<PAGE>
REGISTRATION NO. 33-53692
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
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POST-EFFECTIVE NO. 3
TO THE
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF UNIT INVESTMENT TRUSTS
REGISTERED ON FORM N-8B-2
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A. Exact name of trust: Separate Account VL I
B. Name of depositor: Hartford Life Insurance Company
C. Complete address of depositor's principal executive offices:
P.O. Box 2999, Hartford, CT 06104-2999
D. Name and address of agent for service:
Rodney J. Vessels, Esquire, Counsel
The Hartford Life Insurance Companies, P.O. Box 2999, Hartford, CT
06104-2999
E. Title and amount of securities being registered:
An indefinite amount of Flexible Premium Variable Life Insurance Policies
was previously registered pursuant to Rule 24f-2 under the Investment
Company Act of 1940.
F. Proposed maximum aggregate offering price to the public of the securities
being registered: Not yet determined.
G. Amount of Filing Fee: Paid
H. Approximate date of proposed public offering:
As soon as practicable after the effective date of this registration
statement.
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It is proposed that this filing will become effective:
/ / immediately upon filing pursuant to paragraph (b) of Rule 485
/X/ on (May 1, 1995) pursuant to paragraph (b)(1)(v) of Rule 485
/ / 60 days after filing pursuant to paragraph (a)(1) of Rule 485
/ / on May 1, 1995 pursuant to paragraph (a)(1) of Rule 485
/ / 75 days after filing pursuant to paragraph (a)(2) of Rule 485
/ / on pursuant to paragraph (a)(2) of Rule 485
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THE REGISTRANT HEREBY REPRESENTS THAT IT IS RELYING ON SECTION (B)(13)(I)(A) OF
RULE 6E-3(T).
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<PAGE>
RECONCILIATION AND TIE BETWEEN
FORM N-8B-2 AND PROSPECTUS
<TABLE>
<CAPTION>
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
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1. Cover page
2. Cover page
3. Not applicable
4. The Company; Distribution of the Policies
5. Summary -- Separate Account VL I; Separate Account VL I -- General
6. Separate Account VL I -- General
7. Not required by Form S-6
8. Not required by Form S-6
9. Legal Proceedings
10. Summary; Separate Account VL I -- Funds; The Policy -- Application for a Policy; Detailed
Description of Policy Benefits and Provisions; Other Matters -- Voting Rights, Dividends
11. Summary; Separate Account VL I -- Funds
12. Summary; Separate Account VL I -- Funds
13. Deductions and Charges from the Account Value; Distribution of the Policies; Federal Tax
Considerations
14. The Policy -- Application for a Policy
15. The Policy -- Allocation of Premium Payments
16. Separate Account VL I -- Funds; The Policy -- Allocation of Premium Payments
17. Summary; Policy Benefits and Rights -- Cash Value and Amount Payable on Surrender of the Policy,
Right to Examine Rights and Surrender Continuation Options
18. Separate Account VL I -- Funds; Deduction and Charges from the Account Value; Federal Tax
Considerations
19. Other Matters -- Statements to Policy Owners
20. Not applicable
21. Detailed Description of Policy Benefits and Provisions -- Policy Loans
22. Not applicable
23. Safekeeping of Separate Account Assets
24. Other Matters -- Assignment
25. The Company
26. Not applicable
27. The Company
28. The Company; Management
29. The Company
30. Not applicable
31. Not applicable
32. Not applicable
33. Not applicable
34. Not applicable
35. Distribution of the Policies
36. Not required by Form S-6
37. Not applicable
38. Distribution of the Policies
39. The Company; Distribution of the Policies
40. Not applicable
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
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<C> <S>
41. The Company; Distribution of the Policies
42. Not applicable
43. Not applicable
44. The Policy -- Allocation of Premium Payments
45. Not applicable
46. Detailed Description of Policy Benefits and Provisions -- Cash Value
47. Separate Account VL I -- Funds
48. Cover page; The Company
49. Not applicable
50. Separate Account VL I -- General
51. Summary; The Company; The Policy; Detailed Description of Policy Benefits and Provisions; Other
Matters -- Beneficiary
52. Separate Account VL I -- Funds, Investment Advisers
53. Federal Tax Considerations
54. Not applicable
55. Not applicable
56. Not required by Form S-6
57. Not required by Form S-6
58. Not required by Form S-6
59. Not required by Form S-6
</TABLE>
<PAGE>
HARTFORD
LIFE INSURANCE COMPANY
STAG VARIABLE LIFE
Flexible Premium
Variable Life Insurance Policies
[LOGO]
This Prospectus describes a flexible premium variable life insurance policy
(the "Policies," and each individually a "Policy") offered by Hartford Life
Insurance Company (the "Hartford") to applicants age 80 and under. For a given
amount of Death Benefit chosen, the Purchaser of the Policy has considerable
flexibility in selecting the timing and amount of premium payments. In
addition, the Purchaser can select a Guarantee Period, of from one to ten
years, during which additional guarantees are provided. Among these is the
guarantee that the Death Benefit will be no less than the Initial Face Amount
and the Policy will not lapse as long as certain Scheduled Premiums are paid
or are provided for by favorable investment experience. Unscheduled Premium
Payments are also allowed.
The Guarantee Period selected by You will affect the benefits provided by
the Policy. In general, the longer the Guarantee Period is, the higher the
Front-End Sales Loads and Surrender Charges are. However, the advantages of a
longer Guarantee Period include lower Cost of Insurance rates and lower
Mortality and Expense Risk Rates. See "Guarantee Period" on page for more
details.
Sales agents can provide prospective purchasers with individualized sales
illustrations which reflect all the fees and charges associated with the
Policy options selected.
The Policies provide for a death benefit payable at the Insured's death. The
Policy Owner may select one of three death benefit options; a fixed amount
equal to the Face Amount, a variable amount equal to the Face Amount plus the
Account Value, or a variable amount equal to the Face Amount plus a return of
Scheduled Premiums.
Under all three options, the Policies have Cash Values which increase with
the payment of each premium and which decrease to reflect fees and charges
made by the Hartford. These fees and charges vary depending on the face amount
of the Policy, the age of the Insured, the level of the premiums paid, and the
length of the Guarantee Period.
If a Policy is surrendered during the first two Policy Years, the Policy
Owner may be entitled to a refund of excess loads in addition to the Cash
Surrender Value.
There is no guaranteed minimum cash value for a Policy. The Cash Value of a
Policy will also vary up or down to reflect the investment experience of the
Funds to which the premium payment(s) has been allocated and the Policy Owner
bears the investment risk for all amounts so allocated.
The initial premium will be allocated to Hartford Money Market Sub-Account
and after the Right to Examine Period has expired, to one or more of the
Sub-Accounts or to the Fixed Account as specified in the Policy Owner's
application. The Funds underlying the Sub-Accounts presently are: Hartford
Advisers Fund, Inc., Hartford Aggressive Growth Fund, Inc., Hartford Bond
Fund, Inc., Hartford Dividend and Growth Fund, Inc., Hartford Index Fund,
Inc., Hartford International Opportunities Fund, Inc., Hartford Mortgage
Securities Fund, Inc., Hartford Stock Fund, Inc., and HVA Money Market Fund,
Inc. managed by Hartford Investment Management Company (the "Hartford Funds"),
the PCM Diversified Income Fund, PCM Global Asset Allocation Fund, PCM Global
Growth Fund, PCM Growth and Income Fund, PCM High Yield Fund, PCM Money Market
Fund, PCM New Opportunties Fund, PCM U.S. Government and High Quality Bond
Fund, PCM Utilities Growth and Income Fund, and PCM Voyager Fund managed by
The Putnam Management Company, Inc. (the "Putnam Funds"), and the
Equity-Income Portfolio, Overseas Portfolio and Asset Manager Portfolio
managed by Fidelity Management & Research Company (the "Fidelity Funds").
These Policies are subject to a Front-End Sales Load and Surrender Charge
which are set forth in our standard illustration on pages - . In addition,
there are examples on page and to help you in your selection of a
Guarantee Period.
MAXIMUM FRONT-END SALES LOADS ARE 50% OF THE PREMIUMS PAID IN THE FIRST
POLICY YEAR, 11% IN YEARS 2 THROUGH 10 AND 3% IN YEARS 11 AND LATER. THE
MAXIMUM SURRENDER CHARGE UNDER THE POLICY IS 110% OF THE PREMIUM PAID IN THE
FIRST POLICY YEAR. HOWEVER, ACTUAL CHARGES MAY BE LESS. SEE "FRONT-END SALES
LOAD" ON PAGE , "SURRENDER CHARGES" ON PAGE , AND "REFUND OF EXCESS LOADS"
ON PAGE FOR MORE DETAILS.
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IT MAY NOT BE ADVANTAGEOUS TO PURCHASE FLEXIBLE PREMIUM VARIABLE LIFE
INSURANCE AS A REPLACEMENT FOR YOUR CURRENT LIFE INSURANCE OR IF YOU ALREADY
OWN A FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY.
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THIS PROSPECTUS IS VALID ONLY IF ACCOMPANIED BY THE CURRENT PROSPECTUSES OF
THE APPLICABLE ELIGIBLE FUNDS WHICH CONTAIN A FULL DESCRIPTION OF THOSE FUNDS.
ALL PROSPECTUSES SHOULD BE READ AND RETAINED FOR FUTURE REFERENCE.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
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The date of this Prospectus is May 1, 1995.
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<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
SPECIAL TERMS........................................................... 4
SUMMARY................................................................. 6
DETAILED DESCRIPTION OF POLICY BENEFITS AND PROVISIONS.................. 11
General............................................................... 11
Premiums.............................................................. 11
Premium Payment Flexibility......................................... 11
Scheduled Premiums.................................................. 11
Unscheduled Premiums................................................ 12
Allocation of Premium Payments...................................... 12
Accumulation Units.................................................. 12
Accumulation Unit Values............................................ 12
Premium Limitation.................................................. 13
Cash Values........................................................... 13
Amount Payable on Surrender of the Policy........................... 13
Load Refund......................................................... 13
Partial Withdrawals................................................. 13
Transfers of Account Value............................................ 14
Amount and Frequency of Transfers................................... 14
Transfers to or from Sub-Accounts................................... 14
Transfers from the Fixed Account.................................... 14
Policy Loans.......................................................... 14
Loan Interest....................................................... 15
Credited Interest................................................... 15
Preferred Loan...................................................... 15
Loan Repayments..................................................... 15
Termination Due to Excessive Indebtedness........................... 15
Effect of Loans on Account Value.................................... 15
Death Benefit........................................................... 15
Death Benefit Option................................................ 15
Option Change....................................................... 16
Death Benefit Guarantee............................................. 16
Minimum Death Benefit............................................... 16
Increases and Decreases in Face Amount.............................. 16
Benefits at Maturity.................................................. 17
Lapse and Reinstatement............................................... 17
Policy Surplus...................................................... 17
Lapse and Grace Period.............................................. 17
Reinstatement....................................................... 18
Automatic Premium Loan Option....................................... 18
The Right to Examine the Policy....................................... 18
Surrender/Continuation Options........................................ 19
Option Descriptions................................................. 19
Valuation of Payments and Transfers................................... 20
Last Survivor Policy.................................................. 20
Application for a Policy.............................................. 20
Deductions from the Premium........................................... 20
Front-end Sales Load................................................ 20
Premium Related Tax Charge.......................................... 21
Deductions and Charges from the Account Value......................... 21
Monthly Deduction Amounts........................................... 21
Surrender Charges................................................... 22
Examples of Front-End Sales Loads and Surrender Charges............. 23
Charges Against the Funds........................................... 24
Taxes............................................................... 25
</TABLE>
2
<PAGE>
<TABLE>
<S> <C>
THE COMPANY............................................................. 25
SEPARATE ACCOUNT VL I................................................... 25
General............................................................... 25
Funds................................................................. 26
Hartford Funds.................................................... 26
Putnam Funds...................................................... 27
Fidelity Funds.................................................... 28
Investment Adviser.................................................... 29
Hartford Funds.................................................... 29
Putnam Funds...................................................... 29
Fidelity Funds.................................................... 29
THE FIXED ACCOUNT....................................................... 30
OTHER MATTERS........................................................... 30
Voting Rights......................................................... 30
Statements to Policy Owners........................................... 31
Limit on Right to Contest............................................. 31
Misstatement as to Age................................................ 31
Payment Options....................................................... 31
Beneficiary........................................................... 32
Assignment............................................................ 32
Dividends............................................................. 32
SUPPLEMENTAL BENEFITS................................................... 32
Deduction Amount Waiver Rider......................................... 32
Accidental Death Benefit Rider........................................ 32
Increase in Coverage Option Rider..................................... 32
Maturity Date Extension Rider......................................... 33
EXECUTIVE OFFICERS AND DIRECTORS........................................ 34
DISTRIBUTION OF THE POLICIES............................................ 38
SAFEKEEPING OF THE SEPARATE ACCOUNT'S ASSETS............................ 38
FEDERAL TAX CONSIDERATIONS.............................................. 38
General............................................................... 38
Taxation of Hartford Life and Separate Account VL I................... 38
Income Taxation of Policy Benefits.................................... 39
Modified Endowment Policies........................................... 39
Diversification Requirements.......................................... 39
Federal Income Tax Withholding........................................ 40
Other Tax Considerations.............................................. 40
LEGAL PROCEEDINGS....................................................... 40
LEGAL MATTERS........................................................... 40
EXPERTS................................................................. 40
REGISTRATION STATEMENT.................................................. 40
UNDERTAKING TO FILE REPORTS............................................. 40
</TABLE>
The Policies may not be available in all states.
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH
SUCH OFFERING MAY NOT BE LAWFULLY MADE. NO DEALER OR OTHER PERSON IS AUTHORIZED
TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS IN CONNECTION WITH THIS
OFFERING OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND, IF GIVEN OR MADE,
SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED ON.
3
<PAGE>
SPECIAL TERMS
As used in this Prospectus, the following terms have the indicated meanings:
ACCOUNT VALUE: Value used to determine certain policy benefits and charges.
ACCUMULATION UNIT: An accounting unit of measure used to calculate the value of
a Sub-Account.
ANNUAL SCHEDULED PREMIUM AND/OR SCHEDULED PREMIUMS: The amount of Premiums
selected by you within limits established under the Policy.
ATTAINED AGE: The Issue Age plus the number of fully completed Policy Years.
CASH SURRENDER VALUE: Cash Value less all Indebtedness.
CASH VALUE: The Account Value less all remaining Surrender Charges, if any.
CODE: The Internal Revenue Code of 1986, as amended.
DATE OF ISSUE: The date from which the Suicide and Incontestability provisions
are measured.
DEATH BENEFIT: The Death Benefit Option in effect determines how the Death
Benefit is calculated. The three Death Benefit Options provided are described in
the Death Benefit section of this Prospectus.
DEATH PROCEEDS: The amount which we will pay on the death of the Insured. This
amount equals the Death Benefit less any Indebtedness.
FACE AMOUNT: On the Policy Date, the Face Amount equals the Initial Face Amount.
Thereafter it may change in accordance with the terms of the Policy.
FIXED ACCOUNT: Portion of Account Value invested in the General Account of
Hartford Life Insurance Company.
FUNDS: The registered open-end management investment companies in which assets
of the Separate Account may be invested.
GUARANTEE PERIOD: The period, selected by you, from one to ten years, during
which additional Policy guarantees are provided. Among these is the guarantee
that if Scheduled Premiums are paid, the Death Benefit will be no less than the
initial Face Amount regardless of the investment performance of the
Sub-Accounts. See "Guarantee Period" on page .
GUIDELINE ANNUAL PREMIUM: The level annual premium payment necessary to provide
the future benefits under the policy through maturity, based on certain
assumptions specified under the Federal Securities laws. These assumptions
include mortality charges based on the 1980 CSO Table, an assumed annual net
rate of return of 5% per year, and deduction of the fees and charges specified
in the Policy. For purposes of the policy, the Guideline Annual Premium is used
only in limiting front-end sales loads and surrender charges.
HARTFORD: Hartford Life Insurance Company.
IN WRITING: In a written form satisfying to Us.
INDEBTEDNESS: The outstanding loan on the Policy, including any interest due or
accrued.
INSURED: The person on whose life the Policy is issued.
ISSUE AGE: As of the Policy Date, the Insured's age on his/her last birthday.
LOAN ACCOUNT: An account established for any amounts transferred from the Fixed
Account and Sub-Accounts as a result of loans. The account is credited with
interest and is not based on the investment experience of the Separate Account.
MATURITY DATE: The date on which the policy will mature.
MONTHLY ACTIVITY DATE: The Policy Date and the same date in each succeeding
month as the Policy Date except that whenever the Monthly Activity Date falls on
a date other than a Valuation Day, the Monthly Activity Date will be deemed the
next Valuation Day.
MONTHLY DEDUCTION AMOUNT: The fees and charges deducted from the Account Value
on the Monthly Activity Date.
NATIONAL SERVICE CENTER: Located in Minneapolis, Minnesota.
NET PREMIUM: The amount of premium actually credited to the Account Value.
POLICY: A flexible premium variable life insurance contract issued by the
Hartford, as described in this Prospectus.
POLICY ANNIVERSARY: An anniversary of the Policy Date. Similarly, Policy Years
are measured from the Policy Date.
POLICY DATE: The date from which Policy Anniversaries and Policy Years are
determined.
POLICY LOAN RATE: The interest rate charged on policy loans.
4
<PAGE>
POLICY OWNER: The person having rights to benefits under the Policy during the
lifetime of the Insured; the Policy Owner may or may not be the Insured.
POLICY SURPLUS: This is an amount which we calculate for each Policy Year during
the Guarantee Period to determine whether or not payment of a Scheduled Premium
is required and is calculated as described in "Policy Surplus" on page .
POLICY YEARS: Annual periods computed from the Policy Date.
PRO RATA BASIS: An allocation method based on the proportion of the Account
Value in the Fixed Account and each Sub-Account.
SCHEDULED PREMIUM: Amount of premium shown on your specifications.
SEPARATE ACCOUNT: An account established by Hartford Life Insurance Company to
separate the assets funding the Policies from other assets of Hartford Life
Insurance Company; in this case, "Separate Account VL I."
SUB-ACCOUNT: The subdivisions of the Separate Account.
UNSCHEDULED PREMIUMS: Any premium payment other than a Scheduled Premium
Payment.
VALUATION DAY: Every day the New York Stock Exchange is open for trading. The
value of the Separate Account is determined at the close of the New York Stock
Exchange (currently 4:00 p.m. Eastern Time) on such days.
VALUATION PERIOD: The period between the close of business on successive
Valuation Days.
YOU, YOUR: The Owner of the Policy.
WE, US, OUR, THE COMPANY: Hartford Life Insurance Company.
5
<PAGE>
SUMMARY
THE POLICY
The flexible premium variable life insurance policies offered by this
Prospectus are funded by a Fixed Account and Separate Account VL I, a separate
account established by Hartford pursuant to Connecticut insurance law and
organized as a unit investment trust registered under the Investment Company Act
of 1940. Separate Account VL I is presently comprised of 22 sub-accounts (the
"Sub-Accounts" and each individually a "Sub-Account"), each of which invests
exclusively in one of the underlying Funds. If an initial premium is submitted
with an application for a Policy, it will be allocated, to the Hartford Money
Market Sub-Account. At a later date the values in the Hartford Money Market
Sub-Account will be allocated to one or more of the Sub-Accounts or the Fixed
Account as specified in the Policy Owner's application. This later date is the
latest of 45 days after the application is signed, ten days after We receive the
premium and the date We receive the final requirement to put the policy in
force. The Policies are credited with units ("Accumulation Units") in each
selected Sub-Account, the assets of which are invested in the applicable Fund. A
Policy Owner may transfer the funds among the Sub-Accounts and the Fixed Account
subject to a transfer charge. See "Transfer of Account Value" of "Detailed
Description of Policy Benefits and Provisions," page .
The Policies are first and foremost life insurance policies with death
benefits, cash values, and other features traditionally associated with life
insurance. The Policies are called "flexible premium" because, once the desired
level and pattern of Death Benefits have been determined, a purchaser has
considerable flexibility in the selection of the timing and amount of premium to
be paid. The Policies are called "variable" because, unlike the fixed benefits
of an ordinary whole life insurance policy, the Cash Value will, and the Death
Benefit may increase or decrease depending on the investment experience of the
Funds to which the premium payment(s) has been allocated. However, as long as
the policy remains in force, no partial withdrawals occur, and there are no
requests to increase or decrease the Face Amount, the Death Benefit will never
be less than the Initial Face Amount. See "Detailed Description of Policy
Benefits and Provisions -- Death Benefit," page .
POLICY DESIGN OPTIONS
The options in the Policy are structured to give a Purchaser and his sales
agent the ability to select a Policy tailor-made for the purchaser's specific
life insurance needs.
The Policy options which give the purchaser such flexibility fall into four
major categories:
1. Death Benefit Options -- These allow the Purchaser to select various
levels and patterns of Death Benefits.
2. Premium Options -- Once the Purchaser has decided on the appropriate
Death Benefit, he then has considerable flexibility in determining the
desired premium schedule.
3. Guarantee Period Options -- The Purchaser also has the ability to choose
a Guarantee Period from one to ten years. During this period, additional
contractual guarantees are provided. Among these is the guarantee that
the Death Benefit will be no less than the Initial Face Amount and the
Policy will not lapse as long as certain Scheduled Premiums selected by
the Purchaser are paid or provided for by favorable investment
experience.
4. Investment Options -- The Purchaser has the choice of allocating the
Policy's Account Value among five or less of the Policy's 23 investment
options. These include the 22 variable sub-accounts and the fixed
account.
DEATH BENEFIT
The Policies provide for three Death Benefit options. These can be level and
equal to the Face Amount, a Face Amount plus Return of Account Value Death
Benefit or a Face Amount plus Return of Scheduled Premium Death Benefit. At the
death of the Insured, we will pay the Death Proceeds to the Beneficiary. The
Death Proceeds equal the Death Benefit less any Indebtedness under the Policy.
See "Detailed Description of Policy Benefits and Provisions -- Death Benefit,"
page .
6
<PAGE>
PREMIUM
You have considerable flexibility as to when and in what amounts you pay
premiums.
Prior to issue, you can choose the level of the Scheduled Premiums, within a
range determined by the Hartford based on the Face Amount of the policy, the
insured's sex (except where unisex rates apply), age at issue, and the insured's
risk classification.
During the Guarantee Period, the Hartford will guarantee that the Policy
will not lapse, regardless of the investment experience of the Funds, if you pay
the Scheduled Premiums when due. In addition, Unscheduled Premium Payments are
allowed during the Guarantee Period.
Even if You do not pay all Scheduled Premiums due during the Guarantee
Period, the Policy will stay in force as long as the Policy Surplus exceeds the
Indebtedness in the Policy.
After the Guarantee Period, You may change your Scheduled Premiums to any
level you desire, and Unscheduled Premium Payments are still allowed. Once the
Guarantee Period has expired, the Policy will not lapse as long as the Cash
Surrender Value is sufficient to cover the Monthly Deduction Amounts.
No premium payment will be accepted which causes the Policy to not meet the
tax qualification guidelines for life insurance under the Internal Revenue Code
of 1986, as amended.
There are circumstances, usually if a Policy Owner wants to refund future
benefits in seven years or less, when the Policy may become a Modified Endowment
Contract under federal tax law. If it does, loans and other pre-death
distributions are includable in gross income on an income-first basis. A 10%
penalty tax may be imposed on income distributed before the insured attains age
59 1/2. Prospective purchasers and Policy Owners are advised to consult a
qualified tax adviser before taking steps that may affect whether the Policy
becomes a Modified Endowment Contract. See "Federal Tax Considerations, Modified
Endowment Contract" for a discussion of the "seven pay test," page .
GUARANTEE PERIOD
The Guarantee Period selected by You will affect the benefits provided by
the Policy. In general, the longer the Guarantee Period is, the higher the
front-end sales loads and Surrender Charges are. However, the advantages of a
longer Guarantee Period include:
a. a longer period during which Your Death Benefit is guaranteed, regardless
of the investment experience of the Sub-Accounts,
b. a longer period during which your current administrative fees are
guaranteed (as a result, the longer the Guarantee Period is, the lower
the guaranteed administrative fees are),
c. a longer period during which your current Cost of Insurance rates are
guaranteed (as a result, the longer the Guarantee Period is, the lower
the guaranteed Cost of Insurance rates are),
d. lower current Cost of Insurance rates,
e. lower Mortality and Expense risk rates.
In addition, if you choose a Guarantee Period longer than five years, You
may be given the right to purchase additional coverage, subject to limitations,
without any evidence of Insurability. See "Supplemental Benefits" on page .
Due to the way the different charges and fees depend on different factors,
such as the length of the Guarantee Period, it is difficult to anticipate the
net effect of these charges on the Policy values without a sales illustration.
Once a purchaser, in consultation with his sales agent, has decided on a
combination of policy features (such as face amount, level of Scheduled
Premiums, Guarantee Period, and the age and sex of Insured), the sales agent
will provide that purchaser with an illustration which reflects the charges and
benefits of that particular combination and a summary of Policy charges and
fees. In addition, these illustrations are available for any allowable
combination of benefits which a prospective purchaser may request.
For more information concerning Front-End Sales Loads, see page ,
Surrender Charges, see page , Cost of Insurance Charges, see page , and
Mortality and Expense Risk Charges, see page .
7
<PAGE>
SEPARATE ACCOUNT VL I
Separate Account VL I is a separate account established by Hartford pursuant
to the insurance laws of the State of Connecticut and organized as a registered
unit investment trust under the Investment Company Act of 1940. Separate Account
VL I is presently comprised of 22 Sub-Accounts, each of which invests
exclusively in one of the Funds. Each Hartford Fund is organized as a
corporation under the laws of the State of Maryland and is a diversified
open-end management investment company registered under the Investment Company
Act of 1940. The Putnam Funds are organized as Putnam Capital Manager Trust, a
Massachusetts business trust organized on September 24, 1987, and is a
diversified open-end, series investment company with multiple portfolios or
funds registered under the Investment Company Act of 1940. The Fidelity Funds
involve two diversified open-end management investment companies, each with
multiple portfolios and organized as a Massachusetts business trust. The
Equity-Income Portfolio and Overseas Portfolio are portfolios of the Variable
Insurance Products Fund, organized on November 13, 1981. The Asset Manager
Portfolio is a portfolio of the Variable Insurance Products Fund II, organized
on March 21, 1988.
Registration under the Investment Company Act of 1940 does not involve
supervision of the management or investment practices or policies by the
Commission. The shares of the Funds are sold to Separate Account VL I and to
other separate accounts of Hartford or its affiliates which fund similar annuity
or life insurance products.
Currently, the Funds are Hartford Advisers Fund, Inc., Hartford Aggressive
Growth Fund, Inc., Hartford Bond Fund, Inc., Hartford Dividend and Growth Fund,
Inc., Hartford Index Fund, Inc., Hartford International Opportunities Fund,
Inc., Hartford Mortgage Securities Fund, Inc., Hartford Stock Fund, Inc., and
HVA Money Market Fund, Inc. (hereinafter the "Hartford Funds"), the PCM
Diversified Income Fund, PCM Global Asset Allocation Fund, PCM Global Growth
Fund, PCM Growth and Income Fund, PCM High Yield Fund, PCM Money Market Fund,
PCM New Opportunites Fund, PCM U.S. Government and High Quality Bond Fund, PCM
Utilities Growth and Income Fund, and PCM Voyager Fund (hereinafter the "Putnam
Funds"), and the Equity-Income Portfolio, Overseas Portfolio and Asset Manager
Portfolio (hereinafter the "Fidelity Funds"). Applicants should read the
prospectuses for each of the Funds accompanying this Prospectus in connection
with the purchase of a Policy. The investment objectives of each of the Funds
are as set forth in "Separate Account VL I," page .
Total fund operating expenses in 1994, including management fees, were .655%
for the Hartford Advisers Fund; .720% for the Hartford Capital Appreciation
Fund; .547% for the Hartford Bond Fund; .834% for the Hartford Dividend and
Growth Fund; .454% for the Hartford Index Fund; .851% for the Hartford
International Opportunities Fund; .477% for the Hartford Mortgage Securities
Fund; .501% for the Hartford Stock Fund; .474% for the HVA Money Market Fund;
.80% for the PCM Diversified Income Fund; .76% for the PCM Global Asset
Allocation Fund; .77% for the PCM Global Growth Fund; .62% for the PCM Growth
and Income Fund; .74% for the PCM High Yield Fund; .55% for the PCM Money Market
Fund; .71% for the PCM New Opportunities Fund; .67% for the PCM U.S. Government
and High Quality Bond Fund; .68% for the PCM Utilities Growth and Income Fund;
.71% for the PCM Voyager Fund; .58% for the Equity-Income Portfolio; __ for the
Overseas Portfolio; and .80% for the Asset Manager Portfolio.
The investment adviser for the Hartford Funds is The Hartford Investment
Management Company, Inc., a wholly-owned subsidiary of Hartford Insurance
Company. The Hartford Investment Management Company, Inc. retains a
sub-investment adviser with respect to some of the Funds. The Putnam Funds are
advised by The Putnam Management Company, a subsidiary of The Putnam Companies,
Inc. The Fidelity Funds are managed by Fidelity Management & Research Company.
See "Separate Account VL I," page .
FIXED ACCOUNT
Premium Payments and Cash Values allocated to the Fixed Account become part
of the general assets of the Hartford. The Hartford invests the assets of the
General Account in accordance with applicable law governing the investments of
Insurance Company general accounts.
DEDUCTIONS FROM THE PREMIUM
Before the allocation of the premium to the Account Value, a deduction as a
percentage of premium is made for the front-end sales load and premium taxes.
The amount of each premium allocated to the Account Value is your Net Premium.
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FRONT-END SALES LOAD
The front-end sales load of the premium deduction is based on the level of
Scheduled Premiums, the length of the Guarantee Period, and the amount of any
Unscheduled Premiums paid.
The maximum front-end sales load percentages are 50% of the premiums paid in
the first Policy Year, 11% in Policy Years 2 through 10, and 3% in Policy Years
11 and later.
For all Guarantee Periods, the maximum amount of premium paid in any Policy
Year subject to a front-end sales load is the Guideline Annual Premium. In
addition, if Scheduled Premiums are less than the Guideline Annual Premium, the
maximum amount of premium paid in the first Policy Year subject to a front-end
sales load is the Scheduled Premium.
The actual schedule of front-end sales loads for any given Policy is
specified in that Policy.
PREMIUM RELATED TAX CHARGE
We deduct a percentage of each premium to cover taxes assessed against the
Hartford that are attributable to premiums. This percentage will vary by locale
depending on the tax rates in effect there.
DEDUCTIONS AND CHARGES FROM THE ACCOUNT VALUE
We will subtract amounts from your Account Value to provide for the Monthly
Deduction Amount. These will be taken on a Pro Rata Basis from the Fixed Account
and Sub-Accounts on each Monthly Activity Date.
The Monthly Deduction Amount equals:
(a) the Cost of Insurance; plus
(b) the charges for additional benefits provided by rider, if any; plus
(c) the charges for "special" insurance class rating, if any; plus
(d) the Monthly Administrative Fee, plus
(e) the Mortality and Expense Risk Charge.
Hartford may also set up a provision for income taxes against the assets of
Separate Account VL I. See "Deductions and Charges From the Account Value," page
and "Federal Tax Considerations," page .
The Mortality and Expense Risk Charge ranges from .90% annually for a Policy
with a one-year Guarantee Period and decreases proportionately as the Guarantee
Period gets longer to .60% on a Policy with a ten-year Guarantee Period.
Applicants should review the prospectuses for the Funds which accompany this
Prospectus for a description of the charges assessed against the assets of each
of the Funds.
SURRENDER CHARGES
A contingent deferred sales load ("Surrender Charge") is assessed against
the Account Value of a Policy if the Policy lapses or is surrendered during the
first nine Policy Years. The amount of the Surrender Charge applicable during
the first Policy Year is established by Hartford based on the premiums and the
length of the Guarantee Period chosen by the Policy Owner. Subject to certain
limits imposed by state insurance law, the Surrender Charge decreases by an
equal amount each Policy Year until it reaches zero during the tenth Policy
Year.
The actual schedule of Surrender Charges for any given Policy is set forth
in that Policy. In addition, sales agents will provide, upon request, the
schedule of Surrender Charges which would apply under any given circumstances.
The aggregate front-end sales load and Surrender Charge assessed if a Policy
lapses or is surrendered (i.e., the total sales load) will not exceed the sales
load limitations specified by the Securities and Exchange Commission. Generally,
the total sales load under the Policy will not exceed 180% of the Guideline
Annual Premium, or 9% of the sum of the Guideline Annual Premium that would be
paid over a 20-year period. In cases where the anticipated life expectancy of
the insured(s) named in the Policy is less than 20 years, the total sales load
will not exceed 9% of the sum of the Guideline Annual Premiums for the shorter
period.
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LIMITS ON FRONT-END SALES LOADS AND SURRENDER CHARGES
Certain Federal securities and State insurance laws and regulations limit
the front-end sales loads and surrender charges which can be assessed on these
Policies. The front-end sales loads and surrender charges assessed in these
Policies comply with these limitations.
Front-end sales loads and Surrender Charges which cover expenses relating to
the sale and distribution of the contracts may be reduced for certain sales of
the contracts under circumstances which may result in savings of such sales and
distribution expenses.
CASH VALUE
As with many other types of insurance policies, each Policy will have a cash
value ("Cash Value"). The Cash Value of the Policy will increase or decrease to
reflect the interest credited to the Fixed Account and Loan Account, investment
experience of the Sub-Accounts applicable to the Policy and deductions for the
Monthly Deduction Amount. There is no minimum guaranteed Cash Value and the
Policy Owner bears the risk of the investment in the Funds. See "Detailed
Description of the Policy Benefits and Provisions -- Cash Value," page .
POLICY LOAN
A Policy Owner may obtain a cash loan from Hartford. The loan is secured by
the Policy. At the time a loan is requested, the Indebtedness (including the
currently applied for loan) may not exceed 90% of the Cash Value. See "Detailed
Description of Policy Benefits and Provisions -- Policy Loans," page .
CHARGES AGAINST THE FUNDS
Separate Account VL I purchases shares of the Funds at net asset value. The
net asset value of the Fund shares reflects investment advisory fees and
administrative and other expenses already deducted from the assets of the Funds.
These charges are described herein. See "Charges Against the Funds," page .
THE RIGHT TO EXAMINE THE POLICY
An applicant has a limited right to return his or her Policy for
cancellation. If the applicant returns the Policy within ten days after delivery
of the Policy, or within 45 days after completion of the application, whichever
is latest (subject to applicable state regulation), Hartford will return to the
applicant, within seven days thereafter, the premium paid.
SURRENDER/CONTINUATION OPTIONS
At any time prior to the Maturity Date, provided the Policy has a Cash
Surrender Value, You may generally choose to have the Cash Surrender Value
applied under one of the following options:
Option A--Surrender for Cash
Option B--Continue as Extended Term Insurance
Option C--Continue as Paid-Up Insurance
See "Detailed Description of Policy Benefits and Provisions," and
"Surrender/Continuation Options," pages .
TAX CONSEQUENCES
The current Federal tax law generally excludes all death benefit payments
from the gross income of the Policy Beneficiary. See "Federal Tax
Considerations," page .
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DETAILED DESCRIPTION OF POLICY
BENEFITS AND PROVISIONS
GENERAL
This Prospectus describes a flexible premium variable life insurance policy
where the Purchaser of the Policy has considerable flexibility in selecting the
timing and amount of premium payments. In addition, the Purchaser can select a
Guarantee Period, from one to ten years, during which additional guarantees are
provided such as the guarantee that the Death Benefit will be no less than the
Initial Face Amount and the Policy will not lapse as long as certain Scheduled
Premiums are paid or are provided for by favorable investment experience. As
stated below, Unscheduled Premium payments are also allowed.
PREMIUMS
PREMIUM PAYMENT FLEXIBILITY
A significant feature of the Policy is that it gives you the ability to pay
amounts greater or less than the Scheduled Premiums.
Prior to issue, you can choose the level of the Scheduled Premiums, within a
range determined by the Hartford, based on the Face Amount of the policy, the
insured's sex (except where unisex rates apply), age at issue, and the insured's
risk classification.
During the Guarantee Period, the Hartford will guarantee that the Policy
will not lapse, regardless of the investment experience of the Funds, if you pay
the Scheduled Premiums when due and the Indebtedness never exceeds the Cash
Value. In addition, Unscheduled Premium payments are allowed during the
Guarantee Period.
Even if you do not pay all Scheduled Premiums due during the Guarantee
Period, the Policy will stay in force as long as the Policy Surplus exceeds the
Indebtedness in the Policy.
After the Guarantee Period, you may change your Scheduled Premiums to any
level you desire, and Unscheduled Premium payments are still allowed. Once the
Guarantee Period has expired, the Policy will not lapse as long as the Cash
Surrender Value is sufficient to cover the Monthly Deduction Amounts.
See also "Lapse and Reinstatement" on page for more details.
SCHEDULED PREMIUMS
You have the right to pay Scheduled Premiums annually, semiannually,
quarterly, or monthly. The first Scheduled Premium is due on the Policy Date.
During the Guarantee Period, each Scheduled Premium after the first is due at
the expiration of the period for which the preceding Scheduled Premium was paid.
A Scheduled Premium may be paid at any time prior to its due date, subject to
the premium limitations set forth by the Internal Revenue Code as indicated in
the "Premium Limitation" section. See page .
During the Guarantee Period, if all Scheduled Premiums are paid when due and
if Indebtedness does not exceed the Cash Value, the Policy will not terminate
due to insufficient Cash Surrender Value, regardless of the investment
experience of the Funds.
During the Guarantee Period, if you fail to pay a Scheduled Premium when
due, and if, on the premium due date and for the rest of that Policy Year, the
Policy Surplus exceeds the Indebtedness, payment of that Scheduled Premium will
not be required in that year or in any future year. The Policy will not
terminate due to this nonpayment. However, future Scheduled Premiums during the
Guarantee Period will be required unless the Policy Surplus continues to exceed
the Indebtedness in those future Policy Years. In addition, as is true with any
premium, your Account Value and Policy Surplus in future years will be larger if
you make the premium payment than if you do not.
For example, to determine whether or not non-payment of a Scheduled Premium
in the second Policy Year would result in a lapse, You would compare the actual
Account Value on the first Policy Anniversary to the
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first Target Account Value. If the actual Account Value was equal to or greater
than the Target Account Value and the Indebtedness remained less than this
Policy Surplus, failure to pay any Scheduled Premiums due in the second Policy
Year would not result in a lapse.
After the Guarantee Period, the Company will send reminder notices for the
Owner to pay Scheduled Premiums during the Insured's lifetime. Payment of the
Scheduled Premium may not be sufficient to keep the policy in force after the
end of the Guarantee Period.
UNSCHEDULED PREMIUMS
Any premium we receive under the Policy in an amount different from the
Scheduled Premium will be considered an Unscheduled Premium. Unscheduled
Premiums of at least $50.00 can be made at any time while the policy is in
force.
ALLOCATION OF PREMIUM PAYMENTS
The initial Net Premium will be allocated to the Hartford Money Market
Sub-Account on the later of the Policy Date or the date We receive the premium.
The value in this Hartford Money Market Sub-Account will then be allocated
to the Fixed Account and Sub-Accounts according to the premium allocation
specified in the application on the latest of 45 days after the application is
signed, ten days after We receive the premium and the date We receive the final
requirement to put the policy in force.
Any additional Net Premiums received by Us prior to such date will be
allocated to the Hartford Money Market Fund Sub-Account.
Upon written request, You may change the premium allocation. Portions
allocated to the Fixed Account and Sub-Accounts must be whole percentages of 10%
or more. Subsequent Net Premiums will be allocated to the Fixed Account and
Sub-Accounts according to Your most recent instructions, subject to the
following. The Account Value may be allocated to no more than five of these. If
We receive a premium and Your most recent allocation instructions would violate
this requirement, We will allocate the Net Premium to the Fixed Account and
Sub-Accounts according to Your previous premium allocation.
The owner receives several different types of notification as to what his
current premium allocation is. The initial allocation chosen by the owner is
shown in the contract. And, each transactional confirmation received after a
premium payment will show how that premium has been allocated. In addition, each
quarterly statement summarized the current premium allocation in effect for that
contract.
ACCUMULATION UNITS
Net Premiums allocated to the Sub-Accounts are used to credit Accumulation
Units to those Sub-Accounts.
The number of Accumulation Units in each Sub-Account to be credited to a
Policy (including the initial allocation to Hartford Money Market Sub-Account)
and the amount credited to the Fixed Account will be determined first by
multiplying the Net Premium by the appropriate allocation percentage to
determine the portion to be invested in the Fixed Account or Sub-Account. Each
portion to be invested in a Sub-Account is then divided by the then Accumulation
Unit Value of that particular Sub-Account next computed following receipt of the
payment.
ACCUMULATION UNIT VALUES
The Accumulation Unit Value for each Sub-Account will vary to reflect the
investment experience of the applicable Fund and will be determined on each
Valuation Day by multiplying the Accumulation Unit Value of the particular
Sub-Account on the preceding Valuation Day by a Net Investment Factor for that
Sub-Account for the Valuation Period then ended. The Net Investment Factor for
each of the Sub-Accounts is equal to the net asset value per share of the
corresponding Fund at the end of the Valuation Period (plus the per share amount
of any dividend or capital gain distributions paid by that Fund in the Valuation
Period then ended) divided by the net asset value per share of the corresponding
Fund at the beginning of the Valuation Period.
All valuations in connection with a Policy, e.g., with respect to
determining Cash Value and Account Value and in connection with Policy Loans, or
calculation of Death Benefits, or with respect to determining the
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number of Accumulation Units to be credited to a Policy with each premium
payment, other than the initial premium payment, will be made on the date the
request or payment is received by Hartford at the National Service Center if
such date is a Valuation Day; otherwise such determination will be made on the
next succeeding date which is a Valuation Day.
PREMIUM LIMITATION
If premiums are received which would cause the policy to fail to meet the
definition of a life insurance policy in accordance with the Internal Revenue
Code, We will refund the excess premium payments. We will refund such premium
payments and interest thereon within 60 days after the end of a Policy Year.
Except for Scheduled Premiums that are required, a premium payment that
results in an increase in the Death Benefit greater than the amount of the
premium will be accepted only after We approve evidence of insurability.
CASH VALUES
As with traditional life insurance, each Policy will have a Cash Value. The
Cash Value is equal to the Account Value less any remaining Surrender Charges.
There is no minimum guaranteed Cash Value.
The Account Value of a Policy changes on a daily basis and will be computed
on each Valuation Day. The Account Value will vary to reflect the investment
experience of the Sub-Accounts, and the interest credited to the Fixed and Loan
Accounts as well as the Monthly Deduction Amounts.
The Account Value of a particular Policy is related to the net asset value
of the Funds associated with the Sub-Accounts, if any, to which premium payments
on the Policy have been allocated. The Account Value in the Sub-Accounts on any
Valuation Day is calculated by multiplying the number of Accumulation Units in
each Sub-Account as of the Valuation Day by the current Accumulation Unit Value
of that Sub-Account and then summing the result for all the Sub-Accounts. The
Account Value equals the Account Value in the Sub-Accounts plus the value of the
Fixed and Loan Accounts. The Cash Value is the Account Value minus any remaining
Surrender Charge. The Cash Surrender Values which is the net amount available
upon surrender of the Policy, is the Cash Value less any Indebtedness. See "The
Policy -- Accumulation Unit Values," page .
AMOUNT PAYABLE ON SURRENDER OF THE POLICY
As long as the Policy is in effect, a Policy Owner may elect, without the
consent of the Beneficiary (provided the designation of Beneficiary is not
irrevocable), to fully surrender the Policy. Upon surrender, the Policy Owner
will receive the Cash Surrender Value determined as of the day Hartford receives
the Policy Owner's written request or the date requested by the Policy Owner,
whichever is later. The Cash Surrender Value equals the Cash Value less any
Indebtedness. The Policy will terminate on the date of receipt of the written
request, or the date the Policy Owner requests the surrender to be effective,
whichever is later.
LOAD REFUND
If a Policy is surrendered during the first two Policy Years, the Policy
Owner may be entitled to payment of a refund in addition to the Cash Surrender
Value.
The refund will be equal to the excess, if any, of the sum of the actual
front-end sales load charged to-date plus the Surrender Charge assessed upon
Surrender over:
1. the sum of 30% of payments in aggregate amount less than or equal to one
Guideline Annual Premium plus 10% of payments in aggregate amount greater
than one Guideline Annual Premium but not more than two Guideline Annual
Premiums; and
2. 9% of each payment made in excess of two Guideline Annual Premiums.
PARTIAL WITHDRAWALS
After the Guarantee Period, partial withdrawals are allowed. The minimum
partial withdrawal allowed is $500.00. The maximum partial withdrawal is the
Cash Surrender Value, less $1,000.00. A partial withdrawal
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charge of up to $50.00 may be charged. One partial withdrawal is allowed each
Policy Year. The Face Amount is reduced by the amount of the Partial Withdrawal.
Unless specified otherwise, the Partial Withdrawal will be deducted on a Pro
Rata Basis from the Fixed Account and the Sub-Accounts.
TRANSFERS OF ACCOUNT VALUE
AMOUNT AND FREQUENCY OF TRANSFERS
Upon request and as long as the Policy is in effect, You may transfer
amounts among the Fixed Account and Sub-Accounts.
The amounts which may be transferred and the number of transfers will be
limited by Our rules then in effect.
Currently there are no restrictions on transfers other than those described
below. There is no charge currently for the first four (4) transfers in any
Policy Year. Each subsequent transfer is subject to a $25 Transfer Charge.
We reserve the right at a future date to limit the size of transfers and
remaining balances, and to limit the number and frequency of transfers.
TRANSFERS TO OR FROM SUB-ACCOUNTS
In the event of a transfer from a Sub-Account, the number of Accumulation
Units credited to the Sub-Account from which the transfer is made will be
reduced. The reduction will be determined by dividing:
1. the amount transferred by,
2. the Accumulation Unit Value for that Sub-Account on the Valuation Day, We
receive Your request for transfer In Writing.
In the event of a transfer to a Sub-Account, We will increase the number of
Accumulation Units credited to the Sub-Account. The increase will equal:
1. the amount transferred divided by,
2. the Accumulation Unit Value for that Sub-Account determined on the
Valuation Day, We receive your request for transfer in writing.
TRANSFERS FROM THE FIXED ACCOUNT
In addition to the conditions above, transfers from the Fixed Account are
subject to the following:
(a) the transfer must occur during the 30-day period following each Policy
Anniversary; and
(b) if the Accumulated Value in Your Fixed Account exceeds $1,000, the
amount transferred in any Policy Year may be no larger than 25% of the
Accumulated Value in the Fixed Account on the date of transfer.
POLICY LOANS
As long as the Policy is in effect, a Policy Owner may obtain, without the
consent of the Beneficiary (provided the designation of Beneficiary is not
irrevocable), a cash loan from Hartford. The total Indebtedness at the time of
the new loan (including the accrued interest on prior loans plus the currently
applied for loan) may not exceed 90% of the Cash Value.
The amount of each loan will be transferred on a Pro Rata Basis from the
Fixed Account and each of the Sub-Accounts (unless the Policy Owner specifies
otherwise) to the Loan Account. The Loan Account is a mechanism used to ensure
that any outstanding Indebtedness remains fully secured by the Account Value.
