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PUTNAM CAPITAL MANAGER VARIABLE ANNUITY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SUPPLEMENT DATED SEPTEMBER 30, 1998 TO THE PROSPECTUS DATED MAY 1, 1998
FOR THE PUTNAM CAPITAL MANAGER VARIABLE ANNUITY
The second paragraph of the first page of the prospectus should be deleted and
replaced with the following language:
There are currently twenty-one (21) Sub-Accounts available under the Contract.
The following underlying investment portfolios ("Funds") of Class IA shares of
Putnam Variable Trust are available under the Contracts: Putnam VT Asia Pacific
Growth Fund, Putnam VT Diversified Income Fund, Putnam VT The George Putnam Fund
of Boston, Putnam VT Global Asset Allocation Fund, Putnam VT Global Growth Fund,
Putnam VT Growth and Income Fund, Putnam VT Health Sciences Fund, Putnam VT High
Yield Fund, Putnam VT International Growth Fund, Putnam VT International Growth
and Income Fund, Putnam VT International New Opportunities Fund, Putnam VT
Investors Fund, Putnam VT Money Market Fund, Putnam VT New Opportunities Fund,
Putnam VT New Value Fund, Putnam VT OTC & Emerging Growth Fund, Putnam VT
Research Fund, Putnam VT U.S. Government and High Quality Bond Fund, Putnam VT
Utilities Growth and Income Fund, Putnam VT Vista Fund, and Putnam VT Voyager
Fund.
The tables entitled "Annual Fund Operating Expenses" and "Example" under the
section titled "Putnam Capital Manager III" should be deleted and replaced
with the following language:
ANNUAL FUND OPERATING EXPENSES
(as a percentage of net assets)
<TABLE>
<CAPTION>
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TOTAL FUND
MANAGEMENT OTHER OPERATING
FEES (AFTER EXPENSES (AFTER EXPENSES (AFTER
ANY FEE ANY EXPENSE ANY FEE WAIVERS
WAIVERS) REIMBURSEMENT) AND EXPENSE
REIMBURSEMENT)
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<S> <C> <C> <C>
Putnam VT Asia Pacific Growth Fund 0.80% 0.27% 1.07%
Putnam VT Diversified Income Fund 0.69% 0.11% 0.80%
Putnam VT The George Putnam Fund of Boston (1) 0.49% 0.36% 0.85%
Putnam VT Global Asset Allocation Fund 0.66% 0.11% 0.77%
Putnam VT Global Growth Fund 0.60% 0.15% 0.75%
Putnam VT Growth and Income Fund 0.47% 0.04% 0.51%
Putnam VT Health Sciences Fund (1) 0.56% 0.34% 0.90%
Putnam VT High Yield Fund 0.66% 0.06% 0.72%
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</TABLE>
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<TABLE>
<CAPTION>
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<S> <C> <C> <C>
Putnam VT International Growth Fund (1) 0.73% 0.47% 1.20%
Putnam VT International Growth and Income Fund 0.80% 0.32% 1.12%
Putnam VT International New Opportunities Fund (1) 0.92% 0.68% 1.60%
Putnam VT Investors Fund (1) 0.52% 0.33% 0.85%
Putnam VT Money Market Fund 0.45% 0.09% 0.54%
Putnam VT New Opportunities Fund 0.58% 0.05% 0.63%
Putnam VT New Value Fund 0.70% 0.15% 0.85%
Putnam VT OTC & Emerging Growth Fund (1) 0.56% 0.34% 0.90%
Putnam VT Research Fund(1) 0.37% 0.48% 0.85%
Putnam VT U.S. Government and High Quality Bond Fund 0.61% 0.08% 0.69%
Putnam VT Utilities Growth and Income Fund 0.67% 0.07% 0.74%
Putnam VT Vista Fund 0.65% 0.22% 0.87%
Putnam VT Voyager Fund 0.54% 0.05% 0.59%
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</TABLE>
(1) The "Management Fees" and "Other Expenses" shown in the table above reflect
an expense limitation. In the absence of an expense limitation,
"Management Fees", "Other Expenses", and "Total Fund Operating Expenses"
would have been:
<TABLE>
<CAPTION>
TOTAL FUND OPERATING
MANAGEMENT FEES OTHER EXPENSES EXPENSES
<S> <C> <C> <C>
Putnam VT The George 0.65 0.36 1.01
Putnam Fund of Boston*
Putnam VT Health Sciences 0.70 0.34 1.04
Fund*
Putnam VT International 0.80 0.47 1.27
Growth Fund
Putnam VT International 1.20 0.68 1.88
New Opportunities Fund
Putnam VT Investors Fund* 0.65 0.33 0.98
Putnam VT OTC & 0.70 0.34 1.04
Emerging Growth Fund*
Putnam VT Research Fund* 0.65 0.48 1.13
</TABLE>
*Estimated "Management Fees", "Other Expenses" and "Total Fund Operating
Expenses".
