<PAGE>
As filed with the Securities and Exchange Commission on December 1, 1999.
File No. Initial
811-9295
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. [ ]
-----
Post-Effective Amendment No. [ ]
-----
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 11 [X]
------
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SEPARATE ACCOUNT SEVEN
(Exact Name of Registrant)
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
(Name of Depositor)
P. O. Box 2999
Hartford, CT 06104-2999
(Address of Depositor's Principal Offices)
(860) 843-4891
(Depositor's Telephone Number, Including Area Code)
Marianne O'Doherty
Hartford Life and Annuity Insurance Company
P. O. Box 2999
Hartford, CT 06104-2999
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b) of Rule 485
-----
on_________________, 1999 pursuant to paragraph (b) of
----- Rule 485
60 days after filing pursuant to paragraph (a)(1) of Rule 485
-----
on_________________, 1999 pursuant to paragraph (a)(1) of
----- Rule 485
this post-effective amendment designates a new effective date
----- for a previously filed post-effective amendment.
Approximate Date of Proposed Public Offering: As soon as practicable after
the effective date of the registration statement.
The registrant hereby amends this registration statement on such date or dates
as may be necessary to delay its effective date until the registrant shall file
a further amendment which specifically states that this registration statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the registration shall become effective on such
date as the Commission, acting pursuant to Section 8(a), may determine.
<PAGE>
CROSS REFERENCE SHEET
PURSUANT TO RULE 495(A)
<TABLE>
<CAPTION>
N-4 ITEM NO. PROSPECTUS HEADING
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<S> <C>
1. Cover Page Hartford Life and Annuity Insurance Company -
Separate Account Seven
2. Definitions Definitions
3. Synopsis or Highlights Highlights
4. Condensed Financial Yield Information
Information
5. General Description of Hartford Life and Annuity Insurance Company,
the Registrant The Separate Account, and The Funds
6. Deductions Contract Charges
7. General Description of The Contract
Annuity Contracts
8. Annuity Period Annuity Payouts
9. Death Benefit Death Benefits
10. Purchases and Contract Value The Contract, and
Contract Value
11. Redemptions Surrenders
12. Taxes Federal Tax Considerations
13. Legal Proceedings Legal Matters and Experts
14. Table of Contents of the Table of Contents to
Statement of Additional Statement of Additional
Information Information
15. Cover Page Part B; Statement of Additional
Information
16. Table of Contents Table of Contents
17. General Information and History Summary
<PAGE>
18. Services None
19. Purchase of Securities Distribution of Contracts
being Offered
20. Underwriters Distribution of Contracts
21. Calculation of Performance Data Calculation of Yield and Return
22. Annuity Payments Settlement Provisions
23. Financial Statements Financial Statements
24. Financial Statements and Financial Statements and
Exhibits Exhibits
25. Directors and Officers of the Directors and Officers of the
Depositor Depositor
26. Persons Controlled by or Under Persons Controlled by or Under
Common Control with the Common Control with the Depositor
Depositor or Registrant or Registrant
27. Number of Contract Owners Number of Contract Owners
28. Indemnification Indemnification
29. Principal Underwriters Principal Underwriters
30. Location of Accounts and Location of Accounts and Records
Records
31. Management Services Management Services
32. Undertakings Undertakings
</TABLE>
<PAGE>
PART A
<PAGE>
<TABLE>
<S> <C>
(PRODUCT NAME)
SEPARATE ACCOUNT SEVEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
P.O. BOX 5085
HARTFORD, CONNECTICUT 06102-5085
TELEPHONE: 1-800-862-6668 (CONTRACT OWNERS)
1-800-862-7155 (REGISTERED REPRESENTATIVES) [LOGO]
</TABLE>
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This prospectus describes information you should know before you purchase
[Product Name] variable annuity. Please read it carefully.
We call this annuity [Product Name] because each time you make a Premium
Payment, Hartford will credit your Contract Value with a Payment Enhancement.
The [Product Name] variable annuity is a contract between you and Hartford Life
and Annuity Insurance Company where you agree to make at least one Premium
Payment to us and we agree to make a series of Annuity Payouts at a later date.
This Annuity is a flexible premium, tax-deferred, variable annuity offered to
both individuals and groups. It is:
x Flexible, because you may add Premium Payments at any time.
x Tax-deferred, which means you don't pay taxes until you take money out or
until we start to make Annuity Payouts.
x Variable, because the value of your Annuity will fluctuate with the
performance of the underlying funds.
- --------------------------------------------------------------------------------
At the time you purchase your Annuity, you allocate your Premium Payment to
"Sub-Accounts". These are subdivisions of our Separate Account, an account that
keeps your Annuity assets separate from our company assets. The 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. They may have
similar investment strategies and the same portfolio managers as retail mutual
funds. This Annuity offers you Funds with investment strategies ranging from
conservative to aggressive and you may pick those Funds that meet your
investment goals and risk tolerance. The Sub-Accounts and the Funds are listed
below:
- - AMERICAN FUNDS ASSET ALLOCATION SUB-ACCOUNT which purchases Class 2 shares of
the Asset Allocation Fund of American Funds Insurance Series (also known as
American Variable Insurance Series) ("American Funds Asset Allocation Fund")
- - AMERICAN FUNDS BOND SUB-ACCOUNT which purchases Class 2 shares of the Bond
Fund of American Funds Insurance Series ("American Funds Bond Fund")
- - AMERICAN FUNDS GLOBAL GROWTH SUB-ACCOUNT which purchases Class 2 shares of the
Global Growth Fund of American Funds Insurance Series ("American Funds Global
Growth Fund")
- - AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION SUB-ACCOUNT which purchases Class 2
shares of the Global Small Capitalization Fund of American Funds Insurance
Series ("American Funds Global Small Capitalization Fund")
- - AMERICAN FUNDS GROWTH SUB-ACCOUNT which purchases Class 2 shares of the Growth
Fund of American Funds Insurance Series ("American Funds Growth Fund")
- - AMERICAN FUNDS GROWTH-INCOME SUB-ACCOUNT which purchases Class 2 shares of the
Growth-Income Fund of American Funds Insurance Series ("American Funds
Growth-Income Fund")
- - AMERICAN FUNDS INTERNATIONAL SUB-ACCOUNT which purchases Class 2 shares of the
International Fund of American Funds Insurance Series ("American Funds
International Fund")
- - AMERICAN FUNDS NEW WORLD SUB-ACCOUNT which purchases Class 2 shares of the New
World Fund of American Funds Insurance Series ("American Funds New World
Fund")
- - FRANKLIN REAL ESTATE SECURITIES SUB-ACCOUNT which purchases Class 2 shares of
the Real Estate Securities Fund of the Franklin Templeton Variable Insurance
Products Trust* ("Real Estate Securities Fund")
- - FRANKLIN SMALL CAP SUB-ACCOUNT which purchases Class 2 shares of the Small Cap
Fund of the Franklin Templeton Variable Insurance Products Trust* ("Small Cap
Fund")
- - FRANKLIN STRATEGIC INCOME INVESTMENTS SUB-ACCOUNT which purchases Class 1
shares of the Franklin Strategic Income Investments Fund of the Templeton
Variable Products Series Fund
- - HARTFORD MONEY MARKET SUB-ACCOUNT which purchases Class IB shares of the
Hartford Money Market HLS Fund
- - MFS CAPITAL OPPORTUNITIES SUB-ACCOUNT which purchases shares of the
MFS-Registered Trademark- Capital Opportunities Series of the MFS-Registered
Trademark- Variable Insurance Trust-SM-
<PAGE>
- - MFS EMERGING GROWTH SUB-ACCOUNT which purchases shares of the MFS-Registered
Trademark- Emerging Growth Series of the MFS-Registered Trademark- Variable
Insurance Trust-SM-
- - MFS GLOBAL EQUITY SUB-ACCOUNT which purchases shares of the MFS-Registered
Trademark- Global Equity Series of the MFS-Registered Trademark- Variable
Insurance Trust-SM-
- - MFS GROWTH SUB-ACCOUNT which purchases shares of the MFS-Registered Trademark-
Growth Series of the MFS-Registered Trademark- Variable Insurance Trust-SM-
- - MFS GROWTH WITH INCOME SUB-ACCOUNT which purchases shares of the
MFS-Registered Trademark- Growth with Income Series of the MFS-Registered
Trademark- Variable Insurance Trust-SM-
- - MFS HIGH INCOME SUB-ACCOUNT which purchases shares of the MFS-Registered
Trademark- High Income Series of the MFS-Registered Trademark- Variable
Insurance Trust-SM-
- - MFS NEW DISCOVERY SUB-ACCOUNT which purchases shares of the MFS-Registered
Trademark- New Discovery Series of the MFS-Registered Trademark- Variable
Insurance Trust-SM-
- - MFS TOTAL RETURN SUB-ACCOUNT which purchases shares of the MFS-Registered
Trademark- Total Return Series of the MFS-Registered Trademark- Variable
Insurance Trust-SM-
- - MUTUAL SHARES SECURITIES SUB-ACCOUNT which purchases Class 2 shares of Mutual
Shares Securities Fund of the Franklin Templeton Variable Insurance Products
Trust*
- - TEMPLETON ASSET ALLOCATION SUB-ACCOUNT which purchases Class 2 shares of the
Templeton Asset Allocation Fund of the Templeton Variable Product Series Fund
("Templeton Asset Allocation Fund")
- - TEMPLETON DEVELOPING MARKETS EQUITY SUB-ACCOUNT which purchases Class 1 shares
of the Templeton Developing Markets Equity Fund of the Franklin Templeton
Variable Insurance Products Trust* ("Templeton Developing Markets Equity
Fund")
- - TEMPLETON GLOBAL GROWTH SUB-ACCOUNT which purchases Class 2 shares of the
Templeton Global Growth Fund of the Franklin Templeton Variable Insurance
Products Trust* ("Templeton Global Growth Fund")
- - TEMPLETON INTERNATIONAL SUB-ACCOUNT which purchases Class 2 shares of the
Templeton International Fund of the Templeton Variable Products Series Fund
("Templeton International Fund")
You may also allocate some or all of your Premium Payment to the "Fixed
Accumulation Feature", which pays an interest rate guaranteed for a certain time
period from the time the Premium Payment is made. Premium Payments allocated to
the Fixed Accumulation Feature are not segregated from our company assets like
the assets of the Separate Account.
If you decide to buy this Annuity, you should keep this prospectus for your
records. You can also call us at 1-800-862-6668 to get a Statement of Additional
Information, free of charge. The Statement of Additional Information contains
more information about this Annuity and, like this prospectus, is filed with the
Securities and Exchange Commission ("SEC"). We have included the Table of
Contents for the Statement of Additional Information at the end of this
prospectus.
Although we file the prospectus and the Statement of Additional Information with
the SEC, the SEC doesn't approve or disapprove these securities or determine if
the information is truthful or complete. Anyone who represents that the SEC does
these things may be guilty of a criminal offense. This prospectus and the
Statement of Additional Information can also be obtained from the SEC's website
(HTTP://WWW.SEC.GOV).
This Annuity IS NOT:
- A bank deposit or obligation
- Federally insured
- Endorsed by any bank or governmental agency
This Annuity may not be available for sale in all states.
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THE DATE OF THIS PROSPECTUS IS MARCH 1, 2000
THE DATE OF THE STATEMENT OF ADDITIONAL INFORMATION IS MARCH 1, 2000.
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 3
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TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
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DEFINITIONS 4
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FEE TABLE 6
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HIGHLIGHTS 11
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GENERAL CONTRACT INFORMATION 12
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Hartford Life and Annuity Insurance Company 12
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The Separate Account 12
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The Funds 13
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THE FIXED ACCUMULATION FEATURES 15
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THE CONTRACT 16
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Purchases and Contract Value 16
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Charges and Fees 18
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Death Benefit 20
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Surrenders 22
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ANNUITY PAYOUTS 24
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OTHER PROGRAMS AVAILABLE 26
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OTHER INFORMATION 27
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Legal Matters and Experts 27
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More Information 27
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FEDERAL TAX CONSIDERATIONS 28
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A. General 28
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B. Taxation of Hartford and The Separate Account 28
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C. Taxation of Annuities -- General Provisions Affecting
Purchases Other Than Qualified Retirement Plans 28
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D. Federal Income Tax Withholding 31
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E. General Provisions Affecting Qualified Retirement Plans 31
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F. Annuity Purchases By Nonresident Aliens and Foreign
Corporations 31
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APPENDIX I -- INFORMATION REGARDING TAX-QUALIFIED RETIREMENT
PLANS 32
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TABLE OF CONTENTS TO STATEMENT OF ADDITIONAL INFORMATION 35
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</TABLE>
<PAGE>
4 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
- --------------------------------------------------------------------------------
DEFINITIONS
These terms are capitalized when used throughout this prospectus. Please refer
to these defined terms if you have any questions as you read your prospectus.
ACCOUNT: Any of the Sub-Accounts or Fixed Accumulation Feature.
ACCUMULATION UNITS: If you allocate your Premium Payment to any of the
Sub-Accounts, we will convert those payments into Accumulation Units in the
selected Sub-Accounts. Accumulation Units are valued at the end of each
Valuation Day and are used to calculate the value of your Contract prior to the
Annuity Calculation Date.
ACCUMULATION UNIT VALUE: The daily price of Accumulation Units on any Valuation
Day.
ADMINISTRATIVE OFFICE OF THE COMPANY: Our location and overnight mailing address
is: 200 Hopmeadow Street, Simsbury, Connecticut 06089. Our standard mailing
address is: Investment Product Services, P.O. Box 5085, Hartford, CT 06102-5085.
ANNIVERSARY VALUE: The value equal to the Contract Value as of a Contract
Anniversary, increased by the dollar amount of any Premium Payments made and any
Payment Enhancements credited since that anniversary and reduced by the dollar
amount of any partial Surrenders since that anniversary.
ANNUAL MAINTENANCE FEE: An annual $30 charge deducted on a Contract Anniversary
or upon full Surrender if the Contract Value at either of those times is less
than $50,000. The charge is deducted proportionately from each Account in which
you are invested.
ANNUAL WITHDRAWAL AMOUNT: This is the amount you can Surrender per Contract Year
without paying a Contingent Deferred Sales Charge. This amount is
non-cumulative, meaning that it cannot be carried over from one year to the
next.
ANNUITANT: The person on whose life the Contract is based. The Annuitant may not
be changed after your Contract is issued.
ANNUITY CALCULATION DATE: The date we calculate the first Annuity Payout.
ANNUITY COMMENCEMENT DATE: The date we start to make Annuity Payouts.
ANNUITY PAYOUT: The money we pay out after the Annuity Commencement Date for the
duration and frequency you select.
ANNUITY PAYOUT OPTION: Any of the options available for payout after the Annuity
Commencement Date or death of the Contract Owner or Annuitant.
ANNUITY UNIT: The unit of measure we use to calculate the value of your Annuity
Payouts under a variable dollar amount Annuity Payout Option.
ANNUITY UNIT VALUE: The daily price of Annuity Units on any Valuation Day.
BENEFICIARY: The person(s) entitled to receive a Death Benefit upon the death of
the Contract Owner or Annuitant.
CHARITABLE REMAINDER TRUST: An irrevocable trust, where an individual donor
makes a gift to the trust, and in return receives an income tax deduction. In
addition, the individual donor has the right to receive a percentage of the
trust earnings for a specified period of time.
CODE: The Internal Revenue Code of 1986, as amended.
COMMUTED VALUE: The present value of any remaining guaranteed Annuity Payouts.
CONTINGENT ANNUITANT: The person you may designate to become the Annuitant if
the original Annuitant dies before the Annuity Commencement Date. You must name
a Contingent Annuitant before the original Annuitant's death.
CONTINGENT DEFERRED SALES CHARGE: The deferred sales charge that may apply when
you make a full or partial Surrender.
CONTRACT: The individual Annuity Contract and any endorsements or riders. Group
participants and some individuals will receive a certificate rather than a
Contract.
CONTRACT ANNIVERSARY: The anniversary of the date we issued your Contract. If
the Contract Anniversary falls on a Non-Valuation Day, then the Contract
Anniversary will be the next Valuation Day.
CONTRACT VALUE: The total value of the Accounts on any Valuation Day.
CONTRACT YEAR: Any 12 month period between Contract Anniversaries, beginning
with the date the Contract was issued.
DEATH BENEFIT: The amount payable after the Contract Owner or the Annuitant
dies.
DOLLAR COST AVERAGING: A program that allows you to systematically make
transfers between Accounts available in your Contract.
FIXED ACCUMULATION FEATURE: Part of our General Account, where you may allocate
all or a portion of your Contract Value. In your Contract, this is defined as
the "Fixed Account".
GENERAL ACCOUNT: The General Account includes our company assets and any money
you have invested in the Fixed Accumulation Feature.
HARTFORD, WE OR OUR: Hartford Life and Annuity Insurance Company. Only Hartford
is a capitalized term in the prospectus.
JOINT ANNUITANT: The person on whose life Annuity Payouts are based if the
Annuitant dies after the Annuity Calculation Date. You may name a Joint
Annuitant only if your Annuity Payout
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 5
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Option provides for a survivor. The Joint Annuitant may not be changed.
MAXIMUM ANNIVERSARY VALUE: This is the highest Anniversary Value prior to the
deceased's 81st birthday or the date of death, if earlier.
NET INVESTMENT FACTOR: This is used to measure the investment performance of a
Sub-Account from one Valuation Day to the next, and is also used to calculate
your Annuity Payout amount.
NON-VALUATION DAY: Any day the New York Stock Exchange is not open for trading.
PAYEE: The person or party you designate to receive Annuity Payouts.
PAYMENT ENHANCEMENT: An amount that Hartford credits your Contract Value at the
time a premium payment is made. The amount of a Payment Enhancement is based on
the cumulative premium payments you make to your Annuity.
PREMIUM PAYMENT: Money sent to us to be invested in your Annuity.
PREMIUM TAX: A tax charged by a state or municipality on Premium Payments.
REQUIRED MINIMUM DISTRIBUTION: A federal requirement that individuals age 70 1/2
and older must take a distribution from their tax-qualified retirement account
by December 31, each year. For employer sponsored Qualified Contracts, the
individual must begin taking distributions at the age of 70 1/2 or upon
retirement, whichever comes later.
SUB-ACCOUNT VALUE: The value on or before the Annuity Calculation Date, which is
determined on any day by multiplying the number of Accumulation Units by the
Accumulation Unit Value for that Sub-Account.
SURRENDER: A complete or partial withdrawal from your Contract.
SURRENDER VALUE: The amount we pay you if you terminate your Contract before the
Annuity Commencement Date. The Surrender Value is equal to the Contract Value
minus any applicable charges.
VALUATION DAY: Every day the New York Stock Exchange is open for trading. Values
of the Separate Account are determined as of the close of the New York Stock
Exchange, generally 4:00 p.m. Eastern Time.
VALUATION PERIOD: The time span between the close of trading on the New York
Stock Exchange from one Valuation Day to the next.
<PAGE>
6 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
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FEE TABLE
Contract Owner Transaction Expenses
<TABLE>
<S> <C>
Sales Load Imposed on Purchases (as a percentage of Premium
Payments) None
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Deferred Sales Charge (as a percentage of amounts
Surrendered)
First Year (1) 8%
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Second Year 8%
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Third Year 8%
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Fourth Year 8%
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Fifth Year 7%
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Sixth Year 6%
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Seventh Year 5%
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Eighth Year 0%
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Annual Maintenance Fee (2) $30
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Separate Account Annual Expenses (as a percentage of average
Sub-Account Value)
Mortality and Expense Risk Charge 1.50%
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Administrative Charge 0.15%
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Total Separate Account Charges 1.65%
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Optional Charges (as a percentage of average Sub-Account
Value)
Optional Interest Accumulation Charge 0.15%
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Total Separate Account Charges with the Optional Interest
Accumulation Charge (as a percentage of average Sub-Account
Value) 1.80%
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</TABLE>
(1) Length of time from Premium Payment.
(2) An annual $30 charge deducted on a Contract Anniversary or upon full
Surrender if the Contract Value at either of those times is less than
$50,000. The charge is deducted proportionately from each Account in which
you are invested.
The purpose of the Fee Table and Example is to assist you in understanding
various costs and expenses that you will pay directly or indirectly. The Fee
Table and Example reflect expenses of the Separate Account and underlying Funds.
We will deduct any Premium Taxes that apply.
The Example should not be considered a representation of past or future expenses
and actual expenses may be greater or less than those shown. The Annual
Maintenance Fee has been reflected in the Example by a method intended to show
the "average" impact of the Annual Maintenance Fee on an investment in the
Separate Account. We do this by approximating an "average" 0.06% annual charge.
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 7
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Annual Fund Operating Expenses
(As a percentage of average net assets)
<TABLE>
<CAPTION>
TOTAL FUND
OTHER OPERATING
MANAGEMENT FEES EXPENSES EXPENSES
UNDERLYING FUND (WITH WAIVERS) 12B-1 FEES (WITH WAIVERS) (WITH WAIVERS)
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
American Funds Asset Allocation Fund 0.44% 0.25% 0.01% 0.70%
- -------------------------------------------------------------------------------------------------------------------------
American Funds Bond Fund 0.52% 0.25% 0.02% 0.79%
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American Funds Global Growth Fund 0.69% 0.25% 0.06% 1.00%
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American Funds Global Small Capitalization Fund (1) 0.79% 0.25% 0.04% 1.08%
- -------------------------------------------------------------------------------------------------------------------------
American Funds Growth Fund 0.40% 0.25% 0.01% 0.66%
- -------------------------------------------------------------------------------------------------------------------------
American Funds Growth-Income Fund 0.35% 0.25% 0.01% 0.61%
- -------------------------------------------------------------------------------------------------------------------------
American Funds International Fund 0.57% 0.25% 0.09% 0.91%
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American Funds New World Fund (2) 0.85% 0.25% 0.08% 1.18%
- -------------------------------------------------------------------------------------------------------------------------
Real Estate Securities Fund -- Class 2 0.52% 0.25% 0.02% 0.79%
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Small Cap Fund -- Class 2 (3) 0.75% 0.25% 0.02% 1.02%
- -------------------------------------------------------------------------------------------------------------------------
Franklin Strategic Income Investments Fund (4) 0.43% N/A 0.32% 0.75%
- -------------------------------------------------------------------------------------------------------------------------
Hartford Money Market HLS Fund 0.43% 0.18% 0.02% 0.63%
- -------------------------------------------------------------------------------------------------------------------------
MFS-Registered Trademark- Capital Opportunities
Series-SM- (5)(6) 0.75% N/A 0.25% 1.02%
- -------------------------------------------------------------------------------------------------------------------------
MFS-Registered Trademark- Emerging Growth Series-SM- (6) 0.75% N/A 0.10% 0.85%
- -------------------------------------------------------------------------------------------------------------------------
MFS-Registered Trademark- Global Equity Series-SM- (5)(6) 1.00% N/A 0.25% 1.25%
- -------------------------------------------------------------------------------------------------------------------------
MFS-Registered Trademark- Growth Series-SM- (5)(6) 0.75% N/A 0.25% 1.00%
- -------------------------------------------------------------------------------------------------------------------------
MFS-Registered Trademark- Growth with Income Series-SM-
(6) 0.75% N/A 0.13% 0.88%
- -------------------------------------------------------------------------------------------------------------------------
MFS-Registered Trademark- High Income Series-SM- (6) 0.75% N/A 0.28% 1.03%
- -------------------------------------------------------------------------------------------------------------------------
MFS-Registered Trademark- New Discovery Series-SM- (5)(6) 0.90% N/A 0.25% 1.17%
- -------------------------------------------------------------------------------------------------------------------------
MFS-Registered Trademark- Total Return Series-SM- (6) 0.75% N/A 0.16% 0.91%
- -------------------------------------------------------------------------------------------------------------------------
Mutual Shares Securities Fund -- Class 2 (3) 0.74% 0.25% 0.03% 1.02%
- -------------------------------------------------------------------------------------------------------------------------
Templeton Asset Allocation Fund -- Class 2 0.60% 0.25% 0.18% 1.03%
- -------------------------------------------------------------------------------------------------------------------------
Templeton Developing Markets Equity Fund -- Class 1 (7) 1.25% N/A 0.16% 1.41%
- -------------------------------------------------------------------------------------------------------------------------
Templeton Global Growth Fund -- Class 2 (3) 0.83% 0.25% 0.05% 1.13%
- -------------------------------------------------------------------------------------------------------------------------
Templeton International Fund -- Class 2 0.69% 0.25% 0.17% 1.11%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) These expenses are annualized. The Fund began operations on April 30, 1998.
(2) These expenses are estimated amounts for the current fiscal year.
(3) "Management Fees" include fund administration fees. Because Class 2 shares
are new, figures (other than Rule 12b-1 fees) are based on experience of
each Fund's Class 1 shares in the most recent fiscal year; Rule 12b-1 fees
are based on estimates.
(4) Figures are estimates for the current fiscal year. The fund's manager is
contractually obligated to limit management fees and other expenses so that
Total Fund Operating Expenses will not exceed .75% during the current fiscal
year. Without these limitations, estimated Other Expenses and Total
Operating Expenses would be as follows:
<TABLE>
<CAPTION>
TOTAL FUND
OTHER OPERATING
UNDERLYING FUND MANAGEMENT FEES 12B-1 FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Franklin Strategic Income Investments Fund 0.43% N/A 0.52% 0.95%
- -------------------------------------------------------------------------------------------------------------
</TABLE>
The Fund's advisor or administrator has entered into an arrangement with
Hartford Life under which Hartford Life is compensated for services it
provides to the Fund.
<PAGE>
8 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
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(5) MFS has contractually agreed to bear expenses for these Series so that
"Other Expenses" will not exceed 0.25% of the average daily net assets of
the Series during the current fiscal year. Without this waiver the following
would have been deducted:
<TABLE>
<CAPTION>
TOTAL FUND
OTHER OPERATING
UNDERLYING FUND MANAGEMENT FEES 12B-1 FEES EXPENSES EXPENSES
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
MFS-Registered Trademark- Capital Opportunities
Series-SM- 0.75% N/A 0.36% 1.11%
- -------------------------------------------------------------------------------------------------------------
MFS-Registered Trademark- Global Equity Series-SM- 1.00% N/A 3.28% 4.28%
- -------------------------------------------------------------------------------------------------------------
MFS-Registered Trademark- Growth Series-SM- 0.75% N/A 3.28% 4.03%
- -------------------------------------------------------------------------------------------------------------
MFS-Registered Trademark- New Discovery Series-SM- 0.90% N/A 4.32% 5.22%
- -------------------------------------------------------------------------------------------------------------
</TABLE>
(6) Each Series has an expense offset arrangement which reduces the Series'
custodian fee based upon the amount of cash maintained by the Series with
its custodian and dividend disbursing agent. Each Series may enter into
other such arrangements and directed brokerage arrangements, which would
also have the effect of reducing the Series' expenses. Expenses do not take
into account these expense reductions, and are therefore higher than the
actual expenses of the Series.
(7) "Management Fees" include fund administration fees. The fund's adviser or
administrator has entered into an arrangement with Hartford Life under which
Hartford Life is compensated for services it provides to the fund.
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 9
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EXAMPLE
THE FOLLOWING EXAMPLE ILLUSTRATES SITUATIONS WHERE THE OPTIONAL DEATH BENEFIT
RIDER IS SELECTED AND TAKES INTO ACCOUNT THE PAYMENT ENHANCEMENT CREDITED ON A
$1,000 INVESTMENT.
<TABLE>
<CAPTION>
If you surrender your Contract at the If you annuitize your Contract at the
end of the applicable time period you end of the applicable time period you
would pay the following expenses on would pay the following expenses on
a $1,000 investment, assuming a 5% a $1,000 investment, assuming a 5%
annual return on assets: annual return on assets:
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
American Funds Asset
Allocation $83 $124 $159 $267 $23 $72 $124 $266
- --------------------------------------------------------------------------------------------------------------------
American Funds Bond $84 $127 $163 $276 $24 $75 $129 $275
- --------------------------------------------------------------------------------------------------------------------
American Funds Global Growth $86 $133 $174 $297 $26 $81 $139 $297
- --------------------------------------------------------------------------------------------------------------------
American Funds Global Small
Capitalization $87 $136 $178 $305 $27 $84 $144 $305
- --------------------------------------------------------------------------------------------------------------------
American Funds Growth $83 $123 $157 $263 $23 $71 $122 $262
- --------------------------------------------------------------------------------------------------------------------
American Funds Growth-Income $82 $121 $154 $258 $22 $69 $119 $257
- --------------------------------------------------------------------------------------------------------------------
American Funds International $85 $130 $170 $288 $25 $79 $135 $288
- --------------------------------------------------------------------------------------------------------------------
American Funds New World $88 $139 $183 $315 $28 $87 $149 $314
- --------------------------------------------------------------------------------------------------------------------
Franklin Real Estate
Securities $84 $127 $163 $276 $24 $75 $129 $275
- --------------------------------------------------------------------------------------------------------------------
Franklin Small Cap $86 $134 $175 $299 $26 $82 $140 $299
- --------------------------------------------------------------------------------------------------------------------
Franklin Stategic Income
Investments $84 $125 $161 $272 $24 $74 $127 $271
- --------------------------------------------------------------------------------------------------------------------
Hartford Money Market $81 $116 $146 $241 $21 $65 $111 $240
- --------------------------------------------------------------------------------------------------------------------
MFS Capital Opportunities $86 $134 $175 $299 $26 $82 $140 $299
- --------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth $85 $129 $166 $282 $25 $77 $132 $281
- --------------------------------------------------------------------------------------------------------------------
MFS Global Equity $89 $141 $187 $322 $29 $89 $152 $321
- --------------------------------------------------------------------------------------------------------------------
MFS Growth $86 $133 $174 $297 $26 $81 $139 $297
- --------------------------------------------------------------------------------------------------------------------
MFS Growth with Income $85 $129 $168 $285 $25 $78 $133 $284
- --------------------------------------------------------------------------------------------------------------------
MFS High Income $87 $134 $176 $300 $26 $82 $141 $300
- --------------------------------------------------------------------------------------------------------------------
MFS New Discovery $88 $138 $183 $314 $28 $87 $148 $313
- --------------------------------------------------------------------------------------------------------------------
MFS Total Return $85 $130 $170 $288 $25 $79 $135 $288
- --------------------------------------------------------------------------------------------------------------------
Mutual Shares Securities $86 $134 $175 $299 $26 $82 $140 $299
- --------------------------------------------------------------------------------------------------------------------
Templeton Asset Allocation $87 $134 $176 $300 $26 $82 $141 $300
- --------------------------------------------------------------------------------------------------------------------
Templeton Developing Markets $90 $146 $195 $337 $30 $94 $160 $337
- --------------------------------------------------------------------------------------------------------------------
Templeton Global Growth $88 $137 $181 $310 $27 $85 $146 $309
- --------------------------------------------------------------------------------------------------------------------
Templeton International $87 $137 $180 $308 $27 $85 $145 $308
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
If you do not surrender your
Contract, you would pay the
following expenses on a $1,000
investment, assuming a 5% annual
return on assets:
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
- -----------------------------
American Funds Asset
Allocation $24 $73 $125 $267
- -----------------------------
American Funds Bond $25 $76 $129 $276
- -----------------------------
American Funds Global Growth $27 $82 $140 $297
- -----------------------------
American Funds Global Small
Capitalization $28 $85 $144 $305
- -----------------------------
American Funds Growth $23 $72 $123 $263
- -----------------------------
American Funds Growth-Income $23 $70 $120 $258
- -----------------------------
American Funds International $26 $79 $136 $288
- -----------------------------
American Funds New World $29 $88 $149 $315
- -----------------------------
Franklin Real Estate
Securities $25 $76 $129 $276
- -----------------------------
Franklin Small Cap $27 $83 $141 $299
- -----------------------------
Franklin Stategic Income
Investments $24 $74 $127 $272
- -----------------------------
Hartford Money Market $21 $65 $112 $241
- -----------------------------
MFS Capital Opportunities $27 $83 $141 $299
- -----------------------------
MFS Emerging Growth $25 $78 $132 $282
- -----------------------------
MFS Global Equity $29 $90 $153 $322
- -----------------------------
MFS Growth $27 $82 $140 $297
- -----------------------------
MFS Growth with Income $26 $78 $134 $285
- -----------------------------
MFS High Income $27 $83 $142 $300
- -----------------------------
MFS New Discovery $28 $87 $149 $314
- -----------------------------
MFS Total Return $26 $79 $136 $288
- -----------------------------
Mutual Shares Securities $27 $83 $141 $299
- -----------------------------
Templeton Asset Allocation $27 $83 $142 $300
- -----------------------------
Templeton Developing Markets $31 $95 $161 $337
- -----------------------------
Templeton Global Growth $28 $86 $147 $310
- -----------------------------
Templeton International $28 $86 $146 $308
- ---------------------------------------------------------------------------------
</TABLE>
<PAGE>
10 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
- --------------------------------------------------------------------------------
EXAMPLE
THE FOLLOWING EXAMPLE ILLUSTRATES SITUATIONS WHERE THE OPTIONAL DEATH BENEFIT
RIDER IS NOT SELECTED AND TAKES INTO ACCOUNT THE PAYMENT ENHANCEMENT CREDITED ON
A $1,000 INVESTMENT.
<TABLE>
<CAPTION>
If you surrender your Contract at the If you annuitize your Contract at the
end of the applicable time period you end of the applicable time period you
would pay the following expenses on would pay the following expenses on
a $1,000 investment, assuming a 5% a $1,000 investment, assuming a 5%
annual return on assets: annual return on assets:
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
American Funds Asset
Allocation $82 $119 $151 $251 $22 $68 $116 $251
- --------------------------------------------------------------------------------------------------------------------
American Funds Bond $83 $122 $156 $261 $22 $70 $121 $260
- --------------------------------------------------------------------------------------------------------------------
American Funds Global Growth $85 $129 $166 $282 $25 $77 $132 $281
- --------------------------------------------------------------------------------------------------------------------
American Funds Global Small
Capitalization $86 $131 $171 $290 $25 $79 $136 $290
- --------------------------------------------------------------------------------------------------------------------
American Funds Growth $81 $118 $149 $247 $21 $66 $114 $246
- --------------------------------------------------------------------------------------------------------------------
American Funds Growth-Income $81 $117 $146 $242 $21 $65 $112 $241
- --------------------------------------------------------------------------------------------------------------------
American Funds International $84 $126 $162 $273 $24 $74 $127 $272
- --------------------------------------------------------------------------------------------------------------------
American Funds New World $87 $134 $176 $300 $26 $82 $141 $300
- --------------------------------------------------------------------------------------------------------------------
Franklin Real Estate
Securities $83 $122 $156 $261 $22 $70 $121 $260
- --------------------------------------------------------------------------------------------------------------------
Franklin Small Cap $85 $129 $168 $284 $25 $78 $133 $283
- --------------------------------------------------------------------------------------------------------------------
Franklin Strategic Income
Investments $82 $121 $154 $257 $22 $69 $119 $256
- --------------------------------------------------------------------------------------------------------------------
Hartford Money Market $79 $112 $138 $225 $19 $60 $103 $224
- --------------------------------------------------------------------------------------------------------------------
MFS Capital Opportunities $85 $129 $168 $284 $25 $78 $133 $283
- --------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth $83 $124 $159 $267 $23 $72 $124 $266
- --------------------------------------------------------------------------------------------------------------------
MFS Global Equity $87 $136 $179 $307 $27 $85 $145 $307
- --------------------------------------------------------------------------------------------------------------------
MFS Growth $85 $129 $166 $282 $25 $77 $132 $281
- --------------------------------------------------------------------------------------------------------------------
MFS Growth with Income $83 $125 $160 $270 $23 $73 $126 $269
- --------------------------------------------------------------------------------------------------------------------
MFS High Income $85 $129 $168 $285 $25 $78 $133 $284
- --------------------------------------------------------------------------------------------------------------------
MFS New Discovery $86 $134 $175 $299 $26 $82 $140 $299
- --------------------------------------------------------------------------------------------------------------------
MFS Total Return $84 $126 $162 $273 $24 $74 $127 $272
- --------------------------------------------------------------------------------------------------------------------
Mutual Shares Securities $85 $129 $168 $284 $25 $78 $133 $283
- --------------------------------------------------------------------------------------------------------------------
Templeton Asset Allocation $85 $129 $168 $285 $25 $78 $133 $284
- --------------------------------------------------------------------------------------------------------------------
Templeton Developing Markets $89 $141 $187 $323 $29 $89 $153 $322
- --------------------------------------------------------------------------------------------------------------------
Templeton Global Growth $86 $133 $173 $295 $26 $81 $138 $295
- --------------------------------------------------------------------------------------------------------------------
Templeton International $86 $132 $172 $293 $26 $80 $137 $293
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
If you do not surrender your
Contract, you would pay the
following expenses on a $1,000
investment, assuming a 5% annual
return on assets:
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
- -----------------------------
American Funds Asset
Allocation $22 $68 $117 $251
- -----------------------------
American Funds Bond $23 $71 $122 $261
- -----------------------------
American Funds Global Growth $25 $78 $132 $282
- -----------------------------
American Funds Global Small
Capitalization $26 $80 $137 $290
- -----------------------------
American Funds Growth $22 $67 $115 $247
- -----------------------------
American Funds Growth-Income $21 $66 $112 $242
- -----------------------------
American Funds International $24 $75 $128 $273
- -----------------------------
American Funds New World $27 $83 $142 $300
- -----------------------------
Franklin Real Estate
Securities $23 $71 $122 $261
- -----------------------------
Franklin Small Cap $25 $78 $134 $284
- -----------------------------
Franklin Strategic Income
Investments $23 $70 $120 $257
- -----------------------------
Hartford Money Market $20 $61 $104 $225
- -----------------------------
MFS Capital Opportunities $25 $78 $134 $284
- -----------------------------
MFS Emerging Growth $24 $73 $125 $267
- -----------------------------
MFS Global Equity $28 $85 $145 $307
- -----------------------------
MFS Growth $25 $78 $132 $282
- -----------------------------
MFS Growth with Income $24 $74 $126 $270
- -----------------------------
MFS High Income $26 $78 $134 $285
- -----------------------------
MFS New Discovery $27 $83 $141 $299
- -----------------------------
MFS Total Return $24 $75 $128 $273
- -----------------------------
Mutual Shares Securities $25 $78 $134 $284
- -----------------------------
Templeton Asset Allocation $26 $78 $134 $285
- -----------------------------
Templeton Developing Markets $29 $90 $153 $323
- -----------------------------
Templeton Global Growth $27 $82 $139 $295
- -----------------------------
Templeton International $26 $81 $138 $293
- ---------------------------------------------------------------------------------
</TABLE>
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 11
- --------------------------------------------------------------------------------
HIGHLIGHTS
HOW DO I PURCHASE THIS ANNUITY?
