalities and political subdivisions 10,402 415 -- 10,817
International governments 7,466 568 -- 8,034
Public utilities 94,475 1,330 (39) 95,766
All other corporate -- excluding asset-backed 607,679 8,473 (792) 615,360
All other corporate -- asset-backed 505,900 -- -- 505,900
Short-term investments 343,783 -- -- 343,783
Certificates of deposit 130,216 84 -- 130,300
Parents, subsidiaries and affiliates 117,057 -- -- 117,057
----------------------------------------------
TOTAL BONDS AND SHORT-TERM INVESTMENTS $1,897,575 $10,905 $(833) $1,907,647
----------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
<S> <C> <C> <C> <C>
--------------------------------------------
Common stock -- unaffiliated $ 4,933 $ 290 $ (50) $ 5,173
Common stock -- affiliated 35,384 1,914 (1,821) 35,477
--------------------------------------------
TOTAL COMMON STOCKS $40,317 $2,204 $(1,871) $40,650
--------------------------------------------
</TABLE>
The amortized cost and estimated fair value of bonds and short-term investments
as of December 31, 1999 by estimated maturity year are shown below. Asset-backed
securities, including mortgage-backed securities and collaterialized mortgage
obligations, are distributed to maturity year based on the Company's estimates
of the rate of
F-10
<PAGE>
future prepayments of principal over the remaining lives of the securities.
Expected maturities differ from contractual maturities due to call or prepayment
provisions.
<TABLE>
<CAPTION>
Amortized Estimated
Maturity Cost Fair Value
<S> <C> <C>
--------------------------
One year or less $ 545,290 $ 543,397
Over one year through five years 692,881 690,476
Over five years through ten years 370,835 369,548
Over ten years 84,914 84,619
--------------------------
TOTAL $1,693,920 $1,688,040
--------------------------
</TABLE>
Bonds with a carrying value of $10,457 were on deposit as of December 31, 1999
with various regulatory authorities as required.
(h) FAIR VALUE OF FINANCIAL INSTRUMENTS-BALANCE SHEET ITEMS (IN MILLIONS):
<TABLE>
<CAPTION>
1999 1998
-------------------------- --------------------------
Carrying Estimated Carrying Estimated
Amount Fair Value Amount Fair Value
<S> <C> <C> <C> <C>
------------------------------------------------------
ASSETS
Bonds and short-term investments $1,694 $1,688 $1,898 $1,908
Common stocks 42 42 41 41
Policy loans 59 59 47 47
Mortgage loans 64 64 60 60
Other invested assets 3 3 2 2
LIABILITIES
Deposit funds and other benefits $2,051 $2,017 $2,078 $2,053
</TABLE>
The following methods and assumptions were used to estimate the fair value of
each class of financial instruments: fair value of bonds, short-term
investments, common stock, and other invested assets approximate those
quotations published by the NAIC; policy loans and mortgage loans carrying
amounts approximates fair value; and fair value of liabilities on deposit funds
and other benefits is determined by forecasting future cash flows and
discounting the forecasted cash flows at current market rates.
4. REINSURANCE:
The Company cedes insurance to other insurers in order to limit its maximum
losses. Such transfer does not relieve the Company of its primary liability to
the policyholder. Failure of reinsurers to honor their obligations could result
in losses to the Company. The Company reduces this risk by evaluating the
financial condition of reinsurers and monitoring for possible concentrations of
credit risk.
The Company cedes significant portions of its variable annuity business written
since 1994 to RGA Reinsurance Company ("RGA"). Certain core annuity products
were excluded from this reinsurance arrangement beginning in the second quarter
of 1999 and, as such, the amounts ceded to RGA have declined significantly.
In 1995, The Hartford was "spun-off" from ITT Industries, Inc. and became its
own, autonomous entity. In conjunction with this spin-off, the assets and
liabilities of Lyndon Insurance Company (Lyndon) were merged into the Company.
The statutory net assets contributed to the Company as a result of this
transaction were approximately $112 million and were reflected as an increase in
Gross Paid-In and Contributed Surplus at December 31, 1995. This amount was
approximately $41 million lower than the value of net assets contributed on a
GAAP basis.
