485APOS 1 a08-1222_1485apos.txt 485APOS AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 24, 2008 FILE NO. 333-101932 811-04972 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------ FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ------------ PRE-EFFECTIVE AMENDMENT NO. / / POST-EFFECTIVE AMENDMENT NO. 19 /X/ REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 AMENDMENT NO. 309 /X/ HARTFORD LIFE INSURANCE COMPANY SEPARATE ACCOUNT SEVEN (Exact Name of Registrant) HARTFORD LIFE INSURANCE COMPANY (Name of Depositor) P.O. BOX 2999 HARTFORD, CT 06104-2999 (Address of Depositor's Principal Offices) (860) 843-1941 (Depositor's Telephone Number, Including Area Code) RICHARD J. WIRTH HARTFORD LIFE INSURANCE COMPANY P.O. BOX 2999 HARTFORD, CT 06104-2999 (Name and Address of Agent for Service) ------------ APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING: AS SOON AS PRACTICABLE AFTER THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT. ------------ It is proposed that this filing will become effective: / / immediately upon filing pursuant to paragraph (b) of Rule 485 / / on , pursuant to paragraph (b) of Rule 485 / / 60 days after filing pursuant to paragraph (a)(1) of Rule 485 /X/ on May 1, 2008, pursuant to paragraph (a)(1) of Rule 485 / / this post-effective amendment designates a new effective date for a previously filed post-effective amendment. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ PART A HARTFORD LEADERS HARTFORD LIFE AND ANNUITY INSURANCE COMPANY SEPARATE ACCOUNT SEVEN (EST. 12/8/86) HARTFORD LIFE INSURANCE COMPANY SEPARATE ACCOUNT SEVEN (EST. 4/1/99) P.O. BOX 5085 HARTFORD, CONNECTICUT 06102-5085 [TELEPHONE ICON] 1-800-862-6668 (CONTRACT OWNERS) 1-800-862-7155 (REGISTERED REPRESENTATIVES) [COMPUTER ICON] WWW.HARTFORDINVESTOR.COM [THE HARTFORD LOGO] -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- This variable annuity is a contract ("Contract") between you and Hartford Life and Annuity Insurance Company or Hartford Life Insurance Company ("us," "we" or "our"). This Prospectus provides information regarding Leaders Series III, Series IIR and Series II Contracts. Please read this prospectus carefully before investing and keep it for your records. You can also contact us 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" or "Commission"). Although we file this 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 (www.sec.gov). You may also obtain a copy of this prospectus and the Statement of Additional Information, as amended from time to time, in a compact disk by contacting us. This variable annuity may not be suitable for everyone. This variable annuity may not be appropriate for people who do not have a long time horizon for the investments or intend to engage in market timing. If you are investing in a variable annuity through a tax-advantaged retirement plan (such as a 401(k) plan or Individual Retirement Account ("IRA"), you will get NO ADDITIONAL TAX advantage from this variable annuity. Under these circumstances, consider buying a variable annuity only if it makes sense because of the annuity's other features, such as lifetime income payments and death benefit protection. The tax rules that apply to variable annuities can be complicated -- before investing, you may want to consult a tax adviser about the tax consequences to you of investing in a variable annuity. This prospectus is written in connection with the promotion or marketing of the matters(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice. NOT INSURED BY FDIC OR ANY FEDERAL GOVERNMENT MAY LOSE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR [NOT] FDIC AGENCY VALUE ANY BANK AFFILIATE [NOT] BANK
Portfolio Companies Included in this Prospectus: X AIM Variable Insurance Funds X American Funds Insurance Series X Franklin Templeton Variable Insurance Products Trust X Hartford Series Fund, Inc. X MFS Variable Trust X Evergreen Variable Annuity Trust X Huntington Funds X JP Morgan Insurance Trust X Ridge Worth Variable Trust X Wells Fargo Variable Trust Funds -------------------------------------------------------------------------------- PROSPECTUS DATED: MAY 1, 2008 STATEMENT OF ADDITIONAL INFORMATION DATED: MAY 1, 2008 2 ------------------------------------------------------------------------------- TABLE OF CONTENTS
PAGE -------------------------------------------------------------------------------- 1. HIGHLIGHTS 3 2. SYNOPSIS 5 3. GENERAL INFORMATION 8 The Company 8 The Separate Account 8 The Funds 8 Fixed Accumulation Feature 10 4. PERFORMANCE RELATED INFORMATION 10 5. THE CONTRACT 11 a. Purchases and Contract Value 11 b. Charges and Fees 18 c. Surrenders 19 d. Annuity Payouts 22 e. Standard Death Benefits 25 6. OPTIONAL DEATH BENEFITS 28 a. MAV Plus 28 7. OPTIONAL WITHDRAWAL BENEFITS 30 a. The Hartford's Principal First Preferred 30 b. The Hartford's Lifetime Income Foundation 33 c. The Hartford's Lifetime Income Builder II 41 d. The Hartford's Principal First 49 8. MISCELLANEOUS 52 a. Definitions 52 b. State Variations 56 c. Financial Statements 58 d. More Information 58 e. Legal Proceedings 58 f. How Contracts Are Sold 59 9. FEDERAL TAX CONSIDERATIONS 61 10. INFORMATION REGARDING TAX-QUALIFIED RETIREMENT PLANS 67 TABLE OF CONTENTS TO STATEMENT OF ADDITIONAL INFORMATION 74 APPENDIX I -- EXAMPLES APP I-1 APPENDIX II -- ACCUMULATION UNIT VALUES APP II-1 APPENDIX A -- PRODUCT COMPARISON INFORMATION APP A-1 APPENDIX B -- OPTIONAL BENEFITS COMPARISONS APP B-1 APPENDIX C -- THE HARTFORD'S LIFETIME INCOME BUILDER APP C-1 APPENDIX D -- EXCHANGE PROGRAMS APP D-1 APPENDIX E -- INFORMATION REGARDING CONTRACT SERIES NO LONGER SOLD APP E-1
3 ------------------------------------------------------------------------------- 1. HIGHLIGHTS A. OVERVIEW This is a deferred, flexible-premium variable annuity. A deferred variable annuity has an accumulation phase and a payout phase. You make investments during the accumulation phase. The value of your investments is used to set your benefits. At the end of the accumulation phase, we use that accumulated value to set the payments that we make during the payout phase. Generally speaking, the longer the accumulation phase, the greater your Contract Value will be for setting your benefits and annuity payouts. This variable annuity lets you: X Invest among different investment options. (Sections 3, 5(a) & Appendix A) X Make tax-free transfers among investment options. (Sections 5(a), 9 & 10) X Defer taxes on your investments until you withdraw your money (subject to possible IRS penalty). (Sections 5(c), 9 & 10) X Choose from among several optional living benefits that provide guaranteed withdrawals over a fixed or an indeterminate time period. (Sections 2, 7 & Appendix B) X Collect Annuity Payouts over a fixed or an indeterminate time period. (Section 5(d)) X Select among different Death Benefits. (Sections 2, 5(e), 6, 7(b), 7(c) & Appendices I & B) B. HOW TO BUY OUR VARIABLE ANNUITY (Sections 5(a), 8(a) & Appendix A) [In writing] Complete our application or order request and submit it to your Financial Intermediary for approval. $ Include the applicable minimum Premium Payment. [Thumbs up] Choose an optional feature right for you. Options include:
OPTIONAL FEATURE GENERAL PURPOSE -------------------------------------------------------------------------------- MAV/MAV Plus Guaranteed Minimum Death Benefit that ratchets up based on performance The Hartford's Principal First Guaranteed Minimum Withdrawal Benefit with periodic step-up rights The Hartford's Principal First Guaranteed Minimum Withdrawal Benefit Preferred The Hartford's Lifetime Income Builder Guaranteed Minimum Lifetime Withdrawal Selects Benefit with limited annual step-up rights The Hartford's Lifetime Income Builder Guaranteed Minimum Lifetime Withdrawal Portfolios Benefit with full annual step-up rights The Hartford's Lifetime Income Builder Guaranteed Minimum Lifetime Withdrawal II Benefit with limited annual step-up rights The Hartford's Lifetime Income Builder Guaranteed Minimum Lifetime Withdrawal Foundation Benefit
For The Hartford's Lifetime Income Builder Selects, we reserve the right to limit the Funds into which you may allocate your Contract Value. For The Hartford's Lifetime Income Builder Portfolios, your Contract Value must be invested in one or more Programs and in an approved model portfolio, Funds, or other investment vehicles established from time to time. Partial Surrenders taken prior to the Lifetime Eligibility Date or in excess of the available Lifetime Benefit Payment will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold/Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Threshold/Lifetime Benefit Payment. Optional features are subject to restrictions that may limit or eliminate the availability of these benefits. Optional features selected will be identified on your application and Contract. Not every optional feature may be available from your Financial Intermediary and may be subject to additional restrictions. Other optional features that are not actively sold are referenced in Appendix C. For more information, see Section 7 & Appendix B. Not every variation of this variable annuity may be available from your Financial Intermediary. 4 ------------------------------------------------------------------------------- C. INVESTMENT OPTIONS (Sections 3, 5(a) & Appendices II & A) You may invest in: X Funds with different investment strategies, objectives and risk/reward profiles. X In certain circumstances, you may also invest in a Fixed Accumulation Feature. D. CHARGES AND FEES (Sections 2, 5(b), 5(c) & Appendices II, A & B) You will pay the following types of fees: X Sales charges (varies by Contract version) X Contract expenses (varies by Contract version) X Optional rider fees (if selected) X Fund expenses E. ASK QUESTIONS BEFORE YOU INVEST Before you decide to buy any variable annuity, consider the following questions: - Will you use the variable annuity primarily to save for retirement or a similar long-term goal? - Are you investing in the variable annuity through a retirement plan or IRA (which would mean that you are not receiving any additional tax-deferral benefit from the variable annuity)? - Are you willing to take the risk that your Contract Value may decrease if your underlying investment options perform poorly? - Do you intend to hold this variable annuity long enough to avoid paying any applicable surrender charges if you have to withdraw money? - If you are exchanging one annuity for another one, do the benefits of the exchange outweigh the costs, such as any applicable surrender charges you might have to pay if you withdraw your money before the end of any surrender charge period for the new annuity? - Do you need an optional living or Death Benefit? - If you are purchasing our "Plus" variable annuity, are you sure that you understand that you are buying a "bonus" annuity? Do you understand that you pay for Payment Enhancements through higher surrender charges, a longer surrender period and higher mortality and expense risk charges? Do you know that we may take back some or all Payment Enhancements in certain circumstances? Here are a few suggestions that might make it easier for you to use this prospectus: X We use a lot of defined terms to describe how this variable annuity works. These terms are capitalized and described in the Definition section (section 8(a)). Unavoidably, we sometimes interchangeably use different terms that essentially mean the same thing (for instance, this variable annuity is also called a "Contract"). X We include cross references to other sections to help describe certain aspects of this variable annuity in more detail. For example, we may describe an optional benefit in section 7 but examples of how it works are in Appendix I. X Know what kind of variable annuity you are buying. We have noted what type of variable annuity (and in some instances, what series of variable annuity) this is on the cover page of this prospectus. This information will also appear in your application and Contract. Even though we have included comparison information about other variations of this variable annuity so that you can have a better idea which one might be appropriate for you, you may only need to focus only on those sections that specifically apply to the form of variable annuity you chose. X The format and tables provided are designed to help you compare features. We have used a consistent question and answer format in sections 6 and 7 to make it easier to compare optional benefits. Appendix B provides a summary of these features in an easy to read table. Likewise, Appendix A is designed to compare and contrast different variations of this variable annuity. F. COMMISSIONS FOR SELLING THIS VARIABLE ANNUITY (Section 8(f) & Appendix A) We pay a commission for selling this variable annuity to you. Commissions vary based on a variety of factors such as whether they are paid up front or over time, the type of variable annuity sold and your age. We also provide various promotional incentives to Financial Intermediaries to promote our products. These arrangements create a potential conflict of interest. You should ask your Registered Representative for information regarding these matters. 5 ------------------------------------------------------------------------------- 2. SYNOPSIS THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY WHEN BUYING, OWNING AND SURRENDERING YOUR VARIABLE ANNUITY. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT YOU BUY OR SURRENDER THIS VARIABLE ANNUITY. STATE PREMIUM TAXES MAY ALSO BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES SALES CHARGE IMPOSED ON PURCHASES (as a percentage of Premium Payments) None $0 - $49,999 0% $50,000 - $99,999 0% $100,000 - $249,999 0% $250,000 - $499,999 0% $500,000 - $999,999 0% $1,000,000+ 0% CONTINGENT DEFERRED SALES CHARGE* (as a percentage of Premium Payments) First Year 7% Second Year 7% Third Year 7% Fourth Year 6% Fifth Year 5% Sixth Year 4% Seventh Year 3% Eighth Year 0% Ninth Year 0% SURRENDER FEE (as a percentage of amount Surrendered, if applicable) None EXCHANGE FEE None
* Each Premium Payment has its own Contingent Deferred Sales Charge schedule. CONTRACT OWNER PERIODIC EXPENSES THE NEXT TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY AND ON A DAILY BASIS (EXCEPT AS NOTED) DURING THE TIME THAT YOU OWN THIS VARIABLE ANNUITY, NOT INCLUDING FUND FEES AND EXPENSES.
