<PAGE>
STAG VARIABLE LIFE LAST SURVIVOR
SEPARATE ACCOUNT VL II
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
SUPPLEMENT DATED JANUARY 2, 2001 TO PROSPECTUS DATED MAY 1, 2000
Effective January 15, 2001 the following changes apply:
The following Sub-Accounts are added in alphabetical order to the cover page of
the prospectus:
- AMERICAN FUNDS GLOBAL GROWTH FUND SUB-ACCOUNT Class 2 of the Global Growth
Fund of American Funds Insurance Series
- AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND SUB-ACCOUNT Class 2 of the
Global Small Capitalization Fund of American Funds Insurance Series
- AMERICAN FUNDS GROWTH FUND SUB-ACCOUNT Class 2 of the Growth Fund of American
Funds Insurance Series
- AMERICAN FUNDS GROWTH-INCOME FUND SUB-ACCOUNT Class 2 of the Growth-Income
Fund of American Funds Insurance Series
- HARTFORD GLOBAL LEADERS SUB-ACCOUNT Class IA of Hartford Global Leaders
HLS Fund of Hartford Series Fund, Inc.
- HARTFORD GLOBAL TECHNOLOGY SUB-ACCOUNT Class IA of Hartford Global Technology
HLS Fund of Hartford Series Fund, Inc.
Under the section entitled "Summary of Benefits and Risks", the paragraph
entitled "Investment Choices" is deleted and replaced with the following:
INVESTMENT CHOICES -- You may invest in up to 9 different investment choices
within your policy, from a choice of 42 investment options and a Fixed Account.
You may transfer money among your investment choices, subject to restrictions.
The table of Annual Fund Operating Expenses is deleted and replaced with the
following:
<TABLE>
<CAPTION>
TOTAL FUND
OPERATING
OTHER EXPENSES
EXPENSES (INCLUDING ANY
MANAGEMENT FEES 12B-1 FEES (INCLUDING ANY WAIVERS AND/OR
(INCLUDING ANY WAIVERS) (INCLUDING ANY WAIVERS) REIMBURSEMENTS) ANY REIMBURSEMENTS)
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------------
American Funds Global Growth Fund 0.68% 0.25% 0.03% 0.96%
---------------------------------------------------------------------------------------------------------------------------------
American Funds Global Small
Capitalization Fund 0.79% 0.25% 0.03% 1.07%
---------------------------------------------------------------------------------------------------------------------------------
American Funds Growth Fund 0.38% 0.25% 0.01% 0.64%
---------------------------------------------------------------------------------------------------------------------------------
American Funds Growth-Income Fund 0.34% 0.25% 0.01% 0.60%
---------------------------------------------------------------------------------------------------------------------------------
Hartford Advisers HLS Fund 0.63% N/A 0.02% 0.65%
---------------------------------------------------------------------------------------------------------------------------------
Hartford Bond HLS Fund 0.49% N/A 0.03% 0.52%
---------------------------------------------------------------------------------------------------------------------------------
Hartford Capital Appreciation HLS Fund 0.64% N/A 0.02% 0.66%
---------------------------------------------------------------------------------------------------------------------------------
Hartford Dividend and Growth HLS Fund 0.65% N/A 0.03% 0.68%
---------------------------------------------------------------------------------------------------------------------------------
Hartford Global Leaders HLS Fund 0.74% N/A 0.12% 0.86%
---------------------------------------------------------------------------------------------------------------------------------
Hartford Global Technology
HLS Fund (1) 0.85% N/A 0.25% 1.10%
---------------------------------------------------------------------------------------------------------------------------------
Hartford Growth and Income HLS Fund 0.78% N/A 0.04% 0.82%
---------------------------------------------------------------------------------------------------------------------------------
Hartford Index HLS Fund 0.40% N/A 0.03% 0.43%
---------------------------------------------------------------------------------------------------------------------------------
Hartford International Advisers
HLS Fund 0.76% N/A 0.09% 0.85%
---------------------------------------------------------------------------------------------------------------------------------
Hartford International Opportunities
HLS Fund 0.69% N/A 0.09% 0.78%
---------------------------------------------------------------------------------------------------------------------------------
Hartford MidCap HLS Fund 0.76% N/A 0.03% 0.79%
---------------------------------------------------------------------------------------------------------------------------------
Hartford Money Market HLS Fund 0.45% N/A 0.02% 0.47%
---------------------------------------------------------------------------------------------------------------------------------
Hartford Mortgage Securities HLS Fund 0.45% N/A 0.03% 0.48%
---------------------------------------------------------------------------------------------------------------------------------
Hartford Small Company HLS Fund 0.75% N/A 0.03% 0.78%
---------------------------------------------------------------------------------------------------------------------------------
Hartford Stock HLS Fund 0.46% N/A 0.02% 0.48%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT Asia Pacific Growth Fund 0.80% N/A 0.33% 1.13%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT Diversified Income Fund 0.68% N/A 0.10% 0.78%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
HV-2858
33-89988 1 of 9
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL FUND
OPERATING
OTHER EXPENSES
EXPENSES (INCLUDING ANY
MANAGEMENT FEES 12B-1 FEES (INCLUDING ANY WAIVERS AND/OR
(INCLUDING ANY WAIVERS) (INCLUDING ANY WAIVERS) REIMBURSEMENTS) REIMBURSEMENTS)
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Putnam VT Global Asset Allocation Fund 0.65% N/A 0.12% 0.77%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT Global Growth Fund 0.61% N/A 0.12% 0.73%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT Growth and Income Fund 0.46% N/A 0.04% 0.50%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT Health Sciences Fund 0.70% N/A 0.13% 0.83%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT High Yield Fund 0.65% N/A 0.07% 0.72%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT Income Fund 0.60% N/A 0.07% 0.67%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT International Growth Fund 0.80% N/A 0.22% 1.02%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT International Growth and
Income Fund 0.80% N/A 0.18% 0.98%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT International New
Opportunities Fund 1.08% N/A 0.33% 1.41%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT Investors Fund 0.63% N/A 0.08% 0.71%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT Money Market Fund 0.41% N/A 0.08% 0.49%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT New Opportunities Fund 0.54% N/A 0.05% 0.59%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT New Value Fund 0.70% N/A 0.10% 0.80%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT OTC & Emerging Growth
Fund (2) 0.53% N/A 0.37% 0.90%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT The George Putnam Fund of
Boston 0.65% N/A 0.18% 0.83%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT Utilities Growth and Income
Fund 0.65% N/A 0.06% 0.71%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT Vista Fund 0.65% N/A 0.10% 0.75%
---------------------------------------------------------------------------------------------------------------------------------
Putnam VT Voyager Fund 0.53% N/A 0.04% 0.57%
---------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Asset Manager
Portfolio (3) 0.53% N/A 0.09% 0.62%
---------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income
Portfolio (3) 0.48% N/A 0.08% 0.56%
---------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio (3) 0.73% N/A 0.14% 0.87%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Hartford Global Technology HLS Fund is a new fund. Total Fund Operating
Expenses are based on annualized estimates of such expenses to be incurred
during the current fiscal year.
(2) Total Annual Fund Operating Expenses for Putnam VT OTC & Emerging Growth
Fund reflect voluntary reductions and reimbursements through at least
December 31, 2000. Absent voluntary reductions and reimbursements, Total
Annual Fund Operating Expenses would have been as follows:
<TABLE>
<CAPTION>
TOTAL
FUND
OTHER OPERATING
MANAGEMENT FEES EXPENSES EXPENSES
<S> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Putnam VT OTC & Emerging Growth Fund 0.70% 0.37% 1.07%
--------------------------------------------------------------------------------------------------------
</TABLE>
(3) A portion of the brokerage commissions that certain funds pay was used to
reduce fund expenses. In addition, through arrangements with certain funds
of FMR on behalf of certain funds' custodian, credits realized as a result
of uninvested cash balances were used to reduce a portion of each applicable
fund's expenses. These reductions will continue through at least
December 31, 2000 pursuant to an agreement between the adviser and the
funds. Without these reductions, Total Fund Operating Expenses would have
been:
<TABLE>
<CAPTION>
TOTAL
FUND
OTHER OPERATING
MANAGEMENT FEES EXPENSES EXPENSES
<S> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Fidelity VIP II Asset Manager Portfolio 0.53% 0.10% 0.63%
--------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio 0.48% 0.09% 0.57%
--------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio 0.73% 0.18% 0.91%
--------------------------------------------------------------------------------------------------------
</TABLE>
HV-2858 2 of 9
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
The following is added in the section entitled "About Us" immediately following
the Hartford Ratings table:
These ratings apply to Hartford's ability to meet its obligations under the
Contract. The ratings do not apply to the Separate Account or the underlying
Funds.
Under the section entitled "The Funds", the following language is added in
alphabetical order:
AMERICAN FUNDS GLOBAL GROWTH FUND -- Seeks long-term growth of capital by
investing primarily in common stocks of issuers domiciled around the world.
AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND -- Seeks long-term growth of
capital by investing primarily in equity securities of smaller companies located
around the world that typically have market capitalization of $50 million to
$1.5 billion.
