<PAGE>
As filed with the Securities and Exchange Commission on April 13, 2000.
File No. 333-60515
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 2 TO
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF
SECURITIES OF UNIT INVESTMENT TRUSTS REGISTERED ON
FORM N-8B-2
A. Exact name of trust: ICMG Registered Variable Life Separate Account A
B. Name of depositor: Hartford Life Insurance Company
C. Complete address of depositor's principal executive offices:
P.O. Box 2999
Hartford, CT 06104-2999
D. Name and complete address of agent for service:
Marianne O'Doherty, Esq.
Hartford Life Insurance Company
P.O. Box 2999
Hartford, CT 06104-2999
It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b) of Rule 485
---
X on May 1, 2000 pursuant to paragraph (b) of Rule 485
---
60 days after filing pursuant to paragraph (a)(1) of Rule 485
---
on pursuant to paragraph (a)(1) of Rule 485 this
---
post-effective amendment designates a new effective date for a
--- previously filed post-effective amendment.
E. Title and amount of securities being registered: Pursuant to Rule 24f-2
under the Investment Company Act of 1940, the Registrant will register an
indefinite amount of securities.
F. Proposed maximum aggregate offering price to the public of the securities
being registered: Not yet determined.
G. Amount of filing fee: Not applicable.
H. Approximate date of proposed public offering: As soon as practicable after
the effective date of this registration statement.
<PAGE>
RECONCILIATION AND TIE BETWEEN
FORM N-8B-2 AND PROSPECTUS
<TABLE>
<CAPTION>
Item No. of Form N-8B-2 Caption In Prospectus
- ----------------------- ---------------------
<S> <C>
1. Cover Page
2. Cover Page
3. Not Applicable
4. Statement of Additional Information - Distribution of
the Policies
5. About Us - ICMG Registered Life Separate Account A
6. About Us - ICMG Registered Life Separate Account A
7. Not required by Form S-6
8. Not required by Form S-6
9. Legal Proceedings
10. About Us - ICMG Registered Variable Life Separate
Account A; The Funds
11. About Us - ICMG Registered Variable Life Separate
Account A; The Funds
12. About Us - The Funds
13. Fee Table; Charges and Deductions
14. Premiums
15. Premiums
16. Premiums
17. Making Withdrawals From Your Policy
18. About Us - The Funds; Charges and Deductions
19. Your Policy - Contract Rights
20. Not Applicable
21. Loans
22. Not Applicable
23. Not Applicable
24. Not Applicable
25. About Us - Hartford Life Insurance Company
26. Not Applicable
27. About Us - Hartford Life Insurance Company
28. Statement of Additional Information - General
Information and History
29. About Us - Hartford Life Insurance Company
30. Not Applicable
31. Not Applicable
32. Not Applicable
<PAGE>
<CAPTION>
Item No. of Form N-8B-2 Caption In Prospectus
- ----------------------- ---------------------
<S> <C>
33. Not Applicable
34. Not Applicable
35. Statement of Additional Information - Distribution of
the Policies
36. Not required by Form S-6
37. Not Applicable
38. Statement of Additional Information - Distribution of
the Policies
39. Statement of Additional Information - Distribution of
the Policies
40. Not Applicable
41. Statement of Additional Information - Distribution of
the Policies
42. Not Applicable
43. Not Applicable
44. Premiums
45. Not Applicable
46. Premiums; Making Withdrawals From Your Policy
47. About Us - The Funds
48. Cover Page; About Us - Hartford Life Insurance Company
49. Not Applicable
50. About Us - ICMG Registered Variable Life Separate
Account A
51. Not Applicable
52. About Us - The Funds
53. Taxes
54. Not Applicable
55. Not Applicable
56. Not Required by Form S-6
57. Not Required by Form S-6
58. Not Required by Form S-6
59. Not Required by Form S-6
</TABLE>
<PAGE>
<TABLE>
<S> <C>
OMNISOURCE-SM-
GROUP FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICIES
HARTFORD LIFE INSURANCE COMPANY
P.O. BOX 2999
HARTFORD, CONNECTICUT 06104-2999
TELEPHONE: (800) 861-1408 [LOGO]
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This Prospectus describes information you should know before you enroll for
coverage under the OmniSource(SM) group flexible premium variable life insurance
policy. Please read it carefully.
The OmniSource(SM) group flexible premium variable life insurance policy is a
contract issued by Hartford Life Insurance Company to an employer, a trust
sponsored by an employer or an employer sponsored program. We will issue you a
certificate of insurance that describes your rights, benefits, obligations and
options under the group policy, including your payment of premiums and our
payment of a death benefit to your beneficiaries. Your certificate is:
x Flexible premium, because you have options when selecting the timing and
amounts of your premium payments.
x Variable, because the value of your life insurance coverage may fluctuate
with the performance of the underlying
Portfolio(s).
- --------------------------------------------------------------------------------
After you enroll, you allocate your payments to separate divisions of our
separate account, known as Investment Divisions. The current Investment
Divisions available are:
<TABLE>
<CAPTION>
INVESTMENT DIVISION PURCHASES SHARES OF:
<S> <C>
Alger American Growth Investment Division (EFFECTIVE Alger American Growth Portfolio of The Alger
JULY 5, 2000, CLOSED TO NEW PREMIUMS AND TRANSFER OF American Fund
INVESTMENT VALUE)
Alger American Small Capitalization Investment Division Alger American Small Capitalization Portfolio of
(EFFECTIVE JULY 5, 2000, CLOSED TO NEW PREMIUMS AND The Alger American Fund
TRANSFER OF INVESTMENT VALUE)
American Funds Global Growth Investment Division Class 2 of the Global Growth Fund of American
Funds Insurance Series
American Funds Global Small Capitalization Investment Class 2 of the Global Small Capitalization Fund of
Division American Funds Insurance Series
American Funds Growth Investment Division Class 2 of the Growth Fund of American Funds
Insurance Series
American Funds International Investment Division Class 2 of the International Fund of American
Funds Insurance Series
American Funds Asset Allocation Investment Division Class 2 of the Asset Allocation Fund of American
Funds Insurance Series
Deutsche VIT EAFE-Registered Trademark- Equity Index EAFE-Registered Trademark- Equity Index Fund of
Investment Division the Deutsche Asset Management VIT Funds
Deutsche VIT Equity 500 Index Investment Division Equity 500 Index Fund of the Deutsche Asset
Management VIT Funds
Deutsche VIT Small Cap Index Investment Division Small Cap Index Fund of the Deutsche Asset
Management VIT Funds
Franklin Small Cap Investment Division Class 2 of the Franklin Small Cap Fund of the
Franklin Templeton Variable Insurance Products
Trust
Franklin Strategic Income Securities Investment Division Class 1 of the Franklin Strategic Income
Securities Fund of the Franklin Templeton Variable
Insurance Products Trust
Franklin Templeton Mutual Shares Securities Investment Class 2 of the Mutual Shares Securities Fund of
Division the Franklin Templeton Variable Insurance Products
Trust
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT DIVISION PURCHASES SHARES OF:
<S> <C>
Templeton Growth Securities Investment Division Class 2 of the Templeton Growth Securities Fund of
the Franklin Templeton Variable Insurance Products
Trust
Templeton International Securities Investment Division Class 2 of the Templeton International Securities
Fund of the Franklin Templeton Variable Insurance
Products Trust
Hartford Capital Appreciation Investment Division Class IA of Hartford Capital Appreciation HLS Fund
Hartford Stock Investment Division Class IA of Hartford Stock HLS Fund
Hartford Advisers Investment Division Class IA of Hartford Advisers HLS Fund
Hartford Bond Investment Division Class IA of Hartford Bond HLS Fund
Hartford Money Market Investment Division Class IA of Hartford Money Market HLS Fund
Janus Aspen Aggressive Growth Investment Division Service Shares of the Aggressive Growth Portfolio
of the Janus Aspen Series
Janus Aspen International Growth Investment Division Service Shares of the International Growth
Portfolio of the Janus Aspen Series
Janus Aspen Worldwide Growth Investment Division Service Shares of the Worldwide Growth Portfolio
of the Janus Aspen Series
Janus Aspen Balanced Investment Division Service Shares of the Balanced Portfolio of the
Janus Aspen Series
Janus Aspen Flexible Income Investment Division Service Shares of the Flexible Income Portfolio of
the
Janus Aspen Series
J.P. Morgan Bond Investment Division J.P. Morgan Bond Portfolio of the J.P. Morgan
Series Trust II
J.P. Morgan International Opportunities Investment J.P. Morgan International Opportunities Portfolio
Division of the J.P. Morgan Series Trust II
J.P. Morgan Small Company Investment Division J.P. Morgan Small Company Portfolio of the
J.P. Morgan Series Trust II
J.P. Morgan U.S. Disciplined Equity Investment Division J.P. Morgan U.S. Disciplined Equity Portfolio of
the J.P. Morgan Series Trust II
MFS Emerging Growth Investment Division MFS-Registered Trademark- Emerging Growth Series
of the MFS-Registered Trademark- Variable
Insurance Trust(SM)
MFS Capital Opportunities Investment Division MFS-Registered Trademark- Capital Opportunities
Series of the MFS-Registered Trademark- Variable
Insurance Trust(SM)
MFS Growth with Income Investment Division MFS-Registered Trademark- Growth with Income
Series of the MFS-Registered Trademark- Variable
Insurance Trust(SM)
MFS New Discovery Investment Division MFS-Registered Trademark- New Discovery Series of
the MFS-Registered Trademark- Variable Insurance
Trust(SM)
MFS High Income Investment Division MFS-Registered Trademark- High Income Series of
the MFS-Registered Trademark- Variable
Insurance Trust(SM)
MSAM Emerging Markets Equity Investment Division Emerging Markets Equity Portfolio of The Universal
Institutional Funds, Inc.
MSAM Equity Growth Investment Division (EFFECTIVE JULY 5, Equity Growth Portfolio of The Universal
2000, CLOSED TO NEW PREMIUMS AND TRANSFER OF INVESTMENT Institutional Funds, Inc.
VALUE)
MAS Fixed Income Investment Division Fixed Income Portfolio of The Universal
Institutional Funds, Inc.
MSAM Global Equity Investment Division (EFFECTIVE JULY 5, Global Equity Portfolio of The Universal
2000, CLOSED TO NEW PREMIUMS AND TRANSFER OF INVESTMENT Institutional Funds, Inc.
VALUE)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT DIVISION PURCHASES SHARES OF:
<S> <C>
MAS High Yield Investment Division High Yield Portfolio of The Universal
Institutional Funds, Inc.
MAS Mid Cap Growth Investment Division Mid Cap Growth Portfolio of The Universal
Institutional Funds, Inc.
MSAM Technology Investment Division Technology Portfolio of The Universal
Institutional Funds, Inc.
MAS Value Investment Division (EFFECTIVE JULY 5, 2000, Value Portfolio of The Universal Institutional
CLOSED TO NEW PREMIUMS AND TRANSFER OF INVESTMENT VALUE) Funds, Inc.
Neuberger Berman Advisers Management Trust Balanced Balanced Portfolio of the Neuberger Berman
Investment Division (EFFECTIVE JULY 5, 2000, CLOSED TO NEW Advisers Management Trust
PREMIUMS AND TRANSFER OF INVESTMENT VALUE)
Neuberger Berman Advisers Management Trust Limited Limited Maturity Bond Portfolio of the Neuberger
Maturity Bond Investment Division (EFFECTIVE JULY 5, 2000, Berman Advisers Management Trust
CLOSED TO NEW PREMIUMS AND TRANSFER OF INVESTMENT VALUE)
Neuberger Berman Advisers Management Trust Partners Partners Portfolio of Neuberger Berman Advisers
Investment Division (EFFECTIVE JULY 5, 2000, CLOSED TO NEW Management Trust
PREMIUMS AND TRANSFER OF INVESTMENT VALUE)
Variable Insurance Products Fund Equity-Income Investment Initial Class of the Equity-Income Portfolio of
Division (EFFECTIVE JULY 5, 2000, CLOSED TO NEW PREMIUMS the Variable Insurance Products Fund
AND TRANSFER OF INVESTMENT VALUE)
Variable Insurance Products Fund High Income Investment Initial Class of the High Income Portfolio of the
Division (EFFECTIVE JULY 5, 2000, CLOSED TO NEW PREMIUMS Variable Insurance Products Fund
AND TRANSFER OF INVESTMENT VALUE)
Variable Insurance Products Fund Overseas Investment Initial Class of the Overseas Portfolio of the
Division (EFFECTIVE JULY 5, 2000, CLOSED TO NEW PREMIUMS Variable Insurance Products Fund
AND TRANSFER OF INVESTMENT VALUE)
Variable Insurance Products Fund II Asset Manager Initial Class of the Asset Manager Portfolio of
Investment Division (EFFECTIVE JULY 5, 2000, CLOSED TO NEW the Variable Insurance Products Fund II
PREMIUMS AND TRANSFER OF INVESTMENT VALUE)
</TABLE>
If you decide to enroll for coverage under this group life insurance policy, you
should keep this Prospectus for your records.
The Hartford prospectus included in this OmniSource(SM) Prospectus contains
information relating to all of the Funds they offer. Not all of the Funds in the
Hartford prospectus are available to you. Please review this OmniSource(SM)
product prospectus for details regarding available Funds.
Although we file this Prospectus with the Securities and Exchange Commission,
the Commission doesn't approve or disapprove these securities or determine if
the information is truthful or complete. Anyone who represents that the
Securities and Exchange Commission does these things may be guilty of a criminal
offense.
This Prospectus can also be obtained from the Securities and Exchange
Commission's website (HTTP://WWW.SEC.GOV).
- --------------------------------------------------------------------------------
PROSPECTUS DATED: MAY 1, 2000
<PAGE>
4 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
- ----------------------------------------------------------------------
<S> <C>
SUMMARY OF BENEFITS AND RISKS 7
- ----------------------------------------------------------------------
Benefits of Your Policy 7
- ----------------------------------------------------------------------
Risks of Your Policy 7
- ----------------------------------------------------------------------
FEE TABLES 8
- ----------------------------------------------------------------------
ABOUT US 13
- ----------------------------------------------------------------------
Hartford Life Insurance Company 13
- ----------------------------------------------------------------------
ICMG Registered Variable Life Separate Account A 13
- ----------------------------------------------------------------------
The Funds 13
- ----------------------------------------------------------------------
CHARGES AND DEDUCTIONS 17
- ----------------------------------------------------------------------
Deductions From Premium 17
- ----------------------------------------------------------------------
Deductions From Investment Value 17
- ----------------------------------------------------------------------
YOUR CERTIFICATE 18
- ----------------------------------------------------------------------
Ownership Rights 18
- ----------------------------------------------------------------------
Beneficiary 18
- ----------------------------------------------------------------------
Assignment 18
- ----------------------------------------------------------------------
Statements 18
- ----------------------------------------------------------------------
Issuance of Your Certificate 18
- ----------------------------------------------------------------------
Right to Examine the Certificate 18
- ----------------------------------------------------------------------
PREMIUMS 19
- ----------------------------------------------------------------------
Premium Payment Flexibility 19
- ----------------------------------------------------------------------
Allocation of Premium Payments 19
- ----------------------------------------------------------------------
Accumulation Units 19
- ----------------------------------------------------------------------
Accumulation Unit Values 19
- ----------------------------------------------------------------------
Premium Limitation 20
- ----------------------------------------------------------------------
DEATH BENEFITS AND POLICY VALUES 20
- ----------------------------------------------------------------------
Values Under the Certificate 20
- ----------------------------------------------------------------------
Death Benefits 20
- ----------------------------------------------------------------------
MAKING WITHDRAWALS FROM THE CERTIFICATE 21
- ----------------------------------------------------------------------
Surrender 21
- ----------------------------------------------------------------------
Partial Withdrawals 22
- ----------------------------------------------------------------------
TRANSFERS AMONG INVESTMENT DIVISIONS 22
- ----------------------------------------------------------------------
Amount and Frequency of Transfers 22
- ----------------------------------------------------------------------
Transfers to or from Investment Divisions 22
- ----------------------------------------------------------------------
Asset Rebalancing 22
- ----------------------------------------------------------------------
Dollar Cost Averaging 23
- ----------------------------------------------------------------------
Procedures for Telephone Transfers 23
- ----------------------------------------------------------------------
Processing of Transactions 23
- ----------------------------------------------------------------------
LOANS 23
- ----------------------------------------------------------------------
</TABLE>
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 5
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
- ----------------------------------------------------------------------
<S> <C>
Loan Interest 23
- ----------------------------------------------------------------------
Credited Interest 24
- ----------------------------------------------------------------------
Loan Repayments 24
- ----------------------------------------------------------------------
Termination Due to Excessive Debt 24
- ----------------------------------------------------------------------
Effect of Loans on Investment Value 24
- ----------------------------------------------------------------------
LAPSE AND REINSTATEMENT 24
- ----------------------------------------------------------------------
Lapse and Grace Period 24
- ----------------------------------------------------------------------
Reinstatement 24
- ----------------------------------------------------------------------
TERMINATION OF POLICY 25
- ----------------------------------------------------------------------
CONTRACT LIMITATIONS 25
- ----------------------------------------------------------------------
Partial Withdrawals 25
- ----------------------------------------------------------------------
Transfers of Account Value 25
- ----------------------------------------------------------------------
Face Amount Increases or Decreases 25
- ----------------------------------------------------------------------
Valuation of Payments and Transfers 25
- ----------------------------------------------------------------------
Deferral of Payments 25
- ----------------------------------------------------------------------
CHANGES TO CONTRACT OR SEPARATE ACCOUNT 25
- ----------------------------------------------------------------------
Modification of Policy 25
- ----------------------------------------------------------------------
Substitution of Funds 25
- ----------------------------------------------------------------------
Change in Operation of the Separate Account 25
- ----------------------------------------------------------------------
Separate Account Taxes 25
- ----------------------------------------------------------------------
SUPPLEMENTAL BENEFITS 26
- ----------------------------------------------------------------------
Maturity Date Extension Rider 26
- ----------------------------------------------------------------------
OTHER MATTERS 26
- ----------------------------------------------------------------------
Reduced Charges for Eligible Groups 26
- ----------------------------------------------------------------------
Our Rights 26
- ----------------------------------------------------------------------
Limit on Right to Contest 26
- ----------------------------------------------------------------------
Misstatement as to Age or Sex 26
- ----------------------------------------------------------------------
Assignment 26
- ----------------------------------------------------------------------
Dividends 26
- ----------------------------------------------------------------------
TAXES 27
- ----------------------------------------------------------------------
General 27
- ----------------------------------------------------------------------
Taxation of Hartford and the Separate Account 27
- ----------------------------------------------------------------------
Income Taxation of Certificate Benefits 27
- ----------------------------------------------------------------------
Modified Endowment Contracts 27
- ----------------------------------------------------------------------
Diversification Requirements 28
- ----------------------------------------------------------------------
Ownership of the Assets in the Separate Account 28
- ----------------------------------------------------------------------
Tax Deferral During Accumulation Period 28
- ----------------------------------------------------------------------
Federal Income Tax Withholding 29
- ----------------------------------------------------------------------
Other Tax Considerations 29
- ----------------------------------------------------------------------
PERFORMANCE RELATED INFORMATION 29
- ----------------------------------------------------------------------
</TABLE>
<PAGE>
6 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
- ----------------------------------------------------------------------
<S> <C>
LEGAL PROCEEDINGS 29
- ----------------------------------------------------------------------
GLOSSARY OF SPECIAL TERMS 30
- ----------------------------------------------------------------------
WHERE YOU CAN FIND MORE INFORMATION 31
- ----------------------------------------------------------------------
</TABLE>
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 7
- --------------------------------------------------------------------------------
SUMMARY OF BENEFITS AND RISKS
BENEFITS OF YOUR POLICY
FLEXIBILITY -- We designed the policy to be flexible to meet your specific life
insurance needs. You have the flexibility to choose death benefit options,
investment options, and premiums you pay.
DEATH BENEFIT -- We will pay a death benefit to your beneficiary if the Insured
dies while the Certificate is in force. You select one of two death benefit
options. These options are:
- - Option A -- Under Option A the death benefit is equal to the larger of:
- The Face Amount; and
- The Variable Insurance Amount.
- - Option B -- Under Option B the death benefit is equal to the larger of:
- The Face Amount plus the Cash Value; and
- The Variable Insurance Amount.
We reduce the death benefit by any money you owe us, such as outstanding Loans
or Loan interest. You may change your death benefit option under certain
circumstances. You may also increase or decrease the Face Amount on your
Certificate under certain circumstances.
INVESTMENT OPTIONS -- You may invest in up to 20 different Investment Divisions,
from a choice of 49 Investment Divisions available under your Certificate. You
may transfer money among the Investment Divisions, subject to restrictions.
PREMIUM PAYMENTS -- You have the flexibility to choose when and in what amounts
you pay premiums.
RIGHT TO EXAMINE YOUR CERTIFICATE -- For 10 days after you receive your
Certificate, you may cancel it without paying a sales charge. Some states
provide a longer examination period.
WITHDRAWALS -- You may withdraw all or part of amounts available under your
Certificate, subject to certain limitations.
LOANS -- You may take a Loan under the Certificate. The Certificate secures the
Loan.
PAYMENT OPTIONS -- Your beneficiary may choose to receive the proceeds due under
the Certificate,
- - in a lump sum; or
- - over a period of time by using one of several payment options.
DOLLAR COST AVERAGING -- You may elect to allocate your Net Premiums among the
Investment Divisions using the dollar cost averaging option program. The main
objective of this program is to minimize the impact of short-term price
fluctuations to allow you to take advantage of market fluctuations.
ASSET REBALANCING -- You may elect to have us automatically reallocate
Investment Value periodically in order to maintain a particular percentage
allocation among the Investment Divisions that you selected ("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.
WHAT DOES YOUR PREMIUM PAY FOR?
Your premium payment does three things: (1) it pays for insurance coverage,
(2) it acts as an investment in the Investment Divisions, and (3) it pays for
sales loads and other charges.
RISKS OF YOUR POLICY
INVESTMENT PERFORMANCE -- The value of your Certificate will fluctuate with the
performance of its Investment Divisions. Your investment options may decline in
value, or they may not perform to your expectations. We do not guarantee your
Investment Value in the Investment Divisions.
TERMINATION
- - CERTIFICATE -- Your Certificate could terminate if the Cash Surrender Value
becomes too low to pay the charges due under the Certificate. If this occurs,
Hartford will notify you in writing. You will then have sixty-one (61) days to
pay additional amounts to prevent the Certificate from terminating.
- - POLICY -- Hartford or the employer may terminate participation in the Policy.
The party terminating the Policy must provide you with a notice of the
termination, at your last known address, at least fifteen (15) days prior to
the date of termination.
PARTIAL WITHDRAWAL LIMITATIONS -- We limit you to twelve (12) partial
withdrawals per Coverage Year. These withdrawals will reduce your Cash Surrender
Value, may reduce your death benefit, and may be subject to a processing charge.
TRANSFER LIMITATIONS -- We reserve the right to limit the size of transfers and
remaining balances, and to limit the number and frequency of transfers among the
Investment Divisions.
LOANS -- Taking a Loan under your Certificate may increase the risk that your
Certificate will lapse, may have a permanent effect on your Investment Value,
and may reduce the Death Proceeds.
ADVERSE TAX CONSEQUENCES -- You may be subject to income tax if you receive any
Loans, withdrawals or other amounts under the Certificate. You may also be
subject to a 10% penalty tax.
<PAGE>
8 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
FEE TABLES
The following tables describe the MAXIMUM fees and expenses that you will pay
under the Certificate.
MAXIMUM TRANSACTION FEES
<TABLE>
<CAPTION>
CHARGE WHEN CHARGE IS DEDUCTED AMOUNT DEDUCTED
<S> <C> <C>
Sales Charge(1) When you pay premium. 9% of any premium paid for
Coverage Years 1 through 7, and
7% of any premium paid in
Coverage Years 8 and later.
- ---------------------------------------------------------------------------------------------
Premium Tax Charge When you pay premium. Generally, between 0% and 4% of
any premium you pay. The
percentage we deduct will vary
by locale depending on the tax
rates in effect there.
- ---------------------------------------------------------------------------------------------
Deferred Acquisition Cost When you pay premium. 1.25% of each premium you pay.
Tax Charge We will adjust the charge based
on changes in the applicable tax
law.
- ---------------------------------------------------------------------------------------------
Transfer Fees When you make a transfer after $50 per transfer.
the 12th transfer in any
Coverage Year.
- ---------------------------------------------------------------------------------------------
Partial Withdrawal Fee When you take a withdrawal. $25 per partial withdrawal.
<CAPTION>
CHARGE CERTIFICATES FROM WHICH CHARGE IS DEDUCTED
<S> <C>
Sales Charge(1) All
- -------------------------
Premium Tax Charge All
- -------------------------
Deferred Acquisition Cost All
Tax Charge
- -------------------------
Transfer Fees Those Certificates with more than 12
transfers per Contract Year.
- -------------------------
Partial Withdrawal Fee Those Certificates where a partial
withdrawal is made.
</TABLE>
(1) The current front end sales load charged 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 next table describes the MAXIMUM fees and expenses that you will pay
periodically, not including Fund fees and expenses.
MAXIMUM ANNUAL CHARGES OTHER THAN FUND OPERATING EXPENSES
<TABLE>
<CAPTION>
CHARGE WHEN CHARGE IS DEDUCTED AMOUNT DEDUCTED
<S> <C> <C>
Cost of Insurance Charges Monthly. The charge is the cost of
insurance rate times the net
amount at risk. The cost of
insurance rates depend on issue
age, sex, insurance class and
substandard rating. The monthly
cost of insurance charge ranges
from $0.084 per $1,000 to
$85.527 per $1,000.
- ---------------------------------------------------------------------------------------------
Mortality and Expense Daily. On an annual basis, .65% of the
Risk Charge value of each Investment
Division's assets.
- ---------------------------------------------------------------------------------------------
Administrative Charge Monthly. $10 per Coverage Month.
- ---------------------------------------------------------------------------------------------
Rider Charges Monthly. Individualized based on optional
rider selected.
<CAPTION>
CHARGE CERTIFICATES FROM WHICH CHARGE IS DEDUCTED
<S> <C>
Cost of Insurance Charges All
- -------------------------
Mortality and Expense All
Risk Charge
- -------------------------
Administrative Charge All
- -------------------------
Rider Charges Only those Certificates with benefits
provided by rider.
</TABLE>
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 9
- --------------------------------------------------------------------------------
The next table describes the Fund fees and expenses that you will pay
periodically. The table shows the annual fees and expenses charged by the Funds
for the year ended December 31, 1999. The prospectus for each Fund contains more
detail concerning each Fund's fees and expenses.
ANNUAL FUND OPERATING EXPENSES
AS OF EACH FUND'S FISCAL YEAR END
(AS A PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
TOTAL
OTHER OPERATING
MANAGEMENT FEE 12B-1 FEES EXPENSES EXPENSES(1)
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Alger American Growth Portfolio (2) 0.75% N/A 0.04% 0.79%
- ------------------------------------------------------------------------------------------------------------------
Alger American Small Capitalization Portfolio (2) 0.85% N/A 0.05% 0.90%
- ------------------------------------------------------------------------------------------------------------------
American Funds Global Growth Fund -- Class 2 0.68% 0.25% 0.03% 0.96%
- ------------------------------------------------------------------------------------------------------------------
American Funds Global Small Capitalization Fund -- Class 2 0.78% 0.25% 0.03% 1.06%
- ------------------------------------------------------------------------------------------------------------------
American Funds Growth Fund -- Class 2 0.38% 0.25% 0.01% 0.64%
- ------------------------------------------------------------------------------------------------------------------
American Funds International Fund -- Class 2 0.55% 0.25% 0.05% 0.85%
- ------------------------------------------------------------------------------------------------------------------
American Funds Asset Allocation Fund -- Class 2 0.43% 0.25% 0.01% 0.69%
- ------------------------------------------------------------------------------------------------------------------
Deutsche VIT EAFE-Registered Trademark- Equity Index
Fund (3) 0.26% N/A 0.39% 0.65%
- ------------------------------------------------------------------------------------------------------------------
Deutsche VIT Equity 500 Index Fund (3) 0.14% N/A 0.16% 0.30%
- ------------------------------------------------------------------------------------------------------------------
Deutsche VIT Small Cap Index Fund (3) 0.13% N/A 0.32% 0.45%
- ------------------------------------------------------------------------------------------------------------------
Franklin Small Cap Fund -- Class 2 (4)(5) 0.55% 0.25% 0.27% 1.07%
- ------------------------------------------------------------------------------------------------------------------
Franklin Strategic Income Securities Fund -- Class 1 (6) 0.43% N/A 0.32% 0.75%
- ------------------------------------------------------------------------------------------------------------------
Mutual Shares Securities Fund -- Class 2 (4)(7) 0.60% 0.25% 0.19% 1.04%
- ------------------------------------------------------------------------------------------------------------------
Templeton Growth Securities Fund -- Class 2 (4)(8) 0.83% 0.25% 0.05% 1.13%
- ------------------------------------------------------------------------------------------------------------------
Templeton International Securities Fund -- Class 2 (4)(9) 0.69% 0.25% 0.19% 1.13%
- ------------------------------------------------------------------------------------------------------------------
Hartford Capital Appreciation HLS Fund -- Class IA 0.64% N/A 0.02% 0.66%
- ------------------------------------------------------------------------------------------------------------------
Hartford Stock HLS Fund -- Class IA 0.46% N/A 0.02% 0.48%
- ------------------------------------------------------------------------------------------------------------------
Hartford Advisers HLS Fund -- Class IA 0.63% N/A 0.02% 0.65%
- ------------------------------------------------------------------------------------------------------------------
Hartford Bond HLS Fund -- Class IA 0.49% N/A 0.03% 0.52%
- ------------------------------------------------------------------------------------------------------------------
Hartford Money Market HLS Fund -- Class IA 0.45% N/A 0.02% 0.47%
- ------------------------------------------------------------------------------------------------------------------
Janus Aspen Aggressive Growth Portfolio -- Service
Shares (10) 0.67% 0.25% 0.02% 0.94%
- ------------------------------------------------------------------------------------------------------------------
Janus Aspen International Growth Portfolio -- Service
Shares (10) 0.65% 0.25% 0.11% 1.01%
- ------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth Portfolio -- Service
Shares (10) 0.65% 0.25% 0.05% 0.95%
- ------------------------------------------------------------------------------------------------------------------
Janus Aspen Balanced Portfolio -- Service Shares (10) 0.65% 0.25% 0.02% 0.92%
- ------------------------------------------------------------------------------------------------------------------
Janus Aspen Flexible Income Portfolio -- Service
Shares (10) 0.65% 0.25% 0.07% 0.97%
- ------------------------------------------------------------------------------------------------------------------
J.P. Morgan Bond Portfolio (11) 0.30% N/A 0.45% 0.75%
- ------------------------------------------------------------------------------------------------------------------
J.P. Morgan International Opportunities Portfolio (11) 0.60% N/A 0.60% 1.20%
- ------------------------------------------------------------------------------------------------------------------
J.P. Morgan Small Company Portfolio (11) 0.60% N/A 0.55% 1.15%
- ------------------------------------------------------------------------------------------------------------------
J.P. Morgan U.S. Disciplined Equity Portfolio (11) 0.35% N/A 0.50% 0.85%
- ------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Series (12) 0.75% N/A 0.09% 0.84%
- ------------------------------------------------------------------------------------------------------------------
MFS Capital Opportunities Series (12)(13) 0.75% N/A 0.16% 0.91%
- ------------------------------------------------------------------------------------------------------------------
MFS Growth with Income Series (12) 0.75% N/A 0.13% 0.88%
- ------------------------------------------------------------------------------------------------------------------
MFS New Discovery Series (12)(13) 0.90% N/A 0.17% 1.07%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
10 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL
OTHER OPERATING
MANAGEMENT FEE 12B-1 FEES EXPENSES EXPENSES(1)
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
MFS High Income Series (12)(13) 0.75% N/A 0.16% 0.91%
- ------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. Emerging Markets
Equity Portfolio (14) 1.25% N/A 1.37% 2.62%
- ------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. Equity Growth
Portfolio (2)(14) 0.55% N/A 0.56% 1.11%
- ------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. Fixed Income
Portfolio (14) 0.40% N/A 0.56% 0.96%
- ------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. Global Equity
Portfolio (2)(14) 0.80% N/A 0.68% 1.48%
- ------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. High Yield
Portfolio (14) 0.50% N/A 0.61% 1.11%
- ------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. Mid Cap Growth
Portfolio (15) 0.75% N/A 1.25% 2.00%
- ------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. Technology
Portfolio (15) 0.80% N/A 1.85% 2.65%
- ------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. Value
Portfolio (2)(14) 0.55% N/A 0.67% 1.22%
- ------------------------------------------------------------------------------------------------------------------
Neuberger Berman Advisers Management Trust Balanced
Portfolio (2) 0.85% N/A 0.17% 1.02%
- ------------------------------------------------------------------------------------------------------------------
Neuberger Berman Advisers Management Trust Limited Maturity
Bond Portfolio (2) 0.65% N/A 0.11% 0.76%
- ------------------------------------------------------------------------------------------------------------------
Neuberger Berman Advisers Management Trust Partners
Portfolio (2) 0.80% N/A 0.07% 0.87%
- ------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund Equity-Income
Portfolio (2)(16) 0.48% N/A 0.08% 0.56%
- ------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund High Income Portfolio (2) 0.58% N/A 0.11% 0.69%
- ------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund Overseas Portfolio (2)(16) 0.73% N/A 0.14% 0.87%
- ------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund II Asset Manager
Portfolio (2)(16) 0.53% N/A 0.09% 0.62%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) "Management Fee" generally represents the fee paid to the investment adviser
or its affiliate for investment and administrative services provided. "Other
Expenses" are operating expenses (other than management fees) deducted from
the Portfolios, including legal, accounting and custodian fees. For a
complete description of the nature of the services provided in consideration
of the operating expenses deducted, please see the Fund prospectuses.
