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PUTNAM CAPITAL MANAGER VARIABLE ANNUITY
Hartford Life Insurance Company
Supplement Dated January 2, 1997
to the Putnam Capital Management Variable Annuity
Prospectus Dated May 1, 1996
The second paragraph on page 1 should read as follows:
There are currently sixteen Sub-Accounts available under the Contract. The
underlying investment portfolios ("Funds") of Putnam Variable Trust for the
Sub-Accounts are Putnam VT Asia Pacific Growth Fund, Putnam VT Diversified
Income Fund, Putnam VT Global Asset Allocation Fund, Putnam VT Global
Growth Fund, Putnam VT Growth and Income Fund, Putnam VT High Yield Fund,
Putnam VT International Growth Fund, Putnam VT International Growth &
Income Fund, Putnam VT International New Opportunities Fund, Putnam VT
Money Market Fund, Putnam VT New Opportunities Fund, Putnam VT New Value
Fund, Putnam VT U.S. Government and High Quality Bond Fund, Putnam VT
Utilities Growth and Income Fund, Putnam VT Vista Fund, and Putnam VT
Voyager Fund.
The definition of "Funds" on page 6 should be replaced to read as follows:
Currently, the portfolios of Putnam Variable Trust described on page
of this Prospectus.
The definition of "Trust" on page 7 should be replaced to read as follows:
Putnam Variable Trust.
The table titled "Annual Fund Operating Expenses" on pages 7a should contain
the following information:
ANNUAL FUND OPERATING EXPENSES
(AS PERCENTAGE OF NET ASSETS)
Total Fund
Management Other Operating
Fees Expenses Expenses
---------- -------- ----------
Putnam VT Asia Pacific Growth Fund (1) 0.80% 0.90% 1.70%
Putnam VT Diversified Income Fund 0.70% 0.15% 0.85%
Putnam VT Global Asset Allocation Fund 0.70% 0.14% 0.84%
Putnam VT Global Growth Fund 0.60% 0.15% 0.75%
Putnam VT Growth and Income Fund 0.52% 0.05% 0.57%
Putnam VT High Yield Fund 0.70% 0.09% 0.79%
Putnam VT International Growth Fund (2) 0.80% 0.18% 0.98%
Putnam VT International Growth
and Income Fund (2) 0.80% 0.17% 0.97%
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Putnam VT International New
Opportunities Fund (2) 1.20% 0.19% 1.39%
Putnam VT Money Market Fund 0.45% 0.12% 0.57%
Putnam VT New Opportunities Fund 0.70% 0.14% 0.84%
Putnam VT New Value Fund (2) 0.70% 0.13% 0.83%
Putnam VT U.S. Government and High Quality
Bond Fund 0.61% 0.09% 0.70%
Putnam VT Utilities Growth and Income
Fund (3) 0.70% 0.08% 0.78%
Putnam VT Vista Fund (2) 0.65% 0.16% 0.81%
Putnam VT Voyager Fund 0.62% 0.06% 0.68%
(1) The annualized total expenses and management fees shown above for the
Putnam VT Asia Pacific Growth Fund reflect the termination of an expense
limitation in effect for the period. Actual annualized management fees and
total expenses would have been 0.33% and 1.22%, respectively.
(2) Putnam VT International Growth Fund, Putnam VT International Growth and
Income Fund, Putnam VT International New Opportunities Fund, Putnam VT New
Value Fund, and Putnam VT Vista Fund are new funds; operating expenses are
based on annualized estimates of such expenses to be incurred in the
current fiscal year.
(3) On July 11, 1996, shareholders approved an increase in the fees payable
to Putnam Management under the Management Contract for the Putnam VT
Utilities Growth and Income Fund. The management fees and total expenses
shown in the table have been restated to reflect the increase. Actual
management fees and total expenses were 0.60% and 0.68%, respectively.
The Example on page 7c should contain the following additional funds:
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EXAMPLE
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
If you surrender your contract If you annuitize at the If you do not surrender
at the end of the applicable end of the applicable time your contract: You would
time period: You would pay the period: You would pay the pay the following expenses
following expenses on a $1,000 following expenses on a on a $1,000 investment,
investment, assuming a 5% annual $1,000 investment, assuming assuming a 5% annual return
return on assets: a 5% annual return on assets: on assets:
- ---------------------------------------------------------------------------------------
SUB-ACCOUNT 1 3 5 10 1 3 5 10 1 3 5 10
yr. yrs. yrs. yrs. yr. yrs. yrs. yrs. yr. yrs. yrs. yrs.
