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OMNISOURCE -SM-
GROUP FLEXIBLE PREMIUM VARIABLE LIFE
INSURANCE POLICIES
HARTFORD LIFE INSURANCE COMPANY
P.O. BOX 2999
HARTFORD, CONNECTICUT 06104-2999
[LOGO] TELEPHONE: 1-800-861-1408
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This Prospectus describes a group flexible premium variable life insurance
policy (the "Group Policies," and each individually a "Group Policy") and
certificates of insurance (the "Certificates," and each individually a
"Certificate") offered by Hartford Life Insurance Company ("Hartford"). The
Certificates are designed to provide lifetime insurance coverage to the
Insured(s) named in the Certificates, and maximum flexibility in connection with
premium payments and the Death Benefit, together with an opportunity to
participate in the investment experience of ICMG Registered Variable Life
Separate Account A. For a given amount of Death Benefit chosen, the Owner has
considerable flexibility in selecting the timing and amount of premium payments.
In addition to the Initial Premium payment, additional premium payments are also
allowed.
Group Policies may be issued to a Participating Employer or to a trust that is
adopted by a Participating Employer. Eligible employees of Participating
Employers may own Certificates issued under their respective Participating
Employer's Group Policy. The Owners possess all rights and interests under the
Group Policy. The Owners are provided with the Certificates, which describe each
Owner's rights, benefits, and options under the Group Policy.
Sales agents can provide prospective purchasers with individualized sales
illustrations which reflect all the fees and charges associated with the
Certificate options selected.
The Certificates provide for a Death Benefit, pursuant to which Death Proceeds
are payable at the Insured's death. You may select one of two Death Benefit
options. Death Benefit Option A is an amount equal to the larger of (1) the Face
Amount and (2) the Variable Insurance Amount. Death Benefit Option B is an
amount equal to the larger of (1) the Face Amount plus the Cash Value and (2)
the Variable Insurance Amount. The Death Proceeds payable to the Beneficiary
equal the Death Benefit less any Debt outstanding under the Certificate plus any
rider benefits payable.
The Investment Value of a Certificate will also vary up or down to reflect the
investment experience of the Investment Divisions to which Net Premiums have
been allocated. The Owner bears the investment risk for all amounts so
allocated.
The Portfolios underlying the Investment Divisions presently are: shares of
Class IA of the Hartford Capital Appreciation HLS Fund, Inc. ("Hartford Capital
Appreciation Fund"), shares of Class IA of the Hartford Bond HLS Fund, Inc.
("Hartford Bond Fund") and shares of Class IA of the Hartford Money Market HLS
Fund, Inc. ("Hartford Money Market Fund"), the Limited Maturity Bond Portfolio,
the Balanced Portfolio and the Partners Portfolio of Neuberger & Berman Advisers
Management Trust; the VIP High Income Portfolio, the VIP Equity-Income Portfolio
and the VIP Overseas Portfolio of Variable Insurance Products Fund; the VIP II
Asset Manager Portfolio of Variable Insurance Products Fund II; the Alger
American Small Capitalization Portfolio and the Alger American Growth Portfolio
of The Alger American Fund; the J.P. Morgan Bond Portfolio, the J.P. Morgan
Equity Portfolio, the J.P. Morgan Small Company Portfolio and the J.P. Morgan
International Equity Portfolio of J.P. Morgan Series Trust II; the Fixed Income
Portfolio, the High Yield Portfolio, the Equity Growth Portfolio, the Value
Portfolio, the Global Equity Portfolio and the Emerging Markets Equity Portfolio
of Morgan Stanley Universal Funds, Inc.; and the EAFE-Registered Trademark-
Equity Index Fund, Equity 500 Index Fund and the Small Cap Index Fund of the BT
Insurance Funds Trust.
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IT MAY NOT BE ADVANTAGEOUS TO PURCHASE FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
AS A REPLACEMENT FOR YOUR CURRENT LIFE INSURANCE OR IF YOU ALREADY OWN A
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY.
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THIS PROSPECTUS IS VALID ONLY IF ACCOMPANIED BY THE CURRENT PROSPECTUSES OF THE
AVAILABLE UNDERLYING FUNDS WHICH CONTAIN A FULL DESCRIPTION OF THOSE FUNDS. ALL
PROSPECTUSES SHOULD BE READ AND RETAINED FOR FUTURE REFERENCE.
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THIS PROSPECTUS AND OTHER INFORMATION ABOUT THE SEPARATE ACCOUNT REQUIRED TO BE
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CAN BE FOUND AT THE
COMMISSION'S WEB SITE (HTTP://WWW.SEC.GOV).
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
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THE DATE OF THIS PROSPECTUS IS DECEMBER 21, 1998.
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2 HARTFORD LIFE INSURANCE COMPANY
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TABLE OF CONTENTS
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SPECIAL TERMS......................................................... 4
SUMMARY............................................................... 6
HARTFORD.............................................................. 9
THE SEPARATE ACCOUNT.................................................. 9
THE FUNDS............................................................. 10
General............................................................. 10
Hartford Funds.................................................... 10
Neuberger & Berman Advisers Management Trust...................... 10
Variable Insurance Products Fund and Variable Insurance Products
Fund II.......................................................... 11
The Alger American Fund........................................... 11
J.P. Morgan Series Trust II....................................... 11
Morgan Stanley Universal Funds, Inc............................... 11
BT Insurance Funds Trust.......................................... 11
The Portfolios...................................................... 12
DETAILED DESCRIPTION OF CERTIFICATE BENEFITS AND PROVISIONS........... 14
General............................................................. 14
Issuance of a Certificate........................................... 14
Premiums............................................................ 14
Premium Payment Flexibility....................................... 14
Allocation of Premium Payments.................................... 15
Accumulation Units................................................ 15
Accumulation Unit Values.......................................... 15
Premium Limitation................................................ 15
Values Under the Certificate........................................ 16
Surrender of the Certificate........................................ 16
Partial Withdrawals............................................... 16
Transfers Among Investment Divisions................................ 16
Amount and Frequency of Transfers................................. 16
Transfers to or from Investment Divisions......................... 16
Asset Rebalancing................................................. 17
Procedures for Telephone Transfers................................ 17
Valuation of Payments and Transfers................................. 17
Processing of Transactions........................................ 17
Loans............................................................... 17
Loan Interest..................................................... 17
Credited Interest................................................. 18
Loan Repayments................................................... 18
Termination Due to Excessive Debt................................. 18
Effect of Loans on Investment Value............................... 18
Death Benefit....................................................... 18
Minimum Death Benefit Testing Procedures.......................... 18
Death Benefit Options............................................. 18
Option Change..................................................... 18
Payment Options................................................... 19
Legal Developments Regarding Income Payments...................... 19
Beneficiary....................................................... 19
Increases and Decreases in Face Amount............................ 19
Benefits at Maturity................................................ 20
Termination of Participation in the Group Policy.................... 20
Lapse and Reinstatement While the Group Policy Is In Effect......... 20
Lapse and Grace Period............................................ 20
Reinstatement..................................................... 20
Enrollment for a Certificate........................................ 20
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HARTFORD LIFE INSURANCE COMPANY 3
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The Right to Examine the Certificate................................ 20
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Deductions from Premium............................................. 21
Front-End Sales Load.............................................. 21
Premium Related Tax Charge........................................ 21
DAC Tax Charge.................................................... 21
Deductions and Charges from Investment Value........................ 21
Monthly Deduction Amount.......................................... 21
Mortality and Expense Risk Charge................................... 22
Taxes............................................................... 22
OTHER MATTERS......................................................... 22
Additions, Deletions or Substitutions of Investments................ 22
Voting Rights....................................................... 23
Our Rights.......................................................... 23
Statements to Owners................................................ 23
Limit on Right to Contest........................................... 24
Misstatement as to Age or Sex....................................... 24
Assignment.......................................................... 24
Dividends........................................................... 24
Experience Credits.................................................. 24
SUPPLEMENTAL BENEFITS................................................. 24
Maturity Date Extension Rider....................................... 24
EXECUTIVE OFFICERS AND DIRECTORS...................................... 24
DISTRIBUTION OF THE GROUP POLICY...................................... 29
SAFEKEEPING OF THE SEPARATE ACCOUNT ASSETS............................ 29
FEDERAL TAX CONSIDERATIONS............................................ 30
General............................................................. 30
Taxation of Hartford and the Separate Account....................... 30
Income Taxation of Certificate Benefits............................. 30
Modified Endowment Contracts........................................ 30
Diversification Requirements........................................ 31
Federal Income Tax Withholding...................................... 31
Other Tax Considerations............................................ 31
PERFORMANCE RELATED INFORMATION....................................... 31
LEGAL PROCEEDINGS..................................................... 32
YEAR 2000............................................................. 32
EXPERTS............................................................... 33
REGISTRATION STATEMENT................................................ 33
FINANCIAL STATEMENTS.................................................. 33
APPENDIX A -- ILLUSTRATIONS OF DEATH BENEFIT, CASH VALUE AND CASH
SURRENDER VALUE..................................................... 34
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS.............................. 57
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THE GROUP POLICIES MAY NOT BE AVAILABLE IN ALL STATES.
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH
SUCH OFFERING MAY NOT BE LAWFULLY MADE. NO DEALER OR OTHER PERSON IS AUTHORIZED
TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS IN CONNECTION WITH THIS
OFFERING OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND, IF GIVEN OR MADE,
SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED ON.
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4 HARTFORD LIFE INSURANCE COMPANY
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SPECIAL TERMS
As used in this Prospectus, the following terms have the indicated meanings:
ACCUMULATION UNIT: An accounting unit of measure used to calculate the value of
an Investment Division.
ADJUSTABLE LOAN INTEREST RATE: The interest rate charged on Loans that is
adjusted from time to time by Hartford. The method of calculation of the
Adjustable Loan Interest Rate is described later in this Prospectus.
ATTAINED AGE: The Issue Age plus the period since the Coverage Date.
BENEFICIARY: The person so designated by the Owner in the Certificate.
CASH SURRENDER VALUE: The Cash Value, less Debt, less any charges accrued but
not yet deducted.
CASH VALUE: The Investment Value plus the Loan Account Value.
CERTIFICATE: The form evidencing and describing the Owner's rights, benefits,
and options under the Group Policy. The Certificate will describe, among other
things, (i) the benefits payable upon the death of the named Insured, (ii) to
whom the benefits are payable and (iii) the limits and other terms of the Group
Policy as they pertain to the Insured.
CERTIFICATE ANNIVERSARY: An anniversary of the Coverage Date.
CHARGE DEDUCTION DIVISION: An Investment Division from which all charges are
deducted if so designated in the Enrollment Form or later elected.
CODE: The Internal Revenue Code of 1986, as amended.
COVERAGE DATE: The date insurance under the Certificate is effective as to an
Insured and from which Coverage Months and Coverage Years are determined.
COVERAGE MONTH(S): The 1-month period and each successive 1-month period
following the Coverage Date.
COVERAGE YEAR(S): The 12-month period and each successive 12-month period
following the Coverage Date.
CUSTOMER SERVICE CENTER: The service area of Hartford Life Insurance Company.
DEATH BENEFIT: The Death Benefit option in effect determines how the Death
Benefit is calculated. The two Death Benefit options are described under
"Detailed Description of Certificate Benefits and Provisions -- Death Benefit."
DEATH PROCEEDS: The Death Benefit less outstanding Debt plus any rider benefits
payable.
DEBT: The aggregate amount of outstanding Loans, plus any interest accrued at
the Adjustable Loan Interest Rate.
ENROLLMENT FORM: The form required to be filled out prior to issuance of a
Certificate. The specific form used will depend on the underwriting
classification and plan design.
FACE AMOUNT: The minimum Death Benefit as long as the Certificate is in force.
It is specified at issue and may be changed after issue on request, or due to a
change in Death Benefit option or a partial withdrawal.
FUNDS: The registered open-end management investment companies in which assets
of the Investment Divisions of the Separate Account may be invested. Currently,
the Funds include: (i) Hartford Capital Appreciation Fund; (ii) Hartford Bond
Fund; (iii) Hartford Money Market Fund ((i)-(iii) are each a "Hartford Fund" and
collectively the "Hartford Funds" and are managed by HL Investment Advisors,
Inc. ("HL Advisors")); (iv) Neuberger & Berman Advisers Management Trust
("Neuberger & Berman AMT"), managed by Neuberger & Berman Management
Incorporated ("N&B Management"); (v) Variable Insurance Products Fund ("VIP"),
managed by Fidelity Management & Research Company ("FMR"); (vi) Variable
Insurance Products Fund II ("VIP II"), managed by FMR; (vii) The Alger American
Fund ("Alger American Fund"), managed by Fred Alger Management, Inc. ("Alger
Management"); (viii) J.P. Morgan Series Trust II ("J.P. Morgan Series Trust"),
managed by J.P. Morgan Investment Management Inc. ("J.P. Morgan"); (ix) Morgan
Stanley Universal Funds, Inc. ("MSUF"), managed by either Morgan Stanley Asset
Management Inc. ("MSAM") or Miller Anderson & Sherrerd, LLP ("MAS"); and (x) BT
Insurance Funds Trust, managed by Bankers Trust Global Investment Management, a
unit of Bankers Trust Company ("Bankers Trust").
GENERAL ACCOUNT: The assets of Hartford other than the assets of Our separate
accounts.
GRACE PERIOD: The 61-day period, measured in calendar days, following the date
We mail to the Owner notice that the Cash Surrender Value is insufficient to pay
the charges due. Unless the Owner has given Us written notice of the termination
in advance of the date of termination of any Certificate, insurance will
continue in force during this period.
GROUP POLICY: The group flexible premium variable life insurance policy issued
by Hartford and described in this Prospectus.
HARTFORD (ALSO REFERRED TO AS "WE," "US," "OUR"): Hartford Life Insurance
Company.
IN WRITING: In a written form satisfactory to Us.
INITIAL PREMIUM: The amount of premium initially payable shown in Your
Certificate.
INSURED: The person on whose life the Certificate is issued. The Insured is
identified in the Certificate.
INVESTMENT DIVISION: A separate division of the Separate Account which invests
exclusively in the shares of a specified Portfolio of a Fund. The Separate
Account currently offers 25 Investment Divisions: (i) the Hartford Capital
Appreciation Investment Division, (ii) the Hartford Bond Investment Division,
(iii) the Hartford Money Market Investment Division, (iv) the N&B AMT Limited
Maturity Bond Investment Division, (v) the N&B AMT Balanced Investment Division,
(vi) the N&B AMT Partners Investment Division, (vii) the
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HARTFORD LIFE INSURANCE COMPANY 5
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Fidelity VIP High Income Investment Division, (viii) the Fidelity VIP
Equity-Income Investment Division, (ix) the Fidelity VIP Overseas Investment
Division, (x) the Fidelity VIP II Asset Manager Investment Division, (xi) the
Alger American Small Capitalization Investment Division, (xii) the Alger
American Growth Investment Division, (xiii) the J.P. Morgan Bond Investment
Division, (xiv) the J.P. Morgan Equity Investment Division, (xv) the J.P. Morgan
Small Company Investment Division, (xvi) the J.P. Morgan International
Opportunities Investment Division, (xvii) the MS Fixed Income Investment
Division, (xviii) the MS High Yield Investment Division, (xix) the MS Equity
Growth Investment Division, (xx) the MS Value Investment Division, (xxi) the MS
Global Equity Investment Division, (xxii) the MS Emerging Markets Equity
Investment Division, (xxiii) the BT EAFE-Registered Trademark- Equity Index
Investment Division, (xxiv) BT Equity 500 Index Investment Division, and (xxv)
the BT Small Cap Index Investment Division.
INVESTMENT VALUE: The sum of the values of assets in the Investment Divisions
under the Certificate.
ISSUE AGE: The Insured's age on the birthday nearest to the Coverage Date.
LOAN: Any amount borrowed against the Investment Value under a Certificate.
LOAN ACCOUNT: That portion of Hartford's General Account to which amounts are
transferred as a result of a Loan. The Loan Account is credited with interest
and does not participate in the investment experience of the Separate Account.
LOAN ACCOUNT VALUE: The amounts of the Investment Value transferred to (or from)
the General Account to secure Loans, plus interest accrued at the daily
equivalent of an annual rate equal to the Adjustable Loan Interest Rate actually
charged, reduced by not more than 1%.
MATURITY DATE: The date on which an Insured's coverage matures as shown in the
Certificate. We will pay the Cash Surrender Value, if any, if the Insured is
living on the Maturity Date, upon surrender of the Certificate to Hartford.
MONTHLY DEDUCTION AMOUNT: The fees and charges deducted from the Investment
Value on the Processing Date.
NET AMOUNT AT RISK: The Death Benefit less the Cash Value.
NET PREMIUM: The amount of premium actually credited to the Investment
Divisions.
NYSE: The New York Stock Exchange.
OWNER (ALSO REFERRED TO AS "YOU" OR "YOUR"): The person or legal entity so
designated in the Enrollment Form or as subsequently changed. The Owner may be
someone other than the Insured. The Owner possesses all rights under the Group
Policy with respect to the Certificate.
PARTICIPATING EMPLOYER: An employer, or a trust sponsored by an employer, to
which Hartford issues the Group Policy described in this Prospectus.
PORTFOLIO: A Hartford Fund or a separate mutual fund, series or portfolio of the
remaining Funds. There are currently 25 Portfolios available under the Group
Policy: the Hartford Capital Appreciation Fund, Inc., Hartford Bond Fund, Inc.
and Hartford Money Market Fund, Inc.; the Limited Maturity Bond Portfolio ("N&B
AMT Limited Maturity Bond Portfolio"), Balanced Portfolio ("N&B AMT Balanced
Portfolio") and Partners Portfolio ("N&B AMT Partners Portfolio") of Neuberger &
Berman AMT; the VIP High Income Portfolio, VIP Equity-Income Portfolio and VIP
Overseas Portfolio of VIP, the VIP II Asset Manager Portfolio of VIP II; the
Alger American Small Capitalization Portfolio and Alger American Growth
Portfolio of Alger American Fund; the J.P. Morgan Bond Portfolio, J.P. Morgan
Equity Portfolio, J.P. Morgan Small Company Portfolio and J.P. Morgan
International Opportunities Portfolio of J.P. Morgan Series Trust; the Fixed
Income Portfolio ("MS Fixed Income Portfolio"), High Yield Portfolio ("MS High
Yield Portfolio"), Equity Growth Portfolio ("MS Equity Growth Portfolio"), Value
Portfolio ("MS Value Portfolio"), Global Equity Portfolio ("MS Global Equity
Portfolio"), and Emerging Markets Equity Portfolio ("MS Emerging Markets Equity
Portfolio") of MSUF; the EAFE-Registered Trademark- Equity Index Fund ("BT EAFE"
Equity Index Fund"), Equity 500 Index Fund ("BT Equity 500 Index Fund") and
Small Cap Index Fund ("BT Small Cap Index Fund") of BT Insurance Funds Trust.
PRO RATA BASIS: An allocation method based on the proportion of the Investment
Value in each Investment Division.
PROCESSING DATE(S): The day(s) on which We deduct charges from the Investment
Value. The first Processing Date is the Coverage Date. There is a Processing
Date each month. Later Processing Dates are on the same calendar day as the
Coverage Date, or on the last day of any month which has no such calendar day.
PROCESSING PERIOD: The period from the Coverage Date to the next Processing
Date, and thereafter, the period from one Processing Date to the next.
SEC: The U.S. Securities and Exchange Commission.
SEPARATE ACCOUNT: ICMG Registered Variable Life Separate Account A, an account
established by Hartford to separate the assets funding the Group Policies from
other assets of Hartford.
VALUATION DAY: Each business day that Hartford and each of the Funds value their
respective investment portfolios. A business day is any day the NYSE is open for
trading or any day the SEC requires mutual funds, unit investment trusts or
other investment portfolios to be valued. The value of the Separate Account is
determined at the close of the NYSE (generally 4:00 p.m. Eastern Time) on such
days.
VALUATION PERIOD: The period between the close of business on successive
Valuation Days.
VARIABLE INSURANCE AMOUNT: The Cash Value multiplied by the applicable variable
insurance factor provided in the Certificate.
VIP: Variable Insurance Products Fund.
VIP II: Variable Insurance Products Fund II.
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6 HARTFORD LIFE INSURANCE COMPANY
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SUMMARY
THE GROUP POLICY
The Group Policies, and the Certificates, offered by this Prospectus are
funded by the Separate Account, a separate account established by Hartford
pursuant to Connecticut insurance law and organized as a unit investment trust
registered under the Investment Company Act of 1940 (the "1940 Act"). The
Separate Account has 25 Investment Divisions dedicated to the Group Policies,
each of which invests solely in a corresponding Portfolio of the Funds.