The majority of the business written in Lyndon was assumed from an unaffiliated
insurer. In 1998, this unaffiliated insurer recaptured the inforce blocks of
business it had been ceding to the Company through Lyndon. In conjunction with
this commutation transaction, the Company transferred statutory basis reserves
of $26,404. Additionally, the Company received fair value consideration for the
bonds it transferred which exceeded the statutory statement value of these
assets by $25,622. As a result of this activity, the Company recognized a
pre-tax gain from this transaction of $52,026 in its 1998 Statements of
Operations.
There were no material reinsurance recoverables from reinsurers outstanding as
of and for the years ended, December 31, 1999 and 1998.
F-11
<PAGE>
The effect of reinsurance as of and for the years ended December 31, is
summarized as follows:
<TABLE>
<CAPTION>
1999 Direct Assumed Ceded Net
<S> <C> <C> <C> <C>
------------------------------------------------------
Aggregate Reserves for Future
Benefits $ 784,502 $ 53 $ (192,934) $ 591,621
Policy and Contract Claim
Liabilities $ 7,827 $ 203 $ (353) $ 7,677
Premium and Annuity Considerations $ 674,219 $ 1,261 $ (53,691) $ 621,789
Annuity and Other Fund Deposits $6,195,917 $ -- $(3,204,554) $2,991,363
Death, Annuity, Disability and
Other Benefits $ 65,251 $ 1,104 $ (12,713) $ 53,642
Surrenders $2,541,449 $ -- $(1,290,636) $1,250,813
</TABLE>
<TABLE>
<CAPTION>
1998 Direct Assumed Ceded Net
<S> <C> <C> <C> <C>
------------------------------------------------------
Aggregate Reserves for Future
Benefits $ 713,375 $ 50 $ (134,285) $ 579,140
Policy and Contract Claim
Liabilities $ 5,895 $ 85 $ (313) $ 5,667
Premium and Annuity Considerations $ 483,328 $24,954 $ (38,939) $ 469,343
Annuity and Other Fund Deposits $6,461,470 $ -- $(4,410,219) $2,051,251
Death, Annuity, Disability and
Other Benefits $ 64,331 $ 1,574 $ (16,401) $ 49,504
Surrenders $1,481,797 $ -- $ (742,134) $ 739,663
</TABLE>
<TABLE>
<CAPTION>
1997 Direct Assumed Ceded Net
<S> <C> <C> <C> <C>
------------------------------------------------------
Premium and Annuity Considerations $ 266,427 $51,630 $ (21,412) $ 296,645
Annuity and Other Fund Deposits $6,515,347 $ -- $(4,534,101) $1,981,246
Death, Annuity, Disability and
Other Benefits $ 79,779 $ 839 $ (7,126) $ 73,492
Surrenders $ 882,094 $ -- $ (427,677) $ 454,417
</TABLE>
5. RELATED PARTY TRANSACTIONS:
Transactions between the Company and its affiliates, relate principally to tax
settlements, reinsurance, insurance coverages, rental and service fees, capital
contributions and payments of dividends. In addition, certain affiliated
insurance companies purchased group annuity contracts from the Company to fund
pension costs and claim annuities to settle casualty claims. Substantially all
general insurance expenses related to the Company, including rent and benefit
plan expenses, are initially paid by The Hartford. Direct expenses are allocated
using specific identification and indirect expenses are allocated using other
applicable methods. Indirect expenses include those for corporate areas which,
depending on type, are allocated based on either a percentage of direct expenses
or on utilization.
The Company has also invested in bonds of its affiliates, Hartford Financial
Services Corporation and HL Investment Advisors, Inc., and common stock of its
subsidiary, Hartford Life, LTD.
For additional information, see Notes 4, 6, and 8.
6. FEDERAL INCOME TAXES:
The Company and The Hartford have entered into a tax sharing agreement under
which each member in the consolidated U.S. Federal income tax return will make
payments between them such that, with respect to any period, the amount of taxes
to be paid by the Company, subject to certain adjustments, generally will be
determined as though the Company were filing separate Federal, state and local
income tax returns.