SERIES II/IIR SERIES III ----------------------------------------------------------------------------------------------------------- ANNUAL MAINTENANCE FEE (1) $30 $30 SEPARATE ACCOUNT ANNUAL EXPENSES (as a percentage of average daily Account Value) Mortality and Expense Risk Charge 1.20% 1.15% Administrative Charge 0.15% 0.20% Total Separate Account Annual Expenses 1.35% 1.35% MAXIMUM OPTIONAL CHARGES (as a percentage of average daily Account Value) The Hartford's Principal First Preferred Charge (5) 0.20% 0.20% The Hartford's Principal First Charge (2)(5) 0.75% 0.75% MAV/MAV Plus Charge 0.30% 0.30% Total Separate Account Annual Expenses with optional benefit separate account 2.40% 2.40% charges MAXIMUM OPTIONAL CHARGES (3) (as a percentage of Benefit Amount or Payment Base (4)) The Hartford's Lifetime Income Foundation 0.30% 0.30% The Hartford's Lifetime Income Builder II Charge (2)(5) 0.75% 0.75% The Hartford's Lifetime Income Builder Charge (2)(5) 0.75% 0.75% The Hartford's Lifetime Income Builder Selects (2)(3)(5) Single Life Option Charge 1.50% 1.50% Joint/Spousal Life Option Charge 1.50% 1.50%
6 -------------------------------------------------------------------------------
SERIES II/IIR SERIES III ----------------------------------------------------------------------------------------------------------- The Hartford's Lifetime Income Builder Portfolios (2)(3)(5) Single Life Option Charge 1.50% 1.50% Joint/Spousal Life Option Charge 1.50% 1.50%
(1) Fee waived if Contract Value is $50,000 or more on your Contract Anniversary or when you fully Surrender your Contract. (2) The current charges for new purchases are The Hartford's Lifetime Income Builder (0.40%), The Hartford's Lifetime Income Builder II (0.40%) and The Hartford's Principal First (0.50%), The Hartford's Lifetime Income Builder Selects (0.55%) and The Hartford's Lifetime Income Builder Portfolios (0.65%). (3) Charge deducted on each Contract Anniversary and when you fully Surrender your Contract. (4) See "Does the Benefit Amount/Payment Base change under this rider?" in Section 6 for a description of the terms "Benefit Amount" and "Payment Base." (5) You may not own more than one of these optional riders at the same time. THE NEXT ITEM SHOWS THE MINIMUM AND MAXIMUM TOTAL FUND OPERATING EXPENSES CHARGED BY THE FUNDS THAT YOU MAY PAY ON A DAILY BASIS DURING THE TIME THAT YOU OWN THIS VARIABLE ANNUITY. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND. HARTFORD LEADERS SERIES II/IIR/III, WELLS FARGO LEADERS SERIES I/IR/II, HARTFORD LEADERS/CHASE I/II, CLASSIC HARTFORD LEADERS, HARTFORD LEADERS SELECT, HUNTINGTON HARTFORD LEADERS
MINIMUM MAXIMUM ---------------------------------------------------------------------------------------------------------------------- TOTAL ANNUAL FUND OPERATING EXPENSES 0.47% 1.56% (these are expenses that are deducted from Fund assets, including management fees, Rule 12b-1 distribution and/or service fees, and other expenses)
7 ------------------------------------------------------------------------------- EXAMPLE THIS EXAMPLE IS INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THIS VARIABLE ANNUITY WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITIES. LET'S SAY, HYPOTHETICALLY, THAT YOUR ANNUAL INVESTMENT RETURN IS 5% AND THAT YOUR FEES AND EXPENSES TODAY WERE AS HIGH AS POSSIBLE. THE EXAMPLE ILLUSTRATES THE EFFECT OF FEES AND EXPENSES THAT YOU COULD INCUR (OTHER THAN TAXES). YOUR ACTUAL FEES AND EXPENSES MAY VARY. FOR EVERY $10,000 INVESTED, HERE'S HOW MUCH YOU WOULD PAY UNDER EACH OF THE THREE SCENARIOS POSED: HARTFORD LEADERS SERIES II/IIR/III, WELLS FARGO LEADERS SERIES I/IR/II, HARTFORD LEADERS/CHASE I/II, CLASSIC HARTFORD LEADERS, HARTFORD LEADERS SELECT, HUNTINGTON HARTFORD LEADERS (1) If you Surrender your variable annuity at the end of the applicable time period: 1 year $1,098 3 years $1,986 5 years $2,689 10 years $4,472
(2) If you annuitize at the end of the applicable time period: 1 year $329 3 years $1,206 5 years $2,094 10 years $4,362
(3) If you do not Surrender your variable annuity: 1 year $435 3 years $1,313 5 years $2,202 10 years $4,472
CONDENSED FINANCIAL INFORMATION -------------------------------------------------------------------------------- When Premium Payments are credited to your Funds, they are converted into Accumulation Units by dividing the amount of your Premium Payments, minus any Premium Taxes, by the Accumulation Unit Value for that day. For more information on how Accumulation Unit Values are calculated see Section 5(a). Please refer to Appendix II for information regarding the minimum and maximum class of Accumulation Unit Values. All classes of Accumulation Unit Values may be obtained, free of charge, by contacting us. 8 ------------------------------------------------------------------------------- 3. GENERAL INFORMATION THE COMPANY We are a stock life insurance company engaged in the business of writing life insurance and individual and group annuities. Hartford Life Insurance Company is authorized to do business in all states of the United States and the District of Columbia. Hartford Life and Annuity Insurance Company is authorized to do business in all states of the United States except New York, the District of Columbia and Puerto Rico. Hartford Life and Annuity Insurance Company was originally incorporated under the laws of Wisconsin on January 9, 1956, and subsequently redomiciled to Connecticut. Hartford Life Insurance Company was originally incorporated under the laws of Massachusetts on June 5, 1902, and subsequently redomiciled to Connecticut. Our offices are located in Simsbury, Connecticut. Not all Contracts are available from each issuing company. Neither company cross guarantees the obligations of the other. We are ultimately controlled by The Hartford Financial Services Group, Inc., one of the largest financial service providers in the United States. THE SEPARATE ACCOUNT We set aside and invest the assets of some of our annuity contracts, including this Contract, in a Separate Account. These Separate Accounts are registered as a unit investment trust under the 1940 Act. This registration does not involve supervision by the SEC of the management or the investment practices of a Separate Account or us. Separate Accounts meet the definition of "Separate Account" under federal securities law. The Separate Accounts referenced in this prospectus hold only assets for variable annuity contracts. These Separate Accounts: - Hold assets for your benefit and the benefit of other Contract Owners, and the persons entitled to the payouts described in the Contract. - Are not subject to the liabilities arising out of any other business we may conduct. All guarantees under the Contract are our general corporate obligations. - Are not affected by the rate of return of our General Account or by the investment performance of any of our other Separate Accounts. - May be subject to liabilities from a Sub-Account of a Separate Account that holds assets of other variable annuity contracts offered by a Separate Account, which are not described in this prospectus. - Are credited with income and gains, and takes losses, whether or not realized, from the assets they hold without regard to our other income, gains or loss. We do not guarantee the investment results of any Separate Account. There is no assurance that the value of your Contract will equal the total of the payments you make to us. THE FUNDS The Funds available for investment are described in Appendix A. These are not the same mutual funds that you can buy through your stockbroker even though they may have similar investment strategies and the same portfolio managers. Each Fund has varying degrees of investment risk. Funds are also subject to separate fees and expenses such as management fees, distribution fees and operating expenses. PLEASE CONTACT US TO OBTAIN A COPY OF THE PROSPECTUSES FOR EACH FUND. YOU SHOULD READ THESE PROSPECTUSES CAREFULLY BEFORE INVESTING. We do not guarantee the investment results of any Fund. Certain Funds may not be available in all states and in all variations of this Contract. MIXED AND SHARED FUNDING -- Fund shares may be sold to our other separate accounts, our insurance company affiliates or other unaffiliated insurance companies to serve as an underlying investment for variable annuity contracts and variable life insurance policies, pursuant to a practice known as "mixed and shared funding." As a result, there is a possibility that a material conflict may arise between the interests of Contract Owners, and other contract owners investing these Funds. If a material conflict arose, we will consider what action may be appropriate, including removing the Fund from the Separate Account or replacing the Fund with another underlying fund. VOTING RIGHTS -- We are the legal owners of all Fund shares held in the Separate Account and we have the right to vote at the Funds' shareholder meetings. To the extent required by federal securities laws or regulations, we will: - Notify you of any Fund shareholders' meeting if the shares held for your Contract may be voted. - Send proxy materials and a form of instructions that you can use to tell us how to vote the Fund shares held for your Contract. - Arrange for the handling and tallying of proxies received from Contract Owners. - Vote all Fund shares attributable to your Contract according to instructions received from you, and 9 ------------------------------------------------------------------------------- - Vote all Fund shares for which no voting instructions are received in the same proportion as shares for which instructions have been received. If any federal securities laws or regulations, or their present interpretation, change to permit us to vote Fund shares on our own, we may decide to do so. You may attend any shareholder meeting at which shares held for your Contract may be voted. After we begin to make Annuity Payouts to you, the number of votes you have will decrease. As a result of proportional voting, a small number of Contract Owners could determine the outcome of a proposition subject to shareholder vote. SUBSTITUTIONS, ADDITIONS, OR DELETIONS OF FUNDS -- Subject to any applicable law, we may make certain changes to the underlying funds offered under your Contract. We may, in our sole discretion, establish new Funds. New Funds may be made available to existing Contract Owners as we deem appropriate. We may also close one or more Funds to additional Premium Payments or transfers from existing Funds. We may liquidate one or more Sub-Accounts if the board of directors of any Fund determines that such actions are prudent. Unless otherwise directed, investment instructions will be automatically updated to reflect the Fund surviving after any merger, substitution or liquidation. We may eliminate the shares of any of the Funds from the Contract for any reason and we may substitute shares of another registered investment company for the shares of any Fund already purchased or to be purchased in the future by the Separate Account. To the extent required by the 1940 Act, substitutions of shares attributable to your interest in a Fund will not be made until we have the approval of the SEC and we have notified you of the change. In the event of any substitution or change, we may, by appropriate endorsement, make any changes in the Contract necessary or appropriate to reflect the substitution or change. If we decide that it is in the best interest of the Contract Owners, the Separate Account may be operated as a management company under the 1940 Act or any other form permitted by law, may be de-registered under the 1940 Act in the event such registration is no longer required, or may be combined with one or more other Separate Accounts. FEES WE RECEIVE FROM FUNDS AND RELATED PARTIES -- We receive substantial and varying administrative service payments and Rule 12b-1 fees from certain Funds or related parties. These types of payments and fees are sometimes referred to as "revenue sharing" payments. We consider these payments and fees among a number of factors when deciding to add or keep a fund on the menu of Funds that we offer through the Contract. We collect these payments and fees under agreements between us and a Fund's principal underwriter, transfer agent, investment adviser and/or other entities related to the Fund. We expect to make a profit on these fees. The availability of these types of arrangements creates an incentive for us to seek and offer Funds (and classes of shares of such Funds) that pay us revenue sharing. Other funds (or available classes of shares) may have lower fees and better overall investment performance. As of December 31, 2007, we have entered into arrangements to receive administrative service payments and/or Rule 12b-1 fees from each of the following Fund complexes (or affiliated entities): AIM Advisors, Inc., AllianceBernstein Variable Products Series Funds & Alliance Bernstein Investments, American Variable Insurance Series & Capital Research and Management Company, Branch Banking & Trust Company, Evergreen Investment Services Inc., Fidelity Distributors Corporation, Fidelity Investments Institutional Operations Company, Fifth Third Bank Corporation, Franklin Templeton Services, LLC, The Huntington Funds, Lord Abbett Series Fund & Lord Abbett Distributor, LLC, MFS Fund Distributors, Inc. & Massachusetts Financial Services Company, Merrill Lynch Asset Management & Princeton Funds Distributor, Morgan Stanley Distribution, Inc. & Morgan Stanley Investment Management & The Universal Institutional Funds, MTB Investment Advisors, Inc., Banc of America Advisors, LLC, Banc One Investment Advisors Corporation, Oppenheimer Variable Account Funds & Oppenheimer Funds Distributor, Inc., Pioneer Variable Contracts Trust & Pioneer Investment Management, Inc. & Pioneer Funds Distributor, Inc., Prudential Investment Management Services, LLC, Putnam Retail Management Limited Partnership, SunTrust Securities, Inc. & Trusco Capital Management, Inc., UBS Financial Services, Inc., Van Kampen Life Investment Trust & Van Kampen Asset Management, Van Kampen Funds, The Victory Variable Insurance Funds & Victory Capital Management, Inc. & Victory Capital Advisers, Inc. and Wells Fargo Variable Trust & Wells Fargo Fund Management, LLC. We are affiliated with Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (collectively, the "HLS Funds") based on our affiliation with their investment advisers HL Investment Advisors, LLC and Hartford Investment Management Company. In addition to investment advisory fees, we, or our other insurance company affiliates, receive fees to provide, among other things, administrative, processing, accounting and shareholder services for the HLS Funds. Not all Fund complexes pay the same amounts of revenue sharing payments and/or Rule 12b-1 fees. Therefore, the amount of fees we collect may be greater or smaller based on the Funds you select. Revenue sharing and Rule 12b-1 fees did not exceed 0.50% and 0.25%, respectively, in 2007, and are not expected to exceed 0.50% and 0.35%, respectively, in 2008, of the annual percentage of the average daily net assets (for instance, in 2007, assuming that you invested in a Fund that paid us the maximum fees and you maintained a hypothetical average balance of $10,000, we would collect $75 from that Fund). We will endeavor to update this listing 10 ------------------------------------------------------------------------------- annually and interim arrangements may not be reflected. For the fiscal year ended December 31, 2007, revenue sharing and Rule 12b-1 fees did not exceed $162.2 million. These fees do not take into consideration indirect benefits received by offering HLS Funds as investment options. FIXED ACCUMULATION FEATURE THIS PORTION OF THE PROSPECTUS RELATING TO THE FIXED ACCUMULATION FEATURE IS NOT REGISTERED UNDER THE 1933 ACT AND THE FIXED ACCUMULATION FEATURE IS NOT REGISTERED AS AN INVESTMENT COMPANY UNDER THE 1940 ACT. THE FIXED ACCUMULATION FEATURE OR ANY OF ITS INTERESTS ARE NOT SUBJECT TO THE PROVISIONS OR RESTRICTIONS OF THE 1933 ACT OR THE 1940 ACT, AND THE STAFF OF THE SEC HAS NOT REVIEWED THE DISCLOSURE REGARDING THE FIXED ACCUMULATION FEATURE. THE FOLLOWING DISCLOSURE ABOUT THE FIXED ACCUMULATION FEATURE MAY BE SUBJECT TO CERTAIN GENERALLY APPLICABLE PROVISIONS OF THE FEDERAL SECURITIES LAWS REGARDING THE ACCURACY AND COMPLETENESS OF DISCLOSURES. THE FIXED ACCUMULATION FEATURE IS NOT OFFERED IN ALL CONTRACTS. Premium Payments and Contract Values allocated to the Fixed Accumulation Feature become a part of our General Account assets. We invest the assets of the General Account according to the laws governing the investments of insurance company General Accounts. Premium Payments and Contract Values allocated to the Fixed Accumulation Feature are available to our general creditors. We guarantee that we will credit interest to amounts you allocate to the Fixed Accumulation Feature at a rate that meets your State's minimum requirements. We may change the minimum guaranteed interest rate subject only to applicable State insurance law. We may credit interest at a rate in excess of the minimum guaranteed interest rate. We will periodically publish the Fixed Accumulation Feature interest rates currently in effect. There is no specific formula for determining interest rates. Some of the factors that we may consider in determining whether to credit excess interest are: general economic trends, rates of return currently available and anticipated on our investments, regulatory and tax requirements and competitive factors. We will account for any deductions, Surrenders or transfers from the Fixed Accumulation Feature on a "first-in first-out" basis. The Fixed Accumulation Feature interest rates may vary by State. ANY INTEREST CREDITED TO AMOUNTS YOU ALLOCATE TO THE FIXED ACCUMULATION FEATURE IN EXCESS OF THE MINIMUM GUARANTEED INTEREST RATE WILL BE DETERMINED AT OUR SOLE DISCRETION. YOU ASSUME THE RISK THAT INTEREST CREDITED TO THE FIXED ACCUMULATION FEATURE MAY NOT EXCEED THE MINIMUM GUARANTEED INTEREST RATE FOR ANY GIVEN YEAR. From time to time, we may credit increased interest rates under certain programs established in our sole discretion. We may restrict your ability to allocate Contract Values or Premium Payments to the Fixed Accumulation Feature at any time in our sole discretion. We may close the Fixed Accumulation Feature to new Premium Payments or transfers of existing Contract Value. We may also make the Fixed Accumulation Feature available only through enrollment in a program that we establish. 4. PERFORMANCE RELATED INFORMATION The Separate Account may advertise certain performance-related information concerning the Sub-Accounts. Performance information about a Sub-Account is based on the Sub-Account's past performance only and is no indication of future performance. When a Sub-Account advertises its standardized total return, it will usually be calculated from the date of either the Separate Account's inception or the Sub-Account's inception, whichever is later, for one year, five years, and ten years or some other relevant periods if the Sub-Account has not been in existence for at least ten years. Total return is measured by comparing the value of an investment in the Sub-Account at the beginning of the relevant period to the value of the investment at the end of the period. Total return calculations reflect a deduction for Total Annual Fund Operating Expenses, any Contingent Deferred Sales Charge (CDSC), and Separate Account Annual Expenses without any optional charge deductions, and the Annual Maintenance Fee. The Separate Account may also advertise non-standardized total returns that pre-date the inception of the Separate Account. These non-standardized total returns are calculated by assuming that the Sub-Accounts have been in existence for the same periods as the Funds and by taking deductions for charges equal to those currently assessed against the Sub-Accounts. Non-standardized total return calculations reflect a deduction for Total Annual Fund Operating Expenses and Separate Account Annual Expenses without any optional charge deductions, and do not include deduction for CDSC or the Annual Maintenance Fee. This means the non-standardized total return for a Sub-Account is higher than the standardized total return for a Sub-Account. These non-standardized returns must be accompanied by standardized returns. If applicable, the Sub-Accounts may advertise yield in addition to total return. This yield is based on the 30-day SEC yield of the Fund less the recurring charges at the Separate Account level. A money market Sub-Account may advertise yield and effective yield. The yield of a Sub-Account is based upon the income earned by the Sub-Account over a seven-day period and then annualized, i.e. the income earned in the period is assumed to be earned every 11 ------------------------------------------------------------------------------- seven days over a 52-week period and stated as a percentage of the investment. Effective yield is calculated similarly but when annualized, the income earned by the investment is compounded in the course of a 52-week period. Yield and effective yield include the recurring charges at the Separate Account level. We may provide information on various topics to Contract Owners and prospective Contract Owners in advertising, sales literature or other materials. These topics may include the relationship between sectors of the economy and the economy as a whole and its effect on various securities markets, investment strategies and techniques (such as systematic investing, Dollar Cost Averaging and asset allocation), the advantages and disadvantages of investing in tax-deferred and taxable instruments, customer profiles and hypothetical purchase scenarios, financial management and tax and retirement planning, and other investment alternatives, including comparisons between the Contract and the characteristics of and market for such alternatives. 