<PAGE>
OMNIFLEX-TM-
ICMG SECULAR TRUST SEPARATE ACCOUNT
HARTFORD LIFE INSURANCE COMPANY
P.O. BOX 2999
HARTFORD, CONNECTICUT 06104-2999
[LOGO] TELEPHONE: 1-800-861-1408
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This Prospectus describes OmniFlex-TM-, a group flexible premium deferred
variable annuity contract (the "Group Annuity") with individually allocated
certificates (the "Certificates," and each individually the "Certificate")
issued by Hartford Life Insurance Company ("Hartford"). The Certificates are
offered to employee-participants of nonqualified deferred compensation and
supplemental executive retirement plans. Premium Payments for each Certificate
will be allocated to the subaccounts (the "Divisions") of ICMG Secular Trust
Separate Account (the "Separate Account").
There are currently twenty-four Divisions available under the Certificate. The
underlying investment portfolios (the "Portfolios") for the Divisions are shares
of Class IA of the Hartford Capital Appreciation HLS Fund, Inc. ("Hartford
Capital Appreciation Fund"), shares of Class IA of the Hartford Bond HLS Fund,
Inc. ("Hartford Bond Fund") and shares of Class IA of the Hartford Money Market
HLS Fund, Inc. ("Hartford Money Market Fund"); the Limited Maturity Bond
Portfolio, the Balanced Portfolio and the Partners Portfolio of Neuberger &
Berman Advisers Management Trust; the VIP High Income Portfolio and the VIP
Equity-Income Portfolio of Variable Insurance Products Fund; the VIP II Asset
Manager Portfolio of Variable Insurance Products Fund II; the Alger American
Small Capitalization Portfolio and Alger American Growth Portfolio of The Alger
American Fund; the J.P. Morgan Bond Portfolio, the J.P. Morgan Equity Portfolio,
the J.P. Morgan Small Company Portfolio and the J.P. Morgan International
Opportunities Portfolio of J.P. Morgan Series Trust II; the Fixed Income
Portfolio, the High Yield Portfolio, the Equity Growth Portfolio, the Value
Portfolio, the Global Equity Portfolio and the Emerging Markets Equity Portfolio
of Morgan Stanley Universal Funds, Inc.; and the EAFE-Registered Trademark-
Equity Index Fund, the Equity 500 Index Fund and the Small Cap Index Fund of BT
Insurance Funds Trust.
This Prospectus sets forth the information concerning the Separate Account that
prospective investors should know before investing and should be kept for future
reference. Additional information about the Separate Account has been filed with
the Securities and Exchange Commission and is available without charge upon
request. To obtain the Statement of Additional Information dated May 1, 1998,
send a written request to International Corporate Marketing Group, Attn: Group
Annuity Operations, 100 Campus Drive, Suite 250, Florham Park, NJ 07932. The
Table of Contents of the Statement of Additional Information may be found on
page 25 of this Prospectus. The Statement of Additional Information is
incorporated by reference into this Prospectus.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
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THIS PROSPECTUS IS VALID ONLY WHEN ACCOMPANIED BY CURRENT PROSPECTUSES FOR THE
PORTFOLIOS. ALL PROSPECTUSES SHOULD BE RETAINED FOR FUTURE REFERENCE.
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PROSPECTUS DATED: MAY 1, 1998
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2 HARTFORD LIFE INSURANCE COMPANY
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TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
GLOSSARY OF SPECIAL TERMS............................................. 3
FEE TABLE............................................................. 5
SUMMARY............................................................... 7
FINANCIAL INFORMATION................................................. 8
PERFORMANCE RELATED INFORMATION....................................... 8
THE COMPANY........................................................... 8
THE SEPARATE ACCOUNT.................................................. 8
THE FUNDS............................................................. 9
THE PORTFOLIOS........................................................ 11
THE CERTIFICATE....................................................... 13
OPERATION OF THE CERTIFICATE.......................................... 13
Premium Payments.................................................... 13
Right to Examine Period............................................. 14
Allocation of Premium Payments...................................... 14
Value of Accumulation Units......................................... 14
Investment Value.................................................... 14
Transfers Among Divisions........................................... 14
Asset Rebalancing................................................... 15
Surrenders and Partial Withdrawals.................................. 15
Processing of Transactions.......................................... 16
CHARGES UNDER THE CERTIFICATE......................................... 16
Sales Expenses...................................................... 16
Mortality and Expense Risk Charge................................... 16
Administrative Expense Charge....................................... 17
Premium Tax Charge.................................................. 17
Federal Tax Charge.................................................. 17
DEATH BENEFIT......................................................... 17
ANNUITY BENEFITS...................................................... 18
Annuity Options..................................................... 18
Annuity Unit Valuation.............................................. 19
Determination of Payment Amount..................................... 19
FEDERAL TAX CONSIDERATIONS............................................ 19
A. General.......................................................... 19
B. Taxation of Hartford and the Separate Account.................... 19
C. Taxation of Annuities -- General Provisions Affecting Purchasers
Other Than Qualified Retirement Plans.............................. 20
D. Federal Income Tax Withholding................................... 22
E. Annuity Purchases by Nonresident Aliens and Foreign
Corporations....................................................... 23
GENERAL MATTERS....................................................... 23
Additions, Deletions or Substitutions of Investments................ 23
Assignment.......................................................... 23
Modification........................................................ 23
Misstatement of Age................................................. 23
Delay of Payments................................................... 23
Voting Rights....................................................... 23
Experience Credit................................................... 24
Distribution of the Group Annuity................................... 24
Safekeeping of Separate Account Assets.............................. 24
Legal Proceedings................................................... 24
Legal Counsel....................................................... 24
Experts............................................................. 24
Additional Information.............................................. 24
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION.......... 25
</TABLE>
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 3
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GLOSSARY OF SPECIAL TERMS
ACCUMULATION UNIT: An accounting unit of measure used to calculate the
Investment Value of a Division.
ALLOCATION DATES: The dates we receive and accept Premium Payments. Premium
Payments are applied to the Divisions on these Allocation Dates.
ANNUITY COMMENCEMENT DATE: The date payment of an annuity is to begin under each
Certificate.
ANNUITY UNIT: An accounting unit of measure used to calculate the amount of
annuity payments under a variable annuity option.
ANNUITANT(S): The person(s) upon whose life the Certificate is issued.
BENEFICIARY: The person(s) entitled to receive benefits under the Certificate
upon death of the Annuitant or Owner.
CERTIFICATE ANNIVERSARY: An anniversary of the Certificate Date.
CERTIFICATE DATE: The date so designated in the Certificate.
CERTIFICATE YEAR: A period of 12 months following the Certificate Date and each
anniversary thereof.
CODE: The Internal Revenue Code of 1986, as amended.
CONTINGENT ANNUITANT: The person designated by the Owner to become the Annuitant
upon the Annuitant's death prior to the Annuity Commencement Date.
CUSTOMER SERVICE CENTER: Currently located at ICMG, Group Annuity Operations,
100 Campus Drive, Suite 250, Florham Park, NJ 07932.
DEATH BENEFIT: The amount payable upon the death of an Annuitant or Owner before
annuity payments have started.
DIVISION: A subaccount of the Separate Account which invests exclusively in the
shares of a specified Portfolio of a Fund.
ENROLLMENT FORM: The form required to be completed prior to issuance of a
Certificate.
FUNDS: The registered open-end management investment companies in which assets
of the Divisions of the Separate Account may be invested. Currently, the Funds
include: (i) Hartford Capital Appreciation Fund; (ii) Hartford Bond Fund; (iii)
Hartford Money Market Fund ((i), (ii), and (iii) are collectively referred to in
this Prospectus as the "Hartford Funds"); (iv) Neuberger & Berman Advisers
Management Trust ("Neuberger & Berman AMT"); (v) Variable Insurance Products
Fund ("VIP"); (vi) Variable Insurance Products Fund II ("VIP II"); (vii) The
Alger American Fund ("Alger American Fund"); (viii) J.P. Morgan Series Trust II
("J.P. Morgan Series Trust"); (ix) Morgan Stanley Universal Funds, Inc.
("MSUF"); and (x) BT Insurance Funds Trust.
GENERAL ACCOUNT: The assets of Hartford other than those allocated to the
Separate Account.
GROUP ANNUITY: The variable annuity described in this Prospectus and providing
for payments varying in amount in accordance with the investment experience of
the Divisions of the Separate Account.
HARTFORD: Hartford Life Insurance Company.
INVESTMENT VALUE: The sum of the values of each Division's Accumulation Units
held under the Certificate.
MAXIMUM DEFERRAL AGE: The Annuitant's 90th birthday.
NET PREMIUM: The amount of premium actually credited to the Divisions.
NYSE: New York Stock Exchange.
OWNER: The entity or person who is the owner of the Certificate, as named in the
Certificate, sometimes herein referred to as "You."
PORTFOLIOS: A Hartford Fund or a separate mutual fund, series or portfolio of
the remaining Funds. There are currently twenty-four Portfolios available: the
Hartford Capital Appreciation Fund, Hartford Bond Fund and Hartford Money Market
Fund; the Limited Maturity Bond Portfolio ("N&B AMT Limited Maturity Bond
Portfolio"), Balanced Portfolio ("N&B AMT Balanced Portfolio") and Partners
Portfolio ("N&B AMT Partners Portfolio") of Neuberger & Berman AMT; the VIP High
Income Portfolio and VIP Equity-Income Portfolio of VIP; the VIP II Asset
Manager Portfolio of VIP II; the Alger American Small Capitalization Portfolio
and Alger American Growth Portfolio of Alger American Fund; the J.P. Morgan Bond
Portfolio, J.P. Morgan Equity Portfolio, J.P. Morgan Small Company Portfolio and
J.P. Morgan International Opportunities Portfolio of J.P. Morgan Series Trust;
the Fixed Income Portfolio ("MS Fixed Income Portfolio"), High Yield Portfolio
("MS High Yield Portfolio"), Equity Growth Portfolio ("MS Equity Growth
Portfolio"), Value Portfolio ("MS Value Portfolio"), Global Equity Portfolio
("MS Global Equity Portfolio"), and Emerging Markets Equity Portfolio ("MS
Emerging Markets Equity Portfolio") of MSUF; the EAFE-Registered Trademark-
Equity Index Fund ("BT EAFE-Registered Trademark- Equity Index Fund"), Equity
500 Index Fund ("BT Equity 500 Index Fund") and Small Cap Index Fund ("BT Small
Cap Index Fund") of BT Insurance Funds Trust.
PREMIUM PAYMENT: A payment made to Hartford pursuant to the terms of the
Certificate.
PREMIUM TAX: A tax charged by a state or municipality on Premium Payments or
Investment Value.
SEC: The U.S. Securities and Exchange Commission.
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4 HARTFORD LIFE INSURANCE COMPANY
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SEPARATE ACCOUNT: The Hartford separate account entitled "ICMG Secular Trust
Separate Account."
SURRENDER VALUE: Upon surrender of the Certificate, an amount equal to the
Investment Value less any Premium Taxes not previously deducted and any due and
unpaid charges.
VALUATION DAY: Each business day that Hartford and each of the Funds value their
respective investment portfolios, unless the Certificate indicates otherwise. A
business day is any day the NYSE is open for trading or any day the SEC requires
mutual funds, unit investment trusts or other investment portfolios to be
valued. The value of the Separate Account is determined at the close of the NYSE
(generally 4:00 p.m. Eastern Time) on each Valuation Day.
