<PAGE>
STAG VARIABLE LIFE
SEPARATE ACCOUNT VL I
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SUPPLEMENT DATED JANUARY 2, 2001 TO PROSPECTUS DATED MAY 1, 2000
Effective January 15, 2001 the following changes apply:
The following Sub-Accounts are added in alphabetical order to the cover page of
the prospectus:
- AMERICAN FUNDS GLOBAL GROWTH FUND SUB-ACCOUNT Class 2 of the Global Growth
Fund of American Funds Insurance Series
- AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND SUB-ACCOUNT Class 2 of the
Global Small Capitalization Fund of American Funds Insurance Series
- AMERICAN FUNDS GROWTH FUND SUB-ACCOUNT Class 2 of the Growth Fund of American
Funds Insurance Series
- AMERICAN FUNDS GROWTH-INCOME FUND SUB-ACCOUNT Class 2 of the Growth-Income
Fund of American Funds Insurance Series
- HARTFORD GLOBAL LEADERS SUB-ACCOUNT Class IA of Hartford Global Leaders HLS
Fund of Hartford Series Fund, Inc.
- HARTFORD GLOBAL TECHNOLOGY SUB-ACCOUNT Class IA of Hartford Global Technology
HLS Fund of Hartford Series Fund, Inc.
Under the section entitled "Summary of Benefits and Risks", the paragraph
entitled "Investment Choices" is deleted and replaced with the following:
INVESTMENT CHOICES -- You may invest in up to 9 different investment choices
within your policy, from a choice of 42 investment options and a Fixed Account.
You may transfer money among your investment choices, subject to restrictions.
The table of Annual Fund Operating Expenses is deleted and replaced with the
following:
<TABLE>
<CAPTION>
TOTAL FUND
OPERATING
OTHER EXPENSES
MANAGEMENT FEES 12B-1 FEES EXPENSES (INCLUDING ANY
(INCLUDING ANY (INCLUDING ANY (INCLUDING ANY WAIVERS AND/OR
WAIVERS) WAIVERS) REIMBURSEMENTS) ANY REIMBURSEMENTS)
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
American Funds Global Growth Fund 0.68% 0.25% 0.03% 0.96%
--------------------------------------------------------------------------------------------------------------------------
American Funds Global Small Capitalization Fund 0.79% 0.25% 0.03% 1.07%
--------------------------------------------------------------------------------------------------------------------------
American Funds Growth Fund 0.38% 0.25% 0.01% 0.64%
--------------------------------------------------------------------------------------------------------------------------
American Funds Growth-Income Fund 0.34% 0.25% 0.01% 0.60%
--------------------------------------------------------------------------------------------------------------------------
Hartford Advisers HLS Fund 0.63% N/A 0.02% 0.65%
--------------------------------------------------------------------------------------------------------------------------
Hartford Bond HLS Fund 0.49% N/A 0.03% 0.52%
--------------------------------------------------------------------------------------------------------------------------
Hartford Capital Appreciation HLS Fund 0.64% N/A 0.02% 0.66%
--------------------------------------------------------------------------------------------------------------------------
Hartford Dividend and Growth HLS Fund 0.65% N/A 0.03% 0.68%
--------------------------------------------------------------------------------------------------------------------------
Hartford Global Leaders HLS Fund 0.74% N/A 0.12% 0.86%
--------------------------------------------------------------------------------------------------------------------------
Hartford Global Technology HLS Fund (1) 0.85% N/A 0.25% 1.10%
--------------------------------------------------------------------------------------------------------------------------
Hartford Growth and Income HLS Fund 0.78% N/A 0.04% 0.82%
--------------------------------------------------------------------------------------------------------------------------
Hartford Index HLS Fund 0.40% N/A 0.03% 0.43%
--------------------------------------------------------------------------------------------------------------------------
Hartford International Advisers HLS Fund 0.76% N/A 0.09% 0.85%
--------------------------------------------------------------------------------------------------------------------------
Hartford International Opportunities HLS Fund 0.69% N/A 0.09% 0.78%
--------------------------------------------------------------------------------------------------------------------------
Hartford MidCap HLS Fund 0.76% N/A 0.03% 0.79%
--------------------------------------------------------------------------------------------------------------------------
Hartford Money Market HLS Fund 0.45% N/A 0.02% 0.47%
--------------------------------------------------------------------------------------------------------------------------
Hartford Mortgage Securities HLS Fund 0.45% N/A 0.03% 0.48%
--------------------------------------------------------------------------------------------------------------------------
Hartford Small Company HLS Fund 0.75% N/A 0.03% 0.78%
--------------------------------------------------------------------------------------------------------------------------
Hartford Stock HLS Fund 0.46% N/A 0.02% 0.48%
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
HV-2860
333-61267 1 of 10
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL FUND
OPERATING
OTHER EXPENSES
MANAGEMENT FEES 12B-1 FEES EXPENSES (INCLUDING ANY
(INCLUDING ANY (INCLUDING ANY (INCLUDING ANY WAIVERS AND/OR
WAIVERS) WAIVERS) REIMBURSEMENTS) ANY REIMBURSEMENTS)
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
Putnam VT Asia Pacific Growth Fund 0.80% N/A 0.33% 1.13%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT Diversified Income Fund 0.68% N/A 0.10% 0.78%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT Global Asset Allocation Fund 0.65% N/A 0.12% 0.77%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT Global Growth Fund 0.61% N/A 0.12% 0.73%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT Growth and Income Fund 0.46% N/A 0.04% 0.50%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT Health Sciences Fund 0.70% N/A 0.13% 0.83%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT High Yield Fund 0.65% N/A 0.07% 0.72%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT Income Fund 0.60% N/A 0.07% 0.67%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT International Growth Fund 0.80% N/A 0.22% 1.02%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT International Growth and Income Fund 0.80% N/A 0.18% 0.98%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT International New Opportunities Fund 1.08% N/A 0.33% 1.41%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT Investors Fund 0.63% N/A 0.08% 0.71%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT Money Market Fund 0.41% N/A 0.08% 0.49%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT New Opportunities Fund 0.54% N/A 0.05% 0.59%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT New Value Fund 0.70% N/A 0.10% 0.80%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT OTC & Emerging Growth Fund (2) 0.53% N/A 0.37% 0.90%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT The George Putnam Fund of Boston 0.65% N/A 0.18% 0.83%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT Utilities Growth and Income Fund 0.65% N/A 0.06% 0.71%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT Vista Fund 0.65% N/A 0.10% 0.75%
--------------------------------------------------------------------------------------------------------------------------
Putnam VT Voyager Fund 0.53% N/A 0.04% 0.57%
--------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Asset Manager Portfolio (3) 0.53% N/A 0.09% 0.62%
--------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio (3) 0.48% N/A 0.08% 0.56%
--------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio (3) 0.73% N/A 0.14% 0.87%
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Hartford Global Technology HLS Fund is a new fund. Total Fund Operating
Expenses are based on annualized estimates of such expenses to be incurred
during the current fiscal year.
(2) Total Annual Fund Operating Expenses for Putnam VT OTC & Emerging Growth
Fund reflect voluntary reductions and reimbursements through at least
December 31, 2000. Absent voluntary reductions and reimbursements, Total
Annual Fund Operating Expenses would have been as follows:
<TABLE>
<CAPTION>
TOTAL
FUND
OTHER OPERATING
MANAGEMENT FEES EXPENSES EXPENSES
<S> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Putnam VT OTC & Emerging Growth Fund 0.70% 0.37% 1.07%
--------------------------------------------------------------------------------------------------------
</TABLE>
(3) A portion of the brokerage commissions that certain funds pay was used to
reduce fund expenses. In addition, through arrangements with certain funds
of FMR on behalf of certain funds' custodian, credits realized as a result
of uninvested cash balances were used to reduce a portion of each applicable
fund's expenses. These reductions will continue through at least
HV-2860 2 of 10
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
December 31, 2000 pursuant to an agreement between the adviser and the
funds. Without these reductions, Total Fund Operating Expenses would have
been:
<TABLE>
<CAPTION>
TOTAL
FUND
OTHER OPERATING
MANAGEMENT FEES EXPENSES EXPENSES
<S> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Fidelity VIP II Asset Manager Portfolio 0.53% 0.10% 0.63%
--------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio 0.48% 0.09% 0.57%
--------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio 0.73% 0.18% 0.91%
--------------------------------------------------------------------------------------------------------
</TABLE>
The following is added in the section entitled "About Us" immediately following
the Hartford Ratings table:
These ratings apply to Hartford's ability to meet its obligations under the
Contract. The ratings do not apply to the Separate Account or the underlying
Funds.
