<PAGE>
As filed with the Securities and Exchange Commission on April 11, 2000.
File No. 333-65511
811-09047
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 1 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: Separate Account Two
B. Name of depositor: Hart Life Insurance Company (formerly named Alpine 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
Hart 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. Hart Life Insurance Company; How We Sell Our Policy
5. The Separate Account
6. The Separate Account
7. Not required by Form S-6
8. Not required by Form S-6
9. Legal Proceedings
10. Summary; The Funds; Application for a Policy; Policy Benefits and Rights;
Other Matters - Voting Rights, Dividends
11. Summary; The Funds
12. Summary; The Funds
13. Deductions and Charges; How We Sell Our Policy; Federal Tax Considerations
14. Application
15. Allocation of Premiums
16. The Funds; Allocation of Premiums
17. Summary; Policy Benefits and Rights - Account Value and Amount Payable on
Surrender of the Policy, Cancellation and Exchange Rights
<PAGE>
18. The Funds; Deduction and Charges; Federal Tax Considerations
19. Other Matters - Statements
20. Not applicable
21. Policy Benefits and Rights - Policy Loans
22. Not applicable
23. Safekeeping of Separate Account Assets
24. Other Matters - Assignment
25. Hart Life Insurance Company
26. Not applicable
27. Hart Life Insurance Company
28. Hart Life Insurance Company
29. Hart Life Insurance Company
30. Not applicable
31. Not applicable
32. Not applicable
33. Not applicable
34. Not applicable
35. How We Sell Our Policy
36. Not required by Form S-6
37. Not applicable
38. How We Sell Our Policy
<PAGE>
39. Hart Life Insurance Company; How We Sell Our Policy
40. Not applicable
41. Hart Life Insurance Company; How We Sell Our Policy
42. Not applicable
43. Not applicable
44. Allocation of Premiums
45. Not applicable
46. Policy Benefits and Rights - Account Value
47. The Funds
48. Cover Page; Hart Life Insurance Company
49. Not applicable
50. The Separate Account
51. Summary; Hart Life Insurance Company; Your Policy; Policy Benefits and
Rights; Other Matters - Beneficiary
52. The Funds, Investment Adviser
53. Federal Tax Considerations
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>
PART I
<PAGE>
6
HART LIFE INSURANCE COMPANY
SEPARATE ACCOUNT TWO
P. O. BOX 2999 Modified Single Premium
HARTFORD, CT 06104-2999 Variable Life Insurance Policies
TELEPHONE (800) 862-6668
This Prospectus describes information you should know before you purchase our
variable life insurance policy. Please read it carefully.
The variable life insurance policy is a contract between you and Hart Life
Insurance Company where you agree to make payments to us and we agree to pay
a death benefit to your beneficiaries. It is a modified single premium
variable life insurance policy. It is:
X Modified single premium, because you pay one large single payment, and
under certain circumstances you may add payments.
X Variable, because the value of your life insurance policy will fluctuate
with the performance of the stock market.
After purchase, you allocate your payments to "sub-accounts" or subdivisions
of our separate account, an account that keeps your life insurance policy
assets separate from our company assets. These sub-accounts then purchase
shares of mutual funds set up exclusively for variable annuity or variable
life insurance products. These funds are not the same mutual funds that you
buy through your stockbroker or through a retail mutual fund, but they may
have similar investment strategies and the same portfolio managers as retail
mutual funds. This life insurance policy offers you funds with investment
strategies ranging from conservative to aggressive and you may pick those
funds that meet your investment style. The sub-accounts and the funds are
listed below:
- - Hartford Bond HLS Fund Sub-Account which purchases shares of Class IA of
Hartford Bond HLS Fund, Inc.
- - Hartford High Yield HLS Fund Sub-Account which purchases shares of Class IA
of Hartford High Yield HLS Fund of Hartford Series Fund, Inc.
<PAGE>
7
- - Hartford Index HLS Sub-Account which purchases shares of Class IA of
Hartford Index HLS Fund, Inc.
- - Hartford Money Market HLS Fund Sub-Account which purchases shares of Class
IA of Hartford Money Market HLS Fund, Inc.
- - Hartford Mortgage Securities HLS Fund Sub-Account that purchases shares of
Class IA of Hartford Mortgage Securities HLS Fund, Inc.
If you decide to buy this life insurance policy, you should keep this
prospectus for your records. Although we file the 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
Commissions' website (HTTP://WWW.SEC.GOV).
This life insurance policy IS NOT:
- - a bank deposit or obligation
- - federally insured
- - endorsed by any bank or governmental agency
- - available for sale in all states
Prospectus Dated: May 1, 2000
<PAGE>
8
TABLE OF CONTENTS
-----------------
PAGE
----
SPECIAL TERMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
ABOUT US . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Hart Life Insurance Company. . . . . . . . . . . . . . . . . . . . . . . 16
The Separate Account . . . . . . . . . . . . . . . . . . . . . . . . . . 16
The Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
YOUR POLICY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Allocation of Premiums . . . . . . . . . . . . . . . . . . . . . . . . . 20
Accumulation Unit Values . . . . . . . . . . . . . . . . . . . . . . . . 21
DEDUCTIONS AND CHARGES . . . . . . . . . . . . . . . . . . . . . . . . . 21
Chart of Deduction and Charges . . . . . . . . . . . . . . . . . . . . . 22
Cost of Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Administrative Charge. . . . . . . . . . . . . . . . . . . . . . . . . . 24
Annual Maintenance Fee . . . . . . . . . . . . . . . . . . . . . . . . . 24
Surrender Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Your Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Option 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Option 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Other Deductions or Charges. . . . . . . . . . . . . . . . . . . . . . . 27
POLICY BENEFITS AND RIGHTS . . . . . . . . . . . . . . . . . . . . . . . 27
Death Benefit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Account Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Transfer of Account Value. . . . . . . . . . . . . . . . . . . . . . . . 28
Policy Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Amount Payable on Surrender of the Policy. . . . . . . . . . . . . . . . 30
Partial Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Benefits at Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Lapse and Reinstatement. . . . . . . . . . . . . . . . . . . . . . . . . 31
Cancellation and Exchange Rights . . . . . . . . . . . . . . . . . . . . 31
Suspension of Valuation, Payments and Transfers . . . . . . . . . . . . 32
LAST SURVIVOR POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . 32
OTHER MATTERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Voting Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Limit on Right to Contest. . . . . . . . . . . . . . . . . . . . . . . . 34
Misstatement as to Age and Sex . . . . . . . . . . . . . . . . . . . . . 34
Settlement Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . 34
Beneficiary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
<PAGE>
9
Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
EXECUTIVE OFFICERS AND DIRECTORS . . . . . . . . . . . . . . . . . . . . 37
HOW WE SELL OUR POLICY . . . . . . . . . . . . . . . . . . . . . . . . . 39
SAFEKEEPING OF THE SEPARATE ACCOUNT'S ASSETS . . . . . . . . . . . . . . 40
FEDERAL TAX CONSIDERATIONS . . . . . . . . . . . . . . . . . . . . . . . 41
General. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Taxation of Hartford and the Separate Account. . . . . . . . . . . . . . 41
Income Taxation of Policy Benefits . . . . . . . . . . . . . . . . . . . 41
Last Survivor Policies . . . . . . . . . . . . . . . . . . . . . . . . . 42
Modified Endowment Policies. . . . . . . . . . . . . . . . . . . . . . . 42
Estate and Generation Skipping Taxes . . . . . . . . . . . . . . . . . . 43
Diversification Requirements . . . . . . . . . . . . . . . . . . . . . . 43
Ownership of the Assets in the Separate Account. . . . . . . . . . . . . 44
Tax Deferral During Accumulation Period . . . . . . . . . . . . . . . . 45
Life Insurance Purchased for Use in Split Dollar Arrangements. . . . . . 45
Federal Income Tax Withholding . . . . . . . . . . . . . . . . . . . . . 46
Non-Individual Ownership of Policies . . . . . . . . . . . . . . . . . . 46
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Life Insurance Purchases by Nonresident Aliens and Foreign Corporations. 46
LEGAL PROCEEDINGS. . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
LEGAL MATTERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
EXPERTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
REGISTRATION STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . 48
APPENDIX A -- SPECIAL INFORMATION FOR POLICIES PURCHASED IN NEW YORK . . 49
APPENDIX B -- ILLUSTRATIONS OF BENEFITS. . . . . . . . . . . . . . . . . 52
<PAGE>
10
SPECIAL TERMS
-------------
As used in this Prospectus, the following terms have the indicated meanings:
ACCOUNT VALUE: The current value of the Sub-Accounts plus the value of the
Loan Account under the Policy.
ACCUMULATION UNIT: A unit of measure we use to calculate the value of a
Sub-Account.
ANNUAL WITHDRAWAL AMOUNT: The amount that can be withdrawn in any Policy
Year before we charge you a surrender charge.
ANNUITY UNIT: A unit of measure we use to calculate the amount of annuity
payments.
ATTAINED AGE: The Issue Age plus the number of fully completed Policy Years.
CASH SURRENDER VALUE: The Cash Value less all Indebtedness.
CASH VALUE: The Account Value less any Surrender Charge and any Unamortized
Tax charge due upon surrender.
CODE: The Internal Revenue Code of 1986, as amended.
COVERAGE AMOUNT: The Death Benefit less the Account Value.
DEATH BENEFIT: The greater of (1) the Face Amount specified in the Policy or
(2) the Account Value on the date of death multiplied by a stated percentage
as specified in the Policy.
DEATH PROCEEDS: The amount that Hart Life will pay on the death of the Insured.
This equals the Death Benefit less any Indebtedness.
DEDUCTION AMOUNT: A deduction on the Policy Date and on each Monthly
Activity Date for the cost of insurance, Tax Expense charges under Option 1,
an administrative charge and a mortality and expense risk charge.
FACE AMOUNT: On the Policy Date, the Face Amount is the amount shown on the
Policy's Specifications page. Thereafter, the Face Amount is reduced in
proportion to any partial surrenders.
FUNDS: The registered management investment companies in which assets of the
Separate Account may be invested.
GUIDELINE SINGLE PREMIUM: The "Guideline Single Premium" as defined in
Section 7702 of the Code.
<PAGE>
11
HART OR US: Hart Life Insurance Company.
HOME OFFICE: Currently located at 200 Hopmeadow Street, Simsbury,
Connecticut; however, the mailing address is P.O. Box 2999, Hartford,
Connecticut 06104-2999.
INDEBTEDNESS: All monies owed to Hart Life by the Policy Owner, including all
outstanding loans on the Policy, any interest due or accrued and any unpaid
Deduction Amount or annual maintenance fee arising during a grace period.
INSURED: The person on whose life the Policy is issued.
ISSUE AGE: As of the Policy Date, the Insured's age on Insured's last
birthday.
LOAN ACCOUNT: An account in Hart Life's General Account, established for any
amounts transferred from the Sub-Accounts for requested loans. The Loan
Account credits a fixed rate of interest that is not based on the investment
experience of the Separate Account.
MONTHLY ACTIVITY DATE: The day of each month on which any deductions or
charges are subtracted from the Account Value of the Policy. Monthly
Activity Dates occur on the same day of the month as the Policy Date.
POLICY: The Policy is the individual Policy and any endorsements or riders.
If you are enrolled under a group Policy, the Policy is a certificate.
POLICY ANNIVERSARY: The anniversary of the Policy Date.
POLICY DATE: The date from which Policy Anniversaries and Policy Years are
measured.
POLICY LOAN RATE: The interest rate charged on Policy loans.
POLICY OWNER OR YOU: The owner of the Policy
POLICY OWNER OPTIONS: You may elect one of two options offered by Hart Life to
pay Mortality and Expense Risk charges and certain tax related charges. You
must elect the option at the time the Policy is issued and the option cannot
be changed once the Policy is issued. The following options are available:
OPTION 1: ASSET BASED CHARGES: Under this option you elect to pay a
Mortality and Expense Risk charge that is deducted monthly from Account
Value at an annual rate of .90% in Policy Years 1 through 10 and at an
annual rate of .50% in Policy Years 11 and beyond; a Tax Expense charge
that is also deducted monthly at an annual rate of .40% for the first 10
Policy Years and an Unamortized Tax charge that is imposed during the
first 9 Policy Years on surrenders or partial surrenders according to the
rate set forth in "Deductions and Charges- Policy Owner Options -
Unamortized Tax Charge." See "Deductions and Charges - Policy Owner
Options."
<PAGE>
12
OPTION 2: FRONTED CHARGES: Under this option you elect to pay a Mortality
and Expense Risk charge that is deducted monthly from Account Value at an
annual rate of .65% in Policy Years 1 through 10 and an annual rate of
.50% in Policy Years 11 and beyond and a Tax Expense charge that is
deducted from any Premium payment in all Policy Years at an annual rate
of 4.0%. This option is not available in all states. See "Deductions and
Charges - Policy Owner Options."
POLICY YEAR: The twelve months between Policy Anniversaries.
SEPARATE ACCOUNT: For this life insurance policy, the separate acccount is
Alpine Life Insurance Company Separate Account Two.
SUB-ACCOUNT: The subdivisions of the Separate Account.
SURRENDER CHARGE: A charge which may be assessed upon surrender of the Policy
or partial surrenders in excess of the Annual Withdrawal Amount.
VALUATION DAY: The date on which the Sub-Account is valued. The Valuation
Day is 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.
<PAGE>
13
SUMMARY
-------
HOW DO I PURCHASE THE LIFE INSURANCE POLICY?
You apply for life insurance by completing an application. If you are
between the age of 35 and 80, you may be eligible for simplified underwriting
without a medical examination. If you are accepted, you pay one large single
premium. Under certain circumstances you may be able to add additional
premiums.
For a limited time, at least 10 days after you receive your life insurance
policy, you may cancel it without paying a surrender charge. A longer period
is provided in certain cases.
WHAT IS THE DEATH BENEFIT?
You designate a beneficiary who will receive the death benefit if you die
while the policy is in force. The policy pays a minimum death benefit, called
the "face amount." The actual death benefit may be larger than the face
amount if the underlying investments of the policy perform well.
DOES THE POLICY HAVE CASH VALUES?
Yes. The value of your life insurance policy will fluctuate with the
performance of the underlying investments. You may transfer amounts among
your investment options, subject to restrictions.
WHAT TYPE OF SURRENDER CHARGE WILL I PAY?
You don't pay a sales charge when you purchase your policy. We may charge
you deferred sales charge when you terminate or withdraw amounts invested in
your policy. We assess a surrender charge on amounts withdrawn that exceed
10% of the total amounts you have paid into your policy if these amounts have
been in your policy for less than seven years. The surrender charge is
applied to amounts withdrawn that exceed 10% of the total amounts paid in and
will depend on the length of time the payment you made has been in your
policy. If the amount you paid has been in your policy:
X For less than three years, the charge is 7.5%.
X For more than three years and less than five years, the charge is 6%.
X For more than five years and less than seven years, the charge is 4%.
X For more than seven years and less than nine years, the charge is 2%
You won't be charged a surrender charge on:
X Payments that have been in your policy for more than nine years.
X distributions made due to death
<PAGE>
14
X most payments we make to you as part of an annuity option
See "Surrender Charge" for a complete description of how sales charges are
assessed.
WHAT INSURANCE CHARGES ARE ASSESSED UNDER THE POLICY?
We will deduct an amount from your policy each month to cover certain
charges. These charges include a cost of insurance charge, a tax expense
charge under Option 1, an administrative charge and a mortality and expense
risk charge. If your policy is worth less than $50,000, or if you terminate
your policy, we will deduct an annual maintenance fee of $30.
You may choose to pay these charges under one of two options. Once chosen,
you cannot change your option:
UNDER OPTION 1:
X We will deduct a mortality and expense risk charge each month at an annual
rate of .90% during the first 10 years of your policy, and thereafter at
an annual rate of .50%.
X We will deduct a tax expense charge each month at an annual rate of .40%
during the first 10 years of your policy.
X We will deduct an unamortized tax charge during the first 9 years on
withdrawals, according to a schedule of rates described in "Deductions
and Charges- Policy Owner Options - Unamortized Tax Charge."
UNDER OPTION 2: (May not be available in all states)
X We will deduct a mortality and expense risk charge each month at an annual
rate of .65% during the first 10 years of your policy, and thereafter at
an annual rate of .50%.
X We will deduct a tax expense charge from your premium at an annual rate of
4.0%.
WHAT FEES DO I PAY TO THE UNDERLYING INVESTMENT PORTFOLIOS?
ANNUAL FUND OPERATING EXPENSES
(as a percentage of net assets)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Management Other Expenses Total Fund
Fees (before any (before any expense Operating
fee waivers) reimbursements) Expenses
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Hartford Bond HLS Fund 0.49% 0.03% 0.52%
- ----------------------------------------------------------------------------------------------------------------
Hartford High Yield HLS Fund 0.66% 0.06% 0.72%
- ----------------------------------------------------------------------------------------------------------------
<PAGE>
Hartford Index HLS Fund 0.40% 0.03% 0.43%
- ----------------------------------------------------------------------------------------------------------------
Hartford Money Market HLS Fund 0.45% 0.02% 0.47%
- ----------------------------------------------------------------------------------------------------------------
Hartford Mortgage Securities HLS Fund 0.45% 0.03% 0.48%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
CAN I TAKE OUT ANY OF MY MONEY?
X You may withdraw all or part of amounts available in your policy at any
time.
X Each year you may withdraw up to 10% of your payments without having to pay
a surrender
<PAGE>
16
charge.
You may have to pay tax on the money you take out and, if you take money out
before you are 59 1/2 you may have to pay a tax penalty.
You may choose to convert your surrender into one of our payment options,
without a surrender charge.
MAY I TAKE A LOAN ON THE POLICY?
Yes. The policy provides for two types of cash loans. The policy secures
the loans. Loans may not exceed 90% of the policy's cash value.
IS IT POSSIBLE FOR THE POLICY TO TERMINATE?
Your policy could terminate if the value of the policy becomes too low to
support the policy's monthly charges and fees. If this occurs, Alpine will
notify you in writing. You will then have a 61-day grace period in order for
you to pay additional amounts to prevent the policy from terminating.
WHAT ABOUT TAXES?
Under current tax law, your beneficiaries will receive the death benefit free
of federal income tax. However, you will subject to income tax if you receive
any loans, withdrawals or other amounts from the policy, and you may be
subject to a 10% penalty tax.
ABOUT US
--------
HART LIFE INSURANCE COMPANY
HART LIFE INSURANCE COMPANY ("Hart Life") (formerly known as Alpine Life
Insurance Company) is a stock life insurance company engaged in the business
of writing life insurance in all states of the United States and the District
of Columbia. Hart Life was originally incorporated under the laws of New
Jersey on July 9, 1965. Hart Life will be Redomesticated to the State of
Connecticut. Its offices are located in Simsbury, Connecticut; however, its
mailing address is P.O. Box 5085, Hartford, CT 06104-5085. Hart Life is
ultimately controlled by Hartford Financial Services Group, Inc., one of the
largest financial service providers in the United States.
THE SEPARATE ACCOUNT
Separate Account Two ("Separate Account") is a separate account of Hart Life
established on September 1, 1998 pursuant to the insurance laws of the State
of Connecticut and it is organized as
<PAGE>
17
a unit investment trust registered with the Securities and Exchange
Commission under the Investment Company Act of 1940. The Separate Account
meets the definition of "separate account" under federal securities law.
Under Connecticut law, the assets of the Separate Account are held
exclusively for the benefit of Policy Owners and persons entitled to payments
under the Policies. The assets of the Separate Account are not chargeable
with liabilities arising out of any other business which Hart Life may conduct.
THE FUNDS
Hartford HLS Funds are sponsored and administered by Hartford Life Insurance
Company. HL Investment Advisors, LLC ("HL Advisors") serves as the investment
adviser to each of the Hartford HLS Funds. Wellington Management Company, LLP
("Wellington Management") and Hartford Investment Management Company ("HIMCO")
serve as sub-investment advisors and provide day to day investment services.
Each Hartford HLS Fund, except for Hartford High Yield HLS Fund, is a separate
Maryland corporation registered with the Securities and Exchange Commission as
an open-end management investment company. Hartford High Yield HLS Fund is a
diversified series of Hartford Series Fund, Inc., a Maryland corporation, also
registered with the Securities and Exchange Commission as an open-end management
investment company. The shares of each Fund have been divided into Class IA and
Class IB. Only Class IA shares are available in this product.
We do not guarantee the investment results of any of the underlying Funds. Since
each underlying Fund has different investment objectives, each is subject to
different risks. These risks and the Funds' expenses are more fully described in
the accompanying Funds' prospectus and Statement of Additional Information. The
Funds' prospectus should be read in conjunction with this Prospectus before
investing.
The Funds may not be available in all states.
The investment goals of each of the Funds are as follows:
HARTFORD BOND HLS FUND - 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." Sub-advised by HIMCO.
<PAGE>
18
HARTFORD HIGH YIELD HLS FUND - Seeks high current income by investing in
non-investment grade fixed-income securities. Growth of capital is a secondary
objective. 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
High Yield HLS Fund." Sub-advised by HIMCO.
HARTFORD INDEX HLS FUND - Seeks to provide investment results that approximate
the price and yield performance of publicly traded common stocks in the
aggregate, as represented by the Standard & Poor's 500 Composite Stock Price
Index.* Sub-advised by HIMCO.
HARTFORD MONEY MARKET HLS FUND - Seeks maximum current income consistent with
liquidity and preservation of capital. Sub-advised by HIMCO.
<PAGE>
19
HARTFORD MORTGAGE SECURITIES HLS FUND - Seeks maximum current income consistent
with safety of principal and maintenance of liquidity by investing primarily in
mortgage-related securities. Sub-advised by HIMCO.
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.
*"STANDARD & POOR'S," "S&P-REGISTERED TRADEMARK-," "S&P 500-REGISTERED
TRADEMARK-," "STANDARD & POOR'S 500," AND "500" ARE TRADEMARKS OF THE
MCGRAW-HILL COMPANIES, INC. AND HAVE BEEN LICENSED FOR USE BY HARTFORD. THE
INDEX FUND IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY STANDARD & POOR'S
AND STANDARD & POOR'S MAKES NO REPRESENTATION REGARDING THE ADVISABILITY OF
INVESTING IN THE INDEX FUND.
YOUR POLICY
-----------
APPLICATION
If you wish to purchase a Policy, you must submit an application to Hart Life.
A Policy will be issued only on the lives of Insureds age 90 and under who
supply evidence of insurability satisfactory to Hart Life. Acceptance is
subject to Hart Life's underwriting rules and Hart Life reserves the right to
reject an application for any reason. IF AN APPLICATION FOR A POLICY IS
REJECTED, THEN
<PAGE>
20
YOUR INITIAL PREMIUM WILL BE RETURNED ALONG WITH AN ADDITIONAL AMOUNT FOR
INTEREST, BASED ON THE CURRENT RATE BEING CREDITED BY HART LIFE. No change in
the terms or conditions of a Policy will be made without your consent.