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EXAMPLE_PCM III
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<CAPTION>
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If you surrender your Contract at the If you annuitize your Contract at the
end of the applicable time period, you end of the applicable time period,
would pay the following expenses on a you would pay the following expenses
$1,000 investment, assuming a 5% annual on a $1,000 investment, assuming a
return on assets: 5% annual return on assets:
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SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Putnam Asia Pacific Growth Sub-Account $96 $129 $166 $288 $25 $79 $135 $288
Putnam Diversified Income Sub-Account 93 121 152 261 23 71 121 260
The George Putnam Fund Sub-Account 94 123 n/a n/a 23 72 n/a n/a
Putnam Global Asset Allocation Sub-Account 93 120 150 258 22 70 120 257
Putnam Global Growth Sub-Account 93 120 149 255 22 69 119 255
Putnam Growth and Income Sub-Account 90 112 137 230 20 62 106 230
Putnam Health Sciences Sub-Account 94 124 n/a n/a 24 74 n/a n/a
Putnam High Yield Sub-Account 92 119 148 252 22 68 117 252
Putnam International Growth Sub-Account 97 133 172 301 27 83 142 301
Putnam International Growth and Income Sub-Account 96 131 168 293 26 80 138 293
Putnam International New Opportunities Sub-Account 101 146 192 340 31 95 162 340
Putnam Investors Sub-Account 94 123 n/a n/a 23 72 n/a n/a
Putnam Money Market Sub-Account 90 113 138 233 20 62 108 233
Putnam New Opportunities Sub-Account 91 116 143 243 21 65 112 242
Putnam New Value Sub-Account 94 123 154 266 23 72 124 265
Putnam OTC & Emerging Growth Sub-Account 94 124 N/A N/A 24 74 N/A N/A
Putnam Research Sub-Account 94 123 N/A N/A 23 72 N/A N/A
Putnam U.S. Government and High Quality Bond 92 118 146 249 21 67 115 249
Sub-Account
Putnam Utilities Growth and Income Sub-Account 92 119 149 254 22 69 118 254
Putnam Vista Sub-Account 94 123 155 268 23 73 125 267
Putnam Voyager Sub-Account 91 115 141 239 20 64 110 238
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<CAPTION>
If you do not surrender your Contract,
you would pay the following expenses
on a $1,000 investment, assuming a 5%
annual return on assets:
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SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
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<S> <C> <C> <C> <C>
Putnam Asia Pacific Growth Sub-Account $26 $79 $136 $288
Putnam Diversified Income Sub-Account 23 71 122 261
The George Putnam Fund Sub-Account 24 73 n/a n/a
Putnam Global Asset Allocation Sub-Account 23 70 120 258
Putnam Global Growth Sub-Account 23 70 119 255
Putnam Growth and Income Sub-Account 20 62 107 230
Putnam Health Sciences Sub-Account 24 74 n/a n/a
Putnam High Yield Sub-Account 22 69 118 252
Putnam International Growth Sub-Account 27 83 142 301
Putnam International Growth and Income Sub-Account 26 81 138 293
Putnam International New Opportunities Sub-Account 31 96 162 340
Putnam Investors Sub-Account 24 73 n/a n/a
Putnam Money Market Sub-Account 20 63 108 233
Putnam New Opportunities Sub-Account 21 66 113 243
Putnam New Value Sub-Account 24 73 124 266
Putnam OTC & Emerging Growth Sub-Account 24 74 N/A N/A
Putnam Research Sub-Account 24 73 N/A N/A
Putnam U.S. Government and High Quality Bond 22 68 116 249
Sub-Account
Putnam Utilities Growth and Income Sub-Account 22 69 119 254
Putnam Vista Sub-Account 24 73 125 268
Putnam Voyager Sub-Account 21 65 111 239
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</TABLE>
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The paragraph accompanying the table under the section entitled "Accumulation
Unit Values" should be deleted and replaced with the following language:
The following information has been derived from the audited financial statements
of the separate account, which have been audited by Arthur Andersen LLP,
independent public accountants, as indicated in their report with respect
thereto, and should be read in conjunction with those statements which are
included in the Statement of Additional Information, which is incorporated by
reference in this Prospectus. The George Putnam Sub-Account, Putnam Health
Sciences Sub-Account, Putnam Investors Sub-Account, Putnam OTC & Emerging Growth
Sub-Account and Putnam Research Sub-Account are new Sub-Accounts and are not
shown below.