Under the section entitled "The Funds", the following language is added in
alphabetical order:
AMERICAN FUNDS GLOBAL GROWTH FUND -- Seeks long-term growth of capital by
investing primarily in common stocks of issuers domiciled around the world.
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND -- Seeks long-term growth of
capital by investing primarily in equity securities of smaller companies located
around the world that typically have market capitalization of $50 million to
$1.5 billion.
AMERICAN FUNDS GROWTH FUND -- Seeks long-term growth of capital by investing
primarily in common stocks which demonstrate the potential for appreciation.
AMERICAN FUNDS GROWTH-INCOME FUND -- Seeks growth of capital and income by
investing primarily in common stocks or other securities which demonstrate the
potential for appreciation and/or dividends.
HARTFORD GLOBAL LEADERS HLS FUND -- Seeks growth of capital by investing
primarily in equity securities issued through high-quality growth companies
worldwide that, in the opinion of Wellington Management, are leaders within
their respective industries as indicated by established market presence and
strong competitive position on a global, regional or country basis. Sub-advised
by Wellington Management.
HARTFORD GLOBAL TECHNOLOGY HLS FUND -- Seeks long-term capital appreciation by
investing in equity securities of technology companies worldwide. Sub-advised by
Wellington Management.
The following text is added under the section entitled "The Funds":
The Funds may not be available in all states.
Under the section entitled "The Funds", under the sub-section entitled
Investment Advisers, the following paragraph is inserted as the first paragraph
of the section:
American Funds Global Growth Fund, American Funds Global Small Capitalization
Fund, American Funds Growth Fund and American Funds Growth-Income Fund are all
part of American Funds Insurance Series. American Funds Insurance Series is a
fully managed, diversified, open-end investment company organized as a
Massachusetts business trust in 1983. American Funds Insurance Series offers two
classes of fund shares: Class 1 shares and Class 2 shares. This policy invests
only in Class 2 shares of American Funds Insurance Series. The investment
adviser for each of the funds of American Funds Insurance Series is Capital
Research and Management Company located at 333 South Hope Street, Los Angeles,
California 90071. Capital Research and Management Company is a wholly owned
subsidiary of The Capital Growth Companies, Inc.
Under the section entitled "Investment Advisers", the second paragraph is
deleted and replaced with the following:
Each Hartford HLS Fund, except for Hartford Global Leaders HLS Fund, Hartford
Global Technology HLS Fund and Hartford Growth and Income HLS Fund is a separate
Maryland corporation registered with the Securities and Exchange Commission as
an open-end management investment company. Hartford Global Leaders HLS Fund and
Hartford Growth and Income HLS Fund are diversified series of Hartford Series
Fund, Inc., a Maryland corporation, also registered with the Securities and
Exchange Commission as an open-end management investment company. Hartford
Global Technology HLS Fund is a non-diversified series of Hartford Series Fund,
Inc. The shares of each Fund have been divided into Class IA and Class IB. Only
Class IA shares are available in this policy.
HV-2860 3 of 10
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
The third paragraph under the sub-section entitled "Illustration of Death
Benefits, Account Values and Cash Surrender Values" in the section entitled
"Statement of Additional Information" is deleted and replaced with the
following:
The tables reflect the fact that the net return on the assets held in the
Sub-Accounts is lower than the gross after-tax return of the Funds. This is
because the illustrations assume an investment management fee and other
estimated Fund expenses totaling 0.75%. The 0.75% figure is based on an average
of the current management fees and expenses of the 42 available Funds, taking
into account any applicable expense caps or reimbursement arrangements. Actual
fees and expenses of the Funds associated with a policy may be more or less than
0.75%, will vary from year to year, and will depend on how the Account Value is
allocated.
The six "Illustration of Death Benefits, Account Values and Cash Surrender
Values" tables in the section entitled "Statement of Additional Information" are
replaced with the attached six tables.
The attached Financial Statements are added to the section entitled "Statement
of Additional Information."
THIS SUPPLEMENT SHOULD BE RETAINED WITH THE PROSPECTUS FOR FUTURE REFERENCE.
HV-2860 4 of 10
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
DEATH BENEFIT OPTION: LEVEL
GUARANTEE PERIOD: 1 YEAR
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED PLUS
$4,000 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
1 4,200 3,618 3,218 250,000 3,618 3,218 250,000
2 8,610 7,684 7,329 250,000 7,175 6,819 250,000
3 13,241 12,028 11,717 250,000 11,016 10,705 250,000
4 18,103 16,725 16,458 250,000 15,167 14,900 250,000
5 23,208 21,833 21,611 250,000 19,652 19,430 250,000
6 28,568 27,415 27,237 250,000 24,496 24,318 250,000
7 34,196 33,521 33,388 250,000 29,728 29,595 250,000
8 40,106 40,224 40,135 250,000 35,377 35,289 250,000
9 46,312 47,574 47,529 250,000 41,477 41,433 250,000
10 52,827 55,625 55,625 250,000 48,065 48,065 250,000
11 59,669 64,392 64,392 250,000 55,186 55,186 250,000
12 66,852 73,947 73,947 250,000 62,895 62,895 250,000
13 74,395 84,362 84,362 250,000 71,258 71,258 250,000
14 82,314 95,740 95,740 250,000 80,343 80,343 250,000
15 90,630 108,194 108,194 250,000 90,228 90,228 250,000
16 99,361 121,782 121,782 250,000 101,002 101,002 250,000
17 108,530 136,718 136,718 250,000 112,773 112,773 250,000
18 118,156 153,165 153,165 250,000 125,659 125,659 250,000
19 128,264 171,305 171,305 250,000 139,806 139,806 250,000
20 138,877 191,348 191,348 250,000 155,393 155,393 250,000
25 200,454 338,511 338,511 392,672 262,654 262,654 304,679
30 279,043 579,381 579,381 619,937 432,244 432,244 462,501
------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
HV-2860 5 of 10
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
DEATH BENEFIT OPTION: LEVEL
GUARANTEE PERIOD: 1 YEAR
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED PLUS
$4,000 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
1 4,200 3,406 3,006 250,000 3,406 3,006 250,000
2 8,610 7,035 6,679 250,000 6,540 6,184 250,000
3 13,241 10,686 10,375 250,000 9,731 9,420 250,000
4 18,103 14,406 14,139 250,000 12,978 12,711 250,000
5 23,208 18,220 17,998 250,000 16,276 16,054 250,000
6 28,568 22,152 21,974 250,000 19,617 19,439 250,000
7 34,196 26,210 26,077 250,000 22,994 22,860 250,000
8 40,106 30,417 30,328 250,000 26,394 26,305 250,000
9 46,312 34,768 34,724 250,000 29,807 29,763 250,000
10 52,827 39,259 39,259 250,000 33,219 33,219 250,000
11 59,669 43,833 43,833 250,000 36,619 36,619 250,000
12 66,852 48,486 48,486 250,000 39,996 39,996 250,000
13 74,395 53,208 53,208 250,000 43,344 43,344 250,000
14 82,314 58,005 58,005 250,000 46,647 46,647 250,000
15 90,630 62,885 62,885 250,000 49,886 49,886 250,000
16 99,361 67,761 67,761 250,000 53,037 53,037 250,000
17 108,530 72,735 72,735 250,000 56,076 56,076 250,000
18 118,156 77,813 77,813 250,000 58,967 58,967 250,000
19 128,264 82,996 82,996 250,000 61,668 61,668 250,000
20 138,877 88,290 88,290 250,000 64,141 64,141 250,000
25 200,454 121,827 121,827 250,000 71,618 71,618 250,000
30 279,043 161,790 161,790 250,000 62,973 62,973 250,000
------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
HV-2860 6 of 10
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
DEATH BENEFIT OPTION: LEVEL
GUARANTEE PERIOD: 1 YEAR
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED PLUS
$4,000 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
1 4,200 3,194 2,794 250,000 3,194 2,794 250,000
2 8,610 6,411 6,056 250,000 5,931 5,575 250,000
3 13,241 9,446 9,135 250,000 8,548 8,236 250,000
4 18,103 12,347 12,081 250,000 11,042 10,776 250,000
