HV-4635-5 Printed in U.S.A. © 2004 The Hartford, Hartford CT 06115
a tax-deferred variable annuity issued by: Hartford Life and Annuity Insurance Company
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TELEPHONE: 1-800-521-0538
ABCD
This prospectus describes information you should know before you purchase Series II and Series IIR of Putnam Hartford Capital Manager Outlook variable annuity. Please read it carefully.
Putnam Hartford Capital Manager Outlook variable annuity is a contract between you and Hartford Life and Annuity Insurance Company where you agree to make at least one Premium Payment to us and we agree to make a series of Annuity Payouts at a later date. This Contract is a flexible premium, tax-deferred, variable annuity offered to both individuals and groups. It is:
Flexible, because you may add Premium Payments at any time.
Tax-deferred, which means you don’t pay taxes until you take money out or until we start to make Annuity Payouts.
Variable, because the value of your Contract will fluctuate with the performance of the underlying Funds.
At the time you purchase your Contract, you allocate your Premium Payment to ‘‘Sub-Accounts.’’ These are subdivisions of our Separate Account, an account that keeps your Contract assets separate from our company assets. The Sub-Accounts then purchase shares of mutual funds set up exclusively for variable annuity or variable life insurance products. These are not the same mutual funds that you buy through your stockbroker or through a retail mutual fund. They may have similar investment strategies and the same portfolio managers as retail mutual funds. This Contract offers you Funds with investment strategies ranging from conservative to aggressive and you may pick those Funds that meet your investment goals and risk tolerance. The Sub-Accounts and the Funds are listed below:
• Putnam American Government Income Sub-Account which purchases Class IB shares of Putnam VT American Government Income Fund of Putnam Variable Trust
• Putnam Capital Appreciation Sub-Account which purchases Class IB shares of Putnam VT Capital Appreciation Fund of Putnam Variable Trust
• Putnam Capital Opportunities Sub-Account which purchases Class IB shares of Putnam VT Capital Opportunities Fund of Putnam Variable Trust
• Putnam Discovery Growth Sub-Account which purchases Class IB shares of Putnam VT Discovery Growth Fund of Putnam Variable Trust
• Putnam Diversified Income Sub-Account which purchases Class IB shares of Putnam VT Diversified Income Fund of Putnam Variable Trust
• Putnam Equity Income Sub-Account which purchases Class IB shares of Putnam VT Equity Income Fund of Putnam Variable Trust • Putnam The George Putnam Fund of Boston Sub-Account which purchases Class IB shares of Putnam VT The George Putnam
Fund of Boston of Putnam Variable Trust
• Putnam Global Asset Allocation Sub-Account which purchases Class IB shares of Putnam VT Global Asset Allocation Fund of Putnam Variable Trust.
• Putnam Global Equity Sub-Account which purchases Class IB shares of Putnam VT Global Equity Fund of Putnam Variable Trust • Putnam Growth and Income Sub-Account which purchases Class IB shares of Putnam VT Growth and Income Fund of Putnam
Variable Trust
• Putnam Growth Opportunities Sub-Account which purchases Class IB shares of Putnam VT Growth Opportunities Fund of Putnam Variable Trust
• Putnam Health Sciences Sub-Account which purchases Class IB shares of Putnam VT Health Sciences Fund of Putnam Variable Trust (Closed to Contracts issued on or after May 3, 2004)
• Putnam High Yield Sub-Account which purchases Class IB shares of Putnam VT High Yield Fund of Putnam Variable Trust • Putnam Income Sub-Account which purchases Class IB shares of Putnam VT Income Fund of Putnam Variable Trust
• Putnam International Equity Sub-Account which purchases Class IB shares of Putnam VT International Equity Fund of Putnam Variable Trust
• Putnam International New Opportunities Sub-Account which purchases Class IB shares of Putnam VT International New Opportunities Fund of Putnam Variable Trust
• Putnam Investors Sub-Account which purchases Class IB shares of Putnam VT Investors Fund of Putnam Variable Trust • Putnam Mid Cap Value Sub-Account which purchases Class IB shares of Putnam VT Mid Cap Value Fund of Putnam Variable Trust • Putnam Money Market Sub-Account which purchases Class IB shares of Putnam VT Money Market Fund of Putnam
Variable Trust
• Putnam New Opportunities Sub-Account which purchases Class IB shares of Putnam VT New Opportunities Fund of Putnam Variable Trust
• Putnam New Value Sub-Account which purchases Class IB shares of Putnam VT New Value Fund of Putnam Variable Trust • Putnam OTC & Emerging Growth Sub-Account which purchases Class IB shares of Putnam VT OTC & Emerging Growth Fund
of Putnam Variable Trust
• Putnam Research Sub-Account which purchases Class IB shares of Putnam VT Research Fund of the Putnam Variable Trust • Putnam Small Cap Value Sub-Account which purchases Class IB shares of Putnam VT Small Cap Value Fund of Putnam
Variable Trust
• Putnam Utilities Growth and Income Sub-Account which purchases Class IB shares of Putnam VT Utilities Growth and Income Fund of Putnam Variable Trust (Closed to Contracts issued on or after May 3, 2004)
• Putnam Vista Sub-Account which purchases Class IB shares of Putnam VT Vista Fund of Putnam Variable Trust • Putnam Voyager Sub-Account which purchases Class IB shares of Putnam VT Voyager Fund of Putnam Variable Trust You may also allocate some or all of your Premium Payment to the ‘‘Fixed Accumulation Feature,’’ which pays an interest rate guaranteed for a certain time period from the time the Premium Payment is made. Premium Payments allocated to the Fixed Accumulation Feature are not segregated from our company assets like the assets of the Separate Account. The Fixed Accumulation Feature is currently not available.
If you decide to buy this Contract, you should keep this prospectus for your records. You can also call us at 1-800-521-0538 to get a Statement of Additional Information, free of charge. The Statement of Additional Information contains more information about this Contract and, like this prospectus, is filed with the Securities and Exchange Commission (‘‘SEC’’). We have included the Table of Contents for the Statement of Additional Information at the end of this prospectus.
Although we file the prospectus and the Statement of Additional Information with the SEC, the SEC doesn’t approve or disapprove these securities or determine if the information in this prospectus is truthful or complete. Anyone who represents that the SEC does these things may be guilty of a criminal offense. This prospectus and the Statement of Additional Information can also be obtained from the SEC’s website (http://www.sec.gov).