As long as The Hartford continues to own at least 80% of the combined voting
power and 80% of the value of the outstanding capital stock of HLI, the Company
will be included for Federal income tax purposes in the affiliated group of
which The Hartford is the common parent. The Hartford and its non-life
subsidiaries filed a single consolidated Federal income tax return for 1998 and
1997 and intend to file a separate consolidated Federal income tax return for
1999. The life insurance companies filed a separate consolidated Federal income
tax return for 1998 and 1997 and intend to file a separate consolidated Federal
income tax return for 1999. Federal income taxes (received) paid by the Company
for operations and capital gains (losses) were $(8,815), $25,780, and $(14,499)
in 1999, 1998 and 1997, respectively. The effective tax rate was (73)%, 27%, and
(28)% in 1999, 1998 and 1997, respectively.
F-12
<PAGE>
The following schedule provides a reconciliation of the tax provision (including
realized capital gains(losses)) at the U.S. Federal Statutory rate to Federal
income tax (benefit) expense (in millions):
<TABLE>
<CAPTION>
1999 1998 1997
<S> <C> <C> <C>
------------------
Tax provision at U.S. Federal Statutory rate $ 5 $48 $ 20
Tax deferred acquisition costs 31 25 25
Statutory to tax reserve differences (7) 8 1
Investments (31) (60) (61)
Other (8) 15 (1)
------------------
FEDERAL INCOME TAX (BENEFIT) EXPENSE $(10) $36 $(16)
------------------
</TABLE>
7. CAPITAL AND SURPLUS AND SHAREHOLDER DIVIDEND RESTRICTIONS:
The maximum amount of dividends which can be paid to shareholders by Connecticut
domiciled insurance companies, without prior approval, is generally restricted
to the greater of 10% of surplus as of the preceding December 31st or the net
gain from operations for the previous year. Dividends are paid as determined by
the Board of Directors and are not cumulative. No dividends were paid in 1999,
1998 or 1997. The amount available for dividend in 2000 is approximately
$60,855.
8. PENSION, RETIREMENT, AND OTHER POST-RETIREMENT AND POST-EMPLOYMENT BENEFITS:
All employees that work for The Hartford's life insurance companies are included
in The Hartford's non-contributory defined benefit pension plans. These plans
provide pension benefits that are based on years of service and the employee's
compensation during the last ten years of employment. The Hartford's funding
policy is to contribute annually an amount between the minimum funding
requirements set forth in the Employee Retirement Income Security Act of 1974,
as amended, and the maximum amount that can be deducted for U.S. Federal income
tax purposes. Generally, pension costs are funded through the purchase of group
pension contracts sold by affiliates. The costs that were allocated to the
Company for pension related expenses were $762, $1,045 and $840 for 1999, 1998
and 1997, respectively.
Employees of The Hartford's life insurance companies are also provided, through
The Hartford, certain health care and life insurance benefits for eligible
retired employees. The contribution for health care benefits depends on the
retiree's date of retirement and years of service. In addition, this benefit
plan has a defined dollar cap, which limits average company contributions. The
Hartford has prefunded a portion of the health care and life insurance
obligations through trust funds where such prefunding can be accomplished on a
tax effective basis. Postretirement health care and life insurance benefits
expense allocated to the Company was not material to the results of operations
for 1999, 1998 or 1997.
The assumed rate in the per capita cost of health care (the health care trend
rate) was 7.1% for 1999, decreasing ratably to 5.0% in the year 2003. Increasing
the health care trend rates by one percent per year would have an immaterial
impact on the accumulated postretirement benefit obligation and the annual
expense. To the extent that the actual experience differs from the inherent
assumptions, the effect will be amortized over the average future service of
covered employees.
Substantially all of The Hartford's life insurance companies' employees are
eligible to participate in The Hartford's Investment and Savings Plan. Under
this plan, designated contributions, which may be invested in Class A Common
Stock of HLI or certain other investments, are matched to a limit of 3% of
compensation.
9. SEPARATE ACCOUNTS:
The Company maintains separate account assets totaling $44.9 billion and $32.9
billion as of December 31, 1999 and 1998, respectively. Separate account assets
are segregated from other investments and reported at fair value. Separate
account liabilities are determined in accordance with prescribed actuarial
methodologies, which approximate the market value less applicable surrender
charges. The resulting surplus is recorded in the general account statement of
operations as a component of Net Transfers to Separate Accounts. The Company's
separate accounts are non-guaranteed, wherein the policyholder assumes
substantially all the investment risk and rewards. Investment income (including
investment gains and losses) and interest credited to policyholders on separate
account assets are not separately reflected in the statutory statements of
operations.