5 23,208 15,139 14,917 250,000 13,411 13,188 250,000
6 28,568 17,841 17,663 250,000 15,642 15,464 250,000
7 34,196 20,458 20,324 250,000 17,730 17,597 250,000
8 40,106 23,009 22,920 250,000 19,662 19,573 250,000
9 46,312 25,485 25,440 250,000 21,426 21,382 250,000
10 52,827 27,874 27,874 250,000 23,009 23,009 250,000
11 59,669 30,115 30,115 250,000 24,398 24,398 250,000
12 66,852 32,198 32,198 250,000 25,584 25,584 250,000
13 74,395 34,109 34,109 250,000 26,558 26,558 250,000
14 82,314 35,850 35,850 250,000 27,303 27,303 250,000
15 90,630 37,423 37,423 250,000 27,798 27,798 250,000
16 99,361 38,726 38,726 250,000 28,015 28,015 250,000
17 108,530 39,867 39,867 250,000 27,928 27,928 250,000
18 118,156 40,842 40,842 250,000 27,494 27,494 250,000
19 128,264 41,643 41,643 250,000 26,666 26,666 250,000
20 138,877 42,262 42,262 250,000 25,398 25,398 250,000
25 200,454 44,459 44,459 250,000 10,672 10,672 250,000
30 279,043 38,259 38,259 250,000 0 0 250,000
------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
HV-2860 7 of 10
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
DEATH BENEFIT OPTION: LEVEL
GUARANTEE PERIOD: 10 YEARS
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED PLUS
$4,000 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
1 4,200 1,463 0 250,000 1,463 0 250,000
2 8,610 4,915 1,004 250,000 4,915 1,004 250,000
3 13,241 8,622 5,200 250,000 8,622 5,200 250,000
4 18,103 12,656 9,722 250,000 12,656 9,722 250,000
5 23,208 17,074 14,629 250,000 17,074 14,629 250,000
6 28,568 21,935 19,980 250,000 21,935 19,980 250,000
7 34,196 27,293 25,826 250,000 27,293 25,826 250,000
8 40,106 33,216 32,238 250,000 33,216 32,238 250,000
9 46,312 39,759 39,270 250,000 39,759 39,270 250,000
10 52,827 46,982 46,982 250,000 46,982 46,982 250,000
11 59,669 55,257 55,257 250,000 54,299 54,299 250,000
12 66,852 64,343 64,343 250,000 62,287 62,287 250,000
13 74,395 74,320 74,320 250,000 71,030 71,030 250,000
14 82,314 85,301 85,301 250,000 80,612 80,612 250,000
15 90,630 97,408 97,408 250,000 91,135 91,135 250,000
16 99,361 110,714 110,714 250,000 102,711 102,711 250,000
17 108,530 125,446 125,446 250,000 115,479 115,479 250,000
18 118,156 141,785 141,785 250,000 129,594 129,594 250,000
19 128,264 159,935 159,935 250,000 145,246 145,246 250,000
20 138,877 180,128 180,128 250,000 162,666 162,666 250,000
25 200,454 319,124 319,124 370,184 285,074 285,074 330,686
30 279,043 546,875 546,875 585,156 484,931 484,931 518,876
------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
HV-2860 8 of 10
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
DEATH BENEFIT OPTION: LEVEL
GUARANTEE PERIOD: 10 YEARS
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED PLUS
$4,000 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
1 4,200 1,368 0 250,000 1,368 0 250,000
2 8,610 4,537 6 25 250,000 4,537 625 250,000
3 13,241 7,744 4,322 250,000 7,744 4,322 250,000
4 18,103 11,033 8,100 250,000 11,033 8,100 250,000
5 23,208 14,431 11,986 250,000 14,431 11,986 250,000
6 28,568 17,958 16,003 250,000 17,958 16,003 250,000
7 34,196 21,625 20,159 250,000 21,625 20,159 250,000
8 40,106 25,454 24,477 250,000 25,454 24,477 250,000
9 46,312 29,446 28,957 250,000 29,446 28,957 250,000
10 52,827 33,597 33,597 250,000 33,597 33,597 250,000
11 59,669 38,192 38,192 250,000 37,195 37,195 250,000
12 66,852 42,911 42,911 250,000 40,810 40,810 250,000
13 74,395 47,743 47,743 250,000 44,438 44,438 250,000
14 82,314 52,703 52,703 250,000 48,065 48,065 250,000
15 90,630 57,797 57,797 250,000 51,675 51,675 250,000
16 99,361 62,950 62,950 250,000 55,247 55,247 250,000
17 108,530 68,260 68,260 250,000 58,763 58,763 250,000
18 118,156 73,736 73,736 250,000 62,189 62,189 250,000
19 128,264 79,388 79,388 250,000 65,489 65,489 250,000
20 138,877 85,224 85,224 250,000 68,629 68,629 250,000
25 200,454 116,994 116,994 250,000 80,738 80,738 250,000
30 279,043 154,300 154,300 250,000 80,196 80,196 250,000
------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
HV-2860 9 of 10
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
DEATH BENEFIT OPTION: LEVEL
GUARANTEE PERIOD: 10 YEARS
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED PLUS
$4,000 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------------------------------------
END OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
1 4,200 1,273 0 250,000 1,273 0 250,000
2 8,610 4,170 259 250,000 4,170 259 250,000
3 13,241 6,923 3,500 250,000 6,923 3,500 250,000
4 18,103 9,573 6,640 250,000 9,573 6,640 250,000
5 23,208 12,143 9,699 250,000 12,143 9,699 250,000
6 28,568 14,649 12,694 250,000 14,649 12,694 250,000
7 34,196 17,096 15,629 250,000 17,096 15,629 250,000
8 40,106 19,497 18,519 250,000 19,497 18,519 250,000
9 46,312 21,847 21,358 250,000 21,847 21,358 250,000
10 52,827 24,135 24,135 250,000 24,135 24,135 250,000
11 59,669 26,615 26,615 250,000 25,604 25,604 250,000
12 66,852 28,962 28,962 250,000 26,881 26,881 250,000
13 74,395 31,156 31,156 250,000 27,956 27,956 250,000
14 82,314 33,204 33,204 250,000 28,809 28,809 250,000
15 90,630 35,102 35,102 250,000 29,419 29,419 250,000
16 99,361 36,758 36,758 250,000 29,756 29,756 250,000
17 108,530 38,268 38,268 250,000 29,792 29,792 250,000
18 118,156 39,629 39,629 250,000 29,482 29,482 250,000
19 128,264 40,834 40,834 250,000 28,777 28,777 250,000
20 138,877 41,876 41,876 250,000 27,628 27,628 250,000
25 200,454 43,471 43,471 250,000 13,333 13,333 250,000
30 279,043 36,612 36,612 250,000 0 0 0
------------------------------------------------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN
THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
HV-2860 10 of 10
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
INDEX FOR HARTFORD AND FIDELITY
SUB-ACCOUNTS
Statements of Assets and
Liabilities For the Period Ended
September 30, 2000
(unaudited)..................... SA-2
Statements of Operations For the
Period Ended September 30, 2000
(unaudited)..................... SA-4
Statements of Changes in Net
Assets For the Period Ended
September 30, 2000
(unaudited)..................... SA-6
INDEX FOR PUTNAM SUB-ACCOUNTS
Statements of Assets and
Liabilities For the Period Ended
September 30, 2000
(unaudited)..................... SA-8
Statements of Operations For the
Period Ended September 30, 2000
(unaudited)..................... SA-12
Statements of Changes in Net
Assets For the Period Ended
September 30, 2000
(unaudited)..................... SA-15
</TABLE>
SA-1
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Bond Stock Money Advisers Capital Mortgage Index
Fund Fund Market Fund Appreciation Securities Fund
Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account
Sub-Account Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
--------------------------------------------------------------------------------------------------------------------------
HARTFORD BOND HLS FUND, INC. --
CLASS IA
Shares 13,643,119
Cost $14,431,575
.........................................................................................................................
Market Value $14,507,329 $ -- $ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD STOCK HLS
FUND, INC. -- CLASS IA
Shares 13,086,490
Cost $84,205,177
.........................................................................................................................
Market Value -- 81,343,099 -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD MONEY MARKET HLS
FUND, INC. -- CLASS IA
Shares 36,519,763
Cost $36,519,763
.........................................................................................................................
Market Value -- -- 36,519,763 -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD ADVISERS HLS
FUND, INC. -- CLASS IA
Shares 14,055,338
Cost $40,081,143
.........................................................................................................................
Market Value -- -- -- 38,134,198 -- -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS
FUND, INC. -- CLASS IA
Shares 11,182,083
Cost $60,071,250
.........................................................................................................................