This Contract IS NOT:
o A bank deposit or obligation
o Federally insured
o Endorsed by any bank or governmental agency This Contract may not be available for sale in all states. PROSPECTUS DATED: NOVEMBER 1, 2004
Page
Definitions 4
Fee Tables 6
Highlights 10
General Contract Information 11
Hartford Life and Annuity Insurance Company 11
The Separate Account 11
The Funds 12
Performance Related Information 14
Fixed Accumulation Feature 15
The Contract 16
Purchases and Contract Value 16
Charges and Fees 19
The Hartford’s Principal First and The Hartford’s Principal First Preferred 22
Death Benefit 25
Surrenders 33
Annuity Payouts 34
Other Programs Available 37
Other Information 37
Legal Matters 38
More Information 38
Federal Tax Considerations 39
Table of Contents to Statement of Additional Information 44
Appendix I — Information Regarding Tax-Qualified Retirement Plans 45
Appendix II — Death Benefit — Examples 49
Appendix III — The Hartford’s Principal First — Examples 55
Appendix IV — The Hartford’s Principal First Preferred — Examples 56
Appendix V — Accumulation Unit Values 57
These terms are capitalized when used throughout this prospec- Hartford’s Principal First Preferred. The initial Benefit Amount is tus. Please refer to these defined terms if you have any questions your Premium Payments if you elected the benefit upon pur-as you read your prospectus. chase or your Contract Value on the date we add the benefit to your Contract if you elect the benefit at a later date. The Benefit Account: Any of the Sub-Accounts or Fixed Accumulation
Amount is referred to as the Guaranteed Remaining Balance in Feature.
your Contract. Accumulation Units: If you allocate your Premium Payment to
Benefit Payment: The maximum guaranteed payment that can any of the Sub-Accounts, we will convert those payments into
be made each Contract Year under The Hartford’s Principal First Accumulation Units in the selected Sub-Accounts. Accumulation
and The Hartford’s Principal First Preferred. The initial Benefit Units are valued at the end of each Valuation Day and are used to
Payment is equal to a percentage of your Premium Payments if calculate the value of your Contract prior to Annuitization.
you elect the benefit upon purchase or a percentage of your Accumulation Unit Value: The daily price of Accumulation Contract Value on the date we add the benefit to your Contract. Units on any Valuation Day. The percentage is different for The Hartford’s Principal First and The Hartford’s Principal First Preferred. The Benefit Payment Administrative Office of the Company: Our location and
can never exceed the Benefit Amount. The Benefit Payment is overnight mailing address is: 200 Hopmeadow Street, Simsbury,
called Guaranteed Annual Withdrawal Benefit in your Contract. Connecticut 06089. Our standard mailing address is: Investment
Product Services, P.O. Box 5085, Hartford, Connecticut Charitable Remainder Trust: An irrevocable trust, where an
06102-5085. individual donor makes a gift to the trust, and in return receives
an income tax deduction. In addition, the individual donor has Anniversary Value: The value equal to the Contract Value as of
the right to receive a percentage of the trust earnings for a a Contract Anniversary.
specified period of time. Annual Maintenance Fee: An annual $30 charge deducted on a
Code: The Internal Revenue Code of 1986, as amended. Contract Anniversary or upon full Surrender if the Contract
Value at either of those times is less than $50,000. The charge is Commuted Value: The present value of any remaining guaran-deducted proportionately from each Account in which you are teed Annuity Payouts. This amount is calculated using the
invested. Assumed Investment Return for variable dollar amount Annuity
Payouts and a rate of return determined by us for fixed dollar Annual Withdrawal Amount: This is the amount you can
amount Annuity Payouts. Surrender per Contract Year without paying a Contingent
Deferred Sales Charge. This amount is non-cumulative, meaning Contingent Annuitant: The person you may designate to that it cannot be carried over from one year to the next. become the Annuitant if the original Annuitant dies before the Annuity Commencement Date. You must name a Contingent Annuitant: The person on whose life the Contract is based. The
Annuitant before the original Annuitant’s death. Annuitant may not be changed after your Contract is issued.
Contingent Deferred Sales Charge: The deferred sales Annuity Calculation Date: The date we calculate the first
charge that may apply when you make a full or partial Surrender. Annuity Payout.
Contract: The individual Annuity Contract and any endorse-Annuity Payout: The money we pay out after the endorse-Annuity
ments or riders. Group participants and some individuals may Commencement Date for the duration and frequency you
receive a certificate rather than a Contract. select.
Contract Anniversary: The anniversary of the date we issued Annuity Payout Option: Any of the options available for
pay-your Contract. If the Contract Anniversary falls on a Non-Valua-out after the Annuity Commencement Date or death of the
tion Day, then the Contract Anniversary will be the next Valua-Contract Owner or Annuitant.
tion Day. Annuity Unit: The unit of measure we use to calculate the value
Contract Owner or you: The owner or holder of the Contract of your Annuity Payouts under a variable dollar amount Annuity
described in this prospectus. We do not capitalize ‘‘you’’ in the Payout Option.
prospectus. Annuity Unit Value: The daily price of Annuity Units on any
Contract Value: The total value of the Accounts on any Valua-Valuation Day.
tion Day. Beneficiary: The person(s) entitled to receive a payout at death,
Contract Year: Any 12 month period between Contract Anni-if any, upon the death of the Contract Owner or Annuitant.
versaries, beginning with the date the Contract was issued. Benefit Amount: The basis used to determine the maximum
payout guaranteed under The Hartford’s Principal First and The
D e f i n i t i o n s
Death Benefit: The amount payable if the Contract Owner, tax-qualified retirement account by December 31, each year. For joint Contract Owner or the Annuitant dies before the Annuity employer sponsored qualified Contracts, the individual must Commencement Date. begin taking distributions at the age of 701⁄2 or upon retirement,
whichever comes later. Dollar Cost Averaging: A program that allows you to
system-atically make transfers between Accounts available in your Sub-Account Value: The value on or before the Annuity
Calcu-Contract. lation Date, which is determined on any day by multiplying the
number of Accumulation Units by the Accumulation Unit Value Fixed Accumulation Feature: Part of our General Account,
for that Sub-Account. where you may allocate all or a portion of your Contract Value.
In your Contract, the Fixed Accumulation Feature is called the Surrender: A complete or partial withdrawal from your
Fixed Account. Contract.
General Account: The General Account includes our company Surrender Value: The amount we pay you if you terminate assets, including any money you have invested in the Fixed your Contract before the Annuity Commencement Date. The Accumulation Feature. The assets in the General Account are Surrender Value is equal to the Contract Value minus any applica-available to the creditors of Hartford. ble charges.
Hartford, we or our: Hartford Life and Annuity Insurance The Hartford’s Principal First: An option that can be added at Company. Only Hartford is a capitalized term in the prospectus. an additional charge where, if elected upon purchase, you may take withdrawals that are guaranteed to equal your total Pre-Joint Annuitant: The person on whose life Annuity Payouts are
mium Payments as long as certain conditions are met. The guar-based if the Annuitant dies after Annuitization. You may name a
anteed amount will be different if you elect this benefit after you Joint Annuitant only if your Annuity Payout Option provides for a
purchase your Contract. The maximum withdrawal amount you survivor. The Joint Annuitant may not be changed.
may take under The Hartford’s Principal First in any Contract Maximum Anniversary Value: This is the highest Anniversary Year is 7% of the guaranteed amount.
Value prior to the deceased’s 81st birthday or the date of death,
The Hartford’s Principal First Preferred: An option that can if earlier.
be added at an additional charge where, if elected upon pur-Net Investment Factor: This is used to measure the invest- chase, you may take withdrawals that are guaranteed to equal ment performance of a Sub-Account from one Valuation Day to your total Premium Payments as long as certain conditions are the next, and is also used to calculate your Annuity Payout met. The guaranteed amount will be different if you elect this
amount. benefit after you purchase your Contract. The maximum
with-drawal amount you may take under The Hartford’s Principal Non-Valuation Day: Any day the New York Stock Exchange is
First Preferred in any Contract Year is 5% of the guaranteed not open for trading.
amount. Payee: The person or party you designate to receive Annuity
Valuation Day: Every day the New York Stock Exchange is Payouts.
open for trading. Values of the Separate Account are determined Premium Payment: Money sent to us to be invested in your as of the close of the New York Stock Exchange, generally
Contract. 4:00 p.m. Eastern Time.
