ING Life Insurance and Annuity Company
and its
Variable Annuity Account B
Variable Annuity Account C
Variable Annuity Account I

Supplement dated September 18, 2007 to the Contract Prospectus and Contract Prospectus
Summary, as applicable, each dated April 30, 2007, as amended

The information in this Supplement updates and amends certain information contained in your variable
annuity Contract Prospectus and Contract Prospectus Summary, as applicable. Please read it carefully and
keep it with your current variable annuity Contract Prospectus and/or Contract Prospectus Summary, as
applicable, for future reference.

IMPORTANT INFORMATION REGARDING AN UPCOMING
CHANGE TO OUR EXCESSIVE TRADING POLICY

Effective October 16, 2007, our Excessive Trading Policy will change. Accordingly, the “Limits
Imposed by Underlying Funds,” the “Limits on Frequent or Disruptive Transfers,” the “The
Company Intends to Modify its Excessive Trading Policy in October 2007,” and the “Agreements to
Share Information with Funds” subsections of the “Transfers” section in your Contract Prospectus
and of the “Investment Options” section in your Contract Prospectus Summary will be deleted in
their entirety and replaced with the following:

Limits on Frequent or Disruptive Transfers

The contract is not designed to serve as a vehicle for frequent transfers. Frequent transfer activity can
disrupt management of a fund and raise its expenses through:

• Increased trading and transaction costs;

• Forced and unplanned portfolio turnover;

• Lost opportunity costs; and

• Large asset swings that decrease the fund’s ability to provide maximum investment return to all

  contract owners and participants.

This in turn can have an adverse effect on fund performance. Accordingly, individuals or organizations
that use market-timing investment strategies or make frequent transfers should not purchase or
participate in the contract.

X.ILIACBCI-07A Page 1 of 4 September 2007

Excessive Trading Policy. We and the other members of the ING family of companies that provide
multi-fund variable insurance and retirement products have adopted a common Excessive Trading Policy
to respond to the demands of the various fund families that make their funds available through our
products to restrict excessive fund trading activity and to ensure compliance with Rule 22c-2 of the 1940
Act.

We actively monitor fund transfer and reallocation activity within our variable insurance products to
identify violations of our Excessive Trading Policy. Our Excessive Trading Policy is violated if fund
transfer and reallocation activity:

• Meets or exceeds our current definition of Excessive Trading, as defined below; or

• Is determined, in our sole discretion, to be disruptive or not in the best interests of other owners of our

  variable insurance and retirement products, or participants in such products.

We currently define “Excessive Trading” as:

• More than one purchase and sale of the same fund (including money market funds) within a 60

  calendar day period (hereinafter, a purchase and sale of the same fund is referred to as a “round-trip”).

  This means two or more round-trips involving the same fund within a 60 calendar day period would

  meet our definition of Excessive Trading; or

• Six round-trips involving the same fund within a rolling twelve month period.

The following transactions are excluded when determining whether trading activity is excessive:

• Purchases or sales of shares related to non-fund transfers (for example, new purchase payments,

  withdrawals and loans);

• Transfers associated with scheduled dollar cost averaging, scheduled rebalancing, or scheduled asset

  allocation programs;

• Purchases and sales of fund shares in the amount of $5,000 or less;

• Purchases and sales of funds that affirmatively permit short-term trading in their fund shares, and

  movement between such funds and a money market fund; and

• Transactions initiated by us, another member of the ING family of companies, or a fund.

If we determine that an individual or entity has made a purchase of a fund within 60 days of a prior
round-trip involving the same fund, we will send them a letter (once per year) warning that another sale of
that same fund within 60 days of the beginning of the prior round-trip will be deemed to be Excessive
Trading and result in a six month suspension of their ability to initiate fund transfers or reallocations
through the Internet, facsimile, Voice Response Unit (VRU), telephone calls to the ING Customer
Service Center or other electronic trading medium that we may make available from time to time
(“Electronic Trading Privileges”). Likewise, if we determine that an individual or entity has made five
round-trips involving the same fund within a rolling twelve month period, we will send them a letter
warning that another purchase and sale of that same fund within twelve months of the initial purchase in
the first round-trip will be deemed to be Excessive Trading and result in a suspension of their Electronic
Trading Privileges. According to the needs of the various business units, a copy of any warning letters
may also be sent, as applicable, to the person(s) or entity authorized to initiate fund transfers or
reallocations, the agent/registered representative, or the investment adviser for that individual or entity. A
copy of the warning letters and details of the individual’s or entity’s trading activity may also be sent to
the fund whose shares were involved in the trading activity.

