<PAGE>
HARTFORD LIFE INSURANCE COMPANY -
PUTNAM HARTFORD INHERITANCE MANAGER VARIABLE LIFE
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE POLICIES
P. O. Box 2999
Hartford, CT 06104-2999
Telephone (800) 231-5453
- --------------------------------------------------------------------------------
This Prospectus describes Putnam Hartford Inheritance Manager Variable Life, a
modified single premium variable life insurance policy ("Policy" or "Policies")
offered by Hartford Life Insurance Company ("Hartford") to applicants age 90 and
under. The Policy lets the Policy Owner pay a single premium and, subject to
restrictions, additional premiums.
The Policy is a modified endowment contract for federal income tax purposes,
except in certain cases described under "Federal Tax Considerations," page 25. 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 POLICY. ANY SURRENDER AMOUNTS THAT ARE TAXABLE WILL BE SUBJECT TO
A 10% ADDITIONAL TAX, WITH CERTAIN EXCEPTIONS.
Generally, the minimum initial premium Hartford will accept is $10,000. The
initial premium will be allocated to the Putnam Money Market Sub-Account. After
the right to cancel period has expired, the amounts allocated will be
transferred to the Funds specified in the Policy Owner's application. The
underlying investment options ("Funds") of Putnam Variable Trust currently
available under the Policy are:
<TABLE>
<S> <C> <C>
Putnam Asia Pacific Growth Sub-Account - shares of Class IA of the Putnam VT Asia Pacific Growth
Fund of the Putnam Variable Trust
Putnam Diversified Income Sub-Account - shares of Class IA of the Putnam VT Diversified Income
Fund Bond Fund of the Putnam Variable Trust (a bond
fund)
The George Putnam Fund Sub-Account - shares of Class IA of the Putnam VT The George Putnam
Fund of Boston of the Putnam Variable Trust
Putnam Global Asset Allocation Sub-Account - shares of Class IA of the Putnam VT Global Asset
Allocation Fund of the Putnam Variable Trust
Putnam Global Growth Sub-Account - shares of Class IA of the Putnam VT Global Growth Fund
of the Putnam Variable Trust
Putnam Growth and Income Sub-Account - shares of Class IA of the Putnam VT Growth and Income
Fund of the Putnam Variable Trust
Putnam Health Sciences Sub-Account - shares of Class IA of the Putnam VT Health Sciences
Fund of the Putnam Variable Trust
Putnam High Yield Sub-Account - shares of Class IA of the Putnam VT High Yield Fund of
the Putnam Variable Trust
Putnam International Growth Sub-Account - shares of Class IA of the Putnam VT International
Growth Fund of the Putnam Variable Trust
Putnam International Growth and Income - shares of Class IA of the Putnam VT International
Sub-Account Growth and Income Fund of the Putnam Variable Trust
Putnam International New Opportunities - shares of Class IA of the Putnam VT International New
Sub-Account Opportunities Fund of the Putnam Variable Trust (an
international fund)
Putnam Investors Sub-Account - shares of Class IA of the Putnam VT Investors Fund of
the Putnam Variable Trust
Putnam Money Market Sub-Account - shares of Class IA of the Putnam VT Money Market Fund
of the Putnam Variable Trust
Putnam New Opportunities Sub-Account - shares of Class IA of the Putnam VT New Opportunities
Fund of the Putnam Variable Trust (a capital
appreciation fund)
Putnam New Value Sub-Account - shares of Class IA of the Putnam VT New Value Fund of
the Putnam Variable Trust
Putnam OTC & Emerging Growth Sub-Account - shares of Class IA of the Putnam VT OTC & Emerging
Growth Fund of the Putnam Variable Trust
Putnam Research Sub-Account - shares of Class IA of the Putnam VT Research Fund of
the Putnam Variable Trust
Putnam U.S. Government and High Quality Bond - shares of Class IA of the Putnam VT U. S. Government
Sub-Account and High Quality Bond Fund of the Putnam Variable Trust
Putnam Utilities Growth & Income Sub-Account - shares of Class IA of the Putnam VT Utilities Growth
and Income Fund of the Putnam Variable Trust
Putnam Vista Sub-Account - shares of Class IA of the Putnam VT Vista Fund of the
Putnam Variable Trust (a capital appreciation fund)
Putnam Voyager Sub-Account - shares of Class IA of the Putnam VT Voyager Fund of the
Putnam Variable Trust (a capital appreciation fund)
</TABLE>
1 - PROSPECTUS
<PAGE>
There is no guaranteed minimum Account Value for a Policy. The Account Value of
a Policy will vary up or down to reflect the investment experience of the Funds
to which premiums have been allocated. The Policy Owner bears the investment
risk for all amounts allocated to the Funds. The Policy continues in effect as
along as the Cash Surrender Value is sufficient to pay the monthly charges under
the Policy ("Deduction Amount"). The Policy 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 received by Hartford.
The Policies provide for a Face Amount, which is the minimum death benefit under
a Policy. The Death Benefit may be greater than the Face Amount. The Account
Value will, and under certain circumstances the Death Benefit of the Policy may,
increase or decrease based on the investment experience of the Funds to which
premiums have been allocated. However, while the Policy is in force, the Death
Benefit will never be less than the Face Amount. At the death of the Insured,
Hartford will pay the Death Proceeds to the beneficiary. The Death Proceeds
equal the Death Benefit less any Indebtedness under the Policy.
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
POLICY.
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.
THIS PROSPECTUS AND OTHER INFORMATION ABOUT THE SEPARATE ACCOUNT REQUIRED TO BE
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CAN BE FOUND AT THE
COMMISSION'S WEB SITE (HTTP://WWW.SEC.GOV).
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, 1998, revised as of January 20, 1999.
2 - PROSPECTUS
<PAGE>
TABLE OF CONTENTS
-------------------------------------------------------------------
<TABLE>
<CAPTION>
Page
----------------------------------------------------------------------------
<S> <C>
Special Terms 4
----------------------------------------------------------------------------
Summary 6
----------------------------------------------------------------------------
The Company 8
----------------------------------------------------------------------------
The Separate Account 8
----------------------------------------------------------------------------
General 8
----------------------------------------------------------------------------
Funds 8
----------------------------------------------------------------------------
Investment Adviser 10
----------------------------------------------------------------------------
The Policy 11
----------------------------------------------------------------------------
Application for a Policy 11
----------------------------------------------------------------------------
Premiums 11
----------------------------------------------------------------------------
Allocation of Premiums 11
----------------------------------------------------------------------------
Accumulation Unit Values 11
----------------------------------------------------------------------------
Deductions and Charges 12
----------------------------------------------------------------------------
Chart of Deductions and Charges 12
----------------------------------------------------------------------------
Cost of Insurance Charge 12
----------------------------------------------------------------------------
Administrative Charge 13
----------------------------------------------------------------------------
Annual Maintenance Fee 13
----------------------------------------------------------------------------
Surrender Charge 13
----------------------------------------------------------------------------
Policy Owner Options 13
----------------------------------------------------------------------------
Option 1 14
----------------------------------------------------------------------------
Option 2 14
----------------------------------------------------------------------------
Other Deductions or Charges 15
----------------------------------------------------------------------------
Policy Benefits and Rights 15
----------------------------------------------------------------------------
Death Benefit 15
----------------------------------------------------------------------------
Account Value 15
----------------------------------------------------------------------------
Transfer of Account Value 15
----------------------------------------------------------------------------
Policy Loans 16
----------------------------------------------------------------------------
Amount Payable on Surrender of the Policy 17
----------------------------------------------------------------------------
Partial Surrenders 17
----------------------------------------------------------------------------
Benefits at Maturity 17
----------------------------------------------------------------------------
Lapse and Reinstatement 17
----------------------------------------------------------------------------
Cancellation and Exchange Rights 17
----------------------------------------------------------------------------
Suspension of Valuation, Payments and Transfers 18
----------------------------------------------------------------------------
Last Survivor Policies 18
----------------------------------------------------------------------------
Other Matters 18
----------------------------------------------------------------------------
Voting Rights 18
----------------------------------------------------------------------------
<CAPTION>
Page
<S> <C>
----------------------------------------------------------------------------
Statements to Policy Owners 19
----------------------------------------------------------------------------
Limit on Right to Contest 19
----------------------------------------------------------------------------
Misstatement as to Age and Sex 19
----------------------------------------------------------------------------
Settlement Provisions 19
----------------------------------------------------------------------------
Beneficiary 20
----------------------------------------------------------------------------
Assignment 20
----------------------------------------------------------------------------
Dividends 20
----------------------------------------------------------------------------
Executive Officers and Directors 21
----------------------------------------------------------------------------
Distribution of the Policies 25
----------------------------------------------------------------------------
Safekeeping of the Separate Account's Assets 25
----------------------------------------------------------------------------
Federal Tax Considerations 25
----------------------------------------------------------------------------
General 25
----------------------------------------------------------------------------
Taxation of Hartford and the Separate Account 26
----------------------------------------------------------------------------
Income Taxation of Policy Benefits 26
----------------------------------------------------------------------------
Last Survivor Policies 26
----------------------------------------------------------------------------
Modified Endowment Contracts 26
----------------------------------------------------------------------------
Estate and Generation Skipping Taxes 27
----------------------------------------------------------------------------
Diversification Requirements 27
----------------------------------------------------------------------------
Ownership of the Assets in the Separate Account 27
----------------------------------------------------------------------------
Life Insurance Purchased for Use in Split Dollar Arrangements 28
----------------------------------------------------------------------------
Federal Income Tax Withholding 28
----------------------------------------------------------------------------
Non-Individual Ownership of Policies 28
----------------------------------------------------------------------------
Other 28
----------------------------------------------------------------------------
Life Insurance Purchases by Nonresident Aliens and Foreign
Corporations 28
----------------------------------------------------------------------------
Legal Proceedings 28
----------------------------------------------------------------------------
Legal Matters 28
----------------------------------------------------------------------------
Year 2000 29
----------------------------------------------------------------------------
Experts 29
----------------------------------------------------------------------------
Registration Statement 30
----------------------------------------------------------------------------
Appendix A - Special Information for Policies Purchased in New York 31
----------------------------------------------------------------------------
Appendix B - Illustration of Benefits 32
----------------------------------------------------------------------------
</TABLE>
The Policies and/or Policy Owner Option 2 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.
3 - PROSPECTUS
<PAGE>
SPECIAL TERMS
-------------------------------------------------------------------
As used in this Prospectus, the following terms have the indicated meanings:
ACCOUNT VALUE: The current value of the Sub-Accounts plus the value of the Loan
Account under the Policy.
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 surrender that is
not subject to the Surrender Charge. This amount in any Policy Year is the
greater of 10% of premiums or 100% of cumulative earnings (Account Value less
premiums paid).
ANNUITY UNIT: An accounting unit of measure used to calculate the amount of
annuity payments.
ATTAINED AGE: The Issue Age plus the number of fully completed Policy Years.
CASH SURRENDER VALUE: The Cash Value less all Indebtedness.
CASH VALUE: The Account Value less any Surrender Charge and any Unamortized Tax
charge due upon surrender.
CODE: The Internal Revenue Code of 1986, as amended.
COVERAGE AMOUNT: The Death Benefit less the Account Value.
DEATH BENEFIT: The greater of (1) the Face Amount specified in the Policy or (2)
the Account Value on the date of death multiplied by a stated percentage as
specified in the Policy.
DEATH PROCEEDS: The amount that Hartford will pay on the death of the Insured.
This equals the Death Benefit less any Indebtedness.
DEDUCTION AMOUNT: A deduction on the Policy Date and on each Monthly Activity
Date for the cost of insurance, Tax Expense charges under Option 1, an
administrative charge and a mortality and expense risk charge.
FACE AMOUNT: On the Policy Date, the Face Amount is the amount shown on the
Policy's Specifications page. Thereafter, the Face Amount is reduced in
proportion to any partial surrenders.
FUNDS: The registered management investment companies in which assets of the
Separate Account may be invested.
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 Hartford by the Policy Owner, including all
outstanding loans on the Policy, any interest due or accrued and any unpaid
Deduction Amount or annual maintenance fee arising during a grace period.
INSURED: The person on whose life the Policy is issued.
ISSUE AGE: As of the Policy Date, the Insured's age on Insured's last birthday.
LOAN ACCOUNT: An account in 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 that is not based on the investment experience
of the Separate Account.
MONTHLY ACTIVITY DATE: The day of each month on which any deductions or charges
are subtracted from the Account Value of the Policy. Monthly Activity Dates
occur on the same day of the month as the Policy Date.
POLICY: For a Policy issued to an individual, the Policy is the individual
Policy and any endorsements or riders. For a group Policy, the Policy is a
certificate evidencing a participatory interest in a group Policy and any
endorsements or riders. Any references in this Prospectus to a Policy includes
the certificate.
POLICY ANNIVERSARY: The anniversary of the Policy Date.
POLICY DATE: The date from which Policy Anniversaries and Policy Years are
measured.
POLICY LOAN RATE: The interest rate charged on Policy loans.
POLICY OWNER: The owner of the Policy
POLICY OWNER OPTIONS: The Policy Owner may elect one of two options offered by
Hartford to pay Mortality and Expense Risk charges and certain tax related
charges. The Policy Owner must elect the option at the time the Policy is issued
and the option cannot be changed once the Policy is issued. The following
options are available:
OPTION 1: ASSET BASED CHARGES: Under this option the Policy Owner elects to
pay a Mortality and Expense Risk charge that is deducted monthly from Account
Value at an annual rate of .90% in Policy Years 1 through 10 and at an annual
rate of .50% in Policy Years 11 and beyond; a Tax Expense charge that is also
deducted monthly at an annual rate of .40% for the first 10 Policy Years and
an Unamortized Tax charge that is imposed during the first 9 Policy Years on
surrenders or partial surrenders according to the rate set forth in
"Deductions and Charges - Policy Owner Options - Unamortized Tax Charge" page
14. See "Deductions and Charges - Policy Owner Options," page 13.
OPTION 2: FRONTED CHARGES: Under this option the Policy Owner elects to pay a
Mortality and Expense Risk charge that is deducted monthly from Account Value
at an annual rate of .65% in Policy Years 1 through 10 and an annual rate of
.50% in Policy Years 11 and beyond and a Tax Expense charge that is deducted
from any Premium payment in all Policy Years at an annual rate of 4.0%.
4 - PROSPECTUS
<PAGE>
This option is not available in all states. See "Deductions and Charges -
Policy Owner Options," page 13.
POLICY YEAR: The twelve months between Policy Anniversaries.
SEPARATE ACCOUNT: Separate Account Five, an account established by Hartford to
separate the assets funding the Policies from other assets of Hartford.
SUB-ACCOUNT: The subdivisions of the Separate Account.
SURRENDER CHARGE: A charge which may be assessed upon surrender of the Policy or
partial surrenders in excess of the Annual Withdrawal Amount.
VALUATION DAY: The date on which the Sub-Account is valued. The Valuation Day is
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
(generally 4:00 p.m. Eastern Time) on such days.
VALUATION PERIOD: The period between the close of business on successive
Valuation Days.
5 - PROSPECTUS
<PAGE>
SUMMARY
-------------------------------------------------------------------
THE POLICIES
The Policies are life insurance policies with death benefits, cash values, and
other traditional life insurance features. The Policies 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 premium payments have been allocated. The Policies are
credited with units ("Accumulation Units") to calculate Account Values. The
Policy Owner may transfer the Account Values among the Funds.
The Policies can be issued on a single life or "last survivor" basis. For a
discussion of how last survivor Policies operate differently from single life
Policies, see "Last Survivor Policies," page 18.
THE SEPARATE ACCOUNT AND
THE FUNDS
Separate Account Five ("Separate Account") funds the variable life insurance
Policies offered by this Prospectus. 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 Policies currently
offer 21 sub-accounts ("Sub-Accounts"), each investing exclusively in a Fund.
The investment objectives of the Funds are as set forth in "The Separate
Account," page 8. Applicants should read the Funds' prospectus accompanying this
Prospectus in connection with the purchase of a Policy.
The following table shows annual fund operating expenses for 1997:
ANNUAL FUND OPERATING EXPENSES
(as a percentage of net assets)
<TABLE>
<CAPTION>
Management
Fees Other Expenses
(absent (absent any Total Fund
any fee expense Operating
waivers) reimbursements) Expenses(1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Putnam VT Asia Pacific Growth Fund 0.800% 0.270% 1.070%
- ----------------------------------------------------------------------------------
Putnam VT Diversified Income Fund 0.690% 0.110% 0.800%
- ----------------------------------------------------------------------------------
Putnam VT The George Putnam Fund of
Boston (2) 0.650% 0.360% 1.010%
- ----------------------------------------------------------------------------------
Putnam VT Global Asset Allocation Fund 0.660% 0.110% 0.770%
- ----------------------------------------------------------------------------------
Putnam VT Global Growth Fund 0.600% 0.150% 0.750%
- ----------------------------------------------------------------------------------
Putnam VT Growth and Income Fund 0.490% 0.040% 0.530%
- ----------------------------------------------------------------------------------
Putnam VT Health Sciences Fund (2) 0.700% 0.340% 1.040%
- ----------------------------------------------------------------------------------
Putnam VT High Yield Fund 0.660% 0.060% 0.720%
- ----------------------------------------------------------------------------------
<CAPTION>
Management
Fees Other Expenses
(absent (absent any Total Fund
any fee expense Operating
waivers) reimbursements) Expenses(1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Putnam VT International Growth Fund (2) 0.800% 0.470% 1.270%
- ----------------------------------------------------------------------------------
Putnam VT International Growth and
Income Fund 0.800% 0.320% 1.120%
- ----------------------------------------------------------------------------------
Putnam VT International New
Opportunities Fund (2) 1.200% 0.680% 1.890%
- ----------------------------------------------------------------------------------
Putnam VT Investors Fund (2) 0.650% 0.330% 0.980%
- ----------------------------------------------------------------------------------
Putnam VT Money Market Fund 0.450% 0.090% 0.540%
- ----------------------------------------------------------------------------------
Putnam VT New Opportunities Fund 0.580% 0.050% 0.630%
- ----------------------------------------------------------------------------------
Putnam VT New Value Fund 0.700% 0.150% 0.850%
- ----------------------------------------------------------------------------------
Putnam VT OTC & Emerging Growth Fund (2) 0.700% 0.340% 1.040%
- ----------------------------------------------------------------------------------
Putnam VT Research Fund (2) 0.650% 0.480% 1.130%
- ----------------------------------------------------------------------------------
Putnam VT U.S. Government and High
Quality Bond Fund 0.610% 0.080% 0.690%
- ----------------------------------------------------------------------------------
Putnam VT Utilities Growth and Income
Fund 0.670% 0.070% 0.740%
- ----------------------------------------------------------------------------------
Putnam VT Vista Fund 0.650% 0.220% 0.870%
- ----------------------------------------------------------------------------------
Putnam VT Voyager Fund 0.540% 0.050% 0.590%
- ----------------------------------------------------------------------------------
</TABLE>
(1) "Management Fees" generally represent the fees paid to the investment
adviser or its affiliate for investment and administrative services
provided. "Other Expenses" are expenses (other than "Management Fees") which
are deducted from the fund including legal, accounting and custodian fees.
For a complete description of the nature of the services provided in
consideration of the operating expenses deducted, please see the Fund
prospectuses.
(2) The "Management Fees" and "Other Expenses" shown in the table above do not
reflect an expense limitation. After an expense limitation, "Management
Fees," "Other Expenses" and "Total Fund Operating Expenses" would have been:
<TABLE>
<CAPTION>
Total Fund
Management Operating
Fees Other Expenses Expenses
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Putnam VT The George Putnam Fund of
Boston* 0.49% 0.36% 0.85%
- ----------------------------------------------------------------------------------
Putnam VT Health Sciences Fund* 0.56% 0.34% 0.90%
- ----------------------------------------------------------------------------------
Putnam VT International Growth Fund 0.73% 0.47% 1.20%
- ----------------------------------------------------------------------------------
Putnam VT International New
Opportunities Fund 0.92% 0.68% 1.60%
- ----------------------------------------------------------------------------------
Putnam VT Investors Fund* 0.52% 0.33% 0.85%
- ----------------------------------------------------------------------------------
Putnam VT OTC & Emerging Growth Fund* 0.56% 0.34% 0.90%
- ----------------------------------------------------------------------------------
Putnam VT Research Fund* 0.37% 0.48% 0.85%
- ----------------------------------------------------------------------------------
</TABLE>
* Estimated "Management Fees," "Other Expenses," and "Total Fund Operating
Expenses."
The investment adviser for all the Funds is Putnam Management. See "The Separate
Account," page 8.
6 - PROSPECTUS
<PAGE>
PREMIUMS
The Policy permits the Policy Owner to pay a large single premium and, subject
to restrictions, additional premiums. The Policy 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 may be eligible for simplified
underwriting without a medical examination if they meet simplified underwriting
standards. For applicants who are below age 35 or above age 80, or who do not
meet simplified underwriting eligibility, full underwriting applies, except that
substandard underwriting applies in those cases that represent substandard risks
according to customary underwriting guidelines.
DEDUCTIONS AND CHARGES
On the Policy Date and on each Monthly Activity Date, Hartford will deduct a
Deduction Amount from the Account Value. The Deduction Amount will be made pro
rata from each Sub-Account. The Deduction Amount includes a cost of insurance
charge, a Tax Expense charge under Option 1, an administrative charge and a
mortality and expense risk charge. If the Cash Surrender Value is not sufficient
to cover a Deduction Amount due on any Monthly Activity Date the Policy may
lapse. See "Deductions and Charges," page 12, and "Policy Benefits and Rights -
Lapse and Reinstatement," page 17.
If the Account Value on a Policy Anniversary or on any date the Policy is
surrendered is less than $50,000, Hartford will deduct an annual maintenance fee
of $30. See "Deductions and Charges - Annual Maintenance Fee," page 13.
The Policy Owner may pay certain deductions and charges by electing one of two
available options at the time the Policy is issued. Once elected, the Policy
Owner Options cannot be changed:
Under Option 1:
- a Mortality and Expense Risk charge is deducted monthly from Account Value
at an annual rate of .90% in Policy Years I through 10 and at an annual
rate of .50% in Policy Years 11 and beyond.
- a Tax Expense charge is also deducted monthly at an annual rate of .40%
for the first 10 Policy Years.
- an Unamortized Tax charge is imposed during the first 9 Policy Years on
surrenders or partial surrenders according to the rate set forth in
"Deductions and Charges
- Policy Owner Options - Unamortized Tax Charge," page 14.
Under Option 2: (May not be available in all states)
- a Mortality and Expense Risk charge is deducted monthly from Account Value
at an annual rate of .65% in Policy Years 1 through 10 and an annual rate
of .50% in Policy Years 11 and beyond.
- a Tax Expense charge is deducted from any Premium payment in all Policy
Years at an annual rate of 4.0%.
Hartford may set up a provision for income taxes against the assets of the
Separate Account. See "Deductions and Charges - Taxes Charged Against the
Separate Account," page 15, and "Federal Tax Considerations," page 25.
Applicants should review the Funds' prospectuses accompanying this Prospectus
for a description of the charges assessed against the assets of the Funds.
Upon surrender of the Policy and partial surrenders in excess of the Annual
Withdrawal Amount, a Surrender Charge may be assessed. See "Deductions and
Charges - Surrender Charge," page 13.
For a discussion of the tax consequences of surrender of the Policy or a partial
surrender, see "Federal Tax Considerations," page 25.
DEATH BENEFIT
The Policies provide for a Face Amount which is the minimum Death Benefit under
the Policy. The Death Benefit may be greater than the Face Amount. At the death
of the Insured, Hartford will pay the Death Proceeds to the beneficiary of the
Policy. See "Policy Benefits and Rights - Death Benefit," page 15.
ACCOUNT VALUE
The Account Value of the Policy will increase or decrease to reflect the
investment experience of the Funds applicable to the Policy and deductions for
the monthly Deduction Amount. There is no minimum guaranteed Account Value and
the Policy Owner bears the risk of the investment in the Funds. See "Policy
Benefits and Rights - Account Value," page 15.
POLICY LOANS
A Policy Owner may obtain one or both types of cash loans from Hartford. Both
types of loans are secured by the Policy. 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 Cash Value. See "Policy Benefits and Rights - Policy Loans,"
page 16.
LAPSE
A Policy may terminate if the Cash Surrender Value on any Monthly Activity Date
is less than the required Deduction Amount. Hartford will give written notice to
the Policy Owner and a 61-day grace period during which additional amounts
7 - PROSPECTUS
<PAGE>
may be paid to continue the Policy. See "Policy Benefits and Rights - Policy
Loans," page 16, and "Lapse and Reinstatement," page 17.
CANCELLATION AND EXCHANGE RIGHTS
A Policy Owner has a limited right to return the Policy for cancellation. If the
Policy Owner returns the Policy to Hartford or to the agent who sold the Policy,
to be canceled within ten days after delivery of the Policy to the Policy Owner
(in certain cases, this free-look period is longer), Hartford will return to the
Policy Owner, within seven days thereafter, the greater of the premiums paid for
the Policy, less any Indebtedness, or the sum of (1) the Account Value, less any
Indebtedness, on the date the returned Policy is received by Hartford or its
agent and (2) any deductions under the Policy or by the Funds for taxes, charges
or fees.
In addition, once the Policy is in effect, it may be exchanged during the first
24 months after its issuance for a permanent life insurance Policy on the life
of the Insured without submitting proof of insurability. See "Policy Benefits
and Rights - Cancellation and Exchange Rights," page 17.
TAX CONSEQUENCES
The current federal tax law generally excludes all death benefit payments from
the gross income of the Policy beneficiary. The Policies generally will be
treated as modified endowment contracts. This status does not affect the
Policies' 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 Policy (generally, the excess of Account Value over
premiums paid) and may be subject to a 10% penalty tax. See "Federal Tax
Considerations," page 25.
THE COMPANY
-------------------------------------------------------------------
Hartford Life Insurance Company ("Hartford") is a stock life insurance company
engaged in the business of writing health and life insurance, both individual
and group, in all states of the United States and the District of Columbia.
Hartford was originally incorporated under the laws of Massachusetts on June 5,
1902, and was subsequently redomiciled to Connecticut. Its offices are located
in Simsbury, Connecticut; however, its mailing address is P.O. Box 2999,
Hartford, CT 06104-2999. Hartford is a subsidiary of Hartford Fire Insurance
Company, one of the largest multiple lines insurance carriers in the United
States. Hartford is ultimately controlled by The Hartford Financial Services
Group, Inc., a Delaware corporation.
Hartford is rated A+ (superior) by A.M. Best and Company, Inc., on the basis of
its financial soundness and operating performance. Hartford is rated AA by
Standard & Poor's on the basis of its insurer financial strength and AA+ by Duff
and Phelps on its claims paying ability. These ratings do not apply to the
investment performance of the Sub-Accounts. The ratings apply to Hartford's
ability to meet its insurance obligations, including those described in this
Prospectus.
THE SEPARATE ACCOUNT
-------------------------------------------------------------------
GENERAL
Separate Account Five ("Separate Account") is a separate account of Hartford
established on August 17, 1994 pursuant to the insurance laws of the State of
Connecticut and it is 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 Policy Owners and persons entitled to
payments under the Policies. The assets of the Separate Account are not
chargeable with liabilities arising out of any other business which Hartford may
conduct.
FUNDS
The underlying investment options for the Policies are shares of Class IA of the
Putnam Variable Trust, an open-end series
8 - PROSPECTUS
<PAGE>
investment company. 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. Hartford
reserves the right, subject to compliance with the law, to close funds or offer
additional funds with differing investment objectives. There is no assurance
that any of the Funds will achieve its stated objectives.
These Funds may not be available in all states.
PUTNAM VT ASIA PACIFIC GROWTH FUND Seeks capital appreciation by investing
primarily in securities of companies located in Asia and in the Pacific Basin.