Separate account management fees, net of minimum guarantees, were $493 million,
$363 million, and $252 million in 1999, 1998 and 1997, respectively, and are
recorded as a component of fee income on the Company's statutory basis
Statements of Operations.
F-13
<PAGE>
10. COMMITMENTS AND CONTINGENT LIABILITIES:
(a) LITIGATION
The Company is involved in pending and threatened litigation in the normal
course of its business in which claims for alleged economic and punitive damages
have been asserted. Some of these cases have been filed as purported class
actions and some cases have been filed in certain jurisdictions that permit
punitive damage awards disproportionate to the actual damages incurred. Although
there can be no assurances, at the present time, the Company does not anticipate
that the ultimate liability, arising from such pending or threatened litigation,
will have a material adverse effect on the statutory capital and surplus of the
Company.
(b) GUARANTY FUNDS
Under insurance guaranty fund laws in each state, the District of Columbia and
Puerto Rico, insurers licensed to do business can be assessed by state insurance
guaranty associations for certain obligations of insolvent insurance companies
to policyholders and claimants. Recent regulatory actions against certain large
life insurers encountering financial difficulty have prompted various state
insurance guaranty associations to begin assessing life insurance companies for
the deemed losses. Most of these laws do provide, however, that an assessment
may be excused or deferred if it would threaten an insurer's solvency and
further provide annual limits on such assessments. Part of the assessments paid
by the Company pursuant to these laws may be used as credits for a portion of
the associated premium taxes. The Company paid guaranty fund assessments of
approximately $523, $1,043 and $1,544 in 1999, 1998, and 1997, respectively, of
which $318, $995, and $548 in 1999, 1998 and 1997, respectively were estimated
to be creditable against premium taxes.
(c) TAX MATTERS
The Company's Federal income tax returns are routinely audited by the Internal
Revenue Service ("IRS"). The Company's 1997 and 1996 Federal income tax returns
are currently under audit by the IRS. As of March 31, 2000, the audit was in its
initial stage and no material issues had been raised.
F-14
<PAGE>
PART C
<PAGE>
OTHER INFORMATION
Item 27. Exhibits
(a) Resolution of the Board of Directors of Hartford Life and
Annuity Insurance Company ("Hartford") authorizing the
establishment of the Separate Account.(1)
(b) Not Applicable.
(c) Principal Underwriting Agreement.(2)
(d) Form of Flexible Premium Variable Life Insurance Policy.(3)
(e) Form of Application for Flexible Premium Variable Life
Insurance Policies.(3)
(f) Certificate of Incorporation of Hartford2 and Bylaws of
Hartford.(2)
(g) Contracts of Reinsurance.(3)
(h) Form of Participation Agreement.(3)
(i) Not Applicable.
(j) Not Applicable.
(k) Opinion and consent of Christine Hayer Repasy, Senior Vice
President, General Counsel and Corporate Secretary.
(l) Opinion and Consent of Thomas P. Kalmbach, FSA., MAAA.
(m) Not Applicable.
(n) Consent of Arthur Andersen LLP, Independent Public
Accountants.
(o) The financial statements are incorporated by reference.(7)
(p) Not Applicable.
(q) Memorandum describing transfer and redemption procedures.(1)
(r) Power of Attorney.
(s) Organizational Chart.
--------------------
(1) Incorporated by reference to Pre-Effective Amendment No. 1 to the
Registration Statement on Form S-6, File No. 33-61267, of Hartford Life
and Annuity Insurance Company filed with the Securities and Exchange
Commission on January 23, 1996.
(2) Incorporated by reference to Pre-Effective Amendment No. 3 to the
Registration Statement on Form S-6, File No. 33-61267, of Hartford Life
and Annuity Insurance Company filed with the Securities and Exchange
Commission on August 28, 1996.
(3) Incorporated by reference to the Initial filing to the Registration
Statement on Form S-6, File No. 333-83057, on July 16, 1999
(4) Incorporated by reference to the Pre-Effective Amendement No. 1 to the
Registration Statement on Form S-6, file No. 333-83057, on October 22, 1999
Item 28. Officers and Directors.