The Policy will be effective on the Policy Date only after Hart Life has
received all outstanding delivery requirements and received the initial
premium. The Policy Date is the date used to determine all future cyclical
transactions on the Policy, E.G., Monthly Activity Date, Policy Months and
Policy Years. The Policy Date may be prior to, or the same as, the date the
Policy is issued ("Issue Date").
If the Coverage Amount is over then current limits established by Hart Life,
the initial payment will not be accepted with the application. In other
cases where Hart Life receives the initial payment with the application, Hart
Life will provide fixed conditional insurance during underwriting according
to the terms of conditional receipt established by Hart Life. The fixed
conditional insurance will be the insurance applied for, up to a maximum that
varies by age. If no fixed conditional insurance was in effect, on Policy
delivery, Hart Life will require a sufficient payment to place the insurance
in force.
PREMIUMS
The Policy permits you to pay a large single premium and, subject to
restrictions, additional premiums. You may choose a minimum initial premium
of 80%, 90% or 100% of the Guideline Single Premium (based on the Face
Amount). Under current underwriting rules, which are subject to change,
applicants between ages 35 and 80 may be eligible for simplified underwriting
without a medical examination if they meet simplified underwriting standards
as evidenced in their responses in the application. For applicants who are
below age 35 or above age 80, or who do not meet simplified underwriting
eligibility, full underwriting applies, except that substandard underwriting
applies only in those cases that represent substandard risks according to
customary underwriting guidelines.
Additional premiums are allowed if they do not cause the Policy to fail to
meet the definition of a life insurance Policy under Section 7702 of the
Code. The amount and frequency of additional premium payments will affect
the Cash Value and the amount and duration of insurance. Hart Life may
require evidence of insurability for any additional premiums which increase
the Coverage Amount. Generally, the minimum initial premium Hart Life will
accept is $10,000. Hart Life may accept less than $10,000 under certain
circumstances. Premium which does not meet the tax qualification guidelines
for life insurance under the Code will not be applied to the Policy.
ALLOCATION OF PREMIUMS
Within three business days of receipt of a completed application and the
initial premium payment at Hart Life's Home Office, Hart Life will allocate
the entire premium payment to the Hartford Money Market Sub-Account. After
the expiration of the right to cancel period, the Account Value in Hartford
Money Market Sub-Account will be allocated among the Funds in whole
percentages to purchase Accumulation Units in the applicable Sub-Accounts as
you direct in the application.
<PAGE>
21
Premiums received on or after the expiration of the right to cancel period
will be allocated among the Sub-Accounts to purchase Accumulation Units in
such Sub-Accounts as directed by you or, in the absence of directions, as
specified in the original application. The number of Accumulation Units in
each Sub-Account to be credited to a Policy (including the initial allocation
to Hartford Money Market Sub-Account) will be determined first by multiplying
the premium payment by the percentage to be allocated to each Fund to
determine the portion to be invested in the Sub-Account. Each portion to be
invested in each Sub-Account is then divided by the Accumulation Unit Value
of that particular Sub-Account next computed after receipt of the premium
payment.
ACCUMULATION UNIT VALUES
The Accumulation Unit Value for each Sub-Account will vary to reflect the
investment experience of the applicable Fund and will be determined on each
Valuation Day by multiplying the Accumulation Unit Value of the particular
Sub-Account on the preceding Valuation Day by a "Net Investment Factor" for
that Sub-Account for the Valuation Period then ended. The Net Investment
Factor for each Sub-Account is the net asset value per share of the
corresponding Fund at the end of the Valuation Period (plus the per share
dividends or capital gains by that Fund if the ex-dividend date occurs in the
Valuation Period then ended) divided by the net asset value per share of the
corresponding Fund at the beginning of the Valuation Period. Refer to the
Funds' prospectuses accompanying this Prospectus for a description of how the
assets of each Fund are valued, since such determination has a direct bearing
on the Accumulation Unit Value of the Sub-Account and therefore the Account
Value of a Policy. See, also, "Policy Benefits and Rights -- Account Value."
All valuations in connection with a Policy, E.G., with respect to determining
Account Value and Cash Surrender Value and in connection with Policy Loans,
or calculation of Death Benefits, or with respect to determining the number
of Accumulation Units to be credited to a Policy with each premium, other
than the initial premium, will be made on the date the request or payment is
received by Hart Life at its Home Office if such date is a Valuation Day;
otherwise such determination will be made on the next succeeding date which
is a Valuation Day.
DEDUCTIONS AND CHARGES
----------------------
The deduction or charges associated with this Policy are subtracted,
depending on the type of deduction or charge, from Premium payments as they
are made, upon surrender or partial surrender of the Policy, on the Policy
Anniversary Date or on a monthly pro rated basis from each Sub-Account
("Deduction Amount").
Deductions are taken from Premium payments before allocations to the
Sub-Accounts are made. Monthly Deduction Amounts are subtracted on the
Policy Date and on each Monthly Activity Date after the Policy Date to cover
charges and expenses incurred in connection with a Policy. Each Deduction
Amount will be subtracted pro rata from each Sub-Account such that the
proportion of Account Value of the Policy attributable to each Sub-Account
remains the same before and after the
<PAGE>
22
deduction. The Deduction Amount will vary from month to month. If the Cash
Surrender Value is not sufficient to cover a Deduction Amount due on any
Monthly Activity Date, the Policy may lapse. See "Policy Benefits and Rights
- -- Lapse and Reinstatement."
The Policy Owner may elect one of two options offered by Hart Life to pay the
Mortality and Expense Risk charge, the Tax Expense charge and any Unamortized
Tax charge. Once selected, the option may not be changed. Option 2 may not
be available in all states.
The following chart illustrates the charges and deductions associated with
this Policy. For a more detailed discussion see the descriptions below:
- -------------------------------------------------------------------------------
DEDUCTION OR DEDUCTED FROM ALL WHEN DEDUCTION IS AMOUNT DEDUCTED
CHARGE POLICIES MADE
- -------------------------------------------------------------------------------
Cost of Insurance Yes Monthly Individualized
depending on age,
sex and other
factors
- -------------------------------------------------------------------------------
Administrative Yes Monthly .25% of amounts
Charge allocated to the
Separate Account
- -------------------------------------------------------------------------------
Annual Maintenance Only Policies with On the Policy $30.00
Fee an Account Value Anniversary Date
of less than or upon surrender
$50,000 on the of the Policy
Policy Anniversary
Date or date of
surrender
- -------------------------------------------------------------------------------
Surrender Charge Yes Upon surrender or A percentage of
partial surrender the amount
of the Policy surrendered,
depending on the
Policy Year, which
is attributable to
premiums paid
- -------------------------------------------------------------------------------
Tax Expense Charge Yes Under Option 1: Under Option 1:
Monthly .40% of Account
Value for Policy
Under Option 2: Years 1-10
Receipt of premium
payment Under Option 2: 4%
of each premium
payment in all
Policy Years
- -------------------------------------------------------------------------------
<PAGE>
23
- -------------------------------------------------------------------------------
Mortality and Yes Monthly Under Option 1:
Expense Risk .90% of Account
Charge Value in Policy
Years 1-10 and
.50% for Policy
Years 11 and
beyond.
Under Option 2:
.65% of Account
Value in Policy
Years 1-10 and
.50% for Policy
years 11 and
beyond
- -------------------------------------------------------------------------------
Unamortized Tax No, only under Upon surrender or A percentage of
Charge Option 1 partial surrender the Account Value
of the Policy depending on the
Policy Year the
surrender takes
place.
- -------------------------------------------------------------------------------
COST OF INSURANCE CHARGE: The cost of insurance charge covers Hart Life's
anticipated mortality costs for standard and substandard risks. Current cost
of insurance rates are lower after the tenth Policy Year and are based on
whether 100%, 90% or 80% of the Guideline Single Premium has been paid at
issue. The current cost of insurance charge will not exceed the guaranteed
cost of insurance charge. This charge is a guaranteed maximum monthly rate
multiplied by the Coverage Amount on the Policy Date or any Monthly Activity
Date. For policies eligible for simplified underwriting, standard risks have
a guaranteed cost of insurance rate of 125% of the 1980 Commissioners
Standard Ordinary Smoker/Non-Smoker Mortality Table through age 90, grading
down to 100% of the 1980 Commissioners Standard Ordinary Smoker/Non-Smoker
Mortality Table at age 100 (age last birthday). For policies not eligible
for simplified underwriting, standard risks have a guaranteed cost of
insurance of 100% of the 1980 Commissioners Standard Ordinary
Smoker/Non-Smoker Mortality Table. (Unisex rates may be required in some
states.) A table of guaranteed cost of insurance rates per $1,000 will be
included in each Policy; however, Hart Life reserves the right to use rates
less than those shown in the Table. Substandard risks will be charged at a
higher cost of insurance rate that will not exceed rates based on a multiple
of the 1980 Commissioners Standard Ordinary Smoker/Non-Smoker Mortality Table
(age last birthday). The multiple will be based on the Insured's substandard
rating.
The Coverage Amount is first set on the Policy Date and then on each Monthly
Activity Date. On such days, it is the Death Benefit less the Account Value
subject to a Minimum Coverage Amount. The Coverage Amount remains level
between the Monthly Activity Dates. The Coverage Amount may be adjusted to
continue to qualify the Policies as life insurance Policies under the current
federal tax law. Under that law, the Minimum Coverage Amount is a stated
percentage of the Account Value of the Policy determined on each Monthly
Activity Date. The percentages vary according to the attained age of the
Insured.
<PAGE>
24
EXAMPLE:
Face Amount = $100,000
Account Value on the Monthly Activity Date = $70,000
Insured's attained age = 60
Minimum Coverage Amount percentage for age 60 = 30%
On the Monthly Activity Date, the Coverage Amount is $30,000. This is
calculated by subtracting the Account Value on the Monthly Activity Date
($70,000) from the Face Amount ($100,000), subject to a possible Minimum
Coverage Amount adjustment. This Minimum Coverage Amount is determined by
taking a percentage of the Account Value on the Monthly Activity Date. In
this case, the Minimum Coverage Amount is $21,000 (30% of $70,000). Since
$21,000 is less than the Face Amount less the Account Value ($30,000), no
adjustment is necessary. Therefore, the Coverage Amount will be $30,000.
Assume that the Account Value in the above example was $90,000. The Minimum
Coverage Amount would be $27,000 (30% of $90,000). Since this is greater
than the Face Amount less the Account Value ($10,000), the Coverage Amount
for the Policy Month is $27,000. (For an explanation of the Death Benefit,
see "Policy Benefits and Rights -- Death Benefit.")
Because the Account Value and, as a result, the Coverage Amount under a
Policy may vary from month to month, the cost of insurance charge may also
vary on each Monthly Activity Date.
ADMINISTRATIVE CHARGE: Hart Life will deduct monthly from the Account Value
attributable to the Separate Account an administrative charge equal to an
annual rate of 0.25%. This charge compensates Hart Life for administrative
expenses incurred in the administration of the Separate Account and the
Policies.
ANNUAL MAINTENANCE FEE
If the Account Value on a Policy Anniversary or on the date the Policy is
surrendered is less than $50,000, Hart Life will deduct on such date an annual
maintenance fee of $30. This fee will help reimburse Hart Life for
administrative and maintenance costs of the Policies. The sum of the monthly
administrative charges and the annual maintenance fee will not exceed the
cost Hart Life incurs in providing administrative services under the Policies.
Hart Life reserves the right to waive the Annual Maintenance Fee under certain
conditions.
SURRENDER CHARGE
Upon surrender of the Policy or partial surrenders in excess of the Annual
Withdrawal Amount, a Surrender Charge may be assessed. In Policy Years 1
through 3, this charge is 7.5% of surrendered Account Value attributable to
premiums paid. In Policy Years 4 through 5, this charge is 6%. In Policy
Years 6 through 7, this charge is 4%. In Policy Years 8 through 9, this
charge is 2%. After
<PAGE>
25
the ninth Policy Year, there is no charge.
In determining the Surrender Charge and any Unamortized Tax charge discussed
below, any surrender or partial surrender during the first ten Policy Years
will be deemed first from premiums paid and then from earnings. If an amount
equal to all premiums paid has been withdrawn, no charge will be assessed on
a surrender of the remaining Account Value.
The Surrender Charge is imposed to cover a portion of the sales expense
incurred by Hart Life in distributing the Policies. This expense includes
agents commissions, advertising and the printing of prospectuses. See
"Policy Benefits and Rights -- Amount Payable on Surrender of the Policy."
YOUR OPTIONS
In addition to the deductions and charges described above, you, at the time
the Policy is issued, will elect one of two options described below to pay
charges relating to certain taxes and mortality and expense risk charges.
The option you select may affect Policy Value.
OPTION 1: ASSET-BASED CHARGES: Under this payment option, you will pay:
MORTALITY AND EXPENSE RISK CHARGE: Hart Life will deduct monthly from the
Account Value attributable to the Separate Account for Policy Years 1 through
10 a charge equal to an annual rate of 0.90% for the mortality risks and
expense risks Hart Life assumes in relation to the variable portion of the
Policies. In Policy Years 11 and beyond, the charge drops to an annual rate
of 0.50% for the mortality risks and expense risks Hart Life assumes in
relation to the variable portion of the Policies. The mortality risk assumed
is that the cost of insurance charges specified in the Policy will be
insufficient to meet claims. Hart Life also assumes a risk that the Face
Amount (the minimum Death Benefit) will exceed the Coverage Amount on the
date of death plus the Account Value on the date Hart Life receives written
notice of death. The expense risk assumed is that expenses incurred in
issuing and administering the Policies will exceed the administrative charges
set in the Policy. Hart Life may profit from the mortality and expense risk
charge and may use any profits for any proper purpose, including any
difference between the cost it incurs in distributing the Policies and the
proceeds of the Surrender Charge. The mortality and expense risk charge is
deducted while the Policy is in force, including the duration of a payment
option.
TAX EXPENSE CHARGE: Hart Life will deduct monthly from the Account Value a
charge equal to an annual rate of 0.40% for the first ten Policy Years. This
charge compensates Hart Life for premium taxes imposed by various states and
local jurisdictions and for the cost of the capitalization of certain policy
acquisition expenses under Section 848 of the Code. The charge includes a
premium tax deduction of 0.25% and Section 848 costs of 0.15%. The 0.25%
premium tax deduction over ten Policy Years approximates Hart Life's average
expenses for state and local premium taxes (2.5%). Premium taxes vary,
ranging from zero to more than 4.0%. The premium tax deduction is made
whether or not any premium tax applies. The deduction may be higher or lower
than the premium tax imposed. However, Hart Life does not expect to make a
profit from this deduction. The 0.15%
<PAGE>
26
charge helps reimburse Alpine for approximate expenses incurred under Section
848 of the Code.
UNAMORTIZED TAX CHARGE: Under this option, during the first nine Policy
Years, an Unamortized Tax charge will be imposed on surrender or partial
surrenders. The Unamortized Tax charge is shown below, as a percentage of
Account Value, at the end of each Policy Year:
POLICY
YEAR RATE
------ ----
1 2.25%
2 2.00%
3 1.75%
4 1.50%
5 1.25%
6 1.00%
7 0.75%
8 0.50%
9 0.25%
10+ 0.00%
After the ninth Policy Year, no Unamortized Tax charge will be imposed.
OPTION 2: FRONTED CHARGES: Under this option, you will pay:
MORTALITY AND EXPENSE RISK CHARGE: In Policy Years 1 through 10, Hart Life
will deduct monthly from the Account Value attributable to the Separate
Account a charge equal to an annual rate of 0.65% for the mortality risks and
expense risks Hart Life assumes in relation to the variable portion of the
Policies. In Policy Years 11 and beyond, the charge drops to an annual rate
of 0.50%. The mortality risk assumed is that the cost of insurance charges
specified in the Policy will be insufficient to meet claims. Hart Life also
assumes a risk that the Face Amount (the minimum Death Benefit) will exceed
the Coverage Amount on the date of death plus the Account Value on the date
Hart Life receives written notice of death. The expense risk assumed is that
expenses incurred in issuing and administering the Policies will exceed the
administrative charges set in the Policy. Hart Life may profit from the
mortality and expense risk charge and may use any profits for any proper
purpose, including any difference between the cost it incurs in distributing
the Policies and the proceeds of the Surrender Charge. The mortality and
expense risk charge is deducted while the Policy is in force, including the
duration of a payment option.
TAX EXPENSE CHARGE: Hart Life will deduct from Premium payments a tax expense
charge equal to an annual rate of 4.0% for all Policy Years. This charge
compensates Hart Life for premium taxes imposed by various states and local
jurisdictions and for the cost of capitalization of certain policy
acquisition expenses under Section 848 of the Code. The charge includes a
premium tax deduction of 2.5% and a Section 848 cost of 1.5%. The premium
tax deduction approximates Hart Life's average expenses for state and local
premium taxes. Premium taxes vary, ranging from zero to more than
<PAGE>
27
4.0%. The premium tax deduction is made whether or not any premium tax
applies. The deduction may be higher or lower than the premium tax imposed.
However, Hart Life does not expect to make a profit from this deduction. The
0.15% charge helps reimburse Hart Life for approximate expenses incurred under
Section 848 of the Code.
This Option may not be available in all states.
OTHER DEDUCTIONS OR CHARGES
CHARGES AGAINST THE FUNDS
The Separate Account purchases shares of the Funds at net asset value. The
net asset value of the Fund shares reflects investment advisory fees and
administrative expenses already deducted from the assets of the Funds. These
charges are described in the Funds' prospectuses accompanying this Prospectus.
TAXES CHARGED AGAINST THE SEPARATE ACCOUNT
Currently, no charge is made to the Separate Account for federal income taxes
that may be attributable to the Separate Account. Hart Life may, however, make
such a charge in the future. Charges for other taxes, if any, attributable
to the Separate Account may also be made.
POLICY BENEFITS AND RIGHTS
DEATH BENEFIT
While in force, the Policy provides for the payment of the Death Proceeds to
the named beneficiary when the Insured under the Policy dies. The Death
Proceeds payable to the beneficiary equal the Death Benefit less any loans
outstanding. The Death Benefit equals the greater of (1) the Face Amount or
(2) the Account Value multiplied by a specified percentage. The percentages
vary according to the attained age of the Insured and are specified in the
Policy. Therefore, an increase in Account Value may increase the Death
Benefit. However, because the Death Benefit will never be less than the Face
Amount, a decrease in Account Value may decrease the Death Benefit but never
below the Face Amount.
EXAMPLES:
- -----------------------------------------------------------------------------
A B
- -----------------------------------------------------------------------------
Face Amount $100,000 $100,000
- -----------------------------------------------------------------------------
Insured's Age 40 40
- -----------------------------------------------------------------------------
Account Value on Date of Death $46,500 $34,000
- -----------------------------------------------------------------------------
Specified Percentage 250% 250%
- -----------------------------------------------------------------------------
<PAGE>
28
In Example A, the Death Benefit equals $116,250, I.E., the greater of
$100,000 (the Face Amount) or $116,250 (the Account Value at the Date of
Death of $46,500, multiplied by the specified percentage of 250%). This
amount less any outstanding loans constitutes the Death Proceeds which Hart Life
would pay to the beneficiary.
In Example B, the death benefit is $100,000, I.E., the greater of $100,000
(the Face Amount) or $85,000 (the Account Value of $34,000, multiplied by the
specified percentage of 250%).
All or part of the Death Proceeds may be paid in cash or applied under a
"Payment Option." See "Other Matters -- Settlement Provisions."
ACCOUNT VALUE
The Account Value of a Policy will be computed on each Valuation Day. The
Account Value will vary to reflect the investment experience of the Funds,
the value of the Loan Account and the monthly Deduction Amounts. There is no
minimum guaranteed Account Value.
The Account Value of a particular Policy is related to the net asset value of
the Funds to which premiums on the Policy have been allocated. The Account
Value on any Valuation Day is calculated by multiplying the number of
Accumulation Units credited to the Policy in each Sub-Account as of the
Valuation Day by the Accumulation Unit Value of that Sub-Account, and then
summing the result for all the Sub-Accounts credited to the Policy and the
value of the Loan Account. See "The Policy -- Accumulation Unit Values."
TRANSFER OF ACCOUNT VALUE
While the Policy remains in force, and subject to Hart Life's transfer rules
then in effect, the Policy Owner may request that part or all of the Account
Value of a particular Sub-Account be transferred to other Sub-Accounts. Hart
Life reserves the right to restrict the number of such transfers to no more
than 12 per Policy Year, with no two transfers being made on consecutive
Valuation Days. However, there are no restrictions on the number of
transfers at the present time. Transfers may be made by written request or by
calling toll free 1-800-862-6668. Transfers by telephone may be made by the
agent of record or by the attorney-in-fact pursuant to a power of attorney.
Telephone transfers may not be permitted in some states. The policy of Hart
Life and its agents and affiliates is that they will not be responsible for
losses resulting from acting upon telephone requests reasonably believed to
be genuine. Hart Life will employ reasonable procedures to confirm that
instructions communicated by telephone are genuine; otherwise, Hart Life may
be liable for any losses due to unauthorized or fraudulent instructions. The
procedures Hart Life follows for transactions initiated by telephone include
requirements that callers provide certain information for identification
purposes. All transfer instructions by telephone are tape recorded. Hart
Life will send the Policy Owner a confirmation of the transfer within five
days from the date of any instruction. IT IS THE RESPONSIBILITY OF THE POLICY
OWNER TO VERIFY THE ACCURACY OF ALL CONFIRMATIONS OF TRANSFERS AND TO
PROMPTLY ADVISE ALPINE
<PAGE>
29
OF ANY INACCURACIES WITHIN 30 DAYS OF RECEIPT OF THE CONFIRMATION.
Hart Life may modify the right to reallocate Account Value among the
Sub-Accounts if Hart Life determines, in its sole discretion, that the exercise
of that right by one or more Policy Owners is, or would be, to the
disadvantage of other Policy Owners. Any modification could be applied to
transfers to or from some or all of the Sub-Accounts and could include, but
not be limited to, the requirement of a minimum period between each transfer,
not accepting transfer requests of an agent acting under the power of
attorney on behalf of more than one Policy Owner, or limiting the dollar
amount that may be transferred among the Sub-Accounts at one time. These
restrictions may be applied in any manner reasonably designed to prevent any
use of the transfer right that Hart Life considers to be disadvantageous to
other Policy Owners.
As a result of a transfer, the number of Accumulation Units credited to the
Sub-Account from which the transfer is made will be reduced by the number
obtained by dividing the amount transferred by the Accumulation Unit Value of
that Sub-Account on the Valuation Day Hart Life receives the transfer request.
The number of Accumulation Units credited to the Sub-Account to which the
transfer is made will be increased by the number obtained by dividing the
amount transferred by the Accumulation Unit Value of that Sub-Account on the
Valuation Day Hart Life receives the transfer request.
POLICY LOANS
While the Policy is in effect, a Policy Owner may obtain, without the consent
of the beneficiary (provided the designation of beneficiary is not
irrevocable), one or both of two types of cash loans from Hart Life. Both
types of loans are secured by the Policy. The aggregate loans (including the
currently applied for loan) may not exceed, at the time a loan is requested,
90% of the Cash Value.