The fund's investments will normally include common stocks, preferred stocks,
securities convertible into common stocks or preferred stocks, and warrants to
purchase common stocks or preferred stocks.
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: a U.S. Government Sector, a High Yield Sector (which
invests primarily in what are commonly known as "junk bonds"), and an
International Sector. See the special considerations for investments in high
yield securities described in the Fund prospectus.
PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON Seeks to provide a balanced
investment composed of a well-diversified portfolio of stocks and bonds which
will produce both capital growth and current income.
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 portfolio of common stocks.
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 HEALTH SCIENCES FUND Seeks capital appreciation by investing at least
80% of its assets (other than assets invested in U.S. government securities,
short-term debt obligations, and cash or money market instruments) in common
stocks and other securities of companies in the health sciences industries.
PUTNAM VT HIGH YIELD FUND Seeks high current income and, when consistent with
this objective, a secondary objective of capital growth, by investing primarily
in high-yielding, lower-rated fixed income securities, constituting a portfolio
which Putnam Management believes does not involve undue risk to income or
principal. 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 in equity securities of companies located in a country other than the
United States.
PUTNAM VT INTERNATIONAL GROWTH AND INCOME FUND Seeks capital growth, and a
secondary objective of high current income by investing primarily in common
stocks that offer potential for capital growth and may, when consistent with its
investment objectives, invest in common stocks that offer potential for current
income. Under normal market conditions, the fund expects to invest substantially
all of its assets in securities principally traded on markets outside the United
States.
PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND Seeks long term capital
appreciation by investing in companies that have above-average growth prospects
due to the fundamental growth of their market sector. Under normal market
conditions, the fund expects to invest substantially all of its total assets,
other than cash or short-term investments held pending investment, in common
stocks, preferred stocks, convertible preferred stocks, convertible bonds and
other equity securities principally traded in securities markets outside the
United States.
PUTNAM VT INVESTORS FUND Seeks long-term growth of capital and any increased
income that results from this growth by investing primarily in common stocks
that Putnam Management believes afford the best opportunity for capital growth
over the long term.
PUTNAM VT MONEY MARKET FUND Seeks as high a rate 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 OTC & EMERGING GROWTH FUND Seeks capital appreciation by investing
primarily in common stocks that Putnam Management believes have potential for
capital appreciation significantly greater than that of market averages.
PUTNAM VT RESEARCH FUND Seeks capital appreciation by investing primarily in
common stocks recommended by
9 - PROSPECTUS
<PAGE>
Putnam Management, as having the greatest potential for 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 a nationally recognized securities rating agency such as Standard & Poor's or
Moody's Investor Service, Inc. or, if not rated, determined by Putnam Management
to be of comparable quality.
PUTNAM VT UTILITIES GROWTH AND INCOME FUND Seeks capital growth and current
income by concentrating its investments in debt and equity 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 Putnam Management believes have the potential
for above-average capital appreciation.
PUTNAM VT VOYAGER FUND Seeks capital appreciation by investing primarily in
common stocks of companies that Putnam Management believes have potential for
capital appreciation that is significantly greater than that of market averages.
Putnam VT Asia Pacific Growth Fund, Putnam VT Diversified Income Fund, Putnam VT
The George Putnam Fund of Boston, Putnam VT Global Growth Fund, Putnam VT Growth
and Income Fund, Putnam VT Health Sciences Fund, Putnam VT High Yield Fund,
Putnam VT International Growth Fund, Putnam VT International Growth and Income
Fund, Putnam VT International New Opportunities Fund, Putnam VT Investors Fund,
Putnam VT Money Market Fund, Putnam VT New Opportunities Fund, Putnam VT New
Value Fund, Putnam VT OTC & Emerging Growth Fund, Putnam VT Research Fund,
Putnam VT U.S. Government and High Quality Bond Fund, Putnam VT Utilities Growth
and Income Fund, Putnam VT Vista Fund, and Putnam VT Voyager Fund are generally
managed in styles similar to other open-end investment companies which are
managed by Putnam Management and whose shares are generally offered to the
public. These other funds managed by Putnam Management 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 policies. A full description of the Funds, their
investment objectives, policies and restrictions, risks, charges and expenses
and other aspects of their operation is contained in the accompanying Fund's
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 Hartford and the Funds do not
currently foresee any such disadvantages either to variable annuity contract
owners or to variable life insurance policy owners, the Trust's Board of
Trustees intends to monitor events in order to identify any material conflicts
between such contract owners and policy owners and to determine what action, if
any, should be taken in response thereto. If the Fund's Board of Trustees were
to conclude that separate funds should be established for variable life and
variable annuity separate accounts, the variable life policy owners and 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, MA 02109, serves as the
investment manager for the Funds. An affiliate, 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 Trust's Board of Trustees, 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 Trust prospectus accompanying this
Prospectus for a more complete description of Putnam Management and the
respective fees of the Funds.
10 - PROSPECTUS
<PAGE>
THE POLICY
-------------------------------------------------------------------
APPLICATION FOR A POLICY
Individuals wishing to purchase a Policy must submit an application to Hartford.
A Policy will be issued only on the lives of Insureds age 90 and under who
supply evidence of insurability satisfactory to Hartford. Acceptance is subject
to Hartford's underwriting rules, and Hartford reserves the right to reject an
application for any reason. IF AN APPLICATION FOR A POLICY IS REJECTED, THEN
YOUR INITIAL PREMIUM WILL BE RETURNED ALONG WITH AN ADDITIONAL AMOUNT FOR
INTEREST, BASED ON THE CURRENT RATE BEING CREDITED BY HARTFORD. No change in the
terms or conditions of a Policy will be made without the consent of the Policy
Owner.
The Policy will be effective on the Policy Date only after Hartford has received
all outstanding delivery requirements and received the initial premium. The
Policy Date is the date used to determine all future cyclical transactions on
the Policy, e.g., Monthly Activity Date, Policy Months and Policy Years. The
Policy Date may be prior to, or the same as, the date the Policy is issued.
If the Coverage Amount is over then current limits established by Hartford, the
initial payment will not be accepted with the application. In other cases where
Hartford receives the initial payment with the application, Hartford will
provide fixed conditional insurance during 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 Policy delivery Hartford will require a sufficient
payment to place the insurance in force.
PREMIUMS
The Policy permits the Policy Owner to pay a large single premium and, subject
to restrictions, additional premiums. The Policy 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 may be eligible for simplified underwriting
without a medical examination if they meet simplified underwriting standards as
evidenced in their responses in the application. For applicants who are below
age 35 or above age 80, or who do not meet simplified underwriting eligibility,
full 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 Policy to fail to meet
the definition of a life insurance Policy under Section 7702 of the Code. The
amount and frequency of additional premium payments will affect the Cash Value
and the amount and duration of insurance. Hartford may require evidence of
insurability for any additional premiums which increase the Coverage Amount.
Generally, the minimum initial premium Hartford will accept is $10,000. Hartford
may accept less than $10,000 under certain circumstances. Premium which does not
meet the tax qualification guidelines for life insurance under the Code will not
be applied to the Policy.
ALLOCATION OF PREMIUMS
Within three business days of receipt of a completed application and the initial
premium at Hartford's Home Office, Hartford will allocate the entire premium to
the Putnam Money Market Sub-Account. After the expiration of the right to cancel
period, the Account Value in the Putnam Money Market Sub-Account will be
allocated among the Funds, in whole percentages, to purchase Accumulation Units
in the applicable Sub-Accounts as the Policy 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 Policy 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 Policy (including the initial allocation to
the Putnam Money Market Sub-Account) is 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 premium payment.
ACCUMULATION UNIT VALUES
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. Refer to the Funds' prospectuses accompanying
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 Policy. See also, "Policy
Benefits and Rights - Account Value," page 15.
All valuations in connection with a Policy, e.g., with respect to determining
Account Value and Cash Surrender Value and in connection with Policy Loans, or
calculation of Death Benefits, or with respect to determining the number of
11 - PROSPECTUS
<PAGE>
Accumulation Units to be credited to a Policy with each premium, other than the
initial premium, will be made on the date the request or payment is received by
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
-------------------------------------------------------------------
The deduction or charges associated with this Policy are subtracted, depending
on the type of deduction or charge, from Premium payments as they are made, upon
surrender or partial surrender of the Policy, on the Policy Anniversary Date or
on a monthly pro rated basis from each Sub-Account ("Deduction Amount").
Deductions are taken from Premium payments before allocations to the
Sub-Accounts are made. Monthly Deduction Amounts are subtracted on the Policy
Date and on each Monthly Activity Date after the Policy Date to cover charges
and expenses incurred in connection with a Policy. Each Deduction Amount will be
subtracted pro rata from each
Sub-Account such that the proportion of Account Value of the Policy 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
Policy may lapse. See "Policy Benefits and Rights - Lapse and Reinstatement,"
page 17.
The Policy Owner may elect one of two options offered by Hartford to pay the
Mortality and Expense Risk charge, the Tax Expense charge and any Unamortized
Tax charge. Once selected, the option may not be changed. Option 2 may not be
available in all states.
The following chart illustrates the charges and deductions associated with this
Policy. For a more detailed discussion see the descriptions below:
<TABLE>
<CAPTION>
Deduction or Charge Deducted from All Policies When Deduction is made Amount Deducted
<S> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------------------
Cost of Insurance Yes Monthly Individualized depending on age,
sex and other factors
----------------------------------------------------------------------------------------------------------------------------------
Administrative Charge Yes Monthly .40% of amounts allocated to the
Separate Account
----------------------------------------------------------------------------------------------------------------------------------
Annual Maintenance Fee Only Policies with an Account On the Policy Anniversary Date or $30.00
Value of less than $50,000 on the upon surrender of the Policy
Policy Anniversary Date or date of
surrender
----------------------------------------------------------------------------------------------------------------------------------
Surrender Charge Yes Upon surrender or partial A percentage of the amount
surrender of the Policy surrendered, depending on the
Policy Year, which is attributable
to premiums paid
----------------------------------------------------------------------------------------------------------------------------------
Tax Expense Charge Yes Under Option 1: Monthly Under Option 1: .40% of Account
Value for Policy Years 1-10
Under Option 2: Receipt of premium Under Option 2: 4% of each premium
payment payment in all Policy Years
----------------------------------------------------------------------------------------------------------------------------------
Mortality and Expense Yes Monthly Under Option 1: .90% of Account
Risk Charge Value in Policy Years 1-10 and
.50% for Policy Years 11 and
beyond.
Under Option 2: .65% of Account
Value in Policy Years 1-10 and
.50% for Policy years 11 and
beyond
----------------------------------------------------------------------------------------------------------------------------------
Unamortized Tax Charge No, only under Option 1 Upon surrender or partial A percentage of the Account Value
surrender of the Policy depending on the Policy Year the
surrender takes place.
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
COST OF INSURANCE CHARGE
The cost of insurance charge covers Hartford's anticipated mortality costs for
standard and substandard risks. Current cost of insurance rates are lower after
the tenth Policy Year and are based on whether 100%, 90% or 80% of the Guideline
Single Premium has been paid at issue. 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 Policy Date or any
Monthly Activity Date.
12 - PROSPECTUS
<PAGE>
For Policies eligible for simplified underwriting, standard risks have a
guaranteed cost of insurance of 125% of the 1980 Commissioners Standard Ordinary
Smoker/Non-Smoker Mortality Table through age 90, grading down to 100% of the
1980 Commissioners Standard Ordinary Smoker/Non-Smoker Mortality Table at age
100 (age last birthday). For Policies not eligible for simplified underwriting,
standard risks have a guaranteed cost of insurance of 100% of the 1980
Commissioners Standard Ordinary Smoker/Non-Smoker Mortality Table. (Unisex rates
may be required in some states.) A table of guaranteed cost of insurance rates
per $1,000 will be included in each Policy; however, Hartford reserves the right
to use rates less than those shown in the Table. Substandard risks and Policies
issued employing simplified underwriting procedures 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 Smoker/Non-Smoker Mortality Table (age last
birthday). The multiple will be based on the Insured's substandard rating.
The Coverage Amount is first set on the Policy 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 Policies as life insurance Policies under the current federal tax
law. Under that law, the Minimum Coverage Amount is a stated percentage of the
Account Value of the Policy 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 = $70,000
Insured's attained age = 60
Minimum Coverage Amount percentage for age 60 = 30%
On the Monthly Activity Date, the Coverage Amount is $30,000. This is calculated
by subtracting the Account Value on the Monthly Activity Date ($70,000) 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 $21,000 (30% of $70,000). Since $21,000 is less than the Face
Amount less the Account Value ($30,000), no adjustment is necessary. Therefore,
the Coverage Amount will be $30,000.
Assume that the Account Value in the above example was $90,000. The Minimum
Coverage Amount would be $27,000 (30% of $90,000). Since this is greater than
the Face Amount less the Account Value ($10,000), the Coverage Amount for the
Policy Month is $27,000. (For an explanation of the Death Benefit, see "Policy
Benefits and Rights - Death Benefit," page 15.)
Because the Account Value and, as a result, the Coverage Amount under a Policy
may vary from month to month, the cost of insurance charge may also vary on each
Monthly Activity Date.
ADMINISTRATIVE CHARGE
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 Hartford for administrative expenses incurred in the administration
of the Separate Account and the Policies.
ANNUAL MAINTENANCE FEE
If the Account Value on a Policy Anniversary or on the date the Policy is
surrendered is less than $50,000, Hartford will deduct on such date an annual
maintenance fee of $30. This fee will help reimburse Hartford for administrative
and maintenance costs of the Policies. The sum of the monthly administrative
charges and the annual maintenance fee will not exceed the cost Hartford incurs
in providing administrative services under the Policies. Hartford reserves the
right to waive the Annual Maintenance Fee under certain conditions.
SURRENDER CHARGE
Upon surrender of the Policy or partial surrenders in excess of the Annual
Withdrawal Amount, a Surrender Charge may be assessed. In Policy Years 1 through
3, this charge is 7.5% of surrendered Account Value attributable to premiums
paid. In Policy Years 4 through 5, this charge is 6%. In Policy Years 6 through
7, this charge is 4%. In Policy Years 8 through 9, this charge is 2%. After the
ninth Policy Year, there is no charge.
In determining the Surrender Charge and any Unamortized Tax charge discussed
below, any surrender or partial surrender during the first ten Policy Years will
be deemed first from premiums paid and then from earnings. If an amount equal to
all premiums paid has been withdrawn, no charge will be assessed on a surrender
of the remaining Account Value.
The Surrender Charge is imposed to cover a portion of the sales expense incurred
by Hartford in distributing the Policies. This expense includes agents
commissions, advertising and the printing of prospectuses. See "Policy Benefits
and Rights - Amount Payable on Surrender of the Policy," page 17.
POLICY OWNER OPTIONS
In addition to the deductions and charges described above, the Policy Owner, at
the time the Policy is issued, will elect one of two options described below to
pay charges relating to
13 - PROSPECTUS
<PAGE>
certain taxes and mortality and expense risk charges. The option selected by the
Policy Owner may affect Policy Value.
OPTION 1: ASSET-BASED CHARGES: Under this payment option, the Policy Owner
will pay:
MORTALITY AND EXPENSE RISK CHARGE: Hartford will deduct monthly from the Account
Value attributable to the Separate Account for Policy Years 1 through 10 a
charge equal to an annual rate of 0.90% for the mortality risks and expense
risks Hartford assumes in relation to the variable portion of the Policies. In
Policy Years 11 and beyond, the charge drops to an annual rate of 0.50% for the
mortality risks and expense risks Hartford assumes in relation to the variable
portion of the Policies. The mortality risk assumed is that the cost of
insurance charges specified in the Policy will be insufficient to meet claims.
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 Hartford receives written notice of death. The expense risk assumed is
that expenses incurred in issuing and administering the Policies will exceed the
administrative charges set in the Policy. 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 Policies
and the proceeds of the Surrender Charge. The mortality and expense risk charge
is deducted while the Policy is in force, including the duration of a payment
option.
TAX EXPENSE CHARGE: Hartford will deduct monthly from the Account Value a charge
equal to an annual rate of 0.40% for the first ten Policy Years. This charge
compensates Hartford for premium taxes imposed by various states and local
jurisdictions and for the cost of the capitalization of certain policy
acquisition expenses under Section 848 of the Code. The charge includes a
premium tax deduction of 0.25% and Section 848 costs of 0.15%. The 0.25% premium
tax deduction over ten Policy Years approximates 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, Hartford does not expect to make a profit from this deduction. The
0.15% charge helps reimburse Hartford for approximate expenses incurred under
Section 848 of the Code.
UNAMORTIZED TAX CHARGE: Under this option, during the first nine Policy Years,
an Unamortized Tax charge will be imposed on surrender or partial surrenders.
The Unamortized Tax charge is shown below, as a percentage of Account Value, at
the end of each Policy Year:
<TABLE>
<CAPTION>
Policy
Year Rate
<S> <C>
---------------------
1 2.25%
---------------------
2 2.00%
---------------------
3 1.75%
---------------------
4 1.50%
---------------------
5 1.25%
---------------------
6 1.00%
---------------------
7 0.75%
---------------------
8 0.50%
---------------------
9 0.25%
---------------------
10+ 0.00%
---------------------
</TABLE>
After the ninth Policy Year, no Unamortized Tax charge will be imposed.
OPTION 2: FRONTED CHARGES: Under this option, the Policy Owner will pay:
MORTALITY AND EXPENSE RISK CHARGE: In Policy Years 1 through 10, Hartford will
deduct monthly from the Account Value attributable to the Separate Account a
charge equal to an annual rate of 0.65% for the mortality risks and expense
risks Hartford assumes in relation to the variable portion of the Policies. In
Policy Years 11 and beyond, the charge drops to an annual rate of 0.50%. The
mortality risk assumed is that the cost of insurance charges specified in the
Policy will be insufficient to meet claims. 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 Hartford receives written
notice of death. The expense risk assumed is that expenses incurred in issuing
and administering the Policies will exceed the administrative charges set in the
Policy. 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 Policies and the proceeds of the Surrender
Charge. The mortality and expense risk charge is deducted while the Policy is in
force, including the duration of a payment option.
TAX EXPENSE CHARGE: Hartford will deduct from Premium payments a tax expense
charge equal to an annual rate of 4.0% for all Policy Years. This charge
compensates Hartford for premium taxes imposed by various states and local
jurisdictions and for the cost of capitalization of certain policy acquisition
expenses under Section 848 of the Code. The charge includes a premium tax
deduction of 2.5% and a Section 848 cost of 1.5%. The premium tax deduction
approximates Hartford's average expenses for state and local premium taxes.
Premium taxes vary, ranging from zero to
14 - PROSPECTUS
<PAGE>
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, Hartford does not expect to make a profit from this deduction. The
0.15% charge helps reimburse Hartford for approximate expenses incurred under
Section 848 of the Code.
This Option may not be available in all states.
OTHER DEDUCTIONS OR CHARGES
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 Funds' prospectuses accompanying
this Prospectus.
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. 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.
POLICY BENEFITS AND RIGHTS
-------------------------------------------------------------------
DEATH BENEFIT
While in force, the Policy provides for the payment of the Death Proceeds to the
named beneficiary when the Insured under the Policy 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 Policy. 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:
<TABLE>
<CAPTION>
A B
<S> <C> <C>
- -----------------------------------------
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 %
- -----------------------------------------
</TABLE>
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 Hartford 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 - Settlement Provisions," page 19.
ACCOUNT VALUE
The Account Value of a Policy will be computed on each Valuation Day. The
Account Value will vary to reflect the investment experience of the Funds, the
value of the Loan Account and the monthly Deduction Amounts. There is no minimum
guaranteed Account Value.
The Account Value of a particular Policy is related to the net asset value of
the Funds to which premiums on the Policy have been allocated. The Account Value
on any Valuation Day is calculated by multiplying the number of Accumulation
Units credited to the Policy 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 Policy and the value of the Loan Account. See
"The Policy - Accumulation Unit Values," page 11.
TRANSFER OF ACCOUNT VALUE
While the Policy remains in force, and subject to Hartford's transfer rules then
in effect, the Policy Owner may request that part or all of the Account Value of
a particular Sub-Account be transferred to other Sub-Accounts. Hartford reserves
the right to restrict the number of such transfers to no more than 12 per Policy
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
15 - PROSPECTUS
<PAGE>
permitted in some states. The policy of 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. Hartford will employ
reasonable procedures to confirm that instructions communicated by telephone are
genuine; otherwise, Hartford may be liable for any losses due to unauthorized or
fraudulent instructions. The procedures 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. HARTFORD WILL SEND THE POLICY OWNER A CONFIRMATION OF THE
TRANSFER WITHIN FIVE DAYS FROM THE DATE OF ANY INSTRUCTION. IT IS THE
RESPONSIBILITY OF THE POLICY OWNER TO VERIFY THE ACCURACY OF ALL CONFIRMATIONS
OF TRANSFERS AND TO PROMPTLY ADVISE HARTFORD OF ANY INACCURACIES WITHIN 30 DAYS.
Hartford may modify the right to reallocate Account Value among the Sub-Accounts
if Hartford determines, in its sole discretion, that the exercise of that right
by one or more Policy Owners is, or would be, to the disadvantage of other
Policy 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 Policy 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 Hartford
considers to be disadvantageous to other Policy 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 Hartford receives the transfer request.
The number of Accumulation 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 Hartford receives the transfer request.
POLICY LOANS
While the Policy is in effect, a Policy 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 Hartford. Both types of loans are
secured by the Policy. The aggregate loans (including the currently applied for
loan) may not exceed at the time a loan is requested 90% of the Cash Value.
The loan amount will be transferred pro rata from each Sub-Account attributable
to the Policy (unless the Policy Owner specifies otherwise) to the Loan Account.
The amounts allocated to the Loan Account will earn interest at a rate of 4% per
annum (6% for "Preferred Loans"). The amount of the Loan Account that equals the
difference between the Cash Value and the total of all premiums paid under the
Policy is considered a "Preferred Loan." For exchanges which take place
according to Code Section 1035(a) that have an outstanding loan at the time of
transfer, the difference between the Account Value and the total of all premiums
paid under the Policy is considered a Preferred Loan. The loan interest rate
that 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. The proceeds of a loan will be delivered to the Policy Owner
within seven business days of Hartford's receipt of the loan request.
If the aggregate outstanding loan(s) secured by the Policy exceeds the Account
Value of the Policy less any Surrender Charges and due and unpaid Deduction
Amount, Hartford will give written notice to the Policy Owner that, unless
Hartford receives an additional payment within 61 days to reduce the aggregate
outstanding loan(s) secured by the Policy, the Policy may lapse.
All or any part of any loan secured by a Policy may be repaid while the Policy
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 Policy 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 Policy
will be reinstated. See "Policy Benefits and Rights - Lapse and Reinstatement,"
page 17.
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 the annual interest rate for amounts held in the
Loan Account, a Policy 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 the annual
interest rate for amounts held in the Loan Account, the Policy 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 Proceeds and
Cash Surrender Value otherwise payable.
16 - PROSPECTUS
<PAGE>
AMOUNT PAYABLE ON SURRENDER OF THE POLICY
While the Policy is in force, a Policy Owner may elect, without the consent of
the beneficiary (provided the designation of beneficiary is not irrevocable), to
fully surrender the Policy. Upon surrender, the Policy Owner will receive the
Cash Surrender Value determined as of the day Hartford receives the Policy
Owner's written request or the date requested by the Policy Owner whichever is
later. The Cash Surrender Value equals the Account Value less any Surrender
Charges and any Unamortized Tax charge and all Indebtedness. Hartford will pay
the Cash Surrender Value of the Policy within seven days of receipt by Hartford
of the written request or on the effective surrender date requested by the
Policy Owner, whichever is later. The Policy will terminate on the date of
receipt of the written request, or the date the Policy Owner requests the
surrender to be effective, whichever is later. For a discussion of the tax
consequences of surrendering the Policy, see "Federal Tax Considerations," page
25.
If the Policy Owner chooses to apply the surrender proceeds to a payment option
(see "Other Matters - Settlement Provisions," page 19), the Surrender 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 Surrender Charge. However, any Unamortized Tax charge, if
applicable, will be deducted from the surrender proceeds to be applied. In
addition, amounts withdrawn from payment Option 1, Option 5 or Option 6 will be
subject to any applicable Surrender Charge.
PARTIAL SURRENDERS
While the Policy is in force, a Policy Owner may elect, by written request, to
make partial surrenders from the Cash Surrender Value. The Cash Surrender Value,
after partial surrender, must at least equal Hartford's minimum amount rules
then in effect; otherwise, the request will be treated as a request for full
surrender. The partial surrender will be deducted pro rata from each
Sub-Account, unless the Policy Owner instructs otherwise. The Face Amount will
be reduced proportionate to the reduction in the Account Value due to the
partial surrender. Partial surrenders in excess of the Annual Withdrawal Amount
will be subject to the Surrender Charge and any Unamortized Tax charges. See
"Deductions and Charges - Surrender Charge," page 13. For a discussion of the
tax consequences of partial surrenders, see "Federal Tax Considerations," page
25.
BENEFITS AT MATURITY
If the Insured is living on the "Maturity Date" (the anniversary of the Policy
Date on which the Insured is age 100), on surrender of the Policy to Hartford,
Hartford will pay to the Policy Owner the Cash Surrender Value. In such case,
the Policy will terminate and Hartford will have no further obligations under
the Policy. (The Maturity Date may be extended by rider where approved, but see
"Federal Tax Considerations - Income Taxation of Policy Benefits," page 26.)
LAPSE AND REINSTATEMENT
The Policy will remain in force until the Cash Surrender Value is insufficient
to cover a Deduction Amount due on a Monthly Activity Date. Hartford will notify
the Policy Owner of the deficiency in writing and will provide a 61 day 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 Policy 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 Policy dies during the Grace Period, the Death Proceeds
payable under the Policy will be reduced by the Deduction Amount(s) due and
unpaid. See "Policy Benefits and Rights - Death Benefit," page 15.
If the Policy lapses, the Policy Owner may apply for reinstatement of the Policy
by payment of the reinstatement premium and any applicable charges. A request
for reinstatement may be made within five years of lapse. If a loan was
outstanding at the time of lapse, Hartford will require repayment of the loan
before permitting reinstatement. In addition, Hartford reserves the right to
require evidence of insurability satisfactory to Hartford.
CANCELLATION AND EXCHANGE RIGHTS
An Policy Owner has a limited right to return a Policy for cancellation. If the
Policy is returned, by mail or personal delivery to Hartford or to the agent who
sold the Policy, to be cancelled within ten days after delivery of the Policy to
the Policy Owner (a longer free-look period is provided in certain cases),
Hartford will return to the Policy Owner within seven days the greater of
premiums paid for the Policy less Indebtedness or the sum of (1) the Account
Value on the date the returned Policy is received by Hartford or its agent less
Indebtedness and (2) any deductions under the Policy or by the Funds for taxes,
charges or fees.
Once the Policy is in force, it may be exchanged during the first 24 months
after its issuance, for a non-variable flexible premium adjustable life
insurance Policy offered by Hartford (or an affiliated company) on the life of
the Insured. No evidence of insurability will be required. The new Policy will
have, at the election of the Policy Owner, either the same Coverage Amount under
the exchanged Policy 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 Policy. If a Policy loan was outstanding, the
17 - PROSPECTUS
<PAGE>
entire loan must be repaid. There may be a cash adjustment required on the
exchange.
SUSPENSION OF VALUATION, PAYMENTS AND TRANSFERS
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 Securities and Exchange Commission has
ordered that the right of surrender of the Policies be suspended for the
protection of Policy Owners, until such condition has ended.
LAST SURVIVOR POLICIES
-------------------------------------------------------------------
The Policies are offered on both a single life and a "last survivor" basis.