---------------------------------------------------------------------------
NAME POSITION WITH HARTFORD
---------------------------------------------------------------------------
David A. Carlson Vice President
---------------------------------------------------------------------------
Peter W. Cummins Senior Vice President
---------------------------------------------------------------------------
Bruce W. Ferris Vice President
---------------------------------------------------------------------------
Timothy M. Fitch Vice President & Actuary
---------------------------------------------------------------------------
Mary Jane B. Fortin Vice President & Chief Accounting Officer
---------------------------------------------------------------------------
David T. Foy Senior Vice President, Chief Financial Officer and
Treasurer, Director*
---------------------------------------------------------------------------
Lois W. Grady Senior Vice President
---------------------------------------------------------------------------
Stephen T. Joyce Senior Vice President
---------------------------------------------------------------------------
Michael D. Keeler Vice President
---------------------------------------------------------------------------
Robert A. Kerzner Senior Vice President
---------------------------------------------------------------------------
Thomas M. Marra President, Director*
---------------------------------------------------------------------------
Steven L. Matthiesen Vice President & Actuary
---------------------------------------------------------------------------
Deanne Osgood Vice President
---------------------------------------------------------------------------
Craig R. Raymond Senior Vice President and Chief Actuary
---------------------------------------------------------------------------
Christine Hayer Repasy Senior Vice President, General Counsel, and
Corporate Secretary, Director*
---------------------------------------------------------------------------
Lowndes A. Smith Chairman of the Board, Chief Executive Officer,
Director*
---------------------------------------------------------------------------
Joe M. Thomson Senior Vice President
---------------------------------------------------------------------------
John C. Walters Executive Vice President, Director*
---------------------------------------------------------------------------
David M. Znamierowski Senior Vice President and Chief Investment
Officer, Director*
---------------------------------------------------------------------------
Unless otherwise indicated, the principal business address of each of the above
individuals is P.O. Box 2999, Hartford, CT 06104-2999.
* Denotes Board of Directors of Hartford.
<PAGE>
Item 29. Persons Controlled By or Under Common Control with the Depositor or
Registrant
Filed herewith as Exhibit 1.7.
Item 30: Indemnification
Sections 33-770 to 33-778, inclusive, of the Connecticut General
Statutes ("CGS") provide that a corporation may provide
indemnification of or advance expenses to a director, officer,
employee or agent. Reference is hereby made to Section 33-771(e) of
CGS regarding indemnification of directors and Section 33-776(d) of
CGS regarding indemnification of officers, employees and agents of
Connecticut corporations. These statutes provide, in general, that
Connecticut corporations incorporated prior to January 1, 1997
shall, except to the extent that their certificate of incorporation
expressly provides otherwise, indemnify their directors, officers,
employees and agents against "liability" (defined as the obligation
to pay a judgment, settlement, penalty, fine, including an excise
tax assessed with respect to an employee benefit plan, or
reasonable expenses incurred with respect to a proceeding) when (1)
a determination is made pursuant to Section 33-775 that the party
seeking indemnification has met the standard of conduct set forth
in Section 33-771 or (2) a court has determined that
indemnification is appropriate pursuant to Section 33-774. Under
Section 33-775, the determination of and the authorization for
indemnification are made (a) by the disinterested directors, as
defined in Section 33-770(3); (b) by special counsel; (c) by the
shareholders; or (d) in the case of indemnification of an officer,
agent or employee of the corporation, by the general counsel of the
corporation or such other officer(s) as the board of directors may
specify. Also, Section 33-772 provides that a corporation shall
indemnify an individual who was wholly successful on the merits or
otherwise against reasonable expenses incurred by him in connection
with a proceeding to which he was a party because he was a director
of the corporation. In the case of a proceeding by or in the right
of the corporation or with respect to conduct for which the
director, officer, agent or employee was adjudged liable on the
basis that he received a financial benefit to which he was not
entitled, indemnification is limited to reasonable expenses
incurred in connection with the proceeding against the corporation
to which the individual was named a party.
Under the Depositor's bylaws, the Depositor must indemnify both
directors and
<PAGE>
officers of the Depositor for (1) any claims and liabilities to
which they become subject by reason of being or having been
directors or officers of the Depositor and (2) legal and other
expenses incurred in defending against such claims, in each case,
to the extent such is consistent with statutory provisions.
Section 33-777 of CGS specifically authorizes a corporation to
procure indemnification insurance on behalf of an individual who
was a director, officer, employer or agent of the corporation.
