<PAGE>
SELECT DIMENSIONS ASSETMANAGER
VARIABLE ANNUITY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SEPARATE ACCOUNT THREE
SUPPLEMENT DATED SEPTEMBER 7, 1999 TO THE
PROSPECTUS DATED MAY 3, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Effective September 7, 1999, an additional investment options will be available
within the Select Dimensions AssetManager variable annuity. The third paragraph
of the first page of the prospectus should include the following Sub-Accounts
and the underlying investments for that Sub-Account:
- - Active International Allocation Sub-Account which purchases shares of the
Active International Allocation Portfolio of the Morgan Stanley Dean Witter
Universal Funds, Inc.
The tables and accompanying footnotes under the section entitled "Fee Table --
Summary" should be deleted and replaced with the following language:
Annual Fund Operating Expenses
(As a percentage of average net assets)
<TABLE>
<CAPTION>
TOTAL FUND
MANAGEMENT FEES OPERATING
INCLUDING OTHER EXPENSES
WAIVERS EXPENSES INCLUDING WAIVERS
<S> <C> <C> <C>
------------------------------------------------------------------------------------------------
MORGAN STANLEY DEAN WITTER SELECT DIMENSIONS
INVESTMENT SERIES:
------------------------------------------------------------------------------------------------
Money Market Portfolio 0.500% 0.050% 0.550%
------------------------------------------------------------------------------------------------
North American Government Securities Portfolio 0.650% 0.500% 1.150%
------------------------------------------------------------------------------------------------
Diversified Income Portfolio 0.400% 0.090% 0.490%
------------------------------------------------------------------------------------------------
Balanced Growth Portfolio 0.620% 0.090% 0.710%
------------------------------------------------------------------------------------------------
Utilities Portfolio 0.650% 0.060% 0.710%
------------------------------------------------------------------------------------------------
Dividend Growth Portfolio 0.600% 0.030% 0.630%
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Value-Added Market Portfolio 0.500% 0.050% 0.550%
------------------------------------------------------------------------------------------------
Growth Portfolio 0.810% 0.250% 1.060%
------------------------------------------------------------------------------------------------
American Value Portfolio 0.620% 0.040% 0.660%
------------------------------------------------------------------------------------------------
Mid-Cap Equity Portfolio (1) 0.750% 0.230% 0.980%
------------------------------------------------------------------------------------------------
Global Equity Portfolio 1.000% 0.100% 1.100%
------------------------------------------------------------------------------------------------
Developing Growth Portfolio 0.500% 0.090% 0.590%
------------------------------------------------------------------------------------------------
Emerging Markets Portfolio 1.250% 0.480% 1.730%
------------------------------------------------------------------------------------------------
MORGAN STANLEY DEAN WITTER UNIVERSAL FUNDS,
INC.:
------------------------------------------------------------------------------------------------
High Yield Portfolio (2) 0.150% 0.650% 0.800%
------------------------------------------------------------------------------------------------
Mid-Cap Value Portfolio (2) 0.230% 0.820% 1.050%
------------------------------------------------------------------------------------------------
Emerging Markets Debt Portfolio (2) 0.270% 1.250% 1.520%
------------------------------------------------------------------------------------------------
Emerging Markets Equity Portfolio (2) 0.000% 1.750% 1.750%
------------------------------------------------------------------------------------------------
Fixed Income Portfolio (2) 0.060% 0.640% 0.700%
------------------------------------------------------------------------------------------------
Active International Allocation Portfolio 0.800% 0.350% 1.150%
------------------------------------------------------------------------------------------------
VAN KAMPEN LIFE INVESTMENT TRUST:
------------------------------------------------------------------------------------------------
Strategic Stock Portfolio (3) 0.000% 0.650% 0.650%
------------------------------------------------------------------------------------------------
Enterprise Portfolio (3) 0.460% 0.140% 0.600%
------------------------------------------------------------------------------------------------
</TABLE>
(1) With respect to the Mid-Cap Equity Portfolio, the expense information shown
in the table above has been restated to reflect the current fees. Prior to
April 30, 1999, the investment adviser, Morgan Stanley Dean Witter Advisors
Inc., assumed all expenses of the Portfolio and waived the compensation
provided for the Portfolio in its management agreement with the Fund.