5. THE CONTRACT A. PURCHASES AND CONTRACT VALUE WHO CAN BUY THIS CONTRACT? The Contract is an individual or group tax-deferred variable annuity Contract. It is designed for retirement planning purposes and may be purchased by any individual, group or trust, including: - Any trustee or custodian for a retirement plan qualified under Sections 401(a) or 403(a) of the Code; - Annuity purchase plans adopted by public school systems and certain tax-exempt organizations according to Section 403(b) of the Code; - Individual Retirement Annuities adopted according to Section 408 of the Code; - Employee pension plans established for employees by a state, a political subdivision of a state, or an agency of either a state or a political subdivision of a state; and - Certain eligible deferred compensation plans as defined in Section 457 of the Code. The examples above represent qualified Contracts, as defined by the Code. In addition, individuals and trusts can also purchase Contracts that are not part of a tax qualified retirement plan. These are known as non-qualified Contracts. If you are purchasing the Contract for use in an IRA or other qualified retirement plan, you should consider other features of the Contract besides tax deferral, since any investment vehicle used within an IRA or other qualified plan receives tax-deferred treatment under the Code. Refer to Appendix A for more information about the different forms of contracts we offer. Not all forms of contracts may be available through your Registered Representative or from each issuing company. HOW DO YOU PURCHASE A CONTRACT? You may only purchase a Contract through a Financial Intermediary. A Registered Representative will work with you to complete and submit an application or an order request form. Part of this process will include an assessment whether this variable annuity may be suitable for you. Prior to recommending the purchase or exchange of a deferred variable annuity, your Registered Representative shall make reasonable efforts to obtain certain information about you and your investment needs. This recommendation will be independently reviewed by a principal within your Financial Intermediary before an application or order will be sent to us. Your Premium Payment will not be invested in any Fund during this period. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, your Financial Intermediary will ask for your name, address, date of birth and other information that will allow us to identify you. They may also ask to see your driver's license or other identifying documents. Non-Resident Alien (NRA) application submissions require our prior approval. The minimum initial Premium Payment required to buy this Contract varies based on the type of purchaser, variable annuity variation chosen and whether you enroll in a systematic investment program such as the InvestEase(R) Program. See Appendix A for more information. Financial Intermediaries may impose other requirements regarding the form of payment they will accept. Premium Payments not actually received by us within the time period provided below will result in the rejection of your application or order request. Premium Payments sent to us must be made in U.S. dollars and checks must be drawn on U.S. banks. We do not accept cash, third party checks or double endorsed checks. We reserve the right to limit the number of checks processed at one time. If your check does not clear, your purchase will be cancelled and you could be liable for any losses or fees incurred. A check must clear our account through our Administrative Office to be considered to be in good order. 12 ------------------------------------------------------------------------------- Premium Payments may not exceed $1 million without our prior approval. We reserve the right to impose special conditions on anyone who seeks our approval to exceed this limit. You and your Annuitant must not be older than age 85 on the date that your Contract is issued. You must be of minimum legal age in the state where the Contract is being purchased or a guardian must act on your behalf. Optional riders are subject to additional maximum issue age restrictions. CAN YOU CANCEL YOUR CONTRACT AFTER YOU PURCHASE IT? If for any reason you are not satisfied with your Contract, simply return it within ten days after you receive it with a written request for cancellation that indicates your tax-withholding instructions. In some states, you may be allowed more time to cancel your Contract. We may require additional information, including a signature guarantee, before we can cancel your Contract. Unless otherwise required by state law, we will pay you your Contract Value as of the Valuation Day we receive your request to cancel and will refund any sales or Contract charges incurred during the period you owned the Contract. The Contract Value may be more or less than your Premium Payments depending upon the investment performance of your Account. This means that you bear the risk of any decline in your Contract Value until we receive your notice of cancellation. In certain states, however, we are required to return your Premium Payment without deduction for any fees or charges. HOW ARE PREMIUM PAYMENTS APPLIED TO YOUR CONTRACT? Your initial Premium Payment will usually be invested within two Valuation Days of our actual receipt in-hand at our Administrative Office of both a properly completed application or order request and the Premium Payment; both being in good order. If we receive your subsequent Premium Payment before the end of a Valuation Day, it will be invested on the same Valuation Day. If we receive your subsequent Premium Payment after the end of a Valuation Day, it will be invested on the next Valuation Day. If we receive your subsequent Premium Payment on a non-Valuation Day, the amount will be invested on the next Valuation Day. Unless we receive new instructions, we will invest all Premium Payments based on your last instructions on record. We will send you a confirmation when we invest your Premium Payments. If the request or other information accompanying the initial Premium Payment is incomplete or not in good order when received, we will hold the money in a non-interest bearing account for up to five Valuation Days (from the Valuation Day that we actually receive your initial Premium Payment at our Administrative Office) while we try to obtain complete information. If we cannot obtain the information within five Valuation Days, we will either return the Premium Payment and explain why the Premium Payment could not be processed or keep the Premium Payment if you authorize us to keep it until you provide the necessary information. Generally, we will receive your application or order request (whether for an initial purchase or a subsequent investment) after your Financial Intermediary has completed a suitability review. We will then consider if your investment is in good order. The suitability and good order process can take up to 17 Business Days from when you leave your Premium with your Registered Representative. During this period, Premium Payments will not be applied to your Contract. You will not earn any interest on Premium Payments even if your Premium Payments have been sent to us or deposited into our bank account. We are not responsible for market losses, gains or lost investment opportunities incurred during this review period or if your Financial Intermediary asks us to unwind a transaction based on their review of your Registered Representative's recommendations. Your Financial Institution, and we, may directly or indirectly earn income on your Premium Payments. These circumstances represent a conflict of interest. For more information, contact your Registered Representative. Special Rules Applicable To Premium Payments Directly Deposited into Our Bank Account The following terms and conditions apply when Premium Payments are directly deposited into our approved bank account with JPMorgan Chase & Co. or its affiliates ("account"): - Premium Payments deposited into the account within approximately 15 minutes of the close of trading on the New York Stock Exchange will generally not be considered to be in good order. - Premium Payments will not be credited to your contract until posted to our account and we can actually identify your contract number and all other information needed to confirm that your investment is in good order. - You will not earn any interest on your funds until they are actually invested in your contract. We are not responsible for losses, gains or lost investment opportunities due to market fluctuations during this time period. - Your Financial Intermediary (including affiliates) and we may directly or indirectly earn income or other benefits from sums held in the account. HOW IS THE VALUE OF YOUR CONTRACT CALCULATED BEFORE THE ANNUITY COMMENCEMENT DATE? The Contract Value is the sum of the value of the Fixed Accumulation Feature, if applicable, and all Funds. There are two things that affect your Contract Value: (1) the number of Accumulation Units, and (2) the Accumulation Unit Value. Contract Value is 13 ------------------------------------------------------------------------------- determined by multiplying the number of Accumulation Units by the Accumulation Unit Value. On any Valuation Day the investment performance of the Sub-Accounts will fluctuate with the performance of the Funds. When Premium Payments are credited to your Account, they are converted into Accumulation Units by dividing the amount of your Premium Payments, minus any Premium Taxes, by the Accumulation Unit Value for that day. The more Premium Payments you make to your Contract, the more Accumulation Units you will own. You decrease the number of Accumulation Units you have by requesting partial or full Surrenders, settling a Death Benefit claim or by annuitizing your Contract. To determine the current Accumulation Unit Value, we take the prior Valuation Day's Accumulation Unit Value and multiply it by the Net Investment Factor for the current Valuation Day. The Net Investment Factor is used to measure the investment performance of a Sub-Account from one Valuation Day to the next. The Net Investment Factor for each Sub-Account equals: - The net asset value per share plus applicable distributions per share of each Fund at the end of the current Valuation Day; reduced by - The net asset value per share of each Fund at the end of the prior Valuation Day; reduced by - Contract charges including the deductions for the mortality and expense risk charge and any other periodic expenses, including charges for optional benefits, divided by the number of days in the year multiplied by the number of days in the Valuation period. We will send you a statement at least annually. WHAT OTHER WAYS CAN YOU INVEST? You may enroll in the following features (sometimes called a "Program") for no additional fee. Not all Programs are available with all Contract variations. INVESTEASE This electronic funds transfer feature allows you to have money automatically transferred from your checking or savings account and deposited into your Contract on a monthly or quarterly basis. It can be changed or discontinued at any time. The minimum amount for each transfer is $50. You can elect to have transfers made into any available Fund. You can not use this Program to invest in the DCA Plus Programs. STATIC ASSET ALLOCATION MODELS This feature allows you to select an asset allocation model of Funds based on several potential factors including your risk tolerance, time horizon, investment objectives, or your preference to invest in certain funds or fund families. Based on these factors, you can select one of several asset allocation models, with each specifying percentage allocations among various Funds available under your Contract. Asset allocation models can be based on generally accepted investment theories that take into account the historic returns of different asset classes (e.g., equities, bonds or cash) over different time periods, or can be based on certain potential investment strategies that could possibly be achieved by investing in particular funds or fund families and are not based on such investment theories. If you choose to participate in one of these asset allocation models, you must invest all of your Premium Payment into one model. You may invest in an asset allocation model through the Dollar Cost Averaging Program where the Fixed Accumulation Feature, a Money Market sub-account, or a Dollar Cost Averaging Plus Program is the source of the assets to be invested in the asset allocation model you have chosen. You can also participate in these asset allocation models while enrolled in the Automatic Income Program. You may participate in only one asset allocation model at a time. Asset allocation models cannot be combined with other asset allocation models or with individual sub-account elections. You can switch asset allocation models up to twelve times per year. Your ability to elect or switch into and between asset allocation models may be restricted based on fund abusive trading restrictions. You may be required to invest in an acceptable asset allocation model as a condition for electing and maintaining certain guaranteed minimum withdrawal benefits. Your investments in an asset allocation model will be rebalanced quarterly to reflect the model's original percentages. We have no discretionary authority or control over your investment decisions. These asset allocation models are based on then available Funds and do not include the Fixed Accumulation Feature. We make available educational information and materials (e.g., risk tolerance questionnaire, pie charts, graphs, or case studies) that can help you select an asset allocation model, but we do not recommend asset allocation models or otherwise provide advice as to what asset allocation model may be appropriate for you. 14 ------------------------------------------------------------------------------- While we will not alter allocation percentages used in any asset allocation model, allocation weightings could be affected by mergers, liquidations, fund substitutions or closures. Individual availability of these models is subject to fund company restrictions. Please refer to WHAT RESTRICTIONS ARE THERE ON YOUR ABILITY TO MAKE A SUB-ACCOUNT TRANSFER? for more information. You will not be provided with information regarding periodic updates to the Funds and allocation percentages in the asset allocation models, and we will not reallocate your Account Value based on those updates. Information on updated asset allocation models may be obtained by contacting your Registered Representative. Investment alternatives other than these asset allocation models are available that may enable you to invest your Contract Value with similar risk and return characteristics. When considering an asset allocation model for your individual situation, you should consider your other assets, income and investments in addition to this annuity. - Asset Rebalancing In asset rebalancing, you select a portfolio of Funds, and we will rebalance your assets at the specified frequency to reflect the original allocation percentages you selected. You can choose how much of your Contract Value you want to invest in this program. You can also combine this program with others such as the Automatic Income Program and Dollar Cost Averaging Program (subject to restrictions). You may designate only one set of asset allocation instructions at a time. - Dollar Cost Averaging We offer three dollar cost averaging programs: - DCA Plus - Fixed Amount DCA - Earnings/Interest DCA DCA Plus -- These programs allow you to earn a fixed rate of interest on investments. These programs are different from the Fixed Accumulation Feature. We determine, in our sole discretion, the interest rates to be credited. These interest rates may vary depending on the Contract you purchased. Please consult your Registered Representative to determine the interest rate for your Program. You may elect to lock in a rate of interest using either the "12-Month Transfer Program" or the "6-Month Transfer Program". - Under the 12-Month Transfer Program, new Premium Payments will be credited with an interest rate that will not change for 12 months. You must then transfer these investments into available Funds (and not the Fixed Accumulation Feature) during this 12 month period. You must elect to make not less than 7 nor more than 12 transfers to fully deplete sums invested in this Program. - Under the 6-Month Transfer Program, new Premium Payments will be credited with an interest rate that will not change for 6 months. You must then transfer these investments into available Funds (and not the Fixed Accumulation Feature) during this 6 month period. You must make not less than 3 nor more than 6 transfers at any frequency you chose to fully deplete sums invested in this Program. - Each time you make a subsequent Premium Payment, you can invest in a different rate lock program. Any subsequent investments made in a month (or other interest rate effective period) other than your last program investment are considered a separate rate lock program investment. You can invest in up to 5 different rate lock programs at one time. - You must invest at least $5,000 in each rate lock program ($2,000 for qualified plan transfers or rollovers, including IRAs). We may pre- authorize transfers from our Fixed Accumulation Feature subject to restrictions. This minimum amount applies to the initial and all subsequent Premium Payments in a given rate lock program. - Pre-authorized transfers will begin within 15 days of receipt of the Program payment provided we receive complete enrollment instructions in good order. - If a DCA Plus payment is received without enrollment instructions and a DCA Plus program is active on the contract, we will set up the new Program to mirror the existing one. If a DCA Plus payment is received without enrollment instructions and a DCA Plus program is not active on the contract, but is the future investment allocation and a Static Model Portfolio Plan is active on the contract, we will set up the new Program to move funds to the Static Model Portfolio Plan. Otherwise, we will contact your investment professional to obtain complete instructions. If we do not receive in good order enrollment instructions within the 15 day timeframe noted above, we will refund the Program payment for further instruction. - If your Program payment is less than the required minimum amount, we will invest into the destination funds indicated on the Program instructions accompanying the payment. If Program instructions were not provided and a DCA Plus Program is active on the contract, we will apply the payment to the destination funds of the current DCA Plus program. Otherwise, we will contact your investment professional to obtain further investment instructions. - The credited interest rate used under the DCA Plus Programs is not earned on the full amount of your Premium Payment for the entire length of the Program because Program transfers to Funds decrease the amount of your Premium Payment remaining in the Program. 