X.ILIACBCI-07A Page 2 of 4 September 2007

If we determine that an individual or entity has violated our Excessive Trading Policy, we will send them
a letter stating that their Electronic Trading Privileges have been suspended for a period of six months.
Consequently, all fund transfers or reallocations, not just those that involve the fund whose shares were
involved in the activity that violated our Excessive Trading Policy, will then have to be initiated by
providing written instructions to us via regular U.S. mail. Suspension of Electronic Trading Privileges
may also extend to products other than the product through which the Excessive Trading activity
occurred. During the six month suspension period, electronic “inquiry only” privileges will be permitted
where and when possible. A copy of the letter restricting future transfer and reallocation activity to
regular U.S. mail and details of the individual’s or entity’s trading activity may also be sent, as applicable,
to the person(s) or entity authorized to initiate fund transfers or reallocations, the agent/registered
representative or investment adviser for that individual or entity, and the fund whose shares were involved
in the activity that violated our Excessive Trading Policy.

Following the six month suspension period during which no additional violations of our Excessive
Trading Policy are identified, Electronic Trading Privileges may again be restored. We will continue to
monitor the fund transfer and reallocation activity, and any future violations of our Excessive Trading
Policy will result in an indefinite suspension of Electronic Trading Privileges. A violation of our
Excessive Trading Policy during the six month suspension period will also result in an indefinite
suspension of Electronic Trading Privileges.

We reserve the right to suspend Electronic Trading Privileges with respect to any individual or entity,
with or without prior notice, if we determine, in our sole discretion, that the individual’s or entity’s
trading activity is disruptive or not in the best interests of other owners of our variable insurance and
retirement products, or participants in such products, regardless of whether the individual’s or entity’s
trading activity falls within the definition of Excessive Trading set forth above.

Our failure to send or an individual’s or entity’s failure to receive any warning letter or other notice
contemplated under our Excessive Trading Policy will not prevent us from suspending that individual’s or
entity’s Electronic Trading Privileges or taking any other action provided for in our Excessive Trading
Policy.

The Company does not allow exceptions to our Excessive Trading Policy. We reserve the right to modify
our Excessive Trading Policy, or the policy as it relates to a particular fund, at any time without prior
notice, depending on, among other factors, the needs of the underlying fund(s), the best interests of
contract owners, participants, and fund investors, and/or state or federal regulatory requirements. If we
modify our policy, it will be applied uniformly to all contract owners and participants or, as applicable, to
all contract owners and participants investing in the underlying fund.

Our Excessive Trading Policy may not be completely successful in preventing market-timing or excessive
trading activity. If it is not completely successful, fund performance and management may be adversely
affected, as noted above.

Limits Imposed by the Underlying Funds. Each underlying fund available through the variable
insurance and retirement products offered by us and/or the other members of the ING family of
companies, either by prospectus or stated policy, has adopted or may adopt its own excessive/frequent
trading policy, and orders for the purchase of fund shares are subject to acceptance or rejection by the
underlying fund. We reserve the right, without prior notice, to implement fund purchase restrictions
and/or limitations on an individual or entity that the fund has identified as violating its excessive/frequent
trading policy and to reject any allocation or transfer request to a subaccount if the corresponding fund

X.ILIACBCI-07A Page 3 of 4 September 2007

will not accept the allocation or transfer for any reason. All such restrictions and/or limitations (which
may include, but are not limited to, suspension of Electronic Trading Privileges and/or blocking of future
purchases of a fund or all funds within a fund family) will be done in accordance with the directions we
receive from the fund.

Agreements to Share Information with Fund Companies. As required by Rule 22c-2 under the 1940
Act, we have entered into information sharing agreements with each of the fund companies whose funds
are offered through the contract. Contract owner and participant trading information is shared under these
agreements as necessary for the fund companies to monitor fund trading and our implementation of our
Excessive Trading Policy. Under these agreements, the Company is required to share information
regarding contract owner and participant transactions, including but not limited to information regarding
fund transfers initiated by you. In addition to information about contract owner and participant
transactions, this information may include personal contract owner and participant information, including
names and social security numbers or other tax identification numbers.

As a result of this information sharing, a fund company may direct us to restrict a contract owner or
participant’s transactions if the fund determines that the contract owner or participant has violated the
fund’s excessive/frequent trading policy. This could include the fund directing us to reject any allocations
of purchase payments or account value to the fund or all funds within the fund family.

Insurance products issued by ING Life Insurance and Annuity Company. Securities offered through ING Financial
Advisers, LLC (Member SIPC), 151 Farmington Avenue, Hartford, CT 06156, or through other Broker-Dealers with
which it has a selling agreement. These companies are wholly owned, indirect subsidiaries of ING Groep N.V. Insurance
obligations are the responsibility of each individual company.

X.ILIACBCI-07A Page 4 of 4 September 2007