Consistent with the statute, the directors and officers of the
Depositor and Hartford Equity Sales Company, Inc. ("HESCO") are
covered under a directors and officers liability insurance policy
issued to The Hartford Financial Services Group, Inc. and its
subsidiaries.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the Registrant pursuant to the foregoing
provisions, or otherwise, the Registrant has been advised that in
the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the Registrant of expenses incurred or paid by a director, officer
or controlling person of the Registrant in the successful defense
of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the Registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Item 31. Principal Underwriters
(a) HESCO acts as principal underwriter for the following
investment companies:
Hartford Life Insurance Company - Separate Account VL I
Hartford Life Insurance Company - Separate Account VL II
Hartford Life Insurance Company - ICMG Secular Trust Separate
Account
Hartford Life Insurance Company - ICMG Registered Variable
Life Separate Account A
Hartford Life and Annuity Insurance Company - Separate
Account VL I
Hartford Life and Annuity Insurance Company - Separate
Account VL II
Hartford Life and Annuity Insurance Company - ICMG Registered
Variable Life Separate Account One
(b) Directors and Officers of HESCO
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND OFFICES
NAME WITH UNDERWRITER
---- ---------------------
<S> <C>
David A. Carlson Vice President
Peter W. Cummins Senior Vice President
David T. Foy Treasurer
J. Richard Garrett Vice President
Christine Hayer Repasy Senior Vice President, General Counsel and
Corporate Secretary, Director
George R. Jay Controller
Robert A. Kerzner Executive Vice President, Director
Joseph F. Mahoney Executive Vice President
Thomas M. Marra President, Director
Lowndes A. Smith Chief Executive Officer
John C. Walters Executive Vice President
</TABLE>
Unless otherwise indicated, the principal business address of each the above
individuals is P.O. Box 2999, Hartford, CT 06104-2999.
Item 32. Location of Accounts and Records
All of the accounts, books, records or other documents required to
be kept by Section 31(a) of the Investment Company Act of 1940 and
rules thereunder, are maintained by Hartford at 200 Hopmeadow
Street, Simsbury, Connecticut 06089.
Item 33. Management Services
All management contracts are discussed in Part A and Part B of the Registration
Statement dated November 1, 1999 and filed with the Commission on October 22,
1999.
Item 34. Representation of Reasonableness of Fees
Hartford hereby represents that the aggregate fees and charges under the Policy
are reasonable in relation to the services rendered, the expenses expected to be
incurred, and the risks assumed by Hartford.
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Act and the Investment Company
Act, the Registrant certifies that it meets all of the requirements for
effectiveness of this Registration Statement pursuant to Rule 485(b) under the
Securities Act and has duly caused this registration statement to be signed on
its behalf by the undersigned, duly authorized, in the Town of Simsbury, and
State of Connecticut on the day of December 4, 2000.
HARTFORD LIFE AND ANNUITY INSURANCE
COMPANY SEPARATE ACCOUNT VL I
(Registrant)
*By: David T. Foy *By: /s/ Christopher M. Grinnell
--------------------------- ---------------------------
David T. Foy, Senior Christopher M. Grinnell
Vice President and Treasurer Attorney-In-Fact
HARTFORD LIFE AND ANNUITY INSURANCE
COMPANY
(Depositor)
*By: David T. Foy
----------------------------
David T. Foy, Senior
Vice President and Treasurer
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed by the following persons and in the capacities and on
the dates indicated.
David T. Foy, Senior Vice President, Chief
Financial Officer and Treasurer, Director*
Christine Hayer Repasy, Senior Vice President,
General Counsel and Corporate Secretary, *By: /s/ Christopher M. Grinnell
Director* ---------------------------
Thomas M. Marra, President, Director* Christopher M. Grinnell
Lowndes A. Smith, Chairman of the Board, Attorney-in-Fact
Chief Executive Officer, Director*
John C. Walters, Executive Vice President, Date: December 4, 2000
Director*
David M. Znamierowski, Senior Vice President
and Chief Investment Officer, Director*
<PAGE>
EXHIBIT INDEX
1.3 Opinion and Consent of Christine Hayer Repasy, Senior Vice
President, General Counsel and Corporate Secretary.
1.4 Consent of Thomas P. Kalmbach, FSA, MAAA.
1.5 Consent of Arthur Andersen LLP, Independent Public Accountants.
1.6 Power of Attorney.
1.7 Organizational Chart.