VALUATION PERIOD: The period between the close of business on successive
Valuation Days.
VIP: Variable Insurance Products Fund.
VIP II: Variable Insurance Products Fund II.
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HARTFORD LIFE INSURANCE COMPANY 5
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FEE TABLE
Owner Transaction Expenses
<TABLE>
<S> <C>
As a Percentage of Premium Payments
Maximum Sales Load Imposed on Purchases....................... 4.6%(1)
Federal Tax Charge............................................ 0.43%
Deferred Sales Load........................................... None
Separate Account Expenses
Administrative Expense Charge................................. $ 2.50/mo
Mortality and Expense Risk Charge............................. 0.65%(2)
</TABLE>
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(1) The sales load will vary depending on plan characteristics.
(2) Annual expense as a percentage of average Investment Value.
Annual Portfolio Operating Expenses
After Waivers and/or Reimbursements
(as a percentage of net assets)
<TABLE>
<CAPTION>
TOTAL
MANAGEMENT OTHER OPERATING
FEES EXPENSES EXPENSES(1)
---------- -------- ----------
<S> <C> <C> <C>
Hartford Capital Appreciation Fund.............. 0.620% 0.020% 0.640%
Hartford Bond Fund.............................. 0.490% 0.020% 0.510%
Hartford Money Market Fund...................... 0.425% 0.015% 0.440%
N&B AMT Limited Maturity Bond Portfolio (2)..... 0.650% 0.120% 0.770%
N&B AMT Balanced Portfolio (2).................. 0.850% 0.190% 1.040%
N&B AMT Partners Portfolio (2).................. 0.800% 0.060% 0.860%
VIP High Income Portfolio (3)................... 0.590% 0.120% 0.710%
VIP Equity-Income Portfolio (3)................. 0.500% 0.080% 0.580%
VIP II Asset Manager Portfolio (3).............. 0.550% 0.100% 0.650%
Alger American Small Capitalization Portfolio... 0.850% 0.040% 0.890%
Alger American Growth Portfolio................. 0.750% 0.040% 0.790%
J.P. Morgan Bond Portfolio (4).................. 0.300% 0.450% 0.750%
J.P. Morgan Equity Portfolio (4)................ 0.400% 0.500% 0.900%
J.P. Morgan Small Company Portfolio (4)......... 0.600% 0.550% 1.150%
J.P. Morgan International Opportunities
Portfolio (4)................................ 0.600% 0.600% 1.200%
MS Fixed Income Portfolio (5)................... 0.000% 0.700% 0.700%
MS High Yield Portfolio (5)..................... 0.000% 0.800% 0.800%
MS Equity Growth Portfolio (5).................. 0.000% 0.850% 0.850%
MS Value Portfolio (5).......................... 0.000% 0.850% 0.850%
MS Global Equity Portfolio (5).................. 0.000% 1.150% 1.150%
MS Emerging Markets Equity Portfolio (5)........ 0.000% 1.750% 1.750%
BT EAFE-Registered Trademark- Equity Index Fund
(6).......................................... 0.020% 0.630% 0.650%
BT Equity 500 Index Fund (6).................... 0.000% 0.300% 0.300%
BT Small Cap Index Fund (6)..................... 0.000% 0.450% 0.450%
</TABLE>
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(1) Management Fee generally represents the fees paid to the investment adviser
or its affiliate for investment and administrative services provided. Other
Expenses are expenses (other than Management Fees) which are deducted from
the fund including legal, accounting, and custodian fees. For a complete
description of the nature of the services provided in consideration of the
operating expenses deducted, please see the Fund prospectuses.
(2) Neuberger & Berman AMT is divided into Portfolios, each of which invests all
of its net investable assets in a corresponding series of Advisers Managers
Trust. The figures reported under Management Fee include the aggregate of
the administration fees paid by the Portfolio and the management fee paid by
its corresponding series of Advisers Managers Trust. Similarly, Other
Expenses includes all other expenses of the Portfolio and its corresponding
series of Advisers Managers Trust.
(3) A portion of the brokerage commissions that certain funds pay was used to
reduce funds expenses. In addition, certain funds have entered into
arrangements with their custodian and transfer agent whereby credits
realized, as a result of uninvested cash balances were used to reduce
custodian expenses. Including these reductions, the total operating expenses
presented in the table would have been 0.710% for VIP High Income Portfolio,
0.570% for VIP Equity-Income Portfolio and 0.640% for VIP II Asset Manager
Portfolio.
(4) Pursuant to a voluntary agreement, fees and expenses were reimbursed to the
extent certain expenses exceeded .75%, .90%, 1.15% and 1.20% of the average
daily net assets of J.P. Morgan Bond Portfolio, J.P. Morgan Equity
Portfolio, J.P. Morgan Small Company Portfolio and J.P. Morgan International
Opportunities Portfolio, respectively. Without such reimbursement, total
operating expenses would have been 1.91%, 2.31%, 3.81% and 4.25% for J.P.
Morgan Bond Portfolio, J.P. Morgan Equity Portfolio, J.P. Morgan Small
Company Portfolio and J.P. Morgan International Opportunities Portfolio,
respectively.
(5) With respect to the MS Fixed Income, MS High Yield, MS Equity Growth, MS
Value, MS Global Equity and MS Emerging Markets Equity Portfolios, the
investment adviser has voluntarily agreed to waive its investment advisory
fees and to reimburse the Portfolios if such fees would cause their
respective
<PAGE>
6 HARTFORD LIFE INSURANCE COMPANY
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Total Operating Expenses to exceed those set forth in the table above.
Absent such reductions, it is estimated that Management Fees, Other Expenses
and Total Operating Expenses for the Portfolios would have been as follows:
<TABLE>
<CAPTION>
TOTAL
OPERATING
MANAGEMENT OTHER EXPENSES
FEES EXPENSES (1)
---------- -------- ----------
<S> <C> <C> <C>
MS Fixed Income Portfolio....................... 0.40% 1.31% 1.71%
MS High Yield Portfolio......................... 0.50% 1.18% 1.68%
MS Equity Growth Portfolio...................... 0.55% 1.50% 2.05%
MS Value Portfolio.............................. 0.55% 1.32% 1.87%
MS Global Equity Portfolio...................... 0.80% 1.63% 2.43%
MS Emerging Markets Equity Portfolio............ 1.25% 2.87% 4.12%
</TABLE>
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(6) Without expense waivers and reimbursements, the total operating expenses for
BT EAFE-Registered Trademark- Equity Index Fund, BT Equity 500 Index Fund
and BT Small Cap Index Fund would have been 2.750%, 2.780% and 3.270%,
respectively.
EXAMPLE
If you surrender your Certificate or annuitize at the end of the applicable time
period, you would pay the following expenses on a $1,000 investment, assuming a
5% annual return on assets:
<TABLE>
<CAPTION>
DIVISION 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
Hartford Capital
Appreciation Fund...... $ 64 $ 94 $ 127 $ 224
<S> <C> <C> <C> <C>
Hartford Bond Fund....... 63 90 119 208
Hartford Money Market
Fund................... 64 92 123 217
N&B AMT Limited Maturity
Bond Portfolio......... 65 98 134 241
N&B AMT Balanced
Portfolio.............. 68 107 149 276
N&B AMT Partners
Portfolio.............. 66 101 139 253
VIP High Income
Portfolio.............. 65 96 131 233
VIP Equity-Income
Portfolio.............. 64 92 123 217
VIP II Asset Manager..... 64 94 127 226
Alger American Small
Capitalization
Portfolio.............. 67 102 141 257
Alger American Growth
Portfolio.............. 66 99 135 244
J.P. Morgan Bond
Portfolio.............. 65 97 133 239
J.P. Morgan Equity
Portfolio.............. 67 102 141 258
J.P. Morgan Small Company
Portfolio.............. 69 110 156 290
J.P. Morgan International
Opportunities
Portfolio.............. 70 112 158 297
MS Fixed Income
Portfolio.............. 65 96 130 232
MS High Yield
Portfolio.............. 66 99 136 245
MS Equity Growth
Portfolio.............. 66 101 139 251
MS Value Portfolio....... 66 101 139 251
MS Global Equity
Portfolio.............. 69 110 156 290
MS Emerging Markets
Equity Portfolio....... 76 130 190 367
BT
EAFE-Registered Trademark-
Equity Index Fund...... 64 94 127 226
BT Equity 500 Index
Fund................... 61 83 108 181
BT Small Cap Index
Fund................... 62 88 116 200
</TABLE>
The purpose of this table is to assist the Owner in understanding various
costs and expenses that an Owner will bear directly or indirectly. The table
reflects expenses of the Separate Account and underlying Portfolios. Premium
taxes may also be applicable.
This Example should not be considered a representation of past or future
expenses and actual expenses may be greater or less than those shown. Maximum
charges are assumed.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY 7
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SUMMARY
This Prospectus has been designed to provide you with the information
necessary to make a decision whether to purchase the Certificate offered by
Hartford and funded by the Divisions of the Separate Account. Please read the
Glossary of Special Terms on pages 3 and 4 prior to reading this Prospectus in
order to familiarize yourself with the terms being used.
WHAT IS THE CERTIFICATE AND HOW MAY I PURCHASE ONE?
The Certificate is individually allocated and offered under a group flexible
premium variable annuity contract. Generally, the Certificate is purchased by
completing an Enrollment Form and submitting it, along with the initial Premium
Payment, to the Customer Service Center for Hartford's approval. Unless
otherwise determined by Hartford, the minimum initial Premium Payment is $1,000
per Certificate with a minimum allocation to any Division of $500 per
Certificate. Certain plans may make smaller initial and subsequent periodic
Premium Payments. Subsequent Premium Payments, if made, must be a minimum of
$1,000 or the minimum amount then in effect.
WHO MAY PURCHASE THE CERTIFICATE?
The Certificates are offered to employee-participants of nonqualified
deferred compensation and supplemental executive retirement plans.
WHAT TYPES OF INVESTMENTS ARE AVAILABLE UNDER THE CERTIFICATE?
The underlying investments available to the Certificate are the Hartford
Capital Appreciation Fund, the Hartford Bond Fund and the Hartford Money Market
Fund; the Limited Maturity Bond Portfolio, the Balanced Portfolio and the
Partners Portfolio of Neuberger & Berman AMT; the VIP High Income Portfolio and
the VIP Equity-Income Portfolio of VIP; the VIP II Asset Manager Portfolio of
VIP II; the Alger American Small Capitalization Portfolio and Alger American
Growth Portfolio of Alger American Fund; the J.P. Morgan Bond Portfolio, the
J.P. Morgan Equity Portfolio, the J.P. Morgan Small Company Portfolio and the
J.P. Morgan International Opportunities Portfolio of J.P. Morgan Series Trust;
and the MS Fixed Income Portfolio, the MS High Yield Portfolio, the MS Equity
Growth Portfolio, the MS Value Portfolio, the MS Global Equity Portfolio and the
MS Emerging Markets Equity Portfolio of MSUF; the BT EAFE-Registered Trademark-
Equity Index Fund, the BT Equity 500 Index Fund and the BT Small Cap Index Fund
of BT Insurance Funds Trust; and such other Portfolios as shall be offered from
time to time. See "The Portfolios," page 11.
WHAT ARE THE CHARGES UNDER THE CERTIFICATE?