Premium Tax: A tax charged by a state or municipality on Valuation Period: The time span between the close of trading
Premium Payments. on the New York Stock Exchange from one Valuation Day to the
next. Required Minimum Distribution: A federal requirement that
Fee Tables
The following tables describe the fees and expenses that you will pay when purchasing, owning and Surrendering the Contract.
This table describes the fees and expenses that you will pay at the time that you purchase the Contract or Surrender the Contract. Charges for state premium taxes may also be deducted when you purchase the Contract, upon Surrender or when we start to make Annuity Payouts.
Contract Owner Transaction Expenses
Sales Charge Imposed on Purchases (as a percentage of Premium Payments) None
Contingent Deferred Sales Charge (as a percentage of Premium Payments) (1)
First Year (2) 7%
Second Year 6%
Third Year 5%
Fourth Year 4%
Fifth Year 0%
(1) Each Premium Payment has its own Contingent Deferred Sales Charge schedule. The Contingent Deferred Sales Charge is not assessed on partial Surrenders which do not exceed the Annual Withdrawal Amount.
(2) Length of time from each Premium Payment. Contract Owner Periodic Expenses
This table describes the fees and expenses that you will pay periodically and on a daily basis during the time that you own the Contract, not including fees and expenses of the underlying Funds.
If you Choose If you Choose
the Asset the Premium
Protection Protection
Death Benefit Death Benefit
Annual Maintenance Fee (3) $30 $30
Separate Account Annual Expenses (as a percentage of average daily Sub-Account Value)
Mortality and Expense Risk Charge 1.50% 1.50%
Administrative Charge 0.20% 0.20%
Total Separate Account Annual Expenses 1.70% 1.70%
Optional Charges (as a percentage of average daily Sub-Account Value)
MAV/EPB Death Benefit Charge (4) 0.30% 0.30%
The Hartford’s Principal First Charge 0.50% 0.50%
The Hartford’s Principal First Preferred Charge 0.20% 0.20%
Total Separate Account Annual Expenses with all optional charges 2.70% 2.70%
(3) An annual $30 charge deducted on a Contract Anniversary or upon Surrender if the Contract Value at either of those times is less than $50,000. It is deducted proportionately from the Accounts in which you are invested at the time of the charge.
(4) The MAV/EPB Death Benefit is not available for Contracts issued in Washington or Minnesota. There is a different optional Death Benefit called the Maximum Anniversary Value Death Benefit for Contracts issued in Washington or Minnesota. The charge is 0.30% of the average daily Sub-Account Value.
This table shows the minimum and maximum total fund operating expenses charged by the underlying Funds that you may pay on a daily basis during the time that you own the Contract. More detail concerning each underlying Fund’s fees and expenses is contained in the prospectus for each Fund.
Minimum Maximum Total Annual Fund Operating Expenses
(these are expenses that are deducted from Fund assets, including management fees, Rule 12b-1 distribution
and/or service fees, and other expenses) 0.74% 2.21%
This table shows the Total Annual Fund Operating Expenses for each underlying fund as of its year end. Actual fees and expenses for the underlying Funds vary daily. Because of this, the fees and expenses for any given day may be greater than or less than the Total Annual Fund Operating Expenses listed below.
Annual Fund Operating Expenses
As of the Fund’s Year End
(As a percentage of average net assets)
Total Annual Fund Operating
12b-1 Expenses (before Total
Distribution Contractual Fee Contractual Annual
and/or Waivers or Fee Waivers Fund
Management Servicing Other Expense or Expense Operating
Fees Fees (2) Expenses Reimbursements) Reimbursements Expenses
Putnam VT American Government Income Fund —
Class IB 0.65% 0.25% 0.09% 0.99% N/A 0.99%
Putnam VT Capital Appreciation Fund — Class IB 0.65% 0.25% 0.41% 1.31% N/A 1.31% Putnam VT Capital Opportunities Fund — Class IB
(1)(3) 0.65% 0.25% 1.31% 2.21% 0.91% 1.30%
Putnam VT Discovery Growth Fund — Class IB 0.70% 0.25% 0.38% 1.33% N/A 1.33%
Putnam VT Diversified Income Fund — Class IB 0.69% 0.25% 0.13% 1.07% N/A 1.07%
Putnam VT Equity Income Fund — Class IB (1)(3) 0.65% 0.25% 0.67% 1.57% 0.27% 1.30% Putnam VT The George Putnam Fund of Boston —
Class IB 0.63% 0.25% 0.10% 0.98% N/A 0.98%
Putnam VT Global Asset Allocation Fund — Class IB 0.70% 0.25% 0.25% 1.20% N/A 1.20%
Putnam VT Global Equity Fund — Class IB 0.77% 0.25% 0.15% 1.17% N/A 1.17%
Putnam VT Growth and Income Fund — Class IB 0.48% 0.25% 0.05% 0.78% N/A 0.78%
Putnam VT Growth Opportunities Fund — Class IB 0.70% 0.25% 0.26% 1.21% N/A 1.21%
Putnam VT Health Sciences Fund — Class IB 0.70% 0.25% 0.14% 1.09% N/A 1.09%
Putnam VT High Yield Fund — Class IB 0.67% 0.25% 0.11% 1.03% N/A 1.03%
Putnam VT Income Fund — Class IB 0.59% 0.25% 0.09% 0.93% N/A 0.93%
Putnam VT International Equity Fund — Class IB 0.76% 0.25% 0.18% 1.19% N/A 1.19% Putnam VT International Growth and Income Fund —
Class IB 0.80% 0.25% 0.22% 1.27% N/A 1.27%
Putnam VT International New Opportunities Fund —
Class IB 1.00% 0.25% 0.26% 1.51% N/A 1.51%
Putnam VT Investors Fund — Class IB 0.65% 0.25% 0.10% 1.00% N/A 1.00%
Putnam VT Mid Cap Value Fund — Class IB (1)(3) 0.70% 0.25% 1.20% 2.15% 0.80% 1.35%
Putnam VT Money Market Fund — Class IB 0.42% 0.25% 0.07% 0.74% N/A 0.74%
Putnam VT New Opportunities Fund — Class IB 0.59% 0.25% 0.08% 0.92% N/A 0.92%
Putnam VT New Value Fund — Class IB 0.70% 0.25% 0.09% 1.04% N/A 1.04%
Putnam VT OTC & Emerging Growth Fund —
Class IB 0.70% 0.25% 0.19% 1.14% N/A 1.14%
Total Annual Fund Operating
12b-1 Expenses (before Total
Distribution Contractual Fee Contractual Annual
and/or Waivers or Fee Waivers Fund
Management Servicing Other Expense or Expense Operating
Fees Fees (2) Expenses Reimbursements) Reimbursements Expenses
Putnam VT Small Cap Value Fund — Class IB 0.79% 0.25% 0.12% 1.16% N/A 1.16%
Putnam VT Utilities Growth and Income Fund —
Class IB 0.70% 0.25% 0.13% 1.08% N/A 1.08%
Putnam VT Vista Fund — Class IB 0.65% 0.25% 0.11% 1.01% N/A 1.01%
Putnam VT Voyager Fund — Class IB 0.55% 0.25% 0.07% 0.87% N/A 0.87%
(1) Expenses represent estimates for the Fund’s current fiscal year, which ends on December 31, 2004.
(2) See the Fund’s prospectus for information about the Fund’s distribution plan (‘‘Distribution Plan’’) adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940. While the maximum rate payable under the Distribution Plan is 0.35% per year of the Fund’s average net assets on class IB shares, the Trustees of the Fund currently limit the rate at 0.25% per year through at least the end of the Fund’s current fiscal year.
