SEPARATE ACCOUNT FIVE OF ITT HARTFORD LIFE & ANNUITY INS CO, 497, 1996-12-30

SEPARATE ACCOUNT FIVE OF ITT HARTFORD LIFE & ANNUITY INS CO
497, 1996-12-30

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ITT HARTFORD LIFE AND
ANNUITY INSURANCE COMPANY PUTNAM CAPITAL MANAGER LIFE
P. O. BOX 2999 Modified Single Premium
HARTFORD, CT 06104-2999 Variable Life Insurance
TELEPHONE (800) 231-5453 Contracts

This prospectus describes Putnam Capital Manager Life, a modified single premium
variable life insurance contract ("Contract" or "Contracts") offered by ITT
Hartford Life and Annuity Insurance Company ("ITT Hartford") to applicants age
90 and under. The Contract lets the Contract Owner pay a single premium and,
subject to restrictions, additional premiums.

The Contract is a modified endowment contract for federal income tax purposes,
except in certain cases described under "Federal Tax Considerations," page ___.
A LOAN, DISTRIBUTION OR OTHER AMOUNT RECEIVED FROM A MODIFIED ENDOWMENT CONTRACT
DURING THE LIFE OF THE INSURED WILL BE TAXED TO THE EXTENT OF ANY ACCUMULATED
INCOME IN THE CONTRACT. ANY AMOUNTS THAT ARE TAXABLE WITHDRAWALS WILL BE
SUBJECT TO A 10% ADDITIONAL TAX, WITH CERTAIN EXCEPTIONS.

Generally, the minimum initial premium ITT Hartford will accept is $10,000. The
initial premium will be allocated to the PCM Money Market Fund Sub-Account.
After the Right to Cancel Period has expired, the amount so allocated will be
transferred to the Funds specified in the Contract Owner's application. The
following underlying investment portfolios ("Funds") of Putnam Variable Trust
are available under the Contracts: Putnam VT Asia Pacific Growth Fund, Putnam
VT Diversified Income Fund, Putnam VT Global Asset Allocation Fund, Putnam VT
Global Growth Fund, Putnam VT Growth and Income 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 Money Market
Fund, Putnam VT New Opportunities Fund, Putnam VT New Value 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.

There is no guaranteed minimum Account Value for a Contract. The Account Value
of a Contract will vary up or down to reflect the investment experience of the
Funds to which premiums have been allocated. The Contract Owner bears the
investment risk for all amounts so allocated. The Contract continues in effect
while the Cash Surrender Value is sufficient to pay the monthly charges under
the Contract ("Deduction Amount"). The Contract may terminate if the Cash
Surrender Value is insufficient to cover a Deduction Amount and, after
expiration of a specified period, no additional premium payments are made.

The Contracts provide for a Face Amount, which is the minimum death benefit
under the Contract. The death benefit ("Death Benefit") may be greater than the
Face Amount. The Account Value will, and under certain circumstances the Death
Benefit of the Contract may, increase or decrease based on the investment
experience of the

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Funds to which premiums have been allocated. However, while the Contract is
in force, the Death Benefit will never be less than the Face Amount. At the
death of the Insured, we will pay the death proceeds ("Death Proceeds") to
the beneficiary. The Death Proceeds equal the Death Benefit less any
Indebtedness under the Contract.

IT MAY NOT BE ADVANTAGEOUS TO PURCHASE VARIABLE LIFE INSURANCE AS A REPLACEMENT
FOR YOUR CURRENT LIFE INSURANCE OR IF YOU ALREADY OWN A VARIABLE LIFE INSURANCE
CONTRACT.

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.

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.

THE PRODUCTS DESCRIBED HEREIN ARE NOT DEPOSITS OF, OR GUARANTEED BY ANY BANK,
NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE
BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS, INCLUDING THE
POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.

The date of this Prospectus is May 1, 1996
Revised effective: January 2, 1997

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SPECIAL TERMS

As used in this Prospectus, the following terms have the indicated meanings:

ACCOUNT VALUE: The current value of Accumulation Units plus the value of the
Loan Account under the Contract.

ACCUMULATION UNIT: An accounting unit of measure used to calculate the value of
a Sub-Account.

ANNUAL WITHDRAWAL AMOUNT: The amount of a surrender or partial withdrawal that
is not subject to the contingent deferred sales charge. This amount in any
Contract year is the greater of 10% of premiums or 100% of cumulative earnings
(Account Value less premiums paid).

CASH SURRENDER VALUE: The Account Value less any contingent deferred sales
charge and additional premium tax charge and all Indebtedness.

CODE: The Internal Revenue Code of 1986, as amended.

CONTRACT ANNIVERSARY: The yearly anniversary of the Contract Date.

CONTRACT DATE: A date not later than three business days after receipt of the
initial premium at ITT Hartford's Home Office.

CONTRACT OWNER: The person having rights to benefits under the Contract during
the lifetime of the Insured; the Contract Owner may or may not be the Insured.

CONTRACT YEARS: Annual periods computed from the Contract Date.

COVERAGE AMOUNT: The Death Benefit less the Account Value.

DEATH BENEFIT: The greater of (1) the Face Amount specified in the Contract or
(2) the Account Value on the date of death multiplied by a stated percentage as
specified in the Contract.

DEATH PROCEEDS: The amount that we will pay on the death of the Insured. This
equals the Death Benefit less any Indebtedness.

DEDUCTION AMOUNT: A deduction on the Contract Date and on each Monthly Activity
Date for the cost of insurance, a tax expense charge, an administrative charge
and a mortality and expense risk charge.

FACE AMOUNT: On the Contract Date, the initial Face Amount is the amount shown
on the Contract's Specifications page. Thereafter, the Face Amount is reduced
by any

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partial withdrawals.

FUNDS: Currently, the portfolios of Putnam Variable Trust described on page __
of this Prospectus.

GUIDELINE SINGLE PREMIUM: The "Guideline Single Premium" as defined in Section
7702 of the Code.

HOME OFFICE: Currently located at 200 Hopmeadow Street, Simsbury, Connecticut;
however, the mailing address is P.O. Box 2999, Hartford, Connecticut 06104-2999.

INDEBTEDNESS: All monies owed to ITT Hartford by the Contract Owner. These
monies include all outstanding loans on the Contract, including any interest due
or accrued Deduction Amount or annual maintenance fee.

INSURED: The person on whose life the Contract is issued.

LOAN ACCOUNT: An account in ITT Hartford's General Account, established for any
amounts transferred from the Sub-Accounts for requested loans. The Loan Account
credits a fixed rate of interest of 4% per annum that is not based on the
investment experience of the Separate Account.

MONTHLY ACTIVITY DATE: The day of each month on which the Deduction Amount is
deducted from the Account Value of the Contract. Monthly Activity Dates occur
on the same day of the month as the Contract Date.

SEPARATE ACCOUNT: Separate Account Five, an account established by ITT Hartford
to separate the assets funding the Contracts from other assets of ITT Hartford.

SUB-ACCOUNT: The subdivisions of the Separate Account used to allocate a
Contract Owner's Account Value, less Indebtedness, among the Funds.

TRUST: Putnam Variable Trust.

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.

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TABLE OF CONTENTS

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<S> <C>
SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
THE COMPANY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
THE SEPARATE ACCOUNT . . . . . . . . . . . . . . . . . . . . . . . . . .
General . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Funds . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment Adviser . . . . . . . . . . . . . . . . . . . . . . .
THE CONTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Application for a Contract . . .. . . . . . . . . . . . . . . . .
Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allocation of Premiums . . . . . . . . . . . . . . . . . . . . .
Accumulation Unit Values . . . . . . . . . . . . . . . . . . . .
DEDUCTIONS AND CHARGES . . . . . . . . . . . . . . . . . . . . . . . . . .
Monthly Deductions . . . . . . . . . . . . . . . . . . . . . . .
Annual Maintenance Fee . . . . . . . . . . . . . . . . . . . . .
Taxes Charged against the Separate Account . . . . . . . . . .
Charges Against the Funds . . . . . . . . . . . . . . . . . . .
Contingent Deferred Sales Charge . . . . . . . . . . . . . . . .
Premium Tax Charge . . . . . . . . . . . . . . . . . . . . . . .
</TABLE>

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<S> <C>
CONTRACT BENEFITS AND RIGHTS . .. . . . . . . . . . . . . . . . . . . . .

Death Benefit . . . . .. . . . . . . . . . . . . . . . . . . .
Account Value . . . . .. . . . . . . . . . . . . . . . . . . .
Transfer of Account Value . . . . . . . . . . . . . . . . . . .
Contract Loans . . . . . .. . . . . . . . . . . . . . . . . . .
Amount Payable on Surrender of the Contract . . . . . . . . . .
Partial Withdrawals . . . . . . . . . . . . . . . . . . . . . .
Benefits at Maturity . . . . . . . . . . . . . . . . . . . . . .
Lapse and Reinstatement . . . . . . . . . . . . . . . . . . . .
Cancellation and Exchange Rights . . . . . . . . . . . . . . .
Suspension of Valuation, Payments and Transfers . . . . . . . .

LAST SURVIVOR CONTRACTS.. . . . . . . . . . . . . . . . . . . . . . . . .

OTHER MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Voting Rights . . . . . . . . . . . . . . . . . . . . . . . . . .
Statements to Contract Owners . . . . . . . . . . . . . . . . .
Limit on Right to Contest . . . . . . . . . . . . . . . . . . . .
</TABLE>

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Misstatement as to Age and Sex . . . . . . . . . . . . . . . . . .
Payment Options . . . . . . . . . . . . . . . . . . . . . . . . .
Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . .

EXECUTIVE OFFICERS AND DIRECTORS

DISTRIBUTION OF THE CONTRACTS

SAFEKEEPING OF THE SEPARATE ACCOUNT'S ASSETS

FEDERAL TAX CONSIDERATIONS

General
Taxation of ITT Hartford and the Separate Account
Income Taxation of Contract Benefits
Last Survivor Contracts
Modified Endowment Contracts
Estate and Generation Skipping Taxes
Diversification Requirements
Ownership of the Assets in the Separate Account
Life Insurance Purchased for Use in Split Dollar Arrangements
Federal Income Tax Withholding
Non-Individual Ownership of Contracts

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Other
Life Insurance Purchases by Nonresident Aliens and Foreign Corporations

LEGAL PROCEEDINGS

LEGAL MATTERS

EXPERTS

REGISTRATION STATEMENT

APPENDIX A
</TABLE>

The Contracts 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.

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SUMMARY

THE CONTRACT

The Contracts are life insurance contracts with death benefits, cash values, and
other traditional life insurance features. The Contracts are "variable." Unlike
the fixed benefits of ordinary whole life insurance, the Account Value will, and
the Death Benefit may, increase or decrease based on the investment experience
of the Funds to which premiums have been allocated. The Contracts are credited
with units ("Accumulation Units") to calculate cash values. The Contract Owner
may transfer the cash values among the Funds.

The Contracts can be issued on a single life or "last survivor" basis. For a
discussion of how last survivor Contracts operate differently from single life
Contracts, see "Last Survivor Contracts," page ___.

THE SEPARATE ACCOUNT AND THE FUNDS

Separate Account Five ("Separate Account") funds the variable life insurance
Contracts offered by this prospectus. ITT Hartford established the Separate
Account pursuant to Connecticut insurance law and organized as a unit investment
trust registered under the Investment Company Act of 1940. The Contracts
currently offer sixteen (16) sub-accounts ("Sub-Accounts"), each investing
exclusively in a Fund. If an initial premium is submitted with an application
for a Contract, it will be allocated, within three business days of receipt at
ITT Hartford's Home Office, to the PCM Money Market Fund Sub-Account. After the
expiration of the Right to Cancel Period, the values in the PCM Money Market
Fund Sub-Account will be allocated to one or more of the Funds as specified in
the Contract Owner's application. See "The Contract - Allocation of Premiums,"
page __.

Currently, the Funds of Putnam Variable Trust available under the Contracts are:
Putnam VT Asia Pacific Growth Fund, Putnam VT Diversified Income Fund, Putnam VT
Global Asset Allocation Fund, Putnam VT Global Growth Fund, Putnam VT Growth and
Income 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 Money Market Fund, Putnam VT New Opportunities
Fund, Putnam VT New Value 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. Applicants should read the prospectus for the Funds
accompanying this prospectus in connection with the purchase of a Contract. The
investment objectives of the Funds are as set forth in "The Separate Account,"
page __.

The following table shows expenses for the Funds in 1995:

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ANNUAL FUND OPERATING EXPENSES
(AS PERCENTAGE OF NET ASSETS)

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Total Fund
Management Other Operating
Fees Expenses Expenses
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<S> <C> <C> <C>
EXPENSES
Putnam VT Asia Pacific Growth Fund (1) 0.80% 0.90% 1.70%
Putnam VT Diversified Income Fund 0.70% 0.15% 0.85%
Putnam VT Global Asset Allocation Fund 0.70% 0.14% 0.84%
Putnam VT Global Growth Fund 0.60% 0.15% 0.75%
Putnam VT Growth and Income Fund 0.52% 0.05% 0.57%
Putnam VT High Yield Fund 0.70% 0.09% 0.79%
Putnam VT International Growth Fund (2) 0.80% 0.18% 0.98%
Putnam VT International Growth (2) 0.80% 0.17% 0.97%
and Income Fund
Putnam VT International New (2) 1.20% 0.19% 1.39%
Opportunities Fund
Putnam VT Money Market Fund 0.45% 0.12% 0.57%
Putnam VT New Opportunities Fund 0.70% 0.14% 0.84%
Putnam VT New Value Fund (2) 0.70% 0.13% 0.83%
Putnam VT U.S. Government and High
Quality Bond Fund 0.61% 0.09% 0.70%
Putnam VT Utilities Growth and Income
Fund (3) 0.70% 0.08% 0.78%
Putnam VT Vista Fund (2) 0.65% 0.16% 0.81%
Putnam VT Voyager Fund 0.62% 0.06% 0.68%
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(1) The annualized total expenses and management fees shown above for the
Putnam VT Asia Pacific Growth Fund reflect the termination of an expense
limitation in effect for the period. Actual annualized management fees and
total expenses would have been 0.33% and 1.22%, respectively.

(2) Putnam VT International Growth Fund, Putnam VT International Growth
and Income Fund, Putnam VT International New Opportunities Fund, Putnam VT
New Value Fund, and Putnam VT Vista Fund are new funds; operating expenses
are based on annualized estimates of such expenses to be incurred in the
current fiscal year.

(3) On July 11, 1996, shareholders approved an increase in the fees
payable to Putnam Management under the Management Contract for the Putnam
VT Utilities Growth and Income Fund. The management fees and total
expenses shown in the table have been restated to reflect the increase.
Actual management fees and total expenses were 0.60% and 0.68%,
respectively.

The investment adviser for all the Funds is Putnam Investment Management, Inc.
See "The Separate Account," page __.

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PREMIUMS

The Contract permits the Contract Owner to pay a large single premium and,
subject to restrictions, additional premiums. The Contract Owner may choose a
minimum initial premium of 80%, 90% or 100% of the Guideline Single Premium
(based on the Face Amount). Under current underwriting rules, which are subject
to change, Applicants between the ages of 35 and 80 who pay an initial premium
of 100% of the Guideline Single Premium are eligible for simplified underwriting
without a medical examination if they meet simplified underwriting standards as
evidenced in their responses in the application. For Contract Owners who pay an
initial premium of 80% or 90% of the Guideline Single Premium or who are below
age 35 or above age 80, standard underwriting applies, except that substandard
underwriting applies only in those cases that represent substandard risks
according to customary underwriting guidelines. Additional premiums are allowed
if they do not cause the Contract to fail to meet the definition of a life
insurance contract under Section 7702 of the Code. ITT Hartford may require
evidence of insurability for any additional premiums which increase the Coverage
Amount. Generally, the minimum initial premium ITT Hartford will accept is
$10,000. ITT Hartford may accept less than $10,000 under certain circumstances.
No premium will be accepted which does not meet the tax qualification guidelines
for life insurance under the Code.

DEDUCTIONS AND CHARGES

On the Contract Date and on each Monthly Activity Date, ITT Hartford will deduct
a Deduction Amount from the Account Value. The Deduction Amount will be made
pro rata respecting each Sub-Account attributable to the Contract. The
Deduction Amount includes a cost of insurance charge, tax expense charge,
administrative charge and a mortality and expense risk charge. The monthly cost
of insurance charge is to cover ITT Hartford's anticipated mortality costs. In
addition, ITT Hartford will deduct monthly from the Account Value a tax expense
charge equal to an annual rate of 0.40% for the first ten Contract Years. This
charge compensates ITT Hartford for premium taxes imposed by various states and
local jurisdictions and for federal taxes imposed under Section 848 of the Code.
The charge includes a premium tax deduction of 0.25% and a federal tax deduction
of 0.15%. The premium tax deduction represents an average premium tax of 2.5%
of premiums over ten years. ITT Hartford will deduct from the Account Value
attributable to the Separate Account a monthly administrative charge equal to
an annual rate of 0.40%. This charge compensates ITT Hartford for
administrative expenses incurred in the administration of the Separate Account
and the Contracts. ITT Hartford will also deduct from the Account Value
attributable to the Separate Account a monthly charge equal to an annual rate of
0.90% for the mortality risks and expense risks ITT Hartford assumes in relation
to the variable portion of the Contracts. If the Cash Surrender Value is not
sufficient to cover a Deduction Amount due on any Monthly Activity Date the
Contract may lapse. See "Deductions and Charges - Monthly Deductions," page __
and "Contract Benefits and Rights - Lapse and Reinstatement," page __.

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If the Account Value on a Contract Anniversary is less than $50,000, ITT
Hartford will deduct on such date an annual maintenance fee of $30. This fee
will help reimburse ITT Hartford for administrative and maintenance costs of the
Contracts. See "Deductions and Charges - Annual Maintenance Fee," page ___.

ITT Hartford may set up a provision for income taxes against the assets of
the Separate Account. See "Deductions and Charges - Charges Against The
Separate Account," page __ and "Federal Tax Considerations," page __.

Applicants should review the prospectuses for the Funds which accompany this
prospectus for a description of the charges assessed against the assets of the
Funds.

Upon surrender of the Contract and partial withdrawals in excess of the Annual
Withdrawal Amount, a contingent deferred sales charge may be assessed. In
Contract Years 1 through 3, this charge is 7.5% of surrendered Account Value
attributable to premiums paid. In Contract Years 4 through 5, this charge is
6%. In Contract Years 6 through 7, this charge is 4%. In Contract Years 8
through 9, this charge is 2%. After the 9th Contract Year, there is no
charge. The contingent deferred sales charge is imposed to cover a portion of
the sales expense incurred by ITT Hartford in distributing the Contracts. This
expense includes agents commissions, advertising and the printing of
prospectuses. See "Deductions and Charges - Contingent Deferred Sales Charge,"
page ___.

During the first nine Contract Years, an additional premium tax charge will be
imposed on surrender or partial withdrawals. See "Deductions and Charges -
Premium Tax Charges," page ___.