Depending upon the state of issuance of Your Certificate and the applicable
provisions of Your Certificate, Your initial Net Premium will, when Your
Certificate is issued, either be (1) invested in the Hartford Money Market
Investment Division during the right to examine period or (2) invested
immediately in Your chosen Investment Divisions, upon Our receipt thereof. IF
YOUR INITIAL NET PREMIUM IS INVESTED IMMEDIATELY IN YOUR CHOSEN INVESTMENT
DIVISIONS, YOU WILL BEAR FULL INVESTMENT RISK FOR ANY AMOUNTS ALLOCATED TO THE
INVESTMENT DIVISIONS DURING THE RIGHT TO EXAMINE PERIOD. Please note that this
automatic immediate investment feature only applies if Your Certificate so
specifies. Please check with Your agent to determine the status of Your
Certificate. You must fill out and send Us the appropriate form In Writing or
comply with other designated Hartford procedures if You would like to change how
subsequent Net Premiums are allocated. See "Allocation of Premium Payments,"
page 15.
Pursuant to the Certificates, each selected Investment Division is credited
with Accumulation Units and each selected Investment Division's assets are
invested in the applicable underlying Portfolio. Subject to certain
restrictions, an Owner may transfer amounts among the available Investment
Divisions. See "Detailed Description of Certificate Benefits and Provisions --
Transfers Among Investment Divisions," page 16.
The Group Policies are life insurance policies and the Certificates
evidencing an Owner's interest in the Group Policies provide for death benefits,
cash values, and other features traditionally associated with life insurance.
The Group Policies are "flexible premium" because, once the desired level and
pattern of the Death Benefit have been determined, a purchaser has considerable
flexibility in the selection of the timing and amount of premium to be paid. The
Group Policies are called "variable" because, unlike the fixed benefits of an
ordinary whole life insurance policy, the Investment Value under a Certificate
will, and the Death Benefit may, increase or decrease depending on the
investment experience of the Investment Divisions to which the Net Premiums have
been allocated. See "Detailed Description of Certificate Benefits and Provisions
- -- Death Benefit," page 18.
DEATH BENEFIT
The Certificates provide for two Death Benefit options. Under Death Benefit
Option A, the Death Benefit is an amount equal to the larger of (1) the Face
Amount and (2) the Variable Insurance Amount. Under Death Benefit Option B, the
Death Benefit is an amount equal to the larger of (1) the Face Amount plus the
Cash Value and (2) the Variable Insurance Amount. We will pay the Death Proceeds
to the Beneficiary upon proof of death of the Insured before the Maturity Date.
The Death Proceeds equal the Death Benefit less outstanding Debt plus any rider
benefits payable under the Certificate. See "Detailed Description of Certificate
Benefits and Provisions -- Death Benefit," page 18.
PREMIUM
You have considerable flexibility as to when and in what amounts You pay
premiums.
No premium payment will be accepted which causes the Certificate to fail to
meet the tax qualification guidelines for life insurance under the Code.
GENERAL ACCOUNT
Amounts allocated to the Loan Account to secure a Loan become part of the
General Account assets of Hartford. Hartford invests the assets of the General
Account in accordance with applicable law governing the investments of insurance
company general accounts. See "Detailed Description of Certificate Benefits and
Provisions -- Loans," page 17.
DEDUCTIONS FROM PREMIUM
Prior to the allocation of premiums to the selected Investment Divisions, a
deduction as a percentage of premium is made for the front-end sales load, state
and local premium taxes, and the Deferred Acquisition Cost ("DAC") tax charge.
The amount of each premium allocated among the Investment Divisions is Your Net
Premium.
FRONT-END SALES LOAD
When We receive a Premium Payment, We deduct a front-end sales load. The
current front-end sales load is 6.75% of any premium paid for Coverage Years 1
through 7 and 4.75% of any premium paid in Coverage Years 8 and later. The
maximum front-end sales load is 9% of any premium paid for Coverage Years 1
through 7 and 7% of any premium paid in Coverage Years 8 and later.
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HARTFORD LIFE INSURANCE COMPANY 7
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The front-end sales load covers expenses relating to the sale and
distribution of the Certificates and may be reduced for certain sales of the
Certificates under circumstances which result in savings of such sales and
distribution expenses. For more information concerning the front-end sales load,
see "Detailed Description of Certificate Benefits and Provisions -- Deductions
from Premium," page 21.
LIMITS ON FRONT-END SALES LOAD
Certain insurance laws and regulations limit the front-end sales load which
can be assessed against the Certificates. The front-end sales load assessed in
the Certificates complies with these limitations.
PREMIUM RELATED TAX CHARGE
We deduct a percentage of each premium to cover taxes assessed against
Hartford by various states, municipalities and other jurisdictions that are
attributable to premiums. The percentage actually deducted will vary by locale
depending on the tax rates in effect there. The range is generally between 0%
and 4%.
DAC TAX CHARGE
Hartford deducts 1.25% of each premium to cover a federal premium tax
assessed against Hartford. This charge is reasonable in relation to Hartford's
federal income tax burden, under Code Section 848, resulting from the receipt of
premiums. We will adjust the charge based on changes in the applicable tax law.
DEDUCTIONS AND CHARGES
FROM INVESTMENT VALUE
As with many other types of insurance policies, each Certificate will have
an Investment Value. The Investment Value of the Certificate will increase or
decrease to reflect the investment experience of the chosen Investment
Divisions, deductions for the Monthly Deduction Amount and any amounts
transferred from the Investment Divisions into the Loan Account. There is no
minimum guaranteed Investment Value and the Owner bears the risk of the
investment in the underlying Portfolios. See "Detailed Description of
Certificate Benefits and Provisions -- Deductions and Charges from Investment
Value," page 21.
We will subtract amounts from Your Investment Value to provide for the
Monthly Deduction Amount. These will be taken from the Charge Deduction
Division, as specified in the Certificate. If there is insufficient Investment
Value in the Charge Deduction Division:
(1) Hartford will apply the Investment Value of the Charge Deduction Division to
the charges due and set the Investment Value in the Charge Deduction
Division to zero; and
(2) any additional amount due will be deducted from the remaining Investment
Divisions on a Pro Rata Basis.
If no Charge Deduction Division is selected, any amounts due will be taken
on a Pro Rata Basis from Your chosen Investment Divisions on each Processing
Date.
The Monthly Deduction Amount equals:
(a) the administrative expense charge; plus
(b) the charges for cost of insurance; plus
(c) the charges for additional benefits provided by rider, if any.
Hartford may also set up a provision for income taxes imposed on the assets
of the Separate Account. See "Deductions and Charges from Investment Value,"
page 21, and "Federal Tax Considerations," page 30.
MORTALITY AND EXPENSE RISK CHARGE
A charge is made for mortality and expense risks assumed by Hartford.
Hartford currently deducts a daily charge for Coverage Years 1 through 10 at an
effective annual rate of .65% of the value of each Investment Division's assets
and for Coverage Years 11 and later at an effective annual rate of .50% of each
Investment Division's assets. In no event will the charge exceed .65% of an
Investment Division's assets on an annual basis.
CHARGES AGAINST THE FUNDS
The Separate Account purchases Fund shares at net asset value. The net asset
value of those shares reflects investment advisory fees and administrative and
other expenses deducted from the assets of the Portfolios. Applicants should
review the prospectuses for the Funds which accompany this Prospectus for a
description of the charges assessed against the assets of each of the
Portfolios.
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8 HARTFORD LIFE INSURANCE COMPANY
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The following table shows annual operating expenses after waivers or
reimbursements for 1997:
ANNUAL PORTFOLIO OPERATING EXPENSES AFTER WAIVERS AND/OR REIMBURSEMENTS
(as a percentage of net assets)
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TOTAL
MANAGEMENT OTHER OPERATING
PORTFOLIO NAME FEE EXPENSES EXPENSES(1)
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Hartford Capital Appreciation Fund...... 0.645% 0.020% 0.665%
Hartford Bond Fund...................... 0.515% 0.020% 0.535%
Hartford Money Market Fund.............. 0.450% 0.015% 0.465%
N&B AMT Limited Maturity Bond Portfolio
(2).................................... 0.650% 0.120% 0.770%
N&B AMT Balanced Portfolio (2).......... 0.850% 0.190% 1.040%
N&B AMT Partners Portfolio (2).......... 0.800% 0.060% 0.860%
VIP High Income Portfolio (3)........... 0.590% 0.120% 0.710%
VIP Equity-Income Portfolio (3)......... 0.500% 0.080% 0.580%
VIP Overseas Portfolio (3).............. 0.750% 0.170% 0.920%
VIP II Asset Manager Portfolio (3)...... 0.550% 0.100% 0.650%
Alger American Small Capitalization
Portfolio.............................. 0.850% 0.040% 0.890%
Alger American Growth Portfolio......... 0.750% 0.040% 0.790%
J.P. Morgan Bond Portfolio (4).......... 0.300% 0.450% 0.750%
J.P. Morgan Equity Portfolio (4)........ 0.400% 0.500% 0.900%
J.P. Morgan Small Company Portfolio
(4).................................... 0.600% 0.550% 1.150%
J.P. Morgan International Opportunities
Portfolio (4).......................... 0.600% 0.600% 1.200%
MS Fixed Income Portfolio (5)........... 0.000% 0.700% 0.700%
MS High Yield Portfolio (5)............. 0.000% 0.800% 0.800%
MS Equity Growth Portfolio (5).......... 0.000% 0.850% 0.850%
MS Value Portfolio (5).................. 0.000% 0.850% 0.850%
MS Global Equity Portfolio (5).......... 0.000% 1.150% 1.150%
MS Emerging Markets Equity Portfolio
(5).................................... 0.000% 1.750% 1.750%
BT EAFE-Registered Trademark- Equity
Index Fund (6)......................... 0.020% 0.630% 0.650%
BT Equity 500 Index Fund (6)............ 0.000% 0.300% 0.300%
BT Small Cap Index Fund (6)............. 0.000% 0.450% 0.450%
</TABLE>
- ---------
(1) Management Fee generally represents the fees paid to the investment adviser
or its affiliate for investment and administrative services provided. Other
Expenses are expenses (other than Management Fees) which are deducted from
the fund including legal, accounting and custodian fees. For complete
description of the nature of the services provided in consideration of the
operating expenses deducted, please see the Fund prospectuses.
(2) Neuberger & Berman AMT is divided into Portfolios, each of which invests all
of its net investable assets in a corresponding series of Advisers Managers
Trust. The figures reported under Management Fee include the aggregate of
the administration fees paid by the Portfolio and the management fee paid by
its corresponding series of Advisers Managers Trust. Similarly, Other
Expenses includes all other expenses of the Portfolio and its corresponding
series of Advisers Managers Trust.
(3) A portion of the brokerage commissions that certain funds pay was used to
reduce fund expenses. In addition, certain funds have entered into
arrangements with their custodian and transfer agent whereby credits
realized, as a result of uninvested cash balances were used to reduce
custodian expenses. Including these reductions, the total operating expenses
presented in the table would have been 0.710% for VIP High Income Portfolio,
0.570% for VIP Equity-Income Portfolio, 0.900% for VIP Overseas Portfolio,
and 0.640% for VIP II Asset Manager Portfolio.
(4) Pursuant to a voluntary agreement, fees and expenses were reimbursed to the
extent expenses exceeded .75%, .90%, 1.15% and 1.20% of the average daily
net assets of J.P. Morgan Bond Portfolio, J.P. Morgan Equity Portfolio, J.P.
Morgan Small Company Portfolio and J.P. Morgan International Opportunities
Portfolio, respectively. Without such reimbursement, Management Fees, Other
Expenses and Total Operating Expenses would have been as follows:
<TABLE>
<CAPTION>
TOTAL
MANAGEMENT OTHER OPERATING
PORTFOLIO FEE EXPENSES EXPENSES
- ---------------------------------------------------------------------------------------- ------------ ----------- -----------
<S> <C> <C> <C>
J.P Morgan Bond Portfolio............................................................... 0.300% 1.610% 1.910%
J.P. Morgan Equity Portfolio............................................................ 0.400% 1.910% 2.310%
J.P. Morgan Small Company Portfolio..................................................... 0.600% 3.210% 3.810%
J.P. Morgan International Opportunities Portfolio....................................... 0.600% 3.650% 4.250%
</TABLE>
(5) With respect to the MS Fixed Income, MS High Yield, MS Equity Growth, MS
Value, MS Global Equity and MS Emerging Markets Equity Portfolios, the
investment adviser has voluntarily agreed to waive its investment advisory
fees and to reimburse the Portfolios if such fees would cause their
respective Total Operating Expenses to exceed those set forth in
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 9
- --------------------------------------------------------------------------------
the table above. Absent such reductions, it is estimated that Management
Fees, Other Expenses and Total Operating Expenses for the Portfolios would
have been as follows:
<TABLE>
<CAPTION>
TOTAL
MANAGEMENT OTHER OPERATING
PORTFOLIO FEE EXPENSES EXPENSES
- ---------------------------------------- ---------- -------- ------------
<S> <C> <C> <C>
MS Fixed Income Portfolio............... 0.400% 1.310% 1.710%
MS High Yield Portfolio................. 0.500% 1.180% 1.680%
MS Equity Growth Portfolio.............. 0.550% 1.500% 2.050%
MS Value Portfolio...................... 0.550% 1.320% 1.870%
MS Global Equity Portfolio.............. 0.800% 1.630% 2.430%
MS Emerging Markets Equity Portfolio.... 1.250% 2.870% 4.120%
</TABLE>
(6) Without expense waivers and reimbursements, the Management Fees, Other
Expenses and the Total Operating Expenses for BT EAFE-Registered Trademark-
Equity Index Fund, BT Equity 500 Index Fund and BT Small Cap Index Fund
would have been as follows:
<TABLE>
<CAPTION>
TOTAL
MANAGEMENT OTHER OPERATING
PORTFOLIO FEE EXPENSES EXPENSES
- ---------------------------------------------------------------------------------------- ------------ ----------- -----------
<S> <C> <C> <C>
BT EAFE-Registered Trademark- Equity Index.............................................. 0.450% 2.300% 2.750%
BT Equity 500 Index..................................................................... 0.200% 2.580% 2.780%
BT Small Cap Index...................................................................... 0.350% 2.920% 3.270%
</TABLE>
LOANS
An Owner may obtain a cash Loan from Hartford. The Loan is secured by the
Owner's Certificate. The maximum Loan amount is equal to the sum of the Cash
Surrender Value plus outstanding Debt, multiplied by .90, less outstanding Debt.
See "Detailed Description of Certificate Benefits and Provisions -- Loans," page
17.
THE RIGHT TO EXAMINE THE CERTIFICATE
An applicant has a limited right to return his or her Certificate. Subject
to applicable state regulations, if the applicant returns the Certificate within
10 calendar days after delivery of the Certificate Hartford will return to the
applicant, within seven days thereafter, either (i) the premium paid or (ii) the
Cash Value under the Certificate plus charges deducted. See "The Right to
Examine the Certificate," page 20.
TAX CONSEQUENCES
The current federal tax law generally excludes all Death Benefit payments
from the gross income of the Beneficiary under the Certificate. See "Federal Tax
Considerations," page 30.
There are circumstances when the Certificate may become a Modified Endowment
Contract under Federal tax law. If it does, Loans and other pre-death
distributions are includable in gross income on an income-first basis. A 10%
penalty tax may be imposed on income distributed before the insured attains age
59 1/2. Prospective purchasers and Owners are advised to consult a qualified tax
adviser before taking steps that may affect whether the Certificate becomes a
Modified Endowment Contract. Hartford has instituted procedures to monitor
whether a Certificate may become a Modified Endowment Contract after issue. See
"Federal Tax Considerations -- Modified Endowment Contracts" for a discussion of
the "seven-pay" test, page 30.
HARTFORD
Hartford Life Insurance Company ("Hartford") is a stock life insurance
company engaged in the business of writing life insurance, both individual and
group, in all states of the United States and the District of Columbia. Hartford
was originally incorporated under the laws of Massachusetts on June 5, 1902, and
was subsequently redomiciled to Connecticut. Its offices are located in
Simsbury, Connecticut; however, its mailing address is P.O. Box 2999, Hartford,
CT 06104-2999. Hartford is ultimately controlled by The Hartford Financial
Services Group, Inc., one of the largest financial service providers in the
United States.
Hartford is rated A+ (superior) by A.M. Best and Company, Inc., on the basis
of its financial soundness and operating performance. Hartford is rated AA by
Standard & Poor's on the basis of its insurer financial strength and AA+ by Duff
and Phelps on the basis of its claims paying ability. These rating do not apply
to the investment performance of the Investment Divisions. The rating apply to
Hartford's ability to meet its insurance obligations, including those described
in this Prospectus.
THE SEPARATE ACCOUNT
The insurance benefits under the Group Policies are provided through
investments made in ICMG Registered Variable Life Separate Account A, a separate
account established by Hartford on April 14, 1998, under the insurance laws of
the State of Connecticut, pursuant to a resolution of Hartford's Board of
Directors. The Separate Account is organized as a unit investment trust and is
registered with the SEC under the 1940 Act. Such registration does not
<PAGE>
10 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
signify that the SEC supervises the management or the investment practices or
policies of the Separate Account. The Separate Account meets the definition of a
"separate account" under the federal securities laws.
Under Connecticut law, the assets of the Separate Account are held
exclusively for the benefit of Owners and persons entitled to payments under the
Group Policies and the Certificates and owners of any other policies which may
be available through the Separate Account. The assets of the Separate Account
are owned by Hartford and the obligations under the Group Policies and the
Certificates are obligations of Hartford. These assets are held separately from
the other assets of Hartford and income, gains and losses incurred on the assets
in the Separate Account, whether or not realized, are credited to or charged
against the Separate Account without regard to other income, gains or losses of
Hartford (except to the extent that assets in the Separate Account exceed the
reserves and other liabilities of the Separate Account). Therefore, the
investment performance of the Separate Account is entirely independent of the
investment performance of the General Account assets or any other separate
account maintained by Hartford.
The Separate Account has 25 Investment Divisions dedicated to the Group
Policies, each of which invests solely in a corresponding Portfolio of the
Funds. Additional Investment Divisions may be established at the discretion of
Hartford. The Separate Account may include other divisions which will not be
available under the Group Policies.
THE FUNDS
GENERAL
The shares of the Portfolios are sold by the Funds to the Separate Account.
The assets of the Separate Account attributable to the Group Policies are
invested exclusively in the Investment Divisions. An Owner may allocate Net
Premium payments among the Investment Divisions. Owners should review the brief
descriptions of the investment objectives of each of the Portfolios in
connection with that allocation. See "The Funds -- The Portfolios," page 12.
Each Fund continually issues an unlimited number of full and fractional
shares of beneficial interest in the relevant Portfolios. In addition to being
offered to the Separate Account, each Fund's shares are or may be offered to
other separate accounts funding variable annuity contracts and variable life
insurance policies issued by Hartford or its affiliates and to separate accounts
of other insurance companies. It is conceivable that in the future it may become
disadvantageous for both variable annuity and variable life insurance separate
accounts or for separate accounts of other life insurance companies to invest in
shares of the Funds simultaneously. Although neither Hartford nor any of the
Funds currently foresees any such disadvantage, each Fund's Board of Directors
or Board of Trustees, as applicable (collectively, the "Boards"), will monitor
events in order to identify any material conflict between different variable
annuity and variable life owners and to determine what action, if any, should be
taken in response thereto, including the possible withdrawal of the Separate
Account's participation in any of the Funds. Material conflicts could result
from such things as (1) changes in state insurance law, (2) changes in federal
income tax law, (3) changes in the investment management of any Portfolio, or
(4) differences between voting instructions given by variable annuity and
variable life owners. If the Boards were to conclude that separate underlying
funds should be established for variable annuity and variable life insurance
separate accounts, Hartford will bear the attendant expenses.
All investment income of, and other distributions to, each Investment
Division arising from the applicable Portfolio are reinvested in shares of that
Portfolio at net asset value. Hartford will purchase Portfolio shares in
connection with Net Premium payments allocated to the applicable Investment
Division in accordance with Owners' instructions and will redeem Portfolio
shares to meet obligations under the Group Policies and the Certificates or make
adjustments in reserves, if any. The Funds are required to redeem Portfolio
shares at net asset value and generally to make payment within seven (7)
calendar days.
Applicants should read the Fund prospectuses accompanying this Prospectus in
connection with the purchase of a Certificate.