(3) In order to limit the expenses of Putnam VT Capital Opportunities Fund, Putnam VT Equity Income Fund and Putnam VT Mid Cap Value Fund, Putnam Management has agreed to limit each Fund’s compensation (and, to the extent necessary, bear other expenses of each Fund) through December 31, 2004.
EXAMPLE
This Example is intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. The Example reflects a deduction for any Contingent Deferred Sales Charge, Annual Mainte-nance Fee, maximum Separate Account Annual Expenses including all Optional Charges, and the highest Total Annual Fund Operating Expenses of the underlying Funds. The Example does not reflect the deduction of any applicable Premium Taxes. If you do not select all of the optional benefits, your expenses would be lower than those shown in the Example.
The Example should not be considered a representation of past or future expenses and actual expenses may be greater or less than those shown. In the following Example table, Hartford assumes a Contract Value of $40,000 to illustrate the charges that would be deducted. Our average Contract Value is $80,000, but we use a smaller Contract Value so that we can show you the highest possible deductions. The Example assumes the Annual Maintenance Fee will always be deducted if the Contract is Surrendered. If your Contract Value is $50,000 or more, Hartford waives the Annual Maintenance Fee, so the Example shows charges that are higher than you would have to pay. We change the Annual Maintenance Fee for a $40,000 Contract Value into a percentage to more easily calculate the charges. The percentage we use is 0.075%.
The Example assumes that you invest $10,000 in the Contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the highest Total Annual Fund Operating Expenses. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
(1) If you Surrender your Contract at the end of the applicable time period:
1 year $1,174
3 years $2,004
5 years $2,549
10 years $5,084
(2) If you annuitize at the end of the applicable time period:
1 year $ 503
3 years $1,524
5 years $2,542
10 years $5,077
(3) If you do not Surrender your Contract:
1 year $ 511
3 years $1,531
5 years $2,549
How do I purchase this Contract? What charges will I pay on an annual basis?
You must complete our application or order request and submit In addition to the Annual Maintenance Fee, you pay the following it to us for approval with your first Premium Payment. Your first charges each year:
Premium Payment must be at least $10,000 and subsequent
• Mortality and Expense Risk Charge — This charge is for Premium Payments must be at least $500, unless you take
advan-insurance. It is deducted daily and is equal to an annual charge tage of our InvestEase Program or are part of certain
retire-of 1.50% retire-of your Contract Value invested in the Sub-Account. ment plans.
• Administrative Charge — This charge is for administration.
For a limited time, usually within ten days after you
It is subtracted daily and is equal to an annual charge of 0.20% receive your Contract, you may cancel your Contract
of your Contract Value invested in the Funds. without paying a Contingent Deferred Sales Charge. You
may bear the investment risk for your Premium Pay- • Annual Fund Operating Expenses — These are charges ment prior to our receipt of your request for for the underlying Funds. See the Annual Fund Operating
cancellation. Expenses table for more complete information and the Funds’
prospectuses accompanying this prospectus. What type of sales charge will I pay?
What charges will I pay on an annual basis if I elect You don’t pay a sales charge when you purchase your Contract.
optional benefits? We may charge you a Contingent Deferred Sales Charge when
you partially or fully Surrender your Contract. The Contingent • MAV/EPB Death Benefit Charge — You may elect an Deferred Sales Charge will depend on the amount you choose to optional Death Benefit for an additional charge. We call the Surrender and the length of time the Premium Payment you optional Death Benefit the ‘‘MAV/EPB Death Benefit,’’ which made has been in your Contract. is short for ‘‘Maximum Anniversary Value/Earnings Protection Benefit Death Benefit.’’ If you elect the MAV/EPB Death Ben-The percentage used to calculate the Contingent Deferred Sales
efit, we will deduct an additional charge on a daily basis that is Charge is equal to:
equal to an annual charge of 0.30% from your Contract Value
Number of years from Contingent Deferred invested in the Sub-Accounts. Once you elect this benefit, you
Premium Payment Sales Charge
cannot cancel it and we will continue to deduct the charge
1 7% until we begin to make Annuity Payouts.
2 6% • The Hartford’s Principal First Charge — The Hartford’s
3 5% Principal First is an option that can be elected at an additional charge. If you elect The Hartford’s Principal First, we will
4 4%
deduct an additional charge on a daily basis that is equal to an 5 or more 0% annual charge of 0.50% from your Contract Value invested in
the Funds. You won’t be charged a Contingent Deferred Sales Charge on:
• The Hartford’s Principal First Preferred Charge — The
The Annual Withdrawal Amount.
Hartford’s Principal First Preferred is an option that can be
Premium Payments or earnings that have been in your elected at an additional charge. If you elect The Hartford’s Contract for more than four years. Principal First Preferred, we will deduct an additional charge on a daily basis that is equal to an annual charge of 0.20% from
Distributions made due to death.
your Contract Value invested in the Funds.
Distributions under a program for substantially equal
Can I take out any of my money? periodic payments made for your life or life expectancy.
You may Surrender all or part of the amounts you have invested
Most payments we make to you as part of your Annuity at any time before we start making Annuity Payouts. Once
Annu-Payout. ity Payouts begin, you may take full or partial Surrenders under
the Payments for a Period Certain, Life Annuity with Payments Is there an Annual Maintenance Fee?
for a Period Certain or the Joint and Last Survivor Life Annuity We deduct this $30 fee each year on your Contract Anniversary
with Payments for a Period Certain Annuity Options. or when you fully Surrender your Contract, if, on either of those
dates, the value of your Contract is less than $50,000. You may have to pay income tax on the money you take out and, if you Surrender before you are age 591⁄2, you may have to pay an income tax penalty.
You may have to pay a Contingent Deferred Sales Charge on the money you Surrender.
Will Hartford pay a Death Benefit? Annuity with Payments for a Period Certain, Life Annuity with a Cash Refund, Joint and Last Survivor Life Annuity, Joint and Last There is a Death Benefit if the Contract Owner, joint Contract
Survivor Life Annuity with Payments for a Period Certain and Owner or the Annuitant die before we begin to make Annuity
Payments for a Period Certain. We may make other Annuity Payouts. The Death Benefit will be calculated as of the date we
Payout Options available at any time. receive a certified death certificate or other legal document
acceptable to us. The Death Benefit amount will remain invested You must begin to take payouts before the Annuitant’s 90th in the Sub-Accounts according to your last instructions and will birthday or the end of the 10th Contract Year, whichever is later, fluctuate with the performance of the underlying Funds. unless you elect a later date to begin receiving payments subject to the laws and regulations then in effect and our approval. If you You may purchase this Contract with either the Asset Protection
do not tell us what Annuity Payout Option you want before that Death Benefit or the Premium Protection Death Benefit. You
time, we will make Automatic Annuity Payouts under the Life cannot choose both. We will issue your Contract with the Asset
Annuity with Payments for a Period Certain Payout Option with Protection Death Benefit unless you choose the Premium
Pro-a ten-yePro-ar period certPro-ain pPro-ayment option. Depending on the tection Death Benefit.
investment allocation of your Contract in effect on the Annuity We describe the Asset Protection Death Benefit and the Pre- Commencement Date, we will make Automatic Annuity Payouts mium Protection Death Benefit in the Death Benefit Section of that are:
the prospectus.