Market Value -- -- -- -- 70,610,458 -- --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD MORTGAGE SECURITIES HLS
FUND, INC. -- CLASS IA
Shares 1,014,534
Cost $1,106,370
.........................................................................................................................
Market Value -- -- -- -- -- 1,113,951 --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INDEX HLS
FUND, INC. -- CLASS IA
Shares 8,754,516
Cost $31,660,930
.........................................................................................................................
Market Value -- -- -- -- -- -- 35,692,303
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS FUND, INC. --
CLASS IA
Shares 8,618,478
Cost $12,825,896
.........................................................................................................................
Market Value -- -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life & Annuity
Insurance Company 150,933 179,214 2,332,555 135,462 165,905 15,888 137,378
.........................................................................................................................
Receivable from fund shares sold -- -- -- -- -- -- --
.........................................................................................................................
Total Assets 14,658,262 81,522,313 38,852,318 38,269,660 70,776,363 1,129,839 35,829,681
.........................................................................................................................
LIABILITIES:
Due to Hartford Life & Annuity
Insurance Company -- -- -- -- -- -- --
.........................................................................................................................
Payable for fund shares purchased 150,968 179,680 2,328,216 135,429 166,279 15,894 138,722
.........................................................................................................................
Total Liabilities 150,968 179,680 2,328,216 135,429 166,279 15,894 138,722
--------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $14,507,294 $81,342,633 $36,524,102 $38,134,231 $70,610,084 $1,113,945 $35,690,959
--------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 9,274,025 22,234,544 25,556,915 14,145,637 17,382,099 716,255 10,133,256
.........................................................................................................................
Unit Values $ 1.564293 $ 3.658390 $ 1.429128 $ 2.695830 $ 4.062230 $ 1.555236 $ 3.522161
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
September 30, 2000 International
Opportunities
Fund
Sub-Account
------------------------------------------------------------
ASSETS
Investments:
------------------------------------------------------------------------
HARTFORD BOND HLS FUND, INC. --
CLASS IA
Shares 13,643,119
Cost $14,431,575
................................
Market Value $ --
------------------------------------------------------------------------------------
HARTFORD STOCK HLS
FUND, INC. -- CLASS IA
Shares 13,086,490
Cost $84,205,177
................................
Market Value --
------------------------------------------------------------------------------------------------
HARTFORD MONEY MARKET HLS
FUND, INC. -- CLASS IA
Shares 36,519,763
Cost $36,519,763
................................
Market Value --
------------------------------------------------------------------------------------------------------------
HARTFORD ADVISERS HLS
FUND, INC. -- CLASS IA
Shares 14,055,338
Cost $40,081,143
................................
Market Value --
------------------------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS
FUND, INC. -- CLASS IA
Shares 11,182,083
Cost $60,071,250
................................
Market Value --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD MORTGAGE SECURITIES HLS
FUND, INC. -- CLASS IA
Shares 1,014,534
Cost $1,106,370
................................
Market Value --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INDEX HLS
FUND, INC. -- CLASS IA
Shares 8,754,516
Cost $31,660,930
................................
Market Value --
--------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS FUND, INC. --
CLASS IA
Shares 8,618,478
Cost $12,825,896
................................
Market Value 12,558,768
--------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life & Annuity
Insurance Company 98,053
................................
Receivable from fund shares sold --
................................
Total Assets 12,656,821
................................
LIABILITIES:
Due to Hartford Life & Annuity
Insurance Company --
................................
Payable for fund shares purchased 98,191
................................
Total Liabilities 98,191
--------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $12,558,630
--------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 6,014,160
................................
Unit Values $ 2.088177
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-2
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Dividend Growth International Small MidCap Fidelity Fidelity Fidelity
and Growth and Income Advisers Company Fund VIP VIP VIP II
Fund Fund Fund Fund Sub-Account Equity-Income Overseas Asset
Sub-Account Sub-Account Sub-Account Sub-Account Portfolio Portfolio Manager
Sub-Account Sub-Account Portfolio
Sub-Account
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
-------------------------------------------------------------------------------------------------------------------------------
HARTFORD DIVIDEND AND GROWTH
HLS FUND, INC. -- CLASS IA
Shares 12,889,773
Cost $26,595,604
..............................................................................................................................
Market Value $26,467,949 $ -- $ -- $ -- $ -- $ -- $ -- $ --
-------------------------------------------------------------------------------------------------------------------------------
HARTFORD GROWTH AND INCOME
HLS FUND, INC. -- CLASS IA
Shares 4,174,639
Cost $5,731,014
..............................................................................................................................
Market Value -- 6,005,823 -- -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
ADVISERS HLS FUND, INC. --
CLASS IA
Shares 533,544
Cost $693,903
..............................................................................................................................
Market Value -- -- 656,050 -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
HARTFORD SMALL COMPANY HLS
FUND, INC. -- CLASS IA
Shares 5,471,936
Cost $11,332,623
..............................................................................................................................
Market Value -- -- -- 10,434,867 -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
HARTFORD MIDCAP HLS
FUND, INC. -- CLASS IA
Shares 5,857,498
Cost $12,710,913
..............................................................................................................................
Market Value -- -- -- -- 15,377,199 -- -- --
-------------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Shares 542,193
Cost $13,193,347
..............................................................................................................................
Market Value -- -- -- -- -- 13,305,425 -- --
-------------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP OVERSEAS
PORTFOLIO
Shares 243,823
Cost $5,253,574
..............................................................................................................................
Market Value -- -- -- -- -- -- 5,305,578 --
-------------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP II ASSET MANAGER
PORTFOLIO
Shares 142,813
Cost $2,418,803
..............................................................................................................................
Market Value -- -- -- -- -- -- -- 2,376,414
-------------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life &
Annuity Insurance Company 45,161 21,076 8,572 94,841 179,123 -- 3,612 --
..............................................................................................................................
Receivable from fund shares
sold -- -- -- -- -- 1,941 -- --
..............................................................................................................................
Total Assets 26,513,110 6,026,899 664,622 10,529,708 15,556,322 13,307,366 5,309,190 2,376,414
..............................................................................................................................
LIABILITIES:
Due to Hartford Life &
Annuity Insurance Company -- -- -- -- -- 2,174 -- 34
..............................................................................................................................
Payable for fund shares
purchased 45,634 21,060 8,575 94,863 179,126 -- 3,573 --
..............................................................................................................................
Total Liabilities 45,634 21,060 8,575 94,863 179,126 2,174 3,573 34
-------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $26,467,476 $6,005,839 $656,047 $10,434,845 $15,377,196 $13,305,192 $5,305,617 $2,376,380
-------------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 10,269,622 4,220,773 554,526 5,953,053 6,891,345 6,126,148 2,762,735 1,222,448
..............................................................................................................................
Unit Values $ 2.577259 $ 1.422924 $1.183079 $ 1.752856 $ 2.231378 $ 2.171869 $ 1.920422 $ 1.943951
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-3
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Bond Stock Money Advisers Capital Mortgage Index
September 30, 2000 Fund Fund Market Fund Appreciation Securities Fund
Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account
Sub-Account Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 81,181 $ 18,733 $1,328,132 $ 76,419 $ 24,486 $ 7,896 $ 3,350
.........................................................................................................................
Capital gains income -- 7,736,475 (726) 3,041,584 8,090,247 -- 314,343
.........................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
.........................................................................................................................
Net realized gain (loss) on
security transactions 178,706 40,847 -- 31,014 53,092 1,552 (14,373)
.........................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 869,995 (9,889,586) -- (3,011,624) 1,336,175 56,529 (905,387)
.........................................................................................................................
Net gain (loss) on investments 1,048,701 (9,848,739) -- (2,980,610) 1,389,267 58,081 (919,760)
--------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $1,129,882 $(2,093,531) $1,327,406 $ 137,393 $9,504,000 $65,977 $(602,067)
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended International
September 30, 2000 Opportunities
Fund
Sub-Account
--------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 80,238
................................
Capital gains income 1,285,199
................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
................................
Net realized gain (loss) on
security transactions 565
................................
Net unrealized appreciation
(depreciation) of investments
during the period (2,861,949)
................................
Net gain (loss) on investments (2,861,384)
---------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $(1,495,947)
----------------------------------------------------------------------------------------
</TABLE>
SA-4
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Dividend Growth International Small MidCap Fidelity Fidelity
September 30, 2000 and Growth and Income Advisers Company Fund VIP VIP
Fund Fund Fund Fund Sub-Account Equity-Income Overseas
Sub-Account Sub-Account Sub-Account Sub-Account Portfolio Portfolio
Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 18,548 $ 226 $ 6,192 $ -- $ -- $ 195,271 $ 54,276
.........................................................................................................................