The loan amount will be transferred pro rata from each Sub-Account
attributable to the Policy (unless the Policy Owner specifies otherwise) to
the Loan Account. The amounts allocated to the Loan Account will earn
interest at a rate of 4% per annum (6% for "Preferred Loans"). The amount of
the Loan Account that equals the difference between the Cash Value and the
total of all premiums paid under the Policy is considered a "Preferred Loan."
For exchanges which take place according to IRC Section 1035(a) that have an
outstanding loan at the time of transfer, the difference between the Account
Value and the total of all premiums paid under the Policy is considered a
Preferred Loan. The loan interest rate that Hart Life will charge on all loans
is 6% per annum. The difference between the value of the Loan Account and
the Indebtedness will be transferred on a pro-rata basis from the
Sub-Accounts to the Loan Account on each Monthly Activity Date. The proceeds
of a loan will be delivered to the Policy Owner within seven business days of
Hart Life's receipt of the loan request.
If the aggregate outstanding loan(s) secured by the Policy exceeds the
Account Value of the Policy less any Surrender Charges and due and unpaid
Deduction Amount, Hart Life will give written notice to the Policy Owner that,
unless Hart Life receives an additional payment within 61 days to reduce the
<PAGE>
30
aggregate outstanding loan(s) secured by the Policy, the Policy may lapse.
All or any part of any loan secured by a Policy may be repaid while the
Policy is still in effect. When loan repayments or interest payments are
made, they will be allocated among the Sub-Account(s) in the same percentage
as premiums are allocated (unless the Policy Owner requests a different
allocation) and an amount equal to the payment will be deducted from the Loan
Account. Any outstanding loan at the end of a grace period must be repaid
before the Policy will be reinstated. See "Policy Benefits and Rights --
Lapse and Reinstatement."
A loan, whether or not repaid, will have a permanent effect on the Account
Value because the investment results of each Sub-Account will apply only to
the amount remaining in such Sub-Accounts. The longer a loan is outstanding,
the greater the effect is likely to be. The effect could be favorable or
unfavorable. If the Sub-Accounts earn more than the annual interest rate for
amounts held in the Loan Account, a Policy Owner's Account Value will not
increase as rapidly as it would have had no loan been made. If the
Sub-Accounts earn less than the annual interest rate for amounts held in the
Loan Account, the Policy Owner's Account Value will be greater than it would
have been had no loan been made. Also, if not repaid, the aggregate
outstanding loan(s) will reduce the Death Proceeds and Cash Surrender Value
otherwise payable.
AMOUNT PAYABLE ON SURRENDER OF THE POLICY
While the Policy is in force, you may elect, without the consent of the
beneficiary (provided the designation of beneficiary is not irrevocable), to
fully surrender the Policy. Upon surrender, you will receive the Cash
Surrender Value determined as of the day Hart Life receives your written
request or the date you request whichever is later. The Cash Surrender Value
equals the Account Value less any Surrender Charges and any Unamortized Tax
charge and all Indebtedness. Hart Life will pay the Cash Surrender Value of
the Policy within seven days of receipt by Hart Life of the written request
or on the effective surrender date you request, whichever is later. The
Policy will terminate on the date of receipt of the written request, or the
date you request the surrender to be effective, whichever is later. For a
discussion of the tax consequences of surrendering the Policy, see "Federal
Tax Considerations."
If you choose to apply the surrender proceeds to a payment option (see "Other
Matters -- Settlement Provisions." ), the Surrender Charge will not be
imposed to the surrender proceeds applied to the option. In other words, the
surrender proceeds will equal the Cash Surrender Value without reduction for
the Surrender Charge. However, any Unamortized Tax charge, if applicable,
will be deducted from the surrender proceeds to be applied. In addition,
amounts withdrawn from payment Option 1, Option 5 or Option 6 will be
subject to any applicable Surrender Charge.
PARTIAL SURRENDERS
While the Policy is in force, you may elect, by written request, to make
partial surrenders from the Cash Surrender Value. The Cash Surrender Value,
after partial surrender, must at least equal
<PAGE>
31
Hart Life's minimum amount rules then in effect; otherwise, the request will be
treated as a request for full surrender. The partial surrender will be
deducted pro rata from each Sub-Account, unless you instruct otherwise. The
Face Amount will be reduced proportionate to the reduction in the Account
Value due to the partial surrender. Partial surrenders in excess of the
Annual Withdrawal Amount will be subject to the Surrender Charge and any
Unamortized Tax charges. See "Deductions and Charges --Surrender Charge,"
and "Deductions and Charges -- Policy Owner Option 1." For a discussion of
the tax consequences of partial surrenders, see "Federal Tax Considerations."
BENEFITS AT MATURITY
If the Insured is living on the "Maturity Date" (the anniversary of the
Policy Date on which the Insured is age 100), on surrender of the Policy to
Hart Life, Hart Life will pay you the Cash Surrender Value. In such case, the
Policy will terminate and Hart Life will have no further obligations under the
Policy. (The Maturity Date may be extended by rider where approved, but see
"Federal Tax Considerations -- Income Taxation of Policy Benefits.")
LAPSE AND REINSTATEMENT
The Policy will remain in force until the Cash Surrender Value is
insufficient to cover the Deduction Amount due on a Monthly Activity Date.
Hart Life will notify you of the deficiency in writing and will provide a
61-day grace period to pay an amount sufficient to cover the Deduction
Amounts due as well as three. The notice will indicate the amount that must
be paid.
The Policy will continue through the grace period, but if no additional
premium payment is made, it will terminate at the end of the grace period.
If the person insured under the Policy dies during the grace period, the
Death Proceeds payable under the Policy will be reduced by the Deduction
Amount(s) due and unpaid. See "Policy Benefits and Rights -- Death Benefit."
If the Policy lapses, you may apply for reinstatement of the Policy by
payment of the reinstatement premium shown in the Policy and any applicable
charges. A request for reinstatement may be made within five years of lapse.
If a loan was outstanding at the time of lapse, Hart Life will require
repayment of the loan before permitting reinstatement. In addition, Hart
Life reserves the right to require evidence of insurability satisfactory to
Hart Life.
CANCELLATION AND EXCHANGE RIGHTS
You have a limited right to return a Policy for cancellation. If the Policy
is returned, by mail or personal delivery to Hart Life or to the agent who
sold the Policy, to be canceled within ten days after delivery of the Policy
to you (a longer free-look period is provided in certain cases), Hart Life
will return to you, within seven days, the greater of premiums paid for the
Policy less Indebtedness or the sum of (1) the Account Value less any
Indebtedness on the date the returned Policy is received by Hart Life or its
agent and (2) any deductions under Policy or by the Funds for taxes, charges
or fees.
<PAGE>
32
Once the Policy is in effect, it may be exchanged, during the first 24 months
after its issuance, for a non-variable flexible premium adjustable life
insurance Policy offered by Alpine (or an affiliated company) on the life of
the Insured. No evidence of insurability will be required. The new Policy
will have, at your election, either the same Coverage Amount as under the
exchanged Policy on the date of exchange or the same Death Benefit. The
effective date, issue date and issue age will be the same as existed under
the exchanged Policy. If a Policy loan was outstanding, the entire loan must
be repaid. There may be a cash adjustment required on the exchange.
SUSPENSION OF VALUATION, PAYMENTS AND TRANSFERS
Hart Life will suspend all procedures requiring valuation (including transfers,
surrenders and loans) on any day a national stock exchange is closed or
trading is restricted due to an existing emergency, as defined by the
Securities and Exchange Commission, or on any day the Securities and Exchange
Commission has ordered that the right of surrender of the Policies be
suspended for the protection of Policy Owners, until such condition has ended.
LAST SURVIVOR POLICIES
----------------------
The Policies are offered on both a single life and a "last survivor" basis.
Policies sold on a last survivor basis operate in a manner almost identical
to the single life version. The most important difference is that the last
survivor version involves two Insureds and the Death Proceeds are paid on the
death of the last surviving Insured. The other significant differences
between the last survivor and single life versions are listed below.
1. The cost of insurance charges under the last survivor Policies are
determined in a manner that reflects the anticipated mortality of the two
Insureds and the fact that the Death Benefit is not payable until the death
of the second Insured. See the last survivor illustrations in "Appendix B."
2. To qualify for simplified underwriting under a last survivor
Policy, both Insureds must meet the simplified underwriting standards.
3. For a last survivor Policy to be reinstated, both Insureds must be
alive on the date of reinstatement.
4. The Policy provisions regarding misstatement of age or sex, suicide
and incontestability apply to either Insured.
5. Additional tax disclosures applicable to last survivor Policies are
provided in "Federal Tax Considerations."
<PAGE>
33
OTHER MATTERS
-------------
VOTING RIGHTS
In accordance with its interpretation of presently applicable law, Hart Life
will vote the shares of the Funds at regular and special meetings of the
shareholders of the Funds in accordance with instructions from Policy Owners
(or the assignee of the Policy, as the case may be) having a voting interest
in the Separate Account. The number of shares held in the Separate Account
which are attributable to each Policy Owner is determined by dividing the
Policy Owner's interest in each Sub-Account by the net asset value of the
applicable shares of the Funds. Hart Life will vote shares for which no
instructions have been given and shares which are not attributable to Policy
Owners (I.E., shares owned by Hart Life) in the same proportion as it votes
shares for which it has received instructions. However, if the Investment
Company Act of 1940 or any rule promulgated thereunder should be amended, or
if Hart Life's present interpretation should change and, as a result, Hart Life
determines it is permitted to vote the shares of the Funds in its own right,
it may elect to do so.
The voting interests of the Policy Owner (or the assignee) in the Funds will
be determined as follows: Policy Owners may cast one vote for each full or
fractional Accumulation Unit owned under the Policy and allocated to a
Sub-Account, the assets of which are invested in the particular Fund on the
record date for the shareholder meeting for that Fund. If, however, a Policy
Owner has taken a loan secured by the Policy, amounts transferred from the
Sub-Account(s) to the Loan Account in connection with the loan (see "Policy
Benefits and Rights -- Policy Loans.") will not be considered in determining
the voting interests of the Policy Owner. Policy Owners should review the
Funds prospectus accompanying this Prospectus to determine matters on which
shareholders may vote.
Hart Life may, when required by state insurance regulatory authorities,
disregard Policy Owners' voting instructions if such instructions require
that the shares be voted so as to cause a change in the sub-classification or
investment objective of one or more of the Funds or to approve or disapprove
an investment advisory Policy for the Funds.
In addition, Hart Life itself may disregard Policy Owners' voting instructions
in favor of changes initiated by a Policy Owner in the investment policy or
the investment adviser of the Funds if Hart Life reasonably disapproves of such
changes. A change would be disapproved only if the proposed change is
contrary to state law or prohibited by state regulatory authorities. If
Alpine does disregard voting instructions, a summary of that action and the
reasons for such action will be included in the next periodic report to
Policy Owners.
STATEMENTS
Hart Life will maintain all records relating to the Separate Account and the
Sub-Accounts. At least once each Policy Year, Hart Life will send you a
statement showing the Coverage Amount and the Account Value of the Policy
(indicating the number of Accumulation Units credited to the Policy in each
Sub-Account and the corresponding Accumulation Unit Value) and any
outstanding loan
<PAGE>
34
secured by the Policy as of the date of the statement. The statement will
also show premium paid, and Deduction Amounts under the Policy since the last
statement, and any other information required by any applicable law or
regulation.
LIMIT ON RIGHT TO CONTEST
Hart Life may not contest the validity of the Policy after it has been in force
during the Insured's lifetime for two years from the Issue Date. If the
Policy is reinstated, the two-year period is measured from the date of
reinstatement. Any increase in the Coverage Amount as a result of a premium
payment is contestable for two years from its effective date. In addition,
if the Insured commits suicide in the two year period, or such period as
specified in state law, the benefit payable will be limited to the Account
Value less any Indebtedness.
MISSTATEMENT AS TO AGE AND SEX
If the age or sex of the Insured is incorrectly stated, the Death Benefit
will be appropriately adjusted as specified in the Policy.
SETTLEMENT PROVISIONS
The surrender proceeds or Death Proceeds under the Policies may be paid in a
lump sum or may be applied to one of Hart Life's settlement options. The
minimum amount that may be applied under a payment option is $5,000, unless
Hart Life consents to a lesser amount. UNDER PAYMENT OPTIONS 2, 3 AND 4, NO
SURRENDER OR PARTIAL SURRENDERS ARE PERMITTED AFTER PAYMENTS COMMENCE. FULL
SURRENDER OR PARTIAL SURRENDERS MAY BE MADE FROM PAYMENT OPTION 1, OPTION 5,
OR OPTION 6, BUT CHECK WITH YOUR TAX ADVISOR BECAUSE THERE MAY BE ADVERSE TAX
CONSEQUENCES.
Hart Life will pay interest of at least 3 1/2% per year on the Death Proceeds
from the date of the Insured's death to the date payment is made or a payment
option is elected. At such times, the proceeds are not subject to the
investment experience of the Separate Account.
The following options are available under the Policies (Hart Life may offer
other payment options):
Option 1: Interest Income
This option offers payments of interest, at the rate Hart Life declares, on the
amount applied under his option. The interest rate will never be less than 3
1/2% per year.
Option 2: Life Annuity
A life annuity is an annuity payable during the lifetime of the payee and
terminating with the last
<PAGE>
35
payment preceding the death of the payee. This option offers the largest
payment amount of any of the life annuity options, since there is no
guarantee of a minimum number of payments nor a provision for a death benefit
payable to a beneficiary.
It would be possible under this option for a payee to receive only one
annuity payment if he died prior to the due date of the second annuity
payment, two annuity payments if he died before the date of the third annuity
payment, etc.
Option 3: Life Annuity with 120, 180 or 240 Monthly Payments Certain
This annuity option is an annuity payable monthly during the lifetime of the
payee with the provision that payments will be made for a minimum of 120, 180
or 240 months, as elected. If, at the death of the payee, payments have been
made for less than the minimum elected number of months, then the present
value (as of the date of the payee's death) of any remaining guaranteed
payments will be paid in one sum to the beneficiary or beneficiaries
designated, unless other provisions have been made and approved by Hart Life.
Option 4: Joint and Last Survivor Annuity
An annuity payable monthly during the joint lifetime of the payee and a
designated second person, and thereafter during the remaining lifetime of the
survivor, ceasing with the last payment prior to the death of the survivor.
Based on the options currently offered by Hart Life, the payee may elect that
the payment to the survivor be less than the payment made during the joint
lifetime of the payee and a designated second person.
It would be possible under this option for a payee and designated second
person to receive only one payment in the event of the common or simultaneous
death of the parties prior to the due date for the second payment and so on.
Option 5: Payments for a Designated Period
An amount payable monthly for the number of years selected, which may be from
five to 30 years.
In the event of the payee's death prior to the end of the designated period,
the present value (as of the date of the payee's death) of any remaining
guaranteed payments will be paid in one sum to the beneficiary or
beneficiaries designated unless other provisions have been made and approved
by Hart Life.
Option 5 is an option that does not involve life contingencies.
<PAGE>
36
Option 6: Policy Proceeds Settlement Option
Proceeds from the Death Benefit left with Hart Life. These proceeds will
remain in the Sub-Accounts to which they were allocated at the time of death,
unless the beneficiary elects to reallocate them. Full or partial surrenders
may be made at any time.
VARIABLE AND FIXED ANNUITY PAYMENTS: When an Annuity is effected, unless
otherwise specified, the surrender proceeds or Death Proceeds held in the
Sub-Accounts will be applied to provide a variable annuity based on the pro
rata amount in the various Sub-Accounts. Fixed annuities options are also
available. YOU SHOULD CONSIDER WHETHER THE ALLOCATION OF PROCEEDS AMONG
SUB-ACCOUNTS OF THE SEPARATE ACCOUNT FOR YOUR ANNUITY PAYMENTS ARE BASED ON
THE INVESTMENT ALTERNATIVE BEST SUITED TO YOUR RETIREMENT NEEDS.
VARIABLE ANNUITY: The Policy contains tables indicating the minimum dollar
amount of the first monthly payment under the optional variable forms of
annuity for each $1,000 of value of a Sub-Account. The first monthly payment
varies according to the form and type of variable payment annuity selected.
The Policy contains variable payment annuity tables derived from the 1983(a)
Individual Annuity Mortality Table, with ages set back one year and with an
assumed investment rate ("A.I.R.") of 5% per annum. The total first monthly
variable annuity payment is determined by multiplying the proceeds value
(expressed in thousands of dollars) of a Sub-Account by the amount of the
first monthly payment per $1,000 of value obtained from the tables in the
Policy.
The amount of the first monthly variable annuity payment is divided by the
value of an annuity unit (an accounting unit of measure used to calculate the
value of annuity payments) for the appropriate Sub-Account no earlier than
the close of business on the fifth Valuation Day preceding the day on which
the payment is due in order to determine the number of annuity units
represented by the first payment. This number of annuity units remains fixed
during the annuity payment period and in each subsequent month the dollar
amount of the variable annuity payment is determined by multiplying this
fixed number of annuity units by the current annuity unit value.
LEVEL VARIABLE ANNUITY PAYMENTS WOULD BE PRODUCED IF THE INVESTMENT RATE
REMAINED CONSTANT AND EQUAL TO THE A.I.R. IN FACT, PAYMENTS WILL VARY UP OR
DOWN AS THE INVESTMENT RATE VARIES UP OR DOWN RELATIVE TO THE A.I.R.
FIXED ANNUITY: Fixed annuity payments are determined by multiplying the
amount applied to the annuity by a rate (to be determined by Hart Life) which
is no less than the rate specified in the fixed payment annuity tables in the
Policy. The annuity payment will remain level for the duration of the
annuity.
Alpine will make any other arrangements for income payments as may be agreed
on.
<PAGE>
37
BENEFICIARY
You name the beneficiary in the application for the Policy. You may change
the beneficiary (unless irrevocably named) during the Insured's lifetime by
written request to us. If no beneficiary is living when the Insured dies,
the Death Proceeds will be paid to you if living; otherwise to your estate.
ASSIGNMENT
The Policy may be assigned as collateral for a loan or other obligation.
Hart Life is not responsible for any payment made or action taken before
receipt of written notice of such assignment. Proof of interest must be
filed with any claim under a collateral assignment.
DIVIDENDS
No dividends will be paid under the Policies.
EXECUTIVE OFFICERS AND DIRECTORS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
OTHER BUSINESS PROFESSION, VOCATION OR
POSITION WITH HART, YEAR OF EMPLOYMENT FOR PAST FIVE YEARS; OTHER
NAME ELECTION DIRECTORSHIPS
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Mary Jane Fortin Vice President & Chief Accounting Vice President & Chief Accounting
Officer,1998 Officer, (1998 - Present), Hartford Life
Insurance Company; Vice President & Chief
Accounting Officer, (1998 Present), Hartford
Life & Annuity Insurance Company; Vice
President & Chief Accounting Officer, (1998
Present), Servus Life Insurance Company
of America; 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 & Treasurer, Senior Vice President (1998-present),
1998 Vice President (1998), Assistant Vice
Director, 1999 * President (1995-1998), Hartford; Senior
Vice President (1998-Present), Hartford
Life and Accident Insurance Company;
Director, Strategic Planning Corporate
Finance (1995-1996), IA Product
Development (1994-1995), Hartford;
Various Actuarial Roles (1989-1993,
Milliman & Robertson
- -------------------------------------------------------------------------------------------------------------------
Lynda Godkin Senior Vice President, 1995 Associate General Counsel (1995-1996);
General Counsel, & Corporate Assistant General Counsel and Secretary
Secretary, (1994-1995); Counsel (1990-1994),
Director Hartford; Director (1997-Present);
Senior Vice President (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.
<PAGE>
38
- -------------------------------------------------------------------------------------------------------------------
Thomas M. Marra Director, 1998 Senior Vice President (1994-1995); Vice
President (1989-1994); Actuary (1987-1995),
Hartford; Director (1994-Present); Executive
Vice President (1995-Present); Senior
Vice President (1994-1995); Director,
Individual Life and Annuity Division
(1994-Present); Actuary (1987-1997), Hartford
Life and Accident Insurance Company; Executive
Vice President, Individual Life and Annuities
(1997-Present), Hartford Life, Inc.
- -------------------------------------------------------------------------------------------------------------------
Craig R. Raymond Senior Vice President & Chief Vice President (1993-1997); Assistant
Actuary, 1994 Vice President (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.
- -------------------------------------------------------------------------------------------------------------------
Lowndes A. Smith President, 1994, Chief Operating Officer (1989-1997),
Chief Executive Officer, Hartford; Director (1981-Present);
Director 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;
Investment Officer and Director, Director (1998-Present) Senior Vice
1994 President (1997-Present), Hartford Life
and Accident Insurance Company; Vice
President, Investment Strategy (1997-Present),
Hartford Life, Inc.; Vice President, Investment
Strategy & Policy (1991-1996), Aetna Life
and Casualty.
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Unless otherwise indicated, the principal business address of each the above
individuals is P.O. Box 2999, Hartford, CT 06104-2999.
- --------------------
*Denotes date of election to Board of Directors.
<PAGE>
39
HOW WE SELL OUR POLICY
- ----------------------
Hart Life intends to sell the Policies in all jurisdictions where it is
licensed to do business. The Policies will be sold by life insurance sales
representatives who represent Hart Life and who are registered
representatives of Hartford Securities Distribution Company, Inc. ("HSD") or
certain other independent, registered broker-dealers. Any sales
representative or employee will have been qualified to sell variable life
insurance Policies under applicable federal and state laws. Each
broker-dealer is registered with the Securities and Exchange Commission under
the Securities Exchange Act of 1934 and all are members of the National
Association of Securities Dealers, Inc.
HSD serves as Principal Underwriter for the securities issued with respect to
the Separate Account. HSD is an affiliate of Hart Life. The principal
business address of HSD is the same as that of Hart Life.
The following table shows officers and directors of HSD:
NAME AND PRINCIPAL BUSINESS ADDRESS POSITIONS AND OFFICES
----------------------------------- -----------------------
David A. Carlson Vice President
Peter W. Cummins Senior Vice President
David T. Foy Director
Lynda Godkin Senior Vice President, General
Counsel and Corporate Secretary
George R. Jay Controller
Robert A. Kerzner Executive Vice President
Thomas M. Marra Executive Vice President, Director
Paul E. Olson Supervising Registered Principal
Lowndes A. Smith President and Chief Executive Officer,
Director
The maximum sales commission payable to Hart Life agents, independent
registered insurance brokers, and other registered broker-dealers is 7.0% of
initial and subsequent premiums.
Broker-dealers or financial institutions are compensated according to a
schedule set forth by HSD and any applicable rules or regulations for
variable insurance compensation. Compensation is generally based on premium
payments made by policyholders or contract owners. This compensation is
usually paid from the surrender charges described in this Prospectus.
In addition, a broker-dealer or financial institution may also receive
additional compensation for, among other things, training, marketing or other
services provided. HSD, its affiliates or Hart Life may also make compensation
arrangements with certain broker-dealers or financial institutions based on
total sales by the broker-dealer or financial institution of insurance
products. These payments, which may be different for different broker-dealers
or financial institutions, will be made by HSD, its affiliates or Hart Life out
of their own assets and will not effect the amounts paid by the policyholders
or contract owners to purchase, hold or surrender variable insurance products.