(2) Effective July 5, 2000, closed to new premiums or transfer of Investment
Value.
(3) The investment advisor, Bankers Trust Company, has contractually agreed to
waive its management fee and reimburse certain expenses. Such waivers by
Bankers Trust Company will stay in effect until at least April 30, 2001.
Without expense waivers and reimbursements, it is estimated that Management
Fees, Other Expenses and Total Operating Expenses for Deutsche VIT
EAFE-Registered Trademark-Equity Index Fund, Deutsche VIT Equity 500 Index
Fund and Deutsche VIT Small Cap Index Fund would have been as follows:
<TABLE>
<CAPTION>
TOTAL
OTHER OPERATING
MANAGEMENT FEE 12B-1 FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Deutsche VIT EAFE-Registered Trademark- Equity Index
Fund 0.45% N/A 0.69% 1.14%
- ------------------------------------------------------------------------------------------------------------
Deutsche VIT Equity 500 Index Fund 0.20% N/A 0.23% 0.43%
- ------------------------------------------------------------------------------------------------------------
Deutsche VIT Small Cap Index Fund 0.35% N/A 0.83% 1.18%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(4) The fund's class 2 distribution plan or "rule 12b-1 plan" is described in
the fund's prospectus. While the maximum amount payable under the fund's
class 2 rule 12b-1 plan is 0.35% per year of the fund's average daily net
assets, the Board of Trustees of Franklin Templeton Variable Insurance
Products Trust has set the current rate at 0.25% per year.
(5) On 2/8/00, a merger and reorganization was approved that combined the assets
of the fund with a similar fund of the Templeton Variable Products Series
Fund, effective 5/1/00. On 2/8/00, fund shareholders approved new management
fees, which apply to the combined fund effective 5/1/00. The table shows
restated total expenses based on the new fees and assets of the fund as of
12/31/99, and not the assets of the combined fund. However, if the table
reflected both the new fees and the combined assets, the fund's expenses
after 5/1/00 would be estimated as: Management Fees 0.55%, Distribution and
Service Fees 0.25%, Other Expenses 0.27%, and Total Fund Operating Expenses
1.07%.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 11
- --------------------------------------------------------------------------------
(6) The manager and administrator have agreed in advance to waive or limit their
respective fees and the manager to assume as its own expense certain
expenses otherwise payable by the fund so that total annual fund operating
expenses do not exceed 0.75% for the current fiscal year. After December 31,
2001, the manager and administrator may end this arrangement at any time.
The management fees shown are based on the fund's maximum contractual
amount. Other expenses are estimated.
<TABLE>
<CAPTION>
TOTAL
OTHER OPERATING
MANAGEMENT FEE 12B-1 FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Franklin Strategic Income Securities Fund 0.43% N/A 0.52% 0.95%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(7) On 2/8/00, a merger and reorganization was approved that combined the fund
with a similar fund of Templeton Variable Products Series Fund, effective
5/1/00. The table shows total expenses based on the fund's assets as of
12/31/99, and not the assets of the combined fund. However, if the table
reflected combined assets, the fund's expenses after 5/1/00 would be
estimated as: Management Fees 0.60%, Distribution and Service Fees 0.25%,
Other Expenses 0.19%, and Total Fund Operating Expenses 1.04%.
(8) On 2/8/00, a merger and reorganization was approved that combined the fund
with a similar fund of Templeton Variable Products Series Fund, effective
5/1/00. The table shows total expenses based on the fund's assets as of
12/31/99, and not the assets of the combined fund. However, if the table
reflected combined assets, the fund's expenses after 5/1/00 would be
estimated as: Management Fees 0.80%, Distribution and Service Fees 0.25%,
Other Expenses 0.05%, and Total Fund Operating Expenses 1.10%. The fund
administration fee is paid indirectly through the management fee.
(9) On 2/8/00, shareholders approved a merger and reorganization that combined
the fund with the Templeton International Equity Fund, effective 5/1/00. The
shareholders of that fund had approved new management fees, which apply to
the combined fund effective 5/1/00. The table shows restated total expenses
based on the new fees and the assets of the fund as of 12/31/99, and not the
assets of the combined fund. However, if the table reflected both the new
fees and the combined assets, the fund's expenses after 5/1/00 would be
estimated as: Management Fees 0.65%, Distribution and Service Fees 0.25%,
Other Expenses 0.20%, and Total Fund Operating Expenses 1.10%.
(10) All expenses are based on the estimated expenses that the new Service
Shares Class of each Portfolio expects to incur in its initial fiscal year.
All expenses are shown without the effect of expense offset arrangements.
(11) Pursuant to a contractual agreement, through at least April 30, 2001, fees
and expenses were reimbursed to the extent expenses exceeded .75%, .85%,
1.15% and 1.20% of the average daily net assets of J.P. Morgan Bond
Portfolio, J.P. Morgan U.S. Disciplined 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
OTHER OPERATING
MANAGEMENT FEE 12B-1 FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
J.P. Morgan Bond Portfolio 0.30% N/A 0.45% 0.75%
- ------------------------------------------------------------------------------------------------------------
J.P. Morgan U.S. Disciplined Equity Portfolio 0.37% N/A 0.50% 0.87%
- ------------------------------------------------------------------------------------------------------------
J.P. Morgan Small Company Portfolio 0.60% N/A 1.97% 2.57%
- ------------------------------------------------------------------------------------------------------------
J.P. Morgan International Opportunities Portfolio 0.60% N/A 1.38% 1.98%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(12) Each Series has an expense offset arrangement which reduces the Series'
custodian fee based upon the amount of cash maintained by the Series with
its custodian and dividend disbursing agent. Each Series may enter into
other such arrangements and directed brokerage arrangements, which would
also have the effect of reducing the Series' expenses. "Other Expenses" do
not take into account the expense reductions, and are therefore higher than
the actual expenses of the Series.
(13) MFS has contractually agreed through at least May 1, 2001 to bear expenses
for these Series so that "Other Expenses" will not exceed 0.15% of the
average daily net assets of the Series during the current fiscal year.
Without this waiver the following would have been deducted:
<TABLE>
<CAPTION>
TOTAL
OTHER OPERATING
MANAGEMENT FEE 12B-1 FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
MFS Capital Opportunities Series 0.75% N/A 0.27% 1.02%
- ------------------------------------------------------------------------------------------------------------
MFS New Discovery Series 0.90% N/A 1.59% 2.49%
- ------------------------------------------------------------------------------------------------------------
MFS High Income Series 0.75% N/A 0.22% 0.97%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
12 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
(14) With respect to the The Universal Institutional Funds, Inc. the investment
adviser has voluntarily waived a portion or all of the management fee and
reimbursed other expenses of the portfolio to the extent total annualized
operating expenses exceed the following percentages: Emerging Markets Equity
Portfolio 1.75%; Equity Growth 0.85%; Fixed Income 0.70%; Global Equity
1.15%; High Yield 0.80%; Value 0.85%. The adviser may terminate this
voluntary waiver at any time at its sole discretion. With such reductions,
the "Management Fees", "Other Expenses" and "Total Annual Expenses" would be
as follows:
<TABLE>
<CAPTION>
TOTAL
OTHER OPERATING
MANAGEMENT FEE 12B-1 FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. Emerging Markets
Equity Portfolio 0.42% N/A 1.37% 1.79%
- ------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. Equity Growth
Portfolio 0.29% N/A 0.56% 0.85%
- ------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. Fixed Income
Portfolio 0.14% N/A 0.56% 0.70%
- ------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. Global Equity
Portfolio 0.47% N/A 0.68% 1.15%
- ------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. High Yield
Portfolio 0.19% N/A 0.61% 0.80%
- ------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. Value Portfolio 0.18% N/A 0.67% 0.85%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
Additionally, in determining the actual amount of voluntary management fee
waiver and/or expense reimbursement for a Portfolio, if any, the adviser
excludes from total annual operating expenses certain investment related
expenses, such as foreign country tax expense and interest expense on borrowing.
Included in "Other Expenses" of the Emerging Markets Equity Portfolio are 0.04%
of such investment related expenses.
(15) These figures are estimates: these Portfolios have been available for less
than six (6) months.
(16) 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 whereby credits realized, as a result of
uninvested cash balances were used to reduce custodian expenses. These
reductions will continue through at least December 31, 2000 pursuant to an
agreement between the adviser and the funds. Without these reductions
Management Fees, Other Expenses and Total Operating Expenses for Variable
Insurance Products Fund Equity-Income Portfolio, Variable Insurance Products
Fund Overseas Portfolio and Variable Insurance Products Fund II Asset
Manager Portfolio would have been as follows:
<TABLE>
<CAPTION>
TOTAL
OTHER OPERATING
MANAGEMENT FEE 12B-1 FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund Equity-Income Portfolio 0.48% N/A 0.09% 0.57%
- ------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund Overseas Portfolio 0.73% N/A 0.18% 0.91%
- ------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund II Asset Manager
Portfolio 0.53% N/A 0.10% 0.63%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 13
- --------------------------------------------------------------------------------
ABOUT US
HARTFORD LIFE INSURANCE COMPANY
Hartford is a stock life insurance company engaged in the business of writing
health and 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 a subsidiary of Hartford Fire Insurance Company, one of the largest multiple
lines insurance carriers in the United States. Hartford is ultimately owned by
The Hartford Financial Services Group, Inc., a Delaware corporation.
HARTFORD'S RATINGS
<TABLE>
<CAPTION>
EFFECTIVE DATE
RATING AGENCY OF RATING RATING BASIS OF RATING
<S> <C> <C> <C>
- --------------------------------------------------------------------------------
A.M. Best and
Company, Inc. 1/1/99 A+ Financial performance
- --------------------------------------------------------------------------------
Standard & Poor's 8/1/99 AA Insurer financial strength
- --------------------------------------------------------------------------------
Duff & Phelps 7/1/99 AA+ Claims paying ability
- --------------------------------------------------------------------------------
</TABLE>
ICMG REGISTERED VARIABLE LIFE
SEPARATE ACCOUNT A
The insurance benefits under the Group Policies are provided through investments
made in ICMG Registered Variable Life Separate Account A (the "Separate
Account"). We established the Separate Account 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 Securities and Exchange Commission
("SEC") under the 1940 Act. Such registration does not 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 Policies
and the Certificates and owners of any other policies which may be available
through the Separate Account. We own the assets of the Separate Account. The
obligations under the Policies and the Certificates are our obligations. These
assets are held separately from our other assets. 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 our other
income, gains or losses (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 we maintain.
The Separate Account has 49 Investment Divisions dedicated to the Policies. Each
of these Investment Divisions invests solely in a corresponding Portfolio of the
Funds. You choose the Investment Divisions that meet your investment style. We
may establish additional Investment Divisions at our discretion. The Separate
Account may include other Investment Divisions that will not be available under
the Policy.
THE FUNDS
The Funds sell shares of the Portfolios to the Separate Account. The Portfolios
are set up exclusively for variable annuity and variable life insurance
products. The Portfolios are not the same mutual funds that you buy through your
stockbroker or through a retail mutual fund. However, they may have similar
investment strategies and the same portfolio managers as retail mutual funds.
We do not guarantee the investment results of any of the Portfolios. Since each
Portfolio has different investment objectives, each is subject to different
risks. The prospectuses for the Funds and the Funds' Statement of Additional
Information describe these risks and the Portfolio's expenses. We have included
the Funds' prospectuses in this Prospectus.
The following Portfolios are available under your Certificate:
ALGER AMERICAN GROWTH PORTFOLIO -- Seeks long-term capital appreciation. It
focuses on growing companies that generally have broad product lines, markets,
financial resources and depth of management. Under normal circumstances, the
portfolio invests primarily in the equity securities of large companies. The
portfolio considers a large company to have a market capitalization of $1
billion or greater. (EFFECTIVE JULY 5, 2000, CLOSED TO NEW PREMIUMS AND
TRANSFERS OF INVESTMENT VALUE)
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO -- Seeks long-term capital
appreciation. It focuses on small, fast-growing companies that offer innovative
products, services or technologies to a rapidly expanding marketplace. Under
normal circumstances, the portfolio invests primarily in the equity securities
of small capitalization companies. A small capitalization company is one that
has a market capitalization within the range of the Russell-Registered
Trademark- 2000 Growth Index or the S&P-Registered Trademark- SmallCap 600
Index. (EFFECTIVE JULY 5, 2000, CLOSED TO NEW PREMIUMS AND TRANSFERS OF
INVESTMENT VALUE)
AMERICAN FUNDS GLOBAL GROWTH FUND: CLASS 2 -- Seeks long-term growth of capital
by investing primarily in common stocks of issuers domiciled around the world.
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND: CLASS 2 -- Seeks long-term
growth of capital by investing primarily in equity securities of smaller
companies located around the world that typically have market capitalizations of
$50 million to $1.5 million.
<PAGE>
14 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
AMERICAN FUNDS GROWTH FUND: CLASS 2 -- Seeks long-term growth of capital by
investing primarily in common stocks which demonstrate the potential for
appreciation.
AMERICAN FUNDS INTERNATIONAL FUND: CLASS 2 -- Seeks long-term growth of capital
by investing primarily in common stocks of issuers domiciled outside the United
States.
AMERICAN FUNDS ASSET ALLOCATION FUND: CLASS 2 -- Seeks high total return,
including income and capital gains, consistent with the preservation of capital
over the long term through a diversified portfolio that can include common
stocks and other equity-type securities, bonds and other intermediate and long-
term fixed income securities and money market instruments in any combination.
DEUTSCHE VIT EAFE-REGISTERED TRADEMARK- EQUITY INDEX FUND -- Seeks to match as
closely as possible (before deduction for expenses) the total return of the
Morgan Stanley Capital International Europe, Australia, Far East Index (the
"MSCI EAFE-Registered Trademark- Index"). The Fund invests in a statistically
selected sample of the equity securities included in the MSCI EAFE-Registered
Trademark- Index. The MSCI EAFE-Registered Trademark- Index is a
capitalization-weighted index containing approximately 1,100 equity securities
of companies located outside the United States.(1)
DEUTSCHE VIT EQUITY 500 INDEX FUND -- Seeks to match as closely as possible
(before deduction for expenses) the total return of the Standard & Poor's
500-Registered Trademark- Composite Stock Price Index (the "S&P 500-Registered
Trademark- Index"). The S&P 500-Registered Trademark- Index is an index of 500
common stocks, most of which trade on the New York Stock Exchange.(2)
DEUTSCHE VIT SMALL CAP INDEX FUND -- Seeks to match as closely as possible
(before deduction for expenses) the total return of the Russell 2000-Registered
Trademark- Small Stock Index (the "Russell 2000-Registered Trademark-"). The
Russell 2000-Registered Trademark- is composed of approximately 2,000 small-
capitalization common stocks.(3)
FRANKLIN SMALL CAP FUND: CLASS 2 -- Seeks long-term capital growth.
FRANKLIN STRATEGIC INCOME SECURITIES FUND: CLASS 1 -- Seeks to earn a high level
of current income. Its secondary goal is long-term capital appreciation.
MUTUAL SHARES SECURITIES FUND: CLASS 2 -- Seeks capital appreciation. Its
secondary goal is income.
TEMPLETON GROWTH SECURITIES FUND: CLASS 2 (PREVIOUSLY TEMPLETON GLOBAL GROWTH
FUND) -- Seeks long-term capital growth.
TEMPLETON INTERNATIONAL SECURITIES FUND: CLASS 2 (PREVIOUSLY TEMPLETON
INTERNATIONAL FUND) -- Seeks long-term capital growth.
HARTFORD CAPITAL APPRECIATION HLS FUND: CLASS IA -- Seeks growth of capital by
investing in equity securities selected solely on the basis of potential for
capital appreciation.
HARTFORD STOCK HLS FUND: CLASS IA -- Seeks long-term growth by investing
primarily in equity securities.
HARTFORD ADVISERS HLS FUND: CLASS IA -- Seeks maximum long-term total rate of
return by investing in common stocks and other equity securities, bonds and
other debt securities, and money market instruments.
HARTFORD BOND HLS FUND: CLASS IA -- Seeks maximum current income consistent with
preservation of capital by investing primarily in investment grade fixed-income
securities. Up to 20% of the total assets of this Fund 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 Fund'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 Funds entitled "Hartford Bond HLS Fund,
Inc."
HARTFORD MONEY MARKET HLS FUND: CLASS IA -- Seeks maximum current income
consistent with liquidity and preservation of capital.
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO: SERVICE SHARES -- Seeks long-term
growth of capital. This Portfolio is non-diversified and normally invests at
least 50% of its equity assets in medium-sized companies.
JANUS ASPEN INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES -- Seeks long-term
growth of capital by investing primarily in stocks of foreign issuers.
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO: SERVICE SHARES -- Seeks long-term growth
of capital in a manner consistent with the preservation of capital. This
Portfolio invests primarily in stocks of foreign and domestic issuers.
JANUS ASPEN BALANCED PORTFOLIO: SERVICE SHARES -- Seeks long-term growth of
capital, consistent with the preservation of capital and balanced by current
income.
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO: SERVICE SHARES -- Seeks to obtain maximum
total return, consistent with the preservation of capital.
J.P. MORGAN BOND PORTFOLIO -- Seeks high total return consistent with moderate
risk of capital and maintenance of liquidity.
J.P. MORGAN INTERNATIONAL OPPORTUNITIES PORTFOLIO -- seeks high total return
from a portfolio of equity securities of foreign
(1) THE EAFE-REGISTERED TRADEMARK- INDEX IS THE EXCLUSIVE PROPERTY OF MORGAN
STANLEY. MORGAN STANLEY CAPITAL INTERNATIONAL IS A SERVICE MARK OF MORGAN
STANLEY AND HAS BEEN LICENSED FOR USE BY BANKERS TRUST COMPANY.
(2) "S&P 500-REGISTERED TRADEMARK-" AND "STANDARD & POOR'S-REGISTERED
TRADEMARK-" ARE TRADEMARKS OF THE MCGRAW-HILL COMPANIES AND HAVE BEEN LICENSED
FOR USE BY BANKERS TRUST COMPANY.
(3) "RUSSELL 2000-REGISTERED TRADEMARK-" IS A TRADEMARK OF THE FRANK RUSSELL
COMPANY AND HAS BEEN LICENSED FOR USE BY BANKERS TRUST COMPANY.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 15
- --------------------------------------------------------------------------------
corporations in developed and, to a lesser extent, emerging markets.
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
its total assets in the common stock of small U.S. companies primarily with a
market capitalization of less than $1 billion.
J.P. MORGAN U.S. DISCIPLINED 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 companies in
the United States.
MFS EMERGING GROWTH SERIES -- Seeks to provide long-term growth of capital.
MFS CAPITAL OPPORTUNITIES SERIES -- Seeks capital appreciation.
MFS GROWTH WITH INCOME SERIES -- Seeks to provide reasonable current income and
long-term growth of capital and income.
MFS NEW DISCOVERY SERIES -- Seeks capital appreciation.
MFS HIGH INCOME SERIES -- Seeks high current income by investing primarily in a
professionally managed diversified portfolio of fixed income securities, some of
which may involve equity features.
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. EMERGING MARKETS EQUITY
PORTFOLIO -- Seeks long-term capital appreciation by investing primarily in
equity securities of issuers in emerging market countries.
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. EQUITY GROWTH PORTFOLIO -- Seeks
long-term capital appreciation by investing primarily in growth-oriented equity
securities of medium and large capitalization companies. (EFFECTIVE JULY 5,
2000, CLOSED TO NEW PREMIUMS AND TRANSFERS OF INVESTMENT VALUE)
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. FIXED INCOME PORTFOLIO -- Seeks
above-average total return over a market cycle of three to five years by
investing primarily in a diversified mix of dollar denominated investment grade
fixed income securities, particularly U.S. Government, corporate and mortgage
securities. The Portfolio ordinarily will maintain an average weighted maturity
in excess of five years. The Portfolio may invest opportunistically in
non-dollar denominated securities and below investment grade securities. The
investment adviser may use futures, swaps and other types of derivatives in
managing the Portfolio.
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. GLOBAL EQUITY PORTFOLIO -- Seeks
long-term capital appreciation by investing primarily in equity securities of
issuers throughout the world, including in the United States and emerging market
countries. (EFFECTIVE JULY 5, 2000, CLOSED TO NEW PREMIUMS AND TRANSFERS OF
INVESTMENT VALUE)
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. HIGH YIELD PORTFOLIO -- Seeks above
average total return over a market cycle of three to five years by investing
primarily in high yield securities commonly referred to as "junk bonds". The
Portfolio also may invest in investment grade fixed income securities, including
U.S. Government securities, corporate bonds and mortgage securities; it may
invest to a limited extent in foreign fixed income securities, including
emerging market securities. The investment adviser may use futures, swaps and
other types of derivatives in managing the Portfolio.
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. MID CAP GROWTH PORTFOLIO -- Seeks
long-term capital growth by investing primarily in common stocks of companies
with capitalizations in the range of companies included in the S&P MidCap 400
Index (currently $500 million to $6 billion). Adviser focuses on companies that
demonstrate one or more of the following characteristics: high earnings growth
rates, growth stability, rising profitability and the ability to produce
earnings that consistently beat market expectations.
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. TECHNOLOGY PORTFOLIO -- Seeks long-term
capital appreciation by investing primarily in equity securities of companies
that the investment adviser expects to benefit from their involvement in
technology and technology-related industries.
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. VALUE PORTFOLIO -- Seeks above average
total return over a market cycle of three to five years by investing primarily
in common stocks of companies with equity capitalizations greater than $2.5
billion. The Portfolio focuses on stocks that are undervalued in comparison with
the stock market as a whole, as measured by the S&P 500 Index. The Portfolio may
purchase stocks that do not pay dividends. The Portfolio may invest, to a
limited extent, in foreign equity securities. (EFFECTIVE JULY 5, 2000, CLOSED TO
NEW PREMIUMS AND TRANSFERS OF INVESTMENT VALUE)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST BALANCED PORTFOLIO -- Seeks growth of
capital and reasonable current income without undue risk to principal. The
portfolio invests primarily in equity securities of medium capitalization
companies and fixed income securities from U.S. government and corporate
issuers. (EFFECTIVE JULY 5, 2000, CLOSED TO NEW PREMIUMS AND TRANSFERS OF
INVESTMENT VALUE)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST LIMITED MATURITY BOND
PORTFOLIO -- Seeks to provide the highest current income consistent with low
risk to principal and liquidity; and secondarily, total return. The Portfolio
invests in short- to intermediate-term debt securities, primarily investment
grade. (EFFECTIVE JULY 5, 2000, CLOSED TO NEW PREMIUMS AND TRANSFERS OF
INVESTMENT VALUE)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST PARTNERS PORTFOLIO -- Seeks capital
growth by investing mainly in common stocks of established mid- to
large-capitalization companies. (EFFECTIVE JULY 5, 2000, CLOSED TO NEW PREMIUMS
AND TRANSFERS OF INVESTMENT VALUE)
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16 HARTFORD LIFE INSURANCE COMPANY
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VARIABLE INSURANCE PRODUCTS FUND EQUITY-INCOME PORTFOLIO: INITIAL CLASS -- Seeks
reasonable income by investing primarily in income-producing securities. The
potential for capital appreciation is also considered when choosing investments.
The fund seeks a yield that exceeds the yield on the securities comprising the
Standard & Poor's 500. (EFFECTIVE JULY 5, 2000, CLOSED TO NEW PREMIUMS AND
TRANSFERS OF INVESTMENT VALUE)
VARIABLE INSURANCE PRODUCTS FUND HIGH INCOME PORTFOLIO: INITIAL CLASS -- Seeks
high current income by investing primarily in all types of income-producing debt
securities, preferred stocks and convertible securities. The Fund also considers
growth of capital in choosing investments. (EFFECTIVE JULY 5, 2000, CLOSED TO
NEW PREMIUMS AND TRANSFERS OF INVESTMENT VALUE)
VARIABLE INSURANCE PRODUCTS FUND OVERSEAS PORTFOLIO: INITIAL CLASS -- Seeks
long-term growth of capital by investing primarily in foreign securities.
(EFFECTIVE JULY 5, 2000, CLOSED TO NEW PREMIUMS AND TRANSFERS OF INVESTMENT
VALUE)
VARIABLE INSURANCE PRODUCTS FUND II ASSET MANAGER PORTFOLIO: INITIAL
CLASS -- Seeks high total return with reduced risk over the long-term by
allocating assets among stocks, bonds, short-term and money market instruments,
and other instruments of U.S. and foreign issuers. (EFFECTIVE JULY 5, 2000,
CLOSED TO NEW PREMIUMS AND TRANSFERS OF INVESTMENT VALUE)
INVESTMENT ADVISERS -- The Alger American Fund is managed by Fred Alger
Management, Inc. The American Funds Insurance Series is managed by Capital
Research and Management Company. Deutsche Asset Management VIT Funds are managed
by Bankers Trust Company, a wholly owned subsidiary of Deutsche Bank AG. The
Franklin Small Cap Fund is managed by Franklin Advisers, Inc. The Franklin
Strategic Income Securities Fund is managed by Franklin Advisers, Inc. The
Mutual Shares Securities Fund is managed by Franklin Mutual Advisers, LLC. The
Templeton Growth Securities Fund is managed by Templeton Global Advisers
Limited. The Templeton International Securities Fund is managed by Templeton
Investment Counsel, Inc. Hartford Capital Appreciation HLS Fund, Inc., Hartford
Bond HLS Fund, Inc., and Hartford Money Market HLS Fund, Inc. are collectively
the "Hartford Funds" and are managed by HL Investment Advisors, LLC. Wellington
Management Company, LLP serves as sub-investment advisor for Hartford Capital
Appreciation HLS Fund, Inc. Hartford Investment Management Company serves as
sub-investment advisor for Hartford Bond HLS Fund, Inc. and Hartford Money
Market HLS Fund, Inc. Janus Aspen Series is managed by Janus Capital
Corporation. J.P. Morgan Series Trust II is managed by J.P. Morgan Investment
Management Inc. The MFS-Registered Trademark- Variable Insurance Trust is
managed by MFS Investment Management. The Universal Institutional Funds, Inc. is
managed by either Morgan Stanley Asset Management ("MSAM") or Miller Anderson &
Sherrerd, LLP ("MAS"). Neuberger Berman Advisers Management Trust is managed by
Neuberger Berman Management Inc. Variable Insurance Products Fund and Variable
Insurance Products Fund II are managed by Fidelity Management & Research
Company.
MIXED AND SHARED FUNDING -- Shares of the Funds may be sold to our other
separate accounts and our insurance company affiliates or other unaffiliated
insurance companies to serve as the underlying investment for both variable
annuity contracts and variable life insurance policies, a practice known as
"mixed and shared funding." As a result, there is a possibility that a material
conflict may arise between the interests of policy owners, owners of other
policies or owners of variable annuity contracts with values allocated to one or
more of these other separate accounts investing in any one of the Funds. In the
event of any such material conflicts, we will consider what action may be
appropriate, including removing the Fund from the Separate Account or replacing
the Fund with another underlying fund. There are certain risks associated with
mixed and shared funding, as disclosed in the Funds' prospectus.
VOTING RIGHTS -- We will notify you of shareholder's meetings of the Funds
purchased by those Investment Divisions you have invested in. We will send you
proxy materials and instructions for you to vote the shares held for your
benefit by those Investment Divisions. We will arrange for the handling and
tallying of proxies received from you or other policy owners. If you give no
instructions, we will vote those shares in the same proportion as shares for
which we received instructions.
If any federal securities laws or regulations, or their present interpretation,
change to permit us to vote Fund shares on our own, we may decide to do so. You
may attend any shareholder meeting at which shares held for your Policy may be
voted. After we begin to make payouts to you, the number of votes you have will
decrease.
ADMINISTRATIVE SERVICES -- Hartford has entered into agreements with the
investment advisers or distributors of many of the Funds. Under the terms of
these agreements, Hartford provides administrative services and the Funds pay a
fee to Hartford that is usually based on an annual percentage of the average
daily net assets of the Funds. These agreements may be different for each Fund
or each Fund family.
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HARTFORD LIFE INSURANCE COMPANY 17
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CHARGES AND DEDUCTIONS
DEDUCTIONS FROM PREMIUM
We deduct a percentage of your premium payment for a front-end sales load, a
premium tax charge and the deferred acquisition cost ("DAC") tax charge before
we allocate it to the Investment Divisions. The amount of each premium we
allocate to the Investment Divisions is your net premium ("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.
PREMIUM TAX CHARGE -- We deduct a tax charge from each premium you pay. The
premium tax charge covers taxes assessed against us by a state and/or other
governmental entity. The range of this charge, generally, is between 0% and 4%.
DAC TAX CHARGE -- We deduct 1.25% of each premium to cover a federal premium tax
assessed against us. This charge is reasonable in relation to our federal income
tax burden, under Section 848 of the Internal Revenue Code of 1986 ("the Code"),
resulting from the receipt of premiums. We will adjust this charge based on
changes in the applicable tax law.