AMERICAN FUNDS GROWTH FUND -- Seeks long-term growth of capital by investing
primarily in common stocks which demonstrate the potential for appreciation.
AMERICAN FUNDS GROWTH-INCOME FUND -- Seeks growth of capital and income by
investing primarily in common stocks or other securities which demonstrate the
potential for appreciation and/or dividends.
HARTFORD GLOBAL LEADERS HLS FUND -- Seeks growth of capital by investing
primarily in equity securities issued through high-quality growth companies
worldwide that, in the opinion of Wellington Management, are leaders within
their respective industries as indicated by established market presence and
strong competitive position on a global, regional or country basis. Sub-advised
by Wellington Management.
HARTFORD GLOBAL TECHNOLOGY HLS FUND -- Seeks long-term capital appreciation by
investing in equity securities of technology companies worldwide. Sub-advised by
Wellington Management.
The following text is added under the section entitled "The Funds":
The Funds may not be available in all states.
Under the section entitled "The Funds", under the sub-section entitled
"Investment Advisers," the following paragraph is inserted as the first
paragraph of the section:
American Funds Global Growth Fund, American Funds Global Small Capitalization
Fund, American Funds Growth Fund and American Funds Growth-Income Fund are all
part of American Funds Insurance Series. American Funds Insurance Series is a
fully managed, diversified, open-end investment company organized as a
Massachusetts business trust in 1983. American Funds Insurance Series offers two
classes of fund shares: Class 1 shares and Class 2 shares. This policy invests
only in Class 2 shares of American Funds Insurance Series. The investment
adviser for each of the funds of American Funds Insurance Series is Capital
Research and Management Company located at 333 South Hope Street, Los Angeles,
California 90071. Capital Research and Management Company is a wholly owned
subsidiary of The Capital Growth Companies, Inc.
Under the section entitled "Investment Advisers", the second paragraph is
deleted and replaced with the following:
Each Hartford HLS Fund, except for Hartford Global Leaders HLS Fund, Hartford
Global Technology HLS Fund and Hartford Growth and Income HLS Fund is a separate
Maryland corporation registered with the Securities and Exchange Commission as
an open-end management investment company. Hartford Global Leaders HLS Fund and
Hartford Growth and Income HLS Fund are diversified series of Hartford Series
Fund, Inc., a Maryland corporation, also registered with the Securities and
Exchange Commission as an open-end management investment company. Hartford
Global Technology HLS Fund is a non-diversified series of Hartford Series Fund,
Inc. The shares of each Fund have been divided into Class IA and Class IB. Only
Class IA shares are available in this policy.
The fourth paragraph under the sub-section entitled "Illustration of Death
Benefits, Account Values and Cash Surrender Values" in the section entitled
"Statement of Additional Information" is deleted and replaced with the
following:
The amounts shown for the Death Benefit, Account Value and Cash 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 service 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 six "Illustration of Death Benefits, Account Values and Cash Surrender
Values" tables in the section entitled "Statement of Additional Information" are
replaced with the attached six tables.
The attached Financial Statements are added to the section entitled "Statement
of Additional Information."
THIS SUPPLEMENT SHOULD BE RETAINED WITH THE PROSPECTUS FOR FUTURE REFERENCE.
HV-2858 3 of 9
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
$1,000,000 BASIC FACE AMOUNT
ISSUE AGE 55 MALE PREFERRED PLUS
ISSUE AGE 50 FEMALE PREFERRED PLUS
$15,500 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
END OF ACCUMULATED ------------------------------------------
POLICY AT 5% INTEREST ACCOUNT DEATH ACCOUNT DEATH
YEAR PER YEAR VALUE BENEFIT VALUE BENEFIT
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------
1 16,275 6,680 1,000,000 6,394 1,000,000
2 33,364 19,953 1,000,000 19,353 1,000,000
3 51,307 34,498 1,000,000 33,550 1,000,000
4 70,147 50,424 1,000,000 49,093 1,000,000
5 89,930 67,850 1,000,000 66,095 1,000,000
6 110,701 88,649 1,000,000 86,426 1,000,000
7 132,511 111,402 1,000,000 108,660 1,000,000
8 155,412 136,282 1,000,000 132,968 1,000,000
9 179,457 163,485 1,000,000 159,536 1,000,000
10 204,705 193,216 1,000,000 188,564 1,000,000
11 231,215 229,768 1,000,000 222,118 1,000,000
12 259,051 270,293 1,000,000 258,942 1,000,000
13 288,279 315,224 1,000,000 299,354 1,000,000
14 318,968 365,037 1,000,000 343,710 1,000,000
15 351,191 420,269 1,000,000 392,428 1,000,000
16 385,026 481,516 1,000,000 445,992 1,000,000
17 420,552 549,420 1,000,000 504,986 1,000,000
18 457,855 624,749 1,000,000 570,107 1,000,000
19 497,022 708,362 1,000,000 642,201 1,000,000
20 538,148 801,221 1,000,000 722,294 1,000,000
25 724,270 1,444,567 1,545,687 1,282,288 1,372,048
30 1,014,302 2,523,963 2,650,162 2,209,470 2,319,943
----------------------------------------------------------------------
</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 Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
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.
HV-2858 4 of 9
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
$1,000,000 BASIC FACE AMOUNT
ISSUE AGE 55 MALE PREFERRED PLUS
ISSUE AGE 50 FEMALE PREFERRED PLUS
$15,500 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
END OF ACCUMULATED ----------------------------------------
POLICY AT 5% INTEREST ACCOUNT DEATH ACCOUNT DEATH
YEAR PER YEAR VALUE BENEFIT VALUE BENEFIT
<S> <C> <C> <C> <C> <C>
--------------------------------------------------------------------
1 16,275 6,292 1,000,000 6,015 1,000,000
2 33,364 18,443 1,000,000 17,877 1,000,000
3 51,307 31,027 1,000,000 30,160 1,000,000
4 70,147 44,044 1,000,000 42,861 1,000,000
5 89,930 57,486 1,000,000 55,975 1,000,000
6 110,701 73,017 1,000,000 71,160 1,000,000
7 132,511 89,027 1,000,000 86,810 1,000,000
8 155,412 105,507 1,000,000 102,912 1,000,000
9 179,457 122,441 1,000,000 119,451 1,000,000
10 204,705 139,804 1,000,000 136,400 1,000,000
11 231,215 161,268 1,000,000 155,241 1,000,000
12 259,051 183,757 1,000,000 174,565 1,000,000
13 288,279 207,314 1,000,000 194,321 1,000,000
14 318,968 231,979 1,000,000 214,441 1,000,000
15 351,191 257,801 1,000,000 234,853 1,000,000
16 385,026 284,822 1,000,000 255,471 1,000,000
17 420,552 313,053 1,000,000 276,209 1,000,000
18 457,855 342,569 1,000,000 296,972 1,000,000
19 497,022 373,449 1,000,000 317,658 1,000,000
20 538,148 405,775 1,000,000 338,147 1,000,000
25 724,270 590,461 1,000,000 431,253 1,000,000
30 1,014,302 820,834 1,000,000 482,101 1,000,000
--------------------------------------------------------------------
</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 Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
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.
HV-2858 5 of 9
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
$1,000,000 BASIC FACE AMOUNT
ISSUE AGE 55 MALE PREFERRED PLUS
ISSUE AGE 50 FEMALE PREFERRED PLUS
$15,500 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
END OF ACCUMULATED ----------------------------------------
POLICY AT 5% INTEREST ACCOUNT DEATH ACCOUNT DEATH
YEAR PER YEAR VALUE BENEFIT VALUE BENEFIT
<S> <C> <C> <C> <C> <C>
--------------------------------------------------------------------
1 16,275 5,905 1,000,000 5,637 1,000,000
2 33,364 16,979 1,000,000 16,447 1,000,000
3 51,307 27,784 1,000,000 26,992 1,000,000
4 70,147 38,302 1,000,000 37,254 1,000,000
5 89,930 48,512 1,000,000 47,212 1,000,000
6 110,701 59,988 1,000,000 58,439 1,000,000
7 132,511 71,082 1,000,000 69,287 1,000,000
8 155,412 81,765 1,000,000 79,728 1,000,000
9 179,457 92,003 1,000,000 89,726 1,000,000
10 204,705 101,752 1,000,000 99,238 1,000,000
11 231,215 114,373 1,000,000 109,481 1,000,000
12 259,051 126,818 1,000,000 119,144 1,000,000
13 288,279 139,081 1,000,000 128,139 1,000,000
14 318,968 151,144 1,000,000 136,362 1,000,000
15 351,191 163,000 1,000,000 143,695 1,000,000
16 385,026 174,630 1,000,000 150,001 1,000,000
17 420,552 185,974 1,000,000 155,138 1,000,000
18 457,855 197,038 1,000,000 158,938 1,000,000
19 497,022 207,831 1,000,000 161,216 1,000,000
20 538,148 218,359 1,000,000 161,750 1,000,000
25 724,270 263,445 1,000,000 125,579 1,000,000
30 1,014,302 285,807 1,000,000 0 0
--------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
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.