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LOAN INTEREST
Interest will accrue daily on the Indebtedness at the Policy Loan Interest
Rate indicated in the Policy. The difference between the value of the Loan
Account and the Indebtedness will be transferred on a Pro Rata Basis from the
Fixed Account and Sub-Accounts to the Loan Account on each Monthly Activity
Date.
CREDITED INTEREST
During the first ten Policy Years, any amounts in the Loan Account will be
credited with interest at a rate equal to the Policy Loan Rate, minus 2%. For
Policy Years 11 and beyond, except for Preferred Loans described below, the Loan
Account will be credited with interest at a rate equal to the policy Loan Rate
applicable to that Indebtedness, minus 1%.
PREFERRED LOAN
If, any time after the tenth Policy Anniversary, the Cash Value exceeds the
total of all premiums paid since issue, a Preferred Loan is available. The
amount available for a Preferred Loan is the amount by which the Cash Value
exceeds total premiums paid. The amount of the Loan Account which equals a
Preferred Loan will be credited with interest at a rate equal to the Policy Loan
Rate. The amount of Indebtedness that qualifies as a Preferred Loan is
determined on each Monthly Activity Date.
LOAN REPAYMENTS
You can repay any part of or the entire loan at any time.
The amount of loan repayment will be deducted from the Loan Account and will
be allocated among the Fixed Account and Sub-Accounts in the same percentage as
premiums are allocated.
TERMINATION DUE TO EXCESSIVE INDEBTEDNESS
If total Indebtedness equals or exceeds the Cash Value, the Policy will
terminate 61 days after we have mailed notice to your last known address and
that of any assignees of record. If sufficient loan repayment if not made by the
end of this 61 day period, the Policy will end without value.
EFFECT OF LOANS ON ACCOUNT VALUE
A loan, whether or not repaid, will have a permanent effect on the Account
Value because the investment results of each Sub-Account will apply only to the
amount remaining in such Sub-Accounts. In addition, the rate of interest
credited to the Fixed Account will usually be different than the rate credited
to the Loan Account. The longer a loan is outstanding, the greater the effect is
likely to be. The effect could be favorable or unfavorable. If the Fixed Account
and Sub-Accounts earn more than the annual interest rate for funds held in the
Loan Account, a Policy Owner's Account Value will not increase as rapidly as it
would have had no loan been made. If the Fixed Account and Sub-Accounts earn
less than the Loan Account, the Policy Owners Account Value will be greater than
it would have been had no loan been made. Also, if not repaid, the aggregate
amount of the outstanding loan (i.e., the Indebtedness) will reduce the Death
Proceeds and Cash Surrender Value otherwise payable.
DEATH BENEFIT
The Policies provide for the payment of the Death Proceeds to the named
Beneficiary when the Insured under the Policy dies. The Death Proceeds payable
to the Beneficiary equal the Death Benefit less any Indebtedness. The Death
Benefit depends on the Death Benefit Option selected by You.
DEATH BENEFIT OPTION
There are three Death Benefit Options: the Level Death Benefit Option, the
Return of Account Value Death Benefit Option and the Return of Premium Death
Benefit Option. Subject to the Minimum Death Benefit described below, the Death
Benefits under each option are:
1. Under the Level Death Benefit Option, the Death Benefit is the Face
Amount.
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2. Under the Return of Account Value Death Benefit Option, the Death Benefit
is the Face Amount plus the Account Value.
3. Under the Return of Premium Death Benefit Option, the Death Benefit is
the Face Amount plus the sum of the Scheduled Premiums paid.
OPTION CHANGE
After the Guarantee Period, You may change the Return of Scheduled premium
or Return of Account Value Death Benefit to the Level Death Benefit. If that
option Change is elected, the Face Amount will become that amount available as a
Death Benefit immediately prior to the Option Change.
DEATH BENEFIT GUARANTEE
During the Guarantee Period, if all Scheduled Premiums are paid when due and
if Indebtedness does not exceed the Cash Value, the Policy will not terminate
due to insufficient Cash Surrender Value, regardless of the investment
experience of the Funds.
MINIMUM DEATH BENEFIT
Notwithstanding the above, there is a minimum Death Benefit equal to the
Account Value multiplied by a specified percentage. This percentage varies
according to the Insured's Issue Age, Attained Age, sex (where unisex rates are
not used), and insurance class and are specified in the Policy.
EXAMPLES OF THE MINIMUM DEATH BENEFIT:
<TABLE>
<CAPTION>
A B
-------- --------
<S> <C> <C>
Face Amount............................................. $100,000 $100,000
Account Value on Date of Death.......................... 46,500 34,000
Specified Percentage.................................... 250% 250%
Death Benefit Option:................................... Level Level
</TABLE>
In Example A, the minimum Death Benefit equals $116,250, i.e., the greater
of $100,000 (the Face Amount) or $116,250 (the Account Value at the Date of
Death of $46,500, multiplied by the specified percentage of 250%). This
amount less any outstanding loans constitutes the Death Proceeds which we
would pay to the Beneficiary.
In Example B, the death benefit is $100,000, i.e., the greater of $100,000
(the Face Amount) or $85,000 (the Account Value of $34,000 multiplied by the
specified percentage of 250%).
All or part of the Death Proceeds may be paid in cash or applied under a
"Payment Option." See "Other Matters -- Payment Options," page .
INCREASES AND DECREASES IN FACE AMOUNT
At any time after the Guarantee Period, You may request a change in the Face
Amount by writing to Us.
The minimum Face Amount for an increase or decrease will be based on Our
rules then in effect.
All requests to increase the Face Amount must be applied for on a new
application and accompanied by the Policy. All requests will be subject to
evidence of insurability satisfactory to Us. Any increase approved by Us will be
effective on the date shown on the new policy specifications page provided that
the deduction for the Cost of Insurance for the first month is made. The Monthly
Administrative Fee on the first Monthly Activity Date on or after the effective
date of the increase will reflect a charge for the increase.
A decrease in the Face Amount will be effective on the Monthly Activity Date
following the date We receive the request. The remaining Face Amount must not be
less than Our minimum rules then in effect. Decreases will be applied:
(a) to the most recent increase; then
(b) successively to each prior increase; and then
(c) to the Initial Face Amount.
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If You ask to decrease Your Face Amount below the Initial Face Amount, We
will deduct a portion of any remaining Surrender Charge from Your Account Value.
This will be done on a Pro Rata Basis. Your Surrender Charge will be reduced by
the same amount.
The amount of the reduction will be equal to:
(a) the Initial Face Amount minus the requested Face Amount, times
(b) the Surrender Charge on the date of the request to change the Face
Amount, divided by
(c) the Initial Face Amount.
We reserve the right to limit the number of increases or decreases made
under the Policy to no more than one in any 12 month period.
BENEFITS AT MATURITY
If the Insured is living on the "Maturity Date" (the anniversary of the
Policy Date on which the Insured is attained age 100), on surrender of the
Policy to Hartford, Hartford will pay to the Policy Owner the Cash Surrender
Value. On the Maturity Date, the Policy will terminate and Hartford will have no
further obligations under the Policy.
LAPSE AND REINSTATEMENT
POLICY SURPLUS
We use the Policy Surplus to determine whether or not a policy will
terminate if Scheduled Premiums are not paid when due. If the Policy Surplus is
greater than zero for a Policy Year, the Scheduled Premiums may not be required.
If, however, the Policy Surplus for a Policy Year during the Guarantee Period is
zero, all Scheduled Premiums due in that year are required.
Here is how we determine the Policy Surplus.
The Policy Surplus for the first Policy Year is zero.
The Policy Surplus for each subsequent Policy Year is (a) minus (b), but
never less than zero where:
(a) is the Account Value at the end of the previous Policy Year; and
(b) is the Target Account Value for the previous Policy Year. The Target
Account Values are shown in the Policy.
The Target Account Value on each anniversary is the Account Value,
determined at issue, that would result on each anniversary assuming all Annual
Scheduled Premiums were paid when due (including the one due on that anniversary
for the next Policy Year), a 6% net yield on assets (after fund level charges
but before the mortality and expense risk charge is deducted) and current cost
of insurance and expense charges.
Once determined for a given Policy Year, the Policy Surplus remains constant
for the entire Policy Year.
LAPSE AND GRACE PERIOD
During the Guarantee Period: If, on any given Monthly Activity Date the
Policy Surplus for that Policy Year is zero or less than the Indebtedness, all
Scheduled Premiums due in that Policy Year, on or before that date are required
to keep the Policy in force. For any such required Scheduled Premium not paid on
or before its due date, We will allow a grace period which ends 61 days after
that Monthly Activity Date. During this time the Policy will continue in force.
If any such required Scheduled Premium is not paid by the end of this grace
period, the Policy will terminate except as provided under the Non-Forfeiture
Options or unless You have elected the Automatic Premium Loan Option and there
is sufficient Cash Value to cover the amounts due.
After the Guarantee Period: The policy may terminate 61 days after a Monthly
Activity Date on which the Cash Surrender Value is less than zero. The 61-day
period is the Grace Period. If sufficient premium is not paid by the end of the
Grace Period, the policy will terminate without value. The Company will mail the
Owner and any assignee written notice of the amount of premium that will be
required to continue the Policy in force at
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least 61 days before the end of the Grace Period. The premiums required will be
no greater then the amount required to pay three Monthly Deduction Amounts as of
the day the Grace Period began. If that premium is not paid by the end of the
Grace Period, the policy will terminate.
REINSTATEMENT
Prior to the death of the Insured, and unless the Policy has been
surrendered for cash, the Policy may be reinstated prior to the Maturity Date,
provided:
(a) You make Your request within five years;
(b) satisfactory evidence of insurability is submitted;
(c) You pay all overdue required Scheduled Premiums, if any; and
(d) if, at the time of reinstatement, the Guarantee Period has expired; and,
if the amount paid in (c) is insufficient to do so, sufficient premium
must be paid to:
(i) cover all Monthly Deduction Amounts that are due and unpaid during
the Grace Period, and
(ii) keep the Policy in force for three months after the date of
reinstatement.
The Face Amount of the reinstated Policy cannot exceed the Face Amount at
the time of lapse. The Account Value on the reinstatement date will reflect:
(a) The Account Value at the time of termination; plus
(b) Net Premiums attributable to premiums paid at the time of reinstatement;
minus
(c) a charge to reflect the benefits, if any, provided under the Extended
Term or Reduced Paid-Up Options.
The Surrender Charges for the reinstated policy will be the same as they
would have been on the original policy had no lapse and subsequent reinstatement
taken place.
Upon reinstatement, any Indebtedness at the time of termination must be
repaid or carried over to the reinstated Policy.
AUTOMATIC PREMIUM LOAN OPTION
If You elect this option, We will automatically process a Policy Loan to pay
any Scheduled Premium which is due and not paid by the end of its grace period
following the due date. You may elect this option in the application or by
requesting it In Writing while no Scheduled Premium is outstanding beyond its
due date.
The Automatic Premium Loan Option will not be available if:
(a) You have revoked the election In Writing; or
(b) the loan amount needed to pay any unpaid Scheduled Premium would exceed
the Cash Surrender Value on the most recent Scheduled Premium due date.
In either instance, the Surrender/Continuation Options will apply as of the
end of the Grace Period.
THE RIGHT TO EXAMINE THE POLICY
An Applicant has a limited right to return a Policy for cancellation. If the
Policy is returned, by mail or personal delivery to Hartford or to the agent who
sold the Policy, to be canceled within ten days after delivery of the Policy to
the Policy Owner, or within 45 days of completion of the Policy application
(whichever is later, and subject to applicable state regulation), Hartford will
return the premium payment to the Applicant within seven days.
18
<PAGE>
SURRENDER/CONTINUATION OPTIONS
At any time prior to the Maturity Date, provided the Policy has a Cash
Surrender Value, You may choose to have the Cash Surrender Value applied under
one of the following options:
Option A -- Surrender for Cash
Option B -- Continue as Extended Term Insurance
Option C -- Continue as Paid-Up Insurance
In addition, if during the Guarantee Period:
(a) a Scheduled Premium which is required is not paid by the end of the
Grace Period; and
(b) the Automatic Premium Loan Option is not elected or not available due to
insufficient Cash Surrender Value.
You may choose one of the above options. You may notify Us of Your choice In
Writing within 61 days after the due date of the outstanding Scheduled Premium.
In the absence of such notification, We will automatically apply the Cash
Surrender Value to Option B unless the insurance class shown in your Policy is
"special" in which case the automatic Option will be Option C. If the Policy has
no Cash Surrender Value, it will terminate at the end of the Grace Period.
WHEN EFFECTIVE -- The effective date of this benefit will be the earlier of:
(a) the date We receive Your request; or
(b) the end of the Grace Period.
When a Surrender/Continuation Option becomes effective, all benefit riders
attached to the Policy will terminate unless otherwise provided in the Rider.
OPTION DESCRIPTIONS
Option A -- Surrender for Cash
If You choose this option, You must surrender the policy to Us. We will pay
You the Cash Surrender Value at the time of surrender, and Our liability under
the Policy will cease.
Option B -- Continue as Extended Term Insurance
This option is not available unless the insurance class shown in the Policy
is "Standard" or "Preferred." If you choose this option, the Extended Term
Insurance Death Benefit will be the Death Benefit in effect on the effective
date of the non-forfeiture benefit less any Indebtedness. The term period will
begin on the effective date of this benefit and will extend for a period of
time equal to that which the Cash Surrender Value will provide as a net single
premium at the Insured's then Attained Age. At the end of that term period,
Our liability under the policy will cease. We will pay You any Cash Surrender
Value not used to provide Extended Term Insurance.
Option C -- Continue as Paid-Up Insurance
If You choose this option, the Policy will continue as Paid-Up Life
Insurance. The amount of Paid-Up Life Insurance will be calculated using the
Cash Surrender Value of the policy as a net single premium as of the effective
date of this benefit at the then Attained Age of the Insured. The Company
reserves the right to require evidence of insurability or limit the amount of
the benefit if the Paid-Up amount exceeds the Death Benefit in effect on the
effective date of this benefit. We will pay You any Cash Surrender Value not
used to provide Paid-Up Insurance.
If the Policy is continued under Option B or Option C above, the Cash
Surrender Value available within 30 days after any Policy Anniversary will not
be less than the Cash Value on such Policy Anniversary minus any Indebtedness.
19
<PAGE>
VALUATION OF PAYMENTS AND TRANSFERS
We value the Policy on every Valuation Day.
We will pay Death Proceeds, Cash Surrender Values, Partial Withdrawals, and
loan amounts attributable to the Sub-Accounts within seven (7) days after We
receive all the information needed to process the payment unless the New York
Stock Exchange is closed for other than a regular holiday or weekend, trading is
restricted by the Securities and Exchange Commission (SEC) or that the SEC
declares that an emergency exists.
Hartford may defer payment of any amounts not attributable to the
Sub-Accounts for up to six months from the date on which we receive the request.
LAST SURVIVOR POLICY
In the future, in addition to the "Single Life" version of the Policy, there
may be Policies sold on a "Last Survivor" basis. These Policies operate in a
manner almost identical to the "Single Life" version. The "Last Survivor"
Policies involve two Insureds. The Death Proceeds are paid on the death of the
last Insured (the "Last Surviving Insured"). The Cost of Insurance charges are
determined in a manner that reflects the anticipated mortality of the two
Insureds.
The other significant differences between the "Last Survivor" and "Single
Life" versions are listed below.
1. For a Policy to be reinstated, both Insureds must be alive on the date of
reinstatement.
2. The Extended Term Insurance Continuation Option is not available.
APPLICATION FOR A POLICY
Individuals wishing to purchase a Policy must submit an application to
Hartford. Within limits, an applicant may choose the Scheduled Premiums and the
Initial Face Amount and the Guarantee Period. A Policy generally will be issued
only on the lives of insureds age 80 and under who supply evidence of
insurability satisfactory to Hartford. Acceptance is subject to Hartford's
underwriting rules and Hartford reserves the right to reject an application for
any reason. No change in the terms or conditions of a Policy will be made
without the consent of the Policy Owner.
The Policy will be effective on the Policy Date only after Hartford has
received all outstanding delivery requirements and received the initial premium.
The Policy Date is the date used to determine all future cyclical transactions
on the Policy, e.g., Monthly Activity Date, Policy Months and Policy Years.
DEDUCTIONS FROM THE PREMIUM
Before the allocation of the premium payment to the Account Value, a
deduction as a percentage of premium is made for the front-end sales load and
premium taxes. The amount of each premium allocated to the Account Value is your
Net Premium.
FRONT END SALES LOAD
The front-end sales load of the premium deduction is based on the level of
Scheduled Premiums, the length of the Guarantee Period, and the amount of any
Unscheduled Premiums paid.
The maximum front-end sales load percentages for Policies are 50% of the
premiums paid in the first Policy Year, 11% in Policy Years 2 through 10, and 3%
in Policy Years 11 and later.
For all Guarantee Periods, the maximum amount of premium paid in any Policy
Year that is subject to a front-end sales load is the Guideline Annual Premium.
In addition, if Scheduled Premiums are less than the Guideline Annual Premiums,
the maximum amount of premium paid in the first Policy Year subject to a front-
end sales load is the Scheduled Premium.
20
<PAGE>
The actual schedule of front-end sales loads for any given Policy is
specified in that Policy.
Generally, the shorter the Guarantee Period, the lower the front-end sales
loads. The levels range from those for the ten-year Guarantee Period cited above
to 0% on a contract with a One Year Guarantee Period. However, there are other
contractual charges that are lower for longer Guarantee Periods. See "Guarantee
Period" for a further description.
For an example of the effect of Front-End Sales Loads, see "Examples of
Front-End Sales Loads and Surrender Charges," page .
PREMIUM RELATED TAX CHARGE
We deduct a percentage of each premium to cover taxes assessed against the
Hartford that are attributable to premiums. This percentage will vary by locale
depending on the tax rates in effect there.
DEDUCTIONS AND CHARGES FROM THE ACCOUNT VALUE
MONTHLY DEDUCTION AMOUNTS
On the Policy Date and on each subsequent Monthly Activity Date, Hartford
will deduct an amount (the "Monthly Deduction Amount") from the Account Value to
cover certain charges and expenses incurred in connection with a Policy. Each
Monthly Deduction Amount will be deducted on a Pro Rata Basis from the Fixed
Account and each of the Sub-Accounts. The Monthly Deduction Amount will vary
from month to month.
The Monthly Deduction Amount equals:
(a) the charge for the Cost of Insurance; plus
(b) the charges for additional benefits provided by rider, if any; plus
(c) the charges for "special" insurance class rating, if any; plus
(d) the Monthly Administrative Fee; plus
(e) the Mortality and Expense Risk Charge
(a) COST OF INSURANCE CHARGE
The charge for the Cost of Insurance is equal to:
(i) the Cost of Insurance rate per $1,000; multiplied by
(ii) the amount at risk; divided by
(iii) $1,000
The amount at risk equals the Death Benefit less the Account Value on
that date, prior to assessing the Monthly Deduction Amount.
The cost of insurance charge is to cover Hartford's anticipated
mortality costs. For standard risks, the cost of insurance rate will not
exceed those based on the 1980 Commissioners Standard Ordinary Mortality
Table. A table of guaranteed cost of insurance rates per $1,000 will be
included in each Policy; however, Hartford reserves the right to use rates
less than those shown in the table. Substandard risks will be charged a
higher cost of insurance rate that will not exceed rates based on a multiple
of the 1980 Commissioners Standard Ordinary Mortality Table. The multiple
will be based on the insured's risk class. Hartford will determine the cost
of insurance rate at the start of each Policy Year. Any changes in the cost
of insurance rate will be made uniformly for all insureds in the same risk
class.
Because the Account Value and the Death Benefit Amount under a Policy
may vary from month to month, the cost of insurance charge may also vary on
each Monthly Activity Date.
(b) RIDER CHARGE
If the policy includes riders, a charge is made applicable to the riders
from the Account Value on each Monthly Activity Date.
21
<PAGE>
The charge applicable to these riders is to compensate the Hartford for
anticipated cost of providing these benefits and are specified on the
applicable rider.
The Riders available are described on page under "Supplemental
Benefits" section.
(c) SPECIAL CLASS CHARGE
A charge for a special insurance class rating of the Insured may be made
against the Account Value, if applicable. This charge is to compensate the
Hartford for the additional mortality risk associated with individuals in
these classes.
(d) MONTHLY ADMINISTRATIVE FEE AND OTHER EXPENSE CHARGES AGAINST
SUB-ACCOUNTS
Hartford will assess a monthly administrative charge to compensate
Hartford for administrative costs in connection with the Policies. This
charge will be $8.33 per month initially and is guaranteed never to exceed
that level during the Guarantee Period. After the Guarantee Period, this
charge is guaranteed never to exceed $12.00 per month. This charge covers
the average expected cost for these expenses.
In addition, in the first Policy Year, there is a monthly first year
charge to compensate the Hartford for the up-front costs to underwrite and
issue a policy. This additional first year charge, subject to certain
maximums, is equal to $8.33 per month plus an amount that varies by issue
age and the Initial Face Amount (IFA). This additional first year charge and
the maximums are summarized in the chart below for some sample ages.
<TABLE>
<CAPTION>
ADDITIONAL FIRST YEAR MAXIMUM
ISSUE AGE MONTHLY CHARGE MONTHLY AMOUNT
--------- --------------------------------------------------
<S> <C> <C>
25 $8.33 plus $.0333 per $1,000 of IFA $50.00
35 $8.33 plus $.0375 per $1,000 of IFA $54.17
45 $8.33 plus $.0417 per $1,000 of IFA $62.50
55 $8.33 plus $.0625 per $1,000 of IFA $62.50
65 $8.33 plus $.0708 per $1,000 of IFA $62.50
</TABLE>
(e) MORTALITY AND EXPENSE RISK CHARGE
A charge is made for mortality and expense risks assumed by Hartford.
This charge is allocated to Hartford's general account. Hartford may profit
from this charge. See also, "Policy Benefits and Rights -- Cash Value," page
.
The Mortality and Expense Risk Charge for any Monthly Activity Date is
equal to:
(i) the Mortality and Expense Risk Rate; multiplied by
(ii) the portion of the Account Value allocated to the Sub-Account on
the Monthly Activity Date prior to assessing the Monthly Deduction
Amount.
The Mortality and Expense Risk Rate on any give Contract will be the
same both during and after the Guarantee Period.
The longer the Guarantee Period, the lower the Mortality and Expense
Risk Rate. The levels range from .90% annually for a Policy with a one-year
Guarantee Period and this level decreases proportionately as the Guarantee
Period gets longer to .60% on a Policy with a ten-year Guarantee Period.
There are other contractual charges that are higher for longer Guarantee
Periods. See "Guarantee Period" for a fuller description.
The mortality risk assumed is that the actual cost of insurance charges
specified in the Policy will be insufficient to meet actual claims. Hartford
also assumes the risk of the Death Benefit Guarantee during the Guarantee
Period. See "Detailed Description of Policy Benefits and Provisions -- Death
Benefit Guarantee," page . The expense risk assumed is that expenses
incurred in issuing and administering the Policies will exceed the
Administrative charges set in the Policy.
SURRENDER CHARGES
A contingent deferred sales load ("Surrender Charge") is assessed against
the Account Value of a Policy if the Policy lapses or is surrendered during the
first nine Policy Years. The amount of the Surrender Charge applicable during
the first Policy Year is established by Hartford based on the premiums paid
during the first
22
<PAGE>
year and the length of the Guarantee Period chosen by the Policy Owner. Subject
to certain limits imposed by state insurance law, the Surrender Charge decreases
by an equal amount each Policy Year until it reaches zero during the tenth
Policy Year.
Specifically, the maximum first year Surrender Charge under a Policy is
equal to the sum of (i) a specified percentage of the Scheduled Premium up to
the Guideline Annual Premium and (ii) 5% of the excess, of the first year
premium over the Guideline Annual Premium. The longer the Guarantee Period, the
higher the percentage is which is used in the preceding calculation. This
percentage is equal to 110% with respect to Policies with a ten-year Guarantee
Period and decreases as the Guarantee Period chosen decreases to 10% for
Policies with a one-year Guarantee Period. However, there are other contractual
charges that are lower for longer Guarantee Periods. See "Guarantee Period" for
a fuller description.
The actual schedule of Surrender Charges for any given Policy is set forth
in that Policy. In addition, sales agents will provide, upon request, the
schedule of Surrender Charges which would apply under any given circumstances.
The aggregate front-end sales load and Surrender Charge assessed if a Policy
lapses or is surrendered (i.e., the total sales load) will not exceed the sales
load limitations specified by the Securities and Exchange Commission. Generally,
the total sales load under the Policy will not exceed 180% of the Guideline
Annual Premium, or 9% of the sum of the Guideline Annual Premium that would be
paid over a 20-year period. In cases where the anticipated life expectancy of
the insured(s) named in the Policy is less than 20 years, the total sales load
will not exceed 9% of the sum of the Guideline Annual Premiums for the shorter
period.
For an example of the effect of Surrender Charges, see "Examples of
Front-End Sales Loads and Surrender Charges," below.
EXAMPLES OF FRONT-END SALES LOADS AND SURRENDER CHARGES
An example of the actual Front-End Sales Loads and Surrender Charge schedule
as well as and the impact of the refund of the excess load, if any (see Load
Refund on page ), for a Policy with a ten-year Guarantee Period is shown below.
This example uses the same specific information (i.e., issue age, face amount,
premium level, etc.) as the illustration on page of the prospectus.
<TABLE>
<S> <C>
Death Benefit Option: Level
Face Amount: $250,000
Guarantee Period: 10 years
Issue Age/Sex/Class: 45/Male/Preferred
Scheduled Premium: $3,558.17 per year
Guideline Annual Premium: $4,819.38
Assumed Gross Annual
Investment Return: 0%
</TABLE>
<TABLE>
<CAPTION>
IMPACT OF SURRENDER CHARGES/REFUNDS OF EXCESS LOAD
-------------------------------------------------------------------------------------------
IMPACT OF NET
POLICY FRONT-END GROSS REFUND OF CHARGE
YEAR(S) SALES LOADS SURRENDER CHARGE - EXCESS LOADS = (REFUND)
------------ ----------- -------------------------- ------------ --------
<C> <C> <S> <C> <C> <C> <C>
1 $1,779 $3,914 (110% of $3,558.17) $1,724 $2,190
2 391 3,479 3,964 (485)
3 391 3,044 0 3,044
4 391 2,609 0 2,609
5 391 2,174 0 2,174
6 391 1,740 0 1,740
7 391 1,305 0 1,305
8 391 870 0 870
9 391 435 0 435
10 391 0 0 0
11 and later 107 0 0 0
</TABLE>
23
<PAGE>
An example of the actual Front-End Sales Loads and Surrender Charge schedule
as well as the impact of the refund of the excess load, if any, (see Load Refund
on page ) for a Policy with a one-year Guarantee Period is shown below. This
example uses the same specific information (i.e., issue age, face amount,
premium level) as the illustration on page of the prospectus.
<TABLE>
<S> <C>
Death Benefit Option: Level
Face Amount: $250,000
Guarantee Period: 1 Year
Issue Age/Sex/Class: 45/Male/Preferred
Scheduled Premium: $3,558.17 per year
Guideline Annual Premium: $4,368.50
Assumed Hypothetical Gross Annual
Investment Return: 0%
</TABLE>
<TABLE>
<CAPTION>
IMPACT OF SURRENDER CHARGES/REFUND OF EXCESS LOADS
----------------------------------------------------------------------------------------
IMPACT OF NET
POLICY FRONT-END GROSS REFUND OF CHARGE
YEAR(S) SALES LOADS SURRENDER CHARGE - EXCESS LOADS = (REFUND)
------------ ----------- ----------------------- ------------ --------
<C> <C> <S> <C> <C> <C> <C>
1 $0 $356 (10% of $3,558.17) $0 $356
2 0 316 0 316
3 0 277 0 277
4 0 237 0 237
5 0 198 0 198
6 0 158 0 158
7 0 119 0 119
8 0 79 0 79
9 0 40 0 40
10 and later 0 0 0 0
</TABLE>
CHARGES AGAINST THE FUNDS
The investment advisers charge the Funds on daily investment management fee
as compensation for services. The following Table shows the fee charged for each
Fund available for investment by Policy Owners.
<TABLE>
<CAPTION>
ANNUAL INVESTMENT MANAGEMENT FEE
AS A PERCENTAGE OF AVERAGE
FUNDS DAILY NET ASSETS
------------------------------------------------- -------------------------------------
<S> <C>
HARTFORD FUNDS
-------------------------------------------------
Hartford Aggressive Growth Fund, Hartford
Advisers Fund,
Hartford International Opportunities Fund and
Hartford Dividend
and Growth Fund................................ .575%-.425%
Hartford Bond Fund and Hartford Stock Fund....... .325%-.25%
Hartford Index Fund.............................. .20%
Hartford Mortgage Securities Fund and HVA Money
Market Fund.................................... .25%
<CAPTION>
PUTNAM FUNDS
-------------------------------------------------
<S> <C>
PCM Diversified Income Fund, PCM Global Asset
Allocation Fund,
PCM High Yield Fund, and PCM Voyager Fund...... .70%-.50%
PCM Growth and Income Fund....................... .65%-.45%
PCM Money Market Fund............................ .45%-.25%
PCM Global Growth Fund, PCM New Opportunities
Fund,
PCM U.S. Government and High Quality Bond Fund
PCM Utilities
Growth and Income Fund......................... .60%
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
ANNUAL INVESTMENT MANAGEMENT FEE
AS A PERCENTAGE OF AVERAGE
FUNDS DAILY NET ASSETS
------------------------------------------------- -------------------------------------
FIDELITY FUNDS
-------------------------------------------------
<S> <C>
Equity-Income Portfolio.......................... Group Fee rate: .30%-.52%
Individual Portfolio Fee Rate: .20%
Overseas Portfolio............................... Group Fee rate: .30%-.52%
Individual Portfolio Fee Rate: .45%
Asset Manager Portfolio.......................... Group Fee rate: .30%-.52%
Individual Portfolio Fee Rate: .40%
</TABLE>
TAXES
Currently, no charge is made to Separate Account VL I for federal state, and
local taxes that may be attributable to Separate Account VL I. A change in the
applicable federal, state or local tax laws which impose tax on the Hartford
and/or Separate Account VL I may result in a charge against the Policy in the
future. Charges for other taxes, if any, attributable to Separate Account VL I
may also be made.
THE COMPANY
Hartford Life Insurance Company was originally incorporated under the laws
of Massachusetts on June 5, 1902. It was subsequently redomiciled to
Connecticut. It is a stock life insurance company engaged in the business of
writing health and life insurance, both ordinary and group, in all states of the
United States and the District of Columbia. Hartford is ultimately 100% owned by
Hartford Fire Insurance Company, one of the largest multiple lines insurance
carriers in the United States. Hartford Fire Insurance Company is a subsidiary
ITT Corporation. Hartford Life Insurance Company has an A++ (superior) rating
from A. M. Best and Company, Inc. and Standard & Poor's highest (AAA) rating on
the basis of its financial soundness and operating performance.
These ratings do not apply to the performance of the Separate Account.
However, the policy obligations under this variable life insurance policy are
the general corporate obligations of Hartford. These ratings do apply to
Hartford's ability to meet its insurance obligations under the policy.
Hartford is subject to Connecticut law governing insurance companies and is
regulated and supervised by the Connecticut Commissioner of Insurance. An annual
statement in a prescribed form must be filed with that Commissioner on or before
March 1st in each year covering the operations of Hartford for the preceding
year and its financial condition on December 31st of such year.
Its books and assets are subject to review or examination by the
Commissioner or his agents at all times, and a full examination of its
operations is conducted by the National Association of Insurance Commissioners
("NAIC") at least once in every four years. In addition, Hartford is subject to
the insurance laws and regulations of any jurisdiction in which it sells its
insurance policies. Hartford is also subject to various Federal and state
securities laws and regulations.
SEPARATE ACCOUNT VL I
GENERAL
Separate Account VL I is a separate account of Hartford established on
September 18, 1992 pursuant to the insurance laws of the State of Connecticut
and organized as a unit investment trust registered with the Securities and
Exchange Commission under the Investment Company Act of 1940. Under Connecticut
law, the assets of Separate Account VL I are held exclusively for the benefit of
Policy Owners and persons entitled to payments under the Policies. The assets
for Separate Account VL I are not chargeable with liabilities arising out of any
other business which Hartford may conduct.
25
<PAGE>
FUNDS
The assets of each Sub-Account of Separate Account VL I are invested
exclusively in one of the Funds. A Policy Owner may allocate premium payments
among the Sub-Accounts. Policy Owners should review the following brief
descriptions of the investment objectives of each of the Funds in connection
with that allocation. There is no assurance that any of the Funds will achieve
its stated objectives. Policy Owners are also advised to read the prospectuses
for each of the Funds accompanying this prospectus for more detailed
information.
HARTFORD FUNDS
HARTFORD ADVISERS FUND, INC.
To achieve maximum long term total rate of return consistent with
prudent investment risk by investing in common stock and other equity
securities, bonds and other debt securities, and money market instruments.
The investment adviser will vary the investments of the Fund among equity
and debt securities and money market instruments depending upon its analysis
of market trends. Total rate of return consists of current income, including
dividends, interest and discount accruals and capital appreciation.
HARTFORD CAPITAL APPRECIATION FUND, INC.
(FORMERLY THE "HARTFORD AGGRESSIVE GROWTH FUND, INC.")
To achieve growth of capital by investing in securities selected solely
on the basis of potential for capital appreciation; income, if any, is an
incidental consideration.
HARTFORD BOND FUND, INC.
To achieve maximum current income consistent with preservation of
capital by investing primarily in bonds.
HARTFORD DIVIDEND AND GROWTH FUND, INC.
To achieve a high level of current income consistent with growth of
capital and reasonable investment risk.
HARTFORD INDEX FUND, INC.
To provide investment results which approximate the price and yield
performance of publicly-traded common stocks in the aggregate, as
represented by the Standard & Poor's 500 Composite Stock Price Index. The
Fund is neither sponsored by, nor affiliated with, Standard & Poor's
Corporation.
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
To achieve long-term total return consistent with prudent investment
risk through investment primarily in equity securities issued by foreign
companies.
HARTFORD MORTGAGE SECURITIES FUND, INC.
To achieve maximum current income consistent with safety of principal
and maintenance of liquidity by investing primarily in mortgage-related
securities, including securities issued by the Government National Mortgage
Association ("GNMA").
HARTFORD STOCK FUND, INC.
To achieve long-term capital growth primarily through capital
appreciation, with income a secondary consideration, by investing in
equity-type securities.
26
<PAGE>
HVA MONEY MARKET FUND, INC.
To achieve maximum current income consistent with liquidity and
preservation of capital by investing in money market securities.
PUTNAM FUNDS
PCM 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, and international
sector.
PCM GLOBAL ASSET ALLOCATION FUND
To seek to achieve a high level of long-term total return consistent
with preservation of capital by investing in a wide variety of equity and
fixed income securities both of U.S. and foreign issuers.
PCM GLOBAL GROWTH FUND
To seek capital appreciation through a globally diversified common stock
portfolio.
PCM GROWTH AND INCOME FUND
To seek capital growth and current income by investing primarily in
common stocks that offer potential for capital growth, current income, or
both.
PCM HIGH YIELD FUND
To seek 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 is believed not to involve undue
risk to income or principal, Capital growth is a secondary objective when
consistent with the objectives of seeking high current income. See the
special considerations for investments in high yield securities disclosed in
the PCM Fund prospectus.
PCM MONEY MARKET FUND
To seek to achieve as high a level of current income as is consistent
with liquidity and preservation of capital by investing in money market
securities.
PCM NEW OPPORTUNITIES FUND
Seeks long-term capital appreciation by investing principally in common
stocks of companies in sectors of the economy which may possess above
average long-term growth potential.
PCM U.S. GOVERNMENT AND HIGH QUALITY BOND FUND
To seek current income consistent with preservation of capital through
investment 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.
PCM UTILITIES GROWTH AND INCOME FUND
To seek capital growth and current income by concentrating its
investments in securities issued by companies in the public utilities
industries.
PCM VOYAGER FUND
To seek capital appreciation primarily from a portfolio of common stocks
which are believed to have potential for capital appreciation which is
significantly greater than that of market averages.
27
<PAGE>
FIDELITY FUNDS
EQUITY-INCOME PORTFOLIO
To seek reasonable income by investing primarily in income-producing
equity securities. In choosing these securities, the Portfolio will also
consider the potential for capital appreciation. The Portfolio's goal is to
achieve a yield which exceeds the composite yield on the securities
comprising the Standard & Poor's Daily Stock Price Index of 500 Common
Stocks. The Portfolio may invest in high yielding, lower-rated securities
(commonly referred to as "junk bonds") which are subject to greater risk
than investments in higher-rated securities. For a further discussion of
lower-rated securities, please see "Risks of Lower-Rated Debt Securities" in
the Fidelity prospectus for this Portfolio.
OVERSEAS PORTFOLIO
To seek long-term growth of capital primarily through investments in
foreign securities and provides a means for aggressive investors to
diversify their own portfolios by participating in companies and economies
outside of the United States.
ASSET MANAGER PORTFOLIO
To seek high total return with reduced risk over the long-term by
allocating its assets among stocks, bonds and short-term fixed-income
instruments.
The Hartford Funds are organized as corporations under the laws of the State
of Maryland and are registered as diversified open-end management companies
under the Investment Company Act of 1940. The Putnam Funds are organized as a
trust fund or the laws of Massachusetts and are organized as a diversified
open-end series investment company under the Investment Company Act of 1940. The
Fidelity Funds involve two diversified open-end management investment companies,
each with multiple portfolios and organized as a Massachusetts business trust.
The Equity-Income Portfolio and Overseas Portfolio are portfolios of the
Variable Insurance Products Fund. The Asset Manager Portfolio is a portfolio of
the Variable Insurance Products Fund II. Each Fund continually issues an
unlimited number of full and fractional shares of beneficial interest in the
Fund. Such shares are offered to separate accounts, including Separate Account
VL I, established by Hartford or one of its affiliated companies specifically to
fund the Policies and other policies issued by Hartford or its affiliates as
permitted by the Investment Company Act of 1940.
It is conceivable that in the future it may be disadvantageous for variable
life insurance separate accounts and variable annuity separate accounts to
invest in the Funds simultaneously. Although neither Hartford nor the Funds
currently foresee any such disadvantages either to variable life insurance
Policy Owners or to variable annuity Policy Owners, the Board of Directors
intend for the Hartford Funds and the Board of Trustees for the Putnam Funds,
and the Board of Trustees for the Fidelity Funds (collectively the "Board") to
monitor events in order to identify any material conflicts between such Policy
Owners and to determine what action, if any, should be taken in response
thereto. If the Boards were to conclude that separate funds should be
established for variable life and variable life insurance separate accounts,
Hartford will bear the attendant expenses.
All investment income of and other distributions to each Sub-Account of
Separate Account VL I arising from the applicable Fund are reinvested in shares
of that Fund at net asset value. The income and both realized gains or losses on
the assets of each Sub-Account of Separate Account VL I are therefore separate
and are credited to or charged against the Sub-Account without regard to income,
gains or losses from any other Sub-Account or from any other business of
Hartford. Hartford will purchase shares in the Funds in connection with premium
payments allocated to the applicable Sub-Account in accordance with Policy
Owners directions and will redeem shares in the Funds to meet Policy obligations
or make adjustments in reserves, if any. The Funds are required to redeem Fund
shares at net asset value and generally to make payment within seven days.
Hartford reserves the right, subject to compliance with the law as then in
effect, to make additions to, deletions from, or substitutions for Separate
Account VL I and its Sub-Accounts which fund the Policies. If shares of any of
the Funds should no longer be available for investment, or if, in the judgment
of Hartford's management, further investment in shares of any Fund should become
inappropriate in view of the purposes
28
<PAGE>
of the Policies, Hartford may substitute shares of another Fund for shares
already purchased, or to be purchased in the future, under the Policies. No
substitution of securities will take place without notice to and consent of
Policy Owners and without prior approval of the Securities and Exchange
Commission to the extent required by the Investment Company Act of 1940. Subject
to Policy Owner approval, if required, Hartford also reserves the right to end
the registration under the Investment Company Act of 1940 of Separate Account VL
I or any other separate accounts of which it is the depositor which may fund the
Policies.
Each Fund is subject to certain investment restrictions which may not be
changed without the approval of a majority of the shareholders of the Fund. See
the accompanying prospectuses for each of the Funds.
INVESTMENT ADVISER
HARTFORD FUNDS
The investment adviser for each of the Hartford Funds is The Hartford
Investment Management Company, Inc. ("HIMCO"), a wholly-owned subsidiary of
Hartford. HIMCO was organized under the laws of the State of Connecticut in
October of 1981.
HIMCO also serves as investment adviser to several other Hartford sponsored
funds which are also registered with the Securities and Exchange Commission.
HIMCO is registered as an investment adviser under the Investment Advisers Act
of 1940. HIMCO provides investment advice and, in general, supervises the
management and investment program of Hartford Bond Fund, Inc., Hartford Index
Fund, Inc., Hartford International Opportunities Fund, Inc., Hartford Mortgage
Securities Fund, Inc., and HVA Money Market Fund, Inc., pursuant to an
Investment Advisory Agreement entered into with each of these Funds for which
HIMCO receives a fee. HIMCO also supervises the investment programs of Hartford
Advisers Fund, Inc., Hartford Dividend and Growth Fund, Inc., Hartford Capital
Appreciation Fund, Inc. and Hartford Stock Fund, Inc. pursuant to an Investment
Management Agreement for which HIMCO receives a fee. In addition, with respect
to these four Funds, HIMCO has a Sub-Investment Advisory Agreement with
Wellington Management Company ("Wellington") to provide an investment program to
HIMCO for utilization by HIMCO in rendering services to these funds. Wellington
is a professional investment counseling firm which provides investment services
to investment companies, other institutions and individuals. Wellington
organized as a private Massachusetts partnership and its predecessor
organizations have provided investment advisory services to investment companies
since 1933 and to investment counseling clients since 1960. See the accompanying
prospectuses for each of the Funds for a more complete description of HIMCO and
Wellington and their respective fees.
PUTNAM FUNDS
The Putnam Management Company, Inc. ("The 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. The Putnam Management and
its affiliate are wholly-owned subsidiaries of Marsh & McLennan Companies, Inc.,
a publicly owned holding company whose principal business are international
insurance and reinsurance brokerage, employee benefit consulting and investment
management. See the accompanying prospectuses for each of the Funds for a more
complete description of The Putnam Management.
FIDELITY FUNDS
The Fidelity Funds are managed by Fidelity Management & Research Company
("Fidelity Management"), whose principal business address is 82 Devonshire
Street, Boston, Massachusetts. Fidelity Management is one of America's largest
investment management organizations. It is composed of a number of different
companies, which provide a variety of financial services and products. Fidelity
Management is the original Fidelity company, founded in 1946. It provides a
number of mutual funds and other clients with investment research and portfolio
management services. Various Fidelity companies perform certain activities
required to operate Variable Insurance Products Fund and Variable Insurance
Products Fund II.
29
<PAGE>
THE FIXED ACCOUNT
THAT PORTION OF THE POLICY RELATING TO THE FIXED ACCOUNT IS NOT REGISTERED
UNDER THE SECURITIES ACT OF 1933 ("1933 ACT") AND THE FIXED ACCOUNT IS NOT
REGISTERED AS AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940
("1940 ACT"). ACCORDINGLY, NEITHER THE FIXED ACCOUNT NOR ANY INTERESTS THEREIN
ARE SUBJECT TO THE PROVISIONS OR RESTRICTIONS OF THE 1933 ACT OR THE 1940 ACT,
AND THE DISCLOSURE REGARDING THE FIXED ACCOUNT HAS NOT BEEN REVIEWED BY THE
STAFF OF THE SECURITIES AND EXCHANGE COMMISSION. THE FOLLOWING DISCLOSURE ABOUT
THE FIXED ACCOUNT MAY BE SUBJECT TO CERTAIN GENERALLY APPLICABLE PROVISIONS OF
THE FEDERAL SECURITIES LAWS REGARDING THE ACCURACY AND COMPLETENESS OF
DISCLOSURE.
Premium Payments and Cash Values allocated to the Fixed Account become a
part of the general assets of Hartford. Hartford invests the assets of the
General Account in accordance with applicable law governing the investments of
Insurance Company General Accounts.
The Fixed Account Minimum Credited Rate is shown in the Contract. Currently,
Hartford guarantees that it will credit interest at a rate of not less than 4%
per year, compounded annually, to amounts allocated to the Fixed Account under
the Policies. Hartford may credit interest at a rate in excess of the Fixed
Account Minimum Credited Rate, however, Hartford is not obligated to credit any
interest in excess of the Fixed Account Minimum Credited Rate. There is no
specific formula for the determination of excess interest credits. Some of the
factors that the Company may consider in determining whether to credit excess
interest to amounts allocated to the Fixed Account and the amount thereof, are
general economic trends, rates of return currently available and anticipated on
the Company's investments, regulatory and tax requirements and competitive
factors. ANY INTEREST CREDITED TO AMOUNTS ALLOCATED TO THE FIXED ACCOUNT IN
EXCESS OF THE FIXED ACCOUNT MINIMUM CREDITED RATE WILL BE DETERMINED IN THE SOLE
DISCRETION OF THE COMPANY. THE OWNER ASSUMES THE RISK THAT INTEREST CREDITED TO
FIXED ACCOUNT ALLOCATIONS MAY NOT EXCEED THE FIXED ACCOUNT MINIMUM CREDITED
RATE.
OTHER MATTERS
VOTING RIGHTS
In accordance with its view of presently applicable law, Hartford will vote
the shares of the Funds at regular and special meetings of the shareholders of
the Funds in accordance with instructions from Policy Owners (or the assignee of
the Policy, as the case may be) having a voting interest in Separate Account VL
I. The number of shares held in the Separate Account which are attributable to
each Policy Owner is determined by dividing the Policy Owner's interest in each
Sub-Account by the net asset value of the applicable shares of the Funds.
Hartford will vote shares for which no instructions have been given and shares
which are not attributable to Policy Owners (i.e., shares owned by Hartford) in
the same proportion as it votes shares for which it has received instructions.
If the Investment Company Act of 1940 or any rule promulgated thereunder should
be amended, however, or if Hartford's present interpretation should change and,
as a result, Hartford determines it is permitted to vote the shares of the Funds
in its own right, it may elect to do so.
The voting interests of the Policy Owner (or the assignee) in the Funds will
be determined as follows: Policy Owners may cast one vote for each full or
fractional Accumulation Unit owned under the Policy and allocated to a
Sub-Account the assets of which are invested in the particular Fund on the
record date for the shareholder meeting for that Fund. If, however, a Policy
Owner has taken a loan secured by the Policy, amounts transferred from the
Sub-Account(s) to the Loan Account(s) in connection with the loan (see "Policy
Benefits and Rights -- Policy Loans," page ) will not be considered in
determining the voting interests of the Policy Owner. Policy Owners should
review the prospectuses for the Funds which accompany this Prospectus to
determine matters on which shareholders may vote.