SALES EXPENSES
A sales load of not more than 4.6% of each Premium Payment will be deducted
for sales expenses. The sales load may vary depending on the characteristics of
the group, including such factors as group size, expected number of participants
and the anticipated Premium Payment from participants.
MORTALITY AND EXPENSE RISK CHARGE
For assuming the mortality and expense risks under the Certificate, Hartford
will impose a charge of 0.65% per annum against all Investment Value held in the
Divisions. See "Mortality and Expense Risk Charge," page 16.
ADMINISTRATIVE EXPENSE CHARGE
The Certificate provides for an administrative expense charge of $2.50 per
month to be deducted from the Investment Value to cover Hartford's
administrative expenses.
PREMIUM TAX AND FEDERAL TAX CHARGES
A deduction will be made for Premium Taxes for Certificates sold in certain
states. See "Premium Tax Charge," page 17. In addition, a deduction will be made
for the federal tax cost resulting from Section 848 of the Code. See "Federal
Tax Charge," page 17.
CHARGES BY THE PORTFOLIOS
The Portfolios are subject to certain fees, charges and expenses. See the
Fund prospectuses accompanying this Prospectus for more information.
CAN I GET MY MONEY IF I NEED IT?
Subject to any applicable charges, the Certificate may be surrendered or
portions of its Investment Value may be withdrawn at any time prior to the
Annuity Commencement Date. The number of partial withdrawals in any Certificate
Year is limited to 12. If the remaining Investment Value following a partial
withdrawal is less than $1,000, or Hartford's minimum then in effect, Hartford
may terminate the Certificate in its entirety. See "Surrenders and Partial
Withdrawals," page 15. See also "Federal Tax Considerations," page 19, for a
discussion of federal tax consequences, including a 10% penalty tax that may
apply upon surrender or withdrawal.
DOES THE CERTIFICATE PAY ANY DEATH BENEFIT?
A Death Benefit is provided on the death of the Annuitant or Owner before
the Annuity Commencement Date and prior to attained age 85. See "Death Benefit,"
page 17.
WHAT ARE THE AVAILABLE ANNUITY OPTIONS UNDER THE CERTIFICATE?
There are four annuity options available under the Certificate. See "Annuity
Options," page 18. The Annuity Commencement Date may not be deferred beyond the
Maximum Deferral Age. If an Owner does not elect otherwise, the Investment Value
less applicable Premium Taxes will be applied on the Annuity Commencement Date
under the third option to provide a joint and last survivor life annuity.
<PAGE>
8 HARTFORD LIFE INSURANCE COMPANY
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DOES THE OWNER HAVE ANY VOTING RIGHTS UNDER THE CERTIFICATE?
Owners will have the right to vote on matters affecting an underlying
Portfolio to the extent that proxies are solicited by such Portfolio. If an
Owner does not vote, Hartford shall vote such interests in the same proportion
as shares of the Portfolio for which instructions have been received by
Hartford. See "Voting Rights," page 23.
FINANCIAL INFORMATION
The financial statements of Hartford are included in the Statement of
Additional Information. The financial statements of Hartford should be
considered only as they relate to the ability of Hartford to meet its
obligations under the Group Annuity and Certificates. They should not be
considered as relating to the investment performance of the assets held in the
Separate Account. No financial statements of the Separate Account are included
because, as of the effective date of this Prospectus, no Certificates had been
issued.
PERFORMANCE RELATED INFORMATION
The Separate Account may advertise certain performance related information
concerning its Divisions. Performance information about a Division is based on
the Division's past performance only and is no indication of future performance.
Each Division may include total return in advertisements or other sales
material. When a Division advertises its total return, it will usually be
calculated for one year, five years, and ten years or some other relevant
periods if the Division has not been in existence for at least ten years. Total
return is measured by comparing the value of an investment in the Division at
the beginning of the relevant period to the value of the investment at the end
of the period.
The Divisions investing in the Hartford Bond Fund and the Limited Maturity
Bond Portfolio may advertise yield in addition to total return. The yield will
be computed in the following manner: The net investment income per unit earned
during a recent one month period is divided by the unit value on the last day of
the period. This figure reflects the Certificate charges described below.
The Division investing in the Hartford Money Market Fund may advertise yield
and effective yield. The yield of a Division is based upon the income earned by
the Division over a seven-day period and then annualized, i.e., the income
earned in the period is assumed to be earned every seven days over a 52-week
period and stated as a percentage of the investment. Effective yield is
calculated similarly, but when annualized, the income earned by the investment
is assumed to be reinvested in Division units and thus compounded in the course
of a 52-week period. Yield reflects the Certificate charges described below.
Total return for a Division of the Separate Account includes all Certificate
charges: sales charge, mortality and expense risk charge, and the administrative
expense charge, and is therefore lower than total return at the Portfolio level,
where there are no comparable charges. Yield for a Division of the Separate
Account includes all recurring charges (except sales charges) and is therefore
lower than yield at the Portfolio level, where there are no comparable charges.
Hartford may provide information on various topics to current and
prospective Owners in advertising, sales literature or other materials. These
topics may include the relationship between sectors of the economy and the
economy as a whole and its effect on various securities markets, investment
strategies and techniques (such as value investing, dollar cost averaging and
asset allocation), plan and trust arrangements, the advantages and disadvantages
of investing in tax-advantaged and taxable instruments, current and prospective
Owner profiles and hypothetical purchase scenarios, financial management and tax
and retirement planning, and investment alternatives, including comparisons
between the Certificates and the characteristics of and market for such
alternatives.
THE COMPANY
Hartford is a stock life insurance company engaged in the business of
writing health and life insurance, both individual and group, in all states of
the United States and the District of Columbia. Hartford was originally
incorporated under the laws of Massachusetts on June 5, 1902, and was
subsequently redomiciled to Connecticut. Its offices are located in Simsbury,
Connecticut; however, its mailing address is P.O. Box 2999, Hartford, CT
06104-2999. Hartford is a subsidiary of Hartford Fire Insurance Company, one of
the largest multiple lines insurance carriers in the United States. Hartford is
ultimately owned by The Hartford Financial Services Group, Inc., a Delaware
corporation.
Hartford is rated A+ (superior) by A.M. Best and Company, Inc., on the basis
of its financial soundness and operating performance. Hartford is rated AA by
Standard & Poor's and AA+ by Duff and Phelps, on the basis of its claims paying
ability. These ratings do not apply to the investment performance of the
Divisions of the Separate Account. The ratings apply to Hartford's ability to
meet its insurance obligations, including those described in this Prospectus.
THE SEPARATE ACCOUNT
The Separate Account was established on October 28, 1994, pursuant to a
resolution by the Board of Directors of Hartford. It is registered as a unit
investment trust under the
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HARTFORD LIFE INSURANCE COMPANY 9
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Investment Company Act of 1940 (the "1940 Act"). This registration does not,
however, involve supervision by the SEC of the management or the investment
practices or policies of the Separate Account or Hartford. The Separate Account
meets the definition of "separate account" under the federal securities laws.
Under Connecticut law, the assets of the Separate Account attributable to
the Group Annuity and the Certificates offered by this Prospectus are held
exclusively for the benefit of the owners of, and the persons entitled to
payments under, those Certificates. Income, gains, and losses, whether or not
realized, from assets allocated to the Separate Account, are, in accordance with
the Certificates, credited to or charged against the Separate Account. Also, the
assets in the Separate Account are not chargeable with liabilities arising out
of any other business Hartford may conduct. Investment Value allocated to the
Divisions will not be affected by the rate of return of Hartford's General
Account, nor by the investment performance of any of Hartford's other separate
accounts. However, the obligations arising under the Certificates are general
obligations of Hartford.
Currently, the Separate Account has twenty-four Divisions dedicated to the
Group Annuity and the Certificates, each of which invests exclusively in a
corresponding Portfolio of the Funds. Additional Divisions may be established at
Hartford's discretion. The Separate Account may include other divisions which
may not be available under the Group Annuity.
HARTFORD DOES NOT GUARANTEE THE INVESTMENT RESULTS OF THE DIVISIONS OR ANY
OF THE UNDERLYING INVESTMENTS. THERE IS NO ASSURANCE THAT INVESTMENT VALUE
DURING THE YEARS PRIOR TO RETIREMENT OR THE AGGREGATE AMOUNT OF THE VARIABLE
ANNUITY PAYMENTS WILL EQUAL THE TOTAL OF PREMIUM PAYMENTS MADE UNDER THE
CERTIFICATE. SINCE EACH PORTFOLIO HAS DIFFERENT INVESTMENT OBJECTIVES AND
POLICIES, EACH IS SUBJECT TO DIFFERENT RISKS. THESE RISKS ARE MORE FULLY
DESCRIBED IN THE ACCOMPANYING FUND PROSPECTUSES.
THE FUNDS
The shares of the Portfolios are sold by the Funds to the Separate Account.
The assets of the Separate Account attributable to the Group Annuity are
invested exclusively in the Divisions. An Owner may allocate Net Premium among
the Divisions. Owners should review the brief descriptions of the investment
objectives of each of the Portfolios in connection with that allocation. See
"The Portfolios," page 11.
Each Fund continually issues an unlimited number of full and fractional
shares of beneficial interest in the relevant Portfolios. In addition to being
offered to the Separate Account, each Fund's shares are or may be offered to
other separate accounts funding variable annuity contracts and variable life
insurance policies issued by Hartford or its affiliates and to separate accounts
of other insurance companies. It is conceivable that in the future it may become
disadvantageous for both variable annuity and variable life insurance separate
accounts or for separate accounts of other life insurance companies to invest in
shares of the Funds simultaneously. Although neither Hartford nor any of the
Funds currently foresee any such disadvantage, each Fund's Board of Directors or
Board of Trustees, as applicable (collectively, the "Boards"), will monitor
events in order to identify any material conflict between different variable
annuity and variable life owners and to determine what action, if any, should be
taken in response thereto, including the possible withdrawal of the Separate
Account's participation in any of the Funds. Material conflicts could result
from such things as (1) changes in state insurance law, (2) changes in federal
income tax law, (3) changes in the investment management of any Portfolio, or
(4) differences between voting instructions given by variable annuity and
variable life owners. If the Boards were to conclude that separate underlying
funds should be established for variable annuity and variable life insurance
separate accounts, Hartford will bear the attendant expenses.
All investment income of, and other distributions to, each Division arising
from the applicable Portfolio are reinvested in shares of that Portfolio at net
asset value. Hartford will purchase Portfolio shares in connection with Net
Premium allocated to the applicable Division in accordance with Owners'
instructions and will redeem Portfolio shares to meet obligations under the
Group Annuity and the Certificates or make adjustments in reserves, if any. The
Funds are required to redeem Portfolio shares at net asset value and generally
to make payment within seven (7) calendar days.
Applicants should read the Fund prospectuses accompanying this Prospectus in
connection with the purchase of a Certificate.
HARTFORD FUNDS
The Separate Account currently invests in three Funds sponsored by Hartford
that are available as part of OmniFlex-TM- -- the Hartford Capital Appreciation
Fund, the Hartford Bond Fund, and the Hartford Money Market Fund. Each Hartford
Fund is a separate diversified open-end management investment company registered
under the 1940 Act and organized as Maryland corporations.