• fixed dollar amount Automatic Annuity Payouts, You may also elect an optional Death Benefit when you purchase
• variable dollar amount Automatic Annuity Payouts, or your Contract at an additional charge. We describe the optional
Death Benefit in the Death Benefit Section of the prospectus. • a combination of fixed dollar amount and variable dollar amount Automatic Annuity Payouts.
What Annuity Payout Options are available?
When it comes time for us to make payouts, you may choose You may not choose a fixed dollar amount Annuity Payout if you one of the following Annuity Payout Options: Life Annuity, Life purchase your Contract in Oregon or Pennsylvania.
The Separate Account is where we set aside and invest the assets Hartford Life and Annuity Insurance Company is a stock life of some of our annuity contracts, including this Contract. The insurance company engaged in the business of writing life insur- Separate Account was established on March 1, 1993 and is regis-ance and annuities, both individual and group, in all states of the tered as a unit investment trust under the Investment Company United States, the District of Columbia and Puerto Rico, except Act of 1940. This registration does not involve supervision by the New York. On January 1, 1998, Hartford’s name changed from SEC of the management or the investment practices of the ITT Hartford Life and Annuity Insurance Company to Hartford Separate Account or Hartford. The Separate Account meets the Life and Annuity Insurance Company. We were originally incor- definition of ‘‘Separate Account’’ under federal securities law. porated under the laws of Wisconsin on January 9, 1956, and This Separate Account holds only assets for variable annuity subsequently redomiciled to Connecticut. Our offices are contracts. The Separate Account:
located in Simsbury, Connecticut; however, our mailing address
• Holds assets for your benefit and the benefit of other Con-is P.O. Box 2999, Hartford, CT 06104-2999. We are ultimately
tract Owners, and the persons entitled to the payouts controlled by The Hartford Financial Services Group, Inc., one of
described in the Contract. the largest financial service providers in the United States.
• Is not subject to the liabilities arising out of any other business Hartford’s Ratings Hartford may conduct. However, all obligations under the
Contract are general corporate obligations of Hartford.
Effective Date
Rating Agency of Rating Rating Basis of Rating
• Is not affected by the rate of return of Hartford’s General
A.M. Best and Account or by the investment performance of any of
Company, Inc. 7/17/03 A+ Financial strength
Hartford’s other Separate Accounts. Standard & Poor’s 12/01/03 AA Financial strength
• May be subject to liabilities from a Sub-Account of the
Sepa-Fitch 1/09/04 AA Financial strength
rate Account that holds assets of other variable annuity con-tracts offered by the Separate Account, which are not These ratings apply to Hartford’s ability to meet its obligations
described in this prospectus. under the Contract. The ratings do not apply to the Separate
Account or the underlying Funds.
G e n e r a l C o n t r a c t I n f o r m a t i o n
H a r t f o r d L i f e a n d A n n u i t y I n s u r a n c e T h e S e p a r a t e A c c o u n t C o m p a n y
• Is credited with income and gains, and takes losses, whether with preservation of capital. The fund pursues its goal by invest-or not realized, from the assets it holds without regard to ing in bonds from multiple sectors, including the U.S. and invest-other income, gains or losses of Hartford. ment-grade sector, the high yield sector and the international
sector. We do not guarantee the investment results of the Separate
Account. There is no assurance that the value of your Contract Putnam VT Equity Income Fund — Seeks current income. will equal the total of the payments you make to us. Capital growth is a secondary objective when consistent with seeking current income. The fund pursues its goal by investing mainly in common stocks of U.S. companies, with a focus on The Sub-Accounts purchase shares of Putnam Variable Trust, an value stocks that offer the potential for current income and may open-end series investment company with multiple portfolios also offer the potential for capital growth. Under normal circum-(‘‘Funds’’). Putnam Investment Management, LLC. (‘‘Putnam stances, the fund invests at least 80% of its net assets in common Management’’) serves as the investment manager for the Funds. stocks and other equity investments that offer potential for cur-Putnam Management is ultimately controlled by Marsh & McLen- rent income.
nan Companies, Inc., a publicly owned holding company whose
Putnam VT The George Putnam Fund of Boston — Seeks principal businesses are international insurance brokerage and
to provide a balanced investment composed of a well diversified employee benefit consulting.
portfolio of stocks and bonds which produce both capital growth We do not guarantee the investment results of any of the under- and current income. The fund pursues its goal by investing mainly lying Funds. Since each underlying Fund has different investment in a combination of bonds and U.S. value stocks with a greater objectives, each is subject to different risks. These risks and the focus on value stocks.
Funds’ expenses are more fully described in the accompanying
Putnam VT Global Asset Allocation Fund — Seeks a high Funds’ prospectus, and the Funds’ Statement of Additional
Infor-level of long-term total return consistent with preservation of mation which may be ordered from us. The Funds’ prospectus
capital. The fund pursues its goal by investing in a wide variety of should be read in conjunction with this prospectus before
equity and fixed-income securities both of U.S. and foreign investing.
issuers. The Funds may not be available in all states.
Putnam VT Global Equity Fund — Seeks capital appreciation. The investment goals of each of the Funds are as follows: The fund pursues its goal by investing mainly in common stocks of companies worldwide that Putnam Management believes Putnam VT American Government Income Fund — Seeks
have favorable investment potential. Under normal circum-high current income with preservation of capital as its secondary
stances, the fund invests at least 80% of its net assets in equity objective. The fund pursues its goal by investing mainly in U.S.
investments. government bonds, although it may also invest in
mortgage-backed securities that are privately issued and not supported by Putnam VT Growth and Income Fund — Seeks capital the credit of any government agency or instrumentality. Under growth and current income. The fund pursues its goal by invest-normal circumstances, the fund invests at least 80% of its net ing mainly in common stocks of U.S. companies, with a focus on assets in U.S. government securities and may invest up to 20% of value stocks that offer the potential for capital growth, current net assets in mortgage-backed securities of private issuers rated income, or both.
AAA or its equivalent, at the time of purchase, by a nationally
Putnam VT Growth Opportunities Fund — Seeks capital recognized securities rating agency, or if unrated, that the fund
appreciation. The fund pursues its goal by investing in common determines to be of comparable quality.
stocks of U.S. companies, with a focus on growth stocks. Putnam VT Capital Appreciation Fund — Seeks capital
Putnam VT Health Sciences Fund (Closed to Contracts appreciation. The fund pursues its goal by investing mainly in
issued on or after May 3, 2004) — Seeks capital appreciation. common stocks of U.S. companies that Putnam Management
The fund pursues its goal by investing mainly in common stocks believes have favorable investment potential.
of companies in the health sciences industries, with a focus on Putnam VT Capital Opportunities Fund — Seeks long-term growth stocks. Under normal circumstances, the fund invests at growth of capital. The fund pursues its goal by investing mainly in least 80% of its net assets in securities of (a) companies that common stocks of U.S. companies that Putnam Management derive at least 50% of their assets, revenues or profits from the believes have favorable investment potential. pharmaceutical, health care services, applied research and devel-opment and medical equipment and supplies industries, or Putnam VT Discovery Growth Fund — Seeks long-term
(b) companies Putnam Management thinks have the potential for growth of capital. The fund pursues its goal by investing mainly in
growth as a result of their particular products, technology, pat-common stocks of U.S. companies with a focus on growth
ents or other market advantages in the health sciences stocks.
industries. Putnam VT Diversified Income Fund — Seeks as high a level
of current income as Putnam Management believes is consistent T h e F u n d s
Putnam VT High Yield Fund — Seeks high current income. Putnam VT New Value Fund — Seeks long-term capital Capital growth is a secondary goal when consistent with achiev- appreciation. The fund pursues its goal by investing mainly in ing high current income. The fund pursues its goal by investing common stocks of U.S. companies, with a focus on value stocks. mainly in bonds that (a) are obligations of U.S. companies, (b) are
Putnam VT OTC & Emerging Growth Fund — Seeks capital below investment-grade in quality (junk bonds) and (c) have
appreciation. The fund pursues its goal by investing mainly in intermediate to long-term maturities (three years or longer).
common stocks of U.S. companies, with a focus on growth Under normal circumstances, the fund invests at least 80% of its
stocks. Under normal circumstances, the fund invests at least net assets in securities rated below investment grade.