You must complete our application or order request and submit it to us for
approval with your first Premium Payment. Your first Premium Payment must be at
least $10,000 and subsequent Premium Payments must be at least $500, unless you
take advantage of our InvestEase-Registered Trademark- Program or are part of
certain retirement plans.
- For a limited time, usually within ten days after you receive your Contract,
you may cancel your Annuity without paying a Contingent Deferred Sales
Charge. You may bear the investment risk for your Premium Payment prior to
our receipt of your request for cancellation.
WHAT ARE PAYMENT ENHANCEMENTS?
Each time you make a Premium Payment, Hartford will credit your Contract Value
with a Payment Enhancement. The amount of the Payment Enhancement is based on
your cumulative Premium Payments.
Hartford has developed a variety of variable annuities to help you meet your
goals. We issue variable annuities that do not have Payment Enhancements, but
that do have lower Mortality and Expense Risk Charges and shorter Contingent
Deferred Sales Charge periods than this annuity. When you talk to your financial
adviser, you should make sure that an annuity with a Payment Enhancement is the
right annuity for you.
WHAT TYPE OF SALES CHARGE WILL I PAY?
You don't pay a sales charge when you purchase your Annuity. We may charge you a
Contingent Deferred Sales Charge when you partially or fully Surrender your
Annuity. The Contingent Deferred Sales Charge will depend on the length of time
the Premium Payment you made has been in your Annuity. If the amount you paid
has been in your Annuity for:
<TABLE>
<CAPTION>
CONTINGENT DEFERRED
SALES CHARGE
<S> <C>
- ----------------------------------------
One Year 8%
- ----------------------------------------
Two Years 8%
- ----------------------------------------
Three Years 8%
- ----------------------------------------
Four Years 8%
- ----------------------------------------
Five Years 7%
- ----------------------------------------
Six Years 6%
- ----------------------------------------
Seven Years 5%
- ----------------------------------------
Eight Years 0%
- ----------------------------------------
</TABLE>
You won't be charged a Contingent Deferred Sales Charge on:
x The Annual Withdrawal Amount
x Premium Payments that have been in your Annuity for more than seven years.
x Payment Enhancements or earnings
x Distributions made due to death
x Most payments we make to you as part of your Annuity Payout
IS THERE AN ANNUAL MAINTENANCE FEE?
We deduct this $30.00 fee each year on your Contract Anniversary or when you
fully Surrender your Annuity, if, on either of those dates, the value of your
Annuity is less than $50,000.
WHAT CHARGES WILL I PAY ON AN ANNUAL BASIS?
In addition to the Annual Maintenance Fee, you pay three other types of charges
each year. The first type of charge is the fee you pay for insurance. This
charge is:
A mortality and expense risk charge that is subtracted daily and is equal to an
annual charge of 1.50% of your Contract Value invested in the Funds.
The second type of charge is the fee you pay for the Separate Account. This
charge is:
An administrative charge is .15% per annum of the Contract Value held in the
Separate Account.
The third type of charge is the fee you pay for the Funds.
Currently, Fund charges range from 0.45% to 1.41% annually of the average daily
value of the amount you have invested in the Funds. See the Annual Fund
Operating Expenses table for more complete information and the Funds'
prospectuses accompanying this prospectus.
If you elect the Optional Death Benefit, we will subtract an additional charge
on a daily basis until we begin to make Annuity Payouts that is equal to an
annual charge of .15% of your Contract Value invested in the Funds.
CAN I TAKE OUT ANY OF MY MONEY?
You may Surrender all or part of the amounts you have invested at any time
before we start making Annuity Payouts, or after Annuity Payouts begin under the
Payments for a Period Certain Annuity Payout Option.
- You may have to pay income tax on the money you take out and, if you
Surrender before you are age 59 1/2, you may have to pay an income tax
penalty.
- You may have to pay a Contingent Deferred Sales Charge on the money you
Surrender.
WILL HARTFORD PAY A DEATH BENEFIT?
There is a Death Benefit if the Contract Owner, joint owner or the Annuitant die
before we begin to make Annuity Payouts. The Death Benefit will be calculated as
of the date we receive a certified death certificate or other legal document
acceptable to us. The Death Benefit amount will remain invested in the Sub-
Accounts according to your last instructions and will fluctuate with the
performance of the underlying Funds.
<PAGE>
12 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
- --------------------------------------------------------------------------------
The Death Benefit is the greater of:
- - The total Premium Payments you have made to us minus the dollar amount of any
partial Surrenders, or
- - The Contract Value of your Annuity minus any Payment Enhancements credited in
the 12 months prior to the date we calculate the Death Benefit, or,
- - Your Maximum Anniversary Value, which is described below, minus any Payment
Enhancements credited in the 12 months prior to the date we calculate the
Death Benefit.
The Maximum Anniversary Value is based on a series of calculations on Contract
Anniversaries of Contract Values, Premium Payments, Payment Enhancements and
partial Surrenders. We will calculate an Anniversary Value for each Contract
Anniversary prior to the deceased's 81st birthday or date of death, whichever is
earlier. The Anniversary Value is equal to the Contract Value as of a Contract
Anniversary, increased by the dollar amount of any Premium Payments and Payment
Enhancements made since that anniversary and reduced by the dollar amount of any
partial Surrenders since that anniversary. The Maximum Anniversary Value is
equal to the greatest Anniversary Value attained from this series of
calculations.
If you elect the Optional Death Benefit at an additional charge, the Death
Benefit will be the greater of:
- - The total Premium Payments you have made to us minus any amounts you have
Surrendered;
- - The Contract Value of your Annuity minus any Payment Enhancements in the
12 months prior to the date we calculate the Death Benefit;
- - Your Maximum Anniversary Value or your Interest Accumulation Value.
The Interest Accumulation Value prior to the deceased's date of death or 81st
birthday, whichever is earlier is equal to:
- - The Contract Value of your Annuity minus any Payment Enhancements credited in
the 12 months prior to the date we calculate the Death Benefit;
- - Plus any Premium Payments made;
- - Minus any partial Surrenders;
- - Compounded daily at an annual rate of 5.0%.
The Optional Death Benefit may not be available if the Contract Owner or
Annuitant is age 75 or older. The Optional Death Benefit Rider is not available
in the state of Washington.
The Optional Death Benefit calculation will be different if you do not elect the
Optional Death Benefit with your initial Premium Payment.
WHAT ANNUITY PAYOUT OPTIONS ARE AVAILABLE?
When it comes time for us to make Annuity Payouts, you may choose one of the
following Annuity Payout Options: Option 1 -- Life Annuity, Option 2 -- Life
Annuity with Cash Refund, Option 3 -- Life Annuity with Payments for a Period
Certain, Option 4 -- Joint and Last Survivor Life, Option 5 -- Joint and Last
Survivor Life with Payments for a Period Certain and Option 6 -- Payment For a
Period Certain. We may make other Annuity Payout Options available at any time.
You must begin to take payouts by the Annuitant's 90th birthday or the end of
the 10th Contract Year, whichever is later, unless you elect a later date to
begin receiving payments subject to the laws and regulations then in effect and
our approval. If you do not tell us what Annuity Payout Option you want before
that time, we will make payments under Option 3 -- Life Annuity with a 10 year
Period Certain.
GENERAL CONTRACT INFORMATION
- --------------------------------------------------------------------------------
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Hartford Life and Annuity Insurance Company is a stock life insurance company
engaged in the business of writing life insurance and annuities, both individual
and group, in all states of the United States, the District of Columbia and
Puerto Rico, except New York. On January 1, 1998, Hartford's name changed from
ITT Hartford Life and Annuity Insurance Company to Hartford Life and Annuity
Insurance Company. We were originally incorporated under the laws of Wisconsin
on January 9, 1956, and subsequently redomiciled to Connecticut. Our offices are
located in Simsbury, Connecticut; however, our mailing address is P.O. Box 2999,
Hartford, CT 06104-2999. We are ultimately controlled by The Hartford Financial
Services Group, Inc., one of the largest financial service providers in the
United States.
HARTFORD'S RATINGS
<TABLE>
<CAPTION>
EFFECTIVE DATE
RATING AGENCY OF RATING RATING BASIS OF RATING
<S> <C> <C> <C>
- ----------------------------------------------------------------------------
A.M. Best and
Company, Inc. 1/1/99 A+ Financial performance
- ----------------------------------------------------------------------------
Standard & Poor's 5/3/99 AA Insurer financial strength
Duff & Phelps 12/21/98 AA+ Claims paying ability
- ----------------------------------------------------------------------------
</TABLE>
THE SEPARATE ACCOUNT
The Separate Account is where we set aside and invest the assets of some of our
annuity contracts, including this Contract. The Separate Account was established
on December 8, 1986 and is registered as a unit investment trust under the
Investment Company Act of 1940. This registration does not involve supervision
by the Commission of the management or the investment practices of the Separate
Account or Hartford. The Separate Account meets the definition of "Separate
Account" under federal
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 13
- --------------------------------------------------------------------------------
securities law. This Separate Account holds only assets for variable annuity
contracts. The Separate Account:
- - Holds assets for the benefit of you and other Contract Owners, and the persons
entitled to the payments described in the Contract.
- - Is not subject to the liabilities arising out of any other business Hartford
may conduct.
- - Is not affected by the rate of return of Hartford's General Account or by the
investment performance of any of Hartford's other Separate Accounts.
- - May be subject to liabilities from a Sub-Account of the Separate Account which
holds assets of other variable annuity contracts offered by the Separate
Account which are not described in this Prospectus.
- - Is credited with income and gains, and takes losses, whether or not realized,
from the assets it holds.
We do not guarantee the investment results of the Separate Account. There is no
assurance that the value of your Annuity will equal the total of the payments
you make to us.
THE FUNDS
The American Funds Asset Allocation Fund, American Funds Bond Fund, American
Fund Global Growth Fund, American Funds Global Small Capitalization Fund,
American Funds Growth Fund, American Funds Growth-Income Fund, American Funds
International Fund and American Funds New World Fund are all part of American
Funds Insurance Series. American Funds Insurance Series is a fully managed,
diversified, open-end investment company organized as a Massachusetts business
trust in 1983. American Funds Insurance Series offers two classes of fund
shares: Class 1 shares and Class 2 shares. This Annuity invests only in Class 2
shares of American Funds Insurance Series. The investment adviser for each of
the funds of American Funds Insurance Series is Capital Research and Management
Company located at 333 South Hope Street, Los Angeles, California 90071. Capital
Research and Management Company is a wholly owned subsidiary of The Capital
Group Companies, Inc.
The Hartford Money Market HLS Fund is sponsored and administered by Hartford
Life Insurance Company. HL Investment Advisers, LLC located at 200 Hopmeadow
Street, Simsbury, Connecticut, serves as the investment adviser to the Fund. The
Hartford Investment Management Company serves as sub-investment adviser and
provides day to day investment services. The Fund is a separate Maryland
corporation registered with the Securities and Exchange Commission as an
open-end management investment company. Shares of the Fund have been divided
into Class IA and Class IB. Only Class IA shares are available in this Annuity.
The MFS-Registered Trademark- Capital Opportunities Series,
MFS-Registered Trademark- Emerging Growth Series, MFS-Registered Trademark-
Global Equity Series, MFS-Registered Trademark- Growth Series,
MFS-Registered Trademark- Growth with Income Series, MFS-Registered Trademark-
High Income Series, MFS-Registered Trademark- New Discovery Series, and
MFS-Registered Trademark- Total Return Series are series of the
MFS-Registered Trademark- Variable Insurance Trust-SM-. The MFS Variable
Insurance Trust-SM- is a professionally managed open-end management investment
company. The MFS Variable Insurance Trust-SM- is registered as a Massachusetts
business trust. MFS Investment Management-Registered Trademark- serves as the
investment adviser to each of the Series of the MFS-Registered Trademark-
Variable Insurance Trust-SM-. MFS Investment Management-Registered Trademark- is
located at 500 Boylston Street, Boston, Massachusetts 02116.
Franklin Strategic Income Investments Fund, Templeton Asset Allocation Fund and
Templeton International Fund are all part of the Templeton Variable Products
Series Fund. The Templeton Variable Products Series Fund is an open-end, managed
investment company which was organized as a Massachusetts business trust on
February 25, 1988. Templeton Variable Product Series Fund offers Class 1 and
Class 2 shares. Class 2 shares of Templeton Asset Allocation Fund and Templeton
International Fund are currently available in this Annuity. The investment
manager of these funds is Templeton Investment Counsel, Inc. located at
500 East Broward Boulevard, Fort Lauderdale, Florida 33394-3091. Class 1 shares
of the Franklin Strategic Income Investments Fund are currently available in
this annuity. The investment manager of this fund is Franklin Advisers, Inc.,
located at 777 Mariners Island Blvd, P.O. Box 7777, San Mateo, California,
94403-7777. Templeton Investment Counsel, Inc. and Franklin Advisers, Inc. are
wholly owned by Franklin Resources, Inc. a publicly owned company engaged in the
financial services industry through its subsidiaries.
The Real Estate Securities Fund, Small Cap Fund, Mutual Shares Securities Fund,
Templeton Developing Markets Equity Fund and Templeton Global Growth Fund are
all part of the Franklin Templeton Variable Insurance Products Trust. The
Franklin Templeton Variable Insurance Products Trust is an open-end managed
investment company which was organized as a Massachusetts business trust on
April 26, 1988. Franklin Templeton Variable Insurance Products Trust currently
offers Class 1 and Class 2 shares. Class 2 shares of each Fund are available in
this Annuity, except that Class 1 shares of Templeton Developing Markets Equity
Fund are available. The investment manager of the Real Estate Securities Fund
and the Small Cap Fund is Franklin Advisers, Inc. located at 777 Mariners Island
Blvd. P.O. Box 7777, San Mateo, California 94403-777. The investment manager of
Mutual Shares Securities Fund is Franklin Mutual Advisers, LLC, located at 51
John F. Kennedy Parkway, Short Hills, New Jersey, 07078. The investment manager
of Templeton Global Growth Fund is Templeton Global Advisers Limited, located at
Lyford Cay, Nassau, N.P. Bahamas. The investment manager of Templeton Developing
Markets Equity Fund is Templeton Asset Management Ltd., located at 7 Temasek
Blvd. #38-03, Suntec Tower One, Singapore, 038987. The funds' investment
managers and their affiliates manage over $216 billion in assets as of March 31,
1999.
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
<PAGE>
14 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
- --------------------------------------------------------------------------------
Funds' prospectus and Statement of Additional Information, which may be ordered
from us. The Funds' prospectus should be read in conjunction with this
Prospectus before investing.
The Funds may not be available in all states contact your registered
representative for current information about availability.
The investment goals of each of the Funds are as follows:
AMERICAN FUNDS ASSET ALLOCATION FUND -- Seeks high total return, including
income and capital gains, consistent with the preservation of capital over the
long term through a diversified portfolio that can include common stocks and
other equity-type securities, bonds and other intermediate and long-term fixed
income securities and money market instruments in any combination.
AMERICAN FUNDS BOND FUND -- Seeks to provide as high a level of current income
as is consistent with the preservation of capital by investing primarily in
fixed-income securities.
AMERICAN FUNDS GLOBAL GROWTH FUND -- Seeks long-term growth of capital by
investing primarily in common stocks of issuers domiciled around the world.
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND -- Seeks long-term growth of
capital by investing primarily in equity securities of smaller companies located
around the world that typically have market capitalizations of $50 million to
$1.2 billion.
AMERICAN FUNDS GROWTH FUND -- Seeks long-term growth of capital by investing
primarily in common stocks which demonstrate the potential for appreciation.
AMERICAN FUNDS GROWTH-INCOME FUND -- Seeks growth of capital and income by
investing primarily in common stocks or other securities which demonstrate the
potential for appreciation and/or dividends.
AMERICAN FUNDS INTERNATIONAL FUND -- Seeks long-term growth of capital by
investing primarily in common stocks of issuers domiciled outside of the United
States.
AMERICAN FUNDS NEW WORLD FUND -- Seeks long-term growth of capital by investing
primarily in common stocks of issuers with significant exposure to countries
with developing economies and/or markets. The Fund may also invest in debt
securities, including high-yield, high risk bonds.
REAL ESTATE SECURITIES FUND -- Seeks capital appreciation. Its secondary goal is
to earn current income.
SMALL CAP FUND -- Seeks long-term capital growth.
FRANKLIN STRATEGIC INCOME INVESTMENTS FUND -- Seeks to earn a high level of
current income. Its secondary goal is long-term capital appreciation.
HARTFORD MONEY MARKET HLS FUND -- Seeks maximum current income consistent with
liquidity and preservation of capital.
MFS-REGISTERED TRADEMARK- CAPITAL OPPORTUNITIES SERIES -- Seeks capital
appreciation.
MFS-REGISTERED TRADEMARK- EMERGING GROWTH SERIES -- Seeks to provide long-term
growth of capital.
MFS-REGISTERED TRADEMARK- GLOBAL EQUITY SERIES -- Seeks capital appreciation.
MFS-REGISTERED TRADEMARK- GROWTH SERIES -- Seeks to provide long-term growth of
capital and future income rather than current income.
MFS-REGISTERED TRADEMARK- GROWTH WITH INCOME SERIES -- Seeks to provide
reasonable current income and long-term growth of capital and income.
MFS-REGISTERED TRADEMARK- HIGH INCOME SERIES -- Seeks high current income by
investing primarily in a professionally managed diversified portfolio of fixed
income securities, some of which may involve equity features.
MFS-REGISTERED TRADEMARK- NEW DISCOVERY SERIES -- Seeks capital appreciation.
MFS-REGISTERED TRADEMARK- TOTAL RETURN SERIES -- Seeks primarily to provide
above-average income (compared to a portfolio invested in equity securities)
consistent with the prudent employment of capital, and secondarily to provide a
reasonable opportunity for growth of capital and income.
MUTUAL SHARES SECURITIES FUND -- Seeks capital appreciation. Its secondary goal
is income.
TEMPLETON ASSET ALLOCATION FUND -- Seeks high total return.
TEMPLETON DEVELOPING MARKETS EQUITY FUND -- Seeks long-term capital
appreciation.
TEMPLETON GLOBAL GROWTH FUND -- Seeks long-term capital growth.
TEMPLETON INTERNATIONAL FUND -- Seeks long-term capital growth
MIXED AND SHARED FUNDING -- Shares of the Funds may be sold to our other
separate accounts and our insurance company affiliates or other unaffiliated
insurance companies to serve as the underlying investment for both variable
annuity contracts and variable life insurance policies, a practice known as
"mixed and shared funding." As a result, there is a possibility that a material
conflict may arise between the interests of Contract Owners, and of owners of
other contracts whose contract values are allocated to one or more of these
other separate accounts investing in any one of the Funds. In the event of any
such material conflicts, we will consider what action may be appropriate,
including removing the Fund from the Separate Account or replacing the Fund with
another underlying fund. There are certain risks associated with mixed and
shared funding, as disclosed in the Funds' prospectus.
VOTING RIGHTS -- We are the legal owners of all Fund shares held in the Separate
Account and we have the right to vote at the Fund's shareholder meetings. To the
extent required by federal securities laws or regulations, we will:
- - Notify you of any Fund shareholders' meeting if the shares held for your
Contract may be voted.
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HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 15
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- - Send proxy materials and a form of instructions that you can use to tell us
how to vote the Fund shares held for your Contract.
- - Arrange for the handling and tallying of proxies received from Contract
Owners.
- - Vote all Fund shares attributable to your Contract according to instructions
received from you, and
- - Vote all Fund shares for which no voting instructions are received in the same
proportion as shares for which instructions have been received.
If any federal securities laws or regulations, or their present interpretation,
change to permit us to vote Fund shares on our own, we may decide to do so. You
may attend any Shareholder Meeting at which shares held for your Contract may be
voted. After we begin to make Annuity Payouts to you, the number of votes you
have will decrease.
SUBSTITUTIONS, ADDITIONS, OR DELETIONS OF FUNDS -- We reserve the right, subject
to any applicable law, to make certain changes to the Funds offered under Your
Contract. We may, in our sole discretion, establish new Funds. New Funds will be
made available to existing Contract Owners as we determine appropriate. We may
also close one or more Funds to additional Payments or transfers from existing
Sub-Accounts.
We reserve the right to eliminate the shares of any of the Funds for any reason
and to substitute shares of another registered investment company for the shares
of any Fund already purchased or to be purchased in the future by the Separate
Account. To the extent required by the Investment Company Act of 1940 (the "1940
Act"), substitutions of shares attributable to your interest in a Fund will not
be made until we have the approval of the Commission and we have notified you of
the change.
In the event of any substitution or change, we may, by appropriate endorsement,
make any changes in the Contract necessary or appropriate to reflect the
substitution or change. If we decide that it is in the best interest of the
Contract Owners, the Separate Account may be operated as a management company
under the 1940 Act or any other form permitted by law, may be de-registered
under the 1940 Act in the event such registration is no longer required, or may
be combined with one or more other Separate Accounts.
THE FIXED ACCUMULATION FEATURES
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IMPORTANT INFORMATION YOU SHOULD KNOW: THIS PORTION OF THE PROSPECTUS RELATING
TO THE FIXED ACCUMULATION FEATURE IS NOT REGISTERED UNDER THE SECURITIES ACT OF
1933 ("1933 ACT") AND THE FIXED ACCUMULATION FEATURE IS NOT REGISTERED AS AN
INVESTMENT COMPANY UNDER THE 1940 ACT. THE FIXED ACCUMULATION FEATURE OR ANY OF
ITS INTERESTS ARE NOT SUBJECT TO THE PROVISIONS OR RESTRICTIONS OF THE 1933 ACT
OR THE 1940 ACT, AND THE STAFF OF THE SECURITIES AND EXCHANGE COMMISSION HAS NOT
REVIEWED THE DISCLOSURE REGARDING THE FIXED ACCUMULATION FEATURE. THE FOLLOWING
DISCLOSURE ABOUT THE FIXED ACCUMULATION FEATURE MAY BE SUBJECT TO CERTAIN
GENERALLY APPLICABLE PROVISIONS OF THE FEDERAL SECURITIES LAWS REGARDING THE
ACCURACY AND COMPLETENESS OF DISCLOSURE.
Premium Payments, Payment Enhancements and Contract Values allocated to the
Fixed Accumulation Feature become a part of our General Account assets. We
invest the assets of the General Account according to the laws governing the
investments of insurance company General Accounts.
Currently, we guarantee that we will credit interest at a rate of not less than
3% per year, compounded annually, to amounts you allocate to the Fixed
Accumulation Feature. We reserve the right to change the rate subject only to
applicable state insurance law. We may credit interest at a rate in excess of 3%
per year. We will periodically publish the Fixed Accumulation Feature interest
rates currently in effect. There is no specific formula for determining interest
rates. Some of the factors that we may consider in determining whether to credit
excess interest are; general economic trends, rates of return currently
available and anticipated on our investments, regulatory and tax requirements
and competitive factors. We will account for any deductions, Surrenders or
transfers from the Fixed Accumulation Feature on a "first-in first-out" basis.
IMPORTANT: ANY INTEREST CREDITED TO AMOUNTS YOU ALLOCATE TO THE FIXED
ACCUMULATION FEATURE IN EXCESS OF 3% PER YEAR WILL BE DETERMINED AT OUR SOLE
DISCRETION. YOU ASSUME THE RISK THAT INTEREST CREDITED TO THE FIXED ACCUMULATION
FEATURE MAY NOT EXCEED THE MINIMUM GUARANTEE OF 3% FOR ANY GIVEN YEAR.
From time to time, we may credit increased interest rates under certain programs
established in our sole discretion.
DOLLAR COST AVERAGING PLUS ("DCA PLUS") PROGRAMS -- Currently, you may enroll in
a special pre-authorized transfer program known as our DCA Plus Program (the
"Program"). Under this Program, Contract Owners who enroll may allocate a
minimum of $5,000 of their Premium Payment into the Program (we may allow a
lower minimum Premium Payment for qualified plan transfers or rollovers,
including IRAs) and pre-authorize transfers to any of the Sub-Accounts under
either the 6-Month Transfer Program or 12 Month Transfer Program. The 6-Month
Transfer Program and the 12-Month Transfer Program will generally have different
credited interest rates. Under the 6-Month Transfer Program, the interest rate
can accrue up to 6 months and all Premium Payments and accrued interest must be
transferred from the Program to the selected Sub-Accounts in 3 to 6 months.
Under the 12-Month Transfer Program, the interest rate can accrue up to 12
months and all Premium Payments and accrued interest must be transferred to the
selected Sub-Accounts in 7 to 12 months. This will be accomplished by
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16 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
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monthly transfers for the period selected and a final transfer of the entire
amount remaining in the Program.
The pre-authorized transfers will begin within 15 days of receipt of the Program
payment provided we receive complete enrollment instructions. If we do not
receive complete Program enrollment instructions within 15 days of receipt of
the initial Program payment, the Program will be voided and the entire balance
in the Program will be transferred to the Accounts designated by you. If you do
not designate an Account, you will receive the Fixed Accumulation Feature's
current effective interest rate. Any subsequent payments we receive within the
Program period selected will be allocated to the Sub-Accounts over the remainder
of that Program transfer period.
You may elect to terminate the pre-authorized transfers by calling or writing us
of your intent to cancel enrollment in the Program. Upon cancellation, you will
no longer receive the Program interest rate and unless we receive instructions
to the contrary, the amounts remaining in the Program may accrue the interest
rate currently in effect for the Fixed Accumulation Feature.
We reserve the right to discontinue, modify or amend the Program or any other
interest rate program we establish. Any change to the Program will not affect
Contract Owners currently enrolled in the Program. This Program may not be
available in all states; please contact us to determine if it is available in
your state.
You may only have one DCA program in place at one time.
THE CONTRACT
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PURCHASES AND CONTRACT VALUE
WHAT TYPES OF CONTRACTS ARE AVAILABLE?
The Contract is an individual or group tax-deferred variable annuity contract.
It is designed for retirement planning purposes and may be purchased by any
individual, group or trust, including:
- - Any trustee or custodian for a retirement plan qualified under Sections 401(a)
or 403(a) of the Code;
- - Annuity purchase plans adopted by public school systems and certain tax-exempt
organizations according to Section 403(b) of the Code;
- - Individual Retirement Annuities adopted according to Section 408 of the Code;
- - Employee pension plans established for employees by a state, a political
subdivision of a state, or an agency of either a state or a political
subdivision of a state, and
- - Certain eligible deferred compensation plans as defined in Section 457 of the
Code.
The examples above represent Qualified Contracts, as defined by the Code. In
addition, individuals and trusts can also purchase Contracts that are not part
of a tax qualified retirement plan. These are known as Non-Qualified Contracts.
HOW DO I PURCHASE A CONTRACT?
You may purchase a Contract by completing and submitting an application or an
order request along with an initial Premium Payment. For most Contracts, the
minimum Premium Payment is $10,000. For additional Premium Payments, the minimum
Premium Payment is $500. Under certain situations, we may allow smaller Premium
Payments, for example, if you enroll in our InvestEase-Registered Trademark-
Program or are part of certain tax qualified retirement plans. Prior approval is
required for Premium Payments of $1,000,000 or more.
You and your Annuitant must not be older than age 85 on the date that your
Contract is issued. You must be of legal age in the state where the Contract is
being purchased or a guardian must act on your behalf.
HOW ARE PREMIUM PAYMENTS APPLIED TO MY CONTRACT?
Your initial Premium Payment will be invested within two Valuation Days of our
receipt of a properly completed application or an order request and the Premium
Payment. If we receive your subsequent Premium Payment before the close of the
New York Stock Exchange, it will be priced on the same Valuation Day. If we
receive your Premium Payment after the close of the New York Stock Exchange, it
will be processed on the next Valuation Day. If we receive your Premium Payment
on a Non-Valuation Day, the amount will be invested on the next Valuation Day.
Unless we receive new instructions, we will invest the Premium Payment based on
your last allocation instructions. We will send you a confirmation when we
invest your Premium Payment.
If the request or other information accompanying the Premium Payment is
incomplete when received, we will hold the money in a non-interest bearing
account for up to five Valuation Days while we try to obtain complete
information. If we cannot obtain the information within five Valuation Days, we
will either return the Premium Payment and explain why the Premium Payment could
not be processed or keep the Premium Payment if you authorize us to keep it
until you provide the necessary information.
WHAT ARE PAYMENT ENHANCEMENTS?
Each time you make a Premium Payment to your Contract, Hartford will credit your
Contract Value with a Payment Enhancement. The Payment Enhancement is based on
your cumulative Premium Payments and is equal to:
x 3% of the Premium Payment if your cumulative Premium Payments are less than
$50,000
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HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 17
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x 4% of the Premium Payment if your cumulative Premium Payments are $50,000 or
more
If you make a subsequent Premium Payment that increases your cumulative Premium
Payments to $50,000 or more, Hartford will credit an additional Payment
Enhancement to your Contract Value equal to 1% of your prior Premium Payments.
The Payment Enhancements will be allocated to the same Accounts and in the same
proportion as your Premium Payment.
DO I ALWAYS GET TO KEEP MY PAYMENT ENHANCEMENTS?
You won't always get to keep the Payment Enhancements credited to your Contract
Value. Hartford will take back or "recapture" some or all of the Payment
Enhancements under certain circumstances:
- - Hartford will take back the Payment Enhancements we credit to your Contract
Value if you cancel your Contract during the "Right to Examine" period
described in your Contract.
- - Hartford will deduct any Payment Enhancements credited to your Contract Value
in the 24 months prior to the Annuity Calculation Date when we determine the
amount available for Annuity Payouts.
- - Hartford will also exclude any Payment Enhancements credited to your Contract
Value in the 12 months prior to the date we calculate the Death Benefit when
determining the Death Benefit payable.
- - Hartford will deduct all Payment Enhancements credited during a period of
eligible confinement to a hospital, nursing home or other qualified long-term
care facility under the Waiver of Sales Charge Rider if you request a full or
partial Surrender.
DO PAYMENT ENHANCEMENTS ALWAYS BENEFIT ME?
Not all of the time. Hartford issues a variety of variable annuities designed to
meet different retirement planning goals. Some of our variable annuities have no
Payment Enhancement, some have lower mortality and expense risk charges and
still others have no Contingent Deferred Sales Charge. You may be better off in
certain circumstances with one of our other variable annuities. You and your
financial adviser should consider some of the following factors when determining
which annuity is appropriate for you:
- - The length of time that you plan to continue to own your Contract.
- - The frequency, amount and timing of any partial Surrenders.
- - The amount of your Premium Payments.
- - When you plan to annuitize your Contract.
- - Whether you might experience an event which results in the loss of some or all
of the Payment Enhancements.
CAN I CANCEL MY CONTRACT AFTER I PURCHASE IT?
We want you to be satisfied with the Contract you have purchased. We urge you to
closely examine its provisions. If for any reason you are not satisfied with
your Contract, simply return it within ten days after you receive it with a
written request for cancellation that indicates your tax-withholding
instructions. In some states, you may be allowed more time to cancel your
Contract. We will not deduct any Contingent Deferred Sales Charges during this
time. We may require additional information, including a signature guarantee,
before we can cancel your Contract.
You bear the investment risk from the time the Contract is issued until we
receive your complete cancellation request.
The amount we pay you upon cancellation depends on the requirements of the state
where you purchased your Contract, the method of purchase, the type of Contract
you purchased and your age. Hartford will not pay you the Payment Enhancements
credited to your Contract Value if you elect to cancel your Contract.
HOW IS THE VALUE OF MY CONTRACT CALCULATED BEFORE THE ANNUITY CALCULATION DATE?
The Contract Value is the sum of all Accounts. There are two things that affect
your Sub-Account value: (1) the number of Accumulation Units and (2) the
Accumulation Unit Value. The Sub-Account value is determined by multiplying the
number of Accumulation Units by the Accumulation Unit Value. Therefore, on any
Valuation Day your Contract Value reflects the investment performance of the
Sub-Accounts and will fluctuate with the performance of the underlying Funds.
When Premium Payments and Payment Enhancements are credited to your
Sub-Accounts, they are converted into Accumulation Units by dividing the sum of
your Premium Payments and Payment Enhancements, minus any Premium Taxes, by the
Accumulation Unit Value for that day. The more Premium Payments you put into
your Contract, the more Accumulation Units you will own. You decrease the number
of Accumulation Units you have by requesting Surrenders, transferring money out
of a Sub-Account, settling a Death Benefit claim or by annuitizing your
Contract.
To determine the current Accumulation Unit Value, we take the prior Valuation
Day's Accumulation Unit Value and multiply it by the Net Investment Factor for
the current Valuation Day.
The Net Investment Factor is used to measure the investment performance of a
Sub-Account from one Valuation Day to the next. The Net Investment Factor for
each Sub-Account equals:
- - The net asset value per share of each Fund held in the Sub-Account at the end
of the current Valuation Day divided by
- - The net asset value per share of each Fund held in the Sub-Account at the end
of the prior Valuation Day; minus
- - The daily mortality and expense risk charge and any other applicable charges,
including administrative charges or the Optional Death Benefit Charge,
adjusted for the number of days in the period.
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18 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
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We will send you a statement in each calendar quarter, which tells you how many
Accumulation Units you have, their value and your total Contract Value.
CAN I TRANSFER FROM ONE SUB-ACCOUNT TO ANOTHER?
TRANSFERS BETWEEN SUB-ACCOUNTS -- You may transfer from one Sub-Account to
another before and after the Annuity Commencement Date at no extra charge. Your
transfer request will be processed on the day that it is received as long as it
is received on a Valuation Day before the close of the New York Stock Exchange.
Otherwise, your request will be processed on the following Valuation Day. We
will send you a confirmation when we process your transfer. You are responsible
for verifying transfer confirmations and promptly advising us of any errors
within 30 days of receiving the confirmation.
SUB-ACCOUNT TRANSFER RESTRICTIONS -- We reserve the right to limit the number of
transfers to 12 per Contract Year, with no transfers occurring on consecutive
Valuation Days. We also have the right to restrict transfers if we believe that
the transfers could have an adverse effect on other Contract Owners. In all
states except Florida, Maryland and Oregon, we may:
- - Require a minimum time period between each transfer,
- - Limit the dollar amount that may be transferred on any one Valuation Day, and
- - Not accept transfer requests from an agent acting under a power of attorney
for more than one Contract Owner.
We also have a restriction in place that involves individuals who act under a
power of attorney for multiple Contract Owners. If the value of the Contract
Owners' Accounts add up to more than $2 million, we will not accept transfer
instructions from the power of attorney unless the power of attorney has entered
into a Third Party Transfer Services Agreement with us.
Some states may have different restrictions.
FIXED ACCUMULATION FEATURE TRANSFERS -- During each Contract Year, you may make
transfers out of the Fixed Accumulation Feature to Sub-Accounts. All transfer
allocations must be in whole numbers (e.g., 1%). You may transfer either:
- - 30% of your total amount in the Fixed Accumulation Feature, or
- - An amount equal to the largest previous transfer.
These transfer limits do not include transfers done through Dollar Cost
Averaging or the DCA Plus Program.
If your interest rate renews at a rate at least 1% lower than your prior
interest rate, you may transfer an amount equal to up to 100% of the amount to
be invested at the renewal rate. You must make this transfer request within 60
days of being notified of the renewal rate.