HARTFORD FUNDS
The Separate Account currently invests in three Funds sponsored by Hartford
that are available as part of OmniSource-SM- -- the Hartford Capital
Appreciation Fund, the Hartford Bond Fund and the Hartford Money Market Fund.
Each Hartford Fund is a separate diversified open-end management investment
company registered under the 1940 Act and organized as a Maryland corporation.
HL Investment Advisors, Inc. ("HL Advisors") serves as the investment
adviser to each of the Hartford Funds. In addition, HL Advisors has entered an
investment services agreement with The Hartford Investment Management Company
("HIMCO"), pursuant to which HIMCO will provide certain investment services to
Hartford Bond Fund and Hartford Money Market Fund. Wellington Management
Company, LLP ("Wellington Management") serves as sub-investment adviser for
Hartford Capital Appreciation Fund.
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
The Separate Account currently invests in Neuberger & Berman AMT, a
diversified open-end management investment company registered under the 1940 Act
and organized as a Delaware business trust. Neuberger & Berman AMT consists of
several portfolios, including the Limited Maturity
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 11
- --------------------------------------------------------------------------------
Bond Portfolio, Balanced Portfolio and Partners Portfolio available as part of
OmniSource-SM-.
Each portfolio of Neuberger & Berman AMT invests its assets in its
corresponding series of the Advisers Managers Trust, which is also an open-end
management investment company registered under the 1940 Act and is organized as
a New York common law trust. The investment performance of the Limited Maturity
Bond Portfolio, Balanced Portfolio and Partners Portfolio will directly
correspond with the investment performance of the corresponding series of the
Advisers Managers Trust. This "Master/Feeder Fund" structure is different from
that of many other investment companies which directly acquire and manage their
own portfolios of securities.
Neuberger & Berman Management Inc. serves as the investment manager of each
series of Advisers Managers Trust, as administrator of each portfolio of
Neuberger & Berman AMT, and as distributor of the shares of each portfolio of
Neuberger & Berman AMT. Neuberger & Berman, LLC serves as the sub-adviser for
each series of Advisers Managers Trust.
VARIABLE INSURANCE PRODUCTS FUND AND VARIABLE INSURANCE PRODUCTS FUND II (EACH,
A "FIDELITY FUND" AND COLLECTIVELY,
THE "FIDELITY FUNDS")
The Separate Account currently invests in both Fidelity Funds. The Fidelity
Funds are diversified, open-end management investment companies organized as
Massachusetts business trusts by Fidelity Management & Research Company ("FMR")
and registered under the 1940 Act. The Fidelity Funds consist of several
investment portfolios, including the VIP High Income Portfolio, VIP Equity-
Income Portfolio, VIP Overseas Portfolio and VIP II Asset Manager Portfolio
available as part of OmniSource-SM-.
The Fidelity Funds are each managed by FMR. FMR is one of America's largest
investment management organizations. It is composed of a number of different
companies, which provide a variety of financial services and products. FMR is
the original Fidelity company, founded in 1946. It provides a number of mutual
funds and other clients with investment research and portfolio management
services.
THE ALGER AMERICAN FUND
The Separate Account currently invests in shares of The Alger American Fund,
a diversified open-end management investment company registered under the 1940
Act and organized as a Massachusetts business trust. The Alger American Fund
consists of six series, including the Alger American Small Capitalization and
Alger American Growth Portfolios available as part of OmniSource-SM-.
The Alger American Fund is managed by Alger Management, a subsidiary of Fred
Alger & Company, Incorporated, which is in turn a subsidiary of Alger
Associates, Inc., a financial services holding company. Alger Management has
been in the business of providing investment advisory services since 1964.
J.P. MORGAN SERIES TRUST II
The Separate Account currently invests in shares of J.P. Morgan Series
Trust, a diversified open-end management investment company registered under the
1940 Act and organized as a Delaware business trust. J.P. Morgan Series Trust
consists of five portfolios, including the J.P. Morgan Bond, J.P. Morgan Equity,
J.P. Morgan Small Company and J.P. Morgan International Opportunities Portfolios
available as part of OmniSource-SM-.
Each Portfolio of J.P. Morgan Series Trust is advised by J.P. Morgan
Investment Management Inc., a wholly-owned subsidiary of J.P. Morgan & Co.
Incorporated which is a bank holding company with a long history of service as
adviser, underwriter and lender to an extensive roster of major companies and as
financial adviser to national governments.
MORGAN STANLEY UNIVERSAL FUNDS, INC.
The Separate Account currently invests in shares of MSUF, an open-end
management investment company registered under the 1940 Act and organized as a
corporation under the laws of the State of Maryland. MSUF consists of 17
portfolios, including the Fixed Income, High Yield, Equity Growth, Value, Global
Equity and Emerging Markets Equity Portfolios available as part of
OmniSource-SM-.
The investment adviser for Equity Growth, Global Equity and Emerging Markets
Equity Portfolios is MSAM, a wholly-owned subsidiary of Morgan Stanley Dean
Witter & Co., which is a publicly owned global financial services corporation.
The investment adviser for Fixed Income, High Yield and Value Portfolios is MAS,
which is indirectly wholly-owned by Morgan Stanley Dean Witter & Co.
BT INSURANCE FUNDS TRUST
The Separate Account currently invests in the BT Insurance Funds Trust, a
diversified open-end management investment company registered under the 1940 Act
and organized as a Massachusetts business trust. BT Insurance Funds Trust
consists of six series, including the EAFE-Registered Trademark--Equity Index
Fund, the Equity 500 Index Fund and the Small Cap Index Fund available as part
of OmniSource-SM-.
BT Insurance Funds Trust has retained the services of Bankers Trust Global
Investment Management, a unit of Bankers Trust, as investment manager. Bankers
Trust conducts a variety of general banking and trust activities and is a major
wholesaler supplier of financial services to the international and domestic
institutional markets.
<PAGE>
12 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
THE PORTFOLIOS
HARTFORD CAPITAL APPRECIATION FUND
Hartford Capital Appreciation Fund seeks to achieve growth of capital by
investing in equity securities selected solely on the basis of potential for
capital appreciation.
HARTFORD BOND FUND
Hartford Bond Fund seeks to achieve maximum current income consistent with
preservation of capital by investing primarily in fixed-income securities. Up to
20% of the total assets of the Portfolio may be invested in debt securities
rated in the highest category below investment grade ("Ba" by Moody's Investor
Services, Inc. or "BB" by Standard & Poor's) or, if unrated, are determined to
be of comparable quality by the Portfolio's investment adviser. Securities rated
below investment grade are commonly referred to as "high yield-high risk
securities" or "junk bonds." For more information concerning the risks
associated with investing in such securities, please refer to the section in the
accompanying prospectus for the Hartford Funds entitled "High Yield -- High Risk
Debt Securities."
HARTFORD MONEY MARKET FUND
Hartford Money Market Fund seeks to achieve maximum current income
consistent with liquidity and preservation of capital.
LIMITED MATURITY BOND PORTFOLIO
N&B AMT Limited Maturity Bond Portfolio seeks to achieve the highest current
income consistent with low risk to principal and liquidity; and secondarily,
total return. This Portfolio invests in a diversified portfolio primarily
consisting of short to intermediate term U.S. government and agency securities
and investment grade debt securities issued by financial institutions,
corporations, and others. The Portfolio may invest up to 10% of its net assets,
measured at the time of investment, in fixed-income securities that are below
investment grade.
BALANCED PORTFOLIO
N&B AMT Balanced Portfolio seeks to achieve long-term capital growth and
reasonable current income without undue risk to principal. It is anticipated
that the Portfolio's investment program will normally be managed so that
approximately 60% of its total assets will be invested in common and preferred
stocks and the remaining assets will be invested in debt securities, primarily
investment grade. However, depending on the investment manager's views regarding
current market trends, the common stock portion of its portfolio investments may
be adjusted downward to as low as 50% or upward to as high as 70%. At least 25%
of its assets will be invested in fixed income securities.
PARTNERS PORTFOLIO
N&B AMT Partners Portfolio seeks to achieve capital growth. This Portfolio's
investment approach is to invest principally in common stocks of medium to large
capitalization established companies, using a value-oriented investment approach
designed to increase capital with reasonable risk. Its investment program seeks
securities believed to be undervalued based on strong fundamentals such as low
price-to-earnings ratios, consistent cash flow and the company's track record
through all parts of the market cycle.
VIP HIGH INCOME PORTFOLIO
VIP High Income Portfolio seeks high current income primarily through
investments in all types of income-producing debt securities, preferred stocks
and convertible securities. Although the Portfolio has no limits on the quality
and maturity of its investments, its strategy typically leads to longer-term,
lower-quality, fixed-income securities. These domestic and foreign investments
may present the risk of default or may be in default.
VIP EQUITY-INCOME PORTFOLIO
VIP Equity-Income Portfolio seeks reasonable income by investing primarily
in income-producing equity securities. In choosing these securities, the
Portfolio will also consider the potential for capital appreciation. This
Portfolio's goal is to achieve a yield which exceeds the composite yield on the
securities comprising the Standard & Poor's Composite Index of 500 Stocks
(commonly referred to as "S&P 500"). The Portfolio may invest in high yielding,
lower-rated securities (commonly referred to as "junk bonds") which are subject
to greater risk than investments in higher-rated securities.
VIP OVERSEAS PORTFOLIO
VIP Overseas Portfolio seeks long-term growth of capital primarily through
investments in foreign securities and provides a means for aggressive investors
to diversify their own portfolios by participating in companies and economies
outside of the United States. International investing involves increased or
additional risks compared to investing primarily in domestic equity securities.
VIP II ASSET MANAGER PORTFOLIO
VIP II Asset Manager Portfolio seeks high total return with reduced risk
over the long term by allocating its assets among domestic and foreign stocks,
bonds and short-term instruments.
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO
Alger American Small Capitalization Portfolio seeks long-term capital
appreciation by investing in a diversified, actively managed portfolio of equity
securities, primarily of companies with total market capitalization within the
range of companies included in the Russell 2000 Growth Index or the S&P SmallCap
600 Index, updated quarterly.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 13
- --------------------------------------------------------------------------------
ALGER AMERICAN GROWTH PORTFOLIO
Alger American Growth Portfolio seeks long-term capital appreciation by
investing in a diversified, actively managed portfolio of equity securities,
primarily of companies with total market capitalization of $1 billion or
greater.
J.P. MORGAN BOND PORTFOLIO
J.P. Morgan Bond Portfolio seeks high total return consistent with moderate
risk of capital and maintenance of liquidity. Although the net asset value of
the Portfolio will fluctuate, the Portfolio attempts to preserve the value of
its investments to the extent consistent with its objective. Under normal market
conditions, 65% of the Portfolio's, assets will be invested in bonds, debentures
and other debt instruments. The Portfolio may invest up to 20% of its assets in
securities denominated in foreign currencies and may invest without limitation
in U.S. dollar-denominated securities of foreign issuers.
J.P. MORGAN EQUITY PORTFOLIO
J.P. Morgan Equity Portfolio seeks high total return from a portfolio
comprised of selected equity securities. The Portfolio invests primarily in the
common stock of large and medium capitalization U.S. companies.
J.P. MORGAN SMALL COMPANY PORTFOLIO
J.P. Morgan Small Company Portfolio seeks high total return from a portfolio
of equity securities of small companies. The Portfolio invests at least 65% of
the value of its total assets in the common stock of small U.S. companies
primarily with market capitalizations less than $1 billion.
J.P. MORGAN INTERNATIONAL OPPORTUNITIES PORTFOLIO
J.P. Morgan International Opportunities Portfolio seeks high total return
from a portfolio of equity securities of foreign corporations. Under normal
market conditions, the Portfolio will invest in a minimum of three different
foreign countries.
FIXED INCOME PORTFOLIO
MS Fixed Income Portfolio seeks above average total return over a market
cycle of three to five years by investing in a diversified portfolio of U.S.
government and agency securities, corporate bonds, foreign bonds, mortgage-
backed securities of domestic issuers, and other fixed income securities and
derivatives. Under normal circumstances, the Portfolio will invest at least 65%
of its total assets in fixed income securities, not more than 20% of which will
be below investment grade (commonly referred to as "high yield securities" or
"junk bonds").
HIGH YIELD PORTFOLIO
MS High Yield Portfolio seeks above average total return over a market cycle
of three to five years by investing at least 65% of its total assets in high
yield securities of U.S. and foreign issuers including corporate bonds and other
fixed income securities. The Portfolio expects to achieve its objective through
maximizing current income, although it may seek capital growth opportunities
when consistent with its objective.
EQUITY GROWTH PORTFOLIO
MS Equity Growth Portfolio seeks long-term capital appreciation by investing
primarily in growth-oriented common and preferred stocks, convertible
securities, rights and warrants to purchase common stocks, depositary receipts
and other equity securities. Under normal circumstances, the Portfolio will
invest at least 65% of its total assets in equity securities.
VALUE PORTFOLIO
MS Value Portfolio seeks above average total return over a market cycle of
three to five years by investing primarily in common and preferred stocks,
convertible securities, rights and warrants to purchase common stocks, ADRs and
other equity securities of companies with equity capitalizations usually greater
than $300 million. Under normal circumstances, the Portfolio will invest at
least 65% of its total assets in equity securities. The Portfolio may invest up
to 5% of its total assets in foreign equity securities (other than ADRs).
GLOBAL EQUITY PORTFOLIO
MS Global Equity Portfolio seeks long-term capital appreciation by investing
primarily in common and preferred stocks, convertible securities, and rights and
warrants to purchase common stocks, depositary receipts and other equity
securities of issuers throughout the world, including issuers in the United
States and emerging market countries. Under normal circumstances, at least 65%
of the total assets of the Portfolio will be invested in equity securities. At
least 20% of the Portfolio's total assets will be invested in common stocks of
U.S. issuers and the remaining equity position will be invested in at least
three countries other than the United States.
EMERGING MARKET EQUITY PORTFOLIO
MS Emerging Markets Equity Portfolio seeks long-term capital appreciation by
investing primarily in common and preferred stocks, convertible securities,
rights and warrants to purchase common stocks, sponsored or unsponsored ADRs and
other equity securities of emerging market country issuers. Under normal
circumstances, at least 65% of the Portfolio's total assets will be invested in
emerging market country equity securities.
EAFE-REGISTERED TRADEMARK- EQUITY INDEX FUND
BT EAFE-Registered Trademark- Equity Index Fund seeks to replicate as
closely as possible (before deduction for expenses) the total return of the
Europe, Australia, Far East Index (the "EAFE Index"), a capitalization-weighted
index containing approximately 1,100 equity securities of companies located
outside the United States, by investing in a statistically selected sample of
the equity securities included in the EAFE Index.
<PAGE>
14 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
It will invest primarily in equity securities of business enterprises organized
and domiciled outside of the United States or for which the principal trading
market is outside the United States.
EQUITY 500 INDEX FUND
BT Equity 500 Index Fund seeks to replicate as closely as possible (before
deduction for expenses) the total return of the Standard & Poor's 500 Composite
Stock Price Index (the "S&P 500"), an index emphasizing large-capitalization
stocks. It will include the common stock of those companies included in the S&P
500, other than Bankers Trust New York Corporation, selected on the basis of
computer-generated statistical data, that are deemed representative of the
industry diversification of the entire S&P 500.
SMALL CAP INDEX FUND
BT Small Cap Index Fund seeks to replicate as closely as possible (before
deduction for expenses) the total return of the Russell 2000 Small Stock Index
(the "Russell 2000"), an index consisting of 2,000 small-capitalization common
stocks. It will include the common stock of companies included in the Russell
2000, on the basis of computer-generated statistical data, that are deemed
representative of the industry diversification of the entire Russell 2000.
There is no assurance that any Portfolio will achieve its stated objectives.
Owners are also advised to read the prospectuses for each of the Funds
accompanying this Prospectus for more detailed information. Each Fund is subject
to certain investment restrictions which may not be changed without the approval
of a majority of the shareholders of the Fund. See the accompanying prospectuses
for each of the Funds.
DETAILED DESCRIPTION
OF CERTIFICATE BENEFITS
AND PROVISIONS
GENERAL
This Prospectus describes a flexible premium group variable life insurance
policy where the Owner has considerable flexibility in selecting the timing and
amount of premium payments.
ISSUANCE OF A CERTIFICATE
Certificates will only be offered to eligible employees when provided by the
Participating Employer. Individuals wishing to purchase a Certificate must
complete an Enrollment Form In Writing, which must be received by Our Customer
Service Center before a Certificate will be issued. A Certificate will not be
issued with a specified Face Amount of less than the minimum Face Amount.
Acceptance is subject to Hartford's underwriting rules then in effect. Hartford
reserves the right to reject an Enrollment Form for any reason permitted by law.
There are two circumstances under which a Certificate may be issued with a
backdated Coverage Date. The first involves Group Policy rollovers from Section
1035 exchanges under the Code. Backdating will occur in order to prevent a gap
in coverage under the Certificate. Charges and deductions (other than those of
the Portfolios) will be made for the period the Coverage Date is backdated;
however, the Owner will not experience investment return during that time.
Backdating will also occur when an application accompanied by the Initial
Premium is received by Us but issuance of a Certificate is subject to Our
insurance underwriting requirements. The initial Net Premium will be allocated
to the Hartford Money Market Investment Division during the underwriting period.
See "Premiums -- Allocation of Premium Payments" below. If the Insured meets Our
underwriting requirements, a Certificate will be issued with a backdated
Coverage Date. Charges and deductions (other than those of the Portfolios) will
be made for the backdated period. If the Insured does not meet Our underwriting
requirements, no Certificate will be issued and no coverage will have been in
effect. A conditional receipt will be given to the applicant reflecting receipt
of the Initial Premium and outlining any interim coverage in effect until the
Certificate is either issued or declined.
Backdating may only be permitted in certain states.
PREMIUMS
PREMIUM PAYMENT FLEXIBILITY -- A significant feature of the Certificate is
that once the desired level and pattern of the Death Benefit have been
determined, the Owner has considerable flexibility in the selection of the
timing and amount of premiums to be paid and can choose the level of premiums,
within a range determined by Hartford, based on the Face Amount of the
Certificate, the Insured's sex (except where unisex rates apply), Issue Age, and
the Insured's risk classification.
A minimum Initial Premium, as set forth in the Certificate, is due on the
Coverage Date. Unless determined otherwise by Hartford, the amount of the
minimum Initial Premium is the amount which, after the deductions for sales
load, state premium tax, and DAC tax charge, is sufficient (disregarding
investment performance) to pay twelve (12) times the first Monthly Deduction
Amount. Thereafter, additional premiums may be paid at any time, subject to the
premium limitations set forth by the Code as indicated in the section entitled
"Premium Limitation," page 15. You have the right to pay additional premiums of
at least $500.00 at any time.
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HARTFORD LIFE INSURANCE COMPANY 15
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ALLOCATION OF PREMIUM PAYMENTS -- If the state of issue of Your Certificate
requires that We return Your Initial Premium, We will allocate the initial Net
Premium when Your Certificate is issued to the Hartford Money Market Investment
Division until the expiration of the right to examine period. Upon the
expiration of the right to examine period, the initial Net Premium will, at a
later date, be invested according to Your initial allocation instructions
(except that any accrued interest will remain in the Hartford Money Market
Investment Division if it is selected as an initial allocation option). This
later date is the later of ten (10) calendar days after We receive the Initial
Premium and the date We receive the final requirement to put the Certificate in
force. The Certificates are credited with units ("Accumulation Units") in each
selected Investment Division, the assets of which are invested in the
corresponding underlying Portfolio. An Owner may transfer funds among the
Investment Divisions subject to certain restrictions. See "Detailed Description
of Certificate Benefits and Provisions -- Transfers Among Investment Divisions,"
page 16. Any additional premiums received by Us prior to such date will be
allocated to the Hartford Money Market Investment Division.
Alternatively, if the state of issue of Your Certificate provides for Our
return of the Certificate's Cash Value to the Owner, We will allocate the
initial Net Premium immediately among Your chosen Investment Divisions. IN THAT
CASE YOU WILL BEAR FULL INVESTMENT RISK FOR ANY AMOUNTS ALLOCATED TO THE
INVESTMENT DIVISIONS DURING THE RIGHT TO EXAMINE PERIOD. (Please note that this
automatic immediate investment feature only applies if Your Certificate so
specifies. Please check with Your agent to determine the status of Your
Certificate.)
Upon written request, You may change the Net Premium allocation. Portions
alltocated to the Investment Divisions must be whole percentages of 5% or more.