80% of its net assets in common stocks traded in the over-the-Putnam VT Income Fund — Seeks high current income con- counter (‘‘OTC’’) market and common stocks of ‘‘emerging sistent with what Putnam Management believes to be prudent growth’’ companies listed on securities exchanges.
risk. The fund pursues its goal by investing mainly in bonds that
Putnam VT Research Fund — Seeks capital appreciation. The (a) are obligations of companies and governments worldwide
fund pursues its goal by investing mainly in common stocks of denominated in U.S. dollars, (b) are either investment-grade or
U.S. companies that Putnam Management thinks have the great-below investment-grade (junk bonds) and (c) have intermediate
est potential for capital appreciation with stock prices that reflect to long-term maturities (three years or longer).
a value lower than that which Putnam Management places on the Putnam VT International Equity Fund — Seeks capital company, or whose earnings Putnam Management believes are appreciation. The fund pursues its goal by investing mainly in likely to grow over time.
common stocks of companies outside the United States that
Putnam VT Small Cap Value Fund — Seeks capital apprecia-Putnam Management believes have favorable investment
poten-tion. The fund pursues its goal by investing mainly in common tial. Under normal circumstances, the fund invests at least 80%
stocks of U.S. companies, with a focus on value stocks. Under of the fund’s net assets in equity investments.
normal circumstances, the fund invests at least 80% of net assets Putnam VT International Growth and Income Fund — in small companies of a size similar to those in the Russell 2000 Seeks capital growth. Current income is a secondary objective. Value Index.
The fund pursues its goal by investing mainly in common stocks
Putnam VT Utilities Growth and Income Fund (Closed to of companies outside the United States, with a focus on value
Contracts issued on or after May 3, 2004) — Seeks capital stocks that offer the potential for income.
growth and current income. The fund pursues its goal by invest-Putnam VT International New Opportunities Fund — ing mainly in a combination of stocks and bonds of companies in Seeks long-term capital appreciation. The fund pursues its goal the utilities industries that Putnam Management believes have by investing mainly in common stocks of companies outside the favorable investment potential. Under normal circumstances, United States, with a focus on growth stocks. the fund invests at least 80% of its net assets in equity and debt
investments of companies in the utilities industries. Putnam VT Investors Fund — Seeks long-term growth of
capital and any increased income that results from this growth. Putnam VT Vista Fund — Seeks capital appreciation. The fund The fund pursues its goal by investing mainly in common stocks pursues its goal by investing mainly in common stocks of U.S. of U.S. companies that Putnam Management believes have companies, with a focus on growth stocks.
favorable investment potential.
Putnam VT Voyager Fund — Seeks capital appreciation. The Putnam VT Mid Cap Value Fund — Seeks capital appreciation fund pursues its goal by investing mainly in common stocks of and, as a secondary objective, current income. The fund pursues U.S. companies, with a focus on growth stocks.
its goal by investing mainly in common stocks of U.S. companies,
The Funds are generally managed in styles similar to other open-with a focus on value stocks. Under normal circumstances, the
end investment companies which are managed by Putnam Man-fund invests at least 80% of its net assets in midsized companies
agement and whose shares are generally offered to the public. of a size similar to those in the Russell Midcap Value Index.
These other Putnam funds may, however, employ different Putnam VT Money Market Fund — Seeks as high a rate of investment practices and may invest in securities different from current income as Putnam Management believes is consistent those in which their counterpart Funds invest, and consequently with preservation of capital and maintenance of liquidity. The will not have identical portfolios or experience identical invest-fund pursues its goal by investing mainly in instruments that are ment results.
high quality and have short-term maturity.
Subject to the general oversight of the Trustees of Putnam Varia-Putnam VT New Opportunities Fund — Seeks long-term ble Trust, Putnam Management manages the Funds’ portfolios in capital appreciation. The fund pursues its goal by investing mainly accordance with their stated investment objectives and policies, in common stocks of U.S. companies, with a focus on growth makes investment decisions for the Funds, places orders to pur-stocks in sectors of the economy that Putnam Management chase and sell securities on behalf of the Funds, and administers believes have high growth potential. the affairs of the Funds. For its services, the Funds pay Putnam
Management a quarterly fee. See the accompanying Funds pro- meeting at which shares held for your Contract may be voted. spectus for a more complete description of Putnam Manage- After we begin to make Annuity Payouts to you, the number of ment and the respective fees of the Funds. votes you have will decrease.
Mixed and Shared Funding — Shares of the Funds may be Substitutions, Additions, or Deletions of Funds — We may, sold to our other separate accounts and our insurance company subject to any applicable law, make certain changes the Funds affiliates or other unaffiliated insurance companies to serve as the offered under your contract. We may, in our sole discretion, underlying investment for both variable annuity contracts and establish new Funds. New Funds will be made available to variable life insurance policies, a practice known as ‘‘mixed and existing Contract Owners as we determine appropriate. We may shared funding.’’ As a result, there is a possibility that a material also close one or more Funds to additional Premium Payments or conflict may arise between the interests of Contract Owners, transfers from existing Sub-Accounts.
and of owners of other contracts whose contract values are
We may eliminate the shares of any of the Funds from the allocated to one or more of these other separate accounts
Contract for any reason and we may substitute shares of another investing in any one of the Funds. In the event of any such
registered investment company for the shares of any Fund material conflicts, we will consider what action may be
appropri-already purchased or to be purchased in the future by the Sepa-ate, including removing the Fund from the Separate Account or
rate Account. To the extent required by the Investment Com-replacing the Fund with another underlying fund. There are
pany Act of 1940 (the ‘‘1940 Act’’), substitutions of shares attrib-certain risks associated with mixed and shared funding, as
dis-utable to your interest in a Fund will not be made until we have closed in the Funds’ prospectus.
the approval of the Commission and we have notified you of the Voting Rights — We are the legal owners of all Fund shares held change.
in the Separate Account and we have the right to vote at the
In the event of any substitution or change, we may, by appropri-Fund’s shareholder meetings. To the extent required by federal
ate endorsement, make any changes in the Contract necessary securities laws or regulations, we will:
or appropriate to reflect the substitution or change. If we decide • Notify you of any Fund shareholders’ meeting if the shares that it is in the best interest of the Contract Owners, the Sepa-held for your Contract may be voted. rate Account may be operated as a management company under the 1940 Act or any other form permitted by law, may be de-• Send proxy materials and a form of instructions that you can
registered under the 1940 Act in the event such registration is no use to tell us how to vote the Fund shares held for your
longer required, or may be combined with one or more other Contract.