Policies 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 Policies 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. See the last survivor illustrations in "Appendix B,"
page 32.
2. To qualify for simplified underwriting under a last survivor Policy, both
Insureds must meet the simplified underwriting standards.
3. For a last survivor Policy to be reinstated, both Insureds must be alive on
the date of reinstatement.
4. The Policy provisions regarding misstatement of age or sex, suicide and
incontestability apply to either Insured.
5. Additional tax disclosures applicable to last survivor Policies are provided
in "Federal Tax Considerations," page 25.
OTHER MATTERS
-------------------------------------------------------------------
VOTING RIGHTS
In accordance with its interpretation of presently applicable law, Hartford will
vote the shares of the Funds at regular and special meetings of the shareholders
of the Funds in accordance with instructions from Policy Owners (or the assignee
of the Policy, 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 Policy Owner is determined by dividing the Policy Owner's
interest in each Sub-Account by the net asset value of the applicable shares of
the Funds. Hartford will vote shares for which no instructions have been given
and shares which are not attributable to Policy Owners (i.e., shares owned by
Hartford) in the same proportion as it votes shares for which it has received
instructions. However, if the Investment Company Act of 1940 or any rule
promulgated thereunder should be amended, or if Hartford's present
interpretation should change and, as a result, 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 Policy Owner (or the assignee) in the Funds will be
determined as follows: Policy Owners may cast one vote for each full or
fractional Accumulation Unit owned under the Policy 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 Policy
Owner has taken a loan secured by the Policy, amounts transferred from the
Sub-Account(s) to the Loan Account in connection with the loan (see "Policy
Benefits and Rights - Policy Loans," page 16) will not be considered in
determining the voting interests of the Policy Owner. Policy Owners should
review the Funds prospectus accompanying this Prospectus to determine matters on
which shareholders may vote.
18 - PROSPECTUS
<PAGE>
Hartford may, when required by state insurance regulatory authorities, disregard
Policy Owners' voting instructions if such 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 Policy for the Funds.
In addition, Hartford itself may disregard Policy Owners' voting instructions in
favor of changes initiated by a Policy Owner in the investment policy or the
investment adviser of the Funds if 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 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 Policy Owners.
STATEMENTS TO POLICY OWNERS
Hartford will maintain all records relating to the Separate Account and the
Sub-Accounts. At least once each Policy Year, Hartford will send to Policy
Owners a statement showing the Coverage Amount and the Account Value of the
Policy (indicating the number of Accumulation Units credited to the Policy in
each Sub-Account and the corresponding Accumulation Unit Value) and any
outstanding loan secured by the Policy as of the date of the statement. The
statement will also show premium paid and Deduction Amounts under the Policy
since the last statement, and any other information required by any applicable
law or regulation.
LIMIT ON RIGHT TO CONTEST
Hartford may not contest the validity of the Policy after it has been in force
during the Insured's lifetime for two years from the Issue Date. If the Policy
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 payment is
contestable for two 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 Policy.
SETTLEMENT PROVISIONS
The surrender proceeds or Death Proceeds under the Policies may be paid in a
lump sum or may be applied to one of Hartford's payment options. The minimum
amount that may be applied under a payment option is $5,000 unless Hartford
consents to a lesser amount. UNDER PAYMENT OPTIONS 2, 3 AND 4, NO SURRENDER OR
PARTIAL SURRENDERS ARE PERMITTED AFTER PAYMENTS COMMENCE. FULL SURRENDER OR
PARTIAL SURRENDERS MAY BE MADE FROM PAYMENT OPTIONS 1 OR 6, BUT THEY ARE SUBJECT
TO THE SURRENDER CHARGE, IF APPLICABLE. ONLY A FULL SURRENDER IS ALLOWED FROM
PAYMENT OPTION 5. A SURRENDER FROM PAYMENT OPTION 5 WILL ALSO BE SUBJECT TO THE
SURRENDER CHARGE, IF APPLICABLE.
Hartford 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 Policies (Hartford may offer other
payment options):
OPTION 1: INTEREST INCOME
This option offers payments of interest, at the rate Hartford declares, 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
annuity payments if he died before the 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 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 Hartford, the payee may elect that the
payment to the survivor be less than the payment
19 - PROSPECTUS
<PAGE>
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
five 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 Policy as
determined by 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 Hartford.
Option 5 is an option that does not involve life contingencies.
OPTION 6: POLICY PROCEEDS SETTLEMENT OPTION
Proceeds from the Death Benefit left with 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 surrenders may be made at
any time.
VARIABLE AND FIXED ANNUITY PAYMENTS: When an annuity is effected, unless
otherwise 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 Policy 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 Policy
contains variable payment annuity tables derived from the 1983a 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 Policy.
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 Hartford) which is no less
than the rate specified in the fixed payment annuity tables in the Policy. The
annuity payment will remain level for the duration of the annuity.
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 Policy. The
Policy Owner may change the beneficiary (unless irrevocably named) during the
Insured's lifetime by written request to Hartford. If no beneficiary is living
when the Insured dies, the Death Proceeds will be paid to the Policy Owner if
living; otherwise to the Policy Owner's estate.
ASSIGNMENT
The Policy may be assigned as collateral for a loan or other obligation.
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 Policies.
20 - PROSPECTUS
<PAGE>
EXECUTIVE OFFICERS AND DIRECTORS
-------------------------------------------------------------------
<TABLE>
<CAPTION>
OTHER BUSINESS PROFESSION,
POSITION WITH HARTFORD; VOCATION OR EMPLOYMENT FOR PAST
NAME; AGE YEAR OF ELECTION 5 YEARS; OTHER DIRECTORSHIPS
<S> <C> <C>
Dong H. Ahn Vice President, 1998 Vice President (1998-Present), Hartford Life and Accident
37 Insurance Company.
Wendell J. Bossen Vice President, 1992** Vice President (1992-Present), Hartford Life and Accident
64 Insurance Company; President (1992-Present), International
Corporate Marketing Group, Inc.; Executive Vice President
(1984-1992), Mutual Benefit.
Gregory A. Boyko Senior Vice President, 1997 Vice President and Controller (1995-1997), Hartford;
46 Director, 1997 Director (1997-Present); Senior Vice President, Chief
Financial Officer & Treasurer (1997-1998); Vice President &
Controller (1995-1997), Hartford Life and Accident Insurance
Company; Senior Vice President, Chief Financial Officer &
Treasurer (1997-1998), Hartford Life, Inc.; Chief Financial
Officer (1994-Present), IMG American Life; Senior Vice
President (1992-1994), Connecticut Mutual Life Insurance
Company.
Peter W. Cummins Senior Vice President, 1997 Vice President (1989-1997); Director of Broker Dealer
60 Sales-ILAD (1989-1992), Hartford; Senior Vice President
(1997-Present) Vice President (1989-1997); Director of
Broker Dealer Sales-ILAD (1989-1991), Hartford Life and
Accident Insurance Company.
Ann M. de Raismes Senior Vice President, 1997 Vice President (1994-1997); Assistant Vice President
47 Director of Human (1992-1994); Hartford; Senior Vice President (1997-Present);
Resources, 1991 Director of Human Resources (1991-Present); Vice President
(1994-1997); Assistant Vice President (1992-1994); Hartford
Life and Accident Insurance Company; Vice President, Human
Resources (1997-Present), Hartford Life, Inc.
Timothy M. Fitch Vice President, 1995 Assistant Vice President (1992-1995), Hartford; Vice
45 Actuary, 1994 President (1995-Present); Actuary (1994-Present); Assistant
Vice President (1992-1995), Hartford Life and Accident
Insurance Company.
David T. Foy Senior Vice President and Assistant Vice President (1995-1998), Hartford; Vice
31 Treasurer, 1998 President (1998), Hartford Life and Accident Insurance
Company.
Bruce D. Gardner Vice President, 1995 Director (1994-1997); General Counsel & Corporate Secretary
47 (1991-1995), Hartford; Vice President (1995-1997); Director
(1995-1997); General Counsel & Corporate Secretary
(1991-1995), Hartford Life and Accident Insurance Company.
J. Richard Garrett Vice President, 1993 Treasurer (1986-1997), Hartford; Vice President
53 Assistant Treasurer, 1997 (1993-Present); Assistant Treasurer (1997-Present);
Treasurer (1983-1997); Hartford Life and Accident Insurance
Company; Treasurer (1977), The Hartford Financial Services
Group.
William A. Godfrey, III Senior Vice President, 1997 Senior Vice President (1997-Present), Hartford; Senior Vice
41 President (1997-Present), Harford Life and Accident
Insurance Company; Vice President Information Technology
(1997-Present), Hartford Life, Inc.
</TABLE>
21 - PROSPECTUS
<PAGE>
<TABLE>
<CAPTION>
OTHER BUSINESS PROFESSION,
POSITION WITH HARTFORD; VOCATION OR EMPLOYMENT FOR PAST
NAME; AGE YEAR OF ELECTION 5 YEARS; OTHER DIRECTORSHIPS
<S> <C> <C>
Lynda Godkin Senior Vice President, 1997 Associate General Counsel (1995-1996); Assistant General
44 General Counsel, 1996 Counsel and Secretary (1994-1995); Counsel (1990-1994),
Corporate Secretary, 1995 Hartford; Director (1997-Present); Senior Vice President
Director, 1997 (1997-Present); General Counsel (1996-Present); Corporate
Secretary (1995-Present); Associate General Counsel
(1995-1996); Assistant General Counsel and Secretary
(1994-1995); Counsel (1990-1994), Hartford Life and Accident
Insurance Company; Vice President and General Counsel
(1997-Present), Hartford Life, Inc.
Lois W. Grady Senior Vice President, 1998 Vice President (1993-1998); Assistant Vice President
53 Vice President, 1993 (1987-1993), Hartford; Senior Vice President, 1998); Vice
President (1993-1997); Assistant Vice President (1987-1993),
Hartford Life and Accident Insurance Company.
Christopher Graham Vice President, 1997
47
Mark E. Hunt Vice President, 1998 Assistant Vice President (1997-1998), Hartford; Vice
37 President (1998-Present), Assistant Vice President
(1997-1998), Hartford Life and Accident Insurance Company.
Stephen T. Joyce Vice President, 1997 Assistant Vice President (1994-1997), Hartford; Assistant
39 Vice President (1994-1997), Hartford Life and Accident
Insurance Company.
Michael D. Keeler Vice President, 1998 Vice President (1998-Present), Hartford Life and Accident
37 Insurance Company.
Robert A. Kerzner Senior Vice President, 1998 Vice President, (1995-1998); Regional Vice President
46 Vice President, 1995 (1991-1994), Hartford; Vice President (1994-1997), Hartford
Life and Accident Insurance Company.
David N. Levenson Vice President, 1998 Assistant Vice President (1995-Present), Hartford.
31
Steven M. Maher Vice President, 1992 Assistant Vice President (1987-1992), Hartford; Vice
43 Actuary, 1987 President (1993-Present); Actuary (1987-Present); Assistant
Vice President (1987-1993), Hartford Life and Accident
Insurance Company.
William B. Malchodi, Jr. Vice President, 1994 Director of Taxes, Hartford (1991-1998); Director of Taxes
50 (1992-1998), Hartford Life and Accident Insurance Company.
Raymond J. Marra Vice President, 1998 Assistant Vice President (1997-Present), Hartford; Vice
37 President (1998-Present), Assistant Vice President
(1994-1997), Hartford Life and Accident Insurance Company.
</TABLE>
22 - PROSPECTUS
<PAGE>
<TABLE>
<CAPTION>
OTHER BUSINESS PROFESSION,
POSITION WITH HARTFORD; VOCATION OR EMPLOYMENT FOR PAST
NAME; AGE YEAR OF ELECTION 5 YEARS; OTHER DIRECTORSHIPS
<S> <C> <C>
Thomas M. Marra Executive Vice President, Senior Vice President (1994-1995); Vice President
39 1995 (1989-1994); Actuary (1987-1995), Hartford; Director
Director, Individual Life (1994-Present); Executive Vice President (1995-Present);
and Senior Vice President (1994-1995); Director, Individual Life
Annuity Division, 1994 and Annuity Division (1994-Present); Actuary (1987-1997),
Director, 1994* Hartford Life and Accident Insurance Company; Executive Vice
President, Individual Life and Annuities (1997-Present),
Hartford Life, Inc.
Robert F. Nolan, Jr. Senior Vice President, 1997 Vice President (1995-1997); Assistant Vice President
43 (1992-1995), Hartford; Vice President (1995-1997); Assistant
Vice President (1992-1995), Hartford Life and Accident
Insurance Company; Vice President, Corporate Relations
(1997-Present), Hartford Life, Inc.; Manager, Public
Relations (1986), Aetna Life and Casualty Insurance Company.
Joseph J. Noto Vice President, 1989 Executive Vice President & Chief Operating Officer
46 (1997-Present); Director (1994-Present); President
(1994-1997), American Maturity Life Insurance Company; Vice
President (1989-1997), Hartford Life and Accident Insurance
Company.
C. Michael O'Halloran Vice President, 1994 Senior Associate General Counsel (1988-1997), Hartford; Vice
51 President (1994-Present); Senior Associate General Counsel
(1988-1997), Hartford Life and Accident Insurance Company;
Corporate Secretary (1997-Present), Hartford Life, Inc.;
Vice President (1994-Present); Senior Associate General
Counsel (1988-Present); Director of Corporate Law
(1994-Present), The Hartford Financial Services Group.
Daniel E. O'Sullivan, Vice President, 1998 Vice President (1998-Present), Hartford Life and Accident
43 Insurance Company.
Craig R. Raymond Senior Vice President, 1997 Vice President (1993-1997); Assistant Vice President
37 Chief Actuary, 1994 (1992-1993); Actuary (1990-1994), Hartford; Senior Vice
President (1997-Present); Chief Actuary (1995-Present); Vice
President (1993-1997); Actuary (1990-1995), Hartford Life
and Accident Insurance Company; Vice President and Chief
Actuary (1997-Present), Hartford Life, Inc.
Mary P. Robinson Vice President, 1998 Assistant Vice President (1995-1998), Hartford; Assistant
38 Vice President (1995-1998), Hartford Life and Accident
Insurance Company.
Donald A. Salama Vice President, 1997 Vice President (1997-Present), Hartford Life and Accident
50 Insurance Company.
Timothy P. Schiltz Vice President, 1997 Assistant Vice President (1994-1997), Hartford; Vice
37 President (1997-Present); Assistant Vice President
(1994-1997), Hartford Life and Accident Insurance Company;
Consulting Actuary (1992-1993), Milliman & Robertson, Inc.;
Consulting Actuary (1988-1992) Chalke Incorporated.
</TABLE>
23 - PROSPECTUS
<PAGE>
<TABLE>
<CAPTION>
OTHER BUSINESS PROFESSION,
POSITION WITH HARTFORD; VOCATION OR EMPLOYMENT FOR PAST
NAME; AGE YEAR OF ELECTION 5 YEARS; OTHER DIRECTORSHIPS
<S> <C> <C>
Lowndes A. Smith President, 1989 Chief Operating Officer (1989-1997), Hartford; Director
58 Chief Executive Officer, (1981-Present); President (1989-Present); Chief Executive
1997 Officer (1997-Present); Chief Operating Officer (1989-1997),
Director, 1981* Hartford Life and Accident Insurance Company; Chief
Executive Officer and President and Director (1997-Present),
Hartford Life, Inc.
Keith A. Stevenson Vice President, 1998
44
Edward A. Sweeney Vice President, 1993 Chicago Regional Manager (1985-1993), Hartford; Vice
51 President (1993-Present), Hartford Life and Accident
Insurance Company.
Judith V. Tilbor Vice President, 1998 Assistant Vice President (1994-1998), Hartford; Vice
46 President (1998-Present), Assistant Vice President
(1994-1998), Hartford Life and Accident Insurance Company.
Raymond P. Welnicki Senior Vice President & Vice President (1993-1994), Hartford; Director
49 Director, (1994-Present); Senior Vice President (1995-Present);
Employee Benefit Division, Director, Employee Benefit Division (1997-Present); Vice
1994 President (1993-1995), Hartford Life and Accident Insurance
Director, 1994* Company; Senior Vice President, Employee Benefits
(1997-Present), Hartford Life, Inc.; Board of Directors,
Ethix Corp.
Walter C. Welsh Senior Vice President, 1997 Vice President (1995-1997); Assistant Vice President
51 (1992-1995), Hartford; Senior Vice President (1997-Present);
Vice President (1995-1997); Assistant Vice President
(1992-1995), Hartford Life and Accident Insurance Company;
Vice President, Government Affairs (1997-Present), Hartford
Life, Inc.
Lizabeth H. Zlatkus Senior Vice President, 1997 Vice President (1994-1997); Assistant Vice President
39 Director, 1994* (1992-1994), Hartford; Director (1994-Present); Senior Vice
President (1997-Present); Vice President (1994-1997);
Assistant Vice President (1992-1994), Hartford Life and
Accident Insurance Company; Vice President, Group Life and
Disability (1997-Present), Hartford Life, Inc.
David M. Znamierowski Senior Vice President, 1997 Vice President (1997), Hartford; Director (1998-Present)
38 Director, Risk Management Senior Vice President (1997-Present), Hartford Life and
Strategy, 1996 Accident Insurance Company; Vice President, Investment
Director, 1998* Strategy (1997-Present), Hartford Life, Inc.; Vice
President, Investment Strategy & Policy, Aetna Life and
Casualty.
</TABLE>
Unless otherwise indicated, the principal business address of each the above
individuals is P.O. Box 2999, Hartford, CT 06104-2999.
- ------------------------
* Denotes date of election to Board of Directors.
** The Hartford Financial Services Group, Inc. Affiliated Company
24 - PROSPECTUS
<PAGE>
DISTRIBUTION OF THE POLICIES
-------------------------------------------------------------------
Hartford intends to sell the Policies in all jurisdictions where it is licensed
to do business. The Policies will be sold by life insurance sales
representatives who represent 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 Policies 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 affiliates of Hartford. Hartford's parent company indirectly
owns 100% of HSD and HESCO. The principal business address of HESCO and HSD is
the same as that of Hartford.
The maximum sales commission payable to Hartford agents, independent registered
insurance brokers, and other registered broker-dealers is 7.0% of initial and
subsequent premiums.
Broker-dealers or financial institutions are compensated according to a schedule
set forth by HSD and any applicable rules or regulations for variable insurance
compensation. Compensation is generally based on premium payments made by
policyholders or contract owners. This compensation is usually paid from the
sales charges described in this Prospectus.
In addition, a broker-dealer or financial institution may also receive
additional compensation for, among other things, training, marketing or other
services provided. HSD, its affiliates or Hartford may also make compensation
arrangements with certain broker-dealers or financial institutions based on
total sales by the broker-dealer or financial institution of insurance products.
These payments, which may be different for different broker-dealers or financial
institutions, will be made by HSD, its affiliates or Hartford out of their own
assets and will not effect the amounts paid by the policyholders or contract
owners to purchase, hold or surrender variable insurance products.
Hartford may provide information on various topics to Policy Owners and
prospective Policy 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 Policies 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 Hartford. The assets of the
Separate Account are kept physically segregated and held separate and apart from
the General Account of Hartford. 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 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 Hartford.
FEDERAL TAX CONSIDERATIONS
-------------------------------------------------------------------
GENERAL
SINCE THE TAX LAW IS COMPLEX AND SINCE TAX CONSEQUENCES WILL VARY ACCORDING TO
THE ACTUAL STATUS OF THE POLICY OWNER INVOLVED, LEGAL AND TAX ADVICE MAY BE
NEEDED BY A PERSON, EMPLOYER OR OTHER ENTITY CONTEMPLATING THE PURCHASE OF A
POLICY DESCRIBED HEREIN.
25 - PROSPECTUS
<PAGE>
It should be understood that any detailed description of the federal income tax
consequences regarding the purchase of these Policies 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 Hartford 's understanding of existing Federal
income tax laws as they are currently interpreted.
TAXATION OF HARTFORD AND THE SEPARATE ACCOUNT
The Separate Account is taxed as a part of Hartford which is taxed as a life
insurance company under Subchapter L of the Internal Revenue Code of 1986, as
amended (the "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 "Policy Benefits and Rights - Account Value," on page
15). As a result, such investment income and realized capital gains are
automatically applied to increase reserves under the Policy.
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 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
POLICY BENEFITS
For federal income tax purposes, the Policies 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 Policy Owner is generally not taxed on
increments in the contract value until the Policy is partially or completely
surrendered. Section 7702 limits the amount of premiums that may be invested in
a Policy that is treated as life insurance. Hartford intends to monitor premium
levels to assure compliance with the Section 7702 requirements.
During the first fifteen Policy 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 Policy.
The Maturity Date Extension Rider allows a Policy Owner to extend the Maturity
Date to the date of the Insured's death. If the Maturity Date of the Policy is
extended by rider, Hartford believes that the Policy 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 Policy 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 Policy Owner
should consult a qualified tax adviser regarding the possible adverse tax
consequences resulting from an extension of the scheduled Maturity Date.
LAST SURVIVOR POLICIES
Although Hartford believes that the last survivor Policies 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
Policy does not meet the specified computational rules for the "seven-pay test"
under Section 7702A(c). Therefore, the Policy will generally be treated as a
modified endowment contract for federal income tax purposes. However, an
exchange under Section 1035 of the Code of a life insurance contract issued
before June 21, 1988 will not cause the new Policy to be treated as a modified
endowment contract if no additional premiums are paid and there is no change in
the death benefit as the result of the exchange.
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, loans, 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.
26 - PROSPECTUS
<PAGE>
All modified endowment contracts that are issued within any calendar year to the
same Policy 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
Policy Owner's estate for purposes of federal estate tax if the last surviving
Insured owned the Policy. If the Policy Owner was not the last surviving
Insured, the fair market value of the Policy would be included in the Policy
Owner's estate upon the Policy 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.
The federal estate tax is integrated with the federal gift tax under a unified
rate schedule and unified credit which shelters up to $625,000 (1998) from the
estate and gift tax. The Taxpayer Relief Act of 1997 gradually raises the credit
over the next eight years to $1,000,000. 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 Policy Owner (whether or not he or she is an Insured) transfers ownership
of the Policy 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 Policy. 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 Policy Owner
should consult with a qualified tax adviser for specific information if
ownership is passing to younger generations.
DIVERSIFICATION REQUIREMENTS
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 Policy is not treated as a life
insurance contract, the Policy 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 Policy Owner must agree to pay the tax due for the period during which the
diversification requirements were not met.
Hartford monitors the diversification of investments in the separate accounts
and tests for diversification as required by the Code. 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 certain 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
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
27 - PROSPECTUS
<PAGE>
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, 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 Policy Owner could be considered the owner of
the assets for tax purposes. Hartford reserves the right to modify the
contracts, as necessary, to prevent Policy 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 Policy Owner, such
amounts will be subject to federal income tax withholding and reporting,
pursuant to the Code.
NON-INDIVIDUAL OWNERSHIP
OF POLICIES
In certain circumstances, the Code limits the application of specific tax
advantages to individual owners of life insurance contracts. Prospective Policy
Owners which are not individuals should consult a qualified tax adviser to
determine the potential impact on the purchaser.
OTHER
Federal estate tax, state and local estate, inheritance and other tax
consequences of ownership, or receipt of Policy proceeds depend on the
circumstances of each Policy 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 adviser
regarding U.S. state, and foreign taxation with respect to a life insurance
policy purchase.
LEGAL PROCEEDINGS
-------------------------------------------------------------------
There are no material legal proceedings pending to which the Separate Account is
a party.
LEGAL MATTERS
-------------------------------------------------------------------
Legal matters in connection with the issue and sale of flexible premium variable
life insurance Policies described in this Prospectus and the organization of
Hartford, its authority to issue the Policies under Connecticut law and the
validity of the forms of the Policies under Connecticut law and legal matters
relating to the federal securities and income tax laws have been passed on by
Lynda Godkin, Senior Vice President, General Counsel, and Corporate Secretary of
Hartford.
28 - PROSPECTUS
<PAGE>
YEAR 2000
-------------------------------------------------------------------
The Year 2000 issue relates to the ability or inability of computer systems to
properly process information and data containing or related to dates beginning
with the year 2000 and beyond. The Year 2000 issue exists because, historically,
many computer systems that are in use today were developed years ago when a year
was identified using a two-digit field rather than a four-digit field. As
information and data containing or related to the century date are introduced to
computer hardware, software and other systems, date sensitive systems may
recognize the year 2000 as 1900, or not at all, which may result in computer
systems processing information incorrectly. This, in turn, may significantly and
adversely affect the integrity and reliability of information databases and may
result in a wide variety of adverse consequences to a company. In addition, Year
2000 problems that occur with third parties with which a company does business,
such as suppliers, computer vendors and others, may also adversely affect any
given company.
As an insurance and financial services company, Hartford has thousands of
individual and business customers that have purchased or invested in insurance
policies, annuities, mutual funds and other financial products. Nearly all of
these policies and products contain date sensitive data, such as policy
expiration dates, birth dates, premium payments dates and the like. In addition,
Hartford has business relationships with numerous third parties that affect
virtually all aspects of its business, including, without limitation, suppliers,
computer hardware and software vendors, insurance agents and brokers, securities
broker-dealers and other distributors of financial products.
Beginning in 1990, Hartford began working on making its computer systems Year
2000 ready, either by installing new programs or by replacing systems. In
January 1998, Hartford commenced a company-wide program to further identify,
assess and remediate the impact of Year 2000 problems in all of Hartford's
business segments. Hartford currently anticipates that this internal program
will be substantially completed by the end of 1998, and testing of computer
systems will continue through 1999.
In addition, as part of its Year 2000 program, Hartford is identifying third
parties with which it has significant business relations in order to attempt to
assess any potential impact on Hartford as a result of such third-party Year
2000 issues and remediation plans. Hartford currently anticipates that it will
substantially complete this evaluation by the end of 1998, and will conduct
systems testing with certain third parties through 1999. Hartford does not have
control over these third parties and, as a result, Hartford cannot currently
determine to what extent future operating results may be adversely affected by
the failure of these third parties to successfully address their Year 2000
issues. Hartford will continue to assess Year 2000 risk exposures related to its
own operations and its third-party relationships and is in the process of
developing contingency plans.
The costs of addressing the Year 2000 issue that have been incurred through the
six months ended June 30, 1998 have not been material to Hartford's financial
condition or results of operations. Hartford will continue to incur costs
related to its Year 2000 efforts and does not anticipate that the costs to be
incurred will be material to its financial condition or results of operation.
EXPERTS
-------------------------------------------------------------------
The audited financial statements and financial statement schedules included in
this registration statement have been audited by Arthur Andersen LLP,
independent public accountants, as indicated in their reports with respect
thereto, and are included herein in reliance upon the authority of said firm as
experts in giving said reports. The principal business address of Arthur
Andersen LLP is One Financial Plaza, Hartford, Connecticut 06103.
The hypothetical Policy illustrations included in this Prospectus and the
registration statement with respect to the Separate Account have been approved
by Michael Winterfield, FSA, MAAA, Assistant Vice President and Director,
Individual Annuity Product Management, for Hartford, and are included in
reliance upon his opinion as to their reasonableness.
29 - PROSPECTUS
<PAGE>
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, Hartford, and the Policies.
30 - PROSPECTUS
<PAGE>
APPENDIX A
-------------------------------------------------------------------
SPECIAL INFORMATION FOR
POLICIES PURCHASED
IN NEW YORK
If the Policy is purchased in the State of New York, the following provisions of
the Prospectus are amended as follows:
In the Special Terms subsection of the Prospectus, the definition of Account
Value is deleted and the following definition is substituted:
ACCOUNT VALUE: The current value of Accumulation Units plus the value of the
Loan Account under the Policy. In the case of a Policy Owner who purchases the
Policy in the State of New York (the "New York Policy Owner") and who elects to
transfer into the Fixed Account, Account Value is the current value of the Fixed
Account plus the value of the Loan Account under the Policy.
