<PAGE>
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
Effective January 15, 2001 the following changes apply:
The following Sub-Accounts are added in alphabetical order to the cover page of
the prospectus:
- 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 SUB-ACCOUNT Class 2 of the
Global Small Capitalization Fund of 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.
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 among 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>
HV-2852
333-93391 1 of 9
<PAGE>
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>
HV-2852 2 of 9
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
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 3 of 9
<PAGE>
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.
HV-2852 4 of 9
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
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.
HV-2852 5 of 9
<PAGE>
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.
HV-2852 6 of 9
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
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.
HV-2852 7 of 9
<PAGE>
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.
HV-2852 8 of 9
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
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.
HV-2852 9 of 9
<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>
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
