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HARTFORD LIFE INSURANCE COMPANY
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NATIONS VARIABLE ANNUITY
SUPPLEMENT DATED SEPTEMBER 30, 1998 TO THE PROSPECTUS DATED MAY 1, 1998
The Annual Fund Operating Expense table, the Example tables and all accompanying
footnotes of the prospectus should be deleted and replaced with the following
language:
The following table shows annual operating expenses after waivers or
reimbursements for December 31, 1997:
ANNUAL FUND OPERATING EXPENSES
(as a percentage of net assets)
<TABLE>
<CAPTION>
MANAGEMENT
FEES 12b-1 DISTRIBUTION TOTAL FUND
(AFTER AND/OR SERVICING FEES OPERATING EXPENSES
WAIVERS) (AFTER WAIVERS) OTHER EXPENSES (AFTER WAIVERS)
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<S> <C> <C> <C> <C>
Nations Balanced Assets Portfolio........................... 0.750% 0.000%(1) 0.250% 1.000%
Nations Disciplined Equity Portfolio........................ 0.750% 0.000%(1) 0.250% 1.000%
Nations International Growth Portfolio...................... 0.900% 0.000%(1) 0.350% 1.250%
Nations Managed Index Portfolio............................. 0.300%(2) 0.250% 0.200% 0.750%
Nations Managed SmallCap Index Portfolio.................... 0.300%(2) 0.250% 0.200% 0.750%
Nations Value Portfolio..................................... 0.750% 0.000%(1) 0.250% 1.000%
Nations Marsico Growth & Income Portfolio................... 0.850% 0.000%(1) 0.250% 1.100%
Nations Marsico Focused Equities Portfolio.................. 0.850% 0.000%(1) 0.250% 1.100%
AIM V.I. Capital Appreciation Fund.......................... 0.630% 0.000%(3) 0.050% 0.680%
AIM V.I. High Yield Fund (4)................................ 0.630% 0.230%(3) 0.250% 1.110%
AIM V.I. Value Fund......................................... 0.620% 0.000%(3) 0.080% 0.700%
Hartford Advisers Fund...................................... 0.635% 0.180%(4) 0.020% 0.835%
Hartford Bond Fund.......................................... 0.515% 0.180%(4) 0.020% 0.715%
Hartford Capital Appreciation Fund.......................... 0.645% 0.180%(4) 0.020% 0.845%
Hartford Dividend and Growth Fund........................... 0.685% 0.180%(4) 0.020% 0.885%
Hartford International Opportunities Fund................... 0.705% 0.180%(4) 0.090% 0.975%
Hartford Money Market Fund.................................. 0.450% 0.180%(4) 0.015% 0.645%
Hartford Small Company Fund................................. 0.775% 0.180%(4) 0.020% 0.975%
Hartford Stock Fund......................................... 0.455% 0.180%(4) 0.020% 0.655%
</TABLE>
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(1) The Funds sponsored by Stephens Inc. are subject to fees of up to 0.250%
paid by the Funds, pursuant to a shareholder servicing and distribution
plan. The shareholder servicing and distribution plan provides that the
Funds may pay banks, brokers/dealer, insurance companies or other financial
institutions that have entered into sales support agreements with Stephens
Inc. or a shareholder servicing agreement with the funds for certain
expenses that are incurred in connection with sales support and shareholder
support services. These fees are currently being voluntarily waived for the
Nations Balanced Assets Portfolio, Nations Disciplined Equity Portfolio,
Nations International Growth Portfolio, Nations Value Portfolio, Nations
Marsico Growth & Income Portfolio and Nations Marsico Focused Equities
Portfolio. Absent such waivers, the 12b-1 Distribution and/or Servicing Fees
would be 0.250% and the Total Fund Operating Expenses would be as follows:
Nations Balanced Assets Portfolio - 1.250%, Nations Disciplined Equity
Portfolio - 1.250%, Nations International Growth Portfolio - 1.500%, Nations
Value Portfolio - 1.250%, Nations Marsico Growth & Income Portfolio - 1.350%
and Nations Marsico Focused Equities Portfolio - 1.350%.
(2) The adviser for these Funds has agreed to temporarily waive a portion of its
management fee. In the absence of this waiver, Management Fees for both
Funds would have been 0.500% and the Total Fund Operating Expenses for both
Funds would have been 0.950%. There is no assurance that fee waivers will
continue. In particular, to the extent Other Expenses are less than
expected, waivers of Management Fees, if any, may decrease. Contract Owners
will be notified of any decrease that materially increases Total Fund
Operating Expenses.
(3) AIM Advisors, Inc. ("AIM") may from time to time voluntarily waive or reduce
its respective fees. Effective May 1, 1998, the Funds reimburse AIM in an
amount up to 0.25% of the average net asset value of each Fund for expenses
incurred in providing, or assuring that participating insurance companies
provide certain administrative services. Currently, the fee only applies to
the average net asset value of each Fund in excess of the net asset value of
each Fund on April 30, 1998.