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PCM Asia Pacific
Growth Fund $93 $149 $209 $353 $32 $99 $168 $352 $33 $99 $169 $353
- ---------------------------------------------------------------------------------------
PCM International
Growth Fund 85 128 172 282 24 77 132 281 25 78 132 282
- ---------------------------------------------------------------------------------------
PCM International
Growth and Income Fund 85 127 172 281 24 76 131 280 25 77 132 281
- ---------------------------------------------------------------------------------------
PCM International
New Opportunities Fund 89 140 193 323 29 89 152 322 29 90 153 323
- ---------------------------------------------------------------------------------------
PCM New Value Fund 84 123 165 267 23 72 124 266 24 73 125 267
- ---------------------------------------------------------------------------------------
PCM Vista Fund 83 122 164 265 23 71 123 264 23 72 124 265
- ---------------------------------------------------------------------------------------
</TABLE>
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The paragraph titled "What types of investments are available under the
Contract?" on page 8 should read as follows:
WHAT TYPES OF INVESTMENTS ARE AVAILABLE UNDER THE CONTRACT?
The underlying investments for the Contract are shares of Putnam Variable
Trust, an open-end series investment company with multiple portfolios ("the
Funds") as follows: Putnam VT Asia Pacific Growth Fund, Putnam VT
Diversified Income Fund, Putnam VT Global Asset Allocation Fund, Putnam VT
Global Growth Fund, Putnam VT Growth and Income Fund, Putnam VT High Yield
Fund, Putnam VT International Growth Fund, Putnam VT International Growth &
Income Fund, Putnam VT International New Opportunities Fund, Putnam VT
Money Market Fund, Putnam VT New Opportunities Fund, Putnam VT New Value
Fund, Putnam VT U.S. Government and High Quality Bond Fund, Putnam VT
Utilities Growth and Income Fund, Putnam VT Vista Fund, Putnam VT Voyager
Fund, and such other Funds as shall be offered from time to time, and the
Fixed Account, or a combination of the Funds and the Fixed Account. (See
"The Funds" commencing on page __ and "The Fixed Account" commencing on
page __.)
The second paragraph of the section titled "Performance Related Information"
on page 11 should read as follows:
PCM Asia Pacific Growth Fund, PCM Diversified Income Fund, PCM Global Asset
Allocation Fund, PCM Global Growth Fund, PCM Growth and Income Fund, PCM
High Yield Fund, PCM International Growth Fund, PCM International Growth
and Income Fund, PCM International New Opportunities Fund, PCM Money Market
Fund, PCM New Opportunities Fund, PCM New Value Fund, PCM U.S. Government
and High Quality Bond Fund, PCM Utilities Growth and Income Fund, PCM Vista
Fund, and PCM Voyager Fund Sub-Accounts may include total return in
advertisements or other sales material.
The fourth paragraph of the section titled "Performance Related Information"
on page 11 should read as follows:
PCM Diversified Income Fund, PCM Growth and Income Fund, PCM International
Growth and Income Fund, PCM High Yield Fund, and PCM U.S. Government and
High Quality Bond Fund Sub-Accounts may advertise yield in addition to
total return. The yield will be computed in the following manner:
The net investment income per unit earned during a recent one month period
is divided by the unit value on the last day of the period. This figure
reflects the recurring charges at the Separate Account level including
the Annual Maintenance Fee.
The section titled "The Funds" on page 16 should be replaced with the
following:
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THE FUNDS
The underlying investments for the Contracts are shares of Putnam Variable
Trust, an open-end series investment company with multiple portfolios
("Funds"). The underlying Funds corresponding to each Sub-Account and
their investment objectives are described below. Hartford Life reserves
the right, subject to compliance with the law, to offer additional funds
with differing investment objectives. The Funds may not be available in
all states.
PUTNAM VT ASIA PACIFIC GROWTH FUND
Seeks capital appreciation by investing primarily in securities of companies
located in Asia and in the Pacific Basin.
PUTNAM VT DIVERSIFIED INCOME FUND
Seeks high current income consistent with capital preservation by investing
in the following three sectors of the fixed income securities markets: U.S.
Government Sector, High Yield Sector (which invests primarily in what are
commonly referred to as "junk bonds"), and International Sector. See the
special considerations for investments in high yield securities described in
the Fund prospectus.
PUTNAM VT GLOBAL ASSET ALLOCATION FUND
Seeks a high level of long-term total return consistent with preservation of
capital by investing in U.S. equities, international equities, U.S. fixed
income securities, and international fixed income securities.
PUTNAM VT GLOBAL GROWTH FUND
Seeks capital appreciation through a globally diversified common stock
portfolio.
PUTNAM VT GROWTH AND INCOME FUND
Seeks capital growth and current income by investing primarily in common
stocks that offer potential for capital growth, current income, or both.
PUTNAM VT HIGH YIELD FUND
Seeks high current income by investing primarily in high-yielding,
lower-rated fixed income securities (commonly referred to as "junk bonds"),
constituting a diversified portfolio which Putnam Investment Management,
Inc. ("Putnam Management") believes does not involve undue risk to income or
principal. Capital growth is a secondary objective when consistent with high
current income. See the special considerations for investments in high yield
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securities described in the Fund prospectus.