HV-2858 6 of 9
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
$750,000 BASIC FACE AMOUNT
$250,000 SUPPLEMENTAL FACE AMOUNT
ISSUE AGE 55 MALE PREFERRED PLUS
ISSUE AGE 50 FEMALE PREFERRED PLUS
$7,500 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
END OF ACCUMULATED ------------------------------------------
POLICY AT 5% INTEREST ACCOUNT DEATH ACCOUNT DEATH
YEAR PER YEAR VALUE BENEFIT VALUE BENEFIT
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------
1 7,875 3,592 1,000,000 3,228 1,000,000
2 16,144 9,643 1,000,000 8,876 1,000,000
3 24,826 16,213 1,000,000 15,002 1,000,000
4 33,942 23,333 1,000,000 21,632 1,000,000
5 43,514 31,031 1,000,000 28,789 1,000,000
6 53,565 40,534 1,000,000 37,693 1,000,000
7 64,118 50,797 1,000,000 47,294 1,000,000
8 75,199 61,861 1,000,000 57,626 1,000,000
9 86,834 73,767 1,000,000 68,721 1,000,000
10 99,051 86,549 1,000,000 80,605 1,000,000
11 111,878 103,060 1,000,000 93,838 1,000,000
12 125,347 121,316 1,000,000 107,964 1,000,000
13 139,490 141,514 1,000,000 123,029 1,000,000
14 154,339 163,850 1,000,000 139,025 1,000,000
15 169,931 188,552 1,000,000 155,942 1,000,000
16 186,303 215,861 1,000,000 173,757 1,000,000
17 203,493 246,010 1,000,000 192,446 1,000,000
18 221,543 279,326 1,000,000 211,980 1,000,000
19 240,495 316,176 1,000,000 232,327 1,000,000
20 260,394 356,970 1,000,000 253,437 1,000,000
25 375,851 634,935 1,000,000 366,725 1,000,000
30 523,206 1,104,324 1,159,540 477,313 1,000,000
----------------------------------------------------------------------
</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 Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
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.
HV-2858 7 of 9
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
$750,000 BASIC FACE AMOUNT
$250,000 SUPPLEMENTAL FACE AMOUNT
ISSUE AGE 55 MALE PREFERRED PLUS
ISSUE AGE 50 FEMALE PREFERRED PLUS
$7,500 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
END OF ACCUMULATED ----------------------------------------
POLICY AT 5% INTEREST ACCOUNT DEATH ACCOUNT DEATH
YEAR PER YEAR VALUE BENEFIT VALUE BENEFIT
<S> <C> <C> <C> <C> <C>
--------------------------------------------------------------------
1 7,875 3,371 1,000,000 3,017 1,000,000
2 16,144 8,862 1,000,000 8,139 1,000,000
3 24,826 14,491 1,000,000 13,383 1,000,000
4 33,942 20,240 1,000,000 18,729 1,000,000
5 43,514 26,087 1,000,000 24,155 1,000,000
6 53,565 33,160 1,000,000 30,788 1,000,000
7 64,118 40,321 1,000,000 37,489 1,000,000
8 75,199 47,537 1,000,000 44,223 1,000,000
9 86,834 54,766 1,000,000 50,946 1,000,000
10 99,051 61,949 1,000,000 57,600 1,000,000
11 111,878 71,804 1,000,000 64,625 1,000,000
12 125,347 82,038 1,000,000 71,446 1,000,000
13 139,490 92,659 1,000,000 77,950 1,000,000
14 154,339 103,673 1,000,000 83,996 1,000,000
15 169,931 115,140 1,000,000 89,422 1,000,000
16 186,303 127,059 1,000,000 94,035 1,000,000
17 203,493 139,386 1,000,000 97,626 1,000,000
18 221,543 152,147 1,000,000 99,955 1,000,000
19 240,495 165,369 1,000,000 100,737 1,000,000
20 260,394 179,082 1,000,000 99,623 1,000,000
25 375,851 250,882 1,000,000 46,289 1,000,000
30 523,206 318,971 1,000,000 0 0
--------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
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.
HV-2858 8 of 9
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
DEATH BENEFIT OPTION: LEVEL
$750,000 BASIC FACE AMOUNT
$250,000 SUPPLEMENTAL FACE AMOUNT
ISSUE AGE 55 MALE PREFERRED PLUS
ISSUE AGE 50 FEMALE PREFERRED PLUS
$7,500 PLANNED PREMIUM
ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)
<TABLE>
<CAPTION>
PREMIUMS CURRENT CHARGES* GUARANTEED CHARGES**
END OF ACCUMULATED ----------------------------------------
POLICY AT 5% INTEREST ACCOUNT DEATH ACCOUNT DEATH
YEAR PER YEAR VALUE BENEFIT VALUE BENEFIT
<S> <C> <C> <C> <C> <C>
--------------------------------------------------------------------
1 7,875 3,150 1,000,000 2,808 1,000,000
2 16,144 8,109 1,000,000 7,429 1,000,000
3 24,826 12,889 1,000,000 11,878 1,000,000
4 33,942 17,472 1,000,000 16,134 1,000,000
5 43,514 21,832 1,000,000 20,171 1,000,000
6 53,565 27,053 1,000,000 25,074 1,000,000
7 64,118 31,975 1,000,000 29,682 1,000,000
8 75,199 36,562 1,000,000 33,959 1,000,000
9 86,834 40,775 1,000,000 37,866 1,000,000
10 99,051 44,560 1,000,000 41,348 1,000,000
11 111,878 50,579 1,000,000 44,824 1,000,000
12 125,347 56,451 1,000,000 47,728 1,000,000
13 139,490 62,165 1,000,000 49,959 1,000,000
14 154,339 67,705 1,000,000 51,394 1,000,000
15 169,931 73,060 1,000,000 51,892 1,000,000
16 186,303 78,206 1,000,000 51,292 1,000,000
17 203,493 83,077 1,000,000 49,416 1,000,000
18 221,543 87,677 1,000,000 46,060 1,000,000
19 240,495 92,012 1,000,000 40,995 1,000,000
20 260,394 96,088 1,000,000 33,942 1,000,000
25 375,851 107,333 1,000,000 0 0
30 523,206 88,418 1,000,000 0 0
--------------------------------------------------------------------
</TABLE>
*These values reflect investment results using current cost of insurance rates,
administrative fees, and Mortality and Expense Risk rates.
**These values reflect investment results using guaranteed cost of insurance
rates, administrative fees, and Mortality and Expense Risk rates.
The Death Benefit may, and the Account Values and Cash Surrender Values will
differ if premiums are paid in different amounts or frequencies.
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.
HV-2858 9 of 9
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Financial Statements
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
INDEX FOR HARTFORD AND FIDELITY
SUB-ACCOUNTS
Statements of Assets and
Liabilities For the Period Ended
September 30, 2000
(unaudited)..................... SA-2
Statements of Operations For the
Period Ended September 30, 2000
(unaudited)..................... SA-4
Statements of Changes in Net
Assets For the Period Ended
September 30, 2000
(unaudited)..................... SA-6
INDEX FOR PUTNAM SUB-ACCOUNTS
Statements of Assets and
Liabilities For the Period Ended
September 30, 2000
(unaudited)..................... SA-8
Statements of Operations For the
Period Ended September 30, 2000
(unaudited)..................... SA-12
Statements of Changes in Net
Assets For the Period Ended
September 30, 2000
(unaudited)..................... SA-15
</TABLE>
SA-1
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Assets and Liabilities (unaudited)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Bond Stock Money Advisers Capital Mortgage Index
Fund Fund Market Fund Appreciation Securities Fund
Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account
Sub-Account Sub-Account Sub-Account
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
-------------------------------------------------------------------------------------------------------------------------
HARTFORD BOND HLS FUND, INC. --
CLASS IA
Shares 7,514,382
Cost $7,915,494
........................................................................................................................
Market Value $7,990,373 $ -- $ -- $ -- $ -- $ -- $ --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD STOCK HLS
FUND, INC. -- CLASS IA
Shares 5,294,047
Cost $34,679,305
........................................................................................................................
Market Value -- 32,906,774 -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD MONEY MARKET HLS
FUND, INC. -- CLASS IA
Shares 31,594,607
Cost $31,594,607
........................................................................................................................
Market Value -- -- 31,594,607 -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD ADVISERS HLS
FUND, INC. -- CLASS IA
Shares 7,949,249
Cost $22,674,211
........................................................................................................................
Market Value -- -- -- 21,567,481 -- -- --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS
FUND, INC. -- CLASS IA
Shares 3,745,296
Cost $21,015,095
........................................................................................................................
Market Value -- -- -- -- 23,650,071 -- --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD MORTGAGE SECURITIES HLS
FUND, INC. -- CLASS IA
Shares 1,003,299
Cost $1,081,666
........................................................................................................................
Market Value -- -- -- -- -- 1,101,616 --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD INDEX HLS
FUND, INC. -- CLASS IA
Shares 9,625,511
Cost $35,192,153
........................................................................................................................
Market Value -- -- -- -- -- -- 39,243,361
-------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS FUND, INC. --
CLASS IA
Shares 3,894,076
Cost $5,970,516
........................................................................................................................