FIXED ACCUMULATION FEATURE TRANSFER RESTRICTIONS -- We reserve the right to
defer transfers from the Fixed Accumulation Feature for up to 6 months from the
date of your request. After any transfer, you must wait six months before moving
Sub-Account Values back to the Fixed Accumulation Feature.
TELEPHONE TRANSFERS -- In most states, you can make transfers by calling us at
(800) 862-6668. Hartford, our agents or our affiliates are not responsible for
losses resulting from telephone requests that we believe are genuine. We will
use reasonable procedures to confirm that telephone instructions are genuine,
including requiring that callers provide certain identification information and
recording all telephone transfer instructions. We reserve the right to suspend,
modify, or terminate telephone transfer privileges at any time.
POWER OF ATTORNEY -- You may authorize another person to make transfers on your
behalf by submitting a completed Power of Attorney form. Once we have the
completed form on file, we will accept transfer instructions, subject to our
transfer restrictions, from your designated third party until we receive new
instructions in writing from you. You will not be able to make transfers or
other changes to your Contract if you have authorized someone else to act under
a Power of Attorney.
CHARGES AND FEES
There are 6 charges and fees associated with the Contract and The Optional Death
Benefit Charge:
1. THE CONTINGENT DEFERRED SALES CHARGE
The Contingent Deferred Sales Charge covers some of the expenses relating to the
sale and distribution of the Contract, including commissions paid to registered
representatives and the cost of preparing sales literature and other promotional
activities.
We assess a Contingent Deferred Sales Charge when you request a full or partial
Surrender. The percentage of the Contingent Deferred Sales Charge is based on
how long your Premium Payments have been in the Contract. The Contingent
Deferred Sales Charge will not exceed the total amount of the Premium Payments
made. Each Premium Payment has its own Contingent Deferred Sales Charge
schedule. Premium Payments are Surrendered in the order in which they were
received. The longer you leave your Premium Payments in the Contract, the lower
the Contingent Deferred Sales Charge will be when you Surrender.
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HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 19
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The Contingent Deferred Sales Charge is a percentage of the amount Surrendered
and is equal to:
<TABLE>
<CAPTION>
NUMBER OF YEARS FROM CONTINGENT DEFERRED
PREMIUM PAYMENT SALES CHARGE
<S> <C>
- -----------------------------------------
1 8%
- -----------------------------------------
2 8%
- -----------------------------------------
3 8%
- -----------------------------------------
4 8%
- -----------------------------------------
5 7%
- -----------------------------------------
6 6%
- -----------------------------------------
7 5%
- -----------------------------------------
8 or more 0%
- -----------------------------------------
</TABLE>
THE FOLLOWING SURRENDERS ARE NOT SUBJECT TO A CONTINGENT DEFERRED SALES CHARGE:
- - ANNUAL WITHDRAWAL AMOUNT -- During the first seven Contract Years, you may,
each Contract Year, take partial Surrenders up to 10% of the total Premium
Payments. If you do not take 10% one year, you may not take more than 10% the
next year. These amounts are different for Contracts issued to a Charitable
Remainder Trust.
- - SURRENDERS MADE FROM PREMIUM PAYMENTS AFTER THE SEVENTH CONTRACT YEAR -- After
the seventh Contract Year, you may take the total of: (a) all of your
earnings, (b) all Premium Payments held in your Contract for more than seven
years, (c) Payment Enhancements credited for more than seven years,
(d) Premium Payments made during the last seven years, and (e) Payment
Enhancements credited during the last seven years.
UNDER THE FOLLOWING SITUATIONS, THE CONTINGENT DEFERRED SALES CHARGE IS WAIVED:
- - Upon eligible confinement as described in the Waiver of Sales Charge Rider. We
will waive any Contingent Deferred Sales Charge applicable to a partial or
full Surrender if you, the joint owner or the Annuitant, is confined for at
least 180 consecutive calendar days to a: (a) facility recognized as a general
hospital by the proper authority of the state in which it is located; or
(b) facility recognized as a general hospital by the Joint Commission on the
Accreditation of Hospitals; or (c) facility certified by Medicare as a
hospital or long-term care facility; or (d) nursing home licensed by the state
in which it is located and offers the services of a registered nurse 24 hours
a day. If you, the joint owner or the Annuitant is confined when you purchase
the Contract, this waiver is not available. For it to apply, you must:
(a) have owned the Contract continuously since it was issued, (b) provide
written proof of confinement satisfactory to us, and (c) request the Surrender
within 91 calendar days of the last day of confinement. This waiver may not be
available in all states. Please contact your Registered Representative or us
to determine if it is available for you. ONCE YOU ELECT THIS WAIVER, HARTFORD
WILL NOT ACCEPT ANY SUBSEQUENT PREMIUM PAYMENTS. IN ADDITION, IF YOU REQUEST A
FULL OR PARTIAL SURRENDER DURING CONFINEMENT, WE WILL DEDUCT FROM YOUR
CONTRACT VALUE ANY PAYMENT ENHANCEMENTS CREDITED DURING THE TIME YOU WERE
CONFINED.
- - For Required Minimum Distributions. This allows Annuitants who are age 70 1/2
or older, with a Contract held under an Individual Retirement Account or
403(b) plan, to Surrender an amount equal to the Required Minimum Distribution
for the Contract without a Contingent Deferred Sales Charge. All requests for
Required Minimum Distributions must be in writing.
THE FOLLOWING SITUATIONS ARE NOT SUBJECT TO A CONTINGENT DEFERRED SALES CHARGE:
- - Upon death of the Annuitant or Contract Owner. No Contingent Deferred Sales
Charge will be deducted if the Annuitant or Contract Owner dies, unless the
Contract Owner is not a natural person (e.g. a trust).
- - Upon the commencement of Annuity Payouts. The Contingent Deferred Sales Charge
is not deducted when we begin to make Annuity Payouts. We will charge a
Contingent Deferred Sales Charge if the Contract is fully or partially
Surrendered during the Contingent Deferred Sales Charge period under an
Annuity Payout Option which allows Surrenders.
- - Upon cancellation during the Right to Cancel Period.
2. MORTALITY AND EXPENSE RISK CHARGE
For assuming mortality and expense risks under the Contract, we deduct a daily
charge at an annual rate of 1.50% of Sub-Account Value (estimated at .XX% for
mortality and .XX% for expenses). The mortality and expense risk charge is
broken into charges for mortality risks and for an expense risk:
- - MORTALITY RISK -- There are two types of mortality risks that we assume, those
made while your Premium Payments are accumulating and those made once Annuity
Payouts have begun.
During the period your Premium Payments are accumulating, we are required to
cover any difference between the Death Benefit paid and the Surrender Value.
These differences may occur during periods of declining value or in periods
where the Contingent Deferred Sales Charges would have been applicable. The
risk that we bear during this period is that actual mortality rates, in
aggregate, may exceed expected mortality rates.
Once Annuity Payouts have begun, we may be required to make Annuity Payouts as
long as the Annuitant is living, regardless of how long the Annuitant lives.
We would be required to make these payments if the Payout Option chosen is the
Life Annuity, Life Annuity With Payments for a Period Certain or Joint and
Last Survivor Life Annuity Payout Option. The risk that we bear during this
period is that the actual mortality rates, in aggregate, may be lower than the
expected mortality rates.
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20 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
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- - EXPENSE RISK -- We also bear an expense risk that the Contingent Deferred
Sales Charges and the Annual Maintenance Fee collected before the Annuity
Commencement Date may not be enough to cover the actual cost of selling,
distributing and administering the Contract.
Although variable Annuity Payouts will fluctuate with the performance of the
underlying Fund selected, your Annuity Payouts will NOT be affected by (a) the
actual mortality experience of our Annuitants, or (b) our actual expenses if
they are greater than the deductions stated in the Contract. Because we cannot
be certain how long our Annuitants will live, we charge this percentage fee
based on the mortality tables currently in use. The mortality and expense risk
charge enables us to keep our commitments and to pay you as planned.
3. ANNUAL MAINTENANCE FEE
The Annual Maintenance Fee is a flat fee that is deducted from your Contract
Value to reimburse us for expenses relating to the administrative maintenance of
the Contract and the Accounts. The annual $30 charge is deducted on a Contract
Anniversary or when the Contract is fully Surrendered if the Contract Value at
either of those times is less than $50,000. The charge is deducted
proportionately from each Account in which you are invested.
WHEN IS THE ANNUAL MAINTENANCE FEE WAIVED?
We will waive the Annual Maintenance Fee if your Contract Value is $50,000 or
more on your Contract Anniversary or when you fully Surrender your Contract. In
addition, we will waive one Annual Maintenance Fee for Contract Owners who own
more than one Contract with a combined Contract Value between $50,000 and
$100,000. If you have multiple Contracts with a combined Contract Value of
$100,000 or greater, we will waive the Annual Maintenance Fee on all Contracts.
However, we reserve the right to limit the number of waivers to a total of six
Contracts. We also reserve the right to waive the Annual Maintenance Fee under
certain other conditions.
4. ADMINISTRATIVE CHARGE
For administration, we apply a daily charge at the rate of .15% per annum
against all Contract Values held in the Separate Account during both the
accumulation and annuity phases of the Contract. There is not necessarily a
relationship between the amount of administrative charge imposed on a given
Contract and the amount of expenses that may be attributable to that Contract;
expenses may be more or less than the charge.
5. PREMIUM TAXES
We deduct Premium Taxes, if required, by a state or other government agency.
Some states collect the taxes when Premium Payments are made; others collect
when Annuity Payouts begin. Since we pay Premium Taxes when they are required by
applicable law, we may deduct them from your Contract when we pay the taxes,
upon Surrender, or on the Annuity Calculation Date. The Premium Tax rate varies
by state or municipality. Currently, the maximum rate charged by any state is
3.5% and 4% in Puerto Rico.
6. CHARGES AGAINST THE FUNDS
The Separate Account purchases shares of the Funds at net asset value. The net
asset value of the Fund 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.
OPTIONAL DEATH BENEFIT CHARGE -- If you elect the Optional Death Benefit, we
will subtract an additional charge on a daily basis until we begin to make
Annuity Payouts that is equal to an annual charge of .15% of your Contract Value
invested in the Funds.
WE MAY OFFER, IN OUR DISCRETION, REDUCED FEES AND CHARGES INCLUDING, BUT NOT
LIMITED TO CONTINGENT DEFERRED SALES CHARGES, THE MORTALITY AND EXPENSE RISK
CHARGE, ANY APPLICABLE ADMINISTRATIVE CHARGE, THE OPTIONAL DEATH BENEFIT CHARGE
AND THE ANNUAL MAINTENANCE FEE, FOR CERTAIN CONTRACTS (INCLUDING EMPLOYER
SPONSORED SAVINGS PLANS) WHICH MAY RESULT IN DECREASED COSTS AND EXPENSES.
REDUCTIONS IN THESE FEES AND CHARGES WILL NOT BE UNFAIRLY DISCRIMINATORY AGAINST
ANY CONTRACT OWNER.
DEATH BENEFIT
WHAT IS THE DEATH BENEFIT AND HOW IS IT CALCULATED?
The Death Benefit is the amount we will pay upon the death of the Contract Owner
or the Annuitant. The Death Benefit is calculated when we receive a certified
death certificate or other legal document acceptable to us.
The calculated Death Benefit will remain invested in the same Accounts,
according to the Contract Owner's last instructions until we receive complete
written settlement instructions from the Beneficiary. Therefore, the Death
Benefit amount will fluctuate with the performance of the underlying Funds. When
there is more than one Beneficiary, we will calculate the Accumulation Units for
each Sub-account and the dollar amount for the Fixed Accumulation Feature for
each Beneficiary's portion of the proceeds.
If death occurs before the Annuity Commencement Date, the Death Benefit is the
greatest of:
- - The total Premium Payments you have made to us minus the dollar amount of any
partial Surrenders; or
- - The Contract Value of your Annuity minus any Payment Enhancements credited in
the 12 months prior to the date we calculate the Death Benefit; or
- - The Maximum Anniversary Value, which is described below, minus any Payment
Enhancements credited in the 12 months prior to the date we calculate the
Death Benefit.
The Maximum Anniversary Value is based on a series of calculations on Contract
Anniversaries of Contract Values, Premium Payments and partial Surrenders. We
will calculate an Anniversary Value for each Contract Anniversary prior to the
deceased's
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 21
- --------------------------------------------------------------------------------
81st birthday or date of death, whichever is earlier. The Anniversary Value is
equal to the Contract Value as of a Contract Anniversary, increased by the
dollar amount of any Premium Payments made since that anniversary and reduced by
the dollar amount of any partial Surrenders since that anniversary. The Maximum
Anniversary Value is equal to the greatest Anniversary Value attained from this
series of calculations.
The Maximum Anniversary Value is only calculated until the earlier of the
Contract Owner or Annuitant's 81st birthday or death.
You may also elect the Optional Death Benefit for an additional fee. The
Optional Death Benefit adds the Interest Accumulation Value to the Death Benefit
calculation.
If you elect the Optional Death Benefit, the Death Benefit prior to the
deceased's date of death or the deceased's 81st birthday, whichever is earlier,
will be the greater of:
- - The total Premium Payments you have made to us minus the dollar amount of any
partial Surrenders; or
- - The Contract Value of your Annuity minus any Payment Enhancements credited in
the 12 months prior to the date we calculate the death benefit; or
- - The Maximum Anniversary Value, minus any Payment Enhancements credited in the
12 months prior to the date we calculate the Death Benefit.
- - The Interest Accumulation Value.
The Interest Accumulation Value prior to the deceased's date of death or 81st
birthday, whichever is earlier is equal to:
- - Your Contract Value of your Annuity minus any Payment Enhancements credited in
the 12 months prior to the date we calculate the Death Benefit;
- - Plus any Premium Payments made;
- - Minus any partial Surrenders;
- - Compounded daily at an annual rate of 5.0%.
If you have taken any partial Surrenders, the Interest Accumulation Value will
be adjusted to reduce the Optional Death Benefit proportionally for any partial
Surrenders.
On or after the deceased's 81st birthday or date of death, the Interest
Accumulation Value will not continue to compound, but will be adjusted to add
any Premium Payments and Payment Enhancements or subtract any partial
Surrenders.
The Optional Death Benefit is limited to a maximum of 200% of any Premium
Payments made less proportional adjustments for any Surrenders..
If you elect the Optional Death Benefit, we will subtract an additional charge
on a daily basis until we begin to make Annuity Payouts that is equal to an
annual charge of .15% of your Contract Value invested in the Funds. The Optional
Death Benefit Rider may not be available if the Contract Owner or Annuitant is
age 75 or older. The Optional Death Benefit Rider is not available in the state
of Washington.
If you choose to elect the Optional Death Benefit at any time other than with
your initial Premium Payment your Optional Death Benefit calculation will be:
- - Your Contract Value on the date we add the Optional Death Benefit to your
Annuity;
- - Minus any Payment Enhancements credited on or before we add the Optional Death
Benefit;
- - Plus any Payment Enhancements made after the Optional Death Benefit is added;
- - Minus any partial surrenders after the Optional Death Benefit is added;
- - Compounded daily at an annual interest rate of 5%.
HOW IS THE DEATH BENEFIT PAID?
The Death Benefit may be taken in one lump sum or under any of the Annuity
Payout Options then being offered by us. On the date we receive complete
instructions from the Beneficiary, we will compute the Death Benefit amount to
be paid out or applied to a selected Annuity Payout Option. When there is more
than one Beneficiary, we will calculate the Death Benefit amount for each
Beneficiary's portion of the proceeds and then pay it out or apply it to a
selected Annuity Payout Option according to each Beneficiary's instructions. If
we receive the complete instructions on a Non-Valuation Day, computations will
take place on the next Valuation Day.
The Beneficiary may elect under the Annuity Proceeds Settlement Option "Death
Benefit Remaining with the Company" to leave proceeds from the Death Benefit
with us for up to five years from the date of the death if the death occurred
before the Annuity Commencement Date. Once we receive a certified death
certificate or other legal documents acceptable to us, the Beneficiary can: (a)
make Sub-Account transfers and (b) take Surrenders without paying Contingent
Deferred Sales Charges.
REQUIRED DISTRIBUTIONS -- If the Contract Owner dies before the Annuity
Commencement Date, the Death Benefit must be distributed within five years after
death. The Beneficiary can choose any Annuity Payout Option that results in
complete Annuity Payout within five years.
If the Contract Owner dies on or after the Annuity Commencement Date under an
Annuity Payout Option with a Death Benefit, any remaining value must be
distributed at least as rapidly as under the payment method being used as of the
Contract Owner's death.
If the Contract Owner is not an individual (e.g. a trust), then the original
Annuitant will be treated as the Contract Owner in the situations described
above and any change in the original Annuitant will be treated as the death of
the Contract Owner.
<PAGE>
22 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
- --------------------------------------------------------------------------------
WHO WILL RECEIVE THE DEATH BENEFIT?
The distribution of the Death Benefit is based on whether death is before, on or
after the Annuity Commencement Date.
IF DEATH OCCURS BEFORE THE ANNUITY COMMENCEMENT DATE:
<TABLE>
<S> <C> <C> <C>
IF THE DECEASED IS THE . . . AND . . . AND . . . THEN THE . . .
Contract Owner There is a surviving joint The Annuitant is living or Joint Contract Owner
Contract Owner deceased receives the Death
Benefit.
- ----------------------------------------------------------------------------------------------------------------
Contract Owner There is no surviving The Annuitant is living or Designated Beneficiary
joint Contract Owner deceased receives the Death
Benefit.
- ----------------------------------------------------------------------------------------------------------------
Contract Owner There is no surviving The Annuitant is living or Contract Owner's estate
joint Contract Owner and deceased receives the Death
the Beneficiary Benefit.
predeceases the Contract
Owner
- ----------------------------------------------------------------------------------------------------------------
Annuitant The Contract Owner is There is no named Death Benefit is paid to
living Contingent Annuitant the Contract Owner and not
the designated
Beneficiary.
- ----------------------------------------------------------------------------------------------------------------
Annuitant The Contract Owner is The Contingent Annuitant Contingent Annuitant
living is living becomes the Annuitant, and
the Contract continues.
</TABLE>
IF DEATH OCCURS ON OR AFTER THE ANNUITY COMMENCEMENT DATE:
<TABLE>
<CAPTION>
<S> <C> <C>
IF THE DECEASED IS THE . . . AND . . . THEN THE . . .
Contract Owner The Annuitant is living Designated Beneficiary becomes the
Contract Owner
- ----------------------------------------------------------------------------------------------------------------
Annuitant The Contract Owner is living Contract Owner receives the Death
Benefit.
- ----------------------------------------------------------------------------------------------------------------
Annuitant The Annuitant is also the Contract Owner Designated Beneficiary receives the
Death Benefit.
</TABLE>
THESE ARE THE MOST COMMON DEATH BENEFIT SCENARIOS, HOWEVER, THERE ARE OTHERS.
SOME OF THE ANNUITY PAYOUT OPTIONS MAY NOT RESULT IN A DEATH BENEFIT PAYOUT. IF
YOU HAVE QUESTIONS ABOUT THESE AND ANY OTHER SCENARIOS, PLEASE CONTACT YOUR
REGISTERED REPRESENTATIVE OR US.
WHAT SHOULD THE BENEFICIARY CONSIDER?
ALTERNATIVES TO THE REQUIRED DISTRIBUTIONS -- The selection of an Annuity Payout
Option and the timing of the selection will have an impact on the tax treatment
of the Death Benefit. To receive favorable tax treatment, the Annuity Payout
Option selected: (a) cannot extend beyond the Beneficiary's life or life
expectancy, and (b) must begin within one year of the date of death.
If these conditions are NOT met, the Death Benefit will be treated as a lump sum
payment for tax purposes. This sum will be taxable in the year in which it is
considered received.
SPOUSAL CONTRACT CONTINUATION -- If the Beneficiary is the Contract Owner's
spouse, the Beneficiary may elect to continue the Contract as the contract
owner, receive the death benefit in one lump sum payment or elect an Annuity
Payout Option. If the beneficiary elects to continue the Contract, we will
adjust the Contract Value to equal the amount that we would have paid as the
Death Benefit. This spousal continuation is available only once for each
Contract.
SURRENDERS
WHAT KINDS OF SURRENDERS ARE AVAILABLE?
FULL SURRENDERS BEFORE THE ANNUITY COMMENCEMENT DATE -- When you Surrender your
Contract before the Annuity Commencement Date, the Surrender Value of the
Contract will be paid in a lump sum. The Surrender Value is the Contract Value
minus any applicable Premium Taxes, Contingent Deferred Sales Charges and the
Annual Maintenance Fee. The Surrender Value may be more or less than the amount
of the Premium Payments made to a Contract.
PARTIAL SURRENDERS BEFORE THE ANNUITY COMMENCEMENT DATE -- You may request a
partial Surrender of Contract Values at any time before the Annuity Commencement
Date. A
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 23
- --------------------------------------------------------------------------------
Contingent Deferred Sales Charge may be deducted. There are two restrictions:
- - The partial Surrender amount must be at least equal to $100, our current
minimum for partial Surrenders, and
- - The Contract must have a minimum Contract Value of $500 after the Surrender.
We reserve the right to close your Contract and pay the full Surrender Value
if the Contract Value is under the minimum after the Surrender. If your
Contract was issued in Texas, a remaining value of $500 is not required to
continue the Contract if Premium Payments were made in the last two Contract
Years.
FULL SURRENDERS AFTER THE ANNUITY COMMENCEMENT DATE -- You may Surrender your
Contract on or after the Annuity Commencement Date only if you selected the
Payment For a Period Certain Annuity Payout Option. Under this option, we pay
you the Commuted Value of your Contract minus any applicable Contingent Deferred
Sales Charges. The Commuted Value is determined on the day we receive your
written request for Surrender.
PARTIAL SURRENDERS AFTER THE ANNUITY COMMENCEMENT DATE -- Partial Surrenders are
permitted after the Annuity Commencement Date if you elect the Life Annuity with
Payments for a Period Certain, Joint and Last Survivor Life Annuity with
Payments for a Period Certain, or Payment for a Period Certain Annuity Payout
Options, but check with your tax advisor because there could be adverse tax
consequences.
HOW DO I REQUEST A SURRENDER?
Requests for full Surrenders must be in writing. Requests for partial Surrenders
can be made in writing or by telephone. We will send your money within seven
days of receiving complete instructions. However, we may postpone payment of
Surrenders whenever: (a) the New York Stock Exchange is closed, (b) trading on
the New York Stock Exchange is restricted by the SEC, (b) the SEC permits and
orders postponement or (c) the SEC determines that an emergency exists to
restrict valuation.
WRITTEN REQUESTS -- To request a full or partial Surrender, complete a Surrender
Form or send us a letter, signed by you, stating:
- - the dollar amount that you want to receive, either before or after we withhold
taxes and deduct for any applicable charges,
- - your tax withholding amount or percentage, if any, and
- - your mailing address.
If there are joint Contract Owners, both must authorize all Surrenders. For a
partial Surrender, specify the Accounts that you want your Surrender to come
from, otherwise, the Surrender will be taken in proportion to the value in each
Account.
TELEPHONE REQUESTS -- To request a partial Surrender by telephone, we must have
received your completed Telephone Redemption Program Enrollment Form. If there
are joint Contract Owners, both must sign this form. By signing the form, you
authorize us to accept telephone instructions for partial Surrenders from either
Contract Owner. Telephone authorization will remain in effect until we receive a
written cancellation notice from you or your joint Contract Owner, we
discontinue the program; or you are no longer the owner of the Contract. There
are some restrictions on telephone surrenders. Please call us with any
questions.
We may record telephone calls and use other procedures to verify information and
confirm that instructions are genuine. We will not be liable for losses or
expenses arising from telephone instructions reasonably believed to be genuine.
WE MAY MODIFY THE REQUIREMENTS FOR TELEPHONE REDEMPTIONS AT ANY TIME.
Telephone Surrender instructions received before the close of the New York Stock
Exchange will be processed on that Valuation Day. Otherwise, your request will
be processed on the next Valuation Day.
COMPLETING A POWER OF ATTORNEY FORM FOR ANOTHER PERSON TO ACT ON YOUR BEHALF MAY
PREVENT YOU FROM MAKING SURRENDERS VIA TELEPHONE.
WHAT SHOULD BE CONSIDERED ABOUT TAXES?
There are certain tax consequences associated with Surrenders:
PRIOR TO AGE 59 1/2 -- If you make a Surrender prior to age 59 1/2, there may be
adverse tax consequences including a 10% federal income tax penalty on the
taxable portion of the Surrender payment. Surrendering before age 59 1/2 may
also affect the continuing tax-qualified status of some Contracts.
WE DO NOT MONITOR SURRENDER REQUESTS. TO DETERMINE WHETHER A SURRENDER IS
PERMISSIBLE, WITH OR WITHOUT FEDERAL INCOME TAX PENALTY, PLEASE CONSULT YOUR
PERSONAL TAX ADVISER.
MORE THAN ONE CONTRACT ISSUED IN THE SAME CALENDAR YEAR: If you own more than
one contract issued by us or our affiliates in the same calendar year, then
these contracts may be treated as one contract for the purpose of determining
the taxation of distributions prior to the Annuity Commencement Date. Please
consult your tax adviser for additional information.
INTERNAL REVENUE CODE SECTION 403(b) ANNUITIES -- As of December 31, 1988, all
section 403(b) annuities have limits on full and partial Surrenders.
Contributions to your Contract made after December 31, 1988 and any increases in
cash value after December 31, 1988 may not be distributed unless you are:
(a) age 59 1/2, (b) no longer employed, (c) deceased, (d) disabled, or
(e) experiencing a financial hardship (cash value increases may not be
distributed for hardships prior to age 59 1/2). Distributions prior to age
59 1/2 due to financial hardship; unemployment or retirement may still be
subject to a federal income tax penalty of 10%.
WE ENCOURAGE YOU TO CONSULT WITH YOUR TAX ADVISER BEFORE MAKING ANY SURRENDERS.
PLEASE SEE THE "FEDERAL TAX CONSIDERATIONS" SECTION FOR MORE INFORMATION.
<PAGE>
24 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
- --------------------------------------------------------------------------------
ANNUITY PAYOUTS
THIS SECTION DESCRIBES WHAT HAPPENS WHEN WE BEGIN TO MAKE REGULAR ANNUITY
PAYOUTS FROM YOUR CONTRACT. YOU, AS THE CONTRACT OWNER, SHOULD ANSWER FIVE
QUESTIONS:
1. When do you want Annuity Payouts to begin?
2. What Annuity Payout Option do you want to use?
3. How often do you want to receive Annuity Payouts?
4. What is the Assumed Investment Return?
5. Do you want fixed dollar amount or variable dollar amount Annuity
Payouts?
Please check with your financial advisor to select the Annuity Payout Option
that best meets your income needs.
1. WHEN DO YOU WANT ANNUITY PAYOUTS TO BEGIN?
You select an Annuity Commencement Date when you purchase your Contract or at
any time before you begin receiving Annuity Payouts. You may change the Annuity
Commencement Date by notifying us within thirty days prior to the date. The
Annuity Commencement Date cannot be deferred beyond the Annuitant's 90th
birthday or the end of the 10th Contract Year, whichever is later. You may elect
a later Annuity Commencement Date if we allow and subject to the laws and
regulations then in effect. If this Contract is issued to the trustee of a
Charitable Remainder Trust, the Annuity Commencement Date may be deferred to the
Annuitant's 100th birthday.
The Annuity Calculation Date is when the amount of your Annuity Payout is
determined. This occurs within five Valuation Days before your selected Annuity
Commencement Date. We will deduct any Payment Enhancements credited in the 24
months before the Annuity Calculation Date from your Contract Value when we
determine the amount available for Annuity Payouts.
All Annuity Payouts, regardless of frequency, will occur on the same day of the
month as the Annuity Commencement Date. After the initial payout, if an Annuity
Payout date falls on a Non-Valuation Day, the Annuity Payout is computed on the
prior Valuation Day. If the Annuity Payout date does not occur in a given month
due to a leap year or months with more than 28 days (i.e. the 31st), the Annuity
Payout will be computed on the last Valuation Day of the month.
2. WHICH ANNUITY PAYOUT OPTION DO YOU WANT TO USE?
Your Contract contains the Annuity Payout Options described below. The Annuity
Proceeds Settlement Option "Death Benefit Remaining with the Company" is an
option that can be elected by the Beneficiary after the death of the Contract
Owner and is described in the "Death Benefit" section. We may at times offer
other Annuity Payout Options.
OPTION 1 -- LIFE ANNUITY -- We make Annuity Payouts as long as the Annuitant is
living. When the Annuitant dies, we stop making Annuity Payouts. A Payee would
receive only one Annuity Payout if the Annuitant dies after the first payout,
two Annuity Payouts if the Annuitant dies after the second payout, and so forth.
OPTION 2 -- LIFE ANNUITY WITH A CASH REFUND -- We will make Annuity Payouts as
long as the Annuitant is living. When the Annuitant dies the remaining value
will be paid to the Beneficiary. The remaining value is equal to the Contract
Value on the Annuity Calculation Date minus any Premium Tax and the Annuity
Payouts already made. This option is only available for Variable Dollar Amount
Annuity Payouts using the 5% Assumed Investment Return.
OPTION 3 -- LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN -- We make monthly
Annuity Payouts during the lifetime of the Annuitant but Annuity Payouts are at
least guaranteed for the number of years you select with a minimum of 10 years.
If, at the death of the Annuitant, Annuity Payouts have been made for less than
the minimum elected number of months, then the Beneficiary may elect to continue
the remaining Annuity Payouts or receive the present value of the amount of the
remaining Annuity Payouts.
This option allows you to take partial Surrenders of amounts equal to the
Commuted Value of the payments we would have made during the "Period Certain"
(the minimum number of months you elected) but only if you elected a variable
dollar amount annuity payout and make the request during the Period Certain.
Hartford will deduct any applicable Contingent Deferred Sales Charges. If you
elect to take the entire Commuted Value of the payments we would have made
during the Period Certain, Hartford will not make any Annuity Payouts during the
remaining Period Certain. If you elect to take only some of the Commuted Value
of the payments we would have made during the Period Certain, Hartford will
reduce the remaining Annuity Payouts during the remaining Period Certain.
Annuity Payouts that occur after the remaining Period Certain will not change.
OPTION 4 -- JOINT AND LAST SURVIVOR LIFE ANNUITY -- We will make Annuity Payouts
as long as the Annuitant and Joint Annuitant are living. When one Annuitant
dies, we continue to make Annuity Payouts to the other Annuitant until that
second Annuitant dies. When choosing this option, you must decide what will
happen to the Annuity Payouts; either fixed or variable, after the first
Annuitant dies. You must select Annuity Payouts that:
- - Remain the same at 100%, or
- - Decrease to 66.67%, or
- - Decrease to 50%.
For variable Annuity Payouts, these percentages represent Annuity Units; for
fixed Annuity Payouts, they represent actual dollar amounts. The percentage will
also impact the Annuity Payout amount we pay while both Annuitants are living.
If you pick a lower percentage, your original Annuity Payouts will be higher
while both Annuitants are alive.
OPTION 5 -- JOINT AND LAST SURVIVOR LIFE ANNUITY WITH PAYMENTS FOR A PERIOD
CERTAIN -- We will make Annuity Payouts as long as either the Annuitant or Joint
Annuitant are living, but we at least guarantee to make Annuity Payouts for a
time period
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 25
- --------------------------------------------------------------------------------
you select, between 10 years and 100 years minus the Annuitant's age. If the
Annuitant and the Joint Annuitant both die before the guaranteed number of years
have passed, then the Beneficiary has two options, (a) continue Annuity Payouts
for the remainder of the guaranteed number of years or (b) receive the Commuted
Value in one sum.
When choosing this option, you must decide what will happen to the Annuity
Payouts after the first Annuitant dies. You must select Annuity Payouts that:
- - Remain the same at 100%, or
- - Decrease to 66.67%, or
- - Decrease to 50%.
For variable dollar amount Annuity Payouts, these percentages represent Annuity
Units. For fixed-dollar amount Annuity Payouts, these percentages represent
actual dollar amounts. The percentage will also impact the Annuity Payout amount
we pay while both Annuitants are living. If you pick a lower percentage, your
original Annuity Payouts will be higher while both Annuitants are alive.
This option allows full or partial Surrenders but only if you elected the
Variable Dollar Amount Annuity Payout and you request a surrender during the
"Period Certain" or during the minimum number of months you elected to have the
Annuity Payouts guaranteed. We will pay the Commuted Value minus any applicable
Contingent Deferred Sales Charges. If you elect a full Surrender, Hartford will
not make any Annuity Payouts during the remaining guaranteed period. If you
elect a partial Surrender, Hartford will reduce the amount of the Annuity
Payouts during the remaining guaranteed period. Annuity Payouts that occur after
the remaining guaranteed period will not change if you take full or partial
Surrenders
OPTION 6 -- PAYMENT FOR A PERIOD CERTAIN -- We will make Annuity Payouts for the
number of years that you select. You can select any number of years between 10
years and 100 years minus the Annuitant's age. If, at the death of the
Annuitant, Annuity Payouts have been made for less than the time period
selected, then the Beneficiary may elect to continue the remaining Annuity
Payouts or receive the commuted value in one sum.
This option allows you to take partial Surrenders of amounts equal to the
Commuted Value of the payments we would have made during the "Period Certain"
(the minimum number of months you elected) but only if you elected a variable
dollar amount annuity payout and make the request during the Period Certain.
Hartford will deduct any applicable Contingent Deferred Sales Charges. If you
elect to take the entire Commuted Value of the payments we would have made
during the Period Certain, Hartford will not make any Annuity Payouts during the
remaining Period Certain. If you elect to take only some of the Commuted Value
of the payments we would have made during the Period Certain, Hartford will
reduce the remaining Annuity Payouts during the remaining Period Certain.
Annuity Payouts that occur after the remaining Period Certain will not change.
IMPORTANT INFORMATION:
- - YOU CANNOT SURRENDER YOUR CONTRACT ONCE ANNUITY PAYOUTS BEGIN, UNLESS YOU HAVE
SELECTED THE LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN, JOINT AND LAST
SURVIVOR LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN OR PAYMENT FOR A
PERIOD CERTAIN ANNUITY PAYOUT OPTIONS. A CONTINGENT DEFERRED SALES CHARGE MAY
BE DEDUCTED.
- - For Non-Qualified Contracts, if you do not elect an Annuity Payout Option,
fixed Annuity Payouts will automatically begin on the Annuity Commencement
Date under the Life Annuity with Payments for a 10 Year Period Certain.
- - For Qualified Contracts and Contracts issued in Texas, if you do not elect an
Annuity Payout Option, fixed Annuity Payouts will begin automatically on the
Annuity Commencement Date, under the Annuity Payout Option 1 -- Life Annuity.
3. HOW OFTEN DO YOU WANT THE PAYEE TO RECEIVE ANNUITY PAYOUTS?
In addition to selecting an Annuity Commencement Date and an Annuity Payout
Option, you must also decide how often you want the Payee to receive Annuity
Payouts. You may choose to receive Annuity Payouts:
- - monthly,
- - quarterly,
- - semi-annually, or
- - annually.
Once you select a frequency, it cannot be changed. If you do not make a
selection, the Payee will receive monthly Annuity Payouts. You must select a
frequency that results in an Annuity Payout of at least $50. If the amount falls
below $50, we have the right to change the frequency to bring the Annuity Payout
up to at least $50.
4. WHAT IS THE ASSUMED INVESTMENT RETURN?
The Assumed Investment Return ("AIR") is the investment return you select before
we start to make Annuity Payouts. It is a critical assumption for calculating
variable dollar amount Annuity Payouts. The first Annuity Payout will be based
upon the AIR. The remaining Annuity Payouts will fluctuate based on the
performance of the underlying Funds.
Subject to the approval of your State, you can select one of three AIRs: 3%, 5%
or 6%. The greater the AIR, the greater the initial Annuity Payout. A higher AIR
may result in smaller potential growth in the Annuity Payouts. On the other
hand, a lower AIR results in a lower initial Annuity Payout, but future Annuity
Payouts have the potential to be greater.
For example, if the second monthly Annuity Payout is the same as the first, the
sub-accounts earned exactly the same return as the AIR. If the second monthly
Annuity Payout is more than the first, the sub-accounts earned more than the
AIR. If the second Annuity Payout is less than the first, the sub-account earned
less than the AIR.
<PAGE>
26 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
- --------------------------------------------------------------------------------
Level variable dollar amount Annuity Payouts would be produced if the investment
returns remained constant and equal to the AIR. In fact, Annuity Payouts will
vary up or down as the investment rate varies up or down from the AIR.
5. DO YOU WANT ANNUITY PAYOUTS TO BE FIXED-DOLLAR AMOUNT OR VARIABLE-DOLLAR
AMOUNT?
You may choose an Annuity Payout Option with fixed-dollar amounts or
variable-dollar amounts, depending on your income needs.