For a discussion of the tax consequences of surrender of the Contract or a
partial withdrawal, see "Federal Tax Considerations," page ___.

DEATH BENEFIT

The Contracts provide for a Face Amount which is the minimum Death Benefit
under the Contract. The Death Benefit may be greater than the Face Amount. 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
Contract. See "Contract Benefits and Rights - Death Benefit," page __.

ACCOUNT VALUE

The Account Value of the Contract will increase or decrease to reflect the
investment experience of the Funds applicable to the Contract and deductions for
the monthly Deduction Amount. There is no minimum guaranteed Account Value and
the Contract Owner bears the risk of the investment in the Funds. See "Contract
Benefits and Rights - Account Value," page __.

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CONTRACT LOANS

A Contract Owner may obtain one or both of two types of cash loans from ITT
Hartford. Both types of loans are secured by the Contract. At the time a loan
is requested, the aggregate amount of all loans (including the currently applied
for loan) may not exceed 90% of the difference of the Account Value less any
contingent deferred sales charge and due and unpaid Deduction Amount. See
"Contract Benefits and Rights - Contract Loans," page __.

LAPSE

Under certain circumstances a Contract may terminate if the Cash Surrender
Value on any Monthly Activity Date is less than the required Monthly Deduction
Amount. ITT Hartford will give written notice to the Contract Owner and a 61
day grace period during which additional amounts may be paid to continue the
Contract. See "Contract Benefits and Rights - Contract Loans," page __ and
"Lapse and Reinstatement," page __.

CANCELLATION AND EXCHANGE RIGHTS

An applicant has a limited right to return his or her Contract for
cancellation. If the applicant returns the Contract, by mail or hand delivery,
to ITT Hartford or to the agent who sold the Contract, to be cancelled within
10 days after delivery of the Contract to the applicant (in certain cases, this
free-look period is longer), ITT Hartford will return to the applicant within 7
days thereafter the greater of the premiums paid for the Contract or the sum of
(1) the Account Value on the date the returned Contract is received by ITT
Hartford or its agent and (2) any deductions under Contract or by the Funds for
taxes, charges or fees.

In addition, once the Contract is in effect it may be exchanged during the first
24 months after its issuance for a permanent life insurance contract on the life
of the Insured without submitting proof of insurability. See "Contract Benefits
and Rights - Cancellation and Exchange Rights," page __.

TAX CONSEQUENCES

The current Federal tax law generally excludes all death benefit payments from
the gross income of the Contract beneficiary. The Contracts generally will be
treated as modified endowment contracts. This status does not affect the
Contracts' classification as life insurance, nor does it affect the exclusion of
death benefit payments from gross income. However, loans, distributions or other
amounts received under a modified endowment contract are taxed to the extent of
accumulated income in the Contract (generally, the excess of Account Value over
premiums paid) and may be subject to a 10% penalty tax. See "Federal Tax
Considerations," page __.

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THE COMPANY

ITT Hartford Life and Annuity Insurance Company ("ITT Hartford"), formerly ITT
Life Insurance Corporation, was originally incorporated under the laws of
Wisconsin on January 9, 1956. ITT Hartford was redomiciled to Connecticut on
May 1, 1996. It is a stock life insurance company engaged in the business of
writing both individual and group life insurance and annuities in all states
including the District of Columbia, except New York. The offices of ITT
Hartford are located in Minneapolis, Minnesota; however, its mailing address is
P.O. Box 2999 Hartford, Connecticut 06104-2999.

ITT Hartford is a wholly owned subsidiary of Hartford Life Insurance Company.
ITT Hartford is ultimately 100% owned by Hartford Fire Insurance Company, one of
the largest multiple lines insurance carriers in the United States. On December
20, 1995, Hartford Fire Insurance Company became an independent, publicly traded
corporation.

ITT Hartford is rated A+ (superior) by A.M. Best and Company, Inc. on the basis
of its financial soundness and operating performance. ITT Hartford is rated AA
by Standard & Poor's and AA+ by Duff and Phelps on the basis of its claims
paying ability. These ratings do not apply to the investment performance of the
Sub-Accounts of the Separate Account. The ratings apply to ITT Hartford's
ability to meet its insurance obligations, including those under the Contract.

ITT 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 1 in each year covering the operations of ITT Hartford for the
preceding year and its financial condition on December 31 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 at least once in every four
years. In addition, ITT Hartford is subject to the insurance laws and
regulations of any jurisdiction in which it sells its insurance contracts. ITT
Hartford is also subject to various Federal and state securities laws and
regulations.

THE SEPARATE ACCOUNT

GENERAL

Separate Account Five ("Separate Account") is a separate account of ITT Hartford
established on August 17, 1994 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.
The Separate Account meets the definition of "separate account" under federal
securities law. Under Connecticut law, the assets of the Separate Account are
held exclusively for the benefit of Contract Owners and persons entitled to
payments under the Contracts. The assets for the Separate Account are not
chargeable with liabilities arising out of any other

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business which ITT Hartford may conduct.

FUNDS

The underlying investments for the Contracts are shares of Putnam Variable
Trust, an open-end series investment company with multiple portfolios
("Funds"). The assets of each Sub-Account of the Separate Account are invested
exclusively in one of the Funds. The underlying Funds corresponding to each
Sub-Account and their investment objectives are described below. ITT Hartford
reserves the right, subject to compliance with the law, to offer additional
funds with differing investment objectives. There is no assurance that any of
the Funds will achieve its stated objectives.

PUTNAM VT ASIA PACIFIC GROWTH FUND

Seeks capital appreciation by investing primarily in securities of companies
located in Asia and in the Pacific Basin.

PUTNAM VT 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 (which invests primarily in what are
commonly referred to as "junk bonds"), and International Sector. See the
special considerations for investments in high yield securities described in the
Fund prospectus.

PUTNAM VT GLOBAL ASSET ALLOCATION FUND

Seeks a high level of long-term total return consistent with preservation of
capital by investing in U.S. equities, international equities, U.S. fixed income
securities, and international fixed income securities.

PUTNAM VT GLOBAL GROWTH FUND

Seeks capital appreciation through a globally diversified common stock
portfolio.

PUTNAM VT GROWTH AND INCOME FUND

Seeks capital growth and current income by investing primarily in common stocks
that offer potential for capital growth, current income, or both.

PUTNAM VT HIGH YIELD FUND

Seeks 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 Putnam Investment Management, Inc. ("Putnam
Management") believes does not involve undue risk to income or principal.
Capital growth is a

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secondary objective when consistent with high current
income. See the special considerations for investments in high yield securities
described in the Fund prospectus.

PUTNAM VT INTERNATIONAL GROWTH FUND

Seeks capital appreciation by investing primarily equity securities of companies
located in a country other than the United States.

PUTNAM VT INTERNATIONAL GROWTH AND INCOME FUND

Seeks capital growth, with current income as a secondary objective, by investing
primarily in common stocks with potential for capital growth principally traded
on markets outside the United States.

PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND

Seeks long term capital appreciation by investing principally in equity
securities of companies in sectors of economies outside of the United States
which Putnam Management believes possess above-average growth potential.

PUTNAM VT MONEY MARKET FUND

Seeks to achieve as high a level of current income as Putnam Management believes
is consistent with preservation of capital and maintenance of liquidity by
investing in high-quality money market instruments.

PUTNAM VT NEW OPPORTUNITIES FUND

Seeks long-term capital appreciation by investing principally in common stocks
of companies in sectors of the economy which Putnam Management believes possess
above-average long-term growth potential.

PUTNAM VT NEW VALUE FUND

Seeks long-term capital appreciation by investing primarily in common stocks
that Putnam Management believes are undervalued at the time of purchase and have
the potential for long-term capital appreciation.

PUTNAM VT U.S. GOVERNMENT AND HIGH QUALITY BOND FUND

Seeks current income consistent with preservation of capital by investing
primarily 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.

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PUTNAM VT UTILITIES GROWTH AND INCOME FUND

Seeks capital growth and current income by concentrating its investments in
securities issued by companies in the public utilities industries.

PUTNAM VT VISTA FUND

Seeks capital appreciation by investing in a diversified portfolio of common
stocks which have the potential for above-average capital appreciation.

PUTNAM VT VOYAGER FUND

Aggressively seeks capital appreciation primarily from a portfolio of common
stocks of companies that which Putnam Management believes have potential for
capital appreciation which is significantly greater than that of market
averages.

Putnam VT Asia Pacific Growth Fund, Putnam VT Diversified Income Fund, Putnam
VT Global Growth Fund, Putnam VT Growth and Income 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 Money
Market Fund, Putnam VT New Opportunities Fund, Putnam VT New Value 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.

The Funds are available only to serve as the underlying investment for variable
annuity and variable life contracts. A full description of the Funds, their
investment objectives, policies and restrictions, risks, charges and expenses
and other aspects of their operation are contained in the accompanying Trust
Prospectus which should be read in conjunction with this Prospectus before
investing, and in the Trust Statement of Additional Information which may be
ordered without charge from Putnam Investor Services, Inc.

It is conceivable that in the future it may be disadvantageous for variable
annuity separate accounts and variable life insurance separate accounts to
invest in the Funds simultaneously. Although ITT Hartford and the Funds do not
currently foresee any such disadvantages either to variable annuity contract
owners or to variable life insurance policyowners, the Trust's Board of Trustees
intends to monitor events in order to identify any material conflicts between
such Contract Owners and policyowners and to determine what action, if any,
should be taken in response thereto. If the Board of Trustees of the Funds were
to conclude that separate funds should be established for

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variable life and variable annuity separate accounts, the variable annuity
Contract holders would not bear any expenses attendant upon establishment of
such separate funds.

INVESTMENT ADVISER

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. Another affiliate , Putnam Fiduciary Trust Company, provides investment
advice to institutional clients under its banking and fiduciary policies.
Putnam Management and its affiliates are wholly-owned subsidiaries of Marsh &
McLennan Companies, Inc., a publicly owned holding company whose principal
businesses are international insurance brokerage and employee benefit
consulting.

Subject to the general oversight of the Trustees of the Trust, Putnam Management
manages the Funds' portfolios in accordance with their stated investment
objectives and policies, makes investment decisions for the Funds, places orders
to purchase and sell securities on behalf of the Funds, and administers the
affairs of the Funds. For its services, the Funds pay Putnam Management a
quarterly fee. See the accompanying Trust Prospectus for a more complete
description of Putnam Management and the respective fees of the Funds.

THE CONTRACT

APPLICATION FOR A CONTRACT

Individuals wishing to purchase a Contract must submit an application to ITT
Hartford. A Contract will be issued only on the lives of insureds age 90 and
under who supply evidence of insurability satisfactory to ITT Hartford.
Acceptance is subject to ITT Hartford's underwriting rules and ITT Hartford
reserves the right to reject an application for any reason. IF AN APPLICATION
FOR A CONTRACT IS REJECTED, THEN YOUR INITIAL PREMIUM WILL BE RETURNED ALONG
WITH AN ADDITIONAL AMOUNT FOR INTEREST, BASED ON THE CURRENT RATE BEING CREDITED
BY ITT HARTFORD. No change in the terms or conditions of a Contract will be
made without the consent of the Contract Owner.

The Contract will be effective on the Contract Date only after ITT Hartford has
received all outstanding delivery requirements and received the initial
premium. The Contract Date is the date used to determine all future cyclical
transactions on the Contract, e.g., Monthly Activity Date, Contract Months and
Contract Years. The Contract Date may be prior to, or the same as, the date
the Contract is issued ("Issue Date").

If the Coverage Amount is over the current limits established by ITT Hartford,
the initial payment will not be accepted with the application. In other cases
where we receive the initial payment with the application, we will provide fixed
conditional insurance during

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underwriting according to the terms of a conditional receipt. The fixed
conditional insurance will be the insurance applied for, up to a maximum that
varies by age. If no fixed conditional insurance was in effect, on Contract
delivery we will require a sufficient payment to place the insurance in force.

PREMIUMS

The Contract permits the Contract Owner to pay a large single premium and,
subject to restrictions, additional premiums. The Contract Owner may choose a
minimum initial premium of 80%, 90% or 100% of the Guideline Single Premium
(based on the Face Amount). Under current underwriting rules, which are subject
to change, Applicants between ages 35 and 80 who pay an initial premium of 100%
of the Guideline Single Premium (subject to then current premium limits) are
eligible for simplified underwriting without a medical examination if they meet
simplified underwriting standards as evidenced in their responses in the
application. For Contract Owners who pay an initial premium of 80% or 90% of
the Guideline Single Premium or who are below age 35 or above age 80, standard
underwriting applies, except that substandard underwriting applies only in those
cases that represent substandard risks according to customary underwriting
guidelines. Additional premiums are allowed if they do not cause the Contract
to fail to meet the definition of a life insurance contract under Section 7702
of the Code. ITT Hartford may require evidence of insurability for any
additional premiums which increase the Coverage Amount. Generally, the minimum
initial premium ITT Hartford will accept is $10,000. ITT Hartford may accept
less than $10,000 under certain circumstances. No premium will be accepted which
does not meet the tax qualification guidelines for life insurance under the
Code.

ALLOCATION OF PREMIUMS

Within three business days of receipt of a completed application and the initial
premium at ITT Hartford's Home Office, ITT Hartford will allocate the entire
premium to the PCM Money Market Fund Sub-Account. After the expiration of the
Right To Cancel Period the Account Value in the PCM Money Market Fund Sub-
Account will be allocated among the Funds in whole percentages to purchase
Accumulation Units in the applicable Sub-Accounts as the Contract Owner directs
in the application. Premiums received on or after the expiration of the Right
to Cancel Period will be allocated among the Sub-Accounts to purchase
Accumulation Units in such Sub-Accounts as directed by the Contract Owner or, in
the absence of directions, as specified in the original application. The number
of Accumulation Units in each Sub-Account to be credited to a Contract
(including the initial allocation to the PCM Money Market Fund Sub-Account) will
be determined first by multiplying the premium by the percentage to be allocated
to each Fund to determine the portion to be invested in the Sub-Account. Each
portion to be invested in each Sub-Account is then divided by the Accumulation
Unit Value of that particular Sub-Account next computed after receipt of the
payment.

ACCUMULATION UNIT VALUES

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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 Sub-Account is the net asset value per share of the corresponding Fund at
the end of the Valuation Period (plus the per share dividends or capital gains
by that Fund if the ex-dividend date occurs 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. Applicants should refer to the prospectuses
for the Funds which accompany this prospectus for a description of how the
assets of each Fund are valued since such determination has a direct bearing on
the Accumulation Unit Value of the Sub-Account and therefore the Account Value
of a Contract. See ALSO, "Contract Benefits and Rights - Account Value," page
__.

All valuations in connection with a Contract, e.g., with respect to determining
Account Value and Cash Surrender Value and in connection with Contract Loans, or
calculation of Death Benefits, or with respect to determining the number of
Accumulation Units to be credited to a Contract with each premium, other than
the initial premium, will be made on the date the request or payment is received
by ITT Hartford at its Home Office if such date is a Valuation Day; otherwise
such determination will be made on the next succeeding date which is a Valuation
Day.

DEDUCTIONS AND CHARGES

MONTHLY DEDUCTIONS

On the Contract Date, and on each Monthly Activity Date after the Contract Date,
ITT Hartford will deduct an amount ("Deduction Amount") to cover charges and
expenses incurred in connection with a Contract. Each monthly Deduction Amount
will be deducted pro rata from each Sub-Account attributable to the Contract
such that the proportion of Account Value of the Contract attributable to each
Sub-Account remains the same before and after the deduction. The Deduction
Amount will vary from month to month. If the Cash Surrender Value is not
sufficient to cover a Deduction Amount due on any Monthly Activity Date, the
Contract may lapse. See "Contract Benefits and Rights - Lapse and
Reinstatement," page __. The following is a summary of the monthly deductions
and charges which constitute the Deduction Amount:

COST OF INSURANCE CHARGE: The cost of insurance charge covers ITT Hartford's
anticipated mortality costs for standard and substandard risks. Current cost of
insurance rates are lower after the 10th Contract Year and are based on whether
100%, 90% or 80% of the Guideline Single Premium has been paid. The current
cost of insurance charge will not exceed the guaranteed cost of insurance
charge. This charge is a guaranteed maximum monthly rate multiplied by the
Coverage Amount on the Contract Date or any Monthly Activity Date. For standard
risks, the guaranteed cost of insurance rate is based on the 1980 Commissioners
Standard Ordinary Mortality Table, age last birthday). (Unisex rates may be
required in some states.) A table of

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guaranteed cost of insurance rates per $1,000 will be included in each
Contract; however, ITT Hartford reserves the right to use rates less than
those shown in the table. Substandard risks will be charged at a higher cost
of insurance rate that will not exceed rates based on a multiple of the 1980
Commissioners Standard Ordinary Mortality Table, age last birthday. The
multiple will be based on the insured's substandard rating.

The Coverage Amount is first set on the Contract Date and then on each Monthly
Activity Date. On such days, it is the Face Amount less the Account Value
subject to a Minimum Coverage Amount. The Coverage Amount remains level between
the Monthly Activity Dates.

The Coverage Amount may be adjusted to continue to qualify the Contracts as life
insurance contracts under the current Federal tax law. Under that law, the
Minimum Coverage Amount is a stated percentage of the Account Value of the
Contract determined on each Monthly Activity Date. The percentages vary
according to the attained age of the Insured.

EXAMPLE:

Face Amount = $100,000
Account Value on the Monthly Activity Date = $30,000
Insured's attained age = 40
Minimum Coverage Amount percentage for age 40 = 150%

On the Monthly Activity Date, the Coverage Amount is $70,000. This is
calculated by subtracting the Account Value on the Monthly Activity Date
($30,000) from the Face Amount ($100,000), subject to a possible Minimum
Coverage Amount adjustment. This Minimum Coverage Amount is determined by
taking a percentage of the Account Value on the Monthly Activity Date. In this
case, the Minimum Coverage Amount is $45,000 (150% of $30,000). Since $45,000
is less than the Face Amount less the Account Value ($70,000), no adjustment is
necessary. Therefore, the Coverage Amount will be $70,000.

Assume that the Account Value in the above example was $50,000. The Minimum
Coverage Amount would be $75,000 (150% of $50,000). Since this is greater than
the Face Amount less the Account Value ($50,000), the Coverage Amount for the
Contract Month is $75,000. (For an explanation of the Death Benefit, see
"Contract Benefits and Rights" on page __.)

Because the Account Value and, as a result, the Coverage Amount under a Contract
may vary from month to month, the cost of insurance charge may also vary on each
Monthly Activity Date.