The paragraph under the section entitled "WHAT TYPES OF INVESTMENTS ARE
AVAILABLE UNDER THE CONTRACT?" should be deleted and replaced with the following
language:
The underlying investments for the Contract are shares of Putnam Variable
Trust, an open-end series investment company with multiple portfolios ("The
Funds") as follows: Putnam VT Asia Pacific Growth Fund, Putnam VT Diversified
Income Fund, Putnam VT The George Putnam Fund of Boston, Putnam VT Global Asset
Allocation Fund, Putnam VT Global Growth Fund, Putnam VT Growth and Income Fund,
Putnam VT Health Sciences Fund, Putnam VT High Yield Fund, Putnam VT
International Growth Fund, Putnam VT International Growth and Income Fund,
Putnam VT International New Opportunities Fund, Putnam VT Investors Fund, Putnam
VT Money Market Fund, Putnam VT New Opportunities Fund, Putnam VT New Value
Fund, Putnam VT OTC & Emerging Growth Fund, Putnam VT Research Fund, Putnam VT
U.S. Government and High Quality Bond Fund, Putnam VT Utilities Growth and
Income Fund, Putnam VT Vista Fund, Putnam VT Voyager Fund, and such other Funds
as shall be offered from time to time, and the Fixed Account, or a combination
of the Funds and the Fixed Account. (See "The Funds" commencing on page __ and
"The Fixed Account" commencing on page __.)
The second paragraph under the section entitled "PERFORMANCE RELATED
INFORMATION" should be deleted and replaced with the following language:
Putnam Asia Pacific Growth Sub-Account, Putnam Diversified Income Sub-Account,
The George Putnam Fund Sub-Account, Putnam Global Asset Allocation Sub-Account,
Putnam Global Growth Sub-Account, Putnam Growth and Income Sub-Account, Putnam
Health Sciences Sub-Account, Putnam High Yield Sub-Account, Putnam International
Growth Sub-Account, Putnam International Growth and Income Sub-Account, Putnam
International New
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Opportunities Sub-Account, Putnam Investors Sub-Account, Putnam Money Market
Sub-Account, Putnam New Opportunities Sub-Account, Putnam New Value Sub-Account,
Putnam OTC & Emerging Growth Sub-Account, Putnam Research Sub-Account, Putnam
U.S. Government and High Quality Bond Sub-Account, Putnam Utilities Growth and
Income Sub-Account, Putnam Vista Sub-Account, and Putnam Voyager Sub-Account may
include total return in advertisements or other sales material.
The following section should be added after the third sentence of the third
paragraph of the section entitled, "The Fixed Account":
Hartford will publish periodically the Fixed Account interest rates that are
currently in effect.
The following sentence should be added after the fifth sentence of the third
paragraph of the section entitled, "The Fixed Account":
Hartford will account for any deductions, surrenders, or transfers from the
Fixed Account on a "first-in, first-out" basis.
The heading "Dollar Cost Averaging Plus Program" at the beginning of the
fourth paragraph of the section entitled "The Fixed Account" should be
deleted.
The following language should be added between the paragraph entitled "Putnam VT
OTC & Emerging Growth Fund" and the paragraph entitled "Putnam VT U.S.
Government and High Quality Bond Fund in the section entitled "The Funds":
PUTNAM VT RESEARCH FUND
Seeks capital appreciation by investing primarily in common stocks
recommended by Putnam Investment Management, Inc., ("Putnam Management"), as
having the greatest potential for capital appreciation.
Under the section entitled "The Funds" delete the fifth paragraph from the
bottom of the section and replace it with the following:
Putnam VT Asia Pacific Growth Fund, Putnam VT Diversified Income Fund, Putnam VT
The George Putnam Fund of Boston, Putnam VT Global Growth Fund, Putnam VT
Growth and Income Fund, Putnam VT Health Sciences Fund, Putnam VT High Yield
Fund, Putnam VT International Growth Fund, Putnam VT International Growth and
Income Fund, Putnam VT International New Opportunities Fund, Putnam VT Investors
Fund, Putnam VT Money Market Fund, Putnam VT New Opportunities Fund, Putnam VT
New Value Fund, Putnam VT OTC & Emerging Growth Fund, Putnam VT Research Fund,
Putnam VT U.S. Government and High Quality Bond Fund, Putnam VT Utilities Growth
and Income Fund, Putnam VT Vista Fund, and Putnam VT Voyager Fund are generally
managed in styles similar to other open-end investment companies which are
managed by Putnam Management and whose shares are generally offered to the
public. These other Putnam funds may, however, employ different investment
practices and may invest in securities different from those in which their
counterpart Funds invest, and consequently will not have identical portfolios or
experience identical investment results.
Under the section entitled "Distribution of the Funds" delete the second
sentence of the second paragraph and replace with the following language:
HSD is an affiliate of Hartford. Hartford's parent company indirectly owns
100% of HSD.
HV-
33-60702