15 ------------------------------------------------------------------------------- - You may elect to terminate your involvement in this Program at any time. Upon cancellation, all the amounts remaining in the Program will be immediately transferred to the Funds you designated. Fixed Amount DCA -- This feature allows you to regularly transfer (monthly or quarterly) a fixed amount from the Fixed Accumulation Feature (if available based on the form of Contract selected) or any Fund into a different Fund. This program begins in 15 days unless you instruct us otherwise. You must make at least three transfers in order to remain in this program. Earnings/Interest DCA -- This feature allows you to regularly transfer (monthly or quarterly) the interest earned from your investment in the Fixed Accumulation Feature (if available based on the form of Contract selected) or any Fund into another Fund. This program begins two business days plus the frequency selected unless you instruct us otherwise. You must make at least three transfers in order to remain in this program. AUTOMATIC INCOME PROGRAM This systematic withdrawal feature allows you to make partial Surrenders up to 10% of your total Premium Payments each Contract Year without a Contingent Deferred Sales Charge. You can designate the Funds to be surrendered from and also choose the frequency of partial Surrenders (monthly, quarterly, semiannual, or annually). The minimum amount of each Surrender is $100. Amounts taken under this program will count towards the Annual Withdrawal Amount, and if received prior to age 59 1/2, may have adverse tax consequences, including a 10% federal income tax penalty on the taxable portion of the Surrender payment. You may satisfy Code Section 72(t)/(q) requirements by enrolling in this program. Your level of participation in this program may result in your exceeding permissible withdrawal limits under certain optional withdrawal riders. OTHER PROGRAM CONSIDERATIONS - You may terminate your enrollment in any Program at any time. - We may discontinue, modify or amend any of these Programs at any time. We will automatically and unilaterally amend your enrollment instructions if: - any Fund is merged or substituted into another Fund -- then your allocations will be directed to the surviving Fund; or - any Fund is liquidated -- then your allocations will be directed to any available money market Fund. You may always provide us with updated instructions following any of these events. - Continuous or periodic investment neither insures a profit nor protects against a loss in declining markets. Because these Programs involve continuous investing regardless of fluctuating price levels, you should carefully consider your ability to continue investing through periods of fluctuating prices. - We make available educational information and materials (e.g., pie charts, graphs, or case studies) that can help you select a model portfolio, but we do not recommend models or otherwise provide advice as to what model portfolio may be appropriate for you. Asset allocation does not guarantee that your Contract Value will increase nor will it protect against a decline if market prices fall. If you choose to participate in an asset allocation program, you are responsible for determining which model portfolio is best for you. Tools used to assess your risk tolerance may not be accurate and could be useless if your circumstances change over time. Although each model portfolio is intended to maximize returns given various levels of risk tolerance, a model portfolio may not perform as intended. Market, asset class or allocation option class performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause a model portfolio to be ineffective or less effective in reducing volatility. A model portfolio may perform better or worse than any single Fund, allocation option or any other combination of Funds or allocation options. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing and periodic updating of model portfolios can cause their component Funds to incur transactional expenses to raise cash for money flowing out of Funds or to buy securities with money flowing into the Funds. Moreover, large outflows of money from the Funds may increase the expenses attributable to the assets remaining in the Funds. These expenses can adversely affect the performance of the relevant Funds and of the model portfolios. In addition, these inflows and outflows may cause a Fund to hold a large portion of its assets in cash, which could detract from the achievement of the Fund's investment objective, particularly in periods of rising market prices. For additional information regarding the risks of investing in a particular fund, see that Fund's prospectus. - Additional considerations apply for qualified Contracts with respect to Static Asset Allocation Model programs. Neither we, nor any third party service provider, nor any of their respective affiliates, is acting as a fiduciary under The Employee Retirement Income Security Act of 1974, as amended (ERISA) or the Code, in providing any information or other communication contemplated by any Program, including, without limitation, any model portfolios. That information and communications are not intended, and may not serve as a primary basis for your investment decisions with respect to your participation in a Program. Before choosing to participate in a Program, you must determine that you are capable of exercising control and management of the assets of the plan and of making an independent and informed decision concerning your participation in the Program. Also, you are solely responsible for determining whether and to what extent the Program is appropriate for you and the assets contained in the qualified Contract. Qualified Contracts are subject to additional rules regarding participation in these Programs. It is your responsibility to ensure compliance of any recommendation in connection with any model portfolio with governing plan documents. 16 ------------------------------------------------------------------------------- - If you make systematic transfers from the Fixed Accumulation Feature under a Dollar Cost Averaging Program or DCA Plus Program, you must wait 6 months after your last systematic transfer before moving Sub-Account Values back to the Fixed Accumulation Feature. - These Programs may be adversely affected by Fund trading policies. CAN YOU TRANSFER FROM ONE FUND TO ANOTHER? During those phases of your Contract when transfers are permissible, you may make transfers between Funds according to the following policies and procedures, as they may be amended from time to time. In addition, many of the Funds that are available as investment options in our variable annuity products are also available as investment options in variable life insurance policies, retirement plans, funding agreements and other products offered by us or our affiliates. Each day, investors and participants in these other products engage in similar transfer transactions. We take advantage of our size and available technology to combine sales of a particular Fund for many of the variable annuities, variable life insurance policies, retirement plans, funding agreements or other products offered by us or our affiliates. We also combine many of the purchases of that particular Fund for many of the products we offer. We then "net" these trades by offsetting purchases against redemptions. Netting trades has no impact on the net asset value of the Fund shares that you purchase or sell. Netting trades has no impact on the net asset value of the Fund shares that you purchase or sell. This means that we sometimes reallocate shares of a Fund rather than buy new shares or sell shares of the Fund. For example, if we combine all transfer-out (redemption) requests and Surrenders of a stock Fund Sub-Account with all other sales of that Fund from all our other products, we may have to sell $1 million dollars of that Fund on any particular day. However, if other Contract Owners and the owners of other products offered by us want to transfer-in (purchase) an amount equal to $300,000 of that same Fund, then we would send a sell order to the Fund for $700,000 (a $1 million sell order minus the purchase order of $300,000) rather than making two or more transactions. WHAT RESTRICTIONS ARE THERE ON YOUR ABILITY TO MAKE A SUB-ACCOUNT TRANSFER? FIRST, YOU MAY MAKE ONLY ONE SUB-ACCOUNT TRANSFER REQUEST EACH DAY. We limit each Contract Owner to one Sub-Account transfer request each Valuation Day. We count all Sub-Account transfer activity that occurs on any one Valuation Day as one "Sub-Account transfer", however, you cannot transfer the same Contract Value more than once a Valuation Day. EXAMPLES
TRANSFER REQUEST PER VALUATION DAY PERMISSIBLE? -------------------------------------------------------------------------------- Transfer $10,000 from a money market Sub-Account to a growth Yes Sub-Account Transfer $10,000 from a money market Sub-Account to any Yes number of other Sub-Accounts (dividing the $10,000 among the other Sub-Accounts however you chose) Transfer $10,000 from any number of different Sub-Accounts Yes to any number of other Sub-Accounts Transfer $10,000 from a money market Sub-Account to a growth No Sub-Account and then, before the end of that same Valuation Day, transfer the same $10,000 from the growth Sub-Account to an international Sub-Account
SECOND, YOU ARE ALLOWED TO SUBMIT A TOTAL OF 20 SUB-ACCOUNT TRANSFERS EACH CONTRACT YEAR (the "Transfer Rule") by U.S. Mail, Voice Response Unit, Internet or telephone. Once you have reached the maximum number of Sub-Account transfers, you may only submit any additional Sub-Account transfer requests and any trade cancellation requests in writing through U.S. Mail or overnight delivery service. In other words, Voice Response Unit, Internet or telephone transfer requests will not be honored. We may, but are not obligated to, notify you when you are in jeopardy of approaching these limits. For example, we will send you a letter after your 10th Sub-Account transfer to remind you about the Transfer Rule. After your 20th transfer request, our computer system will not allow you to do another Sub-Account transfer by telephone, Voice Response Unit or via the Internet. You will then be instructed to send your Sub-Account transfer request by U.S. Mail or overnight delivery service. We reserve the right to aggregate your Contracts (whether currently existing or those recently surrendered) for the purposes of enforcing these restrictions. The Transfer Rule does not apply to Sub-Account transfers that occur automatically as part of a Company sponsored asset allocation or Dollar Cost Averaging program. Reallocations made based on a Fund merger, substitution, or liquidation also do not count toward this transfer limit. Restrictions may vary based on state law. We make no assurances that the Transfer Rule is or will be effective in detecting or preventing market timing. THIRD, POLICIES HAVE BEEN DESIGNED TO RESTRICT EXCESSIVE SUB-ACCOUNT TRANSFERS. You should not purchase this Contract if you want to make frequent Sub-Account transfers for any reason. In particular, don't purchase this Contract if you plan to engage in "market timing," which includes frequent transfer activity into and out of the same Fund, or frequent Sub-Account transfers in order to exploit any inefficiencies in the pricing of a Fund. Even if you do not engage in market timing, certain restrictions may be imposed. 17 ------------------------------------------------------------------------------- FUND TRADING POLICIES You are subject to Fund trading policies, if any. We are obligated to provide, at the Fund's request, tax identification numbers and other shareholder identifying information contained in our records to assist Funds in identifying any pattern or frequency of Sub-Account transfers that may violate their trading policy. In certain instances, we have agreed to serve as a Fund's agent to help monitor compliance with that Fund's trading policy. We are obligated to follow each Fund's instructions regarding enforcement of their trading policy. Penalties for violating these policies may include, among other things, temporarily or permanently limiting or banning you from making Sub-Account transfers into a Fund or other funds within that fund complex. We are not authorized to grant exceptions to a Fund's trading policy. Please refer to each Fund's prospectus for more information. Fund abusive trading policies do not apply or may be limited. For instance: - Certain types of financial intermediaries may not be required to provide us with shareholder information. - "Excepted funds" such as money market funds and any Fund that affirmatively permits short-term trading of its securities may opt not to adopt this type of policy. This type of policy may not apply to any financial intermediary that a Fund treats as a single investor. - A Fund can decide to exempt categories of contract holders whose contracts are subject to inconsistent trading restrictions or none at all. - Non-shareholder initiated purchases or redemptions may not always be monitored. These include Sub-Account transfers that are executed: (i) automatically pursuant to a company sponsored contractual or systematic program such as transfers of assets as a result of "dollar cost averaging" programs, asset allocation programs, automatic rebalancing programs, annuity payouts, loans, or systematic withdrawal programs; (ii) as a result of the payment of a Death Benefit; (iii) as a step-up in Contract Value pursuant to a Contract Death Benefit or guaranteed minimum withdrawal benefit; (iv) as a result of any deduction of charges or fees under a Contract; or (v) as a result of payments such as loan repayments, scheduled contributions, scheduled withdrawals or surrenders, retirement plan salary reduction contributions, or planned premium payments. POSSIBILITY OF UNDETECTED ABUSIVE TRADING OR MARKET TIMING. We may not be able to detect or prevent all abusive trading or market timing activities. For instance, - Since we net all the purchases and redemptions for a particular Fund for this and many of our other products, transfers by any specific market timer could be inadvertently overlooked. - Certain forms of variable annuities and types of Funds may be attractive to market timers. We can not provide assurances that we will be capable of addressing possible abuses in a timely manner. - These policies apply only to individuals and entities that own this Contract or have the right to make transfers (regardless of whether requests are made by you or anyone else acting on your behalf). However, the Funds that make up the Sub-Accounts of this Contract are also available for use with many different variable life insurance policies, variable annuity products and funding agreements, and are offered directly to certain qualified retirement plans. Some of these products and plans may have less restrictive transfer rules or no transfer restrictions at all. HOW ARE YOU AFFECTED BY FREQUENT SUB-ACCOUNT TRANSFERS? We are not responsible for losses or lost investment opportunities associated with the effectuation of these policies. Frequent Sub-Account transfers may result in the dilution of the value of the outstanding securities issued by a Fund as a result of increased transaction costs and lost investment opportunities typically associated with maintaining greater cash positions. This can adversely impact Fund performance and, as a result, the performance of your Contract. This may also lower the Death Benefit paid to your Beneficiary or lower Annuity Payouts for your Payee as well as reduce value of other optional benefits available under your Contract. Separate Account investors could be prevented from purchasing Fund shares if we reach an impasse on the execution of a Fund's trading instructions. In other words, a Fund complex could refuse to allow new purchases of shares by all our variable product investors if the Fund and we can not reach a mutually acceptable agreement on how to treat an investor who, in a Fund's opinion, has violated the Fund's trading policy. In some cases, we do not have the tax identification number or other identifying information requested by a Fund in our records. In those cases, we rely on the Contract Owner to provide the information. If the Contract Owner does not provide the information, we may be directed by the Fund to restrict the Contract Owner from further purchases of Fund shares. In those cases, all participants under a plan funded by the Contract will also be precluded from further purchases of Fund shares. 18 ------------------------------------------------------------------------------- FIXED ACCUMULATION FEATURE TRANSFERS -- If applicable, during each Contract Year, you may make transfers out of the Fixed Accumulation Feature to the Sub-Accounts, subject to the transfer restrictions discussed below. All transfer allocations must be in whole numbers (e.g., 1%). Each Contract Year you may transfer the greater of: - 30% of the greatest Contract Value in the Fixed Accumulation Feature as of any Contract Anniversary or Contract issue date. When we calculate the 30%, we add Premium Payments made after that date but before the next Contract Anniversary. The 30% does not include Contract Value in any DCA Plus Program; or - An amount equal to your largest previous transfer from the Fixed Accumulation Feature in any one Contract Year. We apply these restrictions to all transfers from the Fixed Accumulation Feature, including all systematic transfers and Dollar Cost Averaging Programs, except for transfers under our DCA Plus Program. If your interest rate renews at a rate at least 1% lower than your prior interest rate, you may transfer any amount up to 100% of the amount to be invested at the renewal rate. You must make this transfer request within 60 days of being notified of the renewal rate. We may defer transfers and Surrenders from the Fixed Accumulation Feature for up to 6 months from the date of your request. You must wait 6 months after your most recent transfer from the Fixed Accumulation Feature before moving Sub-Account Values back to the Fixed Accumulation Feature. If you make systematic transfers from the Fixed Accumulation Feature under a Dollar Cost Averaging Program or DCA Plus Program, you must wait 6 months after your last systematic transfer before moving Sub-Account Values back to the Fixed Accumulation Feature. As a result of these limitations, it may take a significant amount of time (i.e., several years) to move Contract Values in the Fixed Accumulation Feature to Sub-Accounts and therefore this may not provide an effective short term defensive strategy. TELEPHONE AND INTERNET TRANSFERS -- Transfer instructions received by telephone before the end of any Valuation Day will be carried out at the end of that day. Otherwise, the instructions will be carried out at the end of the next Valuation Day. Transfer instructions you send electronically are considered to be received by us at the time and date stated on the electronic acknowledgement we return to you. If the time and date indicated on the acknowledgement is before the end of any Valuation Day, the instructions will be carried out at the end of that Valuation Day. Otherwise, the instructions will be carried out at the end of the next Valuation Day. If you do not receive an electronic acknowledgement, you should contact us as soon as possible. We will send you a confirmation when we process your transfer. You are responsible for verifying transfer confirmations and promptly reporting any inaccuracy or discrepancy to us and your Registered Representative. Any oral communication should be re-confirmed in writing. Telephone or Internet transfer requests may currently only be cancelled by calling us before the end of the Valuation Day you made the transfer request. We, our agents or our affiliates are NOT responsible for losses resulting from telephone or electronic requests that we believe are genuine. We will use reasonable procedures to confirm that instructions received by telephone or through our website are genuine, including a requirement that Contract Owners provide certain identification information, including a personal identification number. We record all telephone transfer instructions. We may suspend, modify, or terminate telephone or electronic transfer privileges at any time. POWER OF ATTORNEY -- You may authorize another person or your Registered Representative to make transfers on your behalf by submitting a completed power of attorney form. Once we have the completed form on file, we will accept transfer instructions, subject to our transfer restrictions, from your designated third party until we receive new instructions in writing from you. You will not be able to make transfers or other changes to your Contract if you have authorized someone else to act under a power of attorney. B. CHARGES AND FEES MORTALITY AND EXPENSE RISK CHARGE We deduct a daily charge for assuming mortality and expense risks under the Contract. This charge is deducted from your Sub-Account Value. The mortality and expense risk charge is broken into charges for mortality risks and for an expense risk: - Mortality Risk -- There are two types of mortality risks that we assume, those made while your Premium Payments are accumulating and those made once Annuity Payouts have begun. During the accumulation phase of your Contract, we are required to cover any difference between the Death Benefit paid and the Surrender Value. These differences may occur in periods of declining value or in periods where the CDSCs would have been applicable. The risk that we bear during this period is that actual mortality rates, in aggregate, may exceed expected mortality rates. Once Annuity Payouts have begun, we may be required to make Annuity Payouts as long as the Annuitant is living, regardless of how long the Annuitant lives. The risk that we bear during this period is that the actual mortality rates, in aggregate, may be lower than the expected mortality rates. 