TAX EXPENSE CHARGE: ITT Hartford will deduct monthly from the Account Value a
tax expense charge equal to an annual rate of 0.40% for the first ten Contract
Years. This

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charge compensates ITT Hartford for premium taxes imposed by various states
and local jurisdictions and for federal taxes imposed under Section 848 of
the Code. The charge includes a premium tax deduction of 0.25% and a federal
tax deduction of 0.15%. The 0.25% premium tax deduction over ten Contract
Years approximates ITT Hartford's average expenses for state and local
premium taxes (2.5%). Premium taxes vary, ranging from zero to more than
4.0%. The premium tax deduction is made whether or not any premium tax
applies. The deduction may be higher or lower than the premium tax imposed.
However, ITT Hartford does not expect to make a profit from this deduction.
The 0.15% federal tax deduction helps reimburse ITT Hartford for approximate
expenses incurred from federal taxes under Section 848 of the Code. The
federal tax deduction is a factor ITT Hartford must use when computing the
maximum sales load chargeable under Securities and Exchange Commission rules.

ADMINISTRATIVE CHARGE: ITT Hartford will deduct monthly from the Account Value
attributable to the Separate Account an administrative charge equal to an annual
rate of 0.40%. This charge compensates ITT Hartford for administrative expenses
incurred in the administration of the Separate Account and the Contracts.

MORTALITY AND EXPENSE RISK CHARGE: ITT Hartford will deduct monthly from the
Account Value attributable to the Separate Account a charge equal to an annual
rate of 0.90% for the mortality risks and expense risks ITT Hartford assumes in
relation to the variable portion of the Contracts. The mortality risk assumed
is that the cost of insurance charges specified in the Contract will be
insufficient to meet claims. ITT Hartford also assumes a risk that the Face
Amount (the minimum Death Benefit) will exceed the Coverage Amount on the date
of death plus the Account Value on the date ITT Hartford receives written notice
of death. The expense risk assumed is that expenses incurred in issuing and
administering the Contracts will exceed the administrative charges set in the
Contract. ITT Hartford may profit from the mortality and expense risk charge
and may use any profits for any proper purpose, including any difference between
the cost it incurs in distributing the Contracts and the proceeds of the
contingent deferred sales charge.

ANNUAL MAINTENANCE FEE

If the Account Value on a Contract Anniversary is less than $50,000, ITT
Hartford will deduct on such date an annual maintenance fee of $30. This fee
will help reimburse ITT Hartford for administrative and maintenance costs of the
Contracts. The sum of the monthly administrative charges and the annual
maintenance fee will not exceed the cost ITT Hartford incurs in providing
administrative services under the Contracts.

TAXES CHARGED AGAINST THE SEPARATE ACCOUNT

Currently, no charge is made to the Separate Account for Federal income taxes
that may be attributable to the Separate Account. ITT Hartford may, however,
make such a charge in the future. Charges for other taxes, if any, attributable
to the Separate Account may also be made.

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CHARGES AGAINST THE FUNDS

The Separate Account purchases shares of the Funds at net asset value. The net
asset value of the Fund shares reflects investment advisory fees and
administrative expenses already deducted from the assets of the Funds. These
charges are described in the prospectus for the Funds.

CONTINGENT DEFERRED SALES CHARGE

In determining the contingent deferred sales charge and the additional premium
tax charge discussed below, any surrender or partial withdrawal during the first
ten Contract Years will be deemed first from earnings and then from premiums
paid. If an amount equal to all premiums paid has been withdrawn, no charge
will be assessed on a withdrawal of the remaining Account Value.

The contingent deferred sales charge is imposed to cover a portion of the sales
expense incurred by ITT Hartford in distributing the Contracts. This expense
includes agents commissions, advertising and the printing of prospectuses.

See "Contract Benefits and Rights - Amount Payable on Surrender of the
Contract," page __.

PREMIUM TAX CHARGE

During the first nine Contract Years, an additional premium tax charge will be
imposed on surrender or partial withdrawals. The additional premium tax charge
is shown below, as a percent of Account Value, at the end of each Contract Year:

CONTRACT
YEAR RATE
- -------- ----
1 2.25%
2 2.00%
3 1.75%
4 1.50%
5 1.25%
6 1.00%
7 0.75%

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8 0.50%
9 0.25%
10+ 0.00%

After the ninth Contract Year, no additional premium tax charge will be
imposed.

CONTRACT BENEFITS AND RIGHTS

DEATH BENEFIT

While in force, the Contract provides for the payment of the Death Proceeds to
the named beneficiary when the Insured under the Contract dies. The Death
Proceeds payable to the beneficiary equal the Death Benefit less any loans
outstanding. The Death Benefit equals the greater of (1) the Face Amount or (2)
the Account Value multiplied by a specified percentage. The percentages vary
according to the attained age of the Insured and are specified in the Contract.
Therefore, an increase in Account Value may increase the Death Benefit.
However, because the Death Benefit will never be less than the Face Amount, a
decrease in Account Value may decrease the Death Benefit but never below the
Face Amount.

EXAMPLES:

A B
--- ---
Face Amount: $100,000 $100,000
Insured's Age: 40 40
Account Value on Date of Death: 46,500 34,000
Specified Percentage 250% 250%

In Example A, the 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 __.

ACCOUNT VALUE

The Account Value of a Contract will be computed on each Valuation Day. The
Account Value will vary to reflect the investment experience of the Funds, the
value of

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the Loan Account and the monthly Deduction Amounts. There is no minimum
guaranteed Account Value.

The Account Value of a particular Contract is related to the net asset value of
the Funds to which premiums on the Contract have been allocated. The Account
Value on any Valuation Day is calculated by multiplying the number of
Accumulation Units credited to the Contract in each Sub-Account as of the
Valuation Day by the Accumulation Unit Value of that Sub-Account and then
summing the result for all the Sub-Accounts credited to the Contract and the
value of the Loan Account. See "The Contract - Accumulation Unit Values,"
page __.

TRANSFER OF ACCOUNT VALUE

While the Contract remains in effect and subject to ITT Hartford's transfer
rules then in effect, the Contract Owner may request that part or all of the
Account Value of a particular Sub-Account be transferred to other Sub-Accounts.
ITT Hartford reserves the right to restrict the number of such transfers to no
more than 12 per Contract Year with no two transfers being made on consecutive
Valuation Days. However, there are no restrictions on the number of transfers
at the present time. Transfers may be made by written request or by calling
toll free 1-800-231-5453. Transfers by telephone may be made by the agent of
record or by the attorney-in-fact pursuant to a power of attorney. Telephone
transfers may not be permitted in some states. The policy of ITT Hartford and
its agents and affiliates is that they will not be responsible for losses
resulting from acting upon telephone requests reasonably believed to be genuine.
ITT Hartford will employ reasonable procedures to confirm that instructions
communicated by telephone are genuine; otherwise, ITT Hartford may be liable for
any losses due to unauthorized or fraudulent instructions. The procedures ITT
Hartford follows for transactions initiated by telephone include requirements
that callers provide certain information for identification purposes. All
transfer instructions by telephone are tape recorded.

ITT Hartford may modify the right to reallocate Account Value among the Sub-
Accounts if ITT Hartford determines, in its sole discretion, that the exercise
of that right by one or more Contract Owners is, or would be, to the
disadvantage of other Contract Owners. Any modification could be applied to
transfers to or from some or all of the Sub-Accounts and could include, but not
be limited to, the requirement of a minimum period between each transfer, not
accepting transfer requests of an agent acting under the power of attorney on
behalf of more than one Contract Owner, or limiting the dollar amount that may
be transferred among the Sub-Accounts at one time. These restrictions may be
applied in any manner reasonably designed to prevent any use of the transfer
right that ITT Hartford considers to be disadvantageous to other Contract
Owners.

As a result of a transfer, the number of Accumulation Units credited to the Sub-
Account from which the transfer is made will be reduced by the number obtained
by dividing the amount transferred by the Accumulation Unit Value of that Sub-
Account on the Valuation Day ITT Hartford receives the transfer request. The
number of Accumulation

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Units credited to the Sub-Account to which the transfer is made will be
increased by the number obtained by dividing the amount transferred by the
Accumulation Unit Value of that Sub-Account on the Valuation Day ITT Hartford
receives the transfer request.

CONTRACT LOANS

While the Contract is in effect, a Contract Owner may obtain, without the
consent of the beneficiary (provided the designation of beneficiary is not
irrevocable), one or both of two types of cash loans from ITT Hartford. Both
types of loans are secured by the Contract. The aggregate loans (including the
currently applied for loan) may not exceed at the time a loan is requested 90%
of the Account Value less any contingent deferred sales charge and due and
unpaid Deduction Amount.

The loan amount will be transferred pro rata from each Sub-Account attributable
to the Contract (unless the Contract Owner specifies otherwise) to the Loan
Account. The amounts allocated to the Loan Account will bear interest at a rate
of 4% per annum (6% for "Preferred Loans"). The amount of the Loan Account that
equals the difference between the Account Value and the total of all premiums
paid under the Contract is considered a "Preferred Loan." The loan interest
rate that ITT Hartford will charge on all loans is 6% per annum. 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.

If the aggregate outstanding loan(s) secured by the Contract exceeds the Account
Value of the Contract less any contingent deferred sales charges and due and
unpaid Deduction Amount, ITT Hartford will give written notice to the Contract
Owner that unless ITT Hartford receives an additional payment within 61 days to
reduce the aggregate outstanding loan(s) secured by the Contract, the Contract
may lapse.

All or any part of any loan secured by a Contract may be repaid while the
Contract is still in effect. When loan repayments or interest payments are
made, they will be allocated among the Sub-Account(s) in the same percentage as
premiums are allocated (unless the Contract Owner requests a different
allocation) and an amount equal to the payment will be deducted from the Loan
Account. Any outstanding loan at the end of a Grace Period must be repaid
before the Contract will be reinstated. See "Contract Benefits and Rights -
Lapse and Reinstatement," page __.

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. The longer a loan is outstanding, the greater
the effect is likely to be. The effect could be favorable or unfavorable. If
the Sub-Accounts earn more than 4% per annum, the annual interest rate for
amounts held in the Loan Account, a Contract Owner's Account Value will not
increase as rapidly as it would have had no loan been made. If the Sub-Accounts
earn less than 4% per annum, the Contract Owner's Account Value will be greater
than it would have been had no loan been made. Also, if not repaid, the
aggregate outstanding loan(s) will reduce the Death

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Proceeds and Cash Surrender Value otherwise payable.

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AMOUNT PAYABLE ON SURRENDER OF THE CONTRACT

While the Contract is in effect, a Contract Owner may elect, without the consent
of the beneficiary (provided the designation of beneficiary is not irrevocable),
to fully surrender the Contract. Upon surrender, the Contract Owner will
receive the Cash Surrender Value determined as of the day ITT Hartford receives
the Contract Owner's written request or the date requested by the Contract Owner
whichever is later. The Cash Surrender Value equals the Account Value less any
contingent deferred sales charges and additional premium tax charge and all
Indebtedness. ITT Hartford will pay the Cash Surrender Value of the Contract
within seven days of receipt by ITT Hartford of the written request or on the
effective surrender date requested by the Contract Owner, whichever is later.
The Contract will terminate on the date of receipt of the written request, or
the date the Contract Owner requests the surrender to be effective, whichever is
later. For a discussion of the tax consequences of surrendering the Contract,
see "Federal Tax Considerations," page ___.

If the Contract Owner chooses to apply the surrender proceeds to a payment
option (see "Other Matters - Payment Options," page ___), the contingent
deferred sales charge will not be imposed to the surrender proceeds applied to
the option. In other words, the surrender proceeds will equal the Cash
Surrender Value without reduction for the contingent deferred sales charge.
However, the additional premium tax charge, if applicable, will be deducted from
the surrender proceeds to be applied, and amounts withdrawn from Options 1, 5 or
6 will be subject to the contingent deferred sales charge, if applicable.

PARTIAL WITHDRAWALS

While the Contract is in effect, a Contract Owner may elect, by written request,
to make partial withdrawals from the Cash Surrender Value. The Cash Surrender
Value, after partial withdrawal, must at least equal ITT Hartford's minimum
amount rules then in effect; otherwise, the request will be treated as a request
for full surrender. The partial withdrawal will be deducted pro rata from each
Sub-Account, unless the Contract Owner instructs otherwise. The Face Amount
will be reduced proportionate to the reduction in the Account Value due to the
partial withdrawal. Partial withdrawals will be deemed to be first from
earnings, if any, and then from premiums paid. Partial withdrawals in excess of
the Annual Withdrawal Amount will be subject to the contingent deferred sales
charge and any additional premium tax charges. See "Deductions and Charges -
Contingent Deferred Sales Charge, Premium Tax Charge." For a discussion of the
tax consequences of partial withdrawals, see "Federal Tax Considerations," page
___.

BENEFITS AT MATURITY

If the Insured is living on the "Maturity Date" (the anniversary of the Contract
Date on which the Insured is age 100), on surrender of the Contract to ITT
Hartford, ITT Hartford will pay to the Contract Owner the Cash Surrender Value.
In such case, the

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Contract will terminate and ITT Hartford will have no further obligations under
the Contract. (The Maturity Date may be extended by rider where approved, but
see "Income Taxation of Contract Benefits.")

LAPSE AND REINSTATEMENT

The Contract will remain in effect until the Cash Surrender Value is
insufficient to cover a Deduction Amount due on a Monthly Activity Date. ITT
Hartford will notify the Contract Owner of the deficiency in writing and will
provide a 61 day period ("Grace Period") to pay an amount sufficient to cover
the Deduction Amount(s) due. The notice will indicate the amount that must be
paid.

The Contract will continue through the Grace Period, but if no payment is
forthcoming, it will terminate at the end of the Grace Period. If the person
insured under the Contract dies during the Grace Period, the Death Proceeds
payable under the Contract will be reduced by the Deduction Amount(s) due and
unpaid. See "Contract Benefits and Rights - Death Benefit," page __.

If the Contract lapses, the Contract Owner may apply for reinstatement of the
Contract by payment of the reinstatement premium (and any applicable charges)
shown in the Contract. A request for reinstatement may be made within five
years of lapse. If a loan was outstanding at the time of lapse, ITT Hartford
will require repayment of the loan before permitting reinstatement. In
addition, ITT Hartford reserves the right to require evidence of insurability
satisfactory to ITT Hartford.

CANCELLATION AND EXCHANGE RIGHTS

An Applicant has a limited right to return a Contract for cancellation. If the
Contract is returned, by mail or personal delivery to ITT Hartford or to the
agent who sold the Contract, to be cancelled within 10 days after delivery of
the Contract to the Contract Owner (a longer free-look period is provided in
certain cases), ITT Hartford will return to the Applicant within 7 days the
greater of premiums paid for the Contract or the sum of (1) the Account Value on
the date the returned Contract is received by ITT Hartford or its agent and (2)
any deductions under Contract or by the Funds for taxes, charges or fees.

Once the Contract is in effect, it may be exchanged during the first 24 months
after its issuance, for a non-variable flexible premium adjustable life
insurance contract offered by ITT Hartford (or an affiliated company) on the
life of the Insured. No evidence of insurability will be required. The new
contract will have, at the election of the Contract Owner, either the same
Coverage Amount under the exchanged contract on the date of exchange or the same
Death Benefit. The effective date, issue date and issue age will be the same as
existed under the exchanged contract. If a contract loan was outstanding, the
entire loan must be repaid. There may be a cash adjustment required on the
exchange.

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SUSPENSION OF VALUATION, PAYMENTS AND TRANSFERS

ITT Hartford will suspend all procedures requiring valuation (including
transfers, surrenders and loans) on any day a national stock exchange is closed
or trading is restricted due to an existing emergency as defined by the
Securities and Exchange Commission, or on any day the Commission has ordered
that the right of surrender of the Contracts be suspended for the protection of
Contract Owners, until such condition has ended.

LAST SURVIVOR CONTRACTS

The Contracts are offered on a single life and "last survivor" basis. Contracts
sold on a last survivor basis operate in a manner almost identical to the single
life version. The most important difference is that the last survivor version
involves two Insureds and the Death Proceeds are paid on the death of the last
surviving Insured. The other significant differences between the last survivor
and single life versions are listed below:

1. The cost of insurance charges under the last survivor Contracts are
determined in a manner that reflects the anticipated mortality of the two
Insureds and the fact that the Death Benefit is not payable until the death of
the second Insured to die. See the last survivor illustrations in "Appendix A,"
page ___.

2. To qualify for simplified underwriting under a last survivor Contract,
both Insureds must meet the simplified underwriting standards.

3. For a last survivor Contract to be reinstated, both Insureds must be
alive on the date of reinstatement.

4. The Contract provisions regarding misstatement of age or sex, suicide
and incontestability apply to either Insured.

5. Additional tax disclosures applicable to last survivor Contracts are
provided in "Federal Tax Considerations," page ___."

OTHER MATTERS

VOTING RIGHTS

In accordance with its interpretation of presently applicable law, ITT Hartford
will vote the shares of the Funds at regular and special meetings of the
shareholders of the Funds in accordance with instructions from Contract Owners
(or the assignee of the Contract, as the case may be) having a voting interest
in the Separate Account. The number of shares held in the Separate Account
which are attributable to each Contract Owner is determined by dividing the
Contract Owner's interest in each Sub-Account by the net asset value of the
applicable shares of the Funds. ITT Hartford will vote shares

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for which no instructions have been given and shares which are not attributable
to Contract Owners (i.e. shares owned by ITT 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 ITT Hartford's present interpretation should change and, as a
result, ITT 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 Contract Owner (or the assignee) in the Funds will
be determined as follows: Contract Owners may cast one vote for each full or
fractional Accumulation Unit owned under the Contract 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 Contract
Owner has taken a loan secured by the Contract, amounts transferred from the
Sub-Account(s) to the Loan Account in connection with the loan (See "Contract
Benefits and Rights - Contract Loans," page __) will not be considered in
determining the voting interests of the Contract Owner. Contract Owners should
review the prospectuses for the Funds which accompany this prospectus to
determine matters on which shareholders may vote.

ITT 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
contract for the Funds.

In addition, ITT Hartford itself may disregard voting instructions in favor of
changes initiated by a Contract Owner in the investment policy or the investment
adviser of the Funds if ITT 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. If ITT 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 Contract Owners.

STATEMENTS TO CONTRACT OWNERS

ITT Hartford will maintain all records relating to the Separate Account and the
Sub-Accounts. At least once each Contract Year, ITT Hartford will send to
Contract Owners a statement showing the Coverage Amount and the Account Value of
the Contract (indicating the number of Accumulation Units credited to the
Contract in each Sub-Account and the corresponding Accumulation Unit Value), and
any outstanding loan secured by the Contract as of the date of the statement.
The statement will also show premium paid, and Deduction Amounts under the
Contract since the last statement, and any other information required by any
applicable law or regulation.

LIMIT ON RIGHT TO CONTEST

ITT Hartford may not contest the validity of the Contract after it has been in
effect

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during the Insured's lifetime for two years from the Issue Date. If the
Contract is reinstated, the two-year period is measured from the date of
reinstatement. Any increase in the Coverage Amount as a result of a premium is
contestable for 2 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 Account Value less any
Indebtedness.