Hartford may, when required by state insurance regulatory authorities,
disregard voting instructions if the instructions require that the shares be
voted so as to cause a change in the sub-classification or investment objective
of one or more of the Funds or to approve or disapprove an investment advisory
policy for the Funds. In addition, Hartford itself may disregard voting
instructions in favor of changes initiated by a Policy Owner in
30
<PAGE>
the investment policy or the investment adviser of the Funds if Hartford
reasonably disapproves of such changes. A change would be disapproved only if
the proposed change is contrary to state law or prohibited by state regulatory
authorities. In the event Hartford does disregard voting instructions, a summary
of that action and the reasons for such action will be included in the next
periodic report to Policy Owners.
STATEMENTS TO POLICY OWNERS
We will send You a statement at least once each Policy Year, showing:
(a) the current Account Value, Cash Value and Face Amount;
(b) the premiums paid, Monthly Deduction Amounts and loans since the last
report;
(c) the amount of any Indebtedness;
(d) notifications required by the provisions of the Policy; and
(e) any other information required by the Insurance Department of the State
where the policy was delivered.
LIMIT ON RIGHT TO CONTEST
Hartford may not contest the validity of the Policy after it has been in
effect during the Insured's lifetime for two years from the Issue Date. If the
Policy is reinstated, the two-year period is measured from the date of
reinstatement. Any increase in the Face Amount as a result of a premium payment
is contestable for two years from its effective date. In addition, if the
Insured commits suicide in the two-year period, or such period as specified in
state law, the benefit payable will be limited to the premiums paid less any
Indebtedness and partial withdrawals.
MISSTATEMENT AS TO AGE
If the age of the Insured is incorrectly stated, the amount of Death Benefit
will be appropriately adjusted as specified in the Policy.
PAYMENT OPTIONS
Proceeds under the Policies may be paid in a lump sum or may be applied to
one of Hartford's payment options. The minimum amount that may be placed under a
payment option is $5,000 unless Hartford consents to a lesser amount. Once
payments under Options 2, 3 or 4 commence, no surrender of the Policy may be
made for the purpose of receiving a lump sum settlement in lieu of the life
insurance payments. The following options are available under the Policies.
FIRST OPTION -- Interest Income
Payments of interest at the rate we declare, but not less than 3 1/2% per
year, on the amount applied under this option.
SECOND OPTION -- Income of Fixed Amount
Equal payments of the amount chosen until the amount applied under this
option, with interest of not less than 3 1/2% per year, is exhausted. The
final payment will be for the balance remaining.
THIRD OPTION -- Payments for a Fixed Period
An amount payable monthly for the number of years selected which may be from
1 to 30 years.
FOURTH OPTION -- Life Income
LIFE ANNUITY -- an life insurance payable monthly during the lifetime of the
Annuitant and terminating with the last monthly payment due preceding the
death of the Annuitant.
LIFE ANNUITY WITH 120 MONTHLY PAYMENTS CERTAIN -- an life insurance providing
monthly income to the Annuitant for a fixed period of 120 months and for as
long thereafter as the Annuitant shall live.
31
<PAGE>
The Tables in the Policy provide for guaranteed dollar amounts of monthly
payments for each $1,000 applied under the four Payment Options. Under the
Fourth Option, the amount of each payment will depend upon the age of the
Annuitant at the time the first payment is due. If any periodic payment due any
payee is less than $200, Hartford may make payments less often.
The Table for the Fourth Option is based on the 1983a Individual Annuity
Mortality Table set back one year and a net investment rate of 3.5% per annum.
The Tables for the First, Second and Third Options are based on a net investment
rate of 3.5% per annum. Hartford may, however, from time to time, at our
discretion if mortality appears more favorable and interest rates justify, apply
other tables which will result in higher monthly payments for each $1,000
applied under one or more of the four Payment Options.
Hartford will make any other arrangements for income payments as may be
agreed on.
BENEFICIARY
The applicant names the Beneficiary in the application for the Policy. The
Policy Owner may change the Beneficiary (unless irrevocably named) during the
Insured's lifetime by written request to Hartford. If no Beneficiary is living
when the Insured dies, the Death Proceeds will be paid to the Policy Owner if
living; otherwise to the Policy Owner's estate.
ASSIGNMENT
The Policy may be assigned as collateral for a loan or other obligation.
Hartford is not responsible for any payment made or action taken before receipt
of written notice of such assignment. Proof of interest must be filed with any
claim under a collateral assignment.
DIVIDENDS
No dividends will be paid under the Policies.
SUPPLEMENTAL BENEFITS
The following supplemental benefits, which are subject to the restrictions
and limitations set forth therein, may be included in a Policy.
DEDUCTION AMOUNT WAIVER RIDER
Subject to certain age and underwriting restrictions, the Policy may include
a Deduction Amount Waiver Rider. This rider provides for the waiver of the
Policy's Monthly Deduction Amounts in the event of total disability prior to the
Insured reaching Attained Age 65 and continuing for at least six months. The
number of Monthly Deduction Amounts waived depends on the Insured's Attained Age
when the disability began. If this rider is added, the Monthly Deduction Amounts
will be increased to include the charges for this rider.
ACCIDENTAL DEATH BENEFIT RIDER
Subject to certain age and underwriting requirements, the Policy may include
an Accidental Death Benefit Rider.
This rider provides for an increase in the amount paid upon the death of the
Insured if the death results from an accident.
If this rider is added, the Monthly Deduction Amounts will be increased to
include the charges for this rider.
INCREASE IN COVERAGE OPTION RIDER
Subject to certain age and underwriting requirements, the Policy may include
an Increase in Coverage Option Rider.
This rider gives the Owner the guaranteed right to purchase a new Flexible
Premium Variable Life Insurance policy on the life of the Insured, without
evidence of insurability, if certain conditions are met. These conditions
include:
32
<PAGE>
1. the original policy has been in force for five years,
2. the Insured's Attained Age is less than 80, and
3. the Account Value of the original policy is sufficient to "pay-up" the
policy under assumptions defined in the rider.
The Face Amount of the new policy will be equal to the Face Amount times a
percentage. This percentage depends on the Insured's age, sex (except where
unisex rates are used), and insurance class. The Scheduled Premium fee for the
new policy is based on the Scheduled Premium for the original policy.
MATURITY DATE EXTENSION RIDER
We will extend the Maturity Date (the date on which the Policy will mature)
to the date of the death of the second Insured to die, regardless of the age of
either Insured. Certain Death Benefit and premium restrictions apply. See
"Income Taxation of Policy Benefits."
33
<PAGE>
EXECUTIVE OFFICERS AND DIRECTORS
<TABLE>
<CAPTION>
OTHER BUSINESS PROFESSION,
VOCATION OR EMPLOYMENT
POSITION WITH HLIC, FOR PAST 5 YEARS;
NAME, AGE YEAR OF ELECTION OTHER DIRECTORSHIPS
- ---------------------------------- ---------------------------------------- ---------------------------------------
<S> <C> <C>
Louis J. Abdou, 52 Vice President, 1987 Vice President (1987-Present), Hartford
Insurance Company.
David H. Annis, 43 Vice President, 1994 Vice President (1994-Present);
Assistant Vice President (1986-1994).
Paul J. Boldischar, Jr., 53 Vice President, 1992 Senior Vice President and Director,
Operations ITT Hartford Life and
Annuity Insurance Company, 1994;
Senior Vice President and Director of
National Service Center, ITT Life
Insurance Corporation (1987-1992).
Wendell J. Bossen, 61 Vice President, 1992** President (1992-Present), International
Corporate Marketing Group, Inc.;
Executive Vice President (1984-1992),
Mutual Benefit.
Peter W. Cummins, 57 Vice President, 1989 Vice President, Individual Annuity
Operations (1989-Present), Hartford
Life Insurance Company.
Julianna B. Dalton, 39 Vice President, 1992 Vice President (1992-Present);
Assistant Vice President (1989-1992);
Director of Research (1987-1989),
Hartford Life Insurance Company.
Ann M. deRaismes, 44 Vice President, 1994 Vice President (1994), Assistant Vice
President (1992-1994); Director of
Human Resources (1991-Present);
Assistant Director of Human Resources
(1987-1991), Hartford Life Insurance
Company.
Allen J. Duoma, M.D., 49 Medical Director, 1993 Medical Director (1993-Present),
Employee Benefits Division, Hartford
Life Insurance Company; Medical
Director (1990-1993), Travelers'
Managed Disability Services; Medical
Director (1988-1990), Center for
Corporate Health.
Donald R. Frahm, 63 Chairman and Chief Executive Officer, Chairman and Chief Executive Officer of
1988 the Hartford Insurance Group
(1988-Present).
</TABLE>
34
<PAGE>
<TABLE>
<CAPTION>
OTHER BUSINESS PROFESSION,
VOCATION OR EMPLOYMENT
POSITION WITH HLIC, FOR PAST 5 YEARS;
NAME, AGE YEAR OF ELECTION OTHER DIRECTORSHIPS
- ---------------------------------- ---------------------------------------- ---------------------------------------
<S> <C> <C>
Bruce D. Gardner, 44 General Counsel, 1991 and Corporate General Counsel Corporate Secretary
Secretary (1991-Present); Corporate Secretary
(1988-Present); Associate General
Counsel (1988-1991); Counsel
(1986-1988), Hartford Life Insurance
Company.
Joseph H. Gareau, 47 Executive Vice President and Chief Executive Vice President and Chief
Investment Officer, 1993 Investment Officer (1993-Present),
Hartford Life Insurance Co.; Senior
Vice President and Chief Investment
Officer (1992-1993), ITT Hartford's
Property-Casualty Companies.
J. Richard Garrett, 49 Vice President, 1988 and Treasurer Vice President and Treasurer
(1988-Present), Hartford Insurance
Group.
John P. Ginnetti, 48 Executive Vice President and Director Executive Vice President, 1994; Senior
Asset Management Services, 1994 Vice President (1988-1994); General
Counsel Services, 1994 and Corporate
Secretary of Hartford Life Insurance
Company (1982-1988).
Lois W. Grady, 50 Vice President, 1993 Vice President (1993-Present);
Assistant Vice President (1988-1993),
Hartford Life Insurance Company.
David A. Hall, 40 Senior Vice President and Actuary, 1992 Senior Vice President and Actuary of
Hartford Life Insurance Company
(1992-Present).
Joseph Kanarek, 47 Vice President, 1991 Vice President (1991-Present); Director
(1992-Present), Hartford Life
Insurance Company.
Kevin L. Kirk, 43 Vice President, 1992 Vice President (1992-Present);
Assistant Vice President; Assistant
Director (1985-1992), Asset
Management Services, Hartford Life
Insurance Company (1985-1992).
Andrew W. Kohnke, 36 Vice President, 1992 Vice President (1992-Present);
Assistant Vice President (1989-1992);
Investment Officer (1987-1989),
Hartford Life Insurance Company.
Steven M. Maher, 40 Vice President and Actuary, 1993 Vice President and Actuary,
(1993-Present); Assistant Vice
President (1987-1993), Hartford Life
Insurance Company.
William B. Malchodi, Jr., 44 Vice President and Director of Taxes, Director of Taxes (1992-Present),
1992 Hartford Insurance Company.
</TABLE>
35
<PAGE>
<TABLE>
<CAPTION>
OTHER BUSINESS PROFESSION,
VOCATION OR EMPLOYMENT
POSITION WITH HLIC, FOR PAST 5 YEARS;
NAME, AGE YEAR OF ELECTION OTHER DIRECTORSHIPS
- ---------------------------------- ---------------------------------------- ---------------------------------------
<S> <C> <C>
Thomas M. Marra, 36 Senior Vice President and Actuary, 1994 Senior Vice President, 1994; Vice
Director, ILAD President (1989-1994); Director of
Individual Annuities (1991-Present);
Assistant Vice President (1989);
Actuary (1987-1989), Hartford Life
Insurance Company.
David J. McDonald, 58 Senior Vice President, 1986 Senior Vice President and Director,
Asset Management Services
(1986-Present); Vice President
(1980-1986), Hartford Insurance
Company.
Kevin A. North, 42 Vice President, 1991 Vice President, Hartford Insurance
Group and Director of Real Estate
(1991-Present); Vice President and
Deputy Director of Real Estate
(1989-1991); Assistant Vice President
and Deputy Director of Real Estate
(1987-1989).
Joseph J. Noto, 42 Vice President, 1989 Vice President (1989-Present), Hartford
Life Insurance Company; Controller
(1983-1989), Personal Lines Insurance
Center; Vice President (1986-1989),
Personal Lines Insurance Center;
Controller (1987-1989), Personal
Lines Market Segment, Hartford Fire.
Leonard E. Odell, Jr., 49 Senior Vice President, 1994 Senior Vice President (1994-Present);
Vice President (1982-1994); Actuary
(1976-1982), Hartford Life Insurance
Company.
Michael C. O'Halloran, 46 Vice President & Senior Associate Vice President & Senior Associate
General Counsel, 1988 General Counsel and Director
(1988-Present), Law Department,
Hartford Fire Insurance Company.
Craig D. Raymond, 33 Vice President and Chief Actuary, 1994 Vice President and Chief Actuary, 1994;
Vice President and Actuary
(1993-1994); Assistant Vice President
and Actuary (1992-1993); Actuary
(1989-1992), Hartford Life Insurance
Company; Consultant,
Tillinghast/Towers Ferrin
(1988-1989).
</TABLE>
36
<PAGE>
<TABLE>
<CAPTION>
OTHER BUSINESS PROFESSION,
VOCATION OR EMPLOYMENT
POSITION WITH HLIC, FOR PAST 5 YEARS;
NAME, AGE YEAR OF ELECTION OTHER DIRECTORSHIPS
- ---------------------------------- ---------------------------------------- ---------------------------------------
<S> <C> <C>
Lowndes A. Smith, 55 President and Chief Operating Officer, President and Chief Operating Officer
1989 (1989-Present), Hartford Life
Insurance Company; Senior Vice
President and Group Controller; Vice
President and Group Controller
(1980-1987), Hartford Insurance
Group.
Edward J. Sweeney, 38 Vice President, 1993 Vice President (1993-Present); Chicago
Regional Manager (1985-1993),
Hartford Life Insurance Company.
James E. Trimble, 38 Vice President and Actuary, 1990 Vice President (1990-Present);
Assistant Vice President (1987-1990),
Hartford Life Insurance Company.
Raymond P. Welnicki, 46 Senior Vice President, 1994 Senior Vice President 1994, Vice
President (1993-Present), Hartford
Life Insurance Company; Board of
Directors, Ethix Corp., formerly
employed by Aetna Life & Casualty.
James J. Westervelt, 47 Vice President and Group Controller, Vice President and Group Controller,
1989 (1989-Present); Assistant Vice
President and Assistant Controller
(1983-1989), Hartford Insurance
Group.
Lizabeth H. Zlatkus, 36 Vice President, 1994 Vice President (1994); Assistant Vice
President (1992-1994); Hartford Life
Insurance Company; formerly Director,
Hartford Insurance Group.
Donald J. Znamierowski, 60 Vice President and Director of Strategic Vice President and Director of
Operations, 1994 Strategic Operations, 1994; Vice
President and 1994 Comptroller
(1986-1994); Assistant Vice President
and Comptroller (1976-1986); Director
(1976-1986), Hartford Life Insurance
Company, Hartford Life & Accident
Insurance Company, ITT Hartford Life
& Annuity Insurance Company, and Ally
Canada.
<FN>
- ------------------------
* Denotes date of election to Board of Directors.
** ITT Hartford Affiliated Company.
</TABLE>
37
<PAGE>
DISTRIBUTION OF THE POLICIES
Hartford intends to sell the Policies in all jurisdictions where it is
licensed to do business. The Policies will be sold by life insurance sales
representatives who represent Hartford and who are registered representatives of
Hartford Equity Sales Company, Inc. ("HESCO"), or certain other registered
Broker-Dealers. Any sales representative or employee will have been qualified to
sell variable life insurance policies under applicable Federal and State laws.
Each Broker-Dealer is registered with the Securities and Exchange Commission
under the Securities Exchange Act of 1934 and all are members of the National
Association of Securities Dealers, Inc. HESCO is the principal underwriter for
the Policies. During the first Policy Year, the maximum sales commission payable
to Hartford agents, independent registered insurance brokers, and other
registered Broker-Dealers is 45% of the premiums paid up to a target premium and
5% of any excess. In Policy Years 2 through 10, agent commissions will not
exceed 5.5% of premiums paid. For Policy Years 11 and later, the agent
commissions will not exceed 2% of the premiums paid. In addition, expense
allowances may be paid. The sales representative may be required to return all
or a portion of the commissions paid if the Policy terminates prior to the
second Policy Anniversary.
SAFEKEEPING OF THE SEPARATE ACCOUNT'S ASSETS
The assets of the Separate Account are held by Hartford. The assets of the
Separate Account are kept physically segregated and held separate and apart from
the General Account of Hartford. Hartford maintains records of all purchases and
redemptions of shares of the Fund. Additional protection for the assets of the
Separate Account is afforded by Hartford's blanket fidelity bond issued by Aetna
Casualty and Surety Company, in the aggregate amount of $50 million, covering
all of the officers and employees of Hartford.
FEDERAL TAX CONSIDERATIONS
GENERAL
SINCE THE TAX LAW IS COMPLEX AND SINCE TAX CONSEQUENCES WILL VARY ACCORDING
TO THE ACTUAL STATUS OF THE POLICY OWNER INVOLVED AND THE TYPE OF PLAN UNDER
WHICH THE POLICY IS PURCHASED, LEGAL AND TAX ADVICE MAY BE NEEDED BY A PERSON,
TRUSTEE OR OTHER ENTITY CONTEMPLATING THE PURCHASE OF A POLICY DESCRIBED HEREIN.
It should be understood that any detailed description of the Federal income
tax consequences regarding the purchase of these Policies cannot be made in this
Prospectus and that special tax rules may be applicable with respect to certain
purchase situations not discussed herein. In addition, no attempt is made here
to consider any applicable state or other tax laws. For detailed information, a
qualified tax adviser should always be consulted. This discussion of Federal tax
considerations is based upon Hartford's understanding of current Federal income
tax laws as they are currently interpreted.
TAXATION OF HARTFORD LIFE AND SEPARATE ACCOUNT VL I
Separate Account VL I is taxed as a part of Hartford which is taxed as a
life insurance company under Part 1 of Subchapter L of Chapter 1 of the Internal
Revenue Code ("Code"). Accordingly, Separate Account VL I will not be taxed as a
"regulated investment company" under Subchapter M of the Code. Investment income
and realized capital gains on the assets of Separate Account VL I (the
underlying Funds) are reinvested and are taken into account in determining the
value of the Accumulation Units (see "Detailed Description of Policy Benefits
and Provisions -- Cash Value," on page ). As a result, such investment income
and realized capital gains are automatically applied to increase reserves under
the Policy.
Hartford does not expect to incur any Federal income tax on the earnings or
realized capital gains attributable to Separate Account VL I. Based upon these
expectations, no charge is currently being made to Separate Account VL I for
Federal income taxes. If Hartford incurs income taxes attributable to Separate
Account VL I or determines that such taxes will be incurred, it may assess a
charge for taxes against Separate Account VL I.
38
<PAGE>
INCOME TAXATION OF POLICY BENEFITS
For Federal income tax purposes, the Policies should be treated as life
insurance policies under Section 7702 of the Code. The death benefit under a
life insurance policy is excluded from the gross income of the Beneficiary.
Also, a life insurance Policy Owner is not taxed on increments in the policy
value until the policy is partially or completely surrendered. Section 7702
limits the amount of premiums that may be invested in a policy that is treated
as life insurance. Hartford intends to monitor premium levels to assure
compliance with the Section 7702 standards.
During the first fifteen policy years, an "income first" rule generally
applies to any distribution of cash that is required under Code Section 7702
because of a reduction in benefits under the Policy.
Hartford also believes that any loan received under a Policy will be treated
as Indebtedness of the Policy Owner, and that no part of any loan under a Policy
will constitute income to the Policy Owner. A surrender or assignment of the
Policy may have tax consequences depending upon the circumstances. Policy Owners
should consult qualified tax advisers concerning the effect of such changes.
Federal, state, and local estate tax, inheritance, and other tax
consequences of ownership or receipt of Policy proceeds depend on the
circumstances of each Policy Owner or Beneficiary.
The Maturity Date Extention Rider allows a Policy Owner to extend the
Maturity Date to the date of the death of last surviving insured. Although
Hartford believes that the Policy will continue to be treated as a life
insurance contract for federal income tax purposes after the scheduled Maturity
Date, due to the lack of specific guidance on this issue, this result is not
certain. If the Policy is not treated as a life insurance contract for federal
income tax purposes after the Matuity Date, among other things, the Death
Proceeds may be taxable to the recipient. The Policy Owner should consult a
competent tax adviser regarding the possible adverse tax consequences resulting
from an extension of the scheduled Maturity Date.
MODIFIED ENDOWMENT POLICIES
Code Section 7702A applies an additional test, the "seven-pay" test, to life
insurance contracts. A modified endowment contract is a life insurance policy
which satisfies the Section 7702 definition of life insurance but fails the
seven-pay test of Section 7702A. A policy fails the seven-pay test if the
accumulated amount paid into the policy at any time during the first seven
Policy Years exceeds the sum of the net level premiums that would have been paid
up to that point if the policy provided for paid-up future benefits after the
payment of seven level annual premiums. Computational rules for the seven-pay
test are described in Section 7702A(c).
A policy that is classified as a modified endowment contract is eligible for
certain aspects of the beneficial tax treatment accorded to life insurance. That
is, the death benefit is excluded from income and increments in value are not
subject to current taxation. However, withdrawals and loans from a modified
endowment policy are treated first as income, then as a recovery of basis.
Taxable withdrawals are subject to a 10% additional tax, with certain
exceptions. Generally, only distributions and loans made in the first year in
which a policy becomes a modified endowment policy, and in subsequent years, are
taxable. However, distributions and loans made in the two years prior to a
policy's failing the seven-pay test are deemed to be in anticipation of failure
and are subject to tax.
If the policy satisfies the seven-pay test for seven years, distributions
and loans made thereafter will not be subject to the modified endowment policy
rules, unless the policy is changed materially. The seven-pay test will be
applied anew at any time the policy undergoes a material change, which includes
an increase in the death benefit.
All modified endowment policies that are issued within any calendar year to
the same Policy Owner by one company or its affiliates shall be treated as one
modified endowment policy for the purpose of determining the taxable portion of
any loan or distribution.
DIVERSIFICATION REQUIREMENTS
Section 817 of the Code provides that a variable life insurance policy
(other than a pension plan policy) will not be treated as a life insurance
policy for any period during which the investments made by the separate account
or underlying fund are not adequately diversified in accordance with regulations
prescribed by the Treasury. If a policy is not treated as a life insurance
policy, the Policy Owner will be subject to income tax on the annual increases
in Cash Value. The Treasury has issued diversification regulations which, among
other
39
<PAGE>
things, require that no more than 55% of the assets of mutual fund (such as the
Hartford mutual funds) underlying a variable life insurance policy, be invested
in any one investment. All securities issued by the same issuer are considered
one investment. In determining whether the diversification standards are met,
each United States government agency or instrumentality shall be treated as a
separate issuer. If the diversification standards are not met, non-pension
Policyholders will be subject to current tax on the increase in Cash Value in
the policy.
A separate account must be in compliance with the diversification standards
on the last day of each calendar quarter or within 30 days after the quarter
ends. If an insurance company inadvertently fails to meet the diversification
standards, the company may comply within a reasonable period and avoid the
taxation of policy income on an ongoing basis. However, either the Company or
Policy Owner must agree to pay the tax due for the period during which the
diversification standards were not met. The amount required to be paid shall be
an amount based upon the tax that would have been owed by the Policyowners if
they were treated as receiving the income on the Contract for such period or
periods.
FEDERAL INCOME TAX WITHHOLDING
If any amounts are deemed to be current taxable income to the Policy Owner,
such amounts will be subject to Federal income tax withholding and reporting,
pursuant to Section 3405 of the Internal Revenue Code.
OTHER TAX CONSIDERATIONS
Qualified tax advisers should be consulted concerning the estate and gift
tax consequences of Policy ownership and distributions under federal, state and
local law.
LEGAL PROCEEDINGS
There are no pending material legal proceedings affecting the Policies,
Separate Account VL I or any of the Funds.
EXPERTS
The audited financial statements for Hartford Insurance Company included in
this Prospectus and Registration Statement have been audited by Arthur Andersen,
LLP, independent public accountants, as indicated in their report herein, and
are included herein in reliance upon the authority of said firm as experts in
accounting and auditing (to be provided by amendment). The hypothetical Policy
illustrations included in this Prospectus and Registration Statement have been
approved by Timothy M. Fitch, FSA, MAAA are included in reliance upon his
opinion as to their reasonableness.
REGISTRATION STATEMENT
A registration statement has been filed with the Securities and Exchange
Commission under the Securities Act of 1933 as amended. This Prospectus does not
contain all information set forth in the registration statement, its amendments
and exhibits, to all of which reference is made for further information
concerning Separate Account VL I, Hartford, and the Policies.
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned Registrant hereby undertakes to file with
the Securities and Exchange Commission such supplementary and periodic
information, documents, and reports as may be prescribed by any rule or
regulation of the Commission heretofore or hereafter duly adopted pursuant to
authority conferred in that section.
40
<PAGE>
APPENDIX A
ILLUSTRATION OF DEATH BENEFITS, ACCOUNT
VALUES AND CASH SURRENDER VALUES
The following tables illustrate how the Death Benefits, Account Values and
Cash Surrender Values of a Policy may change with the investment experience of
the Separate Account. The tables show how the Death Benefits, Account Values and
Cash Surrender Values of a Policy issued to an Insured of a given age would vary
over time if the investment return on the assets held in each Fund were a
uniform, gross annual rate of 0%, 6% and 12%. The Death Benefits, Account Values
and Cash Surrender Values would be different from those shown if the gross
annual investment returns averaged 0%, 6% and 12% over a period of years, but
fluctuated above and below those averages for individual Policy Years. The
tables assume that no Policy Loans are made and that no partial withdrawals have
been made. The tables are also based on the assumption that the Owner has not
requested an increase or decrease in the Fact Amount and that no fund transfers
have been made in any Policy Year.
The tables on pages 44 to 61 illustrate a Policy issued to a Male Insured,
Age 45 in the Preferred Premium Class with an Initial Face Amount of $250,000
and a Scheduled Premium that is paid at the beginning of each Policy Year. The
Death Benefits, Account Values and Cash Surrender Values would be lower if the
Insured was a smoker or in a special class since the cost of insurance charges
would increase.
The tables reflect the fact that the net return on the assets held in the
subaccounts is lower than the gross after-tax return of the Funds. This is
because these tables assume an investment management fee and other estimated
Fund expenses totaling 0.70%. The 0.70% figure is based on an average of the
current management fees and expenses of the available fifteen 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
0.70%, will vary from year to year, and will depend on how the Account Value is
allocated.
As their headings indicate, the tables reflect the deductions of current
contractual charges and guaranteed contractual charges for a single gross
interest rate. These charges include the monthly charge to the Account for
assuming mortality and expense risks, the monthly administrative charge, and the
monthly mortality charge. All tables assume a charge of 2.25% for taxes
attributable to premiums and reflect the fact that no charges against the
Account are currently made for federal, state or local taxes attributable to the
Policy.
Each table also shows the amount to which the premiums would accumulate if
an amount equal to those premiums were invested to earn interest, after taxes,
at 5% compounded annually.
Upon request, Hartford will furnish a comparable illustration based on a
proposed Policy's specific circumstances.
41
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
GUARANTEE PERIOD: 10 YEARS
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,000 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.70% 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 1,232 0*** 250,000 1,232 0*** 250,000
2 8,610 4,074 163*** 250,000 4,074 163*** 250,000
3 13,241 6,764 3,342 250,000 6,764 3,342 250,000
4 18,103 9,345 6,411 250,000 9,345 6,411 250,000
5 23,208 11,843 9,398 250,000 11,843 9,398 250,000
6 28,568 14,274 12,318 250,000 14,274 12,318 250,000
7 34,196 16,645 15,178 250,000 16,645 15,178 250,000
8 40,106 18,971 17,994 250,000 18,971 17,994 250,000
9 46,312 21,246 20,757 250,000 21,246 20,757 250,000
10 52,827 23,456 23,456 250,000 23,456 23,456 250,000
11 59,669 25,850 25,850 250,000 24,932 24,932 250,000
12 66,852 28,102 28,102 250,000 26,215 26,215 250,000
13 74,395 30,190 30,190 250,000 27,297 27,297 250,000
14 82,314 32,117 32,117 250,000 28,157 28,157 250,000
15 90,630 33,884 33,884 250,000 28,773 28,773 250,000
16 99,361 35,385 35,385 250,000 29,115 29,115 250,000
17 108,530 36,726 36,726 250,000 29,156 29,156 250,000
18 118,156 37,906 37,906 250,000 28,850 28,850 250,000
19 128,264 38,913 38,913 250,000 28,147 28,147 250,000
20 138,877 39,740 39,740 250,000 26,999 26,999 250,000
25 200,454 39,821 39,821 250,000 12,667 12,667 250,000
30 279,043 30,239 30,239 250,000 -- -- 250,000
<FN>
* 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.
*** IF YOU SURRENDER YOUR POLICY DURING THE FIRST TWO POLICY YEARS, YOU WILL
RECEIVE A REFUND IN ADDITION TO THE CASH VALUES SHOWN. THE REFUND PLUS THE
CASH VALUE WOULD BE $2,032 IN YEAR ONE AND $4,753 IN YEAR TWO.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 50% IN YEAR 1, 11% IN YEARS 2
THROUGH 10 AND 3% THEREAFTER. THE SURRENDER CHARGE EFFECTIVE IN ANY YEAR CAN BE
DETERMINED BY SUBTRACTING THE CASH SURRENDER VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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
ACCOUNT 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.
42
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
GUARANTEE PERIOD: 10 YEARS
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,000 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.30% 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 1,325 0*** 250,000 1,325 0*** 250,000
2 8,610 4,435 523*** 250,000 4,435 523*** 250,000
3 13,241 7,570 4,148 250,000 7,570 4,148 250,000
4 18,103 10,778 7,845 250,000 10,778 7,845 250,000
5 23,208 14,087 11,643 250,000 14,087 11,643 250,000
6 28,568 17,519 15,563 250,000 17,519 15,563 250,000
7 34,196 21,085 19,618 250,000 21,085 19,618 250,000
8 40,106 24,808 23,830 250,000 24,808 23,830 250,000
9 46,312 28,688 28,200 250,000 28,688 28,200 250,000
10 52,827 32,722 32,722 250,000 32,722 32,722 250,000
11 59,669 37,186 37,186 250,000 36,279 36,279 250,000
12 66,852 41,760 41,760 250,000 39,852 39,852 250,000
13 74,395 46,430 46,430 250,000 43,436 43,436 250,000
14 82,314 51,207 51,207 250,000 47,017 47,017 250,000
15 90,630 56,101 56,101 250,000 50,580 50,580 250,000
16 99,361 61,026 61,026 250,000 54,103 54,103 250,000
17 108,530 66,085 66,085 250,000 57,565 57,565 250,000
18 118,156 71,290 71,290 250,000 60,934 60,934 250,000
19 128,264 76,646 76,646 250,000 64,173 64,173 250,000
20 138,877 82,162 82,162 250,000 67,247 67,247 250,000
25 200,454 111,781 111,781 250,000 78,904 78,904 250,000
30 279,043 145,617 145,617 250,000 77,492 77,492 250,000
<FN>
* 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.
*** IF YOU SURRENDER YOUR POLICY DURING THE FIRST TWO POLICY YEARS, YOU WILL
RECEIVE A REFUND IN ADDITION TO THE CASH VALUES SHOWN. THE REFUND PLUS THE
CASH VALUE WOULD BE $2,125 IN YEAR ONE AND $5,113 IN YEAR TWO.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 50% IN YEAR 1, 11% IN YEARS 2
THROUGH 10 AND 3% THEREAFTER. THE SURRENDER CHARGE EFFECTIVE IN ANY YEAR CAN BE
DETERMINED BY SUBTRACTING THE CASH SURRENDER VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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
ACCOUNT 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.
43
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
GUARANTEE PERIOD: 10 YEARS
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,000 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.30% 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 1,418 0*** 250,000 1,418 0*** 250,000
2 8,610 4,807 895*** 250,000 4,807 895*** 250,000
3 13,241 8,434 5,011 250,000 8,434 5,011 250,000
4 18,103 12,372 9,438 250,000 12,372 9,438 250,000
5 23,208 16,681 14,237 250,000 16,681 14,237 250,000
6 28,568 21,420 19,464 250,000 21,420 19,464 250,000
7 34,196 26,642 25,176 250,000 26,642 25,176 250,000
8 40,106 32,417 31,440 250,000 32,417 31,440 250,000
9 46,312 38,799 38,310 250,000 38,799 38,310 250,000
10 52,827 45,843 45,843 250,000 45,843 45,843 250,000
11 59,669 53,915 53,915 250,000 53,042 53,042 250,000
12 66,852 62,773 62,773 250,000 60,901 60,901 250,000
13 74,395 72,491 72,491 250,000 69,502 69,502 250,000
14 82,314 83,181 83,181 250,000 78,929 78,929 250,000
15 90,630 94,965 94,965 250,000 89,281 89,281 250,000
16 99,361 107,905 107,905 250,000 100,668 100,668 250,000
17 108,530 122,236 122,236 250,000 113,227 113,227 250,000
18 118,156 138,131 138,131 255,811 127,109 127,109 250,000
19 128,264 155,618 155,618 280,732 142,486 142,486 257,043
20 138,877 174,773 174,773 307,313 159,244 159,244 280,009
25 200,454 300,798 300,798 469,696 265,815 265,815 415,070
30 279,043 495,973 495,973 698,903 420,068 420,068 591,940
<FN>
* 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.
*** IF YOU SURRENDER YOUR POLICY DURING THE FIRST TWO POLICY YEARS, YOU WILL
RECEIVE A REFUND IN ADDITION TO THE CASH VALUES SHOWN. THE REFUND PLUS THE
CASH VALUE WOULD BE $2,218 IN YEAR ONE AND $5,485 IN YEAR TWO.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 50% IN YEAR 1, 11% IN YEARS 2
THROUGH 10 AND 3% THEREAFTER. THE SURRENDER CHARGE EFFECTIVE IN ANY YEAR CAN BE
DETERMINED BY SUBTRACTING THE CASH SURRENDER VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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 ACCOUNT 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.
44
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF ACCOUNT VALUE
GUARANTEE PERIOD: 10 YEARS
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,500 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.70% 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 4,725 1,466 0*** 251,466 1,466 0*** 251,466
2 9,686 4,727 327*** 254,727 4,727 327*** 254,727
3 14,896 7,820 3,970 257,820 7,820 3,970 257,820
4 20,365 10,789 7,489 260,789 10,789 7,489 260,789
5 26,109 13,660 10,910 263,660 13,660 10,910 263,660
6 32,139 16,450 14,250 266,450 16,450 14,250 266,450
7 38,471 19,164 17,514 269,164 19,164 17,514 269,164
8 45,120 21,820 20,720 271,820 21,820 20,720 271,820
9 52,101 24,409 23,859 274,409 24,409 23,859 274,409
10 59,431 26,916 26,916 276,916 26,916 26,916 276,916
11 67,127 29,621 29,621 279,621 28,603 28,603 278,603
12 75,208 32,154 32,154 282,154 30,059 30,059 280,059
13 83,694 34,487 34,487 284,487 31,276 31,276 281,276
14 92,604 36,623 36,623 286,623 32,229 32,229 282,229
15 101,959 38,562 38,562 288,562 32,897 32,897 282,897
16 111,782 40,177 40,177 290,177 33,245 33,245 283,245
17 122,096 41,593 41,593 291,593 33,246 33,246 283,246
18 132,926 42,806 42,806 292,806 32,854 32,854 282,854
19 144,297 43,803 43,803 293,803 32,020 32,020 282,020
20 156,237 44,576 44,576 294,576 30,699 30,699 280,699
25 225,511 43,527 43,527 293,527 15,404 15,404 265,404
30 313,924 31,575 31,575 281,575 -- -- 0
<FN>
* 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.
*** IF YOU SURRENDER YOUR POLICY DURING THE FIRST TWO POLICY YEARS, YOU WILL
RECEIVE A REFUND IN ADDITION TO THE CASH VALUES SHOWN. THE REFUND PLUS THE
CASH VALUE WOULD BE $2,366 IN YEAR ONE AND $4,772 IN YEAR TWO.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 50% IN YEAR 1, 11% IN YEARS 2
THROUGH 10 AND 3% THEREAFTER. THE SURRENDER CHARGE EFFECTIVE IN ANY YEAR CAN BE
DETERMINED BY SUBTRACTING THE CASH SURRENDER VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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
ACCOUNT 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.
45
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF ACCOUNT VALUE
GUARANTEE PERIOD: 10 YEARS
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,500 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.30% 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 4,725 1,574 0*** 251,574 1,574 0*** 251,574
2 9,686 5,141 741*** 255,141 5,141 741*** 255,141
3 14,896 8,746 4,896 258,746 8,746 4,896 258,746
4 20,365 12,432 9,132 262,432 12,432 9,132 262,432
5 26,109 16,230 13,480 266,230 16,230 13,480 266,230
6 32,139 20,158 17,958 270,158 20,158 17,958 270,158
7 38,471 24,231 22,581 274,231 24,231 22,581 274,231
8 45,120 28,468 27,368 278,468 28,468 27,368 278,468
9 52,101 32,870 32,320 282,870 32,870 32,320 282,870
10 59,431 37,428 37,428 287,428 37,428 37,428 287,428
11 67,127 42,446 42,446 292,446 41,395 41,395 291,395
12 75,208 47,558 47,558 297,558 45,332 45,332 295,332
13 83,694 52,735 52,735 302,735 49,225 49,225 299,225
14 92,604 57,982 57,982 307,982 53,045 53,045 303,045
15 101,959 63,299 63,299 313,299 56,760 56,760 306,760
16 111,782 68,557 68,557 318,557 60,328 60,328 310,328
17 122,096 73,875 73,875 323,875 63,709 63,709 313,709
18 132,926 79,251 79,251 329,251 66,842 66,842 316,842
19 144,297 84,672 84,672 334,672 69,660 69,660 319,660
20 156,237 90,127 90,127 340,127 72,095 72,095 322,095
25 225,511 116,169 116,169 366,169 76,129 76,129 326,129
30 313,924 136,250 136,250 386,250 55,925 55,925 305,925
<FN>
* 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.
*** IF YOU SURRENDER YOUR POLICY DURING THE FIRST TWO POLICY YEARS, YOU WILL
RECEIVE A REFUND IN ADDITION TO THE CASH VALUES SHOWN. THE REFUND PLUS THE
CASH VALUE WOULD BE $2,474 IN YEAR ONE AND $5,186 IN YEAR TWO.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 50% IN YEAR 1, 11% IN YEARS 2
THROUGH 10 AND 3% THEREAFTER. THE SURRENDER CHARGE EFFECTIVE IN ANY YEAR CAN BE
DETERMINED BY SUBTRACTING THE CASH SURRENDER VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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
ACCOUNT 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.
46
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF ACCOUNT VALUE
GUARANTEE PERIOD: 10 YEARS
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,500 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.30% 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 4,725 1,681 0*** 251,681 1,681 0*** 251,681
2 9,686 5,569 1,169*** 255,569 5,569 1,169*** 255,569
3 14,896 9,736 5,886 259,736 9,736 5,886 259,736
4 20,365 14,258 10,958 264,258 14,258 10,958 264,258
5 26,109 19,198 16,448 269,198 19,198 16,448 269,198
6 32,139 24,615 22,415 274,615 24,615 22,415 274,615
7 38,471 30,567 28,917 280,567 30,567 28,917 280,567
8 45,120 37,127 36,027 287,127 37,127 36,027 287,127
9 52,101 44,349 43,799 294,349 44,349 43,799 294,349
10 59,431 52,288 52,288 302,288 52,288 52,288 302,288
11 67,127 61,337 61,337 311,337 60,253 60,253 310,253
12 75,208 71,202 71,202 321,202 68,843 68,843 318,843
13 83,694 81,939 81,939 331,939 78,112 78,112 328,112
14 92,604 93,639 93,639 343,639 88,103 88,103 338,103
15 101,959 106,404 106,404 356,404 98,865 98,865 348,865
16 111,782 120,208 120,208 370,208 110,442 110,442 360,442
17 122,096 135,290 135,290 385,290 122,884 122,884 372,884
18 132,926 151,779 151,779 401,779 136,232 136,232 386,232
19 144,297 169,809 169,809 419,809 150,523 150,523 400,523
20 156,237 189,531 189,531 439,531 165,803 165,803 415,803
25 225,511 318,535 318,535 568,535 259,241 259,241 509,241
30 313,924 517,815 517,815 767,815 385,156 385,156 635,156
<FN>
* 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.
*** IF YOU SURRENDER YOUR POLICY DURING THE FIRST TWO POLICY YEARS, YOU WILL
RECEIVE A REFUND IN ADDITION TO THE CASH VALUES SHOWN. THE REFUND PLUS THE
CASH VALUE WOULD BE $2,581 IN YEAR ONE AND $5,614 IN YEAR TWO.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 50% IN YEAR 1, 11% IN YEARS 2
THROUGH 10 AND 3% THEREAFTER. THE SURRENDER CHARGE EFFECTIVE IN ANY YEAR CAN BE
DETERMINED BY SUBTRACTING THE CASH SURRENDER VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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 ACCOUNT 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.
47
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF PREMIUM
GUARANTEE PERIOD: 10 YEARS
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,500 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.70% 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 4,725 1,629 0*** 254,500 1,629 0*** 254,500
2 9,686 4,916 844*** 259,000 4,916 844*** 259,000
3 14,896 8,031 4,468 263,500 8,031 4,468 263,500
4 20,365 11,016 7,962 268,000 11,016 7,962 268,000
5 26,109 13,896 11,351 272,500 13,896 11,351 272,500
6 32,139 16,688 14,652 277,000 16,688 14,652 277,000
7 38,471 19,398 17,871 281,500 19,398 17,871 281,500
8 45,120 22,041 21,023 286,000 22,041 21,023 286,000
9 52,101 24,609 24,100 290,500 24,609 24,100 290,500
10 59,431 27,086 27,086 295,000 27,086 27,086 295,000
11 67,127 29,718 29,718 299,500 28,622 28,622 299,500
12 75,208 32,159 32,159 304,000 29,885 29,885 304,000
13 83,694 34,376 34,376 308,500 30,859 30,859 308,500
14 92,604 36,367 36,367 313,000 31,507 31,507 313,000
15 101,959 38,128 38,128 317,500 31,792 31,792 317,500
16 111,782 39,511 39,511 322,000 31,663 31,663 322,000
17 122,096 40,647 40,647 326,500 31,071 31,071 326,500
18 132,926 41,525 41,525 331,000 29,940 29,940 331,000
19 144,297 42,123 42,123 335,500 28,184 28,184 335,500
20 156,237 42,423 42,423 340,000 25,714 25,714 340,000
25 225,511 37,048 37,048 362,500 -- -- 0
30 313,924 14,078 14,078 385,000 -- -- 0
<FN>
* 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.
*** IF YOU SURRENDER YOUR POLICY DURING THE FIRST TWO POLICY YEARS, YOU WILL
RECEIVE A REFUND IN ADDITION TO THE CASH VALUES SHOWN. THE REFUND PLUS THE
CASH VALUE WOULD BE $2,361 IN YEAR ONE AND $5,595 IN YEAR TWO.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 50% IN YEAR 1, 11% IN YEARS 2
THROUGH 10 AND 3% THEREAFTER. THE SURRENDER CHARGE EFFECTIVE IN ANY YEAR CAN BE
DETERMINED BY SUBTRACTING THE CASH SURRENDER VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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
ACCOUNT 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.
48
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF PREMIUM
GUARANTEE PERIOD: 10 YEARS
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,500 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.30% 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 4,725 1,746 0*** 254,500 1,746 0*** 254,500
2 9,686 5,353 1,281*** 259,000 5,353 1,281*** 259,000
3 14,896 8,995 5,432 263,500 8,995 5,432 263,500
4 20,365 12,717 9,663 268,000 12,717 9,663 268,000
5 26,109 16,548 14,003 272,500 16,548 14,003 272,500
6 32,139 20,509 18,473 277,000 20,509 18,473 277,000
7 38,471 24,612 23,085 281,500 24,612 23,085 281,500
8 45,120 28,880 27,862 286,000 28,880 27,862 286,000
9 52,101 33,312 32,803 290,500 33,312 32,803 290,500
10 59,431 37,901 37,901 295,000 37,901 37,901 295,000
11 67,127 42,921 42,921 299,500 41,837 41,837 299,500
12 75,208 48,033 48,033 304,000 45,731 45,731 304,000
13 83,694 53,210 53,210 308,500 49,564 49,564 308,500
14 92,604 58,458 58,458 313,000 53,305 53,305 313,000
15 101,959 63,777 63,777 317,500 56,916 56,916 317,500
16 111,782 69,039 69,039 322,000 60,350 60,350 322,000
17 122,096 74,366 74,366 326,500 63,557 63,557 326,500
18 132,926 79,757 79,757 331,000 66,463 66,463 331,000
19 144,297 85,202 85,202 335,500 68,986 68,986 335,500
20 156,237 90,693 90,693 340,000 71,036 71,036 340,000
25 225,511 117,175 117,175 362,500 70,404 70,404 362,500
30 313,924 138,179 138,179 385,000 31,287 31,287 385,000
<FN>
* 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.
*** IF YOU SURRENDER YOUR POLICY DURING THE FIRST TWO POLICY YEARS, YOU WILL
RECEIVE A REFUND IN ADDITION TO THE CASH VALUES SHOWN. THE REFUND PLUS THE
CASH VALUE WOULD BE $2,478 IN YEAR ONE AND $6,032 IN YEAR TWO.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 50% IN YEAR 1, 11% IN YEARS 2
THROUGH 10 AND 3% THEREAFTER. THE SURRENDER CHARGE EFFECTIVE IN ANY YEAR CAN BE
DETERMINED BY SUBTRACTING THE CASH SURRENDER VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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
ACCOUNT 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.
49
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF PREMIUM
GUARANTEE PERIOD: 10 YEARS
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,500 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.30% 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 4,725 1,863 0*** 254,500 1,863 0*** 254,500
2 9,686 5,805 1,733*** 259,000 5,805 1,733*** 259,000
3 14,896 10,029 6,466 263,500 10,029 6,466 263,500
4 20,365 14,611 11,557 268,000 14,611 11,557 268,000
5 26,109 19,618 17,073 272,500 19,618 17,073 272,500
6 32,139 25,111 23,075 277,000 25,111 23,075 277,000
7 38,471 31,152 29,625 281,500 31,152 29,625 281,500
8 45,120 37,815 36,797 286,000 37,815 36,797 286,000
9 52,101 45,162 44,653 290,500 45,162 44,653 290,500
10 59,431 53,252 53,252 295,000 53,252 53,252 295,000
11 67,127 62,461 62,461 299,500 61,416 61,416 299,500
12 75,208 72,536 72,536 304,000 70,272 70,272 304,000
13 83,694 83,549 83,549 308,500 79,898 79,898 308,500
14 92,604 95,617 95,617 313,000 90,367 90,367 313,000
15 101,959 108,867 108,867 317,500 101,766 101,766 317,500
16 111,782 123,335 123,335 322,000 114,191 114,191 322,000
17 122,096 139,283 139,283 326,500 127,759 127,759 326,500
18 132,926 156,899 156,899 331,000 142,593 142,593 331,000
19 144,297 176,385 176,385 335,500 158,844 158,844 335,500
20 156,237 197,974 197,974 348,109 176,698 176,698 340,000
25 225,511 340,685 340,685 531,980 294,635 294,635 460,073
30 313,924 561,701 561,701 791,523 466,175 466,175 656,912
<FN>
* 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.