Capital gains income 2,037,100 46,975 33,553 1,052,639 436,329 735,671 341,794
.........................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
.........................................................................................................................
Net realized gain (loss) on
security transactions 7,684 8,317 (148) 74,383 (285) 44,226 380
.........................................................................................................................
Net unrealized (depreciation) of
investments during the period (776,953) (14,130) (62,934) (1,637,799) 2,018,046 (402,633) (1,008,088)
.........................................................................................................................
Net (loss) on investments (769,269) (5,813) (63,082) (1,563,416) 2,017,761 (358,407) (1,007,708)
--------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $1,286,379 $ 41,388 $(23,337) $ (510,777) $2,454,090 $ 572,535 $ (611,638)
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended Fidelity
September 30, 2000 VIP II
Asset
Manager
Portfolio
Sub-Account
-----------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 59,219
................................
Capital gains income 139,516
................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
................................
Net realized gain (loss) on
security transactions 1,959
................................
Net unrealized (depreciation) of
investments during the period (198,297)
................................
Net (loss) on investments (196,338)
----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $ 2,397
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-5
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Bond Stock Money Advisers Capital Mortgage Index
September 30, 2000 Fund Fund Market Fund Appreciation Securities Fund
Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account
Sub-Account Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 81,181 $ 18,733 $ 1,328,132 $ 76,419 $ 24,486 $ 7,896 $ 3,350
.........................................................................................................................
Capital gains income -- 7,736,475 (726) 3,041,584 8,090,247 -- 314,343
.........................................................................................................................
Net realized gain (loss) on
security transactions 178,706 40,847 -- 31,014 53,092 1,552 (14,373)
.........................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 869,995 (9,889,586) -- (3,011,624) 1,336,175 56,529 (905,387)
.........................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 1,129,882 (2,093,531) 1,327,406 137,393 9,504,000 65,977 (602,067)
.........................................................................................................................
UNIT TRANSACTIONS:
Purchases 3,091,324 14,606,354 137,812,887 6,244,257 10,087,413 249,140 6,858,781
.........................................................................................................................
Net transfers (1,259,302) 19,120,565 (128,023,608) 7,553,082 15,869,136 (26,184) 2,178,320
.........................................................................................................................
Surrenders for benefit payments
and fees (501,400) (1,781,929) (928,909) (1,103,078) (1,443,218) (65,050) (1,034,327)
.........................................................................................................................
Net loan withdrawals (279,235) (443,047) (6,812,907) (95,499) (637,325) (5,815) (304,543)
.........................................................................................................................
Cost of insurance (630,773) (3,630,881) (4,763,737) (1,702,019) (2,589,213) (38,788) (1,660,662)
.........................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions 420,614 27,871,062 (2,716,274) 10,896,743 21,286,793 113,303 6,037,569
.........................................................................................................................
Total increase (decrease) in net
assets 1,550,496 25,777,531 (1,388,868) 11,034,136 30,790,793 179,280 5,435,502
.........................................................................................................................
NET ASSETS:
Beginning of period 12,956,798 55,565,102 37,912,970 27,100,095 39,819,291 934,665 30,255,457
--------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $14,507,294 $81,342,633 $36,524,102 $38,134,231 $70,610,084 $1,113,945 $35,690,959
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended International
September 30, 2000 Opportunities
Fund
Sub-Account
--------------------------------------------------------------
OPERATIONS:
Net investment income $ 80,238
................................
Capital gains income 1,285,199
................................
Net realized gain (loss) on
security transactions 565
................................
Net unrealized appreciation
(depreciation) of investments
during the period (2,861,949)
................................
Net increase (decrease) in net
assets resulting from
operations (1,495,947)
................................
UNIT TRANSACTIONS:
Purchases 2,179,053
................................
Net transfers 3,238,145
................................
Surrenders for benefit payments
and fees (395,889)
................................
Net loan withdrawals (142,954)
................................
Cost of insurance (461,637)
................................
Net increase (decrease) in net
assets resulting from unit
transactions 4,416,718
................................
Total increase (decrease) in net
assets 2,920,771
................................
NET ASSETS:
Beginning of period 9,637,859
---------------------------------------------------------------------------
END OF PERIOD $12,558,630
----------------------------------------------------------------------------------------
</TABLE>
SA-6
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Dividend Growth International Small MidCap Fidelity Fidelity
September 30, 2000 and Growth and Income Advisers Company Fund VIP VIP
Fund Fund Fund Fund Sub-Account Equity-Income Overseas
Sub-Account Sub-Account Sub-Account Sub-Account Portfolio Portfolio
Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 18,548 $ 226 $ 6,192 $ -- $ -- $ 195,271 $ 54,276
.........................................................................................................................
Capital gains income 2,037,100 46,975 33,553 1,052,639 436,329 735,671 341,794
.........................................................................................................................
Net realized gain (loss) on
security transactions 7,684 8,317 (148) 74,383 (285) 44,226 380
.........................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (776,953) (14,130) (62,934) (1,637,799) 2,018,046 (402,633) (1,008,088)
.........................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 1,286,379 41,388 (23,337) (510,777) 2,454,090 572,535 (611,638)
.........................................................................................................................
UNIT TRANSACTIONS:
Purchases 4,647,483 987,840 103,472 1,507,227 1,568,103 2,208,755 1,031,244
.........................................................................................................................
Net transfers 2,500,972 2,553,752 404,302 7,111,629 7,989,809 299,416 1,358,540
.........................................................................................................................
Surrenders for benefit payments
and fees (513,678) (162,335) (2,863) (313,424) (151,273) (446,705) (133,274)
.........................................................................................................................
Net loan withdrawals (455,054) (14,641) (3,745) (24,957) (34,449) (59,492) (36,989)
.........................................................................................................................
Cost of insurance (1,025,840) (356,185) (35,457) (391,219) (499,744) (486,411) (170,658)
.........................................................................................................................
Net increase in net assets
resulting from unit
transactions 5,153,883 3,008,431 465,709 7,889,256 8,872,446 1,515,563 2,048,863
.........................................................................................................................
Total increase in net assets 6,440,262 3,049,819 442,372 7,378,479 11,326,536 2,088,098 1,437,225
.........................................................................................................................
NET ASSETS:
Beginning of period 20,027,214 2,956,020 213,675 3,056,366 4,050,660 11,217,094 3,868,392
--------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $26,467,476 $6,005,839 $656,047 $10,434,845 $15,377,196 $13,305,192 $5,305,617
--------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended Fidelity
September 30, 2000 VIP II
Asset
Manager
Portfolio
Sub-Account
-----------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 59,219
................................
Capital gains income 139,516
................................
Net realized gain (loss) on
security transactions 1,959
................................
Net unrealized (depreciation)
appreciation of investments
during the period (198,297)
................................
Net increase (decrease) in net
assets resulting from
operations 2,397
................................
UNIT TRANSACTIONS:
Purchases 486,719
................................
Net transfers 134,621
................................
Surrenders for benefit payments
and fees (169,705)
................................
Net loan withdrawals 12,892
................................
Cost of insurance (87,121)
................................
Net increase in net assets
resulting from unit
transactions 377,406
................................
Total increase in net assets 379,803
................................
NET ASSETS:
Beginning of period 1,996,577
-----------------------------------------------------------------------------------------------------------------
END OF PERIOD $2,376,380
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-7
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Asia Diversified The George Global Asset Global Growth Health
Pacific Income Putnam Fund Allocation Growth and Income Sciences
Growth Sub-Account of Boston Sub-Account Sub-Account Sub-Account Sub-Account
Sub-Account Sub-Account
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT ASIA PACIFIC GROWTH
FUND
Shares 123,132
Cost $1,704,369
............................................................................................................................
Market Value: $1,382,778 $ -- $ -- $ -- $ -- $ -- $ --
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT DIVERSIFIED INCOME FUND
Shares 122,674
Cost $1,246,822
............................................................................................................................
Market Value: -- 1,131,054 -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT THE GEORGE PUTNAM FUND
OF BOSTON
Shares 105,554
Cost $1,076,273
............................................................................................................................
Market Value: -- -- 1,100,933 -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GLOBAL ASSET ALLOCATION
FUND
Shares 147,101
Cost $2,667,861
............................................................................................................................
Market Value: -- -- -- 2,528,668 -- -- --
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GLOBAL GROWTH FUND
Shares 968,263
Cost $20,820,462
............................................................................................................................