HL Investment Advisors, Inc. ("HL Advisors") serves as the investment
adviser to each of the Hartford Funds. In addition, HL Advisors has entered an
investment services agreement with The Hartford Investment Management Company
("HIMCO"), pursuant to which HIMCO will provide certain investment services to
the Hartford Bond Fund and the Hartford Money Market Fund. Wellington Management
Company, LLP ("Wellington Management")
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10 HARTFORD LIFE INSURANCE COMPANY
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serves as sub-investment adviser for the Hartford Capital Appreciation Fund.
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
The Separate Account currently invests in Neuberger & Berman AMT, a
diversified open-end management investment company registered under the 1940 Act
and organized as a Delaware business trust. Neuberger & Berman AMT consists of
several portfolios, including the Limited Maturity Bond Portfolio, Balanced
Portfolio and Partners Portfolio available as part of OmniFlex-TM-.
Each portfolio of Neuberger & Berman AMT invests its assets in its
corresponding series of the Advisers Managers Trust, which is also an open-end
management investment company registered under the 1940 Act and is organized as
a New York common law trust. The investment performance of the Limited Maturity
Bond Portfolio, Balanced Portfolio and Partners Portfolio will directly
correspond with the investment performance of the corresponding series of the
Advisers Managers Trust. This "Master/Feeder Fund" structure is different from
that of many other investment companies which directly acquire and manage their
own portfolios of securities.
Neuberger & Berman Management Incorporated serves as the investment manager
of each series of Advisers Managers Trust and as administrator of and
distributor of the shares of each portfolio of Neuberger & Berman AMT. Neuberger
& Berman, LLC serves as the sub-adviser for each series of Advisers Managers
Trust.
VARIABLE INSURANCE PRODUCTS FUND AND VARIABLE
INSURANCE PRODUCTS FUND II (EACH, A "FIDELITY FUND"
AND COLLECTIVELY, THE "FIDELITY FUNDS")
The Separate Account currently invests in both Fidelity Funds. The Fidelity
Funds are diversified, open-end management investment companies organized as
Massachusetts business trusts by Fidelity Management & Research Company ("FMR")
and registered under the 1940 Act. The Fidelity Funds consist of several
investment portfolios, including the VIP High Income Portfolio, VIP Equity-
Income Portfolio and VIP II Asset Manager Portfolio available as part of
OmniFlex-TM-.
The Fidelity Funds are each managed by FMR. FMR is one of America's largest
investment management organizations. It is composed of a number of different
companies, which provide a variety of financial services and products. FMR is
the original Fidelity company, founded in 1946. It provides a number of mutual
funds and other clients with investment research and portfolio management
services.
THE ALGER AMERICAN FUND
The Separate Account currently invests in shares of The Alger American Fund,
a diversified open-end management investment company registered under the 1940
Act and organized as a Massachusetts business trust. The Alger American Fund
consists of six series, including the Alger American Small Capitalization and
Alger American Growth Portfolios available as part of OmniFlex-TM-.
The Alger American Fund is managed by Fred Alger Management, Inc. ("Alger
Management"), a subsidiary of Fred Alger & Company, Incorporated, which is in
turn a subsidiary of Alger Associates, Inc., a financial services holding
company. Alger Management has been in the business of providing investment
advisory services since 1964.
J.P. MORGAN SERIES TRUST II
The Separate Account currently invests in shares of J.P. Morgan Series
Trust, a diversified open-end management investment company registered under the
1940 Act and organized as a Delaware business trust. J.P. Morgan Series Trust
consists of five portfolios, including the J.P. Morgan Bond, J.P. Morgan Equity,
J.P. Morgan Small Company and J.P. Morgan International Opportunities Portfolios
available as part of OmniFlex-TM-.
Each Portfolio of J.P. Morgan Series Trust is advised by J.P. Morgan
Investment Management, Inc. ("J.P. Morgan"), a wholly-owned subsidiary of J.P.
Morgan & Co. Incorporated which is a bank holding company with a long history of
service as adviser, underwriter and lender to an extensive roster of major
companies and as financial adviser to national governments.
MORGAN STANLEY UNIVERSAL FUNDS, INC.
The Separate Account currently invests in shares of MSUF, an open-end
management investment company registered under the 1940 Act and organized as a
corporation under the laws of the State of Maryland. MSUF consists of 17
portfolios, including the Fixed Income, High Yield, Equity Growth, Value, Global
Equity and Emerging Markets Equity Portfolios available as part of OmniFlex-TM-.
The investment adviser for Equity Growth, Global Equity and Emerging Markets
Equity Portfolios is Morgan Stanley Asset Management Inc., a wholly-owned
subsidiary of Morgan Stanley Dean Witter & Co., which is a publicly owned global
financial services corporation. The investment adviser for Fixed Income, High
Yield and Value Portfolios is Miller Anderson & Sherrerd, LLP, which is
indirectly wholly-owned by Morgan Stanley Dean Witter & Co.
BT INSURANCE FUNDS TRUST
The Separate Account currently invests in the BT Insurance Funds Trust, a
diversified open-end management investment company registered under the 1940 Act
and organized as a Massachusetts business trust. BT Insurance Funds Trust
consists of six series, including the EAFE-Registered Trademark- Equity Index
Fund, the Equity 500 Index Fund and the Small Cap Index Fund available as part
of OmniFlex-TM-.
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HARTFORD LIFE INSURANCE COMPANY 11
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BT Insurance Funds Trust has retained the services of Bankers Trust Global
Investment Management, a unit of Bankers Trust Company, as investment manager.
Bankers Trust Company conducts a variety of general banking and trust activities
and is a major wholesaler supplier of financial services to the international
and domestic institutional markets.
THE PORTFOLIOS
The underlying investment for the Certificates are shares of the Portfolios.
The Portfolio corresponding to each Division and its investment objective are
described below. Hartford reserves the right, subject to compliance with the
law, to offer additional Portfolios with differing investment objectives. Owners
should review the following brief descriptions of the investment objectives of
the Portfolios.
HARTFORD CAPITAL APPRECIATION FUND
Hartford Capital Appreciation Fund seeks to achieve growth of capital by
investing in securities selected solely on the basis of potential for capital
appreciation.
HARTFORD BOND FUND
Hartford Bond Fund seeks to achieve maximum current income consistent with
preservation of capital by investing primarily in fixed-income securities. Up to
20% of the total assets of the Portfolio may be invested in debt securities
rated in the highest category below investment grade ("Ba" by Moody's Investor
Services, Inc. or "BB" by Standard & Poor's) or, if unrated, are determined to
be of comparable quality by the Portfolio's investment adviser. Securities rated
below investment grade are commonly referred to as "high yield-high risk
securities" or "junk bonds." For more information concerning the risks
associated with investing in such securities, please refer to the section in the
accompanying prospectus for the Hartford Funds entitled "High Yield-High Risk
Debt Securities."
HARTFORD MONEY MARKET FUND
Hartford Money Market Fund seeks to achieve maximum current income
consistent with liquidity and preservation of capital.
LIMITED MATURITY BOND PORTFOLIO
N&B AMT Limited Maturity Bond Portfolio seeks to achieve the highest current
income consistent with low risk to principal and liquidity; and secondarily,
total return. This Portfolio invests in a diversified portfolio primarily
consisting of short to intermediate term U.S. government and agency securities
and investment grade debt securities issued by financial institutions,
corporations, and others. The Portfolio may invest up to 10% of its net assets,
measured at the time of investment, in fixed-income securities that are below
investment grade.
BALANCED PORTFOLIO
N&B AMT Balanced Portfolio seeks to achieve long-term capital growth and
reasonable current income without undue risk to principal. It is anticipated
that the Portfolio's investment program will normally be managed so that
approximately 60% of its total assets will be invested in common and preferred
stocks and the remaining assets will be invested in debt securities, primarily
investment grade. However, depending on the investment manager's views regarding
current market trends, the common stock portion of its portfolio investments may
be adjusted downward to as low as 50% or upward to as high as 70%. At least 25%
of its assets will be invested in fixed income securities.
PARTNERS PORTFOLIO
N&B AMT Partners Portfolio seeks to achieve capital growth. This Portfolio's
investment approach is to invest principally in common stocks of medium to large
capitalization established companies, using a value-oriented investment approach
designed to increase capital with reasonable risk. Its investment program seeks
securities believed to be undervalued based on strong fundamentals such as low
price-to-earnings ratios, consistent cash flow and the company's track record
through all parts of the market cycle.
VIP HIGH INCOME PORTFOLIO
VIP High Income Portfolio seeks high current income primarily through
investments in all types of income-producing debt securities, preferred stocks
and convertible securities. Although the Portfolio has no limits on the quality
and maturity of its investments, its strategy typically leads to longer-term,
lower-quality, fixed-income securities. These domestic and foreign investments
may present the risk of default or may be in default.
VIP EQUITY-INCOME PORTFOLIO
VIP Equity-Income Portfolio seeks reasonable income by investing primarily
in income-producing equity securities. In choosing these securities, the
Portfolio will also consider the potential for capital appreciation. This
Portfolio's goal is to achieve a yield which exceeds the composite yield on the
securities comprising the Standard & Poor's Composite Index of 500 Stocks
(commonly referred to as "S&P 500"). The Portfolio may invest in high yielding,
lower-rated securities (commonly referred to as "junk bonds") which are subject
to greater risk than investments in higher-rated securities.
VIP II ASSET MANAGER PORTFOLIO
VIP II Asset Manager Portfolio seeks high total return with reduced risk
over the long-term by allocating its assets among domestic and foreign stocks,
bonds and short-term instruments.
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12 HARTFORD LIFE INSURANCE COMPANY
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ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO
Alger American Small Capitalization Portfolio seeks long-term capital
appreciation by investing in a diversified, actively managed portfolio of equity
securities, primarily of companies with total market capitalization within the
range of companies included in the Russell 2000 Growth Index or the S&P SmallCap
600 Index, updated quarterly.
ALGER AMERICAN GROWTH PORTFOLIO
Alger American Growth Portfolio seeks long-term capital appreciation by
investing in a diversified, actively managed portfolio of equity securities,
primarily of companies with total market capitalization of $1 billion or
greater.
J.P. MORGAN BOND PORTFOLIO
J.P. Morgan Bond Portfolio seeks high total return consistent with moderate
risk of capital and maintenance of liquidity. Although the net asset value of
the Portfolio will fluctuate, the Portfolio attempts to preserve the value of
its investments to the extent consistent with its objective. Under normal market
conditions, 65% of the Portfolio's, assets will be invested in bonds, debentures
and other debt instruments. The Portfolio may invest up to 20% of its assets in
securities denominated in foreign currencies and may invest without limitation
in U.S. dollar-denominated securities of foreign issuers.
J.P. MORGAN EQUITY PORTFOLIO
J.P. Morgan Equity Portfolio seeks high total return from a portfolio
comprised of selected equity securities. The Portfolio invests primarily in the
common stock of large and medium capitalization U.S. companies.
J.P. MORGAN SMALL COMPANY PORTFOLIO
J.P. Morgan Small Company Portfolio seeks high total return from a portfolio
of equity securities of small companies. The Portfolio invests at least 65% of
the value of its total assets in the common stock of small U.S. companies
primarily with market capitalizations less than $1 billion.
J.P. MORGAN INTERNATIONAL OPPORTUNITIES PORTFOLIO
J.P. Morgan International Opportunities Portfolio seeks high total return
from a portfolio of equity securities of foreign corporations. Under normal
market conditions, the Portfolio will invest in a minimum of three different
foreign countries.