Hart Life may provide information on various topics to you and prospective
Policy 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), the advantages and disadvantages of investing in
tax-advantaged and taxable instruments, customer profiles and hypothetical
purchase scenarios, financial management and tax and retirement planning, and
variable annuities and other investment alternatives, including comparisons
between the Policies and the characteristics of, and market for, such
alternatives.
<PAGE>
40
SAFEKEEPING OF THE SEPARATE ACCOUNT'S ASSETS
- --------------------------------------------
The assets of the Separate Account are held by Hart Life. The assets of the
Separate Account are kept physically segregated and held separate and apart
from the General Account of Hart Life. Hart Life maintains records of all
purchases and redemptions of shares of the Fund. Additional protection for
the assets of the Separate Account is afforded by Hart Life's blanket fidelity
bond, issued by Aetna Casualty and Surety Company, in the aggregate of $50
million, covering all of the officers and employees of Hart Life.
<PAGE>
41
FEDERAL TAX CONSIDERATIONS
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 Subchapter L of the Internal Revenue Code of 1986, as
amended (the "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
Funds) are reinvested and are taken into account in determining the value of the
Accumulation Units (see "Policy Benefits and Right - Account Value"). As a
result, such investment income and realized capital gains are automatically
applied to increase reserves under the Policy.
Hartford does not expect to incur any federal income tax on the earnings or
realized capital gains attributable to the Separate Account. Based upon this
expectation, 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 such taxes against the Separate Account.
INCOME TAXATION OF POLICY BENEFITS
For federal income tax purposes, the Policies should be treated as life
insurance contracts under Section 7702 of the Code. The death benefit under a
life insurance contract is generally excluded from the gross income of the
beneficiary. Also, a life insurance Policy Owner is generally not taxed on
increments in the contract 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 requirements.
<PAGE>
42
During the first fifteen Policy Years, an "income first" rule generally applies
to distributions of cash required to be made under Code Section 7702 because of
a reduction in benefits under the Policy.
The Maturity Date Extension Rider allows a Policy Owner to extend the Maturity
Date to the date of the Insured's death. If the Maturity Date of the Policy is
extended by rider, Hartford believes that the Policy will continue to be treated
as a life insurance contract for federal income tax purposes after the scheduled
Maturity Date. However, due to the lack of specific guidance on this issue, the
result is not certain. If the Policy is not treated as a life insurance contract
for federal income tax purposes after the scheduled Maturity Date, among other
things, the Death Proceeds may be taxable to the recipient. The Policy Owner
should consult a qualified tax adviser regarding the possible adverse tax
consequences resulting from an extension of the scheduled Maturity Date.
LAST SURVIVOR POLICIES
Although Hartford believes that the last survivor Policies are in compliance
with Section 7702 of the Code, the manner in which Section 7702 should be
applied to certain features of a joint survivorship life insurance contract is
not directly addressed by Section 7702. In the absence of final regulations or
other guidance issued under Section 7702, there is necessarily some uncertainty
whether a last survivor Policy will meet the Section 7702 definition of a life
insurance contract.
MODIFIED ENDOWMENT CONTRACTS
A life insurance contract is treated as a "modified endowment contract" under
Section 7702A of the Code if it meets the definition of life insurance in
Section 7702 but fails the "seven-pay" test of Section 7702A. The seven-pay test
provides that premiums cannot be paid at a rate more rapidly than that allowed
by the payment of seven annual premiums using specified computational rules
provided in Section 7702A(c). The large single premium permitted under the
Policy does not meet the specified computational rules for the "seven-pay test"
under Section 7702A(c). Therefore, the Policy will generally be treated as a
modified endowment contract for federal income tax purposes. However, an
exchange under Section 1035 of the Code of a life insurance contract issued
before June 21, 1988 will not cause the new Policy to be treated as a modified
endowment contract if no additional premiums are paid.
A policy that is classified as 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, loans, distributions or other amounts
received from a modified endowment contract during the life of the Insured will
be taxed to the extent of any accumulated income in the policy (generally, the
excess of account value over premiums paid). Amounts that are taxable
withdrawals will be subject to a 10% additional tax, with certain exceptions.
<PAGE>
43
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 in determining the taxable portion of any loan or
distributions.
ESTATE AND GENERATION SKIPPING TAXES
When the Insured dies, the Death Proceeds will generally be includible in the
Policy Owner's estate for purposes of federal estate tax if the last surviving
Insured owned the Policy. If the Policy Owner was not the last surviving
Insured, the fair market value of the Policy would be included in the Policy
Owner's estate upon the Policy Owner's death. Nothing would be includible in the
last surviving Insured's estate if he or she neither retained incidents of
ownership at death nor had given up ownership within three years before death.
The federal estate tax is integrated with the federal gift tax under a unified
rate schedule and unified credit which shelters up to $675,000 (2000) from the
estate and gift tax. The Taxpayer Relief Act of 1997 gradually raises the credit
over the next six years to $1,000,000. In addition, an unlimited marital
deduction may be available for federal estate and gift tax purposes. The
unlimited marital deduction permits the deferral of taxes until the death of the
surviving spouse (when the Death Proceeds would be available to pay taxes due
and other expenses incurred).
If the Policy Owner (whether or not he or she is an Insured) transfers ownership
of the Policy to someone two or more generations younger, the transfer may be
subject to the generation-skipping transfer tax, the taxable amount being the
value of the Policy. The generation-skipping transfer tax provisions generally
apply to transfers which would be subject to the gift and estate tax rules.
Individuals are generally allowed an aggregate generation skipping transfer
exemption of $1 million, as adjusted for inflation. Because these rules are
complex, the Policy Owner should consult with a qualified tax adviser for
specific information if ownership is passing to younger generations.
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 contract is not treated as a life insurance contract, the
policy owner will be subject to income tax on annual increases in cash value.
<PAGE>
44
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 contract."
<PAGE>
45
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 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. Since this Policy is a modified
endowment contract, partial withdrawals (or other such amounts deemed to be
distributed) from the Policy constitute income to the Policy Owner for Federal
income tax purposes.
LIFE INSURANCE PURCHASED FOR USE IN SPLIT DOLLAR ARRANGEMENTS
On January 26, 1996, the IRS released a technical advice memorandum ("TAM") on
the taxability of life insurance policies used in certain split dollar
arrangements. A TAM, issued by the National Office of the IRS, provides advice
as to the internal revenue laws, regulations, and related statutes with respect
to a specific set of facts and a specific taxpayer. In the TAM, among other
things, the IRS concluded that an employee was subject to current taxation on
the excess of the cash surrender value of the policy over the premiums to be
returned to the employer. Purchasers of life insurance policies to be used in
split dollar arrangements are strongly advised to consult with a qualified tax
adviser to determine the tax treatment resulting from such an arrangement.
<PAGE>
46
FEDERAL INCOME TAX WITHHOLDING
If any amounts are deemed to be current taxable income to the Policy Owner, such
amounts will be subject to federal income tax withholding and reporting,
pursuant to the Code.
NON-INDIVIDUAL OWNERSHIP OF POLICIES
In certain circumstances, the Code limits the application of specific tax
advantages to individual owners of life insurance contracts. Prospective Policy
Owners which are not individuals should consult a qualified tax adviser to
determine the potential impact on the purchaser.
OTHER
Federal estate tax, state and local estate, inheritance and other tax
consequences of ownership, or receipt of Policy proceeds depend on the
circumstances of each Policy Owner or beneficiary. A tax adviser should be
consulted to determine the impact of these taxes.
LIFE INSURANCE PURCHASES BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
The discussion above provides general information regarding U.S. federal income
tax consequences to life insurance purchasers that are U.S. citizens or
residents. Purchasers that are not U.S. citizens or residents will generally be
subject to U.S. federal income tax and withholding on taxable distributions from
life insurance policies at a 30% rate, unless a lower treaty rate applies. In
addition, purchasers may be subject to state and/or municipal taxes and taxes
that may be imposed by the purchaser's country of citizenship or residence.
Prospective purchasers are advised to consult with a qualified tax adviser
regarding U.S. state, and foreign taxation with respect to a life insurance
policy purchase.
LEGAL PROCEEDINGS
-----------------
There are no material legal proceedings pending to which the Separate Account
is a party.
<PAGE>
47
LEGAL MATTERS
-------------
Legal matters in connection with the issue and sale of flexible premium
variable life insurance Policies described in this Prospectus and the
organization of Hart Life, its authority to issue the Policies under
Connecticut law and the validity of the forms of the Policies under
Connecticut law and legal matters relating to the federal securities and
income tax laws have been passed on by Lynda Godkin, Senior Vice President,
General Counsel and Corporate Secretary of Hart Life.
<PAGE>
48
EXPERTS
-------
The audited statutory financial statements included in this registration
statement have been audited by Arthur Andersen LLP, independent public
accountants, as indicated in their report with respect thereto, and are
included herein in reliance upon the authority of said firm as experts in
giving said report. Reference is made to the report on the statutory
financial statements of Hart Life Insurance Company which states the
statutory financial statements are presented in accordance with statutory
accounting practices prescribed or permitted by the National Association of
Insurance Commissioners and the State of Connecticut Insurance Department,
and are not presented in accordance with generally accepted accounting
principles. The principal business address of Arthur Andersen LLP is One
Financial Plaza, Hartford, Connecticut 06103.
The hypothetical Policy illustrations included in this Prospectus and the
registration statement with respect to the Separate Account have been
approved by Deanne Osgood, FSA, MAAA, Vice President and Director of
Individual Annuity Product Management for Hart Life, and are included in
reliance upon her opinion as to their reasonableness.
REGISTRATION STATEMENT
----------------------
A registration statement has been filed with the Securities and Exchange
Commission under the Securities Act of 1933 as amended. This Prospectus does
not contain all information set forth in the registration statement, its
amendments and exhibits, to all of which reference is made for further
information concerning the Separate Account, the Funds, Hart Life, and the
Policies.
<PAGE>
49
APPENDIX A
SPECIAL INFORMATION FOR POLICIES PURCHASED IN NEW YORK
If the Policy is purchased in the State of New York, the following provisions
of the Prospectus are amended as follows:
In the Special Terms subsection of the Prospectus, the definition of Account
Value is deleted and the following definition is substituted:
Account Value: The current value of Accumulation Units plus the
value of the Loan Account under the Policy. In the case of a Policy Owner
who purchases the Policy in the State of New York (the "New York Policy
Owner") and who elects to transfer into the Fixed Account, Account Value is
the current value of the Fixed Account plus the value of the Loan Account
under the Policy.
The following definition is added:
Fixed Account: Part of the General Account of Hart Life to which a
New York Policy Owner may allocate the entire Account Value.
The definition of Loan Account is deleted and the following definition is
substituted:
Loan Account: An account in Hart Life's General Account, established
for any amounts transferred from the Sub-Accounts or, if a New York Policy
Owner, from the Fixed Account for requested loans. The Loan Account credits
a fixed rate of interest of 4% per annum that is not based on the investment
experience of the Separate Account.
The following is added to the Prospectus as a separate section following the
section entitled "The Separate Account":
THE FIXED ACCOUNT
THAT PORTION OF THE POLICY RELATING TO THE FIXED ACCOUNT IS NOT REGISTERED
UNDER THE SECURITIES ACT OF 1933 ("1933 ACT") AND THE FIXED ACCOUNT IS NOT
REGISTERED AS AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940
("1940 ACT"). ACCORDINGLY, NEITHER THE FIXED ACCOUNT NOR ANY INTERESTS
THEREIN ARE SUBJECT TO THE PROVISIONS OR RESTRICTIONS OF THE 1933 ACT OR THE
1940 ACT, AND THE DISCLOSURE REGARDING THE FIXED ACCOUNT HAS NOT BEEN
REVIEWED BY THE STAFF OF THE SECURITIES AND EXCHANGE COMMISSION. THE
FOLLOWING DISCLOSURE ABOUT THE
<PAGE>
50
FIXED ACCOUNT MAY BE SUBJECT TO CERTAIN GENERALLY APPLICABLE PROVISIONS OF
THE FEDERAL SECURITIES LAWS REGARDING THE ACCURACY AND COMPLETENESS OF
DISCLOSURE.
Under the circumstances described under the heading "Transfer of Entire
Account Value to the Fixed Account," New York Policy Owners may transfer no
less than the entire Account Value to the Fixed Account. Account Value
transferred to the Fixed Account becomes part of the general assets of Hart
Life. Hart Life invests the assets of the General Account in accordance with
applicable laws governing the investment of insurance company general
accounts.
Hart Life currently credits interest to the Account Value transferred to the
Fixed Account under the Policy at the Minimum Credited Rate of 3% per year,
compounded annually. Hart Life reserves the right to credit a lower minimum
interest rate according to state law. Hart Life may also credit interest at
rates greater than the minimum Fixed Account interest rate. There is no
specific formula for determining the interest credited to the Account Value
in the Fixed Account.
The following language is added to the section of the Prospectus entitled
"Deductions and Charges - - Administrative Charges":
No Administrative Charge is deducted from Account Value in the Fixed
Account.
The following language is added to the section of the Prospectus entitled
"Deductions and Charges - - Mortality and Expense Risk Charge":
No Mortality and Expense Risk Charge is deducted from Account Value in
the Fixed Account.
The following separate sections are added to the section of the Prospectus
entitled "Policy Benefits":
TRANSFER OF ENTIRE ACCOUNT VALUE TO THE FIXED ACCOUNT
New York Policy Owners may transfer no less than the entire Account Value
into the Fixed Account under the following circumstances: (i) during the
first 18 months following the Date of Issue, (ii) within 30 days following a
Policy Anniversary, or (iii) within 60 days following the effective date of a
material change in the investment policy of the Separate Account which the
New York Policy Owner objects to.
A TRANSFER TO THE FIXED ACCOUNT MUST BE FOR THE ENTIRE ACCOUNT VALUE AND ONCE
THE ACCOUNT VALUE HAS BEEN TRANSFERRED TO THE FIXED ACCOUNT, IT MAY NOT,
UNDER ANY CIRCUMSTANCES, BE TRANSFERRED BACK TO THE SEPARATE ACCOUNT.
<PAGE>
51
For New York Policy Owners who elect to invest in the Fixed Account, Hart Life
will transfer the entire Account Value from the Separate Account to the Fixed
Account on the Monthly Activity Date next following the date on which Hart Life
received the transfer request. The Account Value in the Fixed Account on the
date of transfer equals the entire Account Value; plus the value of the Loan
Account; minus the Monthly Deduction Amount applicable to the Fixed Account
and minus the Annual Maintenance Fee, if applicable. On each subsequent
Monthly Activity Date, the Account Value in the Fixed Account equals the
Account Value on the previous Monthly Activity Date; plus any premiums
received since the last Monthly Activity Date; plus interest credited since
the last Monthly Activity Date; minus the Monthly Deduction Amount applicable
to the Fixed Account; minus any partial surrenders taken since the last
Monthly Activity Date and minus any Surrender Charges deducted since the last
Monthly Deduction Date. On each Valuation Date (other than a Monthly
Activity Date), the Account Value of the Fixed Account equals the Account
Value on the previous Monthly Activity Date; plus any premiums received since
the last Monthly Activity Date; plus any interest credited since the last
Monthly Activity Date; minus any partial surrenders taken since the last
Monthly Activity Date and minus any Surrender Charges deducted since the last
Monthly Activity Date.
DEFERRED PAYMENTS
Hart Life reserves the right to defer payment of any Cash Surrender Values
and loan amounts which are attributable to the Fixed Account for up to six
months from the date of request. If payment is deferred for more than ten
days, Hart Life will pay interest at the Fixed Account Minimum Credited
Interest Rate.
<PAGE>
52
APPENDIX B
ILLUSTRATIONS OF BENEFITS
-------------------------
The tables in Appendix B illustrate the way in which a Policy operates. They
show how the death benefit and surrender value could vary over an extended
period of time assuming hypothetical gross rates of return equal to constant
after tax annual rates of 0%, 6% and 12%. The tables are based on an initial
premium of $10,000. A male age 45, a female age 55 and a male age 65 with
Face Amounts of $44,053, $34,014 and $20,001, respectively, are illustrated
for the single life preferred Policy for both Policy Owner Option 1 and
Policy Owner Option 2. The illustrations for the last survivor preferred
Policy assume male and female of equal ages, including age 55 and 65 for Face
Amounts of $45,872 and $28,491.
The death benefit and surrender value for a Policy would be different from
those shown if the rates of return averaged 0%, 6% and 12% over a period of
years, but also fluctuated above or below those averages for individual
Policy Years. They would also differ if any Policy loan were made during the
period of time illustrated.
The tables reflect the deductions of current Policy charges for Policy Owner
Option 1 and Policy Owner Option 2 and guaranteed Policy charges for a single
gross interest rate. The death benefits and surrender values would change if
the current cost of insurance charges change.
The amounts shown for the death benefit and surrender value as of the end of
each Policy Year take into account an average daily charge equal to an annual
charge of 0.52% of the average daily net assets of the Funds for investment
advisory and administrative services fees. The gross annual investment
return rates of 0%, 6% and 12% on the Fund's assets are equal to net annual
investment return rates (net of the annual charge of 0.52% described above)
of -0.52%, 5.48% and 11.48%, respectively.
The hypothetical returns shown in the tables are without any tax charges that
may be attributable to the Separate Account in the future. In order to
produce after tax returns of 0%, 6%, and 12%, the Separate Account would have
to earn a sufficient amount in excess of 0% or 6% or 12% to cover any tax
charges (see "Deductions and Charges -- Taxes Charged Against the Separate
Account").
The "Premium Paid Plus Interest" column of each table shows the amount which
would accumulate if the initial premium was invested to earn interest, after
taxes of 5% per year, compounded annually.
Hart Life will furnish upon request, a comparable illustration reflecting the
proposed Insureds age, risk classification, Face Amount or initial premium
requested, and reflecting guaranteed cost of insurance rates. Hart Life will
also furnish an additional similar illustration reflecting current cost of
insurance rates which may be less than, but never greater than, the
guaranteed cost of insurance rates.