DEDUCTIONS FROM INVESTMENT VALUE
MONTHLY DEDUCTION AMOUNT -- Each month we will deduct an amount from your
Investment Value to pay for the benefits provided under the Certificate. We call
this amount the Monthly Deduction Amount and it equals the sum of:
(a) the administrative expense charge;
(b) the cost of insurance charge;
(c) the charges for additional benefits provided by rider, if any.
The Monthly Deduction Amount will vary from month to month.
Following is an explanation of the administrative expense charge and the charges
for cost of insurance and rider benefits.
(a) Administrative Expense Charge -- We will assess a monthly administrative
charge to compensate us for administrative costs in connection with the
Certificates. We will initially charge $5 per Coverage Month and we
guarantee that the charge will never exceed $10.00 per Coverage Month.
(b) Cost of Insurance Charge -- The cost of insurance charge is equal to:
- the cost of insurance rate per $1,000; multiplied by
- the net amount at risk; divided by
- $1,000.
The net amount at risk equals the death benefit minus the Cash Value on the date
we calculate this charge. The cost of insurance charge is shown on the
specification pages of the Policy and Certificate.
The purpose of the cost of insurance charge is to cover our anticipated
mortality costs. The current cost of insurance rates for standard risks will not
exceed those based on the 1980 Commissioners Standard Ordinary Mortality Table
(ANB), Male or Female, age nearest birthday. We will charge substandard risks a
higher cost of insurance rate. The cost of insurance rates for substandard risks
will not exceed rates based on a multiple of the 1980 Commissioners Standard
Ordinary Mortality Table (ANB), Male or Female, age nearest birthday. In
addition, the use of simplified underwriting or guaranteed issue procedures,
rather than medical underwriting, may result in a higher cost of insurance
charge for some individuals than if medical underwriting procedures were used.
We will make any changes in the cost of insurance uniformly for all insureds of
the same issue ages, sexes, risk classes and whose coverage has been in-force
for the same length of time. No change in insurance class or cost will occur as
a result of the deterioration of the Insured's health.
The rate class of an Insured affects the cost of insurance rate. We and the
employer will agree on the number of rate classes and characteristics of each
rate class. The rate classes may vary by smokers and nonsmokers, active and
retired status, preferred and standard, and/or any other nondiscriminatory
classes agreed to by the employer.
(c) Rider Charge -- If the Certificate includes riders, we deduct a charge from
the Investment Value on each Processing Date. We specify the applicable
charge on the rider. This charge is to compensate us for the anticipated
cost of providing the rider benefits.
For a description of the riders available, see "Supplemental Benefits."
MORTALITY AND EXPENSE RISK CHARGE -- For assuming mortality and expense risks
under the Policy, we may deduct a maximum daily charge of .001781% which is
equal to .65% per year of the value of each Investment Division's assets in all
Coverage Years. We may pay an expense credit reflecting a reduction in the
mortality and expense risk rate. We will pay these credits at the end of each
Coverage Month and will use them to purchase additional Accumulation Units at
the end of that Coverage Month.
Currently, in Coverage Years 1 through 10, we will pay an expense credit of
.30%. The result is a net annual mortality and expense risk rate of .35%. In
Coverage Years 11 through 15 we will pay an expense credit of .40%. The result
is a net annual mortality and expense risk rate of .25%. In Coverage Years 16
and later, we will pay an expense credit of .55%. The result is a net annual
mortality and expense risk rate of .10%.
The mortality and expense risk charge is equal to:
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18 HARTFORD LIFE INSURANCE COMPANY
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- the mortality and expense risk rate; multiplied by
- the portion of the Cash Value allocated to the Investment Divisions and the
Loan Account.
The mortality risk we assume is that the actual cost of insurance charges
specified in the Certificate will be insufficient to meet actual claims. The
expense risk we assume is that expenses we incur for issuing and administering
the Certificates will exceed the administrative charges we deducted from
Investment Value.
If these charges are insufficient to cover actual costs and assumed risks, the
loss will fall on us. However, if the charge proves more than sufficient, we
will add any excess to our surplus.
TRANSFER FEE -- We deduct a $50 transfer fee when you transfer amounts from one
Investment Division to another for each transfer in excess of 12 transfers per
year.
PARTIAL WITHDRAWAL FEE -- We deduct a partial withdrawal fee for each withdrawal
you make. The fee is the lesser of 2% of the amount withdrawn or $25.
YOUR CERTIFICATE
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OWNERSHIP RIGHTS
As long as your Certificate is in force, you may exercise all rights under the
Certificate while the Insured is alive and you have not named an irrevocable
beneficiary.
BENEFICIARY
You name the beneficiary in your enrollment form for the Certificate. You may
change the beneficiary (unless irrevocably named) while the Insured is alive by
notifying us, in writing. If no beneficiary is living when the Insured dies, we
will pay the Death Proceeds to you if living; or, otherwise, to your estate.
ASSIGNMENT
You may assign your rights under the Certificate. Until you notify us in
writing, no assignment is effective against us. We are not responsible for the
validity of any assignment.
STATEMENTS
We will send you a statement at least once each year, showing:
- - the Certificate's current Cash Value, Cash Surrender Value and Face Amount;
- - the premiums paid, Monthly Deduction Amounts and any Loans since your last
statement;
- - the amount of any outstanding Debt;
- - any notifications required by the provisions of your Certificate; and
- - any other information required by the Insurance Department of the state where
we delivered your Certificate.
ISSUANCE OF YOUR CERTIFICATE
To purchase a Certificate you must submit an enrollment form to our Customer
Service Center. The specific form you complete will depend on the underwriting
classification and plan design of the Policy. Generally, we will only issue a
Certificate on the lives of Insureds between the ages of 20 and 79 who supply
evidence of insurability satisfactory to us. In addition, we will not issue a
Certificate with a Face Amount of less than the minimum Face Amount. Acceptance
is subject to our underwriting rules and we reserve the right to reject an
enrollment form for any reason. If we accept your enrollment form, your
Certificate will become effective on the Coverage Date only after we receive all
outstanding delivery requirements and the initial premium payment shown in your
Certificate.
In the event you are exchanging an existing contract(s) for a new Certificate
under Section 1035 of the Internal Revenue Code, the Coverage Date will be the
date that you make the 1035 exchange. You make this 1035 exchange by assigning
the existing contract(s) to us and completing an enrollment form. Upon receipt
of the assignment form, we will surrender the existing contract(s) for its cash
surrender value. We will apply the surrender proceeds we receive as premium to
the Certificate. During the time between the Coverage Date and the date we
receive the cash surrender value of the existing contract(s) or a premium
payment, there will be no gap in coverage. We will make charges and deductions
(other than those of the Portfolios) for this period; however, you will not
experience investment returns.
RIGHT TO EXAMINE THE CERTIFICATE
You have a limited right to return your Certificate for cancellation. You may
deliver or mail the Certificate to us or to the agent who sold you the
Certificate within ten (10) calendar days after delivery of the Certificate to
you. Some states provide for a longer period.
In the event you return your Certificate, we will return to you within seven (7)
days of our receipt of the Certificate, either:
- - the total amount of premiums; or
- - the Cash Value plus charges deducted under the Certificate.
The amount we return depends upon the state we issued your Certificate in.
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HARTFORD LIFE INSURANCE COMPANY 19
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PREMIUMS
PREMIUM PAYMENT FLEXIBILITY
You have considerable flexibility as to when, in what amounts and what level of
premiums, within a range determined by us, you pay under the Certificate. You
choose a premium once you have determined the level and pattern of the death
benefit.
You must pay a minimum initial premium to make your coverage effective on the
Coverage Date. You may pay additional premiums at any time, subject to the
premium limitations set by the Internal Revenue Code. For details on these
premium limitations see, "Premium Limitation." You have the right to pay
additional premiums of at least $100.00 at any time, unless otherwise agreed to
by us.
Your Certificate may lapse if the value of your Certificate becomes insufficient
to cover the Monthly Deduction Amounts. If this happens you may pay additional
premiums in order to prevent your Certificate from terminating. For details see,
"Lapse and Reinstatement."
ALLOCATION OF PREMIUM PAYMENTS
During the right to examine period, we allocate your initial premium payment in
accordance with state law requirements. If you choose to cancel your
Certificate, some states require the return of your initial premium, while
others require the return of the Certificate's Cash Value.
- - STATE OF ISSUE REQUIRES RETURN OF INITIAL PREMIUM
If the state of issue of your Certificate requires that we return your initial
premium, we will, when we issue your Certificate and until the end of the right
to examine period, allocate your initial Net Premium to the Hartford Money
Market Investment Division. Upon the expiration of the right to examine period,
we will, at a later date, invest the initial Net Premium according to your
initial allocation instructions. However, any accrued interest will remain in
the Hartford Money Market Investment Division if you selected it 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 requirements to put the Certificate in force.
We will allocate any additional premiums received prior to this later date to
the Hartford Money Market Investment Division.
- - STATE OF ISSUE REQUIRES RETURN OF CERTIFICATE'S CASH VALUE
If the state of issue of your Certificate requires that we return the
Certificate's Cash Value, we will allocate the initial Net Premium among your
chosen Investment Divisions. In this case you will bear full investment risk for
any amounts we allocate to the Investment Division during the right to examine
period. This automatic immediate investment feature only applies if specified in
your Certificate. Please check with your agent to determine the status of your
Certificate.
You may change the Net Premium allocation if you notify us in writing. Portions
you allocate to the Investment Divisions must be whole percentages of 5% or
more. We will allocate subsequent Net Premiums 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; and
- - If the asset rebalancing option is in effect, we will allocate Net Premiums
accordingly, until you terminate this option. (See "Transfers Among Investment
Divisions -- Asset Rebalancing.")
You will receive several different types of notification that explain what your
current premium allocation is. The Certificate shows the initial allocation you
chose on the enrollment form. In addition, we will send you written
confirmation, after we receive your premium payment, that shows you how we
allocated your premium. A Certificate's annual statement will also summarize
your current premium allocation.
ACCUMULATION UNITS
We use Net Premiums allocated to the Investment Divisions to credit Accumulation
Units under the Certificates.
We determine 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) as follows:
- - Multiply the Net Premium by the appropriate allocation percentage to determine
the portion we will invest in the Investment Division; then
- - Divide each portion to be invested in an Investment Division by the
Accumulation Unit value of that particular Investment Division we computed
following the 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
from Investment Value -- Monthly Deduction Amount.")
ACCUMULATION UNIT VALUES
The Accumulation Unit value for each Investment Division will vary daily to
reflect the investment experience and charges of the applicable Portfolio, as
well as the daily deduction for mortality and expense risks. We will determine
the Accumulation Unit value 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
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20 HARTFORD LIFE INSURANCE COMPANY
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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 us.
PREMIUM LIMITATION
If we receive premiums that 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 any
applicable interest no later than sixty (60) days after the end of a Coverage
Year.
We will accept a premium payment that results in an increase in the death
benefit greater than the amount of the premium, only after we approve evidence
of insurability.
DEATH BENEFITS AND POLICY VALUES
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VALUES UNDER THE CERTIFICATE
CASH SURRENDER VALUE -- 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.
INVESTMENT 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."
DEATH BENEFITS
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 "Taxes -- Income Taxation of Certificate
Benefits." Each Certificate must qualify under either the GPT or the CVAT. Prior
to issue, you choose the procedure under which a Certificate will qualify. Once
you choose either the GPT or the CVAT 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 in the Certificate.
Under the GPT, there is also a maximum amount of premium that may be paid with
respect to each Certificate.
Use of the CVAT can be advantageous if you intend to maximize the total amount
of premiums paid under a Certificate. An offsetting consideration, however, is
that the factors we use to determine the Variable Insurance Amount are higher
under the CVAT, which can result in a higher death benefit over time and a
higher total cost of insurance.
DEATH BENEFITS 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.
- - Death Benefit Option A -- the death benefit is the greater of (a) the Face
Amount and (b) the Variable Insurance Amount.
- - 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
will be the Death Proceeds.
OPTION CHANGE
While the Certificate is in force, you may change the death benefit option you
selected. You must make your request to change your death benefit option in
writing and during the lifetime of the Insured.
CHANGE FROM OPTION A TO OPTION B -- If the change is from Death Benefit Option A
to Death Benefit Option B, the Insured must provide us with satisfactory
evidence of insurability. 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.
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HARTFORD LIFE INSURANCE COMPANY 21
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CHANGE FROM OPTION B TO OPTION A -- If the change is from Death Benefit Option B
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 our approval of the change. We
will notify you when we have made the change.
PAYMENT OPTIONS -- We may pay the Death Proceeds under the Certificate in a lump
sum or we may apply the proceeds to one of our payment options. The minimum
amount that may be placed under a payment option is $5,000 unless we consent to
a lesser amount. Once payments under payment options 2, 3 or 4 begin, you may
not surrender the Certificate to receive a lump sum settlement in place of the
life insurance payments. The following options are available under the
Certificate:
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, we may make payments less often. The first, second and third payment
options are based on a net investment rate of 3% per annum. We may, however,
from time to time, at our discretion if mortality appears more favorable and
interest rates justify, apply other tables that will result in higher monthly
payments for each $1,000 applied under one or more of the four payment options.
We may agree to other arrangements for income payments.
INCREASES AND DECREASES IN FACE AMOUNT -- In most cases, the minimum Face Amount
of the Certificate is $50,000. At any time after purchasing a Certificate, you
may request a change in the Face Amount by making a written request to us at our
Customer Service Center.
You must request an increase in the Face Amount in writing to us. All requests
are subject to evidence of insurability satisfactory to us and subject to our
current rules. Any increase we approve 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 generally must not be less
than $50,000. We will apply decreases:
(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.
BENEFITS AT MATURITY -- If the Insured is living on the coverage maturity date,
which equals attained age 100 ("Maturity Date"), we will pay you the Cash
Surrender Value on the date you surrender the Certificate. However, on the
Maturity Date, the Certificate will terminate and we will have no further
obligations under the Certificate.
MAKING WITHDRAWALS FROM THE CERTIFICATE
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SURRENDER
At any time prior to the Maturity Date, provided the Certificate is in effect
and has a Cash Surrender Value, you 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 written request for surrender to us.
We will determine the Cash Surrender Value as of the Valuation Day we receive
the request, in a written form satisfactory to us, at our Customer Service
Center, or the date that you request, whichever is later.
The Cash Surrender Value is the net amount available upon surrender of the
Certificate and equals the Cash Value, minus Debt, minus any charges accrued but
not yet deducted. We will
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22 HARTFORD LIFE INSURANCE COMPANY
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terminate the Certificate on the date of receipt of the written request, or the
date you request the surrender to be effective, whichever is later.
We may pay the Cash Surrender Value in cash or you may allocate it to any other
payment option agreed upon by us.
PARTIAL WITHDRAWALS
At any time before the Maturity Date, and subject to our rules then in effect,
we allow twelve (12) partial withdrawals per Coverage Year. However, we allow
only one (1) partial withdrawal 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, minus outstanding Debt.
We currently impose a charge for processing partial withdrawals which is the
lesser of:
- - 2% of the amount withdrawn; and
- - $25.00.
A partial withdrawal will reduce the Cash Surrender Value, Cash Value and
Investment Value. Any partial withdrawal will permanently affect the Cash
Surrender Value and may permanently affect the death benefit payable. If Death
Benefit Option A is in effect, we reduce the Face Amount by the amount of the
partial withdrawal and the charge for processing the withdrawal. Unless
specified otherwise, we will deduct partial withdrawals on a Pro Rata Basis from
the Investment Divisions. A Pro Rata Basis is an allocation method based on the
proportion of the Investment Value in each Investment Division. You must submit
requests for partial withdrawals to us in writing. The effective date of a
partial withdrawal will be the Valuation Day closest to the date that we receive
the request, in writing, at our Customer Service Center. If your Certificate is
deemed to be a modified endowment contract, a 10% penalty tax may be imposed on
income distributed before the insured attains age 59 1/2. See "Taxes -- Modified
Endowment Contracts."
TRANSFERS AMONG INVESTMENT DIVISIONS
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AMOUNT AND FREQUENCY OF TRANSFERS
Upon request and as long as the Certificate is in effect, you may transfer
amounts among the Investment Divisions up to twelve (12) times per Coverage Year
without charge. 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. You must make transfer requests in writing on a form that we approve
or by telephone in accordance with established procedures. Our rules then in
effect will limit the amounts that you may transfer. The amounts that you
transfer must be in whole percentages of 5% or more, unless otherwise agreed to
by us. Currently, the minimum value of Accumulation Units that you may transfer
from one Investment Division to another is the lesser of:
- - $500; and
- - 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, we will
transfer the entire remaining amount.
Currently there are no restrictions on transfers other than those described in
this Prospectus. We reserve 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, we will reduce the
number of Accumulation Units that we credit to that Investment Division. We will
determine the reduction by dividing:
1. the amount transferred by,
2. the Accumulation Unit value for that Investment Division determined on the
Valuation Day we receive your written request for transfer.
In the event of a transfer to an Investment Division, we will increase the
number of Accumulation Units credited. 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 written request.
ASSET REBALANCING
Subject to our current rules, you may authorize us to automatically reallocate
Investment Value periodically in order to maintain a particular percentage
allocation among the Investment Divisions that you have selected. This
reallocation is know as 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, we must receive a written request from you. If you
elect Asset Rebalancing, you must include all Investment Value in the automatic
reallocation. The percentages that you select under Asset Rebalancing will
override any prior percentage allocations that you have chosen and we will
allocate all future Net Premiums accordingly. We will count all transfers made
pursuant to Asset Rebalancing on the same day as one (1) transfer toward the
twelve (12) transfers per Coverage Year that we permit without charge. Once
elected, you may instruct us, in
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HARTFORD LIFE INSURANCE COMPANY 23
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a written form satisfactory to us, at any time to terminate the option. In
addition, we will terminate your participation in Asset Rebalancing if you make
any transfer outside of Asset Rebalancing.
DOLLAR COST AVERAGING
You may elect to allocate your Net Premiums among the Investment Divisions under
the dollar cost averaging option program ("DCA Program"). If you choose to
participate in the DCA Program, we will deposit your Net Premiums into the
Hartford Money Market Investment Division. Each month, we will withdraw amounts
from that Division and allocate them to the other Investment Divisions in
accordance with your allocation instructions. The transfer date will be the
monthly anniversary of your first transfer under your initial DCA election. We
will make the first transfer within five (5) business days after we receive your
initial election, either in writing or by telephone, subject to the telephone
transfer procedures described in this Prospectus.
We will allocate your Net Premium to the Investment Divisions that you specify,
in the proportions that you specify. If, on any transfer date, your Investment
Value that we have allocated to the Hartford Money Market Investment Division is
less than the amount you have elected to transfer, we will terminate your
participation in the DCA Program. Any transfers made in connection with the DCA
Program must be whole percentages of 5% or more, unless we otherwise agree. In
addition, transfers made under the DCA Program count toward the twelve (12)
transfers per coverage year that we permit you without charge.
You may also cancel your DCA election by notifying us in writing.
The main objective of the DCA Program is to minimize the impact of short-term
price fluctuations. The DCA Program allows you to take advantage of market
fluctuations. Since we transfer the same dollar amount to other Investment
Divisions at set intervals, the DCA Program allows you to purchase more
Accumulation Units when prices are low and fewer Accumulation Units when prices
are high. Therefore, you may achieve a lower average cost per Accumulation Unit
over the long-term. However, it is important to understand that a DCA Program
does not assure a profit or protect against loss in a declining market. If you
choose to participate in the DCA Program you should have the financial ability
to continue making investments through periods of low price levels.
You cannot make transfers under Asset Rebalancing and participate in the DCA
Program at the same time.
PROCEDURES FOR TELEPHONE TRANSFERS
You may make telephone transfers in two ways. You may directly contact a
customer service representative. You 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. If you intend to conduct telephone transfers through the
VRU, you will be asked to complete a Telephone Authorization Form.
We 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 you. 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 us through a written letter. Moreover, all VRU transactions will
be assigned a unique confirmation number which will become part of the
Certificate's history. We are not liable for any loss, cost or expense for
action on telephone instructions which are believed to be genuine in accordance
with these procedures.
PROCESSING OF TRANSACTIONS
Generally, we process your transactions only on a Valuation Day. We will process
requests that we receive on a Valuation Day before the close of trading on the
New York Stock Exchange ("NYSE") (generally 4:00 p.m. Eastern Time) on that same
day, except as otherwise indicated in this Prospectus. We will process requests
that we receive after the close of the NYSE as of the next Valuation Day.
LOANS
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As long as the Certificate is in effect, you may obtain without the consent of
the beneficiary (provided the designation of beneficiary is not irrevocable), a
cash Loan from us. The maximum Loan amount is equal to the sum of the Cash
Surrender Value plus outstanding Debt, multiplied by .90, minus outstanding
Debt.
We will transfer the amount of each Loan on a Pro Rata Basis from each of the
Investment Divisions (unless you specify otherwise) to the Loan Account. We use
the Loan Account 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. We will transfer the difference between the
value of the Loan Account and any outstanding Debt from the Investment Divisions
to the Loan Account on each Certificate Anniversary. Interest payments are due
as shown in the Certificate. If you do not pay interest within five (5) days of
its due date, we will add it to the amount of the Loan as of its due date.
<PAGE>
24 HARTFORD LIFE INSURANCE COMPANY
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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 (2) months prior to
the date on which we determine the adjustable loan interest rate.
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
We will credit interest on amounts in the Loan Account for Coverage Years 1
through 10 at a rate equal to the adjustable loan interest rate, minus 1%. We
will credit interest on amounts in the Loan Account for Coverage Years 11 and
later at a rate equal to the adjustable loan interest rate, minus .20%.
LOAN REPAYMENTS
You can repay any part of or the entire Loan at any time. We will allocate the
amount of the Loan repayment to your chosen Investment Divisions on a Pro Rata
Basis, determined as of the date of the Loan repayment. Unless specified
otherwise, we will treat any additional premium payments that we receive during
the period when a Loan is outstanding as Loan repayments.
TERMINATION DUE TO EXCESSIVE DEBT
If total outstanding Debt equals or exceeds the Cash 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 you do not make sufficient
Loan repayment 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, your 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, your 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.
LAPSE AND REINSTATEMENT
- --------------------------------------------------------------------------------
LAPSE AND GRACE PERIOD
We provide a sixty-one (61) calendar day grace period, from the date we mail you
notice that the Cash Surrender Value is insufficient to pay the charges due
under the Certificate. Unless you have given us written notice of termination in
advance of the date of termination of the Certificate, insurance will continue
in force during this period. You will be liable to us for all unpaid charges due
under the Certificate for the period that the Certificate remains in force.
In the event that total outstanding Debt equals or exceeds the Cash 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 you do
not make sufficient Loan repayment by the end of this 31-day period, the
Certificate will end without value.
REINSTATEMENT
Prior to the death of the Insured, and unless (i) the Policy is terminated or
(ii) the Certificate has been surrendered for cash, we may reinstate the
Certificate prior to the Maturity Date, provided:
- - you make your request within three (3) years of the date of lapse. Some states
provide a longer period; and
- - you submit satisfactory evidence of insurability to us.
We will not require evidence of insurability, if you reinstate your Certificate
within one (1) month after the end of the 61-calendar day grace period, provided
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:
- - The Investment Value at the time of termination; plus
- - Net Premiums attributable to premiums paid at the time of reinstatement.
Upon reinstatement, you must repay or carry over to the reinstated certificate
any Debt at the time of termination.
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HARTFORD LIFE INSURANCE COMPANY 25
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TERMINATION OF POLICY
The group policyholder or we may terminate participation in the Policy. 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, we will not
accept any new enrollment forms for new Insureds on or after the date that we
receive or send notice of discontinuance, whichever is applicable. In addition,
we will not issue any new Certificates. If you discontinue premium payments, we
will continue insurance coverage under the Certificate as long as the Cash
Surrender Value is sufficient to cover the charges due. We will not continue the
coverage under the Certificate beyond attained age 100 unless your Certificate
includes the Maturity Date Extension Rider. Attained age means the Insured's age
on the birthday nearest to the Coverage Date plus the period since the Coverage
Date. In addition, we will not continue any optional benefit rider beyond the
Certificate's date of termination. If the 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 Policy, provided you
have not canceled or surrendered it, subject to our qualifications then in
effect. You will then pay Certificate premiums directly to us.
CONTRACT LIMITATIONS
- --------------------------------------------------------------------------------
PARTIAL WITHDRAWALS
We limit you to twelve (12) partial withdrawals per Coverage Year.
TRANSFERS OF ACCOUNT VALUE
We reserve the right to limit the size of transfers and remaining balances and
to limit the number and frequency of transfers among the Investment Divisions.
FACE AMOUNT INCREASES OR DECREASES
We reserve the right to limit the number of Face Amount increases or decreases
made under the Certificate to no more than one (1) in any twelve (12) month
period.
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 New York
Stock Exchange is closed for some reason other than a regular holiday or
Weekend, trading is restricted by the Securities and Exchange Commission ("SEC")
or the SEC declares that an emergency exists.
DEFERRAL OF PAYMENTS
We may defer payment of any Cash Surrender Values, withdrawals and loan amounts
that are not attributable to the Investment Divisions for up to six (6) months
from the date of the request. If we defer payment for more than thirty (30)
days, we will pay you interest.
CHANGES TO CONTRACT OR SEPARATE ACCOUNT
- --------------------------------------------------------------------------------
MODIFICATION OF POLICY
The only way we may modify the policy is by a written agreement signed by our
President, or one of our Vice Presidents, Secretaries, or Assistant Secretaries.
SUBSTITUTION OF FUNDS
We reserve the right to substitute the shares of any other registered investment
company for the shares of any Fund already purchased or to be purchased in the
future by the Separate Account provided that the substitution has been approved
by the Securities and Exchange Commission.
CHANGE IN OPERATION OF THE
SEPARATE ACCOUNT
We may modify the operation of the Separate Account to the extent permitted by
law, including deregistration under the securities laws.
SEPARATE ACCOUNT TAXES
Currently, we do not make a charge to the Separate Account for federal, state
and local taxes that may be allocable to the Separate Account. In the future, we
may begin to charge the Separate Account for federal, state and local taxes if
the applicable federal, state or local tax laws that impose tax on us and/or the
Separate Account change. We may make charges for other taxes that are imposed on
the Separate Account.
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26 HARTFORD LIFE INSURANCE COMPANY
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SUPPLEMENTAL BENEFITS
The following supplemental benefit will automatically be included in a
Certificate, subject to our current restrictions, limitations, and state
approval, unless you notify us in writing that you do not want it.
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 "Taxes -- Income Taxation of Certificate Benefits."
OTHER MATTERS
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REDUCED CHARGES FOR ELIGIBLE GROUPS
We may reduce or eliminate certain of the charges and deductions described above
(including, sales load, mortality and expense risk charge, cost of insurance
charge and administrative expense charge) for Policies issued in connection with
a specific plan, in accordance with our current internal policies as of the date
we approve the application for a policy. We determine eligibility for reduction
in charges and the amount of any reduction by a number of factors, including:
- - the size of the plan;
- - the expected number of participants;
- - the anticipated premuim payments of the plan;
- - the nature of the group; and
- - any other circumstances that are rationally related to the expected reduction
in expenses
We 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 policy
owners invested in the Separate Account.
OUR RIGHTS
We reserve the right to take certain actions in connection with our operations
and the operations of the Separate Account. We will take these actions in
accordance with applicable laws (including obtaining any required approval of
the Securities and Exchange Commission). If necessary, we will seek your
approval.
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 your voting rights or of any other persons who
have voting rights as to the Separate Account.
We also reserve the right to change the name of the Separate Account.
LIMIT ON RIGHT TO CONTEST
We may not contest the validity of the Certificate after it has been in effect
during the Insured's lifetime for two (2) years from the Issue Date. If we
reinstate the Certificate, the 2-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 2 years from its effective date. In addition, if the Insured
commits suicide in the 2-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, we will appropriately
adjust the amount of all benefits payable, as specified in the Certificate.
ASSIGNMENT
The Certificate may be assigned as collateral for a loan or other obligation. We
are not responsible for any payment made or action taken before receipt of
written notice of such assignment. You must file proof of interest with any
claim under a collateral assignment.
DIVIDENDS
No dividends will be paid under the Certificates.
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HARTFORD LIFE INSURANCE COMPANY 27
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TAXES
GENERAL
Since federal tax law is complex, the tax consequences of purchasing this policy
will vary depending on your situation. You may need tax or legal advice to help
you determine whether purchasing this policy is right for you.
Our general discussion of the tax treatment of this policy is based on our
understanding of federal income tax laws as they are currently interpreted. A
detailed description of all federal income tax consequences regarding the
purchase of this policy cannot be made in the prospectus. We also do not discuss
state, municipal or other tax laws that may apply to this policy. For detailed
information, you should consult with a qualified tax adviser familiar with your
situation.
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 "Death Benefits and Policy Values --
Values Under the Certificate"). 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 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 contract are treated first as income, then as a recovery of basis.
Taxable withdrawals are subject to a 10% Federal income tax penalty, with
certain exceptions. Generally, only distributions and loans made in the first
year in which a policy becomes a modified endowment contract, 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. In addition, if there is a reduction in benefits
under the Certificate within the first seven Coverage Years, the seven-pay test
is applied as if the Certificate had initially been issued at the reduced
benefit level. Any reduction in benefits attributable to the nonpayment of
premiums will not be taken into account for purposes of the seven-pay test if
the benefits are reinstated within 90 days after the reduction.
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28 HARTFORD LIFE INSURANCE COMPANY
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If the Certificate satisfies the seven-pay test for seven years, distributions
and loans made thereafter will not be subject to the modified endowment contract
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.
Before assigning, pledging, or requesting a Loan under a Certificate that is a
modified endownment contract, an owner should consult a qualified tax adviser.
All modified endowment contracts 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 contract 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
The Code requires that investments supporting your policy be adequately
diversified. Code Section 817 provides that a variable life insurance contract
will not be treated as a life insurance contract for any period during which the
investments made by the separate account or underlying fund are not adequately
diversified. If a policy is not treated as a life insurance contract, the policy
owner will be subject to income tax on annual increases in cash value.
The Treasury Department's diversification regulations require, among other
things, that:
- - no more than 55% of the value of the total assets of the segregated asset
account 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 the
case of government securities, each government agency or instrumentality is
treated as a separate issuer.
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 still comply within a reasonable period and avoid
the taxation of contract income on an ongoing basis. However, either the company
or the policy owner must agree to pay the tax due for the period during which
the diversification requirements were not met.
We monitor the diversification of investments in the separate accounts and test
for diversification as required by the Code. We intend to administer all
policies subject to the diversification requirements in a manner that will
maintain adequate diversification.
OWNERSHIP OF THE ASSETS IN THE
SEPARATE ACCOUNT
In order for a variable life insurance contract to qualify for tax deferral,
assets in the separate accounts supporting the contract must be considered to be
owned by the insurance company and not by the policy owner. It is unclear under
what circumstances an investor is considered to have enough control over the
assets in the separate account to be considered the owner of the assets for tax
purposes.
The IRS has issued several rulings discussing investor control. These rulings
say that certain incidents of ownership by the policy owner, such as the ability
to select and control investments in a separate account, will cause the policy
owner to be treated as the owner of the assets for tax purposes.
In its explanation of the diversification regulations, the Treasury Department
recognized that the temporary regulations "do not provide guidance concerning
the circumstances in which investor control of the investments of a segregated
asset account may cause the investor, rather than the insurance company, to be
treated as the owner of the assets in the account." The explanation further
indicates that "the temporary regulations provide that in appropriate cases a
segregated asset account may include multiple sub-accounts, but do not specify
the extent to which policyholders may direct their investments to particular
sub-accounts without being treated as the owners of the underlying assets.