FIXED-DOLLAR AMOUNT ANNUITY PAYOUTS -- Once a fixed-dollar amount Annuity Payout
begins, you cannot change your selection to receive variable-dollar amount
Annuity Payout. You will receive equal fixed-dollar amount Annuity Payouts
throughout the Annuity Payout period. Fixed-dollar amount Annuity Payout amounts
are determined by multiplying the Contract Value, minus any applicable Premium
Taxes, by an Annuity rate. The annuity rate is set by us and is not less than
the rate specified in the fixed-dollar amount Annuity Payout Option tables in
your Contract.
VARIABLE-DOLLAR AMOUNT ANNUITY PAYOUTS -- A variable-dollar amount Annuity
Payout is based on the investment performance of the Sub-Accounts. The
variable-dollar amount Annuity Payouts may fluctuate with the performance of the
underlying Funds. To begin making variable-dollar amount Annuity Payouts, we
convert the first Annuity Payout amount to a set number of Annuity Units and
then price those units to determine the Annuity Payout amount. The number of
Annuity Units that determines the Annuity Payout amount remains fixed unless you
transfer units between Sub-Accounts.
The dollar amount of the first variable Annuity Payout depends on:
- - the Annuity Payout Option chosen,
- - the Annuitant's attained age and gender (if applicable), and,
- - the applicable annuity purchase rates based on the 1983a Individual Annuity
Mortality table
- - the Assumed Investment Return
The total amount of the first variable-dollar amount Annuity Payout is
determined by dividing the Contract Value minus any applicable Premium Taxes, by
$1,000 and multiplying the result by the payment factor defined in the Contract
for the selected Annuity Payout Option.
The dollar amount of each subsequent variable-dollar amount Annuity Payout is
equal to the total of:
Annuity Units for each Sub-Account multiplied by Annuity Unit Value of each
Sub-Account.
The Annuity Unit Value of each Sub-Account for any Valuation Period is equal to
the Accumulation Unit Value Net Investment Factor for the current Valuation
Period multiplied by the Annuity Unit factor, multiplied by the Annuity Unit
Value for the preceding Valuation Period.
TRANSFER OF ANNUITY UNITS -- After the Annuity Calculation Date, you may
transfer dollar amounts of Annuity Units from one Sub-Account to another. On the
day you make a transfer, the dollar amounts are equal for both Sub-Accounts and
the number of Annuity Units will be different. We will transfer the dollar
amount of your Annuity Units the day we receive your written request if received
before the close of the New York Stock Exchange. Otherwise, the transfer will be
made on the next Valuation Day.
OTHER PROGRAMS AVAILABLE
- --------------------------------------------------------------------------------
INVESTEASE-REGISTERED TRADEMARK- PROGRAM -- InvestEase is an electronic transfer
program that allows you to have money automatically transferred from your
checking or savings account, and invested in your Contract. It is available for
Premium Payments made after your initial Premium Payment. The minimum amount for
each transfer is $50. You can elect to have transfers occur either monthly or
quarterly, and they can be made into any Account available in your Contract.
AUTOMATIC INCOME PROGRAM -- The Automatic Income Program allows you to Surrender
up to 10% of your total Premium Payments each Contract Year. We can Surrender
from the Accounts you select systematically on a monthly, quarterly, semiannual,
or annual basis. The Automatic Income Program may change based on your
instructions after your seventh Contract Year.
ASSET ALLOCATION PROGRAM -- Asset Allocation is a program that allows you to
choose an allocation for your Sub-Accounts to help you reach your investment
goals. Some Contracts offer model allocations with pre-selected Sub-Accounts and
percentages that have been established for each type of investor - ranging from
conservative to aggressive. Over time, Sub-Account performance may cause your
Contract's allocation percentages to change, but under the Asset Allocation
Program, your Sub-Account allocations are rebalanced to the percentages in the
current model you have chosen. You can transfer freely between allocation models
up to twelve times per year. You can also allocate a portion of your investment
to Sub-Accounts that may not be part of the model. You can only participate in
one asset allocation model at a time.
ASSET REBALANCING -- Asset Rebalancing is another type of asset allocation
program in which you customize your Sub-Accounts to meet your investment needs.
You select the Sub-Accounts and the percentages you want allocated to each Sub-
Account. Based on the frequency you select, your model will automatically
rebalance to the original percentages chosen. You can transfer freely between
models up to twelve times per year.
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HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 27
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You can also allocate a portion of your investment to Sub-Accounts that are not
part of the model. You can only participate in one asset rebalancing model at a
time.
OTHER INFORMATION
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ASSIGNMENT -- Ownership of this Contract is generally assignable. However, if
the Contract is issued to a tax qualified retirement plan, it is possible that
the ownership of the Contract may not be transferred or assigned. An assignment
of a Non-Qualified Contract may subject the Contract Values or Surrender Value
to income taxes and certain penalty taxes.
CONTRACT MODIFICATION -- The Annuitant may not be changed. However, if the
Annuitant is still living, the Contingent Annuitant may be changed at any time
prior to the Annuity Commencement Date by sending us written notice. We may
modify the Contract, but no modification will effect the amount or term of any
Contract unless a modification is required to conform the Contract to applicable
Federal or State law. No modification will effect the method by which Contract
Values are determined.
HOW CONTRACTS ARE SOLD -- Hartford Securities Distribution Company, Inc. ("HSD")
serves as Principal Underwriter for the securities issued with respect to the
Separate Account. HSD is registered with the Securities and Exchange Commission
under the Securities Exchange Act of 1934 as a Broker-Dealer and is a member of
the National Association of Securities Dealers, Inc. HSD is an affiliate of
ours. Both HSD and Hartford are ultimately controlled by The Hartford Financial
Services Group, Inc. The principal business address of HSD is the same as ours.
The securities will be sold by individuals who represent us as insurance agents
and who are registered representatives of Broker-Dealers that have entered into
distribution agreements with HSD.
Commissions will be paid by Hartford and will not be more than 6% of Premium
Payments. From time to time, Hartford may pay or permit other promotional
incentives, in cash or credit or other compensation.
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
sales charges described in this prospectus.
In addition, a broker-dealer or financial institution may also receive
additional compensation for, among other things, training, marketing or other
services provided. HSD, its affiliates or Hartford may also make compensation
arrangements with certain broker-dealers or financial institutions based on
total sales by the broker-dealer or financial institution of insurance products.
These payments, which may be different for different broker-dealers or financial
institutions, will be made by HSD, its affiliates or Hartford 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.
LEGAL MATTERS AND EXPERTS
There are no material legal proceedings pending to which the Separate Account is
a party.
Counsel with respect to federal laws and regulations applicable to the issue and
sale of the Contracts and with respect to Connecticut law is Lynda Godkin,
Senior Vice President, General Counsel and Corporate Secretary, Hartford Life
and Annuity Insurance Company, P.O. Box 2999, Hartford, Connecticut 06104-2999.
The audited financial statements and financial statement schedules included in
this registration statement have been audited by Arthur Andersen LLP,
independent public accountants, as indicated in their reports with respect
thereto, and are included herein in reliance upon the authority of said firm as
experts in giving said reports. The principal business address of Arthur
Andersen LLP is One Financial Plaza, Hartford, Connecticut 06103.
MORE INFORMATION
You may call your Representative if you have any questions or write or call us
at the address below:
Hartford Life and Annuity Insurance Company
Attn: Individual Annuity Servicese
P.O. Box 5085
Hartford, Connecticut 06102-5085.
Telephone: (800) 862-6668 (Contract Owners)
(800) 862-7155 (Registered Representatives)
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28 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
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FEDERAL TAX CONSIDERATIONS
What are some of the federal tax consequences which affect these Contracts?
A. GENERAL
Since federal tax law is complex, the tax consequences of purchasing this
contract will vary depending on your situation. You may need tax or legal advice
to help you determine whether purchasing this contract is right for you.
Our general discussion of the tax treatment of this contract 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 contract cannot be made in the prospectus. We also do not
discuss state, municipal or other tax laws that may apply to this contract. For
detailed information, you should consult with a qualified tax adviser familiar
with your situation.
B. TAXATION OF HARTFORD AND THE SEPARATE ACCOUNT
The Separate Account is taxed as part of Hartford which is taxed as a life
insurance company in accordance with 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 Chapter 1 of the Code.
Investment income and any realized capital gains on the assets of the Separate
Account are reinvested and are taken into account in determining the value of
the Accumulation and Annuity Units (See "Value of Accumulation Units"). As a
result, such investment income and realized capital gains are automatically
applied to increase reserves under the Contract.
No taxes are due on interest, dividends and short-term or long-term capital
gains earned by the Separate Account with respect to Qualified or Non-Qualified
Contracts.
C. TAXATION OF ANNUITIES -- GENERAL PROVISIONS AFFECTING PURCHASES OTHER THAN
QUALIFIED RETIREMENT PLANS
Section 72 of the Code governs the taxation of annuities in general.
1. NON-NATURAL PERSONS, CORPORATIONS, ETC.
Code Section 72 contains provisions for contract owners which are not natural
persons. Non-natural persons include corporations, trusts, limited liability
companies, partnerships and other types of legal entities. The tax rules for
contracts owned by non-natural persons are different from the rules for
contracts owned by individuals. For example, the annual net increase in the
value of the contract is currently includible in the gross income of a
non-natural person, unless the non-natural person holds the contract as an agent
for a natural person. There are additional exceptions from current inclusion
for:
- - certain annuities held by structured settlement companies,
- - certain annuities held by an employer with respect to a terminated qualified
retirement plan and
- - certain immediate annuities.
A non-natural person which is a tax-exempt entity for federal tax purposes will
not be subject to income tax as a result of this provision.
If the contract owner is a non-natural person, the primary annuitant is treated
as the contract owner in applying mandatory distribution rules. These rules
require that certain distributions be made upon the death of the contract owner.
A change in the primary annuitant is also treated as the death of the contract
owner.
2. OTHER CONTRACT OWNERS (NATURAL PERSONS).
A Contract Owner is not taxed on increases in the value of the Contract until an
amount is received or deemed received, e.g., in the form of a lump sum payment
(full or partial value of a Contract) or as Annuity payments under the
settlement option elected.
The provisions of Section 72 of the Code concerning distributions are summarized
briefly below. Also summarized are special rules affecting distributions from
Contracts obtained in a tax-free exchange for other annuity contracts or life
insurance contracts which were purchased prior to August 14, 1982.
A. DISTRIBUTIONS PRIOR TO THE ANNUITY COMMENCEMENT DATE.
i. Total premium payments less amounts received which were not includable in
gross income equal the "investment in the contract" under Section 72 of the
Code.
ii. To the extent that the value of the Contract (ignoring any surrender
charges except on a full surrender) exceeds the "investment in the
contract," such excess constitutes the "income on the contract."
iii. Any amount received or deemed received prior to the Annuity Commencement
Date (e.g., upon a partial surrender) is deemed to come first from any
such "income on the contract" and then from "investment in the contract,"
and for these purposes such "income on the contract" shall be computed by
reference to any aggregation rule in subparagraph 2.c. below. As a result,
any such amount received or deemed received (1) shall be includable in
gross income to the extent that such amount does not exceed any such
"income on the contract," and (2) shall not be includable in gross income
to the extent that such amount does exceed any such "income on the
contract." If at the time that any amount is received or deemed received
there is no "income on the contract" (e.g., because the gross value of the
Contract does not exceed the "investment in the contract" and no
aggregation rule applies), then such amount received or deemed received
will not be includable in gross income, and will simply reduce the
"investment in the contract."
iv. The receipt of any amount as a loan under the Contract or the assignment or
pledge of any portion of the value of the
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HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 29
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Contract shall be treated as an amount received for purposes of this
subparagraph a. and the next subparagraph b.
v. In general, the transfer of the Contract, without full and adequate
consideration, will be treated as an amount received for purposes of this
subparagraph a. and the next subparagraph b. This transfer rule does not
apply, however, to certain transfers of property between spouses or incident
to divorce.
B. DISTRIBUTIONS AFTER ANNUITY COMMENCEMENT DATE.
Annuity payments made periodically after the Annuity Commencement Date are
includable in gross income to the extent the payments exceed the amount
determined by the application of the ratio of the "investment in the contract"
to the total amount of the payments to be made after the Annuity Commencement
Date (the "exclusion ratio").
i. When the total of amounts excluded from income by application of the
exclusion ratio is equal to the investment in the contract as of the
Annuity Commencement Date, any additional payments (including surrenders)
will be entirely includable in gross income.
ii. If the annuity payments cease by reason of the death of the Annuitant and,
as of the date of death, the amount of annuity payments excluded from gross
income by the exclusion ratio does not exceed the investment in the
contract as of the Annuity Commencement Date, then the remaining portion of
unrecovered investment shall be allowed as a deduction for the last taxable
year of the Annuitant.
iii. Generally, nonperiodic amounts received or deemed received after the
Annuity Commencement Date are not entitled to any exclusion ratio and
shall be fully includable in gross income. However, upon a full surrender
after such date, only the excess of the amount received (after any
surrender charge) over the remaining "investment in the contract" shall be
includable in gross income (except to the extent that the aggregation rule
referred to in the next subparagraph c. may apply).
C. AGGREGATION OF TWO OR MORE ANNUITY CONTRACTS.
Contracts issued after October 21, 1988 by the same insurer (or affiliated
insurer) to the same Contract Owner within the same calendar year (other than
certain contracts held in connection with a tax-qualified retirement
arrangement) will be treated as one annuity Contract for the purpose of
determining the taxation of distributions prior to the Annuity Commencement
Date. An annuity contract received in a tax-free exchange for another annuity
contract or life insurance contract may be treated as a new Contract for this
purpose. Hartford believes that for any annuity subject to such aggregation, the
values under the Contracts and the investment in the contracts will be added
together to determine the taxation under subparagraph 2.a., above, of amounts
received or deemed received prior to the Annuity Commencement Date. Withdrawals
will first be treated as withdrawals of income until all of the income from all
such Contracts is withdrawn. As of the date of this Prospectus, there are no
regulations interpreting this provision.
D. 10% PENALTY TAX -- APPLICABLE TO CERTAIN WITHDRAWALS AND ANNUITY
PAYMENTS.
i. If any amount is received or deemed received on the Contract (before or
after the Annuity Commencement Date), the Code applies a penalty tax equal
to ten percent of the portion of the amount includable in gross income,
unless an exception applies.
ii. The 10% penalty tax will not apply to the following distributions
(exceptions vary based upon the precise plan involved):
1. Distributions made on or after the date the recipient has attained the
age of 59 1/2.
2. Distributions made on or after the death of the holder or where the
holder is not an individual, the death of the primary annuitant.
3. Distributions attributable to a recipient's becoming disabled.
4. A distribution that is part of a scheduled series of substantially equal
periodic payments (not less frequently than annually) for the life (or
life expectancy) of the recipient (or the joint lives or life
expectancies of the recipient and the recipient's designated
Beneficiary).
5. Distributions of amounts which are allocable to the "investment in the
contract" prior to August 14, 1982 (see next subparagraph e.).
E. SPECIAL PROVISIONS AFFECTING CONTRACTS OBTAINED THROUGH A TAX-FREE
EXCHANGE OF OTHER ANNUITY OR LIFE INSURANCE CONTRACTS PURCHASED PRIOR TO
AUGUST 14, 1982.
If the Contract was obtained by a tax-free exchange of a life insurance or
annuity Contract purchased prior to August 14, 1982, then any amount received or
deemed received prior to the Annuity Commencement Date shall be deemed to come
(1) first from the amount of the "investment in the contract" prior to August
14, 1982 ("pre-8/14/82 investment") carried over from the prior Contract,
(2) then from the portion of the "income on the contract" (carried over to, as
well as accumulating in, the successor Contract) that is attributable to such
pre-8/14/82 investment, (3) then from the remaining "income on the contract" and
(4) last from the remaining "investment in the contract." As a result, to the
extent that such amount received or deemed received does not exceed such
pre-8/14/82 investment, such amount is not includable in gross income., In
addition, to the extent that such amount received or deemed received does not
exceed the sum of (a) such pre-8/14/82 investment and (b) the "income on the
contract" attributable thereto, such amount is not subject to the 10% penalty
tax. In all other respects, amounts received or deemed received from such post-
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30 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
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exchange Contracts are generally subject to the rules described in this
subparagraph 3.
F. REQUIRED DISTRIBUTIONS
i. Death of Contract Owner or Primary Annuitant
Subject to the alternative election or spouse beneficiary provisions in ii
or iii below:
1. If any Contract Owner dies on or after the Annuity Commencement Date and
before the entire interest in the Contract has been distributed, the
remaining portion of such interest shall be distributed at least as
rapidly as under the method of distribution being used as of the date of
such death;
2. If any Contract Owner dies before the Annuity Commencement Date, the
entire interest in the Contract will be distributed within 5 years after
such death; and
3. If the Contract Owner is not an individual, then for purposes of 1. or
2. above, the primary annuitant under the Contract shall be treated as
the Contract Owner, and any change in the primary annuitant shall be
treated as the death of the Contract Owner. The primary annuitant is the
individual, the events in the life of whom are of primary importance in
affecting the timing or amount of the payout under the Contract.
ii. Alternative Election to Satisfy Distribution Requirements
If any portion of the interest of a Contract Owner described in i. above is
payable to or for the benefit of a designated beneficiary, such beneficiary
may elect to have the portion distributed over a period that does not extend
beyond the life or life expectancy of the beneficiary. The election must be
made and payments must begin within a year of the death.
iii. Spouse Beneficiary
If any portion of the interest of a Contract Owner is payable to or for the
benefit of his or her spouse, and the Annuitant or Contingent Annuitant is
living, such spouse shall be treated as the Contract Owner of such portion
for purposes of section i. above. This spousal continuation shall apply only
once for this contract.
3. DIVERSIFICATION REQUIREMENTS.
The Code requires that investments supporting your contract be adequately
diversified. Code Section 817 provides that a variable annuity contract will not
be treated as an annuity 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 an annuity contract, the contract owner will be
subject to income tax on annual increases in cash value.
The Treasury Department's diversification regulations require, among other
things, that:
- - no more than 55% of the value of the total assets of the segregated asset
account underlying a variable contract is represented by any one investment,
- - no more than 70% is represented by any two investments,
- - no more than 80% is represented by any three investments and
- - no more than 90% is represented by any four investments.
In determining whether the diversification standards are met, all securities of
the same issuer, all interests in the same real property project, and all
interests in the same commodity are each treated as a single investment. In the
case of government securities, each government agency or instrumentality is
treated as a separate issuer.
A separate account must be in compliance with the diversification standards on
the last day of each calendar quarter or within 30 days after the quarter ends.
If an insurance company inadvertently fails to meet the diversification
requirements, the company may still comply within a reasonable period and avoid
the taxation of contract income on an ongoing basis. However, either the company
or the contract 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
contracts subject to the diversification requirements in a manner that will
maintain adequate diversification.
4. OWNERSHIP OF THE ASSETS IN THE SEPARATE ACCOUNT.
In order for a variable annuity 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 contract 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 contract owner, such as the
ability to select and control investments in a separate account, will cause the
contract 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
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 31
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regulations or revenue rulings under Section 817(d), relating to the definition
of variable contract."
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 contract owner is considered the owner of the assets
for tax purposes. We reserve the right to modify the contract, as necessary, to
prevent you from being considered the owner of assets in the separate account.
D. FEDERAL INCOME TAX WITHHOLDING
The portion of a distribution which is taxable income to the recipient will be
subject to federal income tax withholding, pursuant to Section 3405 of the Code.
The application of this provision is summarized below:
1. NON-PERIODIC DISTRIBUTIONS.
The portion of a non-periodic distribution which constitutes taxable income will
be subject to federal income tax withholding unless the recipient elects not to
have taxes withheld. If there is no election to waive withholding, 10% of the
taxable distribution will be withheld as federal income tax. Election forms will
be provided at the time distributions are requested. If the necessary election
forms are not submitted to Hartford, Hartford will automatically withhold 10% of
the taxable distribution.
2. PERIODIC DISTRIBUTIONS (DISTRIBUTIONS PAYABLE OVER A PERIOD GREATER THAN ONE
YEAR).
The portion of a periodic distribution which constitutes taxable income will be
subject to federal income tax withholding as if the recipient were married
claiming three exemptions. A recipient may elect not to have income taxes
withheld or have income taxes withheld at a different rate by providing a
completed election form. Election forms will be provided at the time
distributions are requested.
E. GENERAL PROVISIONS AFFECTING QUALIFIED RETIREMENT PLANS
The Contract may be used for a number of qualified retirement plans. If the
Contract is being purchased with respect to some form of qualified retirement
plan, please refer to Appendix I for information relative to the types of plans
for which it may be used and the general explanation of the tax features of such
plans.
F. ANNUITY PURCHASES BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
The discussion above provides general information regarding U.S. federal income
tax consequences to annuity 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 annuity distributions at a 30% rate,
unless a lower treaty rate applies. In addition, purchasers may be subject to
state premium tax, other 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 an annuity purchase.
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32 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
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APPENDIX I -- INFORMATION REGARDING TAX-QUALIFIED RETIREMENT PLANS
This summary does not attempt to provide more than general information about the
federal income tax rules associated with use of a Contract by a tax-qualified
retirement plan. Because of the complexity of the federal tax rules, owners,
participants and beneficiaries are encouraged to consult their own tax advisors
as to specific tax consequences.
The federal tax rules applicable to owners of Contracts under tax-qualified
retirement plans vary according to the type of plan as well as the terms and
conditions of the plan itself. Contract owners, plan participants and
beneficiaries are cautioned that the rights and benefits of any person may be
controlled by the terms and conditions of the tax-qualified retirement plan
itself, regardless of the terms and conditions of a Contract. We are not bound
by the terms and conditions of such plans to the extent such terms conflict with
a Contract, unless we specifically consent to be bound.
Some tax-qualified retirement plans are subject to distribution and other
requirements that are not incorporated into our administrative procedures.
Contract owners, participants and beneficiaries are responsible for determining
that contributions, distributions and other transactions comply with applicable
law. Tax penalties may apply to transactions with respect to tax-qualified
retirement plans if applicable federal income tax rules and restrictions are not
carefully observed.
We do not currently offer the Contracts in connection with all of the types of
tax-qualified retirement plans discussed below and may not offer the Contracts
for all types of tax-qualified retirement plans in the future.
1. TAX-QUALIFIED PENSION OR PROFIT-SHARING PLANS -- Eligible employers can
establish certain tax-qualified pension and profit-sharing plans under section
401 of the Code. Rules under section 401(k) of the Code govern certain "cash or
deferred arrangements" under such plans. Rules under section 408(k) govern
"simplified employee pensions". Tax-qualified pension and profit-sharing plans
are subject to limitations on the amount that may be contributed, the persons
who may be eligible to participate and the time when distributions must
commence. Employers intending to use the Contracts in connection with
tax-qualified pension or profit-sharing plans should seek competent tax and
other legal advice.
2. TAX SHELTERED ANNUITIES UNDER SECTION 403(B) -- Public schools and certain
types of charitable, educational and scientific organizations, as specified in
section 501(c)(3) of the Code, can purchase tax-sheltered annuity contracts for
their employees. Tax-deferred contributions can be made to tax-sheltered annuity
contracts under section 403(b) of the Code, subject to certain limitations.
Generally, such contributions may not exceed the lesser of $10,000 (indexed) or
20% of the employee's "includable compensation" for such employee's most recent
full year of employment, subject to other adjustments. Special provisions under
the Code may allow some employees to elect a different overall limitation.
Tax-sheltered annuity programs under section 403(b) are subject to a PROHIBITION
AGAINST DISTRIBUTIONS FROM THE CONTRACT ATTRIBUTABLE TO CONTRIBUTIONS MADE
PURSUANT TO A SALARY REDUCTION AGREEMENT, unless such distribution is made:
- - after the participating employee attains age 59 1/2;
- - upon separation from service;
- - upon death or disability; or
- - in the case of hardship (and in the case of hardship, any income attributable
to such contributions may not be distributed).
Generally, the above restrictions do not apply to distributions attributable to
cash values or other amounts held under a section 403(b) contract as of December
31, 1988.
3. DEFERRED COMPENSATION PLANS UNDER SECTION 457 -- A governmental employer or a
tax-exempt employer other than a governmental unit can establish a Deferred
Compensation Plan under section 457 of the Code. For these purposes, a
"governmental employer" is a State, a political subdivision of a State, or an
agency or an instrumentality of a State or political subdivision of a State.
Employees and independent contractors performing services for a governmental or
tax-exempt employer can elect to have contributions made to a Deferred
Compensation Plan of their employer in accordance with the employer's plan and
section 457 of the Code.
Deferred Compensation Plans that meet the requirements of section 457(b) of the
Code are called "eligible" Deferred Compensation Plans. Section 457(b) limits
the amount of contributions that can be made to an eligible Deferred
Compensation Plan on behalf of a participant. Generally, the limitation on
contributions is 33 1/3% of a participant's includable compensation (typically
25% of gross compensation) or, for 1999, $8,000 (indexed), whichever is less.
The plan may provide for additional "catch-up" contributions during the three
taxable years ending before the year in which the participant attains normal
retirement age.
All of the assets and income of an eligible Deferred Compensation Plan
established by a governmental employer after August 20, 1996, must be held in
trust for the exclusive benefit of participants and their beneficiaries. For
this purpose, custodial accounts and certain annuity contracts are treated as
trusts. Eligible Deferred Compensation Plans that were in existence on
August 20, 1996 may be amended to satisfy the trust and exclusive benefit
requirements any time prior to January 1, 1999, and must be amended not later
than that date to continue to receive favorable tax treatment. The requirement
of a trust does not apply to amounts under a Deferred Compensation Plan of a
tax-
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HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 33
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exempt (non-governmental) employer. In addition, the requirement of a trust does
not apply to amounts under a Deferred Compensation Plan of a governmental
employer if the Deferred Compensation Plan is not an eligible plan within the
meaning of section 457(b) of the Code. In the absence of such a trust, amounts
under the plan will be subject to the claims of the employer's general
creditors.
In general, distributions from an eligible Deferred Compensation Plan are
prohibited under section 457 of the Code unless made after the participating
employee:
- - attains age 70 1/2,
- - separates from service,
- - dies, or
- - suffers an unforeseeable financial emergency as defined in the Code.
Under present federal tax law, amounts accumulated in a Deferred Compensation
Plan under section 457 of the Code cannot be transferred or rolled over on a
tax-deferred basis except for certain transfers to other Deferred Compensation
Plans under section 457 in limited cases.
4. INDIVIDUAL RETIREMENT ANNUITIES ("IRAS") UNDER SECTION 408
TRADITIONAL IRAS. Eligible individuals can establish individual retirement
programs under section 408 of the Code through the purchase of an IRA. Section
408 imposes limits with respect to IRAs, including limits on the amount that may
be contributed to an IRA, the amount of such contributions that may be deducted
from taxable income, the persons who may be eligible to contribute to an IRA,
and the time when distributions commence from an IRA. Distributions from certain
tax-qualified retirement plans may be "rolled-over" to an IRA on a tax-deferred
basis.
SIMPLE IRAS. Eligible employees may establish SIMPLE IRAs in connection with a
SIMPLE IRA plan of an employer under section 408(p) of the Code. Special
rollover rules apply to SIMPLE IRAs. Amounts can be rolled over from one SIMPLE
IRA to another SIMPLE IRA. However, amounts can be rolled over from a SIMPLE IRA
to a Traditional IRA only after two years have expired since the employee first
commenced participation in the employer's SIMPLE IRA plan. Amounts cannot be
rolled over to a SIMPLE IRA from a qualified plan or a Traditional IRA. Hartford
is a non-designated financial institution for purposes of the SIMPLE IRA rules.
ROTH IRAS. Eligible individuals may establish Roth IRAs under section 408A of
the Code. Contributions to a Roth IRA are not deductible. Subject to special
limitations, a Traditional IRA may be converted into a Roth IRA or a
distribution from a Traditional IRA may be rolled over to a Roth IRA. However, a
conversion or a rollover from a Traditional IRA to a Roth IRA is not excludable
from gross income. If certain conditions are met, qualified distributions from a
Roth IRA are tax-free.
5. FEDERAL TAX PENALTIES AND WITHHOLDING -- Distributions from tax-qualified
retirement plans are generally taxed as ordinary income under section 72 of the
Code. Under these rules, a portion of each distribution may be excludable from
income. The excludable amount is the portion of the distribution that bears the
same ratio as the after-tax contributions bear to the expected return.
(a) PENALTY TAX ON EARLY DISTRIBUTIONS Section 72(t) of the Code imposes an
additional penalty tax equal to 10% of the taxable portion of a distribution
from certain tax-qualified retirement plans. However, the 10% penalty tax
does not apply to a distributions that is:
- - Made on or after the date on which the employee reaches age 59 1/2;
- - Made to a beneficiary (or to the estate of the employee) on or after the death
of the employee;
- - Attributable to the employee's becoming disabled (as defined in the Code);
- - Part of a series of substantially equal periodic payments (not less frequently
than annually) made for the life (or life expectancy) of the employee or the
joint lives (or joint life expectancies) of the employee and his or her
designated beneficiary;
- - Except in the case of an IRA, made to an employee after separation from
service after reaching age 55; or
- - Not greater than the amount allowable as a deduction to the employee for
eligible medical expenses during the taxable year.
In addition, the 10% penalty tax does not apply to a distribution from an IRA
that is:
- - Made after separation from employment to an unemployed IRA owner for health
insurance premiums, if certain conditions are met;
- - Not in excess of the amount of certain qualifying higher education expenses,
as defined by section 72(t)(7) of the Code; or
- - A qualified first-time homebuyer distribution meeting the requirements
specified at section 72(t)(8) of the Code.
If you are a participant in a SIMPLE IRA plan, you should be aware that the 10%
penalty tax is increased to 25% with respect to non-exempt early distributions
made from your SIMPLE IRA during the first two years following the date you
first commenced participation in any SIMPLE IRA plan of your employer.
(b) MINIMUM DISTRIBUTION PENALTY TAX If the amount distributed is less than the
minimum required distribution for the year, the Participant is subject to a
50% penalty tax on the amount that was not properly distributed.
An individual's interest in a tax-qualified retirement plan generally must be
distributed, or begin to be distributed, not later than the Required Beginning
Date. Generally, the Required Beginning Date is April 1 of the calendar year
following the later of:
<PAGE>
34 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
- --------------------------------------------------------------------------------
- - the calendar year in which the individual attains age 70 1/2; or
- - the calendar year in which the individual retires from service with the
employer sponsoring the plan.
The Required Beginning Date for an individual who is a five (5) percent owner
(as defined in the Code), or who is the owner of an IRA, is April 1 of the
calendar year following the calendar year in which the individual attains age
70 1/2.
The entire interest of the Participant must be distributed beginning no later
than the Required Beginning Date over:
- - the life of the Participant or the lives of the Participant and the
Participant's designated beneficiary, or
- - over a period not extending beyond the life expectancy of the Participant or
the joint life expectancy of the Participant and the Participant's designated
beneficiary.
Each annual distribution must equal or exceed a "minimum distribution amount"
which is determined by dividing the account balance by the applicable life
expectancy. This account balance is generally based upon the account value as of
the close of business on the last day of the previous calendar year. In
addition, minimum distribution incidental benefit rules may require a larger
annual distribution.
If an individual dies before reaching his or her Required Beginning Date, the
individual's entire interest must generally be distributed within five years of
the individual's death. However, this rule will be deemed satisfied, if
distributions begin before the close of the calendar year following the
individual's death to a designated beneficiary and distribution is over the life
of such designated beneficiary (or over a period not extending beyond the life
expectancy of the beneficiary). If the beneficiary is the individual's surviving
spouse, distributions may be delayed until the individual would have attained
age 70 1/2.
If an individual dies after reaching his or her Required Beginning Date or after
distributions have commenced, the individual's interest must generally be
distributed at least as rapidly as under the method of distribution in effect at
the time of the individual's death.
(c) WITHHOLDING In general, regular wage withholding rules apply to
distributions from IRAs and plans described in section 457 of the Code.
Periodic distributions from other tax-qualified retirement plans that are
made for a specified period of 10 or more years or for the life or life
expectancy of the participant (or the joint lives or life expectancies of
the participant and beneficiary) are generally subject to federal income tax
withholding as if the recipient were married claiming three exemptions. The
recipient of periodic distributions may generally elect not to have
withholding apply or to have income taxes withheld at a different rate by
providing a completed election form.
Mandatory federal income tax withholding at a flat rate of 20% will generally
apply to other distributions from such other tax-qualified retirement plans
unless such distributions are:
- - the non-taxable portion of the distribution;
- - required minimum distributions; or
- - direct transfer distributions.
Direct transfer distributions are direct payments to an IRA or to another
eligible retirement plan under Code section 401(a)(31).
Certain states require withholding of state taxes when federal income tax is
withheld.
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 35
- --------------------------------------------------------------------------------
TABLE OF CONTENTS TO STATEMENT OF ADDITIONAL INFORMATION
<TABLE>
<CAPTION>
SECTION PAGE
<S> <C>
- ----------------------------------------------------------------------
DESCRIPTION OF HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
- ----------------------------------------------------------------------
SAFEKEEPING OF ASSETS
- ----------------------------------------------------------------------
INDEPENDENT PUBLIC ACCOUNTANTS
- ----------------------------------------------------------------------
DISTRIBUTION OF CONTRACTS
- ----------------------------------------------------------------------
CALCULATION OF YIELD AND RETURN
- ----------------------------------------------------------------------
PERFORMANCE COMPARISONS
- ----------------------------------------------------------------------
FINANCIAL STATEMENTS
- ----------------------------------------------------------------------
</TABLE>
<PAGE>
This form must be completed for all tax-sheltered annuities.
SECTION 403(b)(11) ACKNOWLEDGMENT FORM
The [Product Name] Variable Annuity Contract that you have recently purchased is
subject to certain restrictions imposed by the Tax Reform Act of 1986.
Contributions to the Contract after December 31, 1988 and any increases in cash
value after December 31, 1988 may not be distributed to you unless you have:
a. Attained age 59 1/2,
b. Separated from service,
c. Died, or
d. Become disabled.
Distributions of post December 31, 1988 contributions (excluding any income
thereon) may also be made if you have experienced a financial hardship.
Also, there may be a 10% penalty tax for distributions made prior to age 59 1/2
because of financial hardship or separation from service.
Also, please be aware that your 403(b) Plan may also offer other financial
alternatives other than the [Product Name] Variable Annuity. Please refer to
your Plan.
Please complete the following and return to:
Hartford Life and Annuity Insurance Company
Individual Annuity Services
P.O. Box 5085
Hartford, CT 06102-5085
Name of Contract Owner/Participant
---------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City or Plan/School District
- --------------------------------------------------------------------------------
Date:
- --------------------------------------------------------------------------------
Contract No:
- --------------------------------------------------------------------------------
Signature:
- --------------------------------------------------------------------------------
<PAGE>
To obtain a Statement of Additional Information, please complete the form below
and mail to:
Hartford Life and Annuity Insurance Company
Attn: Individual Annuity Services
P.O. Box 5085
Hartford, CT 06102-5085
Please send a Statement of Additional Information to me at the following
address:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------------------------------------------
Name
- ------------------------------------------------------------
Address
- ------------------------------------------------------------
City/State Zip
Code
</TABLE>
<PAGE>
PART B
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SEPARATE ACCOUNT SEVEN
[PRODUCT NAME]
This Statement of Additional Information is not a prospectus. The information
contained herein should be read in conjunction with the prospectus.
To obtain a prospectus, send a written request to Hartford Life Insurance
Company Attn: Individual Annuity Services, P.O. Box 5085, Hartford, CT
06102-5085.
Date of Prospectus: March 1, 2000.
Date of Statement of Additional Information: March 1, 2000.
333-XXXXX
<PAGE>
-2-
<TABLE>
<CAPTION>
TABLE OF CONTENTS
SECTION PAGE
- ------- ----
<S> <C>
DESCRIPTION OF HARTFORD LIFE AND ANNUITY INSURANCE COMPANY........................ 3
SAFEKEEPING OF ASSETS ............................................................ 3
INDEPENDENT PUBLIC ACCOUNTANTS ................................................... 3
DISTRIBUTION OF CONTRACTS......................................................... 4
CALCULATION OF YIELD AND RETURN................................................... 4
PERFORMANCE RELATED INFORMATION................................................... 6
PERFORMANCE COMPARISONS........................................................... 9
FINANCIAL STATEMENTS .............................................................
</TABLE>
<PAGE>
-3-
DESCRIPTION OF HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Hartford Life and Annuity Insurance Company is a stock life insurance company
engaged in the business of writing life insurance and annuities, both individual
and group, in all states of the United States, the District of Columbia and
Puerto Rico, except New York. On January 1, 1998, Hartford's name changed from
ITT Hartford Life and Annuity Insurance Company to Hartford Life and Annuity
Insurance Company. We were originally incorporated under the laws of Wisconsin
on January 9, 1956, and subsequently redomiciled to Connecticut. Our offices are
located in Simsbury, Connecticut; however, our mailing address is P.O. Box 2999,
Hartford, CT 06104-2999. We are ultimately controlled by The Hartford Financial
Services Group, Inc., one of the largest financial service providers in the
United States.