<PAGE>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $44,053
ISSUE AGE: MALE 45 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,889 9,864 44,053 10,807 9,784 44,053
2 11,025 11,824 10,807 44,053 11,650 10,637 44,053
3 11,576 12,842 11,837 44,053 12,566 11,566 44,053
4 12,155 13,951 13,112 44,053 13,561 12,727 44,053
5 12,763 15,158 14,339 44,053 14,643 13,830 44,053
6 13,401 16,473 15,878 44,053 15,821 15,233 44,053
7 14,071 17,904 17,340 44,053 17,103 16,544 44,053
8 14,775 19,463 19,135 44,053 18,499 18,176 44,053
9 15,513 21,160 20,877 44,053 20,020 19,740 44,053
10 16,289 23,008 22,978 44,053 21,680 21,650 44,053
11 17,103 25,221 25,191 44,053 23,686 23,656 44,053
12 17,959 27,651 27,621 44,053 25,903 25,873 44,053
13 18,856 30,324 30,294 44,053 28,360 28,330 44,053
14 19,799 33,284 33,254 45,932 31,090 31,060 44,053
15 20,789 36,552 36,522 48,979 34,126 34,096 45,728
16 21,829 40,149 40,119 52,193 37,482 37,452 48,726
17 22,920 44,096 44,066 56,443 41,165 41,135 52,691
18 24,066 48,428 48,398 61,019 45,207 45,177 56,960
19 25,270 53,181 53,181 65,944 49,641 49,611 61,555
20 26,533 58,431 58,431 71,286 54,509 54,509 66,501
21 27,860 64,197 64,197 77,036 59,888 59,888 71,865
22 29,253 70,511 70,511 83,908 65,779 65,779 78,276
23 30,715 77,427 77,427 91,363 72,230 72,230 85,230
24 32,251 84,999 84,999 99,448 79,294 79,294 92,773
25 33,864 93,298 93,298 108,226 87,028 87,028 100,952
35 55,160 237,475 237,475 251,723 221,367 221,367 234,648
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $44,053
ISSUE AGE: MALE 45 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,303 9,291 44,053 10,221 9,211 44,053
2 11,025 10,584 9,592 44,053 10,407 9,419 44,053
3 11,576 10,873 9,903 44,053 10,588 9,623 44,053
4 12,155 11,171 10,374 44,053 10,763 9,971 44,053
5 12,763 11,479 10,705 44,053 10,930 10,163 44,053
6 13,401 11,795 11,247 44,053 11,086 10,546 44,053
7 14,071 12,121 11,601 44,053 11,230 10,716 44,053
8 14,775 12,458 12,165 44,053 11,358 11,071 44,053
9 15,513 12,804 12,542 44,053 11,465 11,206 44,053
10 16,289 13,160 13,130 44,053 11,548 11,518 44,053
11 17,103 13,637 13,607 44,053 11,699 11,669 44,053
12 17,959 14,132 14,102 44,053 11,823 11,793 44,053
13 18,856 14,645 14,615 44,053 11,917 11,887 44,053
14 19,799 15,179 15,149 44,053 11,976 11,946 44,053
15 20,789 15,733 15,703 44,053 11,992 11,962 44,053
16 21,829 16,309 16,279 44,053 11,958 11,928 44,053
17 22,920 16,906 16,876 44,053 11,864 11,834 44,053
18 24,066 17,527 17,497 44,053 11,698 11,668 44,053
19 25,270 18,172 18,142 44,053 11,446 11,416 44,053
20 26,533 18,842 18,812 44,053 11,091 11,061 44,053
25 33,864 22,598 22,568 44,053 7,068 7,038 44,053
35 55,160 32,620 32,590 44,053 - - 44,053
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $44,053
ISSUE AGE: MALE 45 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.52% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,717 8,739 44,053 9,634 8,665 44,053
2 11,025 9,412 8,488 44,053 9,233 8,326 44,053
3 11,576 9,116 8,243 44,053 8,826 7,980 44,053
4 12,155 8,829 8,137 44,053 8,412 7,751 44,053
5 12,763 8,550 7,900 44,053 7,988 7,379 44,053
6 13,401 8,278 7,834 44,053 7,553 7,146 44,053
7 14,071 8,015 7,604 44,053 7,104 6,736 44,053
8 14,775 7,758 7,534 44,053 6,636 6,440 44,053
9 15,513 7,509 7,310 44,053 6,146 5,977 44,053
10 16,289 7,267 7,237 44,053 5,629 5,599 44,053
11 17,103 7,089 7,059 44,053 5,126 5,096 44,053
12 17,959 6,914 6,884 44,053 4,583 4,553 44,053
13 18,856 6,743 6,713 44,053 3,998 3,968 44,053
14 19,799 6,575 6,545 44,053 3,364 3,334 44,053
15 20,789 6,411 6,381 44,053 2,673 2,643 44,053
16 21,829 6,250 6,220 44,053 1,917 1,887 44,053
17 22,920 6,092 6,062 44,053 1,086 1,056 44,053
18 24,066 5,938 5,908 44,053 165 135 44,053
19 25,270 5,787 5,757 44,053 - - 44,053
20 26,533 5,639 5,609 44,053 - - 44,053
21 27,860 5,494 5,464 44,053 - - 44,053
22 29,253 5,351 5,321 44,053 - - 44,053
23 30,715 5,212 5,182 44,053 - - 44,053
24 32,251 5,076 5,046 44,053 - - 44,053
25 33,864 4,942 4,912 44,053 - - 44,053
35 55,160 3,749 3,719 44,053 - - 44,053
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $44,053
ISSUE AGE: MALE 45 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,522 9,742 44,053 10,435 9,655 44,053
2 11,025 11,499 10,719 44,053 11,315 10,535 44,053
3 11,576 12,570 11,790 44,053 12,277 11,497 44,053
4 12,155 13,743 13,113 44,053 13,330 12,700 44,053
5 12,763 15,030 14,400 44,053 14,483 13,853 44,053
6 13,401 16,439 16,009 44,053 15,747 15,317 44,053
7 14,071 17,985 17,555 44,053 17,134 16,704 44,053
8 14,775 19,678 19,448 44,053 18,655 18,425 44,053
9 15,513 21,534 21,304 44,053 20,326 20,096 44,053
10 16,289 23,568 23,538 44,053 22,164 22,134 44,053
11 17,103 25,837 25,807 44,053 24,226 24,196 44,053
12 17,959 28,327 28,297 44,053 26,507 26,477 44,053
13 18,856 31,074 31,044 44,124 29,035 29,005 44,053
14 19,799 34,116 34,086 47,079 31,846 31,816 44,053
15 20,789 37,466 37,436 50,204 34,966 34,936 46,854
16 21,829 41,153 41,123 53,499 38,405 38,375 49,927
17 22,920 45,201 45,171 57,856 42,180 42,150 53,990
18 24,066 49,642 49,612 62,548 46,322 46,292 58,365
19 25,270 54,515 54,515 67,598 50,867 50,867 63,075
20 26,533 59,897 59,897 73,073 55,889 55,889 68,184
21 27,860 65,807 65,807 78,968 61,404 61,404 73,684
22 29,253 72,280 72,280 86,012 67,444 67,444 80,257
23 30,715 79,368 79,368 93,654 74,058 74,058 87,388
24 32,251 87,130 87,130 101,942 81,301 81,301 95,121
25 33,864 95,638 95,638 110,940 89,230 89,230 103,507
35 55,160 243,430 243,430 258,036 226,970 226,970 240,588
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $44,053
ISSUE AGE: MALE 45 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,955 9,179 44,053 9,869 9,098 44,053
2 11,025 10,293 9,513 44,053 10,106 9,326 44,053
3 11,576 10,642 9,862 44,053 10,343 9,563 44,053
4 12,155 11,005 10,375 44,053 10,577 9,947 44,053
5 12,763 11,381 10,751 44,053 10,806 10,176 44,053
6 13,401 11,771 11,341 44,053 11,030 10,600 44,053
7 14,071 12,176 11,746 44,053 11,246 10,816 44,053
8 14,775 12,595 12,365 44,053 11,449 11,219 44,053
9 15,513 13,030 12,800 44,053 11,638 11,408 44,053
10 16,289 13,481 13,451 44,053 11,807 11,777 44,053
11 17,103 13,970 13,940 44,053 11,972 11,942 44,053
12 17,959 14,477 14,447 44,053 12,112 12,082 44,053
13 18,856 15,004 14,974 44,053 12,223 12,193 44,053
14 19,799 15,552 15,522 44,053 12,300 12,270 44,053
15 20,789 16,120 16,090 44,053 12,336 12,306 44,053
16 21,829 16,711 16,681 44,053 12,323 12,293 44,053
17 22,920 17,324 17,294 44,053 12,253 12,223 44,053
18 24,066 17,961 17,931 44,053 12,113 12,083 44,053
19 25,270 18,623 18,593 44,053 11,889 11,859 44,053
20 26,533 19,310 19,280 44,053 11,566 11,536 44,053
21 27,860 20,023 19,993 44,053 11,127 11,097 44,053
22 29,253 20,764 20,734 44,053 10,553 10,523 44,053
23 30,715 21,534 21,504 44,053 9,822 9,792 44,053
24 32,251 22,333 22,303 44,053 8,907 8,877 44,053
25 33,864 23,163 23,133 44,053 7,773 7,743 44,053
35 55,160 33,445 33,415 44,053 - - 44,053
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $44,053
ISSUE AGE: MALE 45 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.52% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,389 8,655 44,053 9,302 8,575 44,053
2 11,025 9,153 8,437 44,053 8,966 8,264 44,053
3 11,576 8,923 8,223 44,053 8,620 7,944 44,053
4 12,155 8,697 8,145 44,053 8,264 7,738 44,053
5 12,763 8,477 7,938 44,053 7,895 7,391 44,053
6 13,401 8,261 7,900 44,053 7,511 7,180 44,053
7 14,071 8,050 7,698 44,053 7,109 6,794 44,053
8 14,775 7,844 7,657 44,053 6,685 6,522 44,053
9 15,513 7,642 7,459 44,053 6,236 6,082 44,053
10 16,289 7,444 7,414 44,053 5,758 5,728 44,053
11 17,103 7,262 7,232 44,053 5,254 5,224 44,053
12 17,959 7,084 7,054 44,053 4,711 4,681 44,053
13 18,856 6,909 6,879 44,053 4,125 4,095 44,053
14 19,799 6,738 6,708 44,053 3,491 3,461 44,053
15 20,789 6,571 6,541 44,053 2,800 2,770 44,053
16 21,829 6,406 6,376 44,053 2,045 2,015 44,053
17 22,920 6,246 6,216 44,053 1,214 1,184 44,053
18 24,066 6,088 6,058 44,053 294 264 44,053
19 25,270 5,934 5,904 44,053 - - -
20 26,533 5,783 5,753 44,053 - - -
21 27,860 5,635 5,605 44,053 - - -
22 29,253 5,490 5,460 44,053 - - -
23 30,715 5,348 5,318 44,053 - - -
24 32,251 5,208 5,178 44,053 - - -
25 33,864 5,072 5,042 44,053 - - -
35 55,160 3,854 3,824 44,053 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $34,014
ISSUE AGE: FEMALE 55 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,889 9,864 34,014 10,762 9,740 34,014
2 11,025 11,824 10,807 34,014 11,556 10,545 34,014
3 11,576 12,842 11,837 34,014 12,421 11,424 34,014
4 12,155 13,951 13,112 34,014 13,366 12,535 34,014
5 12,763 15,158 14,339 34,014 14,397 13,587 34,014
6 13,401 16,473 15,878 34,014 15,524 14,938 34,014
7 14,071 17,904 17,340 34,014 16,755 16,199 34,014
8 14,775 19,463 19,135 34,014 18,100 17,779 34,014
9 15,513 21,160 20,877 34,014 19,571 19,292 34,014
10 16,289 23,008 22,978 34,014 21,184 21,154 34,014
11 17,103 25,222 25,192 34,014 23,145 23,115 34,014
12 17,959 27,673 27,643 34,014 25,332 25,302 34,014
13 18,856 30,414 30,384 35,888 27,782 27,752 34,014
14 19,799 33,436 33,406 39,119 30,528 30,498 35,717
15 20,789 36,757 36,727 42,638 33,557 33,527 38,926
16 21,829 40,407 40,377 46,468 36,887 36,857 42,419
17 22,920 44,431 44,401 50,206 40,557 40,527 45,829
18 24,066 48,868 48,838 54,243 44,605 44,575 49,511
19 25,270 53,769 53,769 58,607 49,074 49,044 53,491
20 26,533 59,169 59,169 64,494 53,971 53,971 58,827
21 27,860 65,112 65,112 70,321 59,391 59,391 64,142
22 29,253 71,656 71,656 76,672 65,360 65,360 69,935
23 30,715 78,822 78,822 84,339 71,897 71,897 76,929
24 32,251 86,722 86,722 91,925 79,103 79,103 83,848
25 33,864 95,369 95,369 101,090 86,989 86,989 92,208
35 55,160 243,428 243,428 255,599 218,768 218,768 229,706
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $34,014
ISSUE AGE: FEMALE 55 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,303 9,291 34,014 10,176 9,167 34,014
2 11,025 10,584 9,592 34,014 10,314 9,328 34,014
3 11,576 10,873 9,903 34,014 10,445 9,482 34,014
4 12,155 11,171 10,374 34,014 10,568 9,780 34,014
5 12,763 11,479 10,705 34,014 10,682 9,919 34,014
6 13,401 11,795 11,247 34,014 10,784 10,246 34,014
7 14,071 12,121 11,601 34,014 10,868 10,357 34,014
8 14,775 12,458 12,165 34,014 10,930 10,645 34,014
9 15,513 12,804 12,542 34,014 10,961 10,703 34,014
10 16,289 13,160 13,130 34,014 10,955 10,925 34,014
11 17,103 13,637 13,607 34,014 10,999 10,969 34,014
12 17,959 14,132 14,102 34,014 11,004 10,974 34,014
13 18,856 14,645 14,615 34,014 10,966 10,936 34,014
14 19,799 15,179 15,149 34,014 10,880 10,850 34,014
15 20,789 15,733 15,703 34,014 10,739 10,709 34,014
16 21,829 16,309 16,279 34,014 10,527 10,497 34,014
17 22,920 16,906 16,876 34,014 10,226 10,196 34,014
18 24,066 17,527 17,497 34,014 9,811 9,781 34,014
19 25,270 18,172 18,142 34,014 9,250 9,220 34,014
20 26,533 18,842 18,812 34,014 8,507 8,477 34,014
21 27,860 19,537 19,507 34,014 7,543 7,513 34,014
22 29,253 20,259 20,229 34,014 6,312 6,282 34,014
23 30,715 21,010 20,980 34,014 4,755 4,725 34,014
24 32,251 21,789 21,759 34,014 2,799 2,769 34,014
25 33,864 22,598 22,568 34,014 340 310 34,014
35 55,160 32,620 32,590 34,250 - - 34,014
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $34,014
ISSUE AGE: FEMALE 55 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.52% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,717 8,739 34,014 9,590 8,625 34,014
2 11,025 9,412 8,488 34,014 9,142 8,243 34,014
3 11,576 9,116 8,243 34,014 8,686 7,852 34,014
4 12,155 8,829 8,137 34,014 8,221 7,575 34,014
5 12,763 8,550 7,900 34,014 7,746 7,155 34,014
6 13,401 8,278 7,834 34,014 7,257 6,864 34,014
7 14,071 8,015 7,604 34,014 6,749 6,398 34,014
8 14,775 7,758 7,534 34,014 6,214 6,029 34,014
9 15,513 7,509 7,310 34,014 5,644 5,487 34,014
10 16,289 7,267 7,237 34,014 5,034 5,004 34,014
11 17,103 7,089 7,059 34,014 4,415 4,385 34,014
12 17,959 6,914 6,884 34,014 3,741 3,711 34,014
13 18,856 6,743 6,713 34,014 3,007 2,977 34,014
14 19,799 6,575 6,545 34,014 2,209 2,179 34,014
15 20,789 6,411 6,381 34,014 1,337 1,307 34,014
16 21,829 6,250 6,220 34,014 373 343 34,014
17 22,920 6,092 6,062 34,014 - - -
18 24,066 5,938 5,908 34,014 - - -
19 25,270 5,787 5,757 34,014 - - -
20 26,533 5,639 5,609 34,014 - - -
21 27,860 5,494 5,464 34,014 - - -
22 29,253 5,351 5,321 34,014 - - -
23 30,715 5,212 5,182 34,014 - - -
24 32,251 5,076 5,046 34,014 - - -
25 33,864 4,942 4,912 34,014 - - -
35 55,160 3,749 3,719 34,014 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $34,014
ISSUE AGE: FEMALE 55 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,522 9,742 34,014 10,388 9,608 34,014
2 11,025 11,499 10,719 34,014 11,217 10,437 34,014
3 11,576 12,570 11,790 34,014 12,126 11,346 34,014
4 12,155 13,743 13,113 34,014 13,125 12,495 34,014
5 12,763 15,030 14,400 34,014 14,224 13,594 34,014
6 13,401 16,439 16,009 34,014 15,433 15,003 34,014
7 14,071 17,985 17,555 34,014 16,765 16,335 34,014
8 14,775 19,678 19,448 34,014 18,231 18,001 34,014
9 15,513 21,534 21,304 34,014 19,847 19,617 34,014
10 16,289 23,568 23,538 34,014 21,633 21,603 34,014
11 17,103 25,840 25,810 34,014 23,651 23,621 34,014
12 17,959 28,369 28,339 34,014 25,902 25,872 34,014
13 18,856 31,187 31,157 36,800 28,425 28,395 34,014
14 19,799 34,286 34,256 40,114 31,243 31,213 36,554
15 20,789 37,693 37,663 43,723 34,345 34,315 39,839
16 21,829 41,437 41,407 47,652 37,753 37,723 43,416
17 22,920 45,563 45,533 51,486 41,510 41,480 46,906
18 24,066 50,115 50,115 55,627 45,654 45,624 50,675
19 25,270 55,174 55,174 60,139 50,229 50,229 54,750
20 26,533 60,716 60,716 66,180 55,275 55,275 60,249
21 27,860 66,814 66,814 72,159 60,826 60,826 65,692
22 29,253 73,529 73,529 78,676 66,940 66,940 71,625
23 30,715 80,883 80,883 86,544 73,634 73,634 78,788
24 32,251 88,989 88,989 94,328 81,014 81,014 85,874
25 33,864 97,862 97,862 103,733 89,091 89,091 94,436
35 55,160 249,791 249,791 262,280 224,055 224,055 235,257
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $34,014
ISSUE AGE: FEMALE 55 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,955 9,179 34,014 9,822 9,056 34,014
2 11,025 10,293 9,513 34,014 10,010 9,230 34,014
3 11,576 10,642 9,862 34,014 10,194 9,414 34,014
4 12,155 11,005 10,375 34,014 10,374 9,744 34,014
5 12,763 11,381 10,751 34,014 10,549 9,919 34,014
6 13,401 11,771 11,341 34,014 10,715 10,285 34,014
7 14,071 12,176 11,746 34,014 10,867 10,437 34,014
8 14,775 12,595 12,365 34,014 11,002 10,772 34,014
9 15,513 13,030 12,800 34,014 11,110 10,880 34,014
10 16,289 13,481 13,451 34,014 11,187 11,157 34,014
11 17,103 13,970 13,940 34,014 11,246 11,216 34,014
12 17,959 14,477 14,447 34,014 11,267 11,237 34,014
13 18,856 15,004 14,974 34,014 11,247 11,217 34,014
14 19,799 15,552 15,522 34,014 11,181 11,151 34,014
15 20,789 16,120 16,090 34,014 11,061 11,031 34,014
16 21,829 16,711 16,681 34,014 10,874 10,844 34,014
17 22,920 17,324 17,294 34,014 10,600 10,570 34,014
18 24,066 17,961 17,931 34,014 10,215 10,185 34,014
19 25,270 18,623 18,593 34,014 9,689 9,659 34,014
20 26,533 19,310 19,280 34,014 8,987 8,957 34,014
21 27,860 20,023 19,993 34,014 8,070 8,040 34,014
22 29,253 20,764 20,734 34,014 6,894 6,864 34,014
23 30,715 21,534 21,504 34,014 5,403 5,373 34,014
24 32,251 22,333 22,303 34,014 3,525 3,495 34,014
25 33,864 23,163 23,133 34,014 1,159 1,129 34,014
35 55,160 33,445 33,415 35,117 - - 34,014
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $34,014
ISSUE AGE: FEMALE 55 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.52% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,389 8,655 34,014 9,256 8,532 34,014
2 11,025 9,153 8,437 34,014 8,871 8,176 34,014
3 11,576 8,923 8,223 34,014 8,475 7,809 34,014
4 12,155 8,697 8,145 34,014 8,067 7,553 34,014
5 12,763 8,477 7,938 34,014 7,644 7,156 34,014
6 13,401 8,261 7,900 34,014 7,204 6,886 34,014
7 14,071 8,050 7,698 34,014 6,742 6,442 34,014
8 14,775 7,844 7,657 34,014 6,249 6,094 34,014
9 15,513 7,642 7,459 34,014 5,718 5,574 34,014
10 16,289 7,444 7,414 34,014 5,142 5,112 34,014
11 17,103 7,262 7,232 34,014 4,524 4,494 34,014
12 17,959 7,084 7,054 34,014 3,850 3,820 34,014
13 18,856 6,909 6,879 34,014 3,117 3,087 34,014
14 19,799 6,738 6,708 34,014 2,320 2,290 34,014
15 20,789 6,571 6,541 34,014 1,449 1,419 34,014
16 21,829 6,406 6,376 34,014 486 456 34,014
17 22,920 6,246 6,216 34,014 - - -
18 24,066 6,088 6,058 34,014 - - -
19 25,270 5,934 5,904 34,014 - - -
20 26,533 5,783 5,753 34,014 - - -
21 27,860 5,635 5,605 34,014 - - -
22 29,253 5,490 5,460 34,014 - - -
23 30,715 5,348 5,318 34,014 - - -
24 32,251 5,208 5,178 34,014 - - -
25 33,864 5,072 5,042 34,014 - - -
35 55,160 3,854 3,824 34,014 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $20,001
ISSUE AGE: MALE 65 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,889 9,864 20,001 10,676 9,656 20,001
2 11,025 11,824 10,807 20,001 11,375 10,368 20,001
3 11,576 12,842 11,837 20,001 12,137 11,145 20,001
4 12,155 13,951 13,112 20,001 12,974 12,149 20,001
5 12,763 15,158 14,339 20,001 13,898 13,095 20,001
6 13,401 16,473 15,878 20,001 14,928 14,349 20,001
7 14,071 17,904 17,340 20,231 16,085 15,534 20,001
8 14,775 19,468 19,141 21,609 17,398 17,081 20,001
9 15,513 21,184 20,901 23,090 18,901 18,623 20,601
10 16,289 23,040 23,010 25,113 20,553 20,523 22,402
11 17,103 25,264 25,234 27,285 22,534 22,504 24,336
12 17,959 27,713 27,683 29,653 24,714 24,684 26,443
13 18,856 30,386 30,356 32,513 27,093 27,063 28,989
14 19,799 33,332 33,302 35,331 29,716 29,686 31,498
15 20,789 36,554 36,524 38,746 32,577 32,547 34,531
16 21,829 40,105 40,075 42,110 35,739 35,709 37,525
17 22,920 43,988 43,958 46,187 39,188 39,158 41,147
18 24,066 48,251 48,221 50,663 42,944 42,914 45,091
19 25,270 52,929 52,929 55,575 47,029 46,999 49,380
20 26,533 58,097 58,097 61,001 51,465 51,465 54,038
21 27,860 63,770 63,770 66,958 56,309 56,309 59,124
22 29,253 69,996 69,996 73,496 61,556 61,556 64,633
23 30,715 76,831 76,831 80,672 67,232 67,232 70,593
24 32,251 84,333 84,333 88,549 73,367 73,367 77,035
25 33,864 92,568 92,568 97,196 79,989 79,989 83,988
35 55,160 235,194 235,194 237,546 197,049 197,049 199,019
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $20,001
ISSUE AGE: MALE 65 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,303 9,291 20,001 10,087 9,080 20,001
2 11,025 10,584 9,592 20,001 10,118 9,135 20,001
3 11,576 10,873 9,903 20,001 10,118 9,161 20,001
4 12,155 11,171 10,374 20,001 10,082 9,301 20,001
5 12,763 11,479 10,705 20,001 10,005 9,249 20,001
6 13,401 11,795 11,247 20,001 9,875 9,351 20,001
7 14,071 12,121 11,601 20,001 9,682 9,192 20,001
8 14,775 12,458 12,165 20,001 9,409 9,144 20,001
9 15,513 12,804 12,542 20,001 9,037 8,804 20,001
10 16,289 13,160 13,130 20,001 8,543 8,513 20,001
11 17,103 13,637 13,607 20,001 7,970 7,940 20,001
12 17,959 14,132 14,102 20,001 7,217 7,187 20,001
13 18,856 14,645 14,615 20,001 6,243 6,213 20,001
14 19,799 15,179 15,149 20,001 4,990 4,960 20,001
15 20,789 15,733 15,703 20,001 3,380 3,350 20,001
16 21,829 16,309 16,279 20,001 1,300 1,270 20,001
17 22,920 16,906 16,876 20,001 - - -
18 24,066 17,527 17,497 20,001 - - -
19 25,270 18,172 18,142 20,001 - - -
20 26,533 18,842 18,812 20,001 - - -
21 27,860 19,537 19,507 20,513 - - -
22 29,253 20,259 20,229 21,272 - - -
23 30,715 21,010 20,980 22,060 - - -
24 32,251 21,789 21,759 22,878 - - -
25 33,864 22,598 22,568 23,727 - - -
35 55,160 32,647 32,617 32,973 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $20,001
ISSUE AGE: MALE 65 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.52% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,717 8,739 20,001 9,499 8,543 20,001
2 11,025 9,412 8,488 20,001 8,932 8,054 20,001
3 11,576 9,116 8,243 20,001 8,325 7,525 20,001
4 12,155 8,829 8,137 20,001 7,669 7,064 20,001
5 12,763 8,550 7,900 20,001 6,954 6,420 20,001
6 13,401 8,278 7,834 20,001 6,167 5,828 20,001
7 14,071 8,015 7,604 20,001 5,290 5,009 20,001
8 14,775 7,758 7,534 20,001 4,301 4,163 20,001
9 15,513 7,509 7,310 20,001 3,171 3,069 20,001
10 16,289 7,267 7,237 20,001 1,869 1,839 20,001
11 17,103 7,089 7,059 20,001 367 337 20,001
12 17,959 6,914 6,884 20,001 - - -
13 18,856 6,743 6,713 20,001 - - -
14 19,799 6,575 6,545 20,001 - - -
15 20,789 6,411 6,381 20,001 - - -
16 21,829 6,250 6,220 20,001 - - -
17 22,920 6,092 6,062 20,001 - - -
18 24,066 5,938 5,908 20,001 - - -
19 25,270 5,787 5,757 20,001 - - -
20 26,533 5,639 5,609 20,001 - - -
21 27,860 5,494 5,464 20,001 - - -
22 29,253 5,351 5,321 20,001 - - -
23 30,715 5,212 5,182 20,001 - - -
24 32,251 5,076 5,046 20,001 - - -
25 33,864 4,942 4,912 20,001 - - -
35 55,160 3,749 3,719 20,001 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $20,001
ISSUE AGE: MALE 65 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,522 9,742 20,001 10,294 9,514 20,001
2 11,025 11,499 10,719 20,001 11,017 10,237 20,001
3 11,576 12,570 11,790 20,001 11,810 11,030 20,001
4 12,155 13,743 13,113 20,001 12,686 12,056 20,001
5 12,763 15,030 14,400 20,001 13,661 13,031 20,001
6 13,401 16,439 16,009 20,001 14,755 14,325 20,001
7 14,071 17,985 17,555 20,322 15,992 15,562 20,001
8 14,775 19,684 19,454 21,849 17,407 17,177 20,001