The following definition is added:
FIXED ACCOUNT: Part of the General Account of Hartford to which a New York
Policy Owner may allocate the entire Account Value.
The definition of Loan Account is deleted and the following definition is
substituted:
LOAN ACCOUNT: An account in Hartford's General Account, established for any
amounts transferred from the Sub-Accounts or, if a New York Policy Owner, from
the Fixed Account 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.
The following is added to the Prospectus as a separate section following the
section entitled "The Separate Account":
THE FIXED ACCOUNT
-------------------------------------------------------------------
The following language is added to the section of the Prospectus entitled
"Deductions and Charges - Administrative Charge," page 13:
No Administrative Charge is deducted from Account Value in the Fixed Account.
The following language is added to the section of the Prospectus entitled
"Deductions and Charges - Mortality and Expense Risk Charge," page 14:
No Mortality and Expense Risk Charge is deducted from Account Value in the Fixed
Account.
The following separate sections are added to the section of the Prospectus
entitled "Policy Benefits and Rights," page 15:
TRANSFER OF ENTIRE ACCOUNT VALUE TO THE FIXED ACCOUNT
New York Policy Owners may transfer no less than the entire Account Value into
the Fixed Account under the following circumstances: (i) during the first 18
months following the Date of Issue, (ii) within 30 days following a Policy
Anniversary, or (iii) within 60 days following the effective date of a material
change in the investment policy of the Separate Account which the New York
Policy Owner objects to.
A TRANSFER TO THE FIXED ACCOUNT MUST BE FOR THE ENTIRE ACCOUNT VALUE AND ONCE
THE ACCOUNT VALUE HAS BEEN TRANSFERRED TO THE FIXED ACCOUNT, IT MAY NOT, UNDER
ANY CIRCUMSTANCES, BE TRANSFERRED BACK TO THE SEPARATE ACCOUNT.
For New York Policy Owners who elect to invest in the Fixed Account, Hartford
will transfer the entire Account Value from the Separate Account to the Fixed
Account on the Monthly Activity Date next following the date on which Hartford
received the transfer request. The Account Value in the Fixed Account on the
date of transfer equals the entire Account Value; plus the value of the Loan
Account; minus the Monthly Deduction Amount applicable to the Fixed Account and
minus the Annual Maintenance Fee, if applicable. On each subsequent Monthly
Activity Date, the Account Value in the Fixed Account equals the Account Value
on the previous Monthly Activity Date; plus any premiums received since the last
Monthly Activity Date; plus interest credited since the last Monthly Activity
Date; minus the Monthly Deduction Amount applicable to the Fixed Account; minus
any partial surrenders taken since the last Monthly Activity Date and minus any
Surrender Charges deducted since the last Monthly Deduction Date. On each
Valuation Date (other than a Monthly Activity Date), the Account Value of the
Fixed Account equals the Account Value on the previous Monthly Activity Date;
plus any premiums received since the last Monthly Activity Date; plus any
interest credited since the last Monthly Activity Date; minus any partial
surrenders taken since the last Monthly Activity Date and minus any surrender
charges deducted since the last Monthly Activity Date.
DEFERRED PAYMENTS
Hartford reserves the right to defer payment of any Cash Surrender Values and
loan amounts which are attributable to the Fixed Account for up to six months
from the date of request. If payment is deferred for more than ten days,
Hartford will pay interest at the Fixed Account Minimum Credited Interest Rate.
31 - PROSPECTUS
<PAGE>
APPENDIX B
-------------------------------------------------------------------
ILLUSTRATIONS OF BENEFITS
The tables in Appendix B illustrate the way in which a Policy 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 preferred age 45, a female preferred age 55 and a
male preferred age 65 with Face Amounts of $44,053, $34,014 and $20,001,
respectively, are illustrated for the single life preferred Policy for both
Policy Owner Option 1 and Policy Owner Option 2. The illustrations for the last
survivor preferred Policy assume male preferred and female preferred of equal
ages, including age 55 and 65 for Face Amounts of $45,872 and $28,491.
The death benefit and surrender value for a Policy 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 Policy Years. They
would also differ if any Policy loan were made during the period of time
illustrated.
The tables reflect the deductions of current Policy charges for Policy Owner
Option 1 and Policy Owner Option 2 and guaranteed Policy 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 Policy 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.
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
"Deductions and Charges - Taxes Charged Against the Separate Account," page 15).
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.
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. 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.
32 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGE: 45 MALE PREFERRED
INITIAL FACE AMOUNT: $44,053
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,866 9,842 44,053 10,785 9,762 44,053
2 11,025 11,775 10,760 44,053 11,601 10,589 44,053
3 11,576 12,763 11,759 44,053 12,486 11,487 44,053
4 12,155 13,836 12,998 44,053 13,445 12,613 44,053
5 12,763 15,002 14,184 44,053 14,485 13,674 44,053
6 13,401 16,269 15,676 44,053 15,614 15,028 44,053
7 14,071 17,645 17,083 44,053 16,839 16,283 44,053
8 14,775 19,142 18,816 44,053 18,170 17,849 44,053
9 15,513 20,767 20,485 44,053 19,615 19,336 44,053
10 16,289 22,534 22,504 44,053 21,188 21,158 44,053
11 17,103 24,650 24,620 44,053 23,089 23,059 44,053
12 17,959 26,968 26,938 44,053 25,183 25,153 44,053
13 18,856 29,508 29,478 44,053 27,498 27,468 44,053
14 19,799 32,309 32,279 44,586 30,061 30,031 44,053
15 20,789 35,405 35,375 47,442 32,907 32,877 44,095
16 21,829 38,808 38,778 50,449 36,063 36,033 46,881
17 22,920 42,534 42,504 54,443 39,524 39,494 50,590
18 24,066 46,615 46,585 58,734 43,313 43,283 54,574
19 25,270 51,083 51,083 63,343 47,463 47,433 58,853
20 26,533 56,011 56,011 68,332 52,008 52,008 63,449
25 33,864 88,514 88,514 102,676 82,181 82,181 95,329
35 55,160 220,693 220,693 233,934 204,766 204,766 217,051
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
33 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGE: 45 MALE PREFERRED
INITIAL FACE AMOUNT: $44,053
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
1 10,500 10,280 9,269 44,053 10,198 9,189 44,053
2 11,025 10,538 9,547 44,053 10,361 9,373 44,053
3 11,576 10,802 9,833 44,053 10,517 9,553 44,053
4 12,155 11,074 10,278 44,053 10,665 9,875 44,053
5 12,763 11,353 10,582 44,053 10,804 10,039 44,053
6 13,401 11,641 11,094 44,053 10,931 10,391 44,053
7 14,071 11,936 11,417 44,053 11,043 10,530 44,053
8 14,775 12,240 11,949 44,053 11,138 10,852 44,053
9 15,513 12,552 12,291 44,053 11,210 10,952 44,053
10 16,289 12,873 12,843 44,053 11,256 11,226 44,053
11 17,103 13,309 13,279 44,053 11,365 11,335 44,053
12 17,959 13,761 13,731 44,053 11,444 11,414 44,053
13 18,856 14,230 14,200 44,053 11,491 11,461 44,053
14 19,799 14,715 14,685 44,053 11,498 11,468 44,053
15 20,789 15,218 15,188 44,053 11,460 11,430 44,053
16 21,829 15,739 15,709 44,053 11,366 11,336 44,053
17 22,920 16,280 16,250 44,053 11,209 11,179 44,053
18 24,066 16,840 16,810 44,053 10,975 10,945 44,053
19 25,270 17,420 17,390 44,053 10,648 10,618 44,053
20 26,533 18,021 17,991 44,053 10,212 10,182 44,053
25 33,864 21,371 21,341 44,053 5,654 5,624 44,053
35 55,160 30,159 30,129 44,053 - - -
- --------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
34 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGE: 45 MALE PREFERRED
INITIAL FACE AMOUNT: $44,053
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS --------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
1 10,500 9,694 8,719 44,053 9,612 8,645 44,053
2 11,025 9,369 8,449 44,053 9,190 8,287 44,053
3 11,576 9,053 8,186 44,053 8,763 7,922 44,053
4 12,155 8,747 8,061 44,053 8,330 7,675 44,053
5 12,763 8,451 7,808 44,053 7,889 7,287 44,053
6 13,401 8,163 7,725 44,053 7,438 7,036 44,053
7 14,071 7,884 7,480 44,053 6,974 6,612 44,053
8 14,775 7,614 7,394 44,053 6,492 6,300 44,053
9 15,513 7,352 7,157 44,053 5,990 5,825 44,053
10 16,289 7,098 7,068 44,053 5,463 5,433 44,053
11 17,103 6,907 6,877 44,053 4,948 4,918 44,053
12 17,959 6,721 6,691 44,053 4,395 4,365 44,053
13 18,856 6,538 6,508 44,053 3,801 3,771 44,053
14 19,799 6,360 6,330 44,053 3,159 3,129 44,053
15 20,789 6,186 6,156 44,053 2,461 2,431 44,053
16 21,829 6,016 5,986 44,053 1,700 1,670 44,053
17 22,920 5,849 5,819 44,053 865 835 44,053
18 24,066 5,687 5,657 44,053 - - -
19 25,270 5,528 5,498 44,053 - - -
20 26,533 5,372 5,342 44,053 - - -
25 33,864 4,648 4,618 44,053 - - -
35 55,160 3,426 3,396 44,053 - - -
- -----------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
35 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGE: 45 MALE PREFERRED
INITIAL FACE AMOUNT: $44,053
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,500 9,720 44,053 10,413 9,633 44,053
2 11,025 11,451 10,671 44,053 11,267 10,487 44,053
3 11,576 12,492 11,712 44,053 12,199 11,419 44,053
4 12,155 13,630 13,000 44,053 13,215 12,585 44,053
5 12,763 14,874 14,244 44,053 14,326 13,696 44,053
6 13,401 16,236 15,806 44,053 15,541 15,111 44,053
7 14,071 17,725 17,295 44,053 16,869 16,439 44,053
8 14,775 19,353 19,123 44,053 18,323 18,093 44,053
9 15,513 21,135 20,905 44,053 19,915 19,685 44,053
10 16,289 23,083 23,053 44,053 21,661 21,631 44,053
11 17,103 25,251 25,221 44,053 23,616 23,586 44,053
12 17,959 27,627 27,597 44,053 25,771 25,741 44,053
13 18,856 30,234 30,204 44,053 28,153 28,123 44,053
14 19,799 33,116 33,086 45,700 30,794 30,764 44,053
15 20,789 36,292 36,262 48,630 33,726 33,696 45,192
16 21,829 39,781 39,751 51,714 36,966 36,936 48,055
17 22,920 43,601 43,571 55,809 40,514 40,484 51,857
18 24,066 47,785 47,755 60,209 44,399 44,369 55,942
19 25,270 52,367 52,367 64,934 48,654 48,624 60,330
20 26,533 57,418 57,418 70,049 53,314 53,314 65,042
25 33,864 90,738 90,738 105,256 84,244 84,244 97,723
35 55,160 226,238 226,238 239,812 209,907 209,907 222,500
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
36 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGE: 45 MALE PREFERRED
INITIAL FACE AMOUNT: $44,053
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
1 10,500 9,934 9,159 44,053 9,847 9,078 44,053
2 11,025 10,248 9,468 44,053 10,062 9,282 44,053
3 11,576 10,573 9,793 44,053 10,273 9,493 44,053
4 12,155 10,909 10,279 44,053 10,480 9,850 44,053
5 12,763 11,257 10,627 44,053 10,682 10,052 44,053
6 13,401 11,617 11,187 44,053 10,875 10,445 44,053
7 14,071 11,989 11,559 44,053 11,058 10,628 44,053
8 14,775 12,375 12,145 44,053 11,227 10,997 44,053
9 15,513 12,774 12,544 44,053 11,378 11,148 44,053
10 16,289 13,187 13,157 44,053 11,508 11,478 44,053
11 17,103 13,634 13,604 44,053 11,631 11,601 44,053
12 17,959 14,098 14,068 44,053 11,725 11,695 44,053
13 18,856 14,579 14,549 44,053 11,787 11,757 44,053
14 19,799 15,077 15,047 44,053 11,811 11,781 44,053
15 20,789 15,593 15,563 44,053 11,791 11,761 44,053
16 21,829 16,128 16,098 44,053 11,718 11,688 44,053
17 22,920 16,682 16,652 44,053 11,583 11,553 44,053
18 24,066 17,257 17,227 44,053 11,372 11,342 44,053
19 25,270 17,852 17,822 44,053 11,072 11,042 44,053
20 26,533 18,469 18,439 44,053 10,665 10,635 44,053
25 33,864 21,906 21,876 44,053 6,318 6,288 44,053
35 55,160 30,924 30,894 44,053 - - -
- --------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
37 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGE: 45 MALE PREFERRED
INITIAL FACE AMOUNT: $44,053
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
1 10,500 9,367 8,635 44,053 9,281 8,555 44,053
2 11,025 9,111 8,398 44,053 8,924 8,224 44,053
3 11,576 8,861 8,166 44,053 8,558 7,887 44,053
4 12,155 8,617 8,070 44,053 8,183 7,662 44,053
5 12,763 8,378 7,846 44,053 7,797 7,299 44,053
6 13,401 8,146 7,790 44,053 7,396 7,070 44,053
7 14,071 7,919 7,572 44,053 6,979 6,670 44,053
8 14,775 7,698 7,514 44,053 6,541 6,380 44,053
9 15,513 7,482 7,302 44,053 6,078 5,927 44,053
10 16,289 7,271 7,241 44,053 5,588 5,558 44,053
11 17,103 7,076 7,046 44,053 5,072 5,042 44,053
12 17,959 6,886 6,856 44,053 4,518 4,488 44,053
13 18,856 6,700 6,670 44,053 3,923 3,893 44,053
14 19,799 6,518 6,488 44,053 3,281 3,251 44,053
15 20,789 6,340 6,310 44,053 2,584 2,554 44,053
16 21,829 6,166 6,136 44,053 1,823 1,793 44,053
17 22,920 5,996 5,966 44,053 988 958 44,053
18 24,066 5,830 5,800 44,053 65 35 44,053
19 25,270 5,668 5,638 44,053 - - -
20 26,533 5,510 5,480 44,053 - - -
25 33,864 4,770 4,740 44,053 - - -
35 55,160 3,523 3,493 44,053 - - -
- ----------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
38 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGE: 55 FEMALE PREFERRED
INITIAL FACE AMOUNT: $34,014
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,866 9,842 34,014 10,739 9,718 34,014
2 11,025 11,775 10,760 34,014 11,507 10,497 34,014
3 11,576 12,763 11,759 34,014 12,341 11,346 34,014
4 12,155 13,836 12,998 34,014 13,249 12,421 34,014
5 12,763 15,002 14,184 34,014 14,238 13,431 34,014
6 13,401 16,269 15,676 34,014 15,316 14,733 34,014
7 14,071 17,645 17,083 34,014 16,490 15,936 34,014
8 14,775 19,142 18,816 34,014 17,769 17,450 34,014
9 15,513 20,767 20,485 34,014 19,163 18,885 34,014
10 16,289 22,534 22,504 34,014 20,685 20,655 34,014
11 17,103 24,650 24,620 34,014 22,538 22,508 34,014
12 17,959 26,978 26,948 34,014 24,596 24,566 34,014
13 18,856 29,576 29,546 34,899 26,895 26,865 34,014
14 19,799 32,446 32,416 37,961 29,471 29,441 34,481
15 20,789 35,595 35,565 41,289 32,328 32,298 37,500
16 21,829 39,047 39,017 44,904 35,461 35,431 40,780
17 22,920 42,846 42,816 48,415 38,907 38,877 43,965
18 24,066 47,027 46,997 52,199 42,701 42,671 47,398
19 25,270 51,634 51,634 56,281 46,882 46,852 51,101
20 26,533 56,703 56,703 61,806 51,451 51,451 56,082
25 33,864 90,455 90,455 95,882 82,077 82,077 87,001
35 55,160 226,166 226,166 237,474 202,195 202,195 212,304
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
39 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGE: 55 FEMALE PREFERRED
INITIAL FACE AMOUNT: $34,014
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,280 9,269 34,014 10,153 9,145 34,014
2 11,025 10,538 9,547 34,014 10,268 9,282 34,014
3 11,576 10,802 9,833 34,014 10,374 9,412 34,014
4 12,155 11,074 10,278 34,014 10,471 9,684 34,014
5 12,763 11,353 10,582 34,014 10,556 9,795 34,014
6 13,401 11,641 11,094 34,014 10,628 10,092 34,014
7 14,071 11,936 11,417 34,014 10,681 10,171 34,014
8 14,775 12,240 11,949 34,014 10,709 10,426 34,014
9 15,513 12,552 12,291 34,014 10,705 10,448 34,014
10 16,289 12,873 12,843 34,014 10,662 10,632 34,014
11 17,103 13,309 13,279 34,014 10,663 10,633 34,014
12 17,959 13,761 13,731 34,014 10,622 10,592 34,014
13 18,856 14,230 14,200 34,014 10,534 10,504 34,014
14 19,799 14,715 14,685 34,014 10,394 10,364 34,014
15 20,789 15,218 15,188 34,014 10,194 10,164 34,014
16 21,829 15,739 15,709 34,014 9,919 9,889 34,014
17 22,920 16,280 16,250 34,014 9,550 9,520 34,014
18 24,066 16,840 16,810 34,014 9,058 9,028 34,014
19 25,270 17,420 17,390 34,014 8,411 8,381 34,014
20 26,533 18,021 17,991 34,014 7,573 7,543 34,014
25 33,864 21,371 21,341 34,014 - - -
35 55,160 30,159 30,129 34,014 - - -
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
40 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGE: 55 FEMALE PREFERRED
INITIAL FACE AMOUNT: $34,014
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 9,694 8,719 34,014 9,567 8,605 34,014
2 11,025 9,369 8,449 34,014 9,098 8,204 34,014
3 11,576 9,053 8,186 34,014 8,623 7,795 34,014
4 12,155 8,747 8,061 34,014 8,140 7,499 34,014
5 12,763 8,451 7,808 34,014 7,648 7,063 34,014
6 13,401 8,163 7,725 34,014 7,143 6,756 34,014
7 14,071 7,884 7,480 34,014 6,620 6,275 34,014
8 14,775 7,614 7,394 34,014 6,071 5,890 34,014
9 15,513 7,352 7,157 34,014 5,490 5,336 34,014
10 16,289 7,098 7,068 34,014 4,868 4,838 34,014
11 17,103 6,907 6,877 34,014 4,238 4,208 34,014
12 17,959 6,721 6,691 34,014 3,554 3,524 34,014
13 18,856 6,538 6,508 34,014 2,812 2,782 34,014
14 19,799 6,360 6,330 34,014 2,007 1,977 34,014
15 20,789 6,186 6,156 34,014 1,128 1,098 34,014
16 21,829 6,016 5,986 34,014 160 130 34,014
17 22,920 5,849 5,819 34,014 - - -
18 24,066 5,687 5,657 34,014 - - -
19 25,270 5,528 5,498 34,014 - - -
20 26,533 5,372 5,342 34,014 - - -
25 33,864 4,648 4,618 34,014 - - -
35 55,160 3,426 3,396 34,014 - - -
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
41 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGE: 55 FEMALE PREFERRED
INITIAL FACE AMOUNT: $34,014
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,500 9,720 34,014 10,367 9,587 34,014
2 11,025 11,451 10,671 34,014 11,170 10,390 34,014
3 11,576 12,492 11,712 34,014 12,048 11,268 34,014
4 12,155 13,630 13,000 34,014 13,011 12,381 34,014
5 12,763 14,874 14,244 34,014 14,067 13,437 34,014
6 13,401 16,236 15,806 34,014 15,227 14,797 34,014
7 14,071 17,725 17,295 34,014 16,500 16,070 34,014
8 14,775 19,353 19,123 34,014 17,897 17,667 34,014
9 15,513 21,135 20,905 34,014 19,433 19,203 34,014
10 16,289 23,083 23,053 34,014 21,124 21,094 34,014
11 17,103 25,252 25,222 34,014 23,030 23,000 34,014
12 17,959 27,649 27,619 34,014 25,150 25,120 34,014
13 18,856 30,324 30,294 35,782 27,519 27,489 34,014
14 19,799 33,268 33,238 38,923 30,171 30,141 35,299
15 20,789 36,498 36,468 42,337 33,096 33,066 38,391
16 21,829 40,039 40,009 46,044 36,305 36,275 41,750
17 22,920 43,934 43,904 49,645 39,834 39,804 45,012
18 24,066 48,223 48,193 53,526 43,719 43,689 48,527
19 25,270 52,948 52,948 57,713 48,000 47,970 52,319
20 26,533 58,146 58,146 63,379 52,679 52,679 57,420
25 33,864 92,757 92,757 98,322 84,035 84,035 89,077
35 55,160 231,921 231,921 243,517 207,019 207,019 217,369
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
42 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGE: 55 FEMALE PREFERRED
INITIAL FACE AMOUNT: $34,014
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 9,934 9,159 34,014 9,801 9,036 34,014
2 11,025 10,248 9,468 34,014 9,965 9,188 34,014
3 11,576 10,573 9,793 34,014 10,125 9,345 34,014
4 12,155 10,909 10,279 34,014 10,278 9,648 34,014
5 12,763 11,257 10,627 34,014 10,424 9,794 34,014
6 13,401 11,617 11,187 34,014 10,560 10,130 34,014
7 14,071 11,989 11,559 34,014 10,680 10,250 34,014
8 14,775 12,375 12,145 34,014 10,779 10,549 34,014
9 15,513 12,774 12,544 34,014 10,850 10,620 34,014
10 16,289 13,187 13,157 34,014 10,887 10,857 34,014
11 17,103 13,634 13,604 34,014 10,903 10,873 34,014
12 17,959 14,098 14,068 34,014 10,877 10,847 34,014
13 18,856 14,579 14,549 34,014 10,805 10,775 34,014
14 19,799 15,077 15,047 34,014 10,684 10,654 34,014
15 20,789 15,593 15,563 34,014 10,505 10,475 34,014
16 21,829 16,128 16,098 34,014 10,252 10,222 34,014
17 22,920 16,682 16,652 34,014 9,908 9,878 34,014
18 24,066 17,257 17,227 34,014 9,444 9,414 34,014
19 25,270 17,852 17,822 34,014 8,830 8,800 34,014
20 26,533 18,469 18,439 34,014 8,030 8,000 34,014
25 33,864 21,906 21,876 34,014 - - -
35 55,160 30,924 30,894 34,014 - - -
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
43 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGE: 55 FEMALE PREFERRED
INITIAL FACE AMOUNT: $34,014
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 9,367 8,635 34,014 9,235 8,512 34,014
2 11,025 9,111 8,398 34,014 8,829 8,137 34,014
3 11,576 8,861 8,166 34,014 8,413 7,752 34,014
4 12,155 8,617 8,070 34,014 7,986 7,477 34,014
5 12,763 8,378 7,846 34,014 7,547 7,064 34,014
6 13,401 8,146 7,790 34,014 7,090 6,777 34,014
7 14,071 7,919 7,572 34,014 6,612 6,318 34,014
8 14,775 7,698 7,514 34,014 6,105 5,953 34,014
9 15,513 7,482 7,302 34,014 5,561 5,420 34,014
10 16,289 7,271 7,241 34,014 4,973 4,943 34,014
11 17,103 7,076 7,046 34,014 4,343 4,313 34,014
12 17,959 6,886 6,856 34,014 3,659 3,629 34,014
13 18,856 6,700 6,670 34,014 2,918 2,888 34,014
14 19,799 6,518 6,488 34,014 2,113 2,083 34,014
15 20,789 6,340 6,310 34,014 1,236 1,206 34,014
16 21,829 6,166 6,136 34,014 269 239 34,014
17 22,920 5,996 5,966 34,014 - - -
18 24,066 5,830 5,800 34,014 - - -
19 25,270 5,668 5,638 34,014 - - -
20 26,533 5,510 5,480 34,014 - - -
25 33,864 4,770 4,740 34,014 - - -
35 55,160 3,523 3,493 34,014 - - -
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
44 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGE: 65 MALE PREFERRED
INITIAL FACE AMOUNT: $20,001
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,866 9,842 20,001 10,653 9,634 20,001
2 11,025 11,775 10,760 20,001 11,326 10,319 20,001
3 11,576 12,763 11,759 20,001 12,056 11,065 20,001
4 12,155 13,836 12,998 20,001 12,854 12,031 20,001
5 12,763 15,002 14,184 20,001 13,732 12,930 20,001
6 13,401 16,269 15,676 20,001 14,706 14,129 20,001
7 14,071 17,645 17,083 20,001 15,795 15,246 20,001
8 14,775 19,146 18,820 21,251 17,025 16,710 20,001
9 15,513 20,790 20,508 22,661 18,432 18,155 20,090
10 16,289 22,564 22,534 24,594 20,000 19,970 21,800
11 17,103 24,691 24,661 26,665 21,882 21,852 23,632
12 17,959 27,027 26,997 28,918 23,949 23,919 25,625
13 18,856 29,572 29,542 31,641 26,199 26,169 28,032
14 19,799 32,371 32,341 34,313 28,675 28,645 30,395
15 20,789 35,426 35,396 37,551 31,370 31,340 33,252
16 21,829 38,787 38,757 40,725 34,342 34,312 36,059
17 22,920 42,453 42,423 44,575 37,578 37,548 39,456
18 24,066 46,469 46,439 48,792 41,093 41,063 43,147
19 25,270 50,868 50,868 53,411 44,908 44,878 47,153
20 26,533 55,720 55,720 58,506 49,041 49,011 51,493
25 33,864 87,869 87,869 92,261 75,392 75,392 79,161
35 55,160 218,691 218,691 220,878 181,929 181,929 183,747
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
45 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGE: 65 MALE PREFERRED
INITIAL FACE AMOUNT: $20,001
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,280 9,269 20,001 10,065 9,058 20,001
2 11,025 10,538 9,547 20,001 10,071 9,089 20,001
3 11,576 10,802 9,833 20,001 10,045 9,089 20,001
4 12,155 11,074 10,278 20,001 9,981 9,203 20,001
5 12,763 11,353 10,582 20,001 9,873 9,127 20,001
6 13,401 11,641 11,094 20,001 9,710 9,195 20,001
7 14,071 11,936 11,417 20,001 9,481 9,000 20,001
8 14,775 12,240 11,949 20,001 9,167 8,908 20,001
9 15,513 12,552 12,291 20,001 8,749 8,522 20,001
10 16,289 12,873 12,843 20,001 8,204 8,174 20,001
11 17,103 13,309 13,279 20,001 7,568 7,538 20,001
12 17,959 13,761 13,731 20,001 6,744 6,714 20,001
13 18,856 14,230 14,200 20,001 5,685 5,655 20,001
14 19,799 14,715 14,685 20,001 4,333 4,303 20,001
15 20,789 15,218 15,188 20,001 2,603 2,573 20,001
16 21,829 15,739 15,709 20,001 380 350 20,001
17 22,920 16,280 16,250 20,001 - - -
18 24,066 16,840 16,810 20,001 - - -
19 25,270 17,420 17,390 20,001 - - -
20 26,533 18,021 17,991 20,001 - - -
25 33,864 21,371 21,341 22,439 - - -
35 55,160 30,185 30,155 30,486 - - -