Separate Accounts. • Arrange for the handling and tallying of proxies received from
Administrative and Distribution Services — Hartford has Contract Owners.
entered into agreements with the investment advisers or distrib-• Vote all Fund shares attributable to your Contract according utors of many of the Funds. Under the terms of these agree-to instructions received from you, and ments, Hartford provides administrative and distribution related services and the Funds pay fees to Hartford that are usually • Vote all Fund shares for which no voting instructions are
based on an annual percentage of the average daily net assets of received in the same proportion as shares for which
instruc-the Funds. These agreements may be different for each Fund or tions have been received.
each Fund family and may include fees paid under a distribution If any federal securities laws or regulations, or their present and/or servicing plan adopted by a Fund pursuant to Rule 12b-1 interpretation, change to permit us to vote Fund shares on our under the Investment Company Act of 1940.
own, we may decide to do so. You may attend any shareholder
The Separate Account may advertise certain performance period. Total return calculations reflect a deduction for Total related information concerning the Sub-Accounts. Performance Annual Fund Operating Expenses, any Contingent Deferred information about a Sub-Account is based on the Sub-Account’s Sales Charge, Separate Account Annual Expenses without any past performance only and is no indication of future optional charge deductions, and the Annual Maintenance Fee. performance.
The Separate Account may also advertise non-standardized total When a Sub-Account advertises its standardized total return, it returns that pre-date the inception date of the Separate will usually be calculated since the date of the Sub-Account’s Account. These non-standardized total returns are calculated by inception for one year, five years, and ten years or some other assuming that the Sub-Accounts have been in existence for the relevant periods if the Sub-Account has not been in existence for same periods as the underlying Funds and by taking deductions at least ten years. Total return is measured by comparing the for charges equal to those currently assessed against the Sub-value of an investment in the Sub-Account at the beginning of the Accounts. Non-standardized total return calculations reflect a relevant period to the value of the investment at the end of the
deduction for Total Annual Fund Operating Expenses and Sepa- percentage of the investment. Effective yield is calculated simi-rate Account Annual Expenses without any optional charge larly but when annualized, the income earned by the investment deductions, and do not include deduction for Contingent is assumed to be reinvested in Sub-Account units and thus com-Deferred Sales Charge or the Annual Maintenance Fee. This pounded in the course of a 52-week period. Yield and effective means the non-standardized total return for a Sub-Account is yield include the recurring charges at the Separate Account level higher than the standardized total return for a Sub-Account. including the Annual Maintenance Fee.
These non-standardized returns must be accompanied by
stan-We may provide information on various topics to Contract Own-dardized returns.
ers and prospective Contract Owners in advertising, sales litera-If applicable, the Sub-Accounts may advertise yield in addition to ture or other materials. These topics may include the relation-total return. The yield will be computed in the following manner: ship between sectors of the economy and the economy as a The net investment income per unit earned during a recent one whole and its effect on various securities markets, investment month period is divided by the unit value on the last day of the strategies and techniques (such as systematic investing, Dollar period. This figure includes the recurring charges at the Separate Cost Averaging and asset allocation), the advantages and disad-Account level including the Annual Maintenance Fee. vantages of investing in tax-deferred and taxable instruments, customer profiles and hypothetical purchase scenarios, financial A money market Sub-Account may advertise yield and effective
management and tax and retirement planning, and other invest-yield. The yield of a Sub-Account is based upon the income
ment alternatives, including comparisons between the Contract earned by the Sub-Account over a seven-day period and then
and the characteristics of and market for such alternatives. annualized, i.e. the income earned in the period is assumed to be
earned every seven days over a 52-week period and stated as a
The Fixed Accumulation Feature is currently not available. return currently available and anticipated on our investments, regulatory and tax requirements and competitive factors. Important information you should know: This portion of
the prospectus relating to the Fixed Accumulation Fea- We will account for any deductions, Surrenders or transfers from ture is not registered under the Securities Act of 1933 the Fixed Accumulation Feature on a ‘‘first-in first-out’’ basis. (‘‘1933 Act’’) and the Fixed Accumulation Feature is not The Fixed Accumulation Feature interest rates may vary by registered as an investment company under the 1940 Act. state.
The Fixed Accumulation Feature or any of its interests are
Important: Any interest credited to amounts you allocate not subject to the provisions or restrictions of the 1933
to the Fixed Accumulation Feature in excess of the mini-Act or the 1940 mini-Act, and the staff of the Securities and
mum guaranteed interest rate will be determined at our Exchange Commission has not reviewed the disclosure
sole discretion. You assume the risk that interest credited regarding the Fixed Accumulation Feature. The following
to the Fixed Accumulation Feature may not exceed the disclosure about Fixed Accumulation Feature may be
sub-minimum guaranteed interest rate for any given year. ject to certain generally applicable provisions of the
fed-eral securities laws regarding the accuracy and complete- From time to time, we may credit increased interest rates under
ness of disclosure. certain programs established in our sole discretion.
Premium Payments and Contract Values allocated to the Fixed We may restrict your ability to allocate Contract Values or Pre-Accumulation Feature become a part of our General Account mium Payments to the Fixed Accumulation Feature at any time in assets. We invest the assets of the General Account according to our sole discretion. We may close the Fixed Accumulation Fea-the laws governing Fea-the investments of insurance company Gen- ture to new Premium Payments or transfers of existing Contract eral Accounts. Premium Payments and Contract Values allocated Value. We may also make the Fixed Accumulation Feature avail-to the Fixed Accumulation Feature are available avail-to our general able only through enrollment in a program that we establish. creditors.
Dollar Cost Averaging Plus (‘‘DCA Plus’’) Programs — You We guarantee that we will credit interest to amounts you allo- may enroll in one or more special pre-authorized transfer pro-cate to the Fixed Accumulation Feature at a rate that meets your grams known as our DCA Plus Programs (the ‘‘Programs’’). state’s minimum requirements. We may change the minimum Under these Programs, Contract Owners who enroll may allo-guaranteed interest rate subject only to applicable state insur- cate a minimum of $5,000 of their Premium Payment into a ance law. We may credit interest at a rate in excess of the Program (we may allow a lower minimum Premium Payment for minimum guaranteed interest rate. We will periodically publish qualified plan transfers or rollovers, including IRAs) and pre-the Fixed Accumulation Feature interest rates currently in effect. authorize transfers from our General Account to any of the Sub-There is no specific formula for determining interest rates. Some Accounts under either a 6-Month Transfer Program or 12-Month of the factors that we may consider in determining whether to Transfer Program subject to Program rules. The 6-Month Trans-credit excess interest are; general economic trends, rates of fer Program and the 12-Month Transfer Program will generally
F i x e d A c c u m u l a t i o n F e a t u r e
have different credited interest rates. Under the 6-Month Trans- start the new Program. Unless you send us different instructions, fer Program, the interest rate can accrue up to 6 months and all the new Program will be the same length of time as your current Premium Payments and accrued interest must be transferred Program and will allocate the subsequent Program payments to from the Program to the selected Sub-Accounts in 3 to 6 the same Sub-Accounts.
months. Under the 12-Month Transfer Program, the interest rate
The DCA Plus Program may credit a higher interest rate but it can accrue up to 12 months and all Premium Payments and
does not ensure a profit or protect you against a loss in declining accrued interest must be transferred to the selected
Sub-markets. Accounts in 7 to 12 months. This will be accomplished by
monthly transfers for the period selected and with the final Hartford may limit the total number of DCA Programs and DCA transfer of the entire amount remaining in the Program. Plus Programs to 5 Programs open at any one time.