MISSTATEMENT AS TO AGE AND SEX

If the age or sex of the Insured is incorrectly stated, the Death Benefit will
be appropriately adjusted as specified in the Contract.

PAYMENT OPTIONS

The surrender proceeds or Death Proceeds under the Contracts may be paid in a
lump sum or may be applied to one of ITT Hartford's payment options. The
minimum amount that may be applied under a payment option is $5,000 unless ITT
Hartford consents to a lesser amount. Under Options 2, 3 and 4, no surrender or
partial withdrawals are permitted after payments commence. Full surrender or
partial withdrawals may be made from Options 1 or 6, but they are subject to the
contingent deferred sales charge, if applicable. Only a full surrender is
allowed from Option 5. A surrender from Option 5 will also be subject to the
contingent deferred sales charge, if applicable.

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 a payment option is
elected. At such times, the proceeds are not subject to the investment
experience of the Separate Account.

The following options are available under the Contracts (ITT Hartford may offer
other payment options):

Option 1: Interest Income

This option offers payments of interest, at the rate we declare, on the amount
applied under this option. The interest rate will never be less than 3 1/2% per
year.

Option 2: Life Annuity

A life annuity is an annuity payable during the lifetime of the payee and
terminating with the last payment preceding the death of the payee. This option
offers the largest payment amount of any of the life annuity options since there
is no guarantee of a minimum number of payments nor a provision for a death
benefit payable to a beneficiary.

It would be possible under this option for a payee to receive only one annuity
payment if he died prior to the due date of the second annuity payment, two if
he died before the

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date of the third annuity payment, etc.

Option 3: Life Annuity with 120, 180 or 240 Monthly Payments Certain

This annuity option is an annuity payable monthly during the lifetime of the
payee with the provision that payments will be made for a minimum of 120, 180 or
240 months, as elected. If, at the death of the payee, payments have been made
for less than the minimum elected number of months, then the present value as of
the date of the payee's death, of any remaining guaranteed payments will be paid
in one sum to the beneficiary or beneficiaries designated unless other
provisions have been made and approved by ITT Hartford.

Option 4: Joint and Last Survivor Annuity

An annuity payable monthly during the joint lifetime of the payee and a
designated second person, and thereafter during the remaining lifetime of the
survivor, ceasing with the last payment prior to the death of the survivor.
Based on the options currently offered by ITT Hartford, the payee may elect that
the payment to the survivor be less than the payment made during the joint
lifetime of the payee and a designated second person.

It would be possible under this option for a payee and designated second person
to receive only one payment in the event of the common or simultaneous death of
the parties prior to the due date for the second payment and so on.

Option 5: Payments for a Designated Period

An amount payable monthly for the number of years selected which may be from 5
to 30 years. Under this option, you may, at any time, request a full surrender
and receive, within seven days, the termination value of the Contract as
determined by ITT Hartford.

In the event of the payee's death prior to the end of the designated period, the
present value as of the date of the payee's death, of any remaining guaranteed
payments will be paid in one sum to the beneficiary or beneficiaries designated
unless other provisions have been made and approved by ITT Hartford.

Option 5 is an option that does not involve life contingencies.

Option 6: Death Proceeds Remaining with ITT Hartford

Proceeds from the Death Benefit left with ITT Hartford. These proceeds will
remain in the Sub-Accounts to which they were allocated at the time of death
unless the beneficiary elects to reallocate them. Full or partial withdrawals
may be made at any time.

VARIABLE AND FIXED ANNUITY PAYMENTS: When an annuity is effected, unless
otherwise

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specified, the surrender proceeds or Death Proceeds held in the Sub-Accounts
will be applied to provide a variable annuity based on the pro rata amount in
the various Sub-Accounts. Fixed annuities options are also available. YOU
SHOULD CONSIDER WHETHER THE ALLOCATION OF PROCEEDS AMONG SUB-ACCOUNTS OF THE
SEPARATE ACCOUNT FOR YOUR ANNUITY PAYMENTS ARE BASED ON THE INVESTMENT
ALTERNATIVE BEST SUITED TO YOUR RETIREMENT NEEDS.

VARIABLE ANNUITY: The Contract contains tables indicating the minimum dollar
amount of the first monthly payment under the optional variable forms of
annuity for each $1,000 of value of a Sub-Account. The first monthly payment
varies according to the form and type of variable payment annuity selected.
The Contract contains variable payment annuity tables derived from the 1983(a)
Individual Annuity Mortality Table with ages set back one year and with an
assumed investment rate ("A.I.R.") of 5% per annum. The total first monthly
variable annuity payment is determined by multiplying the proceeds value
(expressed in thousands of dollars) of a Sub-Account by the amount of the first
monthly payment per $1,000 of value obtained from the tables in the Contracts.

The amount of the first monthly variable annuity payment is divided by the value
of an annuity unit (an accounting unit of measure used to calculate the value of
annuity payments) for the appropriate Sub-Account no earlier than the close of
business on the fifth Valuation Day preceding the day on which the payment is
due in order to determine the number of annuity units represented by the first
payment. This number of annuity units remains fixed during the annuity payment
period, and in each subsequent month the dollar amount of the variable annuity
payment is determined by multiplying this fixed number of annuity units by the
current annuity unit value.

LEVEL VARIABLE ANNUITY PAYMENTS WOULD BE PRODUCED IF THE INVESTMENT RATE
REMAINED CONSTANT AND EQUAL TO THE A.I.R. IN FACT, PAYMENTS WILL VARY UP OR
DOWN AS THE INVESTMENT RATE VARIES UP OR DOWN RELATIVE TO THE A.I.R.

FIXED ANNUITY: Fixed annuity payments are determined by multiplying the amount
applied to the annuity by a rate to be determined by ITT Hartford which is no
less than the rate specified in the fixed payment annuity tables in the
Contract. The annuity payment will remain level for the duration of the
annuity.

ITT 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 Contract. The
Contract Owner may change the beneficiary (unless irrevocably named) during the
Insured's lifetime by written request to ITT Hartford. If no beneficiary is
living when the Insured dies, the Death Proceeds will be paid to the Contract
Owner if living; otherwise to the Contract Owner's estate.

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ASSIGNMENT

The Contract may be assigned as collateral for a loan or other obligation. ITT
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 Contracts.

EXECUTIVE OFFICERS AND DIRECTORS

Bossen, Wendell J. Vice President, 1995** Vice President (1992), Hartford Life Insurance Company;
62 Executive Vice President (1984), Mutual Benefit.

Gregory A. Boyko Vice President, 1995 Vice President and Controller
44 (1995-Present), Hartford Life Insurance Company; Chief Financial Officer
(1994-1995), IMG American Life; Senior Vice President (1992-1994),
Connecticut Mutual.

Cummins, Peter W. Vice President, 1993 Vice President, Individual Annuity Operations (1989-Present),
59 Hartford Life Insurance Company.

deRaismes, Ann M. Vice President, 1994 Vice President (1994-Present), Assistant Vice President (1992),
45 Director of Human Resources (1991-Present), Hartford Life Insurance
Company.

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Dooley, James R. Vice President, 1977 Vice President, Director
59 Information Services (1973- Present), ITT Hartford.
</TABLE>

EXECUTIVE OFFICERS AND DIRECTORS (Continued)

Frahm, Donald R. Director, 1995* Chairman and Chief Executive Officer (1988-Present), ITT Hartford
64 Insurance Group, Inc.

Gardner, Bruce D. Director, 1991* Vice President (1996-Present) General Counsel and Corporate
45 Secretary (1991), Hartford Life Insurance Company

Gareau, Joseph H. Executive Vice President, 1993 Executive Vice President and
49 Chief Investment Officer, 1993 Chief Investment Officer (1993-Present), Hartford Life
Director, 1993* Insurance Company

Gillette, Donald J. Vice President, 1993 Vice President, Director of
50 Marketing (1991-Present), ITT Hartford; MSI Insurance (1986)

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Godkin, Lynda Associate General Counsel, 1995 Associate General Counsel and Corporate Secretary
42 Corporate Secretary, 1995 (1995-Present), Assistant General Counsel and Secretary
(1994), Counsel (1990), Hartford Life Insurance Company
</TABLE>
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EXECUTIVE OFFICERS AND DIRECTORS (Continued)

Hall, David A. Senior Vice President, 1993 Senior Vice President and Actuary, 1993Actuary (1993-Present),
42 Hartford Life Insurance Company

Kanarek, Joseph Vice President, 1994 Vice President (1991-Present),
48 Director, 1994* Director (1992-Present), Hartford Life Insurance Company

Robert A. Kerzner Vice President, 1994 Vice President (1994-Present),
44 Regional Vice President (1991), Life Sales Manager (1990), Hartford Life
Insurance Company.

Kohlhof, LaVern L. Vice President, 1980 Vice President and Secretary
66 Secretary, 1980 (1980-Present), ITT Hartford

Malchodi, Jr., William B.Vice President, 1994 Vice President (1994-Present),
45 Director of Taxes, 1992 Director of Taxes (1992-Present), Assistant General Counsel and
Assistant Director of Taxes (1986), Hartford Insurance Group
</TABLE>

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EXECUTIVE OFFICERS AND DIRECTORS (Continued)

Matthiesen, Steven L. Vice President, 1984 Vice President, Director of New Business (1984-Present),
51 ITT Hartford

Joseph J. Noto Vice President, 1989 Vice President (1989-Present),
44 Hartford Life Insurance Company.

Raymond, Craig D. Vice President, 1993 Vice President and Chief Chief Actuary, 1994Actuary (1994-Present),
32 Vice President (1993), Assistant Vice President (1992), Actuary (1989-
1994), Hartford Life Insurance Company

Schrandt, David T. Vice President, 1987 Vice President, Treasurer and
48 Treasurer, 1987 Controller (1987-Present), ITT Hartford

Smith, Lowndes A. President, 1993 President and Chief Executive Chief Executive Officer, 1993 Officer
55 (1993-Present), ITT Director, 1985*Hartford; President and Chief
Operating Officer (1989-Present), Hartford Life Insurance Company
</TABLE>

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EXECUTIVE OFFICERS AND DIRECTORS (Continued)

<TABLE>
<CAPTION>
OTHER BUSINESS
PROFESSION, VOCATION
POSITION WITH ITT OR EMPLOYMENT FOR
HARTFORD,YEAR PAST 5 YEARS; OTHER
NAME, AGE OF ELECTION DIRECTORSHIPS
- --------- ----------------- ---------------------
<S> <C> <C>
Zlatkus, Lizabeth H. Vice President, 1994 Vice President, Director Business Operations (1994),
36 Director, 1994* Assistant Vice President, Director Executive Operations (1992),
Executive Staff Assistant to President (1990), Hartford Life Insurance
Company
</TABLE>
- -------------------
* Denotes year of election to Board of Directors
** ITT Hartford Affiliated Company

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DISTRIBUTION OF THE CONTRACTS

ITT Hartford intends to sell the Contracts in all jurisdictions where it is
licensed to do business. The Contracts will be sold by life insurance sales
representatives who represent ITT Hartford and who are registered
representatives of Hartford Equity Sales Company, Inc. ("HESCO") or certain
other independent registered broker-dealers. Any sales representative or
employee will have been qualified to sell variable life insurance contracts
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.

Hartford Securities Distribution Company, Inc. ("HSD") serves as Principal
Underwriter for the securities issued with respect to the Separate Account.
Both HESCO and HSD are wholly-owned subsidiaries of Hartford Life Insurance
Company. The principal business address of HESCO and HSD is the same as ITT
Hartford.

The maximum sales commission payable to ITT Hartford agents, independent
registered insurance brokers, and other registered broker-dealers is 6.0% of
initial and subsequent premiums. Additional annual compensation of no more
than 0.75% of Account Value may be paid. From time to time, ITT Hartford may
pay or permit other promotional incentives, in cash or credit or other
compensation.

ITT Hartford may provide information on various topics to Contract Owners and
prospective Contract Owners in advertising, sales literature or other
materials. These topics may include the relationship between sectors of the
economy and the economy as a whole and its effect on various securities
markets, investment strategies and techniques (such as value investing,
dollar cost averaging and asset allocation), the advantages and disadvantages
of investing in tax-advantaged and taxable instruments, customer profiles and
hypothetical purchase scenarios, financial management and tax and retirement
planning, and variable annuities and other investment alternatives, including
comparisons between the Contracts and the characteristics of and market for
such alternatives.

SAFEKEEPING OF THE SEPARATE ACCOUNT'S ASSETS

The assets of the Separate Account are held by ITT Hartford. The assets of
the Separate Account are kept physically segregated and held separate and
apart from the General Account of ITT Hartford. ITT 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 ITT
Hartford's blanket fidelity bond issued by Aetna Casualty and Surety Company,
in the aggregate of $50 million, covering all of the officers and employees
of ITT Hartford.

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FEDERAL TAX CONSIDERATIONS

GENERAL

SINCE THE TAX LAW IS COMPLEX AND SINCE TAX CONSEQUENCES WILL VARY ACCORDING TO
THE ACTUAL STATUS OF THE CONTRACT OWNER INVOLVED, LEGAL AND TAX ADVICE MAY BE
NEEDED BY A PERSON, EMPLOYER OR OTHER ENTITY CONTEMPLATING THE PURCHASE OF A
CONTRACT DESCRIBED HEREIN.

It should be understood that any detailed description of the Federal income tax
consequences regarding the purchase of these Contracts 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 ITT Hartford's understanding of current Federal
income tax laws as they are currently interpreted.

TAXATION OF ITT HARTFORD AND THE SEPARATE ACCOUNT

The Separate Account is taxed as a part of ITT Hartford which is taxed as a
life insurance company under Subchapter L of the Internal Revenue Code
("Code"). Accordingly, the Separate Account 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 the Separate Account (the underlying
Funds) are reinvested and are taken into account in determining the value of
the Accumulation Units (see "Contract Benefits and Right - Account Value," on
page ). As a result, such investment income and realized capital gains are
automatically applied to increase reserves under the Contract.

ITT Hartford does not expect to incur any Federal income tax on the earnings or
realized capital gains attributable to the Separate Account. Based upon this
expectation, no charge is currently being made to the Separate Account for
Federal income taxes. If ITT Hartford incurs income taxes attributable to the
Separate Account or determines that such taxes will be incurred, it may assess a
charge for such taxes against the Separate Account.

INCOME TAXATION OF CONTRACT BENEFITS

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For Federal income tax purposes, the Contracts should be treated as life
insurance contracts under Section 7702 of the Code. The death benefit under
a life insurance contract is generally excluded from the gross income of the
beneficiary. Also, a life insurance Contract Owner is generally not taxed on
increments in the contract value until the Contract is partially or
completely surrendered. Section 7702 limits the amount of premiums that may
be invested in a Contract that is treated as life insurance. ITT Hartford
intends to monitor premium levels to assure compliance with the Section 7702
requirements.

During the first fifteen Contract Years, an "income first" rule generally
applies to distributions of cash required to be made under Code Section 7702
because of a reduction in benefits under the Contract.

The Maturity Date Extension Rider allows a Contract Owner to extend the
Maturity Date to the date of the Insured's death. If the Maturity Date of
the Contract is extended by rider, ITT Hartford believes that the Contract
will continue to be treated as a life insurance contract for federal income
tax purposes after the scheduled Maturity Date. However, due to the lack of
specific guidance on this issue, the result is not certain. If the Contract
is not treated as a life insurance contract for federal income tax purposes
after the scheduled Maturity Date, among other things, the Death Proceeds may
be taxable to the recipient. The Contract Owner should consult a qualified
tax adviser regarding the possible adverse tax consequences resulting from an
extension of the scheduled Maturity Date.

LAST SURVIVOR CONTRACTS

Although ITT Hartford believes that the last survivor Contracts are in
compliance with Section 7702 of the Code, the manner in which Section 7702
should be applied to certain features of a joint survivorship life insurance
contract is not directly addressed by Section 7702. In the absence of final
regulations or other guidance issued under Section 7702, there is necessarily
some uncertainty whether a last survivor Contract will meet the Section 7702
definition of a life insurance contract.

MODIFIED ENDOWMENT CONTRACTS

A life insurance contract is treated as a "modified endowment contract" under
Section 7702A of the Code if it meets the definition of life insurance in
Section 7702 but fails the "seven-pay" test of Section 7702A. The seven-pay
test provides that premiums cannot be paid at a rate more rapidly than that
allowed by the payment of seven annual premiums using specified computational
rules provided in Section 7702A(c). The large single premium permitted under
the Contract does not meet the specified computational rules for the "seven-pay
test" under Section 7702A(c). Therefore, the Contract will generally be treated
as a modified endowment contract for federal income tax purposes. However,

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an exchange under Section 1035 of the Code of a life insurance contract
issued before June 21, 1988 will not cause the new Contract to be treated as
a modified endowment contract if no additional premiums are paid.

A contract that is classified as modified endowment contract is generally
eligible for 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, a loan, distributions or other amounts
received from a modified endowment contract during the life of the Insured will
be taxed to the extent of any accumulated income in the contract (generally, the
excess of account value over premiums paid). Amounts that are taxable
withdrawals will be subject to a 10% additional tax, with certain exceptions.

All modified endowment contracts that are issued within any calendar year to
the same Contract Owner by one company or its affiliates shall be treated as
one modified endowment contract in determining the taxable portion of any
loan or distributions.

ESTATE AND GENERATION SKIPPING TAXES

When the Insured dies, the Death Proceeds will generally be includible in the
Contract Owner's estate for purposes of federal estate tax if the last
surviving Insured owned the Contract. If the Contract Owner was not the last
surviving Insured, the fair market value of the Contract would be included in
the Contract Owner's estate upon the Contract Owner's death. Nothing would
be includible in the last surviving Insured's estate if he or she neither
retained incidents of ownership at death nor had given up ownership within
three years before death.

Federal estate tax is integrated with federal gift tax under a unified rate
schedule. In general, estates less than $600,000 will not incur a federal
estate tax liability. In addition, an unlimited marital deduction may be
available for federal estate and gift tax purposes. The unlimited marital
deduction permits the deferral of taxes until the death of the surviving
spouse (when the Death Proceeds would be available to pay taxes due and other
expenses incurred).

If the Contract Owner (whether or not he or she is an Insured) transfers
ownership of the Contract to someone two or more generations younger, the
transfer may be subject to the generation-skipping transfer tax, the taxable
amount being the value of the Contract. The generation-skipping transfer tax
provisions generally apply to transfers which would be subject to the gift
and estate tax rules. Individuals are generally allowed an aggregate
generation skipping transfer exemption of $1 million. Because these rules
are complex, the Contract Owner should consult with a qualified tax adviser
for specific information if ownership is passing to younger generations.

DIVERSIFICATION REQUIREMENTS

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Section 817 of the Code provides that a variable life insurance contract
(other than a pension plan policy) will not be treated as a life insurance
contract 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 Department. If a Contract is not
treated as a life insurance contract, the Contract Owner will be subject to
income tax on the annual increases in cash value.