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
46 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGE: 65 MALE PREFERRED
INITIAL FACE AMOUNT: $20,001
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 9,694 8,719 20,001 9,476 8,522 20,001
2 11,025 9,369 8,449 20,001 8,888 8,014 20,001
3 11,576 9,053 8,186 20,001 8,261 7,466 20,001
4 12,155 8,747 8,061 20,001 7,585 6,986 20,001
5 12,763 8,451 7,808 20,001 6,852 6,325 20,001
6 13,401 8,163 7,725 20,001 6,047 5,715 20,001
7 14,071 7,884 7,480 20,001 5,154 4,879 20,001
8 14,775 7,614 7,394 20,001 4,149 4,015 20,001
9 15,513 7,352 7,157 20,001 3,005 2,907 20,001
10 16,289 7,098 7,068 20,001 1,689 1,659 20,001
11 17,103 6,907 6,877 20,001 174 144 20,001
12 17,959 6,721 6,691 20,001 - - -
13 18,856 6,538 6,508 20,001 - - -
14 19,799 6,360 6,330 20,001 - - -
15 20,789 6,186 6,156 20,001 - - -
16 21,829 6,016 5,986 20,001 - - -
17 22,920 5,849 5,819 20,001 - - -
18 24,066 5,687 5,657 20,001 - - -
19 25,270 5,528 5,498 20,001 - - -
20 26,533 5,372 5,342 20,001 - - -
25 33,864 4,648 4,618 20,001 - - -
35 55,160 3,426 3,396 20,001 - - -
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
47 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGE: 65 MALE PREFERRED
INITIAL FACE AMOUNT: $20,001
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,500 9,720 20,001 10,272 9,492 20,001
2 11,025 11,451 10,671 20,001 10,969 10,189 20,001
3 11,576 12,492 11,712 20,001 11,730 10,950 20,001
4 12,155 13,630 13,000 20,001 12,568 11,938 20,001
5 12,763 14,874 14,244 20,001 13,497 12,867 20,001
6 13,401 16,236 15,806 20,001 14,534 14,104 20,001
7 14,071 17,725 17,295 20,029 15,702 15,272 20,001
8 14,775 19,358 19,128 21,487 17,032 16,802 20,001
9 15,513 21,158 20,928 23,062 18,564 18,334 20,234
10 16,289 23,114 23,084 25,194 20,276 20,246 22,100
11 17,103 25,294 25,264 27,317 22,184 22,154 23,958
12 17,959 27,688 27,658 29,625 24,280 24,250 25,979
13 18,856 30,296 30,266 32,416 26,561 26,531 28,420
14 19,799 33,164 33,134 35,154 29,072 29,042 30,816
15 20,789 36,294 36,264 38,472 31,805 31,775 33,713
16 21,829 39,738 39,708 41,725 34,819 34,789 36,560
17 22,920 43,496 43,466 45,670 38,100 38,070 40,004
18 24,066 47,611 47,581 49,991 41,665 41,635 43,747
19 25,270 52,120 52,120 54,725 45,533 45,503 47,809
20 26,533 57,091 57,091 59,945 49,724 49,694 52,210
25 33,864 90,030 90,030 94,531 76,443 76,443 80,264
35 55,160 224,070 224,070 226,310 184,463 184,463 186,307
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
48 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGE: 65 MALE PREFERRED
INITIAL FACE AMOUNT: $20,001
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 9,934 9,159 20,001 9,704 8,946 20,001
2 11,025 10,248 9,468 20,001 9,751 8,990 20,001
3 11,576 10,573 9,793 20,001 9,768 9,006 20,001
4 12,155 10,909 10,279 20,001 9,750 9,135 20,001
5 12,763 11,257 10,627 20,001 9,689 9,078 20,001
6 13,401 11,617 11,187 20,001 9,576 9,163 20,001
7 14,071 11,989 11,559 20,001 9,399 8,993 20,001
8 14,775 12,375 12,145 20,001 9,141 8,928 20,001
9 15,513 12,774 12,544 20,001 8,782 8,576 20,001
10 16,289 13,187 13,157 20,001 8,298 8,268 20,001
11 17,103 13,634 13,604 20,001 7,675 7,645 20,001
12 17,959 14,098 14,068 20,001 6,865 6,835 20,001
13 18,856 14,579 14,549 20,001 5,824 5,794 20,001
14 19,799 15,077 15,047 20,001 4,493 4,463 20,001
15 20,789 15,593 15,563 20,001 2,791 2,761 20,001
16 21,829 16,128 16,098 20,001 600 570 20,001
17 22,920 16,682 16,652 20,001 - - -
18 24,066 17,257 17,227 20,001 - - -
19 25,270 17,852 17,822 20,001 - - -
20 26,533 18,469 18,439 20,001 - - -
25 33,864 21,906 21,876 23,001 - - -
35 55,160 30,950 30,920 31,259 - - -
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
49 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
SINGLE LIFE OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGE: 65 MALE PREFERRED
INITIAL FACE AMOUNT: $20,001
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 9,367 8,635 20,001 9,136 8,421 20,001
2 11,025 9,111 8,398 20,001 8,604 7,929 20,001
3 11,576 8,861 8,166 20,001 8,028 7,396 20,001
4 12,155 8,617 8,070 20,001 7,400 6,926 20,001
5 12,763 8,378 7,846 20,001 6,710 6,277 20,001
6 13,401 8,146 7,790 20,001 5,944 5,676 20,001
7 14,071 7,919 7,572 20,001 5,084 4,851 20,001
8 14,775 7,698 7,514 20,001 4,108 3,995 20,001
9 15,513 7,482 7,302 20,001 2,985 2,896 20,001
10 16,289 7,271 7,241 20,001 1,685 1,655 20,001
11 17,103 7,076 7,046 20,001 169 139 20,001
12 17,959 6,886 6,856 20,001 - - -
13 18,856 6,700 6,670 20,001 - - -
14 19,799 6,518 6,488 20,001 - - -
15 20,789 6,340 6,310 20,001 - - -
16 21,829 6,166 6,136 20,001 - - -
17 22,920 5,996 5,966 20,001 - - -
18 24,066 5,830 5,800 20,001 - - -
19 25,270 5,668 5,638 20,001 - - -
20 26,533 5,510 5,480 20,001 - - -
25 33,864 4,770 4,740 20,001 - - -
35 55,160 3,523 3,493 20,001 - - -
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
50 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGES: 55 MALE PREFERRED/55 FEMALE PREFERRED
INITIAL FACE AMOUNT: $45,872
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,934 9,908 45,872 10,934 9,908 45,872
2 11,025 11,917 10,898 45,872 11,917 10,898 45,872
3 11,576 12,983 11,976 45,872 12,983 11,976 45,872
4 12,155 14,141 13,299 45,872 14,141 13,299 45,872
5 12,763 15,397 14,574 45,872 15,397 14,574 45,872
6 13,401 16,760 16,162 45,872 16,760 16,162 45,872
7 14,071 18,238 17,671 45,872 18,238 17,671 45,872
8 14,775 19,840 19,511 45,872 19,840 19,511 45,872
9 15,513 21,578 21,294 45,872 21,578 21,294 45,872
10 16,289 23,461 23,431 45,872 23,461 23,431 45,872
11 17,103 25,711 25,681 45,872 25,710 25,680 45,872
12 17,959 28,180 28,150 45,872 28,178 28,148 45,872
13 18,856 30,893 30,863 45,872 30,890 30,860 45,872
14 19,799 33,883 33,853 45,872 33,879 33,849 45,872
15 20,789 37,190 37,160 45,872 37,186 37,156 45,872
16 21,829 40,861 40,831 46,989 40,856 40,826 46,984
17 22,920 44,916 44,886 50,754 44,911 44,881 50,748
18 24,066 49,374 49,344 54,805 49,368 49,338 54,798
19 25,270 54,280 54,280 59,164 54,274 54,274 59,158
20 26,533 59,682 59,682 65,053 59,676 59,676 65,046
25 33,864 95,601 95,601 101,337 95,590 95,590 101,325
35 55,160 241,750 241,750 253,837 235,717 235,717 247,502
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
51 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGES: 55 MALE PREFERRED/55 FEMALE PREFERRED
INITIAL FACE AMOUNT: $45,872
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
1 10,500 10,344 9,332 45,872 10,344 9,332 45,872
2 11,025 10,663 9,670 45,872 10,663 9,670 45,872
3 11,576 10,985 10,012 45,872 10,985 10,012 45,872
4 12,155 11,308 10,508 45,872 11,308 10,508 45,872
5 12,763 11,630 10,855 45,872 11,630 10,855 45,872
6 13,401 11,951 11,401 45,872 11,951 11,401 45,872
7 14,071 12,273 11,751 45,872 12,266 11,744 45,872
8 14,775 12,605 12,312 45,872 12,572 12,279 45,872
9 15,513 12,947 12,685 45,872 12,863 12,601 45,872
10 16,289 13,299 13,269 45,872 13,134 13,104 45,872
11 17,103 13,772 13,742 45,872 13,488 13,458 45,872
12 17,959 14,262 14,232 45,872 13,815 13,785 45,872
13 18,856 14,771 14,741 45,872 14,108 14,078 45,872
14 19,799 15,299 15,269 45,872 14,360 14,330 45,872
15 20,789 15,847 15,817 45,872 14,561 14,531 45,872
16 21,829 16,416 16,386 45,872 14,694 14,664 45,872
17 22,920 17,006 16,976 45,872 14,742 14,712 45,872
18 24,066 17,618 17,588 45,872 14,679 14,649 45,872
19 25,270 18,254 18,224 45,872 14,472 14,442 45,872
20 26,533 18,914 18,884 45,872 14,086 14,056 45,872
25 33,864 22,608 22,578 45,872 7,581 7,551 45,872
35 55,160 32,412 32,382 45,872 - - -
- --------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
52 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGES: 55 MALE PREFERRED/55 FEMALE PREFERRED
INITIAL FACE AMOUNT: $45,872
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
1 10,500 9,755 8,774 45,872 9,755 8,774 45,872
2 11,025 9,479 8,549 45,872 9,479 8,549 45,872
3 11,576 9,202 8,321 45,872 9,202 8,321 45,872
4 12,155 8,921 8,222 45,872 8,921 8,222 45,872
5 12,763 8,635 7,979 45,872 8,635 7,979 45,872
6 13,401 8,355 7,907 45,872 8,341 7,894 45,872
7 14,071 8,082 7,668 45,872 8,035 7,623 45,872
8 14,775 7,818 7,592 45,872 7,712 7,489 45,872
9 15,513 7,561 7,361 45,872 7,368 7,172 45,872
10 16,289 7,311 7,281 45,872 6,995 6,965 45,872
11 17,103 7,126 7,096 45,872 6,641 6,611 45,872
12 17,959 6,945 6,915 45,872 6,239 6,209 45,872
13 18,856 6,768 6,738 45,872 5,781 5,751 45,872
14 19,799 6,594 6,564 45,872 5,256 5,226 45,872
15 20,789 6,424 6,394 45,872 4,653 4,623 45,872
16 21,829 6,258 6,228 45,872 3,952 3,922 45,872
17 22,920 6,095 6,065 45,872 3,130 3,100 45,872
18 24,066 5,936 5,906 45,872 2,154 2,124 45,872
19 25,270 5,780 5,750 45,872 983 953 45,872
20 26,533 5,628 5,598 45,872 - - -
25 33,864 4,912 4,882 45,872 - - -
35 55,160 3,693 3,663 45,872 - - -
- ----------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
53 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGES: 55 MALE PREFERRED/55 FEMALE PREFERRED
INITIAL FACE AMOUNT: $45,872
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,565 9,785 45,872 10,565 9,785 45,872
2 11,025 11,588 10,808 45,872 11,588 10,808 45,872
3 11,576 12,706 11,926 45,872 12,706 11,926 45,872
4 12,155 13,928 13,298 45,872 13,928 13,298 45,872
5 12,763 15,263 14,633 45,872 15,263 14,633 45,872
6 13,401 16,722 16,292 45,872 16,722 16,292 45,872
7 14,071 18,316 17,886 45,872 18,316 17,886 45,872
8 14,775 20,056 19,826 45,872 20,056 19,826 45,872
9 15,513 21,957 21,727 45,872 21,957 21,727 45,872
10 16,289 24,035 24,005 45,872 24,035 24,005 45,872
11 17,103 26,347 26,317 45,872 26,347 26,317 45,872
12 17,959 28,884 28,854 45,872 28,884 28,854 45,872
13 18,856 31,675 31,645 45,872 31,675 31,645 45,872
14 19,799 34,754 34,724 45,872 34,754 34,724 45,872
15 20,789 38,161 38,131 45,872 38,161 38,131 45,872
16 21,829 41,941 41,911 48,232 41,941 41,911 48,232
17 22,920 46,104 46,074 52,097 46,104 46,074 52,097
18 24,066 50,681 50,681 56,256 50,681 50,681 56,256
19 25,270 55,751 55,751 60,768 55,751 55,751 60,768
20 26,533 61,300 61,300 66,816 61,300 61,300 66,816
25 33,864 98,192 98,192 104,083 98,192 98,192 104,083
35 55,160 248,302 248,302 260,717 242,132 242,132 254,238
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
54 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGES: 55 MALE PREFERRED/55 FEMALE PREFERRED
INITIAL FACE AMOUNT: $45,872
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
1 10,500 9,995 9,216 45,872 9,995 9,216 45,872
2 11,025 10,369 9,589 45,872 10,369 9,589 45,872
3 11,576 10,750 9,970 45,872 10,750 9,970 45,872
4 12,155 11,137 10,507 45,872 11,137 10,507 45,872
5 12,763 11,529 10,899 45,872 11,529 10,899 45,872
6 13,401 11,923 11,493 45,872 11,923 11,493 45,872
7 14,071 12,325 11,895 45,872 12,317 11,887 45,872
8 14,775 12,741 12,511 45,872 12,708 12,478 45,872
9 15,513 13,173 12,943 45,872 13,090 12,860 45,872
10 16,289 13,620 13,590 45,872 13,458 13,428 45,872
11 17,103 14,104 14,074 45,872 13,827 13,797 45,872
12 17,959 14,607 14,577 45,872 14,171 14,141 45,872
13 18,856 15,129 15,099 45,872 14,483 14,453 45,872
14 19,799 15,670 15,640 45,872 14,756 14,726 45,872
15 20,789 16,232 16,202 45,872 14,978 14,948 45,872
16 21,829 16,816 16,786 45,872 15,136 15,106 45,872
17 22,920 17,421 17,391 45,872 15,211 15,181 45,872
18 24,066 18,050 18,020 45,872 15,178 15,148 45,872
19 25,270 18,702 18,672 45,872 15,006 14,976 45,872
20 26,533 19,379 19,349 45,872 14,660 14,630 45,872
25 33,864 23,167 23,137 45,872 8,494 8,464 45,872
35 55,160 33,223 33,193 45,872 - - -
- --------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
55 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGES: 55 MALE PREFERRED/55 FEMALE PREFERRED
INITIAL FACE AMOUNT: $45,872
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
1 10,500 9,425 8,689 45,872 9,425 8,689 45,872
2 11,025 9,218 8,496 45,872 9,218 8,496 45,872
3 11,576 9,005 8,300 45,872 9,005 8,300 45,872
4 12,155 8,786 8,229 45,872 8,786 8,229 45,872
5 12,763 8,559 8,015 45,872 8,559 8,015 45,872
6 13,401 8,335 7,971 45,872 8,320 7,958 45,872
7 14,071 8,116 7,761 45,872 8,067 7,715 45,872
8 14,775 7,901 7,713 45,872 7,795 7,610 45,872
9 15,513 7,692 7,508 45,872 7,499 7,319 45,872
10 16,289 7,487 7,457 45,872 7,171 7,141 45,872
11 17,103 7,299 7,269 45,872 6,814 6,784 45,872
12 17,959 7,114 7,084 45,872 6,410 6,380 45,872
13 18,856 6,933 6,903 45,872 5,951 5,921 45,872
14 19,799 6,756 6,726 45,872 5,426 5,396 45,872
15 20,789 6,582 6,552 45,872 4,821 4,791 45,872
16 21,829 6,413 6,383 45,872 4,120 4,090 45,872
17 22,920 6,247 6,217 45,872 3,298 3,268 45,872
18 24,066 6,084 6,054 45,872 2,322 2,292 45,872
19 25,270 5,925 5,895 45,872 1,153 1,123 45,872
20 26,533 5,769 5,739 45,872 - - -
25 33,864 5,040 5,010 45,872 - - -
35 55,160 3,796 3,766 45,872 - - -
- ----------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
56 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGES: 65 MALE PREFERRED/65 FEMALE PREFERRED
INITIAL FACE AMOUNT: $28,491
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,928 9,902 28,491 10,928 9,902 28,491
2 11,025 11,890 10,872 28,491 11,890 10,872 28,491
3 11,576 12,920 11,914 28,491 12,920 11,914 28,491
4 12,155 14,027 13,187 28,491 14,023 13,183 28,491
5 12,763 15,233 14,413 28,491 15,207 14,387 28,491
6 13,401 16,545 15,949 28,491 16,478 15,883 28,491
7 14,071 17,973 17,408 28,491 17,847 17,283 28,491
8 14,775 19,526 19,199 28,491 19,325 18,999 28,491
9 15,513 21,217 20,934 28,491 20,929 20,646 28,491
10 16,289 23,057 23,027 28,491 22,681 22,651 28,491
11 17,103 25,265 25,235 28,491 24,815 24,785 28,491
12 17,959 27,730 27,700 29,670 27,220 27,190 29,125
13 18,856 30,444 30,414 32,574 29,884 29,854 31,975
14 19,799 33,425 33,395 35,430 32,810 32,780 34,778
15 20,789 36,681 36,651 38,881 36,005 35,975 38,165
16 21,829 40,261 40,231 42,273 39,519 39,489 41,494
17 22,920 44,167 44,137 46,375 43,353 43,323 45,520
18 24,066 48,423 48,393 50,844 47,529 47,499 49,905
19 25,270 53,088 53,088 55,742 52,071 52,071 54,674
20 26,533 58,239 58,239 61,151 57,035 57,035 59,886
25 33,864 92,533 92,533 97,159 88,634 88,634 93,065
35 55,160 233,593 233,593 235,928 214,875 214,875 217,023
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
57 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGES: 65 MALE PREFERRED/65 FEMALE PREFERRED
INITIAL FACE AMOUNT: $28,491
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,338 9,326 28,491 10,338 9,326 28,491
2 11,025 10,636 9,643 28,491 10,636 9,643 28,491
3 11,576 10,920 9,949 28,491 10,919 9,948 28,491
4 12,155 11,212 10,414 28,491 11,184 10,386 28,491
5 12,763 11,513 10,739 28,491 11,424 10,651 28,491
6 13,401 11,822 11,274 28,491 11,634 11,087 28,491
7 14,071 12,141 11,620 28,491 11,803 11,284 28,491
8 14,775 12,469 12,177 28,491 11,920 11,631 28,491
9 15,513 12,807 12,545 28,491 11,972 11,712 28,491
10 16,289 13,155 13,125 28,491 11,939 11,909 28,491
11 17,103 13,622 13,592 28,491 11,901 11,871 28,491
12 17,959 14,106 14,076 28,491 11,744 11,714 28,491
13 18,856 14,609 14,579 28,491 11,442 11,412 28,491
14 19,799 15,131 15,101 28,491 10,961 10,931 28,491
15 20,789 15,673 15,643 28,491 10,258 10,228 28,491
16 21,829 16,235 16,205 28,491 9,271 9,241 28,491
17 22,920 16,818 16,788 28,491 7,911 7,881 28,491
18 24,066 17,424 17,394 28,491 6,056 6,026 28,491
19 25,270 18,052 18,022 28,491 3,534 3,504 28,491
20 26,533 18,705 18,675 28,491 107 77 28,491
25 33,864 22,356 22,326 28,491 - - -
35 55,160 32,046 32,016 32,366 - - -
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
58 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 1
$10,000 INITIAL PREMIUM
ISSUE AGES: 65 MALE PREFERRED/65 FEMALE PREFERRED
INITIAL FACE AMOUNT: $28,491
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 9,748 8,768 28,491 9,748 8,768 28,491
2 11,025 9,452 8,524 28,491 9,452 8,524 28,491
3 11,576 9,148 8,272 28,491 9,136 8,261 28,491
4 12,155 8,852 8,158 28,491 8,794 8,105 28,491
5 12,763 8,565 7,914 28,491 8,421 7,780 28,491
6 13,401 8,287 7,842 28,491 8,006 7,576 28,491
7 14,071 8,016 7,605 28,491 7,539 7,151 28,491
8 14,775 7,754 7,530 28,491 7,005 6,799 28,491
9 15,513 7,499 7,300 28,491 6,382 6,209 28,491
10 16,289 7,251 7,221 28,491 5,650 5,620 28,491
11 17,103 7,067 7,037 28,491 4,821 4,791 28,491
12 17,959 6,887 6,857 28,491 3,817 3,787 28,491
13 18,856 6,711 6,681 28,491 2,601 2,571 28,491
14 19,799 6,539 6,509 28,491 1,125 1,095 28,491
15 20,789 6,370 6,340 28,491 - - -
16 21,829 6,205 6,175 28,491 - - -
17 22,920 6,043 6,013 28,491 - - -
18 24,066 5,885 5,855 28,491 - - -
19 25,270 5,730 5,700 28,491 - - -
20 26,533 5,579 5,549 28,491 - - -
25 33,864 4,869 4,839 28,491 - - -
35 55,160 3,658 3,628 28,491 - - -
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
59 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGES: 65 MALE PREFERRED/65 FEMALE PREFERRED
INITIAL FACE AMOUNT: $28,491
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 10,559 9,779 28,491 10,559 9,779 28,491
2 11,025 11,560 10,780 28,491 11,560 10,780 28,491
3 11,576 12,641 11,861 28,491 12,641 11,861 28,491
4 12,155 13,813 13,183 28,491 13,807 13,177 28,491
5 12,763 15,098 14,468 28,491 15,067 14,437 28,491
6 13,401 16,505 16,075 28,491 16,431 16,001 28,491
7 14,071 18,046 17,616 28,491 17,912 17,482 28,491
8 14,775 19,735 19,505 28,491 19,526 19,296 28,491
9 15,513 21,584 21,354 28,491 21,292 21,062 28,491
10 16,289 23,610 23,580 28,491 23,241 23,211 28,491
11 17,103 25,880 25,850 28,491 25,452 25,422 28,491
12 17,959 28,419 28,389 30,408 27,940 27,910 29,896
13 18,856 31,202 31,172 33,385 30,675 30,645 32,822
14 19,799 34,258 34,228 36,313 33,680 33,650 35,700
15 20,789 37,596 37,566 39,851 36,961 36,931 39,178
16 21,829 41,266 41,236 43,329 40,568 40,538 42,596
17 22,920 45,271 45,241 47,534 44,505 44,475 46,730
18 24,066 49,634 49,604 52,115 48,793 48,763 51,232
19 25,270 54,417 54,417 57,137 53,457 53,457 56,129
20 26,533 59,696 59,696 62,681 58,553 58,553 61,480
25 33,864 94,848 94,848 99,590 90,993 90,993 95,542
35 55,160 239,438 239,438 241,832 220,594 220,594 222,799
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
60 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGES: 65 MALE PREFERRED/65 FEMALE PREFERRED
INITIAL FACE AMOUNT: $28,491
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 9,989 9,210 28,491 9,989 9,210 28,491
2 11,025 10,341 9,561 28,491 10,341 9,561 28,491
3 11,576 10,686 9,906 28,491 10,683 9,903 28,491
4 12,155 11,042 10,412 28,491 11,010 10,380 28,491
5 12,763 11,412 10,782 28,491 11,317 10,687 28,491
6 13,401 11,795 11,365 28,491 11,598 11,168 28,491
7 14,071 12,192 11,762 28,491 11,844 11,414 28,491
8 14,775 12,604 12,374 28,491 12,043 11,813 28,491
9 15,513 13,030 12,800 28,491 12,182 11,952 28,491
10 16,289 13,472 13,442 28,491 12,244 12,214 28,491
11 17,103 13,951 13,921 28,491 12,229 12,199 28,491
12 17,959 14,448 14,418 28,491 12,099 12,069 28,491
13 18,856 14,964 14,934 28,491 11,829 11,799 28,491
14 19,799 15,499 15,469 28,491 11,387 11,357 28,491
15 20,789 16,055 16,025 28,491 10,731 10,701 28,491
16 21,829 16,631 16,601 28,491 9,801 9,771 28,491
17 22,920 17,230 17,200 28,491 8,513 8,483 28,491
18 24,066 17,851 17,821 28,491 6,749 6,719 28,491
19 25,270 18,496 18,466 28,491 4,344 4,314 28,491
20 26,533 19,165 19,135 28,491 1,069 1,039 28,491
25 33,864 22,910 22,880 28,491 - - -
35 55,160 32,850 32,820 33,178 - - -
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
61 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
-------------------------------------------------------------------
LAST SURVIVOR OPTION
POLICY OWNER OPTION: 2
$10,000 INITIAL PREMIUM
ISSUE AGES: 65 MALE PREFERRED/65 FEMALE PREFERRED
INITIAL FACE AMOUNT: $28,491
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
CURRENT CHARGES* GUARANTEED CHARGES**
END PREMIUMS -----------------------------------------------------------------------------
OF ACCUMULATED CASH CASH
POLICY AT 5% INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
<C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
1 10,500 9,419 8,683 28,491 9,419 8,683 28,491
2 11,025 9,190 8,471 28,491 9,190 8,471 28,491
3 11,576 8,951 8,250 28,491 8,938 8,237 28,491
4 12,155 8,718 8,165 28,491 8,657 8,107 28,491
5 12,763 8,490 7,951 28,491 8,340 7,810 28,491
6 13,401 8,267 7,907 28,491 7,979 7,630 28,491
7 14,071 8,050 7,698 28,491 7,563 7,231 28,491
8 14,775 7,837 7,650 28,491 7,076 6,904 28,491
9 15,513 7,629 7,447 28,491 6,497 6,337 28,491
10 16,289 7,426 7,396 28,491 5,804 5,774 28,491
11 17,103 7,239 7,209 28,491 4,978 4,948 28,491
12 17,959 7,055 7,025 28,491 3,977 3,947 28,491
13 18,856 6,875 6,845 28,491 2,766 2,736 28,491
14 19,799 6,699 6,669 28,491 1,296 1,266 28,491
15 20,789 6,527 6,497 28,491 - - -
16 21,829 6,359 6,329 28,491 - - -
17 22,920 6,194 6,164 28,491 - - -
18 24,066 6,033 6,003 28,491 - - -
19 25,270 5,875 5,845 28,491 - - -
20 26,533 5,720 5,690 28,491 - - -
25 33,864 4,995 4,965 28,491 - - -
35 55,160 3,760 3,730 28,491 - - -
- --------------------------------------------------------------------------------------------------
</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
POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY 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 POLICY 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.
62 - PROSPECTUS
<PAGE>
Report of Independent Public Accountants
To Hartford Life 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 and liabilities of Hartford
Life Insurance Company Putnam Capital Manager Trust Separate Account Five (the
Account) as of December 31, 1997, and the related statement of operations for
the year then ended and statements of changes in net assets for each of the two
years in the period then ended. 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 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 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 audits provide 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 Hartford Life Insurance Company
Putnam Capital Manager Trust Separate Account Five as of December 31, 1997, the
results of its operations for the year then ended and the changes in its net
assets for each of the two years in the period then ended, in conformity with
generally accepted accounting principles.
Hartford, Connecticut
February 16, 1998 ARTHUR ANDERSEN LLP
63 - PROSPECTUS
<PAGE>
PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE -- HARTFORD LIFE INSURANCE
COMPANY
Statement of Assets & Liabilities
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 31, 1997 Asia Diversified Global Global Growth High Yield
Pacific Income Asset Growth and Income Fund
Growth Fund Allocation Fund Fund Sub-Account
Fund Sub-Account Fund Sub-Account Sub-Account
Sub-Account Sub-Account
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments:
........................................................................................................................
PUTNAM VT ASIA PACIFIC GROWTH FUND
Shares 80,514
Cost $833,879
........................................................................................................................