*** IF YOU SURRENDER YOUR POLICY DURING THE FIRST TWO POLICY YEARS, YOU WILL
RECEIVE A REFUND IN ADDITION TO THE CASH VALUES SHOWN. THE REFUND PLUS THE
CASH VALUE WOULD BE $2,596 IN YEAR ONE AND $6,484 IN YEAR TWO.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 50% IN YEAR 1, 11% IN YEARS 2
THROUGH 10 AND 3% THEREAFTER. THE SURRENDER CHARGE EFFECTIVE IN ANY YEAR CAN BE
DETERMINED BY SUBTRACTING THE CASH SURRENDER VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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 ACCOUNT 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.
50
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
GUARANTEE PERIOD: 1 YEAR
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,000 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.70% 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 3,169 2,769 250,000 3,169 2,769 250,000
2 8,610 6,361 6,006 250,000 5,932 5,576 250,000
3 13,241 9,381 9,070 250,000 8,589 8,278 250,000
4 18,103 12,273 12,003 250,000 11,138 10,872 250,000
5 23,208 15,067 14,844 250,000 13,574 13,351 250,000
6 28,568 17,780 17,603 250,000 15,884 15,706 250,000
7 34,196 20,422 20,289 250,000 18,062 17,929 250,000
8 40,106 23,008 22,919 250,000 20,094 20,006 250,000
9 46,312 25,529 25,485 250,000 21,969 21,924 250,000
10 52,827 27,976 27,976 250,000 23,670 23,670 250,000
11 59,669 30,273 30,273 250,000 25,185 25,185 250,000
12 66,852 32,416 32,416 250,000 26,503 26,503 250,000
13 74,395 34,379 34,379 250,000 27,617 27,617 250,000
14 82,314 36,168 36,168 250,000 28,506 28,506 250,000
15 90,630 37,782 37,782 250,000 29,148 29,148 250,000
16 99,361 39,109 39,109 250,000 29,517 29,517 250,000
17 108,530 40,264 40,264 250,000 29,583 29,583 250,000
18 118,156 41,244 41,244 250,000 29,304 29,304 250,000
19 128,264 42,039 42,039 250,000 28,631 28,631 250,000
20 138,877 42,640 42,640 250,000 27,516 27,516 250,000
25 200,454 41,273 41,273 250,000 13,475 13,475 250,000
30 279,043 29,429 29,429 250,000 -- -- 0
<FN>
* 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.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 0% IN ALL YEARS. THE SURRENDER
CHARGE EFFECTIVE IN ANY YEAR CAN BE DETERMINED BY SUBTRACTING THE CASH SURRENDER
VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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
ACCOUNT 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.
51
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
GUARANTEE PERIOD: 1 YEAR
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,000 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.30% 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 3,380 2,980 250,000 3,380 2,769 250,000
2 8,610 6,984 6,628 250,000 6,541 5,576 250,000
3 13,241 10,621 10,310 250,000 9,779 8,278 250,000
4 18,103 14,336 14,070 250,000 13,093 10,872 250,000
5 23,208 18,163 17,941 250,000 16,480 13,351 250,000
6 28,568 22,125 21,947 250,000 19,932 15,706 250,000
7 34,196 26,235 26,102 250,000 23,444 17,929 250,000
8 40,106 30,516 30,427 250,000 27,007 20,006 250,000
9 46,312 34,968 34,924 250,000 30,610 21,924 250,000
10 52,827 39,589 39,589 250,000 34,241 34,241 250,000
11 59,669 44,313 44,313 250,000 37,891 37,891 250,000
12 66,852 49,143 49,143 250,000 41,552 41,552 250,000
13 74,395 54,063 54,063 250,000 45,221 45,221 250,000
14 82,314 59,083 59,083 250,000 48,881 48,881 250,000
15 90,630 64,213 64,213 250,000 52,519 52,519 250,000
16 99,361 69,363 69,363 250,000 56,112 56,112 250,000
17 108,530 74,644 74,644 250,000 59,641 59,641 250,000
18 118,156 80,064 80,064 250,000 63,074 63,074 250,000
19 128,264 85,631 85,631 250,000 66,375 66,375 250,000
20 138,877 91,354 91,354 250,000 69,510 69,510 250,000
25 200,454 121,950 121,950 250,000 81,501 81,501 250,000
30 279,043 156,846 156,846 250,000 80,759 80,759 250,000
<FN>
* 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.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 0% IN ALL YEARS. THE SURRENDER
CHARGE EFFECTIVE IN ANY YEAR CAN BE DETERMINED BY SUBTRACTING THE CASH SURRENDER
VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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
ACCOUNT 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.
52
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
GUARANTEE PERIOD: 1 YEAR
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,000 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.30% 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 3,591 3,191 250,000 3,591 3,191 250,000
2 8,610 7,632 7,277 250,000 7,177 6,821 250,000
3 13,241 11,964 11,653 250,000 11,071 10,760 250,000
4 18,103 16,662 16,396 250,000 15,303 15,036 250,000
5 23,208 21,797 21,575 250,000 19,904 19,682 250,000
6 28,568 27,434 27,256 250,000 24,902 24,725 250,000
7 34,196 33,635 33,502 250,000 30,335 30,202 250,000
8 40,106 40,476 40,387 250,000 36,239 36,150 250,000
9 46,312 48,019 47,975 250,000 42,655 42,610 250,000
10 52,827 56,330 56,330 250,000 49,631 49,631 250,000
11 59,669 65,425 65,425 250,000 57,226 57,226 250,000
12 66,852 75,392 75,392 250,000 65,505 65,505 250,000
13 74,395 86,314 86,314 250,000 74,553 74,553 250,000
14 82,314 98,312 98,312 250,000 84,454 84,454 250,000
15 90,630 111,522 111,522 250,000 95,310 95,310 250,000
16 99,361 126,021 126,021 250,000 107,234 107,234 250,000
17 108,530 141,984 141,984 270,088 120,365 120,365 250,000
18 118,156 159,409 159,409 295,216 134,859 134,859 250,000
19 128,264 178,423 178,423 321,872 150,716 150,716 271,890
20 138,877 199,168 199,168 350,210 167,837 167,837 295,118
25 200,454 333,820 333,820 521,260 275,617 275,617 430,376
30 279,043 537,823 537,823 757,875 429,094 429,094 604,659
<FN>
* 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.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 0% IN ALL YEARS. THE SURRENDER
CHARGE EFFECTIVE IN ANY YEAR CAN BE DETERMINED BY SUBTRACTING THE CASH SURRENDER
VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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 ACCOUNT 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.
53
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF ACCOUNT VALUE
GUARANTEE PERIOD: 1 YEAR
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,500 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.70% 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 4,725 3,645 3,195 253,645 3,645 3,195 253,645
2 9,686 7,298 6,898 257,298 6,859 6,459 256,859
3 14,896 10,759 10,409 260,759 9,947 9,597 259,947
4 20,365 14,073 13,773 264,073 12,905 12,605 262,905
5 26,109 17,268 17,018 267,268 15,727 15,477 265,727
6 32,139 20,366 20,166 270,366 18,400 18,200 268,400
7 38,471 23,372 23,222 273,372 20,915 20,765 270,915
8 45,120 26,303 26,203 276,303 23,256 23,156 273,256
9 52,101 29,152 29,102 279,152 25,407 25,357 275,407
10 59,431 31,906 31,906 281,906 27,352 27,352 277,352
11 67,127 34,478 34,478 284,478 29,075 29,075 279,075
12 75,208 36,861 36,861 286,861 30,563 30,563 280,563
13 83,694 39,025 39,025 289,025 31,806 31,806 281,806
14 92,604 40,972 40,972 290,972 32,783 32,783 282,783
15 101,959 42,701 42,701 292,701 33,471 33,471 283,471
16 111,782 44,078 44,078 294,078 33,838 33,838 283,838
17 122,096 45,240 45,240 295,240 33,857 33,857 283,857
18 132,926 46,181 46,181 296,181 33,483 33,483 283,483
19 144,297 46,890 46,890 296,890 32,668 32,668 282,668
20 156,237 47,358 47,358 297,358 31,369 31,369 281,369
25 225,511 44,420 44,420 294,420 16,281 16,281 266,281
30 313,924 29,833 29,833 279,833 -- -- 0
<FN>
* 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.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 0% IN ALL YEARS. THE SURRENDER
CHARGE EFFECTIVE IN ANY YEAR CAN BE DETERMINED BY SUBTRACTING THE CASH SURRENDER
VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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
ACCOUNT 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.
54
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF ACCOUNT VALUE
GUARANTEE PERIOD: 1 YEAR
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,500 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.30% 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 4,725 3,885 3,435 253,885 3,885 3,435 253,885
2 9,686 8,007 7,607 258,007 7,553 7,153 257,553
3 14,896 12,171 11,821 262,171 11,305 10,955 261,305
4 20,365 16,420 16,120 266,420 15,136 14,836 265,136
5 26,109 20,787 20,537 270,787 19,043 18,793 269,043
6 32,139 25,295 25,095 275,295 23,012 22,812 273,012
7 38,471 29,956 29,806 279,956 27,034 26,884 277,034
8 45,120 34,793 34,693 284,793 31,093 30,993 281,093
9 52,101 39,804 39,754 289,804 35,172 35,122 285,172
10 59,431 44,981 44,981 294,981 39,251 39,251 289,251
11 67,127 50,241 50,241 300,241 43,311 43,311 293,311
12 75,208 55,578 55,578 305,578 47,332 47,332 297,332
13 83,694 60,959 60,959 310,959 51,302 51,302 301,302
14 92,604 66,388 66,388 316,388 55,189 55,189 305,189
15 101,959 71,859 71,859 321,859 58,963 58,963 308,963
16 111,782 77,234 77,234 327,234 62,581 62,581 312,581
17 122,096 82,643 82,643 332,643 66,004 66,004 316,004
18 132,926 88,079 88,079 338,079 69,171 69,171 319,171
19 144,297 93,527 93,527 343,527 72,014 72,014 322,014
20 156,237 98,976 98,976 348,976 74,469 74,469 324,469
25 225,511 124,243 124,243 374,243 78,534 78,534 328,534
30 313,924 141,839 141,839 391,839 58,468 58,468 308,468
<FN>
* 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.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 0% IN ALL YEARS. THE SURRENDER
CHARGE EFFECTIVE IN ANY YEAR CAN BE DETERMINED BY SUBTRACTING THE CASH SURRENDER
VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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
ACCOUNT 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.
55
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF ACCOUNT VALUE
GUARANTEE PERIOD: 1 YEAR
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,500 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.30% 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 4,725 4,125 3,675 254,125 4,125 3,675 254,125
2 9,686 8,745 8,345 258,745 8,278 7,878 258,278
3 14,896 13,699 13,349 263,699 12,779 12,429 262,779
4 20,365 19,065 18,765 269,065 17,658 17,358 267,658
5 26,109 24,913 24,663 274,913 22,944 22,694 272,944
6 32,139 31,314 31,114 281,314 28,665 28,465 278,665
7 38,471 38,330 38,180 288,330 34,851 34,701 284,851
8 45,120 46,040 45,940 296,040 41,532 41,432 291,532
9 52,101 54,506 54,456 304,506 48,740 48,690 298,740
10 59,431 63,791 63,791 313,791 56,507 56,507 306,507
11 67,127 73,886 73,886 323,886 64,872 64,872 314,872
12 75,208 84,863 84,863 334,863 73,876 73,876 323,876
13 83,694 96,778 96,778 346,778 83,574 83,574 333,574
14 92,604 109,728 109,728 359,728 94,007 94,007 344,007
15 101,959 123,811 123,811 373,811 105,225 105,225 355,225
16 111,782 139,001 139,001 389,001 117,269 117,269 367,269
17 122,096 155,550 155,550 405,550 130,189 130,189 380,189
18 132,926 173,588 173,588 423,588 144,022 144,022 394,022
19 144,297 193,253 193,253 443,253 158,805 158,805 408,805
20 156,237 214,700 214,700 464,700 174,583 174,583 424,583
25 225,511 353,605 353,605 603,605 270,448 270,448 520,448
30 313,924 564,675 564,675 814,675 398,231 398,231 648,231
<FN>
* 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.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 0% IN ALL YEARS. THE SURRENDER
CHARGE EFFECTIVE IN ANY YEAR CAN BE DETERMINED BY SUBTRACTING THE CASH SURRENDER
VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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 ACCOUNT 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.
56
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF PREMIUM
GUARANTEE PERIOD: 1 YEAR
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,300 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.70% 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 4,515 3,452 3,022 254,300 3,452 3,022 254,300
2 9,256 6,912 6,530 258,600 6,470 6,088 258,600
3 14,234 10,181 9,846 262,900 9,360 9,025 262,900
4 19,460 13,301 13,014 267,200 12,116 11,830 267,200
5 24,948 16,301 16,062 271,500 14,730 14,492 271,500
6 30,711 19,200 19,009 275,800 17,187 16,996 275,800
7 36,761 22,005 21,861 280,100 19,475 19,332 280,100
8 43,114 24,732 24,636 284,400 21,574 21,479 284,400
9 49,785 27,372 27,325 288,700 23,466 23,418 288,700
10 56,789 29,911 29,911 293,000 25,127 25,127 293,000
11 64,144 32,258 32,258 297,300 26,536 26,536 297,300
12 71,866 34,399 34,399 301,600 27,671 27,671 301,600
13 79,974 36,299 36,299 305,900 28,515 28,515 305,900
14 88,488 37,957 37,957 310,200 29,035 29,035 310,200
15 97,427 39,366 39,366 314,500 29,193 29,193 314,500
16 106,814 40,370 40,370 318,800 28,941 28,941 318,800
17 116,669 41,111 41,111 323,100 28,231 28,231 323,100
18 127,018 41,576 41,576 327,400 26,987 26,987 327,400
19 137,884 41,742 41,742 331,700 25,128 25,128 331,700
20 149,293 41,590 41,590 336,000 22,567 22,567 336,000
25 215,488 33,464 33,464 357,500 -- -- 0
30 299,971 6,350 6,350 379,000 -- -- 0
<FN>
* 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.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 0% IN ALL YEARS. THE SURRENDER
CHARGE EFFECTIVE IN ANY YEAR CAN BE DETERMINED BY SUBTRACTING THE CASH SURRENDER
VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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
ACCOUNT 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.
57
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF PREMIUM
GUARANTEE PERIOD: 1 YEAR
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,300 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.30% 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 4,515 3,680 3,250 254,300 3,680 3,250 254,300
2 9,256 7,587 7,205 258,600 7,131 6,749 258,600
3 14,234 11,524 11,190 262,900 10,652 10,317 262,900
4 19,460 15,536 15,249 267,200 14,239 13,952 267,200
5 24,948 19,654 19,415 271,500 17,885 17,647 271,500
6 30,711 23,901 23,710 275,800 21,579 21,388 275,800
7 36,761 28,290 28,147 280,100 25,308 25,165 280,100
8 43,114 32,843 32,747 284,400 29,055 28,960 284,400
9 49,785 37,558 37,511 288,700 32,802 32,755 288,700
10 56,789 42,429 42,429 293,000 36,526 36,526 293,000
11 64,144 47,372 47,372 297,300 40,205 40,205 297,300
12 71,866 52,381 52,381 301,600 43,818 43,818 301,600
13 79,974 57,425 57,425 305,900 47,346 47,346 305,900
14 88,488 62,508 62,508 310,200 50,755 50,755 310,200
15 97,427 67,626 67,626 314,500 54,009 54,009 314,500
16 106,814 72,642 72,642 318,800 57,056 57,056 318,800
17 116,669 77,687 77,687 323,100 59,846 59,846 323,100
18 127,018 82,755 82,755 327,400 62,304 62,304 327,400
19 137,884 87,832 87,832 331,700 64,345 64,345 331,700
20 149,293 92,909 92,909 336,000 65,878 65,878 336,000
25 215,488 116,368 116,368 357,500 62,038 62,038 357,500
30 299,971 131,965 131,965 379,000 18,269 18,269 379,000
<FN>
* 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.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 0% IN ALL YEARS. THE SURRENDER
CHARGE EFFECTIVE IN ANY YEAR CAN BE DETERMINED BY SUBTRACTING THE CASH SURRENDER
VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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
ACCOUNT 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.
58
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: RETURN OF PREMIUM
GUARANTEE PERIOD: 1 YEAR
$250,000 FACE AMOUNT
ISSUE AGE 45 MALE PREFERRED
$4,300 SCHEDULED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.30% 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 4,515 3,909 3,479 254,300 3,909 3,479 254,300
2 9,256 8,289 7,907 258,600 7,820 7,438 258,600
3 14,234 12,979 12,645 262,900 12,054 11,720 262,900
4 19,460 18,056 17,769 267,200 16,639 16,352 267,200
5 24,948 23,589 23,350 271,500 21,603 21,364 271,500
6 30,711 29,648 29,456 275,800 26,972 26,781 275,800
7 36,761 36,294 36,151 280,100 32,778 32,635 280,100
8 43,114 43,608 43,512 284,400 39,052 38,957 284,400
9 49,785 51,652 51,605 288,700 45,829 45,781 288,700
10 56,789 60,492 60,492 293,000 53,146 53,146 293,000
11 64,144 70,129 70,129 297,300 61,049 61,049 297,300
12 71,866 80,646 80,646 301,600 69,593 69,593 301,600
13 79,974 92,114 92,114 305,900 78,844 78,844 305,900
14 88,488 104,650 104,650 310,200 88,869 88,869 310,200
15 97,427 118,379 118,379 314,500 99,741 99,741 314,500
16 106,814 133,337 133,337 318,800 111,544 111,544 318,800
17 116,669 149,793 149,793 323,100 124,378 124,378 323,100
18 127,018 167,931 167,931 327,400 138,349 138,349 327,400
19 137,884 187,951 187,951 331,700 153,585 153,585 331,700
20 149,293 209,902 209,902 336,000 170,246 170,246 336,000
25 215,488 352,387 352,387 357,500 279,784 279,784 357,500
30 299,971 568,266 568,266 379,000 437,080 437,080 379,000
<FN>
* 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.
THESE VALUES REFLECT FRONT-END SALES LOADS OF 0% IN ALL YEARS. THE SURRENDER
CHARGE EFFECTIVE IN ANY YEAR CAN BE DETERMINED BY SUBTRACTING THE CASH SURRENDER
VALUE FROM THE ACCOUNT VALUE.
</TABLE>
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 RATE OF INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGED 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 ACCOUNT 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.
59
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Hartford Life Insurance Company
Separate Account VLI and to the
Owners of Units of Interest therein:
We have audited the accompanying statement of assets and liabilities of
Hartford Life Insurance Company Separate Account VLI as of December 31, 1994,
and the related statement of operations for the year then ended and statement of
changes in net assets for the year then ended and for the period from inception,
June 1, 1993, to December 31, 1993. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Hartford Life Insurance
Company Separate Account VLI as of December 31, 1994, the results of its
operations for the year then ended and the changes in its net assets for the
year then ended and for the period from inception, June 1, 1993, to December 31,
1993, in conformity with generally accepted accounting principles.
Hartford, Connecticut
February 10, 1995 Arthur Andersen LLP
60
<PAGE>
THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY
<PAGE>
SEPARATE ACCOUNT-VLI
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1994
<TABLE>
<CAPTION>
BOND FUND STOCK FUND
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
<S> <C> <C>
ASSETS:
Investments
Hartford Bond Fund, Inc.
Shares 341,835
Cost $ 323,619
Market Value................... $ 316,546 --
Hartford Stock Fund, Inc.
Shares 627,805
Cost $1,810,285
Market Value................... -- $ 1,758,770
HVA Money Market Fund, Inc.
Shares 7,216,711
Cost $7,216,711
Market Value................... -- --
Hartford Advisers Fund, Inc.
Shares 1,480,553
Cost $2,463,174
Market Value................... -- --
Hartford Aggressive Growth Fund,
Inc.
Shares 924,159
Cost $2,660,923
Market Value................... -- --
Hartford Mortgage Securities
Fund, Inc.
Shares 502,504
Cost $ 512,236
Market Value................... -- --
Hartford Index Fund, Inc.
Shares 132,572
Cost $ 201,460
Market Value................... -- --
Hartford International
Opportunities Fund, Inc.
Shares 1,695,428
Cost $2,025,065
Market Value................... -- --
Due from Hartford Life Insurance
Company......................... 264 27,285
----------- -----------
Total Assets..................... 316,810 1,786,055
----------- -----------
LIABILITIES:
Payable for fund shares
purchased....................... 264 27,286
----------- -----------
Total Liabilities................ 264 27,286
----------- -----------
Net Assets (variable life
insurance contract
liabilities).................... $ 316,546 $ 1,758,769
----------- -----------
----------- -----------
Units Outstanding.................. 314,861 1,639,035
Accumulation Unit Value at end of
period........................... $1.005351 $ 1.073051
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
62
<PAGE>
<TABLE>
<CAPTION>
MORTGAGE
MONEY AGGRESSIVE SECURITIES INTERNATIONAL
MARKET FUND ADVISERS FUND GROWTH FUND FUND INDEX FUND OPPORTUNITIES FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------- ----------- -------------- ----------- ------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments
Hartford Bond Fund, Inc.
Shares 341,835
Cost $ 323,619
Market Value................... -- -- -- -- -- --
Hartford Stock Fund, Inc.
Shares 627,805
Cost $1,810,285
Market Value................... -- -- -- -- -- --
HVA Money Market Fund, Inc.
Shares 7,216,711
Cost $7,216,711
Market Value................... $ 7,216,711 -- -- -- -- --
Hartford Advisers Fund, Inc.
Shares 1,480,553
Cost $2,463,174
Market Value................... -- $2,369,594 -- -- -- --
Hartford Aggressive Growth Fund,
Inc.
Shares 924,159
Cost $2,660,923
Market Value................... -- -- $2,642,983 -- --
Hartford Mortgage Securities
Fund, Inc.
Shares 502,504
Cost $ 512,236
Market Value................... -- -- -- $ 494,655 -- --
Hartford Index Fund, Inc.
Shares 132,572
Cost $ 201,460
Market Value................... -- -- -- -- $ 201,799 --
Hartford International
Opportunities Fund, Inc.
Shares 1,695,428
Cost $2,025,065
Market Value................... -- -- -- -- -- $1,993,332
Due from Hartford Life Insurance
Company......................... 550,703 11,662 38,182 -- 4,087 20,396
----------- ------------- ----------- -------------- ----------- ------------------
Total Assets..................... 7,767,414 2,381,256 2,681,165 494,655 205,886 2,013,728
----------- ------------- ----------- -------------- ----------- ------------------
LIABILITIES:
Payable for fund shares
purchased....................... 550,597 11,662 38,163 -- 4,087 20,388
----------- ------------- ----------- -------------- ----------- ------------------
Total Liabilities................ 550,597 11,662 38,163 -- 4,087 20,388
----------- ------------- ----------- -------------- ----------- ------------------
Net Assets (variable life
insurance contract
liabilities).................... $ 7,216,817 $2,369,594 $2,643,002 $ 494,655 $ 201,799 $1,993,340
----------- ------------- ----------- -------------- ----------- ------------------
----------- ------------- ----------- -------------- ----------- ------------------
Units Outstanding.................. 6,826,105 2,267,197 2,379,906 487,778 191,986 1,713,803
Accumulation Unit Value at end of
period........................... $ 1.057238 $ 1.045165 $ 1.110549 $1.014098 $1.051111 $ 1.163109
</TABLE>
63
<PAGE>
SEPARATE ACCOUNT-VLI
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
BOND FUND STOCK FUND
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
<S> <C> <C>
INVESTMENT INCOME:
Dividends........................ $ 6,922 $ 20,615
----------- -----------
Net investment income (loss)... 6,922 20,615
----------- -----------
Capital gains income............. 311 27,224
----------- -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on
security transactions........... (195) (175)
Net unrealized appreciation
(depreciation) of investments
during the period............... (7,019) (60,514)
----------- -----------
Net gains (losses) on
investments..................... (7,214) (60,689)
----------- -----------
Net increase (decrease) in net
assets resulting from
operations.................... $ 19 $(12,850)
----------- -----------
----------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
64
<PAGE>
<TABLE>
<CAPTION>
MONEY AGGRESSIVE MORTGAGE INTERNATIONAL
MARKET FUND ADVISERS FUND GROWTH FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- -------------- ----------- --------------- ----------- -------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends........................ $99,860 $ 51,536 $ 6,904 $ 20,821 $2,556 $ 17,054
----------- -------------- ----------- --------------- ----------- --------
Net investment income (loss)... 99,860 51,536 6,904 20,821 2,556 17,054
----------- -------------- ----------- --------------- ----------- --------
Capital gains income............. -- 17,202 73,831 23 -- --
----------- -------------- ----------- --------------- ----------- --------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on
security transactions........... -- 1,897 240 (255) 2 (309)
Net unrealized appreciation
(depreciation) of investments
during the period............... -- (96,460) (37,253) (17,533) (324) (49,550)
----------- -------------- ----------- --------------- ----------- --------
Net gains (losses) on
investments..................... -- (94,563) (37,013) (17,788) (322) (49,859)
----------- -------------- ----------- --------------- ----------- --------
Net increase (decrease) in net
assets resulting from
operations.................... $99,860 $(25,825) $ 43,722 $ 3,056 $2,234 $(32,805)
----------- -------------- ----------- --------------- ----------- --------
----------- -------------- ----------- --------------- ----------- --------
</TABLE>
65
<PAGE>
SEPARATE ACCOUNT-VLI
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
BOND FUND STOCK FUND
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 6,922 $ 20,615
Capital gains income............. 311 27,224
Net realized gain (loss) on
security transactions........... (195) (175)
Net unrealized appreciation
(depreciation) of investments
during the period............... (7,019) (60,514)
----------- -----------
Net increase (decrease) in net
assets resulting from
operations...................... 19 (12,850)
----------- -----------
UNIT TRANSACTIONS:
Purchases........................ 37,028 290,304
Net transfers.................... 272,187 1,294,999
Surrenders....................... (4,429) (35,895)
Loan withdrawals................. (14) (4,367)
Cost of insurance................ (5,283) (61,111)
----------- -----------
Net increase (decrease) in net
assets resulting from unit
transactions.................... 299,489 1,483,930
----------- -----------
Total increase (decrease) in net
assets.......................... 299,508 1,471,080
NET ASSETS:
Beginning of period.............. 17,038 287,689
----------- -----------
End of period.................... $316,546 $ 1,758,769
----------- -----------
----------- -----------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FROM INCEPTION (JUNE 1, 1993) TO DECEMBER 31, 1993
<CAPTION>
BOND FUND STOCK FUND
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 111 $ 1,527
Capital gains income............. -- --
Net realized gain (loss) on
security transactions........... (4) (45)
Net unrealized appreciation
(depreciation) of investments
during the period............... (54) 8,999
----------- -----------
Net increase (decrease) in net
assets resulting from
operations...................... 53 10,481
----------- -----------
UNIT TRANSACTIONS:
Purchases........................ 106 133,492
Net transfers.................... 17,142 149,434
Surrenders....................... (105) (1,382)
Loan withdrawals................. -- --
Cost of insurance................ (158) (4,336)
----------- -----------
Net increase (decrease) in net
assets resulting from unit
transactions.................... 16,985 277,208
----------- -----------
Total increase (decrease) in net
assets.......................... 17,038 287,689
NET ASSETS:
Beginning of period.............. -- --
----------- -----------
End of period.................... $ 17,038 $ 287,689
----------- -----------
----------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
66
<PAGE>
<TABLE>
<CAPTION>
MONEY AGGRESSIVE MORTGAGE INTERNATIONAL
MARKET FUND ADVISERS FUND GROWTH FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- -------------- ----------- --------------- ----------- ------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 99,860 $ 51,536 $ 6,904 $ 20,821 $ 2,556 $ 17,054
Capital gains income............. -- 17,202 73,831 23 -- --
Net realized gain (loss) on
security transactions........... -- 1,897 240 (255) 2 (309)
Net unrealized appreciation
(depreciation) of investments
during the period............... -- (96,460) (37,253) (17,533) (324) (49,550)
----------- -------------- ----------- --------------- ----------- ------------------
Net increase (decrease) in net
assets resulting from
operations...................... 99,860 (25,825) 43,722 3,056 2,234 (32,805)
----------- -------------- ----------- --------------- ----------- ------------------
UNIT TRANSACTIONS:
Purchases........................ 20,258,603 434,023 701,847 6,854 68,645 487,568
Net transfers.................... (13,565,371) 1,557,649 1,548,441 487,586 116,406 1,394,539
Surrenders....................... (142,419) (40,579) (85,763) (3,931) (6,167) (56,052)
Loan withdrawals................. (435,997) (26,091) (2,817) -- -- (5,771)
Cost of insurance................ (265,027) (51,186) (109,663) (3,376) (8,623) (65,611)
----------- -------------- ----------- --------------- ----------- ------------------
Net increase (decrease) in net
assets resulting from unit
transactions.................... 5,849,789 1,873,816 2,052,045 487,133 170,261 1,754,673
----------- -------------- ----------- --------------- ----------- ------------------
Total increase (decrease) in net
assets.......................... 5,949,649 1,847,991 2,095,767 490,189 172,495 1,721,868
NET ASSETS:
Beginning of period.............. 1,267,168 521,603 547,235 4,466 29,304 271,472
----------- -------------- ----------- --------------- ----------- ------------------
End of period.................... $ 7,216,817 $2,369,594 $2,643,002 $494,655 $201,799 $1,993,340
----------- -------------- ----------- --------------- ----------- ------------------
----------- -------------- ----------- --------------- ----------- ------------------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FROM INCEPTION (JUNE 1, 1993) TO DECEMBER 31, 1993
<CAPTION>
MONEY AGGRESSIVE MORTGAGE INTERNATIONAL
MARKET FUND ADVISERS FUND GROWTH FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- -------------- ----------- --------------- ----------- ------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 7,177 $ 2,996 $ 197 $ 83 $ 233 $ 306
Capital gains income............. -- -- -- -- -- --
Net realized gain (loss) on
security transactions........... -- 61 (68) (10) 157 (155)
Net unrealized appreciation
(depreciation) of investments
during the period............... -- 2,880 19,312 (48) 663 17,816
----------- -------------- ----------- --------------- ----------- ------------------
Net increase (decrease) in net
assets resulting from
operations...................... 7,177 5,937 19,441 25 1,053 17,967
----------- -------------- ----------- --------------- ----------- ------------------
UNIT TRANSACTIONS:
Purchases........................ 4,308,207 6,264 143,578 -- 1,437 23,309
Net transfers.................... (2,954,425) 541,175 405,980 4,714 28,179 240,704
Surrenders....................... (30,447) 412 (3,352) (118) (717) (1,452)
Loan withdrawals................. (5,000) (30,000) (9,656) -- -- (6,308)
Cost of insurance................ (58,344) (2,185) (8,756) (155) (648) (2,748)
----------- -------------- ----------- --------------- ----------- ------------------
Net increase (decrease) in net
assets resulting from unit
transactions.................... 1,259,991 515,666 527,794 4,441 28,251 253,505
----------- -------------- ----------- --------------- ----------- ------------------
Total increase (decrease) in net
assets.......................... 1,267,168 521,603 547,235 4,466 29,304 271,472
NET ASSETS:
Beginning of period.............. -- -- -- -- -- --
----------- -------------- ----------- --------------- ----------- ------------------
End of period.................... $ 1,267,168 $ 521,603 $ 547,235 $ 4,466 $ 29,304 $ 271,472
----------- -------------- ----------- --------------- ----------- ------------------
----------- -------------- ----------- --------------- ----------- ------------------
</TABLE>
67
<PAGE>
SEPARATE ACCOUNT-VLI
HARTFORD LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
1. ORGANIZATION:
Separate Account VLI (the Account) is a separate investment account within
Hartford Life Insurance Company (the Company) and is registered with the
Securities and Exchange Commission (SEC) as a unit investment trust under the
Investment Company Act of 1940, as amended. The Account consists of sixteen
subaccounts. These financial statements include eight subaccounts which invest
solely in the Hartford Mutual Funds (the Funds). The other eight subaccounts,
which invest in the Putnam Capital Manager Trust funds, are presented in
separate financial statements. Both the Company and the Account are subject to
supervision and regulation by the Department of Insurance of the State of
Connecticut and the SEC.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting principles
in the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Cost of investments
sold is determined on the basis of identified cost. Dividend and capital
gains income are accrued as of the ex-dividend date.
b) SECURITY VALUATION--The investment in shares of the Hartford mutual
funds are valued at the closing net asset value per share as determined
by the appropriate Fund as of December 31, 1994.
c) FEDERAL INCOME TAXES--The operations of the Account form a part of, and
are taxed with, the total operations of the Company, which is taxed as an
insurance company under the Internal Revenue Code. Under current law, no
federal income taxes are payable with respect to the operations of the
Account.
3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES:
In accordance with the terms of the contracts, the Company makes deductions
for mortality and expense undertakings, cost of insurance, administrative fees,
and state premium taxes. These charges are deducted through termination of units
of interest from applicable contract owners' accounts.
68
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Hartford Life Insurance Company Separate Account VLI and to the Owners of
Units of Interest therein:
We have audited the accompanying statement of assets and liabilities of
Hartford Life Insurance Separate Account VLI as of December 31, 1994 and the
related statement of operations for the year then ended and the statement of
changes in net assets for the year then ended and for the period from inception,
June 1, 1993, to December 31, 1993. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Hartford Life Insurance
Company Separate Account VLI as of December 31, 1994 and the results of its
operations for the year then ended and the changes in its net assets for the
year then ended and for the period from inception, June 1, 1993, to December 31,
1993, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
February 15, 1995
69
<PAGE>
SEPARATE ACCOUNT-VLI
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1994
<TABLE>
<CAPTION>
VOYAGER GLOBAL
FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
<S> <C> <C>
ASSETS:
Investments
PCM Voyager Fund
Shares 159,247
Cost $3,465,663
Market Value................... $3,535,279 --
PCM Global Growth Fund
Shares 152,490
Cost $2,040,828
Market Value................... -- 2,055,561
PCM Growth and Income Fund
Shares 153,603
Cost $2,612,882
Market Value................... -- --
PCM Global Asset Allocation Fund
Shares 66,910
Cost $ 905,527
Market Value................... -- --
PCM High Yield Fund
Shares 33,123
Cost $ 392,745
Market Value................... -- --
PCM U.S. Government and High
Quality Bond Fund
Shares 2,524
Cost $ 278,974
Market Value................... -- --
PCM Money Market Fund
Shares 252,270
Cost $ 252,270
Market Value................... -- --
PCM Utilities Growth & Income
Fund
Shares 74,626
Cost $ 863,930
Market Value................... -- --
Due from Hartford Life Insurance
Company......................... $ 16,236 1,367
----------- -----------
Total Assets..................... $3,551,515 $2,056,928
----------- -----------
LIABILITIES:
Payable for fund shares
purchased....................... 16,222 1,361
----------- -----------
Total Liabilities................ 16,222 1,361
----------- -----------
Net Assets (variable life
contract liabilities)........... $3,535,293 $2,055,367
----------- -----------
----------- -----------
Units Outstanding.................. 306,549 175,299
Accumulation Unit Value at end of
period........................... $11.532543 $11.726068
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
70
<PAGE>
<TABLE>
<CAPTION>
U.S.
GOVERNMENT
GLOBAL ASSET AND HIGH UTILITIES GROWTH
GROWTH AND ALLOCATION HIGH YIELD QUALITY MONEY AND INCOME
INCOME FUND FUND BOND FUND MARKET FUND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------- ----------- -------------- ----------- ------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments
PCM Voyager Fund
Shares 159,247
Cost $3,465,663
Market Value................... -- -- -- -- -- --
PCM Global Growth Fund
Shares 152,490
Cost $2,040,828
Market Value................... -- -- -- -- -- --
PCM Growth and Income Fund
Shares 153,603
Cost $2,612,882
Market Value................... $ 2,558,105 -- -- -- -- --
PCM Global Asset Allocation Fund
Shares 66,910
Cost $ 905,527
Market Value................... -- $ 882,842 -- -- -- --
PCM High Yield Fund
Shares 33,123
Cost $ 392,745
Market Value................... -- -- $ 379,594 -- -- --
PCM U.S. Government and High
Quality Bond Fund
Shares 2,524
Cost $ 278,974
Market Value................... -- -- -- $ 264,250 -- --
PCM Money Market Fund
Shares 252,270
Cost $ 252,270
Market Value................... -- -- -- -- $ 252,270 --
PCM Utilities Growth & Income
Fund
Shares 74,626
Cost $ 863,930
Market Value................... -- -- -- -- -- $ 797,003
Due from Hartford Life Insurance
Company......................... 1,086 183 220 -- 2,929 --
----------- ------------- ----------- -------------- ----------- ------------------
Total Assets..................... $ 2,559,191 $ 882,725 $ 379,814 $ 264,250 $ 255,199 $ 797,003
----------- ------------- ----------- -------------- ----------- ------------------
LIABILITIES:
Payable for fund shares
purchased....................... 1,084 183 220 -- 2,928 --
----------- ------------- ----------- -------------- ----------- ------------------
Total Liabilities................ 1,084 183 220 -- 2,928 --
----------- ------------- ----------- -------------- ----------- ------------------
Net Assets (variable life
contract liabilities)........... $ 2,055,367 $ 882,547 $ 379,571 $ 264,250 $ 35,227 $ 797,003
----------- ------------- ----------- -------------- ----------- ------------------
----------- ------------- ----------- -------------- ----------- ------------------
Units Outstanding.................. 239,375 83,168 2,558,107 26,066 239,065 81,670
Accumulation Unit Value at end of
period........................... $ 10.686597 $10.611611 $ 10.841067 $10.137629 $1.055241 $ 9.758875
</TABLE>
71
<PAGE>
SEPARATE ACCOUNT-VLI
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
VOYAGER GLOBAL
FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
<S> <C> <C>
INVESTMENT INCOME:
Dividends........................ $28,870 $ 4,672
----------- -----------
Net investment income (loss)... 28,870 6,672
----------- -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on
security transactions........... (56) (543)
Net unrealized appreciation
(depreciation) of investments
during the period............... 32,005 (28,892)
----------- -----------
Net gains (losses) on
investments..................... 31,949 (29,430)
----------- -----------
Net increase (decrease) in net
assets resulting from
operations.................... $60,819 $(24,758)
----------- -----------
----------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
72
<PAGE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT
GLOBAL ASSET AND HIGH UTILITIES GROWTH
GROWTH AND ALLOCATION HIGH YIELD QUALITY MONEY AND INCOME
INCOME FUND FUND BOND FUND MARKET FUND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- -------------- ----------- --------------- ----------- -------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends........................ $48,961 $ 17,983 $ 15,560 $ 9,538 $6,191 $ 29,517
----------- -------------- ----------- --------------- ----------- --------
Net investment income (loss)... 28,350 17,983 5,560 9,538 6,191 29,517
----------- -------------- ----------- --------------- ----------- --------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on
security transactions........... (379) 258 145 (627) -- (1,610)
Net unrealized appreciation
(depreciation) of investments
during the period............... (58,540) (28,390) (18,016) (14,716) -- (69,987)
----------- -------------- ----------- --------------- ----------- --------
Net gains (losses) on
investments..................... (58,914) (28,132) (17,871) (15,343) -- (71,597)
----------- -------------- ----------- --------------- ----------- --------
Net increase (decrease) in net
assets resulting from
operations.................... $(9,953) $(10,149) $ (2,311) $ (5,805) $6,191 $(42,080)
----------- -------------- ----------- --------------- ----------- --------
----------- -------------- ----------- --------------- ----------- --------
</TABLE>
73
<PAGE>
SEPARATE ACCOUNT-VLI
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
VOYAGER GLOBAL
FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 28,870 $ 4,672
Net realized gain (loss) on
security transactions........... (56) (548)
Net unrealized appreciation
(depreciation) of investments
during the period............... 32,005 (28,882)
----------- -----------
Net increase (decrease) in net
assets resulting from
operations...................... 60,819 (24,758)
----------- -----------
UNIT TRANSACTIONS:
Purchases........................ 708,069 475,032
Net transfers.................... 2,230,817 1,117,170
Surrenders....................... (10,788) (63,603)
Loan withdrawals................. (50,858) (5,427)
Cost of insurance................ (123,130) (74,730)
----------- -----------
Net increase (decrease) in net
assets resulting from unit
transactions.................... 2,657,085 1,448,642
----------- -----------
Total increase (decrease) in net
assets.......................... 2,717,904 1,423,684
NET ASSETS:
Beginning of period.............. (817,389) 631,883
----------- -----------
End of period.................... 3$,535,293 $2,055,567
----------- -----------
----------- -----------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FROM INCEPTION, JUNE 1, 1993 TO DECEMBER 31, 1993
<CAPTION>
VOYAGER GLOBAL
FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income............ $ -- $ --
Net realized gain (loss) on
security transactions........... 376 (74)
Net unrealized appreciation
(depreciation) of investments
during the period............... 37,611 43,615
----------- -----------
Net increase (decrease) in net
assets resulting from
operations...................... 37,987 43,541
----------- -----------
UNIT TRANSACTIONS:
Purchases........................ 197,140 41,168
Net transfers.................... 603,823 564,121
Surrenders....................... (6,630) (4,527)
Loan withdrawals................. (8,282) (8,255)
Cost of insurance................ (6,649) (4,165)
----------- -----------
Net increase in net assets
resulting from unit
transactions.................... 779,402 588,342
Total increase in net assets..... 817,389 631,883
NET ASSETS:
Beginning of period.............. -- --
----------- -----------
End of period.................... $817,389 $ 631,883
----------- -----------
----------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
74
<PAGE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT
GLOBAL ASSET AND HIGH UTILITIES GROWTH
GROWTH AND ALLOCATION HIGH YIELD QUALITY MONEY AND INCOME
INCOME FUND FUND BOND FUND MARKET FUND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- -------------- ----------- --------------- ----------- ------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 48,961 $ 17,983 $ 15,560 $ 9,538 $ 6,191 $ 29,517
Net realized gain (loss) on
security transactions........... (374) 258 145 (627) -- (1,610)
Net unrealized appreciation
(depreciation) of investments
during the period............... 58,540) (28,390) (18,016) (14,716) -- (69,987)
----------- -------------- ----------- --------------- ----------- ----------
Net increase (decrease) in net
assets resulting from
operations...................... (9,953) (10,149) (2,311) (8,805) 6,191 (42,080)
----------- -------------- ----------- --------------- ----------- ----------
UNIT TRANSACTIONS:
Purchases........................ 334,519 166,955 107,329 47,317 51,492 37,037
Net transfers.................... 206,833 572,469 17,314 225,462 83,593 470,959
Surrenders....................... (64,779) (15,429) (10,467) (5,876) (3,294) (9,751)
Loan withdrawals................. (16,671) (2,800) (10,107) -- -- (2,067)
Cost of insurance................ (46,765) (23,486) (14,444) (8,719) (5,526) (14,063)
----------- -------------- ----------- --------------- ----------- ----------
Net increase (decrease) in net
assets resulting from unit
transactions.................... 2,270,137 697,709 254,548 258,684 126,268 482,115
----------- -------------- ----------- --------------- ----------- ----------
Total increase (decrease) in net
assets.......................... 2,260,184 687,560 252,237 252,379 132,459 440,035
NET ASSETS:
Beginning of period.............. 297,523 194,982 127,157 1,371 119,812 356,968
----------- -------------- ----------- --------------- ----------- ----------
End of period.................... $ 2,558,107 $ 882,542 $ 379,594 $264,250 $252,271 $ 797,003
----------- -------------- ----------- --------------- ----------- ----------
----------- -------------- ----------- --------------- ----------- ----------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FROM INCEPTION, JUNE 1, 1993 TO DECEMBER 31, 1993
<CAPTION>
U.S. GOVERNMENT
GLOBAL ASSET AND HIGH UTILITIES GROWTH
GROWTH AND ALLOCATION HIGH YIELD QUALITY MONEY AND INCOME
INCOME FUND FUND BOND FUND MARKET FUND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- -------------- ----------- --------------- ----------- ------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income............ $ -- $ -- $ -- $ 338 $ --
Net realized gain (loss) on
security transactions........... 20 (23) 2 2 -- (10)
Net unrealized appreciation
(depreciation) of investments
during the period............... 3,663 5,405 4,866 (8) 0 3,060
----------- -------------- ----------- --------------- ----------- ----------
Net increase (decrease) in net
assets resulting from
operations...................... 3,783 5,382 4,868 (6) 338 3,050
----------- -------------- ----------- --------------- ----------- ----------
UNIT TRANSACTIONS:
Purchases........................ 9,231 15,316 2,448 1,748 0 21,171
Net transfers.................... 288,046 178,443 122,830 9,787 119,640 336,467
Surrenders....................... (1,836) (1,145) (1,710) (105 (106) (2,822)
Loan withdrawals................. 0 (1,947) -- -- -- --
Cost of insurance................ (1,301) (1,067 (1,079) (53) (60) (878)
----------- -------------- ----------- --------------- ----------- ----------
Net increase in net assets
resulting from unit
transactions.................... 294,140 189,600 122,489 11,377 119,474 353,918
Total increase in net assets..... 297,923 194,982 127,357 11,371 119,812 356,968
NET ASSETS:
Beginning of period.............. -- -- -- -- -- 0
----------- -------------- ----------- --------------- ----------- ----------
End of period.................... $ 297,923 $ 194,982 $ 127,357 $ 11,371 $119,812 $ 356,968
----------- -------------- ----------- --------------- ----------- ----------
----------- -------------- ----------- --------------- ----------- ----------
</TABLE>
75
<PAGE>
SEPARATE ACCOUNT-VLI
HARTFORD LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
1. ORGANIZATION:
Separate Account VLI (the Account) is a separate investment account within
Hartford Life Insurance Company (the Company) and is registered with the
Securities and Exchange Commission (SEC) as a unit investment trust under the
Investment Company Act of 1940, as amended. The Account consists of sixteen
subaccounts. These financial statements include eight subaccounts which invest
solely in the Putnam Capital Manager Trust funds (the Funds). The other eight
subaccounts, which invest in the Hartford Mutual funds, are presented in
separate financial statements. Both the Company and the Account are subject to
supervision and regulation by the Department of Insurance of the State of
Connecticut and the SEC.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting principles
in the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Cost of investments
sold is determined on the basis of identified cost. Dividend and capital
gains income are accrued as of the ex-dividend date.
b) SECURITY VALUATION--The investment in shares of the Funds are valued at
the closing net asset value per share as determined by the appropriate
Fund as of December 31, 1994.
c) FEDERAL INCOME TAXES--The operations of the Account form a part of, and
are taxed with, the total operations of the Company, which is taxed as an
insurance company under the Internal Revenue Code. Under current law, no
federal income taxes are payable with respect to the operations of the
Account.
3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES:
In accordance with the terms of the contracts, the Company makes deductions
for mortality and expense undertakings, cost of insurance, administrative fees,
and state premium taxes. These charges are deducted through termination of units
of interest from applicable contract owners' accounts.