Subsequent Net Premiums will be allocated among Investment Divisions according
to Your most recent instructions, subject to the following. If We receive a
premium and Your most recent allocation instructions would violate the 5%
requirement, We will allocate the Net Premium among the Investment Divisions
according to Your previous premium allocation. If the asset rebalancing option
is in effect, Net Premiums will be allocated accordingly until that option is
terminated. See "Transfers Among Investment Divisions -- Asset Rebalancing,"
page 17.
The Owner will receive several different types of notification as to what
his or her current premium allocation is. The initial allocation chosen by the
Owner on the Enrollment Form is shown in the Certificate. In addition, every
transactional confirmation generated after a premium payment is received will
show how that premium has been allocated. A Certificate's annual statement will
also summarize the current premium allocation in effect for that Certificate.
ACCUMULATION UNITS -- Net Premiums allocated to the Investment Divisions are
used to credit Accumulation Units under the Certificate.
The number of Accumulation Units in each Investment Division to be credited
under the Certificate (including the initial allocation to the Hartford Money
Market Investment Division) will be determined first by multiplying the Net
Premium by the appropriate allocation percentage to determine the portion to be
invested in the Investment Division. Each portion to be invested in an
Investment Division is then divided by the Accumulation Unit Value of that
particular Investment Division next computed following receipt of the payment.
Deductions made for the Monthly Deduction Amount on each Processing Date will
reduce the number of Accumulation Units under the Certificate. See "Deductions
and Charges from Investment Value -- Monthly Deduction Amount," page 21.
ACCUMULATION UNIT VALUES -- The Accumulation Unit value for each Investment
Division will vary daily to reflect the investment experience of the applicable
Portfolio, as well as the daily deduction for mortality and expense risks, and
will be determined on each Valuation Day by multiplying the Accumulation Unit
value of the particular Investment Division on the preceding Valuation Day by a
net investment factor for that Investment Division for the Valuation Period then
ended. The net investment factor for each of the Investment Divisions is equal
to the net asset value per share of the corresponding Portfolio at the end of
the Valuation Period (plus the per share amount of any dividend or capital gain
distributions paid by that Portfolio in the Valuation Period then ended) divided
by the net asset value per share of the corresponding Portfolio at the beginning
of the Valuation Period, less the daily deduction for the mortality and expense
risks assumed by Hartford.
All valuations in connection with a Certificate, e.g., with respect to
determining Cash Value and Investment Value, or calculating the Death Benefit,
or with respect to determining the number of Accumulation Units to be credited
to a Certificate with each premium payment, other than the Initial Premium, will
be made on the date the request or payment is received by Hartford at the
Customer Service Center if such date is a Valuation Day; otherwise such
determination will be made on the next succeeding date which is a Valuation Day.
PREMIUM LIMITATION -- If premiums are received which would cause the
Certificate to fail to meet the definition of a life insurance policy in
accordance with the Code, We will refund the excess premium payments. We will
refund such premium payments and interest thereon within sixty (60) days after
the end of a Coverage Year.
A premium payment that results in an increase in the Death Benefit greater
than the amount of the premium will be accepted only after We approve evidence
of insurability.
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16 HARTFORD LIFE INSURANCE COMPANY
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VALUES UNDER THE CERTIFICATE
As with traditional life insurance, each Certificate will have a Cash
Surrender Value. The Cash Surrender Value is equal to the Cash Value, less Debt,
less any charges accrued but not deducted. There is no minimum guaranteed Cash
Surrender Value. The Cash Value equals the value in the Investment Divisions
plus the Loan Account Value.
Each Certificate will also have an Investment Value. The Investment Value of
a Certificate changes on a daily basis and will be computed on each Valuation
Day. The Investment Value will vary to reflect the investment experience of the
Investment Divisions, Monthly Deduction Amounts and any amounts transferred to
the Loan Account to secure a Loan.
The Investment Value of a particular Certificate is related to the net asset
value of the Portfolios associated with the Investment Divisions to which Net
Premiums on the Certificate have been allocated. The total Investment Value in
the Investment Divisions on any Valuation Day is calculated by multiplying the
number of Accumulation Units in each Investment Division as of the Valuation Day
by the current Accumulation Unit value of that Investment Division and then
summing the result for all the Investment Divisions. The Investment Value equals
the sum of the values of the assets in the Investment Divisions. See "Premiums
- -- Accumulation Unit Values," page 15.
SURRENDER OF THE CERTIFICATE
At any time prior to the Maturity Date, provided the Certificate is in
effect and has a Cash Surrender Value, the Owner may choose, without the consent
of the Beneficiary (provided the designation of the Beneficiary is not
irrevocable) to surrender the Certificate and receive the full Cash Surrender
Value from Us. To surrender a Certificate, You must submit a request for
surrender In Writing. We will determine the Cash Surrender Value as of the
Valuation Day We receive the request In Writing at Our Customer Service Center,
or the date requested by the Owner, whichever is later.
The Cash Surrender Value, which is the net amount available upon surrender
of the Certificate, equals the Cash Value, less Debt, less any charges accrued
but not yet deducted. The Certificate will terminate on the date of receipt of
the written request, or the date the Owner requests the surrender to be
effective, whichever is later.
The Cash Surrender Value may be paid in cash or allocated to any other
payment option agreed upon by Us.
PARTIAL WITHDRAWALS -- At any time before the Maturity Date, and subject to
Hartford's rules then in effect, up to twelve (12) partial withdrawals are
allowed per Coverage Year; however, only one (1) partial withdrawal is allowed
between any successive Processing Dates. The minimum partial withdrawal allowed
is $500.00. The maximum partial withdrawal is an amount equal to the sum of the
Cash Surrender Value plus outstanding Debt, multiplied by .90, less outstanding
Debt. Hartford currently imposes a charge for processing partial withdrawals
which is the lesser of 2% of the amount withdrawn or $25.00. A partial
withdrawal will reduce the Cash Surrender Value, Cash Value and Investment
Value. Any partial withdrawal will have a permanent effect on the Cash Surrender
Value and may have a permanent effect on the Death Benefit payable. If Death
Benefit Option A is in effect, the Face Amount is reduced by the amount of the
partial withdrawal. Unless specified otherwise, partial withdrawals will be
deducted on a Pro Rata Basis from the Investment Divisions. Requests for partial
withdrawals must be made In Writing to Us. The effective date of a partial
withdrawal will be the Valuation Day We receive the request In Writing at Our
Customer Service Center. A 10% penalty tax may be imposed on income distributed
before the insured attains age 59 1/2. See "Federal Tax Considerations --
Modified Endowment Contracts," page 30.
TRANSFERS AMONG INVESTMENT DIVISIONS
AMOUNT AND FREQUENCY OF TRANSFERS -- Upon request and as long as the
Certificate is in effect, You may transfer amounts among the Investment
Divisions, without charge, up to twelve (12) times per Coverage Year. Transfers
in excess of twelve (12) per Coverage Year will be subject to a charge of $50
per transfer deducted from the amount of the transfer. Transfer requests must be
In Writing on a form approved by Hartford or by telephone in accordance with
established procedures. The amounts which may be transferred will be limited by
Our rules then in effect. Currently, the minimum value of Accumulation Units
that may be transferred from one Investment Division to another is the lesser of
(i) $500 or (ii) the total value of the Accumulation Units in the Investment
Division. The value of the remaining Accumulation Units in the Investment
Division must equal at least $500. If, after an ordered transfer, the value of
the remaining Accumulation Units in an Investment Division would be less than
$500, the entire value will be transferred.
Currently there are no restrictions on transfers other than those described
herein. Hartford reserves the right in the future to impose additional
restrictions on transfers.
TRANSFERS TO OR FROM INVESTMENT DIVISIONS -- In the event of a transfer from
an Investment Division, the number of Accumulation Units credited to the
Investment Division from which the transfer is made will be reduced. The
reduction will be determined by dividing:
1. the amount transferred by,
2. the Accumulation Unit value for that Investment Division on the Valuation
Day We receive Your request for transfer In Writing.
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HARTFORD LIFE INSURANCE COMPANY 17
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In the event of a transfer to an Investment Division, We will increase the
number of Accumulation Units credited thereto. The increase will equal:
1. the amount transferred divided by,
2. the Accumulation Unit value for that Investment Division determined on the
Valuation Day We receive Your request for transfer In Writing.
ASSET REBALANCING -- Subject to Our rules then in effect, an Owner may
authorize Hartford to automatically reallocate Investment Value periodically in
order to maintain a particular percentage allocation among the Investment
Divisions as selected by the Owner ("Asset Rebalancing"). The Investment Value
held in each Investment Division will increase or decrease in value at different
rates during the relevant period. Asset Rebalancing is intended to reallocate
Investment Value from those Investment Divisions that have increased in value to
those that have decreased in value.
To elect Asset Rebalancing, a request In Writing must be received by
Hartford. If Asset Rebalancing is elected, all Investment Value must be included
in the automatic reallocation. The percentages selected under Asset Rebalancing
will override any prior percentage allocations chosen by the Owner and all
future Net Premiums will be allocated accordingly. All transfers made pursuant
to Asset Rebalancing on the same day will count as one (1) transfer toward the
twelve (12) transfers permitted without charge per Coverage Year. Once elected,
an Owner may instruct Hartford In Writing at any time to terminate the option.
In addition, any transfer made outside of Asset Rebalancing will terminate the
option.
PROCEDURES FOR TELEPHONE TRANSFERS -- Owners may effect telephone transfers
in two ways. All Owners may directly contact a customer service representative.
Owners may in the future also request access to an electronic service known as a
Voice Response Unit (VRU). The VRU will permit the transfer of monies among the
Investment Divisions and change of the allocation of future payments. All Owners
intending to conduct telephone transfers through the VRU will be asked to
complete a Telephone Authorization Form.
Hartford will undertake reasonable procedures to confirm that instructions
communicated by telephone are genuine. Before a customer service representative
accepts any request, the caller will be asked for his or her social security
number and address. All calls will also be recorded. A Personal Identification
Number (PIN) will be assigned to all Owners who request VRU access. The PIN is
selected by and known only to the Owner. Proper entry of the PIN is required
before any transactions will be allowed through the VRU. Furthermore, all
transactions performed over the VRU, as well as with a customer service
representative, will be confirmed by Hartford through a written letter.
Moreover, all VRU transactions will be assigned a unique confirmation number
which will become part of the Certificate's history. Hartford is not liable for
any loss, cost or expense for action on telephone instructions which are
believed to be genuine in accordance with these procedures.
VALUATION OF PAYMENTS AND TRANSFERS
We value the Certificate on every Valuation Day.
We will generally pay Death Proceeds, Cash Surrender Values, partial
withdrawals, and Loan amounts attributable to the Investment Divisions within
seven (7) calendar days after We receive all the information needed to process
the payment unless the NYSE is closed for other than a regular holiday or
weekend, trading is restricted by the SEC or the SEC declares that an emergency
exists.
Hartford may defer payment of any amounts not attributable to the Investment
Divisions for up to six months from the date on which We receive the request.
PROCESSING OF TRANSACTIONS -- Generally, transactions initiated by an Owner
will be processed only on a Valuation Day. Requests received by Hartford on a
Valuation Day before the close of trading on the NYSE (generally 4:00 p.m.
Eastern Time) will be processed as of that day, except as otherwise indicated in
this Prospectus. Those requests received after the close of the NYSE will be
processed as of the next Valuation Day.
LOANS
As long as the Certificate is in effect, an Owner may obtain, without the
consent of the Beneficiary (provided the designation of Beneficiary is not
irrevocable), a cash Loan from Hartford. The maximum Loan amount is equal to the
sum of the Cash Surrender Value plus outstanding Debt, multiplied by .90, less
outstanding Debt.
The amount of each Loan will be transferred on a Pro-Rata Basis from each of
the Investment Divisions (unless the Owner specifies otherwise) to the Loan
Account. The Loan Account is the mechanism used to ensure that any outstanding
Debt remains fully secured by the Investment Value.
LOAN INTEREST -- Interest will accrue daily on outstanding Debt at the
Adjustable Loan Interest Rate indicated in the Certificate. The difference
between the value of the Loan Account and any outstanding Debt will be
transferred from the Investment Divisions to the Loan Account on each
Certificate Anniversary. Interest payments are due as shown in the Certificate.
If interest is not paid within 5 days of its due date, it will be added to the
amount of the Loan as of its due date.
The maximum Adjustable Loan Interest Rate We may charge for Loans is the
greater of 5% and the Published Monthly Average for the calendar month two
months prior to the date on which the Adjustable Loan Interest Rate is
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18 HARTFORD LIFE INSURANCE COMPANY
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determined. The Published Monthly Average means the "Moody's Corporate Bond
Yield Average -- Monthly Average Corporate" as published by Moody's Investors
Service, Inc. or any successor to that service. If that monthly average is no
longer published, a substitute average will be used.
CREDITED INTEREST -- Amounts in the Loan Account for Coverage Years 1
through 10 will be credited with interest at a rate equal to the Adjustable Loan
Interest Rate then in effect, minus 1%. Amounts in the Loan Account for Coverage
Years 11 and later will be credited with interest at a rate equal to the
Adjustable Loan Interest Rate then in effect, minus .20%.
LOAN REPAYMENTS -- You can repay any part of or the entire Loan at any time.
The amount of the Loan repayment will be allocated to Your chosen Investment
Divisions on a Pro Rata Basis, determined as of the date of the Loan repayment.
Unless specified otherwise, additional premium payments received by Hartford
during the period when a Loan is outstanding will be treated as Loan repayments.
TERMINATION DUE TO EXCESSIVE DEBT -- If total Debt outstanding equals or
exceeds the Cash Surrender Value, the Certificate will terminate thirty-one (31)
calendar days after We have mailed notice to Your last known address and that of
any assignees of record. If sufficient Loan repayment is not made by the end of
this 31-day period, the Certificate will terminate without value.
EFFECT OF LOANS ON INVESTMENT VALUE -- A Loan, whether or not repaid, will
have a permanent effect on the Investment Value because the investment results
of each Investment Division will apply only to the amount remaining in such
Investment Divisions. The longer a Loan is outstanding, the greater the effect
is likely to be. The effect could be favorable or unfavorable. If the Investment
Divisions earn more than the annual interest rate for funds held in the Loan
Account, an Owner's Investment Value will not increase as rapidly as it would
have had no Loan been made. If the Investment Divisions earn less than the Loan
Account, the Owner's Investment Value will be greater than it would have been
had no Loan been made. Also, if not repaid, the aggregate amount of outstanding
Debt will reduce the Death Proceeds and Cash Surrender Value otherwise payable.
DEATH BENEFIT
As long as the Certificate remains in force, the Certificate provides for
the payment of the Death Proceeds to the named Beneficiary when the Insured
under the Certificate dies. The Death Proceeds payable to the Beneficiary equal
the Death Benefit less any Debt outstanding under the Certificate plus any rider
benefits payable. The Death Benefit depends on the Death Benefit option You
select and is determined as of the date of the death of the Insured.
MINIMUM DEATH BENEFIT TESTING PROCEDURES -- Section 7702 of the Code defines
alternative testing procedures, the guideline premium test ("GPT") and the cash
value accumulation test ("CVAT") in order to meet the definition of life
insurance under the Code. See "Federal Tax Considerations -- Income Taxation of
Certificate Benefits," page 30. Each Certificate must qualify under either the
GPT or the CVAT. Prior to issue, the Owner chooses the procedure under which a
Certificate will qualify. Once either the GPT or the CVAT is chosen to test a
Certificate, it cannot be changed while the Certificate is in force.
Under both testing procedures, there is a minimum Death Benefit required at
all times equal to the Variable Insurance Amount. This is necessary in order for
the Certificate to meet the current Federal tax definition of life insurance,
which places limitations on the amount of premiums that may be paid and the Cash
Values that can accumulate relative to the Death Benefit. The factors used to
determine the Variable Insurance Amount depend on the testing procedure chosen
and are set forth in the Certificate.
Under the GPT, there is also a maximum amount of premium which may be paid
with respect to each Certificate.
Use of the CVAT can be advantageous if an Owner intends to maximize the
total amount of premiums paid under a Certificate. An offsetting consideration,
however, is that the factors used to determine the Variable Insurance Amount are
higher under the CVAT, which can result in a higher Death Benefit over time and
thus, a higher total cost of insurance.
DEATH BENEFIT OPTIONS -- Regardless of the minimum death benefit testing
procedure chosen, there are two Death Benefit options: Death Benefit Option A
and Death Benefit Option B.
1. Under Death Benefit Option A, the Death Benefit is the greater of (a) the
Face Amount and (b) the Variable Insurance Amount.
2. Under Death Benefit Option B, the Death Benefit is the greater of (a) the
Face Amount plus the Cash Value and (b) the Variable Insurance Amount.
Regardless of which Death Benefit option You select, the maximum amount
payable under such option will be the Death Proceeds.
OPTION CHANGE -- While the Certificate is in force, You may change the Death
Benefit option selected under a Certificate by making a request In Writing
during the lifetime of the Insured. If the change is from Death Benefit Option A
to Death Benefit Option B, satisfactory evidence of insurability must be
provided to Hartford. The Face Amount after the change will be equal to the Face
Amount before the change, less the Cash Value on the effective date of the
change. If the change is from Death Benefit Option B
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HARTFORD LIFE INSURANCE COMPANY 19
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to Death Benefit Option A, the Face Amount after the change will be equal to the
Face Amount before the change plus the Cash Value on the effective date of
change. Any change in the selection of a Death Benefit option will become
effective at the beginning of the Coverage month following Hartford's approval
of such change. We will notify You that the change has been made.
All or part of the Death Proceeds may be paid in cash or applied under one
of the payment options described below.
PAYMENT OPTIONS -- Death Proceeds under the Certificate may be paid in a
lump sum or may be applied to one of Hartford's payment options. The minimum
amount that may be placed under a payment option is $5,000 unless Hartford
consents to a lesser amount. Once payments under payment options 2, 3 or 4
commence, no surrender of the Certificate may be made for the purpose of
receiving a lump sum settlement in lieu of the life insurance payments. The
following options are available under the Certificates:
FIRST OPTION -- Interest Income
Payments of interest at the rate We declare, but not less than 3% per year,
on the amount applied under this option.
SECOND OPTION -- Income of Fixed Amount
Equal payments of the amount chosen until the amount applied under this
option, with interest of not less than 3% per year, is exhausted. The final
payment will be for the balance remaining.
THIRD OPTION -- Payments for a Fixed Period
An amount payable monthly for the number of years selected which may be from
1 to 30 years.
FOURTH OPTION -- Life Income
LIFE ANNUITY -- an annuity payable monthly during the lifetime of the
Annuitant and terminating with the last monthly payment due preceding the
death of the Annuitant. Under this option, it is possible that only one
monthly annuity payment would be made, if the Annuitant died before the
second monthly annuity payment was due.
LIFE ANNUITY WITH 120 MONTHLY PAYMENTS CERTAIN -- an annuity providing
monthly income to the Annuitant for a fixed period of 120 months and for
as long thereafter as the Annuitant shall live.
The fourth payment option is based on the 1983a Individual Annuity Mortality
Table set back one year and a net investment rate of 3% per annum. The amount of
each payment under this option will depend upon the age of the Annuitant at the
time the first payment is due. If any periodic payment due any payee is less
than $200, Hartford may make payments less often. The first, second and third
payment options are based on a net investment rate of 3% per annum. Hartford
may, however, from time to time, at Our discretion if mortality appears more
favorable and interest rates justify, apply other tables which will result in
higher monthly payments for each $1,000 applied under one or more of the four
payment options.
Hartford will make any other arrangements for income payments as may be
agreed on.
LEGAL DEVELOPMENTS REGARDING INCOME PAYMENTS -- In those states affected by
the 1983 Supreme Court decision in Arizona Governing Committee v. Norris, income
payment options involving life income are based on unisex actuarial tables. In
addition, legislation has previously been introduced in Congress which, had it
been enacted, would have required the use of tables that do not vary on the
basis of sex for some or all annuities. Currently, several states have enacted
such laws.
BENEFICIARY -- The Owner names the Beneficiary in the Enrollment Form for
the Certificate. The Owner may change the Beneficiary (unless irrevocably named)
during the Insured's lifetime by written request to Hartford. If no Beneficiary
is living when the Insured dies, the Death Proceeds will be paid to the Owner if
living; otherwise to the Owner's estate.
INCREASES AND DECREASES IN FACE AMOUNT -- The minimum Face Amount of the
Certificate is $50,000. At any time after purchasing a Certificate, the Owner
may request a change in the Face Amount by making a request In Writing to
Hartford and directing such request to Hartford's Customer Service Center.