Market Value -- -- -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life & Annuity
Insurance Company 20,520 76,469 206,964 76,630 222,713 3,040 630,903
........................................................................................................................
Receivable from fund shares sold -- -- -- -- -- -- --
........................................................................................................................
Total Assets 8,010,893 32,983,243 31,801,571 21,644,111 23,872,784 1,104,656 39,874,264
........................................................................................................................
LIABILITIES:
Due to Hartford Life & Annuity
Insurance Company -- -- -- -- -- -- --
........................................................................................................................
Payable for fund shares purchased 20,553 76,402 203,021 76,596 222,869 3,043 631,594
........................................................................................................................
TOTAL LIABILITIES 20,553 76,402 203,021 76,596 222,869 3043 631,594
-------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $7,990,340 $32,906,841 $31,598,550 $21,567,515 $23,649,915 $1,101,613 $39,242,670
-------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 5,107,956 8,994,897 22,110,371 8,000,325 5,821,905 708,325 11,141,646
........................................................................................................................
Unit Values $ 1.564293 $ 3.658390 $ 1.429128 $ 2.695830 $ 4.062230 $ 1.555236 $ 3.522161
-------------------------------------------------------------------------------------------------------------------------
<S> <C>
September 30, 2000 International
Opportunities
Fund
Sub-Account
-----------------------------------------------------------
ASSETS
Investments:
----------------------------------------------------------------------
HARTFORD BOND HLS FUND, INC. --
CLASS IA
Shares 7,514,382
Cost $7,915,494
................................
Market Value $ --
---------------------------------------------------------------------------------
HARTFORD STOCK HLS
FUND, INC. -- CLASS IA
Shares 5,294,047
Cost $34,679,305
................................
Market Value --
--------------------------------------------------------------------------------------------
HARTFORD MONEY MARKET HLS
FUND, INC. -- CLASS IA
Shares 31,594,607
Cost $31,594,607
................................
Market Value --
-------------------------------------------------------------------------------------------------------
HARTFORD ADVISERS HLS
FUND, INC. -- CLASS IA
Shares 7,949,249
Cost $22,674,211
................................
Market Value --
------------------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS
FUND, INC. -- CLASS IA
Shares 3,745,296
Cost $21,015,095
................................
Market Value --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD MORTGAGE SECURITIES HLS
FUND, INC. -- CLASS IA
Shares 1,003,299
Cost $1,081,666
................................
Market Value --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD INDEX HLS
FUND, INC. -- CLASS IA
Shares 9,625,511
Cost $35,192,153
................................
Market Value --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS FUND, INC. --
CLASS IA
Shares 3,894,076
Cost $5,970,516
................................
Market Value 5,674,413
-------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life & Annuity
Insurance Company 724,351
................................
Receivable from fund shares sold --
................................
Total Assets 6,398,764
................................
LIABILITIES:
Due to Hartford Life & Annuity
Insurance Company --
................................
Payable for fund shares purchased 724,458
................................
TOTAL LIABILITIES 724,458
-------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $5,674,306
-------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 2,717,349
................................
Unit Values $ 2.088177
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-2
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Assets and Liabilities (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Dividend Growth International Small MidCap Fidelity VIP Fidelity
and Growth and Income Advisers Company Fund Equity-Income VIP
Fund Fund Fund Fund Sub-Account Portfolio Overseas
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Portfolio
Sub-Account
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
-------------------------------------------------------------------------------------------------------------------------
HARTFORD DIVIDEND AND GROWTH
HLS FUND, INC. -- CLASS IA
Shares 5,186,170
Cost $10,813,960
........................................................................................................................
Market Value $10,649,318 $ -- $ -- $ -- $ -- $ -- $ --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD GROWTH AND INCOME
HLS FUND, INC. -- CLASS IA
Shares 2,961,844
Cost $4,038,772
........................................................................................................................
Market Value -- 4,261,042 -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
ADVISERS HLS FUND, INC. --
CLASS IA
Shares 386,985
Cost $487,391
........................................................................................................................
Market Value -- -- 475,840 -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD SMALL COMPANY HLS
FUND, INC. -- CLASS IA
Shares 1,808,038
Cost $3,552,000
........................................................................................................................
Market Value -- -- -- 3,447,890 -- -- --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD MIDCAP HLS
FUND, INC. -- CLASS IA
Shares 2,823,096
Cost $6,033,426
........................................................................................................................
Market Value -- -- -- -- 7,411,236 -- --
-------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Shares 244,344
Cost $5,878,670
........................................................................................................................
Market Value -- -- -- -- -- 5,996,190 --
-------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP OVERSEAS
PORTFOLIO
Shares 190,098
Cost $4,183,903
........................................................................................................................
Market Value -- -- -- -- -- -- 4,136,542
-------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP II ASSET MANAGER
PORTFOLIO
Shares 165,358
Cost $2,832,037
........................................................................................................................
Market Value -- -- -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life &
Annuity Insurance Company 4,242 43,308 2,372 93,067 252,603 -- 14
........................................................................................................................
Receivable from fund shares
sold -- -- -- -- -- 1,188 --
........................................................................................................................
Total Assets 10,653,560 4,304,350 478,212 3,540,957 7,663,839 5,997,378 4,136,556
........................................................................................................................
LIABILITIES:
Due to Hartford Life &
Annuity Insurance Company -- -- -- -- -- 1,326 --
........................................................................................................................
Payable for fund shares
purchased 4,263 43,328 2,375 93,078 252,610 -- --
........................................................................................................................
TOTAL LIABILITIES 4,263 43,328 2,375 93,078 252,610 1,326 --
-------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $10,649,297 $4,261,022 $ 475,837 $3,447,879 $7,411,229 $5,996,052 $4,136,556
-------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 4,132,024 2,994,553 402,202 1,967,006 3,321,369 2,760,780 2,153,983
........................................................................................................................
Unit Values $ 2.577259 $ 1.422924 $ 1.183079 $ 1.752856 $ 2.231378 $ 2.171869 $ 1.920422
-------------------------------------------------------------------------------------------------------------------------
<S> <C>
September 30, 2000 Fidelity
VIP II
Asset
Manager
Portfolio
Sub-Account
-------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments:
-------------------------------------------------------------------------------------------------------------------------
HARTFORD DIVIDEND AND GROWTH
HLS FUND, INC. -- CLASS IA
Shares 5,186,170
Cost $10,813,960
............................
Market Value $ --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD GROWTH AND INCOME
HLS FUND, INC. -- CLASS IA
Shares 2,961,844
Cost $4,038,772
............................
Market Value --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD INTERNATIONAL
ADVISERS HLS FUND, INC. --
CLASS IA
Shares 386,985
Cost $487,391
............................
Market Value --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD SMALL COMPANY HLS
FUND, INC. -- CLASS IA
Shares 1,808,038
Cost $3,552,000
............................
Market Value --
-------------------------------------------------------------------------------------------------------------------------
HARTFORD MIDCAP HLS
FUND, INC. -- CLASS IA
Shares 2,823,096
Cost $6,033,426
............................
Market Value --
-------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Shares 244,344
Cost $5,878,670
............................
Market Value --
-------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP OVERSEAS
PORTFOLIO
Shares 190,098
Cost $4,183,903
............................
Market Value --
-------------------------------------------------------------------------------------------------------------------------
FIDELITY VIP II ASSET MANAGER
PORTFOLIO
Shares 165,358
Cost $2,832,037
............................
Market Value 2,751,550
-------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life &
Annuity Insurance Company --
............................
Receivable from fund shares
sold --
............................
Total Assets 2,751,550
............................
LIABILITIES:
Due to Hartford Life &
Annuity Insurance Company 3
............................
Payable for fund shares
purchased --
............................
TOTAL LIABILITIES 3
-------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $2,751,547
-------------------------------------------------------------------------------------------------------------------------
Units Owned by Participants 1,415,440
............................
Unit Values $ 1.943951
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-3
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Operations (unaudited)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Bond Stock Money Advisers Capital Mortgage Index
September 30, 2000 Fund Fund Market Fund Appreciation Securities Fund
Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account
Sub-Account Sub-Account Sub-Account
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 38,669 $ 7,409 $1,250,566 $ 40,704 $ 7,511 $ 6,896 $ 3,610
............................................................................................................................
Capital gains income -- 3,059,824 (739) 1,620,074 2,481,806 -- 338,727
............................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
............................................................................................................................
Net realized gain (loss) on
security transactions 26,463 (14,799) -- (29,127) (104,658) 178 (3,364)
............................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 484,317 (3,803,357) -- (1,562,856) 340,063 52,654 (841,310)
............................................................................................................................
Net gain (loss) on investments 510,780 (3,818,156) -- (1,591,983) 235,405 52,832 (844,674)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $549,449 $ (750,923) $1,249,827 $ 68,795 $2,724,722 $59,728 $(502,337)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended International
September 30, 2000 Opportunities
Fund
Sub-Account
--------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 29,701
................................
Capital gains income 475,725
................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
................................
Net realized gain (loss) on
security transactions 128,103
................................
Net unrealized appreciation
(depreciation) of investments
during the period (1,055,552)
................................