Market Value: $ 740,730 $ -- $ -- $ -- $ -- $ --
........................................................................................................................
PUTNAM VT DIVERSIFIED INCOME FUND
Shares 143,001
Cost $1,551,529
........................................................................................................................
Market Value: -- 1,617,344 -- -- -- --
........................................................................................................................
PUTNAM VT GLOBAL ASSET ALLOCATION FUND
Shares 93,870
Cost $1,515,021
........................................................................................................................
Market Value: -- -- 1,761,008 -- -- --
........................................................................................................................
PUTNAM VT GLOBAL GROWTH FUND
Shares 413,698
Cost $6,327,394
........................................................................................................................
Market Value: -- -- -- 7,587,216 -- --
........................................................................................................................
PUTNAM VT GROWTH AND INCOME FUND
Shares 715,883
Cost $15,788,650
........................................................................................................................
Market Value: -- -- -- -- 20,273,813 --
........................................................................................................................
PUTNAM VT HIGH YIELD FUND
Shares 322,960
Cost $3,946,365
........................................................................................................................
Market Value: -- -- -- -- -- 4,398,715
........................................................................................................................
PUTNAM VT INTERNATIONAL GROWTH FUND
Shares 12,773
Cost $141,514
........................................................................................................................
Market Value: -- -- -- -- -- --
........................................................................................................................
PUTNAM VT INTERNATIONAL GROWTH AND INCOME FUND
Shares 14,505
Cost $169,671
........................................................................................................................
Market Value: -- -- -- -- -- --
........................................................................................................................
Due From Hartford Life Insurance Company -- -- -- 15,330 44,525 15,072
........................................................................................................................
Receivable from fund shares sold -- -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 740,730 1,617,344 1,761,008 7,602,546 20,318,338 4,413,787
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Due to Hartford Life Insurance Company -- -- -- -- -- --
........................................................................................................................
Payable for fund shares purchased -- -- -- 15,330 44,524 15,073
........................................................................................................................
TOTAL LIABILITIES -- -- -- 15,330 44,524 15,073
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE CONTRACT LIABILITIES) $ 740,730 $1,617,344 $1,761,008 $7,587,216 $20,273,814 $4,398,714
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
December 31, 1997 International International
Growth Fund Growth and
Sub-Account Income Fund
Sub-Account
- -----------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investments:
...............................................
PUTNAM VT ASIA PACIFIC GROWTH FUND
Shares 80,514
Cost $833,879
...............................................
Market Value: $ -- $ --
...............................................
PUTNAM VT DIVERSIFIED INCOME FUND
Shares 143,001
Cost $1,551,529
...............................................
Market Value: -- --
...............................................
PUTNAM VT GLOBAL ASSET ALLOCATION FUND
Shares 93,870
Cost $1,515,021
...............................................
Market Value: -- --
...............................................
PUTNAM VT GLOBAL GROWTH FUND
Shares 413,698
Cost $6,327,394
...............................................
Market Value: -- --
...............................................
PUTNAM VT GROWTH AND INCOME FUND
Shares 715,883
Cost $15,788,650
...............................................
Market Value: -- --
...............................................
PUTNAM VT HIGH YIELD FUND
Shares 322,960
Cost $3,946,365
...............................................
Market Value: -- --
...............................................
PUTNAM VT INTERNATIONAL GROWTH FUND
Shares 12,773
Cost $141,514
...............................................
Market Value: 145,994 --
...............................................
PUTNAM VT INTERNATIONAL GROWTH AND INCOME FUND
Shares 14,505
Cost $169,671
...............................................
Market Value: -- 167,244
...............................................
Due From Hartford Life Insurance Company -- --
...............................................
Receivable from fund shares sold -- 20,086
- ------------------------------------------------------------------------------------------------------
TOTAL ASSETS 145,994 187,330
- -------------------------------------------------------------------------------------------------------------------
LIABILITIES
Due to Hartford Life Insurance Company -- 20,086
...............................................
Payable for fund shares purchased -- --
...............................................
TOTAL LIABILITIES -- 20,086
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE CONTRACT LIABILITIES) $ 145,994 $ 167,244
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
64 - PROSPECTUS
<PAGE>
PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE -- HARTFORD LIFE INSURANCE
COMPANY
Statement of Assets & Liabilities (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 31, 1997 International Money New New U.S. Utilities
New Market Opportunities Value Government and Growth
Opportunities Fund Fund Fund High and Income
Fund Sub-Account Sub-Account Sub-Account Quality Bond Fund
Sub-Account Fund Sub-Account
Sub-Account
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
........................................................................................................................
PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES
FUND
Shares 19,735
Cost $209,969
........................................................................................................................
Market Value: $ 196,556 $ -- $ -- $ -- $ -- $ --
........................................................................................................................
PUTNAM VT MONEY MARKET FUND
Shares 3,882,579
Cost $3,882,579
........................................................................................................................
Market Value: -- $3,882,579 -- -- -- --
........................................................................................................................
PUTNAM VT NEW OPPORTUNITIES FUND
Shares 493,099
Cost $7,949,648
........................................................................................................................
Market Value: -- -- $10,468,495 -- -- --
........................................................................................................................
PUTNAM VT NEW VALUE FUND
Shares 24,732
Cost $276,299
........................................................................................................................
Market Value: -- -- -- $ 290,847 -- --
........................................................................................................................
PUTNAM VT U.S. GOVERNMENT AND
HIGH QUALITY FUND
Shares 111,765
Cost $1,464,129
........................................................................................................................
Market Value: -- -- -- -- $1,499,887 --
........................................................................................................................
PUTNAM VT UTILITIES GROWTH & INCOME FUND
Shares 115,380
Cost $1,522,991
........................................................................................................................
Market Value: -- -- -- -- -- $1,977,616
........................................................................................................................
PUTNAM VT VISTA FUND
Shares 14,832
Cost $162,542
........................................................................................................................
Market Value: -- -- -- -- -- --
........................................................................................................................
PUTNAM VT VOYAGER FUND
Shares 331,020
Cost $10,101,037
........................................................................................................................
Market Value: -- -- -- -- -- --
........................................................................................................................
Due From Hartford Life Insurance Company -- -- 388 -- -- --
........................................................................................................................
Receivable from fund shares sold -- 100,396 -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 196,556 3,982,975 10,468,883 290,847 1,499,887 1,977,616
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Due to Hartford Life Insurance Company -- 100,377 -- -- -- --
........................................................................................................................
Payable for fund shares purchased -- -- 388 -- -- --
........................................................................................................................
TOTAL LIABILITIES -- 100,377 388 -- -- --
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE CONTRACT
LIABILITIES) $ 196,556 $3,882,598 $10,468,495 $ 290,847 $1,499,887 $1,977,616
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
December 31, 1997 Vista Voyager
Fund Fund
Sub-Account Sub-Account
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments:
..........................................
PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES
FUND
Shares 19,735
Cost $209,969
..........................................
Market Value: $ -- $ --
..........................................
PUTNAM VT MONEY MARKET FUND
Shares 3,882,579
Cost $3,882,579
..........................................
Market Value: -- --
..........................................
PUTNAM VT NEW OPPORTUNITIES FUND
Shares 493,099
Cost $7,949,648
..........................................
Market Value: -- --
..........................................
PUTNAM VT NEW VALUE FUND
Shares 24,732
Cost $276,299
..........................................
Market Value: -- --
..........................................
PUTNAM VT U.S. GOVERNMENT AND
HIGH QUALITY FUND
Shares 111,765
Cost $1,464,129
..........................................
Market Value: -- --
..........................................
PUTNAM VT UTILITIES GROWTH & INCOME FUND
Shares 115,380
Cost $1,522,991
..........................................
Market Value: -- --
..........................................
PUTNAM VT VISTA FUND
Shares 14,832
Cost $162,542
..........................................
Market Value: $ 182,730 --
..........................................
PUTNAM VT VOYAGER FUND
Shares 331,020
Cost $10,101,037
..........................................
Market Value: -- $12,936,276
..........................................
Due From Hartford Life Insurance Company -- 20,187
..........................................
Receivable from fund shares sold -- --
- -------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 182,730 12,956,463
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Due to Hartford Life Insurance Company -- --
..........................................
Payable for fund shares purchased -- 20,187
..........................................
TOTAL LIABILITIES -- 20,187
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE CONTRACT
LIABILITIES) $ 182,730 $12,936,276
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
65 - PROSPECTUS
<PAGE>
PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE -- HARTFORD LIFE INSURANCE
COMPANY
Statement of Assets & Liabilities (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Units
Owned by Unit Contract
December 31, 1997 Participants Price Liability
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Deferred life contracts in the accumulation period:
Individual Sub-Accounts:
....................................................................................................
Asia Pacific Growth Fund Sub-Account 77,764 $ 9.525374 $ 740,730
....................................................................................................
Diversified Income Fund Sub-Account 115,604 13.990371 1,617,344
....................................................................................................
Global Asset Allocation Fund Sub-Account 101,979 17.268298 1,761,008
....................................................................................................
Global Growth Fund Sub-Account 485,154 15.638791 7,587,216
....................................................................................................
Growth and Income Fund Sub-Account 986,326 20.554886 20,273,814
....................................................................................................
High Yield Fund Sub-Account 288,223 15.261496 4,398,714
....................................................................................................
International Growth Fund Sub-Account 12,571 11.613622 145,994
....................................................................................................
International Growth and Income Fund Sub-Account 14,005 11.941331 167,244
....................................................................................................
International New Opportunities Fund Sub-Account 19,676 9.989509 196,556
....................................................................................................
Money Market Fund Sub-Account 3,331,393 1.165458 3,882,598
....................................................................................................
New Opportunities Fund Sub-Account 529,522 19.769721 10,468,495
....................................................................................................
New Value Fund Sub-Account 24,732 11.759921 290,847
....................................................................................................
U.S. Government and High Quality Bond Fund Sub-Account 111,832 13.411936 1,499,887
....................................................................................................
Utilities Growth and Income Fund Sub-Account 102,512 19.291514 1,977,616
....................................................................................................
Vista Fund Sub-Account 14,830 12.321288 182,730
....................................................................................................
Voyager Fund Sub-Account 639,344 20.233655 12,936,276
- -----------------------------------------------------------------------------------------------------
GRAND TOTAL CONTRACT LIABILITY (ALL SUB-ACCOUNTS) $68,127,069
- -----------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
66 - PROSPECTUS
<PAGE>
PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE -- HARTFORD LIFE INSURANCE
COMPANY
Statement of Operations
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the year ended Asia Pacific Diversified Global Asset Global Growth
December 31, 1997 Growth Fund Income Fund Allocation Growth Fund and Income
Sub-Account Sub-Account Fund Sub-Account Fund
Sub-Account Sub-Account
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $18,881 $ 62,554 $ 45,684 $ 155,488 $ 314,190
......................................................................................................................
Capital gains income -- 9,861 78,086 167,244 764,750
......................................................................................................................
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
......................................................................................................................
Net realized gain (loss) on security
transactions (4,716) 208 985 (6,243) (11,346)
......................................................................................................................
Net unrealized appreciation (depreciation)
of investments during the period (145,844) 21,960 137,965 601,162 2,573,528
......................................................................................................................
Net gain (loss) on investments (150,560) 22,168 138,950 594,919 2,562,182
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(131,679) $ 94,583 $ 262,720 $ 917,651 $ 3,641,122
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
For the year ended High Yield International International
December 31, 1997 Fund Growth Fund Growth and
Sub-Account Sub-Account Income
Fund
Sub-Account*
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $246,290 $2,245 $ 4,968
............................................
Capital gains income 28,559 -- --
............................................
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
............................................
Net realized gain (loss) on security
transactions 2,554 (952) 261
............................................
Net unrealized appreciation (depreciation)
of investments during the period 241,895 4,480 (2,427)
............................................
Net gain (loss) on investments 244,449 3,528 (2,166)
- ---------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $519,298 $5,773 $ 2,802
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
* From inception, January 2, 1997 to December 31, 1997.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
67 - PROSPECTUS
<PAGE>
PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE -- HARTFORD LIFE INSURANCE
COMPANY
Statement of Operations (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the year ended International Money New New U.S. Utilities
December 31, 1997 New Market Opportunities Value Government and Growth
Opportunities Fund Fund Fund High and Income
Fund Sub-Account Sub-Account Sub-Account* Quality Bond Fund
Sub-Account* Fund Sub-Account
Sub-Account
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 571 $ 187,676 $ -- $ -- $ 83,063 $ 56,715
............................................................................................................................
Capital gains income -- -- -- -- -- 77,339
............................................................................................................................
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
............................................................................................................................
Net realized gain (loss) on security
transactions (583) -- (5,661) (2,943) 1,430 4,906
............................................................................................................................
Net unrealized appreciation (depreciation)
of investments during the period (13,413) -- 1,909,685 14,548 25,565 280,202
............................................................................................................................
Net gain (loss) on investments (13,996) -- 1,904,024 11,605 26,995 285,108
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (13,425) $ 187,676 $1,904,024 $ 11,605 $ 110,058 $ 419,162
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
For the year ended Vista Voyager
December 31, 1997 Fund Fund
Sub-Account* Sub-Account
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 15 $ 20,325
...........................................
Capital gains income -- 438,026
...........................................
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
...........................................
Net realized gain (loss) on security
transactions (6,610) 1,878
...........................................
Net unrealized appreciation (depreciation)
of investments during the period 20,188 2,144,618
...........................................
Net gain (loss) on investments 13,578 2,146,496
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 13,593 $2,604,847
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* From inception, January 2, 1997 to December 31, 1997.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
68 - PROSPECTUS
<PAGE>
PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE -- HARTFORD LIFE INSURANCE
COMPANY
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the year ended Asia Diversified Global Asset Global Growth High Yield
December 31, 1997 Pacific Income Fund Allocation Growth Fund and Income Fund
Growth Fund Sub-Account Fund Sub-Account Fund Sub-Account
Sub-Account Sub-Account Sub-Account
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 18,881 $ 62,554 $ 45,684 $ 155,488 $ 314,190 $ 246,290
........................................................................................................................
Capital gains income -- 9,861 78,086 167,244 764,750 28,559
........................................................................................................................
Net realized gain (loss) on
security transactions (4,716) 208 985 (6,243) (11,346) 2,554
........................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period (145,844) 21,960 137,965 601,162 2,573,528 241,895
........................................................................................................................
Net increase (decrease) in net
assets resulting from operations (131,679) 94,583 262,720 917,651 3,641,122 519,298
........................................................................................................................
UNIT TRANSACTIONS:
Purchases -- -- -- -- -- --
........................................................................................................................
Net transfers (5,780) 499,003 345,410 880,302 3,372,228 738,928
........................................................................................................................
Surrenders (17,461) (27,995) (30,466) (273,522) (399,306) (149,096)
........................................................................................................................
Loan withdrawals (7,128) (1,526) (21,786) (43,107) (95,139) 16,923
........................................................................................................................
Cost of insurance (6,464) (9,419) (10,616) (49,753) (114,975) (26,321)
........................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions (36,833) 460,063 282,542 513,920 2,762,808 580,434
........................................................................................................................
Total increase (decrease) in net
assets (168,512) 554,646 545,262 1,431,571 6,403,930 1,099,732
........................................................................................................................
NET ASSETS:
Beginning of period 909,242 1,062,698 1,215,746 6,155,645 13,869,884 3,298,982
- -------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $740,730 $ 1,617,344 $ 1,761,008 $ 7,587,216 $20,273,814 $ 4,398,714
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
For the year ended International International
December 31, 1997 Growth Fund Growth and
Sub-Account* Income Fund
Sub-Account*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ 2,245 $ 4,968
..................................
Capital gains income -- --
..................................
Net realized gain (loss) on
security transactions (952) 261
..................................
Net unrealized appreciation
(depreciation) of investments
during the period 4,480 (2,427)
..................................
Net increase (decrease) in net
assets resulting from operations 5,773 2,802
..................................
UNIT TRANSACTIONS:
Purchases 1,000 1,000
..................................
Net transfers 141,118 164,247
..................................
Surrenders (1,312) (664)
..................................
Loan withdrawals -- --
..................................
Cost of insurance (585) (141)
..................................
Net increase (decrease) in net
assets resulting from unit
transactions 140,221 164,442
..................................
Total increase (decrease) in net
assets 145,994 167,244
..................................
NET ASSETS:
Beginning of period -- --
- -------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $145,994 $167,244
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* From inception, January 2, 1997 to December 31, 1997.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
69 - PROSPECTUS
<PAGE>
PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE -- HARTFORD LIFE INSURANCE
COMPANY
Statement of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the year ended International Money New New U.S. Utilities Vista Voyager
December 31, 1997 New Market Opportunities Value Government and Growth Fund Fund
Opportunities Fund Fund Fund High and Income Sub-Account* Sub-Account
Fund Sub-Account Sub-Account Sub-Account* Quality Bond Fund
Sub-Account* Fund Sub-Account
Sub-Account
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss) $ 571 $ 187,676 $ -- $ -- $ 83,063 $ 56,715 $ 15 $ 20,325
.................................................................................................................................
Capital gains income -- -- -- -- -- 77,339 -- 438,026
.................................................................................................................................
Net realized gain (loss)
on security
transactions (583) -- (5,661) (2,943) 1,430 4,906 (6,610) 1,878
.................................................................................................................................
Net unrealized
appreciation
(depreciation) of
investments during the
period (13,413) -- 1,909,685 14,548 25,565 280,202 20,188 2,144,618
.................................................................................................................................
Net increase (decrease)
in net assets
resulting from
operations (13,425) 187,676 1,904,024 11,605 110,058 419,162 13,593 2,604,847
.................................................................................................................................
UNIT TRANSACTIONS:
Purchases 1,000 9,479,089 -- 1,000 -- -- 1,000 --
.................................................................................................................................
Net transfers 211,827 (9,663,164) 1,158,747 287,299 135,429 126,503 170,550 1,437,360
.................................................................................................................................
Surrenders (2,118) (119,388) (294,057) (8,127) (24,042) (29,456) (1,924) (346,502)
.................................................................................................................................
Loan withdrawals (1) (193,526) (72,749) -- (1,568) (10,900) -- (87,887)
.................................................................................................................................
Cost of insurance (727) (31,033) (60,495) (930) (9,754) (12,352) (489) (73,765)
.................................................................................................................................
Net increase (decrease)
in net assets
resulting from unit
transactions 209,981 (528,022) 731,446 279,242 100,065 73,795 169,137 929,206
.................................................................................................................................
Total increase
(decrease) in net
assets 196,556 (340,346) 2,635,470 290,847 210,123 492,957 182,730 3,534,053
NET ASSETS:
Beginning of period -- 4,222,944 7,833,025 -- 1,289,764 1,484,659 -- 9,402,223
- -----------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 196,556 $3,882,598 $10,468,495 $ 290,847 $1,499,887 $1,977,616 $ 182,730 $12,936,276
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* From inception, January 2, 1997 to December 31, 1997.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
70 - PROSPECTUS
<PAGE>
PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE -- HARTFORD LIFE INSURANCE
COMPANY
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the year ended Asia Diversified Global Asset Global Growth High Yield
December 31, 1996 Pacific Income Fund Allocation Growth Fund and Income Fund
Growth Fund Sub-Account Fund Sub-Account Fund Sub-Account
Sub-Account Sub-Account Sub-Account
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 6,265 $ 45,501 $ 31,236 $ 78,177 $ 341,685 $ 163,141
........................................................................................................................
Capital gains income -- -- 20,497 113,882 154,926 --
........................................................................................................................
Net realized gain(loss) on
security transactions 40 1,025 235 2,172 2,902 1,565
........................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 45,583 30,289 79,432 532,876 1,519,519 157,435
........................................................................................................................
Net increase (decrease) in net
assets resulting from operations 51,888 76,815 131,400 727,107 2,019,032 322,141
........................................................................................................................
UNIT TRANSACTIONS:
Purchases -- -- -- -- -- --
........................................................................................................................
Net transfers 663,703 678,615 565,848 2,987,293 7,006,259 1,317,440
........................................................................................................................
Surrenders (12,187) (13,614) (14,996) (92,194) (298,205) (83,011)
........................................................................................................................
Loan withdrawals (49,778) (4,620) (12,089) (56,759) (46,401) (35,554)
........................................................................................................................
Cost of insurance (4,323) (6,234) (5,795) (31,793) (65,790) (18,659)
........................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions 597,415 654,147 532,968 2,806,547 6,595,863 1,180,216
........................................................................................................................
Total increase (decrease) in net
assets 649,303 730,962 664,368 3,533,654 8,614,895 1,502,357
........................................................................................................................
NET ASSETS:
Beginning of period 259,939 331,736 551,378 2,621,991 5,254,989 1,796,625
- ------------------------------------------------------------------------------------------------------------------
END OF PERIOD $909,242 $ 1,062,698 $ 1,215,746 $ 6,155,645 $13,869,884 $ 3,298,982
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
71 - PROSPECTUS
<PAGE>
PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE -- HARTFORD LIFE INSURANCE
COMPANY
Statement of Changes in Net Assets (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the year ended Money New U.S. Utilities Voyager
December 31, 1996 Market Opportunities Government Growth Fund
Fund Fund and High and Income Sub-Account
Sub-Account Sub-Account Quality Fund
Bond Sub-Account
Fund
Sub-Account
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 203,725 $ -- $ 58,449 $ 35,664 $ 103,280
................................................................................................................
Capital gains income -- -- -- -- 200,850
................................................................................................................
Net realized gain(loss) on security
transactions -- 1,419 (1,338) 749 1,457
................................................................................................................
Net unrealized appreciation
(depreciation) of investments during
the period -- 325,785 (12,239) 144,600 388,867
................................................................................................................
Net increase (decrease) in net assets
resulting from operations 203,725 327,204 44,872 181,013 694,454
................................................................................................................
UNIT TRANSACTIONS:
Purchases 24,879,746 -- -- -- --
................................................................................................................
Net transfers (24,660,575) 4,703,270 675,522 725,689 5,336,934
................................................................................................................
Surrenders (89,459) (170,255) (16,556) (22,040) (138,165)
................................................................................................................
Loan withdrawals (1,308,364) (37,499) (19,784) (29,987) (66,110)
................................................................................................................
Cost of insurance (42,734) (38,655) (7,295) (8,113) (45,984)
................................................................................................................
Net increase (decrease) in net assets
resulting from unit transactions (1,221,386) 4,456,861 631,887 665,549 5,086,675
................................................................................................................
Total increase (decrease) in net assets (1,017,661) 4,784,065 676,759 846,562 5,781,129
................................................................................................................
NET ASSETS:
Beginning of period 5,240,605 3,048,960 613,005 638,097 3,621,094
- ----------------------------------------------------------------------------------------------------------
END OF PERIOD $ 4,222,944 $7,833,025 $1,289,764 $ 1,484,659 $ 9,402,223
- ----------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
72 - PROSPECTUS
<PAGE>
PUTNAM CAPITAL MANAGER TRUST SEPARATE ACCOUNT FIVE -- HARTFORD LIFE INSURANCE
COMPANY
Notes to Financial Statements
December 31, 1997
1. ORGANIZATION:
Putnam Capital Manager Trust Separate Account Five (the Account) is a separate
investment account within Hartford Life 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
invests deposits by variable life 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 investments in shares of the Funds are valued at
the closing net asset value per share as determined by the appropriate Fund as
of December 31, 1997.
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 principles 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, and administrative fees.
These charges are deducted through termination of units of interest from
applicable contract owners' accounts, in accordance with the terms of the
contracts.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
73 - PROSPECTUS
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Hartford Life Insurance Company:
We have audited the accompanying Consolidated Balance Sheets of Hartford Life
Insurance Company (the "Company") and subsidiaries as of December 31, 1997 and
1996, and the related Consolidated Statements of Income, Stockholder's Equity
and Cash Flows for each of the three years in the period ended December 31,
1997. These consolidated financial statements and the schedules referred to
below are the responsibility of the Company's management. Our responsibility is
to express an opinion on these financial statements and schedules 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 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 audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Hartford Life
Insurance Company and subsidiaries as of December 31, 1997 and 1996, and the
results of their operations and their cash flows for each of the three years in
the period ended December 31, 1997, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The schedules listed in Index to
Consolidated Financial Statements and Schedules are presented for the purpose of
complying with the Securities and Exchange Commission's rules and are not part
of the basic financial statements. These schedules have been subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, fairly state in all material respects the financial data
required to be set forth therein in relation to the basic financial statements
taken as a whole.
Hartford, Connecticut
January 27, 1998 ARTHUR ANDERSEN LLP
74 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN MILLIONS)
--------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
<S> <C> <C> <C> <C>
---------------------------------------------
<CAPTION>
1997 1996 1995
<S> <C> <C> <C> <C>
---------------------------------------------
REVENUES
Premiums and other considerations $1,637 $1,705 $1,487
Net investment income 1,368 1,397 1,328
Net realized capital gains (losses) 4 (213) (11)
---------------------------------------------
TOTAL REVENUES 3,009 2,889 2,804
---------------------------------------------
BENEFITS, CLAIMS AND EXPENSES
---------------------------------------------
Benefits, claims and claim adjustment expenses 1,379 1,535 1,422
Amortization of deferred policy acquisition
costs 335 234 199
Dividends to policyholders 240 635 675
Other expenses 586 427 317
---------------------------------------------
TOTAL BENEFITS, CLAIMS AND EXPENSES 2,540 2,831 2,613
---------------------------------------------
Income before income tax expense 469 58 191
Income tax expense 167 20 62
---------------------------------------------
NET INCOME $ 302 $ 38 $ 129
---------------------------------------------
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
75 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN MILLIONS, EXCEPT FOR SHARE DATA)
--------------------------------------------------------
<TABLE>
<CAPTION>
AS OF DECEMBER
31,
<S> <C> <C> <C>
----------------------------
1997 1996
----------------------------
ASSETS
Investments
Fixed maturities, available for sale, at fair
value (amortized cost of $13,885 and $13,579) $14,176 $13,624
Equity securities, at fair value 180 119
Policy loans, at outstanding balance 3,756 3,836
Other investments, at cost 47 56
----------------------------
Total investments 18,159 17,635
----------------------------
Cash 54 43
Premiums receivable and agents' balances 18 137
Accrued investment income 330 407
Reinsurance recoverables 6,325 6,259
Deferred policy acquisition costs 3,315 2,760
Deferred income tax 348 474
Other assets 352 357
Separate account assets 69,055 49,690
----------------------------
TOTAL ASSETS $97,956 $77,762
----------------------------
LIABILITIES
Future policy benefits $ 3,270 $ 2,474
Other policyholder funds 21,034 22,134
Other liabilities 2,254 1,572
Separate account liabilities 69,055 49,690
----------------------------
TOTAL LIABILITIES $95,613 $75,870
----------------------------
STOCKHOLDER'S EQUITY
Common stock - 1,000 shares authorized, issued
and outstanding,
par value $5,690 6 6
Additional paid in capital 1,045 1,045
Net unrealized capital gains on securities, net
of tax 179 30
Retained earnings 1,113 811
----------------------------
TOTAL STOCKHOLDER'S EQUITY 2,343 1,892
----------------------------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $97,956 $77,762
----------------------------
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
76 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY
(IN MILLIONS)
--------------------------------------------------------
<TABLE>
<CAPTION>
Net Unrealized
Capital
Additional Gains (Losses) Total
Common Paid In on Securities, Retained Stockholder's
Stock Capital Net of Tax Earnings Equity
<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------
BALANCE, DECEMBER 31, 1994 $6 $ 826 $(654) $ 644 $ 822
Net income - - - 129 129
Capital contribution - 181 - - 181
Change in net unrealized capital gains
(losses) on securities, net of tax - - 597 - 597
-------------------------------------------------------------------
BALANCE, DECEMBER 31, 1995 6 1,007 (57) 773 1,729
Net income - - - 38 38
Capital contribution - 38 - - 38
Change in net unrealized capital gains
(losses) on securities, net of tax - - 87 - 87
-------------------------------------------------------------------
BALANCE, DECEMBER 31, 1996 6 1,045 30 811 1,892
Net income - - - 302 302
Change in net unrealized capital gains
(losses) on securities, net of tax - - 149 - 149
-------------------------------------------------------------------
BALANCE, DECEMBER 31, 1997 $6 $1,045 $179 $1,113 $2,343
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
77 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (IN MILLIONS)
-------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER
31,
<S> <C> <C> <C> <C>
----------------------------------------
1997 1996 1995
----------------------------------------
OPERATING ACTIVITIES
Net income $ 302 $ 38 $ 129
ADJUSTMENTS TO RECONCILE NET INCOME TO CASH PROVIDED
BY OPERATING ACTIVITIES
Depreciation and amortization 8 14 21
Net realized capital (gains) losses (4) 213 11
Decrease (increase) in deferred income taxes 40 (102) (172)
Increase in deferred policy acquisition costs (555) (572) (379)
Decrease (increase) in premiums receivable and agents'
balances 119 10 (81)
Decrease (increase) in accrued investment income 77 (13) (16)
Decrease (increase) in other assets 52 (132) (177)
(Increase) decrease in reinsurance recoverables (416) 179 (35)
Increase (decrease) in liabilities for future policy
benefits 796 (92) 483
Increase in other liabilities 379 477 281
----------------------------------------
CASH PROVIDED BY OPERATING ACTIVITIES 798 20 65
----------------------------------------
INVESTING ACTIVITIES
Purchases of fixed maturity investments (6,231) (5,747) (6,228)
Sales of fixed maturity investments 4,232 3,459 4,845
Maturities and principal paydowns of fixed maturity
investments 2,329 2,693 1,741
Net sales (purchases) of other investments 24 (107) (871)
Net (purchases) sales of short-term investments (638) 84 (24)
----------------------------------------
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES (284) 382 (537)
----------------------------------------
FINANCING ACTIVITIES
Capital contribution - 38 -
Net (disbursements for) receipts from investment and
universal life-type contracts (charged against) credited
to policyholder accounts (503) (443) 498
----------------------------------------
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (503) (405) 498
----------------------------------------
Increase (decrease) in cash 11 (3) 26
Cash - beginning of year 43 46 20
----------------------------------------
CASH - END OF YEAR $ 54 $ 43 $ 46
----------------------------------------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
NET CASH PAID DURING THE YEAR FOR:
Income taxes $ 9 $ 189 $ 162
NONCASH FINANCING ACTIVITIES:
Capital contribution $ - $ - $ 181
----------------------------------------
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
78 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLAR AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA UNLESS OTHERWISE STATED)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND DESCRIPTION OF BUSINESS
These consolidated financial statements include Hartford Life Insurance Company
and its wholly-owned subsidiaries (the "Company"), ITT Hartford Life and Annuity
Insurance Company ("ILA") and ITT Hartford International Life Reassurance
Corporation ("HLRe"), formerly American Skandia Life Reinsurance Corporation.