All requests to increase the Face Amount must be applied for on a new
Enrollment Form. All requests will be subject to evidence of insurability
satisfactory to Hartford and subject to Our rules then in effect. Any increase
approved by Us will be effective on the Processing Date following the date We
approve the request. The Monthly Deduction Amount on the first Processing Date
on or after the effective date of the increase will reflect a charge for the
increase. A decrease in the Face Amount will be effective on the first
Processing Date following the date We receive the request. Decreases must reduce
the Face Amount by at least $25,000, and the remaining Face Amount must not be
less than $50,000. Decreases will be applied:
(a) to the most recent increase; then
(b) successively to each prior increase, and then
(c) to the initial Face Amount.
We reserve the right to limit the number of Face Amount increases or
decreases made under the Certificate to no more than one in any twelve (12)
month period.
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BENEFITS AT MATURITY
If the Insured is living on the Maturity Date, on surrender of the
Certificate to Hartford, Hartford will pay to the Owner the Cash Surrender Value
on the date the Certificate is surrendered. However, on the Maturity Date, the
Certificate will terminate and Hartford will have no further obligations under
the Certificate.
TERMINATION OF PARTICIPATION
IN THE GROUP POLICY
Participation in the Group Policy may be terminated by Hartford or the
Participating Employer. The party initiating the termination must provide notice
of such termination to each Owner of record, at his or her last known address,
at least fifteen (15) days prior to the date of termination. In the event of
such termination, no new Enrollment Forms for new Insureds will be accepted on
or after the date notice of discontinuance is received or sent by Hartford,
whichever is applicable, nor will any new Certificates be issued. If premium
payments are discontinued, Hartford will continue insurance coverage under the
Certificate as long as the Cash Surrender Value is sufficient to cover the
charges due. This continuation of insurance will not continue the coverage under
the Certificate beyond Attained Age 100, nor will it continue any optional
benefit rider beyond the Certificate's date of termination. If the Group Policy
is discontinued or amended to discontinue the eligible class to which an Insured
belongs (and if the coverage on the Insured is not transferred to another
insurance carrier), any Certificate then in effect will remain in force under
the discontinued Group Policy, provided it is not canceled or surrendered by the
Owner, subject to Hartford's qualifications then in effect. Certificate premiums
will then be payable by the Owner Directly to Us.
LAPSE AND REINSTATEMENT WHILE
THE GROUP POLICY IS IN EFFECT
LAPSE AND GRACE PERIOD -- A Grace Period will follow the date We mail notice
to the Owner that the Cash Surrender Value is insufficient to pay the charges
due under the Certificate. Unless the Owner has given Hartford written notice of
termination in advance of the date of termination of the Certificate, insurance
will continue in force during the Grace Period. The Owner will be liable to
Hartford for all charges due under the Certificate then unpaid for the period
the Certificate remains in force.
In the event that total Debt outstanding equals or exceeds the Cash
Surrender Value, the Certificate will terminate thirty-one (31) calendar days
after We have mailed notice to Your last known address and that of any assignees
of record. If sufficient Loan repayment is not made by the end of this 31-day
period, the Certificate will terminate without value.
REINSTATEMENT -- Prior to the death of the Insured, and unless (i) the Group
Policy is terminated (see "Termination of Participation in the Group Policy"
above) or (ii) the Certificate has been surrendered for cash, the Certificate
may be reinstated prior to the Maturity Date, provided:
(a) you make Your request within three (3) years of the date of lapse; and
(b) satisfactory evidence of insurability is submitted.
We will not require evidence of insurability, however, if You reinstate Your
Certificate within one month after the end of the Grace Period, provided that
the Insured is alive.
To reinstate Your Certificate, you must remit a premium payment large enough
to keep the coverage under the Certificate in force for at least three (3)
months following the date of reinstatement. The Face Amount of the reinstated
Certificate cannot exceed the Face Amount at the time of lapse. The Investment
Value on the reinstatement date will reflect:
(a) The Investment Value at the time of termination; plus
(b) Net Premiums attributable to premiums paid at the time of reinstatement.
Upon reinstatement, any Debt at the time of termination must be repaid or
carried over to the reinstated Certificate.
ENROLLMENT FOR A CERTIFICATE
Individuals wishing to purchase a Certificate must submit an Enrollment Form
to Hartford. Within limits, an applicant may choose the Initial Premium and the
initial Face Amount. A Certificate generally will be issued only on the lives of
Insureds Attained Age 79 and under who supply evidence of insurability
satisfactory to Hartford. Acceptance is subject to Hartford's underwriting rules
and Hartford reserves the right to reject an Enrollment Form for any reason. No
change in the terms or conditions of a Certificate will be made without the
consent of the Owner.
The Certificate will be effective on the Coverage Date only after Hartford
has received all outstanding delivery requirements and received the Initial
Premium. The Coverage Date is the date used to determine all future cyclical
transactions on the Certificate, e.g., Processing Date, Coverage Months and
Coverage Years.
THE RIGHT TO EXAMINE THE CERTIFICATE
An Owner has a limited right to return a Certificate. Subject to applicable
state regulation, if the Certificate is returned, by mail or personal delivery
to Hartford or to the agent who sold the Certificate, to be canceled within ten
(10) calendar days after delivery of the Certificate to the Owner, Hartford will
return either (i) the total amount of
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 21
- --------------------------------------------------------------------------------
premiums or (ii) the Cash Value plus charges deducted under the Certificate to
the Owner within seven (7) days. If the state where Your Certificate is issued
requires that We return Your Initial Premium, We will allocate Your initial Net
Premium to the Hartford Money Market Investment Division. If the state of issue
of Your Certificate provides for Our return of the Certificate's Cash Value to
the Owner, We will allocate the initial Net Premium immediately among Your
chosen Investment Divisions.
DEDUCTIONS FROM PREMIUM
Before allocating the Net Premium to the Investment Divisions, a deduction
as a percentage of premium is made for the front-end sales load, premium taxes
and the DAC tax charge. The amount of each premium allocated to the Investment
Divisions is Your Net Premium.
FRONT-END SALES LOAD -- The current front-end sales load is 6.75% of any
premium paid for Coverage Years 1 through 7 and 4.75% of any premium paid in
Coverage Years 8 and later. The maximum front-end sales load is 9% of any
premium paid in Coverage Years 1 through 7 and 7% of any premium paid in
Coverage Years 8 and later.
Front-end sales loads cover expenses related to the sale and distribution of
the Certificates. The front-end sales load may be reduced for certain sales of
the Certificates under circumstances which result in a saving of such sales and
distribution expenses. To qualify for such a reduction, a plan must satisfy
certain criteria as to, for example, the expected number of Owners and the
anticipated Face Amount of all Certificates under the plan. Generally, the sales
contacts and effort and administrative costs per Certificate vary based on such
factors as the size of the plan, the purpose for which Certificates are
purchased and certain characteristics of the plan's members. The amount of
reduction and the criteria for qualification are related to the reduced sales
effort and administrative costs resulting from sales to qualifying plans.
Hartford may modify from time to time on a uniform basis both the amounts of
reductions and the criteria for qualification. Reductions in these charges will
not be unfairly discriminatory against any person, including the affected Owners
funded by the Separate Account.
PREMIUM RELATED TAX CHARGE -- We deduct a percentage of each premium to
cover state and local taxes assessed against Hartford that are attributable to
premiums. This percentage will vary by locale depending on the tax rates in
effect there. The range of premium taxes actually deducted by Hartford currently
ranges from 0% to 4%.
DAC TAX CHARGE -- Hartford deducts 1.25% of each premium to cover a federal
premium tax assessed against Hartford. This charge is reasonable in relation to
Hartford's federal income tax burden, under Section 848 of the Code, resulting
from the receipt of premiums. We will adjust this charge based on changes in the
applicable tax law.
DEDUCTIONS AND CHARGES
FROM INVESTMENT VALUE
MONTHLY DEDUCTION AMOUNT -- On the Coverage Date and on each subsequent
Processing Date, Hartford will deduct the Monthly Deduction Amount from the
Investment Value to cover certain charges and expenses incurred in connection
with a Certificate. The Monthly Deduction Amount will vary from month to month.
It will be taken from the Charge Deduction Division, if designated in the
Enrollment Form for the Certificate or later elected.
If a Charge Deduction Division has been designated but the Investment Value
in the Charge Deduction Division is less than that required to cover all charges
due on such date:
(1) Hartford will apply the Investment Value of the Charge Deduction Division to
the charges due and set the Investment Value in the Charge Deduction
Division to zero; and
(2) any additional amount due will be allocated among the remaining Investment
Divisions on a Pro Rata Basis.
If no Charge Deduction Division has been designated or elected, any amounts
due will be allocated among the Owner's chosen Investment Divisions on a Pro
Rata Basis.
The Monthly Deduction Amount equals:
(a) the administrative expense charge; plus
(b) the charges for cost of insurance; plus
(c) the charges for additional benefits provided by rider, if any.
(A) Monthly Administrative Fee and Other Expense Charges
Hartford will assess a monthly administrative charge to compensate
Hartford for administrative costs in connection with the Certificates. This
charge will be $5 per Coverage Month initially and is guaranteed never to
exceed $10.00 per Coverage Month.
(B) Cost of Insurance Charge
The charge for the cost of insurance is equal to:
(i) the cost of insurance rate per $1,000; multiplied by
(ii) the Net Amount at Risk; divided by
(iii) $1,000.
The Net Amount at Risk equals the Death Benefit less the Cash Value on
that date.
<PAGE>
22 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
The cost of insurance charge is to cover Hartford's anticipated mortality
costs. Hartford uses various underwriting procedures, including medical
underwriting procedures, depending on the characteristics of the group to
which the Group Policies are issued. The current cost of insurance rates
for standard risks may be equal to or less than the 1980 Commissioners
Standard Ordinary Mortality Table. Substandard risks will be charged a
higher cost of insurance rate that will not exceed rates based on a
multiple of the 1980 Commissioners Standard Ordinary Mortality Table. The
multiple will be based on the Insured's risk class. The use of simplified
underwriting and guaranteed issue procedures may result in the cost of
insurance charges being higher for some individuals than if medical
underwriting procedures were used.
Cost of insurance rates are based on the age, sex (except where unisex
rates apply), and rate class of the Insured and group mortality
characteristics and the particular characteristics (such as the rate class
structure) under the Group Policy that are agreed to by Hartford and the
Participating Employer. The actual monthly cost of insurance rates will be
based on Hartford's expectations as to future experience. Hartford will
determine the cost of insurance rate at the start of each Coverage Year. Any
changes in the cost of insurance rate will be made uniformly for all
Insureds in the same risk class.
The rate class of an Insured affects the cost of insurance rate. Hartford
and the Participating Employer will agree to the number of classes and
characteristics of each class. The classes may vary by smokers and
nonsmokers, active and retired status, and/or any other nondiscriminatory
classes agreed to by the Participating Employer. Where smoker and non-smoker
divisions are provided, an Insured who is in the nonsmoker division of a
rate class will have a lower cost of insurance than an Insured in the smoker
division of the same rate class, even if each Insured has an identical
Certificate.
Because the Cash Value and the Death Benefit Amount under a Certificate
may vary from month to month, the cost of insurance charge may also vary on
each Processing Date.
(C) Rider Charge
If the Certificate includes riders, a charge is deducted from the
Investment Value on each Processing Date. The applicable charge is specified
on the rider and is to compensate Hartford for the anticipated cost of
providing the benefits thereunder.
The riders available under the Certificate are described on page 24 under
"Supplemental Benefits."
MORTALITY AND EXPENSE RISK CHARGE
A charge is made for mortality and expense risks assumed by Hartford.
Hartford currently deducts a daily charge for Coverage Years 1 through 10 at an
effective annual rate of .65% of the value of each Investment Division's assets
and for Coverage Years 11 and later at an effective annual rate of .50% of an
Investment Division's assets. In no event will the charge exceed .65% of an
Investment Division's assets on an annual basis. See also "Premiums --
Accumulation Unit Values," page 15.
The mortality and expense risk charge is equal to:
(i) the mortality and expense risk rate; multiplied by
(ii) the portion of the Cash Value allocated to the Investment Divisions and
the Loan Account.
The mortality risk assumed is that the actual cost of insurance charges
specified in the Certificate will be insufficient to meet actual claims. The
expense risk assumed is that expenses incurred in issuing and administering the
Certificates will exceed the administrative charges set forth therein.
If these charges are insufficient to cover actual costs and assumed risks,
the loss will fall on Hartford. Conversely, if the charge proves more than
sufficient, any excess will be added to Hartford's surplus.
TAXES
Currently, no charge is made to the Separate Account for federal, state, and
local taxes that may be attributable to the Separate Account. A change in the
applicable federal, state or local tax laws which impose tax on Hartford and/or
the Separate Account may result in a charge against the Certificates in the
future. Charges for other taxes, if any, attributable to the Separate Account
may also be made.
OTHER MATTERS
ADDITIONS, DELETIONS OR
SUBSTITUTIONS OF INVESTMENTS
Hartford reserves the right, subject to compliance with the law as then in
effect, to make additions to, deletions from, or substitutions for the Separate
Account and the Investment Divisions which fund the Group Policies. If shares of
any of the Portfolios should no longer be available for investment, or if, in
the judgment of Hartford's management, further investment in shares of any
Portfolio should become inappropriate in view of the purposes of the Group
Policies, Hartford may substitute shares of another Portfolio for shares already
purchased, or to be purchased in the
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 23
- --------------------------------------------------------------------------------
future, under the Group Policies. No substitution of securities will take place
without notice to and consent of Owners and without prior approval of the SEC to
the extent required by the 1940 Act. Subject to Owner approval, if required,
Hartford also reserves the right to end the registration under the 1940 Act of
the Separate Account or any other separate accounts of which it is the depositor
which may fund the Group Policy.
VOTING RIGHTS
In accordance with its view of presently applicable law, Hartford will vote
the shares of the Funds at regular and special meetings of the shareholders of
the Funds in accordance with instructions from Owners (or the assignee of the
Certificates, as the case may be) having a voting interest in the Separate
Account. The number of shares held in the Separate Account which are
attributable to each Owner is determined by dividing the Owner's interest in
each Investment Division by the net asset value of the applicable shares of the
Funds. Hartford will vote shares for which no instructions have been given and
shares which are not attributable to Owners (i.e., shares owned by Hartford) in
the same proportion as it votes shares for which it has received instructions.
If the 1940 Act or any rule promulgated thereunder should be amended, however,
or if Hartford's present interpretation should change and, as a result, Hartford
determines it is permitted to vote the shares of the Funds in its own right, it
may elect to do so.
The voting interests of the Owners (or the assignees) in the Funds will be
determined as follows: Owners may cast one vote for each full or fractional
Accumulation Unit owned under their respective Certificates and allocated to an
Investment Division the assets of which are invested in the particular Fund on
the record date for the shareholder meeting for that Fund. If, however, an Owner
has taken a Loan secured by the Certificate, amounts transferred from the
Investment Division(s) to the Loan Account(s) in connection with the Loan (see
"Detailed Description of Certificate Benefits and Provisions -- Loans," page 17)
will not be considered in determining the voting interests of the Owner. Owners
should review the prospectuses for the Funds which accompany this Prospectus to
determine matters on which shareholders may vote.
Hartford may, when required by state insurance regulatory authorities,
disregard voting instructions if the instructions require that the shares be
voted so as to cause a change in the sub-classification or investment objective
of one or more of the Funds or to approve or disapprove an investment advisory
policy for the Funds. In addition, Hartford itself may disregard voting
instructions in favor of changes initiated by an Owner in the investment policy
or the investment adviser of the Funds if Hartford reasonably disapproves of
such changes. A change would be disapproved only if the proposed change is
contrary to state law or prohibited by state regulatory authorities. In the
event Hartford does disregard voting instructions, a summary of that action and
the reasons for such action will be included in the next periodic report to
Owners.
OUR RIGHTS
We reserve the right to take certain actions in connection with Our
operations and the operations of the Separate Account. These actions will be
taken in accordance with applicable laws (including obtaining any required
approval of the SEC). If necessary, We will seek approval by Owners.
Specifically, We reserve the right to:
- - Add or remove any Investment Division;
- - Create new separate accounts;
- - Combine the Separate Account with one or more other separate accounts;
- - Operate the Separate Account as a management investment company under the 1940
Act or in any other form permitted by law;
- - Deregister the Separate Account under the 1940 Act;
- - Manage the Separate Account under the direction of a committee or discharge
such committee at any time;
- - Transfer the assets of the Separate Account to one or more other separate
accounts; and
- - Restrict or eliminate any of the voting rights of Owners or other persons who
have voting rights as to the Separate Account.
Hartford also reserves the right to change the name of the Separate Account.
We have reserved all rights to the name of Hartford Life Insurance Company
or any part of it. We may allow the Separate Account and other entities to use
Our name or part of it, but We may also withdraw this right.
STATEMENTS TO OWNERS
We will send You a statement at least once each Coverage Year, showing:
(a) the current Cash Value, Cash Surrender Value and Face Amount;
(b) the premiums paid, Monthly Deduction Amounts and Loans since the last
report;
(c) the amount of any outstanding Debt;
(d) notifications required by the provisions of the Certificate; and
(e) any other information required by the Insurance Department of the State
where the Certificate was delivered.
<PAGE>
24 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
LIMIT ON RIGHT TO CONTEST
Hartford may not contest the validity of the Certificate after it has been
in effect during the Insured's lifetime for two years from the Issue Date. If
the Certificate is reinstated, the two-year period is measured from the date of
reinstatement. Any increase in the Face Amount as a result of a premium payment
is contestable for two years from its effective date. In addition, if the
Insured commits suicide in the two-year period, or such period as specified in
state law, the Death Benefit payable will be limited to the premiums paid less
any outstanding Debt and partial withdrawals.
MISSTATEMENT AS TO AGE OR SEX
If the age or sex of the Insured is incorrectly stated, the amount of all
benefits payable will be appropriately adjusted, as specified in the
Certificate.
ASSIGNMENT
The Certificate may be assigned as collateral for a loan or other
obligation. Hartford is not responsible for any payment made or action taken
before receipt of written notice of such assignment. Proof of interest must be
filed with any claim under a collateral assignment.
DIVIDENDS
No dividends will be paid under the Certificates.
EXPERIENCE CREDITS
The Certificates issued under a Group Policy may be eligible for experience
credits due to administrative savings. The amount of any experience credit may
be paid in cash or applied to and used to increase the Investment Value.
SUPPLEMENTAL BENEFITS
The following supplemental benefit may in the future be included in a
Certificate, subject to the restrictions and limitations set forth therein.
MATURITY DATE EXTENSION RIDER
We will extend the Maturity Date (the date on which the Certificate will
mature), to the date of death of the Insured. Certain Death Benefit and premium
restrictions apply. See "Federal Tax Considerations -- Income Taxation of
Certificate Benefits," page 30.
EXECUTIVE OFFICERS AND DIRECTORS
<TABLE>
<CAPTION>
POSITION WITH HARTFORD LIFE, OTHER BUSINESS PROFESSION, VOCATION OR EMPLOYMENT
NAME, AGE YEAR OF ELECTION FOR PAST 5 YEARS; OTHER DIRECTORSHIPS
- -------------------------------- ------------------------------------- ----------------------------------------------------------
<S> <C> <C>
Ahn, Dong H., 37 Vice President, 1998 Vice President (1998-Present), Hartford Life and Accident
Insurance Company, Director Small Business Priority
Accounts (1995-present), Hartford; Director of Accounts
Management and Employee Benefits (1985-1995), Traveler's
Insurance Company.
Bossen, Wendell J., 64 Vice President, 1992** Vice President (1992-Present), Hartford Life and Accident
Insurance Company; President (1992-Present),
International Corporate Marketing Group, Inc.; Executive
Vice President (1984-1992), Mutual Benefit.
Boyko, Gregory A., 46 Senior Vice President, Chief Vice President and Controller (1995-1997), Hartford;
Financial Officer & Director (1997-Present); Senior Vice President, Chief
Treasurer, 1997 Financial Officer & Treasurer (1997-Present); Vice
Director, 1997* President & Controller (1995-1997), Hartford Life and
Accident Insurance Company; Senior Vice President, Chief
Financial Officer & Treasurer (1997-Present), Hartford
Life, Inc.; Chief Financial Officer (1994-1995), IMG
American Life; Senior Vice President (1992-1994),
Connecticut Mutual Life Insurance Company.