Net gain (loss) on investments (927,449)
---------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $ (422,023)
----------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-4
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Operations (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Dividend Growth International Small MidCap Fidelity VIP Fidelity
September 30, 2000 and Growth and Income Advisers Company Fund Equity-Income VIP
Fund Fund Fund Fund Sub-Account Portfolio Overseas
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Portfolio
Sub-Account
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 7,056 $ 172 $ 4,149 $ -- $ -- $ 62,505 $ 37,000
...............................................................................................................................
Capital gains income 774,909 35,805 22,479 317,699 206,296 235,484 233,002
...............................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
...............................................................................................................................
Net realized (loss) gain on
security transactions (25,891) (1,883) 3,557 (60,034) 4,408 8,573 46,578
...............................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period (260,045) 20,238 (47,020) (441,236) 996,812 11,852 (530,125)
...............................................................................................................................
Net gain (loss) on investments (285,936) 18,355 (43,463) (501,270) 1,001,220 20,425 (483,547)
--------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $ 496,029 $54,332 $(16,835) $(183,571) $1,207,516 $318,414 $(213,545)
--------------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended Fidelity
September 30, 2000 VIP II
Asset
Manager
Portfolio
Sub-Account
-----------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 59,726
................................
Capital gains income 140,711
................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
................................
Net realized (loss) gain on
security transactions (7,282)
................................
Net unrealized appreciation
(depreciation) of investments
during the period (180,578)
................................
Net gain (loss) on investments (187,860)
----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $ 12,577
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-5
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Changes in Net Assets (unaudited)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Bond Stock Money Advisers Capital Mortgage Index
September 30, 2000 Fund Fund Market Fund Appreciation Securities Fund
Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account
Sub-Account Sub-Account Sub-Account
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 38,669 $ 7,409 $ 1,250,566 $ 40,704 $ 7,511 $ 6,896 $ 3,610
........................................................................................................................
Capital gains income -- 3,059,824 (739) 1,620,074 2,481,806 -- 338,727
........................................................................................................................
Net realized gain (loss) on
security transactions 26,463 (14,799) -- (29,127) (104,658) 178 (3,364)
........................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period 484,317 (3,803,357) -- (1,562,856) 340,063 52,654 (841,310)
........................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 549,449 (750,923) 1,249,827 68,795 2,724,722 59,728 (502,337)
........................................................................................................................
UNIT TRANSACTIONS:
Purchases 1,419,321 5,005,928 89,228,782 3,284,964 3,394,462 124,742 4,918,736
........................................................................................................................
Net transfers 389,234 11,310,878 (89,798,781) 5,805,901 8,055,227 329,715 9,526,065
........................................................................................................................
Surrenders for benefit payments
and fees (166,647) (724,352) (220,909) (594,986) (418,028) (6,205) (722,957)
........................................................................................................................
Net loan withdrawals (498) (48,818) (246,159) (12,269) (13,190) -- (11,162)
........................................................................................................................
Cost of insurance (308,805) (1,629,859) (3,778,178) (1,175,470) (1,018,489) (29,601) (1,315,478)
........................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions 1,332,605 13,913,777 (4,815,245) 7,308,140 9,999,982 418,651 12,395,204
........................................................................................................................
Total increase (decrease) in net
assets 1,882,054 13,162,854 (3,565,418) 7,376,935 12,724,704 478,379 11,892,867
........................................................................................................................
NET ASSETS:
Beginning of period 6,108,286 19,743,987 35,163,968 14,190,580 10,925,211 623,234 27,349,803
-------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $7,990,340 $32,906,841 $31,598,550 $21,567,515 $23,649,915 $1,101,613 $39,242,670
-------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended International
September 30, 2000 Opportunities
Fund
Sub-Account
-------------------------------------------------------------
OPERATIONS:
Net investment income $ 29,701
................................
Capital gains income 475,725
................................
Net realized gain (loss) on
security transactions 128,103
................................
Net unrealized appreciation
(depreciation) of investments
during the period (1,055,552)
................................
Net increase (decrease) in net
assets resulting from
operations (422,023)
................................
UNIT TRANSACTIONS:
Purchases 701,331
................................
Net transfers 2,643,195
................................
Surrenders for benefit payments
and fees (93,986)
................................
Net loan withdrawals (18,397)
................................
Cost of insurance (187,945)
................................
Net increase (decrease) in net
assets resulting from unit
transactions 3,044,198
................................
Total increase (decrease) in net
assets 2,622,175
................................
NET ASSETS:
Beginning of period 3,052,131
-------------------------------------------------------------------------
END OF PERIOD $5,674,306
-------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-6
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Changes in Net Assets (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Dividend Growth International Small MidCap Fidelity VIP Fidelity
September 30, 2000 and Growth and Income Advisers Company Fund Equity-Income VIP
Fund Fund Fund Fund Sub-Account Portfolio Overseas
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Portfolio
Sub-Account
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 7,056 $ 172 $ 4,149 $ -- $ -- $ 62,505 $ 37,000
............................................................................................................................
Capital gains income 774,909 35,805 22,479 317,699 206,296 235,484 233,002
............................................................................................................................
Net realized (loss) gain on
security transactions (25,891) (1,883) 3,557 (60,034) 4,408 8,573 46,578
............................................................................................................................
Net unrealized appreciation
(depreciation) of investments
during the period (260,045) 20,238 (47,020) (441,236) 996,812 11,852 (530,125)
............................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 496,029 54,332 (16,835) (183,571) 1,207,516 318,414 (213,545)
............................................................................................................................
UNIT TRANSACTIONS:
Purchases 1,683,743 443,409 72,525 521,781 632,345 1,147,605 350,805
............................................................................................................................
Net transfers 2,577,823 1,884,807 184,552 2,015,679 3,771,845 1,394,607 2,207,599
............................................................................................................................
Surrenders for benefit payments
and fees (191,278) (44,688) (9,615) (17,036) (73,941) (116,176) (60,874)
............................................................................................................................
Net loan withdrawals (9,476) (11,044) -- (8,799) (9,099) (22,320) (39)
............................................................................................................................
Cost of insurance (362,741) (211,119) (17,135) (173,961) (285,913) (268,584) (136,408)
............................................................................................................................
Net increase in net assets
resulting from unit
transactions 3,698,071 2,061,365 230,327 2,337,664 4,035,237 2,135,132 2,361,083
............................................................................................................................
Total increase in net assets 4,194,100 2,115,697 213,492 2,154,093 5,242,753 2,453,546 2,147,538
............................................................................................................................
NET ASSETS:
Beginning of period 6,455,197 2,145,325 262,345 1,293,786 2,168,476 3,542,506 1,989,018
-----------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $10,649,297 $4,261,022 $475,837 $3,447,879 $7,411,229 $5,996,052 $4,136,556
-----------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended Fidelity
September 30, 2000 VIP II
Asset
Manager
Portfolio
Sub-Account
-------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 59,726
................................
Capital gains income 140,711
................................
Net realized (loss) gain on
security transactions (7,282)
................................
Net unrealized appreciation
(depreciation) of investments
during the period (180,578)
................................
Net increase (decrease) in net
assets resulting from
operations 12,577
................................
UNIT TRANSACTIONS:
Purchases 257,110
................................
Net transfers 1,045,311
................................
Surrenders for benefit payments
and fees (292,178)
................................
Net loan withdrawals --
................................
Cost of insurance (82,276)
................................
Net increase in net assets
resulting from unit
transactions 927,967
................................
Total increase in net assets 940,544
................................
NET ASSETS:
Beginning of period 1,811,003
-------------------------------------------------------------------------------------------------------------
END OF PERIOD $2,751,547
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-7
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Assets & Liabilities (unaudited)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Asia Diversified The George Global Global Growth Health
Pacific Income Putnam Asset Growth and Income Sciences
Growth Sub-Account Fund Allocation Sub-Account Sub-Account Sub-Account
Sub-Account of Boston Sub-Account
Sub-Account
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT ASIA PACIFIC GROWTH
FUND
Shares 53,737
Cost $676,738
........................................................................................................................
Market Value: $603,461 $ -- $ -- $ -- $ -- $ -- $ --
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT DIVERSIFIED INCOME FUND
Shares 72,469
Cost $724,439
........................................................................................................................
Market Value: -- 668,164 -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT THE GEORGE PUTNAM FUND
OF BOSTON
Shares 54,369
Cost $550,851
........................................................................................................................
Market Value: -- -- 567,073 -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GLOBAL ASSET ALLOCATION
FUND
Shares 80,109
Cost $1,424,352
........................................................................................................................
Market Value: -- -- -- 1,377,082 -- -- --
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GLOBAL GROWTH FUND
Shares 391,945
Cost $8,586,251
........................................................................................................................
Market Value: -- -- -- -- 8,548,311 -- --
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT GROWTH AND INCOME FUND
Shares 672,947
Cost $17,627,510
........................................................................................................................
Market Value: -- -- -- -- -- 16,689,093 --
-------------------------------------------------------------------------------------------------------------------------
PUTNAM VT HEALTH SCIENCES FUND
Shares 170,361
Cost $2,079,288
........................................................................................................................
Market Value: -- -- -- -- -- -- 2,509,424
-------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company - 3,432 2 15 40,817 7,574 (1,065)
........................................................................................................................