The Treasury Department has issued diversification regulations which
generally require, among other things, that no more than 55% of the value of
the total assets of the segregated asset account underlying a variable
contract is represented by any one investment, no more than 70% is
represented by any two investments, no more than 80% is represented by any
three investments, and no more than 90% is represented by any four
investments. In determining whether the diversification standards are met,
all securities of the same issuer, all interests in the same real property
project, and all interests in the same commodity are each treated as a single
investment. In addition, in the case of government securities, each
government agency or instrumentality shall be treated as a separate issuer.

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
requirements, the company may comply within a reasonable period and avoid the
taxation of policy income on an ongoing basis. However, either the company
or the Contract Owner must agree to pay the tax due for the period during
which the diversification requirements were not met.

ITT Hartford monitors the diversification of investments in the separate
accounts and tests for diversification as required by the Code. ITT Hartford
intends to administer all contracts subject to the diversification
requirements in a manner that will maintain adequate diversification.

OWNERSHIP OF THE ASSETS IN THE SEPARATE ACCOUNT

In order for a variable life insurance contract to qualify for tax deferral,
assets in the segregated asset accounts supporting the variable contract must be
considered to be owned by the insurance company and not by the variable contract
owner. The Internal Revenue Service ("IRS") has issued several rulings which
discuss investor control. The IRS has ruled that incidents of ownership by the
contract owner, such as the ability to select and control investments in a
separate account, will cause the contract owner to be treated as the owner of
the assets for tax purposes.

Further, in the explanation to the temporary Section 817 diversification

<PAGE>
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regulations, the Treasury Department noted that the temporary regulations "do
not provide guidance concerning the circumstances in which investor control of
the investments of a segregated asset account may cause the investor, rather
than the insurance company, to be treated as the owner of the assets in the
account." The explanation further indicates that "the temporary regulations
provide that in appropriate cases a segregated asset account may include
multiple sub-accounts, but do not specify the extent to which policyholders may
direct their investments to particular sub-accounts without being treated as the
owners of the underlying assets. Guidance on this and other issues will be
provided in regulations or revenue rulings under section 817(d), relating to the
definition of variable contract." The final regulations issued under Section
817 did not provide guidance regarding investor control, and as of the date of
this Prospectus, no other such guidance has been issued. Further, ITT Hartford
does not know if or in what form such guidance will be issued. In addition,
although regulations are generally issued with prospective effect, it is
possible that regulations may be issued with retroactive effect. Due to the
lack of specific guidance regarding the issue of investor control, there is
necessarily some uncertainty regarding whether a Contract Owner could be
considered the owner of the assets for tax purposes. ITT Hartford reserves the
right to modify the contracts, as necessary, to prevent Contract Owners from
being considered the owners of the assets in the separate accounts.

LIFE INSURANCE PURCHASED FOR USE IN SPLIT DOLLAR ARRANGEMENTS

On January 26, 1996, the IRS released a technical advice memorandum ("TAM") on
the taxability of life insurance policies used in certain split dollar
arrangements. A TAM, issued by the National Office of the IRS, provides advice
as to the internal revenue laws, regulations, and related statutes with respect
to a specific set of facts and a specific taxpayer. In the TAM, among other
things, the IRS concluded that an employee was subject to current taxation on
the excess of the cash surrender value of the policy over the premiums to be
returned to the employer. Purchasers of life insurance policies to be used in
split dollar arrangements are strongly advised to consult with a qualified tax
adviser to determine the tax treatment resulting from such an arrangement.

FEDERAL INCOME TAX WITHHOLDING

If any amounts are deemed to be current taxable income to the Contract Owner,
such amounts will be subject to federal income tax withholding and reporting,
pursuant to the Code.

NON-INDIVIDUAL OWNERSHIP OF CONTRACTS

Legislation has recently been proposed which would limit certain of the tax
advantages now afforded non-individual owners of life insurance contracts.
Prospective Contract Owners which are not individuals should consult a tax

<PAGE>
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adviser to determine the status of this proposed legislation and its potential
impact on the purchaser.

OTHER

Federal estate tax, state and local estate, inheritance and other tax
consequences of ownership, or receipt of Contract proceeds depend on the
circumstances of each Contract Owner or beneficiary. A tax adviser should be
consulted to determine the impact of these taxes.

LIFE INSURANCE PURCHASES BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS

The discussion above provides general information regarding U.S. federal income
tax consequences to life insurance purchasers that are U.S. citizens or
residents. Purchasers that are not U.S. citizens or residents will generally be
subject to U.S. federal income tax and withholding on taxable distributions from
life insurance policies at a 30% rate, unless a lower treaty rate applies. In
addition, purchasers may be subject to state and/or municipal taxes and taxes
that may be imposed by the purchaser's country of citizenship or residence.
Prospective purchasers are advised to consult with a qualified tax advisor
regarding U.S. state, and foreign taxation with respect to a life insurance
policy purchase.

LEGAL PROCEEDINGS

There are no pending material legal proceedings affecting the Contracts, the
Separate Account or any of the Funds.

LEGAL MATTERS

Legal matters in connection with the issue and sale of flexible premium variable
life insurance contracts described in this Prospectus and the organization of
ITT Hartford, its authority to issue the Contracts under Connecticut law and the
validity of the forms of the Contracts under Connecticut law and legal matters
relating to the Federal securities and income tax laws have been passed on by
Lynda Godkin, General Counsel of ITT Hartford Life Insurance Companies.

EXPERTS

The financial statements and schedules for ITT Hartford included in this
Prospectus and elsewhere in the Registration Statement have been audited by
Arthur Andersen LLP, independent public accountants, as indicated in their
report hereon, and are included herein in reliance upon the authority of said
firm as experts in accounting and auditing in giving said report. Reference is
made to said report of ITT Hartford Life and Annuity Insurance Company (the
depositor), which includes an explanatory paragraph with respect to changing the
valuation

<PAGE>
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method in determining aggregate reserves for future benefits. The principal
business address of Arthur Andersen LLP is One Financial Plaza, Hartford,
Connecticut 06103.

The hypothetical Contract illustrations included in this Prospectus and
Registration Statement have been approved by Michael Winterfield, FSA, MAAA,
Director, Individual Annuity Inforce Management, for ITT Hartford, and 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 the Separate Account, the Funds, ITT Hartford, and the
Contracts.

<PAGE>
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APPENDIX A

ILLUSTRATIONS OF BENEFITS

The tables in Appendix A illustrate the way in which a Contract operates. They
show how the death benefit and surrender value could vary over an extended
period of time assuming hypothetical gross rates of return equal to constant
after tax annual rates of 0%, 6% and 12%. The tables are based on an initial
premium of $10,000. A male age 45, a female age 55 and a male age 65 with Face
Amounts of $40,161, $33,334 and $19,380, respectively, are illustrated for the
single life Contract. The illustrations for the last survivor Contract assume
male and female of equal ages, including age 55 and 65 for Face Amounts of
$44,053 and $27,778.

The death benefit and surrender value for a Contract would be different from
those shown if the rates of return averaged 0%, 6% and 12% over a period of
years, but also fluctuated above or below those averages for individual
Contract Years. They would also differ if any Contract loan were made during
the period of time illustrated.

The tables reflect the deductions of current Contract charges and guaranteed
Contract charges for a single gross interest rate. The death benefits and
surrender values would change if the current cost of insurance charges change.

The amounts shown for the death benefit and surrender value as of the end of
each Contract Year take into account an average daily charge equal to an
annual charge of 0.75% of the average daily net assets of the Funds for
investment advisory and administrative services fees. The gross annual
investment return rates of 0%, 6% and 12% on the Fund's assets are equal to
net annual investment return rates (net of the 0.75% average daily charge) of
- -0.75%, 5.25% and 11.25%, respectively.

In addition, the death benefit and surrender value as of the end of each
Contract Year take into account the (1) tax expense charge equal to an annual
rate of 0.40% of Account Value for the first ten Contract Years; (2)
administrative charge equal to an annual rate of 0.40% of Account Value
attributable to the Separate Account; (3) mortality and expense risk charge
equal to an annual rate of 0.90% of Account Value attributable to the
Separate Account; and (4) any Contingent Deferred Sales Charge and premium
tax charge which may be applicable in the first nine Contract Years.

The hypothetical returns shown in the tables are without any tax charges that
may be attributable to the Separate Account in the future. In order to
produce after tax returns of 0%, 6%, and 12%, the Separate Account would have
to earn a sufficient amount in excess of 0% or 6% or 12% to cover any tax
charges (see

<PAGE>
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Page 51
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"Deductions and Charges - Charges Against The Separate Account - Taxes,"
page ___ ).

The "Premium Paid Plus Interest" column of each table shows the amount which
would accumulate if the initial premium was invested to earn interest, after
taxes of 5% per year, compounded annually. ITT Hartford will furnish upon
request, a comparable illustration reflecting the proposed insureds age, risk
classification, Face Amount or initial premium requested, and reflecting
guaranteed cost of insurance rates. ITT Hartford will also furnish an
additional similar illustration reflecting current cost of insurance rates
which may be less than, but never greater than, the guaranteed cost of
insurance rates.

<PAGE>
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ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
SINGLE LIFE OPTION
$10,000 INITIAL PREMIUM
ISSUE AGE 45 MALE
INITIAL FACE AMOUNT: $40,161

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 10,834 9,840 40,161 10,756 9,764 40,161
2 11,025 11,740 10,755 40,161 11,575 10,593 40,161
3 11,576 12,724 11,751 40,161 12,463 11,495 40,161
4 12,155 13,794 12,987 40,161 13,427 12,626 40,161
5 12,763 14,956 14,169 40,161 14,474 13,693 40,161
6 13,401 16,219 15,657 40,161 15,613 15,057 40,161
7 14,071 17,592 17,060 40,161 16,851 16,324 40,161
8 14,775 19,083 18,788 40,161 18,198 17,907 40,161
9 15,513 20,704 20,452 40,161 19,666 19,417 40,161
10 16,289 22,465 22,465 40,161 21,268 21,268 40,161
11 17,103 24,501 24,501 40,161 23,113 23,113 40,161
12 17,959 26,724 26,724 40,161 25,145 25,145 40,161
13 18,856 29,153 29,153 41,398 27,386 27,386 40,161
14 19,799 31,808 31,808 43,896 29,864 29,864 41,213
15 20,789 34,714 34,714 46,517 32,590 32,590 43,670
16 21,829 37,895 37,895 49,264 35,574 35,574 46,247
17 22,920 41,367 41,367 52,951 38,832 38,832 49,705
18 24,066 45,156 45,156 56,897 42,386 42,386 53,407
19 25,270 49,292 49,292 61,122 46,266 46,266 57,371
20 26,533 53,807 53,807 65,645 50,502 50,502 61,613
25 33,864 83,601 83,601 96,978 78,372 78,372 90,912
35 55,160 201,997 201,997 214,118 180,092 189,092 200,438
</TABLE>

*THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF I NSURANCE
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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 12% OVER A PERIOD OF YEARS, BUT
ALSO FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT
WOULD ALSO BE DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT
ALLOCATIONS MADE TO THE SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE
SEPARATE ACCOUNT IF THE ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO THE
CONTRACT 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.

<PAGE>
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ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
SINGLE LIFE OPTION
$10,000 INITIAL PREMIUM
ISSUE AGE 45 MALE
INITIAL FACE AMOUNT: $40,161

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 10,249 9,269 40,161 10,171 9,192 40,161
2 11,025 10,506 9,546 40,161 10,337 9,380 40,161
3 11,576 10,769 9,831 40,161 10,497 9,564 40,161
4 12,155 11,040 10,275 40,161 10,651 9,891 40,161
5 12,763 11,319 10,577 40,161 10,796 10,061 40,161
6 13,401 11,605 11,089 40,161 10,930 10,421 40,161
7 14,071 11,900 11,411 40,161 11,052 10,569 40,161
8 14,775 12,202 11,941 40,161 11,158 10,902 40,161
9 15,513 12,514 12,282 40,161 11,244 11,016 40,161
10 16,289 12,833 12,833 40,161 11,309 11,309 40,161
11 17,103 13,228 13,228 40,161 11,394 11,394 40,161
12 17,959 13,636 13,636 40,161 11,455 11,455 40,161
13 18,856 14,058 14,058 40,161 11,486 11,486 40,161
14 19,799 14,494 14,494 40,161 11,486 11,486 40,161
15 20,789 14,944 14,944 40,161 11,450 11,450 40,161
16 21,829 15,409 15,409 40,161 11,370 11,370 40,161
17 22,920 15,889 15,889 40,161 11,239 11,239 40,161
18 24,066 16,385 16,385 40,161 11,048 11,048 40,161
19 25,270 16,898 16,898 40,161 10,787 10,787 40,161
20 26,533 17,428 17,428 40,161 10,442 10,442 40,161
25 33,864 20,353 20,353 40,161 6,987 6,987 40,161
35 55,160 27,852 27,852 40,161 0 0 0
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTRACT 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.

<PAGE>
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ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
SINGLE LIFE OPTION
$10,000 INITIAL PREMIUM
ISSUE AGE 45 MALE
INITIAL FACE AMOUNT: $40,161

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 9,665 8,698 40,161 9,586 8,649 40,161
2 11,025 9,340 8,404 40,161 9,169 8,291 40,161
3 11,576 9,026 8,118 40,161 8,747 7,925 40,161
4 12,155 8,721 7,990 40,161 8,319 7,699 40,161
5 12,763 8,425 7,720 40,161 7,883 7,312 40,161
6 13,401 8,138 7,657 40,161 7,438 7,113 40,161
7 14,071 7,860 7,401 40,161 6,980 6,696 40,161
8 14,775 7,591 7,353 40,161 6,506 6,461 40,161
9 15,513 7,330 7,111 40,161 6,013 6,002 40,161
10 16,289 7,076 7,076 40,161 5,498 5,717 40,161
11 17,103 6,865 6,865 40,161 4,978 5,211 40,161
12 17,959 6,659 6,659 40,161 4,427 4,673 40,161
13 18,856 6,459 6,459 40,161 3,843 4,100 40,161
14 19,799 6,264 6,264 40,161 3,221 3,488 40,161
15 20,789 6,073 6,073 40,161 2,558 2,833 40,161
16 21,829 5,888 5,888 40,161 1,845 2,127 40,161
17 22,920 5,707 5,707 40,161 1,075 1,361 40,161
18 24,066 5,531 5,531 40,161 237 526 40,161
19 25,270 5,360 5,360 40,161 0 0 0
20 26,533 5,193 5,193 40,161 0 0 0
25 33,864 4,420 4,420 40,161 0 0 0
35 55,160 3,145 3,145 40,161 0 0 0
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTRACT 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.

<PAGE>
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ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
SINGLE LIFE OPTION
$10,000 INITIAL PREMIUM
ISSUE AGE 55 FEMALE
INITIAL FACE AMOUNT: $33,334

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12.00% (11.25% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 10,834 9,840 33,334 10,727 9,736 33,334
2 11,025 11,740 10,755 33,334 11,517 10,537 33,334
3 11,576 12,724 11,751 33,334 12,378 11,411 33,334
4 12,155 13,794 12,987 33,334 13,317 12,517 33,334
5 12,763 14,956 14,169 33,334 14,343 13,564 33,334
6 13,401 16,219 15,657 33,334 15,464 14,909 33,334
7 14,071 17,592 17,060 33,334 16,688 16,163 33,334
8 14,775 19,083 18,788 33,334 18,025 17,735 33,334
9 15,513 20,704 20,452 33,334 19,487 19,238 33,334
10 16,289 22,465 22,465 33,334 21,088 21,088 33,334
11 17,103 24,501 24,501 33,334 22,940 22,940 33,334
12 17,959 26,736 26,736 33,334 24,991 24,991 33,334
13 18,856 29,218 29,218 34,478 27,270 27,270 33,334
14 19,799 31,946 31,946 37,377 29,804 29,804 34,891
15 20,789 34,928 34,928 40,517 32,585 32,585 37,799
16 21,829 38,190 38,190 43,919 35,625 35,625 40,969
17 22,920 41,765 41,765 47,195 38,958 38,958 44,023
18 24,066 45,686 45,686 50,712 42,614 42,614 47,301
19 25,270 49,992 49,992 54,492 46,627 46,627 50,824
20 26,533 54,687 54,687 59,609 51,004 51,004 55,594
25 33,864 85,841 85,841 90,992 80,060 80,060 84,864
35 55,160 208,273 208,273 218,687 192,260 192,260 201,873
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTRACT 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.

<PAGE>
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Page 56
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ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
SINGLE LIFE OPTION
$10,000 INITIAL PREMIUM
ISSUE AGE 55 FEMALE
INITIAL FACE AMOUNT: $33,334

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 10,249 9,269 33,334 10,142 9,164 33,334
2 11,025 10,506 9,546 33,334 10,279 9,324 33,334
3 11,576 10,769 9,831 33,334 10,412 9,480 33,334
4 12,155 11,040 10,275 33,334 10,539 9,781 33,334
5 12,763 11,319 10,577 33,334 10,661 9,928 33,334
6 13,401 11,605 11,089 33,334 10,774 10,266 33,334
7 14,071 11,900 11,411 33,334 10,875 10,394 33,334
8 14,775 12,202 11,941 33,334 10,959 10,704 33,334
9 15,513 12,514 12,282 33,334 11,021 10,793 33,334
10 16,289 12,833 12,833 33,334 11,055 11,055 33,334
11 17,103 13,228 13,228 33,334 11,106 11,106 33,334
12 17,959 13,636 13,636 33,334 11,127 11,127 33,334
13 18,856 14,058 14,058 33,334 11,117 11,117 33,334
14 19,799 14,494 14,494 33,334 11,073 11,073 33,334
15 20,789 14,944 14,944 33,334 10,988 10,988 33,334
16 21,829 15,409 15,409 33,334 10,854 10,854 33,334
17 22,920 15,889 15,889 33,334 10,656 10,656 33,334
18 24,066 16,385 16,385 33,334 10,375 10,375 33,334
19 25,270 16,898 16,898 33,334 9,991 9,991 33,334
20 26,533 17,428 17,428 33,334 9,479 9,479 33,334
25 33,864 20,353 20,353 33,334 3,955 3,955 33,334
35 55,160 27,852 27,852 33,334 0 0 0
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTRACT 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.