Guidance on this and other issues will be provided in regulations or revenue
rulings under Section 817(d), relating to the definition of variable policy."
The final regulations issued under Section 817 did not provide guidance
regarding investor control, and as of the date of this prospectus, guidance has
yet to be issued. We do not know if additional guidance will be issued. If
guidance is issued, we do not know if it will have a retroactive effect.
Due to the lack of specific guidance on investor control, there is some
uncertainty about when a policy owner is considered the owner of the assets for
tax purposes. We reserve the right to modify the policy, as necessary, to
prevent you from being considered the owner of assets in the separate account.
TAX DEFERRAL DURING ACCUMULATION PERIOD
Under existing provisions of the Code, except as described below, any increase
in an owner's Investment Value is generally not taxable to the Policy Owner
unless amounts are received (or are deemed to be received) under the Policy
prior to the Insured's death. If the Policy is surrendered or matures, the
amount received will be includable in the Policy Owner's income to the extent
that it exceeds the Policy Owner's "investment in the
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 29
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contract." (If there is any debt at the time of a surrender, then such debt will
be treated as an amount distributed to the owner.) The "investment in the
contract" is the aggregate amount of premium payments and other consideration
paid for the Policy, less the aggregate amount received previously under the
Policy to the extent such amounts received were excluded from gross income.
Whether partial withdrawals (or other such amounts deemed to be distributed)
from the Policy constitute income to the Policy Owner depends, in part, upon
whether the Policy is considered a modified endowment policy for Federal income
tax purposes.
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, three
years, 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.
If applicable, the Investment Divisions 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 the last day of the period. This figure reflects the Certificate
charges described below.
The Investment Division investing in the Hartford Money Market HLS 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.
We 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
- --------------------------------------------------------------------------------
The Separate Account is not a party to any pending material legal proceedings.
<PAGE>
30 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
GLOSSARY OF SPECIAL TERMS
As used in this Prospectus, the following terms have the indicated meanings:
ACCUMULATION UNIT: A unit of measure we use to calculate the value of an
Investment Division.
CASH SURRENDER VALUE: The Cash Value, minus Debt, minus accrued charges that we
have not deducted.
CASH VALUE: The Investment Value plus the Loan Account Value.
CERTIFICATE: The form evidencing and describing your rights, benefits, and
options under the 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 Policy as they
pertain to the Insured.
CERTIFICATE ANNIVERSARY: An anniversary of the Coverage Date.
COVERAGE DATE: The date insurance under the Certificate is effective as to an
Insured and from which we determine Coverage Months and Coverage Years.
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
located at 100 Campus Drive, Suite 250, Florham Park, New Jersey 07932.
DEATH PROCEEDS: The amount that we will pay on the death of the Insured. This
equals the death benefit minus any outstanding Debt plus any rider benefits
payable.
DEBT: The aggregate amount of outstanding Loans, plus any interest accrued at
the adjustable loan interest rate.
FACE AMOUNT: The minimum death benefit as long as the Certificate is in force.
We specify the Face Amount you chose on your Certificate. We may change the Face
Amount after certificate issuance on your request or due to a change in death
benefit option or a partial withdrawal.
FUNDS: The underlying investment vehicles for the Separate Account. Each Fund is
a registered management company.
HARTFORD OR US OR WE OR OUR: Hartford Life Insurance Company.
INSURED: The person on whose life we issue the Certificate. We identify the
Insured 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.
INVESTMENT VALUE: The sum of the values of assets in the Investment Divisions
under the Certificate.
LOAN: Any amount borrowed against the Investment Value under the Certificate.
LOAN ACCOUNT: An account in our general account, established for any amounts
transferred from the Investment Divisions for requested loans. The Loan Account
credits a fixed rate of interest that is not based on the investment experience
of the Separate Account.
LOAN ACCOUNT VALUE: The amounts of the Investment Value transferred to (or from)
our 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%.
MONTHLY DEDUCTION AMOUNT: The fees and charges deducted from the Investment
Value on the Processing Date.
NET PREMIUM: The amount of premium credited to the Investment Divisions.
PORTFOLIO: A division or series of a Fund that serves as the underlying
investment vehicle of an Investment Division of the Separate Account. Each
Investment Division purchases shares of a Portfolio of a Fund.
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 date.
VALUATION DAY: Every day the New York Stock Exchange is open for trading. The
value of the Separate Account is determined at the close of the New York Stock
Exchange (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.
YOU OR YOUR: The person or legal entity designated as the owner in the
enrollment form or as subsequently changed. This person or legal entity may be
someone other than the Insured. You possess all rights under the Policy with
respect to the Certificate.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 31
- --------------------------------------------------------------------------------
WHERE YOU CAN FIND MORE INFORMATION
You can call your representative with questions or write to us at:
International Corporate Marketing Group
Attn: Registered Products
100 Campus Drive, Suite 250
Florham Park, NJ 07932
The Statement of Additional Information, which is attached to this prospectus,
contains more information about this life insurance policy. Like this
prospectus, it is filed with the Securities and Exchange Commission. You should
read the Statement of Additional Information because you are bound by the terms
contained in it.
We file other information with the Securities and Exchange Commission. You may
read and copy any document we file at the SEC's public reference room in
Washington, DC 20549-6009. Please call the SEC at 1-800-SEC-0330 for further
information. Our SEC filings are also available to the public at the SEC's
website at http://www.sec.gov.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A
OMNISOURCE
This Statement of Additional Information is not a prospectus. We will send you a
prospectus if you write us at International Corporate Marketing Group, Attn:
Registered Products, 100 Campus Drive, Suite 250, Florham Park, NJ 07932.
DATE OF PROSPECTUS: MAY 1, 2000
DATE OF STATEMENT OF ADDITIONAL INFORMATION: MAY 1, 2000
<PAGE>
2 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
--------
<S> <C>
GENERAL INFORMATION AND HISTORY 3
- ----------------------------------------------------------------------
SERVICES 5
- ----------------------------------------------------------------------
EXPERTS 5
- ----------------------------------------------------------------------
DISTRIBUTION OF THE POLICIES 5
- ----------------------------------------------------------------------
ADDITIONAL INFORMATION ABOUT CHARGES 6
- ----------------------------------------------------------------------
ILLUSTRATION OF DEATH BENEFITS 7
- ----------------------------------------------------------------------
FINANCIAL STATEMENTS SA-1
- ----------------------------------------------------------------------
</TABLE>
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION 3
- --------------------------------------------------------------------------------
GENERAL INFORMATION AND HISTORY
HARTFORD LIFE INSURANCE COMPANY ("HARTFORD") -- Hartford Life Insurance Company
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. We were originally incorporated under the laws of
Massachusetts on June 5, 1902, and subsequently redomiciled to Connecticut. Our
offices are located in Simsbury, Connecticut; however, our mailing address is
P.O. Box 2999, Hartford, CT 06104-2999.
Hartford Life Insurance Company is controlled by Hartford Life & Accident
Insurance Company, which is controlled by Hartford Life Inc., which is
controlled by Hartford Accident & Indemnity Company, which is controlled by
Hartford Fire Insurance Company, which is controlled by Nutmeg Insurance
Company, which is controlled by The Hartford Financial Services Group, Inc. Each
of these companies is engaged in the business of insurance and financial
services.
The following table shows a brief description of the business experience of
officers and directors of Hartford Life Insurance Company:
<TABLE>
<CAPTION>
POSITION WITH OTHER BUSINESS PROFESSION,
HARTFORD; VOCATION OR EMPLOYMENT FOR PAST
NAME YEAR OF ELECTION FIVE YEARS; OTHER DIRECTORSHIPS
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
David A. Carlson Vice President, 1999 Assistant Vice President and Director of Taxes
(1998-1999), Hartford; Assistant Vice President and
Director of Taxes (1998-1999), Hartford; CIGNA Corporation
(1975-1998).
Peter W. Cummins 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.
Timothy M. Fitch Vice President, 1995 Assistant Vice President (1992-1995), Hartford; Vice
President (1995-Present); Actuary (1994-Present);
Assistant Vice President (1992-1995), Hartford Life and
Accident Insurance Company.
Mary Jane B. Fortin Vice President & Chief Vice President & Chief Accounting Officer, (1998-Present),
Accounting Officer, 1998 Hartford Life & Annuity Insurance Company; Vice President
& Chief Accounting Officer, (1998-Present), Royal Life
Insurance Company of America; Vice President & Chief
Accounting Officer (1998-Present), Alpine Life Insurance
Company; Chief Accounting Officer (1997-Present), Hartford
Life, Inc.; Director, Finance (1995-1997), Value Health,
Inc.; Senior Manager (1993-1995), Coopers and Lybrand;
Audit Manager (1993-1996), Arthur Andersen & Co.
David T. Foy Senior Vice President, Chief Senior Vice President (1998-present); Vice President
Financial Officer & (1998); Assistant Vice President (1995-1998), Hartford;
Treasurer, 1998 Senior Vice President (1998-Present), Hartford Life and
Director, 1999* Accident Insurance Company; Director, Strategic Planning
Corporate Finance (1995-1996); IA Product Development
(1994-1995), Hartford; Various Actuarial Roles
(1989-1993), Milliman & Robertson.
Lynda Godkin 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.
Lois W. Grady Senior Vice President, 1998 Vice President (1993-1998); Assistant Vice President
(1987-1993), Hartford; Senior Vice President, 1998); Vice
President (1993-1997); Assistant Vice President
(1987-1993), Hartford Life and Accident Insurance Company.
</TABLE>
<PAGE>
4 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POSITION WITH OTHER BUSINESS PROFESSION,
HARTFORD; VOCATION OR EMPLOYMENT FOR PAST
NAME YEAR OF ELECTION FIVE YEARS; OTHER DIRECTORSHIPS
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
Stephen T. Joyce Senior Vice President, 1999 Vice President (1997-1999), Assistant Vice President
(1994-1997), Hartford; Assistant Vice President
(1994-1997), Hartford Life and Accident Insurance Company;
Vice President (1997-1999), Assistant Vice President
(1994-1997), Hartford Life and Annuity Insurance Company.
Michael D. Keeler 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.
Robert A. Kerzner Senior Vice President, 1998 Director of Individual Life, Senior Vice President,
(1998-Present); Vice President, (1995-1998); Regional Vice
President (1991-1994), Hartford; Vice President
(1994-1997), Hartford Life and Accident Insurance Company.
Thomas M. Marra President, 2000 Executive Vice President (1995-2000), Senior Vice
Director, 1994* President (1994-1995); Vice President (1989-1994); Actuary
(1987-1995), Hartford; Director (1994-Present); Executive
Vice President (1995-Present); Senior Vice President
(1994-1995); Vice President (1989-1994), Actuary
(1987-1997), Hartford Life and Accident Insurance Company;
President (2000-present), Executive Vice President
(1996-2000), Director (1994-present), Senior Vice
President (1993-1996), Hartford Life and Annuity Insurance
Company; Chief Operating Officer (2000-present), Executive
Vice President, Individual Life and Annuities (1997-2000),
Hartford Life, Inc.
Craig R. Raymond 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.
Donald A. Salama Vice President, 1997 Vice President (1997-Present), Hartford Life and Accident
Insurance Company; Principal and Director, Institutional
Sales (1995-1998), The Vanguard Group; Senior Vice
President (1994-1995), Mercantile
Bancorporation; Vice President (1988-1994), Bankers Trust
Company.
Lowndes A. Smith Chief Executive Officer, 1997 President (1989-2000), Chief Operating Officer
Director, 1981* (1989-1997), Hartford; Chief Executive Officer
(1997-present), President (1989-2000), Chief Operating
Officer (1989-1997), Director (1985-present); Hartford
Life and Annuity Insurance Company; Director
(1981-Present); President (1989-Present); Chief 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.
David M. Znamierowski Senior Vice President & Chief Vice President (1997), Hartford; Director (1998-Present);
Investment Officer, 1997 Senior Vice President (1997-Present), Hartford Life and
Director, 1998* Accident Insurance Company; Vice President, Investment
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 of the above
individuals is P.O. Box 2999, Hartford, CT 06104-2999.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION 5
- --------------------------------------------------------------------------------
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A was established as a separate
account under Connecticut law on April 14, 1998. The Separate Account is
classified as a unit investment trust registered with the Securities and
Exchange Commission under the Investment Company Act of 1940.
SERVICES
- --------------------------------------------------------------------------------
SAFEKEEPING OF ASSETS -- Title to the assets of the Separate Account is held by
Hartford. The assets are kept physically segregated and are held separate and
apart from Hartford's general
corporate assets. Records are maintained of all purchases and redemptions of
Fund shares held in each of the Investment Divisions.
EXPERTS
- --------------------------------------------------------------------------------
INDEPENDENT PUBLIC ACCOUNTANTS -- 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.
ACTUARIAL EXPERT -- The hypothetical Policy illustrations included in this
Statement of Additional Information and the registration statement with respect
to the Separate Account have been approved by James M. Hedreen, FSA, MAAA,
Actuary, for Hartford, and are included in reliance upon his opinion as to their
reasonableness.
DISTRIBUTION OF THE POLICIES
- --------------------------------------------------------------------------------
Hartford Equity Sales Company, Inc. ("HESCO") serves as principal underwriter
for the Certificates and will offer the Policies on a continuous basis. HESCO is
an affiliate of Hartford. Both HESCO and Hartford are ultimately controlled by
The Hartford Financial Services Group, Inc. HESCO is located at the same address
as Hartford. HESCO is registered with the Securities and Exchange Commission
under the Securities Exchange Act of 1934 as a broker-dealer and is a member of
the National Association of Securities Dealers, Inc. ("NASD").
The Policies will be sold by salespersons who represent Hartford as insurance
agents and who are registered representatives of HESCO or certain other
registered broker-dealers who have entered into distribution agreements with
HESCO.
The maximum sales commission payable to Hartford agents, independent registered
insurance brokers, and other registered broker-dealers is 12% of the premiums
paid. Additionally, expense allowances, service fees and asset-based trail
commissions may be paid. A sales representative may be required to return all or
a portion of the commissions paid if a Certificate terminates prior to the
Certificate's second Certificate Anniversary.
Broker-dealers or financial institutions are compensated according to a schedule
set forth HESCO and any applicable rules or regulations for variable insurance
compensation. Compensation is generally based on premium payments. This
compensation is usually paid from the sales charges described in the 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 other financial institutions based
on total sales by the broker-dealer or financial institution of insurance
products. These payments, which may be different for broker-dealers or financial
institutions, will be made by HESCO, its affiliates or Hartford out of their
assets and will not effect the amounts paid by the policy owners or contract
owners to purchase, hold or surrender variable insurance products.
The following table shows officers and directors of HESCO:
<TABLE>
<CAPTION>
NAME AND PRINCIPAL
BUSINESS ADDRESS POSITIONS AND OFFICES
<S> <C>
- -----------------------------------------------------------------
David A. Carlson Vice President
- -----------------------------------------------------------------
Peter W. Cummins Senior Vice President
- -----------------------------------------------------------------
David T. Foy Treasurer
- -----------------------------------------------------------------
Lynda Godkin Senior Vice President, General
Counsel and Corporate Secretary
- -----------------------------------------------------------------
George R. Jay Controller
- -----------------------------------------------------------------
Robert A. Kerzner Executive Vice President, Director
- -----------------------------------------------------------------
Thomas M. Marra Executive Vice President, Director
- -----------------------------------------------------------------
Donald R. Salama Vice President
- -----------------------------------------------------------------
Lowndes A. Smith President and Chief Executive
Officer, Director
- -----------------------------------------------------------------
</TABLE>
<PAGE>
6 HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION ABOUT CHARGES
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 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 the expenses related to the sale and distribution of
the Certificates.
REDUCED CHARGES FOR ELIGIBLE GROUPS -- Certain of the charges and deductions
described above (including sales load, mortality and expense risk charge, cost
of insurance charge and administrative charge) may be reduced for certain sales
of the Certificates. To qualify for this 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 the Certificates are purchased
and certain characteristics of the plan's members. From time to time, we may
modify 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 Certificate Owners invested in ICMG
Registered Variable Life Separate Account A.
UNDERWRITING PROCEDURES -- To purchase a Certificate you must submit an
enrollment form to us. Within limits, you may choose the initial Premium and the
initial Face Amount. Certificates generally will be issued only on the lives of
insureds ages 79 and under who supply evidence of insurability satisfactory to
us. Acceptance is subject to our underwriting rules and we reserve the right to
reject an enrollment form for any reason. No change in the terms or conditions
of a Certificate will be made without your consent.
The cost of insurance charge is to cover our anticipated mortality costs. We use
various underwriting procedures, including medical underwriting procedures,
depending on the characteristics of the group to which the 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
Policy that are agreed to by Hartford and the employer. The actual monthly cost
of insurance rates will be based on our expectations as to future experience. We
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 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, preferred and standard, and/or any other nondiscriminatory classes
agreed to by the 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.
INCREASES IN FACE AMOUNT -- At any time after purchasing a Certificate, You may
request In Writing to change the Face Amount. In most cases, the minimum Face
Amount of the Certificate is $50,000.
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
Us 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. We reserve the
right to limit the number of increases made under the Certificate to not more
than one in any 12 month period.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION 7
- --------------------------------------------------------------------------------
ILLUSTRATIONS OF DEATH BENEFITS, ACCOUNT VALUES
AND CASH SURRENDER VALUES
The following tables illustrate how the death benefit, Cash Value and Cash
Surrender Value of a Policy may change with the investment experience of the
Separate Account. They 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. They
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 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 0.98%. The 0.98% figure is based on an
average of the current management fees and expenses of the available Portfolios.
Actual fees and expenses of the Portfolios associated with a Certificate may be
more or less than 0.98%, 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
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>
8 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 0.00% (-0.98% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% 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 12,338 12,338 250,000 11,016 11,016 250,000
2 30,355 24,429 24,429 250,000 21,852 21,852 250,000
3 46,680 36,314 36,314 250,000 32,511 32,511 250,000
4 63,821 48,016 48,016 250,000 42,998 42,998 250,000
5 81,819 59,552 59,552 250,000 53,314 53,314 250,000
6 100,717 70,923 70,923 250,000 63,465 63,465 250,000
7 120,560 82,140 82,140 250,000 73,445 73,445 250,000
8 126,588 80,660 80,660 250,000 70,948 70,948 250,000
9 132,917 79,167 79,167 250,000 68,329 68,329 250,000
10 139,563 77,654 77,654 250,000 65,566 65,566 250,000
11 146,541 76,179 76,179 250,000 62,644 62,644 250,000
12 153,868 74,655 74,655 250,000 59,542 59,542 250,000
13 161,561 73,072 73,072 250,000 56,247 56,247 250,000
14 169,639 71,427 71,427 250,000 52,737 52,737 250,000
15 178,121 69,716 69,716 250,000 48,989 48,989 250,000
16 187,027 67,760 67,760 250,000 44,967 44,967 250,000
17 196,378 65,684 65,684 250,000 40,626 40,626 250,000
18 206,197 63,496 63,496 250,000 35,911 35,911 250,000
19 216,507 61,172 61,172 250,000 30,754 30,754 250,000
20 227,332 58,695 58,695 250,000 25,085 25,085 250,000
25 290,140 43,974 43,974 250,000 0 0 0
30 370,300 23,836 23,836 250,000 0 0 0
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates and front-end Sales
loads.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and 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.
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>
STATEMENT OF ADDITIONAL INFORMATION 9
- --------------------------------------------------------------------------------
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% (5.02% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% 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 13,092 13,092 250,000 11,719 11,719 250,000
2 30,355 26,706 26,706 250,000 23,953 23,953 250,000
3 46,680 40,911 40,911 250,000 36,731 36,731 250,000
4 63,821 55,754 55,754 250,000 50,089 50,089 250,000
5 81,819 71,284 71,284 250,000 64,059 64,059 250,000
6 100,717 87,533 87,533 250,000 78,682 78,682 250,000
7 120,560 104,547 104,547 250,000 93,992 93,992 250,000
8 126,588 109,060 109,060 250,000 96,982 96,982 250,000
9 132,917 113,766 113,766 250,554 100,019 100,019 250,000
10 139,563 118,668 118,668 254,132 103,094 103,094 250,000
11 146,541 123,880 123,880 258,066 106,206 106,206 250,000
12 153,868 129,293 129,293 262,146 109,352 109,352 250,000
13 161,561 134,913 134,913 266,343 112,533 112,533 250,000
14 169,639 140,747 140,747 270,658 115,748 115,748 250,000
15 178,121 146,806 146,806 275,099 118,997 118,997 250,000
16 187,027 153,128 153,128 279,728 122,271 122,271 250,000
17 196,378 159,682 159,682 284,496 125,560 125,560 250,000
18 206,197 166,489 166,489 289,437 128,851 128,851 250,000
19 216,507 173,551 173,551 294,567 132,128 132,128 250,000
20 227,332 180,874 180,874 299,899 135,376 135,376 250,000
25 290,140 222,102 222,102 330,343 150,879 150,879 250,000
30 370,300 272,426 272,426 368,724 163,445 163,445 250,000
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates and front-end Sales
loads.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and 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.
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>
10 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 12.00% (11.02% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS ----------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% 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 13,845 13,845 250,000 12,422 12,422 250,000
2 30,355 29,074 29,074 250,000 26,140 26,140 250,000
3 46,680 45,881 45,881 250,000 41,301 41,301 250,000
4 63,821 64,457 64,457 250,000 58,078 58,078 250,000
5 81,819 85,011 85,011 250,000 76,658 76,658 250,000
6 100,717 107,756 107,756 257,582 97,257 97,257 250,000
7 120,560 132,854 132,854 308,427 119,956 119,956 278,653
8 126,588 146,538 146,538 330,511 131,217 131,217 296,143
9 132,917 161,623 161,623 354,306 143,487 143,487 314,757
10 139,563 178,247 178,247 379,959 156,844 156,844 334,567
11 146,541 196,741 196,741 407,956 171,380 171,380 355,649
12 153,868 217,109 217,109 438,163 187,189 187,189 378,084
13 161,561 239,534 239,534 470,702 204,383 204,383 401,958
14 169,639 264,221 264,221 505,756 223,080 223,080 427,362
15 178,121 291,400 291,400 543,532 243,405 243,405 454,395
16 187,027 321,380 321,380 584,372 265,483 265,483 483,160
17 196,378 354,356 354,356 628,418 289,446 289,446 513,767
18 206,197 390,651 390,651 675,999 315,429 315,429 546,336
19 216,507 430,574 430,574 727,435 343,566 343,566 580,990
20 227,332 474,477 474,477 783,075 374,007 374,007 617,865
25 290,140 769,966 769,966 1,139,920 567,300 567,300 840,847
30 370,300 1,247,990 1,247,990 1,681,330 848,755 848,755 1,145,081
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates and front-end Sales
loads.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and 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.
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>
STATEMENT OF ADDITIONAL INFORMATION 11
- --------------------------------------------------------------------------------
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% (-0.98% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% 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 12,332 12,332 262,357 10,963 10,963 261,070
2 30,355 24,400 24,400 274,446 21,690 21,690 271,816
3 46,680 36,241 36,241 286,307 32,175 32,175 282,321
4 63,821 47,876 47,876 297,959 42,416 42,416 292,583
5 81,819 59,321 59,321 309,419 52,406 52,406 302,593
6 100,717 70,573 70,573 320,687 62,138 62,138 312,347
7 120,560 81,643 81,643 331,772 71,595 71,595 321,827
8 126,588 80,010 80,010 330,140 68,552 68,552 318,794
9 132,917 78,353 78,353 328,486 65,363 65,363 315,617
10 139,563 76,667 76,667 326,802 62,003 62,003 312,272
11 146,541 74,998 74,998 325,132 58,461 58,461 308,745
12 153,868 73,259 73,259 323,398 54,719 54,719 305,019
13 161,561 71,439 71,439 321,585 50,769 50,769 301,086
14 169,639 69,533 69,533 319,686 46,595 46,595 296,931
15 178,121 67,541 67,541 317,701 42,182 42,182 292,537
16 187,027 65,173 65,173 315,365 37,498 37,498 287,876
17 196,378 62,657 62,657 312,861 32,509 32,509 282,912
18 206,197 60,007 60,007 310,222 27,171 27,171 277,603
19 216,507 57,197 57,197 307,425 21,432 21,432 271,897
20 227,332 54,208 54,208 304,451 15,244 15,244 265,746
25 290,140 36,809 36,809 287,123 0 0 0
30 370,300 14,319 14,319 264,726 0 0 0
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates and front-end Sales
loads.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and 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.
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>
12 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 6.00% (5.02% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% 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 13,084 13,084 263,046 11,663 11,663 261,713
2 30,355 26,674 26,674 276,593 23,774 23,774 273,786
3 46,680 40,827 40,827 290,698 36,346 36,346 286,319
4 63,821 55,589 55,589 305,407 49,395 49,395 299,328
5 81,819 70,999 70,999 320,763 62,932 62,932 312,823
6 100,717 87,085 87,085 336,791 76,970 76,970 326,818
7 120,560 103,885 103,885 353,531 91,510 91,510 341,315
8 126,588 108,150 108,150 357,782 93,607 93,607 343,418
9 132,917 112,568 112,568 362,187 95,608 95,608 345,428
10 139,563 117,138 117,138 366,744 97,485 97,485 347,315
11 146,541 121,960 121,960 371,545 99,214 99,214 349,057
12 153,868 126,918 126,918 376,491 100,769 100,769 350,626
13 161,561 132,006 132,006 381,568 102,130 102,130 352,004
14 169,639 137,226 137,226 386,776 103,271 103,271 353,164
15 178,121 142,579 142,579 392,119 104,160 104,160 354,075
16 187,027 147,897 147,897 397,439 104,752 104,752 354,692
17 196,378 153,296 153,296 402,831 104,993 104,993 354,962
18 206,197 158,795 158,795 408,322 104,817 104,817 354,822
19 216,507 164,370 164,370 413,890 104,147 104,147 354,194
20 227,332 170,003 170,003 419,519 102,904 102,904 352,999
25 290,140 199,349 199,349 448,833 85,376 85,376 335,816
30 370,300 229,728 229,728 479,204 37,965 37,965 289,063
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates and front-end Sales
loads.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and 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.
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>
STATEMENT OF ADDITIONAL INFORMATION 13
- --------------------------------------------------------------------------------
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% (11.02% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS ----------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% 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 13,837 13,837 263,732 12,363 12,363 262,354
2 30,355 29,039 29,039 278,815 25,943 25,943 275,828
3 46,680 45,786 45,786 295,427 40,861 40,861 290,629
4 63,821 64,261 64,261 313,751 57,255 57,255 306,894
5 81,819 84,662 84,662 333,985 75,267 75,267 324,765
6 100,717 107,189 107,189 356,326 95,063 95,063 344,405
7 120,560 132,076 132,076 381,007 116,808 116,808 365,980
8 126,588 145,533 145,533 394,354 127,000 127,000 376,101
9 132,917 160,373 160,373 409,073 138,077 138,077 387,101
10 139,563 176,736 176,736 425,303 150,107 150,107 399,048
11 146,541 194,949 194,949 443,354 163,176 163,176 412,026
12 153,868 215,022 215,022 463,265 177,371 177,371 426,123
13 161,561 237,143 237,143 485,207 192,803 192,803 441,447
14 169,639 261,526 261,526 509,393 209,584 209,584 458,110
15 178,121 288,411 288,411 537,957 227,836 227,836 476,234
16 187,027 318,083 318,083 578,377 247,681 247,681 495,940
17 196,378 350,720 350,720 621,970 269,248 269,248 517,356
18 206,197 386,642 386,642 669,062 292,669 292,669 540,615
19 216,507 426,155 426,155 719,969 318,082 318,082 565,855
20 227,332 469,606 469,606 775,037 345,642 345,642 593,227
25 290,140 762,058 762,058 1,128,213 522,567 522,567 774,543
30 370,300 1,235,170 1,235,170 1,664,058 781,769 781,769 1,054,708
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates and front-end Sales
loads.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and 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.
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>
14 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 0.00% (-0.98% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% 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 5,140 5,140 250,000 3,969 3,969 250,000
2 12,915 10,117 10,117 250,000 7,814 7,814 250,000
3 19,861 14,971 14,971 250,000 11,532 11,532 250,000
4 27,154 19,721 19,721 250,000 15,122 15,122 250,000
5 34,812 24,382 24,382 250,000 18,577 18,577 250,000
6 42,853 28,952 28,952 250,000 21,894 21,894 250,000
7 51,296 33,441 33,441 250,000 25,057 25,057 250,000
8 60,161 37,968 37,968 250,000 28,175 28,175 250,000
9 69,469 42,409 42,409 250,000 31,112 31,112 250,000
10 79,242 46,757 46,757 250,000 33,853 33,853 250,000
11 89,504 51,045 51,045 250,000 36,390 36,390 250,000
12 100,279 55,222 55,222 250,000 38,711 38,711 250,000
13 111,593 59,282 59,282 250,000 40,813 40,813 250,000
14 123,473 63,227 63,227 250,000 42,685 42,685 250,000
15 135,947 67,057 67,057 250,000 44,315 44,315 250,000
16 149,044 70,608 70,608 250,000 45,679 45,679 250,000
17 162,796 74,021 74,021 250,000 46,750 46,750 250,000
18 177,236 77,309 77,309 250,000 47,490 47,490 250,000
19 192,398 80,461 80,461 250,000 47,853 47,853 250,000
20 208,318 83,466 83,466 250,000 47,796 47,796 250,000
25 300,684 96,579 96,579 250,000 39,570 39,570 250,000
30 418,569 106,157 106,157 250,000 9,361 9,361 250,000
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates and front-end Sales
loads.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and 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.
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>
STATEMENT OF ADDITIONAL INFORMATION 15
- --------------------------------------------------------------------------------
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% (5.02% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% 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 5,456 5,456 250,000 4,244 4,244 250,000
2 12,915 11,070 11,070 250,000 8,615 8,615 250,000
3 19,861 16,887 16,887 250,000 13,114 13,114 250,000
4 27,154 22,935 22,935 250,000 17,747 17,747 250,000
5 34,812 29,241 29,241 250,000 22,514 22,514 250,000
6 42,853 35,814 35,814 250,000 27,419 27,419 250,000
7 51,296 42,676 42,676 250,000 32,454 32,454 250,000
8 60,161 49,969 49,969 250,000 37,745 37,745 250,000
9 69,469 57,581 57,581 250,000 43,165 43,165 250,000
10 79,242 65,525 65,525 250,000 48,711 48,711 250,000
11 89,504 73,873 73,873 250,000 54,386 54,386 250,000
12 100,279 82,579 82,579 250,000 60,192 60,192 250,000
13 111,593 91,659 91,659 250,000 66,142 66,142 250,000
14 123,473 101,137 101,137 250,000 72,243 72,243 250,000
15 135,947 111,040 111,040 250,000 78,505 78,505 250,000
16 149,044 121,373 121,373 250,000 84,929 84,929 250,000
17 162,796 132,196 132,196 250,000 91,520 91,520 250,000
18 177,236 143,558 143,558 250,000 98,276 98,276 250,000
19 192,398 155,395 155,395 263,751 105,198 105,198 250,000
20 208,318 167,700 167,700 278,056 112,295 112,295 250,000
25 300,684 237,196 237,196 352,793 151,289 151,289 250,000
30 418,569 322,235 322,235 436,139 198,802 198,802 269,455
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates and front-end Sales
loads.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and 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.