Receivable from fund shares sold 132,954 -- -- -- -- -- --
........................................................................................................................
Total Assets 736,415 671,596 567,075 1,377,097 8,589,128 16,696,667 2,510,489
........................................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company 133,025 -- -- -- -- -- -
........................................................................................................................
Payable for fund shares purchased - 3,432 -- - 41,194 7,374 1,454
........................................................................................................................
TOTAL LIABILITIES 133,025 3,432 -- -- 41,194 7,374 1,454
-------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $603,390 $ 668,164 $567,075 $1,377,097 $8,547,934 $16,689,293 $2,509,035
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-8
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Assets & Liabilities (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 High Yield Income International International International Investors
Sub-Account Sub-Account Growth Growth and New Sub-Account
Sub-Account Income Opportunities
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
------------------------------------------------------------------------------------------------------------------------
PUTNAM VT HIGH YIELD FUND
Shares 511,936
Cost $5,583,696
.......................................................................................................................
Market Value: $4,904,343 $ -- $ -- $ -- $ -- $ --
------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INCOME FUND
Shares 231,713
Cost $2,966,496
.......................................................................................................................
Market Value: -- 2,836,164 -- -- -- --
------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL GROWTH
FUND
Shares 220,398
Cost $4,213,319
.......................................................................................................................
Market Value: -- -- 3,980,394 -- -- --
------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL GROWTH
AND INCOME FUND
Shares 145,826
Cost $1,953,064
.......................................................................................................................
Market Value: -- -- -- 1,859,287 -- --
------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL NEW
OPPORTUNITIES FUND
Shares 194,967
Cost $3,628,350
.......................................................................................................................
Market Value: -- -- -- -- 3,285,202 --
------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INVESTORS FUND
Shares 301,733
Cost $4,198,515
.......................................................................................................................
Market Value: -- -- -- -- -- 4,384,188
------------------------------------------------------------------------------------------------------------------------
PUTNAM VT MONEY MARKET FUND
Shares 1,865,766
Cost $1,865,766
.......................................................................................................................
Market Value: -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company 407 5 55,704 -- 1,535 1,279
.......................................................................................................................
Receivable from fund shares sold -- -- -- -- -- --
.......................................................................................................................
Total Assets 4,904,750 2,836,169 4,036,098 1,859,287 3,286,737 4,385,467
.......................................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company -- -- -- 11 -- --
.......................................................................................................................
Payable for fund shares purchased 387 -- 55,212 -- 1,625 1,255
.......................................................................................................................
TOTAL LIABILITIES 387 -- 55,212 11 1,625 1,255
------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $4,904,363 $2,836,169 $3,980,886 $1,859,276 $3,285,112 $4,384,212
------------------------------------------------------------------------------------------------------------------------
<S> <C>
September 30, 2000 Money
Market
Sub-Account
--------------------------------------------------------------
ASSETS
Investments:
----------------------------------------------------------------------------
PUTNAM VT HIGH YIELD FUND
Shares 511,936
Cost $5,583,696
................................
Market Value: $ --
------------------------------------------------------------------------------------------
PUTNAM VT INCOME FUND
Shares 231,713
Cost $2,966,496
................................
Market Value: --
--------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL GROWTH
FUND
Shares 220,398
Cost $4,213,319
................................
Market Value: --
----------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL GROWTH
AND INCOME FUND
Shares 145,826
Cost $1,953,064
................................
Market Value: --
------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INTERNATIONAL NEW
OPPORTUNITIES FUND
Shares 194,967
Cost $3,628,350
................................
Market Value: --
------------------------------------------------------------------------------------------------------------------------
PUTNAM VT INVESTORS FUND
Shares 301,733
Cost $4,198,515
................................
Market Value: --
------------------------------------------------------------------------------------------------------------------------
PUTNAM VT MONEY MARKET FUND
Shares 1,865,766
Cost $1,865,766
................................
Market Value: 1,865,766
------------------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company --
................................
Receivable from fund shares sold 8,683
................................
Total Assets 1,874,449
................................
LIABILITIES
Due to Hartford Life Insurance
Company 8,401
................................
Payable for fund shares purchased --
................................
TOTAL LIABILITIES 8,401
------------------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $1,866,048
------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-9
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Assets & Liabilities (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 New New Value OTC & Utilities Vista Voyager
Opportunities Sub-Account Emerging Growth Sub-Account Sub-Account
Sub-Account Growth and Income
Sub-Account Sub-Account
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
---------------------------------------------------------------------------------------------------------------
PUTNAM VT NEW OPPORTUNITIES FUND
Shares 248,033
Cost $8,610,079
..............................................................................................................
Market Value: $10,409,949 $ -- $ -- $ -- $ -- $ --
---------------------------------------------------------------------------------------------------------------
PUTNAM VT NEW VALUE FUND
Shares 153,610
Cost $1,823,205
..............................................................................................................
Market Value: -- 1,894,009 -- -- -- --
---------------------------------------------------------------------------------------------------------------
PUTNAM VT OTC & EMERGING GROWTH
FUND
Shares 121,450
Cost $2,395,820
..............................................................................................................
Market Value: -- -- 2,252,891 -- -- --
---------------------------------------------------------------------------------------------------------------
PUTNAM VT UTILITIES GROWTH &
INCOME FUND
Shares 122,181
Cost $2,034,678
..............................................................................................................
Market Value: -- -- -- 2,161,388 -- --
---------------------------------------------------------------------------------------------------------------
PUTNAM VT VISTA FUND
Shares 139,778
Cost $3,056,914
..............................................................................................................
Market Value: -- -- -- -- 3,465,099 --
---------------------------------------------------------------------------------------------------------------
PUTNAM VT VOYAGER FUND
Shares 364,702
Cost $19,441,087
..............................................................................................................
Market Value: -- -- -- -- -- 20,864,578
---------------------------------------------------------------------------------------------------------------
Due from Hartford Life Insurance
Company -- 136 655 4,226 12,573 37,843
..............................................................................................................
Receivable from fund shares sold 191,561 -- -- -- -- --
..............................................................................................................
Total Assets 10,601,510 1,894,145 2,253,546 2,165,614 3,477,672 20,902,421
..............................................................................................................
LIABILITIES
Due to Hartford Life Insurance
Company 191,149 -- -- -- -- --
..............................................................................................................
Payable for fund shares purchased -- -- -- 4,290 12,177 34,539
..............................................................................................................
TOTAL LIABILITIES 191,149 -- -- 4,290 12,177 34,539
---------------------------------------------------------------------------------------------------------------
NET ASSETS (VARIABLE LIFE
CONTRACT LIABILITIES) $10,410,361 $1,894,145 $2,253,546 $2,161,324 $3,465,495 $20,867,882
---------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-10
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Assets & Liabilities (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
September 30, 2000 Units Unit Contract
Owned by Price Liability
Participants
------------------------------------------------------------------------------------
<S> <C> <C> <C>
Variable life contracts:
Asia Pacific Growth Fund 40,400 $14.935338 $ 603,390
...................................................................................
Diversified Income Fund 50,953 13.113302 668,164
...................................................................................
George Putnam Fund of Boston 51,363 11.040569 567,075
...................................................................................
Global Asset Allocation Fund 60,359 22.815002 1,377,097
...................................................................................
Global Growth Fund 259,185 32.980056 8,547,934
...................................................................................
Growth and Income Fund 620,729 26.886600 16,689,293
...................................................................................
Health Sciences Fund 165,596 15.151502 2,509,035
...................................................................................
High Yield Fund 304,351 16.114172 4,904,363
...................................................................................
Income Fund 187,848 15.098227 2,836,169
...................................................................................
International Growth Fund 275,242 14.463235 3,980,886
...................................................................................
International Growth and Income Fund 156,999 11.842557 1,859,276
...................................................................................
International New Opportunities Fund 219,783 14.947040 3,285,112
...................................................................................
Investors Fund 314,281 13.949961 4,384,212
...................................................................................
Money Market Fund 1,315,863 1.418117 1,866,048
...................................................................................
New Opportunities Fund 260,454 39.970028 10,410,361
...................................................................................
New Value Fund 159,245 11.894540 1,894,145
...................................................................................
OTC & Emerging Growth Fund 112,430 20.043914 2,253,546
...................................................................................
Utilities Growth and Income Fund 87,628 24.664702 2,161,324
...................................................................................
Vista Fund 176,299 19.656868 3,465,495
...................................................................................
Voyager Fund 466,936 44.691134 20,867,882
...................................................................................
GRAND TOTAL: $95,130,807
------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-11
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Operations (unaudited)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Asia Diversified The George Global Global Growth Health
September 30, 2000 Pacific Income Putnam Asset Growth and Income Sciences
Growth Sub-Account Fund Allocation Sub-Account Sub-Account Sub-Account
Sub-Account of Boston Sub-Account
Sub-Account
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 27,228 $ 42,580 $ -- $ 12,034 $ 52,321 $ 219,766 $ --
......................................................................................................................
Capital gains income -- -- -- 62,848 1,303,909 1,034,713 --
......................................................................................................................
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
......................................................................................................................