FIXED INCOME PORTFOLIO
MS Fixed Income Portfolio seeks above average total return over a market
cycle of three to five years by investing primarily in a diversified portfolio
of U.S. government and agency securities, corporate bonds, foreign bonds,
mortgage-backed securities of domestic issuers, and other fixed income
securities and derivatives. Under normal circumstances, the Portfolio will
invest at least 65% of its total assets in fixed income securities, not more
than 20% of which will be below investment grade (commonly referred to as "high
yield securities" or "junk bonds").
HIGH YIELD PORTFOLIO
MS High Yield Portfolio seeks above average total return over a market cycle
of three to five years by investing at least 65% of its total assets in high
yield securities of U.S. and foreign issuers including corporate bonds and other
fixed income securities. The Portfolio expects to achieve its objective through
maximizing current income, although it may seek capital growth opportunities
when consistent with its objective.
EQUITY GROWTH PORTFOLIO
MS Equity Growth Portfolio seeks long-term capital appreciation by investing
primarily in growth-oriented common and preferred stocks, convertible
securities, rights and warrants to purchase common stocks, depositary receipts
and other equity securities. Under normal circumstances, the Portfolio will
invest at least 65% of its total assets in equity securities.
VALUE PORTFOLIO
MS Value Portfolio seeks above average total return over a market cycle of
three to five years by investing primarily in common and preferred stocks,
convertible securities, rights and warrants to purchase common stocks, ADRs and
other equity securities of companies with equity capitalizations usually greater
than $300 million. Under normal circumstances, the Portfolio will invest at
least 65% of its total assets in equity securities. The Portfolio may invest up
to 5% of its total assets in foreign equity securities (other than ADRs).
GLOBAL EQUITY PORTFOLIO
MS Global Equity Portfolio seeks long-term capital appreciation by investing
primarily in common and preferred stocks, convertible securities, and rights and
warrants to purchase common stocks, depositary receipts and other equity
securities of issuers throughout the world, including issuers in the United
States and emerging market countries. Under normal circumstances, at least 65%
of the total assets of the Portfolio will be invested in equity securities.
Also, under normal circumstances, at least 20% of the Portfolio's total assets
will be invested in common stocks of U.S. issuers and the remaining equity
position will be invested in at least three countries other than the United
States.
EMERGING MARKET EQUITY PORTFOLIO
MS Emerging Markets Equity Portfolio seeks long-term capital appreciation by
investing primarily in common and preferred stocks, convertible securities,
rights and warrants to purchase common stocks, sponsored or unsponsored ADRs and
other equity securities of emerging market country issuers. Under normal
circumstances, at least 65%
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HARTFORD LIFE INSURANCE COMPANY 13
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of the Portfolio's total assets will be invested in emerging market country
equity securities.
EAFE-REGISTERED TRADEMARK- EQUITY INDEX FUND
BT EAFE-Registered Trademark- Equity Index Fund seeks to replicate as
closely as possible (before deduction for expenses) the total return of the
Europe, Australia, Far East Index (the "EAFE Index"), a capitalization-weighted
index containing approximately 1,100 equity securities of companies located
outside the United States, by investing in a statistically selected sample of
the equity securities included in the EAFE Index. It will invest primarily in
equity securities of business enterprises organized and domiciled outside of the
United States or for which the principal trading market is outside the Untied
States.
EQUITY 500 INDEX FUND
BT Equity 500 Index Fund seeks to replicate as closely as possible (before
deduction for expenses) the total return of the Standard & Poor's 500 Composite
Stock Price Index (the "S&P 500"), an index emphasizing large-capitalization
stocks. It will include the common stock of those companies included in the S&P
500, other than Bankers Trust New York Corporation, selected on the basis of
computer-generated statistical data, that are deemed representative of the
industry diversification of the entire S&P 500.
SMALL CAP INDEX FUND
BT Small Cap Index Fund seeks to replicate as closely as possible (before
deduction for expenses) the total return of the Russell 2000 Small Stock Index
(the "Russell 2000"), an index consisting of 2,000 small-capitalization common
stocks. It will include the common stock of companies included in the Russell
2000, on the basis of computer-generated statistical data, that are deemed
representative of the industry diversification of the entire Russell 2000.
There is no assurance that any of the Portfolios will achieve their stated
objectives. Owners are also advised to read the Fund prospectuses accompanying
this Prospectus for more detailed information.
THE CERTIFICATE
The Certificate is individually allocated and offered under a group flexible
premium variable annuity contract. Payments for the Certificate will be held in
the Divisions of the Separate Account. Each Division invests in a different
underlying Portfolio with its own distinct investment objectives. You choose the
Division(s) with the investment objectives that meet your needs. You may select
one or more Divisions and determine the percentage of your Premium Payment that
is put into a Division. Subject to certain limits, you may also reallocate
assets among the Divisions so that your investment program meets your specific
needs over time. There are minimum requirements for investing in each Division
which are described later in this Prospectus. In addition, there are certain
other limitations on withdrawals and reallocations of amounts in the Divisions
as described in this Prospectus. See "Charges Under the Certificate" for a
description of the charges for redeeming a Certificate and other charges made
under the Certificate.
The Owner may select an Annuity Commencement Date and an annuity option
which may be on a fixed or variable basis, or a combination thereof. Generally,
the Certificate contains the four optional forms of annuity described later in
this Prospectus. The Annuity Commencement Date may not be deferred beyond the
Maximum Deferral Age.
The Annuity Commencement Date may be changed from time to time, but any such
change must be made at least 30 days prior to the date on which payments are
scheduled to begin. If you do not elect otherwise, payments will begin at the
Annuitant's age 90 under Option 3 (joint and last survivor life annuity).
When an annuity is effected under a Certificate, unless otherwise specified,
Investment Value held in the Divisions will be applied to provide a variable
annuity based on the pro rata amount in the various Divisions. Variable annuity
payments will vary in accordance with the investment performance of the Division
you have selected. The Certificate allows the Owner to change the Divisions on
which variable payments are based after payments have commenced once every
quarter. Any fixed annuity allocation may not be changed.
OPERATION OF THE CERTIFICATE
PREMIUM PAYMENTS
The balance of each initial Premium Payment remaining after the deduction of
the sales load, any applicable Premium Tax and the federal tax charge, is
credited to your Certificate within two business days of receipt of a properly
completed Enrollment Form and the initial Premium Payment by Hartford at its
Customer Service Center. It will be credited to the Division(s) in accordance
with your allocation instructions. If the Enrollment Form is incomplete when
received, the initial Premium Payment will be returned within five (5) business
days, unless you consent to Hartford's retention of the Premium Payment until
the Enrollment Form is made complete.
Subsequent Premium Payments are priced on the Valuation Day they are
received by Hartford at its Customer Service Center or other designated
administrative office.
The number of Accumulation Units in each Division to be credited to a
Certificate will be determined by dividing the portion of the Premium Payment
being credited to each
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14 HARTFORD LIFE INSURANCE COMPANY
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Division by the value of an Accumulation Unit in that Division on that date.
The minimum initial Premium Payment is $1,000 per Certificate, unless agreed
to otherwise by Hartford. Subsequent Premium Payments, if made, must be a
minimum of $1,000 or the minimum amount then in effect. Certain plans may make
smaller initial and subsequent periodic payments. Each Premium Payment may be
split among the various Divisions subject to minimum amounts then in effect.
RIGHT TO EXAMINE PERIOD
If you are not satisfied with your purchase, you may surrender the
Certificate by returning it within ten (10) calendar days after you receive it
(or within such period as required in your state). A written request for
cancellation must accompany the Certificate. In such event, Hartford will refund
an amount equal to the Investment Value on the date of receipt of the request
for cancellation, plus any charges deducted. The Owner bears the investment risk
during the period prior to Hartford's receipt of the request for cancellation.
In certain states, Hartford must return to the applicant the greater of the
Premium Payment(s) paid or the sum of (1) the Investment Value on the date the
returned Certificate is received by Hartford at the Customer Service Center or
its agent and (2) any deductions under the Certificate or by the Portfolios for
taxes, charges or fees. In these states, the initial Premium Payment is
allocated to the Division investing in the Hartford Money Market Fund during the
right to examine period.
ALLOCATION OF PREMIUM PAYMENTS
Upon written request, You may change the premium allocation. Portions
allocated to the Investment Divisions must be whole percentages of 5% or more.
Subsequent Net Premiums will be allocated among Investment Divisions according
to Your most recent instructions, subject to the following. If We receive a
premium and Your most recent allocation instructions would violate the 5%
requirement, We will allocate the Net Premium among the Investment Divisions
according to Your previous premium allocation. If the asset rebalancing option
is in effect, premiums will be allocated accordingly until that option is
terminated. See "Asset Rebalancing," page 15.
The Owner will receive several different types of notification as to what
his or her current premium allocation is. The initial allocation chosen by the
Owner on the Enrollment Form is shown in the Certificate. In addition, every
transactional confirmation generated after a premium payment is received will
show how that premium has been allocated. A Certificate's annual statement will
also summarize the current premium allocation in effect for that Certificate.
VALUE OF ACCUMULATION UNITS
The value of Accumulation Units for each Division will vary to reflect the
investment experience of the applicable Portfolio and will be determined on each
Valuation Day by multiplying the Accumulation Unit value of the particular
Division on the preceding Valuation Day by an "Experience Factor" for that
Division for the Valuation Period then ended. The Experience Factor for each of
the Divisions is equal to the net asset value per share of the corresponding
Portfolio at the end of the Valuation Period (plus the per share amount of any
dividends or capital gains distributed by that Portfolio during the current
Valuation Period), divided by the net asset value per share of the corresponding
Portfolio at the beginning of the Valuation Period. You should refer to the Fund
prospectuses which accompanies this Prospectus for a description of how the
assets of each Portfolio are valued since each determination has a direct
bearing on the Accumulation Unit value of the Division and therefore the
Investment Value. The Accumulation Unit value is affected by the performance of
the underlying Portfolio(s), expenses and deduction of the charges described in
this Prospectus.
The shares of the Portfolio are valued at net asset value on each Valuation
Day. A description of the valuation methods used in valuing Portfolio shares may
be found in the accompanying prospectuses of the Funds.
INVESTMENT VALUE
The Investment Value under your Certificate at any time prior to the
commencement of annuity payments can be determined by multiplying the total
number of Accumulation Units credited to your Certificate in each Division by
the then current Accumulation Unit values for the applicable Division. You will
be advised at least annually of the number of Accumulation Units credited to
each Division, the current Accumulation Unit values, and the Investment Value.
TRANSFERS AMONG DIVISIONS
AMOUNT AND FREQUENCY OF TRANSFERS
Upon request and as long as the Certificate is in effect, an Owner may
transfer amounts among the Divisions, without charge, up to twelve (12) times
per Certificate Year. Transfers in excess of twelve (12) per Certificate Year
will be subject to a charge of $50 per transfer deducted from the amount of the
transfer. Transfer requests must be in writing on a form approved by Hartford or
by telephone in accordance with established procedures. The amounts which may
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HARTFORD LIFE INSURANCE COMPANY 15
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be transferred will be limited by Hartford's rules then in effect. Currently,
the minimum value of Accumulation Units that may be transferred from one
Division to another is the lesser of (i) $500 or (ii) the total value of the
Accumulation Units in the Division. The value of the remaining Accumulation
Units in a Division after a transfer must equal at least $500. If, after an
ordered transfer, the value of the remaining Accumulation Units in an Division
would be less than $500, the entire value will be transferred.