Market Value: -- -- -- -- 21,117,805 -- --
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GROWTH AND INCOME FUND
Shares 1,156,682
Cost $30,317,558
............................................................................................................................
Market Value: -- -- -- -- -- $28,685,716 --
-----------------------------------------------------------------------------------------------------------------------------
PUTNAM VT HEALTH SCIENCES FUND
Shares 308,365
Cost $3,504,914
............................................................................................................................
Market Value: -- -- -- -- -- -- 4,542,210
-----------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company 367 -- 2,573 2,041 12,503 29,068 16,051
............................................................................................................................
Receivable from fund shares sold -- 422 -- -- -- -- --
............................................................................................................................
Total Assets 1,383,145 1,131,476 1,103,506 2,530,709 21,130,308 28,714,784 4,558,261
............................................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company -- 421 -- -- -- -- --
............................................................................................................................
Payable for fund shares purchased 142 -- 2,573 2,000 12,439 30,395 15,476
............................................................................................................................
TOTAL LIABILITIES 142 421 2,573 2,000 12,439 30,395 15,476
-----------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $1,383,003 $1,131,055 $1,100,933 $2,528,709 $21,117,869 $28,684,389 $4,542,785
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-8
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 High Yield Income International International International Investors Money
Sub-Account Sub-Account Growth Growth and New Sub-Account Market
Sub-Account Income Opportunities Sub-Account
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT HIGH YIELD FUND
Shares 1,134,887
Cost $12,412,090
.............................................................................................................................
Market Value: $10,872,217 $ -- $ -- $ -- $ -- $ -- $ --
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INCOME FUND
Shares 239,080
Cost $3,115,168
.............................................................................................................................
Market Value: -- 2,926,341 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL GROWTH
FUND
Shares 338,722
Cost $6,328,548
.............................................................................................................................
Market Value: -- -- 6,117,314 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL GROWTH
AND INCOME FUND
Shares 197,519
Cost $2,848,566
.............................................................................................................................
Market Value: -- -- -- 2,518,370 -- -- --
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL NEW
OPPORTUNITIES FUND
Shares 213,092
Cost $4,392,937
.............................................................................................................................
Market Value: -- -- -- -- 3,590,608 -- --
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INVESTORS FUND
Shares 509,035
Cost $6,916,629
.............................................................................................................................
Market Value: -- -- -- -- -- 7,396,276 --
------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT MONEY MARKET FUND
Shares 2,045,746
Cost $2,045,746
.............................................................................................................................
Market Value: -- -- -- -- -- -- 2,045,746
------------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company 6,108 -- 41,867 18,421 10,615 13,089 6,000
.............................................................................................................................
Receivable from fund shares sold -- 431 -- -- -- -- --
.............................................................................................................................
Total Assets 10,878,325 2,926,772 6,159,181 2,536,791 3,601,223 7,409,365 2,051,746
.............................................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company -- 420 -- -- -- -- 5,825
.............................................................................................................................
Payable for fund shares purchased 6,111 -- 42,081 18,417 10,530 13,102 --
.............................................................................................................................
TOTAL LIABILITIES 6,111 420 42,081 18,417 10,530 13,102 5,825
------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $10,872,214 $2,926,352 $6,117,100 $2,518,374 $3,590,693 $7,396,263 $2,045,921
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-9
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 New New OTC & Utilities Vista Voyager
Opportunities Value Emerging Growth Sub-Account Sub-Account
Sub-Account Sub-Account Growth and Income
Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
--------------------------------------------------------------------------------------------------------------
PUTNAM VT NEW OPPORTUNITIES FUND
Shares 704,163
Cost $22,809,777
.............................................................................................................
Market Value: $29,553,738 $ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------------------------------------
PUTNAM VT NEW VALUE FUND
Shares 147,924
Cost $1,758,386
.............................................................................................................
Market Value: -- 1,823,908 -- -- -- --
--------------------------------------------------------------------------------------------------------------
PUTNAM VT OTC & EMERGING GROWTH
FUND
Shares 420,685
Cost $8,686,713
.............................................................................................................
Market Value: -- -- 7,803,707 -- -- --
--------------------------------------------------------------------------------------------------------------
PUTNAM VT UTILITIES GROWTH &
INCOME FUND
Shares 203,111
Cost $3,387,456
.............................................................................................................
Market Value: -- -- -- 3,593,035 -- --
--------------------------------------------------------------------------------------------------------------
PUTNAM VT VISTA FUND
Shares 189,200
Cost $4,059,430
.............................................................................................................
Market Value: -- -- -- -- 4,690,257 --
--------------------------------------------------------------------------------------------------------------
PUTNAM VT VOYAGER FUND
Shares 798,663
Cost $40,746,860
.............................................................................................................
Market Value: -- -- -- -- -- 45,691,507
--------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company 60,819 4,355 -- 1,517 29,973 --
.............................................................................................................
Receivable from fund shares sold -- -- 2,261,983 -- -- 545,132
.............................................................................................................
Total Assets 29,614,557 1,828,263 10,065,690 3,594,552 4,720,230 46,236,639
.............................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company -- -- 2,263,201 -- -- 545,960
.............................................................................................................
Payable for fund shares purchased 61,470 4,321 -- 2,496 30,339 --
.............................................................................................................
TOTAL LIABILITIES 61,470 4,321 2,263,201 2,496 30,339 545,960
--------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $29,553,087 $1,823,942 $ 7,802,489 $3,592,056 $4,689,891 $45,690,679
--------------------------------------------------------------------------------------------------------------
</TABLE>
SA-10
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS & LIABILITIES (UNAUDITED) (CONTINUED)
<TABLE>
----------------------------------------------------------------------------------
September 30, 2000 Units Unit Contract
Owned by Price Liability
Participants
<S> <C> <C> <C>
----------------------------------------------------------------------------------
Variable life contracts:
Asia Pacific Growth Fund 92,599 $14.935338 $ 1,383,003
.................................................................................
Diversified Income Fund 86,252 13.113302 1,131,055
.................................................................................
George Putnam Fund of Boston 99,717 11.040569 1,100,933
.................................................................................
Global Asset Allocation Fund 110,835 22.815002 2,528,709
.................................................................................
Global Growth Fund 640,322 32.980056 21,117,869
.................................................................................
Growth and Income Fund 1,066,866 26.886600 28,684,389
.................................................................................
Health Sciences 299,824 15.151502 4,542,785
.................................................................................
High Yield Fund 674,699 16.114172 10,872,214
.................................................................................
Income Fund 193,821 15.098227 2,926,352
.................................................................................
International Growth Fund 422,941 14.463235 6,117,100
.................................................................................
International Growth and Income Fund 212,655 11.842557 2,518,374
.................................................................................
International New Opportunities Fund 240,228 14.947040 3,590,693
.................................................................................
Investors Fund 530,200 13.949961 7,396,263
.................................................................................
Money Market Fund 1,442,702 1.418117 2,045,921
.................................................................................
New Opportunities Fund 739,381 39.970028 29,553,087
.................................................................................
New Value Fund 153,343 11.894540 1,823,942
.................................................................................
OTC & Emerging Growth Fund 389,270 20.043914 7,802,489
.................................................................................
Utilities Growth & Income Fund 145,635 24.664702 3,592,056
.................................................................................
Vista Fund 238,588 19.656868 4,689,891
.................................................................................
Voyager Fund 1,022,366 44.691134 45,690,679
.................................................................................
GRAND TOTAL: $189,107,804
----------------------------------------------------------------------------------
</TABLE>
SA-11
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Asia Diversified The George Global Global Growth Health
September 30, 2000 Pacific Income Putnam Asset Growth and Income Sciences
Growth Sub-Account Fund Allocation Sub-Account Sub-Account Sub-Account
Sub-Account of Boston Sub-Account
Sub-Account
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 40,548 $80,320 $ -- $ 38,909 $ 125,219 $ 387,912 $ --
......................................................................................................................
Capital gains income -- -- -- 203,203 3,120,633 1,826,387 --
......................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
......................................................................................................................
Net realized (loss) gain on
security transactions (6,316) 972 (575) 17 31,048 16,662 (31,220)
......................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (583,228) (71,127) 50,246 (275,929) (6,595,877) (1,021,167) 1,000,510
......................................................................................................................
