<PAGE>
PUTNAM HARTFORD CAPITAL MANAGER
SERIES V
PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT TWO
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SUPPLEMENT DATED OCTOBER 2, 2000 TO THE PROSPECTUS DATED MAY 1, 2000
In the section entitled "Definitions," the definition of "Commuted Value" is
deleted and replaced with the following:
COMMUTED VALUE -- The present value of any remaining guaranteed Annuity Payouts.
This amount is calculated using the Assumed Investment Return for variable
dollar amount Annuity Payouts or the underlying rate of return for fixed dollar
amount Annuity Payouts.
In the "Highlights" section under the sub-section "Can I take out any of my
money?", the first paragraph is deleted and replaced with the following
language:
You may Surrender all or part of the amounts you have invested at any time
before we start making Annuity Payouts. Once Annuity Payouts begin, you may take
full or partial Surrenders under the Payments for a Designated Period, Life
Annuity with 120, 180 or 240 Monthly Payments Certain or the Joint and Last
Survivor Life Annuity Payout Options, but only if you selected the variable
dollar amount Annuity Payouts.
- You may have to pay income tax on the money you take out and, if you
Surrender before you are age 59 1/2, you may have to pay an income tax
penalty.
- You may have to pay a Contingent Deferred Sales Charge on the money you
Surrender.
In the "Highlights" section, under the subsection "What Annuity Payout Options
are available?" the second paragraph is deleted and replaced with the following:
You must begin to take payments before the Annuitant's 90th birthday or the
end of the 10th Contract Year, whichever comes later, unless you elect a
later date to begin receiving payments subject to the laws and regulations
then in effect and our approval. If you do not tell us what Annuity Payout
Option you want before that time, we will pay you under the variable Life
Annuity with 120, 180 or 240 Monthly Payments Certain Annuity Payout Option
with period certain payments for 120 months. Please consult your Registered
Representative or call us.
In the "General Contract Information" section, immediately under the table
entitled "Hartford's Ratings" the following paragraph is added:
These ratings apply to Hartford's ability to meet its obligations under the
Contract. The ratings do not apply to the Separate Account or the underlying
Funds.
In the "Surrenders" section, under the sub-section entitled "What kinds of
surrenders are available?", the paragraph entitled "Partial Surrenders after the
Annuity Commencement Date" is deleted and replaced with the following language:
PARTIAL SURRENDERS AFTER THE ANNUITY COMMENCEMENT DATE -- Partial Surrenders are
permitted after the Annuity Commencement Date if you select the Life Annuity
with 120, 180 or 240 Monthly Payments Certain or the Payments for a Designated
Period Annuity Payout Option. You may take partial Surrenders of amounts equal
to the Commuted Value of the payments that we would have made during the "Period
Certain" or the number of years you select under the Annuity Payout Option that
we guarantee to make Annuity Payouts.
To qualify for partial Surrenders under these Annuity Payout Options you must
elect a variable dollar amount Annuity Payout and you must make the Surrender
request during the Period Certain.
Hartford will deduct any applicable Contingent Deferred Sales Charges.
If you elect to take the entire Commuted Value of the Annuity Payouts we would
have made during the Period Certain, Hartford will not make any Annuity Payouts
during the remaining Period Certain. If you elect to take only some of the
Commuted Value of the Annuity Payouts we would have made during the Period
Certain, Hartford will reduce the remaining Annuity Payouts during the remaining
Period Certain. Annuity Payouts that are to be made after the Period Certain is
over will not change.
PLEASE CHECK WITH YOUR TAX ADVISER BECAUSE THERE COULD BE ADVERSE TAX
CONSEQUENCES FOR PARTIAL SURRENDERS AFTER THE ANNUITY COMMENCEMENT DATE.
In the "Annuity Payouts" section, under the sub-section entitled, "When do you
want Annuity Payouts to begin?", the third and fourth sentences of the first
paragraph are deleted and replaced with the following language:
The Annuity Commencement Date cannot be deferred beyond the Annuitant's 90th
birthday or the end of the 10th Contract Year, whichever is later unless you
elect a later date to begin receiving payments subject to the laws and
regulations then in effect and our
<PAGE>
approval. If this Contract is issued to the trustee of a Charitable Remainder
Trust, the Annuity Commencement Date may be deferred to the Annuitant's 100th
birthday.