76
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Hartford Life Insurance Company and Subsidiaries:
We have audited the accompanying consolidated balance sheets of Hartford Life
Insurance Company (a Connecticut corporation and wholly-owned subsidiary of
Hartford Life and Accident Insurance Company) and subsidiaries as of December
31, 1994 and 1993, and the related consolidated statements of income,
stockholder's equity and cash flow for each of the three years in the period
ended December 31, 1994. These consolidated financial statements and the
schedules referred to below are the responsibility of the Company's management.
Our responsibility is to express an opinion on these consolidated financial
statements and schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the consolidated financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of
Hartford Life Insurance Company and subsidiaries as of December 31, 1994 and
1993, and the results of their operations and their cash flows for each of the
three years in the period ended December 31, 1994 in conformity with generally
accepted accounting principles.
As discussed in the accompanying notes to the consolidated financial statements,
the Company adopted new accounting standards promulgated by the Financial
Accounting Standards Board, changing its methods of accounting, as of January 1,
1994, for debt and equity securities, and, effective January 1, 1992, for
postretirement benefits other than pensions and postemployment benefits.
Our audits were made for the purpose of forming an opinion on the basic
consolidated financial statements taken as a whole. The schedules listed in the
Index to Consolidated Financial Statements and Schedules are presented for
purposes of complying with the Securities and Exchange Commission's rules and
are not a required part of the basic consolidated financial statements. These
schedules have been subjected to the auditing procedures applied in the audits
of the basic consolidated financial statements and, in our opinion, fairly
state in all material respects the financial data required to be set forth
therein in relation to the basic consolidated financial statements taken as a
whole.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
January 30, 1995
F-2
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN MILLIONS)
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
1994 1993 1992
<S> <C> <C> <C>
REVENUES:
Premiums and other considerations $1,100 $ 747 $ 259
Net investment income 1,292 1,051 907
Net realized gains on investments 7 16 5
------ ------ ------
2,399 1,814 1,171
BENEFITS, CLAIMS AND EXPENSES:
Benefits, claims and claim
adjustment expenses 1,405 1,046 797
Amortization of deferred policy
acquisition costs 145 113 55
Dividends to policyholders 419 227 47
Other insurance expenses 227 210 138
------ ------ ------
2,196 1,596 1,037
INCOME BEFORE INCOME TAX AND
CUMULATIVE EFFECT OF CHANGES IN
ACCOUNTING PRINCIPLES 203 218 134
Income tax expense 65 75 45
------ ------ ------
INCOME BEFORE CUMULATIVE EFFECT OF
CHANGES IN ACCOUNTING PRINCIPLES 138 143 89
Cumulative effect of changes in
accounting principles net of tax benefit of $7 - - (13)
------ ------ ------
NET INCOME $ 138 $ 143 $ 76
------ ------ ------
------ ------ ------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
F-3
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN MILLIONS)
<TABLE>
<CAPTION>
AS OF DECEMBER 31,
1994 1993
-------- --------
<S> <C> <C>
ASSETS
Investments:
Fixed maturities, available for sale, at fair
value in 1994 and at amortized cost in 1993
(amortized cost, $14,464 in 1994; fair
value, $12,845 in 1993) $13,429 $12,597
Equity securities, at fair value 68 90
Mortgage loans, at outstanding principal balance 316 228
Policy loans, at outstanding balance 2,614 1,397
Other investments 107 40
------- -------
16,534 14,352
Cash 20 1
Premiums and amounts receivable 160 327
Reinsurance recoverable 5,466 5,532
Accrued investment income 378 241
Deferred policy acquisition costs 1,809 1,334
Deferred income tax 590 114
Other assets 83 101
Separate account assets 22,809 16,284
------- -------
$47,849 $38,286
------- -------
------- -------
LIABILITIES AND STOCKHOLDER'S EQUITY
Future policy benefits $1,890 $1,659
Other policyholder funds 21,328 18,234
Other liabilities 1,000 916
Separate account liabilities 22,809 16,284
------- -------
47,027 37,093
Common stock - authorized 1,000 shares, $5,690
par value, issued and outstanding 1,000 shares 6 6
Capital surplus 826 676
Unrealized losses on securities, net of tax (654) (5)
Retained earnings 644 516
------- -------
822 1,193
------- -------
$47,849 $38,286
------- -------
------- -------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
F-4
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY
(IN MILLIONS)
<TABLE>
<CAPTION>
UNREALIZED
GAINS(LOSSES) TOTAL
COMMON CAPITAL ON RETAINED STOCKHOLDER'S
STOCK SURPLUS SECURITIES EARNINGS EQUITY
----- ------- ---------- -------- ------
<S> <C> <C> <C> <C> <C>
BALANCE, DECEMBER 31, 1991 $ 6 $ 439 $ 1 $ 297 $ 743
Net Income 76 76
Capital Contribution - 25 - - 25
Excess of assets over liabilities on
reinsurance assumed from affiliate - 34 - - 34
Change in unrealized losses on equity
securities, net of tax - - (1) - (1)
------ ------- ------- ------- -------
BALANCE, DECEMBER 31, 1992 6 498 0 373 877
------ ------- ------- ------- -------
Net Income - - - 143 143
Capital Contribution - 180 - - 180
Excess of assets over liabilities on
reinsurance assumed from affiliate - (2) - - (2)
Change in unrealized losses on equity
securities, net of tax - - (5) - (5)
------ ------- ------- ------- -------
BALANCE, DECEMBER 31, 1993 6 676 (5) 516 1,193
------ ------- ------- ------- -------
Net Income - - - 138 138
Capital Contribution - 150 - - 150
Dividends Paid - - - (10) (10)
Change in unrealized losses on securities,
net of tax * - - (649) - (649)
------ ------- ------- ------- -------
BALANCE, DECEMBER 31, 1994 $ 6 $ 826 $ (654) $ 644 $ 822
------ ------- ------- ------- -------
------ ------- ------- ------- -------
<FN>
* The 1994 change in unrealized losses on securities, net of tax, includes a
gain of $91 due to adoption of SFAS #115 as discussed in note 1b to the
consolidated financial statements.
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
F-5
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASHFLOW
(IN MILLIONS)
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
OPERATING ACTIVITIES:
NET INCOME $ 138 $ 143 $ 76
Cumulative effect of accounting changes - - 13
Adjustments to net income:
Net realized investment gains before tax (7) (16) (5)
Net policyholder investment losses
(gains) before tax 5 (15) (15)
Net deferred policy acquisition costs (441) (292) (278)
Net amortization of premium (discount) on
fixed maturities 41 2 (16)
Deferred income tax benefits (128) (121) (14)
(Increase) decrease in premiums and
amounts receivable 10 (28) (14)
Increase in accrued investment income (106) (4) (116)
Decrease(increase) in other assets 101 (36) 88
Decrease(increase) in reinsurance
recoverable 75 (121) 0
Increase in liability for future policy
benefits 224 360 527
Increase in other liabilities 191 176 92
-------- --------- --------
CASH PROVIDED BY OPERATING ACTIVITIES 103 48 338
-------- --------- --------
INVESTING ACTIVITIES:
Purchases of fixed maturity investments (9,127) (12,406) (8,948)
Proceeds from sales of fixed maturity
investments 5,708 8,813 5,728
Maturities and principal paydowns of
long-term investments 1,931 2,596 1,207
Net purchases of other investments (1,338) (206) (106)
Net sales (purchases) of short-term
investments 135 (564) 221
-------- --------- --------
CASH USED FOR INVESTING ACTIVITIES (2,691) (1,767) (1,898)
-------- --------- --------
FINANCING ACTIVITIES:
Net receipts from investment and UL-type
contracts credited to policyholder account
balances 2,467 1,513 1,512
Capital contribution 150 180 25
Excess of assets over liabilities on
reinsurance assumed from affiliate - - 34
Dividends paid (10) - -
-------- --------- --------
CASH PROVIDED BY FINANCING
ACTIVITIES 2,607 1,693 1,571
-------- --------- --------
NET INCREASE(DECREASE) IN CASH 19 (26) 11
Cash at beginning of period 1 27 16
-------- --------- --------
CASH AT END OF PERIOD $ 20 $ 1 $ 27
-------- --------- --------
-------- --------- --------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
F-6
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLAR AMOUNTS IN MILLIONS)
1. SIGNIFICANT ACCOUNTING POLICIES
(A) BASIS OF PRESENTATION:
These consolidated financial statements include Hartford Life
Insurance Company (the Company or HLIC) and its wholly-owned
subsidiaries, ITT Hartford Life and Annuity Company (ILA) and ITT
Hartford International Life Reassurance Corporation (HLR), formerly
American Skandia Life Reinsurance Corporation. HLIC is a wholly-owned
subsidiary of Hartford Life and Accident Insurance Company (HLA).
The Company is ultimately owned by Hartford Fire Insurance Company
(Hartford Fire), which is ultimately owned by ITT Hartford Group,
Inc., a subsidiary of ITT Corporation (ITT).
The consolidated financial statements are prepared in conformity with
generally accepted accounting principles which differ in certain
material respects from the accounting practices prescribed or
permitted by various insurance regulatory authorities.
Certain reclassifications have been made to prior year financial
statements to conform to current year classifications.
(B) CHANGES IN ACCOUNTING PRINCIPLES:
Effective January 1, 1992, the Company adopted Statement of Financial
Accounting Standards (SFAS)No. 106, "Employers' Accounting for
Postretirement Benefits Other than Pensions" and SFAS No. 112,
Employers' Accounting for Postemployment Benefits", using the
immediate recognition method. Accordingly, a cumulative adjustment
(through December 31, 1991) of $7 after-tax has been recognized at
January 1, 1992.
Effective January 1, 1994, the Company adopted SFAS No. 115,
"Accounting for Certain Investments in Debt and Equity Securities".
The new standard requires, among other things, that fixed maturities
be classified as "held-to-maturity", "available-for-sale" or "trading"
based on the Company's intentions with respect to the ultimate
disposition of the security and its ability to effect those
intentions. The classification determines the appropriate accounting
carrying value (cost basis or fair value) and, in the case of fair
value, whether the adjustment impacts Stockholder's Equity directly or
is reflected in the Consolidated Statements of Income. Investments in
equity securities had previously been recorded at fair value with the
corresponding impact included in Stockholder's Equity. Under SFAS No.
115, the Company's fixed maturities are classified as "available for
sale" and accordingly, these investments are reflected at fair value
with the corresponding impact included as a component of Stockholder's
Equity designated as "Unrealized Loss on Securities, Net of Tax."
As with the underlying investment security, unrealized gains and
losses on derivative financial instruments are considered in
determining the fair value of the portfolios. The impact of adoption
was an increase to stockholder's equity of $91.
The Company's cash flows were not impacted by these changes in
accounting principles.
(C) REVENUE RECOGNITION:
Revenues for universal life policies and investment products consist
of policy charges for the cost of insurance,
F-7
<PAGE>
policy administration and surrender charges assessed to policy account
balances. Premiums for traditional life insurance policies are
recognized as revenues when they are due from policyholders. Deferred
acquisition costs are amortized using the retrospective deposit method
for universal life and other types of contracts where the payment
pattern is irregular or surrender charges are a significant source of
profit and the prospective deposit method is used where investment
margins are the primary source of profit.
(D) FUTURE POLICY BENEFITS AND OTHER POLICYHOLDER FUNDS:
Liabilities for future policy benefits are computed by the net level
premium method using interest rate assumptions varying from 3% to 11%
and withdrawal, mortality and morbidity assumptions which vary by
plan, year of issue and policy durations and include a provision for
adverse deviation. Liabilities for universal life insurance and
investment products represent policy account balances before
applicable surrender charges.
(E) POLICYHOLDER REALIZED GAINS AND LOSSES:
Realized gains and losses on security transactions associated with the
Company's immediate participation guaranteed contracts are excluded
from revenues, since under the terms of the contracts the realized
gains and losses will be credited to policyholders in future years as
they are entitled to receive them.
(F) DEFERRED POLICY ACQUISITION COSTS:
Policy acquisition costs, including commissions and certain
underwriting expenses associated with acquiring traditional life
insurance products, are deferred and amortized over the lesser of the
estimated or actual contract life. For universal life insurance and
investment products, acquisition costs are being amortized generally
in proportion to the present value of expected gross profits from
surrender charges, investment, mortality and expense margins.
(G) INVESTMENTS:
Investments in fixed maturities are classified as available for sale
and accordingly reflected at fair value with the corresponding impact
of unrealized gains and losses, net of tax, included as a component of
stockholder's equity. Securities and derivative instruments,
including swaps, caps, floors, futures, forward commitments and
collars, are based on dealer quotes or quoted market prices for the
same or similar securities. While the Company has the ability and
intent to hold all fixed income securities until maturity, due to
contract obligations, interest rates and tax laws, portfolio activity
occurs. These trades are motivated by the need to optimally position
investment portfolios in reaction to movements in capital markets or
distribution of policyholder liabilities. When an other than temporary
reduction in the value of publicly traded securities occurs, the
decrease is reported as a realized loss and the carrying value is
adjusted accordingly. Real estate is carried at cost less accumulated
depreciation. Equity securities, which include common stocks, are
carried at market value with the after-tax difference from cost
reflected in stockholder's equity. Realized investment gains and
losses, after deducting life and pension policyholders share are
reported as a component of revenue and are determined on a specific
identification basis.
(H) DERIVATIVE FINANCIAL INSTRUMENTS
The Company uses a variety of derivative financial instruments as part
of an overall risk management strategy. These instruments, including
swaps, caps, collars and exchange traded financial futures, are used
as a means of hedging exposure to price, foreign currency and/or
interest rate risk on planned investment purchases or existing assets
and liabilities. The Company does not hold or issue derivative
financial instruments for trading purposes. The Company's minimum
correlation threshold for hedge designation is 80%. If correlation,
which is assessed monthly and measured based on a rolling three month
average, falls below 80%, hedge accounting will be terminated. Gains
or losses on futures purchased in anticipation of the future receipt
of product cash flows are deferred and, at the time of the ultimate
purchase, reflected as a basis adjustment to the purchased asset.
Gains or losses on futures used in invested asset risk management are
deferred and adjusted into the basis of the hedged asset when the
contract is closed. The basis adjustments are amortized into
investment income over the remaining asset life.
F-8
<PAGE>
Open forward commitment contracts are marked to market through
Stockholder's Equity. Such contracts are recorded at settlement by
recording the purchase of the specified securities at the previously
committed price. Gains or losses resulting from the termination of
the forward commitment contracts before the delivery of the securities
are recognized immediately in the income statement as a component of
investment income.
The Company's accounting for interest rate swaps and purchased or
written caps, floors, and options used to manage risk is in accordance
with the concepts established in SFAS 80, "Accounting for Futures
Contracts", the American Institute of Certified Public Accountants
Statement of Position 86-2, "Accounting for Options" and various EITF
pronouncements, except for written options which are written in all
cases in conjunction with other assets and derivatives as part of an
overall risk management strategy. Such synthetic instruments are
accounted for as hedges. Derivatives, used as part of a risk
management strategy, must be designated at inception and have
consistency of terms between the synthetic instrument and the
financial instrument being replicated. Synthetic instrument
accounting, consistent with industry practice, provides that the
synthetic asset is accounted for like the financial instrument it is
intended to replicate. Interest rate swaps and purchased or written
caps, floors and options which fail to meet management criteria are
accounted for at fair market value with the impact reflected in net
income.
Interest rate swaps involve the periodic exchange of payments without
the exchange of underlying principal or notional amounts. Net
payments are recognized as an adjustment to income. Should the swap
be terminated, the gains or losses are adjusted into the basis of the
asset or liability and amortized over the remaining life. The basis
of the underlying asset or liability is adjusted to reflect changing
market conditions such as prepayment experience. Should the asset be
sold or liability terminated, the gains or losses on the terminated
position are immediately recognized in earnings. Interest rate swaps
purchased in anticipation of an asset purchase ("anticipatory
transaction") are recognized consistent with the underlying asset
components. That is, the settlement component is recognized in the
Statement of Income while the change in market is recognized as an
unrealized gain or loss.
Premiums paid on purchased floor or cap agreements and the premium
received on issued cap or floor agreements used for risk management,
as well as the net payments, are adjusted into the basis of the
applicable asset and amortized over the asset life. Gains or losses
on termination of such positions are adjusted into the basis of the
asset or liability and amortized over the remaining asset life.
Forward exchange contracts and foreign currency swaps are accounted
for in accordance with SFAS 52. Changes in the spot rate of
instruments designated as hedges of the net investment in a foreign
subsidiary are reflected in the cumulative translation adjustment
component of stockholder's equity.
(I) RELATED PARTY TRANSACTIONS:
Transactions of the Company with its parent and affiliates relate
principally to tax settlements, insurance coverage, rental and service
fees and payment of dividends and capital contributions. In addition,
certain affiliated insurance companies purchased group annuity
contracts from the Company to fund pension costs and claim annuities
to settle casualty claims.
Substantially all general insurance expenses related to the Company,
including rent expenses, are initially paid by Hartford Fire. Direct
expenses are allocated to the Company using specific identification
and indirect expenses are allocated using other applicable methods.
The rent paid to Hartford Fire for the space occupied by the Company
was $3 in 1994, 1993, and 1992 respectively. The Company expects to
pay rent of $3 in 1995, 1996, 1997,1998, and 1999 respectively and
$60 thereafter, over the contract life of the lease.
See also Note (4) for the related party coinsurance agreements.
F-9
<PAGE>
2. INVESTMENTS
(A) COMPONENTS OF NET INVESTMENT INCOME:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Interest income $1,247 $1,007 $894
Income from other investments 54 53 15
------ ------ ------
GROSS INVESTMENT INCOME 1,301 1,060 909
Less: investment expenses 9 9 2
------ ------ ------
NET INVESTMENT INCOME $1,292 $1,051 $907
------ ------ ------
------ ------ ------
</TABLE>
(B) UNREALIZED GAINS (LOSSES) ON EQUITY SECURITIES:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Gross unrealized gains $ 2 $ 3 $ 2
Gross unrealized losses (11) (11) (2)
Deferred income tax expense (benefit) (3) (3) 0
------ ------ ------
NET UNREALIZED LOSSES AFTER TAX (6) (5) 0
Balance at beginning of year (5) 0 1
------ ------ ------
CHANGE IN NET UNREALIZED LOSSES ON
EQUITY SECURITIES $ (1) $ (5) $(1)
------ ------ ------
------ ------ ------
</TABLE>
(C) UNREALIZED GAINS (LOSSES) ON FIXED MATURITIES:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Gross unrealized gains $ 150 $ 538 $ 521
Gross unrealized losses (1,185) (290) (302)
-------- ------ ------
NET UNREALIZED (LOSSES) GAINS (1,035) 248 219
Unrealized losses credited to policyholders 37 0 0
Deferred income tax expense (benefit) (350) 87 75
-------- ------ ------
NET UNREALIZED (LOSSES) GAINS AFTER TAX (648) 161 144
Balance at beginning of year 161 144 297
-------- ------ ------
CHANGE IN NET UNREALIZED (LOSSES)GAINS ON
FIXED MATURITIES $ (809) $ 17 $(153)
-------- ------ ------
-------- ------ ------
</TABLE>
(D) COMPONENTS OF NET REALIZED GAINS:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Fixed maturities $(34) $(12) $20
Equity securities (11) 0 3
Real estate and other 47 43 (3)
Less: (decrease)increase in liability
to policyholders for realized gains (5) 15 15
------ ------ ------
NET REALIZED GAINS $ 7 $ 16 $ 5
------ ------ ------
------ ------ ------
</TABLE>
F-10
<PAGE>
(E) DERIVATIVE INVESTMENTS:
A summary of investments, segregated by major category along with the
types of derivatives and their respective notional amounts, are as
follows as of December 31, 1994 :
<TABLE>
<CAPTION>
SUMMARY OF INVESTMENTS
AS OF DECEMBER 31, 1994
(CARRYING AMOUNTS)
ISSUED CAPS, PURCHASED
TOTAL CARRYING NON- FLOORS & CAPS, FLOORS FUTURES SWAPS
VALUE DERIVATIVE OPTIONS (B) & OPTIONS (C) (D) (F)
-------------- ---------- ------------ ------------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
Asset Backed Securities $5,670 $5,690 $(31) $24 $0 $(13)
Inverse Floaters (A) 474 482 (9) 4 0 (3)
Anticipatory (E) (30) 0 0 2 0 (32)
-------- ------- ------ ------ ------ ------
TOTAL ASSET BACKED SECURITIES 6,114 6,172 (40) 30 0 (48)
Other Bonds and Notes 6,533 6,606 0 0 0 (73)
Short-Term Investments 782 782 0 0 0 0
-------- ------- ------ ------ ------ ------
TOTAL FIXED MATURITIES 13,429 13,560 (40) 30 0 (121)
Other Investments 3,105 3,105 0 0 0 0
-------- ------- ------ ------ ------ ------
TOTAL INVESTMENTS $16,534 $16,665 $(40) $30 $0 $(121)
-------- ------- ------ ------ ------ ------
-------- ------- ------ ------ ------ ------
</TABLE>
SUMMARY OF INVESTMENTS IN DERIVATIVES
AS OF DECEMBER 31, 1994
(NOTIONAL AMOUNTS)
<TABLE>
<CAPTION>
ISSUED CAPS, PURCHASED
TOTAL NOTIONAL FLOORS, & CAPS, FLOORS, FUTURES SWAPS
AMOUNT OPTIONS (B) & OPTIONS (C) (D) (F)
-------------- ------------ ------------- -------- ------
<S> <C> <C> <C> <C> <C>
Asset Backed Securities $4,244 $1,311 $2,546 $75 $312
Inverse Floaters (A) 1,129 277 63 3 786
Anticipatory (E) 835 0 209 101 525
------- ------- ------- ------- -------
TOTAL ASSET BACKED 6,208 1,588 2,818 179 1,623
Other Bonds and Notes 670 0 72 74 524
Short-Term Investments 0 0 0 0 0
------- ------- ------- ------- -------
TOTAL FIXED MATURITIES 6,878 1,588 2,890 253 2,147
Other Investments 16 0 3 0 13
------- ------- ------- ------- -------
TOTAL INVESTMENTS $6,894 $1,588 $2,893 $253 $2,160
------- ------- ------- ------- -------
------- ------- ------- ------- -------
</TABLE>
F-11
<PAGE>
A summary of the notional and fair value of derivatives with off Balance Sheet
risk as of December 31, 1993 is as follows:
<TABLE>
<CAPTION>
ISSUED SWAPS, CAPS
FLOORS AND COLLARS FUTURES FORWARDS TOTAL
------------------ ------- -------- -----
<S> <C> <C> <C> <C>
Notional $7,015 $1,792 $91 $8,898
Fair Value $(4) $0 $1 $(3)
</TABLE>
(A) Inverse floaters, which are variations of CMO's for which the coupon
rates move inversely with an index rate (e.g. LIBOR). The risk to
principal is considered negligible as the underlying collateral for
the securities is guaranteed or sponsored by government agencies. To
address the volatility risk created by the coupon variability, the
Company uses a variety of derivative instruments, primarily interest
rate swaps and issued floors.
(B) Comprised primarily of caps ($1,459) with a weighted average strike
rate of 7.7% (ranging from 6.8% to 10.2%). Over 70% mature in 1997
and 1998. Issued floors total $125 with a weighted average strike
rate of 8.3% and mature in 2004.
(C) Comprised of purchased floors ($1,856), purchased options and collars
($633) and purchased caps ($404). The floors have a weighted average
strike price of 5.8% (ranging from 4.8% and 6.6%) and over 85% mature
in 1997 and 1998. The options and collars generally mature in 1995
and 2002. The caps have a weighted average strike price of 7.2%
(ranging from 4.5% and 8.9%) and over 66% mature in 1997 through
1999.
(D) Over 95% of futures contracts expire before December 31, 1995.
(E) Deferred gains and losses on anticipatory transactions are included in
the carrying value of bond investments in the consolidated balance
sheets. At the time of the ultimate purchase, they are reflected as
a basis adjustment to the purchased asset. At December 31, 1994,
these were $(33) million in net deferred losses for futures, interest
rate swaps and purchased options.
(F) The following table summarizes the maturities of interest rate and
foreign currency swaps outstanding at December 31, 1994 and the
related weighted average interest pay rate or receive rate assuming
current market conditions:
MATURITY OF SWAPS ON INVESTMENTS AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
MATURITY
DERIVATIVE TYPE 1995 1996 1997 1998 1999 2000+ TOTAL LAST
--------------- ---- ---- ---- ---- ---- ----- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INTEREST RATE SWAPS:
PAY FIXED/RECEIVE VARIABLE:
Notional Value $0 $15 $50 $0 $446 $268 $779 2004
Weighted Average Pay Rate 0.0% 5.0% 7.2% 0.0% 8.2% 7.8% 7.9%
Weighted Average Receive Rate 0.0% 6.4% 5.7% 0.0% 7.5% 6.5% 7.0%
PAY VARIABLE/RECEIVE FIXED:
Notional Value $311 $50 $100 $25 $175 $100 $761 2002
Weighted Average Pay Rate 5.1% 5.3% 5.5% 5.3% 5.4% 6.0% 5.4%
Weighted Average Receive Rate 8.0% 8.0% 7.5% 4.0% 4.5% 7.2% 6.9%
PAY VARIABLE/RECEIVE DIFFERENT VARIABLE:
Notional Value $95 $50 $18 $15 $5 $232 $415 2005
Weighted Average Pay Rate 4.2% 6.4% 6.8% 6.2% 0.0% 6.0% 5.7%
Weighted Average Receive Rate 9.1% 6.3% 9.5% 6.4% 0.0% 6.3% 7.1%
TOTAL INTEREST RATE SWAPS $406 $115 $168 $40 $626 $600 $1,955 2004
Total Weighted Average Pay Rate 4.9% 5.7% 6.1% 5.6% 7.4% 6.8% 6.5%
Total Weighted Average Receive Rate 8.2% 7.1% 7.2% 4.9% 6.7% 6.5% 7.0%
FOREIGN CURRENCY SWAPS $35 $46 $29 $15 $10 $70 $205 2002
TOTAL SWAPS $441 $161 $197 $55 $636 $670 $2,160 2005
</TABLE>
F-12
<PAGE>
In addition to risk management through derivative financial
instruments pertaining to the investment portfolio, interest rate
sensitivity related to certain Company liabilities was altered
primarily through interest rate swap agreements. The notional amount
of the liability agreements in which the Company generally pays one
variable rate in exchange for another, was $1.7 billion and $1.3
billion at December 31, 1994 and 1993 respectively. The weighted
average pay rate is 6.2%; the weighted average receive rate is 6.6% ,
and these agreements mature at various times through 2004.
(F) CONCENTRATION OF CREDIT RISK:
The Company has a reinsurance recoverable of $4.4 billion from
Mutual Benefit Life Assurance Corporation (Mutual Benefit). The risk
of Mutual Benefit becoming insolvent is mitigated by the reinsurance
agreement's requirement that the assets be kept in a security trust
with the Company as sole beneficiary. Excluding investments in U.S.
government and agencies, the Company has no other significant
concentrations of credit risk.
The Company currently owns $39.2 million par value of Orange County,
California Pension Obligation Bonds, $17.1 million of which it
continues to carry as available for sale under FASB 115 and $22.1
million which are included in the Separate Account Assets. While
Orange County is currently operating under Protection of Chapter 9 of
the Federal Bankruptcy Laws, the Company believes it is probable that
it will collect all amounts due under the contractual terms of the
bonds and that the bonds are not permanently or other than temporarily
impaired.
As of December 31, 1994 the Company owned $66.1 million of Mexican
bonds, $52.3 million of which are payable in Mexican pesos but are
fully hedged back to U.S. dollars, and $13.8 million of U.S. Dollar
Denomination Mexican bonds. The primary risks associated with these
securities is a default by the Mexican government or imposition of
currency controls that prevent conversion of Mexican pesos to U.S.
dollars. The Company believes both of these risks are remote.
(G) FIXED MATURITIES:
The schedule below details the amortized cost and fair values of the
Company's fixed maturities by component, along with the gross
unrealized gains and losses:
<TABLE>
<CAPTION>
1994
----
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED
COST GAINS LOSSES FAIR VALUE
--------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
U.S. Government and government
agencies and authorities:
- - guaranteed and sponsored $1,516 $1 $(87) $1,430
- - guaranteed and sponsored
- asset backed 4,256 78 (571) 3,763
States, municipalities and
political subdivisions 148 1 (12) 137
International governments 189 1 (14) 176
Public utilities 531 1 (32) 500
All other corporate 3,717 38 (297) 3,458
All other corporate
- asset backed 2,442 30 (121) 2,351
Short-term investments 1,665 0 (51) 1,614
------- ----- -------- -------
TOTAL $14,464 $150 $(1,185) $13,429
------- ----- -------- -------
------- ----- -------- -------
</TABLE>
F-13
<PAGE>
<TABLE>
<CAPTION>
1993
----
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
--------- ---------- ---------- ------
<S> <C> <C> <C> <C>
U.S. Government and government
agencies and authorities:
- - guaranteed and sponsored $ 1,637 $ 15 $ (12) $ 1,640
- - guaranteed and sponsored
- asset backed 4,070 235 (219) 4,086
States, municipalities and
political subdivisions 73 9 0 82
International governments 100 5 (3) 102
Public utilities 423 20 (2) 441
All other corporate 3,598 180 (42) 3,736
All other corporate
- asset backed 1,806 74 (12) 1,868
Short-term investments 890 0 0 890
-------- ------- -------- --------
TOTAL $12,597 $ 538 $ (290) $12,845
-------- ------- -------- --------
-------- ------- -------- --------
</TABLE>
The amortized cost and estimated fair value of fixed maturity
investments at December 31, 1994, by maturity, are shown below. Asset
backed securities are distributed to maturity year based on the
Company's estimate of the rate of future prepayments of principal over
the remaining life of the securities. Expected maturities differ from
contractual maturities reflecting the borrowers' rights to call or
prepay their obligations.
<TABLE>
<CAPTION>
AMORTIZED COST ESTIMATED FAIR VALUE
-------------- --------------------
MATURITY
- --------
<S> <C> <C>
Due in one year or less $ 2,214 $ 2,183
Due after one year through five years 7,000 6,647
Due after five years through ten years 3,678 3,334
Due after ten years 1,572 1,265
--------- ---------
$14,464 $13,429
--------- ---------
--------- ---------
</TABLE>
Sales of fixed maturities excluding short-term fixed maturities for
the years ended 1994, 1993, and 1992 resulted in proceeds of $5,708,
$8,813, and $5,728, respectively, resulting in gross realized gains of
$71, $192, and $140, and gross realized losses of $100, $219, and
$135, respectively, not including policyholder gains and losses.
Sales of equity securities and other investments for the years ended
December 31, 1994, 1993, and 1992 resulted in proceeds of $159, $127
and $7, respectively, resulting in gross realized gains of $3, $0, and
$3, and gross realized losses of $14, $0, and $0, respectively, not
including policyholder gains and losses.
F-14
<PAGE>
(H) FAIR VALUE OF FINANCIAL INSTRUMENTS NOT DISCLOSED ELSEWHERE :
BALANCE SHEET ITEMS:
<TABLE>
<CAPTION>
1994 1993
CARRYING FAIR CARRYING FAIR
AMOUNT VALUE AMOUNT VALUE
--------- ------ -------- ------
<S> <C> <C> <C> <C>
ASSETS
Other invested assets:
Policy loans $2,614 $2,614 $1,397 $1,397
Mortgage loans 316 316 228 228
Investments in partnership
and trusts 36 42 14 34
Miscellaneous 67 67 22 63
LIABILITIES
Other policy claims and
benefits $13,001 $12,374 $11,140 $11,415
</TABLE>
The following methods and assumptions were used to estimate the fair
value of each class of financial instrument:policy and mortgage loan
carrying amounts approximate fair value; investments in partnerships
and trusts are based on external market valuations from partnership
and trust management; and other policy claims and benefits payable are
determined by estimating future cash flows discounted at the current
market rate.
3. INCOME TAX
The Company is included in ITT's consolidated U.S. Federal income tax
return and remits to (receives from) ITT a current income tax
provision (benefit) computed in accordance with the tax sharing
arrangements between ITTand its insurance subsidiaries. The
effective tax rate was 32% in 1994, and approximates the U.S.
statutory tax rates of 35% in 1993 and 34% in 1992. The provision for
income taxes was as follows:
<TABLE>
<CAPTION>
INCOME TAX EXPENSE:
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Current $185 $ $ 190 $ $ 124
Deferred (120) (115) (79)
------- -------- --------
$ 65 $ $ 75 $ $ 45
------- -------- --------
------- -------- --------
</TABLE>
F-15
<PAGE>
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
TAX PROVISION AT U.S. STATUTORY RATE $71 $76 $46
Tax-exempt income (3) 0 0
Foreign tax credit (1) 0 0
Other (2) (1) (1)
----- ----- -----
PROVISION FOR INCOME TAX $ 65 $75 $45
----- ----- -----
----- ----- -----
</TABLE>
Income taxes paid were $ 244 , $301 and $36 in 1994, 1993, and 1992
respectively. The current taxes due from or (to) Hartford Fire were $46,
and $19 in 1994 and 1993 respectively.
Deferred tax assets include the following:
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
Tax deferred acquisition cost $284 $158
Book deferred acquisition costs and reserves (134) (30)
Employee benefits 7 7
Unrealized loss on "available for sale"
securities 353 3
Investments and other 80 (24)
------- -------
$590 $114
------- -------
------- -------
</TABLE>
Prior to the Tax Reform Act of 1984, the Life Insurance Company Income Tax
Act of 1959 permitted the deferral from taxation of a portion of statutory
income under certain circumstances. In these situations, the deferred
income was accumulated in a "Policyholders' Surplus Account" and will be
taxable in the future only under conditions which management considers to
be remote; therefore, no Federal income taxes have been provided on this
deferred income. The balance for tax return purposes of the Policyholders'
Surplus Account as of December 31, 1994 was $24.
4. REINSURANCE
The Company cedes insurance to non-affiliated insurers in order to limit
its maximum loss. Such transfer does not relieve the Company of its
primary liability. The Company also assumes insurance from other
insurers. Group life and accident and health insurance business is
substantially reinsured to affiliated companies.
Life insurance net retained premiums were comprised of the following:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Gross premiums $1,316 $1,135 $680
Reinsurance assumed 299 93 30
Reinsurance ceded 515 481 451
------- ------- -----
NET RETAINED PREMIUMS $1,100 $747 $259
------- ------- -----
------- ------- -----
</TABLE>
F-16
<PAGE>
Life reinsurance recoveries, which reduced death and other benefits, for
the years ended December 31, 1994, 1993 and 1992 approximated $164, $149,
and $73, respectively.
In December 1994, the Company assumed from a third party approximately
$500 million of corporate owned life insurance reserves on a coinsurance
basis. Also in December 1994, ILA ceded to ITT Lyndon Insurance Company
$1 billion in individual fixed and variable annuities on a modified
coinsurance basis. These transactions did not have a material impact on
consolidated net income.
In October 1994, HLR recaptured approximately $500 million of corporate
owned life insurance from a third party reinsurer. Subsequent to this
transaction, HLIC and HLR restructured their coinsurance agreement from
coinsurance to modified coinsurance, with the assets and policy liabilities
placed in the separate account. In May 1994, HLIC assumed and reinsured
the life insurance policies and the individual annuities of Pacific
Standard with reserves and account values of approximately $400 million.
The Company received cash and investment grade assets to support the life
insurance and individual annuity contract obligations assumed.
In June 1993, the Company assumed and partially reinsured the annuity, life
and accident and sickness insurance policies of Fidelity Bankers Life
Insurance Company in Receivership for Conservation and Rehabilitation, with
account values of $3.2 billion. The Company received cash and investment
grade assets to assume insurance and annuity contract obligations.
Substantially all of these contracts were placed in the Company's separate
accounts.
In November 1993, ILA acquired, through an assumption reinsurance
transaction, substantially all of the individual fixed and variable annuity
business of HLA. As a result of this transaction, the assets and
liabilities of the company increased approximately $1 billion. The excess
of liabilities assumed over assets received, of $2, was recorded as a
decrease to capital surplus. The impact on consolidated net income was not
significant.
On November 4, 1992, the Company entered into a definitive agreement
whereby the Company assumed the contract obligations of Mutual Benefit Life
Assurance Corporation's (Mutual Benefit) individual corporate owned life
insurance (COLI) contracts. The Company received $5.6 billion in cash and
invested assets, $5.3 billion of which were policy loans, from Mutual
Benefit for assuming the contract obligations. Simultaneously, the Company
coinsured approximately 84% of the contract obligations back to Mutual
Benefit, HLR and an unaffiliated reinsurer. In August 1993, the Company
received assets of $300 million for assuming the group COLI contract
obligations of Mutual Benefit, through an assumption reinsurance
transaction. Under the terms of the agreement, the Company coinsured back
75% of the liabilities to Mutual Benefit. All assets supporting Mutual
Benefit's reinsurance liability to HLIC are placed in a "security trust",
with Hartford Life as the sole beneficiary. The impact on 1992
consolidated net income was not significant.
In 1992, all ordinary individual life insurance written and in force in
HLA was assumed by HLIC. As a result of this transaction, the assets of
HLIC increased by approximately $437, liabilities increased approximately
$403. The excess of assets over liabilities of $34 was recorded as an
increase in capital.
5. PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS
The Company's employees are included in Hartford Fire's noncontributory
defined benefit pension plans. These plans provide pension benefits that
are based on years of service and the employee's compensation during the
last ten years of employment. The Company's funding policy is to
contribute annually an amount between the minimum funding requirements set
forth in the Employee Retirement Income Security Act of 1974 and the
maximum amount that can be deducted for Federal income tax purposes.
Generally, pension costs are funded through the purchase of the Company's
group pension contracts. The cost to the Company was approximately $2, $3
and $2 in 1994, 1993 and 1992, respectively.
The Company provides certain health care and life insurance benefits for
eligible retired employees. A substantial portion of the Company's
employees may become eligible for these benefits upon retirement.
Effective January 1, 1992, the Company adopted SFAS No. 106, using the
immediate recognition method for all benefits accumulated to date. As of
June 1992, the Company amended its plans, effective January 1, 1993,
whereby the Company's contribution for health care benefits will depend on
the retiree's date of retirement and years of service. In addition, the
plan amendments increased deductibles and set a defined dollar cap which
F-17
<PAGE>
limits average company contributions. The effect of these changes is not
material. The Company has prefunded a portion of the health care and life
insurance obligations through trust funds where such prefunding can be
accomplished on a tax effective basis. Postretirement health care and
life insurance benefits expense, allocated by Hartford Fire, was $1, $1,
and $1, for 1994, 1993, and 1992 respectively.
The assumed rate of future increases in the per capita cost of health care
(the health care trendrate) was 11% for 1994, decreasing ratably to 6 %
in the year 2001. Increasing the health care trend rates by one percent
per year would have an immaterial impact on the accumulated postretirement
benefit obligation and the annual expense. The assumed weighted average
discount rate was 8.5%. To the extent that the actual experience differs
from the inherent assumptions, the effect will be amortized over the
average future service of the covered employees.
6. BUSINESS SEGMENT INFORMATION
The reportable segments and product groups of HLIC and its subsidiaries are:
INDIVIDUAL LIFE AND ANNUITIES (ILAD)
- -Individual life
- -Fixed and variable retirement annuities
ASSET MANAGEMENT SERVICES (AMS)
- -Group Pension Plans products and services
- -Deferred Compensation Plans products and services
- -Structured Settlements and lottery annuities
SPECIALTY
- -Corporate Owned Life Insurance (COLI) and HLR
<TABLE>
<CAPTION>
1994 1993 1992
------ ------ ------
<S> <C> <C> <C>
REVENUES:
ILAD $691 $595 $305
AMS 789 794 770
Specialty 919 425 96
------- ------- -------
$2,399 $1,814 $1,171
------- ------- -------
------- ------- -------
INCOME BEFORE INCOME TAX:
ILAD $139 $129 $73
AMS 38 71 56
Specialty 26 18 5
------- ------- -------
$203 $218 $134
------- ------- -------
------- ------- -------
IDENTIFIABLE ASSETS:
ILAD $26,668 $19,147 $9,474
AMS 13,334 12,416 11,198
Specialty 7,847 6,723 5,910
------- ------- -------
$47,849 $ 38,286 $ 26,582
------- ------- -------
------- ------- -------
</TABLE>
7. STATUTORY NET INCOME AND SURPLUS
Substantially all of the statutory surplus is permanently reinvested or is
subject to dividend restrictions relating to various state regulations
which limit the payment of dividends without prior approval.
Statutory net income and surplus as of December 31 were:
F-18
<PAGE>
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Statutory net income $58 $63 $65
Statutory surplus $941 $812 $614
</TABLE>
The Company prepares its statutory financial statements in accordance with
accounting practices prescribed by the State of Connecticut Insurance
Department. Prescribed statutory accounting practices include publications
of the National Association of Insurance Commissioners ("NAIC"), as well as
state laws, regulations, and general administrative rules.
8. SEPARATE ACCOUNTS:
The Company maintains separate account assets and liabilities totaling
$22.8 billion and $16.3 billion at December 31, 1994 and 1993, respectively
which are reported at fair value. Separate account assets are segregated
from other investments and are not subject to claims that arise out of any
other business of the Company. Investment income and gains and losses of
separate accounts accrue directly to the policyholder. Separate accounts
reflect two categories of risk assumption: non-guaranteed separate
accounts totaling $14.8 billion and $11.5 billion at December 31, 1994 and
1993, respectively, wherein the policyholder assumes the investment risk,
and guaranteed separate account assets totaling $8.0 billion and $4.8
billion at December 31, 1994 and 1993, respectively, wherein the Company
contractually guarantees either a minimum return or account value to the
policyholder. Investment income (including investment gains and losses) on
separate account assets are not reflected in the Consolidated Statements of
Income. Separate account management fees, net of minimum guarantees, were
$256, $189, and $92, in 1994, 1993, and 1992, respectively.
The guaranteed separate accounts include modified guaranteed individual
annuity, and modified guaranteed life insurance. The average credit
interest rate on these contracts is 6.44%. The assets that support these
liabilities are comprised of $7.5 billion in bonds and $.5 billion in
policy loans. The portfolios are segregated from other investments and
are managed so as to minimize liquidity and interest rate risk. In order
to minimize the risk of disintermediation associated with early
withdrawals, individual annuity and modified guaranteed life insurance
contracts carry a graded surrender charge as well as a market value
adjustment. Additional investment risk is hedged using a variety of
derivatives which total $(16.2) million in carrying value and $3.2 billion
in notional amounts.
9. COMMITMENTS AND CONTINGENCIES
In August 1994, HLIC renewed a two year note purchase facility agreement
which in certain instances obligates the Company to purchase up to $100
million in collateralized notes from a third party. The Company is
receiving fees for this commitment. At December 31, 1994, the Company has
not purchased any notes under this agreement.
In March 1987, HLIC guaranteed the commercial mortgages (principal and
accrued interest) that were sold under a pooling and servicing agreement of
the same date. Mortgages aggregating approximately $53.0million were sold
in this transaction, and the remaining balance on these loans is $21.1
million. There was no impact on operations due to this guarantee.
Under insurance guaranty fund laws in most states, insurers doing business
therein can be assessed up to prescribed limits for policyholder losses
incurred by insolvent companies. The amount of any future assessments on
HLIC under these laws cannot be reasonably estimated. Most of these laws
do provide, however, that an assessment may be excused or deferred if it
would threaten an insurer's own financial strength. Additionally, guaranty
fund assessments are used to reduce state premium taxes paid by the Company
in certain states.
The Company is involved in various legal actions, some of which involve
claims for substantial amounts. In the opinion of management the ultimate
liability with respect to such lawsuits, as well as other contingencies, is
not considered material in relation to the consolidated financial position
of the Company.
F-19
<PAGE>
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned Registrant hereby undertakes to file with
the Securities and Exchange Commission such supplementary and periodic
information, documents, and reports as may be prescribed by any rule or
regulation of the Commission heretofore or hereafter duly adopted pursuant to
authority conferred in that section.
UNDERTAKINGS AND REPRESENTATIONS AS REQUIRED BY RULE 6E-3(T)
1. Separate Account VL I meets the definition of "Separate Account" under
Rule 6e-3(T).
2. The Registrant represents that:
(a) it relies on Rule 6e-3(T)(b)(13)(ii)(F) to offer the Policies;
(b) the level of mortality and expense risk charge is within the
range of industry practice for comparable flexible contracts.
(c) the Company has conducted a survey of similar policies and
insurers and determined that the charge is within the range of
industry practice;
(d) the Company undertakes to keep and make available to the
Commission upon request the documents we used to support the
representation in (b); and
(e) the Company further represents that the account will invest
only in management investment companies which have undertaken
to have a Board of Directors, a majority of whom are not
interested persons of the Company, formulate and approve a plan
under Rule 12b-1 to finance distribution expenses.
(f) The life insurer has concluded that there is a reasonable
likelihood that the distribution financing arrangement of the
separate account benefits the separate account and
contractholders and will keep and make available to the
Commission on request a memorandum setting for the basis for
this representation.
UNDERTAKING ON INDEMNIFICATION
Article VIII of the Bylaws of Hartford Insurance Company, a Connecticut
corporation, provides for indemnification of its officers, directors and
employees to the extent consistent with statutory requirements.
Connecticut General Laws Section 33-320a provides for indemnification of
officers, directors and employees of a corporation as follows:
(b) Except as otherwise provided in this section, a corporation shall
indemnify any person made a party to any proceeding, other than an action by or
in the right of the corporation, by reason of the fact that he, or the person
whose legal representative he is, is or was a shareholder, director, officer,
employee or agent of the corporation, or an eligible outside party, against
judgments, fines, penalties, amounts paid in settlement and reasonable expenses
actually incurred by him, and the person whose legal representative he is, in
connection with such proceeding. The corporation shall not so indemnify any such
person unless (1) such person, and the person whose legal representative he is,
was successful on the merits in the defense of any proceeding referred to in
this subsection, or (2) it shall be concluded as provided in subsection (d) of
this section that such person, and the person whose legal representative he is,
acted in good faith and in a manner he reasonably believed to be in the best
interests of the corporation or, in the case of a person serving as a fiduciary
of an employee benefit plan or trust, either in the best interests of the
corporation or in the best interests of the participants and beneficiaries of
such employee benefit plan or trust and consistent with the provisions of such
employee benefit plan or trust and, with respect to any criminal action or
proceeding, that he had no reasonable cause to believe his conduct was unlawful,
or (3) the court, on application as provided in subsection (e) of this section,
shall have determined that in view of all the circumstances such person is
fairly and reasonably entitled to be indemnified, and then for such amount as
the court shall determine; except that, in connection with an alleged claim
based upon his purchase or sale of securities of the corporation or of another
enterprise, which he serves or served at the request of the corporation, the
corporation shall only
77
<PAGE>
indemnify such person after the court shall have determined, on application as
provided in subsection (e) of this section, that in view of all the
circumstances such person is fairly and reasonably entitled to be indemnified,
and then for such amount as the court shall determine. The termination of any
proceeding by judgment, order, settlement, conviction or upon a plea of nolo
contendere or its equivalent shall not, of itself, create a presumption that the
person did not act in good faith or in a manner which he did not reasonably
believe to be in the best interests of the corporation or of the participants
and beneficiaries of such employee benefit plan or trust and consistent with the
provisions of such employee benefit plan or trust, or, with respect to any
criminal action or proceeding, that he had reasonable cause to believe that his
conduct was unlawful.