19 ------------------------------------------------------------------------------- - Expense Risk -- We also bear an expense risk that the CDSCs, if applicable, and the Annual Maintenance Fee collected before the Annuity Commencement Date may not be enough to cover the actual cost of selling, distributing and administering the Contract. Although variable Annuity Payouts will fluctuate with the performance of the Fund selected, your Annuity Payouts will NOT be affected by (a) the actual mortality experience of our Annuitants, or (b) our actual expenses if they are greater than the deductions stated in the Contract. Because we cannot be certain how long our Annuitants will live, we charge this percentage fee based on the mortality tables currently in use. The mortality and expense risk charge enables us to keep our commitments and to pay you as planned. If the mortality and expense risk charge under a Contract is insufficient to cover our actual costs, we will bear the loss. If the mortality and expense risk charge exceeds these costs, we keep the excess as profit. We may use these profits, as well as revenue sharing and Rule 12b-1 fees received from certain Funds, for any proper corporate purpose including, among other things, payment of sales expenses, including the fees paid to distributors. We expect to make a profit from the mortality and expense risk charge. ANNUAL MAINTENANCE FEE The Annual Maintenance Fee is a flat fee that is deducted from your Contract Value to reimburse us for expenses relating to the administrative maintenance of the Contract and your Account. The annual charge is deducted on a Contract Anniversary or when the Contract is fully Surrendered if the Contract Value at either of those times is less than $50,000. The charge is deducted proportionately from each Sub-Account in which you are invested. We will waive the Annual Maintenance Fee if your Contract Value is $50,000 or more on your Contract Anniversary or when you fully Surrender your Contract. In addition, we will waive one Annual Maintenance Fee for Contract Owners who own more than one Contract with a combined Contract Value between $50,000 and $100,000. If you have multiple Contracts with a combined Contract Value of $100,000 or greater, we will waive the Annual Maintenance Fee on all Contracts. However, we may limit the number of waivers to a total of six Contracts. We also may waive the Annual Maintenance Fee under certain other conditions. We do not include contracts from our Putnam Hartford line of variable annuity contracts with the Contracts when we combine Contract Value for purposes of this waiver. ADMINISTRATIVE CHARGE We apply a daily administration charge against all Contract Values held in the Separate Account during both the accumulation and annuity phases of the Contract. There is not necessarily a relationship between the amount of administrative charge imposed on a given Contract and the amount of expenses that may be attributable to that Contract; expenses may be more or less than the charge. This charge compensates us for administrative expenses that exceed revenues from the Annual Maintenance Fee described above. PREMIUM TAXES We deduct premium taxes, if required, by a state or other government agency. Some states collect these taxes when Premium Payments are made; others collect at Annuitization. Since we pay premium taxes when they are required by applicable law, we may deduct them from your Contract when we pay the taxes, upon Surrender, or on the Annuity Commencement Date. The premium tax rate varies by state or municipality and currently ranges from 0% - 3.5%. SALES CHARGES We offer three contract variations that have a CDSC (these forms of contract are called "Outlook", "Plus" and our base contract (which does not have a separate marketing name but is sometimes referred to in this prospectus as the "Core" version)), one contract version has a front end sales charge (called "Edge") and one contract version has no sales charge (called "Access"). These types of charges (and any available reductions or waivers) are described in Section 2. CHARGES AGAINST THE FUNDS Annual Fund Operating Expenses -- The Separate Account purchases shares of the Funds at net asset value. The net asset value of the Fund reflects investment advisory fees, distribution fees, operating expenses and administrative expenses already deducted from the assets of the Funds. These charges are described in the Funds' prospectuses. REDUCED FEES AND CHARGES We may offer, in our discretion, reduced fees and charges including, but not limited to, CDSCs, the Mortality and Expense Risk Charge, the Annual Maintenance Fee, and charges for optional benefits, for certain Contracts (including employer sponsored savings plans) which may result in decreased costs and expenses. Reductions in these fees and charges will not be unfairly discriminatory against any Contract Owner. Please see "Synopsis" for a description of charges and fees. C. SURRENDERS WHAT KINDS OF SURRENDERS ARE AVAILABLE? BEFORE THE ANNUITY COMMENCEMENT DATE: Full Surrenders -- When you Surrender your Contract before the Annuity Commencement Date, the Surrender Value of the Contract will be made in a lump sum payment. The Surrender Value is the Contract Value minus any applicable Premium Taxes, CDSCs, 20 ------------------------------------------------------------------------------- a pro-rated portion of optional benefit charges, if applicable and the Annual Maintenance Fee. The Surrender Value may be more or less than the amount of the Premium Payments made to a Contract. Partial Surrenders -- You may request a partial Surrender of Contract Values at any time before the Annuity Commencement Date. We will deduct any applicable CDSC. You can ask us to deduct the CDSC from the amount you are Surrendering or from your remaining Contract Value. If we deduct the CDSC from your remaining Contract Value, that amount will also be subject to CDSC. This is our default option. Both full and partial Surrenders are taken proportionally out of the Sub-Accounts and the Fixed Accumulation Feature unless prohibited by your state. Please see section 8 (State Variations) for additional details. There are several restrictions on partial Surrenders before the Annuity Commencement Date: - The partial Surrender amount must be at least equal to $100, our current minimum for partial Surrenders, and - After a Surrender, your Contract Value must be equal to or greater than our then current minimum Contract Value that we establish according to our current policies and procedures. We may change the minimum Contract Value in our sole discretion, with notice to you. We will close your Contract and pay the full Surrender Value if the Contract Value is under the minimum after a Surrender. Your resulting standard Death Benefit will be reduced proportionately if you Surrender the majority of your Contract Value. See sections 6 and 7 for information regarding the impact of Surrenders to optional benefits. AFTER THE ANNUITY COMMENCEMENT DATE: Full Surrenders -- You may Surrender your Contract on or after the Annuity Commencement Date only if you selected the Payment for a Period Certain Annuity Payout Option. Under this option, we pay you the Commuted Value of your Contract minus any applicable CDSCs. The Commuted Value is determined on the day we receive your written request for Surrender. Partial Surrenders -- Partial Surrenders are permitted after the Annuity Commencement Date if you select the Life Annuity With Payments for a Period Certain, Joint and Last Survivor Life Annuity With Payments for a Period Certain or the Payment for a Period Certain Annuity Payout Options. You may take partial Surrenders of amounts equal to the Commuted Value of the payments that we would have made during the "Period Certain" for the number of years you select under the Annuity Payout Option that we guarantee to make Annuity Payouts. Both full and partial Surrenders are taken proportionally out of the Sub-Accounts and the Fixed Accumulation Feature unless prohibited by your state. Please see section 8 (State Variations) for additional details. To qualify for partial Surrenders under these Annuity Payout Options you must make the Surrender request during the Period Certain. We will deduct any applicable CDSCs. If you elect to take the entire Commuted Value of the Annuity Payouts we would have made during the Period Certain, we will not make any Annuity Payouts during the remaining Period Certain. If you elect to take only some of the Commuted Value of the Annuity Payouts we would have made during the Period Certain, we will reduce the remaining Annuity Payouts during the remaining Period Certain. Annuity Payouts that are to be made after the Period Certain is over will not change. These options may not be available if the Contract is issued to qualify under Code Sections 401, 403, 408, or 457. For such Contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. Please check with your qualified tax adviser because there could be adverse tax consequences for partial Surrenders after the Annuity Commencement Date. 21 ------------------------------------------------------------------------------- HOW DO YOU REQUEST A SURRENDER? Requests for full Surrenders must be in writing. Requests for partial Surrenders can be made in writing or by telephone or on the Internet. We will send your money within seven days of receiving complete instructions. However, we may postpone payment of Surrenders whenever: (a) the New York Stock Exchange is closed, (b) trading on the New York Stock Exchange is restricted by the SEC, (c) the SEC permits and orders postponement or (d) the SEC determines that an emergency exists to restrict valuation. Written Requests -- To request a full or partial Surrender, complete a Surrender Form or send us a letter, signed by you, stating: - the dollar amount that you want to receive, either before or after we withhold taxes and deduct for any applicable charges, - your tax withholding amount or percentage, if any, and - your mailing address. If there are joint Contract Owners, both must authorize all Surrenders. For a partial Surrender, specify the Sub-Accounts that you want your Surrender to come from; otherwise, the Surrender will be taken in proportion to the value in each Sub-Account. Telephone Requests -- To request a partial Surrender by telephone, we must have received your completed Telephone Redemption Program Enrollment Form. If there are joint Contract Owners, both must sign this form. By signing the form, you authorize us to accept telephone instructions for partial Surrenders from either Contract Owner. Telephone authorization will remain in effect until we receive a written cancellation notice from you or your joint Contract Owner, we discontinue the program, or you are no longer the owner of the Contract. Please call us with any questions regarding restrictions on telephone Surrenders. Internet Requests -- To request a partial Surrender by internet; we must have received your completed Internet partial Withdrawal Program Enrollment Form. If there are joint Contract Owners, both must sign this form. By signing the form, you authorize us to accept internet instructions for partial Surrenders from either Owner. Internet authorization will remain in effect until we receive a written cancellation notice from you or your joint Contract Owner, we discontinue the program, or you are no longer the owner of the Contract. Please call us with any questions regarding restrictions on Internet Surrenders. We may record telephone calls and use other procedures to verify information and confirm that instructions are genuine. We will not be liable for losses or expenses arising from telephone instructions reasonably believed to be genuine. WE MAY MODIFY THE REQUIREMENTS FOR TELEPHONE REDEMPTIONS AT ANY TIME. Telephone and Internet Surrender instructions received before the end of a Valuation Day will be processed at the end of that Valuation Day. Otherwise, your request will be processed at the end of the next Valuation Day. Completing a Power of Attorney form for another person to act on your behalf may prevent you from making Surrenders via telephone and Internet. WHAT SHOULD BE CONSIDERED ABOUT TAXES? There are certain tax consequences associated with Surrenders. If you make a Surrender prior to age 59 1/2, there may be adverse tax consequences including a 10% federal income tax penalty on the taxable portion of the Surrender payment. Surrendering before age 59 1/2 may also affect the continuing tax-qualified status of some Contracts. WE DO NOT MONITOR SURRENDER REQUESTS. CONSULT YOUR PERSONAL TAX ADVISER TO DETERMINE WHETHER A SURRENDER IS PERMISSIBLE, WITH OR WITHOUT FEDERAL INCOME TAX PENALTY. More than one Contract issued in the same calendar year -- If you own more than one Contract issued by us or our affiliates in the same calendar year, then these Contracts may be treated as one Contract for the purpose of determining the taxation of distributions prior to the Annuity Commencement Date. Internal Revenue Code section 403(b) annuities -- As of December 31, 1988, all section 403(b) annuities have limits on full and partial Surrenders. Contributions to your Contract made after December 31, 1988 and any increases in cash value after December 31, 1988 may not be distributed unless you are: (a) age 59 1/2, (b) no longer employed, (c) deceased, (d) disabled, or (e) experiencing a financial hardship (cash value increases may not be distributed for hardships prior to age 59 1/2 ). Distributions prior to age 59 1/2 due to financial hardship; unemployment or retirement may still be subject to a penalty tax of 10%. We will no longer accept any incoming 403(b) exchanges or applications for 403(b) individual annuity contracts. 22 ------------------------------------------------------------------------------- D. ANNUITY PAYOUTS When you "annuitize" your Contract, you begin the process of converting Accumulation Units in what is known as the "payout phase." The payout phase starts with your Annuity Commencement Date and ends when we make the last payment required under your Contract. You should answer the following questions: - When do you want Annuity Payouts to begin? - Which Annuity Payout Option do you want to use? - How often do you want the Payee to receive Annuity Payouts? - Do you want Annuity Payouts to be fixed dollar amount or variable dollar amount? Please check with your Registered Representative to select the Annuity Payout Option that best meets your income needs. WHEN DO YOUR ANNUITY PAYOUTS BEGIN? Your Annuity Commencement Date cannot be earlier than: X 2nd Contract Anniversary - if choosing a fixed dollar amount Annuity Payout X Immediately - if choosing a variable dollar amount Annuity Payout or be later than: X Annuitant's 90th birthday (or if the Contract Owner is a Charitable Remainder Trust, the Annuitant's 100th birthday) X 10th Contract Year (subject to state variation) X The Annuity Commencement Date stated in an extension request (subject to your Financial Intermediary's rules for granting extension requests) received by us not less than 30 days prior to a scheduled Annuity Commencement Date We reserve the right, in our sole discretion, to refuse to extend your Annuity Commencement Date regardless of whether we may have granted extensions in the past to you or other similarly situated investors. In certain instances, a Financial Intermediary has asked us to prohibit Annuity Commencement Date extensions for their customers when the Annuitant turns age 95. Please ask your Registered Representative whether you are affected by any such prohibition and make sure that you fully understand the implications this might have in regard to your living and Death Benefits. The Annuity Calculation Date is when the amount of your Annuity Payout is determined. This occurs within five Valuation Days before your selected Annuity Commencement Date. All Annuity Payouts, regardless of frequency, will occur on the same day of the month as the Annuity Commencement Date. After the initial payout, if an Annuity Payout date falls on a non-Valuation Day, the Annuity Payout is computed on the prior Valuation Day. If the Annuity Payout date does not occur in a given month due to a leap year or months with only 28 days (i.e. the 31st), the Annuity Payout will be computed on the last Valuation Day of the month. WHICH ANNUITY PAYOUT OPTION DO YOU WANT TO USE? Your Contract contains the Annuity Payout Options described below. We may at times offer other Annuity Payout Options. Once we begin to make Annuity Payouts, the Annuity Payout Option cannot be changed. LIFE ANNUITY We make Annuity Payouts as long as the Annuitant is living. When the Annuitant dies, we stop making Annuity Payouts. A Payee would receive only one Annuity Payout if the Annuitant dies after the first payout, two Annuity Payouts if the Annuitant dies after the second payout, and so forth. LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN We will make Annuity Payouts as long as the Annuitant is living, but we at least guarantee to make Annuity Payouts for a time period you select, between 5 years and 100 years minus the Annuitant's age. If the Annuitant dies before the guaranteed number of years have passed, then the Beneficiary may elect to continue Annuity Payouts for the remainder of the guaranteed number of years or receive the Commuted Value in one sum. LIFE ANNUITY WITH A CASH REFUND We will make Annuity Payouts as long as the Annuitant is living. When the Annuitant dies, if the Annuity Payouts already made are less than the Contract Value on the Annuity Commencement Date minus any Premium Tax, the remaining value will be paid to the Beneficiary. The remaining value is equal to the Contract Value minus any Premium Tax minus all Annuity Payouts already made. This option is only available for fixed dollar amount Annuity Payouts. 