PUTNAM VT INTERNATIONAL GROWTH FUND
Seeks capital appreciation by investing primarily equity securities of
companies located in a country other than the United States.
PUTNAM VT INTERNATIONAL GROWTH AND INCOME FUND
Seeks capital growth, with current income as a secondary objective, by
investing primarily in common stocks with potential for capital growth
principally traded on markets outside the United States.
PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND
Seeks long term capital appreciation by investing principally in equity
securities of companies in sectors of economies outside of the United States
which Putnam Management believes possess above-average growth potential.
PUTNAM VT MONEY MARKET FUND
Seeks to achieve as high a level of current income as Putnam Management
believes is consistent with preservation of capital and maintenance of
liquidity by investing in high-quality money market instruments.
PUTNAM VT NEW OPPORTUNITIES FUND
Seeks long-term capital appreciation by investing principally in common
stocks of companies in sectors of the economy which Putnam Management
believes possess above-average long-term growth potential.
PUTNAM VT NEW VALUE FUND
Seeks long-term capital appreciation by investing primarily in common stocks
that Putnam Management believes are undervalued at the time of purchase and
have the potential for long-term capital appreciation.
PUTNAM VT U.S. GOVERNMENT AND HIGH QUALITY BOND FUND
Seeks current income consistent with preservation of capital by investing
primarily in securities issued or guaranteed as to principal and interest
by the U.S. Government or by its agencies or instrumentalities and in other
debt obligations rated at least A by Standard & Poor's or Moody's or, if
not rated, determined by Putnam Management to be of comparable quality.
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PUTNAM VT UTILITIES GROWTH AND INCOME FUND
Seeks capital growth and current income by concentrating its investments in
securities issued by companies in the public utilities industries.
PUTNAM VT VISTA FUND
Seeks capital appreciation by investing in a diversified portfolio of common
stocks which have the potential for above-average capital appreciation.
PUTNAM VT VOYAGER FUND
Aggressively seeks capital appreciation primarily from a portfolio of common
stocks of companies that which Putnam Management believes have potential for
capital appreciation which is significantly greater than that of market
averages.
Putnam VT Asia Pacific Growth Fund, Putnam VT Diversified Income Fund,
Putnam VT Global Growth Fund, Putnam VT Growth and Income Fund, Putnam VT
High Yield Fund, Putnam VT International Growth Fund, Putnam VT International
Growth and Income Fund, Putnam VT International New Opportunities Fund,
Putnam VT Money Market Fund, Putnam VT New Opportunities Fund, Putnam VT
Utilities Growth and Income Fund, Putnam VT Vista Fund, and Putnam VT
Voyager Fund are generally managed in styles similar to other open-end
investment companies which are managed by Putnam Management and whose shares
are generally offered to the public. These other Putnam funds may, however,
employ different investment practices and may invest in securities different
from those in which their counterpart Funds invest, and consequently will not
have identical portfolios or experience identical investment results.
The Funds are available only to serve as the underlying investment for
variable annuity and variable life Contracts. A full description of the
Funds, their investment objectives, policies and restrictions, risks, charges
and expenses and other aspects of their operation are contained in the
accompanying Trust Prospectus which should be read in conjunction with this
Prospectus before investing, and in the Trust Statement of Additional
Information which may be ordered without charge from Putnam Investor
Services, Inc.
It is conceivable that in the future it may be disadvantageous for variable
annuity separate accounts and variable life insurance separate accounts to
invest in the Funds simultaneously. Although Hartford Life and the Funds do
not currently foresee any such disadvantages either to variable annuity
Contract Owners or to variable life insurance Policy Owners, the Trust's
Board of Trustees intends to monitor events in order to identify any material
conflicts
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between such Contract Owners and Policy Owners and to determine
what action, if any, should be taken in response thereto. If the Board of
Trustees of the Funds were to conclude that separate funds should be
established for variable life and variable annuity separate accounts, the
variable annuity Contract Owners would not bear any expenses attendant upon
establishment of such separate funds.
Putnam Management, One Post Office Square, Boston, Massachusetts, 02109,
serves as the investment manager for the Funds. An affiliate, The Putnam
Advisory Company, Inc., manages domestic and foreign institutional accounts
and mutual funds. Another affiliate , Putnam Fiduciary Trust Company,
provides investment advice to institutional clients under its banking and
fiduciary policies. Putnam Management and its affiliates are wholly-owned
subsidiaries of Marsh & McLennan Companies, Inc., a publicly owned holding
company whose principal businesses are international insurance brokerage and
employee benefit consulting.
Subject to the general oversight of the Trustees of the Trust, Putnam
Management manages the Funds' portfolios in accordance with their stated
investment objectives and policies, makes investment decisions for the Funds,
places orders to purchase and sell securities on behalf of the Funds, and
administers the affairs of the Funds. For its services, the Funds pay Putnam
Management a quarterly fee. See the accompanying Trust Prospectus for a more
complete description of Putnam Management and the respective fees of the
Funds.
33-17207
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