Currently there are no restrictions on transfers other than those described
herein. Hartford reserves the right in the future to impose additional
restrictions on transfers.
TRANSFERS TO OR FROM DIVISIONS
In the event of a transfer from a Division, the number of Accumulation Units
credited to the Division from which the transfer is made will be reduced. The
reduction will be determined by dividing:
1. the amount transferred by,
2. the Accumulation Unit value for that Division on the Valuation Day Hartford
receives the request for transfer in writing at the Customer Service Center.
In the event of a transfer to a Division, Hartford will increase the number
of Accumulation Units credited thereto. The increase will equal:
1. the amount transferred divided by,
2. the Accumulation Unit Value for that Division determined on the Valuation
Day Hartford receives the request for transfer in writing at the Customer
Service Center.
PROCEDURES FOR TELEPHONE TRANSFERS
Owners may effect telephone transfers in two ways. An Owner may directly
contact a customer service representative. Owners may in the future also request
access to an electronic service known as a Voice Response Unit (VRU). The VRU
will permit the transfer of monies among the Divisions and change of the
allocation of future payments. Owners intending to conduct telephone transfers
through the VRU will be asked to complete a Telephone Authorization Form.
Hartford will undertake reasonable procedures to confirm that instructions
communicated by telephone are genuine. Before a customer service representative
accepts any request, the caller will be asked for his or her social security
number and address. All calls will also be recorded. A Personal Identification
Number (PIN) will be assigned to all Owners who request VRU access. The PIN is
selected by and known only to the Owner. Proper entry of the PIN is required
before any transactions will be allowed through the VRU. Furthermore, all
transactions performed over the VRU, as well as with a customer service
representative, will be confirmed by Hartford through a written letter.
Moreover, all VRU transactions will be assigned a unique confirmation number
which will become part of the Certificate's history. Hartford is not liable for
any loss, cost or expense for action on telephone instructions which are
believed to be genuine in accordance with these procedures.
ASSET REBALANCING
Subject to Hartford's rules then in effect, an Owner may authorize Hartford
to automatically reallocate Investment Value periodically in order to maintain a
particular percentage allocation among the Divisions as selected by the Owner
("Asset Rebalancing"). The Investment Value held in each Division will increase
or decrease in value at different rates during the relevant period. Asset
Rebalancing is intended to reallocate Investment Value from those Divisions that
have increased in value to those that have decreased in value.
To elect Asset Rebalancing, a request in writing must be received by
Hartford at its Customer Service Center. If Asset Rebalancing is elected, all
Investment Value must be included in the automatic reallocation. The percentages
selected under Asset Rebalancing will override any prior percentage allocations
chosen by the Owner and all future Net Premiums will be allocated accordingly.
Once elected, an Owner may instruct Hartford in writing at any time to terminate
the option. In addition, any transfer made outside of Asset Rebalancing will
terminate the option.
SURRENDERS AND PARTIAL WITHDRAWALS
At any time prior to the Annuity Commencement Date, you have the right,
subject to the limitations set forth below, to surrender the Certificate or to
make partial withdrawals. Surrenders and partial withdrawals are not permitted
after annuity payments commence, except that a full surrender is allowed under
Option 4 if selected as the annuity payment option. See "Annuity Options," page
18.
FULL SURRENDERS. At any time prior to the Annuity Commencement Date (and
after the Annuity Commencement Date with respect to values applied to Option 4),
the Owner has the right to terminate the Certificate. In such event, the
Surrender Value of the Certificate may be taken in the form of a lump sum cash
settlement. The Surrender Value of the Certificate is equal to the Investment
Value less any Premium Taxes not previously deducted and any due and unpaid
charges. The Surrender Value may be more or less than the amount of the Premium
Payments made to a Certificate.
PARTIAL WITHDRAWALS. The Owner may make partial withdrawals of Investment
Value prior to the Annuity Commencement Date. The number of partial withdrawals
in any Certificate Year is limited to 12. The minimum
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16 HARTFORD LIFE INSURANCE COMPANY
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amount withdrawn must be at least equal to the minimum amount rules then in
effect. The maximum partial withdrawal is equal to the Investment Value less
$1,000. Additionally, if the remaining Investment Value following a surrender is
less than $1,000 or Hartford's minimum amount rules then in effect, Hartford may
terminate the Certificate and pay the Surrender Value.
Certain plans may have different withdrawal privileges. Hartford may permit
the Owner to preauthorize partial withdrawals subject to certain limitations
then in effect.
In requesting a partial withdrawal you should specify the Division(s) from
which the partial withdrawal is to be taken. Otherwise, such withdrawal will be
effected on a pro rata basis according to the value in each Division under a
Certificate. For federal tax purposes, any partial withdrawal will be deemed to
be first from earnings, to the extent that they exist, and then from Premium
Payments.
Payment on any request for a surrender or partial withdrawal from the
Divisions will be made as soon as possible and in any event no later than seven
calendar days after the written request is received by Hartford at its Customer
Service Center.
ANY SURRENDER OR PARTIAL WITHDRAWAL DESCRIBED ABOVE MAY RESULT IN ADVERSE
TAX CONSEQUENCES TO THE OWNER. THE OWNER, THEREFORE, SHOULD CONSULT A TAX
ADVISER BEFORE UNDERTAKING ANY SUCH SURRENDER. SEE "FEDERAL TAX CONSIDERATIONS,"
PAGE 19.
PROCESSING OF TRANSACTIONS
Generally, transactions initiated by an Owner will be processed only on a
Valuation Day. Requests received by Hartford at its Customer Service Center on a
Valuation Day before the close of trading on the NYSE (generally 4:00 p.m.
Eastern Time) will be processed as of that day except as otherwise indicated in
this Prospectus. Those requests received after the close of the NYSE will be
processed as of the next Valuation Day.
CHARGES UNDER THE CERTIFICATE
Certain charges and deductions described below may be reduced for
Certificates issued in connection with a specific plan in accordance with
Hartford's rules in effect as of the date an Enrollment Form for a Certificate
is approved. To qualify for such a reduction, a plan must satisfy certain
criteria as to, for example, size of the plan, expected number of participants
and anticipated Premium Payment from the plan. Generally, the sales contacts and
effort, administrative costs and mortality cost per Certificate vary based on
such factors as the size of the plan, the purposes for which Certificates are
purchased and certain characteristics for the plan's members. The amount of
reduction and the criteria for qualification are related to the reduced sales
effort and administrative costs resulting from, and the different mortality
experience expected as a result of, sales to qualifying plans. Hartford may
modify from time to time on a uniform basis both the amounts of reductions and
the criteria for qualification. Reductions in these charges will not be unfairly
discriminatory against any person, including the affected Owners funded by the
Separate Account.
SALES EXPENSES
A sales load of not more than 4.6% of Premium Payments, depending on the
plan to which the Certificate was issued, will be deducted for expenses related
to the sales and distribution of the Certificate.
MORTALITY AND EXPENSE RISK CHARGE
Although variable annuity payments made under the Certificates will vary in
accordance with the investment performance of the underlying Portfolio shares
held in the Division(s), the payments will not be affected by (a) Hartford's
actual mortality experience among Annuitants before or after the Annuity
Commencement Date or (b) Hartford's actual expenses, if greater than the
deductions provided for in the Certificates because of the expense and mortality
undertakings by Hartford.
For assuming these risks under the Certificates, Hartford will make a daily
charge at the rate of 0.65% per annum against all Investment Values held in the
Divisions during the life of the Certificate, including the payout period
(estimated at up to 45% for mortality and up to 20% for expense).
The mortality undertaking provided by Hartford under the Certificates,
assuming the selection of one of the forms of life Annuities, is to make monthly
annuity payments (determined in accordance with the 1983a Individual Annuity
Mortality Table and other provisions contained in the Certificate) to Annuitants
regardless of how long an Annuitant may live, and regardless of how long all
Annuitants as a group may live. Hartford also assumes the liability for payment
of the Death Benefit under the Certificate.
The mortality undertakings are based on Hartford's determination of expected
mortality rates among all Annuitants. If actual experience among Annuitants
during the annuity payment period deviates from Hartford's actuarial
determination of expected mortality rates among Annuitants because, as a group,
their longevity is longer than anticipated, Hartford must provide amounts from
its General Account to fulfill its Certificate obligations. In that event, a
loss will fall on Hartford. Also, in the event of the death of an Annuitant or
Owner prior to the commencement of annuity payments Hartford can, in periods of
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HARTFORD LIFE INSURANCE COMPANY 17
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declining value, experience a loss resulting from the assumption of the
mortality risk relative to the Death Benefit.
In providing an expense undertaking, Hartford assumes the risk that the
sales loads and the administrative expense charges for maintaining the
Certificates prior to the Annuity Commencement Date may be insufficient to cover
the actual cost of providing such items.
ADMINISTRATIVE EXPENSE CHARGE
Hartford will deduct certain fees from Investment Value to reimburse it for
expenses relating to the administration and maintenance of the Certificate and
for administration of the Separate Account. The Certificate provides for an
administrative expense charge of $2.50 to be deducted from Investment Value on
the Certificate Date and monthly on the same calendar day as the Certificate
Date, or on the last day of any month which has no such calendar day.
The deduction will be made pro rata according to the value in each Division
under a Certificate. There is not necessarily a relationship between the amount
of administrative charge imposed on a given Certificate and the amount of
expenses that may be attributable to that Certificate; expenses may be more or
less than the charge.
The types of expenses incurred by the Separate Account include, but are not
limited to, expenses for issuing the Certificate, sending confirmations,
creating and distributing annual and other periodic statements, processing
reallocations and surrenders, responding to Owner inquiries, reconciling and
depositing cash receipts, daily calculating and monitoring of Accumulation Unit
values of the Divisions, Separate Account reporting, including semiannual and
annual reports and mailing and tabulation of shareholder proxy solicitations.
You should refer to the Fund prospectuses for a description of deductions
and expenses paid out of the assets of the Portfolios.
PREMIUM TAX CHARGE
A deduction is also made for Premium Tax, if applicable, imposed by a state
or other governmental entity. Certain states and municipalities impose a Premium
Tax. The range of Premium Taxes is currently 0% to 3.5%. Some states assess the
tax at the time Premium Payments are made; others assess the tax at the time of
annuitization. Hartford will pay Premium Taxes to the applicable governmental
entity at the time imposed under applicable law and will deduct Premium Taxes at
such time.
FEDERAL TAX CHARGE
We deduct a current charge of 0.43% of each Premium Payment to cover the
estimated cost of the federal income tax treatment of the Certificates deferred
acquisition costs under Section 848 of the Code. This charge may be increased or
decreased to reflect changes in federal tax laws. Hartford includes the federal
tax charge as a factor when computing the maximum sales load chargeable under
SEC rules.
DEATH BENEFIT
The Certificates provide that in the event the Annuitant dies before the
Annuity Commencement Date, the Contingent Annuitant will become the Annuitant.
If the Annuitant dies before the Annuity Commencement Date and there is no
designated Contingent Annuitant, if the Contingent Annuitant predeceases the
Annuitant, or if the Owner dies before the Annuity Commencement Date, the
Beneficiary will receive the Death Benefit. If the Owner is a non-natural
person, however, a Death Benefit will be payable in the event the Annuitant dies
prior to the Annuity Commencement Date.