</TABLE>
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 25
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POSITION WITH HARTFORD LIFE, OTHER BUSINESS PROFESSION, VOCATION OR EMPLOYMENT
NAME, AGE YEAR OF ELECTION FOR PAST 5 YEARS; OTHER DIRECTORSHIPS
- -------------------------------- ------------------------------------- ----------------------------------------------------------
<S> <C> <C>
Cummins, Peter W., 60 Senior Vice President, 1997 Vice President (1989-1997); Director of Broker Dealer
Sales-ILAD (1989-1992), Hartford; Senior Vice President
(1997-Present) Vice President (1989-1997); Director of
Broker Dealer Sales-ILAD (1989-1991), Hartford Life and
Accident Insurance Company.
deRaismes, Ann M., 47 Senior Vice President, 1997 Vice President (1994-1997); Assistant Vice President
Director of Human Resources, (1992-1994); Hartford; Senior Vice President
1991 (1997-Present); Director of Human Resources
(1991-Present); Vice President (1994-1997); Assistant
Vice President (1992-1994); Hartford Life and Accident
Insurance Company; Vice President, Human Resources
(1997-Present), Hartford Life, Inc.
Fitch, Timothy M., 45 Vice President, 1995 Assistant Vice President (1992-1995), Hartford; Vice
Actuary, 1994 President (1995-Present); Actuary (1994-Present);
Assistant Vice President (1992-1995), Hartford Life and
Accident Insurance Company.
Foy, David T., 31 Vice President, 1998 Senior Vice President (1998-present), Vice President
(1998), Assistant Vice President (1995-1998), Hartford;
Vice President (1998-Present), Hartford Life and
Accident Insurance Company; Director, Strategic Planning
Corporate Finance (1995-1996), IA Product Development
(1994-1995), Hartford; Various Actuarial Roles
(1989-1993), Milliman & Robertson.
Gardner, Bruce D., 47 Vice President, 1995 Director (1994-1997); General Counsel & Corporate
Secretary (1991-1995), Hartford; Vice President
(1995-1997); Director (1995-1997); General Counsel &
Corporate Secretary (1991-1995), Hartford Life and
Accident Insurance Company.
Garrett, J. Richard, 53 Vice President, 1993 Treasurer (1986-1997), Hartford; Vice President
Assistant Treasurer, 1997 (1993-Present); Assistant Treasurer (1997-Present);
Treasurer (1983-1997), Hartford Life and Accident
Insurance Company; Treasurer (1977), The Hartford
Financial Services Group.
Ginnetti, John P., 52 Executive Vice President Senior Vice President-Individual Life and Annuity Division
and Director, Asset (1988-1994), Hartford; Director (1988-Present); Director
Management Services, 1994 (1988-Present); Executive Vice President & Director,
Director, 1988* Asset Management Services (1994-Present); Senior Vice
President-Individual Life and Annuity Division
(1988-1994), Hartford Life and Accident Insurance
Company; Executive Vice President, Asset Management,
Hartford Life, Inc. (1997-Present).
Godfrey, III, William A., 41 Senior Vice President, 1997 Senior Vice President (1997-Present), Hartford; Senior
Vice President (1997-Present), Hartford Life and
Accident Insurance Company; Vice President Information
Technology (1997-Present), Hartford Life, Inc.
</TABLE>
<PAGE>
26 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POSITION WITH HARTFORD LIFE, OTHER BUSINESS PROFESSION, VOCATION OR EMPLOYMENT
NAME, AGE YEAR OF ELECTION FOR PAST 5 YEARS; OTHER DIRECTORSHIPS
- -------------------------------- ------------------------------------- ----------------------------------------------------------
<S> <C> <C>
Godkin, Lynda, 44 Senior Vice President, 1997 Associate General Counsel (1995-1996); Assistant General
General Counsel, 1996 Counsel and Secretary (1994-1995), Counsel (1990-1994),
Corporate Secretary, 1995 Hartford; Director (1997-Present); Senior Vice President
Director, 1997* (1997-Present); General Counsel (1996-Present);
Corporate Secretary (1995-Present); Associate General
Counsel (1995-1996); Assistant General Counsel and
Secretary (1994-1995); Counsel (1990-1994), Hartford
Life and Accident Insurance Company; Vice President and
General Counsel (1997-Present), Hartford Life, Inc.
Grady, Lois W., 53 Senior Vice President, 1998 Vice President (1993-1998); Assistant Vice President
Vice President, 1993 (1987-1993), Hartford; Senior Vice President (1998);
Vice President (1993-1997); Assistant Vice President
(1987-1993), Hartford Life and Accident Insurance
Company.
Graham, Christopher, 47 Vice President, 1997 Vice President (1996-Present), Hartford; Vice President,
Senior Vice President New Business and Claims
(1993-1996), National Life of Vermont.
Hunt, Mark E., 37 Vice President, 1998 Assistant Vice President (1997-1998), Hartford; Vice
President (1998-Present), Assistant Vice President
(1997-1998), Hartford Life and Accident Insurance
Company; Director Asset Allocation/Asset Liability
Management Senior Investment Officer, Associate Actuary,
Assistant Actuary, Senior Actuary Associate, Connecticut
Mutual Life (1987-1996).
Joyce, Stephen T., 39 Vice President, 1997 Director of Annuity Bank Distribution (1990-Present),
Assistant Vice President (1994-1997), Hartford;
Assistant Vice President (1994-1997), Hartford Life and
Accident Insurance Company.
Keeler, Michael D., 37 Vice President, 1998 Vice President (1998-Present); Hartford Life and Accident
Insurance Company; Vice President (1995-1997), Providian
Insurance; Supervisor, Manager (1985-1995), U.S. West
Communications.
Kerzner, Robert A., 46 Senior Vice President, 1998 Vice President (1995-1998); Regional Vice President
Vice President, 1997 (1991-1994), Hartford, Vice President (1994-1997),
Hartford Life and Accident Insurance Company.
Levenson, David N., 31 Vice President, 1998 Assistant Vice President (1995-Present), Director and
Assistant Vice President (1995-1997) Hartford; Vice
President, Fidelity Investments (1994-1995); Actuary
(1990-1994) Aetna Life and Casualty.
Maher, Steven M., 43 Vice President, 1992 Assistant Vice President (1987-1992), Hartford; Vice
Actuary, 1987 President (1993-Present); Actuary (1987-Present);
Assistant Vice President (1987-1983), Hartford Life and
Accident Insurance Company.
</TABLE>
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 27
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POSITION WITH HARTFORD LIFE, OTHER BUSINESS PROFESSION, VOCATION OR EMPLOYMENT
NAME, AGE YEAR OF ELECTION FOR PAST 5 YEARS; OTHER DIRECTORSHIPS
- -------------------------------- ------------------------------------- ----------------------------------------------------------
<S> <C> <C>
Malchodi, Jr., William B., 50 Vice President, 1994 Director of Taxes, Hartford (1991-1998); Director of Taxes
(1992-1998), Hartford Life and Accident Insurance
Company.
Marra, Raymond J., 37 Vice President, 1998 Assistant Vice President (1997-Present), Hartford; Vice
President (1998-Present), Assistant Vice President
(1994-1997), Hartford Life and Accident Insurance
Company.
Marra, Thomas M., 39 Executive Vice President, 1995 Senior Vice President (1994-1995); Vice President
Director, Individual Life (1989-1994); Actuary (1987-1995), Hartford; Director
and Annuity Division, 1994 (1994-Present); Executive Vice President (1995-Present);
Director, 1994* Senior Vice President (1994-1995); Director, Individual
Life and Annuity Division (1994-Present); Actuary
(1987-1997), Hartford Life and Accident Insurance
Company; Executive Vice President, Individual Life and
Annuities (1997-Present), Hartford Life Inc.
Nolan, Jr., Robert F., 43 Senior Vice President, 1997 Vice President (1995-1997); Assistant Vice President
(1992-1995), Hartford; Vice President (1995-1997);
Assistant Vice President (1992-1995), Hartford Life and
Accident Insurance Company; Vice President, Corporate
Relations (1997-Present), Hartford Life, Inc.; Manager,
Public Relations (1986), Aetna Life and Casualty
Insurance Company.
Noto, Joseph J., 46 Vice President, 1989 Executive Vice President & Chief Operating Officer
(1997-Present); Director (1994-Present); President
(1994-1997), American Maturity Life Insurance Company;
Vice President (1989-1997), Hartford Life and Accident
Insurance Company.
O'Halloran, C. Michael, 51 Vice President, 1994 Senior Associate General Counsel (1988-1997), Hartford;
Vice President (1994-Present); Senior Associate General
Counsel (1988-1997), Hartford Life and Accident
Insurance Company; Corporate Secretary (1997-Present),
Hartford Life, Inc.; Vice President (1994-Present);
Senior Associate General Counsel (1988-Present);
Director of Corporate Law (1994-Present), The Hartford
Financial Services Group.
O'Sullivan, Daniel E., 43 Vice President, 1998 Vice President (1998-Present), Hartford Life and Accident
Insurance Company; Director Strategic Initiatives Group
Specialty Risks (1996-1997), Hartford; Vice President
(1991-1996), Aetna Life Insurance and Annuity Co.
Raymond, Craig R., 37 Senior Vice President, 1997 Vice President (1993-1997); Assistant Vice President
Chief Actuary, 1994 (1992-1993); Actuary (1990-1994), Hartford; Senior Vice
President (1997-Present); Chief Actuary (1995-Present);
Vice President (1993-1997); Actuary (1990-1995),
Hartford Life and Accident Insurance Company; Vice
President and Chief Actuary (1997-Present), Hartford
Life, Inc.
</TABLE>
<PAGE>
28 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POSITION WITH HARTFORD LIFE, OTHER BUSINESS PROFESSION, VOCATION OR EMPLOYMENT
NAME, AGE YEAR OF ELECTION FOR PAST 5 YEARS; OTHER DIRECTORSHIPS
- -------------------------------- ------------------------------------- ----------------------------------------------------------
<S> <C> <C>
Robinson, Mary P., 38 Vice President, 1998 Assistant Vice President (1995-1998), Hartford; Assistant
Vice President(1995-1998), Hartford Life and Accident
Insurance Company, Director BMS (1995-1996), Director
Priority Account Segment (1994-1995), Hartford.
Salama, Donald A., 50 Vice President, 1997 Vice President (1997-Present), Hartford Life and Accident
Insurance Company; Principal and Director of
Institutional Sales (1995-1998), The Vanguard Group;
Senior Vice President (1994-1995), Mercantile
Bancorporation; Vice President (1988-1994), Bankers
Trust Company.
Schlitz, Timothy P., 37 Vice President, 1997 Assistant Vice President (1994-1997), Hartford, Vice
President (1997-Present); Assistant Vice President
(1994-1997), Hartford Life and Accident Insurance
Company; Consulting Actuary (1992-1993), Milliman &
Robertson, Inc.; Consulting Actuary (1988-1992) Chalke
Incorporated.
Smith, Lowndes A., 58 President, 1989 Chief Operating Officer (1989-1997), Hartford; Director
Chief Executive Officer, 1997 (1981-Present); President (1989-Present); Chief
Director, 1981* Executive Officer (1997-Present); Chief Operating
Officer (1989-1997), Hartford Life and Accident
Insurance Company; Chief Executive Officer and President
and Director (1997-Present), Hartford Life, Inc.
Stevenson, Keith A., 44 Vice President, 1998
Sweeney, Edward A., 51 Vice President, 1993 Chicago Regional Manager (1985-1993), Hartford; Vice
President (1993-Present), Hartford Life and Accident
Insurance Company.
Tilbor, Judith V., 46 Vice President, 1998 Assistant Vice President (1994-1998), Hartford; Vice
President (1998-Present), Assistant Vice President
(1994-1998), Hartford Life and Accident Insurance
Company.
Welnicki, Raymond P., 49 Senior Vice President & Vice President (1993-1994), Hartford; Director
Director, Employee Benefit (1994-Present); Senior Vice President (1995-Present);
Division, 1994 Director, Employee Benefit Division (1997-Present); Vice
Director, 1994* President (1993-1995), Hartford Life and Accident
Insurance Company; Senior Vice President, Employee
Benefits (1997-Present), Hartford Life, Inc., Board of
Directors, Ethix Corp.
Welsh, Walter, C., 51 Senior Vice President, 1997 Vice President (1995-1997); Assistant Vice President
(1992-1995), Hartford; Senior Vice President
(1997-Present); Vice President (1995-1997); Assistant
Vice President (1992-1995), Hartford Life and Accident
Insurance Company; Vice President Government Affairs
(1997-Present), Hartford Life, Inc.
</TABLE>
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 29
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POSITION WITH HARTFORD LIFE, OTHER BUSINESS PROFESSION, VOCATION OR EMPLOYMENT
NAME, AGE YEAR OF ELECTION FOR PAST 5 YEARS; OTHER DIRECTORSHIPS
- -------------------------------- ------------------------------------- ----------------------------------------------------------
<S> <C> <C>
Zlatkus, Lizabeth H., 39 Senior Vice President, 1997 Vice President (1994-1997); Assistant Vice President
Director, 1994* (1992-1994), Hartford; Director (1994-Present); Senior
Vice President (1997-Present); Vice President
(1994-1997); Assistant Vice President (1992-1994),
Hartford Life and Accident Insurance Company; Vice
President, Group Life and Disability (1997-Present),
Hartford Life, Inc.
Znamierowski, David M., 38 Senior Vice President, 1997 Vice President (1997), Hartford; Director (1998-Present);
Director, Risk Management Senior Vice President (1997-Present); Hartford Life and
Strategy, 1996 Accident Insurance Company; Vice President, Investment
Director, 1998* Strategy (1997-Present), Hartford Life, Inc.; Vice
President, Investment Strategy & Policy (1991-1996),
Aetna Life and Casualty.
</TABLE>
- ---------
* Denotes date of election to Board of Directors of Hartford.
** Affiliated Company of The Hartford Financial Services Group, Inc.
Unless otherwise indicated, the principal business address of each the above
individuals is P.O. Box 2999, Hartford,CT 06104-2999.
DISTRIBUTION OF
THE GROUP POLICY
Hartford intends to sell the Group Policy in all jurisdictions where it is
licensed to do business. The Group Policy will be sold by life insurance sales
representatives who represent Hartford and who are registered representatives of
Hartford Equity Sales Company, Inc. ("HESCO"), or certain other registered
broker-dealers. Any sales representative or employee will have been qualified to
sell variable life insurance policies under applicable federal and state laws.
Each broker-dealer is registered with the SEC under the Securities Exchange Act
of 1934 and all are members of the National Association of Securities Dealers,
Inc. HESCO is the principal underwriter for the Group Policy. The maximum sales
commission payable to Hartford agents, independent registered insurance brokers,
and other registered broker-dealers is 6% of the premiums paid. In addition,
expense allowances, service fees and asset-based trail commissions may be paid.
The sales representative may be required to return all or a portion of the
commissions paid if a Certificate terminates prior to the second Certificate
Anniversary.
Broker-dealers or financial institutions are compensated according to a
schedule set forth by HESCO and any applicable rules or regulations for variable
insurance compensation. Compensation is generally based on premium payments made
by policyholders or contract owners. This compensation is usually paid from the
sales charges described in this Prospectus.
In addition, a broker-dealer or financial institution may also receive
additional compensation for, among other things, training, marketing or other
services provided. HESCO, its affiliates or Hartford may also make compensation
arrangements with certain broker-dealers or financial institutions based on
total sales by the broker-dealer or financial institution of insurance products.
These payments, which may be different for different broker-dealers or financial
institutions, will be made by HESCO, its affiliates or Hartford out of their own
assets and will not affect the amounts paid by the policyholders or contract
owners to purchase, hold or surrender variable insurance products.
SAFEKEEPING OF THE SEPARATE
ACCOUNT ASSETS
The assets of the Separate Account are held by Hartford. The assets of the
Separate Account are kept physically segregated and held separate and apart from
the General Account of Hartford. Hartford maintains records of all purchases and
redemptions of shares of the Fund. Additional protection for the assets of the
Separate Account is afforded by Hartford's blanket fidelity bond issued by Aetna
Casualty and Surety Company, in the aggregate amount of $50 million, covering
all of the officers and employees of Hartford.
<PAGE>
30 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
FEDERAL TAX CONSIDERATIONS
GENERAL
SINCE THE TAX LAW IS COMPLEX AND SINCE TAX CONSEQUENCES WILL VARY ACCORDING
TO THE ACTUAL STATUS OF THE OWNER INVOLVED AND THE TYPE OF PLAN UNDER WHICH THE
GROUP POLICY IS PURCHASED, LEGAL AND TAX ADVICE MAY BE NEEDED BY A PERSON,
TRUSTEE OR OTHER ENTITY CONTEMPLATING THE PURCHASE OF A GROUP POLICY DESCRIBED
HEREIN.
It should be understood that any detailed description of the Federal income
tax consequences regarding the purchase of the Group Policy cannot be made in
this Prospectus and that special tax rules may be applicable with respect to
certain purchase situations not discussed herein. In addition, no attempt is
made here to consider any applicable state or other tax laws. For detailed
information, a qualified tax adviser should always be consulted. This discussion
of Federal tax considerations is based upon Hartford's understanding of current
Federal income tax laws as they are currently interpreted.
TAXATION OF HARTFORD AND
THE SEPARATE ACCOUNT
The Separate Account is taxed as a part of Hartford, which is taxed as a
life insurance company under Part 1 of Subchapter L of Chapter 1 of the Internal
Revenue Code ("Code"). Accordingly, the Separate Account will not be taxed as a
"regulated investment company" under Subchapter M of the Code. Investment income
and realized capital gains on the assets of the Separate Account (the underlying
Investment Divisions) are reinvested and are taken into account in determining
the value of the Accumulation Units (see "Detailed Description of Certificate
Benefits and Provisions -- Values Under the Certificate," on page 16). As a
result, such investment income and realized capital gains are automatically
applied to increase reserves under the Certificate.
Hartford does not expect to incur any Federal income tax on the earnings or
realized capital gains attributable to the Separate Account. Based upon these
expectations, no charge is currently being made to the Separate Account for
Federal income taxes. If Hartford incurs income taxes attributable to the
Separate Account or determines that such taxes will be incurred, it may assess a
charge for taxes against the Separate Account.
INCOME TAXATION OF CERTIFICATE BENEFITS
For Federal income tax purposes, the Certificates should be treated as life
insurance policies under Section 7702 of the Code. The death benefit under a
life insurance policy is excluded from the gross income of the Beneficiary.
Also, a life insurance policy owner is not taxed on increments in the policy
value until the policy is partially or completely surrendered. Section 7702
limits the amount of premiums that may be invested in a policy that is treated
as life insurance. Hartford intends to monitor premium levels to assure
compliance with the Section 7702 standards.
During the first fifteen policy years, an "income first" rule generally
applies to any distribution of cash that is required under Code Section 7702
because of a reduction in benefits under the Certificate.
Hartford also believes that any Loan received under a Certificate will be
treated as Debt of the Owner, and that no part of any Loan under a Certificate
will constitute income to the Owner. A surrender or assignment of the
Certificate may have tax consequences depending upon the circumstances. Owners
should consult qualified tax advisers concerning the effect of such changes.
Federal, state, and local estate tax, inheritance, and other tax
consequences of ownership or receipt of Certificate proceeds depend on the
circumstances of each Owner or Beneficiary.
The Maturity Date Extension Rider allows an Owner to extend the Maturity
Date to the date of the death of the Insured. Although Hartford believes that
the Certificate will continue to be treated as a life insurance contract for
federal income tax purposes after the scheduled Maturity Date, due to the lack
of specific guidance on this issue, this result is not certain. If the
Certificate is not treated as a life insurance contract for federal income tax
purposes after the Maturity Date, among other things, the Death Proceeds may be
taxable to the recipient. The Owner should consult a competent tax adviser
regarding the possible adverse tax consequences resulting from an extension of
the scheduled Maturity Date.
MODIFIED ENDOWMENT CONTRACTS
Code Section 7702A applies an additional test, the "seven-pay" test, to life
insurance contracts. A modified endowment contract is a life insurance policy
which satisfies the Section 7702 definition of life insurance but fails the
seven-pay test of Section 7702A. A policy fails the seven-pay test if the
accumulated amount paid into the Certificate at any time during the first seven
Coverage Years exceeds the sum of the net level premiums that would have been
paid up to that point if the Certificate provided for paid-up future benefits
after the payment of seven level annual premiums. Computational rules for the
seven-pay test are described in Section 7702A(c).
A policy that is classified as a modified endowment contract is eligible for
certain aspects of the beneficial tax
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 31
- --------------------------------------------------------------------------------
treatment accorded to life insurance. That is, the death benefit is excluded
from income and increments in value are not subject to current taxation.