In the "Annuity Payouts" section, under the subsection "2. Which Annuity Payout
Option do you want to use?" under the subsection "Important Information", that
last two bulleted paragraphs are deleted and replaced with the following:
- For Non-Qualified Contracts, if you do not elect an Annuity Payout Option,
variable Annuity Payouts will automatically begin on the Annuity Commencement
Date under the Life Annuity with 120, 180 or 240 Monthly Payments Certain
Annuity Payout Option with period certain payouts for 120 months.
- For Qualified Contracts and Contracts issued in Texas, if you do not elect an
Annuity Payout Option, variable Annuity Payouts will begin automatically on
the Annuity Commencement Date, under the Life Annuity Payout Option.
In the "Other Programs Available" section, in the paragraph entitled "Automatic
Income" the first sentence is deleted and replaced with the following:
The Automatic Income Program allows you to Surrender up to 10% of your total
Premium Payments each Contract Year without a Contingent Deferred Sales
Charge.
The "Accumulation Unit Value" table is deleted and replaced with the following:
ACCUMULATION UNIT VALUES
(For an Accumulation Unit outstanding throughout the period)
The following audited information from the financial statements of the Separate
Account has 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 unaudited information, which reflects the deduction for the Optional Death
Benefit, has been derived from the audited financial statements of the Separate
Account. No information is shown for Putnam American Government Income
Sub-Account, Putnam Growth Opportunities Sub-Account and Putnam Technology
Sub-Account because, as of December 31, 1999, the Sub-Accounts had not yet
commenced operations.
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<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------------------------------
WITHOUT THE WITH THE OPTIONAL
OPTIONAL DEATH DEATH BENEFIT
BENEFIT (UNAUDITED)
1999 1999 1998 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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PUTNAM ASIA PACIFIC GROWTH
SUB-ACCOUNT
(Inception date May 1,
1995)
Accumulation Unit Value at
beginning of period $ 8.552 $ 9.994 $ 9.176 $10.903 $10.135 $10.000 -- --
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Accumulation Unit Value at
end of period $17.505 $17.488 $ 8.552 $ 9.176 $10.903 $10.135 -- --
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Number Accumulation Units
outstanding at end of
period (in thousands) 8,029 22 6,219 7,445 6,980 1,292 -- --
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PUTNAM DIVERSIFIED INCOME
SUB-ACCOUNT
(Inception date
September 15, 1993)
Accumulation Unit Value at
beginning of period $12.489 $12.713 $12.841 $12.127 $11.302 $ 9.622 $10.188 $10.000
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Accumulation Unit Value at
end of period $12.532 $12.520 $12.489 $12.841 $12.127 $11.302 $ 9.622 $10.188
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Number Accumulation Units
outstanding at end of
period (in thousands) 22,092 42 23,713 21,017 18,268 11,006 8,609 4,428
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PUTNAM THE GEORGE PUTNAM
FUND OF BOSTON SUB-
ACCOUNT
(Inception date May 1,
1998)
Accumulation Unit Value at
beginning of period $21.492 $10.984 $10.000 -- -- -- -- --
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Accumulation Unit Value at
end of period $10.063 $10.053 $21.492 -- -- -- -- --
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Number Accumulation Units
outstanding at end of
period (in thousands) 14,825 110 4,471 -- -- -- -- --
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PUTNAM GLOBAL ASSET
ALLOCATION SUB-ACCOUNT
(Inception date
February 1, 1988)
Accumulation Unit Value at
beginning of period $30.256 $31.376 $27.026 $22.902 $20.087 $16.355 $16.988 $14.665
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Accumulation Unit Value at
end of period $33.370 $33.337 $30.256 $27.026 $22.902 $20.087 $16.355 $16.988
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Number Accumulation Units
outstanding at end of
period (in thousands) 15,126 5 16,653 16,683 14,342 10,181 8,665 4,491
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</TABLE>
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<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------------------------------
WITHOUT THE WITH THE OPTIONAL
OPTIONAL DEATH DEATH BENEFIT
BENEFIT (UNAUDITED)
1999 1999 1998 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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PUTNAM GLOBAL GROWTH
SUB-ACCOUNT
(Inception date May 1,
1990)
Accumulation Unit Value at
beginning of period $24.940 $25.979 $19.497 $17.294 $14.963 $13.119 $13.432 $10.289