The Company is a wholly-owned subsidiary of Hartford Life and Accident Insurance
Company ("HLA"), a wholly-owned subsidiary of Hartford Life, Inc. ("Hartford
Life"). Hartford Life is a direct subsidiary of Hartford Accident and Indemnity
Company ("HA&I"), an indirect subsidiary of The Hartford Financial Services
Group, Inc. ("The Hartford"). On February 10, 1997, Hartford Life filed a
registration statement, as amended, with the Securities and Exchange Commission
relating to an Initial Public Offering ("IPO") of the Hartford Life's Class A
Common Stock. Pursuant to the IPO on May 22, 1997, Hartford Life sold to the
public 26 million shares at $28.25 per share and received net proceeds of $687.
Of the proceeds, $527 was used to retire debt related to Hartford Life's
outstanding promissory notes and line of credit with the remaining $160
contributed by Hartford Life to HLA to support growth in its core businesses.
On December 19, 1995, ITT Industries, Inc. (formerly ITT Corporation) ("ITT")
distributed all the outstanding shares of capital stock of The Hartford to ITT
stockholders of record on such date. As a result, The Hartford became an
independent, publicly traded company.
Along with its parent, the Company is a leading insurance and financial services
company which provides (a) investment products such as individual variable
annuities and fixed market value adjusted annuities, deferred compensation and
retirement plan services and mutual funds for savings and retirement needs; (b)
life insurance for income protection and estate planning; and (c) employee
benefits products such as group life and group disability insurance and
corporate owned life insurance.
2. SIGNIFICANT ACCOUNTING POLICIES
(A) BASIS OF PRESENTATION
These consolidated financial statements present the financial position,
results of operations and cash flows of the Company. All material intercompany
transactions and balances between the Company, its subsidiaries and affiliates
have been eliminated. The consolidated financial statements are prepared on the
basis of generally accepted accounting principles which differ materially from
the statutory accounting practices prescribed by various insurance regulatory
authorities.
The preparation of financial statements, in conformity with generally accepted
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 reporting period.
Actual results could differ from those estimates. The most significant estimates
include those used in determining deferred policy acquisition costs and the
liability for future policy benefits and other policyholder funds. Although some
variability is inherent in these estimates, management believes the amounts
provided are adequate.
Certain reclassifications have been made to prior year financial information to
conform to the current year presentation.
(B) CHANGES IN ACCOUNTING PRINCIPLES
In December 1997, the American Institute of Certified Public Accountants
("AICPA") issued Statement of Position ("SOP") No. 97-3 "Accounting by Insurance
and Other Enterprises for Insurance Related Assessments". This SOP provides
guidance on accounting by insurance and other enterprises for assessments
related to insurance activities. Specifically, the SOP provides guidance on when
a guaranty fund or other assessment should be recognized, how to measure the
liability, and what information should be disclosed. This SOP will be effective
for fiscal years beginning after December 15, 1998. Adoption of SOP 97-3 is not
expected to have a material impact on the Company's financial condition or
results of operations.
On November 14, 1996, the Emerging Issues Task Force ("EITF") reached a
consensus on Issue No. 96-12, "Recognition of Interest Income and Balance Sheet
Classification of Structured Notes". This EITF issue requires companies to
record income on certain structured securities on a retrospective interest
method. The Company adopted EITF No. 96-12 for structured securities acquired
after November 14, 1996. Adoption of EITF No. 96-12 did not have a material
effect on the Company's financial condition or results of operations.
In June 1996, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 125, "Accounting for Transfers
and Servicing of Financial Assets and Extinguishment of Liabilities" which is
effective for transfers and servicing of financial assets and extinguishments of
liabilities occurring after December 31, 1996. This statement established
criteria for determining whether transferred assets should be accounted for as
sales or secured borrowings. Subsequently, in December 1996, the FASB issued
SFAS No. 127, "Deferral of Effective Date of Certain Provisions of FASB
Statement
79 - PROSPECTUS
<PAGE>
No. 125", which defers the effective date of certain provisions of SFAS No. 125
for one year. Adoption of SFAS No. 125 is not expected to have a material effect
on the Company's financial condition or results of operations.
Effective January 1, 1996, the Company adopted SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of".
This statement establishes accounting standards for the impairment of long-lived
assets, certain identifiable intangibles, and goodwill related to those assets
to be held and used and for long-lived assets and certain identifiable
intangibles to be disposed of. Adoption of SFAS No. 121 did not have a material
effect on the Company's financial condition or results of operations.
The Company's cash flows were not impacted by these changes in accounting
principles.
(C) REVENUE RECOGNITION
Revenues for universal life-type policies and investment products consist of
policy charges for the cost of insurance, policy administration and surrender
charges assessed to policy account balances and are recognized in the period in
which services are provided. Premiums for traditional life insurance and
disability policies are recognized as revenues when they are due from
policyholders.
(D) FUTURE POLICY BENEFITS AND OTHER POLICYHOLDER FUNDS
Liabilities for future policy benefits are computed by the net level premium
method using interest rate assumptions varying from 3% to 11% and withdrawal and
mortality assumptions appropriate at the time the policies were issued. Health
reserves, which are the result of sales of group long-term and short-term
disability, stop loss, Medicare Supplement and individual disability products,
are stated at amounts determined by estimates on individual cases and estimates
of unreported claims based on past experience. Liabilities for universal
life-type and investment contracts are stated at policyholder account values
before surrender charges.
(E) POLICYHOLDER REALIZED CAPITAL GAINS AND LOSSES
Realized capital gains and losses on security transactions associated with
the Company's immediate participation guaranteed contracts are excluded from
revenues and deferred over the expected maturity of the securities, since under
the terms of the contracts the realized gains and losses will be credited to
policyholders in future years as they are entitled to receive them.
(F) INVESTMENTS
The Company's investments in fixed maturities include bonds and commercial
paper which are considered "available for sale" and accordingly are carried at
fair value with the after-tax difference from cost reflected as a component of
Stockholder's Equity designated "Net unrealized capital gains (losses) on
securities, net of tax". Equity securities, which include common and
non-redeemable preferred stocks, are carried at fair values with the after-tax
difference from cost reflected in Stockholder's Equity. Policy loans are carried
at outstanding balance which approximates fair value. Net realized capital gains
and losses, after deducting pension policyholders' share, are reported as a
component of revenue and are determined on a specific identification basis.
The Company's accounting policy for impairment requires recognition of an other
than temporary impairment charge on a security if it is determined that the
Company is unable to recover all amounts due under the contractual obligations
of the security. In addition, for securities expected to be sold, an other than
temporary impairment charge is recognized if the Company does not expect the
fair value of a security to recover to cost or amortized cost prior to the
expected date of sale. Once an impairment charge has been recorded, the Company
then continues to review the other than temporarily impaired securities for
appropriate valuation on an on-going basis.
During 1996, it was determined that certain individual securities within the
investment portfolio supporting the Company's block of guaranteed rate contract
business written prior to 1995 ("Closed Book GRC") could not recover to
amortized cost prior to sale. Therefore, an other than temporary impairment loss
of $88, after-tax, was recorded.
(G) DERIVATIVE INSTRUMENTS
The Company uses a variety of derivative instruments including swaps, caps,
floors, forwards and exchange traded financial futures and options as part of an
overall risk management strategy. These instruments are used as a means of
hedging exposure to price, foreign currency and/or interest rate risk on planned
investment purchases or existing assets and liabilities. The Company does not
hold or issue derivative instruments for trading purposes. The Company's
accounting for derivative instruments used to manage risk is in accordance with
the concepts established in SFAS No. 80, "Accounting for Futures Contracts",
SFAS No. 52, "Foreign Currency Translation", AICPA SOP 86-2, "Accounting for
Options" and various EITF pronouncements. Written options are used, in all cases
in conjunction with other assets and derivatives, as part of the Company's asset
and liability management strategy. Derivative instruments are carried at values
consistent with the asset or liability being hedged. Derivative instruments used
to hedge fixed maturities or equity securities are carried at fair value with
the after-tax difference from cost reflected in Stockholder's Equity. Derivative
instruments used to hedge other invested assets or liabilities are carried at
cost.
Derivative instruments must be designated at inception as a hedge and measured
for effectiveness both at inception and on an on-going basis. The Company's
minimum correlation threshold for hedge designation is 80%. If correlation,
which is assessed monthly and measured based on a rolling three month average,
falls below 80%, hedge accounting will be terminated. Derivative instruments
used to create a synthetic asset must meet synthetic accounting criteria
including
80 - PROSPECTUS
<PAGE>
designation at inception and consistency of terms between the synthetic and the
instrument being replicated. Consistent with industry practice, synthetic
instruments are accounted for like the financial instrument it is intended to
replicate. Derivative instruments which fail to meet risk management criteria,
subsequent to acquisition, are marked to market with the impact reflected in the
Consolidated Statements of Income.
Gains or losses on financial futures contracts entered into in anticipation of
the investment of future receipt of product cash flows are deferred and, at the
time of the ultimate investment purchase, reflected as an adjustment to the cost
basis of the purchased asset. Gains or losses on futures used in invested asset
risk management are deferred and adjusted into the cost basis of the hedged
asset when the contract futures are closed, except for futures used in duration
hedging which are deferred and basis adjusted on a quarterly basis. The basis
adjustments are amortized into net investment income over the remaining asset
life.
Open forward commitment contracts are marked to market through Stockholder's
Equity. Such contracts are accounted for at settlement by recording the purchase
of the specified securities at the previously committed price. Gains or losses
resulting from the termination of forward commitment contracts before the
delivery of the securities are recognized immediately in the Consolidated
Statements of Income as a component of net investment income.
The cost of options entered into as part of a risk management strategy are basis
adjusted to the underlying asset or liability and amortized over the remaining
life of the option. Gains or losses on expiration or termination are adjusted
into the basis of the underlying asset or liability and amortized over the
remaining asset life.
Interest rate swaps involve the periodic exchange of payments without the
exchange of underlying principal or notional amounts. Net receipts or payments
are accrued and recognized over the life of the swap agreement as an adjustment
to investment income. Should the swap be terminated, the gain or loss is
adjusted into the basis of the asset or liability and amortized over the
remaining life. Should the hedged asset be sold or liability terminated without
terminating the swap position, any swap gains or losses are immediately
recognized in net investment income. Interest rate swaps purchased in
anticipation of an asset purchase ("anticipatory transaction") are recognized
consistent with the underlying asset components such that the settlement
component is recognized in the Consolidated Statements of Income while the
change in market value is recognized as an unrealized capital gain or loss.
Premiums paid on purchased floor or cap agreements and the premium received on
issued cap or floor agreements (used for risk management) are adjusted into the
basis of the applicable asset and amortized over the asset life. Gains or losses
on termination of such positions are adjusted into the basis of the asset or
liability and amortized over the remaining asset life. Net payments are
recognized as an adjustment to income or basis adjusted and amortized depending
on the specific hedge strategy.
Forward exchange contracts and foreign currency swaps are accounted for in
accordance with SFAS No. 52. Changes in the spot rate of instruments designated
as hedges of the net investment in a foreign subsidiary are reflected in the
cumulative translation adjustments component of Stockholder's Equity. Cash flows
from futures, options, and swaps, accounted for as hedges, are included with the
cash flows of the item being hedged.
(H) SEPARATE ACCOUNTS
The Company maintains separate account assets and liabilities which are
reported at fair value. Separate account assets are segregated from other
investments, and investment income and gains and losses accrue directly to the
policyholders. Separate accounts reflect two categories of risk assumption:
non-guaranteed separate accounts, wherein the policyholder assumes the
investment risk, and guaranteed separate account assets, wherein the Company
contractually guarantees either a minimum return or account value to the
policyholder.
(I) DEFERRED POLICY ACQUISITION COSTS
Policy acquisition costs, which include commissions and certain underwriting
expenses associated with acquiring business, are deferred and amortized over the
estimated lives of the contracts, generally 20 years. Generally, acquisition
costs are deferred and amortized using the retrospective deposit method. Under
the retrospective deposit method, acquisition costs are amortized in proportion
to the present value of expected gross profits from surrender charges,
investment, mortality and expense margins. Actual gross profits can vary from
management's estimates resulting in increases or decreases in the rate of
amortization. Management periodically updates these estimates, when appropriate,
and evaluates the recoverability of the deferred acquisition cost asset. When
appropriate, management revises its assumptions on the estimated gross profits
of these contracts and the cumulative amortization for the books of business are
reestimated and adjusted by a cumulative charge or credit to income.
81 - PROSPECTUS
<PAGE>
The Company's other expenses include the following:
<TABLE>
<CAPTION>
1997 1996 1995
<S> <C> <C> <C> <C>
------------------------------
Commissions $ 976 $ 848 $ 619
Deferred acquisition costs (862) (823) (618)
Other 472 402 316
------------------------------
TOTAL OTHER EXPENSES $ 586 $ 427 $ 317
------------------------------
</TABLE>
(J) DIVIDENDS TO POLICYHOLDERS
Certain life insurance policies contain dividend payment provisions that
enable the policyholder to participate in the earnings of the life insurance
subsidiaries of the Company. The participating insurance in force accounted for
55%, 44%, and 41% in 1997, 1996, and 1995, respectively, of total insurance in
force.
3. INITIAL PUBLIC OFFERING
On February 10, 1997, Hartford Life filed a registration statement, as amended,
with the Securities and Exchange Commission, relating to the IPO of Hartford
Life's Class A Common Stock. Pursuant to the IPO on May 22, 1997, Hartford Life
sold to the public 26 million shares at $28.25 per share and received proceeds,
net of offering expenses, of $687. Of the proceeds, $527 was used to retire debt
related to Hartford Life's promissory notes outstanding and line of credit. The
remaining $160 was contributed by Hartford Life to HLA to support growth in its
core businesses.
The 26 million shares sold in the Offering represent approximately 18.6% of the
equity ownership in Hartford Life and approximately 4.4% of the combined voting
power of Hartford Life's Class A and Class B Common Stock. The Hartford owns all
of the 114 million outstanding shares of Class B Common Stock of Hartford Life,
representing approximately 81.4% of the equity ownership in Hartford Life and
approximately 95.6% of the combined voting power of Hartford Life's Class A and
Class B Common Stock. Holders of Class A Common Stock generally have identical
rights to the holders of Class B Common Stock except that the holders of Class A
Common Stock are entitled to one vote per share while holders of Class B Common
Stock are entitled to five votes per share on all matters submitted to a vote of
Hartford Life's stockholders.
4. INVESTMENTS AND DERIVATIVE INSTRUMENTS
<TABLE>
<CAPTION>
For the Years Ended December 31,
<S> <C> <C> <C> <C>
--------------------------------------
1997 1996 1995
--------------------------------------
(A) COMPONENTS OF NET INVESTMENT INCOME
Interest income from fixed maturities $ 932 $ 918 $ 996
--------------------------------------
Interest income from policy loans 425 477 342
--------------------------------------
Income from other investments 26 15 1
--------------------------------------
Gross investment income 1,383 1,410 1,339
--------------------------------------
Less: Investment expenses 15 13 11
--------------------------------------
NET INVESTMENT INCOME $1,368 $1,397 $1,328
--------------------------------------
--------------------------------------
(B) COMPONENTS OF NET REALIZED CAPITAL GAINS
(LOSSES)
Fixed maturities $ (7) $ (201) $ 23
Equity securities 12 2 (6)
Real estate and other (1) (4) (25)
Less: Increase in liability to policyholders
for
realized capital gains - (10) (3)
--------------------------------------
NET REALIZED CAPITAL GAINS (LOSSES) $ 4 $ (213) $ (11)
--------------------------------------
--------------------------------------
(C) NET UNREALIZED CAPITAL GAINS (LOSSES) ON
EQUITY SECURITIES
Gross unrealized capital gains $ 14 $ 13 $ 4
Gross unrealized capital losses - (1) (2)
--------------------------------------
Net unrealized capital gains 14 12 2
Deferred income tax expense 5 4 1
--------------------------------------
Net unrealized capital gains, net of tax 9 8 1
Balance - beginning of year 8 1 (6)
--------------------------------------
NET CHANGE IN UNREALIZED CAPITAL GAINS
(LOSSES) ON
EQUITY SECURITIES $ 1 $ 7 $ 7
--------------------------------------
</TABLE>
82 - PROSPECTUS
<PAGE>
<TABLE>
<CAPTION>
For the Years Ended December 31,
--------------------------------------
<S> <C> <C> <C> <C>
1997 1996 1995
--------------------------------------
(D) NET UNREALIZED CAPITAL GAINS (LOSSES) ON
FIXED MATURITIES
Gross unrealized capital gains $ 371 $ 386 $ 529
Gross unrealized capital losses (80) (341) (569)
Unrealized capital (gains) losses credited to
policyholders (30) (11) (52)
--------------------------------------
Net unrealized capital gains (losses) 261 34 (92)
Deferred income tax expense (benefit) 91 12 (34)
--------------------------------------
Net unrealized capital gains (losses), net of
tax 170 22 (58)
Balance - beginning of year 22 (58) (648)
--------------------------------------
NET CHANGE IN UNREALIZED CAPITAL GAINS
(LOSSES)
ON FIXED MATURITIES $ 148 $ 80 $ 590
--------------------------------------
(E) FIXED MATURITY INVESTMENTS
<CAPTION>
AS OF DECEMBER 31, 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized
Cost Gains Losses Fair Value
---------------------------------------------------------
U.S. gov't and gov't agencies and authorities
(guaranteed and sponsored) $ 217 $ 3 $ (1 ) $ 219
U.S. gov't and gov't agencies and authorities
(guaranteed and sponsored) - asset backed 1,175 64 (35 ) 1,204
States, municipalities and political subdivisions 211 7 (1 ) 217
International governments 376 20 (3 ) 393
Public utilities 871 26 (3 ) 894
All other corporate including international 5,033 200 (25 ) 5,208
All other corporate - asset backed 4,091 41 (8 ) 4,124
Short-term investments 1,318 - - 1,318
Certificates of deposit 593 10 (4 ) 599
---------------------------------------------------------
TOTAL FIXED MATURITIES $ 13,885 $ 371 $ (80 ) $ 14,176
---------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
AS OF DECEMBER 31, 1996
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized
Cost Gains Losses Fair Value
---------------------------------------------------------
U.S. gov't and gov't agencies and authorities
(guaranteed and sponsored) $ 166 $ 12 $ (3 ) $ 175
U.S. gov't and gov't agencies and authorities
(guaranteed and sponsored) - asset backed 1,970 161 (128 ) 2,003
States, municipalities and political subdivisions 373 6 (11 ) 368
International governments 281 12 (4 ) 289
Public utilities 877 12 (8 ) 881
All other corporate including international 4,656 120 (107 ) 4,669
All other corporate - asset backed 3,601 49 (59 ) 3,591
Short-term investments 1,655 14 (21 ) 1,648
---------------------------------------------------------
TOTAL FIXED MATURITIES $ 13,579 $ 386 $ (341 ) $ 13,624
---------------------------------------------------------
</TABLE>
The amortized cost and estimated fair value of fixed maturity investments at
December 31, 1997 by estimated maturity year are shown below. Expected
maturities differ from contractual maturities due to call or prepayment
provisions. Asset backed securities, including MBS and CMO's, are distributed to
maturity year based on the Company's estimates of the rate of future prepayments
of principal over the remaining lives of the securities. These estimates are
developed using prepayment speeds
83 - PROSPECTUS
<PAGE>
provided in broker consensus data. Such estimates are derived from prepayment
speeds experienced at the interest rate levels projected for the applicable
underlying collateral and can be expected to vary from actual experience.
<TABLE>
<CAPTION>
Amortized
Cost Fair Value
<S> <C> <C>
--------------------------
MATURITY
One year or less $ 2,838 $ 2,867
Over one year through five years 5,528 5,595
Over five years through ten years 3,094 3,156
Over ten years 2,425 2,558
--------------------------
TOTAL $ 13,885 $ 14,176
--------------------------
</TABLE>
Sales of fixed maturities, excluding short-term fixed maturities, for the years
ended December 31, 1997, 1996 and 1995 resulted in proceeds of $4.2 billion,
$3.5 billion and $4.8 billion, gross realized capital gains of $169, $87 and
$91, gross realized capital losses (including writedowns) of $176, $298 and $72,
respectively. Sales of equity security investments for the years ended December
31, 1997, 1996 and 1995 resulted in proceeds of $132, $74 and $64, gross
realized capital gains of $12, $2 and $28 and gross realized capital losses of
$0, $0 and $59, respectively.
(F) CONCENTRATION OF CREDIT RISK
Excluding investments in U.S. government and agencies, the Company has not
invested in the securities of a single issuer in amounts greater than 10% of
stockholder's equity at December 31, 1997.
(G) DERIVATIVE INSTRUMENTS
The Company utilizes a variety of derivative instruments, including swaps,
caps, floors, forwards and exchange traded futures and options, in accordance
with Company policy and in order to achieve one of three Company approved
objectives: to hedge risk arising from interest rate, price or currency exchange
rate volatility; to manage liquidity; or, to control transactions costs. The
Company utilizes derivative instruments to manage market risk through four
principal risk management strategies: hedging anticipated transactions, hedging
liability instruments, hedging invested assets and hedging portfolios of assets
and/or liabilities. The Company does not trade in these instruments for the
express purpose of earning trading profits.
The Company maintains a derivatives counterparty exposure policy which
establishes market-based credit limits, favors long-term financial stability and
creditworthiness, and typically requires credit enhancement/credit risk reducing
agreements. Credit risk is measured as the amount owed to the Company based on
current market conditions and potential payment obligations between the Company
and its counterparties. Credit exposures are quantified weekly and netted, and
collateral is pledged to or held by the Company to the extent the current value
of derivatives exceed exposure policy thresholds.
The Company's derivative program is monitored by an internal compliance unit and
is reviewed by senior management and Hartford Life's Finance Committee. Notional
amounts, which represent the basis upon which pay or receive amounts are
calculated and are not reflective of credit risk, pertaining to derivative
financial instruments (excluding the Company's guaranteed separate account
derivative investments), totaled $6.5 billion and $9.9 billion ($4.6 billion and
$7.4 billion related to the Company's investments, $1.9 billion and $2.5 billion
on the Company's liabilities) at December 31, 1997 and 1996, respectively.
84 - PROSPECTUS
<PAGE>
The table below provides a summary of derivative instruments held by the Company
at December 31, 1997 and 1996, segregated by major investment and liability
category:
<TABLE>
<CAPTION>
Amount Hedged (Notional Amounts)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------
1997 Total Issued Purchased Futures Interest Foreign Total
Carrying Caps & Caps, (2) Rate Currency Notional
Value Floors Floors Swaps Swaps Amount
and (3)
Options
ASSETS HEDGED
----------------------------------------------------------------------------------------------------
Asset backed securities
(excluding inverse floaters and
anticipatory) $ 5,253 $ 500 $ 1,404 $ 28 $ 221 $ - $ 2,153
Inverse floaters (1) 75 47 80 - 25 - 152
Anticipatory (4) - - - - - - -
Other bonds and notes 7,531 462 460 22 1,258 91 2,293
Short-term investments 1,317 - - - - - -
----------------------------------------------------------------------------------------------------
TOTAL FIXED MATURITIES 14,176 1,009 1,944 50 1,504 91 4,598
Equity securities, policy
loans and other investments 3,983 - - - - - -
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $ 18,159 $ 1,009 $ 1,944 $ 50 $ 1,504 $91 $ 4,598
LONG TERM DEBT - - - - - - -
OTHER POLICY CLAIMS - 10 150 - 1,747 - 1,907
----------------------------------------------------------------------------------------------------
TOTAL DERIVATIVES -
NOTIONAL VALUE $ - $ 1,019 $ 2,094 $ 50 $ 3,251 $91 $ 6,505
----------------------------------------------------------------------------------------------------
TOTAL DERIVATIVES -
FAIR VALUE $ - $ (8) $ 23 $ - $ 19 $(6) $ 28
----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Amount Hedged (Notional Amounts)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------
1996 Total Issued Purchased Futures (2) Interest Foreign Total
Carrying Caps & Caps, Rate Currency Notional
Value Floors Floors Swaps Swaps Amount
and Options (3)
ASSETS HEDGED
----------------------------------------------------------------------------------------------------
Asset backed securities
(excluding inverse floaters and
anticipatory) $ 5,242 $ 500 $ 2,454 $ - $ 941 $ - $3,895
Inverse floaters (1) 352 98 856 - 346 - 1,300
Anticipatory (4) - - - 132 - - 132
Other bonds and notes 7,369 425 440 5 1,079 125 2,074
Short-term investments 661 - - - - - -
----------------------------------------------------------------------------------------------------
TOTAL FIXED MATURITIES 13,624 1,023 3,750 137 2,366 125 7,401
Equity securities, policy
loans and other investments 4,011 - - - 19 - 19
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $ 17,635 $ 1,023 $ 3,750 $ 137 $ 2,385 $ 125 $7,420
LONG TERM DEBT - - - - - - -
OTHER POLICY CLAIMS - 10 150 - 2,351 - 2,511
----------------------------------------------------------------------------------------------------
TOTAL DERIVATIVES -
NOTIONAL VALUE $ - $ 1,033 $ 3,900 $ 137 $ 4,736 $ 125 $9,931
----------------------------------------------------------------------------------------------------
TOTAL DERIVATIVES -
FAIR VALUE $ - $ (10) $ 38 $ - $ 2 $ (9 ) $ 21
----------------------------------------------------------------------------------------------------
</TABLE>
(1) Inverse floaters are variations of collateralized mortgage obligations
("CMO's") for which the coupon rates move inversely with an index rate such as
the London interbank offered rate ("LIBOR"). The risk to principal is considered
negligible as the underlying collateral for the securities is guaranteed or
sponsored by government agencies. To address the volatility risk
85 - PROSPECTUS
<PAGE>
created by the coupon variability, the Company uses a variety of derivative
instruments, primarily interest rate swaps, caps and floors.