However, withdrawals and loans from a modified endowment policy are treated
first as income, then as a recovery of basis. Taxable withdrawals are subject to
a 10% additional tax, with certain exceptions. Generally, only distributions and
loans made in the first year in which a policy becomes a modified endowment
policy, and in subsequent years, are taxable. However, distributions and loans
made in the two years prior to a policy's failing the seven-pay test are deemed
to be in anticipation of failure and are subject to tax.
If the Certificate satisfies the seven-pay test for seven years,
distributions and loans made thereafter will not be subject to the modified
endowment policy rules, unless the Certificate is changed materially. The
seven-pay test will be applied anew at any time the Certificate undergoes a
material change, which includes an increase in the Face Amount.
All modified endowment policies that are issued within any calendar year to
the same policy owner by one company or its affiliates shall be treated as one
modified endowment policy for the purpose of determining the taxable portion of
any loan or distribution.
Hartford has instituted procedures to monitor whether a Certificate may
become a modified endowment contract after issue.
DIVERSIFICATION REQUIREMENTS
Section 817 of the Code provides that a variable life insurance policy
(other than a pension plan policy) will not be treated as a life insurance
policy for any period during which the investments made by the separate account
underlying the policy are not adequately diversified in accordance with
regulations prescribed by the Treasury. If a policy is not treated as a life
insurance policy, the policy owner will be subject to income tax on the annual
increases in cash value. The Treasury has issued diversification regulations
which, among other things, generally require that no more than 55% of the value
of the total assets of the segregated asset account (such as the Funds)
underlying a variable contract is represented by any one investment, no more
than 70% is represented by any two investments, no more than 80% is represented
by any three investments, and no more than 90% is represented by any four
investments. In determining whether the diversification standards are met, all
securities of the same issuer, all interests in the same real property project,
and all interests in the same commodity are each treated as a single investment.
In addition, in the case of government securities, each government agency or
instrumentality shall be treated as a separate issuer. If the diversification
standards are not met, non-pension policy owners will be subject to current tax
on the increase in cash value in the policy.
A separate account must be in compliance with the diversification standards
on the last day of each calendar quarter or within 30 days after the quarter
ends. If an insurance company inadvertently fails to meet the diversification
requirements, the company may comply within a reasonable period and avoid the
taxation of policy income on an ongoing basis. However, either the company or
Owner must agree to pay the tax due for the period during which the
diversification standards were not met. The amount required to be paid shall be
an amount based upon the tax that would have been owed by the policy owner if
they were treated as receiving the income on the policy for such period or
periods.
FEDERAL INCOME TAX WITHHOLDING
If any amounts are deemed to be current taxable income to the Owner, such
amounts will be subject to Federal income tax withholding and reporting,
pursuant to Section 3405 of the Internal Revenue Code.
OTHER TAX CONSIDERATIONS
Qualified tax advisers should be consulted concerning the estate and gift
tax consequences of Certificate ownership and distributions under federal, state
and local law.
PERFORMANCE RELATED INFORMATION
The Separate Account may advertise certain performance related information
concerning its Investment Divisions. Performance information about an Investment
Division is based on the Investment Division's past performance only and is no
indication of future performance.
Each Investment Division may include total return in advertisements, sales
literature, and other promotional materials. When an Investment Division
advertises its total return, it will usually be calculated for one year, five
years, and ten years or some other relevant periods if the Investment Division
has not been in existence for at least ten years. Total return may also be
calculated for the most recent fiscal quarter and for the period since
underlying fund inception. Total return is measured by comparing the value of an
investment in the Investment Division at the beginning of the relevant period to
the value of the investment at the end of the period.
The Investment Divisions investing in the Hartford Bond Fund, N&B AMT
Limited Maturity Bond Portfolio, J.P. Morgan Bond Portfolio, MS Fixed Income
Portfolio, and MS High Yield Portfolio may advertise yield in addition to total
return. The yield will be computed in the following manner: The net investment
income per unit earned during a recent one month period is divided by the unit
value on
<PAGE>
32 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
the last day of the period. This figure reflects the Certificate charges
described below.
The Investment Division investing in the Hartford Money Market Fund may
advertise yield and effective yield. The yield of an Investment Division is
based upon the income earned by the Investment Division over a seven-day period
and then annualized, i.e., the income earned in the period is assumed to be
earned every seven days over a 52-week period and stated as a percentage of the
investment. Effective yield is calculated similarly, but when annualized, the
income earned by the investment is assumed to be reinvested in Division units
and thus compounded in the course of a 52-week period. Yield reflects the
Certificate charges described below.
Total return for an Investment Division includes deductions for the maximum
sales load charge, mortality and expense risk charge, DAC tax charge, and the
administrative expense charge, and is therefore lower than total return at the
Portfolio level, where there are no comparable charges. The performance results
do not reflect the cost of insurance or any state or local premium taxes. If
these charges were included, the total return figures would be lower. Total
return may also be calculated to include deductions for Separate Account
charges, but not include deductions for the sales load charge, DAC tax charge or
any state or local premium taxes. If reflected, the total return figures would
reduce the performance quoted. Yield for an Investment Division includes all
recurring charges (except sales charges) and is therefore lower than yield at
the Portfolio level, where there are no comparable charges.
Hartford may provide information on various topics to current and
prospective Owners in advertising, sales literature or other materials. These
topics may include the relationship between sectors of the economy and the
economy as a whole and its effect on various securities markets, investment
strategies and techniques (such as value investing, dollar cost averaging and
asset allocation), plan and trust arrangements, the advantages and disadvantages
of investing in tax-advantaged and taxable instruments, current and prospective
Owner profiles and hypothetical purchase scenarios, financial management and tax
and retirement planning, and investment alternatives, including comparisons
between the Certificates and the characteristics of and market for such
alternatives.
LEGAL PROCEEDINGS
There are no material legal proceedings pending to which the Separate
Account is a party.
YEAR 2000
The Year 2000 issue relates to the ability or inability of computer systems
to properly process information and data containing or related to dates
beginning with the year 2000 and beyond. The Year 2000 issue exists because,
historically, many computer systems that are in use today were developed years
ago when a year was identified using a two-digit field rather than a four-digit
field. As information and data containing or related to the century date are
introduced to computer hardware, software and other systems, date sensitive
systems may recognize the year 2000 as 1900, or not at all, which may result in
computer systems processing information incorrectly. This, in turn, may
significantly and adversely affect the integrity and reliability of information
databases and may result in a wide variety of adverse consequences to a company.
In addition, Year 2000 problems that occur with third parties with which a
company does business, such as suppliers, computer vendors and others, may also
adversely affect any given company.
As an insurance and financial services company, Hartford has thousands of
individual and business customers that have purchased or invested in insurance
policies, annuities, mutual funds and other financial products. Nearly all of
these policies and products contain date sensitive data, such as policy
expiration dates, birth dates, premium payments dates and the like. In addition,
Hartford has business relationships with numerous third parties that affect
virtually all aspects of its business, including, without limitation, suppliers,
computer hardware and software vendors, insurance agents and brokers, securities
broker-dealers and other distributors of financial products.
Beginning in 1990, Hartford began working on making its computer systems
Year 2000 ready, either by installing new programs or by replacing systems. In
January 1998, Hartford commenced a company-wide program to further identify,
assess and remediate the impact of Year 2000 problems in all of Hartford's
business segments. Hartford currently anticipates that this internal program
will be substantially completed by the end of 1998, and testing of computer
systems will continue through 1999.
In addition, as part of its Year 2000 program, Hartford is identifying third
parties with which it has significant business relations in order to attempt to
assess any potential impact on Hartford as a result of such third-party Year
2000 issues and remediation plans. Hartford currently anticipates that it will
substantially complete this evaluation by the end of 1998, and will conduct
systems testing with certain third parties through 1999. Hartford does not have
control over these third parties and, as a result, Hartford cannot currently
determine to what extent future operating results may be adversely affected by
the failure of these third parties to successfully address their Year 2000
issues. Hartford will continue to assess Year 2000 risk exposures related to its
own operations and its third-party relationships and is in the process of
developing contingency plans.
The costs of addressing the Year 2000 issue that have been incurred through
the six months ended June 30, 1998
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 33
- --------------------------------------------------------------------------------
have not been material to Hartford's financial condition or results of
operations. Hartford will continue to incur costs related to its Year 2000
efforts and does not anticipate that the costs to be incurred will be material
to its financial condition or results of operations.
EXPERTS
The audited financial statements and financial statement schedules included
in this registration statement have been audited by Arthur Andersen LLP,
independent public accountants, as indicated in their reports with respect
thereto, and are included herein in reliance upon the authority of said firm as
experts in giving said reports. The principal business address of Arthur
Andersen LLP is One Financial Plaza, Hartford, Connecticut 06103.
The hypothetical illustrations included in this Prospectus and Registration
Statement have been approved by Pauline Gyllenhammer, ASA, MAAA, Senior
Actuarial Associate, are included in reliance upon her opinion as to their
reasonableness.
REGISTRATION STATEMENT
A registration statement has been filed with the SEC under the Securities
Act of 1933, as amended. This Prospectus does not contain all information set
forth in the registration statement, its amendments and exhibits, to all of
which reference is made for further information concerning the Separate Account,
Hartford, the Group Policies and the Certificates.
FINANCIAL STATEMENTS
No financial statements are included for the Separate Account. As of the
date of this Prospectus, the Separate Account had not yet commenced operations,
had no assets or liabilities, and had received no income or incurred any
expense. The financial statements of Hartford that are included and should be
considered only as bearing upon Hartford's ability to meet its contractual
obligations under the Policy. There has been no adverse material change in
Hartford's financial position since the dates of the audited financial
statements. In addition to the audited financial statement for the year ended
December 31, 1997, Hartford has provided unaudited financial statements for the
period ended September 30, 1998.
<PAGE>
34 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
APPENDIX A
ILLUSTRATIONS OF DEATH BENEFIT, CASH VALUE
AND CASH SURRENDER VALUE
The following tables illustrate how the Death Benefit, Cash Value and Cash
Surrender Value of a Group Policy may change with the investment experience of
the Separate Account. The tables show how the Death Benefit, Cash Value and Cash
Surrender Value of a Certificate issued to an Insured of a given age would vary
over time if the investment return on the assets held in each Portfolio were a
uniform, gross annual rate of 0%, 6% and 12%. The Death Benefit, Cash Value and
Cash Surrender Value would be different from those shown if the gross annual
investment returns averaged 0%, 6% and 12% over a period of years, but
fluctuated above and below those averages for individual Coverage Years. The
tables assume that no Loans are made and that no partial withdrawals have been
made. The tables are also based on the assumption that the Owner has not
requested an increase or decrease in the Face Amount and that no transfers have
been made in any Coverage Years.
The tables on pages 35 to 46 illustrate a Certificate issued to a Male
Insured, Age 45 in the Medical Non-Smoker Class with an Initial Face Amount of
$250,000. The Death Benefit, Cash Value and Cash Surrender Value would be lower
if the Insured was a smoker or in a special class since the cost of insurance
charges would increase.
The tables reflect the fact that the net return on the assets held in the
Investment Divisions is lower than the gross after-tax return of the Portfolios.
This is because these tables assume an investment management fee and other
estimated Portfolio expenses totaling 0.82%. The 0.82% figure is based on an
average of the current management fees and expenses of the available 25
Portfolios, taking into account any applicable expense caps or reimbursement
arrangements. Actual fees and expenses of the Portfolios associated with a
Certificate may be more or less than 0.82%, will vary from year to year, and
will depend on how the Cash Value is allocated.
As their headings indicate, the tables reflect the deductions of current
contractual charges and guaranteed contractual charges for a single gross
interest rate. These charges include the front-end sales load, the daily charge
to the Separate Account for assuming mortality and expense risks, and the
monthly administrative expense and cost of insurance charges. All tables assume
a charge of 2.00% for taxes attributable to premiums, a 1.25% charge for the
federal DAC tax and reflect the fact that no charges against the Separate
Account are currently made for federal, state or local taxes attributable to the
Group Policy or Certificate.
Each table also shows the amount to which the premiums would accumulate if
an amount equal to those premiums were invested to earn interest, after taxes,
at 5% compounded annually.
Upon request, Hartford will furnish a comparable illustration based on a
proposed Certificate's specific circumstances.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 35
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FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
LEVEL DEATH BENEFIT OPTION
ISSUE AGE 45 MALE MEDICAL NON-SMOKER
$14,102 PREMIUM PAID FOR 7 YEARS
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.82% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
ACCUMULATED ----------------------------------- -----------------------------------
END OF AT 5% CASH CASH
POLICY INTEREST CASH SURRENDER DEATH CASH SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------- ------------ ----------- --------- ---------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 14,807 12,242 12,242 250,000 11,000 11,000 250,000
2 30,355 24,223 24,223 250,000 21,805 21,805 250,000
3 46,680 35,952 35,952 250,000 32,418 32,418 250,000
4 63,821 47,463 47,463 250,000 42,846 42,846 250,000
5 81,819 58,776 58,776 250,000 53,088 53,088 250,000
6 100,717 70,004 70,004 250,000 63,152 63,152 250,000
7 120,560 81,059 81,059 250,000 73,031 73,031 250,000
8 126,588 79,409 79,409 250,000 70,438 70,438 250,000
9 132,917 77,737 77,737 250,000 67,726 67,726 250,000
10 139,563 76,033 76,033 250,000 64,873 64,873 250,000
11 146,541 74,390 74,390 250,000 61,866 61,866 250,000
12 153,868 72,678 72,678 250,000 58,682 58,682 250,000
13 161,561 70,874 70,874 250,000 55,309 55,309 250,000
14 169,639 68,973 68,973 250,000 51,725 51,725 250,000
15 178,121 66,967 66,967 250,000 47,906 47,906 250,000
16 187,027 64,783 64,783 250,000 43,817 43,817 250,000
17 196,378 62,477 62,477 250,000 39,414 39,414 250,000
18 206,197 60,032 60,032 250,000 34,640 34,640 250,000
19 216,507 57,434 57,434 250,000 29,429 29,429 250,000
20 227,332 54,664 54,664 250,000 23,710 23,710 250,000
25 290,140 37,293 37,293 250,000 -- -- --
30 370,300 10,376 10,376 250,000 -- -- --
</TABLE>
<TABLE>
<C> <S>
* THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
** THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
THE DEATH BENEFIT MAY, AND THE CASH VALUE AND CASH SURRENDER VALUE WILL
DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.
</TABLE>
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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE CONTRACT AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE, AND CASH SURRENDER VALUE FOR A CONTRACT 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 CONTRACT AVERAGED 0%, BUT VARIED
ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE
MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
<PAGE>
36 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
LEVEL DEATH BENEFIT OPTION
ISSUE AGE 45 MALE MEDICAL NON-SMOKER
$14,102 PREMIUM PAID FOR 7 YEARS
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.18% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
ACCUMULATED ----------------------------------- -----------------------------------
END OF AT 5% CASH CASH
POLICY INTEREST CASH SURRENDER DEATH CASH SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------- ------------ ----------- --------- ---------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 14,807 12,990 12,990 250,000 11,701 11,701 250,000
2 30,355 26,482 26,482 250,000 23,897 23,897 250,000
3 46,680 40,505 40,505 250,000 36,618 36,618 250,000
4 63,821 55,118 55,118 250,000 49,895 49,895 250,000
5 81,819 70,368 70,368 250,000 63,760 63,760 250,000
6 100,717 86,393 86,393 250,000 78,249 78,249 250,000
7 120,560 103,144 103,144 250,000 93,397 93,397 250,000
8 126,588 107,366 107,366 250,000 96,210 96,210 250,000
9 132,917 111,753 111,753 250,000 99,055 99,055 250,000
10 139,563 116,307 116,307 250,000 101,924 101,924 250,000
11 146,541 121,204 121,204 252,527 104,812 104,812 250,000
12 153,868 126,269 126,269 256,053 107,714 107,714 250,000
13 161,561 131,496 131,496 259,641 110,631 110,631 250,000
14 169,639 136,892 136,892 263,292 113,561 113,561 250,000
15 178,121 142,464 142,464 267,012 116,499 116,499 250,000
16 187,027 148,173 148,173 270,740 119,434 119,434 250,000
17 196,378 154,070 154,070 274,562 122,354 122,354 250,000
18 206,197 160,160 160,160 278,502 125,242 125,242 250,000
19 216,507 166,448 166,448 282,582 128,076 128,076 250,000
20 227,332 172,939 172,939 286,816 130,838 130,838 250,000
25 290,140 208,558 208,558 310,301 142,988 142,988 250,000
30 370,300 249,843 249,843 338,301 149,364 149,364 250,000
</TABLE>
<TABLE>
<C> <S>
* THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
** THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
THE DEATH BENEFIT MAY, AND THE CASH VALUE AND CASH SURRENDER VALUE WILL
DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.
</TABLE>
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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE CONTRACT AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE, AND CASH SURRENDER VALUE FOR A CONTRACT 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 CONTRACT AVERAGED 6%, BUT VARIED
ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE
MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 37
- --------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
LEVEL DEATH BENEFIT OPTION
ISSUE AGE 45 MALE MEDICAL NON-SMOKER
$14,102 PREMIUM PAID FOR 7 YEARS
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.18% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
ACCUMULATED -------------------------------------- ------------------------------------
END OF AT 5% CASH CASH
POLICY INTEREST CASH SURRENDER DEATH CASH SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------- ------------ ------------ ----------- ----------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 14,807 13,739 13,739 250,000 12,402 12,402 250,000
2 30,355 28,831 28,831 250,000 26,075 26,075 250,000
3 46,680 45,428 45,428 250,000 41,164 41,164 250,000
4 63,821 63,726 63,726 250,000 57,834 57,834 250,000
5 81,819 83,930 83,930 250,000 76,266 76,266 250,000
6 100,717 106,346 106,346 254,254 96,669 96,669 250,000
7 120,560 131,029 131,029 304,242 119,126 119,126 276,760
8 126,588 144,219 144,219 325,337 130,105 130,105 293,671
9 132,917 158,718 158,718 348,002 142,048 142,048 311,641
10 139,563 174,649 174,649 372,360 155,028 155,028 330,737
11 146,541 192,420 192,420 399,056 169,130 169,130 351,026
12 153,868 211,937 211,937 427,791 184,442 184,442 372,584
13 161,561 233,346 233,346 458,620 201,069 201,069 395,490
14 169,639 256,831 256,831 491,698 219,118 219,118 419,827
15 178,121 282,590 282,590 527,201 238,707 238,707 445,683
16 187,027 310,746 310,746 565,175 259,951 259,951 473,153
17 196,378 341,619 341,619 605,979 282,971 282,971 502,339
18 206,197 375,461 375,461 649,878 307,889 307,889 533,345
19 216,507 412,551 412,551 697,165 334,828 334,828 566,287
20 227,332 453,189 453,189 748,137 363,924 363,924 601,285
25 290,140 722,002 722,002 1,069,272 547,697 547,697 811,896
30 370,300 1,142,549 1,142,549 1,539,940 813,034 813,034 1,097,032
</TABLE>
<TABLE>
<C> <S>
* THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
** THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
THE DEATH BENEFIT MAY, AND THE CASH VALUE AND CASH SURRENDER VALUE WILL
DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.
</TABLE>
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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE CONTRACT AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE, AND CASH SURRENDER VALUE FOR A CONTRACT 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 CONTRACT AVERAGED 12%, BUT VARIED
ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE
MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
<PAGE>
38 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
INCREASING DEATH BENEFIT OPTION
ISSUE AGE 45 MALE MEDICAL NON-SMOKER
$14,102 PREMIUM PAID FOR 7 YEARS
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.82% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
ACCUMULATED -------------------------------- --------------------------------
END OF AT 5% CASH CASH
POLICY INTEREST CASH SURRENDER DEATH CASH SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------- ------------- --------- --------- ---------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 14,807 12,231 12,231 262,264 10,947 10,947 261,056
2 30,355 24,182 24,182 274,238 21,643 21,643 271,772
3 46,680 35,848 35,848 285,928 32,083 32,083 282,233
4 63,821 47,263 47,263 297,364 42,267 42,267 292,438
5 81,819 58,442 58,442 308,562 52,184 52,184 302,378
6 100,717 69,533 69,533 319,660 61,833 61,833 312,049
7 120,560 80,416 80,416 330,561 71,194 71,194 321,434
8 126,588 78,583 78,583 328,730 68,061 68,061 318,310
9 132,917 76,716 76,716 326,866 64,786 64,786 315,047
10 139,563 74,801 74,801 324,955 61,348 61,348 311,623
11 146,541 72,923 72,923 323,074 57,733 57,733 308,022
12 153,868 70,948 70,948 321,107 53,924 53,924 304,229
13 161,561 68,849 68,849 319,018 49,913 49,913 300,235
14 169,639 66,621 66,621 316,800 45,685 45,685 296,025
15 178,121 64,258 64,258 314,448 41,224 41,224 291,583
16 187,027 61,664 61,664 311,874 36,499 36,499 286,880
17 196,378 58,922 58,922 309,144 31,477 31,477 281,883
18 206,197 56,016 56,016 306,252 26,113 26,113 276,547
19 216,507 52,934 52,934 303,184 20,357 20,357 270,823
20 227,332 49,658 49,658 299,925 14,159 14,159 264,662
25 290,140 29,569 29,569 279,945 -- -- --
30 370,300 626 626 251,175 -- -- --
</TABLE>
<TABLE>
<C> <S>
* THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
** THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
THE DEATH BENEFIT MAY, AND THE CASH VALUE AND CASH SURRENDER VALUE WILL
DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.