If the death of the Annuitant or Owner occurs prior to the Annuitant or
Owner attaining age 85, the Death Benefit will be the greater of:
(a) The Investment Value as determined on the date of receipt of due proof of
death acceptable to Hartford and received in its Customer Service Center, or
(b) 100% of all Premium Payments made by the Owner under the Certificate,
reduced by the amount of any partial withdrawals since the Certificate Date.
If the Annuitant or Owner had attained age 85 prior to death, the Death
Benefit will be equal to the Investment Value.
PAYMENT OF DEATH BENEFIT
The Death Benefit may be taken in a lump sum or under any of the settlement
options then offered by Hartford; provided, however, that (a) in the event of
the death of any Owner prior to the Annuity Commencement Date, the entire
interest in the Certificate will be distributed within 5 years after the death
of the Owner and (b) in the event of the death of any Owner or Annuitant
occurring on or after the Annuity Commencement Date, any remaining interest in
the Certificate will be paid at least as rapidly as under the method of
distribution in effect at the time of death, except that, if the benefit is
payable over a period not extending beyond the life expectancy of the
Beneficiary or over the life of the Beneficiary, such distribution must commence
within one year of the date of death. Notwithstanding the foregoing, in the
event of the Owner's death where the sole
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Beneficiary is the spouse of the Owner and the Annuitant or Contingent Annuitant
is living, such spouse may elect, in lieu of receiving the Death Benefit, to be
treated as the Owner. Only one such spousal election is permitted with respect
to any Certificate.
Notwithstanding any provisions to the contrary, if the Certificate is owned
by a corporation or other non-individual, a Death Benefit will be paid upon the
death of the Annuitant prior to the Annuity Commencement Date. Such benefit will
be payable only as one sum or under the same settlement options and in the same
manner as if an individual Owner died on the date of the Annuitant's death.
When payment is taken in one sum, payment will be made within 7 days after
the date due proof of death is received, except that there may be a postponement
in the payment of the Death Benefit whenever (a) the NYSE is closed, except for
holidays or weekends, or trading on the NYSE is restricted as determined by the
SEC, (b) the SEC permits postponement and so orders, or (c) the SEC determines
that an emergency exists making valuation of the amounts or disposal of
securities not reasonably practicable.
ANNUITY BENEFITS
You select an Annuity Commencement Date and an annuity option which may be
on a fixed or variable basis, or a combination thereof. The Annuity Commencement
Date will not be deferred beyond the Maximum Deferral Age. The Annuity
Commencement Date may be changed from time to time, but any change must be at
least 30 days prior to the date on which annuity payments are scheduled to
begin. The Certificate allows the Owner to change the Divisions on which
variable payments are based after payments have commenced once every quarter.
Any fixed annuity allocation may not be changed, nor may a variable allocation
be reallocated to the General Account.
ANNUITY OPTIONS
The Certificate contains the four annuity options described below. If you do
not elect otherwise, payments in most states will automatically begin at the
Maximum Deferral Age under Option 3 (Joint and Last Survivor Annuity).
Under any of the annuity options excluding Option 4, no surrenders are
permitted after annuity payments commence. Only full surrenders are permitted
under Option 4.
OPTION 1 -- Life Annuity
An annuity payable monthly during the lifetime of the Annuitant and
terminating with the last payment preceding the death of the Annuitant. This
option offers the largest payment amount of any of the life annuity options
since there is no guarantee of a minimum number of payments nor a provision for
a Death Benefit payable to a Beneficiary.
It would be possible under this option for an Annuitant to receive only one
annuity payment if he died prior to the due date of the second annuity payment,
two if he died before the date of the third annuity payment, etc.
OPTION 2 -- Life Annuity with 120, 180 or 240 Monthly Payments Certain
An annuity payable monthly during the lifetime of an Annuitant with the
provision that payments will be made for a minimum of 120, 180 or 240 months, as
elected. If, at the death of the Annuitant, payments have been made for less
than the minimum elected number of months, then the present value as of the date
of the Annuitant's death, of any remaining guaranteed payments will be paid in
one sum to the Beneficiary or Beneficiaries designated unless other provisions
have been made and approved by Hartford.
OPTION 3 -- Joint and Last Survivor Annuity
An annuity payable monthly during the joint lifetime of the Annuitant and a
designated second person, and thereafter during the remaining lifetime of the
survivor, ceasing with the last payment prior to the death of the survivor.
Based on the options currently offered by Hartford, the Annuitant may elect that
the payment to the survivor be less than the payment made during the joint
lifetime of the Annuitant and a designated second person.
It would be possible under this option for an Annuitant and designated
second person to receive only one payment in the event of the common or
simultaneous death of the parties prior to the due date for the second payment
and so on.
OPTION 4 -- Payments for a Designated Period
An amount payable monthly for the number of years selected which may be from
5 to 30 years. Under this option, you may, at any time, surrender the
Certificate and receive, within seven days, the Surrender Value of the
Certificate as determined by Hartford.
In the event of the Annuitant's death prior to the end of the designated
period, the present value as of the date of the Annuitant's death, of any
remaining guaranteed payments will be paid in one sum to the Beneficiary or
Beneficiaries designated unless other provisions have been made and approved by
Hartford.
Option 4 is an option that does not involve life contingencies and thus no
mortality guarantee. Charges made for the mortality undertaking under the
Certificates thus provide no real benefit to an Owner.
Hartford may offer other annuity options from time to time.
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ANNUITY UNIT VALUATION
The value of the Annuity Unit for each Division in the Separate Account for
any day is determined by multiplying the value for the preceding day by the
product of (1) the Experience Factor (see "Value of Accumulation Units," page
14) for the day for which the value of the Annuity Unit
is being calculated and (2) a factor to neutralize the assumed investment rate
of 5.00% per annum discussed below.
DETERMINATION OF PAYMENT AMOUNT
When annuity payments are to commence, the Investment Value is determined as
the product of the value of Accumulation Units of each Division on that same day
and the number of Accumulation Units credited to each Division as of the date
the annuity is to commence.
The Certificate 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 Division under a Certificate. The first monthly payment varies
according to the form and type of annuity selected. The Certificate contains
annuity tables derived from the 1983a Individual Annuity Mortality Table with
ages set back one year and with an assumed investment rate ("A.I.R.") of 3% per
annum for the fixed annuity and 5% per annum for the variable annuity.
The total first monthly variable annuity payment is determined by
multiplying the value (expressed in thousands of dollars) of a Division (less
any applicable Premium Taxes) by the amount of the first monthly payment per
$1,000 of value obtained from the tables in the Certificates.
Fixed annuity payments are determined at annuitization by multiplying the
values allocated (less applicable Premium Taxes) by a rate to be determined by
Hartford which is no less than the rate specified in the annuity tables in the
Certificate. The annuity payment will remain level for the duration of the
annuity.
The amount of the first monthly variable annuity payment, determined as
described above, is divided by the value of an Annuity Unit for the appropriate
Division no earlier than the close of business on the fifth Valuation Day
preceding the day on which the payment is due in order to determine the number
of Annuity Units represented by the first payment. This number of Annuity Units
remains fixed during the annuity payment period, and in each subsequent month
the dollar amount of the variable annuity payment is determined by multiplying
this fixed number of Annuity Units by the then current Annuity Unit value.
THE A.I.R. ASSUMED IN THE TABLES WOULD PRODUCE LEVEL VARIABLE ANNUITY
PAYMENTS IF THE INVESTMENT RATE REMAINED CONSTANT. IN FACT, PAYMENTS WILL VARY
UP OR DOWN AS THE INVESTMENT RATE VARIES UP OR DOWN FROM THE A.I.R.
The Annuity Unit value used in calculating the amount of the variable
annuity payments will be based on an Annuity Unit value determined as of the
close of business on a day no earlier than the fifth Valuation Day preceding the
date of the annuity payment.
FEDERAL TAX CONSIDERATIONS
What are some of the federal tax consequences which affect these
Certificates?
A. GENERAL
SINCE THE TAX LAW IS COMPLEX AND SINCE TAX CONSEQUENCES WILL VARY ACCORDING
TO THE ACTUAL STATUS OF THE OWNER INVOLVED, LEGAL AND TAX ADVICE MAY BE NEEDED
BY A PERSON, TRUSTEE OR OTHER ENTITY CONTEMPLATING THE PURCHASE OF A CERTIFICATE
DESCRIBED HEREIN.
It should be understood that any detailed description of the federal income
tax consequences regarding the purchase of these Certificates cannot be made in
this Prospectus and that special tax rules may be applicable with respect to
certain purchase situations not discussed herein. In addition, no attempt is
made here to consider any applicable state or other tax laws. For detailed
information, a qualified tax adviser should always be consulted. This discussion
is based on Hartford's understanding of existing federal income tax laws as they
are currently interpreted.
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 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," page 14. As a result, such investment income and realized
capital gains are automatically applied to increase reserves under the
Certificate.
No taxes are due on interest, dividends and short-term or long-term capital
gains earned by the Separate Account with respect to the Certificates.
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C. TAXATION OF ANNUITIES -- GENERAL
PROVISIONS AFFECTING PURCHASERS OTHER THAN QUALIFIED RETIREMENT PLANS
Section 72 of the Code governs the taxation of annuities in general.
1. NON-NATURAL PERSONS, CORPORATIONS, ETC.
Section 72 contains provisions for Owners which are non-natural persons.
Non-natural persons include corporations, trusts, and partnerships. The annual
net increase in the value of the Certificate is currently includable in the
gross income of a non-natural person unless the non-natural person holds the
Certificate as an agent for a natural person. There is an exception 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 Owner is not an individual, the primary Annuitant shall be treated as
the Owner for purposes of making distributions which are required to be made
upon the death of the Owner. If there is a change in the primary Annuitant, such
change shall be treated as the death of the Owner.
2. OTHER OWNERS (NATURAL PERSONS).
An Owner is not taxed on increases in the value of the Certificate until an
amount is received or deemed received, e.g., in the form of a lump sum payment
(full or partial value of a Certificate) 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 Certificates obtained in a tax-free exchange for other
annuity contract or life insurance contract 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 Certificate (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 Certificate 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 Certificate or the assignment
or pledge of any portion of the value of the Certificate 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 Certificate, 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
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HARTFORD LIFE INSURANCE COMPANY 21
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aggregation rule referred to in the next subparagraph c. may apply).
C. AGGREGATION OF TWO OR MORE ANNUITY CERTIFICATES.
Certificates issued after October 21, 1988 by the same insurer (or
affiliated insurer) to the same Owner within the same calendar year (other than
certain contract 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
contract and the investment in the contract 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 contract
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 Certificate (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 for the life (or life expectancy) of the recipient (or
the joint lives or life expectancies of the recipient and the
recipient's 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 CERTIFICATES OBTAINED
THROUGH A TAX-FREE EXCHANGE OF OTHER ANNUITY OR
LIFE INSURANCE CERTIFICATES PURCHASED PRIOR TO
AUGUST 14, 1982.
If the Certificate 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 Certificate) 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-
exchange contracts are generally subject to the rules described in this
subparagraph 3.