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>
16 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 12.00% (11.02% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS ----------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% 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 5,773 5,773 250,000 4,521 4,521 250,000
2 12,915 12,062 12,062 250,000 9,451 9,451 250,000
3 19,861 18,960 18,960 250,000 14,832 14,832 250,000
4 27,154 26,553 26,553 250,000 20,714 20,714 250,000
5 34,812 34,932 34,932 250,000 27,148 27,148 250,000
6 42,853 44,180 44,180 250,000 34,196 34,196 250,000
7 51,296 54,401 54,401 250,000 41,914 41,914 250,000
8 60,161 65,837 65,837 250,000 50,507 50,507 250,000
9 69,469 78,480 78,480 250,000 59,937 59,937 250,000
10 79,242 92,462 92,462 250,000 70,295 70,295 250,000
11 89,504 108,025 108,025 250,000 81,699 81,699 250,000
12 100,279 125,255 125,255 252,785 94,279 94,279 250,000
13 111,593 144,257 144,257 283,475 108,196 108,196 250,000
14 123,473 165,190 165,190 316,196 123,633 123,633 250,000
15 135,947 188,247 188,247 351,127 140,716 140,716 262,693
16 149,044 213,681 213,681 388,541 159,303 159,303 289,920
17 162,796 241,673 241,673 428,584 179,506 179,506 318,623
18 177,236 272,492 272,492 471,532 201,442 201,442 348,906
19 192,398 306,406 306,406 517,659 225,234 225,234 380,883
20 208,318 343,714 343,714 567,264 251,011 251,011 414,673
25 300,684 594,916 594,916 880,762 415,299 415,299 615,552
30 418,569 1,001,403 1,001,403 1,349,120 655,625 655,625 884,524
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates and front-end Sales
loads.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and 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.
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>
STATEMENT OF ADDITIONAL INFORMATION 17
- --------------------------------------------------------------------------------
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% (-0.98% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% 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 5,137 5,137 255,154 3,948 3,948 254,047
2 12,915 10,105 10,105 260,135 7,752 7,752 257,863
3 19,861 14,941 14,941 264,982 11,406 11,406 261,530
4 27,154 19,663 19,663 269,714 14,908 14,908 265,044
5 34,812 24,287 24,287 274,346 18,246 18,246 268,395
6 42,853 28,808 28,808 278,876 21,415 21,415 271,579
7 51,296 33,236 33,236 283,312 24,396 24,396 274,575
8 60,161 37,691 37,691 287,774 27,291 27,291 277,487
9 69,469 42,043 42,043 292,135 29,961 29,961 280,176
10 79,242 46,284 46,284 296,385 32,384 32,384 282,619
11 89,504 50,441 50,441 300,549 34,547 34,547 284,804
12 100,279 54,455 54,455 304,574 36,435 36,435 286,715
13 111,593 58,317 58,317 308,450 38,040 38,040 288,343
14 123,473 62,025 62,025 312,170 39,349 39,349 289,677
15 135,947 65,577 65,577 315,735 40,345 40,345 290,698
16 149,044 68,691 68,691 318,886 40,999 40,999 291,381
17 162,796 71,598 71,598 321,810 41,278 41,278 291,691
18 177,236 74,312 74,312 324,540 41,138 41,138 291,586
19 192,398 76,808 76,808 327,054 40,529 40,529 291,015
20 208,318 79,069 79,069 329,334 39,403 39,403 289,932
25 300,684 87,085 87,085 337,443 24,667 24,667 275,458
30 418,569 88,677 88,677 339,151 0 0 0
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates and front-end Sales
loads.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and 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.
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>
18 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 6.00% (5.02% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% 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 5,453 5,453 255,444 4,223 4,223 254,301
2 12,915 11,057 11,057 261,034 8,547 8,547 258,617
3 19,861 16,852 16,852 266,814 12,969 12,969 263,031
4 27,154 22,866 22,866 272,809 17,490 17,490 267,544
5 34,812 29,123 29,123 279,045 22,101 22,101 272,147
6 42,853 35,629 35,629 285,530 26,798 26,798 276,836
7 51,296 42,403 42,403 292,281 31,562 31,562 281,594
8 60,161 49,584 49,584 299,438 36,503 36,503 286,531
9 69,469 57,054 57,054 306,883 41,482 41,482 291,506
10 79,242 64,817 64,817 314,621 46,473 46,473 296,497
11 89,504 72,932 72,932 322,706 51,463 51,463 301,487
12 100,279 81,339 81,339 331,088 56,430 56,430 306,455
13 111,593 90,041 90,041 339,765 61,362 61,362 311,391
14 123,473 99,045 99,045 348,744 66,240 66,240 316,273
15 135,947 108,365 108,365 358,036 71,040 71,040 321,080
16 149,044 117,791 117,791 367,454 75,724 75,724 325,774
17 162,796 127,502 127,502 377,140 80,249 80,249 330,312
18 177,236 137,523 137,523 387,135 84,556 84,556 334,637
19 192,398 147,843 147,843 397,429 88,577 88,577 338,683
20 208,318 158,456 158,456 408,017 92,245 92,245 342,381
25 300,684 216,618 216,618 466,033 102,924 102,924 353,297
30 418,569 283,637 283,637 532,898 90,953 90,953 341,849
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates and front-end Sales
loads.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and 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.
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>
STATEMENT OF ADDITIONAL INFORMATION 19
- --------------------------------------------------------------------------------
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% (11.02% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS --------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% 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 5,770 5,770 255,733 4,498 4,498 254,554
2 12,915 12,047 12,047 261,965 9,375 9,375 259,399
3 19,861 18,920 18,920 268,787 14,666 14,666 264,654
4 27,154 26,472 26,472 276,279 20,409 20,409 270,357
5 34,812 34,788 34,788 284,528 26,637 26,637 276,543
6 42,853 43,945 43,945 293,612 33,396 33,396 283,255
7 51,296 54,040 54,040 303,625 40,717 40,717 290,527
8 60,161 65,306 65,306 314,799 48,774 48,774 298,531
9 69,469 77,722 77,722 327,116 57,490 57,490 307,189
10 79,242 91,404 91,404 340,687 66,906 66,906 316,545
11 89,504 106,562 106,562 355,716 77,083 77,083 326,655
12 100,279 123,252 123,252 372,272 88,080 88,080 337,580
13 111,593 141,626 141,626 390,499 99,971 99,971 349,394
14 123,473 161,860 161,860 410,570 112,836 112,836 362,173
15 135,947 184,150 184,150 432,681 126,754 126,754 375,999
16 149,044 208,620 208,620 456,960 141,803 141,803 390,950
17 162,796 235,575 235,575 483,698 158,064 158,064 407,105
18 177,236 265,300 265,300 513,181 175,614 175,614 424,542
19 192,398 298,068 298,068 545,683 194,530 194,530 443,340
20 208,318 334,191 334,191 581,513 214,902 214,902 463,584
25 300,684 578,970 578,970 857,154 342,730 342,730 590,617
30 418,569 975,548 975,548 1,314,287 525,711 525,711 772,537
- -------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates and front-end Sales
loads.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and 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.
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>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Hartford Life Insurance Company ICMG Registered Variable Life
Separate Account A OmniSource and to the Owners of Units of Interest therein:
We have audited the accompanying statements of assets and liabilities of
Hartford Life Insurance Company ICMG Registered Variable Life Separate Account A
OmniSource (Hartford Bond, Hartford Capital Appreciation, Hartford Money Market,
Neuberger Berman AMT Partners, Neuberger Berman AMT Balanced, Neuberger Berman
AMT Limited Maturity Bond, Fidelity VIP Fund Equity-Income, Fidelity VIP Fund
High Income, Fidelity VIP Fund Overseas, Fidelity VIP Fund II Asset Manager,
Alger American Small Capitalization, Alger American Growth, J.P. Morgan Bond,
J.P. Morgan U.S. Disciplined Equity, J.P. Morgan Small Company, J.P. Morgan
International Opportunities, MSDW Universal Funds Fixed Income, MSDW Universal
Funds High Yield, MSDW Universal Funds Equity Growth, MSDW Universal Funds
Value, MSDW Universal Funds Global Equity, MSDW Universal Funds Emerging Markets
Equity, BT Equity 500 Index, BT Small Cap Index, and BT EAFE Equity Index
Investment Divisions) (collectively, the Account) as of December 31, 1999, and
the related statements of operations and the statements of changes in net assets
for the period from inception, September 8, 1999 to December 31, 1999. These
financial statements are the responsibility of the Account's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Account as of December 31,
1999, and the results of its operations and the changes in its net assets for
the period from inception, September 8, 1999 to December 31, 1999 in conformity
with generally accepted accounting principles.
Hartford, Connecticut
February 24, 2000 ARTHUR ANDERSEN LLP
SA-1
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Assets & Liabilities
- --------------------------------------------------------------------------------
<TABLE>
December 31, 1999 Hartford Hartford Hartford Neuberger Neuberger
Bond Capital Money Berman Berman
Investment Appreciation Market AMT AMT
Division Investment Investment Partners Balanced
Division Division Investment Investment
Division Division
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS IN THE HARTFORD HLS
MUTUAL FUNDS:
------------------------------------------------------------------------------------------------
HARTFORD BOND HLS FUND, INC. -
CLASS IA
Shares 55,884
Cost $58,423
...............................................................................................
Market Value: $55,541 $ -- $ -- $ -- $ --
------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS
FUND, INC. - CLASS IA
Shares 7,509
Cost $38,610
...............................................................................................
Market Value: -- 45,771 -- -- --
------------------------------------------------------------------------------------------------
HARTFORD MONEY MARKET HLS
FUND, INC - CLASS IA
Shares 10,142
Cost $10,142
...............................................................................................
Market Value: -- -- 10,142 -- --
------------------------------------------------------------------------------------------------
INVESTMENTS IN NEUBERGER BERMAN
ADVISERS MANAGEMENT TRUST:
------------------------------------------------------------------------------------------------
PARTNERS PORTFOLIO
Shares 520
Cost $9,980
...............................................................................................
Market Value: -- -- -- 10,219 --
------------------------------------------------------------------------------------------------
BALANCED PORTFOLIO
Shares 10,956
Cost $178,458
...............................................................................................
Market Value: -- -- -- -- 228,870
------------------------------------------------------------------------------------------------
Receivable from Hartford Life
Insurance Company -- -- -- -- --
...............................................................................................
Receivable from fund shares sold -- 4 -- -- --
...............................................................................................
TOTAL ASSETS 55,541 45,775 10,142 10,219 228,870
...............................................................................................
LIABILITIES
Payable to Hartford Life
Insurance Company -- -- 2 3 7
...............................................................................................
Payable for fund shares purchased 5 -- -- --
...............................................................................................
TOTAL LIABILITIES 5 -- 2 3 7
------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $55,536 $45,775 $10,140 $10,216 $228,863
------------------------------------------------------------------------------------------------
VARIABLE LIFE INSURANCE POLICIES
Units owned by participants 4,575 2,538 -- -- 15,805
Unit price $ 9.94 $ 13.37 $ 10.35 $ 10.54 $ 13.66
...............................................................................................
Units owned by Hartford Life
Insurance Company 1,010 886 980 969 948
Unit price $ 9.94 $ 13.37 $ 10.35 $ 10.54 $ 13.66
------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-2
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Assets & Liabilities (continued)
- --------------------------------------------------------------------------------
<TABLE>
December 31, 1999 Neuberger Fidelity Fidelity Fidelity Fidelity
Berman AMT VIP Fund VIP Fund VIP Fund VIP Fund II
Limited Equity-Income High Overseas Asset
Maturity Investment Income Investment Manager
Bond Division Investment Division Investment
Investment Division Division
Division
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS IN NEUBERGER BERMAN
ADVISERS MANAGEMENT TRUST:
---------------------------------------------------------------------------------------------------
LIMITED MATURITY BOND PORTFOLIO
Shares 761
Cost $9,980
..................................................................................................
Market Value: $10,071 $ -- $ -- $ -- $ --
---------------------------------------------------------------------------------------------------
INVESTMENTS IN FIDELITY VARIABLE
INSURANCE PRODUCTS FUNDS:
---------------------------------------------------------------------------------------------------
EQUITY-INCOME PORTFOLIO
Shares 1,460
Cost $37,677
..................................................................................................
Market Value: -- 37,539 -- -- --
---------------------------------------------------------------------------------------------------
HIGH INCOME PORTFOLIO
Shares 5,023
Cost $55,302
..................................................................................................
Market Value: -- -- 56,809 -- --
---------------------------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
Shares 452
Cost $9,984
..................................................................................................
Market Value: -- -- -- 12,402 --
---------------------------------------------------------------------------------------------------
INVESTMENTS IN FIDELITY VARIABLE
INSURANCE PRODUCTS FUNDS II:
---------------------------------------------------------------------------------------------------
ASSET MANAGER PORTFOLIO
Shares 12,265
Cost $214,419
..................................................................................................
Market Value: -- -- -- -- 228,980
---------------------------------------------------------------------------------------------------
Receivable from Hartford Life
Insurance Company -- -- -- -- --
..................................................................................................
Receivable from fund shares sold -- -- -- -- --
..................................................................................................
TOTAL ASSETS 10,071 37,539 56,809 12,402 228,980
..................................................................................................
LIABILITIES
Payable to Hartford Life
Insurance Company 4 69 24 2 78
..................................................................................................
Payable for fund shares purchased -- -- -- -- --
..................................................................................................
TOTAL LIABILITIES 4 69 24 2 78
---------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $10,067 $37,470 $56,785 $12,400 $228,902
---------------------------------------------------------------------------------------------------
VARIABLE LIFE INSURANCE POLICIES
Units owned by participants -- 2,658 4,418 -- 20,065
Unit price $ 10.14 $ 10.40 $ 10.53 $ 14.33 $ 10.88
..................................................................................................
Units owned by Hartford Life
Insurance Company 993 945 973 865 976
Unit price $ 10.14 $ 10.40 $ 10.53 $ 14.33 $ 10.88
---------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-3
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Assets & Liabilities (continued)
- --------------------------------------------------------------------------------
<TABLE>
December 31, 1999 Alger Alger J.P. J.P. Morgan J.P.
American American Morgan U.S. Morgan
Small Growth Bond Disciplined Small
Capitalization Investment Investment Equity Company
Investment Division Division Investment Investment
Division Division Division
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS IN THE ALGER AMERICAN
FUNDS:
------------------------------------------------------------------------------------------------
ALGER AMERICAN SMALL
CAPITALIZATION PORTFOLIO
Shares 240
Cost $9,980
...............................................................................................
Market Value: $13,218 $ -- $ -- $ -- $ --
------------------------------------------------------------------------------------------------
ALGER AMERICAN GROWTH PORTFOLIO
Shares 396
Cost $21,536
...............................................................................................
Market Value: -- 25,495 -- -- --
------------------------------------------------------------------------------------------------
INVESTMENTS IN THE J.P. MORGAN
SERIES TRUST II:
------------------------------------------------------------------------------------------------
J.P. MORGAN BOND PORTFOLIO
Shares 898
Cost $10,171
...............................................................................................
Market Value: -- -- 10,099 -- --
------------------------------------------------------------------------------------------------
J.P. MORGAN EQUITY PORTFOLIO
Shares 1,680
Cost $29,159
...............................................................................................
Market Value: -- -- -- 29,146 --
------------------------------------------------------------------------------------------------
J.P. MORGAN SMALL COMPANY
PORTFOLIO
Shares 800
Cost $10,275
...............................................................................................
Market Value: -- -- -- -- 13,388
------------------------------------------------------------------------------------------------
Receivable from Hartford Life
Insurance Company 5 4 -- -- --
...............................................................................................
Receivable from fund shares sold -- -- -- -- --
...............................................................................................
TOTAL ASSETS 13,223 25,499 10,099 29,146 13,388
...............................................................................................
LIABILITIES
Payable to Hartford Life
Insurance Company -- -- 16 60 25
...............................................................................................
Payable for fund shares purchased -- -- -- -- --
...............................................................................................
TOTAL LIABILITIES -- -- 16 60 25
------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $13,223 $25,499 $10,083 $ 29,086 $13,363
------------------------------------------------------------------------------------------------
VARIABLE LIFE INSURANCE POLICIES
Units owned by participants -- 1,099 -- 1,598 --
Unit price $ 14.31 $ 12.44 $ 9.96 $ 11.57 $ 15.36
...............................................................................................
Units owned by Hartford Life
Insurance Company 924 950 1,012 917 870
Unit price $ 14.31 $ 12.44 $ 9.96 $ 11.57 $ 15.36
------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-4
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Assets & Liabilities (continued)
- --------------------------------------------------------------------------------
<TABLE>
December 31, 1999 J.P. Morgan MSDW MSDW MSDW MSDW
International Universal Universal Universal Universal
Opportunities Funds Fixed Funds Funds Funds
Investment Income High Equity Value
Division Investment Yield Growth Investment
Division Investment Investment Division
Division Division
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS IN J.P. MORGAN
SERIES TRUST II:
-------------------------------------------------------------------------------------------------
J.P. MORGAN INTERNATIONAL
OPPORTUNITIES PORTFOLIO
Shares 2,261
Cost $27,820
................................................................................................
Market Value: $31,267 $ -- $ -- $ -- $ --
-------------------------------------------------------------------------------------------------
INVESTMENTS IN THE MORGAN STANLEY
DEAN WITTER UNIVERSAL
FUNDS, INC.:
-------------------------------------------------------------------------------------------------
FIXED INCOME PORTFOLIO
Shares 4,531
Cost $47,430
................................................................................................
Market Value: -- 45,538 -- -- --
-------------------------------------------------------------------------------------------------
HIGH YIELD PORTFOLIO
Shares 1,017
Cost $10,790
................................................................................................
Market Value: -- -- 10,416 -- --
-------------------------------------------------------------------------------------------------
EQUITY GROWTH PORTFOLIO
Shares 585
Cost $10,385
................................................................................................
Market Value: -- -- -- 11,886 --
-------------------------------------------------------------------------------------------------
VALUE PORTFOLIO
Shares 887
Cost $10,115
................................................................................................
Market Value: -- -- -- -- 9,542
-------------------------------------------------------------------------------------------------
Receivable from Hartford Life
Insurance Company -- -- -- -- --
................................................................................................
Receivable from fund shares sold -- -- -- -- --
................................................................................................
TOTAL ASSETS 31,267 45,538 10,416 11,886 9,542
................................................................................................
LIABILITIES
Payable to Hartford Life
Insurance Company 51 79 24 20 21
................................................................................................
Payable for fund shares purchased -- -- -- -- --
................................................................................................
TOTAL LIABILITIES 51 79 24 20 21
-------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $31,216 $45,459 $10,392 $11,866 $9,521
-------------------------------------------------------------------------------------------------
VARIABLE LIFE INSURANCE POLICIES
Units owned by participants 1,268 3,579 -- -- --
Unit price $ 13.76 $ 9.89 $ 10.57 $ 13.27 9.85
................................................................................................
Units owned by Hartford Life
Insurance Company 1,000 1,019 983 894 967
Unit price $ 13.76 $ 9.89 $ 10.57 $ 13.27 $ 9.85
-------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-5
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Assets & Liabilities (continued)
- --------------------------------------------------------------------------------
<TABLE>
December 31, 1999 MSDW MSDW BT Equity BT Small BT EAFE
Universal Universal 500 Index Cap Index Equity
Funds Funds Investment Investment Index
Global Equity Emerging Division Division Investment
Investment Markets Division
Division Equity
Investment
Division
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS IN THE MORGAN STANLEY
DEAN WITTER UNIVERSAL
FUNDS, INC.:
---------------------------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
Shares 3,012
Cost $40,417
..................................................................................................
Market Value: $38,798 $ -- $ -- $ -- $ --
---------------------------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Shares 2,229
Cost $21,272
..................................................................................................
Market Value: -- 31,004 -- -- --
---------------------------------------------------------------------------------------------------
INVESTMENTS IN BT INSURANCE FUNDS
TRUST:
---------------------------------------------------------------------------------------------------
EQUITY 500 INDEX FUND
Shares 1,469
Cost $20,507
..................................................................................................
Market Value: -- -- 22,299 -- --
---------------------------------------------------------------------------------------------------
SMALL CAP INDEX FUND
Shares 996
Cost $10,439
..................................................................................................
Market Value: -- -- -- 11,568 --
---------------------------------------------------------------------------------------------------
EAFE EQUITY INDEX FUND
Shares 858
Cost $10,532
..................................................................................................
Market Value: -- -- -- -- 11,664
---------------------------------------------------------------------------------------------------
Receivable from Hartford Life
Insurance Company -- -- -- -- --
..................................................................................................
Receivable from fund shares sold -- -- -- -- --
..................................................................................................
TOTAL ASSETS 38,798 31,004 22,299 11,568 11,664
..................................................................................................
LIABILITIES
Payable to Hartford Life
Insurance Company 71 212 44 26 23
..................................................................................................
Payable for fund shares purchased -- -- -- -- --
..................................................................................................
TOTAL LIABILITIES 71 212 44 26 23
---------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $38,727 $30,792 $22,255 $11,542 $11,641
---------------------------------------------------------------------------------------------------
VARIABLE LIFE INSURANCE POLICIES
Units owned by participants 2,656 865 982 -- --
Unit price $ 10.83 $ 18.91 $ 11.53 $ 12.68 $ 13.01
..................................................................................................
Units owned by Hartford Life
Insurance Company 919 763 948 910 895
Unit price $ 10.83 $ 18.91 $ 11.53 $ 12.68 $ 13.01
---------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-6
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Operations
- --------------------------------------------------------------------------------
<TABLE>
For the Period From Inception, Hartford Hartford Hartford Neuberger Neuberger
September 8, 1999 to Bond Capital Money Berman Berman
December 31, 1999 Investment Appreciation Market AMT AMT
Division Investment Investment Partners Balanced
Division Division Investment Investment
Division Division
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 3,012 $ 138 $163 $ -- $ --
...............................................................................................
EXPENSES:
Mortality and expense risk
undertakings (103) (76) (21) (20) (363)
...............................................................................................
Net investment income (loss) 2,909 62 142 (20) (363)
...............................................................................................
CAPITAL GAINS INCOME -- 63 -- -- --
...............................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
...............................................................................................
Net realized gain on security
transactions -- 3 -- -- 34
...............................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (2,882) 7,161 -- 236 50,412
...............................................................................................
Net (loss) gain on investments (2,882) 7,164 -- 236 50,446
------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 27 $7,289 $142 $216 $50,083
------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-7
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Operations (continued)
- --------------------------------------------------------------------------------
<TABLE>
For the Period From Inception, Neuberger Fidelity Fidelity Fidelity Fidelity
September 8, 1999 to Berman AMT VIP VIP Fund VIP Fund VIP Fund II
December 31, 1999 Limited Fund High Overseas Asset
Maturity Equity-Income Income Investment Manager
Bond Investment Investment Division Investment
Investment Division Division Division
Division
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ -- $ -- $ -- $ -- $ --
............................................................................................
EXPENSES:
Mortality and expense risk
undertakings (21) (70) (103) (22) (409)
............................................................................................
Net investment (loss) (21) (70) (103) (22) (409)
............................................................................................
CAPITAL GAINS INCOME -- -- -- -- --
............................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
............................................................................................
Net realized gain on security
transactions -- -- -- 1 7
............................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 91 (139) 1,507 2,418 14,561
............................................................................................
Net gain (loss) on investments 91 (139) 1,507 2,419 14,568
---------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $ 70 $(209) $1,404 $2,397 $14,159
---------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-8
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Operations (continued)
- --------------------------------------------------------------------------------
<TABLE>
For the Period From Inception, Alger Alger J.P. J.P. J.P.
September 8, 1999 to American American Morgan Morgan Morgan
December 31, 1999 Small Growth Bond U.S. Small
Capitalization Investment Investment Disciplined Company
Investment Division Division Equity Investment
Division Investment Division
Division
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ -- $ -- $171 $ 75 $ 2
.............................................................................................
EXPENSES:
Mortality and expense risk
undertakings (22) (44) (20) (52) (22)
.............................................................................................
Net investment (loss) income (22) (44) 151 23 (20)
.............................................................................................
CAPITAL GAINS INCOME -- -- -- 1,789 273
.............................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
.............................................................................................
Net realized gain on security
transactions 3 3 -- -- --
.............................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 3,238 3,959 (72) (14) 3,114
.............................................................................................
Net gain (loss) on investments 3,241 3,962 (72) (14) 3,114
----------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $3,219 $3,918 $ 79 $1,798 $3,367
----------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-9
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Operations (continued)
- --------------------------------------------------------------------------------
<TABLE>
For the Period From Inception, J.P. Morgan MSDW MSDW MSDW MSDW
September 8, 1999 to International Universal Universal Universal Universal
December 31, 1999 Opportunities Funds Funds Funds Funds
Investment Fixed High Equity Value
Division Income Yield Growth Investment
Investment Investment Investment Division
Division Division Division
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 138 $ 2,064 $ 790 $ -- $ 115
...............................................................................................
EXPENSES:
Mortality and expense risk
undertakings (53) (85) (21) (21) (19)
...............................................................................................
Net investment income (loss) 85 1,979 769 (21) 96
...............................................................................................
CAPITAL GAINS INCOME 871 -- -- 385 --
...............................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
...............................................................................................
Net realized gain (loss) on
security transactions -- -- -- -- --
...............................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 3,447 (1,892) (374) 1,501 (573)
...............................................................................................
Net gain (loss) on investments 3,447 (1,892) (374) 1,501 (573)
------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $4,403 $ 87 $ 395 $1,865 $(477)
------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-10
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Operations (continued)
- --------------------------------------------------------------------------------
<TABLE>
For the Period From Inception, MSDW MSDW BT Equity BT Small BT EAFE
September 8, 1999 to Universal Universal 500 Index Cap Index Equity
December 31, 1999 Funds Funds Investment Investment Index
Global Equity Emerging Division Division Investment
Investment Markets Division
Division Equity
Investment
Division
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 442 $ -- $ 142 $ 114 $ 185
..................................................................................................
EXPENSES:
Mortality and expense risk
undertakings (71) (46) (40) (21) (21)
..................................................................................................
Net investment income (loss) 371 (46) 102 93 164
..................................................................................................
CAPITAL GAINS INCOME 1,604 -- 67 325 346
..................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
..................................................................................................
Net realized gain (loss) on
security transactions -- -- -- -- --
..................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (1,620) 9,577 1,792 1,129 1,133
..................................................................................................
Net (loss) gain on investments (1,620) 9,577 1,792 1,129 1,133
---------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 355 $9,531 $1,961 $1,547 $1,643
---------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-11
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
For the Period From Inception, Hartford Hartford Hartford Neuberger Neuberger
September 8, 1999 to Bond Capital Money Berman Berman
December 31, 1999 Investment Appreciation Market AMT AMT
Division Investment Investment Partners Balanced
Division Division Investment Investment
Division Division
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 2,909 $ 62 $ 142 $ (20) $ (363)
...............................................................................................
Capital gains income -- 63 -- -- --
...............................................................................................
Net realized gain on security
transactions -- 3 -- -- 34
...............................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (2,882) 7,161 -- 236 50,412
...............................................................................................
Net increase in net assets
resulting from operations 27 7,289 142 216 50,083
...............................................................................................
UNIT TRANSACTIONS:
Purchases 55,390 38,482 10,000 10,000 170,421
...............................................................................................
Cost of insurance and other fees -- -- -- -- --
...............................................................................................
Other activity 119 4 (2) -- 8,359
...............................................................................................
Net increase in net assets
resulting from unit
transactions 55,509 38,486 9,998 10,000 178,780
...............................................................................................
Net increase in net assets 55,536 45,775 10,140 10,216 228,863
...............................................................................................
NET ASSETS:
Beginning of period -- -- -- -- --
------------------------------------------------------------------------------------------------
END OF PERIOD $55,536 $45,775 $10,140 $10,216 $228,863
------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-12
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------
<TABLE>
For the Period From Inception, Neuberger Fidelity Fidelity Fidelity Fidelity
September 8, 1999 to Berman AMT VIP Fund VIP Fund VIP Fund VIP Fund II
December 31, 1999 Limited Equity-Income High Overseas Asset
Maturity Investment Income Investment Manager
Bond Division Investment Division Investment
Investment Division Division
Division
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment (loss) $ (21) $ (70) $ (103) $ (22) $ (409)
.................................................................................................
Capital gains income -- -- -- -- --
.................................................................................................
Net realized gain on security
transactions -- -- -- 1 7
.................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 91 (139) 1,507 2,418 14,561
.................................................................................................
Net increase (decrease) in net
assets resulting from
operations 70 (209) 1,404 2,397 14,159
.................................................................................................
UNIT TRANSACTIONS:
Purchases 10,000 37,529 55,390 10,000 211,340
.................................................................................................
Cost of insurance and other fees -- -- -- -- --
.................................................................................................
Other activity (3) 150 (9) 3 3,403
.................................................................................................
Net increase in net assets
resulting from unit
transactions 9,997 37,679 55,381 10,003 214,743
.................................................................................................
Net increase in net assets 10,067 37,470 56,785 12,400 228,902
.................................................................................................
NET ASSETS:
Beginning of period -- -- -- -- --
--------------------------------------------------------------------------------------------------
END OF PERIOD $10,067 $37,470 $56,785 $12,400 $228,902
--------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-13
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------
<TABLE>
For the Period From Inception, Alger Alger J.P. J.P. J.P.
September 8, 1999 to American American Morgan Morgan Morgan
December 31, 1999 Small Growth Bond U.S. Small
Capitalization Investment Investment Disciplined Company
Investment Division Division Equity Investment
Division Investment Division
Division
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment (loss) income $ (22) $ (44) $ 151 $ 23 $ (20)
.............................................................................................
Capital gains income -- -- -- 1,789 273
.............................................................................................
Net realized gain on security
transactions 3 3 -- -- --
.............................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 3,238 3,959 (72) (14) 3,114
.............................................................................................
Net increase in net assets
resulting from operations 3,219 3,918 79 1,798 3,367
.............................................................................................
UNIT TRANSACTIONS:
Purchases 10,000 21,393 10,000 27,089 10,000
.............................................................................................
Cost of insurance and other fees -- -- -- -- --
.............................................................................................
Other activity 4 188 4 199 (4)
.............................................................................................
Net increase in net assets
resulting from unit
transactions 10,004 21,581 10,004 27,288 9,996
.............................................................................................
Net increase in net assets 13,223 25,499 10,083 29,086 13,363
.............................................................................................
NET ASSETS:
Beginning of period -- -- -- -- --
----------------------------------------------------------------------------------------------
END OF PERIOD $13,223 $25,499 $10,083 $29,086 $13,363
----------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-14
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------
<TABLE>
For the Period From Inception, J.P. Morgan MSDW MSDW MSDW MSDW
September 8, 1999 to International Universal Universal Universal Universal
December 31, 1999 Opportunities Funds Funds Funds Funds
Investment Fixed High Equity Value
Division Income Yield Growth Investment
Investment Investment Investment Division
Division Division Division
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 85 $ 1,979 $ 769 $ (21) $ 96
...............................................................................................
Capital gains income 871 -- -- 385 --
...............................................................................................
Net realized gain (loss) on
security transactions -- -- -- -- --
...............................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 3,447 (1,892) (374) 1,501 (573)
...............................................................................................
Net increase (decrease) in net
assets resulting from
operations 4,403 87 395 1,865 (477)
...............................................................................................
UNIT TRANSACTIONS:
Purchases 27,089 45,304 10,000 10,000 10,000
...............................................................................................
Cost of insurance and other fees -- -- -- -- --
...............................................................................................
Other activity (276) 68 (3) 1 (2)
...............................................................................................
Net increase in net assets
resulting from unit
transactions 26,813 45,372 9,997 10,001 9,998
...............................................................................................