9 15,513 21,560 21,330 23,499 19,036 18,806 20,749
10 16,289 23,602 23,572 25,725 20,835 20,805 22,710
11 17,103 25,881 25,851 27,951 22,844 22,814 24,671
12 17,959 28,391 28,361 30,377 25,055 25,025 26,808
13 18,856 31,130 31,100 33,308 27,467 27,437 29,389
14 19,799 34,149 34,119 36,197 30,127 30,097 31,934
15 20,789 37,450 37,420 39,696 33,028 32,998 35,010
16 21,829 41,090 41,060 43,144 36,234 36,204 38,046
17 22,920 45,069 45,039 47,322 39,731 39,701 41,717
18 24,066 49,436 49,406 51,908 43,540 43,510 45,717
19 25,270 54,230 54,230 56,942 47,682 47,652 50,066
20 26,533 59,526 59,526 62,501 52,181 52,181 54,789
21 27,860 65,338 65,338 68,604 57,092 57,092 59,946
22 29,253 71,718 71,718 75,303 62,411 62,411 65,531
23 30,715 78,720 78,720 82,656 68,167 68,167 71,575
24 32,251 86,407 86,407 90,727 74,387 74,387 78,106
25 33,864 94,844 94,844 99,586 81,101 81,101 85,155
35 55,160 240,978 240,978 243,387 199,788 199,788 201,785
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $20,001
ISSUE AGE: MALE 65 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,955 9,179 20,001 9,726 8,966 20,001
2 11,025 10,293 9,513 20,001 9,797 9,032 20,001
3 11,576 10,642 9,862 20,001 9,839 9,071 20,001
4 12,155 11,005 10,375 20,001 9,849 9,228 20,001
5 12,763 11,381 10,751 20,001 9,819 9,200 20,001
6 13,401 11,771 11,341 20,001 9,740 9,320 20,001
7 14,071 12,176 11,746 20,001 9,600 9,186 20,001
8 14,775 12,595 12,365 20,001 9,384 9,167 20,001
9 15,513 13,030 12,800 20,001 9,073 8,861 20,001
10 16,289 13,481 13,451 20,001 8,643 8,613 20,001
11 17,103 13,970 13,940 20,001 8,083 8,053 20,001
12 17,959 14,477 14,447 20,001 7,346 7,316 20,001
13 18,856 15,004 14,974 20,001 6,391 6,361 20,001
14 19,799 15,552 15,522 20,001 5,161 5,131 20,001
15 20,789 16,120 16,090 20,001 3,580 3,550 20,001
16 21,829 16,711 16,681 20,001 1,536 1,506 20,001
17 22,920 17,324 17,294 20,001 - - -
18 24,066 17,961 17,931 20,001 - - -
19 25,270 18,623 18,593 20,001 - - -
20 26,533 19,310 19,280 20,275 - - -
21 27,860 20,023 19,993 21,024 - - -
22 29,253 20,764 20,734 21,802 - - -
23 30,715 21,534 21,504 22,610 - - -
24 32,251 22,333 22,303 23,449 - - -
25 33,864 23,163 23,133 24,321 - - -
35 55,160 33,473 33,443 33,807 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $20,001
ISSUE AGE: MALE 65 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.52% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,389 8,655 20,001 9,158 8,441 20,001
2 11,025 9,153 8,437 20,001 8,646 7,968 20,001
3 11,576 8,923 8,223 20,001 8,090 7,454 20,001
4 12,155 8,697 8,145 20,001 7,482 7,003 20,001
5 12,763 8,477 7,938 20,001 6,810 6,372 20,001
6 13,401 8,261 7,900 20,001 6,062 5,790 20,001
7 14,071 8,050 7,698 20,001 5,220 4,981 20,001
8 14,775 7,844 7,657 20,001 4,259 4,144 20,001
9 15,513 7,642 7,459 20,001 3,153 3,060 20,001
10 16,289 7,444 7,414 20,001 1,867 1,837 20,001
11 17,103 7,262 7,232 20,001 365 335 20,001
12 17,959 7,084 7,054 20,001 - - -
13 18,856 6,909 6,879 20,001 - - -
14 19,799 6,738 6,708 20,001 - - -
15 20,789 6,571 6,541 20,001 - - -
16 21,829 6,406 6,376 20,001 - - -
17 22,920 6,246 6,216 20,001 - - -
18 24,066 6,088 6,058 20,001 - - -
19 25,270 5,934 5,904 20,001 - - -
20 26,533 5,783 5,753 20,001 - - -
21 27,860 5,635 5,605 20,001 - - -
22 29,253 5,490 5,460 20,001 - - -
23 30,715 5,348 5,318 20,001 - - -
24 32,251 5,208 5,178 20,001 - - -
25 33,864 5,072 5,042 20,001 - - -
35 55,160 3,854 3,824 20,001 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $45,872
ISSUE AGE: MALE 55 PREFERRED
ISSUE AGE: FEMALE 55 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,957 9,930 45,872 10,957 9,930 45,872
2 11,025 11,966 10,947 45,872 11,966 10,947 45,872
3 11,576 13,064 12,055 45,872 13,064 12,055 45,872
4 12,155 14,259 13,415 45,872 14,259 13,415 45,872
5 12,763 15,558 14,734 45,872 15,558 14,734 45,872
6 13,401 16,972 16,372 45,872 16,972 16,372 45,872
7 14,071 18,509 17,940 45,872 18,509 17,940 45,872
8 14,775 20,179 19,848 45,872 20,179 19,848 45,872
9 15,513 21,995 21,710 45,872 21,995 21,710 45,872
10 16,289 23,969 23,939 45,872 23,969 23,939 45,872
11 17,103 26,328 26,298 45,872 26,328 26,298 45,872
12 17,959 28,923 28,893 45,872 28,923 28,893 45,872
13 18,856 31,784 31,754 45,872 31,784 31,754 45,872
14 19,799 34,948 34,918 45,872 34,948 34,918 45,872
15 20,789 38,459 38,429 45,872 38,459 38,429 45,872
16 21,829 42,358 42,328 48,711 42,358 42,328 48,711
17 22,920 46,659 46,629 52,724 46,659 46,629 52,724
18 24,066 51,398 51,398 57,051 51,398 51,398 57,051
19 25,270 56,656 56,656 61,754 56,656 56,656 61,754
20 26,533 62,423 62,423 68,041 62,423 62,423 68,041
21 27,860 68,767 68,767 74,268 68,767 68,767 74,268
22 29,253 75,748 75,748 81,050 75,748 75,748 81,049
23 30,715 83,394 83,394 89,231 83,394 83,394 89,231
24 32,251 91,814 91,814 97,323 91,814 91,814 97,323
25 33,864 101,030 101,030 107,091 101,030 101,030 107,091
35 55,160 260,810 260,810 273,850 254,329 254,329 267,045
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $45,872
ISSUE AGE: MALE 55 PREFERRED
ISSUE AGE: FEMALE 55 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,367 9,354 45,872 10,367 9,354 45,872
2 11,025 10,710 9,716 45,872 10,710 9,716 45,872
3 11,576 11,057 10,084 45,872 11,057 10,084 45,872
4 12,155 11,408 10,607 45,872 11,408 10,607 45,872
5 12,763 11,760 10,983 45,872 11,760 10,983 45,872
6 13,401 12,111 11,560 45,872 12,111 11,560 45,872
7 14,071 12,466 11,942 45,872 12,460 11,936 45,872
8 14,775 12,832 12,537 45,872 12,801 12,507 45,872
9 15,513 13,209 12,946 45,872 13,130 12,867 45,872
10 16,289 13,598 13,568 45,872 13,441 13,411 45,872
11 17,103 14,113 14,083 45,872 13,839 13,809 45,872
12 17,959 14,648 14,618 45,872 14,215 14,185 45,872
13 18,856 15,204 15,174 45,872 14,562 14,532 45,872
14 19,799 15,783 15,753 45,872 14,871 14,841 45,872
15 20,789 16,385 16,355 45,872 15,134 15,104 45,872
16 21,829 17,012 16,982 45,872 15,335 15,305 45,872
17 22,920 17,663 17,633 45,872 15,456 15,426 45,872
18 24,066 18,341 18,311 45,872 15,474 15,444 45,872
19 25,270 19,045 19,015 45,872 15,358 15,328 45,872
20 26,533 19,778 19,748 45,872 15,072 15,042 45,872
21 27,860 20,541 20,511 45,872 14,576 14,546 45,872
22 29,253 21,334 21,304 45,872 13,822 13,792 45,872
23 30,715 22,159 22,129 45,872 12,751 12,721 45,872
24 32,251 23,016 22,986 45,872 11,289 11,259 45,872
25 33,864 23,909 23,879 45,872 9,334 9,304 45,872
35 55,160 35,059 35,029 45,872 - - 45,872
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $45,872
ISSUE AGE: MALE 55 PREFERRED
ISSUE AGE: FEMALE 55 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.52% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,777 8,794 45,872 9,777 8,794 45,872
2 11,025 9,523 8,589 45,872 9,523 8,589 45,872
3 11,576 9,267 8,379 45,872 9,267 8,379 45,872
4 12,155 9,005 8,300 45,872 9,005 8,300 45,872
5 12,763 8,737 8,074 45,872 8,737 8,074 45,872
6 13,401 8,473 8,020 45,872 8,460 8,007 45,872
7 14,071 8,216 7,796 45,872 8,170 7,752 45,872
8 14,775 7,966 7,737 45,872 7,863 7,637 45,872
9 15,513 7,723 7,519 45,872 7,534 7,334 45,872
10 16,289 7,486 7,456 45,872 7,174 7,144 45,872
11 17,103 7,314 7,284 45,872 6,834 6,804 45,872
12 17,959 7,146 7,116 45,872 6,445 6,415 45,872
13 18,856 6,980 6,950 45,872 6,000 5,970 45,872
14 19,799 6,818 6,788 45,872 5,487 5,457 45,872
15 20,789 6,659 6,629 45,872 4,895 4,865 45,872
16 21,829 6,502 6,472 45,872 4,204 4,174 45,872
17 22,920 6,349 6,319 45,872 3,390 3,360 45,872
18 24,066 6,199 6,169 45,872 2,422 2,392 45,872
19 25,270 6,051 6,021 45,872 1,258 1,228 45,872
20 26,533 5,907 5,877 45,872 - - -
21 27,860 5,765 5,735 45,872 - - -
22 29,253 5,625 5,595 45,872 - - -
23 30,715 5,489 5,459 45,872 - - -
24 32,251 5,355 5,325 45,872 - - -
25 33,864 5,224 5,194 45,872 - - -
35 55,160 4,039 4,009 45,872 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $45,872
ISSUE AGE: MALE 55 PREFERRED
ISSUE AGE: FEMALE 55 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,587 9,807 45,872 10,587 9,807 45,872
2 11,025 11,636 10,856 45,872 11,636 10,856 45,872
3 11,576 12,785 12,005 45,872 12,785 12,005 45,872
4 12,155 14,044 13,414 45,872 14,044 13,414 45,872
5 12,763 15,423 14,793 45,872 15,423 14,793 45,872
6 13,401 16,934 16,504 45,872 16,934 16,504 45,872
7 14,071 18,588 18,158 45,872 18,588 18,158 45,872
8 14,775 20,399 20,169 45,872 20,399 20,169 45,872
9 15,513 22,382 22,152 45,872 22,382 22,152 45,872
10 16,289 24,555 24,525 45,872 24,555 24,525 45,872
11 17,103 26,979 26,949 45,872 26,979 26,949 45,872
12 17,959 29,647 29,617 45,872 29,647 29,617 45,872
13 18,856 32,591 32,561 45,872 32,591 32,561 45,872
14 19,799 35,849 35,819 45,872 35,849 35,819 45,872
15 20,789 39,465 39,435 45,872 39,465 39,435 45,872
16 21,829 43,473 43,443 49,994 43,473 43,443 49,994
17 22,920 47,888 47,858 54,113 47,888 47,858 54,113
18 24,066 52,753 52,753 58,555 52,753 52,753 58,555
19 25,270 58,150 58,150 63,383 58,150 58,150 63,383
20 26,533 64,069 64,069 69,835 64,069 64,069 69,835
21 27,860 70,580 70,580 76,226 70,580 70,580 76,226
22 29,253 77,745 77,745 83,186 77,745 77,745 83,186
23 30,715 85,593 85,593 91,584 85,593 85,593 91,584
24 32,251 94,235 94,235 99,889 94,235 94,235 99,889
25 33,864 103,694 103,694 109,915 103,694 103,694 109,915
35 55,160 267,687 267,687 281,070 261,035 261,035 274,086
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $45,872
ISSUE AGE: MALE 55 PREFERRED
ISSUE AGE: FEMALE 55 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,017 9,237 45,872 10,017 9,237 45,872
2 11,025 10,415 9,635 45,872 10,415 9,635 45,872
3 11,576 10,821 10,041 45,872 10,821 10,041 45,872
4 12,155 11,236 10,606 45,872 11,236 10,606 45,872
5 12,763 11,657 11,027 45,872 11,657 11,027 45,872
6 13,401 12,083 11,653 45,872 12,083 11,653 45,872
7 14,071 12,518 12,088 45,872 12,512 12,082 45,872
8 14,775 12,970 12,740 45,872 12,940 12,710 45,872
9 15,513 13,439 13,209 45,872 13,361 13,131 45,872
10 16,289 13,926 13,896 45,872 13,772 13,742 45,872
11 17,103 14,453 14,423 45,872 14,188 14,158 45,872
12 17,959 15,002 14,972 45,872 14,582 14,552 45,872
13 18,856 15,573 15,543 45,872 14,948 14,918 45,872
14 19,799 16,167 16,137 45,872 15,279 15,249 45,872
15 20,789 16,784 16,754 45,872 15,565 15,535 45,872
16 21,829 17,426 17,396 45,872 15,792 15,762 45,872
17 22,920 18,094 18,064 45,872 15,943 15,913 45,872
18 24,066 18,789 18,759 45,872 15,994 15,964 45,872
19 25,270 19,512 19,482 45,872 15,915 15,885 45,872
20 26,533 20,264 20,234 45,872 15,672 15,642 45,872
21 27,860 21,045 21,015 45,872 15,226 15,196 45,872
22 29,253 21,859 21,829 45,872 14,531 14,501 45,872
23 30,715 22,705 22,675 45,872 13,530 13,500 45,872
24 32,251 23,584 23,554 45,872 12,152 12,122 45,872
25 33,864 24,500 24,470 45,872 10,299 10,269 45,872
35 55,160 35,934 35,904 45,872 - - 45,872
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $45,872
ISSUE AGE: MALE 55 PREFERRED
ISSUE AGE: FEMALE 55 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.52% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,447 8,709 45,872 9,447 8,709 45,872
2 11,025 9,261 8,536 45,872 9,261 8,536 45,872
3 11,576 9,068 8,358 45,872 9,068 8,358 45,872
4 12,155 8,869 8,307 45,872 8,869 8,307 45,872
5 12,763 8,660 8,111 45,872 8,660 8,111 45,872
6 13,401 8,453 8,085 45,872 8,440 8,072 45,872
7 14,071 8,250 7,890 45,872 8,204 7,846 45,872
8 14,775 8,052 7,861 45,872 7,948 7,759 45,872
9 15,513 7,857 7,670 45,872 7,667 7,484 45,872
10 16,289 7,667 7,637 45,872 7,354 7,324 45,872
11 17,103 7,491 7,461 45,872 7,012 6,982 45,872
12 17,959 7,319 7,289 45,872 6,622 6,592 45,872
13 18,856 7,150 7,120 45,872 6,175 6,145 45,872
14 19,799 6,985 6,955 45,872 5,662 5,632 45,872
15 20,789 6,822 6,792 45,872 5,069 5,039 45,872
16 21,829 6,663 6,633 45,872 4,378 4,348 45,872
17 22,920 6,507 6,477 45,872 3,565 3,535 45,872
18 24,066 6,353 6,323 45,872 2,598 2,568 45,872
19 25,270 6,203 6,173 45,872 1,436 1,406 45,872
20 26,533 6,055 6,025 45,872 31 1 45,872
21 27,860 5,911 5,881 45,872 - - -
22 29,253 5,769 5,739 45,872 - - -
23 30,715 5,629 5,599 45,872 - - -
24 32,251 5,493 5,463 45,872 - - -
25 33,864 5,359 5,329 45,872 - - -
35 55,160 4,151 4,121 45,872 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $28,491
ISSUE AGE: MALE 65 PREFERRED
ISSUE AGE: FEMALE 65 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,951 9,924 28,491 10,951 9,924 28,491
2 11,025 11,939 10,920 28,491 11,939 10,920 28,491
3 11,576 13,001 11,993 28,491 13,001 11,993 28,491
4 12,155 14,145 13,303 28,491 14,142 13,299 28,491
5 12,763 15,393 14,570 28,491 15,369 14,547 28,491
6 13,401 16,753 16,156 28,491 16,692 16,095 28,491
7 14,071 18,237 17,670 28,491 18,121 17,556 28,491
8 14,775 19,855 19,526 28,491 19,671 19,343 28,491
9 15,513 21,620 21,336 28,491 21,359 21,076 28,491
10 16,289 23,544 23,514 28,491 23,212 23,182 28,491
11 17,103 25,861 25,831 28,491 25,472 25,442 28,491
12 17,959 28,456 28,426 30,448 28,021 27,991 29,982
13 18,856 31,307 31,277 33,498 30,827 30,797 32,984
14 19,799 34,445 34,415 36,511 33,916 33,886 35,951
15 20,789 37,879 37,849 40,151 37,297 37,267 39,535
16 21,829 41,663 41,633 43,746 41,023 40,993 43,074
17 22,920 45,801 45,771 48,091 45,097 45,067 47,351
18 24,066 50,319 50,319 52,835 49,545 49,515 52,022
19 25,270 55,316 55,316 58,081 54,393 54,393 57,113
20 26,533 60,808 60,808 63,848 59,702 59,702 62,687
21 27,860 66,846 66,846 70,188 65,470 65,470 68,743
22 29,253 73,483 73,483 77,157 71,726 71,726 75,312
23 30,715 80,780 80,780 84,818 78,502 78,502 82,427
24 32,251 88,801 88,801 93,240 85,830 85,830 90,121
25 33,864 97,618 97,618 102,498 93,741 93,741 98,428
35 55,160 251,572 251,572 254,087 232,000 232,000 234,319
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $28,491
ISSUE AGE: MALE 65 PREFERRED
ISSUE AGE: FEMALE 65 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,361 9,348 28,491 10,361 9,348 28,491
2 11,025 10,683 9,689 28,491 10,683 9,689 28,491
3 11,576 10,992 10,020 28,491 10,992 10,020 28,491
4 12,155 11,311 10,511 28,491 11,284 10,485 28,491
5 12,763 11,640 10,865 28,491 11,554 10,780 28,491
6 13,401 11,980 11,430 28,491 11,795 11,247 28,491
7 14,071 12,330 11,807 28,491 11,998 11,478 28,491
8 14,775 12,691 12,398 28,491 12,153 11,862 28,491
9 15,513 13,064 12,801 28,491 12,244 11,984 28,491
10 16,289 13,449 13,419 28,491 12,256 12,226 28,491
11 17,103 13,957 13,927 28,491 12,270 12,240 28,491
12 17,959 14,486 14,456 28,491 12,171 12,141 28,491
13 18,856 15,036 15,006 28,491 11,934 11,904 28,491
14 19,799 15,608 15,578 28,491 11,530 11,500 28,491
15 20,789 16,203 16,173 28,491 10,915 10,885 28,491
16 21,829 16,822 16,792 28,491 10,032 10,002 28,491
17 22,920 17,466 17,436 28,491 8,797 8,767 28,491
18 24,066 18,136 18,106 28,491 7,094 7,064 28,491
19 25,270 18,832 18,802 28,491 4,760 4,730 28,491
20 26,533 19,557 19,527 28,491 1,571 1,541 28,491
21 27,860 20,310 20,280 28,491 - - -
22 29,253 21,094 21,064 28,491 - - -
23 30,715 21,909 21,879 28,491 - - -
24 32,251 22,757 22,727 28,491 - - -
25 33,864 23,639 23,609 28,491 - - -
35 55,160 34,659 34,629 35,005 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 1
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $28,491
ISSUE AGE: MALE 65 PREFERRED
ISSUE AGE: FEMALE 65 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.52% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,771 8,788 28,491 9,771 8,788 28,491
2 11,025 9,496 8,564 28,491 9,496 8,564 28,491
3 11,576 9,212 8,330 28,491 9,200 8,319 28,491
4 12,155 8,935 8,235 28,491 8,878 8,182 28,491
5 12,763 8,666 8,008 28,491 8,523 7,875 28,491
6 13,401 8,404 7,954 28,491 8,126 7,690 28,491
7 14,071 8,149 7,732 28,491 7,676 7,281 28,491
8 14,775 7,901 7,673 28,491 7,157 6,948 28,491
9 15,513 7,659 7,457 28,491 6,550 6,372 28,491
10 16,289 7,424 7,394 28,491 5,831 5,801 28,491
11 17,103 7,253 7,223 28,491 5,018 4,988 28,491
12 17,959 7,086 7,056 28,491 4,028 3,998 28,491
13 18,856 6,921 6,891 28,491 2,826 2,796 28,491
14 19,799 6,760 6,730 28,491 1,363 1,333 28,491
15 20,789 6,602 6,572 28,491 - - -
16 21,829 6,447 6,417 28,491 - - -
17 22,920 6,295 6,265 28,491 - - -
18 24,066 6,145 6,115 28,491 - - -
19 25,270 5,999 5,969 28,491 - - -
20 26,533 5,855 5,825 28,491 - - -
21 27,860 5,714 5,684 28,491 - - -
22 29,253 5,576 5,546 28,491 - - -
23 30,715 5,440 5,410 28,491 - - -
24 32,251 5,307 5,277 28,491 - - -
25 33,864 5,177 5,147 28,491 - - -
35 55,160 4,001 3,971 28,491 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $28,491
ISSUE AGE: MALE 65 PREFERRED
ISSUE AGE: FEMALE 65 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,581 9,801 28,491 10,581 9,801 28,491
2 11,025 11,609 10,829 28,491 11,609 10,829 28,491
3 11,576 12,720 11,940 28,491 12,720 11,940 28,491
4 12,155 13,929 13,299 28,491 13,923 13,293 28,491
5 12,763 15,256 14,626 28,491 15,228 14,598 28,491
6 13,401 16,713 16,283 28,491 16,645 16,215 28,491
7 14,071 18,312 17,882 28,491 18,188 17,758 28,491
8 14,775 20,067 19,837 28,491 19,875 19,645 28,491
9 15,513 21,993 21,763 28,491 21,730 21,500 28,491
10 16,289 24,109 24,079 28,491 23,785 23,755 28,491
11 17,103 26,496 26,466 28,615 26,125 26,095 28,491
12 17,959 29,163 29,133 31,204 28,752 28,722 30,764
13 18,856 32,085 32,055 34,330 31,632 31,602 33,846
14 19,799 35,301 35,271 37,419 34,803 34,773 36,890
15 20,789 38,822 38,792 41,151 38,273 38,243 40,569
16 21,829 42,701 42,671 44,836 42,097 42,067 44,202
17 22,920 46,944 46,914 49,290 46,279 46,249 48,592
18 24,066 51,575 51,575 54,153 50,844 50,844 53,386
19 25,270 56,696 56,696 59,530 55,854 55,854 58,646
20 26,533 62,326 62,326 65,441 61,305 61,305 64,369
21 27,860 68,514 68,514 71,939 67,227 67,227 70,588
22 29,253 75,317 75,317 79,082 73,651 73,651 77,333
23 30,715 82,795 82,795 86,935 80,609 80,609 84,639
24 32,251 91,016 91,016 95,567 88,134 88,134 92,540
25 33,864 100,054 100,054 105,056 96,258 96,258 101,070
35 55,160 257,849 257,849 260,427 238,227 238,227 240,608
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $28,491
ISSUE AGE: MALE 65 PREFERRED
ISSUE AGE: FEMALE 65 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6.00% (5.48% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 10,011 9,231 28,491 10,011 9,231 28,491
2 11,025 10,387 9,607 28,491 10,387 9,607 28,491
3 11,576 10,756 9,976 28,491 10,754 9,974 28,491
4 12,155 11,140 10,510 28,491 11,109 10,479 28,491
5 12,763 11,538 10,908 28,491 11,446 10,816 28,491
6 13,401 11,952 11,522 28,491 11,759 11,329 28,491
7 14,071 12,382 11,952 28,491 12,040 11,610 28,491
8 14,775 12,828 12,598 28,491 12,278 12,048 28,491
9 15,513 13,292 13,062 28,491 12,459 12,229 28,491
10 16,289 13,773 13,743 28,491 12,568 12,538 28,491
11 17,103 14,294 14,264 28,491 12,606 12,576 28,491
12 17,959 14,837 14,807 28,491 12,536 12,506 28,491
13 18,856 15,401 15,371 28,491 12,333 12,303 28,491
14 19,799 15,988 15,958 28,491 11,970 11,940 28,491
15 20,789 16,598 16,568 28,491 11,405 11,375 28,491
16 21,829 17,233 17,203 28,491 10,582 10,552 28,491
17 22,920 17,893 17,863 28,491 9,423 9,393 28,491
18 24,066 18,580 18,550 28,491 7,816 7,786 28,491
19 25,270 19,294 19,264 28,491 5,607 5,577 28,491
20 26,533 20,037 20,007 28,491 2,579 2,549 28,491
21 27,860 20,810 20,780 28,491 - - -
22 29,253 21,614 21,584 28,491 - - -
23 30,715 22,450 22,420 28,491 - - -
24 32,251 23,319 23,289 28,491 - - -
25 33,864 24,224 24,194 28,491 - - -
35 55,160 35,526 35,496 35,881 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE (VERS. 3)
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 2
INITIAL PREMIUM: $10,000
INITIAL FACE AMOUNT: $28,491
ISSUE AGE: MALE 65 PREFERRED
ISSUE AGE: FEMALE 65 PREFERRED
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0.00% (-0.52% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUM --------------- ------------------
END OF ACCUMULATED CASH CASH
CONTRACT AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- -------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 9,441 8,703 28,491 9,441 8,703 28,491
2 11,025 9,233 8,510 28,491 9,233 8,510 28,491
3 11,576 9,014 8,308 28,491 9,001 8,296 28,491
4 12,155 8,800 8,242 28,491 8,739 8,185 28,491
5 12,763 8,590 8,044 28,491 8,442 7,905 28,491
6 13,401 8,384 8,019 28,491 8,099 7,745 28,491
7 14,071 8,183 7,826 28,491 7,700 7,362 28,491
8 14,775 7,986 7,796 28,491 7,229 7,055 28,491
9 15,513 7,792 7,607 28,491 6,667 6,504 28,491
10 16,289 7,603 7,573 28,491 5,990 5,960 28,491
11 17,103 7,429 7,399 28,491 5,179 5,149 28,491
12 17,959 7,258 7,228 28,491 4,194 4,164 28,491
13 18,856 7,090 7,060 28,491 2,997 2,967 28,491
14 19,799 6,926 6,896 28,491 1,541 1,511 28,491
15 20,789 6,765 6,735 28,491 - - -
16 21,829 6,606 6,576 28,491 - - -
17 22,920 6,451 6,421 28,491 - - -
18 24,066 6,299 6,269 28,491 - - -
19 25,270 6,149 6,119 28,491 - - -
20 26,533 6,003 5,973 28,491 - - -
21 27,860 5,859 5,829 28,491 - - -
22 29,253 5,718 5,688 28,491 - - -
23 30,715 5,580 5,550 28,491 - - -
24 32,251 5,444 5,414 28,491 - - -
25 33,864 5,311 5,281 28,491 - - -
35 55,160 4,112 4,082 28,491 - - -
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and mortality and expense risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and mortality and expense risk rates.