The pre-authorized transfers will begin within 15 days of receipt We determine, in our sole discretion, the interest rates credited of the Program payment provided we receive complete enroll- to the Program. These interest rates may vary depending on the ment instructions. If we do not receive complete Program Contract you purchased. Please consult your registered repre-enrollment instructions within 15 days of receipt of the initial sentative to determine the interest rate for your Program. Program payment, the Program will be voided and the entire
You may elect to terminate the transfers by calling or writing us balance in the Program will be transferred to the Accounts
of your intent to cancel enrollment in the Program. Upon cancel-designated by you. If you do not designate an Account, we will
lation, all the amounts remaining in the Program will be immedi-return your Program payment to you for further instruction. If
ately transferred to the Sub-Accounts you selected for the your Program payment is less than the required minimum
Program. amount, we will apply it to your Contract as a subsequent
Pre-mium Payment. We may discontinue, modify or amend the Programs or any
other interest rate program we establish. Any change to a Pro-Under the DCA Plus Programs, the credited interest rate is not
gram will not affect Contract Owners currently enrolled in the earned on the full amount of your Premium Payment for the
Program. entire length of the Program. This is because Program transfers
to the Sub-Accounts decrease the amount of your Premium If you make systematic transfers from the Fixed Accumulation Payment remaining in the Program. Feature under a Dollar Cost Averaging Program or DCA Plus Program, you must wait 6 months after your last systematic All Program payments, including any subsequent Program
pay-transfer before moving Sub-Account Values back to the Fixed ment, must meet the Program minimum. Any subsequent
Pro-Accumulation Feature. gram payments we receive during an active Program transfer
period which are received during the same interest rate effective In Oregon, you may only sign up for DCA Plus Programs that are period will be credited to the current Program. Any subsequent 6 months or longer.
Program payments we receive during an active Program transfer
We may receive payments from Putnam Retail Management period which are received during a different interest rate
effec-Limited Partnership to help reimburse us for the cost of crediting tive period will be used to start a new Program. That Program
higher rates under a DCA Plus Program. will be credited with the interest rate in effect on the date we
• Employee pension plans established for employees by a state, a political subdivision of a state, or an agency of either a state What types of Contracts are available?
or a political subdivision of a state, and The Contract is an individual or group tax-deferred variable
annuity contract. It is designed for retirement planning purposes • Certain eligible deferred compensation plans as defined in and may be purchased by any individual, group or trust, Section 457 of the Code.
including:
The examples above represent qualified Contracts, as defined by • Any trustee or custodian for a retirement plan qualified under the Code. In addition, individuals and trusts can also purchase Sections 401(a) or 403(a) of the Code; Contracts that are not part of a tax qualified retirement plan.
These are known as non-qualified Contracts. • Annuity purchase plans adopted by public school systems and
certain tax-exempt organizations according to Section 403(b) If you are purchasing the Contract for use in an IRA or other
of the Code; qualified retirement plan, you should consider other features of
the Contract besides tax deferral, since any investment vehicle • Individual Retirement Annuities adopted according to Section
used within an IRA or other qualified plan receives tax deferred 408 of the Code;
treatment under the Code.
T h e C o n t r a c t
This prospectus describes two versions of the Contract. Series II California Seniors — The Senior Protection Program of the Contract was sold before January 30, 2004. Series IIR of Effective for Contracts delivered on or after July 1, 2004, any the Contract is sold on or after January 30, 2004. Contract Owner 60 years old or older when purchasing this
Contract in the state of California must either: How do I purchase a Contract?
• Elect the Senior Protection Program, or You may purchase a Contract by completing and submitting an
application or an order request along with an initial Premium • Elect to immediately allocate the initial Premium Payments to Payment. For most Contracts, the minimum Premium Payment the other investment options.
is $10,000. For additional Premium Payments, the minimum
Under the Senior Protection Program we will allocate your initial Premium Payment is $500. Under certain situations, we may
Premium Payment to the Sub-Account for the first 35 days your allow smaller Premium Payments, for example, if you enroll in
initial Premium Payment is invested. After the 35th day we will our InvestEase Program or are part of certain tax qualified
retire-automatically allocate your Contract Value according to your ment plans. Prior approval is required for any Premium
Pay-most current investment instructions. ments that would equal or exceed $1,000,000 when combined
with the total Premium Payments made to this Contract and any If you elect the Senior Protection Program you will not be able to other Contract we issue to you or to your Annuitant. participate in any Investease or Dollar Cost Averaging Program
until after the Program has terminated. The Dollar Cost Averag-You and your Annuitant must not be older than age 90 on the
ing Plus and certain Automatic Income Programs are not avail-date that your Contract is issued. You must be of legal age in the
able if you elect the Senior Protection Program. Under the state where the Contract is being purchased or a guardian must
Senior Protection Program any subsequent Premium Payment act on your behalf.
received during the 35 days after the initial Premium Payment is If you purchase your Contract in Alabama, we will accept subse- invested will also be invested in the Sub-Account unless you quent Premium Payments only during the first 3 Contract Years. direct otherwise.
If you purchase you Contract in Oregon, we will accept
subse-You may elect to terminate your participation in the Senior quent Premium Payments only during the first 6 Contract Years.
Protection Program at any time. If you allocate a subsequent If you purchase your Contract in Massachusetts, we will accept
Premium Payment to any other investment option or transfer subsequent Premium Payments only until the Annuitant’s 66th
Account Value from the Sub-Account to another investment birthday or the sixth Contract Anniversary, whichever is later.
option we will automatically terminate your participation in the How are Premium Payments applied to my Contract? Senior Protection Program. If your participation in the Senior Your initial Premium Payment will be invested within two Valua- Protection Program is terminated, any Contract Value allocated tion Days of our receipt of a properly completed application or to the Sub-Account will be automatically reallocated as initially an order request and the Premium Payment. If we receive your scheduled 35 days after your initial Premium Payment is invested. subsequent Premium Payment before the close of the New York The reallocation will occur in accordance with your original Stock Exchange, it will be invested on the same Valuation Day. If investment instructions unless you direct us otherwise. we receive your Premium Payment after the close of the New
Can I cancel my Contract after I purchase it? York Stock Exchange, it will be invested on the next Valuation
We want you to be satisfied with the Contract you have pur-Day. If we receive your subsequent Premium Payment on a
Non-chased. We urge you to closely examine its provisions. If for any Valuation Day, the amount will be invested on the next Valuation
reason you are not satisfied with your Contract, simply return it Day. Unless we receive new instructions, we will invest the
within ten days after you receive it with a written request for Premium Payment based on your last allocation instructions. We
cancellation that indicates your tax-withholding instructions. In will send you a confirmation when we invest your Premium
some states, you may be allowed more time to cancel your Payment.
Contract. We will not deduct any Contingent Deferred Sales If the request or other information accompanying the initial Charges during this time. We may require additional information, Premium Payment is incomplete when received, we will hold the including a signature guarantee, before we can cancel your money in a non-interest bearing account for up to five Valuation Contract.
Days while we try to obtain complete information. If we cannot
Unless otherwise required by state law, you will receive back obtain the information within five Valuation Days, we will either
whatever your Contract Value is worth on the day we receive return the Premium Payment and explain why the Premium
your request. The Contract Value may be more or less than your Payment could not be processed or keep the Premium Payment
Premium Payments depending upon the performance of your if you authorize us to keep it until you provide the necessary
sub-accounts. This means that you bear the risk of any decline in information.
your Contract Value until we receive your notice of cancellation. We do not refund any charges or deductions assessed during this period. In certain states, we are required to give you back your Premium Payment if you decide to cancel your Contract.