<TABLE>
<CAPTION>
HARTFORD'S RATINGS
- ------------------------------------------- ---------------------- -------------- ------------------------------------
Rating Agency Effective Rating Basis of Rating
Date of Rating
- ------------------------------------------- ---------------------- -------------- ------------------------------------
<S> <C> <C> <C>
A.M. Best and Company, Inc. 1/1/99 A+ Financial performance
- ------------------------------------------- ---------------------- -------------- ------------------------------------
Standard & Poor's 6/1/98 AA Insurer financial strength
- ------------------------------------------- ---------------------- -------------- ------------------------------------
Duff & Phelps 12/21/98 AA+ Claims paying ability
- ------------------------------------------- ---------------------- -------------- ------------------------------------
</TABLE>
SAFEKEEPING OF ASSETS
Title to the assets of the Separate Account is held by Hartford. The assets are
kept physically segregated and are held separate and apart from Hartford's
general corporate assets. Records are maintained of all purchases and
redemptions of Fund shares held in each of the Sub-Accounts.
INDEPENDENT PUBLIC ACCOUNTANTS
The audited financial statements included in this registration statement have
been audited by Arthur Andersen LLP, independent public accountants, as
indicated in their reports with respect thereto, and are included herein in
reliance upon the authority of said firm as experts in giving said reports.
Reference is made to the report on the statutory financial statements of
Hartford Life and Annuity 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.
<PAGE>
-4-
DISTRIBUTION OF CONTRACTS
HOW CONTRACTS ARE SOLD
Hartford Securities Distribution Company, Inc. ("HSD") serves as Principal
Underwriter for the securities issued with respect to the Separate Account. HSD
is an affiliate of Hartford. Both HSD and Hartford are ultimately controlled by
The Hartford Financial Services Group, Inc. The principal business address of
HSD is the same as that of Hartford.
The securities will be sold by salespersons of HSD who represent Hartford as
insurance and variable annuity agents and who are registered representatives of
Broker-Dealers who have entered into distribution agreements with HSD.
HSD is registered with the Commission under the Securities Exchange Act of 1934
as a Broker-Dealer and is a member of the National Association of Securities
Dealers, Inc.
Commissions will be paid by Hartford and will not be more than 6% of premium
payments. From time to time, Hartford may pay or permit other promotional
incentives, in cash or credit or other compensation.
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
sales charges described in the prospectus.
In addition, a broker-dealer or financial institution may also receive
additional compensation for, among other things, training, marketing or other
services provided. HSD, its affiliates or Hartford may also make compensation
arrangements with certain broker-dealers or financial institutions based on
total sales by the broker-dealer or financial institution of insurance products.
These payments, which may be different for different broker-dealers or financial
institutions, will be made by HSD, its affiliates or Hartford 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.
For the past three years, Hartford has paid no underwriting commissions to HSD
related to the sales of this Contract.
CALCULATION OF YIELD AND RETURN
YIELD OF THE MONEY MARKET HLS SUB-ACCOUNT. The yield of the Money Market Fund
Sub-Account for a seven day period (the "base period") will be computed by
<PAGE>
-5-
determining the "net change in value" (calculated as set forth below) of a
hypothetical account having a balance of one accumulation unit of the
Sub-Account at the beginning of the period, subtracting a hypothetical charge
reflecting deductions from Contract Owner accounts, and dividing the difference
by the value of the account at the beginning of the base period to obtain the
base period return, and then multiplying the base period return by 365/7 with
the resulting yield figure carried to the nearest hundredth of one percent. Net
changes in value of a hypothetical account will include net investment income of
the account (accrued daily dividends as declared by the underlying funds, less
daily expense charges of the account) for the period, but will not include
realized gains or losses or unrealized appreciation or depreciation on the
underlying fund shares.
The effective yield is calculated by compounding the base period return by
adding 1, raising the sum to a power equal to 365/7 and subtracting 1 from the
result, according to the following formula:
365/7
Effective Yield = [(Base Period Return + 1) ] - 1
THE HARTFORD MONEY MARKET FUND SUB-ACCOUNT'S YIELD AND EFFECTIVE YIELD WILL VARY
IN RESPONSE TO FLUCTUATIONS IN INTEREST RATES AND IN THE EXPENSES OF THE
SUB-ACCOUNT. THE CURRENT YIELD AND EFFECTIVE YIELD REFLECT RECURRING CHARGES ON
THE SEPARATE ACCOUNT LEVEL, INCLUDING THE MAXIMUM ANNUAL MAINTENANCE FEE.
The yield and effective yield for the seven day period ending March 31, 1999 for
the Money Market Fund Sub-Account was as follows ($30 Annual Maintenance Fee):
<TABLE>
<CAPTION>
- ---------------------------------------- ------------------------------------- -------------------------------------
SUB-ACCOUNTS YIELD EFFECTIVE YIELD
- ---------------------------------------- ------------------------------------- -------------------------------------
<S> <C> <C>
Hartford Money Market HLS* 3.10% 3.15%
- ---------------------------------------- ------------------------------------- -------------------------------------
</TABLE>
* Yield and effective yield for the seven day period ending March 31, 1999.
YIELDS OF AMERICAN FUNDS BOND AND MFS HIGH INCOME SUB-ACCOUNTS. Yields of the
above Sub-Accounts will be computed by annualizing a recent month's net
investment income, divided by a Fund share's net asset value on the last
trading day of that month. Net changes in the value of a hypothetical account
will assume the change in the underlying mutual fund's "net asset value per
share" for the same period in addition to the daily expense charge assessed,
at the sub-account level for the respective period. The Sub-Accounts' yields
will vary from time to time depending upon market conditions and, the
composition of the underlying funds' portfolios. Yield should also be
considered relative to changes in the value of the Sub-Accounts' shares and
to the relative risks associated with the investment objectives and policies
of the
<PAGE>
-6-
underlying Fund.
THE YIELD REFLECTS RECURRING CHARGES ON THE SEPARATE ACCOUNT LEVEL, INCLUDING
THE ANNUAL MAINTENANCE FEE.
Yield calculations of the Sub-Accounts used for illustration purposes reflect
the interest earned by the Sub-Accounts, less applicable asset charges assessed
against a Contract Owner's account over the base period. Yield quotations based
on a 30 day period were computed by dividing the dividends and interest earned
during the period by the maximum offering price per unit on the last day of the
period, according to the following formula:
Example:
6
Current Yield Formula for the Sub-Account 2[((A-B)/(CD) + 1) - 1]
Where A = Dividends and interest earned during the period.
B = Expenses accrued for the period (net of reimbursements).
C = The average daily number of units outstanding during the
period that were entitled to receive dividends.
D = The maximum offering price per unit on the last day of the
period.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------- --------------------------------------
SUB-ACCOUNTS YIELD
- ----------------------------------------------------------------------------- --------------------------------------
<S> <C>
American Funds Bond ** N/A
- ----------------------------------------------------------------------------- --------------------------------------
MFS High Income** N/A
- ----------------------------------------------------------------------------- --------------------------------------
</TABLE>
** Yield quotation based on a 30 day period ended March 31, 1999.
The yield for the Hartford High Yield Fund is not yet available because the Fund
is new. At any time in the future, yields and total return may be higher or
lower than past yields and there can be no assurance that any historical results
will continue.
The method of calculating yields described above for these Sub-Accounts differs
from the method used by the Sub-Accounts prior to May 1, 1988. The denominator
of the fraction used to calculate yield was previously the average unit value
for the period calculated. That denominator will hereafter be the unit value of
the Sub-Accounts on the last trading day of the period calculated.
CALCULATION OF TOTAL RETURN. Total return is a measure of the change in value
of an investment in a Sub-Account over the period covered and assumes that
the Optional Death Benefit has not been elected. The formula for total return
used herein includes three steps: (1) calculating the value of the
hypothetical initial investment of $1,000 as
<PAGE>
-7-
of the end of the period by multiplying the total number of units owned at the
end of the period by the unit value per unit on the last trading day of the
period; (2) assuming redemption at the end of the period and deducting any
applicable contingent deferred sales charge and (3) dividing this account
value for the hypothetical investor by the initial $1,000 investment and
annualizing the result for periods of less than one year. Total return will
be calculated for one year, five years and ten years or some other relevant
periods if a Sub-Account has not been in existence for at least ten years.
PERFORMANCE RELATED INFORMATION
The Separate Account may advertise certain performance-related information
concerning the Sub-Accounts. Performance information about a Sub-Account is
based on the Sub-Account's past performance only and is no indication of future
performance.
When a Sub-Account advertises its STANDARDIZED TOTAL RETURN, it will usually be
calculated since the inception of the Separate Account for one year, five years,
and ten years or some other relevant periods if the Sub-Account has not been in
existence for at least ten years. Total return is measured by comparing the
value of an investment in the Sub-Account at the beginning of the relevant
period to the value of the investment at the end of the period.
The Separate Account may also advertise NON-STANDARD TOTAL RETURNS THAT PRE-DATE
THE INCEPTION DATE OF THE SEPARATE ACCOUNT. These non-standardized total returns
are calculated by assuming that the Sub-Accounts have been in existence for the
same periods as the underlying Funds and by taking deductions for charges equal
to those currently assessed against the Sub-Accounts. These non-standardized
returns must be accompanied by standardized total returns.
If applicable, the Sub-Accounts may advertise YIELD IN ADDITION TO TOTAL RETURN.
The yield will be computed in the following manner: The net investment income
per unit earned during a recent one month period is divided by the unit value on
the last day of the period. This figure includes the recurring charges at the
Separate Account level including the Annual Maintenance Fee.
The Hartford Money Market HLS Sub-Account may advertise YIELD AND EFFECTIVE
YIELD. The yield of a Sub-Account is based upon the income earned by the
Sub-Account over a seven-day period and then annualized, i.e. the income earned
in the period is assumed to be earned every seven days over a 52-week period and
stated as a percentage of the investment. Effective yield is calculated
similarly but when annualized, the income earned by the investment is assumed to
be reinvested in Sub-Account units and thus compounded in the course of a
52-week period. Yield and effective yield include the recurring charges at the
Separate Account level including the Annual Maintenance Fee.
The Separate Account may also disclose YIELD for periods prior to the date the
Separate Account commenced operations. For these periods, performance
information for the Sub-Accounts will be calculated based on the performance of
the underlying Funds and the assumption that the Sub-Accounts were in existence
for the same periods as those of the underlying Funds, with a level of charges
equal to those currently assessed against the Sub-Accounts. No yield disclosure
for periods prior to the date of the Separate Account will be used without the
yield disclosure for periods as of the date of the inception of the Separate
Account.
We may provide information on various topics to Contract Owners and prospective
Contract 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 systematic investing, Dollar Cost Averaging
and asset allocation), the advantages and disadvantages of investing in
tax-deferred and taxable instruments, customer profiles and hypothetical
purchase scenarios, financial management and tax and retirement planning, and
other investment alternatives, including comparisons between the Contract and
the characteristics of and market for such alternatives.
The following are the standardized average annual total return quotations for
the Sub-Accounts for the period ended March 31, 1999.
STANDARDIZED AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD
ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
SUB-ACCOUNT INCEPTION DATE 1 YEAR 5 YEAR 10 YEAR SINCE INCEPTION
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
American Funds Asset 8/1/89 -5.83% 12.02% NA 8.08%
Allocation
- --------------------------------------------------------------------------------------------------------------------------------
American Funds Bond 1/2/96 -9.59% NA NA -.41%
- --------------------------------------------------------------------------------------------------------------------------------
American Funds Global 4/30/97 9.82% NA NA 16.91%
Growth
- --------------------------------------------------------------------------------------------------------------------------------
American Funds Global 4/30/98 NA NA NA 1.45%
Small Capitalization
- --------------------------------------------------------------------------------------------------------------------------------
American Funds Growth 12/8/86 17.04% 19.63% 15.14% NA
- --------------------------------------------------------------------------------------------------------------------------------
American Funds 12/8/86 -4.66% 15.77% 11.46% NA
Growth-Income
- --------------------------------------------------------------------------------------------------------------------------------
American Funds 5/1/90 .04% 8.89% NA 7.49%
International
- --------------------------------------------------------------------------------------------------------------------------------
American Funds New NEW NA NA NA NA
World
- --------------------------------------------------------------------------------------------------------------------------------
Franklin Real Estate 1/24/89 -30.68% 3.75% 5.67% NA
Securities
- --------------------------------------------------------------------------------------------------------------------------------
Franklin Small Cap 11/1/95 -21.34% NA NA 7.76%
- --------------------------------------------------------------------------------------------------------------------------------
Hartford Money Market 12/8/86 -6.36% -.03% 1.15% NA
- --------------------------------------------------------------------------------------------------------------------------------
MFS Capital 8/14/96 1.56% NA NA 19.28%
Opportunities
- --------------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth 7/24/95 3.62% NA NA 20.71%
- --------------------------------------------------------------------------------------------------------------------------------
MFS Global Equity NEW NA NA NA NA
- --------------------------------------------------------------------------------------------------------------------------------
MFS Growth NEW NA NA NA NA
- --------------------------------------------------------------------------------------------------------------------------------
MFS Growth with Income 10/9/95 -2.55% NA NA 18.83%
- --------------------------------------------------------------------------------------------------------------------------------
MFS High Income 7/24/95 -10.65% NA NA 3.91%
- --------------------------------------------------------------------------------------------------------------------------------
MFS New Discovery 5/1/98 NA NA NA -10.41%
- --------------------------------------------------------------------------------------------------------------------------------
MFS Total Return 1/3/95 -6.44% NA NA 12.54%
- --------------------------------------------------------------------------------------------------------------------------------
Mutual Shares 11/1/96 -15.57% NA NA 2.56%
Securities
- --------------------------------------------------------------------------------------------------------------------------------
Templeton Asset 8/24/88 -13.66% 8.26% 8.26% NA
Allocation
- --------------------------------------------------------------------------------------------------------------------------------
Templeton Developing 3/15/94 -28.83% -6.89% NA -6.58%
Markets Equity
- --------------------------------------------------------------------------------------------------------------------------------
Templeton Global Growth 3/15/94 -14.24% 7.08 NA 6.71%
- --------------------------------------------------------------------------------------------------------------------------------
<PAGE>
-8-
- --------------------------------------------------------------------------------------------------------------------------------
Templeton International 5/1/92 -15.81% 8.02% NA 9.60%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
In addition to the standardized total return, the Sub-Account may advertise a
non-standardized total return. This figure will usually be calculated for one
year, five years, and ten years or other periods. Non-standardized total return
is measured in the same manner as the standardized total return described above,
except that the contingent deferred sales charge and the Annual Maintenance Fee
are not deducted and the time periods used to calculate return are based on the
inception date of the underlying Funds. Therefore, non-standardized total return
for a Sub-Account is higher than standardized total return for a Sub-Account.
The following are the non-standardized annualized total return quotations for
the Sub-Accounts for the Period ended March 31, 1999.
NON-STANDARDIZED ANNUALIZED TOTAL RETURN THAT PRE-DATE THE INCEPTION
OF THE SEPARATE ACCOUNT FOR THE PERIOD
ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
SUB-ACCOUNT S/A INCEPTION DATE 1 YEAR 5 YEAR 10 YEAR SINCE INCEPTION
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
American Funds Asset 8/1/89 4.17% 14.92% NA 10.41%
Allocation
- --------------------------------------------------------------------------------------------------------------------------------
American Funds Bond 1/2/96 .41% NA NA 4.50%
- --------------------------------------------------------------------------------------------------------------------------------
American Funds Global 4/30/97 19.82% NA NA 22.44%
Growth
- --------------------------------------------------------------------------------------------------------------------------------
American Funds Global 4/30/98 NA NA NA 11.45%
Small Capitalization
- --------------------------------------------------------------------------------------------------------------------------------
American Funds Growth 2/8/84 27.04% 22.39% 17.11% 16.07%
- --------------------------------------------------------------------------------------------------------------------------------
American Funds 2/8/84 5.34% 18.49% 13.61% 14.10%
Growth-Income
- --------------------------------------------------------------------------------------------------------------------------------
American Funds 5/1/90 10.04% 12.13% NA 10.08%
International
- --------------------------------------------------------------------------------------------------------------------------------
American Funds New NEW NA NA NA NA
World
- --------------------------------------------------------------------------------------------------------------------------------
Franklin Real Estate 1/24/89 -22.24% 6.98% 8.02% 7.99%
Securities
- --------------------------------------------------------------------------------------------------------------------------------
Franklin Small Cap 11/1/95 -12.20% NA NA 11.95%
- --------------------------------------------------------------------------------------------------------------------------------
Hartford Money Market 6/30/80 3.64% 3.72% 3.95% 5.98%
- --------------------------------------------------------------------------------------------------------------------------------
MFS Capital 8/14/96 11.56% NA NA 23.86%
Opportunities
- --------------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth 7/24/95 13.62% NA NA 24.01%
- --------------------------------------------------------------------------------------------------------------------------------
MFS Global Equity NEW NA NA NA NA
- --------------------------------------------------------------------------------------------------------------------------------
MFS Growth NEW NA NA NA NA
- --------------------------------------------------------------------------------------------------------------------------------
MFS Growth with Income 10/9/95 7.45% NA NA 22.49%
- --------------------------------------------------------------------------------------------------------------------------------
MFS High Income 7/24/95 -.65% NA NA 8.05%
- --------------------------------------------------------------------------------------------------------------------------------
MFS New Discovery 5/1/98 NA NA NA -.41%
- --------------------------------------------------------------------------------------------------------------------------------
MFS Total Return 1/3/95 3.56% NA NA 15.87%
- --------------------------------------------------------------------------------------------------------------------------------
<PAGE>
-9-
- --------------------------------------------------------------------------------------------------------------------------------
Mutual Shares 11/1/96 -5.99% NA NA 8.48%
Securities
- --------------------------------------------------------------------------------------------------------------------------------
Templeton Asset 8/24/88 -3.94% 11.36% 10.54% 10.37%
Allocation
- --------------------------------------------------------------------------------------------------------------------------------
Templeton Developing 3/15/94 -20.25% -2.79% NA -2.77%
Markets Equity
- --------------------------------------------------------------------------------------------------------------------------------
Templeton Global Growth 3/15/94 -4.56% NA NA 10.22%
- --------------------------------------------------------------------------------------------------------------------------------
Templeton International 5/1/92 -6.25% 11.18% NA 12.10%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE COMPARISONS
YIELD AND TOTAL RETURN. Each Sub-Account may from time to time include its total
return in advertisements or in information furnished to present or prospective
shareholders. Each Sub-Account may from time to time include its yield and total
return in advertisements or information furnished to present or prospective
shareholders. Each Sub-Account may from time to time include in advertisements
its total return (and yield in the case of certain Sub-Accounts) the ranking of
those performance figures relative to such figures for groups of other annuities
analyzed by Lipper Analytical Services and Morningstar, Inc. as having the same
investment objectives.
The total return and yield may also be used to compare the performance of the
Sub-Accounts against certain widely acknowledged outside standards or indices
for stock and bond market performance. The Standard & Poor's Composite Index of
500 Stocks (the "S&P 500") is a market value-weighted and unmanaged index
showing the changes in the aggregate market value of 500 stocks relative to the
base period 1941-43. The S&P 500 is composed almost entirely of common stocks of
companies listed on the New York Stock Exchange, although the common stocks of a
few companies listed on the American Stock Exchange or traded over-the-counter
are included. The 500 companies represented include 400 industrial, 60
transportation and 40 financial services concerns. The S&P 500 represents about
80% of the market value of all issues traded on the New York Stock Exchange.
The NASDAQ-OTC Composite Price Index (The "NASDAQ Index") is a market
value-weighted and unmanaged index showing the changes in the aggregate market
value of approximately 3,500 stocks relative to the base measure of 100.00 on
February 5, 1971. The NASDAQ Index is composed entirely of common stocks of
companies traded over-the-counter and often through the National Association of
Securities Dealers Automated Quotations ("NASDAQ") system. Only those
over-the-counter stocks having only one market maker or traded on exchanges are
excluded.
The Morgan Stanley Capital International EAFE Index (the "EAFE Index") is an
<PAGE>
-10-
unmanaged index, which includes over 1,000 companies representing the stock
markets of Europe, Australia, New Zealand, and the Far East. The EAFE Index is
weighted by market capitalization, and therefore, it has a heavy representation
in countries with large stock markets, such as Japan.
The Shearson Lehman Government Bond Index (the "SL Government Index") is a
measure of the market value of all public obligations of the U.S. Treasury; all
publicly issued debt of all agencies of the U.S. Government and all
quasi-federal corporations; and all corporate debt guaranteed by the U.S.
Government. Mortgage-backed securities, flower bonds and foreign targeted issues
are not included in the SL Government Index.
The Shearson Lehman Government/Corporate Bond Index (the "SL
Government/Corporate Index") is a measure of the market value of approximately
5,300 bonds with a face value currently in excess of $1.3 trillion. To be
included in the SL Government/Corporate Index, an issue must have amounts
outstanding in excess of $1 million, have at least one year to maturity and be
rated "Baa" or higher ("investment grade") by a nationally recognized rating
agency.
<PAGE>
PART C
<PAGE>
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) All financial statements are included in Part A and Part B of the
Registration Statement.
(b) (1) Resolution of the Board of Directors of Hartford Life and Annuity
Insurance Company ("Hartford") authorizing the establishment of the
Separate Account to be filed by Amendment.(1)
(2) Not applicable.
(3) (a) Principal Underwriter Agreement.(2)
(3) (b) Form of Dealer Agreement.(2)
(4) Form of Individual Flexible Premium Variable Annuity Contract.
(5) Form of Application, to be filed by amendment.
(6) (a) Articles of Incorporation of Hartford.(3)
(6) (b) Bylaws of Hartford.(1)
(7) Not applicable.
(8) Not applicable.
(9) Opinion and Consent of Lynda Godkin, Senior Vice President,
General Counsel, and Corporate Secretary to be filed by
Amendment.
(10) Consent of Arthur Andersen LLP, Independent Public Accountants to
be filed by Amendment.
- ---------------------------------
(1) Incorporated by reference to Post-Effective Amendment No. 2, to
the Registration Statement File No. 33-73570, dated May 1, 1995.
(2) Incorporated by reference to Post Effective Amendment No. 3, to
the Registration Statement File No. 33-73570, dated April 29,
1996.
(3) Incorporated by reference to Post Effective Amendment No. 19, to
the Registration Statement File No. 33-73570, filed on April 14,
1997.
<PAGE>
(11) No financial statements are omitted.
(12) Not applicable.
(13) Not applicable.
(14) Not applicable.
(15) Copy of Power of Attorney.
(16) Organizational Chart.
Item 25. Directors and Officers of the Depositor
<TABLE>
<CAPTION>
- -------------------------------------------- -------------------------------------------------------------------------
NAME POSITION WITH HARTFORD
- -------------------------------------------- -------------------------------------------------------------------------
<S> <C>
Wendell J. Bossen Vice President
- -------------------------------------------- -------------------------------------------------------------------------
Gregory A. Boyko Senior Vice President, Director*
- -------------------------------------------- -------------------------------------------------------------------------
Peter W. Cummins Senior Vice President
- -------------------------------------------- -------------------------------------------------------------------------
Timothy M. Fitch Vice President & Actuary
- -------------------------------------------- -------------------------------------------------------------------------
Mary Jane B. Fortin Vice President & Chief Accounting Officer
- -------------------------------------------- -------------------------------------------------------------------------
David T. Foy Senior Vice President & Treasurer
- -------------------------------------------- -------------------------------------------------------------------------
Lynda Godkin Senior Vice President, General Counsel and Corporate Secretary,
Director*
- -------------------------------------------- -------------------------------------------------------------------------
Lois W. Grady Senior Vice President
- -------------------------------------------- -------------------------------------------------------------------------
Stephen T. Joyce Vice President
- -------------------------------------------- -------------------------------------------------------------------------
Michael D. Keeler Vice President
- -------------------------------------------- -------------------------------------------------------------------------
Robert A. Kerzner Senior Vice President
- -------------------------------------------- -------------------------------------------------------------------------
Thomas M. Marra Executive Vice President, Director*
- -------------------------------------------- -------------------------------------------------------------------------
Steven L. Matthiesen Vice President
- -------------------------------------------- -------------------------------------------------------------------------
Craig R. Raymond Senior Vice President and Chief Actuary
- -------------------------------------------- -------------------------------------------------------------------------
Lowndes A. Smith President and Chief Executive Officer, Director*
- -------------------------------------------- -------------------------------------------------------------------------
David M. Znamierowski Senior Vice President, Director*
- -------------------------------------------- -------------------------------------------------------------------------
</TABLE>
Unless otherwise indicated, the principal business address of each of the
above individuals is P.O. Box 2999, Hartford, CT 06104-2999.
*Denotes Board of Directors.
<PAGE>
Item 26. Persons Controlled By or Under Common Control with the Depositor or
Registrant
Filed herewith as Exhibit 16.
Item 27. Number of Contract Owners
As of November 30, 1999, there were no Contract Owners.
Item 28. Indemnification
Under Section 33-772 of the Connecticut General Statutes,
unless limited by its certificate of incorporation, the
Registrant must indemnify a director who was wholly successful,
on the merits or otherwise, in the defense of any proceeding to
which he was a party because he is or was a director of the
corporation against reasonable expenses incurred by him in
connection with the proceeding.
The Registrant may indemnify an individual made a party to a
proceeding because he is or was a director against liability
incurred in the proceeding if he acted in good faith and in a
manner he reasonably believed to be in or not opposed to the
best interests of the Registrant, and, with respect to any
criminal proceeding, had no reason to believe his conduct was
unlawful. Conn. Gen. Stat. Section 33-771(a). Additionally,
pursuant to Conn. Gen. Stat. Section 33-776, the Registrant may
indemnify officers and employees or agents for liability
incurred and for any expenses to which they becomes subject by
reason of being or having been an employees or officers of the
Registrant. Connecticut law does not prescribe standards for
the indemnification of officers, employees and agents and
expressly states that their indemnification may be broader than
the right of indemnification granted to directors.
The foregoing statements are specifically made subject to the
detailed provisions of Section 33-770 et seq.
Notwithstanding the fact that Connecticut law obligates the
Registrant to indemnify a only a director that was successful
on the merits in a suit, under Article VIII, Section 1 of the
Registrant's bylaws, the Registrant must indemnify both
directors and officers of the Registrant for (1) any claims and
liabilities to which they become subject by reason of being or
having been a directors or officers of the company and legal
and (2) other expenses incurred in defending against such
claims, in each case, to the extent such is consistent with
statutory provisions.
Additionally, the directors and officers of Hartford 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. Such policy will reimburse the Registrant
for any
<PAGE>
payments that it shall make to directors and officers pursuant to law
and will, subject to certain exclusions contained in the
policy, further pay any other costs, charges and expenses and
settlements and judgments arising from any proceeding involving
any director or officer of the Registrant in his past or
present capacity as such, and for which he may be liable,
except as to any liabilities arising from acts that are deemed
to be uninsurable.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the Registrant pursuant to the
foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the
Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or
controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final
adjudication of such issue.
Item 29. Principal Underwriters
(a) HSD acts as principal underwriter for the following investment
companies:
Hartford Life Insurance Company - Separate Account One
Hartford Life Insurance Company - Separate Account Two
Hartford Life Insurance Company - Separate Account Two (DC Variable
Account I)
Hartford Life Insurance Company - Separate Account Two (DC Variable
Account II)
Hartford Life Insurance Company - Separate Account Two (QP Variable
Account)
Hartford Life Insurance Company - Separate Account Two (Variable
Account "A")
Hartford Life Insurance Company - Separate Account Two (NQ Variable
Account)
Hartford Life Insurance Company - Putnam Capital Manager Trust
Separate Account
Hartford Life Insurance Company - Separate Account Three
Hartford Life Insurance Company - Separate Account Five
Hartford Life Insurance Company - Separate Account Seven
Hartford Life and Annuity Insurance Company - Separate Account One
Hartford Life and Annuity Insurance Company - Putnam Capital Manager
<PAGE>
Trust Separate Account Two
Hartford Life and Annuity Insurance Company - Separate Account Three
Hartford Life and Annuity Insurance Company - Separate Account Five
Hartford Life and Annuity Insurance Company - Separate Account Six
Hartford Life and Annuity Insurance Company - Separate Account Seven
Alpine Life Insurance Company - Separate Account One
Alpine Life Insurance Company - Separate Account Two
American Maturity Life Insurance Company - Separate Account AMLVA
Royal Life Insurance Company - Separate Account One
Royal Life Insurance Company - Separate Account Two
<TABLE>
<CAPTION>
(b) Directors and Officers of HSD
Name and Principal Positions and Offices
Business Address With Underwriter
------------------ ---------------------
<S> <C>
Lowndes A. Smith President and Chief Executive Officer, Director
Thomas M. Marra Executive Vice President, Director
Peter W. Cummins Senior Vice President
Lynda Godkin Senior Vice President, General Counsel and
Corporate Secretary
David T. Foy Treasurer
George R. Jay Controller
</TABLE>
Unless otherwise indicated, the principal business address of
each of the above individuals is P.O. Box 2999, Hartford, CT
06104-2999.
Item 30. Location of Accounts and Records
All of the accounts, books, records or other documents required to be
kept by Section 31(a) of the Investment Company Act of 1940 and rules
thereunder, are maintained by Hartford at 200 Hopmeadow Street,
Simsbury, Connecticut 06089.
Item 31. Management Services
All management contracts are discussed in Part A and Part B of this
Registration Statement.
Item 32. Undertakings
(a) The Registrant hereby undertakes to file a post-effective amendment
to this Registration Statement as frequently as is necessary to
ensure that the audited financial statements in the Registration
Statement are never more than 16 months old so long as payments
under the variable annuity Contracts may be accepted.
<PAGE>
(b) The Registrant hereby undertakes to include either (1) as part of
any application to purchase a Contract offered by the Prospectus,
a space that an applicant can check to request a Statement of
Additional Information, or (2) a post card or similar written
communication affixed to or included in the Prospectus that the
applicant can remove to send for a Statement of Additional
Information.
(c) The Registrant hereby undertakes to deliver any Statement of
Additional Information and any financial statements required to be
made available under this Form promptly upon written or oral
request.
(d) Hartford hereby represents that the aggregate fees and charges
under the Contract are reasonable in relation to the services
rendered, the expenses expected to be incurred, and the risks
assumed by Hartford.
The Registrant is relying on the no-action letter issued by the
Division of Investment Management to American Counsel of Life
Insurance, Ref. No. IP-6-88, November 28, 1988. The Registrant has
complied with conditions one through four of the no-action letter.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant has caused this Registration Statement to be signed on its
behalf, in the Town of Simsbury, and State of Connecticut on this 1st day of
December, 1999.
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY -
SEPARATE ACCOUNT SEVEN
(Registrant)
By: THOMAS M. MARRA *By: /s/ MARIANNE O'DOHERTY
--------------------------------------- -----------------------
Thomas M. Marra, Executive Vice President* Marianne O'Doherty
Attorney-in-Fact
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
(Depositor)
*By: THOMAS M. MARRA
----------------------------------------
Thomas M. Marra, Executive Vice President*
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.
Gregory A. Boyko, Senior Vice President,
Director *
Lynda Godkin, Senior Vice President,
General Counsel & Corporate Secretary, Director*
Thomas M. Marra, Executive Vice *By: /s/ MARIANNE O'DOHERTY
President, Director * -----------------------
Marianne O'Doherty
Lowndes A. Smith, President & Attorney-In-Fact
Chief Executive Officer, Director *
David M. Znamierowski, Senior Vice President, Dated: December 1, 1999
Director*
<PAGE>
EXHIBIT INDEX
(4) Form of Individual Flexible Variable Annuity Contract
(9) Opinion and Consent of Lynda Godkin, Senior Vice President, General
Counsel and Corporate Secretary.
(15) Power of Attorney.
(16) Organizational Chart.
<PAGE>
INDIVIDUAL FLEXIBLE PREMIUM
VARIABLE ANNUITY CONTRACT
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Hartford, Connecticut 06104-2999
(a stock life insurance company, herein called the "Company")
We will pay the first of a series of Annuity payments to the Payee as of the
Annuity Commencement Date, if You and the Annuitant, or the Joint Annuitant, if
any, are living. The manner in which the dollar amount of Annuity payments is
determined is described in this contract.
This contract is issued in consideration of the payment of the initial Premium
Payment.
This contract is subject to the laws of the jurisdiction where it is delivered.
The Contract Specifications on Page 3 and the conditions and provisions on this
and the following pages are part of the contract.
RIGHT TO EXAMINE CONTRACT
We want You to be satisfied with the contract You have purchased. We urge You to
closely examine its provisions. If for any reason You are not satisfied with
Your purchase, You may cancel the contract by returning the contract within ten
days after You receive it. A written request for cancellation must accompany the
contract. In such event, We will pay You an amount equal to the sum of (i) the
difference between the premiums paid and the amounts allocated to any Account
under the contract and (ii) the Contract Value, less Payment Enhancements, on
the date of surrender. You bear only the investment risk during the period prior
to Our receipt of request for cancellation.
Signed for the Company
/s/ LYNDA GODKIN /s/ L A SMITH
Lynda Godkin, SECRETARY Lowndes A. Smith, PRESIDENT
PREMIUM PAYMENTS ARE FLEXIBLE AS DESCRIBED HEREIN.
NONPARTICIPATING
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SUB-ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO FIXED
DOLLAR AMOUNT. DETAILS OF THE VARIABLE PROVISIONS ARE DESCRIBED UNDER VALUATION
PROVISIONS, PAGES 11 AND 12.
[LOGO]
LA-VAXC99 PRINTED IN U.S.A.
R668R0.FRM
<PAGE>
TABLE OF CONTENTS
PAGE
Contract Specifications
Definition of Certain Terms
Premium Payment Provisions
Transfers Between Accounts Provisions
Dollar Cost Averaging Provisions
Contract Control Provisions
General Provisions
Valuation Provisions
Surrender Provisions
Distribution at Time of Death Provisions
Calculation of the Death Benefit Provisions
Settlement Provisions
Annuity Tables
LA-VAXC99 PRINTED IN U.S.A.
R669R0.FRM
<PAGE>
CONTRACT SPECIFICATIONS
<TABLE>
<S> <C> <C> <C>
CONTRACT NUMBER [SPECIMEN] CONTRACT ISSUE DATE [FEBRUARY 8, 1999]
NAME OF ANNUITANT [JAMES SCOTT] ANNUITY COMMENCEMENT DATE [JANUARY 1, 2029]
AGE OF ANNUITANT [35] INITIAL PREMIUM PAYMENT [$10,000]
SEX OF ANNUITANT [MALE] MINIMUM SUBSEQUENT PAYMENT [$500]
CONTINGENT ANNUITANT [PAUL SCOTT] MINIMUM FIXED ACCOUNT INTEREST RATE [3%]
DESIGNATED BENEFICIARY [ANN SCOTT] (APPLIES TO ACCUMULATION PERIOD ONLY)
CONTRACT OWNER [JAMES SCOTT]
DESCRIPTION OF BENEFITS
INDIVIDUAL FLEXIBLE PREMIUM VARIABLE ANNUITY CONTRACT
SEPARATE ACCOUNT: [HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SEPARATE ACCOUNT ONE]
PAYMENT ENHANCEMENT: PAYMENT ENHANCEMENTS ARE A PERCENTAGE
OF PREMIUM PAID AND EQUAL:
ENHANCEMENT PREMIUM RANGE
----------- -------------
[3.00% UP TO $49,999.99
4.00% $50,000 AND OVER]
</TABLE>
THE APPLICABLE PAYMENT ENHANCEMENT WILL BE SEPARATELY CALCULATED AND CREDITED
FOR EACH PREMIUM PAYMENT AS RECEIVED BASED ON THE CUMULATIVE TOTAL AMOUNT OF
PREMIUM PAYMENTS. IF AFTER THE FIRST PREMIUM PAYMENT IS MADE, ADDITIONAL PREMIUM
PAYMENT(S) IS (ARE) RECEIVED WHICH RESULT IN THE CUMULATIVE PREMIUM PAYMENTS TO
REACH A HIGHER PREMIUM RANGE, ALL PRIOR PREMIUM PAYMENTS WILL BE CREDITED WITH
AN ADDITIONAL PAYMENT ENHANCEMENT AT A RATE EQUAL TO THE DIFFERENCE BETWEEN THE
RATE PREVIOUSLY CREDITED AND THE RATE APPLICABLE TO THE NEWLY REACHED PREMIUM
RANGE.
UNDER CERTAIN DISBURSEMENTS, PAYMENT ENHANCEMENTS MAY BE FORFEITED AS DESCRIBED
HEREIN.
VAXC99-3 PRINTED IN U.S.A.
<PAGE>
CONTRACT SPECIFICATIONS
<TABLE>
<S> <C>
ANNUAL WITHDRAWAL AMOUNT: DURING THE INITIAL CONTINGENT DEFERRED
SALES CHARGE PERIOD
10% OF PREMIUM PAYMENTS PER CONTRACT
YEAR ON A NONCUMULATIVE BASIS.