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>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
----------------------------------------
To the Board of Directors of
Hart Life Insurance Company:
We have audited the accompanying statutory balance sheets of Hart Life Insurance
Company (a Connecticut Corporation and wholly owned subsidiary of Hartford Life
and Accident Insurance Company) (the Company) as of December 31, 1999 and 1998,
and the related statutory statements of operations, changes in capital and
surplus, and cash flows for each of the three years in the period ended December
31, 1999. These statutory financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
statutory financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
The Company presents its financial statements in conformity with statutory
accounting practices as described in Note 2 of notes to statutory financial
statements. When financial statements are presented for purposes other than for
filing with a regulatory agency, auditing standards generally accepted in the
United States require that an auditors' report on them state whether they are
presented in conformity with accounting principles generally accepted in the
United States. The accounting practices used by the Company vary from accounting
principles generally accepted in the United States as explained and quantified
in Note 2.
In our opinion, because of the effects of the matter discussed in the preceding
paragraph, the statutory financial statements referred to above do not present
fairly, in conformity with accounting principles generally accepted in the
United States, the financial position of the Company as of December 31, 1999 and
1998, or the results of its operations or its cash flows for each of the three
years in the period ended December 31, 1999.
<PAGE>
In our opinion, the statutory financial statements referred to above present
fairly, in all material respects, the financial position of the Company as of
December 31, 1999 and 1998, and the results of its operations and its cash flows
for each of the three years in the period ended December 31, 1999 in conformity
with statutory accounting practices as described in Note 2.
Hartford, Connecticut ARTHUR ANDERSEN LLP
January 31, 2000
<PAGE>
HART LIFE INSURANCE COMPANY
(FORMERLY ALPINE LIFE INSURANCE COMPANY)
BALANCE SHEETS
(STATUTORY BASIS)
($000)
<TABLE>
<CAPTION>
AS OF DECEMBER 31,
--------------------
1999 1998
------- -------
<S> <C> <C>
ASSETS
Bonds $ 7,617 $ 8,265
Cash and Short-Term Investments 2,723 1,791
- --------------------------------------------------------------------------------
TOTAL CASH AND INVESTED ASSETS 10,340 10,056
- --------------------------------------------------------------------------------
Investment Income Due and Accrued 169 199
Other Assets 39 134
- --------------------------------------------------------------------------------
TOTAL ASSETS $10,548 $10,389
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
LIABILITIES
Payables to Affiliates $ 75 $ 65
Federal Income Taxes Accrued -- 132
Other Liabilities 7 141
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 82 338
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CAPITAL AND SURPLUS
Common Stock 2,500 2,500
Gross Paid-In and Contributed Surplus 6,203 6,203
Unassigned Funds 1,763 1,348
- --------------------------------------------------------------------------------
TOTAL CAPITAL AND SURPLUS 10,466 10,051
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL LIABILITIES, CAPITAL AND SURPLUS $10,548 $10,389
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of
these statutory basis financial statements.
3
<PAGE>
HART LIFE INSURANCE COMPANY
(FORMERLY ALPINE LIFE INSURANCE COMPANY)
STATEMENTS OF OPERATIONS
(STATUTORY BASIS)
($000)
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------
-----------------------------------------------------
1999 1998 1997
--------------- --------------- ---------------
<S> <C> <C> <C>
REVENUES
Net Investment Income $ 537 $ 559 $ 528
Amortization of Interest Maintenance Reserve (7) (25) (50)
Other Revenues -- -- 2
- ------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 530 534 480
- ------------------------------------------------------------------------------------------------------------------
BENEFITS AND EXPENSES
General Insurance Expenses 18 3 --
Insurance Taxes, Licenses and Fees 51 58 137
- ------------------------------------------------------------------------------------------------------------------
TOTAL BENEFITS AND EXPENSES 69 61 137
- ------------------------------------------------------------------------------------------------------------------
NET GAIN FROM OPERATIONS BEFORE FEDERAL INCOME TAX EXPENSE 461 473 343
Federal Income Tax Expense 57 92 135
- ------------------------------------------------------------------------------------------------------------------
NET GAIN FROM OPERATIONS 404 381 208
- ------------------------------------------------------------------------------------------------------------------
Net Realized Capital Gains, after tax 1 -- --
- ------------------------------------------------------------------------------------------------------------------
NET INCOME $ 405 $ 381 $ 208
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of
these statutory basis financial statements.
4
<PAGE>
HART LIFE INSURANCE COMPANY
(FORMERLY ALPINE LIFE INSURANCE COMPANY)
STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS
(STATUTORY BASIS)
($000)
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------
1999 1998 1997
--------------- --------------- ---------------
<S> <C> <C> <C>
COMMON STOCK,
- --------------------------------------------------------------------------------------------
Beginning and End of Year $ 2,500 $ 2,500 $ 2,500
- --------------------------------------------------------------------------------------------
GROSS PAID-IN AND CONTRIBUTED SURPLUS,
- --------------------------------------------------------------------------------------------
Beginning and End of Year 6,203 6,203 6,203
- --------------------------------------------------------------------------------------------
UNASSIGNED FUNDS
Balance, Beginning of Year 1,348 942 685
Net Income 405 381 208
Change in Non-Admitted Assets 10 25 49
- --------------------------------------------------------------------------------------------
Balance, End of Year 1,763 1,348 942
- --------------------------------------------------------------------------------------------
CAPITAL AND SURPLUS,
- --------------------------------------------------------------------------------------------
End of Year $ 10,466 $ 10,051 $ 9,645
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of
these statutory basis financial statements.
5
<PAGE>
HART LIFE INSURANCE COMPANY
(FORMERLY ALPINE LIFE INSURANCE COMPANY)
STATEMENTS OF CASH FLOWS
(STATUTORY BASIS)
($000)
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
----------------------------------
1999 1998 1997
------- ---------- ----------
<S> <C> <C> <C>
OPERATING ACTIVITIES
Net Investment Income $ 680 $ 658 $ 558
------- ---------- ----------
TOTAL INCOME 680 658 558
------- ---------- ----------
Benefits Paid -- -- (621)
Federal Income Tax Payments 213 34 84
Other Expenses 82 84 180
------- ---------- ----------
TOTAL BENEFITS AND EXPENSES 295 118 (357)
------- ---------- ----------
- -----------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 385 540 915
- -----------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
PROCEEDS FROM INVESTMENTS SOLD
Bonds 2,242 150 1,345
------- ---------- ----------
NET INVESTMENT PROCEEDS 2,242 150 1,345
------- ---------- ----------
COST OF INVESTMENTS ACQUIRED
Bonds 1,702 153 2,581
------- ---------- ----------
TOTAL INVESTMENTS ACQUIRED 1,702 153 2,581
------- ---------- ----------
- -----------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES 540 (3) (1,236)
- -----------------------------------------------------------------------------------------------------------------
FINANCING AND MISCELLANEOUS ACTIVITIES
Net other cash provided (used) 7 (55) 63
- -----------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY (USED FOR) FINANCING AND MISCELLANEOUS ACTIVITIES 7 (55) 63
- -----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS 932 482 (258)
CASH AND SHORT-TERM INVESTMENTS, BEGINNING OF YEAR 1,791 1,309 1,567
- -----------------------------------------------------------------------------------------------------------------
CASH AND SHORT-TERM INVESTMENTS, END OF YEAR $ 2,723 $ 1,791 $ 1,309
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of
these statutory basis financial statements.
6
<PAGE>
HART LIFE INSURANCE COMPANY
(FORMERLY ALPINE LIFE INSURANCE COMPANY)
NOTES TO FINANCIAL STATEMENTS
(STATUTORY BASIS)
DECEMBER 31, 1999
(AMOUNTS IN THOUSANDS UNLESS OTHERWISE STATED)
1. ORGANIZATION AND DESCRIPTION OF BUSINESS:
-----------------------------------------
Hart Life Insurance Company (formerly Alpine Life Insurance Company) ("Hart
Life" or the "Company") is a wholly owned subsidiary of Hartford Life and
Accident Insurance Company ("HLA"), which is a direct subsidiary of
Hartford Life, Inc. ("HLI"). HLI is indirectly majority owned by The
Hartford Financial Services Group, Inc. ("The Hartford"). On February 10,
1997, HLI filed a registration statement, as amended, with the Securities
and Exchange Commission relating to the initial public offering of HLI
Class A Common Stock (the "Offering"). Pursuant to the Offering on May 22,
1997, HLI sold to the public 26 million shares, representing approximately
18.6% of the equity ownership of HLI. In 1999, Hart Life Insurance Company
changed its name from Alpine Life Insurance Company. Hart Life is licensed
in several states to sponsor variable and fixed annuities.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
-------------------------------------------
BASIS OF PRESENTATION
---------------------
The accompanying Hart Life statutory basis financial statements were
prepared in conformity with statutory accounting practices prescribed or
permitted by the National Association of Insurance Commissioners ("NAIC")
and the State of Connecticut Department of Insurance for 1999 and 1998,
respectively, and the NAIC and the New Jersey Department of Insurance for
1997. Certain reclassifications have been made to prior year financial
information to conform to the current year presentation.
Current prescribed statutory accounting practices include accounting
publications of the NAIC, as well as state laws, regulations and general
administrative rules. Permitted statutory accounting practices encompass
accounting practices approved by state insurance departments. The Company
does not follow any permitted statutory accounting practices that have a
material effect on statutory surplus, statutory net income or risk-based
capital.
The preparation of financial statements in conformity with statutory
accounting principles, requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reported periods. Actual results could differ from those
estimates. Although some variability is inherent in these estimates,
management believes the amounts provided are adequate.
STATUTORY ACCOUNTING PRACTICES VERSUS GAAP
------------------------------------------
Statutory accounting practices and generally accepted accounting principles
("GAAP") differ in certain significant respects. These differences
principally involve:
(1) treatment of policy acquisition costs (commissions, underwriting and
selling expenses, etc.) which are charged to expense when incurred for
statutory purposes rather than on a pro-rata basis over the expected
life and gross profit stream of the policy for GAAP purposes;
(2) recognition of premium revenues, which for statutory purposes are
generally recorded as collected or when due during the premium paying
period of the contract and which for GAAP purposes, for universal life
policies and investment products, generally only consist of charges
assessed to policy account balances for cost of insurance, policy
administration and surrenders. When policy charges received
7
<PAGE>
relate to coverage or services to be provided in the future, the
charges are recognized as revenue on a pro-rata basis over the
expected life and gross profit stream of the policy. Also, for GAAP
purposes, premiums for traditional life insurance policies are
recognized as revenues when they are due from policyholders;
(3) development of liabilities for future policy benefits, which for
statutory purposes predominantly use interest rate and mortality
assumptions prescribed by the NAIC which may vary considerably from
interest and mortality assumptions used under GAAP;
(4) providing for income taxes based on current taxable income only for
statutory purposes, rather than establishing additional assets or
liabilities for deferred Federal income taxes to recognize the tax
effect related to reporting revenues and expenses in different periods
for financial reporting and tax return purposes or required under
GAAP;
(5) excluding certain assets designated as non-admitted assets (e.g.,
negative Interest Maintenance Reserve and past due agents' balances)
from the balance sheet for statutory purposes by directly charging
surplus;
(6) the calculation of post retirement benefits obligation which, for
statutory accounting, excludes non-vested employees whereas GAAP
liabilities include a provision for such employees; statutory and GAAP
accounting permit either immediate recognition of the liability or
straight-line amortization of the liability over a period not to
exceed 20 years. For GAAP, The Hartford's obligation was immediately
recognized, whereas for statutory accounting, the obligation is being
recognized ratably over a 20-year period;
(7) establishing a formula reserve for realized and unrealized losses due
to default and equity risk associated with certain invested assets
(Asset Valuation Reserve) for statutory purposes; as well as the
deferral and amortization of realized gains and losses, caused by
changes in interest rates during the period the asset is held, into
income over the remaining life to maturity of the asset sold (Interest
Maintenance Reserve) for statutory purposes; whereas on a GAAP basis,
no such formula reserve is required and realized gains and losses are
recognized in the period the asset is sold;
(8) the reporting of reserves and benefits net of reinsurance ceded for
statutory purposes; whereas on a GAAP basis, reserves are reported
gross of reinsurance with reserve credits presented as recoverable
assets;
(9) the reporting of fixed maturities at amortized cost for statutory
purposes, whereas GAAP requires that fixed maturities be classified as
"held-to-maturity", "available-for-sale" or "trading", based on the
Company's intentions with respect to the ultimate disposition of the
security and its ability to affect those intentions. The Company's
bonds were classified on a GAAP basis as "available-for-sale" and
accordingly, those investments and common stocks were reflected at
fair value with the corresponding impact included as a separate
component of Stockholder's Equity; as well as the change in the basis
of the Company's other invested assets, which consist primarily of
limited partnership investments, which is recognized as income under
GAAP and as a change in surplus under statutory accounting; and
(10) statutory accounting calculates separate account liabilities using
prescribed actuarial methodologies, which approximate the market value
of separate account assets, less applicable surrender charges. The
separate account surplus generated by these reserving methods is
recorded as an amount due to or from the separate account on the
statutory basis balance sheet, with changes reflected in the
8
<PAGE>
statutory basis results of operations. On a GAAP basis, separate
account assets and liabilities are held at fair value.
As of and for the years ended December 31, the significant differences
between statutory and GAAP basis net income and capital and surplus for the
Company are as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------------------------------------------------------------------------------------
<S> <C> <C> <C>
GAAP Net Income $ 267 $ 281 $ 212
Amortization of Goodwill 62 67 62
Deferred taxes 87 59 (21)
Interest maintenance reserve (10) (25) (50)
Other, net (1) (1) 5
------------------------------------------------------------------------------------------
Statutory Net Income $ 405 $ 381 $ 208
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
1999 1998 1997
------------------------------------------------------------------------------------------
GAAP Stockholder's Equity $ 12,468 $ 12,320 $ 11,970
Goodwill (2,149) (2,211) (2,278)
Deferred taxes 113 89 (7)
Unrealized losses (gains) on bonds 35 (146) (40)
Other, net (1) (1) --
------------------------------------------------------------------------------------------
Statutory Capital and Surplus $ 10,466 $ 10,051 $ 9,645
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
</TABLE>
AGGREGATE RESERVES FOR FUTURE BENEFITS AND LIABILITIES FOR PREMIUM AND
----------------------------------------------------------------------
OTHER DEPOSIT FUNDS
-------------------
Aggregate reserves for payment of future life, health and annuity benefits
were computed in accordance with applicable actuarial standards.
Accumulation and on-benefit annuity reserves are based principally on
individual annuity tables at various rates ranging from 4.5% to 10% and
using the Commissioners Annuity Reserve Valuation Method ("CARVM").
INVESTMENTS
-----------
Investments in bonds are carried at amortized cost. Bonds that are deemed
ineligible to be held at amortized cost by the NAIC Securities Valuation
Office ("SVO") are carried at the appropriate SVO published value. When a
reduction in the value of a security is deemed to be unrecoverable, the
decline in value is reported as a realized loss and the carrying value is
adjusted accordingly. Short-term investments consist of money market funds
and are stated at cost, which approximates fair value.
The Asset Valuation Reserve ("AVR") is designed to provide a standardized
reserving process for realized and unrealized losses due to default and
equity risks associated with invested assets. As of December 31, 1999 and
1998, the AVR balance was immaterial. Additionally, the Interest
Maintenance Reserve ("IMR") captures net realized capital gains and losses,
net of applicable income taxes, resulting from changes in interest rates
and amortizes these gains or losses into income over the life of the bond.
The IMR balance as of December 31, 1999 and December 31, 1998 were asset
balances of $1 and $10, respectively, and are reflected as non-admitted
assets in Unassigned Funds in accordance with statutory accounting
practices. Realized capital gains and losses, net of taxes, not included in
the IMR are reported in the statutory basis
9
<PAGE>
statements of operations. Realized investment gains and losses are
determined on a specific identification basis.
CODIFICATION
------------
The NAIC adopted the Codification of Statutory Accounting principles in
March 1998. The proposed effective date for this statutory accounting
guidance is January 1, 2001. It is expected that Connecticut, the Company's
domiciliary state, will adopt these accounting standards and, therefore,
the Company will make the necessary accounting and reporting changes
required for implementation. The Company has not yet determined the impact
that these new accounting standards will have on its statutory basis
financial statements.
3. INVESTMENTS:
------------
(a) COMPONENTS OF NET INVESTMENT INCOME
----------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Interest income from bonds and short-term investments $ 543 $ 561 $ 529
Interest and dividends from other investments - 3 1
-------------------------------------------------------------------------------------------------------------
Gross investment income 543 564 530
Less: Investment expenses (6) (5) (2)
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 537 $ 559 $ 528
-------------------------------------------------------------------------------------------------------------
</TABLE>
(b) COMPONENTS OF NET UNREALIZED CAPITAL (LOSSES) GAINS ON BONDS AND
---------------------------------------------------------------------
SHORT-TERM INVESTMENTS
----------------------
<TABLE>
<CAPTION>
1999 1998 1997
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized capital gains $ 5 $ 142 $ 52
Gross unrealized capital losses (39) (1) (12)
-------------------------------------------------------------------------------------------------------------
Net unrealized capital (losses) gains (34) 141 40
Balance, beginning of year 141 40 (56)
-------------------------------------------------------------------------------------------------------------
Change in net unrealized capital (losses) gains
on bonds and short-term investments $ (175) $ 101 $ 96
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>
(C) COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)
------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Bonds and short-term investments $ 3 $ - $ (1)
--------------------------------------------------------------------------------------------------------------
Realized capital gains (losses) 3 - (1)
Capital gains tax - - -
--------------------------------------------------------------------------------------------------------------
Net realized capital gains (losses) 3 - (1)
Less: amount transferred to the IMR 2 - (1)
--------------------------------------------------------------------------------------------------------------
Net realized capital gains $ 1 $ - $ -
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
Sales and maturities of investments in bonds and short-term investments for
the years ended December 31, 1999, 1998, and 1997 resulted in proceeds of
$18,822, $11,904, and $19,775, gross realized capital gains of $3 for 1999,
immaterial gross realized capital gains for 1998 and 1997, before transfer
to the IMR, and immaterial gross realized capital losses for 1999, 1998 and
1997.
(D) DERIVATIVE INVESTMENTS
--------------------------
The Company had no significant derivative holdings as of December 31, 1999
or 1998.