</TABLE>
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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE CONTRACT AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE, AND CASH SURRENDER VALUE FOR A CONTRACT 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 CONTRACT AVERAGED 0%, BUT VARIED
ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE
MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 39
- --------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
INCREASING DEATH BENEFIT OPTION
ISSUE AGE 45 MALE MEDICAL NON-SMOKER
$14,102 PREMIUM PAID FOR 7 YEARS
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.18% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
ACCUMULATED ----------------------------------- -----------------------------------
END OF AT 5% CASH CASH
POLICY INTEREST CASH SURRENDER DEATH CASH SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------- ------------ ----------- --------- ---------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 14,807 12,979 12,979 262,949 11,645 11,645 261,697
2 30,355 26,436 26,436 276,366 23,719 23,719 273,734
3 46,680 40,387 40,387 290,275 36,234 36,234 286,212
4 63,821 54,882 54,882 304,723 49,204 49,204 299,144
5 81,819 69,956 69,956 319,748 62,638 62,638 312,538
6 100,717 85,788 85,788 335,516 76,548 76,548 326,407
7 120,560 102,284 102,284 351,956 90,933 90,933 340,752
8 126,588 106,208 106,208 355,869 92,864 92,864 342,690
9 132,917 110,245 110,245 359,897 94,690 94,690 344,524
10 139,563 114,387 114,387 364,030 96,379 96,379 346,225
11 146,541 118,789 118,789 368,409 97,910 97,910 347,770
12 153,868 123,270 123,270 372,884 99,255 99,255 349,131
13 161,561 127,806 127,806 377,415 100,396 100,396 350,289
14 169,639 132,390 132,390 381,995 101,304 101,304 351,216
15 178,121 137,020 137,020 386,621 101,948 101,948 351,883
16 187,027 141,595 141,595 391,201 102,282 102,282 352,244
17 196,378 146,195 146,195 395,799 102,254 102,254 352,246
18 206,197 150,803 150,803 400,406 101,796 101,796 351,825
19 216,507 155,406 155,406 405,009 100,832 100,832 350,904
20 227,332 159,981 159,981 409,586 99,284 99,284 349,406
25 290,140 181,433 181,433 431,089 80,071 80,071 330,541
30 370,300 196,724 196,724 446,526 30,810 30,810 281,938
</TABLE>
<TABLE>
<C> <S>
* THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
** THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
THE DEATH BENEFIT MAY, AND THE CASH VALUE AND CASH SURRENDER VALUE WILL
DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.
</TABLE>
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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE CONTRACT AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE, AND CASH SURRENDER VALUE FOR A CONTRACT 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 CONTRACT AVERAGED 6%, BUT VARIED
ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE
MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
<PAGE>
40 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
INCREASING DEATH BENEFIT OPTION
ISSUE AGE 45 MALE MEDICAL NON-SMOKER
$14,102 PREMIUM PAID FOR 7 YEARS
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.18% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
ACCUMULATED ----------------------------------------- -------------------------------------
END OF AT 5% CASH CASH
POLICY INTEREST CASH SURRENDER DEATH CASH SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------- ------------ ------------- ----------- ------------ ----------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 14,807 13,727 13,727 263,631 12,343 12,343 262,336
2 30,355 28,781 28,781 278,570 25,879 25,879 275,768
3 46,680 45,294 45,294 294,955 40,726 40,726 290,500
4 63,821 63,448 63,448 312,966 57,015 57,015 306,664
5 81,819 83,426 83,426 332,786 74,884 74,884 324,395
6 100,717 105,576 105,576 354,746 94,490 94,490 343,850
7 120,560 129,993 129,993 378,966 115,992 115,992 365,186
8 126,588 142,892 142,892 391,762 125,899 125,899 375,025
9 132,917 157,076 157,076 405,834 136,645 136,645 385,698
10 139,563 172,663 172,663 421,299 148,289 148,289 397,264
11 146,541 190,058 190,058 438,536 160,911 160,911 409,801
12 153,868 209,173 209,173 457,501 174,591 174,591 423,388
13 161,561 230,160 230,160 478,324 189,429 189,429 438,126
14 169,639 253,211 253,211 501,195 205,528 205,528 454,115
15 178,121 278,537 278,537 526,323 222,998 222,998 471,465
16 187,027 306,273 306,273 557,039 241,948 241,948 490,285
17 196,378 336,701 336,701 597,255 262,491 262,491 510,690
18 206,197 370,055 370,055 640,521 284,746 284,746 532,795
19 216,507 406,610 406,610 687,125 308,830 308,830 556,720
20 227,332 446,662 446,662 737,361 334,878 334,878 582,597
25 290,140 711,598 711,598 1,053,863 500,718 500,718 747,343
30 370,300 1,126,078 1,126,078 1,517,740 743,048 743,048 1,002,599
</TABLE>
<TABLE>
<C> <S>
* THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
** THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
THE DEATH BENEFIT MAY, AND THE CASH VALUE AND CASH SURRENDER VALUE WILL
DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.
</TABLE>
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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE CONTRACT AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE, AND CASH SURRENDER VALUE FOR A CONTRACT 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 CONTRACT AVERAGED 12%, BUT VARIED
ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE
MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 41
- --------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
LEVEL DEATH BENEFIT OPTION
ISSUE AGE 45 MALE MEDICAL NON-SMOKER
$6,000 PREMIUM PAID FOR 30 YEARS
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.82% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
ACCUMULATED ------------------------------- --------------------------------
END OF AT 5% CASH CASH
POLICY INTEREST CASH SURRENDER DEATH CASH SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------- ------------ --------- -------- ---------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 6,300 5,050 5,050 250,000 3,962 3,962 250,000
2 12,915 9,934 9,934 250,000 7,796 7,796 250,000
3 19,861 14,649 14,649 250,000 11,497 11,497 250,000
4 27,154 19,229 19,229 250,000 15,066 15,066 250,000
5 34,812 23,687 23,687 250,000 18,494 18,494 250,000
6 42,853 28,159 28,159 250,000 21,781 21,781 250,000
7 51,296 32,534 32,534 250,000 24,909 24,909 250,000
8 60,161 36,930 36,930 250,000 27,987 27,987 250,000
9 69,469 41,222 41,222 250,000 30,881 30,881 250,000
10 79,242 45,400 45,400 250,000 33,575 33,575 250,000
11 89,504 49,524 49,524 250,000 36,061 36,061 250,000
12 100,279 53,511 53,511 250,000 38,328 38,328 250,000
13 111,593 57,347 57,347 250,000 40,372 40,372 250,000
14 123,473 61,030 61,030 250,000 42,183 42,183 250,000
15 135,947 64,562 64,562 250,000 43,749 43,749 250,000
16 149,044 67,879 67,879 250,000 45,047 45,047 250,000
17 162,796 71,044 71,044 250,000 46,048 46,048 250,000
18 177,236 74,051 74,051 250,000 46,715 46,715 250,000
19 192,398 76,895 76,895 250,000 47,004 47,004 250,000
20 208,318 79,570 79,570 250,000 46,869 46,869 250,000
25 300,684 89,984 89,984 250,000 38,221 38,221 250,000
30 418,569 93,946 93,946 250,000 7,529 7,529 250,000
</TABLE>
<TABLE>
<C> <S>
* THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
** THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
THE DEATH BENEFIT MAY, AND THE CASH VALUE AND CASH SURRENDER VALUE WILL
DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.
</TABLE>
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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE CONTRACT AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE, AND CASH SURRENDER VALUE FOR A CONTRACT 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 CONTRACT AVERAGED 0%, BUT VARIED
ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE
MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
<PAGE>
42 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
LEVEL DEATH BENEFIT OPTION
ISSUE AGE 45 MALE MEDICAL NON-SMOKER
$6,000 PREMIUM PAID FOR 30 YEARS
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.18% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
ACCUMULATED ----------------------------------- ---------------------------------
END OF AT 5% CASH CASH
POLICY INTEREST CASH SURRENDER DEATH CASH SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------- ------------- ---------- --------- ------------ ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 6,300 5,364 5,364 250,000 4,237 4,237 250,000
2 12,915 10,873 10,873 250,000 8,594 8,594 250,000
3 19,861 16,532 16,532 250,000 13,071 13,071 250,000
4 27,154 22,380 22,380 250,000 17,675 17,675 250,000
5 34,812 28,439 28,439 250,000 22,404 22,404 250,000
6 42,853 34,854 34,854 250,000 27,261 27,261 250,000
7 51,296 41,530 41,530 250,000 32,239 32,239 250,000
8 60,161 48,607 48,607 250,000 37,461 37,461 250,000
9 69,469 55,970 55,970 250,000 42,801 42,801 250,000
10 79,242 63,627 63,627 250,000 48,252 48,252 250,000
11 89,504 71,685 71,685 250,000 53,819 53,819 250,000
12 100,279 80,060 80,060 250,000 59,503 59,503 250,000
13 111,593 88,758 88,758 250,000 65,312 65,312 250,000
14 123,473 97,802 97,802 250,000 71,255 71,255 250,000
15 135,947 107,217 107,217 250,000 77,339 77,339 250,000
16 149,044 116,981 116,981 250,000 83,563 83,563 250,000
17 162,796 127,175 127,175 250,000 89,928 89,928 250,000
18 177,236 137,829 137,829 250,000 96,431 96,431 250,000
19 192,398 148,970 148,970 252,910 103,070 103,070 250,000
20 208,318 160,511 160,511 266,204 109,848 109,848 250,000
25 300,684 224,484 224,484 333,997 146,534 146,534 250,000
30 418,569 299,755 299,755 405,886 190,827 190,827 258,677
</TABLE>
<TABLE>
<C> <S>
* THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
** THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
THE DEATH BENEFIT MAY, AND THE CASH VALUE AND CASH SURRENDER VALUE WILL
DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.
</TABLE>
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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE CONTRACT AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE, AND CASH SURRENDER VALUE FOR A CONTRACT 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 CONTRACT AVERAGED 6%, BUT VARIED
ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE
MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 43
- --------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
LEVEL DEATH BENEFIT OPTION
ISSUE AGE 45 MALE MEDICAL NON-SMOKER
$6,000 PREMIUM PAID FOR 30 YEARS
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.18% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
ACCUMULATED -------------------------------- ---------------------------------
END OF AT 5% CASH CASH
POLICY INTEREST CASH SURRENDER DEATH CASH SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------- ------------- --------- --------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 6,300 5,677 5,677 250,000 4,513 4,513 250,000
2 12,915 11,850 11,850 250,000 9,426 9,426 250,000
3 19,861 18,570 18,570 250,000 14,780 14,780 250,000
4 27,154 25,927 25,927 250,000 20,624 20,624 250,000
5 34,812 34,006 34,006 250,000 27,004 27,004 250,000
6 42,853 43,019 43,019 250,000 33,981 33,981 250,000
7 51,296 52,955 52,955 250,000 41,608 41,608 250,000
8 60,161 64,048 64,048 250,000 50,086 50,086 250,000
9 69,469 76,284 76,284 250,000 59,373 59,373 250,000
10 79,242 89,784 89,784 250,000 69,555 69,555 250,000
11 89,504 104,832 104,832 250,000 80,743 80,743 250,000
12 100,279 121,467 121,467 250,000 93,062 93,062 250,000
13 111,593 139,789 139,789 274,743 106,664 106,664 250,000
14 123,473 159,910 159,910 306,145 121,722 121,722 250,000
15 135,947 182,000 182,000 339,539 138,396 138,396 258,396
16 149,044 206,182 206,182 374,996 156,527 156,527 284,905
17 162,796 232,715 232,715 412,799 176,203 176,203 312,801
18 177,236 261,816 261,816 453,172 197,533 197,533 342,180
19 192,398 293,726 293,726 496,364 220,630 220,630 373,147
20 208,318 328,706 328,706 542,637 245,614 245,614 405,811
25 300,684 560,383 560,383 829,916 404,038 404,038 598,938
30 418,569 923,352 923,352 1,244,505 633,898 633,898 855,322
</TABLE>
<TABLE>
<C> <S>
* THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
** THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
THE DEATH BENEFIT MAY, AND THE CASH VALUE AND CASH SURRENDER VALUE WILL
DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.
</TABLE>
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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE CONTRACT AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE, AND CASH SURRENDER VALUE FOR A CONTRACT 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 CONTRACT AVERAGED 12%, BUT VARIED
ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE
MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
<PAGE>
44 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
INCREASING DEATH BENEFIT OPTION
ISSUE AGE 45 MALE MEDICAL NON-SMOKER
$6,000 PREMIUM PAID FOR 30 YEARS
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.82% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
ACCUMULATED -------------------------------- --------------------------------
END OF AT 5% CASH CASH
POLICY INTEREST CASH SURRENDER DEATH CASH SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------- ------------- --------- --------- ---------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 6,300 5,046 5,046 255,070 3,942 3,942 254,041
2 12,915 9,916 9,916 259,955 7,734 7,734 257,846
3 19,861 14,606 14,606 264,660 11,372 11,372 261,497
4 27,154 19,147 19,147 269,213 14,852 14,852 264,990
5 34,812 23,551 23,551 273,628 18,165 18,165 268,316
6 42,853 27,967 27,967 278,044 21,305 21,305 271,471
7 51,296 32,273 32,273 282,358 24,252 24,252 274,434
8 60,161 36,583 36,583 286,678 27,110 27,110 277,309
9 69,469 40,769 40,769 290,875 29,740 29,740 279,958
10 79,242 44,819 44,819 294,936 32,120 32,120 282,358
11 89,504 48,783 48,783 298,907 34,237 34,237 284,498
12 100,279 52,572 52,572 302,711 36,077 36,077 286,361
13 111,593 56,162 56,162 306,317 37,633 37,633 287,940
14 123,473 59,547 59,547 309,719 38,891 38,891 289,223
15 135,947 62,725 62,725 312,914 39,835 39,835 290,193
16 149,044 65,599 65,599 315,813 40,437 40,437 290,823
17 162,796 68,253 68,253 318,485 40,664 40,664 291,081
18 177,236 70,672 70,672 320,924 40,473 40,473 290,925
19 192,398 72,845 72,845 323,118 39,814 39,814 290,305
20 208,318 74,756 74,756 325,050 38,640 38,640 289,173
25 300,684 79,599 79,599 330,030 23,720 23,720 274,513
30 418,569 74,006 74,006 324,636 -- -- --
</TABLE>
<TABLE>
<C> <S>
* THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
** THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
THE DEATH BENEFIT MAY, AND THE CASH VALUE AND CASH SURRENDER VALUE WILL
DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.
</TABLE>
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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE CONTRACT AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE, AND CASH SURRENDER VALUE FOR A CONTRACT 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 CONTRACT AVERAGED 0%, BUT VARIED
ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE
MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 45
- --------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
INCREASING DEATH BENEFIT OPTION
ISSUE AGE 45 MALE MEDICAL NON-SMOKER
$6,000 PREMIUM PAID FOR 30 YEARS
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.18% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
ACCUMULATED --------------------------------- ---------------------------------
END OF AT 5% CASH CASH
POLICY INTEREST CASH SURRENDER DEATH CASH SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------- ------------- ---------- --------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 6,300 5,359 5,359 255,357 4,215 4,215 254,295
2 12,915 10,854 10,854 260,841 8,526 8,526 258,597
3 19,861 16,484 16,484 266,459 12,927 12,927 262,991
4 27,154 22,283 22,283 272,244 17,419 17,419 267,475
5 34,812 28,271 28,271 278,216 21,993 21,993 272,042
6 42,853 34,607 34,607 284,522 26,644 26,644 276,686
7 51,296 41,180 41,180 291,076 31,353 31,353 281,391
8 60,161 48,123 48,123 297,997 36,230 36,230 286,263
9 69,469 55,315 55,315 305,168 41,134 41,134 291,165
10 79,242 62,754 62,754 312,585 46,039 46,039 296,070
11 89,504 70,528 70,528 320,331 50,932 50,932 300,963
12 100,279 78,540 78,540 328,323 55,789 55,789 305,824
13 111,593 86,769 86,769 336,533 60,600 60,600 310,638
14 123,473 95,219 95,219 344,965 65,343 65,343 315,388
15 135,947 103,895 103,895 353,621 69,995 69,995 320,047
16 149,044 112,704 112,704 362,419 74,518 74,518 324,581
17 162,796 121,735 121,735 371,432 78,866 78,866 328,944
18 177,236 130,981 130,981 380,659 82,983 82,983 333,081
19 192,398 140,437 140,437 390,097 86,799 86,799 336,922
20 208,318 150,092 150,092 399,735 90,246 90,246 340,401
25 300,684 200,723 200,723 450,306 99,598 99,598 349,996
30 418,569 252,661 252,661 502,251 85,961 85,961 336,887
</TABLE>
<TABLE>
<C> <S>
* THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
** THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
THE DEATH BENEFIT MAY, AND THE CASH VALUE AND CASH SURRENDER VALUE WILL
DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.
</TABLE>
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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE CONTRACT AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE, AND CASH SURRENDER VALUE FOR A CONTRACT 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 CONTRACT AVERAGED 6%, BUT VARIED
ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE
MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
<PAGE>
46 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
INCREASING DEATH BENEFIT OPTION
ISSUE AGE 45 MALE MEDICAL NON-SMOKER
$6,000 PREMIUM PAID FOR 30 YEARS
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.18% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
ACCUMULATED ---------------------------------- --------------------------------
END OF AT 5% CASH CASH
POLICY INTEREST CASH SURRENDER DEATH CASH SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------- ------------- ---------- --------- ----------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 6,300 5,672 5,672 255,643 4,490 4,490 254,547
2 12,915 11,829 11,829 261,758 9,351 9,351 259,376
3 19,861 18,514 18,514 268,397 14,616 14,616 264,606
4 27,154 25,812 25,812 275,642 20,320 20,320 270,271
5 34,812 33,799 33,799 283,569 26,496 26,496 276,407
6 42,853 42,703 42,703 292,393 33,186 33,186 283,052
7 51,296 52,489 52,489 302,102 40,421 40,421 290,239
8 60,161 63,378 63,378 312,905 48,370 48,370 298,136
9 69,469 75,341 75,341 324,774 56,952 56,952 306,663
10 79,242 88,476 88,476 337,807 66,206 66,206 315,859
11 89,504 103,031 103,031 352,238 76,188 76,188 325,777
12 100,279 119,005 119,005 368,088 86,951 86,951 336,472
13 111,593 136,516 136,516 385,464 98,566 98,566 348,013
14 123,473 155,721 155,721 404,522 111,105 111,105 360,471
15 135,947 176,793 176,793 425,431 124,642 124,642 373,921
16 149,044 199,827 199,827 448,294 139,246 139,246 388,432
17 162,796 225,114 225,114 473,385 154,990 154,990 404,077
18 177,236 252,878 252,878 500,932 171,940 171,940 420,922
19 192,398 283,365 283,365 531,182 190,165 190,165 439,036
20 208,318 316,844 316,844 564,400 209,741 209,741 458,494
25 300,684 540,277 540,277 800,140 331,491 331,491 579,515
30 418,569 891,524 891,524 1,201,606 502,933 502,933 750,014
</TABLE>
<TABLE>
<C> <S>
* THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
** THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
RATES, ADMINISTRATIVE FEES, MORTALITY AND EXPENSE RISK RATES, AND FRONT-END
SALES LOADS.
THE DEATH BENEFIT MAY, AND THE CASH VALUE AND CASH SURRENDER VALUE WILL
DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.
</TABLE>
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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE CONTRACT AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE, AND CASH SURRENDER VALUE FOR A CONTRACT 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 CONTRACT 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.