<PAGE>
- --------------------------------------------------------------------------------
Page 57
- --------------------------------------------------------------------------------

ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
SINGLE LIFE OPTION
$10,000 INITIAL PREMIUM
ISSUE AGE 55 FEMALE
INITIAL FACE AMOUNT: $33,334

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75 NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 9,665 8,698 33,334 9,558 8,593 33,334
2 11,025 9,340 8,404 33,334 9,112 8,179 33,334
3 11,576 9,026 8,118 33,334 8,662 7,761 33,334
4 12,155 8,721 7,990 33,334 8,209 7,486 33,334
5 12,763 8,425 7,720 33,334 7,750 7,053 33,334
6 13,401 8,138 7,657 33,334 7,283 6,810 33,334
7 14,071 7,860 7,401 33,334 6,803 6,352 33,334
8 14,775 7,591 7,353 33,334 6,305 6,073 33,334
9 15,513 7,330 7,111 33,334 5,782 5,568 33,334
10 16,289 7,076 7,076 33,334 5,230 5,230 33,334
11 17,103 6,865 6,865 33,334 4,665 4,665 33,334
12 17,959 6,659 6,659 33,334 4,061 4,061 33,334
13 18,856 6,459 6,459 33,334 3,419 3,419 33,334
14 19,799 6,264 6,264 33,334 2,733 2,733 33,334
15 20,789 6,073 6,073 33,334 1,997 1,997 33,334
16 21,829 5,888 5,888 33,334 1,200 1,200 33,334
17 22,920 5,707 5,707 33,334 324 324 33,334
18 24,066 5,531 5,531 33,334 0 0 0
19 25,270 5,360 5,360 33,334 0 0 0
20 26,533 5,193 5,193 33,334 0 0 0
25 33,864 4,420 4,420 33,334 0 0 0
35 55,160 3,145 3,145 33,334 0 0 0
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE
DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT WOULD
ALSO BE DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS
MADE TO THE SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT
IF THE ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTRACT 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.

<PAGE>
- --------------------------------------------------------------------------------
Page 58
- --------------------------------------------------------------------------------

ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
SINGLE LIFE OPTION
$10,000 INITIAL PREMIUM
ISSUE AGE 65 MALE
INITIAL FACE AMOUNT: $19,380

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 10,834 9,840 19,380 10,650 9,660 19,380
2 11,025 11,740 10,755 19,380 11,357 10,380 19,380
3 11,576 12,724 11,751 19,380 12,131 11,169 19,380
4 12,155 13,794 12,987 19,380 12,984 12,190 19,380
5 12,763 14,956 14,169 19,380 13,930 13,156 19,380
6 13,401 16,219 15,657 19,380 14,986 14,436 19,380
7 14,071 17,595 17,063 19,883 16,172 15,650 19,380
8 14,775 19,106 18,810 21,208 17,516 17,228 19,443
9 15,513 20,760 20,508 22,629 19,027 18,780 20,740
10 16,289 22,549 22,549 24,578 20,664 20,664 22,524
11 17,103 24,595 24,595 26,563 22,536 22,536 24,340
12 17,959 26,837 26,837 28,716 24,587 24,587 26,309
13 18,856 29,275 29,275 31,325 26,816 26,816 28,693
14 19,799 31,947 31,947 33,864 29,260 29,260 31,016
15 20,789 34,856 34,856 36,948 31,916 31,916 33,831
16 21,829 38,046 38,046 39,949 34,834 34,834 36,576
17 22,920 41,517 41,517 43,594 38,005 38,005 39,906
18 24,066 45,308 45,308 47,574 41,447 41,447 43,520
19 25,270 49,448 49,448 51,921 45,177 45,177 47,436
20 26,533 53,969 53,969 56,667 49,215 49,215 51,677
25 33,864 83,837 83,837 88,030 74,965 74,965 78,714
35 55,160 202,335 202,335 204,358 175,528 175,528 177,284
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTRACT 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.

<PAGE>
- --------------------------------------------------------------------------------
Page 59
- --------------------------------------------------------------------------------

ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
SINGLE LIFE OPTION
$10,000 INITIAL PREMIUM
ISSUE AGE 65 MALE
INITIAL FACE AMOUNT: $19,380

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 10,249 9,269 19,380 10,062 9,086 19,380
2 11,025 10,506 9,546 19,380 10,104 9,152 19,380
3 11,576 10,769 9,831 19,380 10,123 9,196 19,380
4 12,155 11,040 10,275 19,380 10,116 9,364 19,380
5 12,763 11,319 10,577 19,380 10,077 9,351 19,380
6 13,401 11,605 11,089 19,380 10,002 9,502 19,380
7 14,071 11,900 11,411 19,380 9,880 9,406 19,380
8 14,775 12,202 11,941 19,380 9,703 9,454 19,380
9 15,513 12,514 12,282 19,380 9,455 9,232 19,380
10 16,289 12,833 12,833 19,380 9,124 9,124 19,380
11 17,103 13,228 13,228 19,380 8,730 8,730 19,380
12 17,959 13,636 13,636 19,380 8,217 8,217 19,380
13 18,856 14,058 14,058 19,380 7,564 7,564 19,380
14 19,799 14,494 14,494 19,380 6,738 6,738 19,380
15 20,789 14,944 14,944 19,380 5,699 5,699 19,380
16 21,829 15,409 15,409 19,380 4,387 4,387 19,380
17 22,920 15,889 15,889 19,380 2,723 2,723 19,380
18 24,066 16,385 16,385 19,380 595 595 19,380
19 25,270 16,898 16,898 19,380 0 0 0
20 26,533 17,428 17,428 19,380 0 0 0
25 33,864 20,353 20,353 21,371 0 0 0
35 55,160 27,854 27,854 28,133 0 0 0
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTRACT 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.

<PAGE>
- --------------------------------------------------------------------------------
Page 60
- --------------------------------------------------------------------------------

ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
SINGLE LIFE OPTION
$10,000 INITIAL PREMIUM
ISSUE AGE 65 MALE
INITIAL FACE AMOUNT: $19,380

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 9,665 8,698 19,380 9,475 8,512 19,380
2 11,025 9,340 8,404 19,380 8,923 7,994 19,380
3 11,576 9,026 8,118 19,380 8,340 7,444 19,380
4 12,155 8,721 7,990 19,380 7,720 7,004 19,380
5 12,763 8,425 7,720 19,380 7,056 6,368 19,380
6 13,401 8,138 7,657 19,380 6,338 5,875 19,380
7 14,071 7,869 7,401 19,380 5,553 5,111 19,380
8 14,775 7,591 7,353 19,380 4,684 4,461 19,380
9 15,513 7,330 7,111 19,380 3,712 3,503 19,380
10 16,289 7,076 7,076 19,380 2,616 2,616 19,380
11 17,103 6,865 6,865 19,380 1,379 1,379 19,380
12 17,959 6,659 6,659 19,380 0 0 0
13 18,856 6,459 6,459 19,380 0 0 0
14 19,799 6,264 6,264 19,380 0 0 0
15 20,789 6,073 6,073 19,380 0 0 0
16 21,829 5,888 5,888 19,380 0 0 0
17 22,920 5,707 5,707 19,380 0 0 0
18 24,066 5,531 5,531 19,380 0 0 0
19 25,270 5,360 5,360 19,380 0 0 0
20 26,533 5,193 5,193 19,380 0 0 0
25 33,864 4,420 4,420 19,380 0 0 0
35 55,160 3,145 3,145 19,380 0 0 0
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTACT AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTACT 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.

<PAGE>
- --------------------------------------------------------------------------------
Page 61
- --------------------------------------------------------------------------------

ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
LAST SURVIVOR OPTION
$10,000 INITIAL PREMIUM
ISSUE AGES: 55 MALE \ 55 FEMALE
INITIAL FACE AMOUNT: $44,053

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 10,902 9,906 44,053 10,902 9,906 44,053
2 11,025 11,882 10,894 44,053 11,882 10,894 44,053
3 11,576 12,946 11,970 44,053 12,946 11,970 44,053
4 12,155 14,103 13,292 44,053 14,103 13,292 44,053
5 12,763 15,360 14,568 44,053 15,360 14,568 44,053
6 13,401 16,726 16,159 44,053 16,726 16,159 44,053
7 14,071 18,210 17,674 44,053 18,210 17,674 44,053
8 14,775 19,825 19,526 44,053 19,822 19,523 44,053
9 15,513 21,585 21,331 44,053 21,574 21,320 44,053
10 16,289 23,505 23,505 44,053 23,477 23,477 44,053
11 17,103 25,727 25,727 44,053 25,652 25,652 44,053
12 17,959 28,162 28,162 44,053 28,031 28,031 44,053
13 18,856 30,830 30,830 44,053 30,640 30,640 44,053
14 19,799 33,755 33,755 44,053 33,507 33,507 44,053
15 20,789 36,960 36,960 44,053 36,667 36,667 44,053
16 21,829 40,479 40,479 46,551 40,154 40,154 46,177
17 22,920 44,337 44,337 50,102 43,981 43,981 49,699
18 24,066 48,565 48,565 53,908 48,175 48,175 53,475
19 25,270 53,202 53,202 57,991 52,774 52,774 57,524
20 26,533 58,305 58,305 63,553 57,828 57,828 63,033
25 33,864 92,176 92,176 97,707 91,132 91,132 96,600
35 55,160 230,373 230,373 241,893 219,404 219,404 230,374
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTRACT 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.

<PAGE>
- --------------------------------------------------------------------------------
Page 62
- --------------------------------------------------------------------------------

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 10,314 9,332 44,053 10,314 9,332 44,053
2 11,025 10,632 9,669 44,053 10,632 9,669 44,053
3 11,576 10,954 10,012 44,053 10,954 10,012 44,053
4 12,155 11,279 10,509 44,053 11,279 10,509 44,053
5 12,763 11,605 10,860 44,053 11,605 10,860 44,053
6 13,401 11,941 11,422 44,053 11,931 11,412 44,053
7 14,071 12,288 11,796 44,053 12,255 11,763 44,053
8 14,775 12,646 12,383 44,053 12,574 12,311 44,053
9 15,513 13,015 12,782 44,053 12,885 12,652 44,053
10 16,289 13,396 13,396 44,053 13,182 13,182 44,053
11 17,103 13,858 13,858 44,053 13,517 13,517 44,053
12 17,959 14,337 14,337 44,053 13,834 13,834 44,053
13 18,856 14,834 14,834 44,053 14,127 14,127 44,053
14 19,799 15,349 15,349 44,053 14,393 14,393 44,053
15 20,789 15,883 15,883 44,053 14,624 14,624 44,053
16 21,829 16,436 16,436 44,053 14,809 14,809 44,053
17 22,920 17,010 17,010 44,053 14,938 14,938 44,053
18 24,066 17,606 17,606 44,053 14,991 14,991 44,053
19 25,270 18,223 18,223 44,053 14,949 14,949 44,053
20 26,533 18,863 18,863 44,053 14,787 14,787 44,053
25 33,864 22,433 22,433 44,053 11,078 11,078 44,053
35 55,160 31,836 31,836 44,053 0 0 0
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTRACT 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.

<PAGE>
- --------------------------------------------------------------------------------
Page 63
- --------------------------------------------------------------------------------

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 9,726 8,757 44,053 9,726 8,757 44,053
2 11,025 9,452 8,512 44,053 9,451 8,512 44,053
3 11,576 9,177 8,266 44,053 9,177 8,266 44,053
4 12,155 8,899 8,166 44,053 8,899 8,166 44,053
5 12,763 8,628 7,920 44,053 8,618 7,910 44,053
6 13,401 8,365 7,881 44,053 8,331 7,848 44,053
7 14,071 8,108 7,647 44,053 8,035 7,575 44,053
8 14,775 7,859 7,619 44,053 7,727 7,489 44,053
9 15,513 7,616 7,397 44,053 7,403 7,185 44,053
10 16,289 7,380 7,380 44,053 7,058 7,058 44,053
11 17,103 7,186 7,186 44,053 6,713 6,713 44,053
12 17,959 6,996 6,996 44,053 6,334 6,334 44,053
13 18,856 6,811 6,811 44,053 5,916 5,916 44,053
14 19,799 6,630 6,630 44,053 5,451 5,451 44,053
15 20,789 6,453 6,453 44,053 4,932 4,932 44,053
16 21,829 6,280 6,280 44,053 4,345 4,345 44,053
17 22,920 6,110 6,110 44,053 3,673 3,673 44,053
18 24,066 5,945 5,945 44,053 2,896 2,896 44,053
19 25,270 5,783 5,783 44,053 1,985 1,985 44,053
20 26,533 5,625 5,625 44,053 910 910 44,053
25 33,864 4,885 4,885 44,053 0 0 0
35 55,160 3,633 3,633 44,053 0 0 0
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTRACT 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.

<PAGE>
- --------------------------------------------------------------------------------
Page 64
- --------------------------------------------------------------------------------

ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
LAST SURVIVOR OPTION
$10,000 INITIAL PREMIUM
ISSUE AGES: 65 MALE \ 65 FEMALE
INITIAL FACE AMOUNT: $27,778

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 10,897 9,902 27,778 10,897 9,902 27,778
2 11,025 11,862 10,875 27,778 11,862 10,875 27,778
3 11,576 12,903 11,927 27,778 12,902 11,926 27,778
4 12,155 14,037 13,227 27,778 14,021 13,211 27,778
5 12,763 15,274 14,483 27,778 15,229 14,439 27,778
6 13,401 16,623 16,057 27,778 16,535 15,969 27,778
7 14,071 18,094 17,558 27,778 17,948 17,413 27,778
8 14,775 19,698 19,399 27,778 19,482 19,185 27,778
9 15,513 21,447 21,193 27,778 21,155 20,902 27,778
10 16,289 23,354 23,354 27,778 22,988 22,988 27,778
11 17,103 25,561 25,561 27,778 25,115 25,115 27,778
12 17,959 27,981 27,981 29,940 27,485 27,485 29,409
13 18,856 30,632 30,632 32,776 30,076 30,076 32,182
14 19,799 33,537 33,537 35,550 32,914 32,914 34,889
15 20,789 36,721 36,721 38,925 36,007 36,007 38,168
16 21,829 40,211 40,211 42,222 39,396 39,396 41,367
17 22,920 44,035 44,035 46,238 43,088 43,088 45,243
18 24,066 48,227 48,227 50,639 47,104 47,104 49,460
19 25,270 52,820 52,820 55,462 51,466 51,466 54,040
20 26,533 57,887 57,887 60,782 56,231 56,231 59,043
25 33,864 91,514 91,514 96,090 86,546 86,546 90,874
35 55,160 228,720 228,720 231,007 203,577 203,577 205,613
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTACT 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.

<PAGE>
- --------------------------------------------------------------------------------
Page 65
- --------------------------------------------------------------------------------

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 10,309 9,327 27,778 10,309 9,327 27,778
2 11,025 10,612 9,650 27,778 10,612 9,650 27,778
3 11,576 10,917 9,976 27,778 10,907 9,967 27,778
4 12,155 11,232 10,463 27,778 11,191 10,423 27,778
5 12,763 11,556 10,812 27,778 11,460 10,717 27,778
6 13,401 11,891 11,372 27,778 11,710 11,193 27,778
7 14,071 12,236 11,744 27,778 11,935 11,445 27,778
8 14,775 12,592 12,329 27,778 12,126 11,866 27,778
9 15,513 12,960 12,727 27,778 12,275 12,045 27,778
10 16,289 13,339 13,339 27,778 12,370 12,370 27,778
11 17,103 13,799 13,799 27,778 12,451 12,451 27,778
12 17,959 14,276 14,276 27,778 12,455 12,455 27,778
13 18,856 14,770 14,770 27,778 12,368 12,368 27,778
14 19,799 15,283 15,283 27,778 12,172 12,172 27,778
15 20,789 15,815 15,815 27,778 11,843 11,843 27,778
16 21,829 16,366 16,366 27,778 11,347 11,347 27,778
17 22,920 16,937 16,937 27,778 10,641 10,641 27,778
18 24,066 17,530 17,530 27,778 9,661 9,661 27,778
19 25,270 18,144 18,144 27,778 8,326 8,326 27,778
20 26,533 18,781 18,781 27,778 6,527 6,527 27,778
25 33,864 22,335 22,335 27,778 0 0 0
35 55,160 31,696 31,696 32,014 0 0 0
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTRACT 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.

<PAGE>
- --------------------------------------------------------------------------------
Page 66
- --------------------------------------------------------------------------------

ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)

<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
PREMIUMS -------------------------------------- --------------------------------------
END OF ACCUMULATED CASH CASH
CONTRACT 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 10,500 9,721 8,752 27,778 9,721 8,752 27,778
2 11,025 9,432 8,493 27,778 9,432 8,493 27,778
3 11,576 9,147 8,236 27,778 9,129 8,220 27,778
4 12,155 8,869 8,136 27,778 8,809 8,077 27,778
5 12,763 8,599 7,891 27,778 8,466 7,760 27,778
6 13,401 8,336 7,852 27,778 8,095 7,614 27,778
7 14,071 8,080 7,619 27,778 7,687 7,230 27,778
8 14,775 7,831 7,592 27,778 7,232 6,996 27,778
9 15,513 7,589 7,370 27,778 6,716 6,499 27,778
10 16,289 7,354 7,354 27,778 6,122 6,122 27,778
11 17,103 7,161 7,161 27,778 5,457 5,457 27,778
12 17,959 6,972 6,972 27,778 4,673 4,673 27,778
13 18,856 6,787 6,787 27,778 3,747 3,747 27,778
14 19,799 6,606 6,606 27,778 2,652 2,652 27,778
15 20,789 6,430 6,430 27,778 1,349 1,349 27,778
16 21,829 6,257 6,257 27,778 0 0 0
17 22,920 6,088 6,088 27,778 0 0 0
18 24,066 5,923 5,923 27,778 0 0 0
19 25,270 5,762 5,762 27,778 0 0 0
20 26,533 5,604 5,604 27,778 0 0 0
25 33,864 4,866 4,866 27,778 0 0 0
35 55,160 3,619 3,619 27,778 0 0 0
</TABLE>

*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.

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 CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT
RETURN APPLICABLE TO THE CONTRACT AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL CONTRACT YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A CONTRACT WOULD ALSO BE
DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE
SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL
RATES OF INVESTMENT RETURN APPLICABLE TO THE CONTRACT 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.

<PAGE>

Report of Independent Public Accountants

To ITT Hartford Life & Annuity Insurance Company Putnam Capital Manager Trust
Separate Account Five and to the Owners of Units of Interest therein:

We have audited the accompanying statement of assets & liabilities of ITT
Hartford Life & Annuity Insurance Company Pnager Trust Separate Account Five
(the Account) as of December 31, 1995, and the related statement of operations
and the statement of changes in net assets for the period from inception,
January 10, 1995, to December 31, 1995. These financial statements are the
responsibility of the Account's management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audit 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 audit provides 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 ITT Hartford Life & Annuity
Insurance Company Putnam Capital Manager Trust Separate Account Five as of
December 31, 1995, and the results of its operations and the changes in its net
assets for the period from inception, January 10, 1995, to December 31, 1995, in
conformity with generally accepted accounting principles.