(E) CONCENTRATION OF CREDIT RISK
--------------------------------
Excluding U.S. government and government agency investments, the Company is
not exposed to any significant concentration of credit risk in fixed
maturities of a single issuer greater than 10% of capital and surplus as of
December 31, 1999.
(F) BONDS AND SHORT-TERM INVESTMENTS
------------------------------------
<TABLE>
<CAPTION>
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
1999 COST GAINS LOSSES VALUE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S government and government agencies and authorities:
-Guaranteed and sponsored $ 7,617 $ 5 $ (39) $ 7,583
Short-term investments 2,144 - - 2,144
Certificates of deposit 500 - - 500
-----------------------------------------------------------------------------------------------------------------------
Total bonds and short-term investments $ 10,261 $ 5 $ (39) $ 10,227
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
<CAPTION>
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
1998 COST GAINS LOSSES VALUE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S government and government agencies and authorities:
-Guaranteed and sponsored $ 8,265 $ 142 $ (1) $ 8,406
Short-term investments 1,287 - - 1,287
Certificates of deposit 500 - - 500
-----------------------------------------------------------------------------------------------------------------------
Total bonds and short-term investments $ 10,052 $ 142 $ (1) $ 10,193
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
The amortized cost and estimated fair value of bonds and short-term
investments as of December 31, 1999 by estimated maturity year are shown
below. Expected maturities differ from contractual maturities due to call
or prepayment provisions.
<TABLE>
<CAPTION>
AMORTIZED FAIR
MATURITY COST VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
One year or less $ 5,801 $ 5,782
Over one year through five years 4,460 4,445
--------------------------------------------------------------------------------
Total $ 10,261 $ 10,227
--------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
Bonds with a carrying value of $6,815 were on deposit as of December
31, 1999 with various regulatory authorities as required.
(G) FAIR VALUE OF FINANCIAL INSTRUMENTS BALANCE SHEET ITEMS
-----------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998
-------------------------- --------------------------
ESTIMATED ESTIMATED
CARRYING FAIR CARRYING FAIR
AMOUNT VALUE AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Bonds and short-term investments $ 10,261 $ 10,227 $ 10,052 $10,193
</TABLE>
The estimated fair value of bonds and short-term investments was determined
by the Company primarily using NAIC market values.
4. AGGREGATE RESERVES FOR FUTURE BENEFITS AND REINSURANCE
------------------------------------------------------
The Company's existing life reserves consist of deferred fixed annuities
and supplementary contracts. The Company cedes 100% of its insurance to Met
Life Security Insurance Company of Louisiana in order to eliminate its
insurance risk. Ceding this business, however, does not relieve the Company
of its primary liability to its policyholders, and therefore, if the
assuming reinsurer does not fulfill its obligations, the Company may suffer
losses.
There were no material reinsurance premiums assumed or ceded or reinsurance
recoverables from reinsurers outstanding as of, and for the years ended
December 31, 1999, 1998 or 1997.
The effect of reinsurance on reserve for future benefit balances as of
December 31, is summarized as follows:
<TABLE>
<CAPTION>
1999 1998
-----------------------------------------------------------------------------------------
<S> <C> <C>
Annuities $ 27,222 $ 29,059
Supplemental contracts 136 1,355
-----------------------------------------------------------------------------------------
27,358 30,414
Reinsurance ceded (27,358) (30,414)
-----------------------------------------------------------------------------------------
Reserves for Future Benefits, net $ - $ -
-----------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
An analysis of Annuity Actuarial Reserves and Deposit Liabilities by
Withdrawal Characteristics as of December 31, 1999 is as follows:
<TABLE>
<CAPTION>
% OF
AMOUNT TOTAL
----------------------------------------------------------------------------
<S> <C> <C>
At book value without adjustment (minimal or
no charge or adjustment): $ 6,538 23.9%
Not subject to discretionary withdrawal 20,820 76.1%
----------------------------------------------------------------------------
Total, gross 27,358 100.0%
Reinsurance ceded 27,358 100.0%
----------------------------------------------------------------------------
Total, net $ -
----------------------------------------------------------------
----------------------------------------------------------------
</TABLE>
5. RELATED PARTY TRANSACTIONS:
---------------------------
Transactions between the Company and its affiliates relate principally to
tax settlements, rental and service fees, capital contributions and
payments of dividends.
6. FEDERAL INCOME TAXES:
---------------------
The Company and The Hartford have entered into a tax sharing agreement
under which each member in the consolidated U.S. Federal income tax return
will make payments between them such that, with respect to any period, the
amount of taxes to be paid by the Company, subject to certain adjustments,
generally will be determined as though the Company were filing separate
Federal, state and local income tax returns.
As long as The Hartford continues to own at least 80% of the combined
voting power and 80% of the value of the outstanding capital stock of HLI,
the Company will be included for Federal income tax purposes in the
affiliated group of which The Hartford is the common parent. The Hartford
and its non-life subsidiaries filed a single consolidated Federal income
tax return for 1998 and 1997, and intend to file a separate consolidated
Federal income tax return for 1999. The life insurance companies filed a
separate consolidated Federal income tax return for 1998 and 1997, and
intend to file a separate consolidated Federal income tax return for 1999.
Federal income taxes paid by the Company were $213, $34, and $84 in 1999,
1998 and 1997, respectively. The effective tax rate was 12%, 20%, and 39%
in 1999, 1998 and 1997, respectively.
The following schedule provides a reconciliation of the tax provision
(including realized capital gains (losses)) at the U.S. Federal Statutory
rate to Federal income tax expense:
<TABLE>
<CAPTION>
1999 1998 1997
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Tax provision at U.S. Federal Statutory rate $ 162 $ 166 $ 120
Amortization of goodwill (113) (81) --
Investments and Other 8 7 15
- -----------------------------------------------------------------------------------------
Federal income tax expense $ 57 $ 92 $ 135
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
7. CAPITAL AND SURPLUS AND SHAREHOLDER DIVIDEND RESTRICTIONS:
----------------------------------------------------------
The maximum amount of dividends which can be paid to shareholders by
Connecticut domiciled insurance companies, without prior approval, is
generally restricted to the greater of 10% of surplus as of the preceding
December 31st or the net gain from operations for the previous year.
Dividends are paid as determined by the Board of Directors and are not
cumulative. No dividends were paid in 1999, 1998 or 1997. The amount
available for dividend in 2000 is approximately $797.
8. COMMITMENTS AND CONTINGENT LIABILITIES:
---------------------------------------
The Company is involved in various legal actions, which have arisen in the
normal course of its business. In the opinion of management, the ultimate
liability with respect to such lawsuits, as well as other contingencies, is
not considered to be material in relation to the capital and surplus of the
Company.
Under insurance guaranty fund laws in each state, insurers licensed to do
business can be assessed up to prescribed limits for policyholder losses
incurred by insolvent companies. In the opinion of management, guaranty
fund assessments are not considered to be material in relation to the
capital and surplus of the Company as of December 31, 1999 and 1998.
The Company's Federal income tax returns are routinely audited by the
Internal Revenue Service ("IRS"). The Company's 1997 and 1996 Federal
income tax returns are currently under audit by the IRS. As of March 31,
2000, the audit was in its initial stage and no material issues had been
raised.
14
<PAGE>
PART II
<PAGE>
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The facing sheet.
The prospectus consisting of___pages.
The undertaking to file reports.
The Rule 484 undertaking.
The signatures.
(1) The following exhibits included herewith correspond to those required by
paragraph A of the instructions for exhibits to Form N-8B-2.
(A1) Resolution of Board of Directors of Alpine Life Insurance
Company ("Alpine"), (now known as Hart Life Insurance Company),
authorizing the establishment of the Separate Account.(1)
(A2) Not applicable.
(A3a) Principal Underwriting Agreement.(1)
(A3b) Forms of Selling Agreements.(1)
(A3c) Not applicable.
(A4) Not applicable.
(A5) Form of Modified Single Premium Variable Life Insurance
Policy.(2)
(A6a) Charter of Hart Life Insurance Company(2) and Certificate of
Amendment.
(A6b) Bylaws of Hart Life Insurance Company (formerly Alpine Life
Insurance Company).(1)
(A7) Not applicable.
- --------
1 Incorporated by reference to the Pre-Effective Amendment No. 1 of the
Registration Statement No. 333-65511 filed on April 12, 1999.
2 Incorporated by reference to the initial filing of Registration No. 333-65437
filed on October 9, 1998.
<PAGE>
(A8) Not applicable.
(A9) Not applicable.
(A10) Form of Application for Modified Single Premium Variable Life
Insurance Policies.(1)
(A11) Memorandum describing transfer and redemption procedures.(1)
(2) Opinion and consent of Lynda Godkin, Senior Vice President, General Counsel
and Corporate Secretary.
(3) No financial statement will be omitted from the Prospectus pursuant to
Instruction 1 (b) or (c) of Part I.
(4) Not Applicable.
(5) Opinion and Consent of Deanne Osgood, FSA, MAAA.
(6) Consent of Arthur Andersen LLP, Independent Public Accountants.
(7) Power of Attorney.
(8) Organizational Chart.
<PAGE>
REPRESENTATION OF REASONABLENESS OF FEES
Hart Life Insurance Company ("Hart Life") 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 Hart
Life.
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities Exchange
Act of 1934, the undersigned registrant hereby undertakes to file with the
Securities and Exchange Commission such supplementary and periodic information,
documents, and reports as may be prescribed by any rule or regulation of the
Commission heretofore or hereafter duly adopted pursuant to authority conferred
in that section.
UNDERTAKINGS AND REPRESENTATIONS AS REQUIRED BY RULE 6e-3(T)
1. Separate Account Two meets the definition of "Separate Account" under Rule
6e-3(T).
2. Hart Life undertakes to keep and make available to the Commission upon
request any documents used to support any representation as to the
reasonableness of fees.
UNDERTAKING ON INDEMNIFICATION
Sections 33-770 to 33-778, inclusive, of the Connecticut General Statutes
("CGS") provide that a corporation may provide indemnification of or
advance expenses to a director, officer, employee or agent. Reference is
hereby made to Section 33-771(e) of CGS regarding indemnification of
directors and Section 33-776(d) of CGS regarding indemnification of
officers, employees and agents of Connecticut corporations. These statutes
provide, in general, that Connecticut corporations incorporated prior to
January 1, 1997 shall, except to the extent that their certificate of
incorporation expressly provides otherwise, indemnify their directors,
officers, employees and agents against "liability" (defined as the
obligation to pay a judgment, settlement, penalty, fine, including an
excise tax assessed with respect to an employee benefit plan, or reasonable
expenses incurred with respect to a proceeding) when (1) a determination is
made pursuant to Section 33-775 that the party seeking indemnification has
met the standard of conduct set forth in Section 33-771 or (2) a court has
determined that indemnification is appropriate pursuant to Section 33-774.
Under Section 33-775, the determination of and the authorization for
indemnification are made (a) by the disinterested directors, as defined in
Section 33-770(3); (b) by special counsel; (c) by the shareholders; or (d)
in the case of indemnification of an officer, agent or employee of the
corporation, by the general counsel of the corporation or such other
officer(s) as the board of directors may specify. Also,
<PAGE>
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 Securities
Distribution Company, Inc. ("HSD") are covered under a directors and
officers liability insurance policy issued to The Hartford Financial
Services Group, Inc. and its subsidiaries.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of
the Registrant pursuant to the foregoing provisions, or otherwise, the
Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment
by the Registrant of expenses incurred or paid by a director, officer or
controlling person of the Registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
INFORMATION REGARDING CERTAIN SALES LOADS, ADMINISTRATIVE, MANAGEMENT AND OTHER
FEES
Not applicable.
<PAGE>
OFFICERS AND DIRECTORS
The principal underwriter for Hart Life Insurance Company Separate Account Two
is Hartford Securities Distribution Company, Inc. The following is a list of
Officers and Directors:
- --------------------------------------------------------------------------------
NAME POSITION WITH HART
- --------------------------------------------------------------------------------
David A. Carlson Vice President
- --------------------------------------------------------------------------------
Mary Jane B. Fortin Vice President & Chief Accounting Officer
- --------------------------------------------------------------------------------
David T. Foy Senior Vice President and Treasurer, Director*
- --------------------------------------------------------------------------------
Lynda Godkin Senior Vice President, General Counsel &
Corporate Secretary, Director*
- --------------------------------------------------------------------------------
Thomas M. Marra Director*
- --------------------------------------------------------------------------------
Craig R. Raymond Senior Vice President & Chief Actuary
- --------------------------------------------------------------------------------
Lowndes A. Smith President & Chief Executive Office, Director*
- --------------------------------------------------------------------------------
David M. Znamierowski Senior Vice President & Chief Investment
Officer, Director*
- --------------------------------------------------------------------------------
* Denotes Board of Directors.
Unless otherwise indicated, the principal business address of each the
above individuals is P. O. Box 2999, Hartford, Connecticut 06104-2999.
<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 thereunto duly authorized, and attested, all in the
Town of Simsbury, and State of Connecticut, on the 11th day of April, 2000.
SEPARATE ACCOUNT TWO OF
HART LIFE INSURANCE COMPANY
(Registrant)
*By: Lynda Godkin
----------------------------------------------
Lynda Godkin, Senior Vice President,
General Counsel and Corporate Secretary*
*By: /s/ Marianne O'Doherty
-----------------------
Marianne O'Doherty
Attorney-in-Fact
HART LIFE INSURANCE COMPANY
(Depositor)
*By: Lynda Godkin
----------------------------------------------
Lynda Godkin, Senior Vice President,
General Counsel and Corporate Secretary*
Pursuant to the requirements of the Securities Act of 1933, as amended, this
Registration Statement has been signed below by the following persons and in the
capacity and on the date indicated.
David T. Foy, Senior Vice President and
Treasurer, Director*
Lynda Godkin, Senior Vice President, General *By: /s/ Marianne O'Doherty
Counsel and Corporate Secretary, Director* -----------------------
Thomas M. Marra, Director* Marianne O'Doherty
Lowndes A. Smith, President and Chief Attorney-in-fact
Executive Officer, Director *
David M. Znamierowski, Senior Vice President and Date: April 11, 2000
Chief Investment Officer, Director*
<PAGE>
EXHIBIT INDEX
(1)(A6a) Certificate of Amendment.
(2) Opinion and Consent of Lynda Godkin, Senior Vice President, General
Counsel, and Corporate Secretary.
(5) Opinion and Consent of Michael Winterfield, FSA, MAAA.
(6) Consent of Arthur Andersen LLP, Independent Public Accountants.
(7) Power of Attorney.
(8) Organizational Chart.
<PAGE>
CERTIFICATE OF AMENDMENT
STOCK CORPORATION
OFFICE OF THE SECRETARY OF THE STATE
30 TRINITY STREET/P.O. BOX 150470/HARTFORD, CT 06115-0470/NEW/1-97
- -------------------------------------------------------------------------------
SPACE FOR OFFICE USE ONLY
FILING #0002055684 PG 01 OF 05 VOL B-00308
FILED 12/22/1999 10:05 AM PAGE 02979
SECRETARY OF THE STATE
CONNECTICUT SECRETARY OF THE STATE
- -------------------------------------------------------------------------------
1. NAME OF CORPORATION:
Alpine Life Insurance Comapny
- -------------------------------------------------------------------------------
2. THE CERTIFICATE OF INCORPORATION IS (CHECK A., B. OR C.):
X A. AMENDED.
- ----
B. AMENDED AND RESTATED.
- ----
C. RESTATED.
- ----
- -------------------------------------------------------------------------------
3. TEXT OF EACH AMENDMENT/RESTATEMENT:
The Amended and Restated Certificate of Incorporation is amended by the
following resolution recommended by the Board of Directors on
December 14, 1999 and adopted by the Sole Shareholder on
December 14, 1999:
RESOLVED, that the Amended and Restated Certificate of Incorporation
of the Company be amended by changing the name of the Company in
each place that such name therein appears, such that the new name of
the Company shall be
HART LIFE INSURANCE COMPANY
such change to become effective as soon as is practicable. All other
sections of the Amended and Restated Certificate of Incorporation
shall remain unchanged and continue in full force and effect.
(PLEASE REFERENCE AN 8 1/2 X 11 ATTACHMENT IF ADDITIONAL SPACE IS NEEDED)
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SPACE FOR OFFICE USE ONLY
FILING #0002055684 PG 02 OF 05 VOL B-00308
FILED 12/22/1999 10:05 AM PAGE 02980
SECRETARY OF THE STATE
CONNECTICUT SECRETARY OF THE STATE
- -------------------------------------------------------------------------------
4. VOTE INFORMATION (CHECK A., B. OR C.)
X A. THE RESOLUTION WAS APPROVED BY SHAREHOLDERS AS FOLLOWS:
- ---- (SET FORTH ALL VOTING INFORMATION REQUIRED BY CONN. GEN. STAT.
SECTION 33-800 AS AMENDED IN THE SPACE PROVIDED BELOW)
The number of outstanding shares of the Corporation's common capital
stock entitled to vote thereon was 10,000. The vote favoring
adoption was 10,000 shares, which was sufficient for approval of the
resolution.
- -------------------------------------------------------------------------------
B. THE AMENDMENT WAS ADOPTED BY THE BOARD OF DIRECTORS WITHOUT
- ---- SHAREHOLDER ACTION. NO SHAREHOLDER VOTE WAS REQUIRED FOR ADOPTION.
C. THE AMENDMENT WAS ADOPTED BY THE INCORPORATORS WITHOUT SHAREHOLDER
- ---- ACTION. NO SHAREHOLDER VOTE WAS REQUIRED FOR ADOPTION.
- -------------------------------------------------------------------------------
5. EXECUTION
- -------------------------------------------------------------------------------
Dated this 14th day of December, 1999
- -------------------------------------------------------------------------------
Thomas A. Klee Assistant Corporate Secretary /s/ Thomas A. Klee
---------------- ----------------------------- -------------------
PRINT OR TYPE NAME OF CAPACITY OF SIGNATORY SIGNATURE
SIGNATORY
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
FILING #0002055684 PG 03 OF 05 VOL B-00308
FILED 12/22/1999 10:05 AM PAGE 02981
SECRETARY OF THE STATE
CONNECTICUT SECRETARY OF THE STATE
ALPINE LIFE INSURANCE COMPANY
UNANIMOUS WRITTEN CONSENT
OF THE
SOLE SHAREHOLDER
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY, being the sole shareholder of
ALPINE LIFE INSURANCE COMPANY, (the "Company") hereby consents in accordance
with Section 33-698 of the Connecticut Business Corporation Act, through the
undersigned officer, to the following resolutions, such action to have the
same force and effect as if taken at a meeting of the Shareholders of the
Company duly called and held for such purpose:
CHANGE OF CORPORATE NAME
- ------------------------
WHEREAS, the undersigned sole shareholder deems it in the best interest
of the Company to change the Company's name by amending the Amended and
Restated Certificate of Incorporation; and
WHEREAS, the Board of Directors of the Company has adopted resolutions
recommending such amendment;
NOW, THEREFORE, BE IT
RESOLVED, that the Amended and Restated Certificate of Incorporation
of the Company be amended by changing the name of the Company in each
place that such name therein appears, such that the new name of the
Company shall be
HART LIFE INSURANCE COMPANY
such change to become effective as soon as is practicable. All other
sections of the Amended and Restated Certificate of Incorporation shall
remain unchanged and continue in full force and effect; and be it further
RESOLVED, that the Board of Directors and officers of the Company are,
and each of the officers acting singly is, authorized and directed to
prepare and file the Certificate of Amendment and to do all acts and
things and to sign, seal, execute, acknowledge, certify, file, deliver
and record all papers, instruments, documents, agreements and
certificates, and to pay all charges, fees, taxes and other expenses, as
they or any of them may determine from time to time to be necessary or
appropriate in order to effectuate the purposes of the foregoing
resolution in each jurisdiction in which the Company is authorized,
qualified or licensed to do business.
<PAGE>
FILING #0002055684 PG 04 OF 05 VOL B-00308
FILED 12/22/1999 10:05 AM PAGE 02982
SECRETARY OF THE STATE
CONNECTICUT SECRETARY OF THE STATE
IN WITNESS WHEREOF, the undersigned has executed this Consent as of the 14th
day of December, 1999, the effective date of this action.
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
By: /s/ Lowndes A. Smith
--------------------------------------------
Name: Lowndes A. Smith
Title: President and Chief Executive Officer
<PAGE>
[LOGO] STATE OF CONNECTICUT
INSURANCE DEPARTMENT
FILING #0002055684 PG 05 OF 05 VOL B-00308
FILED 12/22/1999 10:05 AM PAGE 02983
SECRETARY OF THE STATE
CONNECTICUT SECRETARY OF THE STATE
THIS IS TO CERTIFY, THAT THE CERTIFICATE OF AMENDMENT TO THE CERTIFICATE
OF INCORPORATION OF ALPINE LIFE INSURANCE COMPANY, WITH RESPECT TO THE CHANGE
OF NAME TO HART LIFE INSURANCE COMPANY, HAS BEEN REVIEWED AND APPROVED.
WITNESS MY HAND AND OFFICIAL SEAL, AT HARTFORD,
THIS 21ST DAY OF DECEMBER, 1999
/s/ George M. Reider
----------------------
Insurance Commissioner
<PAGE>
[LOGO]
April 6, 2000 LYNDA GODKIN
Senior Vice President, General Counsel
Corporate Secretary
Board of Directors
Hart Life Insurance Company
200 Hopmeadow Street
Simsbury, CT 06089
RE: SEPARATE ACCOUNT TWO ("Separate Account")
HART LIFE INSURANCE COMPANY ("Company")
FILE NO. 333-65511
Dear Sir/Madam:
In my capacity as General Counsel of the Company, I have supervised the
establishment of the Separate Account by the Board of Directors of the Company
as a separate account for assets applicable to Policies offered by the Company
pursuant to Connecticut Law. I have participated in the preparation of the
registration statement for the Separate Account on Form S-6 under the Securities
Act of 1933 with respect to the Policies.
I am of the following opinion:
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 Separate Account is a duly authorized and 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 Separate Account equal to the reserves and other contract liabilities
with respect to the Separate 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.
I hereby consent to the filing of this opinion as an exhibit to the Form S-6
registration statement for the Policies and the Separate Account.
Sincerely,
/s/ Lynda Godkin
Lynda Godkin
<PAGE>
[LOGO]
DEANNE OSGOOD, FSA, MAAA
Vice President & Director of
Individual Annuity Product Management
April 6, 2000
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Hart Life Variable Life
File No. 333-65511
Dear Sir/Madam:
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
modified single 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 used 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 a part of such
Form S-6 Registration Statement.
Very truly yours,
/s/ Deanne Osgood
Deanne Osgood, FSA, MAAA
Vice President & Director of Individual Annuity Product Management
<PAGE>
ARTHUR ANDERSEN LLP
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
-----------------------------------------
As independent public accountants, we hereby consent to the use of our report
(and to all references to our Firm) included in or made a part of this
Registration Statement File No. 333-65511 for Hart Life Insurance Company
Separate Account Two on Form S-6.
/s/ Arthur Andersen LLP
Hartford, Connecticut
April 7, 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>