Net increase in net assets 31,216 45,459 10,392 11,866 9,521
NET ASSETS:
Beginning of period -- -- -- -- --
------------------------------------------------------------------------------------------------
END OF PERIOD $31,216 $45,459 $10,392 $11,866 $ 9,521
------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-15
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Statements of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------
<TABLE>
For the Period From Inception, MSDW MSDW BT Equity BT Small BT EAFE
September 8, 1999 to Universal Universal 500 Index Cap Index Equity
December 31, 1999 Funds Funds Investment Investment Index
Global Equity Emerging Division Division Investment
Investment Markets Division
Division Equity
Investment
Division
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 371 $ (46) $ 102 $ 93 $ 164
..................................................................................................
Capital gains income 1,604 -- 67 325 346
..................................................................................................
Net realized gain (loss) on
security transactions -- -- -- -- --
..................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (1,620) 9,577 1,792 1,129 1,133
..................................................................................................
Net increase in net assets
resulting from operations 355 9,531 1,961 1,547 1,643
..................................................................................................
UNIT TRANSACTIONS:
Purchases 38,482 21,393 20,167 10,000 10,000
..................................................................................................
Cost of insurance and other fees -- -- -- -- --
..................................................................................................
Other activity (110) (132) 127 (5) (2)
..................................................................................................
Net increase in net assets
resulting from unit
transactions 38,372 21,261 20,294 9,995 9,998
..................................................................................................
Net increase in net assets 38,727 30,792 22,255 11,542 11,641
..................................................................................................
NET ASSETS:
Beginning of period -- -- -- -- --
---------------------------------------------------------------------------------------------------
END OF PERIOD $38,727 $30,792 $22,255 $11,542 $11,641
---------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-16
<PAGE>
ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A -- HARTFORD LIFE INSURANCE
COMPANY
OMNISOURCE
Notes to Financial Statements
December 31, 1999
1. ORGANIZATION:
ICMG Registered Variable Life Separate Account A, OmniSource (the Account), is a
component of ICMG Registered Variable Life Separate Account A, a separate
investment account within Hartford Life Insurance Company (the Company) and is
registered with the Securities and Exchange Commission (SEC) as a unit
investment trust under the Investment Company Act of 1940, as amended. The
Account consists of twenty-five Divisions. Both the Company and the Account are
subject to supervision and regulation by the Department of Insurance of the
State of Connecticut and the SEC. The Account invests deposits by variable life
insurance policyowners of the Company in various mutual funds (the Funds), as
directed by the policyowners.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the Account,
which are in accordance with generally accepted accounting principles in the
investment company industry:
A) SECURITY TRANSACTIONS -- Security transactions are recorded on the trade date
(date the order to buy or sell is executed). Realized gains and losses on the
sales of securities are computed on the basis of identified cost of the fund
shares. Dividend income is accrued as of the ex-dividend date. Capital gains
income represents those dividends from the Funds which are characterized as
capital gains under tax regulations.
B) SECURITY VALUATION -- The investments in shares of the Funds are valued at
the closing net asset value per share as determined by the appropriate Fund as
of December 31, 1999.
C) UNIT TRANSACTIONS -- Unit transactions are executed based on the unit values
calculated at the close of the business day.
D) FEDERAL INCOME TAXES -- The operations of the Account form a part of, and are
taxed with, the total operations of the Company, which is taxed as an insurance
company under the Internal Revenue Code. Under current law, no Federal income
taxes are payable with respect to the operations of the Account.
E) USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the financial statements and the reported amounts
of income and expenses during the period. Operating results in the future could
vary from the amounts derived from management's estimates.
3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES:
A) COST OF INSURANCE -- In accordance with the terms of the policies, the
Company assesses cost of insurance charges to cover the Company's anticipated
mortality costs. Because a policy's account value and death benefit may vary
from month to month, the cost of insurance charges may also vary. These charges
are reflected as a component of unit transactions on the accompanying statement
of changes in net assets.
B) MORTALITY AND EXPENSE RISK UNDERTAKINGS -- The Company, as issuer of variable
life insurance policies, provides the mortality and expense undertakings and,
with respect to the Account, receives an annual fee of up to 0.65% of the
Account's average daily net assets. These charges are reflected as a component
of operation expenses on the accompanying statement of operations.
C) ADMINISTRATIVE AND ISSUE CHARGES -- The Company assesses a monthly
administrative charge to compensate the Company for administrative costs in
connection with the policies. This charge covers the average expected cost for
these services at a maximum of $10 per month. These charges are reflected as a
component of cost of insurance and other fees on the accompanying statement of
changes in net assets.
D) DEDUCTION OF OTHER FEES -- In accordance with the terms of the policies, the
Company makes deductions for state premium taxes and other insurance charges.
These charges are deducted through termination of units of interest from
applicable policyowners' accounts and are reflected as a component of cost of
insurance and other fees on the accompanying statements of changes in net
assets.
SA-17
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
----------------------------------------------------
To Hartford Life Insurance Company:
We have audited the accompanying Consolidated Balance Sheets of Hartford Life
Insurance Company and subsidiaries as of December 31, 1999 and 1998, and the
related Consolidated Statements of Income, Changes in Stockholder's Equity and
Cash Flows for each of the three years in the period ended December 31, 1999.
These Consolidated Financial Statements and the schedules referred to below are
the responsibility of Hartford Life Insurance Company's management. Our
responsibility is to express an opinion on these financial statements and
schedules based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the Consolidated Financial Statements referred to above present
fairly, in all material respects, the financial position of Hartford Life
Insurance Company and subsidiaries as of December 31, 1999 and 1998, and the
results of their operations and their cash flows for each of the three years in
the period ended December 31, 1999 in conformity with accounting principles
generally accepted in the United States.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The schedules listed in the Index to
Consolidated Financial Statements and Schedules are presented for the purpose of
complying with the Securities and Exchange Commission's rules and are not part
of the basic financial statements. These schedules have been subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, fairly state in all material respects the financial data
required to be set forth therein in relation to the basic financial statements
taken as a whole.
Hartford, Connecticut
January 31, 2000 ARTHUR ANDERSEN LLP
F-1
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
<CAPTION>
1999 1998 1997
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
(in millions)
REVENUES
Premiums and other considerations $2,045 $2,218 $1,637
Net investment income 1,359 1,759 1,368
Net realized capital gains (losses) (4) (2) 4
- ----------------------------------------------------------------------------------------------
TOTAL REVENUES 3,400 3,975 3,009
- ----------------------------------------------------------------------------------------------
BENEFITS, CLAIMS AND EXPENSES
Benefits, claims and claim adjustment expenses 1,574 1,911 1,379
Amortization of deferred policy acquisition costs 539 431 335
Dividends to policyholders 104 329 240
Other expenses 631 766 586
- ----------------------------------------------------------------------------------------------
TOTAL BENEFITS, CLAIMS AND EXPENSES 2,848 3,437 2,540
- ----------------------------------------------------------------------------------------------
Income before income tax expense 552 538 469
Income tax expense 191 188 167
- ----------------------------------------------------------------------------------------------
NET INCOME $ 361 $ 350 $ 302
- ----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
F-2
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
AS OF DECEMBER 31,
<S> <C> <C>
- ------------------------------------------------------------------------------------------
1999 1998
- ------------------------------------------------------------------------------------------
(in millions, except
for share data)
ASSETS
Investments
Fixed maturities, available for sale, at fair value
(amortized cost of $13,923 and $14,505) $ 13,499 $ 14,818
Equity securities, at fair value 56 31
Policy loans, at outstanding balance 4,187 6,684
Other investments 342 264
- ------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 18,084 21,797
- ------------------------------------------------------------------------------------------
Cash 55 17
Premiums receivable and agents' balances 29 17
Reinsurance recoverables 1,274 1,257
Deferred policy acquisition costs 4,013 3,754
Deferred income tax 459 464
Other assets 654 695
Separate account assets 110,397 90,262
- ------------------------------------------------------------------------------------------
TOTAL ASSETS $134,965 $118,263
- ------------------------------------------------------------------------------------------
LIABILITIES
Future policy benefits $ 4,332 $ 3,595
Other policyholder funds 16,004 19,615
Other liabilities 1,613 2,094
Separate account liabilities 110,397 90,262
- ------------------------------------------------------------------------------------------
TOTAL LIABILITIES 132,346 115,566
- ------------------------------------------------------------------------------------------
STOCKHOLDER'S EQUITY
Common stock -- 1,000 shares authorized, issued and
outstanding, par value $5,690 6 6
Capital surplus 1,045 1,045
Accumulated other comprehensive income (loss)
Net unrealized capital gains (losses) on securities, net
of tax (255) 184
- ------------------------------------------------------------------------------------------
TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (255) 184
- ------------------------------------------------------------------------------------------
Retained earnings 1,823 1,462
- ------------------------------------------------------------------------------------------
TOTAL STOCKHOLDER'S EQUITY 2,619 2,697
- ------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $134,965 $118,263
- ------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
F-3
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
<TABLE>
<CAPTION>
Accumulated Other
Comprehensive
Income (Loss)
-----------------
<S> <C> <C> <C> <C> <C>
Net Unrealized
Capital Gains
(Losses) on Total
Common Capital Securities, Retained Stockholder's
Stock Surplus Net of Tax Earnings Equity
- -------------------------------------------------------------------------------------------------------------
(in millions)
1999
Balance, December 31, 1998 $6 $1,045 $ 184 $1,462 $2,697
Comprehensive income
Net income -- -- -- 361 361
Other comprehensive income (loss), net of
tax (1):
Changes in net unrealized capital gains
(losses) on securities (2) -- -- (439) -- (439)
Total other comprehensive income (loss) (439)
Total comprehensive income (loss) (78)
- -------------------------------------------------------------------------------------------------------------
BALANCE, DECEMBER 31, 1999 $6 $1,045 $(255) $1,823 $2,619
- -------------------------------------------------------------------------------------------------------------
1998
Balance, December 31, 1997 $6 $1,045 $ 179 $1,113 $2,343
Comprehensive income
Net income -- -- -- 350 350
Other comprehensive income, net of tax
(1):
Changes in net unrealized capital gains
on securities (2) -- -- 5 -- 5
Total other comprehensive income 5
Total comprehensive income 355
Dividends (1) (1)
- -------------------------------------------------------------------------------------------------------------
BALANCE, DECEMBER 31, 1998 $6 $1,045 $ 184 $1,462 $2,697
- -------------------------------------------------------------------------------------------------------------
1997
Balance, December 31, 1996 $6 $1,045 $ 30 $ 811 $1,892
Comprehensive income
Net income -- -- -- 302 302
Other comprehensive income, net of tax
(1):
Changes in net unrealized capital gains
on securities (2) -- -- 149 -- 149
Total other comprehensive income 149
Total comprehensive income 451
- -------------------------------------------------------------------------------------------------------------
BALANCE, DECEMBER 31, 1997 $6 $1,045 $ 179 $1,113 $2,343
- -------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net unrealized capital gain (loss) on securities is reflected net of tax of
$(236), $3 and $80, for the years ended December 31, 1999, 1998 and 1997,
respectively.
(2) Net of reclassification adjustment for after-tax gains (losses) realized in
net income of $(2), $(1) and $2 for the years ended December 31, 1999, 1998
and 1997, respectively.
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
F-4
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
<CAPTION>
1999 1998 1997
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
(in millions)
OPERATING ACTIVITIES
Net income $ 361 $ 350 $ 302
Adjustments to reconcile net income to net cash provided
by operating activities
Depreciation and amortization (18) (23) 8
Net realized capital losses (gains) 4 2 (4)
Loss due to commutation of reinsurance 16 -- --
(Increase) decrease in premiums receivable and agents'
balances (18) 1 119
(Decrease) increase in other liabilities (263) (79) 223
Change in receivables, payables, and accruals 125 83 107
(Decrease) increase in accrued taxes (163) 60 126
Decrease (increase) in deferred income tax 241 (118) 40
Increase in deferred policy acquisition costs (358) (439) (555)
Increase in future policy benefits 797 536 585
Increase in reinsurance recoverables (318) (101) (31)
Other, net (81) 99 52
- --------------------------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 325 371 972
- --------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Purchases of investments (5,753) (6,061) (6,869)
Sales of investments 6,383 4,901 4,256
Maturity of investments 1,818 1,761 2,329
Purchases of affiliates and other (25) -- --
- --------------------------------------------------------------------------------------------
NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES 2,423 601 (284)
- --------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Net disbursements for investment and universal life-type
contracts charged against policyholder accounts (2,710) (1,009) (677)
- --------------------------------------------------------------------------------------------
Net cash used for financing activities (2,710) (1,009) (677)
- --------------------------------------------------------------------------------------------
Net increase (decrease) in cash 38 (37) 11
Cash -- beginning of year 17 54 43
- --------------------------------------------------------------------------------------------
Cash -- end of year $ 55 $ 17 $ 54
- --------------------------------------------------------------------------------------------
Supplemental Disclosure of Cash Flow Information:
Net Cash Paid During the Year for:
Income taxes $ 111 $ 263 $ 9
Noncash Investing Activities:
In 1999, the Company's parent, Hartford Life and Accident Insurance Company, recaptured an
in force block of individual life insurance previously ceded to the Company. This
commutation resulted in a reduction in the Company's assets of $666, consisting of $556
of invested assets, $99 of deferred policy acquisition costs and $11 of other assets.
Liabilities decreased $650, consisting of $543 of other policyholder funds, $60 of future
policy benefits and $47 of other liabilities. As a result, the Company recognized an
after-tax loss relating to this transaction of $16.
In 1998, due to the recapture of an in force block of business previously ceded to MBL
Life Assurance Co. of New Jersey, reinsurance recoverables of $4,753 were exchanged for
the fair value of assets comprised of $4,310 in policy loans and $443 in other net
assets.
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
F-5
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLAR AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA UNLESS OTHERWISE STATED)
-----------------------------------------------------------------------------
1. ORGANIZATION AND DESCRIPTION OF BUSINESS
These Consolidated Financial Statements include Hartford Life Insurance Company
and its wholly-owned subsidiaries ("Hartford Life Insurance Company" or the
"Company"), Hartford Life and Annuity Insurance Company (HLAI) and Hartford
International Life Reassurance Corporation (HLRe), formerly American Skandia
Life Reinsurance Corporation. The Company is a wholly-owned subsidiary of
Hartford Life and Accident Insurance Company (HLA), a wholly-owned subsidiary of
Hartford Life, Inc. (Hartford Life). Hartford Life is a direct subsidiary of
Hartford Accident and Indemnity Company (HA&I), an indirect subsidiary of The
Hartford Financial Services Group, Inc. (The Hartford). In November 1998,
Hartford Life Insurance Company transferred in the form of a dividend, Hartford
Financial Services, LLC and its subsidiaries to HLA.
Pursuant to an initial public offering (the "IPO") on May 22, 1997, Hartford
Life sold 26 million shares of Class A Common Stock at $28.25 per share and
received proceeds, net of offering expenses, of $687. Of the proceeds, $527 was
used to retire debt related to Hartford Life's outstanding promissory notes and
line of credit with the remaining $160 contributed by Hartford Life to its
insurance subsidiaries to support growth in its core businesses. Hartford Life
became a publicly traded company upon the sale of 26 million shares representing
approximately 18.6% of the equity ownership in Hartford Life.
Along with its parent, HLA, the Company is a leading financial services and
insurance company which provides (a) investment products such as individual
variable annuities and fixed market value adjusted annuities, mutual funds and
retirement plan services for savings and retirement needs; (b) life insurance
for income protection and estate planning; (c) employee benefits products such
as group life and disability insurance that is directly written by the Company
and is substantially ceded to its parent, HLA, and (d) corporate owned life
insurance.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) BASIS OF PRESENTATION
These Consolidated Financial Statements are prepared on the basis of accounting
principles generally accepted in the United States, which differ materially from
the statutory accounting practices prescribed by various insurance regulatory
authorities. All material intercompany transactions and balances between
Hartford Life Insurance Company and its subsidiaries have been eliminated.
The preparation of financial statements, in conformity with accounting
principles generally accepted in the United States, requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
The most significant estimates include those used in determining deferred policy
acquisition costs and the liability for future policy benefits and other
policyholder funds. Although some variability is inherent in these estimates,
management believes the amounts provided are adequate.
Certain reclassifications have been made to prior year financial information to
conform to the current year presentation.
(B) ADOPTION OF NEW ACCOUNTING STANDARDS
Effective January 1, 1999, Hartford Life Insurance Company adopted Statement of
Position (SOP) No. 98-1, "Accounting for the Costs of Computer Software
Developed or Obtained for Internal Use". This SOP provides guidance on
accounting for the costs of internal use software and in determining whether the
software is for internal use. The SOP defines internal use software as software
that is acquired, internally developed, or modified solely to meet internal
needs and identifies stages of software development and accounting for the
related costs incurred during the stages. Adoption of this SOP did not have a
material impact on the Company's financial condition or results of operations.
Effective January 1, 1999, Hartford Life Insurance Company adopted SOP
No. 97-3, "Accounting by Insurance and Other Enterprises for Insurance-Related
Assessments". This SOP addresses accounting by insurance and other enterprises
for assessments related to insurance activities, including recognition,
measurement and disclosure of guaranty fund or other assessments. Adoption of
this SOP did not have a material impact on the Company's financial condition or
results of operations.
The Company's cash flows were not impacted by these changes in accounting
principles.
(C) FUTURE ADOPTION OF NEW ACCOUNTING STANDARDS
In June 1999, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards (SFAS) No. 137, "Accounting for Derivative
Instruments and Hedging Activities - Deferral of the Effective Date of FASB
Statement No. 133". This statement amends SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities", to defer its effective date for
one year, to fiscal years beginning after June 15, 2000. Initial
F-6
<PAGE>
application for Hartford Life Insurance Company will begin January 1, 2001. SFAS
No. 133 establishes accounting and reporting guidance for derivative
instruments, including certain derivative instruments embedded in other
contracts. The standard requires, among other things, that all derivatives be
carried on the balance sheet at fair value. The standard also specifies hedge
accounting criteria under which a derivative can qualify for special accounting.
In order to receive special accounting, the derivative instrument must qualify
as either a hedge of the fair value or the variability of the cash flow of a
qualified asset or liability. Special accounting for qualifying hedges provides
for matching the timing of gain or loss recognition on the hedging instrument
with the recognition of the corresponding changes in value of the hedged item.
The Company has reviewed its derivative holdings and is in the process of
quantifying the impact of SFAS No. 133. The Company is also assessing what
actions, if any, need to be taken to minimize potential volatility, while at the
same time maintaining the economic protection needed to support the goals of its
business.
In October 1998, the American Institute of Certified Public Accountants (AICPA)
issued SOP No. 98-7, "Accounting for Insurance and Reinsurance Contracts That Do
Not Transfer Insurance Risk". This SOP provides guidance on the method of
accounting for insurance and reinsurance contracts that do not transfer
insurance risk, defined in the SOP as the deposit method. This SOP is effective
for financial statements for fiscal years beginning after June 15, 1999 and is
not expected to have a material impact on the Company's financial condition or
results of operations.
(D) REVENUE RECOGNITION
Revenues for investment products and universal life-type policies consist of
policy charges for policy administration, cost of insurance and surrender
charges assessed to policy account balances and are recognized in the period in
which services are provided. Premiums for traditional life insurance and
disability policies are recognized as revenues ratably over the policy period.
(E) DIVIDENDS TO POLICYHOLDERS
Certain life insurance policies contain dividend payment provisions that enable
the policyholder to participate in the earnings on that participating block of
business of the life insurance subsidiaries of the Company. The participating
insurance in force accounted for 34%, 35% and 33% in 1999, 1998 and 1997,
respectively, of total insurance in force.
(F) INVESTMENTS
Hartford Life Insurance Company's investments in both fixed maturities, which
include bonds, redeemable preferred stock and commercial paper, and equity
securities, which include common and non-redeemable preferred stocks, are
classified as "available for sale" in accordance with SFAS No. 115, "Accounting
for Certain Investments in Debt and Equity Securities". Accordingly, these
securities are carried at fair value with the after-tax difference from cost
reflected in stockholder's equity as a component of accumulated other
comprehensive income. Policy loans are carried at outstanding balance which
approximates fair value. Other invested assets consist primarily of partnership
investments, which are accounted for by the equity method, and mortgage loans,
whereby the carrying value approximates fair value. Realized capital gains and
losses on security transactions associated with the Company's immediate
participation guaranteed contracts are excluded from revenues and deferred over
the expected maturity of the securities, since under the terms of the contracts
the realized gains and losses will be credited to policyholders in future years
as they are entitled to receive them. Net realized capital gains and losses,
excluding those related to immediate participation guaranteed contracts, are
reported as a component of revenue and are determined on a specific
identification basis.
The Company's accounting policy for impairment requires recognition of an other
than temporary impairment charge on a security if it is determined that the
Company is unable to recover all amounts due under the contractual obligations
of the security. In addition, for securities expected to be sold, an other than
temporary impairment charge is recognized if the Company does not expect the
fair value of a security to recover to cost or amortized cost prior to the
expected date of sale. Once an impairment charge has been recorded, the Company
then continues to review the other than temporarily impaired securities for
additional impairment, if necessary.
(G) DERIVATIVE INSTRUMENTS
HEDGE ACCOUNTING -- Hartford Life Insurance Company uses a variety of derivative
instruments, including swaps, caps, floors, forwards and exchange traded
financial futures and options as part of an overall risk management strategy.
These instruments are used as a means of hedging exposure to price, foreign
currency and/or interest rate risk on planned investment purchases or existing
assets and liabilities. Hartford Life Insurance Company does not hold or issue
derivative instruments for trading purposes. Hartford Life Insurance Company's
accounting for derivative instruments used to manage risk is in accordance with
the concepts established in SFAS No. 80, "Accounting for Futures Contracts",
SFAS No. 52, "Foreign Currency Translation", AICPA SOP No. 86-2, "Accounting for
Options" and various Emerging Issues Task Force pronouncements. Written options
are used, in all cases in conjunction with other assets and derivatives, as part
of the Company's asset and liability management strategy. Derivative instruments
are carried at values consistent with the asset or liability being hedged.
Derivative instruments used to hedge fixed maturities or equity securities are
carried at fair value with the after-tax difference from cost reflected in
stockholder's equity. Derivative instruments used to hedge other invested assets
or liabilities are carried at cost. For a discussion of SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities", issued in June
1998, see (c) Future Adoption of New Accounting Standards.
Derivative instruments must be designated at inception as a hedge and measured
for effectiveness both at inception
F-7
<PAGE>
and on an ongoing basis. Hartford Life Insurance Company's correlation threshold
for hedge designation is 80% to 120%. If correlation, which is assessed monthly
or quarterly and measured based on a rolling three month average, falls outside
the 80% to 120% range, hedge accounting will be terminated. Derivative
instruments used to create a synthetic asset must meet synthetic accounting
criteria, including designation at inception and consistency of terms between
the synthetic and the instrument being replicated. Consistent with industry
practice, synthetic instruments are accounted for like the financial instrument
they are intended to replicate. Derivative instruments which fail to meet risk
management criteria, subsequent to acquisition, are marked to market with the
impact reflected in the Consolidated Statements of Income.
FUTURES -- Gains or losses on financial futures contracts entered into in
anticipation of the investment of future receipt of product cash flows are
deferred and, at the time of the ultimate investment purchase, reflected as an
adjustment to the cost basis of the purchased asset. Gains or losses on futures
used in invested asset risk management are deferred and adjusted into the cost
basis of the hedged asset when the contract futures are closed, except for
futures used in duration hedging, which are deferred and basis adjusted on a
quarterly basis. The basis adjustments are amortized into net investment income
over the remaining asset life.
FORWARD COMMITMENTS -- Open forward commitment contracts are marked to market
through stockholder's equity. Such contracts are accounted for at settlement by
recording the purchase of the specified securities at the previously committed
price. Gains or losses resulting from the termination of forward commitment
contracts are recognized immediately in the Consolidated Statements of Income as
a component of net investment income.
OPTIONS -- The cost of options entered into as part of a risk management
strategy are basis adjusted to the underlying asset or liability and amortized
over the remaining life of the option. Gains or losses on expiration or
termination are adjusted into the basis of the underlying asset or liability and
amortized over the remaining asset life.
INTEREST RATE SWAPS -- Interest rate swaps involve the periodic exchange of
payments without the exchange of underlying principal or notional amounts. Net
receipts or payments are accrued and recognized over the life of the swap
agreement as an adjustment to investment income. Should the swap be terminated,
the gain or loss is adjusted into the basis of the asset or liability and
amortized over the remaining life. Should the hedged asset be sold or liability
terminated without terminating the swap position, any swap gains or losses are
immediately recognized in earnings. Interest rate swaps purchased in
anticipation of an asset purchase (anticipatory transaction) are recognized
consistent with the underlying asset components such that the settlement
component is recognized in the Consolidated Statements of Income while the
change in market value is recognized as an unrealized capital gain or loss.
INTEREST RATE CAPS AND FLOORS -- Premiums paid on purchased cap or floor
agreements and the premium received on issued cap or floor agreements (used for
risk management) are adjusted into the basis of the applicable asset and
amortized over the asset life. Gains or losses on termination of such positions
are adjusted into the basis of the asset or liability and amortized over the
remaining asset life. Net payments are recognized as an adjustment to income or
basis adjusted and amortized depending on the specific hedge strategy.
FORWARD EXCHANGE AND CURRENCY SWAPS CONTRACTS -- Forward exchange contracts and
foreign currency swaps are accounted for in accordance with SFAS No. 52. Changes
in the spot rate of instruments designated as hedges of the net investment in a
foreign subsidiary are reflected in the cumulative translation adjustment
component of stockholder's equity.
Cash flows from futures, options and swaps, accounted for as hedges, are
included with the cash flows of the item being hedged.
(H) SEPARATE ACCOUNTS
Hartford Life Insurance Company maintains separate account assets and
liabilities which are reported at fair value. Separate account assets are
segregated from other investments. Separate accounts reflect two categories of
risk assumption: non-guaranteed separate accounts, wherein the policyholder
assumes substantially all the investment risk and rewards, and guaranteed
separate accounts, wherein the Company contractually guarantees either a minimum
return or account value to the policyholder.
(I) DEFERRED POLICY ACQUISITION COSTS
Policy acquisition costs, which include commissions and certain other expenses
associated with acquiring business, are deferred and amortized over the
estimated lives of the contracts, usually 20 years. Generally, acquisition costs
are deferred and amortized using the retrospective deposit method. Under the
retrospective deposit method, acquisition costs are amortized in proportion to
the present value of expected gross profits from surrender charges, investment
charges, mortality and expense margins. Actual gross profits can vary from
management's estimates, resulting in increases or decreases in the rate of
amortization. Management periodically updates these estimates, when appropriate,
and evaluates the recoverability of the deferred acquisition cost asset. When
appropriate, management revises its assumptions on the estimated gross profits
of these contracts and the cumulative amortization for the books of business are
re-estimated and adjusted by a cumulative charge or credit to income.
F-8
<PAGE>
Acquisition costs and their related deferral are included in the Company's other
expenses as follows:
<TABLE>
<CAPTION>
1999 1998 1997
<S> <C> <C> <C>
------------------------------
Commissions $ 887 $1,069 $ 976
Deferred acquisition costs (898) (891) (862)
Other 642 588 472
------------------------------
TOTAL OTHER EXPENSES $ 631 $ 766 $ 586
------------------------------
</TABLE>
(J) FUTURE POLICY BENEFITS
Liabilities for future policy benefits are computed by the net level premium
method using interest rate assumptions varying from 3% to 11% and withdrawal and
mortality assumptions appropriate at the time the policies were issued.
(K) OTHER POLICYHOLDER FUNDS
Other policyholder funds include reserves for investment contracts without life
contingencies, corporate owned life insurance and universal life insurance
contracts. These reserves are based on account values, which represent the
balance that accrues to the benefit of policyholders.
3. INVESTMENTS AND DERIVATIVE INSTRUMENTS
(A) COMPONENTS OF NET INVESTMENT INCOME
<TABLE>
<CAPTION>
For the years ended
December 31,
--------------------------------
1999 1998 1997
<S> <C> <C> <C>
--------------------------------
Interest income from fixed maturities $ 934 $ 952 $ 932
Interest income from policy loans 391 789 425
Income from other investments 48 32 26
--------------------------------
Gross investment income 1,373 1,773 1,383
Less: Investment expenses 14 14 15
--------------------------------
NET INVESTMENT INCOME $1,359 $1,759 $1,368
--------------------------------
</TABLE>
(B) COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)
<TABLE>
<CAPTION>
For the years ended
December 31,
--------------------------
1999 1998 1997
<S> <C> <C> <C>
--------------------------
Fixed maturities $(7) $(28) $(7)
Equity securities 2 21 12
Real estate and other 1 5 (1)
--------------------------
NET REALIZED CAPITAL GAINS (LOSSES) $(4) $(2) $ 4
--------------------------
</TABLE>
(C) NET UNREALIZED CAPITAL GAINS (LOSSES) ON EQUITY SECURITIES
<TABLE>
<CAPTION>
For the years ended
December 31,
--------------------------
1999 1998 1997
<S> <C> <C> <C>
--------------------------
Gross unrealized capital gains $ 9 $ 2 $14
Gross unrealized capital losses (2) (1) --
--------------------------
Net unrealized capital gains 7 1 14
Deferred income tax expense 2 -- 5
--------------------------
Net unrealized capital gains, net of tax 5 1 9
Balance -- beginning of year 1 9 8
--------------------------
NET CHANGE IN UNREALIZED CAPITAL GAINS (LOSSES) ON EQUITY
SECURITIES $ 4 $(8) $ 1
--------------------------
</TABLE>
F-9
<PAGE>
(D) NET UNREALIZED CAPITAL GAINS (LOSSES) ON FIXED MATURITIES
<TABLE>
<CAPTION>
For the years ended
December 31,
----------------------------
1999 1998 1997
<S> <C> <C> <C>
----------------------------
Gross unrealized capital gains $ 48 $ 421 $371
Gross unrealized capital losses (472) (108) (80)
Unrealized capital (gains) losses credited to policyholders 24 (32) (30)
----------------------------
Net unrealized capital gains (losses) (400) 281 261
Deferred income tax expense (benefit) (140) 98 91
----------------------------
Net unrealized capital gains (losses), net of tax (260) 183 170
Balance -- beginning of year 183 170 22
----------------------------
NET CHANGE IN UNREALIZED CAPITAL GAINS (LOSSES) ON FIXED
MATURITIES $(443) $ 13 $148
----------------------------
</TABLE>
(E) FIXED MATURITY INVESTMENTS
<TABLE>
<CAPTION>
As of December 31, 1999
---------------------------------------------
Gross Gross
Amortized Unrealized Unrealized
Cost Gains Losses Fair Value
<S> <C> <C> <C> <C>
---------------------------------------------
U.S. Government and Government agencies and authorities
(guaranteed and sponsored) $ 180 $ 5 $ (3) $ 182
U.S. Government and Government agencies and authorities
(guaranteed and sponsored) -- asset backed 1,094 5 (35) 1,064
States, municipalities and political subdivisions 155 2 (1) 156
Foreign governments 289 6 (14) 281
Public utilities 865 7 (39) 833
All other corporate, including international 5,646 18 (244) 5,420
All other corporate -- asset backed 4,103 5 (123) 3,985
Short-term investments 1,156 -- -- 1,156
Certificates of deposit 434 -- (12) 422
Redeemable preferred stock 1 -- (1) --
---------------------------------------------
TOTAL FIXED MATURITIES $13,923 $48 $(472) $13,499
---------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
As of December 31, 1998
---------------------------------------------
Gross Gross
Amortized Unrealized Unrealized
Cost Gains Losses Fair Value
<S> <C> <C> <C> <C>
---------------------------------------------
U.S. Government and Government agencies and authorities
(guaranteed and sponsored) $ 121 $ 2 $ -- $ 123
U.S. Government and Government agencies and authorities
(guaranteed and sponsored) -- asset backed 1,001 23 (8) 1,016
States, municipalities and political subdivisions 165 8 -- 173
Foreign governments 393 26 (7) 412
Public utilities 844 33 (3) 874
All other corporate, including international 5,469 260 (42) 5,687
All other corporate -- asset backed 4,155 58 (42) 4,171
Short-term investments 1,847 -- -- 1,847
Certificates of deposit 510 11 (6) 515
---------------------------------------------
TOTAL FIXED MATURITIES $14,505 $421 $(108) $14,818
---------------------------------------------
</TABLE>
The amortized cost and estimated fair value of fixed maturity investments as of
December 31, 1999 by estimated maturity year are shown below. Expected
maturities differ from contractual maturities due to call or prepayment
provisions. Asset backed securities, including mortgage backed securities and
collateralized mortgage obligations, are distributed to maturity year based on
the Company's estimates of the rate of future prepayments of principal over the
remaining lives of the securities. These estimates are developed using
prepayment speeds provided in broker consensus
F-10
<PAGE>
data. Such estimates are derived from prepayment speeds experienced at the
interest rate levels projected for the applicable underlying collateral and can
be expected to vary from actual experience.