(c) Except as otherwise provided in this section, a corporation shall
indemnify any person made a party to any proceeding, by or in the right of the
corporation, to procure a judgment in its favor by reason of the fact that he,
or the person whose legal representative he is, is or was a shareholder,
director, officer, employee or agent of the corporation, or an eligible outside
party, against reasonable expenses actually incurred by him in connection with
such proceeding in relation to matters as to which such person, or the person
whose legal representative he is, is finally adjudged not to have breached his
duty to the corporation, or where the court, on application as provided in
subsection (e) of this section, shall have determined that in view of all the
circumstances such person is fairly and reasonably entitled to be indemnified,
and then for such amount as the court shall determine. The corporation shall not
so indemnify any such person for amounts paid to the corporation, to a plaintiff
or to counsel for a plaintiff in settling or otherwise disposing of a
proceeding, with or without court approval; or for expenses incurred in
defending a proceeding which is settled or otherwise disposed of without court
approval.
(d) The conclusion provided for in subsection (b) of this section may be
reached by any one of the following: (1) The Board of Directors of the
corporation by a consent in writing signed by a majority of those directors who
were not parties to such proceeding; (2) independent legal counsel selected by a
consent in writing signed by a majority of those directors who were not parties
to such proceeding; (3) in the case of any employee or agent who is not an
officer or director of the corporation, the corporation's general counsel; or
(4) the shareholders of the corporation by the affirmative vote of at least a
majority of the voting power of shares not owned by parties to such proceeding,
represented at an annual or special meeting of shareholders, duly called with
notice of such purpose stated. Such person shall also be entitled to apply to a
court for such conclusion, upon application as provided in subsection (e), even
though the conclusion reached by any of the foregoing shall have been adverse to
him or to the person whose legal representative he is.
(e) Where an application for indemnification or for a conclusion as provided
in this section is made to a court, it shall be made to the court in which the
proceeding is pending or to the superior court for the judicial district where
the principal office of the corporation is located. The application shall be
made in such manner and form as may be required by the applicable rules of the
court or, in the absence thereof, by direction of the court. The court may also
direct the notice be given in such manner as it may require at the expense of
the corporation to the shareholders of the corporation and to such other persons
as the court may designate. In the case of an application to a court in which a
proceeding is pending in which the person seeking indemnification is a party by
reason of the fact that he, as the person whose legal representative he is, is
or was serving at the request of the corporation as a director, partner,
trustee, officer, employee or agent of another enterprise, or as a fiduciary of
an employee benefit plan or trust maintained for the benefit of employees of any
other enterprise, timely notice of such application shall be given by such
person to the corporation.
(f) Expenses which may be indemnifiable under this section incurred in
defending a proceeding may be paid by the corporation in advance of the final
disposition of such proceeding as authorized by the Board of Directors upon
agreement by or on behalf of the shareholder, director, officer, employee, agent
or eligible outside party, or his legal representative, to repay such amount if
he is later found not entitled to be indemnified by the corporation as
authorized in this section.
(g) A corporation shall not indemnify any shareholder, director, officer,
employee, agent or eligible outside party, other than a shareholder, director,
officer, employee, agent or eligible outside party who is or was serving at the
request of the corporation as a director, officer, partner, trustee, employee or
agent of another enterprise, against judgments, fines, penalties, amounts paid
in settlement and expenses to an extent either greater or less than that
authorized in this section. No provision made a part of the incorporation, the
bylaws, a resolution or shareholders or directors, an agreement, or otherwise on
or after October 1, 1982, shall be valid unless consistent with this section.
Notwithstanding the foregoing, the corporation may procure
78
<PAGE>
insurance providing greater indemnification and may share the premium cost with
any shareholder, director, officer, employee, agent or eligible outside party on
such basis as may be agreed upon. The rights and remedies provided in this
section shall be exclusive.
The registrant hereby undertakes that insofar as indemnification for
liability arising under the Securities Act of 1933 (the "Act") may be permitted
to directors, officers and controlling persons of the registrant, pursuant to
the foregoing provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other
than the payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of any
action, suit or preceding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the registrant will,
unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
79
<PAGE>
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The facing sheet.
The prospectus consisting of pages.
The undertaking to file reports.
The Rule 484 undertaking.
The signatures.
The following exhibits:
(I) The following exhibits included herewith correspond to those required
by paragraph A of the instructions for exhibits to Form N-8B-2.
A. (1) Resolution of Board of Directors of the Company authorizing the
Separate Account; Filed with this Registration Statement.
(2) Not applicable.
(3) (a) Principal Underwriting Agreement; and
(3) (b) Form of Selling Agreements; Filed with this Registration
Statement.
(3) (c) Not Applicable.
(4) Not Applicable.
(5) Form of Flexible Premium Variable Life Insurance Policy; Filed
with this Registration Statement.
(6) (a) Charter of Hartford Insurance Company; and
(6) (b) Bylaws of Hartford Insurance Company; Filed with
Registration Statement.
(7) Not Applicable.
(8) Not Applicable.
(9) Not Applicable.
(10) Form of Application for Flexible Premium Variable Life Insurance
Policies -- Filed with this Registration Statement.
(11) Memorandum describing transfer and redemption procedures.
(12) Power of Attorney.
(II) See Exhibit 1.A. (5) above.
(III) Opinion and consent of Ken A. McCullum, Actuary -- Filed with this
Registration Statement.
(IV) No financial statement will be omitted from the Prospectus pursuant to
Instruction 1(b) or (c) of Part I.
(V) Not Applicable.
80
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant has duly caused this Registration Statement
to be signed on its behalf by the undersigned thereunto duly authorized, and its
seal to be herewith affixed and attested, all in the city of Simsbury, and the
State of Connecticut on the ___ day of , 1995.
HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VL I
(Registrant)
By: /s/ STEPHEN P. MINIHAN
--------------------------------------
Stephen P. Minihan, Assistant Vice
President
and Controller
HARTFORD LIFE INSURANCE COMPANY
(Depositor)
By: /s/ STEPHEN P. MINIHAN
--------------------------------------
Stephen P. Minihan, Assistant Vice
President
and Controller
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed by the following persons and in the capacities and on
the dates indicated.
<TABLE>
<S> <C>
Donald R. Frahm, Chairman and Chief Executive
Officer, Director*
Bruce D. Gardner, General Counsel
Corporate Secretary, Director*
Joseph H. Gareau, Executive Vice President and
Chief Investment Officer, Director*
John P. Ginnetti, Senior Vice President,
Director*
Thomas M. Marra, Senior Vice President, *By: /s/ RODNEY J. VESSELS
Director* ----------------------------------------
Rodney J. Vessels
Attorney-In-Fact
Leonard E. Odell, Jr., Senior Vice President,
Director*
Lowndes A. Smith, President, Chief Operating Dated:
Officer, Director* ---------------------------------------
Raymond P. Welnicki, Senior Vice President,
Director*
Lizabeth H. Zlatkus, Vice President, Director*
Donald J. Znamierowski, Vice President,
Comptroller, Director*
</TABLE>
75
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
SCHEDULE 1 - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN AFFILIATES
DECEMBER 31, 1994
(IN MILLIONS)
<TABLE>
<CAPTION>
AMOUNT
SHOWN ON
BALANCE
TYPE OF INVESTMENT COST FAIR VALUE SHEET
------------------ ---------- ---------- ----------
<S> <C> <C> <C>
FIXED MATURITIES
Bonds
U.S. Government and government agencies
and authorities:
- guaranteed and sponsored $ 1,516 $ 1,429 $ 1,429
- guaranteed and sponsored - asset backed 4,256 3,763 3,763
States, municipalities and political subdivisions 148 137 137
International governments 189 176 176
Public utilities 531 500 500
All other corporate 3,717 3,458 3,458
All other corporate - asset backed 2,442 2,350 2,350
Short-term investments 1,665 1,616 1,616
------ ------ ------
TOTAL FIXED MATURITIES 14,464 13,429 13,429
EQUITY SECURITIES
Common Stocks - industrial, miscellaneous and all other 76 68 68
------ ------ ------
TOTAL FIXED MATURITIES AND EQUITY SECURITIES 14,540 13,497 13,497
Policy loans 2,614 2,614 2,614
Mortgage loans 316 316 316
Other investments 103 109 107
------ ------ ------
TOTAL INVESTMENTS $ 17,573 $ 16,536 $ 16,534
------ ------ ------
------ ------ ------
</TABLE>
Note: Fair values for stocks and bonds approximate those quotations published
by applicable stock exchanges or are received from other reliable
sources. The fair value for short - term investments approximates
cost.
Policy and mortgage loan carrying amounts approximate fair value.
S-1
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION
(IN MILLIONS)
<TABLE>
<CAPTION>
BENEFITS, AMORTIZ-
CLAIMS ATION OF
AND CLAIM DEFERRED
DEFERRED FUTURE OTHER PREMIUMS NET ADJUST- POLICY OTHER
POLICY POLICY POLICYHOL- AND OTHER INVESTMENT MENT ACQUISI- INSURANCE
ACQUISITION BENEFITS DER FUNDS CONSIDERA- INCOME EXPENSES TION EXPENSES
SEGMENT COSTS * * TIONS (1) (2) COSTS (3)
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Year ended
December 31,
1994
- --------------
I LAD $ 1,708 $ 582 $ 4,257 $ 492 $ 199 $ 334 $ 137 $ 80
AMS 101 845 10,160 39 750 695 8 48
SPECIALTY 0 463 6,911 569 350 376 0 518
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 1,809 $ 1,890 $ 21,328 $ 1,100 $ 1,299 $ 1,405 $ 145 $ 646
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Year ended
December 31,
1993
- --------------
I LAD $ 1,237 $ 428 $ 3,535 $ 423 $ 172 $ 249 $ 97 $ 120
AMS 97 703 9,026 35 759 662 16 45
SPECIALTY 0 528 5,673 289 136 135 0 272
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 1,334 $ 1,659 $ 18,234 $ 747 $ 1,067 $ 1,046 $ 113 $ 437
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Year ended
December 31,
1992
- -------------
I LAD $ 698 $ 1,115 $ 1,004 $ 178 $ 127 $ 104 $ 49 $ 79
AMS 101 583 8,256 27 743 657 6 51
SPECIALTY 0 46 5,822 54 42 36 0 55
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 799 $ 1,744 $ 15,082 $ 259 $ 912 $ 797 $ 55 $ 185
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<FN>
(*) As Restated
(1) Investment income is allocated to the segments based on each segment's
share of investable funds or on a direct basis, where applicable, including
realized capital gains and losses.
(2) Benefits, claims and claim adjustment expenses includes the increase in
liability for future policy benefits and death, disability and other
contract benefit payments.
(3) Other insurance expenses are allocated to the segments based on specific
identification, where possible, and related activities, including dividends
to policyholders.
</TABLE>
S-2
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
SCHEDULE IV - REINSURANCE
(IN MILLIONS)
<TABLE>
<CAPTION>
PERCENTAGE
CEDED TO ASSUMED OF AMOUNT
GROSS OTHER FROM OTHER NET ASSUMED
AMOUNT COMPANIES COMPANIES AMOUNT TO NET
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
YEAR ENDED DECEMBER 31, 1994
LIFE INSURANCE IN FORCE $ 136,929 $ 87,553 $ 35,016 $ 84,392 41.5%
--------- --------- --------- ---------
Premiums and other considerations
ILAD $ 448 $ 71 $ 106 $ 483 22.0%
AMS 39 0 0 39 0.0%
Specialty 521 140 188 569 33.0%
Accident and Health 308 304 5 9 55.6%
--------- --------- --------- ---------
TOTAL $ 1,316 515 299 1,100 27.2%
--------- --------- --------- ---------
--------- --------- --------- ---------
YEAR ENDED DECEMBER 31, 1993
LIFE INSURANCE IN FORCE $ 93,099 $ 71,415 $ 27,067 $ 48,751 55.5%
--------- --------- --------- ---------
Premiums and other considerations
ILAD $ 417 $ 85 $ 91 $ 423 21.5%
AMS 25 0 0 25 0.0%
Specialty 386 97 0 289 0.0%
Accident and Health 307 299 2 10 20.0%
--------- --------- --------- ---------
TOTAL $ 1,135 $ 481 $ 93 $ 747 12.4%
--------- --------- --------- ---------
--------- --------- --------- ---------
YEAR ENDED DECEMBER 31, 1992
LIFE INSURANCE IN FORCE $ 44,661 $ 64,207 $ 51,430 $ 31,884 161.3%
--------- ---------
Premiums and other considerations
ILAD $ 208 $ 71 $ 27 $ 164 16.5%
AMS 27 0 0 27 0.0%
Specialty 153 99 0 54 0.0%
Accident and Health 292 281 3 14 21.4%
--------- --------- --------- ---------
TOTAL $ 680 $ 451 $ 30 $ 259 37.9%
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
S-3
<PAGE>
Exhibit 1.A.(1)
ITT HARTFORD [Letterhead]
CERTIFICATION
I, Bruce D. Gardner, Secretary of Hartford Insurance Company, hereby
certify that the attached is a true copy of a resolution adopted by the Board of
Directors of said Company on September 21, 1992.
/s/ Bruce D. Gardner
------------------------------
Secretary
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
CONSENT OF DIRECTORS
The undersigned, being all of the Directors of Hartford Life Insurance Company
("Company"), hereby consent to the following actions in lieu of a quarterly
meeting.
OFFICER ELECTIONS
Resolved, that the following named individuals are hereby elected to the office
of the Company set forth opposite their names to serve at the pleasure of the
Board or until the next annual meeting or until their successor is elected:
Howard A. York Executive Vice President &
Chief Investment Officer
David A. Hall Senior Vice President & Actuary
Juliana B. Dalton Vice President
Kevin L. Kirk Vice President
Andrew W. Kohnke Vice President
Morris W. Kutcher Vice President
William H. Panning Vice President
Patrick D. McCabe Assistant Vice President
William P. Meaney Assistant Vice President
Jill A. Fields Assistant Vice President
Tracy T. Eccles Assistant Vice President
Luis F. Londono Assistant Vice President
John D. Wiggin Assistant Vice President
Gerald M. Lambert Assistant Vice President
Craig D. Raymond Assistant Vice President
Timothy M. Fitch Assistant Vice President
Ann M. de Raismes Assistant Vice President
Robert F. Nolan Assistant Vice President
Lizabeth L. H. Zlatkus Assistant Vice President
John R. Obermeier, III Actuary
Stephen J. Rulis Associate Actuary
Victor A. Bertolozzi, Jr. Assistant Actuary
David S. Mogul Assistant Actuary
VARIABLE LIFE AUTHORITY - MICHIGAN
RESOLVED, that Company is hereby authorized to establish the standards of
conduct for the Company, its officers, directors, employees and affiliates with
respect to investments of variable life insurance separate accounts and variable
life insurance operations.
FURTHER RESOLVED, unless otherwise approved in writing by a commissioner in
advance of the transaction, with respect to variable life insurance separate
accounts, the Company or affiliate thereof shall not:
1. Sell to, or purchase from, any such separate account established by the
insurer any securities or other property, other than variable life
insurance policies.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
1992 THIRD QUARTER CONSENT OF DIRECTORS
PAGE 2
2. Purchase, or allow to be purchased for any such separate account, any
securities of which the insurer or an affiliate is the issuer.
3. Accept any compensation, other than a regular salary or wages from such
insurer or affiliate, for the sale or purchase of securities to or from any
such separate account other than as provided in 6.c. below.
4. Engage in any joint transaction, participation, or common undertaking
whereby such insurer or an affiliate participates with such a separate
account in any transaction in which an insurer or any of its affiliates
obtains an advantage in the price or quality of the item purchased, in the
service received, or in the cost of such service and the insurer or any of
its other affiliates is disadvantaged in any of these respects by the same
transaction.
5. Borrow money or securities from any such separate account other than under
a policy loan provision.
6. No provision of this resolution shall be construed to prohibit any of the
following:
a. The investment of separate account assets in securities issued by 1 or
more investment companies registered pursuant to the Investment
Company Act of 1940 which is sponsored or managed by the insurer or an
affiliate, and the payment of investment management or advisory fees
on such assets.
b. The combination of orders for the purchase or sale of securities for
the Company, an affiliate thereof, any separate accounts, or any 1 or
more of them, which is for their mutual benefit or convenience so long
as any securities so purchased or the proceeds of any sale thereof are
allocated among the participants on some predetermined basis expressed
in writing which is designed to assure the equitable treatment of all
participants.
c. Company or an affiliate to act as a broker or dealer in connection
with the sale of securities to or by such separate account; however,
any commission fee or remuneration charged therefor shall not exceed
minimum broker's commission established for any such transaction by
any national securities exchange through which such transaction could
be effected or such charges prevailing for arm's length transactions
in the ordinary course of business in the community where such
transaction is effected.
ESTABLISHMENT OF SEPARATE ACCOUNT
RESOLVED, that the Company is hereby authorized to establish a separate account
designated Separate Account VL I in accordance with state insurance laws and to
issue variable life insurance contracts with reserves for such contracts being
segregated in such separate account.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
1992 THIRD QUARTER CONSENT OF DIRECTORS
PAGE 3
RESOLVED, that the Officers of the Company are hereby authorized and directed to
take all actions necessary to:
1. Designate or redesignate the Accounts as such Officers deem
appropriate;
2. Comply with applicable state and federal laws and regulations
applicable to the establishment and operation of the Account;
3. Establish, from time to time, the terms and conditions pursuant to
which interests in the Accounts will be sold to contract owners; and
4. Establish all procedures, standards and arrangements necessary or
appropriate for the operation of the Accounts.
DISCONTINUANCE OF SEPARATE ACCOUNT Y
RESOLVED, that, the discontinuance of Separate Account Y effective July 1, 1992
at 12:00 p.m. EDT (noon) and the transfer of any remaining assets in Separate
Account Y to the Company's General Account is hereby ratified.
FURTHER RESOLVED, that the Officers of the Company are hereby authorized and
directed to take all actions necessary to effect this discontinuance.
/s/ Edward N. Bennett /s/ Donald R. Frahm
- ----------------------------------- -----------------------------------
Edward N. Bennett Donald R. Frahm
/s/ John P. Ginnetti /s/ Larry K. Lance
- ----------------------------------- -----------------------------------
John P. Ginnetti Larry K. Lance
/s/ David J. McDonald /s/ Lowndes A. Smith
- ----------------------------------- -----------------------------------
David J. McDonald Lowndes A. Smith
/s/ Michael S. Wilder /s/ Howard A. York
- ----------------------------------- -----------------------------------
Michael S. Wilder Howard A. York
/s/ Donald J. Znamierowski
----------------------------
Donald J. Znamierowski
Dated: September 30, 1992
<PAGE>
Exhibit I A.(3)(a)
PRINCIPAL UNDERWRITER AGREEMENT
THIS AGREEMENT, dated as of the 21st day of September, 1992, made by and between
HARTFORD LIFE INSURANCE COMPANY ("HLIC" or the "Sponsor"), a corporation
organized and existing under the laws of the State of Connecticut, and HARTFORD
EQUITY SALES COMPANY, INC. ("HESCO"), a corporation organized and existing under
the laws of the State of Connecticut,
WITNESSETH:
WHEREAS, the Board of Directors of HLIC has made provision for the
establishment of a separate account within HLIC in accordance with the laws
of the State of Connecticut, which separate account was organized and is
established and registered as a unit trust type investment company with the
Securities and Exchange Commission under the Investment Company Act of
1940, as amended, and which is designated Hartford Insurance Company
Separate Account VL I (referred to as the "Unit Trust"); and
WHEREAS, HESCO offers to the public a certain Individual Modified Flexible
Premium Variable Life Insurance Policies policy (the "Policy") issued by
HLIC with respect to the Unit Trust unites of interest thereunder which are
registered under the Securities Act of 1933, as amended; and
WHEREAS, HESCO has previously agreed to act as distributor in connection
with offers and sales of the Policy under the terms and conditions set
forth in this Distribution Agreement;
NOW THEREFORE, in consideration of the mutual agreements made herein, the
Sponsor and HESCO agree as follows:
I.
HESCO'S DUTIES
1. HESCO, as principal underwriter for the Policy, will use its best efforts
to effect offers and sales of the Policy through broker-dealers that are
members of the National Association of Securities Dealers, Inc. and whose
registered representatives are duly licensed as insurance agents of HLIC.
HESCO is responsible for compliance with all applicable requirements of the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, and the Investment Company Act of 1940, as amended, and the rules
and regulations relating to the sales and distribution of the Policy, the
need for which arises out of its duties as principal underwriter of said
Policy and relating to the creation of the Unit Trust.
<PAGE>
2. HESCO agrees that it will not use any prospectus, sales literature, or any
other printed matter or material or offer for sale or sell the Policy if
any of the foregoing in any way represent the duties, obligations, or
liabilities of HLIC as being greater than, or different from, such duties,
obligations and liabilities as are set forth in this Agreement, as it may
be amended from time to time.
3. HESCO agrees that it will utilize the then currently effective prospectus
relating to the Unit Trust's Policies in connection with its selling
efforts.
As to the other types of sales materials, HESCO agrees that it will use
only sales materials which conform to the requirements of federal and state
insurance laws and regulations and which have been filed, where necessary,
with the appropriate regulatory authorities.
4. HESCO agrees that it or its duly designed agent shall maintain records of
the name and address of, and the securities issued by the Unit Trust and
held by, every holder of any security issued pursuant to this Agreement, as
required by the Section 26(a)(4) of the Investment Company Act of 1940, as
amended.
5 HESCO's services pursuant to this Agreement shall not be deemed to be
exclusive, and it may render similar services and act as an underwriter,
distributor, or dealer for other investment companies in the offering of
their shares.
6. In the absence of willful misfeasance, bad faith, gross negligence, or
reckless disregard of its obligations and duties hereunder on the part of
HESCO, HESCO shall not be subject to liability under a Policy for any act
or omission in the course, or connected with, rendering services hereunder.
II.
1. The Unit Trust reserves the right at any time to suspend or limit the
public offering of the Policies upon thirty days' written notice to HESCO,
except where the notice period may be shortened because of legal action
taken by any regulatory agency.
2. The Unit Trust agrees to advice HESCO immediately:
(a) Of any request by the Securities and Exchange Commission for amendment
of its Securities Act registration statement or for additional
information;
(b) Of the issuance by the Securities and Exchange Commission of any stop
order suspending the effectiveness of the Securities Act registration
statement relating to units of interest issued with respect to the
Unit Trust or of the initiation of any proceedings for that purpose;
<PAGE>
(c) Of the happening of any material event, if known, which makes untrue
any statement in said Securities Act registration statement or which
requires change therein in order to make any statement therein not
misleading.
HLIC will furnish to HESCO such information with respect to the Unit Trust
and the Policies in such from and signed by such of its officers and
directors and HESCO may reasonable request and will warrant that the
statements therein contained when so signed will be trust and correct.
HLIC will also furnish, from time to time, such additional information
regarding the Unit Trust's financial condition as HESCO may reasonably
request.
III.
COMPENSATION
For providing the principal underwriting functions on behalf of the Unit Trust,
HESCO shall be entitled to receive compensation as agreed upon from time to time
by HLIC and HESCO.
IV.
RESIGNATION AND REMOVAL OF
PRINCIPAL UNDERWRITER
HESCO may resign as an Principal Underwriter hereunder, upon 120 days' prior
written notice to HLIC. However, such registration shall no become effective
until either the Unit Trust has been completely liquidated and the proceeds of
the liquidation distributed through HLIC to the Policy Owners or a successor
Principal Underwriter has been designated and has accepted its duties.
V.
MISCELLANEOUS
1. This Agreement may not be assigned by any of the parties hereto without the
written consent of the other party.
2. All notices and other communications provided for hereunder shall be in
writing and shall be delivered by hand or mailed first class, postage pre-
paid, addressed as follows:
(a) If to HLIC - Hartford Insurance Company, P.O. Box 2999,
Hartford, Connecticut, 06104.
(b) If to HESCO - Hartford Equity Sales Company, Inc., P.O. Box
2999, Hartford, Connecticut, 06104.
or to such other address as HESCO or the Sponsor shall designate by written
notice to the other.
<PAGE>
3. This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original and all of which shall be deemed one
instrument, and an executed copy of this Agreement and all amendments
hereto shall be kept on file by the Sponsor and shall be open to
inspection any any time during the business hours of the Sponsor.
4. This Agreement shall inure to the benefit of and be binding upon the
successor of the parties hereto.
5. This Agreement shall be construed and governed by and according to the laws
of the State of Connecticut.
6. This Agreement may be amended from time to time by the mutual agreement and
consent of the parties hereto.
7. (a) This Agreement shall become effective September 21, 1992, and shall
continue in effect for a period of two years from that date and,
unless sooner terminated in accordance with 7(b) below, shall continue
in effect from year to year thereafter provided that its continuance
is specifically approved at least annually by a majority of the
members of the Board of Directors of HLIC.
(b) This Agreement (1) may be terminated at any time, without the
payment of any penalty, either by a vote of a majority of the members
of the Board of Directors of HLIC on sixty days prior written notice
to HESCO; (2) shall immediately terminate in the event of its
assignment and (3) may be terminated by HESCO on sixty days prior
written notice to HLIC, but such termination will not be effective
until HLIC shall have policy with one or more persons to act as
principal underwriter of the Policies. HESCO hereby agrees that it
will continue to act as principal underwriter until its successor or
successors assume such undertaking.
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.
(Seal) HARTFORD LIFE INSURANCE COMPANY
Attest:
/s/ Bruce D. Gardner BY: /s/ John P. Ginnetti
- ----------------------------------- -------------------------------
Bruce D. Gardner John P. Ginnetti
Secretary Senior Vice President
(Seal) HARTFORD EQUITY SALES COMPANY, INC.
Attest:
/s/ Bruce D. Gardner BY: /s/ John P. Ginnetti
- ----------------------------------- -------------------------------
Bruce D. Gardner John P. Ginnetti
Secretary Senior Vice President
<PAGE>
SALES AGREEMENT
1.0 APPOINTMENT
1.1 The Hartford Insurance Company(ies) named in the Sales Agreement
Specifications Page and, with respect to SEC Registered contracts, if
applicable, Hartford Equity Sales Company, Inc., as Principal
Underwriter, (hereinafter collectively referred to as "Company") hereby
appoint the named individual(s) or organization(s) as "Agent" of Company
for the solicitation and procurement of applications for insurance
contracts (hereinafter referred to as "Contracts") in the line(s) of
business set forth in the Sales Agreement Specifications Page, in all
states in which Company is authorized to do business and in which Agent
is properly licensed and appointed, without exclusive representation.
2.0 AUTHORITY
2.1 Agent has the power or authority to represent Company only to the extent
expressly granted in this Agreement and no further power or authority is
implied.
2.2 Nothing contained herein is intended to create a relationship of
employer and employee between Company and Agent. Agent and, if
applicable, any sub-agents appointed by Agent, shall be independent
contractors as to Company and free to exercise their own judgment as to
the time, place and means of performing all acts hereunder, but they
shall conform to all regulations of Company not unreasonably interfering
with freedom of action or judgment.
2.3 This Agreement terminates all previous agency agreements, if any,
between Company and Agent. However, the execution of this Agreement
shall not affect any obligations which have already accrued under any
prior agreement.
2.4 Agent does not have the authority to collect premiums for each line of
business, other than initial premiums, unless specifically set forth in
the applicable commission schedule.
2.5 If Agent is listed on the Specifications Page as a Broker or General
Agent, Agent is authorized to procure and solicit applications for
Contracts through sub-agents which Agent may appoint with the approval
of Company. No agreement between Agent and any sub-agent shall impose
any liability or obligation upon Company unless Company is a party
thereto in writing. All sub-agents shall be duly licensed under the
applicable insurance laws to sell annuity, life and health insurance
contracts by the proper authorities in the jurisdictions in which Agent
proposes to offer such Contracts. The sub-agents shall indicate in each
application for a Contract that it has been solicited on behalf of
Agent.
2.5.1 Agent shall supervise any sub-agents appointed by Agent to
solicit sales of the Contracts and Agent shall be responsible
for all acts and omissions of each sub-agent within the scope
of his agency appointment at all times. Agent shall exercise
all responsibilities required by the applicable federal and
state law and regulations. Company shall not have any
responsibility for the supervision of any sub-agents of Agent.
-1-
<PAGE>
2.5.2 Company may, by written notice to Agent, refuse to permit any
sub-agent to solicit applications for the sales of any of the
Contracts hereunder and may, by such notice, require Agent to
cause any such sub-agent to cease any such solicitation or
sales, and, Company may require Agent to cancel the appointment
of any sub-agent with Company.
2.6 If Agent is assigned a different Agent Class for different Lines of
Business, the provisions of this Agreement, which specifically relate
only to a particular Agent Class shall only apply to Agent in
transacting that Line of Business for which the Agent is so classified,
if any.
3.0 COMPENSATION
3.1 Company will pay Agent as full compensation hereunder, commissions
and/or service fees on premiums paid to Company on account of Contracts
issued upon applications procured pursuant to this Agreement and while
this Agreement is in effect.
3.1.1 Commission and/or service fees will be paid in the amounts and
for the periods of time as set forth in the Commission
Schedules included in this Agreement or subsequently made a
part hereof, and which are in effect at the time such Contracts
are sold.
3.1.2 The Commission Schedules included in this Agreement are subject
to change by Company at any time, but only upon written notice
to Agent. No such change shall affect any Contracts issued
upon applications received by Company at Company's Home Office
prior to the effective date of such change.
3.1.3 Any Commission Schedule included in this Agreement or
subsequently made a part hereof may provide other or additional
conditions regarding compensation and if so, will be
controlling to the extent of the other or additional
conditions.
3.2 Compensation will be earned by Agent only for those applications
accepted by Company, and only after receipt by Company at Company's Home
Office in Hartford, Connecticut, or at such other location as the
Company may designate, from time to time, in regard to its various lines
of Business, of the required premium and compliance by Agent with any
outstanding delivery requirements.
3.2.1 No compensation will be earned or paid on premiums (other than
premiums on health insurance contracts) waived by Company
pursuant to any "waiver of premium" provision.
3.2.2 Should Company for any reason return any premium on a policy
issued hereunder, Agent agrees to repay Company the total
amount of any compensation which may have been paid thereon
within thirty (30) business days of notice of such refund.
-2-
<PAGE>
3.3 Any compensation otherwise payable to Agent in accordance with
this Section 3.0 shall be reduced by the amount so such
compensation paid directly, at the direction of Agent, by Company
to any person, or, in connection with group policies, by the
amounts paid by Company to a resident licensed agent in a state
which requires the countersignature by, or the effectuating of the
insurance through, a resident licensed agent.
3.4 In the event of termination of this Agreement for one or more of
the reasons specified in Subsections 6.2.2 or 6.2.3 below, no
further commissions or other compensation shall thereafter be
payable.
3.5 In the event of termination in accordance with Subsection 6.1
below if in any calendar year following such termination the
aggregate commissions payable hereunder for all life and health
policies total less than $100.00, no further commissions shall be
payable hereunder, other references to vesting to the contrary not
withstanding.
4.0 GENERAL PROVISIONS
4.1 Agent shall cooperate with Company in the investigation and
settlement of all claims against Agent and/or Company relating to
the solicitation or sale of Contracts under this Agreement. Agent
shall promptly forward to Company any notice of claim or other
relevant information which may come into Agent's possession.
4.2 Agent shall keep full and accurate records of the business
transacted by Agent under this Agreement and shall forward to
Company such reports of said business as Company may prescribe.
Company shall have the right to examine said records at reasonable
times. All rate books, manuals, forms, supplies and any other
properties furnished by Company and in the possession of Agent
shall be returned to Company on termination of this Agreement.
4.3 Agent shall bear all of Agent's expenses incurred in the
performance of this Agreement.
4.4 Agent shall have a duty to obtain applications for Company and,
where appropriate, to conserve and renew coverage placed with
Company.
4.5 All applications for the purchase of Contracts shall be subject to
acceptance by Company. Company reserves the right to prescribe
conditions, rules and regulations for the offer and acceptance of
its Contracts, which may be changed from time to time and which
shall be forwarded to Agent.
4.6 Company reserves the right to modify, change or discontinue the
offering or any form of Contract at any time.
4.7 Except in regard to Commission Schedule changes as stated in
Subsections 3.1.2, no waiver or modification of this Agreement
will be effective unless it be in writing and signed by a duly
authorized officer of Company and Agent or a duly authorized
officer of Agent.
-3-
<PAGE>
4.8 The failure of Company to enforce any provisions of this Agreement
shall not constitute a waiver of any such provision. The past
waiver of a provision by Company shall not constitute a course of
conduct or a waiver in the future of that same provision.
4.9 In the event any legal process or notice is served on Agent in a
suit or proceeding against Company, Agent shall forward forthwith
such process or notice to Company at its Home Office in Hartford,
Connecticut, by certified mail.
4.10 Agent shall not use any advertising material, prospectus,
proposal, or representation either in general or in relation to a
Contract of Company unless furnished by Company or until the
consent of Company shall have been first secured. Agent shall not
issue or recirculate any illustration, circular, statement or
memorandum of any sort, misrepresenting the terms, benefits or
advantages of any Contract issued by Company, or make any
misleading statement as to benefits to be received thereon, or as
to the financial position of Company.
4.11 Agent shall indemnify and save Company harmless from any loss or
expense on account of any unauthorized act or transaction by
Agent, or persons employed or appointed by Agent, or any claim by
a sub-agent of Agent for compensation due or to become due on
account of such sub-agent's sale of Contracts.
4.11.1 Agent expressly authorizes Company to charge against all
compensation due or to become due to Agent under this
Agreement any monies paid or liabilities incurred by
Company under this Subsection 4.11.
4.12 Company shall indemnify and save Agent harmless from any liability
resulting from damages sustained by a policy owner or certificate
owner caused by acts or omissions of Company; except to the extent
Agent's acts or omissions caused such liability. Indemnification
by Company is subject to the conditions that Agent promptly notify
Company of any claim or suit made against Agent, and that Agent
allow Company to make such investigation, settlement, or defense
thereof as Company deems prudent.
4.13 Except to the extent permitted by law, Agent shall not offer or
pay any rebate of premium or make any offer of any other
inducement not specified in the Contracts to any person to insure
with Company. Agent shall not make any misrepresentation or
incomplete comparison for the purpose of inducing a policyholder
in any other company to lapse, forfeit or surrender its insurance
therein.
4.14 No assignment of this Agreement, or commissions payable hereunder,
shall be valid unless authorized in writing by Company. Every
assignment shall be subject to any indebtedness and obligation of
Agent that may be due or become due to Company and any applicable
state insurance regulations pertaining to such assignments.
4.15 Company may at any time deduct, from any monies due under this
Agreement, every indebtedness or obligation of Agent to Company or
to any of its affiliates.
-4-
<PAGE>
4.15.1 On termination of this Agreement, any outstanding
indebtedness to Company shall become immediately due and
payable.
5.0 LIMITATION OF AUTHORITY
5.1 Agent is not authorized, and is expressly forbidden on behalf of
Company, to incur any indebtedness or liability, or to make, alter
or discharge agreements, or to waive forfeitures, extend the time of
payment of any premium, waive payment in cash, or to receive any
money due or to become due Company, except as specifically provided
in this Agreement.
5.2 No individual Contract providing life, health or disability
insurance coverage shall be delivered if a sub-agent or Agent has
knowledge that the health of the proposed insured has changed since
the application was taken or unless the first premium has been fully
paid and delivery made by the delivery date specified by Company or,
if no delivery date is specified, within sixty (60) days from the
date said Contract is mailed from Company's Home Office.
5.2.1 Any Contract not delivered, in accordance with this
Subsection 5.2, shall be returned to Company immediately.
6.0 TERMINATION
6.1 This entire Agreement may be terminated by either party by giving
thirty (30) days' notice in writing to the other party.
6.1.1 Such notice of termination shall be mailed to the last known
address of Agent appearing on Company's records, or in the
event of termination by Agent, to the Home Office of Company
at P.O. Box 2999, Hartford, Connecticut 06104-2999.
6.1.2 Such notice shall be an effective notice of termination of
this Agreement as of the time the notice is deposited in the
United States mail or the time of actual receipt of such
notice if delivered by means other than mail.
6.2 This Agreement shall automatically terminate without notice upon the
occurrence of any the events set forth below:
6.2.1 Upon the bankruptcy or dissolution of Agent provided,
however, that if there is more than one Agent, the Agreement
shall automatically terminate only with respect to the
bankrupt or dissolved Agent.
6.2.2 When and if Agent commits fraud or gross negligence in the
performance of any duties imposed upon Agent by this
Agreement or wrongfully withholds or misappropriates, for
Agent's own use, funds of Company, its policyholders or
applicants.
-5-
<PAGE>
6.2.3 When and if Agent materially breaches this Agreement or
materially violates the insurance or Federal or State
securities laws of a state in which Agent transacts
business.
6.2.4 When and if Agent fails to obtain renewal of a necessary
license in any jurisdiction, but only as to that
jurisdiction.
6.3 The provisions of Sections 3.0, 4.0 and 5.0 and (if applicable)
Subsection 7.5 (if applicable) shall survive the termination of this
Agreement, as appropriate.
7.0 SEC REGISTERED CONTRACTS (IF APPLICABLE)
7.1 If Agent is listed on the Specifications Page as a Broker or General
Agent, and an NASD registered Broker-Dealer, Agent agrees that, with
respect to SEC Registered Contracts, Agent has full responsibility
for the training and supervision of all persons, including sub-
agents of Agent, associated with Agent who are engaged directly or
indirectly in the offer or sale or such Contracts and that all such
persons shall be subject to the control of Agent with respect to
such persons' activities in connection with the Contracts. Agent
will cause the sub-agents to be trained in the sale of the Contracts
and will cause such sub-agents to be registered representatives of
Agent before such sub-agents engage in the offer or sale of the
Contracts. Agent shall cause Agent's sub-agents' qualifications to
be certified to the satisfaction of Company and shall notify Company
if any sub-agents cease to be registered representatives of Agent.
7.1.1 Agent will fully comply with the requirements of the
National Association of Securities Dealers, Inc. and of the
Securities Exchange Act of 1934 and all other applicable
federal or state laws and will establish such rules and
procedures as may be necessary to cause diligent supervision
of the securities activities of the sub-agents. Upon
request by Company, Agent shall furnish any records
necessary to establish such diligent supervision.
7.1.2 Before a sub-agent is permitted to solicit and procure
applications for the Contracts, Agent and the sub-agent
shall have entered into an agreement pursuant to which the
sub-agent will be appointed a sub-agent and a registered
representative of Agent and in which the sub-agent will
agree that his selling activities relating to the Contracts
will be under the supervision and control of Agent, and the
sub-agent's right to continue to sell such Contracts is
subject to his continued compliance with such agreement.
7.1.3 In the event a sub-agent fails or refuses to submit to
supervision of Agent in accordance with this Agreement, or
otherwise fails to meet the rules and standards imposed by
Agent, Agent shall immediately notify such sub-agent that he
is no longer authorized to sell the Contracts, and Agent
shall take whatever additional action may be necessary to
terminate the sales activities of such sub-agent relating to
the Contracts including immediate notification of Company of
such termination.
-6-
<PAGE>
7.2 If Agent is not NASD Registered Broker/Dealer but is a member of an
affiliated group of legal entities one of which is an NASD
Registered Broker/Dealer ("Broker/Dealer") and a party to this
Agreement, Agent agrees that, with respect to SEC Registered
Contracts, the sub-agents of Agent shall be registered
representatives of such Broker/Dealer.
7.2.1 As appropriate, any reference in this Agreement to Agent
shall apply equally to such Broker/Dealer.
7.2.2 Each Agent which is not a Broker/Dealer hereby directs
Company to pay any compensation due, pursuant to Section 3,
to the Broker/Dealer.
7.2.3 If Agent is not a Broker/Dealer but is a member of an
affiliated group of legal entities, one of which is a
Broker/Dealer and a party to this Agreement, Agent and
Broker/Dealer agree that, with respect to SEC Registered
Contracts, Agent and Broker/Dealer have responsibility for
the training and supervision of all registered
representatives of Broker/Dealer and who are sub-agents of
Agent and who are engaged directly or indirectly in the
offer or sale of such SEC Registered Contracts and that all
such representatives shall be subject to the control of
Agent and Broker/Dealer with respect to their activities in
connection with the SEC Registered Contracts.
7.3 If Agent is neither an NASD Registered Broker-Dealer nor a member of
an affiliated group of legal entities one of which is a
Broker/Dealer, Agent and any sub-agents shall be registered
representatives of Hartford Equity Sales Company, Inc.
7.4 The provisions of Subsection 3.5 do not apply to any SEC Registered
Contracts.
7.5 With respect to SEC Registered Contracts, if Agent is disqualified
for continued registration with the NASD, Company shall not be
obligated to pay any compensation, if such payment would constitute
a violation of NASD rules.
7.6 In respect to SEC Registered Contracts, Agent agrees not to make
written or oral representations except such as are contained in
current prospectuses and authorized supplementary sales literature
made available by Company. Agent also agrees to comply with the
Securities and Exchange Commission Statement of Policy and the
regulations thereunder of the National Association of Securities
Dealers, Inc.
7.7 As to SEC Registered Contracts only, when and if Agent is
disqualified for continued membership with the NASD or registration
with the Securities and Exchange Commission, this Agreement shall
automatically terminate without notice.
7.8 All other provisions of this Agreement apply to the sale of SEC
Registered Contracts.
-7-
<PAGE>
Hartford Life Insurance Company
Hartford, Connecticut 06104-2999
(A stock insurance company)
National Service Center Address:
P.O. Box 59179
Minneapolis, Minnesota 55459
Will pay the Death Proceeds to the Beneficiary upon receipt at Our National
Service Center in Minneapolis, Minnesota of due proof of the Insured's death
while this policy was in force.
Signed for the Company
/s/ Bruce D. Gardner /s/ Lowndes A. Smith
Bruce D. Gardner, SECRETARY Lowndes A. Smith, PRESIDENT
READ YOUR POLICY CAREFULLY
This is a legal contract between You and Us.
RIGHT TO EXAMINE POLICY
We want You to be satisfied with the policy You have purchased. We urge You to
examine it closely. If, for any reason, You are not satisfied, You may
deliver or mail the policy to Us or to the agent from whom it was purchased
within ten days after You receive it or within 45 days after You sign the
application, whichever is later. Upon delivery or mailing, the policy will be
rescinded and any premium paid will be refunded in full.
CASH SURRENDER VALUE PAYABLE ON MATURITY DATE
DEATH PROCEEDS PAYABLE AT DEATH
SCHEDULED PREMIUMS PAYABLE DURING INSURED'S LIFETIME
PROVISION FOR ADDITIONAL UNSCHEDULED PREMIUMS
NON-PARTICIPATING
THE PORTIONS OF THE CASH VALUES PROVIDED BY THIS CONTRACT THAT ARE IN THE SUB-
ACCOUNTS ARE BASED ON THE INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT. THEY ARE
VARIABLE AND NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT. THE AMOUNT OF THE DEATH
BENEFIT MAY BE FIXED OR VARIABLE DEPENDING ON THE INVESTMENT EXPERIENCE OF THAT
SEPARATE ACCOUNT. DEATH BENEFIT GUARANTEED DURING THE GUARANTEE PERIOD IF
SCHEDULED PREMIUMS ARE PAID WHEN DUE AND NO LOANS OR WITHDRAWALS ARE TAKEN. SEE
PAGE 7 FOR A DESCRIPTION OF THE DEATH BENEFIT.
MODIFIED FLEXIBLE
PREMIUM VARIABLE
LIFE INSURANCE
POLICY
<PAGE>
TABLE OF CONTENTS
Page
Policy Specifications 3
Definitions 5
Death Benefit 7
Premiums 8
Valuation Provisions 11
Account Value, Cash Value and Cash Surrender Value 11
Monthly Deduction Amount 12
Transfers 13
Termination and Maturity Date 14
Reinstatement 14
Non-Forfeiture Options 15
Policy Loans 16
Partial Withdrawals 18
Payments by Us 18
Taxation 18
The Contract 18
Ownership and Beneficiary 20
Exchange Option 20
Income Settlement Options 21
Riders Follow Page 22
PAGE 2
<PAGE>
POLICY SPECIFICATIONS
DATE OF ISSUE: JANUARY 1, 1991 INSURED: JOHN S. DOE
POLICY DATE: JANUARY 1, 1991 ISSUE AGE/SEX: 35 MALE
GUARANTEE PERIOD: 10 YEARS INSURANCE CLASS: PREFERRED
MATURITY DATE: JANUARY 1, 2056 INITIAL FACE AMOUNT: $250,000
DEATH BENEFIT OPTION: LEVEL POLICY NUMBER: VLOOOOOO1
OWNER: JOHN DOE PREMIUM MODE: ANNUAL
BENEFICIARY: JANE DOE FIRST SCHEDULED PREMIUM: $1,956.76
SCHEDULE OF PREMIUMS
<TABLE>
<CAPTION>
YEARS PAYABLE
MODIFIED FLEXIBLE PREMIUM
VARIABLE LIFE INSURANCE POLICY
WITH WAIVER OF PREMIUM RIDER
<S> <C> <C>
ANNUAL SCHEDULED PREMIUM: $1,956.76 1-65
MODE FACTOR: 1.00
--------------
SCHEDULED PREMIUM: $1,956.76
MONTHLY CHARGES FOR ADDITIONAL
BENEFITS, RATINGS, AND RIDERS
ACCIDENTAL DEATH BENEFIT: $1.00 1-30
DEDUCTION AMOUNT WAIVER RIDER: $1.00 1-30
</TABLE>
MODE FACTORS
ANNUAL: 1.00 SEMI-ANNUAL: 0.51 QUARTERLY: 0.26 MONTHLY: 0.09
PAGE 3
<PAGE>
POLICY NUMBER: VLOOOOOO1
NAME OF INSURED: JOHN S. DOE
ISSUE AGE/SEX: 35/M
POLICY SPECIFICATIONS
LIST OF SUBACCOUNTS AND FUNDS
EACH SUBACCOUNT OF THE HARTFORD LIFE INSURANCE COMPANY SEPARATE ACCOUNT VL I
INVESTS IN A SPECIFIC FUND OF EITHER THE HARTFORD OR THE PUTNAM CAPITAL MANAGER
LISTED BELOW ARE THE SUBACCOUNTS AND THE FUNDS THEY INVEST IN.