(2) With respect to the High Yield, Mid-Cap Value, Fixed Income, Emerging
Markets Equity, and Emerging Markets Debt Portfolios, the investment
advisers have voluntarily agreed to waive their investment advisory fees and
to reimburse the Portfolios for certain
<PAGE>
other expenses. Absent such reductions, it is estimated that "Management
Fees", "Other Expenses" and "Total Fund Operating Expenses" for the
Portfolios would have been as follows:
<TABLE>
<CAPTION>
TOTAL FUND
OTHER OPERATING
PORTFOLIO MANAGEMENT FEES EXPENSES EXPENSES
<S> <C> <C> <C>
----------------------------------------------------------------------------
High Yield 0.500% 0.650% 1.150%
----------------------------------------------------------------------------
Mid-Cap Value 0.750% 0.820% 1.570%
----------------------------------------------------------------------------
Emerging Markets Debt 0.800% 1.250% 2.050%
----------------------------------------------------------------------------
Emerging Markets Equity 1.250% 2.200% 3.450%
----------------------------------------------------------------------------
Fixed Income 0.400% 0.640% 1.040%
----------------------------------------------------------------------------
</TABLE>
(3) With respect to the Strategic Stock Portfolio and the Enterprise Portfolio,
the investment adviser, Van Kampen Asset Management Inc. has voluntarily
agreed to waive its investment advisory fees and to reimburse the Portfolios
if such fees would cause their respective "Total Fund Operating Expenses" to
exceed those set forth in the table above. Absent such reductions, it is
estimated that "Management Fees", "Other Expenses" and "Total Fund Operating
Expenses" for the Portfolios would have been as follows:
<TABLE>
<CAPTION>
TOTAL FUND
OTHER OPERATING
PORTFOLIO MANAGEMENT FEES EXPENSES EXPENSES
<S> <C> <C> <C>
----------------------------------------------------------------------------
Strategic Stock 0.500% 2.090% 2.590%
----------------------------------------------------------------------------
Enterprise 0.500% 0.170% 0.670%
----------------------------------------------------------------------------
</TABLE>
The following should be added to the Example following the Annual Fund Operating
Expenses:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
If you surrender your Contract If you annuitize your Contract If you do not surrender your
at the end of the applicable at the end of the applicable Contract, you would pay the
time period you would pay the time period you would pay the following expenses on a $1,000
following expenses on a $1,000 following expenses on a $1,000 investment, assuming a 5%
investment, assuming a 5% investment, assuming a 5% annual return on assets:
annual return on assets: annual return on assets:
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------------------------------------------------------------------------------------------------------------------------------
Active International
Allocation Fund $ 29 $ 90 $ 153 $ 322 $ 26 $ 81 $ 139 $ 297 $ 29 $ 90 $ 153 $ 322
---------------------------------------------------------------------------------------------------------------------------------
Emerging Markets Equity 85 122 153 251 22 68 116 251 22 68 117 251
---------------------------------------------------------------------------------------------------------------------------------
Fixed Income 96 154 206 356 32 100 170 355 33 100 170 356
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The first paragraph under the section entitled "ACCUMULATION UNIT VALUES" should
be deleted and replaced with the following paragraph:
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 Active
International Allocation, Fixed Income, and the Emerging Markets Equity
Sub-Accounts are new Sub-Accounts and are not shown below.
The investment objective of the Utilities Portfolio in the section entitled "The
Portfolios -- Morgan Stanley Dean Witter Select Dimensions Investment Series"
should be deleted and replaced with the following:
UTILITIES PORTFOLIO
Seeks to provide current income and capital appreciation.
The following Active International Allocation Portfolio objective should be
added in the portfolio Section entitled "The Portfolios -- Morgan Stanley Dean
Witter Universal Funds, Inc.":
ACTIVE INTERNATIONAL ALLOCATION PORTFOLIO
Seeks long-term capital appreciation by investing primarily in accordance
with country and sector weightings determined by the investment adviser in
equity securities of non-U.S. issuers which, in the aggregate, replicate
broad-market indices.
The first paragraph after the Enterprise Portfolio investment objective should
include the Active International Allocation Porfolio.
As of September 7, 1999, the MidCap Growth Portfolio's name has been changed to
MidCap Equity Portfolio. All references in the prospectus and statement of
additional information to "MidCap Growth Portfolio" should be replaced with
"MidCap Equity Portfolio."
HV-2427