Hartford, Connecticut
February 20, 1996 ARTHUR ANDERSEN LLP

<PAGE>

PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE - ITT HARTFORD LIFE & ANNUITY
INSURANCE COMPANY

Statement of Assets & Liabilities

December 31, 1995

<TABLE>
<CAPTION>
Asia Growth Global
Global Pacific and Asset High
Voyager Growth Growth Income Allocation Yield
Fund Fund Fund Fund Fund Fund
Sub- Sub- Sub- Sub- Sub- Sub-
Account Account Account Account Account Account
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments:

PCM Voyager Fund
Shares 48,274
Cost $1,342,465
Market Value: $1,472,357 $ 0 $ 0 $ 0 $ 0 $ 0

PCM Global Growth Fund
Shares 35,443
Cost $513,095
Market Value: 0 538,028 0 0 0 0

PCM Asia Pacific Growth Fund
Shares 4,223
Cost $42,196
Market Value: 0 0 43,203 0 0 0

PCM Growth and Income Fund
Shares 116,700
Cost $2,313,134
Market Value: 0 0 0 2,505,549 0 0

PCM Global Asset Allocation Fund
Shares 13,343
Cost $201,319
Market Value: 0 0 0 0 215,494 0

PCM High Yield Fund
Shares 21,399
Cost $256,380
Market Value: 0 0 0 0 0 264,709

PCM U.S. Government and High Quality Bond Fund
Shares 17,281
Cost $225,893
Market Value: 0 0 0 0 0 0

PCM New Opportunities Fund
Shares 100,012
Cost $1,412,475
Market Value: 0 0 0 0 0 0

PCM Money Market Fund
Shares 2,841,003
Cost $2,841,003
Market Value: 0 0 0 0 0 0

PCM Utilities Growth and Income Fund
Shares 22,465
Cost $272,929
Market Value: 0 0 0 0 0 0

PCM Diversified Income Fund
Shares 9,599
Cost $100,812
Market Value: 0 0 0 0 0 0

Due from ITT Hartford Life &
Annuity Insurance
Company 30,158 0 0 82,830 0 36,840

Total Assets $1,502,515 $538,028 $43,203 $2,588,379 $215,494 $301,549

Liabilities
Due to ITT Hartford Life &
Annuity
Insurance Company 0 2 0 0 0 0

Payable for fund
shares purchased 30,120 0 0 82,171 0 36,721
Total Liabilities 30,120 2 0 82,171 0 36,721
Net Assets
(variable life
contract
liabilities) $1,472,39 $538,026 $43,203 $2,506,208 $215,494 $264,828
Units Outstanding 104,005 46,100 4,223 184,547 17,267 22,383
Accumulation Unit
Value at
end of period $14.156972 $11.670786 $10.230003 $13.580303 $12.4802 $11.831850
</TABLE>

<TABLE>
<CAPTION>
U.S.
Government
and Utilities
High Growth
Quality and Diversified
Bond New Money Income Income
Fund Opportunities Market Fund Fund
Sub- Sub- Sub- Sub- Sub-
Account Account Account Account Account
<S> <C> <C> <C> <C> <C>
Assets
Investments:

PCM Voyager Fund
Shares 48,274
Cost $1,342,465
Market Value: $ 0 $ 0 $ 0 $ 0 $ 0

PCM Global Growth Fund
Shares 35,443
Cost $513,095
Market Value: 0 0 0 0 0

PCM Asia Pacific Growth Fund
Shares 4,223
Cost $42,196
Market Value: 0 0 0 0 0

PCM Growth and Income Fund
Shares 116,700
Cost $2,313,134
Market Value: 0 0 0 0 0

PCM Global Asset Allocation Fund
Shares 13,343
Cost $201,319
Market Value: 0 0 0 0 0

PCM High Yield Fund
Shares 21,399
Cost $256,380
Market Value: 0 0 0 0 0

PCM U.S. Government and High Quality Bond Fund
Shares 17,281
Cost $225,893
Market Value: 237,438 0 0 0 0

PCM New Opportunities Fund
Shares 100,012
Cost $1,412,475
Market Value: 0 1,563,192 0 0 0

PCM Money Market Fund
Shares 2,841,003
Cost $2,841,003
Market Value: 0 0 2,841,003 0 0

PCM Utilities Growth and Income Fund
Shares 22,465
Cost $272,929
Market Value: 0 0 0 298,339 0

PCM Diversified Income Fund
Shares 9,599
Cost $100,812
Market Value: 0 0 0 0 105,881

Due from ITT Hartford Life &
Annuity Insurance
Company 0 6,472 702,079 4,559 036,921

Total Assets $237,438 $1,569,664 $3,543,082 $302,898 $142,802

Liabilities
Due to ITT Hartford Life &
</TABLE>

<PAGE>

<TABLE>
<S> <C> <C> <C> <C> <C>
Annuity
Insurance Company 0 0 0 0 0

Payable for fund
shares purchased 0 6,448 701,800 4,561 36,721
Total Liabilities 0 6,448 701,800 4,561 36,721
Net Assets
(variable life
contract
liabilities) $237,438 $1,563,216 $2,841,282 $298,337 $106,081
Units Outstanding 19,698 107,405 2,695,879 22,761 8,859
Accumulation Unit
Value at
end of period $12.054164 $14.554430 $1.053935 $13.107694 $11.974198
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

<PAGE>

PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE - ITT HARTFORD LIFE & ANNUITY
INSURANCE COMPANY

Statement of Operations

For the period January 10, 1995

<TABLE>
<CAPTION>
Asia Growth Global
Global Pacific and Asset
Voyager Growth Growth Income Allocation
Fund Fund Fund Fund Fund
Sub- Sub- Sub- Sub- Sub-
Account Account Account Account Account
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends $ 30 $ 91 $ 0 $ 387 $ 192
Net investment
income (loss) 30 91 0 387 192
Capital gains income 224 170 0 100 0
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss) on security
transactions 379 31 (36) 18 134
Net unrealized
appreciation
(depreciation) of
investments during
the period 129,891 24,935 1,006 192,416 14,176
Net gains (losses) on
investments 130,270 24,966 970 192,434 14,310
Net increase
(decrease) in net
assets resulting
from operations: $130,524 $25,227 $970 $192,921 $14,502
</TABLE>

<TABLE>
<CAPTION>
U.S.
Government
and Utilities
High Growth
High Quality and Diversified
Yield Bond New Money Income Income
Fund Fund Opportunities Market Fund Fund
Sub- Sub- Sub- Sub- Sub- Sub-
Account Account Account Account Account Account
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividends $ 916 $ 696 $ 1 $ 44,306 $ 543 $ 521
Net investment
income (loss) 916 696 1 44,306 543 521
Capital gains income 0 0 31 0 0 0
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss) on security
transactions 83 99 (213) 0 516 679
Net unrealized
appreciation
(depreciation) of
investments during
the period 8,329 11,545 150,716 0 25,411 5,068
Net gains (losses) on
investments 8,412 11,644 150,503 0 25,927 5,747
Net increase
(decrease) in net
assets resulting
from operations: $9,328 $12,340 $150,535 $44,306 $26,470 $ 6,268

</TABLE>

*From inception, May 1, 1995, to December 31, 1995

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

<PAGE>

PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE - ITT HARTFORD LIFE & ANNUITY
INSURANCE COMPANY

<TABLE>
<CAPTION>
U.S.
Govern-
ment
and
Asia Growth Global High
Global Pacific and Asset High Quality New
Voyager Growth Growth Income Allocation Yield Bond Opport- Money
Fund Fund Fund Fund Fund Fund Fund unities Market
Sub- Sub- Sub- Sub- Sub- Sub- Sub- Sub- Sub-
Account Account Account Account Account Account Account Account Account
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Operations:
Net investment
income (loss) $ 30 $ 91 $ 0 $ 387 $ 192 $ 916 $ 696 $ 1 $ 44,306
Capital gains income 224 170 0 100 0 0 0 31 0
Net realized gain (loss)
on security
transactions 379 31 (36) 18 134 83 99 (213) 0
Net unrealized
appreciation
(depreciation) of
investments during
the period 129,891 24,935 1,006 192,416 14,176 8,329 11,545 150,716 0
Net increase (decrease)
in net assets resulting
from operations 130,524 25,227 970 192,921 14,502 9,328 12,340 150,535 44,306
Unit transactions:
Purchases 0 0 0 0 0 0 0 0 10,030,006
Net transfers 1,365,625 527,767 52,584 2,340,814 215,112 268,388 238,607 1,436,274 (6,734,538)
Surrenders (21,100) (14,119) (10,314) (23,281) (13,604) (12,554) (13,066) (21,087) (30,724)
Loan withdrawals 0 0 0 0 0 0 0 0 (457,482)
Cost of Insurance (2,654) (849) (37) (4,246) (516) (334) (443) (2,506) (10,286)
Net increase (decrease)
in net assets resulting
from unit transactions 1,341,871 512,799 42,233 2,313,287 200,992 255,500 225,098 1,412,681 2,796,976
Total increase (decrease)
in net assets 1,472,395 538,026 43,203 2,506,208 215,494 264,828 237,438 1,563,216 2,841,282
Net assets:
Beginning of period 0 0 0 0 0 0 0 0 0
End of period $1,472,395 $538,026 $43,203 $2,506,208 $215,494 $264,828 $237,438 $1,563,216 $2,841,282
</TABLE>

*From inception, May 1, 1995, to December 31, 1995

Utilities
Growth Divers-
and ified
Income Income
Fund Fund
Sub- Sub-
Account Account
<S> <C> <C>
Operations:
Net investment
income (loss) $ 543 $ 521
Capital gains income 0 0
Net realized gain (loss)
on security
transactions 516 679
Net unrealized
appreciation
(depreciation) of
investments during
the period 25,411 5,068
Net increase (decrease)
in net assets resulting
from operations 26,470 6,268
Unit transactions:
Purchases 0 0
Net transfers 287,063 112,303
Surrenders (14,542) (12,286)
Loan withdrawals 0 0
Cost of Insurance (654) (204)
Net increase (decrease)
in net assets resulting
from unit transactions 271,867 99,813
Total increase (decrease)
in net assets 298,337 106,081
Net assets:
Beginning of period 0 0
End of period $298,337 $106,081
</TABLE>

*From inception, May 1, 1995, to December 31, 1995

<PAGE>

PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE - ITT HARTFORD LIFE & ANNUITY
INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1995

1. ORGANIZATION:

Putnam Capital Manager Trust Separate Account Five (the Account) is a separate
investment account within ITT Hartford Life & Annuity 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.
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. The account
commenced operations on JanuarAccount invests deposits by Variable annuity
contractholders of the Company in various mutual funds (the Funds) as directed
by the contractholders.

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. Capital gains income represents
dividends from the funds which are characterized as capital gains under tax
regulations.

B) Security Valuation--The investment in shares of the Funds is valued at the
closing net asset value per share as determined by the appropriate Fund as of
December 31, 1995.

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.

D) Use of estimates The preparation of financial statements in conformity with
generally accepted accounting principle requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities as of
the date of the financial statements and the reported amounts of income and
expenses during the period. Operating results in the future could vary from the
amounts derived from management's estimates.

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.

<PAGE>

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Board of Directors of ITT Hartford Life & Annuity Insurance Company:

We have audited the accompanying statutory balance sheets of ITT Hartford
Life and Annuity Insurance Company (a Wisconsin corporation and wholly owned
subsidiary of Hartford Life Insurance Company) (the Company) as of December
31, 1995 and 1994, and the related statutory statements of income, changes in
capital and surplus, and cash flows for each of the three years in the period
ended December 31, 1995. these financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion on
these statutory-basis 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 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.

The Company presents its financial statements in conformity with statutory
accounting practices as described in Note 1 of notes to statutory financial
statements. When statutory financial statements are presented for purposes
other than for filing with a regulatory agency, generally accepted auditing
standards require that an auditors' report on them state whether they are
presented in conformity with generally accepted accounting principles. The
accounting practices used by the Company vary from opinion, because the
differences in accounting practices as described in Note1 are material, the
statutory financial statements referred to above do not present fairly, in
accordance with generally accepted aples, the financial position of the
Company as of December 31, 1995 and 1994, and the results of its operations
and its cash flows for each of the three years in the period ended
December 31, 1995.

However, in our opinion, the statutory financial statements referred to above
present fairly, in all material respects, the financial position of the
Company as of December 31, 1995 and 1994, and the results of its operations
and its cash flows for each of the three years in the period ended December
31, 1995 in conformity with statutory accounting practices as described in
Note 1.

As discussed in Note 1 of notes to statutory financial statements, the
Company changed its valuation method in determining aggregate reserves for
future benefits.

Hartford, Connecticut
January 24, 1996 ARTHUR ANDERSEN LLP

<PAGE>

ITT Hartford Life and Annuity Insurance Company
Statutory Statements of Income

<TABLE>
<CAPTION>
For the year ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Revenues
Premiums and other considerations $165,792 $442,173 $14,281
Annuity and other fund deposits 1,087,661 608,685 1,986,140
Net investment income 78,787 29,012 7,970
Commissions and expense allowances on reinsurance ceded 183,380 154,527 60,700
Reserve adjustment on reinsurance ceded 1,879,785 1,266,926 0
Other revenues 140,796 41,857 369,598
Total Revenues 3,536,201 2,543,180 2,438,689

Benefits and Expenses
Death and annuity benefits 53,029 7,948 3,192
Surrenders and other benefit payments 221,392 181,749 4,955
Commissions and other expenses 236,202 186,303 132,169
Increase in reserves for future benefits 94,253 416,748 5,120
Increase in liability for premium and other deposit funds 460,124 182,934 281,024
Net transfers to separate accounts 2,414,669 1,541,419 2,013,183
Total Benefits and Expenses 3,479,669 2,517,101 2,439,643

Net Gain (Loss) From Operations
Before Federal Income Tax Expense 56,532 26,079 (954)
Federal income tax expense 14,048 24,038 11,270

Net Gain (Loss) From Operations 42,484 2,041 (12,224)
Net realized capital gains (losses) 374 (2) 877
Net Income (Loss) $42,858 $2,039 $(11,347)
</TABLE>

The accompanying Notes are an integral part of these financial statements.

<PAGE>

ITT Hartford Life and Annuity Insurance Company
Statutory Balance Sheets

As of December 31,
1995 1994
Assets
Bonds $1,226,489 $798,501
Common stocks 39,776 2,275
Policy Loans 22,521 20,145
Cash and short-term investments 173,304 84,312
Other invested Assets 13,432 2,519
Total Cash and Invested Assets 1,475,522 907,752

Investment income due and accrued 18,021 12,757
Premium balances receivable 402 467
Receivables from affiliates 8,182 2,861
Other assets 25,907 13,749
Separate account assets 7,324,910 3,588,077
Total Assets $8,852,944 $4,525,663

Liabilities
Aggregate reserves for future benefits $542,082 $447,284
Policy and contract claims 8,223 9,902
Liability for premium and other deposit funds 948,361 479,202
Asset valuation reserve 8,010 2,422
Payable to affiliates 3,682 7,840
Other liabilities (220,658) (100,349)
separate account liabilities 7,324,910 3,588,077
Total Liabilities 8,614,610 4,434,378

Capital and Surplus
Common stock 2,500 2,500
Gross paid-in and contributed surplus 226,043 114,109
Unassigned funds 9,791 (25,324)
Total Capital and Surplus 238,334 91,285

Total Liabilities and Capital and Surplus $8,852,944 $4,525,663

The accompanying Notes are an integral part of these Consolidated Financial
Statements.

<PAGE>

ITT Hartford Life and Annuity Insurance Company
Statutory Statements of Changes in Capital and Surplus

For the years ended December 31,
1995 1994 1993
Capital and Surplus - Beginning of Year $91,285 $88,693 $30,027
Net income (loss) 42,858 2,039 (11,347)
Net unrealized gains (losses) 1,709 (133) (1,198)
Change in asset valuation reserve (5,588) (1,356) 135
Change in non-admitted assets (1,944) (8,599) 1,076
Change in reserve (valuation basis - see Note 1) 0 10,659 0
Aggregate write-ins for surplus (see Note 3) 8,080 (18) 0
Dividends to shareholder (10,000) 0 0
Paid-in surplus 111,934 0 70,000
Change in Capital and Surplus 147,049 2,592 58,666

Capital and surplus - End of Year $238,334 $91,285 $88,693

The accompanying Notes are an integral part of these Consolidated Financial
Statements.

<PAGE>

ITT Hartford Life and Annuity Insurance Company
Statutory Statements of Cash Flows
($000)

<TABLE>
<CAPTION>
For the years ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Operations
Premiums, annuity considerations and fund deposits $1,253,511 $1,050,493 $2,000,492
Investment Income 78,328 24,519 5,594
Other Income 2,253,466 1,515,700 434,851
Total income 3,585,305 2,590,712 2,440,937

Benefits paid 277,965 181,205 8,215
Federal income taxes paid on operations 208,423 20,634 9,666
Other expenses 2,664,385 1,832,905 2,231,477
Total benefits and expenses 3,150,773 2,034,744 2,249,358
Net Cash from Operations 434,532 555,968 191,579

Precedes from Investments
Bonds $287,941 $87,747 $88,334
Common stocks 52 0 0
Other 28 40 23,638
Net Investment Proceeds 288,021 87,787 111,972

Tax on capital Gains 226 (96) 376
Paid-In Surplus 111,934 0 70,000
Other Cash Provided 28,199 30,554 0
Total Proceeds 862,460 674,405 373,175

Cost of Investments Acquired
Bonds 720,521 595,181 314,933
Common stocks 35,794 808 567
Miscellaneous applications 2,146 2,523 0
Net Investment Acquired 758,461 598,512 315,500

Other Cash Applied
Dividends paid to stockholder 10,000 0 0
Other 5,007 24,813 24,626
Total Other Cash Applied 15,007 24,813 24,626
Total Applications 773,468 623,325 340,126

Net Change in Cash and Short-Term Investments 88,992 51,080 33,049

Cash and Short-Term Investments, Beginning of Year 84,312 33,232 183

Cash and Short-Term Investments, End of Year $173,304 $84,312 $33,232
</TABLE>

The accompanying Notes are an integral part of these Consolidated Financial
Statements.

<PAGE>

ITT Hartford Life and Annuity Insurance Company
Notes to Financial Statements
December 31, 1995
(Amounts in thousands unless otherwise stated)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

ITT Hartford Life and Annuity Insurance Company (ILA or the Company), formerly
known as ITT Life Insurance Corporation, is a wholly owned subsidiary of
Hartford Life Insurance Company (HLIC), which is an indirect subsidiary of ITT
Hartford Group, Inc. (ITTHartford), formerly a wholly owned subsidiary of ITT
Corporation (ITT). On December 19, 1995, ITT Corporation distributed all the
outstanding shares of ITT Hartford Group to ITT shareholders of record in an
action known herein as the "Distribution". As a result of the Distribution, ITT
Hartford became an independent, publicly traded company.

ILA offers a complete line of ordinary and universal life insurance, individual
annuities and certain supplemental accident and health benefit coverages.

Basis of Presentation

The accompanying ILA statutory basis financial statements were prepared in
conformity with statutory accounting practices prescribed or permitted by the
National Association of Insurance Commissioners (NAIC) and the Insurance
Department of the State of Wisconsin.

The preparation of financial statements in conformity with statutory accounting
principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reported period. Actual results could differ
from those estimates.