(2) As of December 31, 1997 and 1996, over 44% and 39%, respectively, of the
notional futures contracts expire within one year.
(3) As of December 31, 1997 and 1996, over 16% and 42%, respectively, of foreign
currency swaps expire within one year; the balance matures over the succeeding 9
years.
(4) Deferred gains and losses on anticipatory transactions are included in the
carrying value of fixed maturities in the Consolidated Balance Sheets. At the
time of the ultimate purchase, they are reflected as a basis adjustment to the
purchased asset. At December 31, 1997, the Company had $0 deferred gains and
losses. At December 31, 1996, the Company had $0.9 in net deferred gains for
futures, interest rate swaps and purchased options of which $2.0 was basis
adjusted in 1997.
The following is a reconciliation of notional amounts by derivative type and
strategy as of December 31, 1997 and 1996:
<TABLE>
<CAPTION>
BY DERIVATIVE TYPE
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------
December 31, 1996 Maturities/ December 31, 1997
Notional Amount Additions Terminations (1) Notional Amount
---------------------------------------------------------------------------------
Caps $ 1,755 $ 14 $ 530 $ 1,239
Floors 3,168 28 1,332 1,864
Swaps/Forwards 4,861 941 2,460 3,342
Futures 137 131 218 50
Options 10 - - 10
---------------------------------------------------------------------------------
TOTAL $ 9,931 $ 1,114 $ 4,540 $ 6,505
---------------------------------------------------------------------------------
<CAPTION>
BY STRATEGY
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------
<CAPTION>
December 31, 1996 Maturities/ December 31, 1997
Notional Amount Additions Terminations (1) Notional Amount
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------
Liability $2,511 $ 191 $ 795 $1,907
Anticipatory 132 4 136 -
Asset 2,112 739 1,046 1,805
Portfolio 5,176 180 2,563 2,793
---------------------------------------------------------------------------------
TOTAL $9,931 $1,114 $4,540 $6,505
---------------------------------------------------------------------------------
</TABLE>
(1) During 1997, the Company had no significant gains or losses on terminations
of hedge positions using derivative financial instruments.
5. FAIR VALUE OF FINANCIAL INSTRUMENTS
Statement of Financial Accounting Standards No. 107 "Disclosure about Fair Value
of Financial Instruments" requires disclosure of fair value information of
financial instruments. For certain financial instruments where quoted market
prices are not available, other independent valuation techniques and assumptions
are used. Because considerable judgment is used, these estimates are not
necessarily indicative of amounts that could be realized in a current market
exchange. SFAS No. 107 excludes certain financial instruments from disclosure,
including insurance contracts.
For cash, short-term investments, accounts receivable, policy loans, mortgage
loans and other liabilities, carrying amounts on the Consolidated Balance Sheets
approximate fair value.
Fair value for fixed maturities and marketable equity securities are based upon
quoted market prices. Fair value for securities that are not publicly traded are
analytically determined. These amounts are disclosed in Note 4 of Notes to
Consolidated Financial Statements.
The fair value of derivative financial instruments, including swaps, caps,
floors, futures, options and forward commitments, is determined using a pricing
model which is validated through quarterly comparison to dealer quoted prices.
Amounts are disclosed in Note 4 of Notes to Consolidated Financial Statements.
Fair value for partnerships and trusts are based on external market valuations
from partnership and trust management.
Other policy claims and benefits payable fair value information is determined by
estimating future cash flows, discounted at the current market rate.
86 - PROSPECTUS
<PAGE>
The carrying amount and fair values of the Company's financial instruments at
December 31, 1997 and 1996 were as follows:
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------
CARRYING FAIR CARRYING FAIR
AMOUNT VALUE AMOUNT VALUE
--------------------------------------
ASSETS
Fixed maturities $ 14,176 $14,176 $ 13,624 $13,624
Equity securities 180 180 119 119
Policy loans 3,756 3,756 3,836 3,836
Mortgage loans - - 2 2
Investments in partnerships, trusts and other 47 91 54 104
LIABILITIES
Other policy benefits $ 11,769 $11,755 $ 11,707 $11,469
</TABLE>
6. SEPARATE ACCOUNTS
The Company maintained separate account assets and liabilities totaling $69.1
billion and $49.7 billion at December 31, 1997 and 1996, respectively, which are
reported at fair value. Separate account assets are segregated from other
investments and net investment income and net realized capital gains and losses
accrue directly to the policyholder. Separate accounts reflect two categories of
risk assumption: non-guaranteed separate accounts totaling $58.6 billion and
$39.4 billion at December 31, 1997 and 1996, respectively, wherein the
policyholder assumes the investment risk, and guaranteed separate accounts
totaling $10.5 and $10.3 billion at December 31, 1997 and 1996, respectively,
wherein the Company contractually guarantees either a minimum return or account
value to the policyholder. Included in the non-guaranteed category were policy
loans totaling $1.9 billion and $2.0 billion at December 31, 1997 and 1996,
respectively. Net investment income (including net realized capital gains and
losses) and interest credited to policyholders on separate account assets are
not reflected in the Consolidated Statements of Income.
Separate account management fees were $699, $538 and $387 in 1997, 1996 and
1995, respectively. The guaranteed separate accounts include fixed market value
adjusted individual annuity and modified guaranteed life insurance. The average
credited interest rate on these contracts was 6.52% at December 31, 1997. The
assets that support these liabilities were comprised of $10.2 billion in fixed
maturities as of December 31, 1997. The portfolios are segregated from other
investments and are managed to minimize liquidity and interest rate risk. In
order to minimize the risk of disintermediation associated with early
withdrawals, fixed MVA annuity and modified guaranteed life insurance contracts
carry a graded surrender charge as well as a market value adjustment. Additional
investment risk is hedged using a variety of derivatives which totaled $119 in
carrying value and $3.0 billion in notional amounts as of December 31, 1997.
7. INCOME TAX
Hartford Life and The Hartford have entered into a tax sharing agreement under
which each member in the consolidated U.S. Federal income tax return will make
payments between them such that, with respect to any period, the amount of taxes
to be paid by the Company, subject to certain adjustments, generally will be
determined as though the Company were filing separate Federal, state and local
income tax returns.
As long as The Hartford continues to beneficially own, directly or indirectly,
at least 80% of the combined voting power and 80% of the value of the
outstanding capital stock of Hartford Life, the Company will be included for
Federal income tax purposes in the affiliated group of which The Hartford is the
common parent. To the extent allowed by law, it is the intention of The Hartford
and its subsidiaries to continue to file a single consolidated Federal income
tax return. The Company will continue to remit (receive from) The Hartford a
current income tax provision (benefit) computed in accordance with such tax
sharing agreement. The Company's effective tax rate was 36%, 35% and 32% in
1997, 1996 and 1995, respectively.
Income tax expense is as follows:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
<S> <C> <C> <C> <C>
------------------------------------------------
1997 1996 1995
------------------------------------------------
Current $119 $ 122 $ 211
Deferred 48 (102) (149)
------------------------------------------------
INCOME TAX EXPENSE $167 $ 20 $ 62
------------------------------------------------
</TABLE>
87 - PROSPECTUS
<PAGE>
A reconciliation of the tax provision at the U.S. Federal statutory rate to the
provision for income taxes is as follows:
<TABLE>
<CAPTION>
FOR THE YEARS
ENDED DECEMBER
31,
<S> <C> <C> <C>
------------------------------------------------
1997 1996 1995
------------------------------------------------
Tax provision at the U.S. Federal statutory rate $164 $20 $67
Tax-exempt income - - (3 )
Foreign tax credit - - (4 )
Other 3 - 2
------------------------------------------------
TOTAL $167 $20 $62
------------------------------------------------
</TABLE>
Deferred tax assets include the following at December 31:
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C> <C> <C>
------------------------
Tax return deferred acquisition costs $ 639 $ 514
Financial statement deferred acquisition
costs and reserves (366) (242)
Employee benefits 5 8
Net unrealized capital gains on securities (96) (16)
Investments and other 166 210
------------------------
TOTAL $ 348 $ 474
------------------------
</TABLE>
Income taxes paid were $9, $189 and $162 in 1997, 1996 and 1995, respectively.
The Company had a current tax payment of $27 due to The Hartford at December 31,
1997 and a tax refund due from The Hartford of $72 at December 31, 1996.
Prior to the Tax Reform Act of 1984, the Life Insurance Company Income Tax Act
of 1959 permitted the deferral from taxation of a portion of statutory income
under certain circumstances. In these situations, the deferred income was
accumulated in a "Policyholders' Surplus Account" and will be taxable in the
future only under conditions which management considers to be remote; therefore,
no Federal income taxes have been provided on this deferred income. The balance
for tax return purposes of the Policyholders' Surplus Account as of December 31,
1997 was $37.
8. POSTRETIREMENT BENEFIT AND SAVINGS PLANS
(A) PENSION PLANS The Company's employees are included in The Hartford's
noncontributory 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, as amended, and the
maximum amount that can be deducted for U.S. Federal income tax purposes.
Generally, pension costs are funded through the purchase of the Company's group
pension contracts. The cost to the Company was approximately $5, $5 and $2 in
1997, 1996 and 1995, respectively.
The Company also provides, through The Hartford, certain health care and life
insurance benefits for eligible retired employees. A substantial portion of the
Company's employees may become eligible for these benefits upon retirement. The
Company's contribution for health care benefits will depend on the retiree's
date of retirement and years of service. In addition, the plan has a defined
dollar cap which limits average Company contributions. 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.
Postretirement health care and life insurance benefits expense, allocated by The
Hartford, was immaterial to the results of operations for 1997, 1996 and 1995,
respectively.
The assumed rate in the per capita cost of health care (the health care trend
rate) was 8.5% for 1997, decreasing ratably to 6.0% in the year 2001. Increasing
the health care trend rates by one percent per year would have an immaterial
impact on the accumulated postretirement benefit obligation and the annual
expense. To the extent that the actual experience differs from the inherent
assumptions, the effect will be amortized over the average future service of
covered employees.
(B) INVESTMENT AND SAVINGS PLAN Substantially all employees of the Company are
eligible to participate in The Hartford's Investment and Savings Plan. Under
this plan, designated contributions, which may be invested in Class A Common
Stock of Hartford Life or certain other investments, are matched, up to 3% of
compensation, by the Company. The cost to the Company for the above-mentioned
plans was approximately $2 in 1997.
9. STOCK COMPENSATION PLANS
During the second quarter of 1997, Hartford Life adopted the 1997 HLI Incentive
Stock Plan (the "Plan"). Under the Plan, options granted may be either
non-qualified options or incentive stock options qualifying under Section 422A
of the Internal Revenue Code. The aggregate number of shares of Class A Common
Stock which may be awarded in any one year shall be subject to an annual limit.
The maximum number of shares of Class A Common Stock which may be granted under
the Plan
88 - PROSPECTUS
<PAGE>
in each year shall be 1.5% of the total issued and outstanding shares of
Hartford Life Class A Common Stock and treasury stock as reported in the Annual
Report on Hartford Life's Form 10-K for the preceding year plus unused portions
of such limit from prior years. In addition, no more than 5,000,000 shares of
Class A Common Stock shall be cumulatively available for awards of incentive
stock options under the Plan, and no more than 20% of the total number of shares
on a cumulative basis shall be available for restricted stock and performance
shares.
All options granted have an exercise price equal to the market price of Hartford
Life's stock on the date of grant and an option's maximum term is ten years.
Certain nonperformance based options become exercisable upon the attainment of
specified market price appreciation of Hartford Life's common shares or at seven
years after the date of grant, while the remaining nonperformance based options
become exercisable over a three year period commencing with the date of grant.
Also included in the Plan are long term performance awards which become payable
upon the attainment of specific performance goals achieved over a three year
period.
During the second quarter of 1997, Hartford Life established the HLI Employee
Stock Purchase Plan ("ESPP"). Under this plan, eligible employees of Hartford
Life and the Company may purchase Class A Common Stock of Hartford Life at a 15%
discount from the lower of the market price at the beginning or end of the
quarterly offering period. Hartford Life may sell up to 2,700,000 shares of
stock to eligible employees. Hartford Life sold 54,316 shares under the ESPP in
1997.
10. REINSURANCE
The Company cedes insurance to other insurers, including its parent HLA, in
order to limit its maximum loss. Such transfer does not relieve the Company of
its primary liability. The Company also assumes insurance from other insurers.
Failure of reinsurers to honor their obligations could result in losses to the
Company. The Company evaluates the financial condition of its reinsurers and
monitors concentration of credit risk.
Net premiums and other considerations were comprised of the following:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
<S> <C> <C> <C> <C>
--------------------------------------------
1997 1996 1995
--------------------------------------------
Gross premiums $ 2,164 $ 2,138 $ 1,545
Assumed 159 190 591
Ceded (686) (623) (649)
--------------------------------------------
NET PREMIUMS AND OTHER CONSIDERATIONS $ 1,637 $ 1,705 $ 1,487
--------------------------------------------
</TABLE>
The Company ceded approximately $76, $100 and $101 of group life premium in
1997, 1996 and 1995, respectively, representing $33.6 billion, $33.3 billion and
$32.3 billion of insurance in force, respectively. The Company ceded $339, $318
and $320 of accident and health premium to HLA in 1997, 1996 and 1995,
respectively. The Company assumed $89, $101 and $103 of premium in 1997, 1996
and 1995, respectively, representing $8.2 billion, $8.5 billion and $8.5 billion
of individual life insurance in force, respectively, from HLA.
Life reinsurance recoveries, which reduce death and other benefits, approximated
$158, $140 and $220 for the years ended December 31, 1997, 1996 and 1995,
respectively.
As of December 31, 1997, the Company had reinsurance recoverables of $5.0
billion from Mutual Benefit Life Assurance Corporation ("Mutual Benefit"),
supported by assets in a security trust of $5.0 billion (including policy loans
and accrued interest of $4.5 billion). The risk of Mutual Benefit becoming
insolvent is mitigated by the reinsurance agreement's requirement that the
assets be kept in a security trust with the Company as sole beneficiary. The
Company has no other significant reinsurance-related concentrations of credit
risk.
11. RELATED PARTY TRANSACTIONS
Transactions of the Company with HA&I and its affiliates relate principally to
tax settlements, reinsurance, insurance coverage, rental and service fees,
payment of dividends and capital contributions. In addition, certain affiliated
insurance companies purchased group annuity contracts from the Company to fund
pension costs and claim annuities to settle casualty claims. Substantially all
general insurance expenses related to the Company, including rent and employee
benefit plan expenses, are initially paid by The Hartford. Direct expenses are
allocated to the Company using specific identification, and indirect expenses
are allocated using other applicable methods. Indirect expenses include those
for corporate areas which, depending on type, are allocated based on either a
percentage of direct expenses or on utilization. Indirect expenses allocated to
the Company by The Hartford were $34, $40, and $45 in 1997, 1996 and 1995,
respectively. Management believes that the methods used are reasonable.
89 - PROSPECTUS
<PAGE>
The rent paid to Hartford Fire for space occupied by the Company was $7 in 1997,
and $3 in 1996 and 1995. The Company expects to pay annual rent of $7 in 1998
and 1999, respectively, $12 in 2000 and 2001, respectively, $13 in 2002 and $87
thereafter, over the remaining term of the sublease, which expires on December
31, 2009. Rental expense is recognized over a level basis over the term of the
sublease and amounted to approximately $9 in 1997 and $8 in 1996 and 1995.
12. STATUTORY RESULTS
The domestic insurance subsidiaries of Hartford Life prepare their statutory
financial statements in accordance with accounting practices prescribed by the
State of Connecticut Insurance Department. Prescribed statutory accounting
practices include publications of the National Association of Insurance
Commissioners ("NAIC"), as well as state laws, regulations, and general
administrative rules.
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
<S> <C> <C> <C> <C>
------------------------------------------------------
1997 1996 1995
------------------------------------------------------
Statutory net income $ 214 $ 144 $ 112
------------------------------------------------------
Statutory surplus $1,441 $1,207 $1,125
------------------------------------------------------
</TABLE>
A significant percentage of the consolidated statutory surplus is permanently
reinvested or is subject to various state regulatory restrictions which limit
the payment of dividends without prior approval. The total amount of statutory
dividends which may be paid by the insurance subsidiaries of the Company in 1998
is estimated to be $144.
13. COMMITMENTS AND CONTINGENT LIABILITIES
(A) LITIGATION The Company is involved in pending and threatened litigation in
the normal course of its business in which claims for monetary and punitive
damages have been asserted. Although there can be no assurances, management, at
the present time, does not anticipate that the ultimate liability arising from
such pending or threatened litigation will have a material effect on the
financial condition or operating results of the Company.
(B) GUARANTY FUNDS Under insurance guaranty fund laws in each state, the
District of Columbia and Puerto Rico, insurers licensed to do business can be
assessed by state insurance guaranty associations for certain obligations of
insolvent insurance companies to policyholders and claimants. Recent regulatory
actions against certain large life insurers encountering financial difficulty
have prompted various state insurance guaranty associations to begin assessing
life insurance companies for the deemed losses. Most of these laws do provide,
however, that an assessment may be excused or deferred if it would threaten an
insurer's solvency and further provide annual limits on such assessments. A
large part of the assessments paid by the Company's insurance subsidiaries
pursuant to these laws may be used as credits for a portion of the Company's
insurance subsidiaries' premium taxes. The Company paid guaranty fund
assessments of approximately $15, $11 and $10 in 1997, 1996 and 1995,
respectively, of which $4, $5, and $6 were estimated to be creditable against
premium taxes.
14. BUSINESS SEGMENT INFORMATION
The Company, along with its parent, sells financial products such as fixed and
variable annuities, retirement plan services, and life and disability insurance
on both an individual and a group basis. The Company divides its core businesses
into three segments: Annuity, Individual Life Insurance, and Employee Benefits.
The Company also maintains a Guaranteed Investment Contracts segment, which is
primarily comprised of guaranteed rate contract business written prior to 1995
and a Corporate Operation. The Annuity segment offers individual variable
annuities and fixed market value adjusted annuities, deferred compensation and
retirement plan services, mutual funds, investment management services and other
financial products. The Individual Life Insurance segment sells a variety of
individual life insurance products, including variable life, universal life,
interest-sensitive whole life, and term life policies. The Employee Benefits
segment sells group insurance products, including group life, group short and
long-term disability and corporate owned life insurance, and engages in certain
international operations. The Guaranteed Investment Contracts segment sells a
limited amount of guaranteed investment contracts and contains Closed Book GRC.
Through its Corporate Operation, the Company reports items that are not directly
allocable to any of its business segments. Included in the Corporate Operation
are unallocated income and expense and certain other items not directly
allocable to any segment. Net realized capital gains and losses are recognized
in the period of realization, but are allocated to the segments utilizing
durations of the segment portfolios.
90 - PROSPECTUS
<PAGE>
The following table outlines revenues, operating income and assets by business
segment:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
<S> <C> <C> <C> <C>
------------------------------------------------
<CAPTION>
1997 1996 1995
<S> <C> <C> <C> <C>
------------------------------------------------
REVENUES
Annuity $ 1,269 $ 968 $ 759
Individual Life Insurance 487 440 383
Employee Benefits 972 1,366 1,273
Guaranteed Investment Contracts 241 34 337
Corporate Operation 40 81 52
------------------------------------------------
TOTAL REVENUES $ 3,009 $ 2,889 $ 2,804
------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT)
Annuity $ 317 $ 226 $ 171
Individual Life Insurance 85 68 56
Employee Benefits 53 44 37
Guaranteed Investment Contracts - (346) (103)
Corporate Operation 14 66 30
------------------------------------------------
TOTAL INCOME BEFORE INCOME TAX EXPENSE $ 469 $ 58 $ 191
------------------------------------------------
ASSETS
Annuity $ 69,152 $ 52,877 $ 39,732
Individual Life Insurance 4,918 3,753 3,173
Employee Benefits 18,196 14,708 13,494
Guaranteed Investment Contracts 3,347 4,533 6,069
Corporate Operation 2,343 1,891 1,729
------------------------------------------------
TOTAL ASSETS $ 97,956 $ 77,762 $ 64,197
------------------------------------------------
</TABLE>
91 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
SCHEDULE I SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN AFFILIATES
AS OF DECEMBER 31, 1997
(IN MILLIONS)
--------------------------------------------------------
<TABLE>
<CAPTION>
Amount at
which shown
Type of Fair on Balance
Investment Cost Value Sheet
<S> <C> <C> <C> <C> <C>
----------------------------------------------
FIXED MATURITIES
Bonds and Notes
U.S. gov't and gov't agencies and authorities
(guaranteed and sponsored) $ 217 $ 219 $ 219
U.S. gov't and gov't agencies and authorities
(guaranteed and sponsored) - asset-backed 1,175 1,204 1,204
States, municipalities and political subdivisions 211 217 217
International governments 376 393 393
Public utilities 871 894 894
All other corporate including international 5,033 5,208 5,208
All other corporate - asset-backed 4,091 4,124 4,124
Short-term investments 1,318 1,318 1,318
Certificates of deposit 593 599 599
----------------------------------------------
TOTAL FIXED MATURITIES 13,885 14,176 14,176
----------------------------------------------
EQUITY SECURITIES
Common Stocks
----------------------------------------------
Public utilities - - -
----------------------------------------------
Banks, trusts and insurance companies - - -
----------------------------------------------
Industrial and miscellaneous 166 180 180
----------------------------------------------
Nonredeemable preferred stocks - - -
----------------------------------------------
TOTAL EQUITY SECURITIES 166 180 180
----------------------------------------------
TOTAL FIXED MATURITIES AND EQUITY SECURITIES 14,051 14,356 14,356
----------------------------------------------
REAL ESTATE - - -
OTHER INVESTMENTS
Mortgage loans on real estate - - -
Policy loans 3,756 3,756 3,756
Investments in partnerships, trusts and other 47 91 47
----------------------------------------------
TOTAL OTHER INVESTMENTS 3,803 3,847 3,803
----------------------------------------------
TOTAL INVESTMENTS $17,854 $18,203 $18,159
----------------------------------------------
</TABLE>
92 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
(IN MILLIONS)
---------------------------------------------------
<TABLE>
<CAPTION>
Future
Policy
Benefits,
Unpaid Other
Deferred Claims Policy
Policy and Claim Claims and Premiums Net
Segment Acquisition Adjustment Benefits and Other Investment
1997 Costs Expenses Payable Considerations Income
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------
Annuity $2,478 $2,070 $ 6,838 $ 769 $ 500
Individual Life Insurance 837 392 2,182 323 164
Employee Benefits - 780 9,232 541 431
Guaranteed Investment Contracts - - 2,782 2 239
Corporate Operation - 28 - 2 34
CONSOLIDATED OPERATIONS $3,315 $3,270 $21,034 $1,637 $1,368
------------------------------------------------------------------
1996
------------------------------------------------------------------
Annuity $2,030 $1,526 $ 6,016 $ 535 $ 433
Individual Life Insurance 730 346 2,160 287 153
Employee Benefits - 574 9,834 881 485
Guaranteed Investment Contracts - - 4,124 2 251
Corporate Operation - 28 - - 75
CONSOLIDATED OPERATIONS $2,760 $2,474 $22,134 $1,705 $1,397
------------------------------------------------------------------
1995
------------------------------------------------------------------
Annuity $1,561 $1,314 $ 5,661 $ 319 $ 400
Individual Life Insurance 615 706 1,932 246 137
Employee Benefits 12 325 9,285 922 351
Guaranteed Investment Contracts - 28 5,720 - 377
Corporate Operation - - - - 63
CONSOLIDATED OPERATIONS $2,188 $2,373 $22,598 $1,487 $1,328
------------------------------------------------------------------
<CAPTION>
Net Benefits, Amortization
Realized Claims and of Deferred
Capital Claim Policy
Segment Gains Adjustment Acquisition Dividends to Other
1997 (Losses) Expenses Costs Policyholders Expenses
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------
Annuity $ - $ 445 $250 $ - $ 257
Individual Life Insurance - 242 83 - 77
Employee Benefits - 425 2 240 252
Guaranteed Investment Contracts - 232 - - 9
Corporate Operation 4 35 - - (9)
CONSOLIDATED OPERATIONS $ 4 $1,379 $335 $240 $ 586
------------------------------------------------------------------
1996
------------------------------------------------------------------
Annuity $ - $ 412 $174 $ - $ 156
Individual Life Insurance - 245 59 - 68
Employee Benefits - 546 - 635 141
Guaranteed Investment Contracts (219) 332 1 - 47
Corporate Operation 6 - - - 15
CONSOLIDATED OPERATIONS $(213) $1,535 $234 $635 $ 427
------------------------------------------------------------------
1995
------------------------------------------------------------------
Annuity $ - $ 317 $117 $ - $ 114
Individual Life Insurance - 203 70 - 54
Employee Benefits - 424 - 675 137
Guaranteed Investment Contracts - 453 12 - 15
Corporate Operation (11) 25 - - (3)
CONSOLIDATED OPERATIONS $ (11) $1,422 $199 $675 $ 317
------------------------------------------------------------------
</TABLE>
93 - PROSPECTUS
<PAGE>
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
SCHEDULE IV REINSURANCE
(IN MILLIONS)
--------------------------------------------------------
<TABLE>
<CAPTION>
Ceded to Assumed from Percentage
Gross Other Other Net of Amount
Amount Companies Companies Amount Assumed to Net
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------------------------------------
Life insurance in force $245,487 $178,771 $ 33,156 $ 99,872 33.2%
------------------------------------------------------------------
INSURANCE REVENUES
Life insurance and annuities $ 1,818 $ 340 $ 157 $ 1,635 9.6%
Accident and health insurance 346 346 2 2 100.0%
------------------------------------------------------------------
TOTAL INSURANCE REVENUES $ 2,164 $ 686 $ 159 $ 1,637 9.7%
------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1996
------------------------------------------------------------------
Life insurance in force $177,094 $106,146 $ 31,957 $102,905 31.1%
------------------------------------------------------------------
INSURANCE REVENUES
Life insurance and annuities $ 1,801 $ 298 $ 169 $ 1,672 10.1%
Accident and health insurance 337 325 21 33 63.6%
------------------------------------------------------------------
TOTAL INSURANCE REVENUES $ 2,138 $ 623 $ 190 $ 1,705 11.1%
------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------------------------------------
Life insurance in force $182,716 $112,774 $ 26,996 $ 96,938 27.8%
------------------------------------------------------------------
INSURANCE REVENUES
Life insurance and annuities $ 1,232 $ 325 $ 574 $ 1,481 38.8%
Accident and health insurance 313 324 17 6 283.3%
------------------------------------------------------------------
TOTAL INSURANCE REVENUES $ 1,545 $ 649 $ 591 $ 1,487 39.7%
------------------------------------------------------------------
</TABLE>
94 - PROSPECTUS