23 ------------------------------------------------------------------------------- JOINT AND LAST SURVIVOR LIFE ANNUITY We will make Annuity Payouts as long as the Annuitant and Joint Annuitant are living. When one Annuitant dies, we continue to make Annuity Payouts until that second Annuitant dies. When choosing this option, you must decide what will happen to the Annuity Payouts after the first Annuitant dies. You must select Annuity Payouts that: - Remain the same at 100%, or - Decrease to 66.67%, or - Decrease to 50%. For variable Annuity Payouts, these percentages represent Annuity Units; for fixed Annuity Payouts, they represent actual dollar amounts. The percentage will also impact the Annuity Payout amount we pay while both Annuitants are living. If you pick a lower percentage, your original Annuity Payouts will be higher while both Annuitants are alive. JOINT AND LAST SURVIVOR LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN We will make Annuity Payouts as long as either the Annuitant or Joint Annuitant are living, but we at least guarantee to make Annuity Payouts for a time period you select, between 5 years and 100 years minus your younger Annuitant's age. If the Annuitant and the Joint Annuitant both die before the guaranteed number of years have passed, then the Beneficiary may continue Annuity Payouts for the remainder of the guaranteed number of years or receive the Commuted Value in one sum. When choosing this option, you must decide what will happen to the Annuity Payouts after the first Annuitant dies. You must select Annuity Payouts that: - Remain the same at 100%, or - Decrease to 66.67%, or - Decrease to 50%. For variable dollar amount Annuity Payouts, these percentages represent Annuity Units. For fixed dollar amount Annuity Payouts, these percentages represent actual dollar amounts. The percentage will also impact the Annuity Payout amount we pay while both Annuitants are living. If you pick a lower percentage, your original Annuity Payouts will be higher while both Annuitants are alive. PAYMENTS FOR A PERIOD CERTAIN We agree to make payments for a specified time. The minimum period that you can select is 10 years during the first two Contract Years and 5 years after the second Contract Anniversary. The maximum period that you can select is 100 years minus your Annuitant's age. If, at the death of the Annuitant, Annuity Payouts have been made for less than the time period selected, then the Beneficiary may elect to continue the remaining Annuity Payouts or receive the Commuted Value in one sum. You may not choose a fixed dollar amount Annuity Payout during the first two Contract Years. YOU CANNOT SURRENDER YOUR CONTRACT ONCE ANNUITY PAYOUTS BEGIN, UNLESS YOU HAVE SELECTED LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN, JOINT AND LAST SURVIVOR LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN, OR PAYMENTS FOR A PERIOD CERTAIN ANNUITY PAYOUT OPTION. A CONTINGENT DEFERRED SALES CHARGE, IF APPLICABLE, MAY BE DEDUCTED. For qualified Contracts, if you elect an Annuity Payout Option with a Period Certain, the guaranteed number of years must be less than the life expectancy of the Annuitant at the time the Annuity Payouts begin. We compute life expectancy using the IRS mortality tables. Automatic Annuity Payouts -- If you do not elect an Annuity Payout Option, monthly Annuity Payouts will automatically begin on the Annuity Commencement Date under the Life Annuity with Payments for a Period Certain Annuity Payout Option with a ten-year period certain. Automatic Annuity Payouts will be fixed dollar amount Annuity Payouts, variable dollar amount Annuity Payouts, or a combination of fixed or variable dollar amount Annuity Payouts, depending on the investment allocation of your Account in effect on the Annuity Commencement Date. Automatic variable Annuity Payouts will be based on an Assumed Investment Return equal to 5%. HOW OFTEN DO YOU WANT THE PAYEE TO RECEIVE ANNUITY PAYOUTS? In addition to selecting an Annuity Commencement Date and an Annuity Payout Option, you must also decide how often you want the Payee to receive Annuity Payouts. You may choose to receive Annuity Payouts: - monthly, - quarterly, - semi-annually, or - annually. 24 ------------------------------------------------------------------------------- Once you select a frequency, it cannot be changed. If you do not make a selection, the Payee will receive monthly Annuity Payouts. You must select a frequency that results in an Annuity Payout of at least $50. If the amount falls below $50, we have the right to change the frequency to bring the Annuity Payout up to at least $50. DO YOU WANT ANNUITY PAYOUTS TO BE FIXED DOLLAR AMOUNT OR VARIABLE DOLLAR AMOUNT? You may choose an Annuity Payout Option with fixed dollar amounts or variable dollar amounts, depending on your income needs. You may not choose a fixed dollar amount Annuity Payout during the first two Contract Years. Fixed Dollar Amount Annuity Payouts -- Once a fixed dollar amount Annuity Payout begins, you cannot change your selection to receive variable dollar amount Annuity Payouts. You will receive equal fixed dollar amount Annuity Payouts throughout the Annuity Payout period. Fixed dollar amount Annuity Payout amounts are determined by multiplying the Contract Value, minus any applicable Premium Taxes, by an annuity rate set by us. Variable Dollar Amount Annuity Payouts -- Once a variable dollar amount Annuity Payout begins, you cannot change your selection to receive a fixed dollar amount Annuity Payout. A variable dollar amount Annuity Payout is based on the investment performance of the Sub-Accounts. The variable dollar amount Annuity Payouts may fluctuate with the performance of the Funds. To begin making variable dollar amount Annuity Payouts, we convert the first Annuity Payout amount to a set number of Annuity Units and then price those units to determine the Annuity Payout amount. The number of Annuity Units that determines the Annuity Payout amount remains fixed unless you transfer units between Sub-Accounts. The dollar amount of the first variable Annuity Payout depends on: - the Annuity Payout Option chosen, - the Annuitant's attained age and gender (if applicable), - the applicable annuity purchase rates based on the 1983a Individual Annuity Mortality table adjusted for projections based on accepted actuarial principles, and - the Assumed Investment Return ("AIR"). The total amount of the first variable dollar amount Annuity Payout is determined by dividing the Contract Value minus any applicable Premium Taxes by $1,000 and multiplying the result by the payment factor defined in the Contract for the selected Annuity Payout Option. The dollar amount of each subsequent variable dollar amount Annuity Payout is equal to the total of Annuity Units for each Sub-Account multiplied by the Annuity Unit Value of each Sub-Account. The Annuity Unit Value of each Sub-Account for any Valuation Period is equal to the Accumulation Unit Value Net Investment Factor for the current Valuation Period multiplied by the Annuity Unit Factor, multiplied by the Annuity Unit Value for the preceding Valuation Period. The Annuity Unit Factor offsets the AIR used to calculate your first variable dollar amount Annuity Payout. The first Annuity Payout will be based upon the AIR. The remaining Annuity Payouts will fluctuate based on the performance of the Funds in relation to the AIR. The degree of the fluctuation will depend on the AIR you select. You can select one of the following AIRs offered, subject to state variations:
ANNUITY ANNUITY ANNUITY AIR UNIT FACTOR AIR UNIT FACTOR AIR UNIT FACTOR ------------------------------------------------------------------- 3% 0.999919% 5% 0.999866% 6% 0.999840%
The greater the AIR, the greater the initial Annuity Payout. But a higher AIR may result in a smaller potential growth in future Annuity Payouts when the Sub-Accounts earn more than the AIR. On the other hand, a lower AIR results in a lower initial Annuity Payout, but future Annuity Payouts have the potential to be greater when the Sub-Accounts earn more than the AIR. For example, if the Sub-Accounts earned exactly the same as the AIR, then the second monthly Annuity Payout is the same as the first. If the Sub-Accounts earned more than the AIR, then the second monthly Annuity Payout is higher than the first. If the Sub-Accounts earned less than the AIR, then the second monthly Annuity Payout is lower than the first. Level variable dollar amount Annuity Payouts would be produced if the investment returns remained constant and equal to the AIR. In fact, Annuity Payouts will vary up or down as the investment rate varies up or down from the AIR. The degree of variation depends on the AIR you select. After the Annuity Calculation Date, you may transfer dollar amounts of Annuity Units from one Sub-Account to another. On the day you make a transfer, the dollar amounts are equal for both Sub-Accounts and the number of Annuity Units will be different. We will transfer the dollar amount of your Annuity Units the day we receive your written request if received before the close of the New 25 ------------------------------------------------------------------------------- York Stock Exchange. Otherwise, the transfer will be made on the next Valuation Day. All Sub-Account transfers must comply with applicable transfer restriction policies. Combination Annuity Payout -- You may choose to receive a combination of fixed dollar amount and variable dollar amount Annuity Payouts as long as they total 100% of your Annuity Payout. For example, you may choose to use 40% fixed dollar amount and 60% variable dollar amount to meet your income needs. Combination Annuity Payouts are not available during the first two Contract Years. E. STANDARD DEATH BENEFITS WHAT IS THE DEATH BENEFIT AND HOW IS IT CALCULATED? The Death Benefit is the amount we will pay if the Owner, joint Owner, or the Annuitant dies before we begin to make Annuity Payouts. We calculate the Death Benefit when, and as of the date that, we receive a certified death certificate or other legal document acceptable to us. The Death Benefits described below are at no additional cost. Standard Death Benefits are automatically included in your Contract unless superseded by certain optional benefits. Terms and titles used in riders to your Contract may differ from those used in this prospectus. The calculated Death Benefit will remain invested according to the Owner's last instructions until we receive complete written settlement instructions from the Beneficiary. This means the Death Benefit amount will fluctuate with the performance of the Account. When there is more than one Beneficiary, we will calculate the Accumulation Units for each Sub-Account and the dollar amount for the Fixed Accumulation Feature for each Beneficiary's portion of the proceeds. THE PREMIUM SECURITY DEATH BENEFIT This standard Death Benefit is automatically issued if you and the Annuitant are all younger than age 81 when the Contract is issued. This Death Benefit is the highest of: - Contract Value; or - Total Premium Payments adjusted for partial Surrenders; or - The lesser of: - Maximum Anniversary Value, or - the sum of Contract Value plus 25% of Maximum Anniversary Value (excluding Premium Payments we receive within 12 months of death). Please refer to Premium Security Death Benefit examples 1 - 2 in Appendix I. THE ASSET PROTECTION DEATH BENEFIT This standard Death Benefit is automatically issued if you or the Annuitant are between ages 81 to 85 when the Contract is issued. This Death Benefit is the highest of: - Contract Value; or - The lesser of: - Premium Payments (adjusted for partial Surrenders), or - the sum of Contract Value plus 25% of total Premium Payments adjusted for partial Surrenders (excluding Premium Payments we receive within 12 months of death). If one of the Owners and Annuitant is age 81 or older on the date we issue this Contract and one of the Owners and Annuitant is age 79 or younger on the date we issue this Contract; however, the Death Benefit payable upon the death of the younger of the Owners or Annuitant will be the lesser of Maximum Anniversary Value or the sum of Contract Value plus 25% of Maximum Anniversary Value. Please refer to Asset Protection Death Benefit examples 1 - 3 in Appendix I. MAXIMUM ANNIVERSARY VALUE The Maximum Anniversary Value is based on a series of calculations on Contract Anniversaries of Contract Values, Premium Payments and partial Surrenders. We will calculate an Anniversary Value for each Contract Anniversary prior to the deceased's 81st birthday or the date of death, whichever is earlier. The Anniversary Value is equal to the Contract Value as of a Contract Anniversary with the following adjustments: - Your Anniversary Value is increased by the dollar amount of any Premium Payments made since the Contract Anniversary; and 26 ------------------------------------------------------------------------------- - Your Anniversary Value is reduced for any partial Surrenders since the Contract Anniversary. The Maximum Anniversary Value is equal to the greatest Anniversary Value attained from this series of calculations. ADJUSTMENTS FOR SURRENDERS We calculate the adjustments to your Maximum Anniversary Value for any Surrenders by reducing your Anniversary Value on a dollar-for-dollar basis for any Surrenders within a Contract Year up to 10% of aggregate Premium Payments. After that, we reduce your Anniversary Value proportionally based on the amount of any Surrenders that exceed 10% of aggregate Premium Payments divided by your aggregate Contract Value at the time of Surrender. For examples of how this is applied for the Premium Security Death Benefit, please refer to Premium Security Death Benefit examples 1 - 2 in Appendix I and for the Asset Protection Death Benefit, please refer to Asset Protection Death Benefit examples 1 - 3 in Appendix I. We calculate the adjustment to your aggregate Premium Payments for any Surrenders by reducing your aggregate Premium Payments on a dollar-for-dollar basis for any Surrenders within a Contract Year up to 10% of aggregate Premium Payments. After that, we reduce your aggregate Premium Payments proportionately based on the amount of any Surrenders that exceed 10% of aggregate Premium Payments divided by your aggregate Contract Value at the time of Surrender. ADDITIONAL INFORMATION ABOUT DEATH BENEFITS We reserve the right to treat all deferred variable annuities that you buy from us or our affiliates as a single contract for the purposes of determining your total Death Benefits. These limits will be applied if you make $5 million or more in total aggregate Premium Payments. If applicable, the aggregate limit on total Death Benefits payable by us or our affiliates will never exceed a maximum of: - $5 million of Premium Payments (as reduced by an adjustment for Surrenders), or - Contract Value plus $1 million. Any reduction in Death Benefits will be in proportion to the Contract Value of each deferred variable annuity at the time of reduction. HOW IS THE DEATH BENEFIT PAID? The Death Benefit may be taken in one lump sum or under any of the Annuity Payout Options then being offered by us, unless the Owner has designated the manner in which the Beneficiary will receive the Death Benefit. We will calculate the Death Benefit as of the date we receive a certified death certificate or other legal documents acceptable by us. The Death Benefit amount remains invested and is subject to market fluctuation until complete settlement instructions are received from each Beneficiary. On the date we receive complete instructions from the Beneficiary, we will compute the Death Benefit amount to be paid out or applied to a selected Annuity Payout Option. When there is more than one Beneficiary, we will calculate the Death Benefit amount for each Beneficiary's portion of the proceeds and then pay it out or apply it to a selected Annuity Payout Option according to each Beneficiary's instructions. If we receive the complete instructions on a non-Valuation Day, computations will take place on the next Valuation Day. If your Beneficiary elects to receive the Death Benefit amount as a lump sum payment, unless we are otherwise instructed, we may transfer that amount to our General Account and issue the Beneficiary a draft book. The Beneficiary can write one draft for total payment of the Death Benefit, or keep the money in the General Account and write drafts as needed. We will credit interest at a rate determined periodically in our sole discretion. For federal income tax purposes, the Beneficiary will be deemed to have received the lump sum payment on transfer of the Death Benefit amount to the General Account. The interest will be taxable to the Beneficiary in the tax year that it is credited. If the Beneficiary resides or the Contract was purchased in a state that imposes restrictions on this method of lump sum payment, we may issue a check to the Beneficiary. The Beneficiary may elect under the Annuity Proceeds Settlement Option "Death Benefit Remaining with the Company" to leave proceeds from the Death Benefit invested with us for up to five years from the date of death if death occurred before the Annuity Commencement Date. Once we receive a certified death certificate or other legal documents acceptable to us, the Beneficiary can: (a) make Sub-Account transfers (subject to applicable restrictions) and (b) take Surrenders without paying Contingent Deferred Sales Charges, if any. We reserve the right to inform the IRS in the event that we believe that any Beneficiary has intentionally delayed delivering proper proof of death in order to circumvent applicable Code proceeds payment duties. We shall endeavor to fully discharge the last instructions from the Owner wherever possible or practical. The Beneficiary of a non-qualified Contract or IRA (prior to the required distribution date) may also elect the Single Life Expectancy Only option. This option allows the Beneficiary to take the Death Benefit in a series of payments spread over a period equal to the Beneficiary's remaining life expectancy. Distributions are calculated based on IRS life expectancy tables. This option is subject to different limitations and conditions depending on whether the Contract is non-qualified or an IRA. 27 ------------------------------------------------------------------------------- If the Owner dies before the Annuity Commencement Date, the Death Benefit must be distributed within five years after death or be distributed under a distribution option or Annuity Payout Option that satisfies the Alternatives to the Required Distributions described below. If the Owner dies on or after the Annuity Commencement Date under an Annuity Payout Option that permits the Beneficiary to elect to continue Annuity Payouts or receive the Commuted Value, any remaining value must be distributed at least as rapidly as under the payment method being used as of the Owner's death. If the Owner is not an individual (e.g. a trust), then the original Annuitant will be treated as the Owner in the situations described above and any change in the original Annuitant will be treated as the death of the Owner. WHAT SHOULD THE BENEFICIARY CONSIDER? Alternatives to the Required Distributions -- The selection of an Annuity Payout Option and the timing of the selection will have an impact on the tax treatment of the Death Benefit. To receive favorable tax treatment, the Annuity Payout Option selected: (a) cannot extend beyond the Beneficiary's life or life expectancy, and (b) must begin within one year of the date of death. If these conditions are NOT met, the Death Benefit will be treated as a lump sum payment for tax purposes. This sum will be taxable in the year in which it is considered received. Spousal Contract Continuation -- If the Owner dies and the Owner's Spouse is a beneficiary, then the portion of the Contract payable to the Spouse may be continued with the Spouse as Owner, unless the Spouse elects to receive the Death Benefit as a lump sum payment or as an Annuity Payment Option. For certain Contracts, if the Contract continues with the Spouse as Owner, we will adjust the Contract Value to the amount that we would have paid as the Death Benefit payment, had the Spouse elected to receive the Death Benefit as a lump sum payment. Spousal Contract continuation will only apply one time for each Contract. WHO WILL RECEIVE THE DEATH BENEFIT? The distribution of the Death Benefit applies only when death is before the Annuity Commencement Date. If death occurs on or after the Annuity Commencement Date, there may be no payout at death unless the Owner has elected an Annuity Payout Option that permits the Beneficiary to elect to continue Annuity Payouts or receive the Commuted Value. IF DEATH OCCURS BEFORE THE ANNUITY COMMENCEMENT DATE: IF THE DECEASED IS THE . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving joint The Annuitant is living or Joint Contract Owner receives Contract Owner deceased the Death Benefit. Contract Owner There is no surviving joint The Annuitant is living or Designated Beneficiary receives Contract Owner deceased the Death Benefit. Contract Owner There is no surviving joint The Annuitant is living or Contract Owner's estate Contract Owner and the deceased receives the Death Benefit. Beneficiary predeceases the Contract Owner Annuitant The Contract Owner is living There is no named Contingent The Contract Owner becomes the Annuitant Contingent Annuitant and the Contract continues. The Contract Owner may waive this presumption and receive the Death Benefit. Annuitant The Contract Owner is living The Contingent Annuitant is Contingent Annuitant becomes living the Annuitant, and the Contract continues.
28 ------------------------------------------------------------------------------- IF DEATH OCCURS ON OR AFTER THE ANNUITY COMMENCEMENT DATE: IF THE DECEASED IS THE . . . AND . . . THEN THE . . . Contract Owner The Annuitant is living Designated Beneficiary becomes the Contract Owner. Annuitant The Contract Owner is living Contract Owner receives the payout at death, if any. Annuitant The Annuitant is also the Owner Designated Beneficiary receives the payout at death, if any.