AFTER THE INITIAL CONTINGENT DEFERRED
SALES CHARGE PERIOD
100% OF CONTRACT VALUE REDUCED BY THE
TOTAL OF THOSE PREMIUM PAYMENTS STILL
SUBJECT TO A CONTINGENT DEFERRED SALES
CHARGE AND ASSOCIATED PAYMENT
ENHANCEMENTS; AND
10% OF THOSE PREMIUM PAYMENTS STILL
SUBJECT TO A CONTINGENT DEFERRED SALES
CHARGE PER CONTRACT YEAR ON A
NONCUMULATIVE BASIS.
ANNUAL MAINTENANCE FEE: $0 IF CONTRACT VALUE IS [$50,000] OR MORE ON
EACH CONTRACT ANNIVERSARY.
$30 IF CONTRACT VALUE IS LESS THAN [$50,000]
ON EACH CONTRACT ANNIVERSARY.
MORTALITY AND EXPENSE RISK CHARGE: [1.70%] PER ANNUM OF THE DAILY SUB-
ACCOUNTS VALUE.
ADMINISTRATION CHARGE: [0.25%] PER ANNUM OF THE DAILY SUB-
ACCOUNTS VALUE.
</TABLE>
VAXC99-3 PRINTED IN U.S.A.
<PAGE>
CONTRACT SPECIFICATIONS
CONTINGENT DEFERRED SALES CHARGES:
Subject to the Annual Withdrawal Amount, surrenders of Contract Values
attributable to Premium Payments may be made subject to a Contingent Deferred
Sales Charge ("charge"). The length of time from receipt of the Premium Payment
to the time of surrender determines the charge.
The charge is a percentage of the amount surrendered (not to exceed the
aggregate amount of the Premium Payments made) and equals:
<TABLE>
<CAPTION>
LENGTH OF TIME FROM EACH PREMIUM PAYMENT
CHARGE (NUMBER OF YEARS)
<S> <C>
[9% 1
9% 2
9% 3
9% 4
8% 5
7% 6
7% 7
6% 8
5% 9
0% 10 and later]
</TABLE>
During the Initial Contingent Deferred Sales Charge Period, for the purpose of
determining the charge, all surrenders in excess of the Annual Withdrawal Amount
will be taken:
- - first from Premium Payments;
- - then from earnings; and
- - then from Payment Enhancements.
If an amount equal to all Premium Payments has been assessed a Contingent
Deferred Sales Charge, a charge will not be assessed against the surrender of
the remaining Contract Value.
After the Initial Contingent Deferred Sales Charge Period, for the purpose of
determining the charge, all surrenders in excess of the Annual Withdrawal Amount
will be taken:
- - first from earnings;
- - then from Premium Payments no longer subject to a Contingent Deferred Sales
Charge;
- - then from Payment Enhancements associated with Premium Payments no longer
subject to a Contingent Deferred Sales Charge;
- - then from Premium Payments still subject to a Contingent Deferred Sales
Charge;
- - then from Payment Enhancements associated with Premium Payments still
subject to a Contingent Deferred Sales Charge.
A charge will not be assessed against the surrender of earnings or Payment
Enhancements. If an amount equal to all earnings has been surrendered, a charge
will not be assessed against Premium Payments no longer subject to a Contingent
Deferred Sales Charge, but will be assessed against Premium Payments still
subject to a Contingent Deferred Sales Charge. For this purpose, Premium
Payments will be deemed to be surrendered in the order in which they were
received.
No Contingent Deferred Sales Charge will be assessed if:
- - the contract terminates due to the death of the Annuitant or Contract Owner
(as applicable);
- - eligibility requirements are met for the waiver of surrender charge;
- - only the Annual Withdrawal Amount is taken; or
- - an Annuity option is elected. (Any surrender out of any variable Annuity
option with a period certain segment may be subject to Contingent Deferred
Sales Charges.)
VAXC99-3A PRINTED IN U.S.A.
T813R0-FRM
<PAGE>
<TABLE>
<S> <C>
DEFINITION OF ACCOUNT(S) - Any of the Sub-Accounts or the
CERTAIN TERMS Fixed Account(s).
ACCUMULATION UNIT - An accounting unit of
measure used to calculate the value of a
Sub-Account of this contract before Annuity
payments begin.
ADMINISTRATIVE OFFICE OF THE COMPANY -
Currently located at 200 Hopmeadow St.,
Simsbury, CT 06089. All correspondence
concerning this contract should be sent to
Our mailing address: Hartford Life
Investment Product Services, P.O. Box 5085,
Hartford, CT 06102-5085.
ANNIVERSARY VALUE - The value equal to the
Contract Value as of a Contract Anniversary,
increased by the dollar amount of any
Premium Payments made plus Payment
Enhancements credited since that anniversary
and reduced by the dollar amount of any
partial surrenders since that anniversary.
If the Contract Anniversary falls on a
non-Valuation Day (weekend or holiday), then
the next Valuation Day will be the Contract
Anniversary for that Contract Year.
ANNUAL MAINTENANCE FEE - An amount which,
depending on the amount of the Contract
Value, may be deducted from the value of the
contract on each Contract Anniversary or
upon full surrender of this contract. The
Annual Maintenance Fee is shown on Page 3.
We reserve the right to combine the Contract
Values of all Your Annuity contracts issued
by Us to determine whether this Annual
Maintenance Fee is applicable to You.
ANNUAL WITHDRAWAL AMOUNT - The amount that
can be withdrawn in any Contract Year prior
to incurring surrender charges.
ANNUITANT - The person on whose life this
contract is issued. The Annuitant may not be
changed. Also, see Contingent Annuitant and
Joint Annuitant.
ANNUITY - A contract issued by an insurance
company that provides, in consideration of
Premium Payments, a series of income
payments. Your contract is a deferred
Annuity contract in which Premium Payments
plus Payment Enhancements, less any partial
surrenders, accumulate until a full
surrender of the contract or until the
Annuity Commencement Date. Annuity payments
under Your contract will begin as of the
Annuity Commencement Date in accordance with
the payment option elected.
ANNUITY CALCULATION DATE - The date on which
the first Annuity payment will be
calculated. It will be no more than five
Valuation Days prior to the Annuity
Commencement Date.
ANNUITY COMMENCEMENT DATE - The date as of
which Annuity payments are to begin as
described under Settlement Provisions in
this contract.
ANNUITY PAYMENT FREQUENCY - The frequency
with which Annuity payments will be made.
The frequencies available are monthly,
quarterly, semi-annual, and annual.
ANNUITY UNIT - An accounting unit of measure
used to calculate the value of Annuity
payments under a variable Annuity option.
</TABLE>
VAXC99-4/5 PRINTED IN U.S.A.
T814R0.FRM
<PAGE>
<TABLE>
<S> <C>
DEFINITION OF ANNUITY UNIT FACTOR - A factor that neutralizes
CERTAIN TERMS the Assumed Investment Return ("AIR") when determining
(CONTINUED) the Annuity Unit Value. When the AIR is 3%, the daily
factor is 0.999919. When the AIR is 5%, the daily
factor is 0.999866. And when the AIR is 6%, the daily
factor is 0.999840.
ASSUMED INVESTMENT RETURN ("AIR") - The
investment return upon which the variable
Annuity payments in this contract will be
based. The annual rates available are 3%,
5%, and 6%. You may select one of these
rates prior to the Annuity Commencement
Date.
BENEFICIARY - The person(s) entitled to
receive benefits as per the terms of the
contract in the event of the death of the
Contract Owner or Annuitant, as applicable.
COMMUTED VALUE - The present value of the
remaining guaranteed Annuity Payments for
any option with a Period Certain segment. To
calculate the present value for fixed
Annuity payments, We will use the same
interest rate that was used to determine the
amount of the Annuity payments. To calculate
the present value of variable Annuity
payments, We will use the AIR elected by the
Contract Owner when this Annuity option was
selected and the Annuity Unit value as of
the date that We receive a fully completed
request for surrender and, in the event of
the Annuitant's death, Due Proof of Death of
the Annuitant.
CONTINGENT ANNUITANT - The person You
designate who, upon the Annuitant's death,
prior to the Annuity Commencement Date,
becomes the Annuitant.
CONTINGENT DEFERRED SALES CHARGE - A charge
that may be deducted from Your Contract
Value upon a full surrender or a partial
surrender, if the amount surrendered is in
excess of the Annual Withdrawal Amount.
CONTINGENT DEFERRED SALES CHARGE PERIOD -
The period during which each Premium Payment
is subject to a charge upon a full or
partial surrender.
CONTRACT ANNIVERSARY - An anniversary of the
Contract Issue Date.
CONTRACT ISSUE DATE - The date as of which
an Account is established for You by Us. The
Contract Issue Date is shown on Page 3.
CONTRACT OWNER(S) - The owner(s) or holder(s)
of the contract.
CONTRACT VALUE - The aggregate value of the
Sub-Accounts and the Fixed Account(s) on any
Valuation Day.
CONTRACT YEAR - A period of 12 months
commencing with the Contract Issue Date or
any other anniversary thereafter.
DEATH BENEFIT - The amount that We will pay
upon the death of the Contract Owner or the
Annuitant, as applicable.
DCA PROGRAM FIXED ACCOUNT(S) - Account(s)
established to be used for the Dollar Cost
Averaging program(s). It is part of Our
General Account.
</TABLE>
VAXC99-4/5 PRINTED IN U.S.A.
T815R0.FRM
<PAGE>
<TABLE>
<S> <C>
DEFINITION OF DOLLAR COST AVERAGING ("DCA") - Systematic
CERTAIN TERMS transfers from one Account to any other
(CONTINUED) available Accounts.
DUE PROOF OF DEATH - A certified death
certificate, an order of a court of
competent jurisdiction, or any other proof
acceptable to Us.
FIXED ACCOUNT - Part of Our General Account
to which all or a part of the Contract Value
may be allocated. Any transfers, deductions
or surrenders from the Fixed Account will be
accounted for on a first in, first out
basis.
FUNDS - The securities which underlie Your
Sub-Accounts.
GENERAL ACCOUNT - All of Our assets other
than those allocated to the Separate
Account.
INITIAL CONTINGENT DEFERRED SALES CHARGE
PERIOD - The period during which the initial
Premium Payment is subject to a charge upon
a full or partial surrender.
INTERNAL REVENUE CODE - The Internal Revenue
Code of 1986, as amended.
JOINT ANNUITANT - Upon annuitization, a
person other than the Annuitant on whose
continuation of life Annuity payments may be
made. The contract will have a Joint
Annuitant only if the Annuity settlement
option selected provides for a survivor.
The Joint Annuitant may not be changed.
MAXIMUM ANNIVERSARY VALUE - The highest
attained Anniversary Value prior to the
earlier of the date of death or the
decedent's 81st birthday.
NET ASSET VALUE PER SHARE - The value per
share of any Fund on any Valuation Day. This
amount will never be less than that required
by the Securities and Exchange Commission.
PAYEE - The person, designated by You, to
whom Annuity payments will be made.
PAYMENT ENHANCEMENT(S) - An amount that We
credit to Your Contract Value at the time a
Premium Payment is applied. Each applicable
Payment Enhancement will be separately
calculated and applied to the Contract Value
at the time of each Premium Payment, based
on the cumulative total amount of Premium
Payments applied to this contract.
PREMIUM PAYMENT - The amount that You pay to
Us as consideration for the benefits
provided by this contract. Premium Payments
do not include any credited Payment
Enhancement(s).
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DEFINITION OF PREMIUM TAX - The amount of tax, if any,
CERTAIN TERMS charged by a federal, state, or other
(CONTINUED) governmental entity on Premium Payments or
Contract Values. On any contract subject to
a Premium Tax, We may deduct the tax at the
time We pay the tax to the applicable taxing
authorities, at the time the contract is
surrendered or on the Annuity Commencement Date.
If We deduct the tax after Your Premium Payments
have been applied to the Accounts, the tax will be
deducted from the Accounts on a pro-rata
basis.
SEPARATE ACCOUNT - An Account that We
established to separate the assets funding
the variable benefits for this type of
contract from Our other assets. The assets
in the Separate Account are not chargeable
with liabilities arising out of any other
business We may conduct. The name of the
Separate Account is shown on Page 3.
SUB-ACCOUNT - The subdivisions of the
Separate Account which are used to allocate
Your Contract Value among the corresponding
Funds.
SURRENDER VALUE - The Contract Value prior
to the Annuity Commencement Date, less any
applicable Contingent Deferred Sales
Charges, Premium Taxes, and/or Annual
Maintenance Fee.
VALUATION DAY - Every day the New York Stock
Exchange is open for trading. The value of
the Separate Account is determined at the
close of the New York Stock Exchange
(generally 4:00 p.m. Eastern Time) on such
days.
VALUATION PERIOD - The period of time
between the close of business on successive
Valuation Days.
WE, US, OUR - The company referred to on the
first page of this contract.
YOU, YOUR - The Contract Owner(s).
PREMIUM PREMIUM PAYMENTS
PAYMENT Premium Payments are payable at the Administrative
PROVISIONS Office of the Company. Payments may be made by
check or by any other method that We deem acceptable.
The initial Premium Payment is shown on Page
3. This is a flexible premium Annuity. We
may accept additional payments. The
additional payments must be at least equal
to the minimum subsequent Premium Payment
shown on Page 3.
PAYMENT ENHANCEMENTS
Subject to any restrictions as described in
this contract, We will add a Payment
Enhancement to the Contract Value based on
each Premium Payment applied to this
contract. The Payment Enhancement is a
percentage of Premium Payment(s) as shown on
Page 3. Payment Enhancements are allocated
among Accounts in the same proportion as the
associated Premium Payment.
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PREMIUM ALLOCATION OF PREMIUM PAYMENTS AND PAYMENT ENHANCEMENTS
PAYMENT Premium Payments, minus any applicable Premium Tax
PROVISIONS We may deduct, plus any credited Payment Enhancement(s),
(CONTINUED) will be allocated to each Account according to Your
instructions subject to Our minimum amount(s) then in
effect. Any subsequent Premium Payments will be
allocated to Accounts in accordance with the
most recent premium allocation instructions
that We received.
TRANSFERS BETWEEN TRANSFERS BETWEEN SUB-ACCOUNTS
ACCOUNTS You may transfer Contract Values held in the Sub-Accounts
PROVISIONS into other Sub-Accounts. We reserve the right to
limit the number of transfers to no more than
12 per Contract Year with no two transfers
being made on consecutive Valuation Days.
The right to make transfers between
Sub-Accounts is subject to modification if
We determine, in Our opinion, that
exercising that right by one or more
Contract Owners is, or would be, to the
disadvantage of other Contract 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:
a) the requirement of a minimum time period
between each transfer;
b) not accepting transfer requests of an
agent acting under a power of attorney
or on behalf of more than one Contract Owner, or
c) limiting the dollar amount that may be
transferred between the Sub-Accounts by
a Contract Owner at any one time.
Such restrictions may be applied in any
manner reasonably designed to prevent any
use of the transfer right which is
considered by Us to be to the disadvantage
of other Contract Owners.
TRANSFERS BETWEEN THE FIXED ACCOUNT AND THE SUB-ACCOUNT(S)
The maximum amount transferable from the Fixed Account
during any Contract Year is the greater of:
a) 30% of the Fixed Account value as of the last Contract
Anniversary, or
b) the greatest dollar value of any prior transfer from
the Fixed Account.
This limitation does not apply to Dollar
Cost Averaging.
However, if any interest rate is renewed at
a rate at least one percentage point below
the previous rate, You may transfer a dollar
amount up to 100% of the Fixed Account
dollar value receiving that reduced rate
within 60 days of notification of the
interest rate decrease. We reserve the right
to defer transfers from the Fixed Account
for up to six months from the date of
request.
Transfers may not be made from the
Sub-Accounts into the Fixed Account for the
six month period following any transfer from
the Fixed Account into the other
Sub-Accounts. Additionally transfers may not
be made into the DCA Program Fixed
Account(s) from either the Sub-Accounts or
the Fixed Account(s).
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VAXC99-8/9 PRINTED IN U.S.A.
T818R0.FRM
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DOLLAR COST DOLLAR COST AVERAGING
AVERAGING From time to time, We may offer and You may
PROVISIONS enroll in a Dollar Cost Averaging Program (the
"Program"). Prior to enrollment, You may obtain
the available Account(s), duration(s), or credited
rates.
You may terminate participation in the
Program at any time by calling or writing
Us. In such event, the remaining balance in
the DCA Program Fixed Account will be
transferred to the Account(s) designated by
You.
CONTRACT ANNUITANT, CONTINGENT ANNUITANT, CONTRACT OWNER
CONTROL The Annuitant may not be changed.
PROVISIONS
The designations of Contract Owner and
Contingent Annuitant will remain in effect
until You change them. The designation of
the Contract Owner may be changed during the
lifetime of the Annuitant by written notice
to Us. The designation of the Contingent
Annuitant may be changed at any time during
the lifetime of the Annuitant and prior to
the Annuity Commencement Date by written
notice to Us. If no Contingent Annuitant has
been named and the Contract
Owner/Annuitant's spouse is a Beneficiary,
the Contract Owner/Annuitant's spouse will
be presumed to be the Contingent Annuitant.
In any other situation, if no Contingent
Annuitant has been named, the Contract Owner
(or in the case of joint Contract Owners,
the younger Contract Owner) will be presumed
to be the Contingent Annuitant providing
that the Contract Owner is not the
Annuitant. The Contract Owner may waive this
presumption.
OWNERSHIP
You have the sole power to exercise all the
rights, options, and privileges granted by
this contract or permitted by Us and to
agree with Us to any change in or amendment
to the contract. Your rights will be subject
to the rights of any assignee of record with
Us and of any irrevocably designated
Beneficiary. In the case of joint Contract
Owners, each Contract Owner alone may
exercise all rights, options, and
privileges, except with respect to the
surrender, partial surrender, selection of
an Annuity option, and change of ownership.
BENEFICIARY
The designated Beneficiary will remain in
effect until You change it. The designated
Beneficiary may be changed during the
lifetime of the Annuitant by written notice
to Us at the Administrative Office of the
Company. If the designated Beneficiary has
been designated irrevocably, the designation
cannot be changed or revoked without such
Beneficiary's written consent. Upon receipt
of written notice and consent, if required
by Us, the new designation will take effect
as of the date the notice is signed, whether
or not the Annuitant or Contract Owner is
alive at the time of receipt. Any payments
made or other action taken by Us before the
receipt of the notice will not be subject to
the requested change.
</TABLE>
VAXC99-8/9 PRINTED IN U.S.A.
T819R0.FRM
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GENERAL THE CONTRACT
PROVISIONS This contract and the endorsements or
riders, if any, constitute the entire
contract.
CONTRACT MODIFICATION
No modification of this contract will be
made without the signature of Our President,
a Senior Vice President, Executive Vice
President, Vice President or Assistant Vice
President. No modification will affect the
amount or term of any Annuity begun prior to
the modification unless it is required to
conform the contract to any federal or state
statute. No modification will affect the
method by which the Contract Value will be
determined.
FUND MODIFICATION
We reserve the right, subject to any
applicable law, to make certain changes,
including the right to add, eliminate or
substitute any investment options offered
under the Contract.
MINIMUM VALUE STATEMENT
Any Surrender Values, Death Benefits, or
settlement provisions available under this
contract equal or exceed those required by
the state in which the contract is
delivered.
NON-PARTICIPATION
This contract does not share in Our surplus
earnings. That portion of the Separate
Account assets equal to the reserves and
other contract liabilities will not be
chargeable with liabilities arising out of
any other business We may conduct.
MISSTATEMENT OF AGE AND SEX
If the age or sex of the Annuitant has been
misstated, the amount of the Annuity payable
by Us will be adjusted based on the correct
information without changing the date of the
first payment. Any underpayments by Us will
be made up immediately and any overpayments
will be charged against future amounts
becoming payable.
If the age of the Annuitant or Contract
Owner has been misstated, the amount of any
Death Benefit payable will be determined
based upon the correct age of the Annuitant
or Contract Owner.
INCONTESTABILITY
We cannot contest this Contract.
REPORTS TO THE CONTRACT OWNER
You will be sent copies of any shareholder
reports of the Funds and of any other
notices, reports or documents required by
law to be delivered to You. At least
annually, a statement of the Contract Value
will be sent to You.
</TABLE>
VAXC99-10/11 PRINTED IN U.S.A.
T820R0.FRM
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GENERAL VOTING RIGHTS
PROVISIONS We will notify You of any Fund shareholder's
(CONTINUED) meetings at which the shares held for Your
Account may be voted. We will send proxy materials
and instructions for You to vote the shares held
for Your Account. We will arrange for the
handling and tallying of proxies received
from Contract Owners. We will vote the Fund
shares held by Us in accordance with the
instructions received from Contract Owners.
You may attend any meeting, where shares
held for Your benefit, will be voted.
In the event that You give no instructions
or leave the manner of voting discretionary,
We will vote such shares of the appropriate
Fund in the same proportion as shares of
that Fund for which instructions have been
received. Also, We will vote the Fund shares
in this proportionate manner which are held
by Us for Our own Account. After Annuity
payments begin, the number of votes will
decrease.
CHANGE IN THE OPERATION OF THE SEPARATE ACCOUNT
At Our election and subject to any necessary
vote by persons having the right to give
instructions on the voting of the Fund
shares held by the Sub-Accounts, the
Separate Account may be operated as a
management company under the Investment
Company Act of 1940 or any other form
permitted by law, may be deregistered under
the Investment Company Act of 1940 in the
event registration is no longer required, or
may be combined with one or more Separate
Accounts.
PROOF OF SURVIVAL
The payment of any Annuity benefit will be
subject to evidence that the Annuitant is
alive on the date such payment is otherwise
due.
TAX QUALIFICATION
This Contract is intended to qualify as an
Annuity contract for federal income tax
purposes. To that end, the provisions of
this contract are to be interpreted to
ensure and maintain such tax qualification,
notwithstanding any other provisions to the
contrary. We reserve the right to amend this
Contract to conform to any changes in the
tax qualification requirements under the
applicable provisions of the Internal
Revenue Code.
VALUATION NET PREMIUM PAYMENTS
PROVISIONS The net Premium Payment is equal to the
Premium Payment minus any applicable Premium
Taxes We may deduct. The net Premium
Payment, plus the Payment Enhancement, is
applied to purchase Fixed Account values or
Sub-Account Accumulation Units that You have
selected.
The number of Accumulation Units credited to
each Sub-Account is determined by dividing
the Net Premium Payment, plus the Payment
Enhancement, allocated to a Sub-Account by
the dollar value of one Accumulation Unit
for such Sub-Account. This is computed in
compliance with Securities and Exchange
Commission regulations. The number of
Accumulation Units will not be affected by
any subsequent change in the value of such
Accumulation Units. The Accumulation Unit
value in any Sub-Account may increase or
decrease from day to day as described below.
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VAXC99-10/11 PRINTED IN U.S.A.
T821R0.FRM
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VALUATION We will determine the value of the Fixed
PROVISIONS Account(s) by crediting interest to amounts
(CONTINUED) allocated to the Fixed Account(s). The Minimum
Fixed Account Interest Rate is the rate shown on
Page 3, compounded annually. At Our discretion,
We may credit interest rates greater than
the Minimum Fixed Account Interest Rate. We
may change the rate or rates credited in
accordance with applicable law.
NET INVESTMENT FACTOR
The net investment factor for each of the Sub-
Accounts is equal to:
a) the Net Asset Value Per Share of the
corresponding Fund at the end of the
Valuation Period (plus the per share
amount of any unpaid dividends or
capital gains by that Fund); divided by
b) the Net Asset Value Per Share of the
corresponding Fund at the beginning of
the Valuation Period; minus
c) the mortality and expense risk charge
and any applicable administration
charges, shown on Page 3, adjusted for
the number of days in the Valuation
Period.
The Fixed Account net investment factor is
guaranteed to be at least equal to the
Minimum Fixed Account Interest Rate shown on
Page 3.
ACCUMULATION UNIT VALUE
The value of an Accumulation Unit for each
Sub-Account of the Separate Account will
vary to reflect the investment experience
of the applicable Funds. It will be
determined by multiplying:
a) the value of the Accumulation Unit for
that Sub-Account as of the preceding
Valuation Day by
b) the Net Investment Factor for that
Sub-Account for the Valuation Day for
which the Accumulation Unit value is
being calculated.
The value of the Sub-Account as of each
Valuation Day is then determined by
multiplying:
a) the number of Accumulation Units in that
Sub-Account by
b) the Accumulation Unit value as of that
Valuation Day.
ANNUITY UNIT VALUE
The value of an Annuity Unit for each Sub-Account
of the Separate Account will vary to reflect the
investment experience of the applicable Funds.
It will be determined by multiplying:
a) the value of the Annuity Unit for that
Sub-Account as of the preceding
Valuation Day by
b) the Net Investment Factor for that Sub-Account
for the Valuation Day for which the Annuity
Unit value is being calculated; and by
c) the Annuity Unit Factor.
ANNUAL MAINTENANCE FEE
Prior to the Annuity Commencement Date, the
Annual Maintenance Fee, if applicable, will
be deducted on the Contract Anniversary or
upon full surrender of this contract. The
fee will be charged against the Contract
Value by reducing the Fixed Account value,
and with respect to the Sub-Accounts, the
number of Accumulation Units held as of that
date. The fee will be charged on a pro-rata
basis with respect to each active Account.
The number of Accumulation Units deducted
from each Sub-Account is determined by
dividing the pro-rata portion of the Annual
Maintenance Fee by the value of an
Accumulation Unit for the applicable
Sub-Account.
</TABLE>
VAXC99-12/13 PRINTED IN U.S.A.
T822R0.FRM
<PAGE>
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SURRENDER FULL SURRENDER PRIOR TO THE ANNUITY COMMENCEMENT DATE
PROVISIONS At any time prior to the Annuity
Commencement Date, You have the right to
terminate the contract by submitting a
written request to Us at the Administrative
Office of the Company. In such event, the
Surrender Value of the contract may be taken
in the form of a cash settlement.
The Surrender Value of the contract is equal to
the Contract Value less:
a) any applicable Premium Taxes not previously deducted;
b) the Annual Maintenance Fee as specified on Page 3;
c) any applicable Contingent Deferred Sales Charge shown
on Page 3.
PARTIAL SURRENDERS PRIOR TO THE ANNUITY COMMENCEMENT DATE
You may request, in writing or other means
acceptable to Us, a partial surrender of
Contract Values at any time prior to the
Annuity Commencement Date provided the
Contract Value remaining after the surrender
is at least equal to Our minimum amount
rules then in effect. If the remaining
Contract Value following such surrender is
less than Our minimum amount rules, We may
terminate the contract and pay the Surrender
Value.
The Contingent Deferred Sales Charge will be
assessed against any Contract Values
surrendered as described on Page 3. However,
on a noncumulative basis, You may make
partial surrenders during any Contract Year,
up to the Annual Withdrawal Amount shown on
Page 3 and the Contingent Deferred Sales
Charge will not be assessed against such
amounts. Surrender of Contract Values in
excess of the Withdrawal Amount and
additional surrenders made in any Contract
Year will be subject to the Contingent
Deferred Sales Charge, as described on Page
3, if applicable.
Generally, for federal tax purposes, any
surrenders will be deemed to be first from
earnings, to the extent that they exist,
then from Payment Enhancements and then from
the Premium Payments.
WAIVER OF SURRENDER CHARGE
We will waive any Contingent Deferred Sales Charge
applicable to a partial or full surrender of the
Contract Value if the covered person has met the
requirements of eligible confinement as described
below. A covered person is:
a) the current Contract Owner if the Contract
Owner has been the Contract Owner continuously
since the date of issue and if not confined
at the time the contract was purchased; and
b) the Annuitant, if not confined at the time the
contract was purchased.
This benefit will be provided if the Contract Owner
provides written proof of confinement which is
satisfactory to Us and requests the partial surrender
or full surrender of the Contract Value within 91 days
of the last day of confinement. Confinement must be at
the recommendation of a physician for medically
necessary reasons, for at least 180 consecutive calendar
days, to:
a) a hospital recognized as a general hospital by the
proper authority of the state in which it is
located; or
b) a hospital recognized as a general hospital by
the Joint Commission on the Accreditation of
Hospitals; or
c) a facility certified as a hospital by Medicare; or
d) a nursing home licensed by the state in
which it is located and which has a
registered nurse on duty 24 hours a day;
or
e) a facility certified by Medicare as a
long term care facility.
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T823R0.FRM
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SURRENDER We will not accept additional Premium Payments
PROVISIONS after a covered person requests the partial
(CONTINUED) surrender or full surrender of the Contract
Value under this provision. In addition, the
Contract Value will be reduced by any Payment
Enhancements credited during the period of
confinement when a full or partial surrender
is requested.
SURRENDER AFTER THE ANNUITY COMMENCEMENT DATE
This contract may only be surrendered for
its Commuted Value, less any applicable
Contingent Deferred Sales Charge, after the
commencement of variable Annuity payments
under any option with a period certain
segment.
PAYMENT ON SURRENDER - DEFERRAL OF PAYMENT
Payment on any request for surrender will be
made as soon as possible and with respect to
Contract Values in the Sub-Accounts, within
seven days after the written request is
received by Us in good order. However, such
payment may be subject to postponement:
a) for any period during which the New York
Stock Exchange is closed or during
which trading on the New York Stock Exchange
is restricted;
b) for any period during which an emergency
exists as a result of which
(i) disposal of the securities held in
the Sub-Accounts is not reasonably
practicable, or (ii) it is not
reasonably practicable for the value of
the net assets of the Separate Account
to be fairly determined; and
c) for such other periods as the Securities
and Exchange Commission may, by order,
permit for the protection of the
Contract Owners. The conditions under
which trading will be deemed to be
restricted or any emergency will be
deemed to exist will be determined by
rules and regulations of the Securities
and Exchange Commission.
We may defer payment of any amounts from the
Fixed Account for up to six months from the
date of the request to surrender. If We
defer payment for more than 30 days, We will
pay interest of at least 3% per annum on the
amount deferred.
DISTRIBUTION AT DEATH BEFORE THE ANNUITY COMMENCEMENT DATE
TIME OF DEATH If the Contract Owner dies, and:
PROVISIONS a) the joint Contract Owner is living, the
joint Contract Owner will become the
Beneficiary. In this case, the rights of
the designated Beneficiary are voided.
b) there is no surviving joint Contract
Owner, the designated Beneficiary will be
the Beneficiary.
c) no Beneficiary designation is in effect
or if the designated Beneficiary has
predeceased the Contract Owner, the
Contract Owner's estate shall be the
Beneficiary.
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T824R0.FRM
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DISTRIBUTION AT If the Annuitant dies, and:
TIME OF DEATH a) is also the sole Contract Owner, the
PROVISIONS designated Beneficiary will be the Beneficiary.
(CONTINUED) b) both the Contract Owner and the Contingent
Annuitant are living, the Contingent Annuitant
will become the Annuitant. The Contract will
continue.
c) the Contract Owner is living, and there
is no Contingent Annuitant or the
Contingent Annuitant is not living, the
Contract Owner will be the Beneficiary.
In this case, the rights of the
designated Beneficiary are voided.
d) the Contract is owned by a corporation
or other entity, the Contract Owner will
be the Beneficiary. In this case, the
rights of the designated Beneficiary are
voided.
e) no Beneficiary designation is in effect
and the Annuitant was also the sole
Contract Owner, the Owner's estate will
be the Beneficiary.
DEATH ON OR AFTER THE ANNUITY COMMENCEMENT DATE
If the Contract Owner dies, and the
Annuitant is living, the designated
Beneficiary will become the Contract Owner.
If the Annuitant dies, the Contract Owner
will be the Beneficiary. Upon Our receipt of
Due Proof of Death, the rights of the
designated Beneficiary are voided.
If the Annuitant who is also the Contract
Owner dies, the designated Beneficiary will
be the Beneficiary.
The Death Benefit will be calculated as of
the date We receive written notification of
Due Proof of Death as in the manner
described in the settlement option then in
effect.
CALCULATION CALCULATION OF THE DEATH BENEFIT
OF THE DEATH Should the Contract Owner or Annuitant die before
BENEFIT the Annuity Commencement Date, any Death Benefit
PROVISIONS payable will be calculated as of the date We receive
Due Proof of Death.
If the calculated Death Benefit is not equal
to the Contract Value, the difference will
be allocated proportionally to the
Account(s) in accordance with the then
current Account allocation.
During the time period between Our receipt
of written notification of Due Proof of
Death and Our receipt of complete settlement
instructions from each Beneficiary, the
calculated Death Benefit amount will be
subject to market fluctuations.
DEATH BENEFIT
The Death Benefit is the greatest of:
a) the Contract Value; reduced by any Payment
Enhancement(s) credited in the 12 months
prior to the date of calculation of the
Death Benefit; or
b) 100% of all Premium Payments, reduced by
the gross amount of any partial
surrenders since the Contract Issue
Date; or
c) the Maximum Anniversary Value, reduced
by any Payment Enhancement(s) credited
in the 12 months prior to the date of
calculation of the Death Benefit.
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VAXC99-14/15 PRINTED IN U.S.A.
T825R0.FRM
<PAGE>
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CALCULATION MAXIMUM ANNIVERSARY VALUE
OF THE DEATH The Maximum Anniversary Value is based on a
BENEFIT series of calculations on Contract Anniversaries
PROVISIONS of Contract Values, Premium Payments, Payment
(CONTINUED) Enhancement(s), and partial surrenders.
As of the date We receive notification of
Due Proof of Death, We will calculate an
Anniversary Value for each Contract
Anniversary prior to the decedent's death
and 81st birthday. The Anniversary Value is
equal to the Contract Value as of a Contract
Anniversary, increased by the dollar amount
of any Premium Payments made and any Payment
Enhancement(s) credited since that
anniversary and reduced by the dollar amount
of any partial surrenders since that
anniversary. The Maximum Anniversary Value
is equal to the greatest Anniversary Value
attained from this series of calculations.
SETTLEMENT OF THE DEATH BENEFIT
The Death Benefit may be taken in one sum or
under any of the settlement options then
being offered by Us subject, however, to the
Distribution Requirements below.
As of the date of receipt of complete
disbursement instructions from the
Beneficiary, the amount to be paid or
applied to a selected settlement option will
be computed. When there is more than one
Beneficiary, the amount will be calculated
for each Beneficiary's share of the proceeds
and paid or applied to a selected settlement
option according to and upon each
Beneficiary's instructions. If the date of
receipt of complete instructions falls on a
non-Valuation Day, the amount will be
computed on the next Valuation Day.
When settlement is taken in one sum, the
disbursement will be mailed within 7 days of
Our receipt of complete instructions, except
when We are permitted to defer such payment
under the Investment Company Act of 1940.
DISTRIBUTION REQUIREMENTS
Subject to the Alternative Election or Spouse
Beneficiary provisions below:
a) If any Contract Owner dies before the
Annuity Commencement Date, the entire
interest in the Contract will be distributed
within five years after such death; and
b) If any Contract Owner dies on or after
the Annuity Commencement Date and before
the entire interest in the Contract has
been distributed, the remaining portion
of such interest will be distributed at
least as rapidly as under the method of
distribution being used as of the date
of such death.
If the Contract Owner is not an individual, then
for purposes of the preceding paragraph a) or b),
the Annuitant will be treated as the Contract Owner.
ALTERNATIVE ELECTION TO SATISFY DISTRIBUTION REQUIREMENTS
If any portion of the interest of a Contract
Owner described above is payable to or for
the benefit of a designated Beneficiary, and
the Beneficiary elects after the Contract
Owner's death to have the benefit
distributed over a period that:
a) does not extend beyond such Beneficiary's life (or
life expectancy); and
b) does commence within one year of the date of death,
then for purposes of satisfying the Distribution
Requirements above, the benefit will be
treated as distributed entirely on the date
such periodic distributions begin.
</TABLE>
VAXC99-16/17 PRINTED IN U.S.A.
T826R0.FRM
<PAGE>
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CALCULATION SPOUSE BENEFICIARY
OF THE DEATH In the event of the death of a Contract Owner
BENEFIT and there is no joint Contract Owner, and the
PROVISIONS sole Beneficiary is the Contract Owner's spouse
(CONTINUED) and the annuitant (or Contingent Annuitant, if
applicable) is alive, the contract will continue
with the spouse as the Contract Owner, unless the
spouse elects to be paid a Death Benefit option.
This provision will apply only once with respect
to this contract.
If the contract continues with the spouse as
the Contract Owner, the Death Benefit will
be calculated on receipt of Due Proof of
Death. If the Contract Value is less than
the calculated Death Benefit amount, the
Contract Value will be increased
accordingly.
SETTLEMENT ANNUITY COMMENCEMENT DATE
PROVISIONS The Annuity Commencement Date is shown on Page 3.
You may change the date by notifying Us prior to
the Annuity Commencement Date. This date will not
be deferred beyond the Valuation Day immediately
following the later of:
a) the Annuitant's 90th birthday; or
b) the end of the tenth Contract Year,
unless the Contract Owner elects a later Annuity
Commencement Date subject to laws and regulations
then in effect and Our approval.