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Accumulation Unit Value at
end of period $40.580 $40.540 $24.940 $19.497 $17.294 $14.963 $13.119 $13.432
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Number Accumulation Units
outstanding at end of
period (in thousands) 40,918 22 42,487 43,485 39,498 25,154 20,285 8,312
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PUTNAM GROWTH AND INCOME
SUB-ACCOUNT
(Inception date
February 1, 1988)
Accumulation Unit Value at
beginning of period $45.567 $50.800 $40.036 $32.703 $27.201 $20.178 $20.390 $18.096
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Accumulation Unit Value at
end of period $45.646 $45.601 $45.567 $40.036 $32.703 $27.201 $20.178 $20.390
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Number Accumulation Units
outstanding at end of
period (in thousands) 100,158 142 102,727 94,356 73,133 42,420 26,790 15,233
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PUTNAM HEALTH SCIENCES
SUB-ACCOUNT
(Inception date May 1,
1998)
Accumulation Unit Value at
beginning of period $10.849 $ 9.840 $10.000 -- -- -- -- --
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Accumulation Unit Value at
end of period $10.277 $10.267 $10.849 -- -- -- -- --
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Number Accumulation Units
outstanding at end of
period (in thousands) 12,308 69 7,148 -- -- -- -- --
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PUTNAM HIGH YIELD
SUB-ACCOUNT
(Inception date
February 1, 1988)
Accumulation Unit Value at
beginning of period $23.742 $24.985 $25.575 $22.682 $20.390 $17.476 $17.890 $15.173
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Accumulation Unit Value at
end of period $24.799 $24.774 $23.742 $25.575 $22.682 $20.390 $14.476 $17.890
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Number Accumulation Units
outstanding at end of
period (in thousands) 20,315 35 23,582 21,602 17,031 10,603 7,152 5,066
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PUTNAM INCOME SUB-ACCOUNT
(Inception date
February 1, 1988)
Accumulation Unit Value at
beginning of period $21.305 $21.164 $19.959 $18.631 $18.448 $15.533 $16.277 $14.833
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Accumulation Unit Value at
end of period $20.574 $20.554 $21.305 $19.959 $18.631 $18.448 $15.533 $16.277
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Number Accumulation Units
outstanding at end of
period (in thousands) 16,827 26 16,353 11,666 11,110 8,948 7,585 7,254
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PUTNAM INTERNATIONAL
GROWTH SUB-ACCOUNT
(Inception date
January 2, 1997)
Accumulation Unit Value at
beginning of period $13.403 $14.721 $11.451 $10.000 -- -- -- --
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Accumulation Unit Value at
end of period $21.164 $21.143 $13.403 $11.451 -- -- -- --
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Number Accumulation Units
outstanding at end of
period (in thousands) 16,044 71 12,815 6,948 -- -- -- --
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PUTNAM INTERNATIONAL
GROWTH AND INCOME
SUB-ACCOUNT
(Inception date
January 2, 1997)
Accumulation Unit Value at
beginning of period $12.922 $14.490 $11.776 $10.000 -- -- -- --
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Accumulation Unit Value at
end of period $15.876 $15.861 $12.922 $11.777 -- -- -- --
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Number Accumulation Units
outstanding at end of
period (in thousands) 14,449 24 14,002 9,878 -- -- -- --
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PUTNAM INTERNATIONAL NEW
OPPORTUNITIES SUB-ACCOUNT
(Inception date
January 2, 1997)
Accumulation Unit Value at
beginning of period $11.226 $12.423 $ 9.850 $10.000 -- -- -- --
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Accumulation Unit Value at
end of period $22.468 $22.445 $11.226 $ 9.850 -- -- -- --
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Number Accumulation Units
outstanding at end of
period (in thousands) 8,347 16 7,123 6,510 -- -- -- --
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PUTNAM INVESTORS
SUB-ACCOUNT
(Inception date May 1,
1998)
Accumulation Unit Value at
beginning of period $11.432 $12.179 $10.000 -- -- -- -- --
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Accumulation Unit Value at
end of period $14.669 $14.655 $11.432 -- -- -- -- --
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Number Accumulation Units
outstanding at end of
period (in thousands) 30,741 228 11,569 -- -- -- -- --
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</TABLE>
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<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------------------------------
WITHOUT THE WITH THE OPTIONAL
OPTIONAL DEATH DEATH BENEFIT
BENEFIT (UNAUDITED)