THESE ARE THE MOST COMMON SCENARIOS. SOME OF THE ANNUITY PAYOUT OPTIONS MAY NOT RESULT IN A PAYOUT AT DEATH. 6. OPTIONAL DEATH BENEFITS A. MAV PLUS OBJECTIVE Refund net Premium Payments as well as some percentage of any Contract Value gains. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? The Death Benefit will be the greater of the standard Death Benefit and MAV Plus Death Benefit. If you also elect any optional benefit rider, the Death Benefit will be the greater of such optional rider and this rider. The MAV Plus Death Benefit is the greatest of: A. Contract Value on the date we receive due proof of death. B. Total Premium Payments adjusted for any partial Surrenders (see clause D below for a description of this adjustment). C. Maximum Anniversary Value -- The Maximum Anniversary Value is based on a series of calculations on Contract Anniversaries of Contract Values, Premium Payments and partial Surrenders. We will calculate an Anniversary Value for each Contract Anniversary prior to the deceased's 81st birthday or the date of death, whichever is earlier. The Anniversary Value is equal to the Contract Value as of a Contract Anniversary with the following adjustments: (a) Anniversary Value is increased by the dollar amount of any Premium Payments made since the Contract Anniversary; and (b) Anniversary Value is adjusted for any partial Surrenders since the Contract Anniversary. The Maximum Anniversary Value is equal to the greatest Anniversary Value attained from this series of calculations. D. Earnings Protection Benefit -- The Earnings Protection Benefit depends on the age of you and/or your Annuitant on the date this rider is added to your Contract. - If each is aged 69 or younger, the Death Benefit is the Contract Value on the date we receive due proof of death plus 40% of the lesser of Contract gain on that date and the cap. - If you and/or your Annuitant are age 70 or older on the date this rider is added to your Contract, the benefit is the Contract Value on the date we receive due proof of death plus 25% of the lesser of Contract gain on that date and the cap. We determine Contract gain by subtracting your Contract Value on the date you added this rider from the Contract Value on the date we receive due proof of death. We then deduct any Premium Payments and add adjustments for any partial Surrender made during that time. We make an adjustment for partial Surrenders if the amount of Surrender is greater than the Contract gain immediately prior to the Surrender. The adjustment is the difference between the two, but not less than zero. We calculate the adjustment to your Maximum Anniversary Value for any Surrenders by reducing your Maximum Anniversary Value on a dollar-for-dollar basis for any Surrenders within a Contract Year up to 10% of aggregate Premium Payments. After that, we reduce your Maximum Anniversary Value proportionately based on the amount of any Surrenders that exceed 10% of aggregate Premium Payments divided by your aggregate Contract Value at the time of Surrender. Please refer to the examples in Appendix I for illustrations of this adjustment. The Contract gain that is used to determine your Death Benefit has a limit or cap. The cap is 200% of the following: - the Contract Value on the date this rider was added to your Contract; plus - Premium Payments made after this rider was added to your Contract, excluding any Premium Payments made within 12 months of the date we receive due proof of death; minus - any adjustments for partial Surrenders. 29 ------------------------------------------------------------------------------- If you elect MAV Plus, the Death Benefit will be the greater of the Premium Security Death Benefit and the MAV Plus Death Benefit. WHEN CAN YOU BUY THIS RIDER? You may elect this rider only at the time of issue and once you do so, your choice is irrevocable. You may not choose this optional Death Benefit if the Owner(s) and/or Annuitant are age 76 or older on the Contract issue date. In states where the MAV Plus Death Benefit is not available, we offer the "Maximum Anniversary Value (MAV) Death Benefit" for the same additional fee. The MAV Death Benefit is the same as the MAV Plus Death Benefit but excludes the Earnings Protection Benefit. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? No. HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The annual charge for this rider is based on your daily Contract Value and is deducted daily. The charge for this rider continues to be deducted until we begin to make Annuity Payouts. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? No. This rider is not affected by the Benefit Amount or Payment Base. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? No. IS THIS RIDER DESIGNED TO PAY YOU DEATH BENEFITS? Yes. DOES THIS RIDER REPLACE STANDARD DEATH BENEFITS? No. CAN YOU REVOKE THIS RIDER? No. WHAT EFFECT DO PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Surrenders will reduce the MAV Plus Death Benefit and will be subject to CDSCs, if any. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? We reserve the right to approve all ownership changes, including any assignment of your Contract to others or the pledging of your Contract as collateral. Certain approved changes in ownership may cause a re-calculation of the benefits subject to applicable state law. Generally, we will not re-calculate the benefits under your Contract so long as the change in ownership does not affect the Owner and does not result in a change in the tax identification number under the Contract. Changes in ownership can also adversely affect your Death Benefits and optional withdrawal benefits. You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice. CAN YOUR SPOUSE CONTINUE YOUR CONTRACT RIGHTS? Yes. If your Spouse continues the Contract as Owner, we will use the date the Contract is continued with your Spouse as Owner as the effective date this rider was added to the Contract. This means we will use the date the Contract is continued with your Spouse as Owner as the effective date for calculating this Death Benefit going forward. The percentage used for this Death Benefit will be determined by the oldest age of any remaining joint Owner or Annuitant at the time the Contract is continued. Spousal Contract continuation can apply once during the term of this Contract. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? This rider will be terminated and the fee will no longer be assessed. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? No. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? No. 30 ------------------------------------------------------------------------------- CAN WE AGGREGATE CONTRACTS? Yes. We reserve the right to treat all deferred variable annuities that you buy from us or our affiliates as a single contract for the purposes of determining your total Death Benefits. These limits will be applied if you make $5 million or more in total aggregate Premium Payments. If applicable, the aggregate limit on total Death Benefits payable by us or our affiliates will never exceed a maximum of: - $5 million of Premium Payments (as reduced by an adjustment for Surrenders), or - Contract Value plus $1 million. Any reduction in Death Benefits will be in proportion to the Contract Value of each deferred variable annuity at the time of reduction. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - This rider is not available in all states or is named differently in those states. - If your Contract has no gain, your Beneficiary will receive no additional benefit. - A Death Benefit is paid to Beneficiaries upon the death of the Annuitant or any Owner, whichever occurs first. - This rider may be used to supplement Death Benefits in other optional riders. In certain instances, however, this additional Death Benefit coverage could be superfluous. - Annuitizing your Contract will extinguish this rider. 7. OPTIONAL WITHDRAWAL BENEFITS A. THE HARTFORD'S PRINCIPAL FIRST PREFERRED OBJECTIVE Protect your Premium Payments from poor market performance through annual Benefit Payments until the Benefit Amount is reduced to zero. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider protects Premium Payments by guaranteeing annual Benefit Payments until your Benefit Amount, rather than your Contract Value, has been exhausted. See Optional Benefit Comparisons in Appendix B. WHEN CAN YOU BUY THIS RIDER? You cannot elect The Hartford's Principal First Preferred after May 1, 2008. For investors purchasing a Contract after August 14, 2006, the maximum age of any Contract Owner or Annuitant when electing this rider is age 70. For all other investors, the maximum age of any Contract Owner or Annuitant electing this rider is age 85 for non-qualified plans and age 70 for IRA or qualified plans. If not elected at issue, Plus Contract Owners must wait until after the first Contract Anniversary before purchasing this benefit. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any optional riders other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The annual charge for this rider is based on your daily Account Value and is deducted daily. We will continue to deduct The Hartford's Principal First Preferred Charge until we begin to make Annuity Payouts or the rider is revoked. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. Your Benefit Amount will fluctuate based on subsequent Premium Payments or partial Surrenders. If you elect the rider at a later date, your Contract Value on the date it is added to your Contract will be the initial Benefit Amount. Partial Surrenders in excess of your annual Benefit Payments may also trigger a recalculation of the Benefit Amount and future Benefit Payments. Your Benefit Amount can never be more than $5 million. 31 ------------------------------------------------------------------------------- IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? No. You can continue to take Benefit Payments until the Benefit Amount has been depleted. Once the initial Benefit Amount has been determined, we calculate Benefit Payments. If you elect the rider when purchasing the Contract, your initial Premium Payment is equal to the initial Benefit Amount. The maximum Benefit Payment is 5% of your Benefit Amount. Benefit Payments are available at any time and can be taken on any schedule that you request. Benefit Payments are non-cumulative, which means that your Benefit Payment will not increase in the future if you fail to take your full Benefit Payment for the current Contract Year. For example, if you do not take 5% one Contract Year, you may not take more than 5% the next Contract Year. If you elect this rider when you purchase your Contract, we count one year as the time between each Contract Anniversary. If you purchase this rider after you purchase your Contract, we count the first year as the time between the date you added this rider to your Contract and your next Contract Anniversary, which could be less than a year. Each time you add a Premium Payment, we increase your Benefit Amount by the amount of the subsequent Premium Payment on a dollar-for-dollar basis. When you make a subsequent Premium Payment, your Benefit Payments will increase by 5% of the amount of the subsequent Premium Payment. Your Benefit Amount cannot be less than $0 or more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider. If, in one year, your Surrenders total more than your annual Benefit Payment, we will recalculate your Benefit Amount and your Benefit Payment could be significantly lower in the future. Any time we re-calculate your Benefit Amount and your Benefit Payment we count one year as the time between the date we recalculate and your next Contract Anniversary, which could be less than a year. Whenever a partial Surrender is made, the Benefit Amount will be equal to the amount determined in either (A) or (B) as follows: A. If the total partial Surrenders since the later of (i) the most recent Contract Anniversary, or (ii) the Valuation Day that the Benefit Payment was last established (excluding subsequent Premium Payments), are equal to or less than the Benefit Payment, the new Benefit Amount becomes the Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender. B. If the total partial Surrenders as determined in (A) above exceed the Benefit Payment, the Benefit Amount will have an automatic reset to the greater of zero or the lesser of (i) or (ii) as follows: (i) The Contract Value immediately following the partial Surrender; or (ii) The Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender. Please refer to examples 2 - 6 for The Hartford's Principal First Preferred in Appendix I for illustrations regarding recalculation of your Benefit Amount. Qualified Contracts are subject to certain federal tax rules requiring that minimum distributions be withdrawn from the Contract on a calendar year basis (i.e., compared to a Contract Year basis), usually beginning after age 70 1/2. These withdrawals are called Required Minimum Distributions ("RMD"). An RMD may exceed your Benefit Payment, which will cause a recalculation of your Benefit Amount. Recalculation of your Benefit Amount may result in a lower Benefit Payment in the future. If you enroll in our Automatic Income Program to satisfy the RMD from the Contract and, as a result, the withdrawals exceed your annual Benefit Payment, we will not recalculate your Benefit Amount or Benefit Payment. IS THIS RIDER DESIGNED TO PAY YOU A DEATH BENEFIT? No. However, partial Surrenders will reduce the standard Death Benefit. DOES THIS RIDER REPLACE STANDARD DEATH BENEFITS? No. CAN YOU REVOKE THIS RIDER? Yes. You may revoke this rider in writing anytime following the earlier of the 5th Contract Year (if elected at issuance) or the 5th anniversary of electing this rider post-issuance or at the time we exercise our right to impose investment restrictions. Annuitizing your Contract instead of receiving Benefit Payments will terminate this rider. If you revoke this rider you will not be able to elect any other optional benefit rider or participate in a Company-sponsored exchange program. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. WHAT EFFECT DO PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value and Benefit Amount. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your annual Benefit Payment include any applicable CDSC. 32 ------------------------------------------------------------------------------- If, in one year, your Surrenders total more than your annual Benefit Payment, we will re-calculate your Benefit Amount and your Benefit Payment could be significantly lower in the future. Any time we re-calculate your Benefit Amount and your Benefit Payment we count one year as the time between the date we re-calculate and your next Contract Anniversary, which could be less than a year. If your Contract Value is reduced to zero due to receiving annual Benefit Payments, and you still have a Benefit Amount, you will continue to receive a Benefit Payment through a fixed Annuity Payout option until your Benefit Amount is depleted. While you are receiving payments under fixed Annuity Payout options, you may not make additional Premium Payments, and if you die before you receive all of your payments, your Beneficiary will continue to receive the remaining Benefit Payments. You can Surrender your entire Contract Value any time; however, you will receive your Contract Value at the time you request a full Surrender with any applicable charges deducted and not the Benefit Amount or the Benefit Payment amount that you would have received under this rider. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? If you change the ownership or assign this Contract to someone other than your Spouse after 12 months of electing this rider, we will recalculate the Benefit Amount and the Benefit Payment may be lower in the future. The Benefit Amount will be recalculated to equal the lesser of: - The Benefit Amount immediately prior to the ownership change or assignment; or - The Contract Value at the time of the ownership change or assignment. The Benefit Payment will then be reset to 5% of the new Benefit Amount. If the Owner dies and the sole Beneficiary is the Owner's Spouse, then the surviving Spouse can either become the Contract Owner or elect to receive the standard Death Benefit. You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice. CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? Yes. If the Owner dies and the sole Beneficiary is the deceased Owner's Spouse at the time of death, that Spouse may continue the Contract and this rider. This right may be exercised only once during the term of the Contract. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? You may elect the annuitization option at any time. If you annuitize your Contract, you may choose this payout option in addition to those Annuity Payout Options offered in the Contract. Under this Annuity Payout Option (called the "PFP Annuity Payout Option"), we will pay a fixed dollar amount for a specific number of years ("Payout Period"). If you, the joint Owner or the Annuitant should die before the PFP Annuity Payout Period is complete, the remaining payments will be made to the Beneficiary. The PFP Annuity Payout Period is determined on the Annuity Calculation Date and it will equal the current Benefit Amount divided by the Benefit Payment. The total amount of the Annuity Payouts under this option will be equal to the Benefit Amount. We may offer other Payout Options. If you, the joint Owner or Annuitant die before the Annuity Calculation Date and all of the Benefit Payments guaranteed by us have not been made, the Beneficiary may elect to take the remaining Benefit Payments by electing the PFP Payout Option. Electing this option forfeits any right to Death Benefit values calculated under the standard Death Benefit or any optional death benefits you may have purchased. If the Annuitant dies after the Annuity Calculation Date and before all of the Benefit Payments guaranteed by us have been made, the payments will continue to be made to the Beneficiary. If your Contract Value is reduced to zero, you will receive a fixed Annuity Payout option until your Benefit Amount is depleted. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? Yes. We reserve the right to limit the Sub-Accounts into which you may allocate your Contract Value on and after the effective date. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? No; however, your Benefit Amount cannot be more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider. CAN WE AGGREGATE CONTRACTS? Yes. We reserve the right to treat all Contracts issued to you by us or one of our affiliates as one Contract for purposes of this rider. This means that if you purchase two Contracts from us in any twelve month period and elect optional withdrawal benefits in such other Contracts, withdrawals from one Contract may be treated as withdrawals from the other Contract. 33 ------------------------------------------------------------------------------- OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - We can revoke this rider if you violate the investment restrictions requirements. Once revoked, you cannot reinstate this or any other optional benefit rider and the rider fee will cease. - The annual percentage used for determining Benefit Payments is not a fixed rate of return. The Contract Value used in the calculation of the Benefit Amount and Benefit Payment is based on the investment performance of your Sub-Accounts. - Benefit Payments can't be carried forward from one year to the next. - Annual Surrenders exceeding 5% accelerate depletion of your Benefit Amount even if you use the Automatic Income Program to meet RMD requirements. No reliable assumptions can be made that your payments will continue for any particular number of years. - Additional contributions made to your Contract after withdrawals have begun may not restore the previous amount of Benefit Payments, even if the additional contribution restores the Benefit Amount to the previous Benefit Amount. - If elected post-issuance, the first one year period will be considered to be the time period between election and the next following Contract Anniversary. - When the Contract Value is small in relation to the Benefit Amount, Surrenders may have a significant effect on future Benefit Payments. B. THE HARTFORD'S LIFETIME INCOME FOUNDATION OBJECTIVE Protect principal from poor market performance, provide longevity protection through Lifetime Benefit Payments, and ensure a Death Benefit equivalent to the greater of Premium Payments reduced for partial Surrenders or Contract Value. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider provides two separate but bundled benefits that help achieve this goal. In other words, this rider is a guarantee that you can access two ways: - LIFETIME WITHDRAWAL BENEFIT. This rider provides a series of Lifetime Benefit Payments payable in each Contract Year following the Relevant Covered Life's 60th birthday, until the first death of any Covered Life ("Single Life Option") or the second death of any Covered Life ("Joint/Spousal Option"). Lifetime Benefit Payments are maximum amounts that can be withdrawn each year based on the higher of your Payment Base or Contract Value on each Contract Anniversary multiplied by the applicable Withdrawal Percent. In an Eligible Withdrawal Year, your initial Lifetime Benefit Payment is equal to the Payment Base multiplied by the applicable Withdrawal Percentage. Payments may continue even if the Contract Value has been reduced to below our minimum Contract Value. The Withdrawal Percent varies based upon the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender, and the survivor option chosen. Any partial Surrender taken prior to the Contract Anniversary following the Relevant Covered Life's 60th birthday will reduce the Payment Base and your future Lifetime Benefit Payment. Such partial Surrender may potentially eliminate your Lifetime Benefit Withdrawal Guarantee. - GUARANTEED MINIMUM DEATH BENEFIT. This guaranteed minimum Death Benefit provides a Death Benefit equal to the greater of Premium Payments reduced for partial Surrenders or Contract Value as of the date due proof of death is received for any Contract Owner or Annuitant. PARTIAL SURRENDERS WILL REDUCE OR ELIMINATE THE GUARANTEED MINIMUM DEATH BENEFIT. THIS GUARANTEED MINIMUM DEATH BENEFIT REPLACES THE STANDARD DEATH BENEFITS PROVIDED UNDER THIS CONTRACT. See Optional Benefit Comparisons in Appendix B. WHEN CAN YOU BUY THIS RIDER? Subject to State approval of The Hartford's Lifetime Income Builder Portfolios and The Hartford's Lifetime Income Builder Selects, this rider is closed to new investors. If applicable, you may elect this rider at the time of purchase, or at a later date, if you are eligible to participate in a designated company sponsored exchange program. The benefits comprising this rider may not be purchased separately. This rider may not be available through all Registered Representatives and may be subject to additional restrictions set by your Registered Representative or us. We reserve the right to withdraw this rider at any time. When you buy this rider, you must provide us with the names and ages of the Owner, any joint Owner, Annuitant and Beneficiary. A Covered Life must be a living person. If you choose the Joint/Spousal Option, we reserve the right to (a) prohibit non-natural entities from being designated as an Owner, (b) prohibit anyone other than your Spouse from being a joint Owner; and (c) impose other designation restrictions from time to time. 34 ------------------------------------------------------------------------------- For the Single Life Option, the Covered Life is most often the same as the Contract Owner and joint Owner (which could be two different people). In the Joint/Spousal Option, the Covered Life is most often the Contract Owner and his or her Spouse, as joint Owner or Beneficiary. The Relevant Covered Life will be one factor used to establish your Withdrawal Percent. When the Single Life Option is chosen, we use the older Covered Life as the Relevant Covered Life; and when the Joint/Spousal Option is chosen, we use the younger Covered Life as the Relevant Covered Life. The maximum age of any Contract Owner or Annuitant when electing this rider is 80. When the Joint/Spousal Option is chosen, the Beneficiary also must be younger than age 81. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any rider other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The fee for this rider is based on your then current Payment Base (not your Contract Value) as of each Contract Anniversary. This charge will automatically be deducted from your Contract Value on your Contract Anniversary AFTER your Anniversary Value and Payment Base have been computed and prior to all other financial transactions. In the event of a full Surrender, a prorated charge will be deducted from your Surrender Value. The charge for this rider will be withdrawn from each Sub-Account and the Fixed Accumulation Feature in the same proportion that the value of each Sub-Account bears to the total Contract Value. Except as otherwise provided below, we will continue to deduct this charge until we begin to make Annuity Payouts. The rider charge may limit access to the Fixed Accumulation Feature in certain states. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. Your initial Payment Base equals your initial Premium Payment. Your Payment Base will fluctuate based on subsequent Premium Payments and partial Surrenders. Your Payment Base can never be less than $0 or more than $5 million. Any activities that would otherwise increase the Payment Base above this ceiling will not be included for any benefits under this rider. The Payment Base will be recalculated based on: - Subsequent Premium Payments. Subsequent Premium Payments increase your Payment Base on a dollar-for-dollar basis. - Partial Surrenders. Partial Surrenders may trigger a recalculation of the Payment Base depending on (a) whether the partial Surrender takes place prior or during an Eligible Withdrawal Year, and (b) if the aggregate amount of the partial Surrenders during any Contract Year exceeds the applicable Threshold, as discussed below: A. If cumulative partial Surrenders taken during any Contract Year and prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Payment Base on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), then we will reduce the Payment Base on a (i) dollar-for-dollar basis up to the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will not reduce the Payment Base. C. For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Payment Base on a proportionate basis for the amount in excess of the Lifetime Benefit Payment. Partial Surrenders taken during any Contract Year that cumulatively exceed the Annual Withdrawal Amount but do not exceed the Lifetime Benefit Payment will be free of any applicable CDSC. Partial Surrenders will diminish the Guaranteed Minimum Death Benefit. Please refer to the Examples in Appendix I for a more complete description of these effects. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? Yes. However, your Withdrawal Percent, and therefore the amount of your Lifetime Benefit Payment, is dependent upon when you take your first partial Surrender. For instance, - If you take your first partial Surrender before an Eligible Withdrawal Year, your Withdrawal Percent will never increase above 5% for Single Life Option or 4.5% for Joint/Spousal option for the remaining duration of your Contract. - If you take your first partial Surrender during an Eligible Withdrawal Year, your Withdrawal Percent will never increase above the Withdrawal Percent corresponding with the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the 35 ------------------------------------------------------------------------------- first partial Surrender. If such a partial Surrender took place during the first Contract Year, we will use the attained age of the Relevant Covered Life as of Contract issue date to set the Withdrawal Percent. Once the Withdrawal Percent has been established, it will not change for the remaining duration of your Contract. In other words, prior to the Relevant Covered Life turning 80, the longer the first partial Surrender is delayed, the higher your Withdrawal Percent shall be.