If this contract is issued to the trustee of
a charitable remainder trust, the Annuity
Commencement Date may be deferred to the
Annuitant's 100th birthday.
ELECTION OF ANNUITY OPTION
You may elect, in writing, without deduction
of any Contingent Deferred Sales Charge, any
one of the Annuity options described below
(except the seventh option - Annuity Proceeds
Settlement Option) or any Annuity option
then being offered by Us. The Annuity option
may not be changed on or after the Annuity
Commencement Date.
In the absence of an election by You, the
Contract Value will be used to calculate a
fixed dollar Annuity under the Third Option
(Life Annuity with 10 Years Period Certain).
Some of the options may not be available if
this contract is issued to qualify under
Section 401, 403, or 408 of the Internal
Revenue Code of 1986 as amended. The third,
fifth and sixth options (Life Annuity with
Payments for a Period Certain, Joint and
Last Survivor Life Annuity with Payments for
a Period Certain, and Payment for a Period
Certain) or any other option with a period
certain segment will be available only if
the guaranteed payment period is less than
the life expectancy of the Annuitant at the
time the option becomes effective. Such life
expectancy will be computed under the
mortality table then in use by Us.
ELECTION OF ANNUITY PAYMENT FREQUENCY
You may elect the Annuity Payment Frequency.
Available Annuity Payment Frequencies
include: monthly, quarterly, semi-annual,
and annual. In the event that You do not
elect a payment frequency, Annuity payments
will be made monthly. Annuity payments will
be made according to the Annuity Payment
Frequency selected. You may elect to change
the Annuity Payment Frequency of Your
payments within 30 days prior to the
anniversary of any Annuity Commencement
Date.
</TABLE>
VAXC99-16/17 PRINTED IN U.S.A.
T827R0.FRM
<PAGE>
<TABLE>
<S> <C>
SETTLEMENT ANNUITY CALCULATION AND PAYMENT DATES
PROVISIONS The Annuity Calculation Date will be no more
(CONTINUED) than five Valuation Days prior to the Annuity
Commencement Date. You may elect variable Annuity
payments, fixed dollar Annuity payments, or a
combination fixed and variable Annuity
payments. The election may not change on or
after the Annuity Commencement Date.
Applicable Premium Taxes and any Payment
Enhancements credited in the prior 24 months
will be deducted from the Contract Value
when determining the amount available for
Annuity payments.
If You elect variable Annuity payments, the
amount available for Annuity payments, as
described above, is applied pro-rata to Your
selected Sub- Account(s). If You elect fixed
dollar Annuity payments, the amount
available for Annuity payments, as described
above, will be applied to the General
Account.
If You elect variable Annuity payments, Your
election must specify the Assumed Investment
Return upon which Your payments are to be
based. The available rates are 3%, 5%, and
6%.
If You elect fixed dollar Annuity payments,
the payments will be the guaranteed rates,
based on 2.5% or the current rates, if
higher.
VARIABLE ANNUITY PAYMENTS - The contract
contains tables indicating the minimum
dollar amount of the first monthly payment
under the optional forms of Annuity for each
$1,000 of value of a Sub-Account under the
contract. The first monthly payment varies
according to the variable Annuity payment
option selected.
The first Annuity payment is payable on the
Annuity Commencement Date. The remaining
Annuity payments are computed and payable as
of the same day of the month as the Annuity
Commencement Date based on the elected
Annuity Payment Frequency.
The amount of the first variable Annuity
payment is divided by the Annuity Unit value
for Your selected Sub-Account(s) as of the
Annuity Commencement Date to determine the
number of Annuity Units underlying each
Annuity payment. This number of Annuity
Units remains fixed for the selected
Sub-Account during the Annuity payment
period. For each subsequent payment the
dollar amount of the Variable Annuity
payment is determined by multiplying the
fixed number of Annuity Units by the Annuity
Unit value.
If subsequent payment dates fall on a
non-Valuation Day (weekend or holiday), the
payment will be computed and payable as of
the prior Valuation Day. If the day of the
month elected does not occur in a given
month (29th, 30th, or 31st), the payments
will be computed and payable as of the last
Valuation Day of the month.
FIXED ANNUITY PAYMENTS - Fixed Annuity
payments are determined by multiplying the
value of the General Account by a rate to be
determined by Us, which is no less than the
rate specified in the Annuity Tables For
Fixed Payments in the contract. The fixed
Annuity payment will remain level for the
duration of the Annuity Option.
</TABLE>
VAXC99-18/19 PRINTED IN U.S.A.
T828R0.FRM
<PAGE>
<TABLE>
<S> <C>
SETTLEMENT EXCHANGE "TRANSFER" OF ANNUITY UNITS
PROVISIONS After the Annuity Commencement Date, You may
(CONTINUED) exchange "Transfer" the value of the Annuity Unit
for a specified Sub-Account for the dollar value
of Annuity Units in another Sub-Account. Transfers may
be made between the Sub-Account(s) and from
the Sub-Account(s) to the General Account.
No transfers are allowed from the General
Account to the Sub-Accounts. For limitation
and modification guidelines see "Transfers
Between Sub-Accounts."
MINIMUM PAYMENT
The first payment must be at least equal to
the minimum payment amount according to Our
rules then in effect. If at any time,
payments become less than the minimum
payment amount, We have the right to change
the payment frequency to meet the minimum
payment requirements. If any payment amount
is less than the minimum annual payment
amount, We may make an alternative
arrangement with You.
ANNUITY OPTIONS
FIRST OPTION - Life Annuity - An Annuity payable
during the lifetime of the Annuitant, ceasing with
the last payment due prior to the death of the
Annuitant.
SECOND OPTION - Life Annuity With a Cash
Refund - An Annuity payable during the
lifetime of the Annuitant. At the death of
the Annuitant, any remaining value will be
paid to the Beneficiary. The remaining value
equals the amount available used to purchase
Annuity Units, minus the sum of all Annuity
payments received. This option is only
available for variable Annuity payments
using the 5% Assumed Investment Return.
THIRD OPTION - Life Annuity with Payments
for a Period Certain - An Annuity payable
for a fixed number of years and during the
lifetime of the Annuitant. If at the death
of the Annuitant, payments have been made
for less than the period selected, the
Beneficiary may elect to receive the
remaining payments as scheduled or the
Commuted Value in one sum.
Surrenders are only available with variable
Annuity payments and during the Period
Certain. You may request a partial or full
surrender of Your remaining guaranteed
payments. The amount available to You is the
Commuted Value less any applicable
Contingent Deferred Sales Charge. A full
surrender will cause all payments to cease
during the remainder of the Period Certain.
Life contingent payments will begin after
the Period Certain expires if the Annuitant
is alive. A partial surrender will reduce
the amount of the remaining guaranteed
payments. Life contingent payments (Annuity
payments after the Period Certain has
expired) will not change as a result of any
surrenders taken during the Period Certain.
FOURTH OPTION - Joint and Last Survivor Life
Annuity - An Annuity payable during the
lifetimes of the Annuitant and the Joint
Annuitant and thereafter during the
remaining lifetime of the survivor. At the
time of electing this Annuity option, the
Contract Owner may elect reduced payments
over the remaining lifetime of the survivor.
Payments will cease with the last payment
prior to the death of the survivor.
</TABLE>
VAXC99-18/19 PRINTED IN U.S.A.
T829R0.FRM
<PAGE>
<TABLE>
<S> <C>
SETTLEMENT FIFTH OPTION - Joint and Last Survivor Life
PROVISIONS Annuity with Payments for a Period Certain - An
(CONTINUED) Annuity payable for a fixed number of years and
during the lifetimes of the Annuitant and the
Joint Annuitant and thereafter during the
remaining lifetime of the survivor. At the
time of electing this Annuity option, the
Contract Owner may elect reduced payments
over the remaining lifetime of the survivor.
If at the death of the survivor, payments
have been made for less than the period
selected, the Beneficiary may elect to
receive the remaining payments as scheduled
or the Commuted Value in one sum.
Surrenders are only available with variable
Annuity payments and during the Period
Certain. You may request a partial or full
surrender of Your remaining guaranteed
payments. The amount available to You is the
Commuted Value less any applicable
Contingent Deferred Sales Charge. A full
surrender will cause all payments to cease
during the remainder of the Period Certain.
Life contingent payments will begin after
the Period Certain expires if the Annuitant
is alive. A partial surrender will reduce
the amount of the remaining guaranteed
payments. Life contingent payments (Annuity
payments after the Period Certain has
expired) will not change as a result of any
surrenders taken during the Period Certain.
SIXTH OPTION - Payment for a Period Certain
- An Annuity payable for a fixed number of
years with periods of 10 years or greater
available. Payments will be made for the
period and frequency selected unless You
surrender this contract after payments have
commenced by submitting a written request to
Us.
If at the death of the Annuitant, payments
have been made for less than the period
selected, the Beneficiary may elect to
receive the remaining payments as scheduled
or the Commuted Value in one sum.
Surrenders are only available with variable
Annuity payments. You may request a partial
or full surrender. The amount available to
You is the Commuted Value, less any
applicable Contingent Deferred Sales Charge.
A full surrender will cause all future
payments to cease. A partial surrender will
reduce the amount of the remaining payments.
SEVENTH OPTION - Annuity Proceeds Settlement
Option - Proceeds from the Death Benefit can
be left with Us for a period not to exceed
five years from the date of the Contract
Owner's or the Annuitant's death prior to
the Annuity Commencement Date. The proceeds
will remain in the Sub-Account(s) to which
they were allocated at the time of death
unless the Beneficiary elects to reallocate
them. Full or partial withdrawals may be
made at any time. In the event of
withdrawals, the remaining value will equal
the Contract Value of the proceeds left with
Us, minus any withdrawals.
</TABLE>
VAXC99-20/21 PRINTED IN U.S.A.
T830R0.FRM
<PAGE>
<TABLE>
<S> <C>
ANNUITY TABLES DESCRIPTION OF TABLES
The attached tables show the minimum dollar
amount of the first monthly payment for each
$1,000 applied to fixed dollar Annuity
payments, and the actual first monthly
payment for each $1,000 applied to variable
Annuity payments. Under the First and Second
Options, the amount of each payment will
depend upon the age and sex of the Annuitant
at the time the first payment is due. Under
the Fourth and Fifth Options, the amount of
the first payment will depend upon the sex
of both Annuitants and their ages at the
time the first payment is due.
Sex will not be used to determine the amount
of the Annuity payment if this contract is
issued to qualify under certain sections of
the Internal Revenue Code. If sex is used to
determine the amount of the Annuity payment,
the Annuity tables at the end of this
contract will provide rates of payment for
male Annuitants and female Annuitants.
The variable payment Annuity tables for the
First through Fifth Options are based on the
1983a Individual Annuity Mortality Table
projected to the year 2000 using Projection
Scale G and the Assumed Investment Return.
The table for the Sixth Option is based on
the Assumed Investment Return.
The fixed payment Annuity tables for the
First through Fifth Options are based on the
1983a Individual Annuity Mortality Table
projected to the year 2000 using Projection
Scale G and an interest rate of 2.5%. The
amount of the first payment will be based on
an age that is a specified number of years
younger than the Annuitant's then-attained
age. The age setback is as follows:
DATE OF FIRST PAYMENT AGE SETBACK
Prior to 2005 1 year
2005 - 2014 2 years
2015 - 2019 3 years
2020 - 2029 4 years
2030 - 2039 5 years
2040 or later 6 years
The table for the Sixth Option is based on
an interest rate of 2.5% per annum.
</TABLE>
VAXC99-20/21 PRINTED IN U.S.A.
T831R0.FRM
<PAGE>
ANNUITY TABLES FOR
FIXED PAYMENTS,
BASED ON A 2 1/2% ASSUMED INVESTMENT RETURN
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 APPLIED
Fixed Dollar Annuity payments will not vary and are guaranteed as to fixed
dollar amount. Payments for any available Annuity Payment Frequency, Period
Certain, age, or combination of ages not shown will be quoted upon request. The
Second Option (Life Annuity with a Cash Refund) is not available with the 2 1/2%
Assumed Investment Return.
FIRST AND THIRD OPTIONS - SINGLE LIFE ANNUITIES
<TABLE>
<CAPTION>
MALE ANNUITANT FEMALE ANNUITANT
MONTHLY PAYMENTS GUARANTEED MONTHLY PAYMENTS GUARANTEED
AGE NONE 120 180 240 NONE 120 180 240
- -------- ------------ --------------- -------------- ---------------- --------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
35 $3.05 $3.05 $3.04 $3.03 $2.88 $2.88 $2.88 $2.87
40 3.25 3.24 3.23 3.21 3.04 3.03 3.03 3.02
45 3.49 3.48 3.45 3.42 3.23 3.22 3.22 3.20
50 3.80 3.77 3.73 3.68 3.47 3.46 3.45 3.42
51 3.87 3.84 3.79 3.73 3.53 3.52 3.50 3.47
52 3.94 3.91 3.86 3.79 3.59 3.57 3.56 3.52
53 4.02 3.98 3.93 3.85 3.65 3.64 3.61 3.58
54 4.10 4.06 4.00 3.91 3.72 3.70 3.67 3.63
55 4.19 4.14 4.07 3.97 3.79 3.77 3.74 3.69
56 4.28 4.22 4.15 4.04 3.86 3.84 3.80 3.75
57 4.37 4.31 4.23 4.10 3.94 3.91 3.87 3.81
58 4.48 4.41 4.31 4.17 4.02 3.99 3.94 3.88
59 4.59 4.51 4.40 4.23 4.10 4.07 4.02 3.94
60 4.70 4.61 4.49 4.30 4.20 4.16 4.10 4.01
61 4.83 4.72 4.58 4.37 4.29 4.25 4.18 4.08
62 4.96 4.84 4.67 4.44 4.40 4.35 4.27 4.15
63 5.10 4.96 4.77 4.50 4.51 4.45 4.36 4.22
64 5.25 5.09 4.87 4.57 4.62 4.56 4.46 4.30
65 5.41 5.23 4.97 4.64 4.75 4.67 4.55 4.37
66 5.59 5.37 5.08 4.70 4.88 4.79 4.66 4.45
67 5.77 5.51 5.18 4.76 5.03 4.92 4.76 4.52
68 5.97 5.66 5.29 4.82 5.18 5.05 4.87 4.59
69 6.18 5.82 5.39 4.87 5.34 5.19 4.98 4.66
70 6.40 5.98 5.49 4.92 5.52 5.34 5.09 4.73
75 7.76 6.85 5.97 5.12 6.64 6.21 5.67 5.02
80 9.67 7.73 6.32 5.23 8.29 7.20 6.15 5.19
</TABLE>
FOURTH OPTION - JOINT AND LAST SURVIVOR ANNUITY
<TABLE>
<CAPTION>
AGE AGE OF FEMALE
OF
MALE 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $2.74 $2.81 $2.87 $2.92 $2.96 $2.99 $3.01 $3.03 $3.04 $3.04 $3.05 3.05
40 2.78 2.87 2.95 3.02 3.08 3.13 3.17 3.20 3.22 3.23 3.24 3.24
45 2.81 2.92 3.02 3.12 3.22 3.30 3.36 3.40 3.44 3.46 3.47 3.48
50 2.83 2.95 3.08 3.22 3.35 3.46 3.56 3.64 3.70 3.74 3.76 3.78
55 2.85 2.98 3.13 3.29 3.46 3.63 3.79 3.91 4.01 4.08 4.13 4.15
60 2.86 3.00 3.16 3.35 3.56 3.79 4.01 4.21 4.38 4.51 4.59 4.64
65 2.87 3.01 3.19 3.39 3.64 3.92 4.22 4.52 4.80 5.02 5.18 5.29
70 2.87 3.02 3.20 3.42 3.69 4.02 4.39 4.81 5.23 5.61 5.91 6.12
75 2.88 3.03 3.21 3.44 3.73 4.09 4.52 5.05 5.64 6.23 6.76 7.15
80 2.88 3.03 3.22 3.46 3.75 4.13 4.62 5.23 5.98 6.82 7.66 8.36
85 2.88 3.03 3.22 3.46 3.77 4.16 4.67 5.35 6.24 7.32 8.52 9.66
90 2.88 3.04 3.23 3.47 3.77 4.17 4.71 5.42 6.41 7.69 9.25 10.91
</TABLE>
VA99SXD2.5-1 PRINTED IN U.S.A.
U025R0.FRM
<PAGE>
ANNUITY TABLES FOR
FIXED PAYMENTS,
BASED ON A 2 1/2% ASSUMED INVESTMENT RETURN
(CONTINUED)
FIFTH OPTION - JOINT AND LAST SURVIVOR ANNUITY WITH 10 YEAR PERIOD CERTAIN
<TABLE>
<CAPTION>
AGE AGE OF FEMALE
OF
MALE 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $2.74 $2.81 $2.87 $2.92 $2.96 $2.99 $3.01 $3.02 $3.04 $3.04 $3.05 $3.05
40 2.78 2.87 2.95 3.02 3.08 3.13 3.17 3.20 3.22 3.23 3.23 3.24
45 2.81 2.92 3.02 3.12 3.22 3.29 3.36 3.40 3.43 3.45 3.47 3.47
50 2.83 2.95 3.08 3.22 3.35 3.46 3.56 3.64 3.70 3.73 3.75 3.76
55 2.85 2.98 3.13 3.29 3.46 3.63 3.78 3.91 4.01 4.07 4.11 4.13
60 2.86 3.00 3.16 3.35 3.56 3.78 4.01 4.21 4.37 4.49 4.56 4.59
65 2.87 3.01 3.19 3.39 3.64 3.91 4.21 4.51 4.78 4.98 5.11 5.18
70 2.87 3.02 3.20 3.42 3.69 4.01 4.38 4.79 5.19 5.53 5.76 5.89
75 2.88 3.03 3.21 3.44 3.72 4.08 4.51 5.01 5.56 6.07 6.46 6.68
80 2.88 3.03 3.22 3.45 3.75 4.12 4.59 5.17 5.85 6.54 7.10 7.46
85 2.88 3.03 3.22 3.46 3.76 4.14 4.63 5.27 6.04 6.88 7.61 8.09
90 2.88 3.03 3.22 3.46 3.76 4.15 4.66 5.32 6.14 7.07 7.92 8.51
</TABLE>
SIXTH OPTION - PAYMENTS FOR A PERIOD CERTAIN
<TABLE>
<CAPTION>
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF
YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY
PAYMENTS PAYMENTS PAYMENTS PAYMENTS PAYMENTS
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10 $9.39 15 $6.64 20 $5.27 25 $4.46 30 $3.93
11 8.64 16 6.30 21 5.08 26 4.34
12 8.02 17 6.00 22 4.90 27 4.22
13 7.49 18 5.73 23 4.74 28 4.12
14 7.03 19 5.49 24 4.60 29 4.02
</TABLE>
VA99SXD2.5-1 PRINTED IN U.S.A.
U026R0.FRM
<PAGE>
ANNUITY TABLES FOR
VARIABLE PAYMENTS,
BASED ON A 3% ASSUMED INVESTMENT RETURN
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 APPLIED
The second and subsequent annuity payments under a variable annuity are based on
the investment experience of a Separate Account and are not guaranteed as to
fixed dollar amount. Payments for any available Annuity Payment Frequency,
Period Certain, age, or combination of ages not shown will be quoted upon
request. The Second Option (Life Annuity with a Cash Refund) is not available
with the 3% Assumed Investment Return.
FIRST AND THIRD OPTIONS - SINGLE LIFE ANNUITIES
<TABLE>
<CAPTION>
MALE ANNUITANT FEMALE ANNUITANT
MONTHLY PAYMENTS GUARANTEED MONTHLY PAYMENTS GUARANTEED
AGE NONE 120 180 240 NONE 120 180 240
- -------- ------------ --------------- -------------- ---------------- --------------- -------------- --------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
35 $3.35 $3.35 $3.34 $3.33 $3.18 $3.18 $3.18 $3.17
40 3.54 3.53 3.52 3.50 3.33 3.33 3.32 3.31
45 3.78 3.76 3.74 3.71 3.52 3.51 3.50 3.49
50 4.08 4.05 4.01 3.95 3.76 3.75 3.73 3.70
51 4.15 4.12 4.07 4.01 3.81 3.80 3.78 3.75
52 4.23 4.19 4.14 4.06 3.87 3.86 3.84 3.80
53 4.30 4.26 4.20 4.12 3.93 3.92 3.89 3.85
54 4.38 4.34 4.27 4.18 4.00 3.98 3.95 3.91
55 4.47 4.42 4.35 4.24 4.07 4.04 4.01 3.96
56 4.56 4.50 4.42 4.30 4.14 4.11 4.08 4.02
57 4.66 4.59 4.50 4.37 4.22 4.19 4.15 4.08
58 4.76 4.68 4.58 4.43 4.30 4.26 4.22 4.15
59 4.87 4.78 4.67 4.50 4.38 4.35 4.29 4.21
60 4.98 4.89 4.76 4.56 4.47 4.43 4.37 4.28
61 5.11 5.00 4.85 4.63 4.57 4.52 4.45 4.35
62 5.24 5.11 4.94 4.69 4.67 4.62 4.54 4.42
63 5.38 5.23 5.04 4.76 4.78 4.72 4.63 4.49
64 5.54 5.36 5.13 4.83 4.90 4.83 4.72 4.56
65 5.70 5.50 5.23 4.89 5.03 4.94 4.82 4.63
66 5.87 5.63 5.34 4.95 5.16 5.06 4.92 4.70
67 6.06 5.78 5.44 5.01 5.30 5.19 5.02 4.78
68 6.25 5.93 5.54 5.07 5.45 5.32 5.13 4.85
69 6.46 6.08 5.64 5.12 5.62 5.46 5.24 4.92
70 6.69 6.24 5.74 5.17 5.80 5.61 5.35 4.98
75 8.05 7.10 6.21 5.36 6.92 6.46 5.91 5.26
80 9.97 7.97 6.56 5.47 8.57 7.45 6.39 5.42
</TABLE>
FOURTH OPTION - JOINT AND LAST SURVIVOR ANNUITY
<TABLE>
<CAPTION>
AGE AGE OF FEMALE
OF
MALE 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $3.04 $3.11 $3.16 $3.21 $3.25 $3.28 $3.30 $3.32 $3.33 $3.34 $3.34 $3.35
40 3.08 3.16 3.24 3.31 3.37 3.42 3.46 3.49 3.51 3.52 3.53 3.53
45 3.11 3.21 3.31 3.41 3.50 3.58 3.64 3.69 3.72 3.74 3.76 3.77
50 3.13 3.25 3.37 3.50 3.62 3.74 3.84 3.92 3.98 4.02 4.05 4.06
55 3.15 3.27 3.41 3.57 3.74 3.90 4.06 4.19 4.29 4.36 4.41 4.43
60 3.16 3.29 3.45 3.63 3.84 4.06 4.28 4.48 4.65 4.78 4.87 4.92
65 3.17 3.31 3.47 3.67 3.91 4.19 4.48 4.78 5.06 5.29 5.46 5.56
70 3.17 3.32 3.49 3.71 3.97 4.29 4.66 5.07 5.49 5.88 6.18 6.39
75 3.18 3.32 3.50 3.73 4.01 4.36 4.79 5.31 5.90 6.49 7.02 7.42
80 3.18 3.33 3.51 3.74 4.03 4.40 4.88 5.49 6.24 7.08 7.92 8.63
85 3.18 3.33 3.51 3.75 4.05 4.43 4.94 5.62 6.50 7.58 8.78 9.92
90 3.18 3.33 3.52 3.75 4.05 4.45 4.98 5.70 6.68 7.96 9.52 11.18
</TABLE>
VA99SXD3-1 PRINTED IN U.S.A.
U027R0.FRM
<PAGE>
ANNUITY TABLES FOR
VARIABLE PAYMENTS,
BASED ON A 3% ASSUMED INVESTMENT RETURN
(CONTINUED)
FIFTH OPTION - JOINT AND LAST SURVIVOR ANNUITY WITH 10 YEAR PERIOD CERTAIN
<TABLE>
<CAPTION>
AGE AGE OF FEMALE
OF
MALE 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $3.04 $3.11 $3.16 $3.21 $3.25 $3.28 $3.30 $3.32 $3.33 $3.34 $3.34 $3.34
40 3.08 3.16 3.24 3.31 3.37 3.42 3.46 3.49 3.51 3.52 3.53 3.53
45 3.11 3.21 3.31 3.41 3.50 3.58 3.64 3.69 3.72 3.74 3.75 3.76
50 3.13 3.25 3.37 3.50 3.62 3.74 3.84 3.92 3.97 4.01 4.03 4.05
55 3.15 3.27 3.41 3.57 3.74 3.90 4.05 4.18 4.28 4.35 4.39 4.40
60 3.16 3.29 3.45 3.63 3.83 4.05 4.27 4.47 4.64 4.76 4.83 4.86
65 3.17 3.31 3.47 3.67 3.91 4.18 4.48 4.77 5.04 5.24 5.38 5.45
70 3.17 3.31 3.49 3.70 3.97 4.28 4.65 5.05 5.45 5.79 6.02 6.16
75 3.18 3.32 3.50 3.72 4.00 4.35 4.77 5.27 5.82 6.32 6.71 6.94
80 3.18 3.32 3.51 3.73 4.02 4.39 4.86 5.43 6.10 6.79 7.35 7.70
85 3.18 3.33 3.51 3.74 4.04 4.41 4.90 5.53 6.30 7.12 7.85 8.33
90 3.18 3.33 3.51 3.74 4.04 4.42 4.93 5.58 6.40 7.32 8.16 8.74
</TABLE>
SIXTH OPTION - PAYMENTS FOR A PERIOD CERTAIN
<TABLE>
<CAPTION>
- ----------- ------------ ------- ------------- ---------- ------------- --------- ------------- ---------- -------------
NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF
YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY
PAYMENTS PAYMENTS PAYMENTS PAYMENTS PAYMENTS
- ----------- ------------ ------- ------------- ---------- ------------- --------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10 $9.61 15 $6.87 20 $5.51 25 $4.71 30 $4.18
11 8.86 16 6.53 21 5.32 26 4.59
12 8.24 17 6.23 22 5.15 27 4.47
13 7.71 18 5.96 23 4.99 28 4.37
14 7.26 19 5.73 24 4.84 29 4.27
</TABLE>
VA99SXD3-1 PRINTED IN U.S.A.
U028R0.FRM
<PAGE>
ANNUITY TABLES FOR
VARIABLE PAYMENTS,
BASED ON A 5% ASSUMED INVESTMENT RETURN
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 APPLIED
Second and subsequent Annuity payments under a variable annuity are based on the
investment experience of a Separate Account and are not guaranteed as to fixed
dollar amount. Payments for any available Annuity Payment Frequency, Period
Certain, age, or combination of ages not shown will be quoted upon request.
FIRST, SECOND, AND THIRD OPTIONS - SINGLE LIFE ANNUITIES
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
MALE ANNUITANT FEMALE ANNUITANT
MONTHLY PAYMENTS GUARANTEED MONTHLY PAYMENTS GUARANTEED
AGE NONE 120 180 240 CASH REFUND NONE 120 180 240 CASH REFUND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $4.63 $4.62 $4.61 $4.60 $4.60 $4.48 $4.48 $4.47 $4.47 $4.46
40 4.80 4.78 4.77 4.74 4.74 4.60 4.60 4.59 4.58 4.58
45 5.02 4.99 4.96 4.91 4.92 4.77 4.75 4.74 4.72 4.72
50 5.30 5.25 5.20 5.13 5.16 4.98 4.96 4.94 4.90 4.91
51 5.36 5.31 5.26 5.18 5.21 5.03 5.01 4.98 4.94 4.95
52 5.43 5.38 5.31 5.23 5.27 5.08 5.06 5.03 4.99 5.00
53 5.51 5.45 5.37 5.28 5.33 5.14 5.11 5.08 5.03 5.05
54 5.58 5.52 5.44 5.33 5.39 5.20 5.17 5.13 5.08 5.10
55 5.67 5.59 5.50 5.38 5.46 5.26 5.23 5.19 5.13 5.16
56 5.75 5.67 5.57 5.44 5.53 5.33 5.29 5.25 5.18 5.21
57 5.85 5.75 5.64 5.49 5.60 5.40 5.36 5.31 5.24 5.27
58 5.95 5.84 5.72 5.55 5.68 5.48 5.43 5.37 5.29 5.34
59 6.05 5.94 5.80 5.61 5.76 5.56 5.51 5.44 5.35 5.41
60 6.17 6.04 5.88 5.67 5.85 5.65 5.59 5.51 5.41 5.48
61 6.29 6.14 5.96 5.73 5.94 5.74 5.67 5.59 5.47 5.55
62 6.42 6.25 6.05 5.78 6.04 5.84 5.76 5.67 5.53 5.63
63 6.56 6.37 6.14 5.84 6.14 5.95 5.86 5.75 5.59 5.72
64 6.71 6.49 6.23 5.90 6.24 6.06 5.96 5.84 5.66 5.81
65 6.87 6.62 6.32 5.96 6.36 6.18 6.07 5.93 5.72 5.91
66 7.05 6.75 6.41 6.01 6.47 6.31 6.18 6.02 5.79 6.01
67 7.23 6.89 6.51 6.06 6.60 6.46 6.30 6.11 5.85 6.12
68 7.43 7.03 6.60 6.11 6.73 6.61 6.43 6.21 5.92 6.23
69 7.65 7.18 6.69 6.16 6.87 6.77 6.57 6.31 5.98 6.35
70 7.87 7.33 6.79 6.21 7.01 6.95 6.71 6.42 6.04 6.48
75 9.25 8.14 7.21 6.38 7.85 8.08 7.53 6.94 6.29 7.25
80 11.20 8.97 7.53 6.47 8.92 9.75 8.47 7.37 6.43 8.27
</TABLE>
FOURTH OPTION - JOINT AND LAST SURVIVOR ANNUITY
<TABLE>
<CAPTION>
AGE AGE OF FEMALE
OF
MALE 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $4.35 $4.40 $4.44 $4.48 $4.52 $4.55 $4.57 $4.59 $4.60 $4.61 $4.62 $4.63
40 4.38 4.44 4.50 4.56 4.61 4.66 4.70 4.73 4.75 4.77 4.78 4.79
45 4.41 4.48 4.56 4.64 4.72 4.79 4.85 4.90 4.94 4.97 4.99 5.00
50 4.42 4.51 4.61 4.71 4.82 4.93 5.02 5.10 5.17 5.21 5.25 5.27
55 4.44 4.54 4.65 4.78 4.92 5.07 5.21 5.34 5.45 5.53 5.58 5.62
60 4.45 4.55 4.68 4.83 5.01 5.21 5.41 5.61 5.78 5.92 6.02 6.08
65 4.46 4.57 4.71 4.88 5.09 5.33 5.60 5.89 6.17 6.40 6.58 6.70
70 4.47 4.58 4.73 4.91 5.14 5.43 5.78 6.17 6.58 6.97 7.29 7.52
75 4.47 4.59 4.74 4.94 5.19 5.51 5.91 6.41 6.98 7.57 8.11 8.53
80 4.48 4.59 4.75 4.95 5.21 5.56 6.01 6.60 7.33 8.16 9.00 9.72
85 4.48 4.60 4.76 4.96 5.23 5.60 6.08 6.73 7.60 8.66 9.86 11.01
90 4.48 4.60 4.76 4.97 5.25 5.62 6.12 6.82 7.79 9.05 10.61 12.27
</TABLE>
VA99SXD5-1 PRINTED IN U.S.A.
U029R0.FRM
<PAGE>
ANNUITY TABLES FOR
VARIABLE PAYMENTS,
BASED ON A 5% ASSUMED INVESTMENT RETURN
(CONTINUED)
FIFTH OPTION - JOINT AND LAST SURVIVOR ANNUITY WITH 10 YEAR PERIOD CERTAIN
<TABLE>
<CAPTION>
AGE AGE OF FEMALE
OF
MALE 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $4.35 $4.40 $4.44 $4.48 $4.52 $4.55 $4.57 $4.59 $4.60 $4.61 $4.62 $4.62
40 4.38 4.44 4.50 4.56 4.61 4.66 4.70 4.73 4.75 4.77 4.78 4.78
45 4.41 4.48 4.56 4.64 4.72 4.79 4.85 4.90 4.93 4.96 4.98 4.99
50 4.42 4.51 4.61 4.71 4.82 4.93 5.02 5.10 5.16 5.20 5.23 5.24
55 4.44 4.53 4.65 4.78 4.92 5.07 5.21 5.33 5.44 5.51 5.55 5.58
60 4.45 4.55 4.68 4.83 5.01 5.20 5.41 5.60 5.76 5.89 5.97 6.01
65 4.46 4.57 4.71 4.88 5.08 5.33 5.60 5.88 6.14 6.35 6.49 6.57
70 4.47 4.58 4.73 4.91 5.14 5.42 5.76 6.14 6.52 6.86 7.10 7.24
75 4.47 4.59 4.74 4.93 5.18 5.49 5.89 6.36 6.88 7.37 7.75 7.98
80 4.47 4.59 4.75 4.95 5.20 5.54 5.97 6.52 7.16 7.82 8.36 8.70
85 4.48 4.60 4.75 4.95 5.22 5.57 6.03 6.62 7.35 8.14 8.83 9.29
90 4.48 4.60 4.75 4.96 5.23 5.58 6.05 6.68 7.46 8.34 9.13 9.68
</TABLE>
SIXTH OPTION - PAYMENTS FOR A PERIOD CERTAIN
<TABLE>
<CAPTION>
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF
YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY
PAYMENTS PAYMENTS PAYMENTS PAYMENTS PAYMENTS
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10 $10.51 15 $7.82 20 $6.51 25 $5.76 30 $5.28
11 9.77 16 7.49 21 6.33 26 5.65
12 9.16 17 7.20 22 6.17 27 5.54
13 8.64 18 6.94 23 6.02 28 5.45
14 8.20 19 6.71 24 5.88 29 5.36
</TABLE>
VA99SXD5-1 PRINTED IN U.S.A.
U030R0.FRM
<PAGE>
ANNUITY TABLES FOR
VARIABLE PAYMENTS,
BASED ON A 6% ASSUMED INVESTMENT RETURN
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 APPLIED
Second and subsequent Annuity payments under a variable annuity are based on the
investment experience of a Separate Account and are not guaranteed as to fixed
dollar amount. Payments for any available Annuity Payment Frequency, Period
Certain, age, or combination of ages not shown will be quoted upon request. The
Second Option (Life Annuity with a Cash Refund) is not available with the 6%
Assumed Investment Return.
FIRST AND THIRD OPTIONS - SINGLE LIFE ANNUITIES
<TABLE>
<CAPTION>
MALE ANNUITANT FEMALE ANNUITANT
MONTHLY PAYMENTS GUARANTEED MONTHLY PAYMENTS GUARANTEED
AGE NONE 120 180 240 NONE 120 180 240
- -------- ----------- --------------- -------------- ---------------- --------------- -------------- --------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
35 $5.31 $5.30 $5.29 $5.27 $5.17 $5.17 $5.16 $5.15
40 5.46 5.45 5.43 5.40 5.28 5.27 5.26 5.25
45 5.67 5.64 5.60 5.56 5.43 5.42 5.40 5.38
50 5.94 5.89 5.83 5.75 5.63 5.60 5.58 5.54
51 6.00 5.94 5.88 5.80 5.67 5.65 5.62 5.58
52 6.07 6.00 5.93 5.84 5.72 5.70 5.66 5.62
53 6.14 6.07 5.99 5.89 5.78 5.75 5.71 5.66
54 6.22 6.14 6.05 5.94 5.84 5.80 5.76 5.70
55 6.30 6.21 6.11 5.99 5.90 5.86 5.81 5.75
56 6.38 6.28 6.18 6.04 5.96 5.92 5.87 5.80
57 6.47 6.36 6.24 6.09 6.03 5.98 5.92 5.85
58 6.57 6.45 6.32 6.14 6.10 6.05 5.98 5.90
59 6.67 6.54 6.39 6.19 6.18 6.12 6.05 5.95
60 6.78 6.64 6.47 6.25 6.27 6.20 6.12 6.01
61 6.90 6.74 6.55 6.30 6.36 6.28 6.19 6.06
62 7.03 6.84 6.63 6.36 6.46 6.37 6.26 6.12
63 7.17 6.96 6.71 6.41 6.56 6.46 6.34 6.18
64 7.32 7.07 6.80 6.47 6.67 6.56 6.42 6.24
65 7.48 7.20 6.88 6.52 6.79 6.66 6.51 6.30
66 7.66 7.33 6.97 6.57 6.92 6.77 6.59 6.36
67 7.84 7.46 7.06 6.62 7.06 6.89 6.69 6.42
68 8.04 7.60 7.15 6.67 7.21 7.01 6.78 6.48
69 8.25 7.74 7.24 6.71 7.37 7.14 6.88 6.54
70 8.48 7.89 7.33 6.75 7.54 7.28 6.97 6.59
75 9.86 8.68 7.73 6.91 8.67 8.08 7.47 6.83
80 11.81 9.47 8.04 7.00 10.35 8.99 7.89 6.96
</TABLE>
FOURTH OPTION - JOINT AND LAST SURVIVOR ANNUITY
<TABLE>
<CAPTION>
AGE AGE OF FEMALE
OF
MALE 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $5.05 $5.09 $5.13 $5.16 $5.19 $5.22 $5.25 $5.27 $5.28 $5.29 $5.30 $5.30
40 5.08 5.13 5.18 5.23 5.28 5.32 5.36 5.39 5.41 5.43 5.45 5.45
45 5.10 5.16 5.23 5.30 5.37 5.43 5.49 5.54 5.58 5.61 5.64 5.65
50 5.11 5.19 5.27 5.36 5.46 5.56 5.65 5.73 5.80 5.85 5.88 5.91
55 5.13 5.21 5.31 5.42 5.55 5.69 5.82 5.95 6.06 6.14 6.20 6.24
60 5.14 5.23 5.34 5.48 5.64 5.82 6.01 6.20 6.37 6.52 6.62 6.69
65 5.15 5.24 5.36 5.52 5.71 5.94 6.20 6.47 6.75 6.99 7.17 7.30
70 5.16 5.26 5.38 5.55 5.77 6.04 6.36 6.74 7.15 7.54 7.86 8.10
75 5.16 5.26 5.40 5.58 5.81 6.11 6.50 6.98 7.54 8.13 8.67 9.10
80 5.17 5.27 5.41 5.60 5.84 6.17 6.60 7.17 7.89 8.71 9.55 10.28
85 5.17 5.27 5.42 5.61 5.86 6.21 6.68 7.31 8.16 9.22 10.41 11.56
90 5.17 5.28 5.42 5.61 5.88 6.23 6.72 7.40 8.36 9.62 11.16 12.81
</TABLE>
VA99SXD6-1 PRINTED IN U.S.A.