Statutory accounting practices and generally accepted accounting principles
(GAAP) differ in certain significant respects. These differences principally
involve:

(1) treatment of policy acquisition costs (commissions, underwriting and
selling expenses, premium taxes, etc.) which are charged to expense when
incurred for statutory purposes rather than on a pro-rata basis over the
expected life of the policy;

(2) recognition of premium revenues, which for statutory purposes are
generally recorded as collected or when due during the premium paying peract
and which for GAAP purposes, generally, for universal life policies and
investment products, are only recorded for policy charges for the cost of
insurance, policy administration and surrender charges assessed to policy
account balances. Also, for GAAP purposes, premiums for traditional life
insurance policies are recognized as revenues when they are due from
policyholders and the retrospective deposit method is used in accounting for
universal life and other types of contracts where the payment pattern is
irregular or surrender charges are a significant source of profit. The
prospective deposit method is used for GAAP purposes where investment margins
are the primary source of profit;

(3) development of liabilities for future policy benefits, which for
statutory purposes predominantly use interest rate and mortality assumptions
prescribed by the NAIC which may vary considerable from interest and
mortality assumptions used for GAAP financial reporting;

(4) providing for income taxes based on current taxable income (tax
return) only for statutory purposes, rather than establishing additional
assets or liabilities for deferred Federal income taxes to recognize the tax
effect related to reporting revenues and expenses in different periods for
financial reporting and tax return purposes;

(5) excluding certain GAAP assets designated as non-admitted assets
(e.g., past due agent's balances and furniture and equipment) from the
balance sheet for statutory purposes by directly charging surplus;

(6) establishing accruals for post-retirement and post-employment health
care benefits on an optional basis, immediate recognition or a twenty year
phase-in approach, whereas GAAP liabilities were established at date of
adoption;

(7) establishing a formula reserve for realized and unrealized losses due
to default and equity risk associated with certain invested assets (Asset
Valuation Reserve); as well as the deferral and amortization of realized
gains and losses, motivated by changes in interest rates during the period
the asset is held, into income over the remaining life to maturity of the
asset sold (Interest Maintenance Reserve); whereas on a GAAP basis, no such
formula reserve is required and realized gains and losses are recognized in
the period the asset is sold;

(8) the reporting of reserves and benefits net of reinsurance ceded,
where risk transfer has taken place; whereas on a GAAP basis, reserves are
reported gross of reinsurance with reserve credits presented as recoverable
assets;

(9) the reporting of fixed maturities at amortized cost, where GAAP
requires that fixed maturities be classified as "held-to-maturity,"

<PAGE>

"available-for-sale" or "trading," based on the Company's intentions with
respect to the ultimate disposition of the security and its ability to affect
those intentions. The Company's fixed maturities were classified on a GAAP
basis as "available-for-sale" and accordingly, these investments were
reflected at fair value with the corresponding impact included as a component
of Stockholder's Equity designated as "Unrealized Gain/Loss on Investments,
Net of Tax". For statutory reporting purposes, Net Unrealized Loss on
investments represents unrealized gains or losses on common stock and other
bonds reported at fair value; and

(10) separate account liabilities are valued on the Commissioner's
Annuity Reserve Valuation Method (CARVM), with the surplus generated recorded
as a liability to the general account (and a contra liability on the balance
sheet of the general account), whlities are valued at account value.

<PAGE>

As of December 31, 1995, 1994 and 1993, the significant differences between
statutory and GAAP basis net income and capital and surplus for the Company are
summarized as follows:

<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
GAAP net income: $38,821 $23,295 $6,071

Amortization and deferral of policy acquisition costs (174,341) (117,863) (147,700)
Benefit reserve adjustment 31,392 30,912 14,059
Deferred taxes 2,801 (9,267) (7,123)
Separate accounts 146,635 75,941 110,547
Coinsurance 0 3,472 11,578
Other, net (2,450) (4,451) 1,221
Statutory net income (loss) $42,858 $2,039 $(11,347)

GAAP capital and surplus $455,541 $199,785 $198,408

Deferred policy acquisition costs (596,542) (422,201) (304,338)
Benefit reserve adjustment 74,782 85,191 43,621
Deferred taxes 1,493 13,257 13,706
Separate accounts 333,123 186,488 110,547
Asset valuation reserve (8,010) (2,422) (1,066)
Coinsurance 0 0 22,642
Unrealized gain (loss) on bonds (1,696) 21,918 0
Adjustment relating to lyndon contribution (41,277) 0 0
Other, net 20,920 9,269 5,173
Statutory capital and surplus $238,334 $91,285 $88,693
</TABLE>

AGGREGATE RESERVES AND LIABILITIES FOR PREMIUM AND OTHER DEPOSIT FUNDS

Aggregate reserves for payment of future life, health and annuity benefits were
computed in accordance with presently accepted actuarial standards. Reserves for
life insurance policies are generally based on the 1958 and 1980 Commissioner's
Standard Ordinary Mortality Tables at various rates ranging from 2.5% to 6.0%.
Accumulation and on-benefit annuity reserves are based principally on Individual
Annuity tables at various rates ranging from 2.5% to 8.75% and using the
Commissioner's Annuity Reserve Valuation Method (CARVM). Accident and health
reserves are established using a two year preliminary term method and morbidity
tables bases on Company experience.

ILA has established separate accounts to segregate the assets and liabilities of
certain annuity contracts that must be segregated from the Company's general
assets under the terms of the contracts. The assets consist primarily of
marketable securities reported at market value. Premiums, benefits and expenses
of these contracts are marketable securities reported at market value. Premiums,
benefits and expenses of these contracts are reported in the Statutory
Statements of Income.

During 1994, the Company changed the valuation method on aggregate reserves for
future benefits resulting in a $10.7 million increase in surplus. The new
valuation method is in accordance with presently accepted actuarial standards.

INVESTMENTS

Investments in bonds are carried at amortized cost. Bonds which are deemed
ineligible to be held at amortized cost by the National Association of Insurance
Commissioners (NAIC) Securities Valuation Office (SVO) are carried at the
appropriate SVO published value. When a permanent reduction in the value of
publicly traded securities occurs, the decrease is reported as a realized loss
and the carrying value is adjusted accordingly. Common stocks are carried at
market value with the difference from cost reflected in surplus. Other invested
assets are generally recorded at fair value.

Changes in unrealized capital gains and losses on common stock are reported as
additions to or reductions of surplus. The Asset Valuation Reserve is designed
to provide a standardized reserve process for realized and unrealized losses due
to the default and equity risks associated with invested assets. The reserve
increased by $5,588, $1,356 and $135 in 1995, 1994 and 1993, respectively.
Additionally, the Interest Maintenance Reserve (IMR) captures net realized
capital gains and losses, net of applicable income taxes, resulting from changes
in interest rates and amortizes these gains or losses into income over the
remaining life of the mortgage loan or bond sold. Realized capital gains and
losses, net of taxes, not included in IMR are reported in the Statutory
Statements of Income. Realized investment gains and losses are determined on a
specific identification basis. The amount of net capital gains reclassified from
the IMR was $39 in 1995 and the

<PAGE>

amount of net capital losses was $67 and $264 in 1994 and 1993, respectively.
The amount of income amortized was $256, $114 and $178 in 1995, 1994 and
1993, respectively.

OTHER LIABILITIES

The amount reflected in other liabilities includes a receivable from the
separate accounts of $333.1, $186.5 million in 1995 and 1994, respectively. The
balances are classified in accordance with NAIC accounting practices.

<PAGE>

2. Investments

(a) Components of Net Investment Income

<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Interest income from fixed maturity securities $76,100 $28,335 $7,541
Interest income from policy loans 1,504 454 124
Interest and dividends from other investments 2,288 1,069 481
Gross investment income 79,892 29,858 8,146
Less: investment expenses 1,105 846 176
Net Investment Income $78,787 $29,012 $7,970
</TABLE>

(b) Unrealized Gains/(Losses) on Common Stocks

<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Gross unrealized gains at end of year $1,724 $75 $148
Gross unrealized losses at end of year 0 (60) 0
Net unrealized gains 1,724 15 148
Balance at beginning of year 15 148 93
Change in net unrealized gains (losses) on equity securities $1,709 $(133) $55
</TABLE>

<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Gross unrealized gains at end of year $22,251 $986 $5,916
Gross unrealized losses at end of year (1,374) (34,718) (684)
Net unrealized gains (losses) after tax 20,877 (33,732) 5,232
Balance at the beginning of the year (33,732) 5,232 2,287
Change in net unrealized gains (losses) on
bonds and short-term investments $54,609 $(38,964) $2,945
</TABLE>

(d) Components of Net Realized Capital Gains (Losses)

<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Bonds and short term investments $156 $(101) $(316)
Common stocks 52 0 0
Real estate and other 0 34 1,316
Realized gains (losses) 208 (67) 1,000
Capital gains (benefit) taxes (205) 2 386
Net realized capital gains (losses) after tax 413 (69) 614
Less: IMR capital gains (losses) 39 (67) (263)
Net realized (losses) gains $374 $(2) $877
</TABLE>

(e) Off-Balance Sheet Investments The Company had no significant financial
instruments with off-balance sheet risk as of December 31, 1995 and 1994.

(f) Concentration of Credit Risk Excluding U.S. government and government
agency investments, the Company is not exposed to any significant concentration
of credit risk.

<PAGE>

(g) Bonds, Short-term and Common Stock Investments

<TABLE>
<CAPTION>
1995
Amortized Gross Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
U.S. Government and government agencies and authorities:
Guaranteed and sponsored $44,268 $14 ($248) $44,034
Guaranteed and sponsored-asset backed 176,160 4,644 (682) 180,122
State, municipalities and political subdivisions 16,948 38 (6) 16,980
International governments 5,402 441 0 5,843
Public utilities 108,083 1,652 (90) 109,645
All other corporate 374,058 8,145 (248) 381,955
All other corporate-asset backed 410,197 5,841 (89) 415,949
Short-term investments 139,011 18 0 139,029
Certificates of deposit 91,373 1,458 (11) 92,820
Total $1,365,500 $22,251 ($1,374) $1,386,377

<CAPTION>
1995
Amortized Gross Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
Common stock-unaffiliated $2,668 $555 $0 $3,223
Common stock-affiliated 35,384 1,169 0 36,553
Total Common Stock $38,052 $1,724 $0 $39,776

<CAPTION>
1994
Amortized Gross Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
U.S. Government and government agencies and authorities:
Guaranteed and sponsored $175,925 $0 ($12,059) $163,866
Guaranteed and sponsored-asset backed 142,318 382 (4,911) 137,789
State, municipalities and political subdivisions 10,409 0 (603) 9,806
International governments 2,248 0 (69) 2,179
Public utilities 29,509 31 (1,271) 28,269
All other corporate 257,301 246 (9,452) 248,095
All other corporate-asset backed 112,390 327 (4,066) 108,651
Short-term investments 56,365 0 0 56,365
Certificates of deposit 68,401 0 (2,287) 66,114
Total $854,866 $986 ($34,718) $821,134

<CAPTION>
1994
Amortized Gross Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
Common stock-unaffiliated $2,260 $75 ($60) $2,275
</TABLE>

The amortized cost and estimated market value of bonds and short-term
investments at December 31, 1995 by management's anticipated maturity are shown
below. asset backed securities are distributed to maturity year bases on ILA'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.

<PAGE>

Estimated
Amortized Fair
Cost Value
Maturity
Due in one year or less $ 439,793 $ 442,327
Due after one year through five years 840,088 855,741
Due after five years through ten years 80,820 83,432
Due after ten years 4,799 4,877
Total $1,365,500 $1,386,377

Proceeds from sales of investments in bonds and short-term investments during
1995, 1994 and 1993 were $313,961, $117,912 and $333,023, respectively,
resulting in gross realized gains of $1,419, $518 and $937, respectively, and
gross realized losses of $1,263, $624 and $1,255, respectively, before
transfers to IMR. The Company had realized gains of $52 during 1995 from a
capital gain distribution.

(h) Fair Value of Financial Instruments
Balance sheet items: (in millions)

1995 1994
Carrying Fair Carrying Fair
Amount Value Amount Value
Assets
Fixed maturities $1,366 $1,386 $855 $821
Common stocks 40 40 2 2
Policy loans 23 23 20 20
Miscellaneous 13 13 2 2

Liabilities
Liabilities on investment contracts $1,031 $981 $534 $526

The carrying amounts for policy loans approximates fair value. The liabilities
are determined by forecasting future cash flows discounted at current market
rates.

3. Related Party Transactions: Transactions between the Company and its
affiliates within ITT Hartford relate principally to tax settlements,
reinsurance, service fees, capital contributions and payments of dividends.

On June 30, 1995, the assets of Lyndon Insurance Company were contributed to
ILA. As a result, ILA received approximately $365 million in fixed maturities,
equity securities and cash, $28 million in policy reserves, $187 million of
current tax liability, $26 million in IMR, $8 million in AVR (offset by an
aggregate write-in to surplus), and $4 million of other liabilities. The assets
in excess of liabilities of $112 were recorded as an increase to paid-in
surplus.

For additional information, see Note 5.

4. Federal Income Taxes: The Company is included in the consolidated Federal
income tax return of ITT Hartford and its includable subsidiaries. Allocation
of taxes is based primarily upon separate company tax return calculations with
current credit for net losses used in consolidation except that increases
resulting from consolidation are allocated in proportion to seounts.
Intercompany Federal income tax balances are generally settled quarterly with
Hartford Fire Insurance Company (Hartford Fire), a subsidiary of ITT Hartford.
Federal income taxes paid by the Company were $215,921, $20,538, and $10,042 in
1995, 1994 and 1993, respectively. The effective tax rate was 25%, 92%, and
1,181% in 1995, 1994, and 1993, respectively. The following schedule provides a
reconciliation of the effective tax rate (in millions).

1995 1994 1993
Tax provision (benefit) at US statutory rate 20 9 (1)
Tax acquisition deferred costs 8 8 10
Statutory to tax reserves 3 5 0
Investments and other (17) 2 2
Federal income tax expense 14 24 1

5. Capital and Surplus and Shareholder Dividend Restrictions: The maximum
amount of dividends which can be paid, without prior

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approval, by State of Wisconsin insurance companies to shareholders is
subject to restrictions relating to statutory surplus. Dividends are paid as
determined by the Board of Directors and are not cumulative. ILA paid
dividends of $10 million to its parent, HLIC, in 1995. No dividends were paid
in 1994 and 1993. As a result of the distribution by ITT, the assets of ITT
Lyndon Insurance Company (Lyndon) were contributed to ILA in June 1995.
Substantially all the business was removed from Lyndon prior to the
contribution. The amount of assets which exceeded liabilities at the
contribution date ($112 million) was included in paid-in capital.

6. Pension Plans and Other Post-Retirement and Post-Employments Benefits: The
Company's employees are included in ITT Hartford's non-contributory 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 HLIC's group pension contracts. Pension expense was $1,034, $1,211,
and $765 in 1995, 1994 and 1993, respectively. Liabilities for the plan are held
by Hartford Fire.

The Company also participates in ITT Hartford's Investment and Savings Plan,
which includes a deferred compensation option under IRC section 401(k) and an
ESOP allocation under IRC section 404(k). The liabilities for these plans are
included in the financial statemenire. The cost to ILA was not material in 1995,
1994 and 1993.

The Company's employees are included in Hartford Fire's contributory defined
health care and life insurance benefit plans. These plans provide health care
and life insurance benefits for retired employees. Substantially all employees
may become eligible for those benefits if they reach normal or early retirement
age while still working for the Company. 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. Amounts allocated by
Hartford Fire for post-retirement health care and life insurance benefits
expense (not including provisions for accrual of post-retirement benefit
obligations) are immaterial.

The assumed rate of future increases in the per capita cost of health care (the
health care trend rate) was 10.1% for 1995, 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 post-retirement benefit obligation and
the annual expense. The cost to ILA was not material in 1995, 1994 and 1993.

Post-employment benefits are primarily comprised of obligations to provide
medical and life insurance to employees on long term disability. Post-employment
benefit expense was not material in 1995, 1994 and 1993.

7. Reinsurance: The Company cedes insurance to non-affiliated insurers in order
to limit its maximum loss. Such transfer does not relieve ILA of its primary
liability. ILA also assumes insurance from other insurers.

Life insurance net retained premiums were comprised of the following:

For the years ended December 31
1995 1994 1993
Direct premiums 159,918 133,180 131,586
Premiums assumed 13,299 960 841
Premiums ceded 7,425 (308,033) 118,146
Premiums and annuity considerations 165,792 442,173 14,281

In December 1994, the Company ceded to a third party, on a modified coinsurance
basis, 80% of the variable annuity business writt ceded business includes both
general and separate account liabilities. As a result of the agreement ILA
transferred approximately $1,352 million in assets and liabilities. The
financial impact of the cession was an increase of approximately $15 million to
net income and surplus.

In November 1994, the Company ceded, on a modified coinsurance basis, 30% of the
separate account variable annuity business distributed by Paine Webber to Paine
Webber Life Insurance Company (PWLIC). As a result of the agreement, ILA
transferred approximately $24 million in assets and liabilities to PWLIC. The
financial impact of the cession was an increase of approximately $765 to net
income and surplus.

In October 1994, the agreement, effective December 1990, which required ILA to
coinsure 90% of all existing and new business, excluding variable annuity
business, written by the Company to HLIC, was terminated. As a result of the
termination, ILA received approximately $430 million in assets and liabilities
from HLIC. The impact of the transaction was a decrease of approximately $15
million to net income and surplus.

In November 1993, ILA acquired, through an assumption reinsurance transaction,
substantially all of the individual fixed and variable annuity business of
Hartford Life and Accident, an affiliate. As a result of this transaction, the
assets and liabilities of the Company increased approximately $1 billion,
substantially all of which was transferred to the separate accounts of the
Company. The remaining

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assets and liabilities (approximately $41 million) were transferred in
October 1995. The impact of these transactions on net income and surplus was
not significant.

8. Separate Accounts: The Company maintains separate account assets and
liabilities totaling $7.3 billion and $3.6 billion at December 31, 1995 and
1994, respectively. Separate account assets are reported at fair value and
separate account liabilities are determined in accordance with the Commissioners
Annuity Reserve Valuation Meich approximates the market value less applicable
surrender charges. Separate account assets are segregated from other
investments, the policyholder assumes the investment risk, and the investment
income and gains and losses accrue directly to the policyholder. Separate
account management fees, net of minimum guarantees, were $72 million, $42
million, and $6 million in 1995, 1994, and 1993, respectively.

9. Commitments and Contingencies: As of December 31, 1995, the Company had no
material contingent liabilities, nor had the Company committed any surplus funds
for any contingent liabilities or arrangements. The Company is involved in
various legal actions which have arisen in the course normal of its business.
In the opinion of management, the ultimate liability with respect to such
lawsuits as well as other contingencies is not considered to be material in
relation to the results of operations and financial position of the Company.

Under insurance guaranty 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 ILA under these
laws cannot be reasonably estimated. Most of the 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. ILA paid guaranty
fund assessments of $1,684, $583, and $495 in 1995, 1994, and 1993,
respectively.