<TABLE>
<CAPTION>
Amortized
Cost Fair Value
<S> <C> <C>
----------------------------
MATURITY
One year or less $ 2,454 $ 2,440
Over one year through five years 4,874 4,787
Over five years through ten years 3,072 2,940
Over ten years 3,523 3,332
----------------------------
TOTAL $13,923 $13,499
----------------------------
</TABLE>
(F) SALES OF FIXED MATURITY AND EQUITY SECURITY INVESTMENTS
Sales of fixed maturities, excluding short-term fixed maturities, for the years
ended December 31, 1999, 1998 and 1997 resulted in proceeds of $3.4 billion,
$3.2 billion and $4.2 billion, gross realized capital gains of $153, $103 and
$169, gross realized capital losses (including writedowns) of $160, $131 and
$176, respectively. Sales of equity security investments for the years ended
December 31, 1999, 1998 and 1997 resulted in proceeds of $7, $35 and $132 and
gross realized capital gains of $2, $21 and $12, respectively, and no gross
realized capital losses for all periods.
(G) CONCENTRATION OF CREDIT RISK
The Company is not exposed to any significant concentration of credit risk in
fixed maturities of a single issuer greater than 10% of stockholder's equity.
(H) DERIVATIVE INSTRUMENTS
Hartford Life Insurance Company utilizes a variety of derivative instruments,
including swaps, caps, floors, forwards and exchange traded futures and options,
in accordance with Company policy and in order to achieve one of three Company
approved objectives: to hedge risk arising from interest rate, price or currency
exchange rate volatility; to manage liquidity; or, to control transactions
costs. The Company utilizes derivative instruments to manage market risk through
four principal risk management strategies: hedging anticipated transactions,
hedging liability instruments, hedging invested assets and hedging portfolios of
assets and/or liabilities. The Company does not trade in these instruments for
the express purpose of earning trading profits.
The Company maintains a derivatives counterparty exposure policy which
establishes market based credit limits, favors long-term financial stability and
creditworthiness, and typically requires credit enhancement/credit risk reducing
agreements. Credit risk is measured as the amount owed to the Company based on
current market conditions and potential payment obligations between the Company
and its counterparties. Credit exposures are quantified weekly and netted, and
collateral is pledged to or held by the Company to the extent the current value
of derivatives exceed exposure policy thresholds.
The Company's derivative program is monitored by an internal compliance unit and
is reviewed by senior management. Notional amounts, which represent the basis
upon which pay or receive amounts are calculated and are not reflective of
credit risk, pertaining to derivative financial instruments (excluding the
Company's guaranteed separate account derivative investments), totaled $5.5
billion and $6.2 billion ($3.9 billion and $3.9 billion related to the Company's
investments, $1.6 billion and $2.3 billion on the Company's liabilities) as of
December 31, 1999 and 1998, respectively.
The tables below provide a summary of derivative instruments held by Hartford
Life Insurance Company as of December 31, 1999 and 1998, segregated by major
investment and liability category:
F-11
<PAGE>
<TABLE>
<CAPTION>
1999 -- Amount Hedged (Notional Amounts)
----------------------------------------------------------------------------------
Total Issued Purchased Interest Rate Foreign Total
Carrying Caps & Caps, Floors Swaps & Currency Notional
ASSETS HEDGED Value Floors & Options Futures (1) Forwards Swaps (2) Amount
<S> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------
Asset backed securities (excluding
anticipatory) $ 5,049 $ -- $ -- $ -- $ 911 $-- $ 911
Anticipatory (3) -- -- -- 5 112 -- 117
Other bonds and notes 7,294 494 611 -- 1,676 80 2,861
Short-term investments 1,156 -- -- -- -- -- --
----------------------------------------------------------------------------------
TOTAL FIXED MATURITIES 13,499 494 611 5 2,699 80 3,889
Equity securities, policy loans and
other investments 4,585 -- -- -- -- -- --
----------------------------------------------------------------------------------
TOTAL INVESTMENTS $18,084 494 611 5 2,699 80 3,889
----------------------------------------------------------------------------------
OTHER POLICYHOLDER FUNDS $16,004 -- 1,150 -- 430 -- 1,580
----------------------------------------------------------------------------------
TOTAL DERIVATIVE INSTRUMENTS --
NOTIONAL VALUE $ 494 $1,761 $ 5 $3,129 $80 $5,469
----------------------------------------------------------------------------------
TOTAL DERIVATIVE INSTRUMENTS --
FAIR VALUE $ (22) $ 8 $ -- $ (30) $ 2 $ (42)
----------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
1998 -- Amount Hedged (Notional Amounts)
-------------------------------------------------------------------------------
Total Issued Purchased Interest Rate Foreign Total
Carrying Caps & Caps & Swaps & Currency Notional
ASSETS HEDGED Value Floors Floors Futures (1) Forwards Swaps (2) Amount
<S> <C> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------
Asset backed securities (excluding
anticipatory) $ 5,187 $ 44 $ 243 $ 3 $ 885 $-- $1,175
Anticipatory (3) -- -- -- -- 235 -- 235
Other bonds and notes 7,683 461 597 18 1,300 90 2,466
Short-term investments 1,948 -- -- -- -- -- --
-------------------------------------------------------------------------------
TOTAL FIXED MATURITIES 14,818 505 840 21 2,420 90 3,876
Equity securities, policy loans and
other investments 6,979 -- -- -- -- -- --
-------------------------------------------------------------------------------
TOTAL INVESTMENTS $21,797 505 840 21 2,420 90 3,876
-------------------------------------------------------------------------------
OTHER POLICYHOLDER FUNDS $19,615 -- 1,150 -- 1,195 -- 2,345
-------------------------------------------------------------------------------
TOTAL DERIVATIVE INSTRUMENTS --
NOTIONAL VALUE $ 505 $1,990 $21 $3,615 $90 $6,221
-------------------------------------------------------------------------------
TOTAL DERIVATIVE INSTRUMENTS --
FAIR VALUE $ (6) $ 19 $-- $ 27 $(7) $ 33
-------------------------------------------------------------------------------
</TABLE>
(1) As of December 31, 1999 and 1998, approximately 100% and 5%,
respectively, of the notional futures contracts expire within one year.
(2) As of December 31, 1999 and 1998, approximately 28% and 11%,
respectively, of foreign currency swaps expire within one year.
(3) Deferred gains and losses on anticipatory transactions are included in
the carrying value of fixed maturities in the Consolidated Balance Sheets. At
the time of the ultimate purchase, they are reflected as a basis adjustment to
the purchased asset. As of December 31, 1999, the Company had $1.4 of net
deferred losses on interest rate swaps and futures. The Company expects to basis
adjust the entire loss in 2000. During 1999, $0.2 of new future activity was
basis adjusted. As of December 31, 1998, the Company had no deferred gains for
interest rate swaps.
F-12
<PAGE>
The following is a reconciliation of notional amounts by derivative type and
strategy as of December 31, 1999 and 1998:
<TABLE>
<CAPTION>
BY DERIVATIVE TYPE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
December 31, 1998 Maturities/ December 31, 1999
Notional Amount Additions Terminations (1) Notional Amount
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Caps $1,912 $ -- $ 148 $1,764
Floors 583 -- 178 405
Swaps/Forwards 3,705 991 1,487 3,209
Futures 21 292 308 5
Options -- 86 -- 86
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL $6,221 $1,369 $2,121 $5,469
- -------------------------------------------------------------------------------------------------------------------------------
BY STRATEGY
- -------------------------------------------------------------------------------------------------------------------------------
Liability $2,345 $ 17 $ 782 $1,580
Anticipatory 235 204 322 117
Asset 2,398 831 427 2,802
Portfolio 1,243 317 590 970
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL $6,221 $1,369 $2,121 $5,469
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) During 1999, the Company had no significant gains or losses on
terminations of hedge positions using derivative financial instruments.
4. FAIR VALUE OF FINANCIAL INSTRUMENTS
SFAS No. 107 "Disclosure about Fair Value of Financial Instruments" requires
disclosure of fair value information of financial instruments. For certain
financial instruments where quoted market prices are not available, other
independent valuation techniques and assumptions are used. Because considerable
judgment is used, these estimates are not necessarily indicative of amounts that
could be realized in a current market exchange. SFAS No. 107 excludes certain
financial instruments from disclosure, including insurance contracts. Hartford
Life Insurance Company uses the following methods and assumptions in estimating
the fair value of each class of financial instrument.
Fair value for fixed maturities and marketable equity securities approximates
those quotations published by applicable stock exchanges or received from other
reliable sources.
For policy loans, carrying amounts approximate fair value.
Other invested assets consist primarily of partnership investments, which are
accounted for by the equity method, and mortgage loans, whereby the carrying
value approximates fair value.
Other policyholder funds fair value information is determined by estimating
future cash flows, discounted at the current market rate.
The fair value of derivative financial instruments, including swaps, caps,
floors, futures, options and forward commitments, is determined using a pricing
model which is similar to external valuation models.
The carrying amount and fair values of Hartford Life Insurance Company's
financial instruments as of December 31, 1999 and 1998 were as follows:
<TABLE>
<CAPTION>
1999 1998
------------------------------------
Carrying Fair Carrying Fair
Amount Value Amount Value
<S> <C> <C> <C> <C>
------------------------------------
ASSETS
Fixed maturities $13,499 $13,499 $14,818 $14,818
Equity securities 56 56 31 31
Policy loans 4,187 4,187 6,684 6,684
Other investments 342 348 264 309
LIABILITIES
Other policyholder funds (1) 11,734 11,168 11,709 11,726
------------------------------------
</TABLE>
(1) Excludes corporate owned life insurance and universal life insurance
contracts.
F-13
<PAGE>
5. SEPARATE ACCOUNTS
Hartford Life Insurance Company maintained separate account assets and
liabilities totaling $110.4 billion and $90.3 billion as of December 31, 1999
and 1998, respectively, which are reported at fair value. Separate account
assets, which are segregated from other investments, reflect two categories of
risk assumption: non-guaranteed separate accounts totaling $101.7 billion and
$80.6 billion as of December 31, 1999 and 1998, respectively, wherein the
policyholder assumes substantially all the investment risk, and guaranteed
separate accounts totaling $8.7 and $9.7 billion as of December 31, 1999 and
1998, respectively, wherein Hartford Life Insurance Company contractually
guarantees either a minimum return or account value to the policyholder.
Included in non-guaranteed separate account assets were policy loans totaling
$860 and $1.8 billion as of December 31, 1999 and 1998, respectively. Net
investment income (including net realized capital gains and losses) and interest
credited to policyholders on separate account assets are not reflected in the
Consolidated Statements of Income.
Separate account management fees and other revenues were $1.1 billion, $908 and
$699 in 1999, 1998 and 1997, respectively. The guaranteed separate accounts
include fixed market value adjusted (MVA) individual annuities and modified
guaranteed life insurance. The average credited interest rate on these contracts
was 6.5% and 6.6% as of December 31, 1999 and 1998, respectively. The assets
that support these liabilities were comprised of $8.7 billion and $9.5 billion
in fixed maturities as of December 31, 1999 and 1998, respectively, and $0.2
billion of other invested assets as of December 31, 1998. The portfolios are
segregated from other investments and are managed to minimize liquidity and
interest rate risk. In order to minimize the risk of disintermediation
associated with early withdrawals, fixed MVA annuity and modified guaranteed
life insurance contracts carry a graded surrender charge as well as a market
value adjustment. Additional investment risk is hedged using a variety of
derivatives which totaled $(96) and $40 in carrying value and $2.0 billion and
$3.5 billion in notional amounts as of December 31, 1999 and 1998, respectively.
6. STATUTORY RESULTS
<TABLE>
<CAPTION>
For the years ended December 31,
------------------------------------
1999 1998 1997
<S> <C> <C> <C>
------------------------------------
Statutory net income $ 151 $ 211 $ 214
------------------------------------
Statutory capital and surplus $1,905 $1,676 $1,441
------------------------------------
</TABLE>
A significant percentage of the consolidated statutory surplus is permanently
reinvested or is subject to various state regulatory restrictions which limit
the payment of dividends without prior approval. The total amount of statutory
dividends which may be paid by the insurance subsidiaries of the Company in
2000, without prior regulatory approval, is estimated to be $190.
Hartford Life Insurance Company and its domestic insurance subsidiaries prepare
their statutory financial statements in accordance with accounting practices
prescribed by the applicable state of domicile. Prescribed statutory accounting
practices include publications of the National Association of Insurance
Commissioners (NAIC), as well as state laws, regulations and general
administrative rules.
The NAIC adopted the Codification of Statutory Accounting Principles (SAP) in
March 1998. The proposed effective date for the statutory accounting guidance is
January 1, 2001. It is expected that Hartford Life Insurance Company's
domiciliary state will adopt the SAP and the Company will make the necessary
changes required for implementation. The Company has not yet determined the
impact that the SAP will have on the statutory financial statements of Hartford
Life Insurance Company and its insurance subsidiaries.
7. STOCK COMPENSATION PLANS
Hartford Life Insurance Company's employees are included in the 1997 Hartford
Life, Inc. Incentive Stock Plan (the "Plan"), which was adopted during the
second quarter of 1997. Under the Plan, options granted may be either non-
qualified options or incentive stock options qualifying under Section 422A of
the Internal Revenue Code, stock appreciation rights, performance shares or
restricted stock, or any combination of the foregoing. The aggregate number of
shares of Class A Common Stock which may be awarded in any one year shall be
subject to an annual limit. The maximum number of shares of Class A Common Stock
which may be granted under the Plan in each year shall be 1.5% of the total
issued and outstanding shares of Hartford Life Class A and Class B Common Stock
and treasury stock as reported in the Annual Report on Hartford Life's Form 10-K
of the Company for the preceding year plus unused portions of such limit from
prior years.
In addition, no more than 5 million shares of Class A Common Stock shall be
cumulatively available for awards of incentive stock options under the Plan, and
no more than 20% of the total number of shares on a cumulative basis shall be
available for restricted stock and performance shares awards. Performance shares
awards of common stock granted under the Plan become payable upon the attainment
of specific performance goals achieved over a three year period.
F-14
<PAGE>
All options granted have an exercise price equal to the market price of the
Company's stock on the date of grant and an option's maximum term is ten years.
Certain non-performance based options become exercisable upon the attainment of
specified market price appreciation of Hartford Life's common shares or at seven
years after the date of grant, while the remaining non-performance based options
become exercisable over a three year period commencing with the date of grant.
During the second quarter of 1997, Hartford Life established the Hartford Life,
Inc. Employee Stock Purchase Plan (ESPP). Under this plan, eligible employees of
Hartford Life and the Company may purchase Class A Common Stock of Hartford Life
at a 15% discount from the lower of the market price at the beginning or end of
the quarterly offering period. Hartford Life may sell up to 2,700,000 shares of
stock to eligible employees. Hartford Life sold 120,694, 121,943 and 54,316
shares under the ESPP in 1999, 1998 and 1997, respectively. The weighted average
fair value of the discount under the ESPP was $7.48 per share in 1999, $13.74
per share in 1998 and $9.63 per share in 1997.
8. POSTRETIREMENT BENEFIT AND SAVINGS PLANS
(A) PENSION PLANS
Hartford Life Insurance Company's employees are included in The Hartford's
noncontributory defined benefit pension plans. These plans provide pension
benefits that are based on years of service and the employee's compensation
during the last ten years of employment. The Company's funding policy is to
contribute annually an amount between the minimum funding requirements set forth
in the Employee Retirement Income Security Act of 1974, as amended, and the
maximum amount that can be deducted for U.S. federal income tax purposes.
Generally, pension costs are funded through the purchase of the Company's group
pension contracts. The cost to the Company was approximately $6 in both 1999 and
1998, and $5 in 1997.
The Company also provides, through The Hartford, certain health care and life
insurance benefits for eligible retired employees. A substantial portion of the
Company's employees may become eligible for these benefits upon retirement. The
Company's contribution for health care benefits will depend on the retiree's
date of retirement and years of service. In addition, the plan has a defined
dollar cap which limits average Company contributions. The Company has prefunded
a portion of the health care and life insurance obligations through trust funds
where such prefunding can be accomplished on a tax effective basis.
Postretirement health care and life insurance benefits expense, allocated by The
Hartford, was immaterial to the results of operations for 1999, 1998 and 1997.
The assumed rate in the per capita cost of health care (the health care trend
rate) was 7.1% for 1999, decreasing ratably to 5.0% in the year 2003. Increasing
or decreasing the health care trend rates by one percent per year would have an
immaterial impact on the accumulated postretirement benefit obligation and the
annual expense. To the extent that the actual experience differs from the
inherent assumptions, the effect will be amortized over the average future
service of covered employees.
(B) INVESTMENT AND SAVINGS PLAN
Substantially all employees of the Company are eligible to participate in The
Hartford's Investment and Savings Plan. Under this plan, designated
contributions, which may be invested in Class A Common Stock of Hartford Life or
certain other investments, are matched, up to 3% of compensation, by the
Company. The cost to Hartford Life Insurance Company for the above-mentioned
plan was approximately $4 in both 1999 and 1998, and $2 in 1997.
9. REINSURANCE
Hartford Life Insurance Company cedes insurance to other insurers in order to
limit its maximum losses. Such transfer does not relieve Hartford Life Insurance
Company of its primary liability. Failure of reinsurers to honor their
obligations could result in losses to Hartford Life Insurance Company. Hartford
Life Insurance Company reduces this risk by evaluating the financial condition
of reinsurers, and monitoring for possible concentrations of credit risk.
Hartford Life Insurance Company has no significant reinsurance related
concentrations of credit risk.
The Company records a receivable for the portion of reinsured benefits paid and
insurance liabilities. Reinsurance recoveries on ceded reinsurance contracts
were $397, $300 and $418 for the years ended December 31, 1999, 1998 and 1997,
respectively. Hartford Life Insurance Company also assumes insurance from other
insurers.
The effect of reinsurance on premiums and other considerations is summarized as
follows:
<TABLE>
<CAPTION>
For the years ended December 31,
------------------------------------
1999 1998 1997
<S> <C> <C> <C>
------------------------------------
Direct premiums and other considerations $2,660 $2,722 $2,164
Reinsurance assumed 95 150 159
Reinsurance ceded (710) (654) (686)
------------------------------------
PREMIUMS AND OTHER CONSIDERATIONS $2,045 $2,218 $1,637
------------------------------------
</TABLE>
F-15
<PAGE>
Hartford Life Insurance Company maintains certain reinsurance agreements with
HLA, whereby the Company cedes both group life and group accident and health
risk. Under these treaties, the Company ceded group life premium of $119, $132
and $80 in 1999, 1998 and 1997, respectively, and accident and health premium of
$430, $379, and $335, respectively, to HLA.
Pursuant to a reinsurance agreement dating back to 1992, the Company assumed
100% of certain blocks of individual life insurance from HLA. Under this
reinsurance agreement Hartford Life Insurance Company assumed $9, $13 and $18 of
premium from HLA in 1999, 1998 and 1997, respectively. On December 1, 1999, HLA
recaptured this in force block of individual life insurance previously ceded to
the Company. This commutation resulted in a reduction in the Company's assets of
$666, consisting of $556 of invested assets, $99 of deferred policy acquisition
costs and $11 of other assets. Liabilities decreased $650, consisting of $543 of
other policyholder funds, $60 of future policy benefits and $47 of other
liabilities. As a result, the Company recognized an after-tax loss relating to
this transaction of $16.
In 1998, the Hartford Life recaptured an in force block of Corporate Owned Life
Insurance (COLI) business previously ceded to MBL Assurance Co. of New Jersey
(MBL Life). The transaction was consummated through an assignment of a
reinsurance arrangement between Hartford Life and MBL Life to a Hartford Life
subsidiary. Hartford Life originally assumed the life insurance block in 1992
from Mutual Benefit Life, which was placed in court-supervised rehabilitation in
1991, and reinsured a portion of those policies back to MBL Life. This recapture
was effective January 1, 1998 and resulted in a decrease in ceded premiums and
other considerations of $163 in 1998. Additionally, this transaction resulted in
a decrease in reinsurance recoverables of $4.8 billion, which was exchanged for
the fair value of assets comprised of $4.3 billion in policy loans and $443 in
other net assets.
10. INCOME TAX
Hartford Life and The Hartford have entered into a tax sharing agreement under
which each member in the consolidated U.S. federal income tax return will make
payments between them such that, with respect to any period, the amount of taxes
to be paid by the Company, subject to certain adjustments, generally will be
determined as though the Company were filing separate federal, state and local
income tax returns.
As long as The Hartford continues to own at least 80% of the combined voting
power and 80% of the value of the outstanding capital stock of Hartford Life,
the Company will be included for federal income tax purposes in the affiliated
group of which The Hartford is the common parent. It is the intention of The
Hartford and its non-life subsidiaries to file a single consolidated federal
income tax return. The life insurance companies will file a separate
consolidated federal income tax return for 1997 and 1998 and intend to file a
separate consolidated federal income tax return for 1999. The Company's
effective tax rate was 35%, 35% and 36% in 1999, 1998 and 1997, respectively.
Income tax expense (benefit) is as follows:
<TABLE>
<CAPTION>
For the years ended
December 31,
------------------------------
1999 1998 1997
<S> <C> <C> <C>
------------------------------
Current $(50) $307 $162
Deferred 241 (119) 5
------------------------------
INCOME TAX EXPENSE $191 $188 $167
------------------------------
</TABLE>
A reconciliation of the tax provision at the U.S. federal statutory rate to the
provision (benefit) for income taxes is as follows:
<TABLE>
<CAPTION>
For the years ended
December 31,
------------------------------
1999 1998 1997
<S> <C> <C> <C>
------------------------------
Tax provision at the U.S. federal statutory rate $193 $188 $164
Other (2) -- 3
------------------------------
TOTAL $191 $188 $167
------------------------------
</TABLE>
Deferred tax assets (liabilities) include the following as of December 31:
<TABLE>
<CAPTION>
1999 1998
<S> <C> <C> <C>
---------------------
Tax basis deferred policy acquisition costs $ 720 $ 751
Financial statement deferred policy acquisition costs and
reserves 11 103
Employee benefits (3) 4
Net unrealized capital losses (gains) on securities 138 (98)
Investments and other (407) (296)
---------------------
TOTAL $ 459 $ 464
---------------------
</TABLE>
F-16
<PAGE>
Hartford Life Insurance Company had a current tax receivable of $56 as of
December 31, 1999 and a current tax payable of $65 as of December 31, 1998.
Prior to the Tax Reform Act of 1984, the Life Insurance Company Income Tax Act
of 1959 permitted the deferral from taxation of a portion of statutory income
under certain circumstances. In these situations, the deferred income was
accumulated in a "Policyholders' Surplus Account" and, based on current tax law,
will be taxable in the future only under conditions which management considers
to be remote; therefore, no federal income taxes have been provided on the
balance in this account, which for tax return purposes was $104 as of December
31, 1999.
11. RELATED PARTY TRANSACTIONS
Transactions of the Company with its affiliates relate principally to tax
settlements, reinsurance, insurance coverage, rental and service fees, payment
of dividends and capital contributions. In addition, certain affiliated
insurance companies purchased group annuity contracts from the Company to fund
pension costs and claim annuities to settle casualty claims. Substantially all
general insurance expenses related to the Company, including rent and employee
benefit plan expenses, are initially paid by The Hartford. Direct expenses are
allocated to the Company using specific identification, and indirect expenses
are allocated using other applicable methods. Indirect expenses include those
for corporate areas which, depending on type, are allocated based on either a
percentage of direct expenses or on utilization. Indirect expenses allocated to
the Company by The Hartford were $47 in both 1999 and 1998 and $39 in 1997.
12. COMMITMENTS AND CONTINGENT LIABILITIES
(A) LITIGATION
Hartford Life Insurance Company is involved in pending and threatened litigation
in the normal course of its business in which claims for alleged economic and
punitive damages have been asserted. Some of these cases have been filed as
purported class actions and some cases have been filed in certain jurisdictions
that permit punitive damage awards disproportionate to the actual damages
incurred. Although there can be no assurances, at the present time the Company
does not anticipate that the ultimate liability arising from such pending or
threatened litigation, after consideration of provisions made for estimated
losses and costs of defense, will have a material adverse effect on the
financial condition or operating results of the Company.
(B) GUARANTY FUNDS
Under insurance guaranty fund laws in each state, the District of Columbia and
Puerto Rico, insurers licensed to do business can be assessed by state insurance
guaranty associations for certain obligations of insolvent insurance companies
to policyholders and claimants. Recent regulatory actions against certain large
life insurers encountering financial difficulty have prompted various state
insurance guaranty associations to begin assessing life insurance companies for
the deemed losses. Most of these laws do provide, however, that an assessment
may be excused or deferred if it would threaten an insurer's solvency and
further provide annual limits on such assessments. Part of the assessments paid
by the Company and its subsidiaries pursuant to these laws may be used as
credits for a portion of the associated premium taxes. The Company paid guaranty
fund assessments of approximately $2, $9 and $15 in 1999, 1998 and 1997,
respectively, of which $1 in 1999 and $4 in both 1998 and 1997 were estimated to
be creditable against premium taxes.
(C) LEASES
The rent paid to Hartford Fire for space occupied by the Company was $9 in 1999
and $7 in both 1998 and 1997. Future minimum rental commitments are as follows:
<TABLE>
<S> <C>
2000 $ 14
2001 14
2002 13
2003 12
2004 12
Thereafter 62
--------
TOTAL $ 127
--------
</TABLE>
The principal executive offices of Hartford Life Insurance Company, together
with its parent, are located in Simsbury, Connecticut. Rental expense is
recognized on a level basis over the term of the primary sublease for the
facility located in Simsbury, Connecticut, which expires on December 31, 2009,
and amounted to approximately $9 in each of the years ended December 31, 1999,
1998 and 1997.
(D) TAX MATTERS
Hartford Life's federal income tax returns are routinely audited by the Internal
Revenue Service. Hartford Life's 1996-1997 federal income tax returns are
currently under audit by the Internal Revenue Service. Management believes that
sufficient provision has been made in the financial statements for issues that
may result from tax examinations and other tax related matters for all open tax
years.
F-17
<PAGE>
13. SEGMENT INFORMATION
Hartford Life Insurance Company is organized into three reportable operating
segments which include Investment Products, Individual Life and Corporate Owned
Life Insurance (COLI). Investment Products offers individual fixed and variable
annuities, mutual funds, retirement plan services other investment products.
Individual Life sells a variety of life insurance products, including variable
life, universal life, interest sensitive whole life and term life insurance.
COLI primarily offers variable products used by employers to fund non-qualified
benefits or other post-employment benefit obligations as well as leveraged COLI.
The Company includes in "Other" corporate items not directly allocable to any of
its reportable operating segments, as well as certain employee benefit products
including group life and disability insurance that is directly written by the
Company and is substantially ceded to its parent, HLA.
The accounting policies of the reportable operating segments are the same as
those described in the summary of significant accounting policies in Note 2.
Hartford Life Insurance Company evaluates performance of its segments based on
revenues, net income and the segment's return on allocated capital. The Company
charges direct operating expenses to the appropriate segment and allocates the
majority of indirect expenses to the segments based on an intercompany expense
arrangement. Intersegment revenues are not significant and primarily occur
between corporate and the operating segments. These amounts include interest
income on allocated surplus and the amortization of net realized capital gains
and losses through net investment income utilizing the duration of the segment's
investment portfolios. The Company's revenues are primarily derived from
customers within the United States. The Company's long-lived assets primarily
consist of deferred policy acquisition costs and deferred tax assets from within
the United States. The following tables outlines summarized financial
information concerning the Company's segments.
