<PAGE>
SELECT DIMENSIONS VARIABLE ANNUITY
HARTFORD LIFE INSURANCE COMPANY
SUPPLEMENT DATED SEPTEMBER 8, 1999 TO THE
PROSPECTUS DATED MAY 3, 1999
The additional investment options are now available within Series I of the
Select Dimensions 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:
- The Fixed Income Sub-Account which purchases shares of Fixed Income
Portfolio of the Morgan Stanley Dean Witter Universal Funds, Inc.;
- The Emerging Markets Equity Sub-Account which purchases shares of
Emerging Markets Equity 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>
MANAGEMENT OTHER TOTAL FUND
FEES EXPENSES OPERATING
INCLUDING EXPENSES
WAIVERS 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%
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 Growth 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%
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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 Growth 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 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
MANAGEMENT OTHER OPERATING
PORTFOLIO FEES EXPENSES EXPENSES
<S> <C> <C> <C>
High Yield 0.500% 0.650% 1.150%
Mid-Cap Value 0.750% 0.820% 1.570%
Fixed Income 0.400% 0.640% 1.040%
Emerging Markets Equity 1.250% 2.200% 3.450%
Emerging Markets Debt 0.800% 1.250% 2.050%
</TABLE>
(2) 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
MANAGEMENT OTHER OPERATING
PORTFOLIO 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 first Example following the Annual Fund
Operating Expenses:
THE FOLLOWING TABLE ASSUMES THE OPTIONAL INTEREST ACCUMULATION DEATH BENEFIT WAS
NOT ELECTED:
<TABLE>
<CAPTION>
If you surrender your Contract at If you annuitize your Contract at If you do not surrender your
the end of the applicable time the end of the applicable time Contract, you would pay the
period you would pay the 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% annual
investment, assuming a 5% annual investment, assuming a 5% annual return on assets:
return on assets: 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
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Income $97 $159 $214 $370 $34 $104 $177 $369 $34 $105 $178 $370
Emerging Markets $87 $127 $161 $267 $23 $72 $124 $266 $24 $73 $125 $267
Equity
</TABLE>
<PAGE>
The following should be added to the second Example following the Annual Fund
Operating Expenses:
THE FOLLOWING TABLE ASSUMES THE OPTIONAL INTEREST ACCUMULATION DEATH BENEFIT WAS
ELECTED:
<TABLE>
<CAPTION>
If you surrender your Contract at If you annuitize your Contract at If you do not surrender your
the end of the applicable time the end of the applicable time Contract, you would pay the
period you would pay the 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% annual
investment, assuming a 5% annual investment, assuming a 5% annual return on assets:
return on assets: 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
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Income $96 $154 $206 $356 $32 $100 $170 $355 $33 $100 $170 $356
Emerging Markets $85 $122 $153 $251 $22 $68 $116 $251 $22 $68 $117 $251
Equity
</TABLE>
The first paragraph under the section entitled "ACCUMULATION UNIT VALUES "
should be deleted and replace 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 Fixed Income
Sub-Account and the Emerging Markets Equity Sub-Accounts are new
Sub-Accounts and are not shown below.
The following Fixed Income Portfolio and Emerging Markets Equity Portfolio
investment objectives should be added after the Emerging Markets Debt
Portfolio in the Section entitled "The Portfolios-Morgan Stanley Dean Witter
Universal Funds, Inc.":
FIXED INCOME PORTFOLIO
Seeks above-average total return over a market cycle of three to five
years by investing primarily in a diversified portfolio of fixed income
securities.
EMERGING MARKETS EQUITY PORTFOLIO
Seeks long-term capital appreciation by investing primarily in equity
securities of issuers in emerging market countries.
<PAGE>
The investment objective of Utilities Portfolio in the section entitled "The
Portfolios - Morgan Stanley Dean Witter Select Dimensions Investment Series"
is deleted and replaced with the following:
UTILITIES PORTFOLIO
Seeks to provide current income and capital appreciation.
The first paragraph after the Enterprise Portfolio investment objective should
include the Fixed Income Portfolio and the Emerging Markets Equity Portfolio.
The following should be inserted as the last sentence of the first paragraph of
the section entitled "Portfolios":
Effective September 7, 1999, the following portfolios will be closed to
new investments or transfers of existing monies:
- - NORTH AMERICAN GOVERNMENT SECURITIES PORTFOLIO
- - THE EMERGING MARKETS PORTFOLIO
The Mid-Cap Growth Portfolio's name is changed to "Mid-Cap Equity Portfolio."
All references in the prospectus and statement of additional information to
"Mid-Cap Growth Portfolio" should be replaced with "Mid-Cap Equity Portfolio."
33-80738
HV-2435
<PAGE>
September 8, 1999
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Attn: Filing Room
Re: Hartford Life Insurance Company -
Separate Account Three ("Registrant")
Series I of the Select Dimensions Variable Annuity
File No. 33-80738
Ladies and Gentlemen:
Pursuant to the provisions of the Securities Act of 1933 and Rule 497(e), we are
electronically submitting via EDGAR, a supplement dated September 8, 1999 to the
prospectus dated May 3, 1999, in connection with the tax-deferred variable
annuity contract issued by the Registrant.
If you have any additional questions, please feel free to contact me at (860)
843-5228.
Sincerely yours,
/s/ Linda M. Hernandez
Linda M. Hernandez
Enclosure