Net realized gain (loss) on
security transactions 994 1,202 (15) 54 (35,632) (26,064) (10,267)
......................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (299,791) (37,982) 23,766 (93,212) (2,738,089) (542,870) 401,443
......................................................................................................................
Net (loss) gain on investments (298,797) (36,780) 23,751 (93,158) (2,773,721) (568,934) 391,176
-----------------------------------------------------------------------------------------------------------------------
NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS: $(271,569) $ 5,800 $23,751 $(18,276) $(1,417,491) $ 685,545 $391,176
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-12
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Operations (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended High Yield Income International International International Investors
September 30, 2000 Sub-Account Sub-Account Growth Growth and New Sub-Account
Sub-Account Income Opportunities
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 466,428 $183,713 $ 40,512 $ 32,920 $ 471 $ --
.......................................................................................................................
Capital gains income -- -- 175,715 72,162 44,254 --
------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
.......................................................................................................................
Net realized (loss) gain on
security transactions (7,217) (11,048) 14,964 25,712 231,244 (9,911)
.......................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (571,009) (42,201) (503,625) (133,232) (534,588) (129,450)
.......................................................................................................................
Net (loss) gain on investments (578,226) (53,249) (488,661) (107,520) (303,344) (139,361)
------------------------------------------------------------------------------------------------------------------------
NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS: $(111,798) $130,464 $(272,434) $ (2,438) $(258,619) $(139,361)
------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended Money
September 30, 2000 Market
Sub-Account
--------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 98,605
................................
Capital gains income --
----------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
................................
Net realized (loss) gain on
security transactions --
................................
Net unrealized (depreciation)
appreciation of investments
during the period --
................................
Net (loss) gain on investments --
------------------------------------------------------------------------------------------
NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS: $ 98,605
--------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-13
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Operations (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended New New OTC & Utilities Vista Voyager
September 30, 2000 Opportunities Value Emerging Growth Sub-Account Sub-Account
Sub-Account Sub-Account Growth and
Sub-Account Income
Sub-Account
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ -- $ 13,729 $ -- $ 44,777 $ -- $ 4,464
............................................................................................................
Capital gains income 585,307 48,619 12,177 79,045 15,030 1,894,262
-------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
............................................................................................................
Net realized (loss) gain on
security transactions (101,488) (5,820) (15,039) (16,860) (20,259) 1,416
............................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (298,837) 87,169 (352,082) 119,606 265,990 (2,334,093)
............................................................................................................
Net (loss) gain on investments (400,325) 81,349 (367,121) 102,746 245,731 (2,332,677)
-------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS: $ 184,982 $143,697 $(354,944) $226,568 $260,761 $ (433,951)
-------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-14
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Changes in Net Assets (unaudited)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended Asia Diversified The George Global Asset Global Growth Health
September 30, 2000 Pacific Income Putnam Fund Allocation Growth and Income Sciences
Growth Sub-Account of Boston Sub-Account Sub-Account Sub-Account Sub-Account
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 27,228 $ 42,580 $ -- $ 12,034 $ 52,321 $ 219,766 $ --
.............................................................................................................................
Capital gains income -- -- -- 62,848 1,303,909 1,034,713 --
.............................................................................................................................
Net realized gain (loss) on
security transactions 994 1,202 (15) 54 (35,632) (26,064) (10,267)
.............................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (299,791) (37,982) 23,766 (93,212) (2,738,089) (542,870) 401,443
.............................................................................................................................
Net (decrease) increase in net
assets resulting from
operations (271,569) 5,800 23,751 (18,276) (1,417,491) 685,545 391,176
.............................................................................................................................
UNIT TRANSACTIONS:
Purchases 82,533 51,287 89,619 181,242 1,867,759 2,689,788 263,170
.............................................................................................................................
Net transfers 63,445 153,866 235,062 647,733 1,028,982 4,697,316 1,409,194
.............................................................................................................................
Surrenders for benefit payments
and fees (9,343) (89,908) (10,095) (14,905) (457,308) (306,181) (64,926)
.............................................................................................................................
Net loan activity -- -- -- -- (18,965) (5,793) (18)
.............................................................................................................................
Cost of insurance (29,558) (31,555) (29,554) (45,757) (293,928) (745,281) (98,454)
.............................................................................................................................
Net increase (decrease) in net
assets resulting from unit
transactions 107,077 83,690 285,032 768,313 2,126,540 6,329,849 1,508,966
.............................................................................................................................
Total (decrease) increase in net
assets (164,492) 89,490 308,783 750,037 709,049 7,015,394 1,900,142
.............................................................................................................................
NET ASSETS:
Beginning of period 767,882 578,674 258,292 627,060 7,838,885 9,673,899 608,893
------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $603,390 $ 668,164 $567,075 $1,377,097 $8,547,934 $16,689,293 $2,509,035
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-15
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Changes in Net Assets (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended High Yield Income International International International Investors
September 30, 2000 Sub-Account Sub-Account Growth Growth and New Sub-Account
Sub-Account Income Opportunities
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 466,428 $ 183,713 $ 40,512 $ 32,920 $ 471 $ --
.......................................................................................................................
Capital gains income -- -- 175,715 72,162 44,254 --
.......................................................................................................................
Net realized (loss) gain on
security transactions (7,217) (11,048) 14,964 25,712 231,244 (9,911)
.......................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (571,009) (42,201) (503,625) (133,232) (534,588) (129,450)
.......................................................................................................................
Net (decrease) increase in net
assets resulting from
operations (111,798) 130,464 (272,434) (2,438) (258,619) (139,361)
.......................................................................................................................
UNIT TRANSACTIONS:
Purchases 660,989 424,515 543,168 162,724 160,642 747,207
.......................................................................................................................
Net transfers 904,849 116,012 2,974,374 1,347,458 2,943,281 2,137,151
.......................................................................................................................
Surrenders for benefit payments
and fees (103,086) (111,646) 2,433 (17,264) (20,699) (71,350)
.......................................................................................................................
Net loan activity (3,862) (8,019) (4,947) -- (36) --
.......................................................................................................................
Cost of insurance (172,670) (89,743) (236,632) (87,140) (105,607) (220,426)
.......................................................................................................................
Net increase in net assets
resulting from unit
transactions 1,286,220 331,119 3,278,396 1,405,778 2,977,581 2,592,582
.......................................................................................................................
Total increase in net assets 1,174,422 461,583 3,005,962 1,403,340 2,718,962 2,453,221
.......................................................................................................................
NET ASSETS:
Beginning of period 3,729,941 2,374,586 974,924 455,936 566,150 1,930,991
------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $4,904,363 $2,836,169 $3,980,886 $1,859,276 $3,285,112 $4,384,212
------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the Period Ended Money
September 30, 2000 Market
Sub-Account
----------------------------------------------------------
OPERATIONS:
Net investment income $ 98,605
................................
Capital gains income --
................................
Net realized (loss) gain on
security transactions --
................................
Net unrealized (depreciation)
appreciation of investments
during the period --
................................
Net (decrease) increase in net
assets resulting from
operations 98,605
................................
UNIT TRANSACTIONS:
Purchases 117,227
................................
Net transfers 401,082
................................
Surrenders for benefit payments
and fees (42,984)
................................
Net loan activity --
................................
Cost of insurance (86,251)
................................
Net increase in net assets
resulting from unit
transactions 389,074
................................
Total increase in net assets 487,679
................................
NET ASSETS:
Beginning of period 1,378,369
----------------------------------------------------------------------
END OF PERIOD $1,866,048
----------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-16
<PAGE>
SEPARATE ACCOUNT VL II -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
Statements of Changes in Net Assets (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
For the Period Ended New New OTC & Utilities Vista Voyager
September 30, 2000 Opportunities Value Emerging Growth Sub-Account Sub-Account
Sub-Account Sub-Account Growth and Income
Sub-Account Sub-Account
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ -- $ 13,729 $ -- $ 44,777 $ -- $ 4,464
.................................................................................................................
Capital gains income 585,307 48,619 12,177 79,045 15,030 1,894,262
.................................................................................................................
Net realized (loss) gain on
security transactions (101,488) (5,820) (15,039) (16,860) (20,259) 1,416
.................................................................................................................
Net unrealized (depreciation)
appreciation of investments
during the period (298,837) 87,169 (352,082) 119,606 265,990 (2,334,093)
.................................................................................................................
Net increase (decrease) in net
assets resulting from
operations 184,982 143,697 (354,944) 226,568 260,761 (433,951)
.................................................................................................................
UNIT TRANSACTIONS:
Purchases 1,355,586 250,944 264,746 508,388 173,596 2,783,437
.................................................................................................................
Net transfers 4,031,551 877,026 1,990,616 285,523 2,442,307 8,104,533
.................................................................................................................
Surrenders for benefit payments
and fees (399,833) (18,080) (80,381) (24,901) (83,445) (610,462)
.................................................................................................................
Net loan activity (35,150) (8) (6,794) (71) (8,887) (47,515)
.................................................................................................................
Cost of insurance (503,463) (84,963) (118,140) (70,565) (80,000) (886,786)
.................................................................................................................