U031R0.FRM
<PAGE>
ANNUITY TABLES FOR
VARIABLE PAYMENTS,
BASED ON A 6% ASSUMED INVESTMENT RETURN
(CONTINUED)
FIFTH OPTION - JOINT AND LAST SURVIVOR ANNUITY WITH 10 YEAR PERIOD CERTAIN
<TABLE>
<CAPTION>
AGE AGE OF FEMALE
OF
MALE 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $5.05 $5.09 $5.13 $5.16 $5.19 $5.22 $5.25 $5.26 $5.28 $5.29 $5.30 $5.30
40 5.08 5.13 5.18 5.23 5.28 5.32 5.36 5.39 5.41 5.43 5.44 5.44
45 5.10 5.16 5.23 5.30 5.37 5.43 5.49 5.54 5.58 5.61 5.62 5.63
50 5.11 5.19 5.27 5.36 5.46 5.56 5.65 5.72 5.79 5.83 5.86 5.88
55 5.13 5.21 5.31 5.42 5.55 5.69 5.82 5.94 6.04 6.12 6.17 6.19
60 5.14 5.23 5.34 5.47 5.63 5.82 6.01 6.19 6.36 6.48 6.56 6.61
65 5.15 5.24 5.36 5.52 5.71 5.93 6.19 6.46 6.71 6.92 7.07 7.14
70 5.16 5.25 5.38 5.55 5.76 6.03 6.35 6.71 7.08 7.42 7.66 7.79
75 5.16 5.26 5.40 5.57 5.80 6.10 6.47 6.93 7.43 7.91 8.29 8.51
80 5.17 5.27 5.41 5.59 5.83 6.15 6.56 7.09 7.71 8.35 8.88 9.21
85 5.17 5.27 5.41 5.60 5.84 6.17 6.62 7.19 7.90 8.67 9.34 9.78
90 5.17 5.27 5.41 5.60 5.85 6.19 6.64 7.25 8.01 8.86 9.63 10.16
</TABLE>
SIXTH OPTION - PAYMENTS FOR A PERIOD CERTAIN
<TABLE>
<CAPTION>
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF
YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY
PAYMENTS PAYMENTS PAYMENTS PAYMENTS PAYMENTS
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10 $10.97 15 $8.31 20 $7.04 25 $6.32 30 $5.87
11 10.24 16 7.99 21 6.86 26 6.21
12 9.63 17 7.71 22 6.70 27 6.11
13 9.12 18 7.46 23 6.56 28 6.02
14 8.69 19 7.24 24 6.43 29 5.94
</TABLE>
VA99SXD6-1 PRINTED IN U.S.A.
U032R0.FRM
<PAGE>
ANNUITY TABLES FOR
FIXED PAYMENTS,
BASED ON A 2 1/2% ASSUMED INVESTMENT RETURN
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 APPLIED
Fixed Dollar Annuity payments will not vary and are guaranteed as to fixed
dollar amount. Payments for any available Annuity Payment Frequency, Period
Certain, age, or combination of ages not shown will be quoted upon request. The
Second Option (Life Annuity with a Cash Refund) is not available with the 2 1/2%
Assumed Investment Return.
FIRST AND THIRD OPTIONS - SINGLE LIFE ANNUITIES
<TABLE>
<CAPTION>
- ----------------- ---------------------------------------------------------------
MONTHLY PAYMENTS GUARANTEED
AGE NONE 120 180 240
- ----------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
35 $2.97 $2.97 $2.96 $2.95
40 3.15 3.14 3.13 3.12
45 3.36 3.35 3.34 3.31
50 3.64 3.62 3.59 3.55
51 3.70 3.68 3.65 3.60
52 3.77 3.74 3.71 3.66
53 3.84 3.81 3.77 3.72
54 3.91 3.88 3.84 3.77
55 3.99 3.96 3.91 3.83
56 4.07 4.03 3.98 3.90
57 4.16 4.11 4.05 3.96
58 4.25 4.20 4.13 4.03
59 4.35 4.29 4.21 4.09
60 4.45 4.39 4.30 4.16
61 4.56 4.49 4.38 4.23
62 4.68 4.60 4.47 4.30
63 4.81 4.71 4.57 4.36
64 4.94 4.83 4.67 4.44
65 5.08 4.95 4.76 4.51
66 5.24 5.08 4.87 4.58
67 5.40 5.22 4.97 4.64
68 5.58 5.36 5.08 4.71
69 5.76 5.51 5.19 4.77
70 5.96 5.66 5.29 4.83
75 7.20 6.53 5.82 5.07
80 8.98 7.47 6.24 5.21
</TABLE>
FOURTH OPTION - JOINT AND LAST SURVIVOR ANNUITY
<TABLE>
<CAPTION>
AGE OF AGE OF SECOND ANNUITANT
FIRST
ANNUI-
TANT 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $2.74 $2.80 $2.84 $2.88 $2.91 $2.93 $2.94 $2.95 $2.96 $2.96 $2.97 $2.97
40 2.80 2.87 2.94 2.99 3.03 3.07 3.09 3.11 3.13 3.13 3.14 3.14
45 2.84 2.94 3.02 3.10 3.18 3.23 3.28 3.30 3.33 3.34 3.35 3.36
50 2.88 2.99 3.10 3.22 3.32 3.41 3.48 3.53 3.57 3.60 3.61 3.63
55 2.91 3.03 3.18 3.32 3.46 3.60 3.72 3.80 3.87 3.92 3.95 3.96
60 2.93 3.07 3.23 3.41 3.60 3.79 3.97 4.12 4.24 4.32 4.38 4.41
65 2.94 3.09 3.28 3.48 3.72 3.97 4.22 4.46 4.66 4.82 4.93 5.00
70 2.95 3.11 3.30 3.53 3.80 4.12 4.46 4.81 5.14 5.42 5.63 5.77
75 2.96 3.13 3.33 3.57 3.87 4.24 4.66 5.14 5.64 6.11 6.50 6.78
80 2.96 3.13 3.34 3.60 3.92 4.32 4.82 5.42 6.11 6.82 7.49 8.03
85 2.97 3.14 3.35 3.61 3.95 4.38 4.93 5.63 6.50 7.49 8.52 9.46
90 2.97 3.14 3.36 3.63 3.96 4.41 5.00 5.77 6.78 8.03 9.46 10.91
</TABLE>
VA99USX2.5-1 PRINTED IN U.S.A.
U033R0.FRM
<PAGE>
ANNUITY TABLES FOR
FIXED PAYMENTS,
BASED ON A 2 1/2% ASSUMED INVESTMENT RETURN
(CONTINUED)
FIFTH OPTION - JOINT AND LAST SURVIVOR ANNUITY WITH 10 YEAR PERIOD CERTAIN
<TABLE>
<CAPTION>
AGE OF AGE OF SECOND ANNUITANT
FIRST
ANNUI-
TANT 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $2.74 $2.80 $2.84 $2.88 $2.91 $2.93 $2.94 $2.95 $2.96 $2.96 $2.97 $2.97
40 2.80 2.87 2.94 2.99 3.03 3.07 3.09 3.11 3.13 3.13 3.13 3.14
45 2.84 2.94 3.02 3.10 3.18 3.23 3.28 3.30 3.32 3.34 3.35 3.35
50 2.88 2.99 3.10 3.22 3.32 3.41 3.48 3.53 3.57 3.59 3.61 3.61
55 2.91 3.03 3.18 3.32 3.46 3.60 3.71 3.80 3.87 3.91 3.94 3.95
60 2.93 3.07 3.23 3.41 3.60 3.78 3.96 4.11 4.23 4.31 4.35 4.37
65 2.94 3.09 3.28 3.48 3.71 3.96 4.21 4.45 4.65 4.79 4.87 4.92
70 2.95 3.11 3.30 3.53 3.80 4.11 4.45 4.79 5.10 5.35 5.52 5.61
75 2.96 3.13 3.32 3.57 3.87 4.23 4.65 5.10 5.56 5.96 6.25 6.41
80 2.96 3.13 3.34 3.59 3.91 4.31 4.79 5.35 5.96 6.54 6.99 7.27
85 2.97 3.13 3.35 3.61 3.94 4.35 4.87 5.52 6.25 6.99 7.61 8.01
90 2.97 3.14 3.35 3.61 3.95 4.37 4.92 5.61 6.41 7.27 8.01 8.51
</TABLE>
SIXTH OPTION - PAYMENTS FOR A PERIOD CERTAIN
<TABLE>
<CAPTION>
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF
YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY
PAYMENTS PAYMENTS PAYMENTS PAYMENTS PAYMENTS
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10 $9.39 15 $6.64 20 $5.27 25 $4.46 30 $3.93
11 8.64 16 6.30 21 5.08 26 4.34
12 8.02 17 6.00 22 4.90 27 4.22
13 7.49 18 5.73 23 4.74 28 4.12
14 7.03 19 5.49 24 4.60 29 4.02
</TABLE>
VA99USX2.5-1 PRINTED IN U.S.A.
U034R0.FRM
<PAGE>
ANNUITY TABLES FOR
VARIABLE PAYMENTS,
BASED ON A 3% ASSUMED INVESTMENT RETURN
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 APPLIED
The second and subsequent annuity payments under a variable annuity are based on
the investment experience of a Separate Account and are not guaranteed as to
fixed dollar amount. Payments for any available Annuity Payment Frequency,
Period Certain, age, or combination of ages not shown will be quoted upon
request. The Second Option (Life Annuity with a Cash Refund) is not available
with the 3% Assumed Investment Return.
FIRST AND THIRD OPTIONS - SINGLE LIFE ANNUITIES
<TABLE>
<CAPTION>
- ----------------- ---------------------------------------------------------------
MONTHLY PAYMENTS GUARANTEED
AGE NONE 120 180 240
- ----------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
35 $3.27 $3.26 $3.26 $3.25
40 3.44 3.43 3.42 3.41
45 3.65 3.64 3.62 3.60
50 3.92 3.90 3.87 3.83
51 3.98 3.96 3.93 3.88
52 4.05 4.02 3.99 3.93
53 4.12 4.09 4.05 3.99
54 4.19 4.16 4.11 4.05
55 4.27 4.23 4.18 4.11
56 4.35 4.31 4.25 4.17
57 4.44 4.39 4.33 4.23
58 4.53 4.47 4.40 4.29
59 4.62 4.56 4.48 4.36
60 4.73 4.66 4.57 4.43
61 4.84 4.76 4.65 4.49
62 4.95 4.87 4.74 4.56
63 5.08 4.98 4.84 4.63
64 5.21 5.09 4.93 4.70
65 5.36 5.22 5.03 4.77
66 5.51 5.35 5.13 4.83
67 5.67 5.48 5.24 4.90
68 5.85 5.63 5.34 4.96
69 6.03 5.77 5.45 5.03
70 6.23 5.93 5.55 5.08
75 7.47 6.79 6.07 5.32
80 9.25 7.72 6.48 5.45
</TABLE>
FOURTH OPTION - JOINT AND LAST SURVIVOR ANNUITY
<TABLE>
<CAPTION>
AGE OF AGE OF SECOND ANNUITANT
FIRST
ANNUI-
TANT 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $3.05 $3.10 $3.14 $3.18 $3.21 $3.22 $3.24 $3.25 $3.26 $3.26 $3.26 $3.27
40 3.10 3.17 3.23 3.29 3.33 3.36 3.39 3.41 3.42 3.43 3.43 3.43
45 3.14 3.23 3.32 3.40 3.47 3.52 3.56 3.59 3.62 3.63 3.64 3.64
50 3.18 3.29 3.40 3.51 3.61 3.70 3.77 3.82 3.86 3.88 3.90 3.91
55 3.21 3.33 3.47 3.61 3.76 3.89 4.00 4.09 4.16 4.20 4.23 4.25
60 3.22 3.36 3.52 3.70 3.89 4.08 4.25 4.40 4.52 4.60 4.65 4.69
65 3.24 3.39 3.56 3.77 4.00 4.25 4.51 4.75 4.95 5.10 5.21 5.27
70 3.25 3.41 3.59 3.82 4.09 4.40 4.75 5.11 5.44 5.71 5.92 6.05
75 3.26 3.42 3.62 3.86 4.16 4.52 4.95 5.44 5.94 6.41 6.79 7.06
80 3.26 3.43 3.63 3.88 4.20 4.60 5.10 5.71 6.41 7.13 7.79 8.32
85 3.26 3.43 3.64 3.90 4.23 4.65 5.21 5.92 6.79 7.79 8.83 9.76
90 3.27 3.43 3.64 3.91 4.25 4.69 5.27 6.05 7.06 8.32 9.76 11.22
</TABLE>
VA99UST3-1 PRINTED IN U.S.A.
U035R0.FRM
<PAGE>
ANNUITY TABLES FOR
VARIABLE PAYMENTS,
BASED ON A 3% ASSUMED INVESTMENT RETURN
(CONTINUED)
FIFTH OPTION - JOINT AND LAST SURVIVOR ANNUITY WITH 10 YEAR PERIOD CERTAIN
<TABLE>
<CAPTION>
AGE OF AGE OF SECOND ANNUITANT
FIRST
ANNUI-
TANT 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $3.05 $3.10 $3.14 $3.18 $3.21 $3.22 $3.24 $3.25 $3.26 $3.26 $3.26 $3.26
40 3.10 3.17 3.23 3.29 3.33 3.36 3.39 3.40 3.42 3.42 3.43 3.43
45 3.14 3.23 3.32 3.40 3.47 3.52 3.56 3.59 3.61 3.63 3.63 3.64
50 3.18 3.29 3.40 3.51 3.61 3.70 3.77 3.82 3.85 3.88 3.89 3.90
55 3.21 3.33 3.47 3.61 3.76 3.89 4.00 4.09 4.15 4.19 4.21 4.22
60 3.22 3.36 3.52 3.70 3.89 4.08 4.25 4.40 4.51 4.58 4.62 4.65
65 3.24 3.39 3.56 3.77 4.00 4.25 4.50 4.74 4.93 5.06 5.15 5.19
70 3.25 3.40 3.59 3.82 4.09 4.40 4.74 5.08 5.39 5.63 5.79 5.88
75 3.26 3.42 3.61 3.85 4.15 4.51 4.93 5.39 5.85 6.25 6.52 6.68
80 3.26 3.42 3.63 3.88 4.19 4.58 5.06 5.63 6.25 6.82 7.26 7.53
85 3.26 3.43 3.63 3.89 4.21 4.62 5.15 5.79 6.52 7.26 7.87 8.26
90 3.26 3.43 3.64 3.90 4.22 4.65 5.19 5.88 6.68 7.53 8.26 8.76
</TABLE>
SIXTH OPTION - PAYMENTS FOR A PERIOD CERTAIN
<TABLE>
<CAPTION>
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF
YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY
PAYMENTS PAYMENTS PAYMENTS PAYMENTS PAYMENTS
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10 $9.61 15 $6.87 20 $5.51 25 $4.71 30 $4.18
11 8.86 16 6.53 21 5.32 26 4.59
12 8.24 17 6.23 22 5.15 27 4.47
13 7.71 18 5.96 23 4.99 28 4.37
14 7.26 19 5.73 24 4.84 29 4.27
</TABLE>
VA99UST3-1 PRINTED IN U.S.A.
U036R0.FRM
<PAGE>
ANNUITY TABLES FOR
VARIABLE PAYMENTS,
BASED ON A 5% ASSUMED INVESTMENT RETURN
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 APPLIED
Second and subsequent Annuity payments under a variable annuity are based on the
investment experience of a Separate Account and are not guaranteed as to fixed
dollar amount. Payments for any available Annuity Payment Frequency, Period
Certain, age, or combination of ages not shown will be quoted upon request.
FIRST, SECOND, AND THIRD OPTIONS - SINGLE LIFE ANNUITIES
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
MONTHLY PAYMENTS GUARANTEED
AGE NONE 120 180 240 CASH REFUND
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
35 $4.56 $4.55 $4.54 $4.53 $4.53
40 4.70 4.69 4.68 4.66 4.66
45 4.89 4.87 4.85 4.82 4.82
50 5.14 5.11 5.07 5.02 5.03
51 5.20 5.16 5.12 5.06 5.08
52 5.26 5.22 5.17 5.11 5.13
53 5.32 5.28 5.23 5.16 5.19
54 5.39 5.34 5.29 5.21 5.25
55 5.46 5.41 5.35 5.26 5.31
56 5.54 5.48 5.41 5.31 5.37
57 5.62 5.56 5.48 5.37 5.44
58 5.71 5.64 5.55 5.43 5.51
59 5.81 5.72 5.62 5.48 5.58
60 5.91 5.81 5.70 5.54 5.66
61 6.01 5.91 5.78 5.60 5.75
62 6.13 6.01 5.86 5.66 5.83
63 6.25 6.11 5.95 5.72 5.93
64 6.38 6.23 6.04 5.79 6.03
65 6.52 6.34 6.13 5.85 6.13
66 6.68 6.47 6.22 5.91 6.24
67 6.84 6.60 6.32 5.97 6.35
68 7.01 6.73 6.41 6.02 6.48
69 7.20 6.88 6.51 6.08 6.61
70 7.40 7.02 6.61 6.13 6.74
75 8.65 7.84 7.08 6.34 7.54
80 10.45 8.73 7.46 6.45 8.59
</TABLE>
FOURTH OPTION - JOINT AND LAST SURVIVOR ANNUITY
<TABLE>
<CAPTION>
AGE OF AGE OF SECOND ANNUITANT
FIRST
ANNUI-
TANT 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $4.36 $4.40 $4.43 $4.46 $4.48 $4.50 $4.52 $4.53 $4.54 $4.55 $4.55 $4.55
40 4.40 4.45 4.50 4.54 4.58 4.61 4.64 4.66 4.67 4.68 4.69 4.70
45 4.43 4.50 4.57 4.63 4.69 4.74 4.79 4.82 4.84 4.86 4.87 4.88
50 4.46 4.54 4.63 4.73 4.81 4.89 4.96 5.02 5.06 5.09 5.11 5.12
55 4.48 4.58 4.69 4.81 4.94 5.06 5.17 5.26 5.33 5.38 5.41 5.43
60 4.50 4.61 4.74 4.89 5.06 5.23 5.39 5.54 5.66 5.75 5.81 5.85
65 4.52 4.64 4.79 4.96 5.17 5.39 5.63 5.86 6.07 6.23 6.34 6.42
70 4.53 4.66 4.82 5.02 5.26 5.54 5.86 6.20 6.53 6.81 7.03 7.18
75 4.54 4.67 4.84 5.06 5.33 5.66 6.07 6.53 7.02 7.49 7.88 8.17
80 4.55 4.68 4.86 5.09 5.38 5.75 6.23 6.81 7.49 8.20 8.87 9.41
85 4.55 4.69 4.87 5.11 5.41 5.81 6.34 7.03 7.88 8.87 9.90 10.85
90 4.55 4.70 4.88 5.12 5.43 5.85 6.42 7.18 8.17 9.41 10.85 12.30
</TABLE>
VA99UST5-1 PRINTED IN U.S.A.
U037R0.FRM
<PAGE>
ANNUITY TABLES FOR
VARIABLE PAYMENTS,
BASED ON A 5% ASSUMED INVESTMENT RETURN
(CONTINUED)
FIFTH OPTION - JOINT AND LAST SURVIVOR ANNUITY WITH 10 YEAR PERIOD CERTAIN
<TABLE>
<CAPTION>
AGE OF AGE OF SECOND ANNUITANT
FIRST
ANNUI-
TANT 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $4.36 $4.40 $4.43 $4.46 $4.48 $4.50 $4.52 $4.53 $4.54 $4.55 $4.55 $4.55
40 4.40 4.45 4.50 4.54 4.58 4.61 4.64 4.66 4.67 4.68 4.69 4.69
45 4.43 4.50 4.57 4.63 4.69 4.74 4.78 4.82 4.84 4.86 4.87 4.87
50 4.46 4.54 4.63 4.73 4.81 4.89 4.96 5.01 5.05 5.08 5.09 5.10
55 4.48 4.58 4.69 4.81 4.94 5.06 5.16 5.25 5.32 5.36 5.39 5.40
60 4.50 4.61 4.74 4.89 5.06 5.22 5.39 5.53 5.64 5.72 5.77 5.80
65 4.52 4.64 4.78 4.96 5.16 5.39 5.62 5.85 6.04 6.18 6.27 6.31
70 4.53 4.66 4.82 5.01 5.25 5.53 5.85 6.17 6.47 6.71 6.88 6.97
75 4.54 4.67 4.84 5.05 5.32 5.64 6.04 6.47 6.91 7.30 7.57 7.74
80 4.55 4.68 4.86 5.08 5.36 5.72 6.18 6.71 7.30 7.85 8.27 8.54
85 4.55 4.69 4.87 5.09 5.39 5.77 6.27 6.88 7.57 8.27 8.85 9.23
90 4.55 4.69 4.87 5.10 5.40 5.80 6.31 6.97 7.74 8.54 9.23 9.70
</TABLE>
SIXTH OPTION - PAYMENTS FOR A PERIOD CERTAIN
<TABLE>
<CAPTION>
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF
YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY
PAYMENTS PAYMENTS PAYMENTS PAYMENTS PAYMENTS
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10 $10.51 15 $7.82 20 $6.51 25 $5.76 30 $5.28
11 9.77 16 7.49 21 6.33 26 5.65
12 9.16 17 7.20 22 6.17 27 5.54
13 8.64 18 6.94 23 6.02 28 5.45
14 8.20 19 6.71 24 5.88 29 5.36
</TABLE>
VA99UST5-1 PRINTED IN U.S.A.
U038R0.FRM
<PAGE>
ANNUITY TABLES FOR
VARIABLE PAYMENTS,
BASED ON A 6% ASSUMED INVESTMENT RETURN
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 APPLIED
Second and subsequent Annuity payments under a variable annuity are based on the
investment experience of a Separate Account and are not guaranteed as to fixed
dollar amount. Payments for any available Annuity Payment Frequency, Period
Certain, age, or combination of ages not shown will be quoted upon request. The
Second Option (Life Annuity with a Cash Refund) is not available with the 6%
Assumed Investment Return.
FIRST AND THIRD OPTIONS - SINGLE LIFE ANNUITIES
<TABLE>
<CAPTION>
- ----------------- ---------------------------------------------------------------
MONTHLY PAYMENTS GUARANTEED
AGE NONE 120 180 240
- ----------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
35 $5.24 $5.23 $5.23 $5.21
40 5.37 5.36 5.35 5.33
45 5.55 5.53 5.50 5.47
50 5.78 5.75 5.70 5.65
51 5.84 5.80 5.75 5.69
52 5.90 5.85 5.80 5.73
53 5.96 5.91 5.85 5.78
54 6.03 5.97 5.91 5.82
55 6.10 6.03 5.96 5.87
56 6.17 6.10 6.02 5.92
57 6.25 6.17 6.09 5.97
58 6.33 6.25 6.15 6.02
59 6.43 6.33 6.22 6.08
60 6.52 6.42 6.30 6.13
61 6.63 6.51 6.37 6.19
62 6.74 6.61 6.45 6.25
63 6.86 6.71 6.53 6.30
64 6.99 6.82 6.61 6.36
65 7.13 6.93 6.70 6.42
66 7.28 7.05 6.79 6.47
67 7.44 7.18 6.88 6.53
68 7.62 7.31 6.97 6.58
69 7.80 7.45 7.07 6.63
70 8.00 7.59 7.16 6.68
75 9.25 8.39 7.61 6.88
80 11.06 9.24 7.97 6.98
</TABLE>
FOURTH OPTION - JOINT AND LAST SURVIVOR ANNUITY
<TABLE>
<CAPTION>
AGE OF AGE OF SECOND ANNUITANT
FIRST
ANNUI-
TANT 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $5.06 $5.09 $5.12 $5.14 $5.17 $5.19 $5.20 $5.21 $5.22 $5.23 $5.23 $5.24
40 5.09 5.13 5.17 5.21 5.25 5.28 5.31 5.33 5.34 5.35 5.36 5.37
45 5.12 5.17 5.23 5.29 5.35 5.40 5.44 5.47 5.50 5.52 5.53 5.54
50 5.14 5.21 5.29 5.37 5.45 5.53 5.60 5.65 5.69 5.72 5.75 5.76
55 5.17 5.25 5.35 5.45 5.57 5.68 5.78 5.87 5.94 6.00 6.04 6.06
60 5.19 5.28 5.40 5.53 5.68 5.84 6.00 6.14 6.26 6.35 6.42 6.46
65 5.20 5.31 5.44 5.60 5.78 6.00 6.22 6.45 6.65 6.81 6.93 7.01
70 5.21 5.33 5.47 5.65 5.87 6.14 6.45 6.78 7.10 7.38 7.60 7.76
75 5.22 5.34 5.50 5.69 5.94 6.26 6.65 7.10 7.58 8.05 8.44 8.74
80 5.23 5.35 5.52 5.72 6.00 6.35 6.81 7.38 8.05 8.75 9.42 9.97
85 5.23 5.36 5.53 5.75 6.04 6.42 6.93 7.60 8.44 9.42 10.45 11.40
90 5.24 5.37 5.54 5.76 6.06 6.46 7.01 7.76 8.74 9.97 11.40 12.85
</TABLE>
VA99UST6-1 PRINTED IN U.S.A.
U039R0.FRM
<PAGE>
ANNUITY TABLES FOR
VARIABLE PAYMENTS,
BASED ON A 6% ASSUMED INVESTMENT RETURN
(CONTINUED)
FIFTH OPTION - JOINT AND LAST SURVIVOR ANNUITY WITH 10 YEAR PERIOD CERTAIN
<TABLE>
<CAPTION>
AGE OF AGE OF SECOND ANNUITANT
FIRST
ANNUI-
TANT 35 40 45 50 55 60 65 70 75 80 85 90
-------- -------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $5.06 $5.09 $5.12 $5.14 $5.17 $5.18 $5.20 $5.21 $5.22 $5.23 $5.23 $5.23
40 5.09 5.13 5.17 5.21 5.25 5.28 5.30 5.32 5.34 5.35 5.36 5.36
45 5.12 5.17 5.23 5.29 5.35 5.39 5.43 5.47 5.49 5.51 5.52 5.52
50 5.14 5.21 5.29 5.37 5.45 5.53 5.59 5.65 5.69 5.71 5.73 5.74
55 5.17 5.25 5.35 5.45 5.57 5.68 5.78 5.87 5.93 5.98 6.01 6.02
60 5.18 5.28 5.39 5.53 5.68 5.83 5.99 6.13 6.24 6.32 6.37 6.40
65 5.20 5.30 5.43 5.59 5.78 5.99 6.21 6.43 6.62 6.76 6.85 6.90
70 5.21 5.32 5.47 5.65 5.87 6.13 6.43 6.74 7.04 7.28 7.44 7.53
75 5.22 5.34 5.49 5.69 5.93 6.24 6.62 7.04 7.46 7.84 8.12 8.28
80 5.23 5.35 5.51 5.71 5.98 6.32 6.76 7.28 7.84 8.38 8.80 9.06
85 5.23 5.36 5.52 5.73 6.01 6.37 6.85 7.44 8.12 8.80 9.36 9.72
90 5.23 5.36 5.52 5.74 6.02 6.40 6.90 7.53 8.28 9.06 9.72 10.18
</TABLE>
SIXTH OPTION - PAYMENTS FOR A PERIOD CERTAIN
<TABLE>
<CAPTION>
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF NO. OF AMOUNT OF
YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY YEARS MONTHLY
PAYMENTS PAYMENTS PAYMENTS PAYMENTS PAYMENTS
- ---------- ------------ ------- ------------ ------- ------------ ------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10 $10.97 15 $8.31 20 $7.04 25 $6.32 30 $5.87
11 10.24 16 7.99 21 6.86 26 6.21
12 9.63 17 7.71 22 6.70 27 6.11
13 9.12 18 7.46 23 6.56 28 6.02
14 8.69 19 7.24 24 6.43 29 5.94
</TABLE>
VA99UST6-1 PRINTED IN U.S.A.
U040R0.FRM
<PAGE>
INDIVIDUAL FLEXIBLE PREMIUM
VARIABLE ANNUITY CONTRACT
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
P.O. Box 2999
Hartford, Connecticut 06104-2999
ADMINISTRATIVE OFFICE:
Attn: Individual Annuity Services
P.O. Box 5085
Hartford, CT 06102-5085
[LOGO]
LA-VAXC99 PRINTED IN U.S.A.
R700R0.FRM
<PAGE>
EXHIBIT 9
<PAGE>
[LOGO]
[HARTFORD LIFE]
December 1, 1999
LYNDA GODKIN
SENIOR VICE PRESIDENT, GENERAL COUNSEL &
CORPORATE SECRETARY
Board of Directors
Hartford Life and Annuity Insurance Company
200 Hopmeadow Street
Simsbury, CT 06089
RE: HARTFORD LIFE AND ANNUITY INSURANCE COMPANY SEPARATE ACCOUNT SEVEN
INITIAL FILING
Dear Sir/Madam:
I have acted as General Counsel to Hartford Life and Annuity Insurance Company
(the "Company"), a Connecticut insurance company, and Hartford Life and Annuity
Insurance Company Separate Account One (the "Account") in Connecticut with the
registration of an indefinite amount of securities in the form of flexible
premium variable annuity insurance contracts (the "Contracts") with the
Securities and Exchange Commission under the Securities Act of 1933, as amended.
I have examined such documents (including the Form N-4 Registration Statement)
and reviewed such questions of law as I considered necessary and appropriate,
and on the basis of such examination and review, it is my opinion that:
1. The Company is a corporation duly organized and validly existing as a stock
life insurance company under the laws of the State of Connecticut and is
duly authorized to by the Insurance Department of the State of Connecticut
to issue the Contacts.
2. The 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 Contracts, that portion of the assets
of the Account equal to the reserves and other contract liabilities with
respect to the Account will not be chargeable with liabilities arising out
of any other business that the Company may conduct.
4. The Contracts, when issued as contemplated by the Form N-4 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 N-4
Registration Statement for the Contracts and the Account.
Sincerely yours,
/s/ Lynda Godkin
Lynda Godkin
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
POWER OF ATTORNEY
-----------------
Gregory A. Boyko
David T. Foy
Lynda Godkin
Thomas M. Marra
Lowndes A. Smith
David M. Znamierowski
do hereby jointly and severally authorize Lynda Godkin, Christine Repasy,
Marianne O'Doherty, Thomas S. Clark and Brian Lord to sign as their agent,
any Registration Statement, pre-effective amendment, post-effective amendment
and any application for exemptive relief of the Hartford Life and Annuity
Insurance Company under the Securities Act of 1933 and/or the Investment
Company Act of 1940, and do hereby ratify any 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/ Gregory A. Boyko Dated as of January 15, 1999
- ------------------------------
Gregory A. Boyko
/s/ David T. Foy Dated as of January 15, 1999
- ------------------------------
David T. Foy
/s/ Lynda Godkin Dated as of January 15, 1999
- ------------------------------
Lynda Godkin
/s/ Thomas M. Marra Dated as of January 15, 1999
- ------------------------------
Thomas M. Marra
/s/ Lowndes A. Smith Dated as of January 15, 1999
- ------------------------------
Lowndes A. Smith
/s/ David M. Znamierowski Dated as of January 15, 1999
- ------------------------------
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 & ACCIDENT INSURANCE COMPANY
(CONNECTICUT)
|
|
|
-------------------------------------------------------------------------------------------------------------------------
| | | | | | | | |
HARTFORD LIFE | | | | | | HLIC PLANCO
INTERNATIONAL LTD. | | | | | | CANADA FINANCIAL
(CONNECTICUT) | | | | | | HOLDINGS, INC. SERVICES,
| | | | | | | (CANADA) INCORPORATED
| | | | | | | | (PENNSYLVANIA)
| | | | | | | | |
| | ALPINE LIFE HARTFORD FINANCIAL HARTFORD LIFE HARTFORD AMERICAN | |
| | INSURANCE SERVICES LIFE INSURANCE COMPANY FINANCIAL MATURITY LIFE | |
| | COMPANY INSURANCE CO. (CONNECTICUT) SERVICES, LLC INSURANCE COMPANY | |
| | (CONNECTICUT) (CONNECTICUT) | (DELAWARE) (CONNECTICUT) | PLANCO, INC.
| | | | | | (PENNSYLVANIA)
| | ------------------------------------- | AML FINANCIAL, INC. |
HARTFORD CALMA | | | | | (CONNECTICUT) |
COMPANY | ROYAL LIFE HARTFORD HARTFORD | HARTFORD
(FLORIDA) | INSURANCE INTERNATIONAL LIFE AND | LIFE INSURANCE
| COMPANY LIFE REASSURANCE ANNUITY INSURANCE | COMPANY
| OF AMERICA CORP. COMPANY | OF CANADA
|(CONNECTICUT) (CONNECTICUT) (CONNECTICUT) | (CANADA)
| | |
| | |
| ITT HARTFORD |
| LIFE, LTD. |
| (BERMUDA) |
| |
| |
----------| ---------------------------------------------------------------------------------------------
| | | | | |
INTERNATIONAL MS FUND HL INVESTMENT HARTFORD HARTFORD SECURITIES HARTFORD COMP. EMP.
CORPORATE AMERICA 1993-K ADVISORS, LLC EQUITY SALES DISTRIBUTION BENEFITS SERVICE
MARKETING GROUP, INC. SPE, INC. (CONNECTICUT) COMPANY, INC. COMPANY, INC. COMPANY
(CONNECTICUT) (DELAWARE) | (CONNECTICUT) (CONNECTICUT) (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 LIFE
| | -------INTERNATIONAL LTD.
| | | (CONNECTICUT)
| | | |
| | | ITT HARTFORD
| | | ----SUDAMERICANA
| | | | HOLDING S.A.
| | | | (ARGENTINA)
| | | |------------------------------------------------------
| | | | | |
| | | | HARTFORD GALICIA INSTITUTO DE
| | | | SEGUROS VIDA COMPANIA SALTA COMPANIA DE
| | | |--------DE VIDA DE SEGUROS S.A. SEGUROS DE VIDA S.A.
| | | | (URUGUAY) (ARGENTINA) (ARGENTINA)
| | | |
| | ICATU | | ITT HARTFORD
| | HARTFORD | |-----SEGUROS DE VIDA
| | SEGUROS S.A.----------| | (ARGENTINA)
| | (BRAZIL) | |
| | | | |
| | | | | ITT 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) | |
| |
----------------- |
| |
CAB |--------- U.O.R., S.A.
CORPORATION (ARGENTINA)
(BRITISH VIRGIN ISLANDS)
</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 --ITT ERCOS |
| S.A. INSURANCE CO., N.V. |--- EDINBURGH DE SEGUROS Y |
| ZWOLSCHE ALGEMEENE (FRANCE) (BELGIUM) | INSURANCE CO., LTD. REASEGUROS S.A.|
|----SCHADEVERZEKERING | | (U.K.) (SPAIN) |
--------| N.V.----------------------------------- | | | |
| | (NETHERLANDS) | | | | |
Z.A. | | | | EXCESS INSURANCE |
- --VERZEKERINGEN | | | | COMPANY LTD. |
| 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>