<TABLE>
<CAPTION>
Investment Individual
1999 Products Life COLI Other Total
<S> <C> <C> <C> <C> <C>
--------------------------------------------------
Total revenues $ 1,884 $ 574 $ 830 $ 112 $ 3,400
Net investment income 699 169 431 60 1,359
Amortization of deferred policy acquisition costs 411 128 -- -- 539
Income tax expense (benefit) 159 37 15 (20) 191
Net income (loss) 300 68 28 (35) 361
Assets 106,352 5,962 20,198 2,453 134,965
</TABLE>
<TABLE>
<CAPTION>
Investment Individual
1998 Products Life COLI Other Total
<S> <C> <C> <C> <C> <C>
--------------------------------------------------
Total revenues $ 1,779 $ 543 $ 1,567 $ 86 $ 3,975
Net investment income 736 181 793 49 1,759
Amortization of deferred policy acquisition costs 326 105 -- -- 431
Income tax expense (benefit) 145 35 12 (4) 188
Net income (loss) 270 64 24 (8) 350
Assets 87,207 5,228 22,631 3,197 118,263
</TABLE>
<TABLE>
<CAPTION>
Investment Individual
1997 Products Life COLI Other Total
<S> <C> <C> <C> <C> <C>
-------------------------------------------------
Total revenues $ 1,510 $ 487 $ 980 $ 32 $ 3,009
Net investment income 739 164 429 36 1,368
Amortization of deferred policy acquisition costs 250 83 -- 2 335
Income tax expense 111 30 15 11 167
Net income 206 55 27 14 302
Assets 72,288 4,914 17,800 2,743 97,745
</TABLE>
14. QUARTERLY RESULTS FOR 1999 AND 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
<S> <C> <C> <C> <C> <C> <C> <C> <C>
March 31, June 30, September 30, December 31,
------------------------------------------------------------------------------
1999 1998 1999 1998 1999 1998 1999 1998
------------------------------------------------------------------------------
Revenues $838 $915 $853 $721 $846 $826 $863 $1,513
Benefits, claims and expenses 703 787 722 591 695 688 728 1,371
Net income 88 83 85 85 100 89 88 93
</TABLE>
F-18
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
SCHEDULE I -- SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN AFFILIATES
AS OF DECEMBER 31, 1999
(IN MILLIONS)
<TABLE>
<CAPTION>
Amount at
Fair which shown
Type of Investment Cost Value on Balance Sheet
<S> <C> <C> <C>
------------------------------------
FIXED MATURITIES
Bonds and Notes
U.S. Government and Government agencies and authorities
(guaranteed and sponsored) $ 180 $ 182 $ 182
U.S. Government and Government agencies and authorities
(guaranteed and sponsored) -- asset backed 1,094 1,064 1,064
States, municipalities and political subdivisions 155 156 156
Foreign governments 289 281 281
Public utilities 865 833 833
All other corporate, including international 5,646 5,420 5,420
All other corporate -- asset backed 4,103 3,985 3,985
Short-term investments 1,156 1,156 1,156
Certificates of deposit 434 422 422
Redeemable preferred stock 1 -- --
------------------------------------
TOTAL FIXED MATURITIES 13,923 13,499 13,499
------------------------------------
EQUITY SECURITIES
Common Stocks
Industrial and miscellaneous 49 56 56
------------------------------------
TOTAL EQUITY SECURITIES 49 56 56
------------------------------------
TOTAL FIXED MATURITIES AND EQUITY SECURITIES 13,972 13,555 13,555
------------------------------------
Policy Loans 4,187 4,187 4,187
------------------------------------
OTHER INVESTMENTS
Mortgage loans on real estate 198 198 198
Other invested assets 127 150 144
------------------------------------
TOTAL OTHER INVESTMENTS 325 348 342
------------------------------------
TOTAL INVESTMENTS $18,484 $18,090 $18,084
------------------------------------
</TABLE>
S-1
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
SCHEDULE III -- SUPPLEMENTARY INSURANCE INFORMATION
FOR THE YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
(IN MILLIONS)
<TABLE>
<CAPTION>
Net Benefits,
Deferred Realized Claims and
Policy Future Other Premiums Net Capital Claim
Acquisition Policy Policyholder and Other Investment Gains Adjustment
Segment Costs Benefits Funds Considerations Income (Losses) Expenses
<S> <C> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------
1999
Investment Products $3,099 $2,744 $ 8,859 $1,185 $ 699 $-- $ 660
Individual Life 914 270 1,880 405 169 -- 254
Corporate Owned Life Insurance -- 321 5,244 399 431 -- 621
Other -- 997 21 56 60 (4) 39
-------------------------------------------------------------------------------------------
CONSOLIDATED OPERATIONS $4,013 $4,332 $16,004 $2,045 $1,359 $(4) $1,574
-------------------------------------------------------------------------------------------
1998
-------------------------------------------------------------------------------------------
Investment Products $2,823 $2,407 $ 9,194 $1,043 $ 736 $-- $ 670
Individual Life 931 466 2,307 363 181 (1) 262
Corporate Owned Life Insurance -- 225 8,097 774 793 -- 924
Other -- 497 17 38 49 (1) 55
-------------------------------------------------------------------------------------------
CONSOLIDATED OPERATIONS $3,754 $3,595 $19,615 $2,218 $1,759 $(2) $1,911
-------------------------------------------------------------------------------------------
1997
-------------------------------------------------------------------------------------------
Investment Products $2,478 $2,070 $ 9,620 $ 771 $ 739 $-- $ 677
Individual Life 837 392 2,182 323 164 -- 242
Corporate Owned Life Insurance -- 56 9,259 551 429 -- 439
Other -- 541 (27) (8) 36 4 21
-------------------------------------------------------------------------------------------
CONSOLIDATED OPERATIONS $3,315 $3,059 $21,034 $1,637 $1,368 $ 4 $1,379
-------------------------------------------------------------------------------------------
<CAPTION>
Amortization
of Deferred
Policy
Acquisition Dividends to Other
Segment Costs Policyholders Expenses
<S> <C> <C> <C>
---------------------------------------
1999
Investment Products $411 $ -- $354
Individual Life 128 -- 87
Corporate Owned Life Insurance -- 104 62
Other -- -- 128
---------------------------------------
CONSOLIDATED OPERATIONS $539 $104 $631
---------------------------------------
1998
---------------------------------------
Investment Products $326 $ -- $368
Individual Life 105 -- 77
Corporate Owned Life Insurance -- 329 278
Other -- -- 43
---------------------------------------
CONSOLIDATED OPERATIONS $431 $329 $766
---------------------------------------
1997
---------------------------------------
Investment Products $250 $ -- $266
Individual Life 83 -- 77
Corporate Owned Life Insurance -- 240 259
Other 2 -- (16)
---------------------------------------
CONSOLIDATED OPERATIONS $335 $240 $586
---------------------------------------
</TABLE>
S-2
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
SCHEDULE IV -- REINSURANCE
(IN MILLIONS)
<TABLE>
<CAPTION>
Percentage
Gross Ceded to Assumed From Net of Amount
Amount Other Companies Other Companies Amount Assumed to Net
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------
FOR THE YEAR ENDED
DECEMBER 31, 1999
Life insurance in force $307,970 $131,162 $11,785 $188,593 6.2%
PREMIUMS AND OTHER CONSIDERATIONS
Life insurance and annuities $ 2,212 $ 275 $ 84 $ 2,021 4.2%
Accident and health insurance 448 435 11 24 45.8%
------------------------------------------------------------------------
TOTAL PREMIUMS AND OTHER CONSIDERATIONS $ 2,660 $ 710 $ 95 $ 2,045 4.6%
------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1998
------------------------------------------------------------------------
Life insurance in force $326,400 $200,782 $18,289 143,907 12.7%
------------------------------------------------------------------------
PREMIUMS AND OTHER CONSIDERATIONS
Life insurance and annuities $ 2,329 $ 271 142 $ 2,200 6.5%
Accident and health insurance 393 383 8 18 44.4%
------------------------------------------------------------------------
TOTAL PREMIUMS AND OTHER CONSIDERATIONS $ 2,722 $ 654 150 $ 2,218 6.8%
------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------------------------------------------
Life insurance in force $245,487 $178,771 $33,156 $ 99,872 33.2%
------------------------------------------------------------------------
PREMIUMS AND OTHER CONSIDERATIONS
Life insurance and annuities $ 1,818 $ 340 $ 157 $ 1,635 9.6%
Accident and health insurance 346 346 2 2 100.0%
------------------------------------------------------------------------
TOTAL PREMIUMS AND OTHER CONSIDERATIONS $ 2,164 $ 686 $ 159 $ 1,637 9.7%
------------------------------------------------------------------------
</TABLE>
S-3
<PAGE>
PART C
<PAGE>
OTHER INFORMATION
Item 27. Exhibits
(a) Resolution of the Board of Directors of Hartford Life Insurance
Company ("Hartford") authorizing the establishment of ICMG
Registered Variable Life Separate Account A.(1)
(b) Not Applicable.
(c)(1) Principal Underwriting Agreement.(2)
(c)(2) Form of Selling Agreement.(3)
(d) Form of Certificate for Group Flexible Premium Variable Life
Insurance Policy.(1)
(e) Form of Enrollment Form for Certificate Issued Under Group
Flexible Premium Variable Life Insurance Policies.(2)
(f) Certificate of Incorporation of Hartford(4) and Bylaws of
Hartford.(5)
(g) Contracts of Reinsurance.(6)
(h) Form of Participation Agreement.(6)
(i) Not Applicable.
(j) Not Applicable.
(k) Opinion and consent of Lynda Godkin, Senior Vice President,
General Counsel and Corporate Secretary.
(l) Opinion and Consent of James M. Hedreen, FSA, MAAA.
(m) Not Applicable.
(n) Consent of Arthur Andersen LLP, Independent Public Accountants.
(o) No financial statement will be omitted.
(p) Not Applicable.
(q) Memorandum describing transfer and redemption procedures.(6)
(r) Power of Attorney
(s) Organizational Chart
- ------------------------------
(1) Incorporated by reference to the Initial Filing to the Registration
Statement on Form S-6, File No. 333-60515, of Hartford Life Insurance
Company filed with the Securities and Exchange Commission on August 3,
1998.
(2) Incorporated by reference to the Initial Filing to the Registration
Statement on Form S-6, File No. 33-63731, of Hartford Life and Annuity
Insurance Company filed with the Securities and Exchange Commission on
October 30, 1995.
(3) Incorporated by reference to Pre-Effective Amendment No. 1 to the
Registration Statement on Form S-6, File No. 33-63731 of Hartford Life
and Annuity filed with the Securities and Exchange Commission on May 21,
1996.
(4) Incorporated by reference to Post-Effective Amendment No. 4 to the
Registration Statement on Form S-6, File No. 33-83656, of Hartford Life
Insurance Company Filed with the Securities and Exchange Commission on
April 14, 1997.
(5) Incorporated by reference to Post-Effective Amendment No. 3 to the
Registration Statement on Form S-6, File No. 33-83656, of Hartford Life
Insurance Company filed with the Securities and Exchange Commission on
May 1, 1996.
(6) Incorporated by reference to Post-Effective Amendment No. 1 to the
Registration Statement on Form S-6, File No. 333-60515, of Hartford Life
Insurance Company filed with the Securities and Exchange Commission on
April 15, 1999.
<PAGE>
Item 28. Officers and Directors.
- --------------------------------------------------------------------------------
NAME POSITION WITH HARTFORD
- --------------------------------------------------------------------------------
David A. Carlson Vice President
- --------------------------------------------------------------------------------
Peter W. Cummins Senior Vice President
- --------------------------------------------------------------------------------
Bruce W. Ferris Vice President
- --------------------------------------------------------------------------------
Timothy M. Fitch Vice President and Actuary
- --------------------------------------------------------------------------------
Mary Jane B. Fortin Vice President & Chief Accounting Officer
- --------------------------------------------------------------------------------
David T. Foy Senior Vice President, Chief Financial Officer and
Treasurer, Director*
- --------------------------------------------------------------------------------
Lynda Godkin Senior Vice President, General Counsel and
Corporate Secretary, Director*
- --------------------------------------------------------------------------------
Lois W. Grady Senior Vice President
- --------------------------------------------------------------------------------
Stephen T. Joyce Senior Vice President
- --------------------------------------------------------------------------------
Michael D. Keeler Vice President
- --------------------------------------------------------------------------------
Robert A. Kerzner Senior Vice President
- --------------------------------------------------------------------------------
Thomas M. Marra President, Director*
- --------------------------------------------------------------------------------
Deanne Osgood Vice President
- --------------------------------------------------------------------------------
Craig R. Raymond Senior Vice President and Chief Actuary
- --------------------------------------------------------------------------------
Donald A. Salama Vice President
- --------------------------------------------------------------------------------
Lowndes A. Smith Chief Executive Officer, Director*
- --------------------------------------------------------------------------------
David M. Znamierowski Senior Vice President and Chief Investment
Officer, Director*
- --------------------------------------------------------------------------------
Unless otherwise indicated, the principal business address of each of the above
individuals is P.O. Box 2999, Hartford, CT 06104-2999.
* Denotes Board of Directors of Hartford.
<PAGE>
Item 29. Persons Controlled By or Under Common Control with the Depositor or
Registrant
Filed herewith as Exhibit (s).
Item 30: Indemnification
<PAGE>
Sections 33-770 to 33-778, inclusive, of the Connecticut General
Statutes ("CGS") provide that a corporation may provide indemnification
of or advance expenses to a director, officer, employee or agent.
Reference is hereby made to Section 33-771(e) of CGS regarding
indemnification of directors and Section 33-776(d) of CGS regarding
indemnification of officers, employees and agents of Connecticut
corporations. These statutes provide, in general, that Connecticut
corporations incorporated prior to January 1, 1997 shall, except to the
extent that their certificate of incorporation expressly provides
otherwise, indemnify their directors, officers, employees and agents
against "liability" (defined as the obligation to pay a judgment,
settlement, penalty, fine, including an excise tax assessed with
respect to an employee benefit plan, or reasonable expenses incurred
with respect to a proceeding) when (1) a determination is made pursuant
to Section 33-775 that the party seeking indemnification has met the
standard of conduct set forth in Section 33-771 or (2) a court has
determined that indemnification is appropriate pursuant to Section
33-774. Under Section 33-775, the determination of and the
authorization for indemnification are made (a) by the disinterested
directors, as defined in Section 33-770(3); (b) by special counsel; (c)
by the shareholders; or (d) in the case of indemnification of an
officer, agent or employee of the corporation, by the general counsel
of the corporation or such other officer(s) as the board of directors
may specify. Also, Section 33-772 provides that a corporation shall
indemnify an individual who was wholly successful on the merits or
otherwise against reasonable expenses incurred by him in connection
with a proceeding to which he was a party because he was a director of
the corporation. In the case of a proceeding by or in the right of the
corporation or with respect to conduct for which the director, officer,
agent or employee was adjudged liable on the basis that he received a
financial benefit to which he was not entitled, indemnification is
limited to reasonable expenses incurred in connection with the
proceeding against the corporation to which the individual was named a
party.
Under the Depositor's bylaws, the Depositor must indemnify both
directors and officers of the Depositor for (1) any claims and
liabilities to which they become subject by reason of being or having
been directors or officers of the Depositor and (2) legal and other
expenses incurred in defending against such claims, in each case, to
the extent such is consistent with statutory provisions.
Section 33-777 of CGS specifically authorizes a corporation to procure
indemnification insurance on behalf of an individual who was a
director, officer, employer or agent of the corporation. Consistent
with the statute, the directors and officers of the Depositor and
Hartford Equity Sales Company, Inc. ("HESCO") are covered under a
directors and
<PAGE>
officers liability insurance policy issued to The Hartford Financial
Services Group, Inc. and its subsidiaries.
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or
otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or paid
by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the Registrant will, unless in the opinion
of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act
and will be governed by the final adjudication of such issue.
<PAGE>
Item 31. Principal Underwriters
(a) HESCO acts as principal underwriter for the following investment
companies:
Hartford Life Insurance Company - Separate Account VL I
Hartford Life Insurance Company - Separate Account VL II
Hartford Life Insurance Company - ICMG Secular Trust Separate
Account
Hartford Life Insurance Company - ICMG Registered Variable
Life Separate Account A
Hartford Life and Annuity Insurance Company - Separate
Account VL I
Hartford Life and Annuity Insurance Company - Separate
Account VL II
Hartford Life and Annuity Insurance Company - ICMG Registered
Variable Life Separate Account One
(b) Directors and Officers of HESCO
Name and Principal Positions and Offices
Business Address With Underwriter
------------------ ---------------------
David A. Carlson Vice President
Peter W. Cummins Senior Vice President
David T. Foy Treasurer
Lynda Godkin Senior Vice President, General Counsel and
Corporate Secretary
George R. Jay Controller
Robert A. Kerzner Executive Vice President, Director
Thomas M. Marra Executive Vice President, Director
Donald R. Salama Vice President
Lowndes A. Smith President and Chief Executive Officer,
Director
Unless otherwise indicated, the principal business address of
each of the above individuals is P.O. Box 2999, Hartford, CT
06104-2999.
<PAGE>
Item 32. Location of Accounts and Records
All of the accounts, books, records or other documents required to be
kept by Section 31(a) of the Investment Company Act of 1940 and rules
thereunder, are maintained by Hartford at 200 Hopmeadow Street,
Simsbury, Connecticut 06089.
Item 33. Management Services
All management contracts are discussed in Part A and Part B of this
Registration Statement.
Item 34. Representation of Reasonableness of Fees
Hartford hereby represents that the aggregate fees and charges under
the Policy are reasonable in relation to the services rendered, the
expenses expected to be incurred, and the risks assumed by Hartford.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it meets all of the requirements for effectiveness of this
Registration Statement pursuant to rule 485(b) under the Securities Act of 1933
and has duly caused this registration statement to be signed on its behalf by
the undersigned, duly authorized, in the Town of Simsbury, and State of
Connecticut on this 12th day of April, 2000.
ICMG REGISTERED VARIABLE LIFE
SEPARATE ACCOUNT A
(Registrant)
*By: David T. Foy
------------------------------------
David T. Foy, Senior Vice *By /s/ Marianne O'Doherty
President, & Treasurer -----------------------
Marianne O'Doherty
Attorney-In-Fact
HARTFORD LIFE INSURANCE COMPANY
(Depositor)
*By: David T. Foy
------------------------------------
David T. Foy, Senior Vice
President, & Treasurer
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed by the following persons and in the capacities and on
the dates indicated.
David T. Foy, Senior Vice President, Chief
Financial Officer and Treasurer, Director*
Lynda Godkin, Senior Vice President, General *By /s/ Marianne O'Doherty
Counsel and Corporate Secretary, Director* ----------------------
Thomas M. Marra, President, Marianne O'Doherty
Director* Attorney-In-Fact
Lowndes A. Smith, Chief Executive Officer,
Director* Dated: April 12, 2000
Raymond P. Welnicki, Senior Vice President,
Director*
Lizabeth H. Zlatkus, Executive Vice President, Director*
David M. Znamierowski, Senior Vice President and
Chief Investment Officer, Director*
<PAGE>
EXHIBIT INDEX
1.1 Opinion and Consent of Lynda Godkin, Senior Vice President, General
Counsel and Corporate Secretary.
1.2 Opinion and Consent of James M. Hedreen, FSA, MAAA.
1.3 Consent of Arthur Anderson LLP, Independent Public Accountants.
1.4 Power of Attorney.
1.5 Organization Chart.
<PAGE>
[LOGO]
[COMPANY]
April 6, 2000
LYNDA GODKIN, SENIOR VICE PRESIDENT,
GENERAL COUNSEL & CORPORATE SECRETARY
Board of Directors
Hartford Life Insurance Company
200 Hopmeadow Street
Simsbury, CT 06089
RE: ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A
HARTFORD LIFE INSURANCE COMPANY
POST-EFFECTIVE AMENDMENT NO. 2
FILE NO. 333-60515
Dear Sir/Madam:
I have acted as General Counsel to Hartford Life Insurance Company (the
"Company"), a Connecticut insurance company, and ICMG Registered Variable Life
Separate Account A (the "Account") in connection with the registration of an
indefinite amount of securities in the form of group flexible premium variable
life insurance policies (the "Policies") with the Securities and Exchange
Commission under the Securities Act of 1933, as amended. I have examined such
documents (including the Form S-6 Registration Statement) and reviewed such
questions of law as I considered necessary and appropriate, and on the basis of
such examination and review, it is my opinion that:
1. The Company is a corporation duly organized and validly existing as a
stock life insurance company under the laws of the State of Connecticut
and is duly authorized by the Insurance Department of the State of
Connecticut to issue the Policies.
2. The Account is a duly authorized and validly existing separate account
established pursuant to the provisions of Section 38a-433 of the
Connecticut Statutes.
3. To the extent so provided under the Policies, that portion of the assets
of the Account equal to the reserves and other contract liabilities with
respect to the Account will not be chargeable with liabilities arising out
of any other business that the Company may conduct.
4. The Policies, when issued as contemplated by the Form S-6 Registration
Statement, will constitute legal, validly issued and binding obligations
of the Company.
<PAGE>
Board of Directors
Hartford Life Insurance Company
April 6, 2000
Page 2
I hereby consent to the filing of this opinion as an exhibit to the Form S-6
Registration Statement for the Policies and the Account.
Sincerely,
/s/ Lynda Godkin
Lynda Godkin
<PAGE>
[LOGO]
[COMPANY]
James M. Hedreen, FSA, MAAA
Actuary
April 6, 2000
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
RE: ICMG REGISTERED VARIABLE LIFE SEPARATE ACCOUNT A
HARTFORD LIFE INSURANCE COMPANY
POST-EFFECTIVE AMENDMENT NO. 2
FILE NO. 333-60515
Dear Sir:
This opinion is furnished in connection with the Form S-6 Registration Statement
under the Securities Act of 1933, as amended ("Securities Act"), of a certain
flexible premium variable life insurance policy (the "Policy") that will be
offered and sold by Hartford Life Insurance Company and certain units of
interest to be issued in connection with the Policy.
The hypothetical illustrations of the Policy issued in the Form S-6 Registration
Statement accurately reflect reasonable estimates of projected performance of
the Policy under the stipulated rates of investment return, the contractual
expense deductions and guaranteed cost-of-insurance rates, and utilizing a
reasonable estimation for expected fund operating expenses.
I hereby consent to the use of this opinion as an exhibit to the Form S-6
Registration Statement and to the reference to my name under the heading
"Experts" in the Statement of Additional Information included as part of such
Form S-6 Registration Statement.
Very truly yours,
/s/ James M. Hedreen
James M. Hedreen, FSA, MAAA
<PAGE>
ARTHUR ANDERSEN LLP
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
-----------------------------------------
As independent public accountants, we hereby consent to the use of our reports
(and to all references to our Firm) included in or made a part of this
Registration Statement File No. 333-60515 for Hartford Life Insurance Company
ICMG Registered Variable Life Separate Account A on Form S-6.
/s/ Arthur Andersen LLP
Hartford, Connecticut
April 11, 2000
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
POWER OF ATTORNEY
David T. Foy
Lynda Godkin
Thomas M. Marra
Lowndes A. Smith
Raymond P. Welnicki
Lizabeth H. Zlatkus
David M. Znamierowski
do hereby jointly and severally authorize Lynda Godkin, Christine Repasy,
Marianne O'Doherty, Thomas S. Clark and Marta Czekajewski to sign as their agent
any Registration Statement, pre-effective amendment, post-effective amendment
and any application for exemptive relief of the Hartford Life Insurance Company
under the Securities Act of 1933 and/or the Investment Company Act of 1940, and
do hereby ratify such signatures heretofore made by such persons.
IN WITNESS WHEREOF, the undersigned have executed this Power of Attorney for the
purpose herein set forth.
/s/ David T. Foy
- -------------------------------- Dated as of January 15, 2000
David T. Foy
/s/ Lynda Godkin
- -------------------------------- Dated as of January 15, 2000
Lynda Godkin
/s/ Thomas M. Marra
- -------------------------------- Dated as of January 15, 2000
Thomas M. Marra
/s/ Lowndes A. Smith
- -------------------------------- Dated as of January 15, 2000
Lowndes A. Smith
/s/ Raymond P. Welnicki
- -------------------------------- Dated as of January 15, 2000
Raymond P. Welnicki
/s/ Lizabeth H. Zlatkus
- -------------------------------- Dated as of January 15, 2000
Lizabeth H. Zlatkus
/s/ David M. Znamierowski
- -------------------------------- Dated as of January 15, 2000
David M. Znamierowski
<PAGE>
ORGANIZATIONAL CHART
<TABLE>
<CAPTION>
<S> <C>
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
(DELAWARE)
|
---------------------------------------------
NUTMEG INSURANCE COMPANY |
(CONNECTICUT) THE HARTFORD INVESTMENT
| MANAGEMENT COMPANY
HARTFORD FIRE INSURANCE COMPANY (DELAWARE)
(CONNECTICUT) |
| |
HARTFORD ACCIDENT AND INDEMNITY COMPANY HARTFORD INVESTMENT
(CONNECTICUT) SERVICES, INC.
| (CONNECTICUT)
HARTFORD LIFE, INC.
(DELAWARE)
|
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
(CONNECTICUT)
|
|
|
-------------------------------------------------------------------------------------------------------------------------
| | | | | | | | |
HARTFORD LIFE | | | | | | PLANCO PLANCO
INTERNATIONAL, LTD.| | | | | | FINANCIAL INCORPORATED
(CONNECTICUT) | | | | | | SERVICES, (PENNSYLVANIA)
| | | | | | INCORPORATED
| | | | | | (PENNSYLVANIA)
| | | | | |
| HART LIFE HARTFORD FINANCIAL HARTFORD LIFE HARTFORD AMERICAN
| INSURANCE SERVICES LIFE INSURANCE COMPANY FINANCIAL MATURITY LIFE
| COMPANY INSURANCE COMPANY (CONNECTICUT) SERVICES, LLC INSURANCE COMPANY
| (CONNECTICUT) (CONNECTICUT) | (DELAWARE) (CONNECTICUT)
| | | |
| ------------------------------------- | AML FINANCIAL, INC.
| | | | | (CONNECTICUT)
|SERVUS LIFE HARTFORD HARTFORD |
| INSURANCE INTERNATIONAL LIFE AND |
| COMPANY LIFE REASSURANCE ANNUITY INSURANCE |
|(CONNECTICUT) CORPORATION COMPANY |
| (CONNECTICUT) (CONNECTICUT) |
| | |
| | |
| HARTFORD |
| LIFE, LTD. |
| (BERMUDA) |
| |
| |
----------| -----------------------------------------------------------------------
| | | | |
INTERNATIONAL HL INVESTMENT HARTFORD HARTFORD SECURITIES HARTFORD-COMPREHENSIVE
CORPORATE ADVISORS, LLC EQUITY SALES DISTRIBUTION EMPLOYEE
MARKETING GROUP, INC. (CONNECTICUT) COMPANY, INC. COMPANY, INC. BENEFIT SERVICE
(CONNECTICUT) | (CONNECTICUT) (CONNECTICUT) COMPANY
| | (CONNECTICUT)
| |
THE EVERGREEN HARTFORD INVESTMENT
GROUP, INC. FINANCIAL SERVICES
(NEW YORK) COMPANY
(DELAWARE)
</TABLE>
<PAGE>
<TABLE>
<S> <C>
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
(DELAWARE)
|
NUTMEG INSURANCE COMPANY
(CONNECTICUT)
|
HARTFORD FIRE INSURANCE COMPANY
(CONNECTICUT)
|
----------------------------------------------------------------------------------------------------------------------------
| | |
| | Hartford Accidental and Indemnity Company
| | (Connecticut)
| | |
| | Hartford Life, Inc
| | (Delaware)
| | |
| | Hartford Life and Accident Insurance Company
| | (Connecticut)
| | |
| | HARTFORD LIFE
| | -------INTERNATIONAL LTD.
| | | (CONNECTICUT)
| | | |
| | | ITT HARTFORD
| | | ----SUDAMERICANA
| | | | HOLDING S.A.
| | | | (ARGENTINA)
| | | |------------------------------------------------------
| | | | | |
| | | | ITT HARTFORD GALICIA INSTITUTO DE
| | | | SEGUROS VIDA COMPANIA SALTA COMPANIA DE
| | | |------DE VIDA S.A. DE SEGUROS S.A. SEGUROS DE VIDA S.A.
| | | | (URUGUAY) (ARGENTINA) (ARGENTINA)
| | | |
| | ICATU | | HARTFORD
| | HARTFORD | |---SEGUROS DE VIDA S.A.
| | SEGUROS S.A.----------| | (ARGENTINA)
| | (BRAZIL) |
| | | |
| | | | HARTFORD
| | -- ----------| |-------SEGUROS DE
| | | | | RETIRO S.A.
| | | | | (ARGENTINA)
|-----------|----------------|-------------------|--------------------------------------------------------------------------
| | | | |
| | | ICATU HARTFORD | CONSULTORA DE CAPITALES
| | | FUNDO DE PENSAO | S.A. SOCIEDAD GERENTE
| | | (BRAZIL) |----DE FONDOS COMUNES
| | | | | DE ENVERSION
| | | | | (ARGENTINA)
| | | ICATU HARTFORD |
| | | CAPITALIZACAO S.A. | CLARIDAD
| | | (BRAZIL) | ADMINISTRADORA DE
| | | | |---FONDOS DE JUBILACIONES
| | | BRAZILCAP | Y PENSIONES S.A.
| | | CAPITALIZACAO S.A. | (ARGENTINA)
| | | (BRAZIL) |
| | | |
| | -------------------------- |
| |--------------- | |
| | | |
HARTFORD FIRE HARTFORD FIRE | |------- SEGPOOL S.A.
INTERNATIONAL------------INTERNATIONAL, LTD. | | (ARGENTINA)
(GERMANY) GMBH (CONNECTICUT) | |
(WEST GERMANY) | |
| |
ICATU HARTFORD | | THESIS S.A.
ADMINISTRACAO | |-------- (ARGENTINA)
DE BENEFICIOS LTDA-- | |
(BRAZIL) |
|
|
|
|--------- U.O.R., S.A.
(ARGENTINA)
</TABLE>
<PAGE>
<TABLE>
<S> <C>
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
(DELAWARE)
|
NUTMEG INSURANCE COMPANY
(CONNECTICUT)
|
HARTFORD FIRE INSURANCE COMPANY
(CONNECTICUT)
|
- --------------------------------------------------------------------------------------------------------------------------------|
| |
THE HARTFORD INTERNATIONAL |
|-----------------------------------------------------------------------FINANCIAL SERVICES GROUP, INC. |
| | | (DELAWARE) |
| | | ----------------------|----------------- |
| | | | | | | |
ZWOLSCHE | | ITT HARTFORD LONDON AND | HARTFORD |
ALGEMEENE N.V. | | INTERNATIONAL, LTD. EDINBURGH | EUROPE, INC. |
(NETHERLANDS) | | (U.K.) INSURANCE GROUP, LTD.| (DELAWARE) |
| | | (U.K.) | |
| | | | | |
| | | ------------- | |
| | | | | |
| ITT ASSURANCES HARTFORD INTERNATIONAL | LONDON AND -THE HARTFORD |
| S.A. INSURANCE CO., N.V. |--- EDINBURGH INTERNATIONAL |
| ZWOLSCHE ALGEMEENE (FRANCE) (BELGIUM) | INSURANCE CO., LTD. FINANCIAL |
|----SCHADEVERZEKERING | | (U.K.) SERVICES |
--------| N.V.----------------------------------- | | | GROUP CIA |
| | (NETHERLANDS) | | | | DE SEGUROS Y |
Z.A. | | | | EXCESS INSURANCE REASEGUROS S.A.|
- --VERZEKERINGEN | | | | COMPANY LTD. (SPAIN) |
| N.V. | ZWOLSCHE ALGEMEENE | | | (U.K.) |
| (BELGIUM) |------HERVERZEKERING B.V. | | | |
| | -----| (NETHERLANDS) | | | LONDON AND |
| | | | | | |--- EDINBURGH LIFE |
| Z.A. LUX S.A. | | | | ASSURANCE CO., LTD. |
| (LUXEMBURG) | ZWOLSCHE ALGEMEENE | | | (U.K.) |
| |--LEVENS-VERZEKERING N.V.------------ | | | |
| | (NETHERLANDS) | | | | |
- ----------------|------------------------------------|------------|------|--------------|---------------------------------------|
| | | | | | |
| -------- | | | | |
| | | | | | | |
| ZWOLSCHE | ZWOLSCHE ALGEMEENE ZWOLSCHE ALGEMEENE | | | |
| ALGEMEENE |-----HYPOTHEKEN N.V. BELEGGINGEN III B.V. | | | |
| EUROPA B.V. | (NETHERLANDS) (NETHERLANDS) | | | |
| (NETHERLANDS) | ---------- | | |
- --------| | | | | |
| EXPLOITATIEMAAT- BELEGGINGSMAAT- | | |
|----- SCHAPPIJ SCHAPPIJ | | |
| BUIZERDLAAN B.V. BUIZERDLAAN B.V. | | |
| (NETHERLANDS) (NETHERLANDS) | | |
| | | |
| | | -----
| HOLLAND | |-------------------------- |
|---- BELEGGINGSGROEP B.V. | | | |
(NETHERLANDS) | |----------------- | |
| -------| | | |
| | | | | |
| | | | | |
F.A. KNIGHT | MACALISTER & LONDON AND | HARTFORD FIRE
& SON N.V. | DUNDAS, LTD. EDINBURGH | INTERNATIONAL
(BELGIUM) | (SCOTLAND) TRUSTEES, LTD. | SERVICIOS
| (U.K.) | (SPAIN)
------------------------- -----------
| | |
FENCOURT QUOTEL LONDON AND
PRINTERS, LTD. INSURANCE EDINBURGH
(U.K.) SYSTEMS, LTD. SERVICES, LTD.
(U.K.) (U.K.)
|
EUROSURE
INSURANCE
MARKETING, LTD.
(U.K.)
</TABLE>