Net increase in net assets
resulting from unit
transactions 4,448,691 1,024,919 2,050,047 698,374 2,443,571 9,343,207
.................................................................................................................
Total increase in net assets 4,633,673 1,168,616 1,695,103 924,942 2,704,332 8,909,256
.................................................................................................................
NET ASSETS:
Beginning of period 5,776,688 725,529 558,443 1,236,382 761,163 11,958,626
------------------------------------------------------------------------------------------------------------------
END OF PERIOD $10,410,361 $1,894,145 $2,253,546 $2,161,324 $3,465,495 $20,867,882
------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
SA-17
<PAGE>
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
BALANCE SHEETS
(STATUTORY BASIS)
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
<S> <C> <C>
-----------------------------------------------------------------------------------
<CAPTION>
2000 1999
-----------------------------------------------------------------------------------
<S> <C> <C>
<CAPTION>
(UNAUDITED)
ASSETS
<S> <C> <C>
Bonds $ 1,226,915 $ 1,465,815
Common stocks 38,701 42,430
Mortgage loans 34,380 63,784
Policy loans 75,857 59,429
Cash and short-term investments 213,302 267,579
-----------------------------------------------------------------------------------
Other invested assets 18,836 2,892
-----------------------------------------------------------------------------------
Total cash and invested assets 1,607,991 1,901,929
Investment income due and accrued 20,344 21,069
Other assets 41,486 39,576
Separate account assets 47,812,204 44,865,042
-----------------------------------------------------------------------------------
TOTAL ASSETS $49,482,025 $46,827,616
-----------------------------------------------------------------------------------
LIABILITIES
Aggregate reserves for future benefits $ 615,263 $ 591,621
Policy and contract claim liabilities 11,835 7,677
Liability for premium and other deposit funds 1,583,921 1,969,262
Asset valuation reserve 3,647 4,935
Payable to affiliates 22,829 14,084
Accrued expense allowances and other amounts due
from separate account (1,392,483) (1,377,927)
Remittances and items not allocated 135,641 111,582
Other liabilities 152,799 118,464
Separate account liabilities 47,812,204 44,865,042
-----------------------------------------------------------------------------------
TOTAL LIABILITIES 48,945,656 46,304,740
-----------------------------------------------------------------------------------
CAPITAL AND SURPLUS
Common stock 2,500 2,500
Gross paid-in and contributed surplus 226,043 226,043
Unassigned funds 307,826 294,333
-----------------------------------------------------------------------------------
TOTAL CAPITAL AND SURPLUS 536,369 522,876
-----------------------------------------------------------------------------------
TOTAL LIABILITIES, CAPITAL AND SURPLUS $49,482,025 $46,827,616
-----------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-1
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
(STATUTORY BASIS)
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
<S> <C> <C>
----------------------------------------------------------------------------
<CAPTION>
2000 1999
----------------------------------------------------------------------------
<S> <C> <C>
REVENUES
Premiums and annuity considerations $ 564,487 $ 407,330
Annuity and other fund deposits 3,213,811 2,745,707
Net investment income 82,766 92,321
Commissions and expense allowances on
reinsurance ceded 96,524 243,448
Reserve adjustment on reinsurance ceded 1,022,716 702,323
Fee income 618,388 455,917
Other revenues 3,847 7,887
----------------------------------------------------------------------------
TOTAL REVENUES 5,602,539 4,654,933
----------------------------------------------------------------------------
BENEFITS AND EXPENSES
Death and annuity benefits 42,004 34,403
Disability and other benefits 4,228 4,583
Surrenders and other fund withdrawals 2,654,640 858,280
Commissions 363,369 353,077
Increase (Decrease) in aggregate reserves for
future benefits 23,431 (650)
(Decrease) Increase in liability for premium and
other deposit funds (384,393) 2,232
General insurance expenses 182,679 115,771
Net transfers to separate accounts 2,597,386 3,231,911
Other expenses 22,881 16,734
----------------------------------------------------------------------------
TOTAL BENEFITS AND EXPENSES 5,506,225 4,616,341
----------------------------------------------------------------------------
NET GAIN FROM OPERATIONS
Before federal income tax expense 96,314 38,592
Federal income tax expense 71,591 13,144
----------------------------------------------------------------------------
NET GAIN FROM OPERATIONS 24,723 25,448
Net realized capital losses, after tax (514) (36,258)
----------------------------------------------------------------------------
NET INCOME (LOSS) $ 24,209 $ (10,810)
----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-2
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS
(STATUTORY BASIS)
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
<S> <C> <C>
----------------------------------------------------------------------------
<CAPTION>
2000 1999
----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK
Beginning and end of year $ 2,500 $ 2,500
----------------------------------------------------------------------------
GROSS PAID-IN AND CONTRIBUTED SURPLUS
Beginning and end of year $226,043 $226,043
----------------------------------------------------------------------------
UNASSIGNED FUNDS
Balance, beginning of year $294,333 $247,969
Net income (loss) 24,209 (10,810)
Change in net unrealized capital gains (losses)
on common stocks and other invested assets (3,702) 1,489
Change in asset valuation reserve 1,288 18,079
Change in non-admitted assets (3,126) 2,773
Credit on reinsurance ceded (5,176) (2,716)
----------------------------------------------------------------------------
Balance, end of year $307,826 $256,784
----------------------------------------------------------------------------
CAPITAL AND SURPLUS
End of year $536,369 $485,327
----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-3
<PAGE>
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
(STATUTORY BASIS)
(IN THOUSANDS)
(UNAUDITED)
--------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
<S> <C> <C>
----------------------------------------------------------------------------
<CAPTION>
2000 1999
----------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Premiums and annuity considerations $3,776,739 $3,152,996
Investment income 83,130 93,174
Fee income 618,388 455,917
Other income 1,114,139 949,553
----------------------------------------------------------------------------
Total income 5,592,396 4,651,640
----------------------------------------------------------------------------
Benefits paid 2,697,533 896,755
Federal income taxes (recoveries) payments (3,299) 24,000
Net transfers to separate accounts 2,597,386 3,231,911
Other expenses 585,737 552,191
----------------------------------------------------------------------------
Total benefits and expenses 5,877,357 4,704,857
----------------------------------------------------------------------------
NET CASH USED BY OPERATING ACTIVITIES (284,961) (53,217)
----------------------------------------------------------------------------
INVESTING ACTIVITIES
PROCEEDS FROM INVESTMENTS SOLD
Bonds 508,750 634,564
Common stocks 614 754
Mortgage loans 33,312 30,292
Other -- 1,351
----------------------------------------------------------------------------
NET INVESTMENT PROCEEDS 542,676 666,961
----------------------------------------------------------------------------
COST OF INVESTMENTS ACQUIRED
Bonds 274,569 727,958
Common stocks 468 166
Mortgage loans 3,681 56,013
Other 32,356 39,099
----------------------------------------------------------------------------
TOTAL INVESTMENTS ACQUIRED 311,074 823,236
----------------------------------------------------------------------------
NET CASH PROVIDED BY (USED FOR) INVESTING
ACTIVITIES 231,602 (156,275)
----------------------------------------------------------------------------
FINANCING AND MISCELLANEOUS ACTIVITIES
Net other cash used (918) (24,952)
----------------------------------------------------------------------------
NET CASH USED FOR FINANCING AND MISCELLANEOUS
ACTIVITIES (918) (24,952)
----------------------------------------------------------------------------
Net change in cash and short-term investments (54,277) (234,444)
Cash and short-term investments, beginning of
period 267,579 469,955
----------------------------------------------------------------------------
CASH AND SHORT-TERM INVESTMENTS, END OF PERIOD $ 213,302 $ 235,511
----------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statutory basis financial
statements.
F-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(STATUTORY BASIS)
(DOLLAR AMOUNTS IN MILLIONS UNLESS OTHERWISE STATED)
(Unaudited)
--------------------------------------------------------------------------------
1. BASIS OF PRESENTATION:
The accompanying unaudited financial statements of Hartford Life and Annuity
Insurance Company (the Company) have been prepared in conformity with statutory
accounting practices prescribed by the National Association of Insurance
Commissioners and the Connecticut Department of Insurance. Certain information
and note disclosures which are normally included in financial statements
prepared in accordance with statutory accounting practices have been condensed
or omitted, although the Company believes that the disclosures made are adequate
to make the information presented not misleading. In the opinion of management,
these statements include all adjustments which were normal recurring adjustments
necessary to present fairly the financial position, results of operations and
cash flows for the periods presented in accordance with statutory accounting
practices. For a description of significant accounting policies, see Note 1 of
Notes to Financial Statements in Hartford Life and Annuity Insurance Company's
1999 statutory basis financial statements.
Certain reclassifications have been made to prior year financial information to
conform to the current year classification of transactions and accounts.
2. INVESTMENTS:
In October 1998, the Company became aware of allegations of improper activities
at Commercial Financial Services Inc. (CFS), a securitizer and servicer of asset
backed securities. On December 11, 1998, CFS filed for protection under Chapter
11 of the Bankruptcy Code and, in June 1999, CFS ceased operations. In August
1999, the Company sold all of its CFS holdings recognizing a $36, after tax,
realized capital loss.
F-5