SUBACCOUNT FUND
HARTFORD BOND/DEBT SECURITIES HARTFORD BOND/DEBT SECURITIES
HARTFORD STOCK HVA STOCK
HARTFORD MONEY MARKET HVA MONEY MARKET
HARTFORD ADVISERS HVA ADVISERS
HARTFORD AGGRESSIVE GROWTH HVA AGGRESSIVE GROWTH
HARTFORD GNMA/MORTGAGE SECURITIES HARTFORD GNMA/MORTGAGE SECURITIES
HARTFORD INDEX HARTFORD INDEX
HARTFORD INTERNATIONAL OPPORTUNITIES HARTFORD INTERNATIONAL OPPORTUNITIES
PUTNAM GLOBAL GROWTH PCM GLOBAL GROWTH
PUTNAM GROWTH AND INCOME PCM GROWTH AND INCOME
PUTNAM HIGH YIELD PCM HIGH YIELD
PUTNAM MONEY MARKET PCM MONEY MARKET
PUTNAM MULTI-STRATEGY PCM MULTI-STRATEGY
PUTNAM U.S. GOVERNMENT AND PCM U.S. GOVERNMENT AND
HIGH QUALITY BOND HIGH QUALITY BOND
PUTNAM VOYAGER PCM VOYAGER
PUTNAM UTILITIES GROWTH AND INCOME PCM UTILITIES GROWTH AND INCOME
INITIAL ALLOCATION OF NET PREMIUMS: HARTFORD MONEY MARKET SUBACCOUNT 100%
TABLE OF TARGET ACCOUNT VALUES
YEAR TARGET ACCOUNT VALUE
1 2,123.22
2 3,562.18
3 5,015.97
4 6,516.46
5 8,078.66
6 9,715.23
7 11,427.49
8 13,219.82
9 15,093.96
THE ABOVE TARGET ACCOUNT VALUES ARE USED TO DETERMINE WHETHER OR NOT SCHEDULED
PREMIUMS DUE DURING THE GUARANTEE PERIOD ARE REQUIRED. SEE THE PREMIUMS SECTION
OF CONTRACT FOR MORE DETAIL.
GUIDELINE ANNUAL PREMIUM: $2,794.43
THE GUIDELINE ANNUAL PREMIUM IS USED BY THE SEC TO DETERMINE MAXIMUM ALLOWABLE
SALES LOADS.
PAGE 3A
<PAGE>
POLICY NUMBER: VL0000001
NAME OF INSURED: JOHN S. DOE
ISSUE AGE/SEX: 35/M
POLICY SPECIFICATIONS
TABLE OF MINIMUM DEATH BENEFIT PERCENTAGES
AND MONTHLY MAXIMUM COST OF INSURANCE RATES PER $1,000
<TABLE>
<CAPTION>
MAXIMUM MAXIMUM
MINIMUM COST OF MINIMUM COST OF
ATT DEATH BENEFIT INSURANCE ATT DEATH BENEFIT INSURANCE
AGE PERCENTAGES RATE AGE PERCENTAGES RATE
<S> <C> <C> <C> <C> <C>
35 424.16 0.0770 68 156.15 2.4930
36 409.19 0.0880 69 152.76 2.7480
37 394.97 0.1090 70 149.53 3.0370
38 381.32 0.1200 71 146.48 3.3660
39 368.15 0.1270 72 143.61 3.7460
40 355.41 0.1310 73 140.92 4.1760
41 343.10 0.1360 74 138.40 4.6480
42 331.19 0.1410 75 136.04 5.1530
43 319.69 0.1470 76 133.83 5.6870
44 308.54 0.1490 77 131.74 6.2440
45 298.70 0.2880 78 129.76 6.8290
46 289.24 0.3110 79 127.89 7.4600
47 280.14 0.3360 80 126.11 8.1570
48 271.37 0.3630 81 124.44 8.9380
49 262.94 0.3930 82 122.88 9.8180
50 254.84 0.4280 83 121.43 10.7950
51 247.06 0.4670 84 120.10 11.8480
52 239.59 0.5120 85 118.87 12.9540
53 232.44 0.5630 86 117.72 14.0980
54 225.59 0.6210 87 116.65 15.2630
55 219.03 0.6850 88 115.62 16.4440
56 212.76 0.7550 89 114.61 17.6580
57 206.75 0.8290 90 113.61 18.9210
58 201.00 0.9120 91 112.58 20.2630
59 195.49 1.0040 92 111.50 21.7350
60 190.22 1.1080 93 110.33 23.4790
61 185.19 1.2230 94 109.06 25.8190
62 180.40 1.3550 95 107.72 29.3220
63 175.84 1.5050 96 106.34 35.0830
64 171.50 1.6720 97 105.03 45.0830
65 167.37 1.8540 98 104.00 62.0960
66 163.45 2.0520 99 100.00 83.3330
67 159.71 2.2630
</TABLE>
THE MINIMUM DEATH BENEFIT PERCENTAGES ARE DETERMINED TO COMPLY WITH SECTION 7702
OF THE INTERNAL REVENUE CODE.
THE MAXIMUM COST OF INSURANCE RATES DO NOT EXCEED THE COST OF INSURANCE RATES
BASED ON THE 1980 COMMISSIONERS STANDARD ORDINARY SMOKER/NONSMOKER MORTALITY
TABLES.
PAGE 4
<PAGE>
POLICY NUMBER: VL0000001
NAME OF INSURED: JOHN S. DOE
ISSUE AGE/SEX: 35/M
POLICY SPECIFICATIONS
FIXED ACCOUNT MINIMUM CREDITED RATE: 4.00%
POLICY LOAN INTEREST RATE: 8.00%
PREMIUM FACTORS
<TABLE>
<CAPTION>
PREMIUM PREMIUM NET
CREDIT TAX PREMIUM
FACTOR FACTOR FACTOR
<S> <C> <C> <C>
FOR PREMIUMS PAID IN YEAR 1:
APPLICABLE TO PREMIUMS PAID UP TO $1,956.76 50.00% 2.25% 47.75%
APPLICABLE TO OTHER PREMIUMS: 100.00% 2.25% 97.75%
FOR PREMIUMS PAID IN YEARS 2-10:
APPLICABLE TO PREMIUMS PAID UP TO $2,794.43 89.00% 2.25% 86.75%
APPLICABLE TO OTHER PREMIUMS: 100.00% 2.25% 97.75%
FOR PREMIUMS PAID IN YEAR 11 AND LATER:
APPLICABLE TO PREMIUMS PAID UP TO $2,794.43 97.00% 2.25% 94.75%
APPLICABLE TO OTHER PREMIUMS: 100.00% 2.25% 97.75%
</TABLE>
MAXIMUM MONTHLY ADMINISTRATIVE FEES
<TABLE>
<CAPTION>
<S> <C>
POLICY YEARS 1 - 1 $29.17
POLICY YEARS 2 - 10 $8.33
POLICY YEARS 11 - 65 $12.00
</TABLE>
OTHER FEES AND CHARGES
<TABLE>
<CAPTION>
<S> <C>
TRANSFER CHARGE (FIRST 4 IN ANY YEAR) $0.00
PER TRANSFER IN EXCESS OF 4 IN ANY YEAR $25.00
FACE AMOUNT INCREASE FEE (EACH INCREASE) $100.00
MORTALITY AND EXPENSE RISK RATE 0.000500
</TABLE>
SURRENDER CHARGES
<TABLE>
<CAPTION>
POLICY SURRENDER POLICY SURRENDER
YEAR CHARGE YEAR CHARGE
<S> <C> <C> <C>
1 2,152.45 6 956.65
2 1,913.29 7 717.49
3 1,674.13 8 478.33
4 1,434.97 9 239.17
5 1,195.81 10+ 0.00
</TABLE>
PAGE 4A
<PAGE>
10/19/92
DEFINITIONS The definitions in this section apply to the following words
and phrases whenever and wherever they appear in this
policy.
ACCOUNT VALUE: an amount We use to determine certain policy
benefits and charges. See the Account Value, Cash Value and
Cash Surrender Value provisions for a more detailed
explanation.
ACCUMULATION UNIT: an accounting unit used to calculate the
value of a Sub-Account.
ANNUAL SCHEDULED PREMIUM: initially, the amounts shown on
Page 3 in the Schedule of Premiums.
ATTAINED AGE: the Issue Age plus the number of fully
completed Policy Years.
CASH SURRENDER VALUE: the Cash Value less all indebtedness.
CASH VALUE: the Account Value less any applicable Surrender
Charges.
DATE OF ISSUE: the date shown on Page 3 from which Suicide
and Incontestability provisions are measured.
DEATH BENEFIT OPTION: the Death Benefit Option in effect
determines how the Death Benefit is calculated. The three
Death Benefit Options provided are described in the Death
Benefit section.
DEATH PROCEEDS: the amount which We will pay on the death of
the Insured.
FACE AMOUNT: on the Policy Date, the Face Amount equals the
Initial Face Amount. Thereafter it may change in accordance
with the terms of the Death Benefit provision and the
Partial Withdrawal provision.
FUNDS: the registered open end management investment
companies in which the assets of the Separate Account may be
invested.
GUARANTEE PERIOD: the period which begins on the Policy Date
and continues for the duration shown on Page 3.
INDEBTEDNESS: all outstanding loans on this policy,
including any interest due or accrued.
INITIAL FACE AMOUNT: the amount shown on Page 3.
INSURED: the person whose life is insured under this policy
as shown on Page 3.
IN WRITING: in a written form satisfactory to Us.
ISSUE AGE: as of the Policy Date, the Insured's age on
his/her last birthday.
LOAN ACCOUNT: an account established for any amounts
transferred from the Fixed Account and Sub-Accounts as a
result of loans. The account is credited with interest, and
is not based on the experience of any Separate Account.
MATURITY DATE: the date, shown on Page 3, on which the
policy will mature.
Page 5
<PAGE>
DEFINITIONS
(CONTINUED) MONTHLY ACTIVITY DATE: the Policy Date and the same date in
each succeeding month as the Policy Date except that
whenever the Monthly Activity Date falls on a date other
than a Valuation Day, the Monthly Activity Date will be
deemed the next Valuation Day.
NET PREMIUM: the amount of premium actually credited to the
Account Value. This is the premium paid by You multiplied by
the Net Premium Factor. The Net Premium Factor is shown on
Page 4A.
NET PREMIUM FACTOR: the Premium Credit Factor minus the
Premium Tax Factor.
POLICY ANNIVERSARY: an anniversary of the Policy Date.
Similarly, Policy Years are measured from the Policy Date.
POLICY DATE: the date shown on Page 3 from which Policy
Anniversaries and Policy Years are determined.
POLICY LOAN RATE: the interest rate charged on policy loans.
PREMIUM CREDIT FACTOR: the credit factor shown on Page 4A.
PREMIUM TAX FACTOR: the tax factor shown on Page 4A.
PRO-RATA BASIS: an allocation method based on the proportion
of the Account Value in the Fixed Account and each Sub-
Account.
SCHEDULED PREMIUM: the amount of premium, shown on Page 3,
for which We will bill You. This is equal to the Annual
Scheduled Premium, shown on Page 3, multiplied by the mode
factor, as shown on Page 3.
SEPARATE ACCOUNT: an account entitled Separate Account VL I
which has been established by the Hartford Life Insurance
Company to separate the assets funding the variable benefits
for the class of contracts to which this policy belongs from
the other assets of the Hartford Life Insurance Company.
Separate Account VL I will have the Funds listed on Page 3A
as its underlying investments.
SUB-ACCOUNTS: the subdivisions of the Separate Account.
These are shown on Page 3A.
TARGET ACCOUNT VALUE: those values, as shown on Page 3A, for
each Policy Year during the Guarantee Period.
VALUATION DAY: the date on which a Sub-Account is valued.
This occurs every day We are open and the New York Stock
Exchange is open for trading.
VALUATION PERIOD: the period of time between the close of
business on successive Valuation Days.
YOU, YOUR: the Owner of the policy.
WE, US, OUR, THE COMPANY: Hartford Life Insurance Company.
Page 6
<PAGE>
DEATH BENEFIT GENERAL
The Death Benefit depends upon (a) the Death Benefit Option
in effect as, as shown on Page 3; and (b) the Minimum Death
Benefit described below.
DEATH BENEFIT OPTION
You have three Death Benefit Options.
1. Under the Level Death Benefit Option, the Death Benefit
is the Face Amount on the date of the Insured's death.
2. Under the Return of Account Value Death Benefit Option,
the Death Benefit is the Face Amount plus the Account
Value on the date of the Insured's death.
3. Under the Return of Premium Death Benefit Option, the
Death Benefit is the Face Amount on, plus the sum of
the Scheduled Premiums paid up to the date of the
Insured's death.
OPTION CHANGE
After the Guarantee Period, You may change the Return of
Premium or Return of Account Value Death Benefit to the
Level Death Benefit. If that Option Change is elected, the
Face Amount will become that amount available as a Death
Benefit immediately prior to the Option Change.
MINIMUM DEATH BENEFIT
To ensure that the policy continues to qualify as life
insurance under the Internal Revenue Code, We will
automatically increase the Death Benefit so that it will
never be less than the appropriate Attained Age percentage
of the Account Value. The applicable percentages are shown
in the table of Minimum Death Benefit Percentages on Page 4.
DEATH BENEFIT GUARANTEE
During the Guarantee Period, if all Scheduled Premiums are
paid when due and if Indebtedness does not exceed the Cash
Value, this policy will not terminate due to insufficient
Cash Surrender Value, regardless of the investment
experience of the Funds.
DEATH PROCEEDS
The Death Proceeds are the amount which We will pay on the
death of the Insured. This equals the Death Benefit less
any Indebtedness and less any due and unpaid Monthly
Deduction Amounts occurring during a Grace Period.
INCREASES AND DECREASES IN FACE AMOUNT
At any time after the Guarantee Period, You may request a
change in the Face Amount by writing to Us.
The minimum Face Amount for increases or decreases will be
based on Our rules then in effect.
Page 7
<PAGE>
DEATH BENEFIT All requests to increase the Face Amount must be applied for
(CONTINUED) on a new application and accompanied by this policy. All
requests will be subject to evidence of insurability
satisfactory to Us. Any increase approved by Us will be
effective on the date shown on the new policy specifications
page, provided that the deduction for the Cost of Insurance
for the first month is made. The Monthly Administrative Fee
on the first Monthly Activity Date on or after the effective
date of the increase will reflect a charge for the increase.
This charge will not exceed the Face Amount Increase Fee
shown on Page 4A.
A decrease in the Face Amount will be effective on the
Monthly Activity Date following the date We receive the
request. The remaining Face Amount must not be less than Our
minimum rules then in effect. Decreases will be applied:
(a) to the most recent increase; then
(b) successively to each prior increase; and then
(c) to the Initial Face Amount.
If You ask to decrease Your Face Amount below the Initial
Face Amount, We will deduct a portion of any remaining
Surrender Charge from Your Account Value. This will be done
on a Pro-Rata Basis. Your Surrender Charge will be reduced
by the same amount.
The amount of the reduction will be equal to:
(a) the Initial Face Amount minus the requested Face
Amount, times
(b) the Surrender Charge on the date of the request to
change the Face Amount, divided by
(c) the Initial Face Amount.
We reserve the right to limit the number of increases or
decreases made under this policy to not more than one in any
12 month period.
PREMIUMS GENERAL
All premiums are payable either:
(a) to Us at the address shown on the premium notice; or
(b) to Our authorized agent in exchange for a receipt
signed by Our President or Secretary and countersigned
by such agent.
Checks should be made payable to Hartford Life Insurance
Company.
We will apply any amount received under this policy as a
premium unless it is clearly marked otherwise. The premium
will be applied on the date We receive it at the address
shown on the premium notice.
PREMIUM PAYMENTS
The initial Schedule of Premiums is shown on Page 3.
The premium mode and mode factors are shown on Page 3. The
premium mode may be changed on any Policy Anniversary, upon
Our approval, subject to Our administrative rules.
Page 8
<PAGE>
PREMIUMS PREMIUM ALLOCATION
(CONTINUED) The initial Net Premium will be allocated to the Hartford
Money Market Sub-Account on the later of:
(a) the Policy Date; and
(b) the date We receive the premium.
The Accumulated Value in this Hartford Money Market Sub-
Account will then be allocated to the Fixed Account and Sub-
Accounts according to the premium allocation specified in
the application on the latest of:
(a) 45 days after the application is signed;
(b) 10 days after We receive the premium; and
(c) the date We receive the final requirement to put the
policy in force.
Any additional Net Premiums received by Us prior to such
date will be allocated to the Hartford Money Market Sub-
Account.
Upon written request, You may change the premium allocation.
Subsequent Net Premiums will be allocated to the Fixed
Account and Sub-Accounts according to Your most recent
instructions, subject to the following. The Account Value
may be allocated to no more than five of these. If We
receive a premium and Your most recent allocation
instructions would violate this requirement, We will
allocate the Net Premium to the Fixed Account and Sub-
Accounts according to Your previous premium allocation.
POLICY SURPLUS
The Policy Surplus for the first Policy Year is zero.
The Policy Surplus for each subsequent Policy Year is (a)
minus (b), but never less than zero where:
(a) is the Account Value at the end of the previous Policy
Year; and
(b) is the Target Account Value for the previous Policy
Year.
Once determined for a given Policy Year, the Policy Surplus
remains constant for that Policy Year.
We use the Policy Surplus to determine whether or not this
policy will terminate if Scheduled Premiums are not paid
when due. See the Scheduled Premiums provision below for
more details on this.
SCHEDULED PREMIUMS
The first Scheduled Premium is due on the Policy Date. No
insurance is effective until the first Scheduled Premium is
paid. During the Guarantee Period, each Scheduled Premium
after the first is due at the expiration of the period for
which the preceding Scheduled Premium was paid. A Scheduled
Premium may be paid at any time prior to its due date,
subject to the premium limitations as indicated in the
Premium Limitation section.
During the Guarantee Period, if all Scheduled Premiums are
paid when due and if Indebtedness does not exceed the Cash
Value, this policy will not terminate due to insufficient
Cash Surrender Value, regardless of the investment
experience of the Funds.
Page 9
<PAGE>
PREMIUMS During the Guarantee Period, if You fail to pay a Scheduled
(CONTINUED) Premium when due and if, on the premium due date and for the
rest of that Policy Year, the Policy Surplus exceeds the
indebtedness, payment of that Scheduled Premium will not be
required. This policy will not terminate due to this
nonpayment.
After the Guarantee Period, the Company will send reminder
notices for the Owner to pay Scheduled Premiums during the
Insured's lifetime. Payment of the Scheduled Premium may not
be sufficient to keep the policy in force after the end of
the Guarantee Period.
UNSCHEDULED PREMIUMS
Any premium We receive under this policy in an amount
different from the Scheduled Premium will be considered an
Unscheduled Premium. Unscheduled Premiums of at least $50.00
can be made at any time while the policy is in force.
LAPSES AND GRACE PERIODS
During the Guarantee Period: If, on any given Monthly
Activity Date, the Policy Surplus for that Policy Year is
zero or less than the Indebtedness, all Scheduled Premiums
due in that Policy Year, on or before that date, are
required and therefore must be paid. For any such required
Scheduled Premium not paid on or before its due date, We
will allow a Grace Period which ends 61 days after that
Monthly Activity Date. During this time this policy will
continue in force. If any such required Scheduled Premium is
not paid by the end of this Grace Period, this policy will
terminate except as provided under the Non-Forfeiture
Options or unless You have elected the Automatic Premium
Loan Option.
After the Guarantee Period: The policy will terminate 61
days after a Monthly Activity Date on which the Cash
Surrender Value is less than zero. The 61-day period is the
Grace Period. If sufficient premium is not paid by the end
of the Grace Period, the policy will terminate without
value. The Company will mail the Owner and any assignee
written notice of the amount of premium that will be
required to continue this policy in force at least 61 days
before the end of the Grace Period. The premium required
will be no greater than the amount required to pay three
Monthly Deduction Amounts as of the day the Grace Period
begins. If that premium is not paid by the end of the Grace
Period, this policy will terminate.
AUTOMATIC PREMIUM LOAN OPTION
If You elect t his option, We will automatically process a
policy loan to pay any Scheduled Premium which is due and
not paid by the end of its grace period. You may elect this
option in the application or by requesting it in Writing
while no Scheduled Premium is outstanding beyond its due
date.
The Automatic Premium Loan Option will not be available if:
(a) You revoke the election in Writing; or
(b) the loan amount needed to pay any unpaid Scheduled
Premium would exceed the Cash Surrender Value on the
most recent Scheduled Premium due date.
In either instance, the Non-Forfeiture Options will apply as
of the end of the grace period.
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PREMIUMS PREMIUM LIMITATION
(CONTINUED) If premiums are received which would cause the policy to
fail to meet the definition of a life insurance contract in
accordance with the Internal Revenue Code, We will refund
the excess premium payments. We will refund such premium
payments and interest thereon within 60 days after the end
of a Policy Year.
Except for Scheduled Premiums that are required, a premium
payment that results in an increase in the Death Benefit
greater than the amount of the premium will be accepted only
after We approve evidence of insurability.
VALUATION PROVISIONS
SUB-ACCOUNT ACCUMULATION UNITS
Amounts allocated to Sub-Accounts are applied to provide
Accumulation Units in each Sub-Account. The number of
Accumulation Units credited to each Sub-Account is
determined by dividing the amount allocated to a Sub-Account
by the dollar value of one Accumulation Unit for such Sub-
Account. The number of Your Accumulation Units will not be
affected by any subsequent change in the value of the Units.
The Accumulation Unit Values in each Sub-Account may
increase or decrease daily as described below.
SUB-ACCOUNT ACCUMULATION UNIT VALUE
The Accumulation Unit Value for each Sub-Account will vary
to reflect the investment experience of the applicable Fund
and will be determined on each Valuation Day by multiplying
the Accumulation Unit Value of the particular Sub-Account on
the preceding Valuation Day by a Net Investment Factor for
that Sub-Account for the Valuation Period then ended. The
Net Investment Factor for each of the Sub-Accounts is equal
to the net asset value per share of the corresponding Fund
at the end of the Valuation Period (plus the per share
amount of any dividend or capital gain distributions paid by
that Fund in the Valuation Period then ended) divided by the
net asset value per share of the corresponding Fund at the
beginning of the Valuation Period.
EMERGENCY PROCEDURE
If a national stock exchange is closed (except for holidays
or weekends) or trading is restricted due to an existing
emergency as defined by the Securities and Exchange
Commission so that We cannot value the Sub-Accounts, We may
postpone all procedures which require valuation of the Sub-
Accounts until valuation is possible. Any provision of this
policy which specifies a Valuation Day will be superseded by
the Emergency Procedure.
FIXED ACCOUNT
We will credit interest to amounts in the Fixed Account at
rates We determine. The effective annual rates are
guaranteed not to be less than the Fixed Account minimum
credited rate shown on Page 4A. The interest credited will
reflect the timing of amounts added to or withdrawn from the
Fixed Account.
ACCOUNT VALUE, GENERAL
CASH VALUE AND Your Account Value on the Policy Date equals the initial
CASH SURRENDER Net Premium less the Monthly Deduction Amount
VALUE for the first policy month.
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ACCOUNT VALUE, On each subsequent Monthly Activity Date, Your Account Value
CASH VALUE AND equals:
CASH SURRENDER (a) the sum of Your Accumulated Values in the Fixed Account
VALUE and Sub-Accounts; plus
(CONTINUE) (b) the value of Your Loan Account, if any; minus,
(c) the appropriate Monthly Deduction Amount.
On each Valuation Day (other than a Monthly Activity Date),
Your Account Value equals:
(a) the sum of Your Accumulated Values in the Fixed Account
and Sub-Accounts; plus
(b) the value of Your Loan Account, if any.
ACCUMULATED VALUE - FIXED ACCOUNT
Your Accumulated Value in the Fixed Account equals:
(a) the Net Premiums allocated to it; plus
(b) amounts transferred to it from the Sub-Accounts; plus
(c) interest credited to it; minus
(d) amounts transferred out of it to the Sub-Accounts or
the Loan Account; minus
(e) the Monthly Deduction Amounts taken from it; minus
(f) amounts withdrawn from it for partial or full
surrenders.
ACCUMULATED VALUE - SUB-ACCOUNTS
Your Accumulated Value in any Sub-Account equals:
(a) the number of Your Accumulation Units in that Sub-
Account on the Valuation Day; multiplied by
(b) that Sub-Account's Accumulation Unit Value on the
Valuation Day.
CASH VALUE AND SURRENDER CHARGES
A Surrender Charge will be subtracted from the Account Value
to determine the Cash Value. The Surrender Charge and the
Policy Years during which it will be applied are shown on
Page 4A.
CASH SURRENDER VALUE
Your Cash Surrender Value is equal to Your Cash Value minus
the Indebtedness, if any.
MONTHLY GENERAL
DEDUCTION The Monthly Deduction Amount equals:
AMOUNT
(a) the Cost of Insurance; plus
(b) the charges for additional benefits provided by rider,
if any; plus
(c) the charges for "special" insurance class rating, if
any; plus
(d) the Monthly Administrative Fee; plus
(e) the Mortality and Expense Risk Charge.
The Monthly Deduction Amount will be taken on a Pro-Rata
Basis from the Fixed Account and Sub-Accounts on each
Monthly Activity Date.
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MONTHLY COST OF INSURANCE
DEDUCTION The Cost of Insurance for any Monthly Activity Date is equal
AMOUNT to:
(CONTINUED)
(a) the Cost of Insurance rate per $1,000; multiplied by
(b) the amount at risk; divided by
(c) $1,000.
On any Monthly Activity Date the amount at risk equals the
Death Benefit less the Account Value on that date prior to
assessing the Monthly Deduction Amount.
COST OF INSURANCE RATE
The Cost of Insurance Rate is based on the Policy Year, sex,
Issue Age, and insurance class of the Insured.
The Cost of Insurance Rates will not exceed those in the
table of Maximum Cost of Insurance Rates, shown on Page 4.
We can use Cost of Insurance rates that are lower than the
Maximum Cost of Insurance rates shown on Page 4. Rates will
be determined on each Policy Anniversary based on Our
expectation as to the future experience. Any change We make
will be on a uniform basis for Insureds for the same Issue
Age, sex and insurance class and whose coverage has been in
force for the same length of time. No change in insurance
class or cost will occur on account of deterioration of the
Insured's health.
MONTHLY ADMINISTRATIVE FEE
The Monthly Administrative Fee will not exceed those in the
table of Maximum Monthly Administrative Fees shown on Page
4A.
MORTALITY AND EXPENSE RISK CHARGE
The Mortality and Expense Risk Charge for any Monthly
Activity Date is equal to:
(a) the Mortality and Expense Risk Rate; multiplied by
(b) the sum of Your Accumulated Values in the Sub-Accounts
on the Monthly Activity Date, prior to assessing the
Monthly Deduction Amount.
The Mortality and Expense Risk Rate is that shown on Page
4A.
TRANSFERS AMOUNT AND FREQUENCY OF TRANSFERS
Upon request and as long as this policy is in effect, You
may transfer amounts among the Fixed Account and Sub-
Accounts.
The amount which may be transferred and the number of
transfers will be limited by Our rules then in effect.
We reserve the right at a future date to limit the size of
transfers and remaining balances, and to limit the number
and frequency of transfers.
TRANSFERS TO OR FROM SUB-ACCOUNTS
In the event of a transfer from a Sub-Account, the number of
Accumulation Units credited to the Sub-Account from which
the transfer is made will be reduced. The reduction will be
determined by dividing:
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<PAGE>
TRANSFERS 1. the amount transferred; by
(CONTINUED) 2. the Accumulation Unit Value for that Sub-Account as of
the next Valuation Day after We receive Your request
for transfer in Writing.
In the event of a transfer to a Sub-Account, We will
increase the number of Accumulation Units credited to that
Sub-Account. The increase will equal:
1. the amount transferred; divided by
2. the Accumulation Unit Value for that Sub-Account as of
the next Valuation Day after We receive Your request
for transfer in Writing.
TRANSFERS FROM THE FIXED ACCOUNT
In addition to the conditions above, transfers from the
Fixed Account are subject to the following:
(a) the transfers must occur during the 30 day period
following each Policy Anniversary; and
(b) if the Accumulated Value in Your Fixed Account exceeds
$1,000, the amount transferred in any Policy Year may
be no larger than 25% of the Accumulated Value in the
Fixed Account on the date of transfer.
TRANSFER FEE
After a transfer has occurred, the Transfer Charge, as
specified on Page 4A, if any, will be deducted on a Pro-Rata
Basis from the Fixed Account and Sub-Accounts.
TERMINATION TERMINATION
AND The policy will terminate upon the earliest of the following
MATURITY DATE events:
(a) maturity Date of the policy; or
(b) surrender of the policy; or
(c) application of the Cash Surrender Value to provide a
non-forfeiture benefit (upon
which coverage will continue
per terms of the Non-
Forfeiture Options); or
(d) 61 days following the date on which Indebtedness equals
or exceeds the Cash Value; or
(e) the end of the Grace Period without sufficient premium
being paid and the policy having no Cash Surrender
Value; or
(f) the death of the Insured.
MATURITY DATE
No insurance coverage will be effective on or after the
Maturity Date. It is the last date to which You may elect to
pay premium. Any Cash Surrender Value as of the Maturity
Date will be paid to You.
REINSTATEMENT Prior to the death of the Insured, and unless this policy
has been surrendered for cash, this policy may be reinstated
prior to the Maturity Date, provided:
(a) You make Your request within five years;
(b) satisfactory evidence of insurability is submitted;
(c) You pay all overdue required Scheduled Premiums, if
any; and
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<PAGE>
REINSTATEMENT (d) if, at the time of reinstatement, the Guarantee Period
(CONTINUED) has expired, and, if the amount paid in (c) is
insufficient to do so, sufficient premium must be paid
to:
(i) cover all Monthly Deduction Amounts that are due
and unpaid during the Grace Period, and
(ii) keep the policy in force for three months after
the date of reinstatement.
The Face Amount of the reinstated policy cannot exceed the
Face Amount at the time of lapse. The Account Value on the
reinstatement date will reflect:
(a) the Account Value at the time of termination; plus
(b) Net Premiums attributable to premiums paid at the time
of reinstatement; minus
(c) a charge to reflect the benefits, if any, provided
under the Extended Term or Paid-Up options.
The Surrender Charges will be based on the duration from the
original Policy Date.
Upon reinstatement, any Indebtedness at the time of
termination must be repaid or carried over to the reinstated
policy.
NON-FORFEITURE
OPTIONS WHEN AVAILABLE
At any time prior to the Maturity Date, provided this policy
has a Cash Surrender Value. You may choose to have the Cash
Surrender Value applied as a non-forfeiture benefit under
one of the following options:
Option A - Surrender for Cash
Option B - Continue as Extended Term Insurance
Option C - Continue as Paid-Up Insurance
If during the Guarantee Period:
(a) a Scheduled Premium which is required is not paid by
the end of the Grace Period; and
(b) the Automatic Premium Loan Option is not elected or not
available due to insufficient Cash Surrender Value,
You may choose one of the above options. You must notify Us
of Your choice in Writing within 61 days after the due date
of the outstanding required Scheduled Premium. In the
absence of such notification, We will automatically apply
the Cash Surrender Value to Option B unless the insurance
class shown on Page 3 is "special" in which case the
automatic Option will be Option C. If this policy has no
Cash Surrender Value, it will terminate at the end of the
Grace Period.
WHEN EFFECTIVE
The effective date of the noon-forfeiture benefit will be
the earlier of:
(a) the date We receive Your Request; or
(b) the end of the Grace Period.
When a Non-Forfeiture Option becomes effective, all benefit
riders attached to this policy will terminate unless
otherwise provided in the rider.
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NON-FORFEITURE OPTION DESCRIPTIONS
OPTIONS OPTION A - SURRENDER FOR CASH
(CONTINUED) If you choose this option, You must surrender this policy to
Us. We will pay You the Cash Surrender Value at the time of
surrender, and Our liability under this policy will cease.
OPTION B - CONTINUE AS EXTENDED TERM INSURANCE
This option is not available unless the insurance class
shown on Page 3 is "Standard" or "Preferred". If You choose
this option, the Extended Term Insurance Death Benefit will
be the Death Benefit in effect on the effective date of non-
forfeiture benefit less any indebtedness. The term period
will begin on the effective date of the non-forfeiture
benefit and will extend for a period of time equal to that
which the Cash Surrender Value will provide as a net single
premium at the Insured's then Attained Age. At the end of
that term period, Our liability under this policy will
cease. We will pay You any Cash Surrender Value not used to
provide Extended Term Insurance.
OPTION C - CONTINUE AS PAID-UP INSURANCE
If You choose this option, the policy will continue as Paid-
Up Life Insurance. The amount of Paid-Up Life Insurance will
be calculated using the Cash Surrender Value of this policy
as a net single premium as of the effective date of the non-
forfeiture benefit at the then Attained Age of the Insured.
The Company reserves the right to require evidence of
insurability or limit the amount of the benefit if the Paid-
Up amount exceeds the Death Benefit in effect on the
effective date of the non-forfeiture benefit. We will pay
You any Cash Surrender Value not used to provide Paid-Up
Insurance.
If the policy is continued under Option B or Option C above,
the Cash Surrender Value available within 30 days after any
Policy Anniversary will not be less than the Cash Value on
such Policy Anniversary, minus any Indebtedness.
BASIS OF COMPUTATIONS
The Cash Values and non-forfeiture benefits provided by this
policy comply with the insurance laws of the State in which
this policy is delivered. A detailed statement of the method
of calculating the non-forfeiture benefits of this policy
has been filed with the Insurance Department of the State in
which this policy is delivered. We reserve the right to
grant a non-forfeiture benefit which provides a greater
amount or longer period of Death Benefits than the minimum
non-forfeiture benefits.
Extended Term Insurance is based on the Initial Face Amount,
4.00% interest and the 1980 CET Mortality Table.
Paid-Up Insurance amounts are based on 4.00% interest and
the 1980 CSO Mortality Table.
POLICY LOANS GENERAL
At any time while this policy is in force, You may borrow
against this policy by assigning it to Us as sole security.
We may defer granting a loan, except to pay premiums to Us,
for the period permitted by law but not more than six
months.
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POLICY LOANS LOAN AMOUNTS
(CONTINUED) Any new loan taken may not exceed 90% of the Cash Value less
100% of existing indebtedness, if any, on the date We grant
a loan. Loan Amounts will be subject to Our minimum rules
then in effect. Before advancing the loan amount, We may
withhold an amount sufficient to pay interest on total
indebtedness to the end of the Policy Year and any Monthly
Deduction Amounts due on or before the next Policy
Anniversary. All loan amounts will be transferred from the
Fixed Account and the Sub-Accounts to the Loan Account.
Unless You specify otherwise, the amounts will be
transferred on a Pro-Rata Basis.
If total indebtedness equals or exceeds the Cash Value, this
policy will terminate 61 days after We have mailed notice to
Your last known address and that of any assignee of record.
If sufficient loan repayment is not made by the end of this
grace period, the policy will end without value.
CREDITED INTEREST
During the first ten Policy Years, any amounts in the Loan
Account will be credited with interest at a rate equal to
the Policy Loan Rate, minus 2%. For Policy Years 11 and
beyond, except for Preferred Loans described below, the Loan
Account will be credited with interest at a rate equal to
the Policy Loan Rate applicable to that indebtedness, minus
1%.
PREFERRED LOAN
If, any time after the 10th Policy Anniversary, the Cash
Value exceeds the total of all premiums paid since issue, a
Preferred Loan is available. The amount available for a
Preferred Loan is the amount by which the Cash Value exceeds
total premiums paid. The amount of the Loan Account which
equals a Preferred Loan will be credited with interest at a
rate equal to the Policy Loan Rate. The amount of
indebtedness that qualifies as a Preferred Loan is
determined on each Monthly Activity Date.
LOAN REPAYMENTS
All or part of a loan may be repaid at any time that:
(a) the policy is in force;
(b) Extended Term Insurance is not in effect; and
(c) the insured is alive.
However, each payment must be at least $50.00.
The amount of a loan repayment will be deducted from the
Loan Account and will be allocated among the Fixed Account
and Sub-Accounts in the same percentage as premiums are
allocated.
LOAN INTEREST
Loan interest will accrue daily at the Policy Loan Interest
Rate shown on Page 4A. The difference between the value of
the Loan Account and the Indebtedness will be transferred on
a Pro-Rata Basis from the Fixed Account and Sub-Accounts to
the Loan Account on each Monthly Activity Date.
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PARTIAL
WITHDRAWALS After the Guarantee Period, Partial Withdrawals are allowed.
The minimum Partial Withdrawal allowed is $500.00. The
maximum Partial Withdrawal allowed is the Cash Surrender
Value, less $1,000.00. A partial withdrawal charge up to
$50.00 may be charged. One Partial Withdrawal is allowed
each Policy Year. The Face Amount is reduced by the amount
of the Partial Withdrawal. Unless specified otherwise, the
Partial Withdrawal will be deducted on a Pro-Rata Basis from
the Fixed Account and the Sub-Accounts.
PAYMENTS
BY US GENERAL
We will pay Death Proceeds, Cash Surrender Values, Partial
Withdrawals and loan amounts attributable to the Sub-
Accounts within seven days after We receive all the
information needed to process the payment unless:
(a) the New York Stock Exchange is closed on other than
customary weekend and holiday closings or trading on
the New York Stock Exchange is restricted as determined
by the Securities and Exchange Commission (SEC); or
(b) an emergency exists, as determined by the SEC, as a
result of which disposal of securities is not
reasonably practicable to determine the value of the
Sub-Accounts; or
(c) the SEC, by order, permits postponement for the
protection of policy owners.
DEFERRAL OF PAYMENTS FROM THE FIXED ACCOUNT
We may defer payment of any amounts which are not
attributable to the Sub-Accounts for up to six months from
the date of the request.
TAXATION We do not expect to incur any Federal, State or local income
tax on the earnings or realized capital gains attributable
to the Separate Account. Based upon these expectations, no
charge is currently being made to the Separate Account for
Federal, State or local income taxes. If We incur income
taxes attributable to the Separate Account or determine that
such taxes will be incurred, We may assess a charge for
taxes against the policy in the future.
THE CONTRACT ENTIRE CONTRACT
The entire contract consists of this policy and the
application, a copy of which is attached. The contract is
made in consideration of the application and the payment of
the first Scheduled Premium. We will not use any statement
to void this policy or to defend a claim under it, unless
that statement is contained in an attached written
application. All statements in the application will, in the
absence of fraud, be deemed representations and not
warranties.
MODIFICATION
The only way this contract may be modified is by a written
agreement signed by Our President, or one of Our Vice
Presidents, Secretaries or Assistant Secretaries.
NON-PARTICIPATION
This policy is non-participating. It does not share in Our
surplus earnings, so You will receive no dividends under it.
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THE CONTRACT MISSTATEMENT OF AGE AND/OR SEX
(CONTINUED) If on the date of death:
(a) the Issue Age of the Insured is understated; or
(b) the sex of the Insured is incorrectly stated such that
it resulted in lower Costs of Insurance,
the Death Benefit will be reduced to the Death Benefit that
would have been provided by the last Cost of Insurance
charge at the correct age and/or sex.
If on the date of death,
(a) the Issue Age of the Insured is overstated; or
(b) the sex of the Insured is incorrectly stated such that
it resulted in higher Costs of Insurance,
the Death Benefit will be adjusted by the return of all
excess Costs of Insurance prior to the date of the Insured's
death.
SUICIDE
If, within 2 years from the Date of Issue, the Insured dies
by suicide while sane or insane, Our liability will be
limited to the premiums paid less indebtedness and less any
Partial Withdrawals.
If, within 2 years from the effective date of any increase
in the Death Benefit for which evidence of insurability was
obtained, the Insured dies by suicide, while sane or insane,
Our liability will be limited to the Cost of Insurance for
the increase.
INCONTESTABILITY
We cannot contest this policy after it has been in force,
during the Insured's lifetime, for 2 years from its Date of
Issue, except for:
(a) non-payment of premium; and
(b) any rider providing disability or accidental death
benefits.
Any increase in the Death Benefit for which evidence of
insurability was obtained, will be incontestable only after
the increase has been in force, during the Insured's
lifetime, for 2 years from the effective date of the
increase.
SEPARATE ACCOUNTS
We will have exclusive and absolute ownership and control of
the assets of Our Separate Accounts. The assets of a Fund
will be available to cover the liabilities of Our general
account only to the extent that those assets exceed the
liabilities of that Separate Account arising under the
variable life insurance contracts supported by that Separate
Account. The assets of a Fund will be valued at least as
often as any contract benefits vary, but at least monthly.
Our determination of the value of an Accumulation Unit by
the method described in this policy will be conclusive. The
investment policy of the Separate Account will not be
changed without the approval of the Insurance Commissioner
of the State where this policy is issued for delivery.
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THE CONTRACT ANNUAL REPORT
(CONTINUED) We will send You a report at least once each Policy Year,
showing:
(a) the current Account Value, Cash Value and Face Amount;
(b) the premiums paid, Monthly Deduction Amounts and loans
since the last report;
(c) the amount of any Indebtedness;
(d) notifications required by the provisions of this
policy; and
(e) any other information required by the Insurance
Department of the State where this policy was
delivered.
OWNERSHIP AND
BENEFICIARY CHANGE OF OWNERSHIP OR BENEFICIARY
The Owner and Beneficiary will be those named in the
application until You change them. To change the Owner or
Beneficiary, notify Us in Writing while the Insured is
alive. After We receive written notice, the change will be
effective as of the date You signed such notice, whether or
not the Insured is living when We receive it. However, the
change will be subject to any payment We made or actions We
may have taken before We received the request.
ASSIGNMENT
You may assign this policy. Until You notify Us in Writing,
no assignment will be effective against Us. We are not
responsible for the validity of any assignment.
OWNER'S RIGHTS
While the Insured is alive and no Beneficiary is irrevocably
named, You may:
(a) exercise all the rights and options that this policy
provides or that We permit;
(b) assign this policy; and
(c) agree with Us to any change to this policy.
NO NAMED BENEFICIARY
If no named Beneficiary survives the Insured, then, unless
this policy provides otherwise:
(a) You will be the Beneficiary; or
(b) if You are the Insured, Your estate will be the
Beneficiary.
EXCHANGE If this policy is in effect, You may exchange it:
OPTION
1. any time during the 24 months following its Date of
Issue;
2. for a permanent life insurance contract offered by Us
on the life of the Insured;
3. without evidence of insurability.
The new policy will be issued by Us:
1. with an amount at risk which equals or is less than the
amount at risk in effect on the Exchange Date;
2. with premiums based on the same risk classification as
this policy.
This exchange is subject to adjustments in payments and
Account Values to reflect variances, if any, in the payments
and Account Values under this policy and the new policy.
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INCOME AVAILABILITY
SETTLEMENT All or part of this policy may, instead of being paid in one
OPTIONS sum, be left with Us under any one or a combination of the
following options, subject to Our minimum amount
requirements on the date of election.
We will pay interest of at least 3 1/2% per year on the
Death Proceeds from the date of the Insured's death to the
date payment is made or an Income Settlement Option is
elected. These proceeds are then no longer subject to the
investment experience of a Separate Account.
If any payee is a corporation, partnership, association,
assignee, or fiduciary, an option may be chosen only with
Our consent.
Option 4 is not available to any payee whose Attained Age
exceeds 90.
DESCRIPTION OF TABLES
The options below are based on interest at a guaranteed rate
of 3 1/2% per year. Payments under Option 4 are based on
mortality for each sex according to the 1983a Individual
Annuity Mortality Table, with ages set back one year.
EXCESS INTEREST
We may pay or credit excess interest of such amount and in
such manner as We determine.
DEATH OF PAYEE
If the payee dies while receiving payments under one of the
options below, We will pay the following:
a) any principal and accrued interest remaining unpaid
under Option 1 or 2;
b) the value of remaining unpaid guaranteed payments, if
any, under Option 3 or 4, commuted using interest of
3 1/2% per year.
Any such amount will be paid in one sum to the payee's
estate.
OTHER OPTIONS
To convert the monthly payments shown in the tables for
Options 3 and 4B to quarterly, semi-annual or annual
payments, multiply by the following factors:
PAYMENT INTERVAL FACTOR
Quarterly 2.99
Semi-annual 5.96
Annual 11.81
Other options may be arranged with Our consent.
OPTION 1 - INTEREST INCOME
Payments of interest at the rate We declare, but not less
than 3 1/2% per year, on the amount left under this option.
OPTION 2 - INCOME OF FIXED AMOUNT
Equal payments of the amount chosen until the amount left
under this option, with interest of not less than 3 1/2% per
year, is exhausted. The final payment will be for the
balance only.
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INCOME OPTION 3 - INCOME FOR FIXED PERIOD
SETTLEMENT Payments, determined from the table below, are guaranteed
OPTIONS for the number of years chosen. The first payment will be
(continued) due on the date proceeds are applied under this Option.
<TABLE>
<CAPTION>
Monthly Payments Monthly Payments
Number per $1,000 of Number per $1,000 of
of Years Proceeds of Years Proceeds
<S> <C> <C> <C>
1 $84.65 10 $9.83
2 43.05 15 7.10
3 29.19 20 5.75
4 22.27 25 4.96
5 18.12 30 4.45
</TABLE>
OPTION 4 - LIFE INCOME
Payments, determined from the table shown on the following page for
the Option elected, are based on the payee's sex and age nearest
birthday on the day the first payment becomes due. The first payment
will be due on the date proceeds are applied under this Option. The
life income options available are:
a) payment only while the payee is alive,
b) payments guaranteed for 10 years; then continuing while the payee
is alive.
<TABLE>
<CAPTION>
MONTHLY PAYMENTS PER $1,000 OF PROCEEDS
Option 4A Option 4B Option 4A Option 4B
Payee's Life Only 10 Yrs Certain Payee's Life Only 10 Yrs Certain
Age Male Female Male Female Age Male Female Male Female
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
20 $3.34 $3.23 $3.34 $3.23 68 $6.79 $5.79 $6.38 $5.63
25 3.44 3.31 3.43 3.30 69 7.02 5.95 6.54 5.77
30 3.56 3.40 3.56 3.40 70 7.26 6.13 6.71 5.91
35 3.71 3.51 3.71 3.51 71 7.52 6.32 6.87 6.07
40 3.91 3.65 3.90 3.65 72 7.80 6.53 7.05 6.23
45 4.17 3.84 4.14 3.84 73 8.09 6.75 7.22 6.40
50 4.49 4.08 4.44 4.07 74 8.41 6.99 7.40 6.58
51 4.56 4.14 4.51 4.12 75 8.75 7.26 7.57 6.75
52 4.64 4.20 4.58 4.18 76 9.12 7.54 7.75 6.95
53 4.72 4.26 4.66 4.24 77 9.51 7.85 7.92 7.14
54 4.80 4.32 4.74 4.30 78 9.92 8.16 8.09 7.34
55 4.89 4.39 4.82 4.36 79 10.37 8.54 8.26 7.54
56 4.99 4.46 4.91 4.43 80 10.85 8.94 8.42 7.74
57 5.09 4.54 5.00 4.51 51 11.37 9.36 8.57 7.94
58 5.20 4.62 5.10 4.58 82 11.92 9.82 8.71 8.13
59 5.32 4.71 5.20 4.68 83 12.50 10.32 8.85 8.32
60 5.44 4.80 5.31 4.75 84 13.12 10.87 8.97 8.50
61 5.57 4.90 5.42 4.84 85 13.78 11.46 9.09 8.67
62 5.71 5.00 5.54 4.93 86 14.47 12.09 9.20 8.83
63 5.86 5.11 5.67 5.03 87 15.20 12.78 9.29 8.97
64 6.02 5.23 5.80 5.14 88 15.98 13.52 9.38 9.10
65 6.20 5.36 5.94 5.25 89 16.79 14.31 9.46 9.22
66 6.38 5.49 6.08 5.37 90 17.66 15.16 9.53 9.32
67 6.58 5.64 6.23 5.50
</TABLE>
Page 22
<PAGE>
[Logo]
HARTFORD LIFE INSURANCE COMPANY
HARTFORD, CONNECTICUT 05104-2999
(A stock insurance company)
NATIONAL SERVICE CENTER ADDRESS:
P.O. BOX 59179
MINNEAPOLIS, MINNESOTA 55459
CASH SURRENDER VALUE PAYABLE ON MATURITY DATE
DEATH PROCEEDS PAYABLE AT DEATH
SCHEDULED PREMIUMS PAYABLE DURING INSURED'S LIFETIME
PROVISION FOR ADDITIONAL UNSCHEDULED PREMIUMS
NON-PARTICIPATING
THE PORTIONS OF THE CASH VALUES PROVIDED BY THIS CONTRACT THAT ARE IN THE SUB-
ACCOUNTS ARE BASED ON THE INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT. THEY ARE
VARIABLE AND NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT. THE AMOUNT OF THE DEATH
BENEFIT MAY BE FIXED OR VARIABLE DEPENDING ON THE INVESTMENT EXPERIENCE OF THAT
SEPARATE ACCOUNT. DEATH BENEFIT GUARANTEED DURING THE GUARANTEE PERIOD IF
SCHEDULED PREMIUMS ARE PAID WHEN DUE AND NO LOANS OR WITHDRAWALS ARE TAKEN. SEE
PAGE 7 FOR A DESCRIPTION OF THE DEATH BENEFIT.