F. REQUIRED DISTRIBUTIONS.
i. Death of Owner or Primary Annuitant
Subject to the alternative election or spouse beneficiary provisions in ii
or iii below:
1. If any Owner dies on or after the Annuity Commencement Date and before
the entire interest in the Certificate 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 Owner dies before the Annuity Commencement Date, the entire
interest in the Certificate will be distributed within 5 years after
such death; and
3. If the Owner is not an individual, then for purposes of 1. or 2. above,
the primary annuitant under the Certificate shall be treated as the
Owner, and any change in the primary annuitant shall be treated as the
death of the 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 Certificate.
ii. Alternative Election to Satisfy Distribution Requirements
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22 HARTFORD LIFE INSURANCE COMPANY
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If any portion of the interest of an 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 and
payments must begin within a year of the death.
iii. Spouse Beneficiary
If any portion of the interest of an 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 Owner of such portion for purposes of
section i. above.
3. DIVERSIFICATION REQUIREMENTS.
Section 817 of the Code 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
in accordance with regulations prescribed by the Treasury Department. If a
Certificate is not treated as an annuity contract, the Owner will be subject to
income tax on the annual increases in cash value.
The Treasury Department has issued diversification regulations which
generally 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 addition, in the case of
government securities, each government agency or instrumentality shall be
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 comply within a reasonable period and avoid the
taxation of contract income on an ongoing basis. However, either the company or
the Owner must agree to pay the tax due for the period during which the
diversification requirements were not met.
Hartford monitors the diversification of investments in the separate
accounts and tests for diversification as required by the Code. Hartford intends
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 segregated asset accounts supporting the variable contract must be
considered to be owned by the insurance company and not by the variable contract
owner. The Internal Revenue Service ("IRS") has issued several rulings which
discuss investor control. The IRS has ruled that incidents of ownership by the
Owner, such as the ability to select and control investments in a separate
account, will cause the Owner to be treated as the owner of the assets for tax
purposes.
Further, in the explanation to the temporary Section 817 diversification
regulations, the Treasury Department noted that the temporary regulations "do
not provide guidance concerning the circumstances in which investor control of
the investments of a segregated asset account may cause the investor, rather
than the insurance company, to be treated as the owner of the assets in the
account." The explanation further indicates that "the temporary regulations
provide that in appropriate cases a segregated asset account may include
multiple sub-accounts, but do not specify the extent to which policyholders may
direct their investments to particular sub-accounts without being treated as the
owners of the underlying assets. Guidance on this and other issues will be
provided in regulations or revenue rulings under Section 817(d), relating to the
definition of variable contract." The final regulations issued under Section 817
did not provide guidance regarding investor control, and as of the date of this
prospectus, no other such guidance has been issued. Further, Hartford does not
know if or in what form such guidance will be issued. In addition, although
regulations are generally issued with prospective effect, it is possible that
regulations may be issued with retroactive effect. Due to the lack of specific
guidance regarding the issue of investor control, there is necessarily some
uncertainty regarding whether an Owner could be considered the owner of the
assets for tax purposes. Hartford reserves the right to modify the Certificates,
as necessary, to prevent Owners from being considered the owners of the assets
in the separate accounts.
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 an election not to have taxes withheld is not
provided, 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
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HARTFORD LIFE INSURANCE COMPANY 23
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forms are not submitted to Hartford, Hartford will automatically withhold 10% of
the taxable distribution.
2. PERIODIC DISTRIBUTIONS.
A period distribution is a distribution 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. 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 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.
GENERAL MATTERS
ADDITIONS, DELETIONS OR
SUBSTITUTIONS OF INVESTMENTS
Hartford reserves the right, subject to compliance with the law as then in
effect, to make additions to, deletions from, or substitutions for the Separate
Account and its Divisions which fund the Group Annuity. If shares of any of the
Portfolios should no longer be available for investment, or if, in the judgment
of Hartford's management, further investment in shares of any Portfolio should
become inappropriate in view of the purposes of the Group Annuity, Hartford may
substitute shares of another Portfolio for shares already purchased, or to be
purchased in the future, under the Group Annuity. No substitution of securities
will take place without notice to and consent of Owners and without prior
approval of the SEC to the extent required by the Investment Company Act of
1940. Subject to Owner approval, if required, Hartford also reserves the right
to end the registration under the Investment Company Act of 1940 of the Separate
Account or any other separate accounts of which it is the depositor which may
fund the Group Annuity.
ASSIGNMENT
Benefits under a Certificate described herein are assignable by the Owner
only if Hartford agrees. An assignment of a Certificate may subject the
assignment proceeds to income taxes and certain penalty taxes. See "Taxation of
Annuities -- General Provisions Affecting Purchasers Other Than Qualified
Retirement Plans," page 19.
MODIFICATION
Hartford reserves the right to modify the Certificate, but only if such
modification (i) is necessary to make the Certificate or the Separate Account
comply with any law or regulation issued by a governmental agency to which
Hartford is subject; or (ii) is necessary to assure continued tax advantages for
the Certificate under the Code or other federal or state laws; or (iii) is
necessary to reflect a change in the operation of the Separate Account or the
Division(s) or (iv) provides additional Separate Account options or (v)
withdraws Separate Account options. In the event of any such modification,
Hartford will provide notice to the Owner or to the payee(s) during the annuity
period. Hartford may also make appropriate endorsement in the Certificate to
reflect such modification.
MISSTATEMENT OF AGE
If the age of the Annuitant has been misstated, the amount of the annuity
payable by Hartford will be that provided by that portion of the amounts
allocated to effect such annuity on the basis of the corrected information
without changing the date of the first payment of such annuity. Any
underpayments by Hartford shall be made up immediately and any overpayments
shall be charged against future amounts becoming payable.
DELAY OF PAYMENTS
There may be postponement of a surrender payment or Death Benefit whenever
(a) the NYSE is closed, except for holidays or weekends, or trading on the NYSE
is restricted as determined by the SEC; (b) the SEC permits postponement and so
orders; or (c) the SEC determines that an emergency exists making valuation or
disposal of securities not reasonably practicable.
VOTING RIGHTS
Hartford will notify you of any Portfolio shareholders' meeting if the
shares held for your account may be voted at such meetings. Hartford will also
send proxy materials and a form of instruction by means of which you can
instruct Hartford with respect to the voting of the Portfolio shares held for
your account.
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24 HARTFORD LIFE INSURANCE COMPANY
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In connection with the voting of Portfolio shares held by it, Hartford will
arrange for the handling and tallying of voting instructions received from
Owners. Hartford as such, shall have no right, except as hereinafter provided,
to vote any Portfolio shares held by it hereunder which may be registered in its
name or the names of its nominees. Hartford will, however, vote the Portfolio
shares held by it in accordance with the instructions received from the Owners
for whose accounts the Portfolio shares are held. If an Owner desires to attend
any meeting at which shares held for the Owner's benefit may be voted, the Owner
may request Hartford to furnish a proxy or otherwise arrange for the exercise of
voting rights with respect to the Portfolio shares held for such Owner's
account. In the event that the Owner gives no instructions or leaves the manner
of voting discretionary, Hartford will vote such shares of the appropriate
Portfolio in the same proportion as shares of that Portfolio for which
instructions have been received. During the annuity period under a Certificate
the number of votes will decrease as the assets held to fund annuity benefits
decrease.
EXPERIENCE CREDIT
The Certificates issued under a corporate-sponsored plan may be eligible for
experience credits due to administrative savings. The amount of any experience
credit may be paid in cash or applied to and used to increase Investment Value.
DISTRIBUTION OF THE GROUP ANNUITY
The Group Annuity will be sold by insurance and variable annuity agents of
Hartford who are either registered representatives of Hartford Equity Sales
Company, Inc. ("HESCO"), a wholly-owned broker-dealer subsidiary of Hartford, or
of independent broker-dealers. These broker-dealers are registered with the SEC
under the Securities Exchange Act of 1934 as a broker-dealer and are members of
the National Association of Securities Dealers, Inc.
Commissions will be paid by Hartford and will not be more than 4.6% of
Premium Payments. From time to time, Hartford may pay or permit other
promotional incentives, in cash or credit, service fees, asset-based trail
commissions, or other compensation.
Broker-dealers or financial institutions are compensated according to a
schedule set forth by HESCO and any applicable rule or regulations for variable
insurance compensation. Compensation is generally based on premium payments made
by policyholders or contract owners. This compensation is usually paid from the
sales charges described in this Prospectus.
In addition, a broker-dealer or financial institution may also receive
additional compensation for, among other things, training, marketing or other
services provided. HESCO, its affiliates or Hartford may also make compensation
arrangements with certain broker-dealers or financial institutions based on
total sales by the broker-dealer or financial institution of insurance products.
These payments, which may be different for different broker-dealers or financial
institutions, will be made by HESCO, its affiliates or Hartford out of their own
assets and will not effect the amounts paid by the policyholders or contract
owners to purchase, hold or surrender variable insurance products.
SAFEKEEPING OF SEPARATE ACCOUNT ASSETS
The assets of the Separate Account are held by Hartford and are kept
physically segregated and held separate and apart from the other accounts of
Hartford. Additional protection for the assets of the Separate Account is
afforded by Hartford's blanket fidelity bond issued by Aetna Casualty and Surety
Company, in the aggregate amount of $50 million, covering all of the officers
and employees of Hartford.
LEGAL PROCEEDINGS
There are no material legal proceedings pending to which the Separate
Account is a party.
LEGAL COUNSEL
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 Secretary, Hartford Life, P.O. Box
2999, Hartford, Connecticut 06104-2999.
EXPERTS
The audited financial statements and financial statement schedules included
in this prospectus and elsewhere in the registration statement have been audited
by Arthur Andersen LLP, independent public accountants, as indicated in their
report with respect thereto, and are included herein in reliance upon the
authority of said firm as experts in giving said report. The principal business
address of Arthur Andersen LLP is One Financial Plaza, Hartford, Connecticut
06103.
ADDITIONAL INFORMATION
Inquiries will be answered by calling your representative or by writing:
International Corporate Marketing Group
Attn: Group Annuity Operations
100 Campus Drive, Suite 250
Florham Park, NJ 07932
Telephone: 800-861-1408
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HARTFORD LIFE INSURANCE COMPANY 25
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TABLE OF CONTENTS
OF THE
STATEMENT OF ADDITIONAL INFORMATION
<TABLE>
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PAGE
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<S> <C>
DESCRIPTION OF HARTFORD LIFE INSURANCE COMPANY........................
SAFEKEEPING OF ASSETS.................................................
INDEPENDENT PUBLIC ACCOUNTANTS........................................
DISTRIBUTION OF CERTIFICATES..........................................
CALCULATION OF YIELD AND RETURN.......................................
PERFORMANCE COMPARISONS...............................................
FINANCIAL STATEMENTS..................................................
</TABLE>
<PAGE>
To Obtain a Statement of Additional Information, please complete this form
and mail to:
International Corporate Marketing Group
Attn: Group Annuity Operations
100 Campus Drive, Suite 250
Florham Park, NJ 07932
Please send a Statement of Additional Information for OmniFlex-TM- funded by
ICMG Secular Trust Separate Account to me at the following address:
- ----------------------------------------------------
Name
- ------------------------------------------------------------
Address
- ------------------------------------------------------------
City/State Zip
Code
<PAGE>
The following prospectuses contain information relating to all of the funds
offered by the Hartford, Fidelity, and Morgan Stanley prospectuses. Not all of
the funds in the Hartford, Fidelity, and Morgan Stanley prospectuses are
available to OmniFlex-TM- Policy Owners. Please review the OmniFlex product
prospectus for details regarding available funds (see "The Portfolios").