1999 1999 1998 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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PUTNAM MONEY MARKET
SUB-ACCOUNT
(Inception date
February 1, 1988)
Accumulation Unit Value at
beginning of period $ 1.538 $ 1.555 $ 1.483 $ 1.429 $ 1.379 $ 1.325 $ 1.294 $ 1.277
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Accumulation Unit Value at
end of period $ 1.591 $ 1.589 $ 1.538 $ 1.483 $ 1.429 $ 1.379 $ 1.325 $ 1.294
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Number Accumulation Units
outstanding at end of
period (in thousands) 266,227 377 177,635 122,079 147,638 66,283 38,819 12,916
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PUTNAM NEW OPPORTUNITIES
SUB-ACCOUNT
(Inception date May 2,
1994)
Accumulation Unit Value at
beginning of period $24.805 $26.455 $20.223 $16.635 $15.312 $10.718 $10.000 --
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Accumulation Unit Value at
end of period $41.424 $41.383 $24.805 $20.223 $16.635 $15.312 $10.718 --
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Number Accumulation Units
outstanding at end of
period (in thousands) 62.624 59 62,749 59,879 50,976 16,971 2,699 --
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PUTNAM NEW VALUE
SUB-ACCOUNT
(Inception date
January 2, 1997)
Accumulation Unit Value at
beginning of period $12.151 $13.957 $11.597 $10.000 -- -- -- --
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Accumulation Unit Value at
end of period $12.014 $12.002 $12.151 $11.597 -- -- -- --
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Number Accumulation Units
outstanding at end of
period (in thousands) 12,278 20 12,727 10,226 -- -- -- --
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PUTNAM OTC & EMERGING
SUB-ACCOUNT
(Inception date May 1,
1998)
Accumulation Unit Value at
beginning of period $ 9.980 $11.045 $10.000 -- -- -- -- --
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Accumulation Unit Value at
end of period $22.292 $22.270 $ 9.980 -- -- -- -- --
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Number Accumulation Units
outstanding at end of
period (in thousands) 5,012 45 1,672 -- -- -- -- --
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PUTNAM RESEARCH
SUB-ACCOUNT
(Inception date
October 1, 1998)
Accumulation Unit Value at
beginning of period $12.497 $13.682 $10.000 -- -- -- -- --
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Accumulation Unit Value at
end of period $15.712 $15.696 $12.497 -- -- -- -- --
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Number Accumulation Units
outstanding at end of
period (in thousands) 4,978 65 1,095 -- -- -- -- --
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PUTNAM SMALL CAP VALUE
SUB-ACCOUNT
Accumulation Unit Value at
beginning of period $10.000 $10.000 -- -- -- -- -- --
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Accumulation Unit Value at
end of period $10.251 $10.241 -- -- -- -- -- --
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Number Accumulation Units
outstanding at end of
period (in thousands) 676 6 -- -- -- -- -- --
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PUTNAM UTILITIES GROWTH
AND INCOME SUB-ACCOUNT
(Inception date May 4,
1992)
Accumulation Unit Value at
beginning of period $22.826 $22.609 $20.143 $16.072 $14.075 $10.889 $11.876 $10.618
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Accumulation Unit Value at
end of period $22.360 $22.338 $22.826 $20.143 $16.072 $14.075 $10.889 $11.876
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Number Accumulation Units
outstanding at end of
period (in thousands) 19,114 18 19,598 17,569 17,006 14,307 11,859 11,003
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PUTNAM VISTA SUB-ACCOUNT
(Inception date
January 2, 1997)
Accumulation Unit Value at
beginning of period $14.316 $15.604 $12.151 $10.000 -- -- -- --
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Accumulation Unit Value at
end of period $21.587 $21.566 $14.316 $12.151 -- -- -- --
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Number Accumulation Units
outstanding at end of
period (in thousands) 14,524 36 12,672 8,062 -- -- -- --
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PUTNAM VOYAGER SUB-ACCOUNT
(Inception date
February 1, 1988)
Accumulation Unit Value at
beginning of period $55.426 $60.816 $45.197 $36.227 $32.520 $23.445 $23.530 $20.102
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Accumulation Unit Value at
end of period $86.479 $86.393 $55.426 $45.197 $36.227 $32.520 $23.445 $23.530
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Number Accumulation Units
outstanding at end of
period (in thousands) 52,779 72 51,742 48,250 41,121 23,357 13,372 6,509
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</TABLE>
HV-2736
33-73572