MODIFIED FLEXIBLE
PREMIUM VARIABLE
LIFE INSURANCE
POLICY
<PAGE>
Exhibit I A (6)(a)
CERTIFICATE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
1. AMENDING OR RESTATING CERTIFICATE BOARD OF BOARD OF DIRECTORS BOARD OF DIRECTORS
OF INCORPORATION BY ACTION OF / / INCORPORATION / / DIRECTORS /x/ AND SHAREHOLDERS / / AND MEMBERS
(Stock Corporation) (Nonstock Corporation)
</TABLE>
STATE OF CONNECTICUT -------------------
SECRETARY OF THE STATE For office use only
-------------------
ACCOUNT NO.
-------------------
INITIALS
-------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NAME OF CORPORATION DATE
Hartford Life Insurance Company August 2, 1984
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C>
B. AMENDED
2. The Certificate of Incorporation is /x/ A. AMENDED ONLY / / AND RESTATED / / C. RESTATED ONLY by the following resolution
</TABLE>
RESOLVED, That Section 3 of the Corporation's Restated Certificate of
Incorporation be amended to read as follows:
"Section 3. The capital with which the Corporation shall commence
business shall be an amount not less than one thousand dollars
($1,000). The authorized capital shall be five million six hundred
and ninety thousand dollars ($5,690,000) divided into one thousand
(1,000) shares of common capital stock with a par value of five
thousand six hundred and ninety dollars ($5,690) each."
3. (Omit if 2.A is checked.)
(a) The above resolution merely restates and does not change the provisions
of the original Certificate of Incorporation as supplemented and
amended to date, except as follows: (Indicate amendments made, if any;
if none, so indicate.)
(b) Other than as indicated in Par.3(a), there is no discrepancy between
the provisions of the original Certificate of Incorporation as
supplemented to date, and the provisions of this Certificate Restating
the Certificate of Incorporation.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
BY ACTION OF INCORPORATORS
/ / 4. The above resolution was adopted by vote of at least two-thirds of
the incorporators before the organization meeting of the
corporation, and approved in writing by all subscribers (if any)
for shares of the corporation, (or if nonstock corporation, by all
applicants for membership entitled to vote, if any.)
We (at least two-thirds of the incorporators) hereby declare, under the
penalties of false statement that the statements made in the foregoing
certificate are true.
<TABLE>
<CAPTION>
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
SIGNED SIGNED SIGNED
- ------------------------------------------------------------------------------------------------------------------------
APPROVED
(All subscribers, or, if nonstock corporation, all applicants for membership entitled to vote; if none, so indicate)
- ------------------------------------------------------------------------------------------------------------------------
SIGNED SIGNED SIGNED
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
(Continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
BY ACTION OF BOARD OF DIRECTORS
/ / 4. (Omit if 2.C is checked.) The above resolution was adopted by the board
of directors acting alone,
/ / there being no shareholders / / the board of directors being so
or subscribers. authorized pursuant to Section
33-341, Conn. G.S. as amended
/ / the corporation being a nonstock corporation and having no members
and no applicants for membership entitled to vote on such resolution.
- --------------------------------------------------------------------------------
5. The number of affirmative votes 6. The number of directors' votes
required to adopt such resolution is: in favor of the resolution was:
- --------------------------------------------------------------------------------
We hereby declare, under the penalties of false statement that the statements
made in the foregoing certificate are true.
- --------------------------------------------------------------------------------
NAME OF PRESIDENT OR VICE PRESIDENT (PRINT OR TYPE) NAME OF SECRETARY OR
ASSISTANT SECRETARY
(PRINT OR TYPE)
- --------------------------------------------------------------------------------
SIGNED (President or Vice President) SIGNED (Secretary or Assistant
Secretary)
- --------------------------------------------------------------------------------
BY ACTION OF BOARD OF DIRECTORS AND SHAREHOLDERS
/X/ 4. The above resolution was adopted by the board of directors and by
shareholders.
5. Vote of shareholders:
(a) (Use if no shares are required to be voted as a class.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF SHARES ENTITLED TO VOTE TOTAL VOTING POWER VOTE REQUIRED FOR ADOPTION VOTE FAVORING ADOPTION
<S> <C> <C> <C>
400 400 267 400
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(b) (If the shares of any class are entitled to vote as a class, indicate
the designation and number of outstanding shares of each such class,
the voting power thereof, and the vote of each such class for the
amendment resolution.)
We hereby declare, under the penalties of false statement, that the statements
made in the foregoing certificate are true.
- --------------------------------------------------------------------------------
NAME OF PRESIDENT OR VICE PRESIDENT NAME OF SECRETARY OR ASSISTANT
(Print or Type) SECRETARY (Print or Type)
Edward N. Bennett (Sr. Vice President) Robert C. Fischer (Secretary)
- --------------------------------------------------------------------------------
SIGNED (President or Vice President) SIGNED (Secretary or Assistant
Secretary)
/s/ Edward N. Bennett /s/ Robert C. Fischer
- --------------------------------------------------------------------------------
BY ACTION OF BOARD OF DIRECTORS AND MEMBERS
/ / 4. The above resolution was adopted by the board of directors and by
members.
5. Vote of members:
(a) (Use if no members are required to vote as a class.)
- --------------------------------------------------------------------------------
NUMBER OF MEMBERS VOTING TOTAL VOTING POWER VOTE REQUIRED FOR
ADOPTION
- -------------------------------------------------------------------------------
VOTE FAVORING ADOPTION
- ----------------------
(b) (If the members of any class are entitled to vote as a class, indicate the
designation and number of members of each such class, the voting power
thereof, and the vote of each such class for the amendment resolution.)
We hereby declare, under the penalties of false statement that the statements
made in the foregoing certificate are true.
- --------------------------------------------------------------------------------
NAME OF PRESIDENT OR VICE PRESIDENT NAME OF SECRETARY OR ASSISTANT
(Print or Type) SECRETARY (Print or Type)
- --------------------------------------------------------------------------------
SIGNED (President or Vice President) SIGNED (Secretary or Assistant
Secretary)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FOR OFFICE USE ONLY
FILED FILING FEE CERTIFICATION FEE TOTAL FEES
STATE OF CONNECTICUT $30 $27 $57
-------------------------------------------------------
AUG - 3 1984 SIGNED (For Secretary of the State)
/s/
-------------------------------------------------------
CERTIFIED COPY SENT ON (Date: 8/6/84 INITIALS
-------------------------------------------------------
TO
SECRETARY OF THE STATE
/s/ -------------------------------------------------------
<PAGE>
Exhibit 1A(6)(a)(II)
CERTIFICATE
AMENDING OR RESTATING CERTIFICATE
OF INCORPORATION BY ACTION OF INCORPORATORS BOARD OF
/ / / / DIRECTORS
/X/ BOARD OF DIRECTORS AND SHAREHOLDERS / / BOARD OF DIRECTORS AND MEMBERS
(Stock Corporation) (Nonstock Corporation)
STATE OF CONNECTICUT -------------------
SECRETARY OF THE STATE For office use only
-------------------
ACCOUNT NO.
-------------------
INITIALS
-------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NAME OF CORPORATION DATE
Hartford Life Insurance Company February 10, 1982
- -------------------------------------------------------------------------------
B. AMENDED
2. The Certificate of incorporation is / / A. AMENDED ONLY /X/ AND RESTATED
/ / C. RESTATED ONLY by the following resolution
See attached Restated Certificate of Incorporation.
3. (Omit if 2.A is checked.)
(a) The above resolution merely restates and does not change the provisions
of the original Certificate of Incorporation as supplemented and
amended to date, except as follows: (Indicate amendments made, if any;
if none, so indicate.)
1. Section 1 is amended to read as Restated.
2. Section 4 is deleted.
3. Section 5 is deleted.
(b) Other than as indicated in Par.3(a), there is no discrepancy between
the provisions of the original Certificate of Incorporation as
supplemented to date, and the provisions of this Certificate Restating
the Certificate of Incorporation.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
BY ACTION OF INCORPORATORS
/ / 4. The above resolution was adopted by vote of at least two-thirds of
the incorporators before the organization meeting of the
corporation, and approved in writing by all subscribers (if any)
for shares of the corporation, (or if nonstock corporation, by all
applicants for membership entitled to vote, if any.)
We (at least two-thirds of the incorporators) hereby declare, under the
penalties of false statement that the statements made in the foregoing
certificate are true.
- --------------------------------------------------------------------------------
SIGNED SIGNED SIGNED
- --------------------------------------------------------------------------------
APPROVED
(All subscribers, or, if nonstock corporation, all applicants for membership
entitled to vote; if none, so indicate)
- --------------------------------------------------------------------------------
SIGNED SIGNED SIGNED
- --------------------------------------------------------------------------------
<PAGE>
(Continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
BY ACTION OF BOARD OF DIRECTORS
/ / 4. (Omit if 2.C is checked.) The above resolution was adopted by the
board of directors acting alone,
/ / there being no shareholders or subscribers.
/ / the board of directors being so authorized pursuant to Section 33-341,
Conn. G.S. as amended
/ / the corporation being a nonstock corporation and having no members
and no applicants for membership entitled to vote on such resolution.
- --------------------------------------------------------------------------------
5. The number of affirmative votes 6. The number of directors' votes
required to adopt such resolution is: in favor of the resolution was:
- --------------------------------------------------------------------------------
We hereby declare, under the penalties of false statement that the statements
made in the foregoing certificate are true.
- --------------------------------------------------------------------------------
NAME OF PRESIDENT OR VICE PRESIDENT NAME OF SECRETARY OR ASSISTANT SECRETARY
(Print or Type) (Print or Type)
- --------------------------------------------------------------------------------
SIGNED (President or Vice President) SIGNED (Secretary or Assistant
Secretary)
- --------------------------------------------------------------------------------
BY ACTION OF BOARD OF DIRECTORS AND SHAREHOLDERS
/x/ 4. The above resolution was adopted by the board of directors and by
shareholders.
5. Vote of shareholders:
(a) (Use if no shares are required to be voted as a class.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C>
NUMBER OF SHARES ENTITLED TO VOTE TOTAL VOTING POWER VOTE REQUIRED FOR ADOPTION VOTE FAVORING ADOPTION
400 400 267 400
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(b) (If the shares of any class are entitled to vote as a class, indicate
the designation and number of outstanding shares of each such class,
the voting power thereof, and the vote of each such class for the
amendment resolution.)
We hereby declare, under the penalties of false statement that the statements
made in the foregoing certificate are true.
- --------------------------------------------------------------------------------
NAME OF PRESIDENT OR VICE PRESIDENT NAME OF SECRETARY OR ASSISTANT
(Print or Type) SECRETARY (Print or Type)
Robert B. Goode, Jr., Executive Vice Pres. William A. McMahon, Gen. Counsel
& Chief Oper. Officer & Secretary
- --------------------------------------------------------------------------------
SIGNED (President or Vice President) SIGNED (Secretary or Assistant
Secretary)
/s/ Robert B. Goode, Jr. /s/ William A. McMahon
- -------------------------------------------------------------------------------
BY ACTION OF BOARD OF DIRECTORS AND MEMBERS
/ / 4. The above resolution was adopted by the board of directors and by
members.
5. Vote of members:
(a) (Use if no members are required to vote as a class.)
- --------------------------------------------------------------------------------
NUMBER OF MEMBERS VOTING TOTAL VOTING POWER
- -------------------------------------------------------------------
VOTE REQUIRED FOR ADOPTION VOTE FAVORING ADOPTION
- --------------------------------------------------------------------------------
(b) (If the members of any class are entitled to vote as a class, indicate the
designation and number of members of each such class, the voting power
thereof, and the vote of each such class for the amendment resolution.)
We hereby declare, under the penalties of false statement that the statements
made in the foregoing certificate are true.
- --------------------------------------------------------------------------------
NAME OF PRESIDENT OR VICE PRESIDENT NAME OF SECRETARY OR ASSISTANT
(Print or Type) SECRETARY (Print or Type)
- --------------------------------------------------------------------------------
SIGNED (President or Vice President) SIGNED (Secretary or Assistant
Secretary)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FOR OFFICE USE ONLY
FILED FILING FEE CERTIFICATION FEE TOTAL FEES
STATE OF CONNECTICUT $30 $9.50 $39.50
-------------------------------------------------------
SIGNED (for Secretary of the State)
Rec. & ICC to Ann Zacchio
APR - 2 1982 -------------------------------------------------------
CERTIFIED COPY SENT ON (Date: INITIALS
Law Dept. Hartford Ins. Group
/s/ -------------------------------------------------------
TO
SECRETARY OF THE STATE HTFD. Plaza HTFD. CT 06115
-------------------------------------------------------
Card List Proof
By /s/ Time 2:30 P.M.
------- ------ -------------------------------------------------------
<PAGE>
Form 61-58
STATE OF CONNECTICUT SS. HARTFORD
OFFICE OF SECRETARY OF THE STATE
I hereby certify that the foregoing is a true copy of record in this office.
IN TESTIMONY WHEREOF, I have hereunto
set my hand, and affixed the Seal of
said State, at Hartford, this 2nd
day of April A.D., 1982.
/s/
SECRETARY OF THE STATE
<PAGE>
RESTATED CERTIFICATE OF INCORPORATION
HARTFORD LIFE INSURANCE COMPANY
This Restated Certificate of Incorporation gives effect to the
amendment of the Certificate of Incorporation of the corporation and otherwise
purports merely to restate all those provisions already in effect. This
Restated Certificate of Incorporation has been adopted by the Board of Directors
and by the sole shareholder.
Section 1. The name of the corporation is Hartford Life Insurance
Company and it shall have all the powers granted by the general
statutes, as now enacted or hereinafter amended to corporations formed
under the Stock Corporation Act.
Section 2. The corporation shall have the purposes and powers to
write any and all forms of insurance which any other corporation now
or hereafter chartered by Connecticut and empowered to do an
insurance business may now or hereafter may lawfully do; to accept and
to cede reinsurance; to issue policies and contracts for any kind or
combinations of kinds of insurance; to issue policies or contracts
either with or without participation in profits; to acquire and hold
any or all of the shares or other securities of any insurance
corporation; and to engage in any lawful act or activity for which
corporations may be formed under the Stock Corporation Act. The
corporation is authorized to exercise the powers herein granted in any
state, territory or jurisdiction of the United States or in any
foreign country.
Section 3. The capital with which the corporation shall commence
business shall be an amount not less than one thousand dollars. The
authorized capital shall be two million five hundred thousand dollars
divided into one thousand shares of common capital stock with a par
value of twenty-five hundred dollars each.
We hereby declare, under the penalties of false statement that the
statements made in the foregoing Certificate are true.
Dated: February 10, 1982 HARTFORD LIFE INSURANCE COMPANY
By /s/ Robert B. Goode, Jr.
-------------------------------
Attest:
/s/ William A. McMahon
- ---------------------------------------
<PAGE>
Exhibit 1A(6)(b)
By-Laws
of the
HARTFORD LIFE INSURANCE COMPANY
As passed and effective
February 13, 1978
and amended on
July 13, 1978
January 5, 1979
and
February 29, 1984
<PAGE>
ARTICLE I
Name - Home Office
Section 1. This corporation shall be named HARTFORD LIFE INSURANCE
COMPANY.
Section 2. The principal place of business and Home Office shall be
in the City of Hartford, Connecticut.
ARTICLE II
Stockholders' Meetings - Notice - Quorum - Right to Vote
Section 1. All meetings of the Stockholders shall be held at the
principal business office of the Company unless the Directors shall otherwise
provide and direct.
Section 2. The annual meeting of the Stockholders shall be held on
such day and at such hour as the Board of Directors may decide. For cause
the Board of Directors may postpone or adjourn such annual meeting to any other
time during the year.
Section 3. Special meetings of the Stockholders may be called by the
Board of Directors, the Executive Committee, the Chairman of the Board, the
President or any Vice President.
Section 4. Notice of Stockholders' meetings shall be mailed to each
Stockholder, at his address as it appears on the records of the Company, at
least seven days prior to the meeting. The notice shall state the place, date
and time of the meeting and shall specify all matters proposed to be acted upon
at the meeting.
Section 5. At each annual meeting the Stockholders shall choose
Directors as hereinafter provided.
Section 6. Each Stockholder shall be entitled to one vote for each
share of stock held by him at all meetings of the Company. Proxies may be
authorized by written power of attorney.
Section 7. Holders of one-half of the whole amount of the stock
issued and outstanding shall constitute a quorum.
<PAGE>
- 2 -
Section 8. Each Stockholder shall be entitled to a certificate of
stock which shall be signed by the President or a Vice President, and either the
Treasurer or an Assistant Treasurer of the Company, and shall bear the seal of
the Company, but such signatures and seal may be facsimile if permitted by the
laws of the State of Connecticut.
ARTICLE III
Directors - Meetings - Quorum
Section 1. The property, business and affairs of the Company shall be
managed by a board of not less than three nor more than twenty Directors, who
shall be chosen by ballot at each annual meeting. Vacancies occurring between
annual meetings may be filled by the Board of Directors by election. Each
Director shall hold office until the next annual meeting of Stockholders and
until his successor is chosen and qualified.
Section 2. Meetings of the Board of Directors may be called by the
direction of the Chairman of the Board, the President, or any three Directors.
Section 3. Three days' notice of meetings of the Board of Directors
shall be given to each Director, either personally or by mail or telegraph, at
his residence or usual place of business, but notice may be waived, at any time,
in writing.
Section 4. One third of the number of existing directorships, but not
less than two Directors, shall constitute a quorum.
ARTICLE IV
Election of Officers - Duties of Board of
Directors and Executive Committee
Section 1. The President shall be elected by the Board of Directors.
The Board of Directors may also elect one of its members to serve as
Chairman of the Board of Directors. The Chairman of the Board, or an individual
appointed by him, shall have authority to appoint all other officers, except as
stated herein, including one or more Vice Presidents and Assistant Vice
Presidents, the Treasurer
<PAGE>
- 3 -
and one or more Associate or Assistant Treasurers, one or more Secretaries and
Assistant Secretaries and such other Officers as the Chairman of the Board may
from time to time designate. All Officers of the Company shall hold office
during the pleasure of the Board of Directors. The Directors may require any
Officer of the Company to give security for the faithful performance of his
duties.
Section 2. The Directors may fill any vacancy among the officers by
election for the unexpired term.
Section 3. The Board of Directors may appoint from its own number an
Executive Committee of not less than five Directors. The Executive Committee
may exercise all powers vested in and conferred upon the Board of Directors at
any time when the Board is not in session. A majority of the members of said
Committee shall constitute a quorum.
Section 4. Meetings of the Executive Committee shall be called
whenever the Chairman of the Board, the President or a majority of its members
shall request. Forty-eight hours' notice shall be given of meetings but notice
may be waived, at any time, in writing.
Section 5. The Board of Directors shall annually appoint from its own
number a Finance Committee of not less than three Directors, whose duties shall
be as hereinafter provided.
Section 6. The Board of Directors may, at any time, appoint such
other Committees, not necessarily from its own number, as it may deem necessary
for the proper conduct of the business of the Company, which Committees shall
have only such powers and duties as are specifically assigned to them by the
Board of Directors or the Executive Committee.
Section 7. The Board of Directors may make contributions, in such
amounts as it determines to be reasonable, for public welfare or for charitable,
scientific or educational purposes, subject to the limits and restrictions
imposed by law and to such rules and regulations consistent with law as it
makes.
ARTICLE V
Officers
Chairman of the Board
Section 1. The Chairman of the Board shall preside at the meetings of
the Board of Directors and the Executive Committee and, in the absence of the
Chairman of the Finance Committee, at the meetings of the Finance Committee. In
the absence or inability of the Chairman of the Board to so preside, the
President shall preside in his place.
<PAGE>
- 4 -
President
Section 2. The President, under the supervision and control of the
Chairman of the Board, shall have general charge and oversight of the business
and affairs of the Company. The President shall preside at the meetings of the
Stockholders. He shall be a member of and shall preside at all meetings of all
Committees not referred to in Section 1 of this ARTICLE except that he may
designate a Chairman for each such other Committee.
Section 3. In the absence or inability of the President to perform
his duties, the Chairman of the Board may designate a Vice President to exercise
the powers and perform the duties of the President during such absence or
inability.
Secretary
Section 4. The Secretary of the Corporation shall keep a record of
all the meetings of the Company, of the Board of Directors and of the Executive
Committee, and he shall discharge all other duties specifically required of the
Secretary by law. The other Secretaries and Assistant Secretaries shall perform
such duties as may be assigned to them by the Board of Directors or by their
senior officers and any Secretary or Assistant Secretary may affix the seal of
the Company and attest it and the signature of any officer to any and all
instruments.
Treasurer
Section 5. The Treasurer shall keep, or cause to be kept, full and
accurate accounts of the Company. He shall see that the funds of the Company
are disbursed as may be ordered by the Board of Directors or the Finance
Committee. He shall have charge of all moneys paid to the Company and on
deposit to the credit of the Company or in any other properly authorized name,
in such banks or depositories as may be designated in a manner provided by these
by-laws. He shall also discharge all other duties that may be required of him
by law.
Other Officers
Section 6. The other officers shall perform such duties as may be
assigned to them by the President or the Board of Directors.
<PAGE>
- 5 -
ARTICLE VI
Finance Committee
Section 1. If a Finance Committee is established it shall be the duty
of that committee to supervise the investment of the funds of the Company in
securities in which insurance companies are permitted by law to invest, and all
other matters connected with the management of investments. If no Finance
Committee is established this duty shall be performed by the Board of Directors.
Section 2. All loans or purchases for the investment and reinvestment
of the funds of the Company shall be submitted for approval to the Finance
Committee, if not specifically approved by the Board of Directors.
Section 3. Sale or transfer of any stocks or bonds shall be made upon
authorization of the Finance Committee unless specifically authorized by the
Board of Directors.
Section 4. Transfers of stock and registered bonds, deeds, leases,
releases, sales, mortgages chattel or real, assignments or partial releases of
mortgages chattel or real, and in general all instruments of defeasance of
property and all agreements or contracts affecting the same, except discharges
of mortgages and entries to foreclose the same as hereinafter provided, shall
be authorized by the Finance Committee or the Board of Directors, and be
executed jointly for the Company by two persons, to wit: The Chairman of the
Board, the President or a Vice President, and a Secretary, the Treasurer or an
Assistant Treasurer, but may be acknowledged and delivered by either one of
those executing the instrument; provided, however, that either a Secretary, the
Treasurer, or an Assistant Treasurer alone, when authorized as aforesaid, or any
person specially authorized by the Finance Committee as attorney for the
Company, may make entry to foreclose any mortgage, and a Secretary, the
Treasurer or an Assistant Treasurer alone is authorized, without the necessity
of further authority, to discharge by deed or otherwise any mortgage on payment
to the Company of the principal, interest and all charges due.
Section 5. The Finance Committee may fix times and places for regular
meetings. No notice of regular meetings shall be necessary. Reasonable notice
shall be given of special meetings but the action of a majority of the Finance
Committee at any meeting shall be valid notwithstanding any defect in the notice
of such meeting.
<PAGE>
- 6 -
Section 6. In the absence of specific authorization from the Board of
Directors or the Finance Committee, the Chairman of the Board, the President, a
Vice President or the Treasurer shall have the power to vote or execute proxies
for voting any shares held by the Company.
ARTICLE VII
Funds
Section 1. All monies belonging to the Company shall be deposited to
the credit of the Company, or in such other name as the Finance Committee,
the Chairman of the Finance Committee or such executive officers as are
designated by the Board of Directors shall direct, in such bank or banks as may
be designated from time to time by the Finance Committee, the Chairman of
the Finance Committee, or by such executive officers as are designated by the
Board of Directors. Such monies shall be drawn only on checks or drafts signed
by any two executive officers of the Company, provided that the Board of
Directors may authorize the withdrawal of such monies by check or draft signed
with the facsimile signature of any one or more executive officers, and
provided further, that the Finance Committee may authorize such alternative
methods of withdrawals as it deems proper.
The Board of Directors, the President, the Chairman of the Finance
Committee, a Vice President, or such executive officers as are designated by
the Board of Directors may authorize withdrawal of funds by checks or drafts
drawn at offices of the Company to be signed by Managers, General Agents or
employees of the Company, provided that all such checks or drafts shall be
signed by two such authorized persons, except checks or drafts used for the
payment of claims or losses which need be signed by only one such authorized
person, and provided further that the Board of Directors of the Company or
executive officers designated by the Board of Directors may impose such
limitations or restrictions upon the withdrawal of such funds as it deems
proper.
<PAGE>
- 7 -
ARTICLE VIII
Indemnity of Directors and Officers
Section 1. The Company shall indemnify and hold harmless each
Director and officer now or hereafter serving the Company, whether or not then
in office, from and against any and all claims and liabilities to which he may
be or become subject by reason of his being or having been a Director or officer
of the Company, or of any other company which he serves as a Director or officer
at the request of the Company, to the extent such is consistent with the
statutory provisions pertaining to indemnification, and shall provide such
further indemnification for legal and/or all other expenses reasonably incurred
in connection with defending against such claims and liabilities as is
consistent with statutory requirements.
ARTICLE IX
Amendment of ByLaws
Section 1. The Directors shall have power to adopt, amend and repeal
such bylaws as may be deemed necessary or appropriate for the management of the
property and affairs of the Company.
Section 2. The Stockholders at any annual or special meeting may
amend or repeal these bylaws or adopt new ones if the notice of such meeting
contains a statement of the proposed alteration, amendment, repeal or adoption,
or the substance thereof.
STATE OF CONNECTICUT)
) ss. Hartford, Connecticut
COUNTY OF HARTFORD ) May 31, 1985
This is to certify that the foregoing is a true copy of the bylaws of
Hartford Life Insurance Company and that they are in full force and effect at
this date.
ATTEST:
______________________________
Secretary
<PAGE>
Exhibit 1A(10)
APPLICATION FOR VARIABLE LIFE INSURANCE
HARTFORD LIFE INSURANCE COMPANY
HARTFORD, CONNECTICUT 05115 [Letterhead] THE HARTFORD
1A.PROPOSED INSURED (PRINT FULL NAME) B. SEX
First Name Middle Initial Last Name / / M
/ / F
- --------------------------------------------------------------------------------
C. BIRTH DATE D. AGE NEAREST BIRTHDAY E. PLACE OF BIRTH
Mo Day Yr
- --------------------------------------------------------------------------------
F.MARITAL STATUS / / SINGLE / / MARRIED / / WIDOWED / / SEPARATED / / DIVORCED
- --------------------------------------------------------------------------------
G.NAME ALL PRESENT OCCUPATIONS & DESCRIBE DUTIES:
- --------------------------------------------------------------------------------
H.RESIDENCE ADDRESS: MAIL TO
No. Street City State Zip
- --------------------------------------------------------------------------------
I.BUSINESS ADDRESS:NAME
No. Street City State Zip
- --------------------------------------------------------------------------------
2A. BENEFICIARY Print full name and relationship to Proposed Insured.
Primary Secondary
- --------------------------------------------------------------------------------
B. OWNER: Name
Address: No. Street City State Zip
- --------------------------------------------------------------------------------
C. SOCIAL SECURITY OR TAX I.D. NUMBER: Insured Owner
- --------------------------------------------------------------------------------
3A. INITIAL PREMIUM $ D. SELECT ONE OR MORE FUNDS AND INDICATE
--------------- ALLOCATION
(Is premium submitted with / / GNMA Fund _________ %
application?) / / Money Market Fund _________ %
YES NO / / Fixed Income Fund _________ %
/ / / / / / Government Securities Fund _________ %
B. INITIAL DEATH BENEFIT __________ / / Stock Fund _________ %
/ / Advisers Fund _________ %
C. PLAN ___________________________ / / Aggressive Growth Fund _________ %
/ / Other: __________________ _________ %
(20% minimum per Fund) Total 100%
- --------------------------------------------------------------------------------
IF THE ANSWERS TO QUESTION NUMBER 4 ARE NO, DATE AND SIGN THE APPLICATION. IF
ANY OF THE ANSWERS ARE YES, COMPLETE THE SIMPLIFIED UNDERWRITING APPLICATION.
- --------------------------------------------------------------------------------
YES NO
4. A. Have you ever had or been treated for cancer, diabetes, heart / / / /
attack, angina, stroke, brain or spinal cord disorder or been declined
life insurance?
B. During the past 5 years have you had or been treated for an / / / /
emotional disorder, epilepsy, emphysema, kidney failure,
liver disorder or been advised to have treatment for alcohol
or drug abuse?
C. During the past year have you been confined in a hospital, or / / / /
consulted a physician or other practitioner for other than a
routine general examination, virus, cold, minor injury or
pregnancy.
D. During the past year did you, or do you in the future intend
to, pilot an ultralight aircraft or engage in hang-gliding,
skydiving, or motor vehicle racing? / / / /
E. Are you purchasing this insurance to replace or change any / / / /
life insurance or annuities-in-force?
- --------------------------------------------------------------------------------
5. SUITABILITY YES NO
A. Do you understand that the death benefit and cash value may
increase or decrease depending on the investment return of
the contract? / / / /
B. Do you believe that this contract will meet your insurance
needs and financial objectives? / / / /
C. Did you receive the appropriate Fund Prospectus? / / / /
- --------------------------------------------------------------------------------
6. Corrections and Amendments (H.O. Use Only)
- --------------------------------------------------------------------------------
I have received a conditional receipt with respect to my advance payment. I
have read and I understand and agree to the provisions and limitations of such
receipt.
Date: _________________________ Signature of
Proposed Insured _______________________
<PAGE>
I UNDERSTAND THAT THE DEATH BENEFIT AND THE CASH VALUE UNDER THIS CONTRACT ARE
VARIABLE AND MAY INCREASE OR DECREASE DEPENDING ON THE INVESTMENT RETURN OF THE
CONTRACT. NO MINIMUM CASH VALUE IS GUARANTEED.
I DECLARE to the best of my knowledge and belief that all of the answers
herein are complete and true.
IT IS UNDERSTOOD AND AGREED that: (1) The answers herein, are to be considered
the basis for any insurance issued, (2) The Company is not bound by any
statements which I have made to any person, if not written or printed in this
application. (3) A copy of this application will form part of any contract
issued. (4) The Applicant, if other than a Proposed Insured, must adopt and
confirm the answers herein. (5) Unless agreed to in writing, no change will be
made to the: a) amounts; b) plan; or c) classification. (6) The insurance
applied for with this application will not take effect unless: a) A contract
is issued; b) The contract is delivered to the Applicant; c) The first full
premium is paid; d) Modification forms or other forms for which a signature is
required, if any, are completed at the time of delivery; e) The answers herein
are without material change at the time of delivery; f) The Proposed Insured
is living at the time of delivery. The only exception to this is stated in the
Conditional Receipt, if any, dated the same as and given in conjunction with
this application for the advance payment recorded in the application. (7)
Acceptance of any contract issued will confirm any changes or amendments noted
by the Company in the "Corrections and Amendments" space in the application.
(8) Only an Officer of the Company can make, modify, alter or discharge contract
or waive any of the Company's rights or requirements.
OWNERSHIP -- The contract may be owned by: 1) The Applicant, if other than the
Proposed Insured; 2) the Proposed Insured, if the Proposed Insured is the
Applicant.
DATED AT ___________________________ SIGNATURE OF
City State PROPOSED INSURED ______________________
This ______ day of _________ 19 ____ IF THE CONTRACT IS TO BE OWNED BY OTHER
THAN THE PROPOSED INSURED, that person
should sign below.
Witness ____________________________ SIGNATURE OF
(Licensed Resident Producer, if APPLICANT ___________________________
required by law)
- --------------------------------------------------------------------------------
PRODUCER REPORT
- --------------------------------------------------------------------------------
1. PHI INFORMATION 2. Is the Proposed Insured employed and
Most convenient time to call:______ working regularly? / / Yes / / No
Tel.No.( )________________Ext.____ (If homemaker, student or retiree,
answer 'YES')
- --------------------------------------------------------------------------------
3. PROPOSED INSURED APPLICANT 4. Do you have knowledge or reason to
believe that replacement of existing
INCOME life insurance or annuities is
NET WORTH involved? Yes / / No / /
- --------------------------------------------------------------------------------
PRODUCER'S CERTIFICATION -- I CERTIFY that I asked each question separately. The
answers were recorded as given and they are complete and accurate to the best of
my knowledge and belief. I CERTIFY that I am duly licensed in the state in which
this application was signed and that I am a NASD Registered Representative.
PRODUCER, GEN'L AGT., STAFF REPRESENTATIVE
(Signature): __________________________________
PRODUCER OF RECORD
/ / / / / / / / / / / / / / / / / / / / / / ____________
Contracted Producer/Agency/Broker-Dealer of Producer Code Prod. Credit %
record for Commission Purposes
by ________________________________________________ / / / / / / / / ____________
Licensed Soliciting Sub-Producer (if different
than contracted Producer)
- --------------------------------------------------------------------------------
(Complete following for Commission Split Only)
______________________/ / / / / / / / / / / / / / / / / / / / / / ____________
Contracted Producer/Agency of Producer Code Prod. Credit %
Record for Producer Credit
Purposes
General Agency of Sales Office Name
and No.(Use Stamp) __________________________________ F.O. / / / / / /
FOR SALES OFFICE USE ONLY: Hartford Account
Executive's Name _____________ and Staff Code / / / /
BUSINESS: / / ASSISTED / / UNASSISTED
<PAGE>
EXHIBIT 1 A.(11)
HARTFORD LIFE INSURANCE COMPANY'S
DESCRIPTION OF TRANSFER AND REDEMPTION PROCEDURES AND
METHOD OF COMPUTING ADJUSTMENTS IN PAYMENTS AND
CASH VALUES UPON CONVERSION TO
FIXED BENEFIT POLICIES
This document sets forth, as required by Rule 6e-3(T)(b)(12)(ii), the
administrative procedures that will be followed by Hartford Insurance Company
("Hartford") in connection with the issuance of its modified flexible premium
variable life insurance policy (the "Policy"), the transfer of assets held
thereunder, and the redemption by Policy Owners of their interests in said
Policies. The document also describes the method that Hartford will use in
adjusting the payments and cash values when a Policy is exchanged for a fixed
benefit insurance policy pursuant to Rule 6e-3(T)(b)(13)(v)(B).
TRANSFER AND REDEMPTION PROCEDURES
I. PURCHASE AND RELATED TRANSACTIONS
A. PREMIUM SCHEDULES AND UNDERWRITING STANDARDS
This Policy is a flexible premium policy. During the Guarantee Period, if
Scheduled Premium Payments are made, the Policy will remain in force.
Premiums for the Policies will not be the same for all Policy Owners. The
amount of the Scheduled Premium is based upon the Insured's Age, premium
class and the Initial Face Amount of the Policy. The Policies will be
offered and sold pursuant to established underwriting standards and in
accordance with state insurance laws, which prohibit unfair discrimination
among Policy Owners; but recognize that premiums must be based upon factors
such as age, health or occupation.
B. APPLICATION AND INITIAL PREMIUM PROCESSING
Upon receipt of a completed application, Hartford will follow certain
insurance underwriting (i.e., evaluation of risks) procedures designed to
determine whether the applicant is insurable. This process may involve such
verification procedures as medical examinations and may require that
further information be provided by the proposed Insured before a
determination can be made. A Policy will not be issued and consequently a
Policy Issue Date established, until this underwriting procedure has been
completed.
If a premium is submitted with the Policy application, insurance coverage
will begin immediately if the proposed Insured is insurable at a standard
rate under a conditional receipt agreement. Otherwise, insurance coverage
will not begin until the Policy's Issue
<PAGE>
Date. In either case, the Policy when issued will be effective from the
date Hartford receives the initial premium at its National Service Center.
If a premium is not paid with the application, insurance coverage will
begin and the Policy will be effective on the later of the date
underwriting determination is made or on the date the premium is received.
C. PREMIUM ALLOCATION
In the application for a Policy, the Policy Owner can allocate the initial
premium among the Fixed Account and various Sub-Accounts. Hartford will
allocate the entire premium to the Hartford Money Market Sub-Account. At a
later date, the value of the Policy Owner's interest in the Hartford Money
Market Sub-Account will be allocated among the Fixed Account and the
Sub-Accounts of Separate Account VL I in accordance with the Policy Owner's
instructions in the application for insurance. You may select up to five
(5) Funds to allocate your premium. An allocation to any one Fund must be
for 10% or more, in whole percentages.
D. POLICY LOANS
A Policy Owner may obtain a cash loan from Hartford, which is secured by
the Policy. The aggregate amount of all loans (including the currently
applied for loan) may not exceed 90% of the Cash Value at the time a loan
is requested.
The amount of each loan will be transferred on a Pro Rata Basis from each
of the Sub-Accounts (unless the Policy Owner specifies otherwise) to the
Loan Account. The Loan Account is a mechanism used to ensure that any
outstanding Indebtedness remains fully secured by the policy values.
LOAN INTEREST
Interest will accrue daily on the Indebtedness at the Policy Loan Interest
Rate indicated in the Policy. The difference between the value of the Loan
Account and the Indebtedness will be transferred on a pro rata basis from
the Sub-Accounts to the Loan Account on each Monthly Activity Date.
CREDITED INTEREST
During the first ten Policy Years, any amounts in the Loan Account will be
credited with interest at a rate equal to the Policy Loan Rate, minus 2%.
For Policy Years 11 and beyond, except for Preferred Loans described below,
the Loan Account will be credited with interest at a rate equal to the
policy Loan Rate applicable to that Indebtedness, minus 1%.
<PAGE>
PREFERRED LOAN
If, any time after the tenth Policy Anniversary, the Cash Value exceeds the
total of all premiums paid since issue, a Preferred Loan is available. The
amount available for a Preferred Loan is the amount by which the Cash Value
exceeds total premiums paid. The amount of the Loan Account which equals a
Preferred Loan will be credited with interest at a rate equal to the Policy
Loan Rate. The amount of Indebtedness that qualified as a Preferred Loan is
determined on each Monthly Activity Date.
LOAN REPAYMENTS
You can repay the any part of or the entire loan at any time.
The amount of loan repayment will be deducted from the Loan Account and
will be allocated among the Fixed Account and Sub-Account in the same
percentage as premiums are allocated.
TERMINATION DUE TO EXCESSIVE INDEBTEDNESS
If total Indebtedness equals or exceeds the Cash Value, the Policy will
terminate 61 days after we have mailed notice to your last known address
and that of any assignees of record. If sufficient loan repayment if not
made by the end of the Grace Period, the policy will end without value.
EFFECT OF LOANS ON ACCOUNT VALUE
A loan, whether or not repaid, will have a permanent effect on the Account
Value because the investment results of each Sub-Account will apply only to
the amount remaining in such Sub-Accounts. In addition, the rate of
interest credited to the Fixed Account will usually be different than the
rate credited to the Loan Account. The longer a loan is outstanding, the
greater the effect is likely to be. The effect could be favorable or
unfavorable. If the Fixed Account and Sub-Accounts earn more than the
annual interest rate for funds held in the Loan Account, a Policy Owner's
Account Value will not increase as rapidly as it would have had no loan
been made. If the Fixed Account and Sub-Accounts earn less than the Loan
Account, the Policy Owners Account Value will be greater than it would have
been had no loan been made. Also, if not repaid, the aggregate amount of
the outstanding loan (i.e., the Indebtedness) will reduce the Death
Proceeds and Cash Surrender Value otherwise payable.
II. TRANSFER AMONG INVESTMENT DIVISIONS
The Separate Account currently has 22 Sub-Accounts, each of which invests in
shares of an open-end diversified management investment company registered with
the Commission and a
<PAGE>
Fixed Account. At any time, the Policy Owner may transfer value among the Funds
or the Fixed Account. We reserve the right at a future date to limit the size of
transfers and remaining balances and to limit the number and frequency of
transfers.
A transfer will take effect on the date the written request (or telephone
request) is received at Hartford unless a later date is designated in the
request for transfer. A transfer between the Loan Accounts and the Separate
Account incident to the repayment or making of a loan under the Policy will not
be considered a transfer. A transfer from the Money Market Fund at the end of
the Right to Cancel Period or a transfer arising because of substitution of
securities by Hartford will also not be considered a transfer.
III. "REDEMPTION" PROCEDURES: SURRENDER AND RELATED TRANSACTIONS
A. SURRENDER FOR CASH VALUE
At any time before the death of the Insured and while the Policy is in
force, the Policy Owner may completely surrender the Policy by written
request. The surrender payment from the Sub-Accounts will be made within
seven days after Hartford receives the written request, unless payment is
postponed pursuant to the relevant provision of the Investment Company Act
of 1940. The surrender payment from the Fixed Account may be postponed up
to six months under state law. The surrender payment will equal the Policy
Owner's Cash Surrender Value.
B. BENEFIT CLAIMS
As long as the Policy remains in force, Hartford will usually pay the Death
Proceeds to the named Beneficiary within seven days after receipt of due
proof of death of the Insured unless the Policy is contested. Payment of
the Death Proceeds may be postponed as permitted pursuant to the relevant
provisions of the Investment Company Act of 1940 and up to six months if
the Account Values were in the Fixed Account.
The Death Proceeds equal the Death Benefit under the Policy less all
outstanding loans. The Death Benefit will be determined on the date
Hartford receives written notice of death and is a function of the Death
Benefit Option chosen by the Policy Owner.
In lieu of payment of the death proceeds in a single sum, an election may
be made to apply all or a portion of the proceeds under one of the fixed
benefit settlement options described in the Policy or a combination of
options. The election may be made by the Policy Owner during the Insured's
lifetime. The Beneficiary may make or change an election within 90 days of
the death of the Insured, unless the Policy Owner has made an irrevocable
election. The fixed benefit settlement options are subject to the
restrictions and limitations set forth in the Policy.
<PAGE>
C. POLICY LAPSATION
During the Guarantee Period: If, on any given Monthly Activity Date the
Policy Surplus for that Policy Year is zero or less than the Indebtedness,
all Schedule Premiums due in that Policy Year, on or before that date, must
be paid. For any such Scheduled Premium not paid on or before its due date,
We will allow a Grace Period which ends 61 days after that Monthly Activity
Date. During this time the policy will continue in force. If any such
Scheduled Premium is not paid by the end of this Grace Period, the Policy
will terminate except as provided under the Non-Forfeiture Options or
unless You have elected the Automatic Premium Loan Option.
After the Guarantee Period: The Policy will terminate 61 days after a
Monthly Activity Date on which the Cash Surrender Value is less than zero.
The 61-day period is the Grace Period. If sufficient premium is not paid by
the end of the Grace Period, the Policy will terminate without value. The
Company will mail the Owner and any assignee written notice of the amount
of premium that will be required to continue the policy in force at least
61 days before the end of the Grace Period. The premiums required will be
no greater than the amount required to pay three (3) Monthly Deduction
Amounts as of the day the Grace Period began. If that premium is not paid
by the end of the Grace Period, the policy will terminate.
If the Policy lapses, the Policy Owner may reinstate the Policy by payment
of the reinstatement premium (and any applicable charges) shown in the
Policy. A request for reinstatement may be made at any time within five
years of lapse. If a loan was outstanding at the time of lapse, Hartford
will require repayment of the loan before permitting reinstatement or the
loan will also be reinstated. In addition, Hartford reserves the right to
require satisfactory evidence of insurability.
D. POLICY LOANS
See "Purchase and Related Transactions," Section I.D. on page 2 of this
Exhibit.
CASH ADJUSTMENT UPON EXCHANGE OF POLICY
If the Policy is in effect, The Policy Owner may exchange it:
1. any time during the 24 months following its Date of Issue;
2. for a permanent life insurance contract offered by Hartford on the life of
the Insured;
3. without evidence of insurability.
The new policy will be issued by Hartford:
<PAGE>
1. with an amount at risk which equals or is less than the amount at risk in
effect on the Exchange Date;
2. with premiums based on the same risk classification as the Policy.
This exchange is subject to adjustments in payments and Account Values to
reflect variances, if any, in the payments and Account Values under the Policy
and the new policy.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY, INC.
AND
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY, INC.
POWER OF ATTORNEY
Donald R. Frahm
Bruce D. Gardner
Joseph H. Gareau
John P. Ginnetti
Thomas M. Marra
Leonard E. Odell, Jr.
Lowndes A. Smith
Raymond P. Welnicki
Lizabeth H. Zlatkus
Donald J. Znamierowski
do hereby jointly and severally authorize Bruce D. Gardner and/or Rodney J.
Vessels to sign as their agent, any Registration Statement, pre-effective
amendment, and any post-effective amendment of the Hartford Life Insurance
Company, Inc. and Hartford Life and Accident Insurance Company, Inc. under the
Securities Act of 1933 and/or the Investment Company Act of 1940.
IN WITNESS WHEREOF, the undersigned have executed this Power of Attorney for the
purpose herein set forth.
Dated:
- ----------------------------------- ----------------------------------
Donald R. Frahm
Dated:
- ----------------------------------- ----------------------------------
Bruce D. Gardner
Dated:
- ----------------------------------- ----------------------------------
John P. Ginnetti
Dated:
- ----------------------------------- ----------------------------------
Thomas M. Marra
Dated:
- ----------------------------------- ----------------------------------
Leonard E. Odell, Jr.
Dated:
- ----------------------------------- ----------------------------------
Lowndes A. Smith
Dated:
- ----------------------------------- ----------------------------------
Raymond P. Welnicki
Dated:
- ----------------------------------- ----------------------------------
Lizabeth H. Zlatkus
Dated:
- ----------------------------------- ----------------------------------
Donald J. Znamierowski
<PAGE>
[LOGO]
[ITT HARTFORD LETTERHEAD]
April 12, 1995
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Dear Sirs;
This opinion is furnished in connection with the registration statement under
the Securities Act of 1933 as amended, of a certain flexible premium variable
life insurance policy (the "Policy") that will be offered and sold by Hartford
Life Insurance Company and certain units of interest to be issued in connection
with the Policy.
The hypothetical illustrations of the Policy used in this Registration Statement
accurately reflect reasonable estimates of projected performance of the Policy
under the stipulated rates of investment return, the contractual expense
deductions and guaranteed cost-of-insurance rates, and utilizing a reasonable
estimation for expected fund operating expenses.
I hereby consent to the use of this opinion as an exhibit to the Securities Act
Registration Statement on Form S-6 and to the reference to my name under the
heading "Experts" in the Prospectus included in the Securities Act Registration
Statement.
Very truly yours,
/s/ Ken A. McCullum
Ken A. McCullum
Director Individual Life
Product Development