(4) The fees and expenses are based on estimated expenses for the current fiscal
year.
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HARTFORD LIFE INSURANCE COMPANY
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(5) The Class IB shares of the Funds sponsored by Hartford are subject to fees
imposed under a distribution plan (herein, the "Distribution Plan") adopted
by the Funds pursuant to Rule 12b-1 of the 1940 Act. The Distribution Plan
provides that the Funds sponsored by Hartford may pay annually up to 0.250%
of the average daily net assets of a Fund attributable to its Class IB
shares to certain distributors with respect to activities primarily intended
to result in the sale of the Class IB shares. Hartford has voluntarily and
temporarily waived 0.700% of the average daily net assets of the Funds.
Absent such waiver, the 12b-1 Distribution and/or Servicing Fees would be
0.250% and the Total Fund Operating Expenses would be as follows: Hartford
Advisers Fund - 0.880%; Hartford Bond Fund - 0.760%; Hartford Capital
Appreciation Fund - 0.890%; Hartford Dividend and Growth Fund - 0.930%;
Hartford International Opportunities Fund - 1.020%; Hartford Money Market
Fund - 0.690%; Hartford Small Company Fund - 1.020; and Hartford Stock Fund
- 0.700%. Hartford reserves the right to discontinue the waiver at any time
upon notice to shareholders.
EXAMPLES:
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<CAPTION>
If you surrender your Contract If you annuitize your Contract If you do not surrender your
at the end of the applicable at the end of the applicable Contract, you would pay the
time period, you would pay the time period, you would pay the following expenses on a $1,000
following expenses on a $1,000 following expenses on a $1,000 investment, assuming a 5%
investment, assuming a 5% investment, assuming a 5% annual return on assets:
annual return on assets: annual return on assets:
SUB-ACCOUNT 1 YR. 3 YRS. 5 YRS. 10 YRS. 1 YR. 3 YRS. 5 YRS. 10 YRS. 1 YR. 3 YRS. 5 YRS. 10 YRS.
------ ------- ------- ------- ------ ------- ------- ------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Nations Balanced Assets
Portfolio.................. 84 123 N/A N/A 23 72 N/A N/A 24 73 N/A N/A
Nations Disciplined Equity
Portfolio.................. 84 123 N/A N/A 23 72 N/A N/A 24 73 N/A N/A
Nations International Growth
Portfolio.................. 86 131 N/A N/A 26 80 N/A N/A 26 81 N/A N/A
Nations Managed Index
Portfolio.................. 81 115 N/A N/A 21 65 N/A N/A 21 65 N/A N/A
Nations Managed SmallCap
Index Portfolio............ 81 115 N/A N/A 21 65 N/A N/A 21 65 N/A N/A
Nations Value Portfolio...... 84 123 N/A N/A 23 72 N/A N/A 24 73 N/A N/A
Nations Marsico Growth &
Income Portfolio........... 85 126 N/A N/A 24 75 N/A N/A 25 76 N/A N/A
Nations Marsico Focused
Equities Portfolio......... 85 126 N/A N/A 24 75 N/A N/A 25 76 N/A N/A
AIM V.I. Capital Appreciation
Fund....................... 80 113 N/A N/A 20 62 N/A N/A 20 63 N/A N/A
AIM V.I. High Yield Fund..... 85 126 N/A N/A 24 76 N/A N/A 25 76 N/A N/A
AIM V.I. Value Fund.......... 81 114 N/A N/A 20 63 N/A N/A 21 64 N/A N/A
Hartford Advisers Fund....... 76 116 156 250 21 67 116 249 22 68 116 250
Hartford Bond Fund........... 75 112 150 237 20 63 109 236 21 64 110 237
Hartford Capital Appreciation
Fund....................... 76 116 157 251 21 67 116 250 22 68 117 251
Hartford Dividend and Growth
Fund....................... 76 117 159 255 22 69 118 254 22 69 119 255
Hartford International
Opportunities Fund......... 77 120 163 264 23 71 123 264 23 72 123 264
Hartford Money Market Fund... 74 110 146 230 19 61 106 229 20 62 106 230
Hartford Small Company
Fund....................... 77 120 163 264 23 71 123 264 23 72 123 264
Hartford Stock Fund.......... 74 110 147 231 20 62 106 230 20 62 107 231
</TABLE>
The purpose of this table is to assist the Contract Owner in understanding
various costs and expenses that a Contract Owner will bear directly or
indirectly. The table reflects expenses of the Separate Account and underlying
Funds. Premium taxes may also be applicable.
This EXAMPLE should not be considered a representation of past or future
expenses and actual expenses may be greater or less than those shown.
Under the section entitled "How Contracts are Sold", delete the second
sentence of the first paragraph and replace with the following language:
HSD is an affiliate of Hartford. Hartford's parent company indirectly owns
100% of HSD.
HV-
333-41213