Net (loss) gain on investments (589,544) (70,155) 49,671 (275,912) (6,564,829) (1,004,505) 969,290
-----------------------------------------------------------------------------------------------------------------------
NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS: $(548,996) $10,165 $49,671 $(33,800) $(3,318,977) $1,209,794 $969,290
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-12
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended High Yield Income International International International Investors Money
September 30, 2000 Sub-Account Sub-Account Growth Growth and New Sub-Account Market
Sub-Account Income Opportunities Sub-Account
Sub-Account Sub-Account
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 1,083,194 $183,258 $ 71,242 $127,626 $ 1,170 $ -- $ 58,023
...........................................................................................................................
Capital gains income -- -- 309,003 279,766 109,881 -- --
...........................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
...........................................................................................................................
Net realized gain (loss) on
security transactions 5 (2,297) (490) (86,915) (2,625) 565 --
...........................................................................................................................
Net unrealized (depreciation) of
investments during the period (1,325,070) (52,297) (850,702) (410,031) (1,029,081) (179,262) --
...........................................................................................................................
Net (loss) on investments (1,325,065) (54,594) (851,192) (496,946) (1,031,706) (178,697) --
----------------------------------------------------------------------------------------------------------------------------
NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS: $ (241,871) $128,664 $(470,947) $(89,554) $ (920,655) $(178,697) $ 58,023
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-13
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended New New OTC & Utilities Vista Voyager
September 30, 2000 Opportunities Value Emerging Growth Sub-Account Sub-Account
Sub-Account Sub-Account Growth and Income
Sub-Account Sub-Account
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ -- $ 17,148 $ -- $ 93,886 $ -- $ 11,639
.............................................................................................................
Capital gains income 1,732,437 60,728 60,050 165,739 24,883 4,938,560
.............................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
.............................................................................................................
Net realized (loss) gain on
security transactions (14,293) (138,999) (99,530) 5,887 (1,450) (51,831)
.............................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (1,177,155) 100,934 (1,497,426) 176,229 410,585 (6,091,215)
.............................................................................................................
Net (loss) gain on investments (1,191,448) (38,065) (1,596,956) 182,116 409,135 (6,143,046)
--------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS: $ 540,989 $ 39,811 $(1,536,906) $441,741 $434,018 $(1,192,847)
--------------------------------------------------------------------------------------------------------------
</TABLE>
SA-14
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Asia Diversified The Global Global Growth Health
September 30, 2000 Pacific Income George Asset Growth and Income Sciences
Growth Sub-Account Putnam Allocation Sub-Account Sub-Account Sub-Account
Sub-Account Fund of Sub-Account
Boston
Sub-Account
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 40,548 $ 80,320 $ -- $ 38,909 $ 125,219 $ 387,912 $ --
...................................................................................................................
Capital gains income -- -- -- 203,203 3,120,633 1,826,387 --
...................................................................................................................
Net realized (loss) gain on
security transactions (6,316) 972 (575) 17 31,048 16,662 (31,220)
...................................................................................................................
Net unrealized
(depreciation)
appreciation of
investments during the
period (583,228) (71,127) 50,246 (275,929) (6,595,877) (1,021,167) 1,000,510
...................................................................................................................
Net (decrease) increase in
net assets resulting from
operations (548,996) 10,165 49,671 (33,800) (3,318,977) 1,209,794 969,290
...................................................................................................................
UNIT TRANSACTIONS:
Purchases 213,787 156,758 162,548 324,802 3,560,313 4,136,989 495,300
...................................................................................................................
Net transfers 862,737 (5,716) 327,073 507,002 3,704,614 8,398,617 1,655,957
...................................................................................................................
Surrenders for benefit
payments and fees (171,946) (4,363) (11,981) (133,290) (463,294) (822,417) (128,862)
...................................................................................................................
Net loan activity 66,208 (1,318) (7,936) (31,429) (336,920) (134,188) (10,229)
...................................................................................................................
Cost of insurance (64,214) (48,863) (56,902) (91,496) (783,033) (1,056,729) (178,428)
...................................................................................................................
Net increase in net assets
resulting from unit
transactions 906,572 96,498 412,802 575,589 5,681,680 10,522,272 1,833,738
...................................................................................................................
Total increase in net assets 357,576 106,663 462,473 541,789 2,362,703 11,732,066 2,803,028
...................................................................................................................
NET ASSETS:
Beginning of period 1,025,427 1,024,392 638,460 1,986,920 18,755,166 16,952,323 1,739,757
--------------------------------------------------------------------------------------------------------------------
END OF PERIOD $1,383,003 $1,131,055 $1,100,933 $2,528,709 $21,117,869 $28,684,389 $4,542,785
--------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-15
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended High Yield Income International International International Investors Money
September 30, 2000 Sub-Account Sub-Account Growth Growth and New Sub-Account Market
Sub-Account Income Opportunities Sub-Account
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 1,083,194 $ 183,258 $ 71,242 $ 127,626 $ 1,170 $ -- $ 58,023
.............................................................................................................................
Capital gains income -- -- 309,003 279,766 109,881 -- --
.............................................................................................................................
Net realized gain (loss) on
security transactions 5 (2,297) (490) (86,915) (2,625) 565 --
.............................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (1,325,070) (52,297) (850,702) (410,031) (1,029,081) (179,262) --
.............................................................................................................................
Net (decrease) increase in net
assets resulting from
operations (241,871) 128,664 (470,947) (89,554) (920,655) (178,697) 58,023
.............................................................................................................................
UNIT TRANSACTIONS:
Purchases 1,821,795 415,426 714,094 315,099 772,793 986,911 204,949
.............................................................................................................................
Net transfers 1,821,219 180,305 3,860,416 1,662,163 3,152,109 2,819,029 916,830
.............................................................................................................................
Surrenders for benefit payments
and fees (295,016) (121,756) (131,183) (31,361) (40,870) (104,211) 12,405
.............................................................................................................................
Net loan activity (156,785) (29,810) 52,523 (34,942) (16,626) 20,061 51,216
.............................................................................................................................
Cost of insurance (373,536) (129,358) (257,893) (122,847) (170,611) (336,946) (43,847)
.............................................................................................................................
Net increase in net assets
resulting from unit
transactions 2,817,677 314,807 4,237,957 1,788,112 3,696,795 3,384,844 1,141,553
.............................................................................................................................
Total increase in net assets 2,575,806 443,471 3,767,010 1,698,558 2,776,140 3,206,147 1,199,576
.............................................................................................................................
NET ASSETS:
Beginning of period 8,296,408 2,482,881 2,350,090 819,816 814,553 4,190,116 846,345
------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $10,872,214 $2,926,352 $6,117,100 $2,518,374 $3,590,693 $7,396,263 $2,045,921
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-16
<PAGE>
SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
For the Year Ended New New OTC & Utilities Growth Vista Voyager
September 30, 2000 Opportunities Value Emerging and Income Sub-Account Sub-Account
Sub-Account Sub-Account Growth Sub-Account
Sub-Account
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ -- $ 17,148 $ -- $ 93,886 $ -- $ 11,639
.................................................................................................................
Capital gains income 1,732,437 60,728 60,050 165,739 24,883 4,938,560
.................................................................................................................
Net realized (loss) gain on
security transactions (14,293) (138,999) (99,530) 5,887 (1,450) (51,831)
.................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (1,177,155) 100,934 (1,497,426) 176,229 410,585 (6,091,215)
.................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 540,989 39,811 (1,536,906) 441,741 434,018 (1,192,847)
.................................................................................................................
UNIT TRANSACTIONS:
Purchases 3,792,726 188,756 1,026,007 496,134 621,488 7,246,189
.................................................................................................................
Net transfers 8,633,141 901,566 6,979,577 576,784 2,645,263 9,229,658
.................................................................................................................
Surrenders for benefit payments
and fees (865,620) (67,824) (326,052) (156,142) (32,261) (887,710)
.................................................................................................................
Net loan activity (226,966) 23,595 (141,670) (29,619) (15,809) (344,634)
.................................................................................................................
Cost of insurance (1,088,418) (80,261) (382,536) (131,793) (174,297) (1,831,954)
.................................................................................................................
Net increase in net assets
resulting from unit
transactions 10,244,863 965,832 7,155,326 755,364 3,044,384 13,411,549
.................................................................................................................
Total increase in net assets 10,785,852 1,005,643 5,618,420 1,197,105 3,478,402 12,218,702
.................................................................................................................
NET ASSETS:
Beginning of period 18,767,235 818,299 2,184,069 2,394,951 1,211,489 33,471,977
------------------------------------------------------------------------------------------------------------------
END OF PERIOD $29,553,087 $1,823,942 $7,802,489 $3,592,056 $4,689,891 $45,690,679
------------------------------------------------------------------------------------------------------------------
</TABLE>
SA-17
<PAGE>
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
BALANCE SHEETS
(STATUTORY BASIS)
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
<S> <C> <C>
-----------------------------------------------------------------------------------
<CAPTION>
2000 1999
-----------------------------------------------------------------------------------
<S> <C> <C>
<CAPTION>
(UNAUDITED)
ASSETS
<S> <C> <C>
Bonds $ 1,226,915 $ 1,465,815
Common stocks 38,701 42,430
Mortgage loans 34,380 63,784
Policy loans 75,857 59,429
Cash and short-term investments 213,302 267,579
-----------------------------------------------------------------------------------
Other invested assets 18,836 2,892
-----------------------------------------------------------------------------------
Total cash and invested assets 1,607,991 1,901,929
Investment income due and accrued 20,344 21,069
Other assets 41,486 39,576
Separate account assets 47,812,204 44,865,042
-----------------------------------------------------------------------------------
TOTAL ASSETS $49,482,025 $46,827,616
-----------------------------------------------------------------------------------
LIABILITIES
Aggregate reserves for future benefits $ 615,263 $ 591,621
Policy and contract claim liabilities 11,835 7,677
Liability for premium and other deposit funds 1,583,921 1,969,262
Asset valuation reserve 3,647 4,935
Payable to affiliates 22,829 14,084
Accrued expense allowances and other amounts due
from separate account (1,392,483) (1,377,927)
Remittances and items not allocated 135,641 111,582
Other liabilities 152,799 118,464
Separate account liabilities 47,812,204 44,865,042
-----------------------------------------------------------------------------------
TOTAL LIABILITIES 48,945,656 46,304,740
-----------------------------------------------------------------------------------
CAPITAL AND SURPLUS
Common stock 2,500 2,500
Gross paid-in and contributed surplus 226,043 226,043
Unassigned funds 307,826 294,333
-----------------------------------------------------------------------------------
TOTAL CAPITAL AND SURPLUS 536,369 522,876
-----------------------------------------------------------------------------------
TOTAL LIABILITIES, CAPITAL AND SURPLUS $49,482,025 $46,827,616
-----------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-1
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
(STATUTORY BASIS)
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
<S> <C> <C>
----------------------------------------------------------------------------
<CAPTION>
2000 1999
----------------------------------------------------------------------------
<S> <C> <C>
REVENUES
Premiums and annuity considerations $ 564,487 $ 407,330
Annuity and other fund deposits 3,213,811 2,745,707
Net investment income 82,766 92,321
Commissions and expense allowances on
reinsurance ceded 96,524 243,448
Reserve adjustment on reinsurance ceded 1,022,716 702,323
Fee income 618,388 455,917
Other revenues 3,847 7,887
----------------------------------------------------------------------------
TOTAL REVENUES 5,602,539 4,654,933
----------------------------------------------------------------------------
BENEFITS AND EXPENSES
Death and annuity benefits 42,004 34,403
Disability and other benefits 4,228 4,583
Surrenders and other fund withdrawals 2,654,640 858,280
Commissions 363,369 353,077
Increase (Decrease) in aggregate reserves for
future benefits 23,431 (650)
(Decrease) Increase in liability for premium and
other deposit funds (384,393) 2,232
General insurance expenses 182,679 115,771
Net transfers to separate accounts 2,597,386 3,231,911
Other expenses 22,881 16,734
----------------------------------------------------------------------------
TOTAL BENEFITS AND EXPENSES 5,506,225 4,616,341
----------------------------------------------------------------------------
NET GAIN FROM OPERATIONS
Before federal income tax expense 96,314 38,592
Federal income tax expense 71,591 13,144
----------------------------------------------------------------------------
NET GAIN FROM OPERATIONS 24,723 25,448
Net realized capital losses, after tax (514) (36,258)
----------------------------------------------------------------------------
NET INCOME (LOSS) $ 24,209 $ (10,810)
----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-2
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS
(STATUTORY BASIS)
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
<S> <C> <C>
----------------------------------------------------------------------------
<CAPTION>
2000 1999
----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK
Beginning and end of year $ 2,500 $ 2,500
----------------------------------------------------------------------------
GROSS PAID-IN AND CONTRIBUTED SURPLUS
Beginning and end of year $226,043 $226,043
----------------------------------------------------------------------------
UNASSIGNED FUNDS
Balance, beginning of year $294,333 $247,969
Net income (loss) 24,209 (10,810)
Change in net unrealized capital gains (losses)
on common stocks and other invested assets (3,702) 1,489
Change in asset valuation reserve 1,288 18,079
Change in non-admitted assets (3,126) 2,773
Credit on reinsurance ceded (5,176) (2,716)
----------------------------------------------------------------------------
Balance, end of year $307,826 $256,784
----------------------------------------------------------------------------
CAPITAL AND SURPLUS
End of year $536,369 $485,327
----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-3
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
(STATUTORY BASIS)
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
<S> <C> <C>
----------------------------------------------------------------------------
<CAPTION>
2000 1999
----------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Premiums and annuity considerations $3,776,739 $3,152,996
Investment income 83,130 93,174
Fee income 618,388 455,917
Other income 1,114,139 949,553
----------------------------------------------------------------------------
Total income 5,592,396 4,651,640
----------------------------------------------------------------------------
Benefits paid 2,697,533 896,755
Federal income taxes (recoveries) payments (3,299) 24,000
Net transfers to separate accounts 2,597,386 3,231,911
Other expenses 585,737 552,191
----------------------------------------------------------------------------
Total benefits and expenses 5,877,357 4,704,857
----------------------------------------------------------------------------
NET CASH USED BY OPERATING ACTIVITIES (284,961) (53,217)
----------------------------------------------------------------------------
INVESTING ACTIVITIES
PROCEEDS FROM INVESTMENTS SOLD
Bonds 508,750 634,564
Common stocks 614 754
Mortgage loans 33,312 30,292
Other -- 1,351
----------------------------------------------------------------------------
NET INVESTMENT PROCEEDS 542,676 666,961
----------------------------------------------------------------------------
COST OF INVESTMENTS ACQUIRED
Bonds 274,569 727,958
Common stocks 468 166
Mortgage loans 3,681 56,013
Other 32,356 39,099
----------------------------------------------------------------------------
TOTAL INVESTMENTS ACQUIRED 311,074 823,236
----------------------------------------------------------------------------
NET CASH PROVIDED BY (USED FOR) INVESTING
ACTIVITIES 231,602 (156,275)
----------------------------------------------------------------------------
FINANCING AND MISCELLANEOUS ACTIVITIES
Net other cash used (918) (24,952)
----------------------------------------------------------------------------
NET CASH USED FOR FINANCING AND MISCELLANEOUS
ACTIVITIES (918) (24,952)
----------------------------------------------------------------------------
Net change in cash and short-term investments (54,277) (234,444)
Cash and short-term investments, beginning of
period 267,579 469,955
----------------------------------------------------------------------------
CASH AND SHORT-TERM INVESTMENTS, END OF PERIOD $ 213,302 $ 235,511
----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(STATUTORY BASIS)
(DOLLAR AMOUNTS IN MILLIONS UNLESS OTHERWISE STATED)
(Unaudited)
--------------------------------------------------------------------------------
1. BASIS OF PRESENTATION:
The accompanying unaudited financial statements of Hartford Life and Annuity
Insurance Company (the Company) have been prepared in conformity with statutory
accounting practices prescribed by the National Association of Insurance
Commissioners and the Connecticut Department of Insurance. Certain information
and note disclosures which are normally included in financial statements
prepared in accordance with statutory accounting practices have been condensed
or omitted, although the Company believes that the disclosures made are adequate
to make the information presented not misleading. In the opinion of management,
these statements include all adjustments which were normal recurring adjustments
necessary to present fairly the financial position, results of operations and
cash flows for the periods presented in accordance with statutory accounting
practices. For a description of significant accounting policies, see Note 1 of
Notes to Financial Statements in Hartford Life and Annuity Insurance Company's
1999 statutory basis financial statements.
Certain reclassifications have been made to prior year financial information to
conform to the current year classification of transactions and accounts.
2. INVESTMENTS:
In October 1998, the Company became aware of allegations of improper activities
at Commercial Financial Services Inc. (CFS), a securitizer and servicer of asset
backed securities. On December 11, 1998, CFS filed for protection under Chapter
11 of the Bankruptcy Code and, in June 1999, CFS ceased operations. In August
1999, the Company sold all of its CFS holdings recognizing a $36, after tax,
realized capital loss.
F-5