ATTAINED AGE OF RELEVANT COVERED WITHDRAWAL PERCENT LIFE ON THE CONTRACT ANNIVERSARY SINGLE LIFE JOINT/SPOUSAL PRIOR TO THE FIRST PARTIAL SURRENDER OPTION OPTION -------------------------------------------------------------------------------- 60 - 64 5.0% 4.5% 65 - 69 5.5% 5.0% 70 - 74 6.0% 5.5% 75 - 79 6.5% 6.0% 80+ 7.0% 6.5%
Your Withdrawal Percent may change based on a permissible Covered Life change. If you choose to receive less than your full Lifetime Benefit Payment in any Contract Year; you will not be able to carry remaining amounts forward to future Contract Years. IS THIS RIDER DESIGNED TO PAY YOU A DEATH BENEFIT? Yes. This Guaranteed Minimum Death Benefit guarantees that we will pay a Death Benefit equal to the greater of Premium Payments reduced for partial Surrenders or Contract Value as of the date we receive due proof of death of the Contract Owner(s) or Annuitant. Termination of this rider will result in the rescission of the Guaranteed Minimum Death Benefit and result in your Beneficiary receiving the Contract Value as of the date we receive due proof of death. Partial Surrenders will affect the Guaranteed Minimum Death Benefit as follows: A. If cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. C. For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Lifetime Benefit Payment. Please refer to the section labeled "CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT" for more information on the continuation of the Lifetime Benefit Payments by your Spouse. DOES THIS RIDER REPLACE THE STANDARD DEATH BENEFIT? Yes. CAN YOU REVOKE THIS RIDER? Yes. Anytime following the earlier of Spousal Contract continuation or the 5th Contract Year, the Contract Owner may also elect to revoke the Lifetime Withdrawal Benefits whereupon we will deduct one last pro-rated fee for this rider and only the Guaranteed Minimum Death Benefit shall continue to apply. Certain changes in the Covered Life will also constitute a revocation of the Withdrawal Benefits. A Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. In the event that this rider is terminated, whether as a result of your actions or ours, your Lifetime Benefit Payments will cease; your Payment Base will be eliminated, the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider. 36 ------------------------------------------------------------------------------- WHAT EFFECT DO PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Please refer to the discussion under "DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER?" for the effect of partial Surrenders on your Payment Base, Guaranteed Minimum Death Benefit and Lifetime Benefit Payments. You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value with any applicable charges deducted and not the Payment Base or any Lifetime Benefit Payment that you would have received under this rider. If Your Contract Value is reduced below our minimum Contract Value rules in effect on a particular Valuation Day, and your Lifetime Benefit Payment amount remains greater than zero, then we will consider this date as your Annuity Commencement Date and we will no longer accept subsequent Premium Payments. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? Inasmuch as this rider is affected only by changes to the Covered Life, only these types of changes are discussed below. We reserve the right to approve all Covered Life changes. Certain approved changes in the designation of the Covered Life may cause a re-calculation of the benefits. Covered Life changes also allow us, in our discretion, to impose investment restrictions, as described below. Any Covered Life change made within the first 6 months from the Contract Issue date will have no impact on the Payment Base or Guaranteed Minimum Death Benefit as long as each succeeding Covered Life is less than the maximum age limitation of the rider at the time of the change. The Withdrawal Percent and Lifetime Benefit Payment will thereafter change based on the age of the new Relevant Covered Life. After the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have not yet been taken, in the event that you and your Spouse become legally divorced, you may add a new Spouse to the Contract. Provided that the age limitation of the rider is not exceeded, the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will recalculate your Withdrawal Percent based on the age of the younger Covered Life as of the date of the change. Alternatively, if after the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have been taken, in the event that you and your Spouse become legally divorced, you may only remove your ex-Spouse from the Contract whereupon the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the remaining Covered Life as of the date of the change. You may not convert your Joint/Spousal Option election to a Single Life Option. In addition, after the first six months following the Contract issue date, if any Covered Life change takes place that is not due to a divorce, then we will: A. If the older Covered Life after the change is equal to or less than the maximum age limitation of the rider at the time of the change, then we will revoke the Withdrawal Benefits of this rider and continue the Guaranteed Minimum Death Benefit only. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter. B. If the older Covered Life after the change exceeds the maximum age limitation of the rider at the time of the change, or we no longer offer this rider, then the rider will terminate. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If you elected the Single Life Option and any Covered Life changes after the first 6 months from Contract Issue date, then: A. If we no longer offer this rider, we will continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change; whereupon the Withdrawal Benefit will terminate. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter; or B. If we offer this rider and: (i) if partial Surrenders have been taken prior to the first Contract Anniversary, then we will use the attained age of the oldest Covered Life as of the rider effective date to reset the Withdrawal Percent, or (ii) if partial Surrenders have not been taken prior to the first Contract Anniversary, then we will use the attained age of the older Covered Life as of the Contract Anniversary prior to the first partial Surrender to reset the Withdrawal Percent. The Payment Base will be recalculated to be the lesser of the Contract Value or the Payment Base effective on the date of the change. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change; or C. If we offer this rider and the older Covered Life after the change exceeds the maximum age limitation of this rider at the time of the change; the rider will be terminated and removed from the Contract. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. 37 ------------------------------------------------------------------------------- If the rider is no longer available for sale, we will determine the issue age limitation of the rider on a non-discriminatory basis. The following tables illustrate only some of the various changes and the resulting outcomes associated with deaths of the Contract Owner(s) or Annuitant before and after the Annuity Commencement Date. SINGLE LIFE OPTION ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving The Annuitant is living or Joint Contract Owner receives non-spousal Contract Owner deceased the Death Benefit and this rider terminates Contract Owner There is a surviving spousal The Annuitant is living or Joint Contract Owner receives Contract Owner deceased the Death Benefit and this rider can continue under Spousal Contract continuation Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Designated Owner deceased Beneficiary receives the Death Benefit Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Estate Owner or Beneficiary deceased receives the Death Benefit Annuitant Contract Owner is living There is no Contingent Contract continues, no Death Annuitant and the Contract Benefit is paid, and this rider Owner becomes the Contingent continues Annuitant Annuitant Contract Owner is living There is no Contingent Rider terminates and Contract Annuitant and the Contract Owner receives the Death Owner waives their right to Benefit become the Contingent Annuitant Annuitant Contract Owner is Living Contingent Annuitant is Living Contingent Annuitant becomes the Annuitant and the Contract and this rider continues
JOINT/SPOUSAL ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving Contract The Annuitant is living or The surviving Contract Owner Owner deceased continues the Contract and rider; we will increase the Contract Value to the Death Benefit value Contract Owner There is no surviving Contract The Spouse is the sole primary Follow Spousal Contract Owner beneficiary continuation rules for joint life elections Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates and Contract Owner or Beneficiary deceased Owner's estate receives the Death Benefit Annuitant The Contract Owner is living There is a Contingent Annuitant The Rider continues; upon the death of the last surviving Covered Life, the rider will terminate.
38 ------------------------------------------------------------------------------- CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? - SINGLE LIFE OPTION: If a Covered Life dies and the Beneficiary is the deceased Covered Life's Spouse at the time of death, such Spouse may continue the Contract. If the Spouse elects to continue the Contract and this rider, we will continue the rider with respect to all Lifetime Withdrawal Benefits at the charge that is currently being assessed for new sales of this rider at the time of continuation. We will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater. The Covered Life will be re-determined on the date of Spousal Contract continuation. If the new Covered Life is less than age 81 at the time of the Spousal Contract continuation, and the rider is still available for sale, the Payment Base and the Guaranteed Minimum Death Benefit will be set equal to the Contract Value, the Withdrawal Percent will be recalculated based on the age of the older remaining Covered Life on the effective date of the Spousal Contract continuation. If the new Covered Life is 81 or older at the time of the Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will be equal to the Contract Value. If we are no longer offering this rider at the time of Spousal Contract continuation, we will revoke the Lifetime Withdrawal Benefit, the Guaranteed Minimum Death Benefit will be set equal to the Contract Value and the rider charge will no longer be assessed. - JOINT/SPOUSAL OPTION: This rider is designed to facilitate the continuation of your rights under this rider by your Spouse through the inclusion of a Joint/Spousal Option. If a Covered Life dies and the Spouse elects to continue the Contract, we will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater and we will continue the rider with respect to all benefits at the current rider charge. The benefits will be reset as follows: - The Payment Base will be equal to the greater of Contract Value or the Payment Base on the Spousal Contract continuation date; - The Guaranteed Minimum Death Benefit will be equal to the Contract Value on the Spousal Contract continuation date; - The Withdrawal Percent will remain at the current percentage if partial Surrenders have commenced; otherwise the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Contract Anniversary prior to the first partial Surrender; and - The Lifetime Benefit Payment will be recalculated to equal the Withdrawal Percent multiplied by the greater of the Contract Value or Payment Base on the date of Spousal Contract continuation. The remaining Covered Life can not name a new Owner of the Contract. Any new beneficiary that is added to the Contract will not be taken into consideration as a Covered Life. The rider will then terminate upon the death of the remaining Covered Life. If the Spouse elects to continue the Contract and revoke the Lifetime Withdrawal Benefit, we will assess the charge on the revocation date and it will no longer be assessed thereafter. The Covered Life will be re-determined on the date of Spousal Contract continuation for purposes of the Guaranteed Minimum Death Benefit. If the age of the Covered Life is greater than the age limitation of the rider at the time of Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will equal the Contract Value. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? If you elect to annuitize your Contract prior to reaching the Annuity Commencement Date, you may only annuitize your Contract Value and will not be able to elect any of the annuitization options allowed under this rider. If your Contract reaches the Annuity Commencement Date, the Contract must be annuitized unless we agree to extend the Annuity Commencement Date, in our sole discretion. In this circumstance, the Contract may be annuitized under our standard annuitization rules or, alternatively, under the rules applicable when the Contract Value is below our minimum Contract Value then in effect. By annuitizing your Contract and choosing an income option, you will be exchanging your accumulated savings and Death Benefits for a guaranteed income stream. If your Contract Value is reduced below our minimum Contract Value then in effect, your Annuity Commencement Date will be attained and we will no longer accept subsequent Premium Payments. We will then issue you a payout annuity. You may elect the frequency of your payments from those offered by us at such time, but will not be less frequently than annually. - SINGLE LIFE OPTION: If you have elected the Single Life Option, we will issue you a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the Covered Life determined at Annuity Commencement Date. We treat the Covered Life as the Annuitant for this payout option. If there is more than one Covered Life, then the lifetime portion will be based on both Covered Lives. The Covered Lives will be the Annuitant and joint Annuitant for this payout option. The lifetime portion will terminate on the first death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit under this rider. 39 ------------------------------------------------------------------------------- If the older Annuitant is age 59 or younger, we will automatically defer the date the payments begin until the anniversary after the older Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a minimum number of years. If the Annuitant is alive and the older Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of any Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of your Withdrawal Percent or 5%. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. This option may not be available if the Contract is issued to qualify under Code Section 401, 403, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. - JOINT/SPOUSAL OPTION: If you have elected the Joint/Spousal Option and both Spouses are alive, we will issue you a Fixed Joint & Survivor Lifetime and Period Certain Payout. If only one Spouse is alive, we will issue a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the surviving Covered Life. The Covered Lives will be the Annuitant and Joint Annuitant for this payout option. The lifetime benefit will terminate on the last death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit. If the younger Annuitant is alive and age 59 or younger, we will automatically defer the date that payments begin until the anniversary after the younger Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the death of the last surviving Annuitant or a period certain. If the Annuitant is alive and the younger Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of the last surviving Annuitant or a minimum number of years. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of the last Surviving Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of Withdrawal Percent or 4.5%. Therefore, the higher your then remaining Guaranteed Minimum Death Benefit is at the time of annuitization, the longer the time period you will be entitled to receive annuitization payments. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of the last surviving Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. These options may not be available if the Contract is issued to qualify under Code Sections 401, 403, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? Yes. We reserve the right to limit the Sub-Accounts into which you may allocate your Contract Value on and after the effective date of a Covered Life change. We may prohibit investment in any Sub-Account; require you to allocate your Contract Value in one of a number of asset allocation models, investment programs or fund of funds Sub-Accounts. Any transfers required to reallocate Contract Value will not be used in determining the number of transfers allowed during a Contract Year. If the restrictions are violated, the Withdrawal Benefit will be revoked but the Guaranteed Minimum Death Benefit will continue to apply. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? Yes. We reserve the right to require our approval on all subsequent Premium Payments received after the first twelve months. We will not accept any subsequent Premium Payment which brings the total of such cumulative subsequent Premium Payments to in excess of $100,000 without prior approval. Following your Annuity Commencement Date, we will no longer accept subsequent Premium Payments. This restriction is not currently enforced. 40 ------------------------------------------------------------------------------- CAN WE AGGREGATE CONTRACTS? Yes. For purposes of determining the Payment Base and Premium Payment limits, we reserve the right to treat as one all deferred variable annuity Contracts issued by us where you have elected any optional withdrawal benefit rider. If we elect to aggregate Contracts, we will change the period over which we measure Surrenders against future Lifetime Benefit Payments. We will treat the effective date of our aggregation election until the end of the applicable calendar year as a Contract Year for the purposes of the Lifetime Benefit Payment limit. A pro-rata rider fee will be taken at the end of that calendar year. After the first calendar year following aggregation, the Lifetime Benefit Payment limits will be aggregated and will thereafter be set on a calendar year (i.e., January 1 Contract Anniversary) basis. The rider fee then in effect will be taken at the end of each new Contract Anniversary. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - The benefits under this rider cannot be directly or indirectly assigned, collateralized, pledged or securitized in any way. Any such actions will invalidate this rider and allow us to terminate the rider. - Your annual Lifetime Benefit Payment may fluctuate based on changes in the Payment Base and Contract Value. The Payment Base is sensitive to partial Surrenders in excess of the Lifetime Benefit Payment/Threshold. It is therefore possible that Surrenders and subsequent Premium Payments within the same Contract Year, whether or not equal to one another, can result in lower Lifetime Benefit Payments. - Annuitizing your Contract, whether voluntary or not, will impact and possibly eliminate these "lifetime" benefits. First, you may no longer invest additional Premium Payments. Second, any Death Benefit, whether standard or optional, will immediately terminate. Third, any Guaranteed Minimum Withdrawal Benefit guarantees you elect may end. In cases where you are required to annuitize (because you reach the Annuity Commencement Date or your Guaranteed Minimum Withdrawal Benefit requires annuitization because the Contract Value has fallen below our minimum Contract Value then in effect), lifetime annuitization payments may equal (or possibly exceed) Lifetime Benefit Payments. However, where you elect to annuitize before a required Annuity Commencement Date, lifetime annuitization payments might be less than the income guaranteed by your Guaranteed Minimum Withdrawal Benefit. - Even though this rider is designed to provide "living benefits," you should not assume that you will necessarily receive "payments for life" if you have violated any of the terms of this rider. - The amount of the Withdrawal Percent used to compute your Lifetime Benefit Payment is frozen based on the date of the first partial Surrender. - The determination of the "Relevant" Covered Life is established by the Company and is critical to the determination of many important benefits such as the Withdrawal Percent used to set Lifetime Benefit Payments. Applicants should confirm this determination and be sure they fully appreciate its importance before investing. - We may terminate this rider post-election based on your violation of benefit rules and may otherwise withdraw this rider for new sales at any time. - Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use. - You may select this rider only at the time of sale and once you do so, you may not add any other optional withdrawal benefits during the time you own this Contract. If you elect this rider you will not be eligible for the standard Death Benefits or be able to elect optional riders other than MAV Plus. - When the Single Life Option is chosen, your Spouse may find continuation of this rider to be unavailable or unattractive after the death of the Covered Life. Continuation of the benefits available in this optional rider is dependent upon its availability at the time of death of the first Covered Life and will be subject to then prevailing charges. - The Joint/Spousal Option provides that if you and your Spouse are no longer married for any reason other than death, the removal and replacement of your Spouse will constitute a Covered Life change. This can result in the resetting of all benefits under this rider. - Certain Covered Life changes may result in a reduction, recalculation or forfeiture of benefits. - This rider may not be suitable if a Covered Life is under attained age 60. - The purchase of an optional withdrawal benefit feature may not be appropriate for contracts owned by certain types of non-natural entities, including Charitable Trusts. Because many non-natural entities are required to make certain periodic distributions and 41 ------------------------------------------------------------------------------- those amounts may be different than the withdrawal amounts permitted by the optional withdrawal benefit feature, you may wish to consult with your tax advisor to help determine the appropriateness of this benefit. C. THE HARTFORD'S LIFETIME INCOME BUILDER II OBJECTIVE Protect your investment from poor market performance through potential annual automatic Payment Base increases, provide longevity protection through Lifetime Benefit Payments, and ensure a Death Benefit equivalent to the greater of Premium Payments reduced for partial Surrenders or Contract Value. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider provides two separate but bundled benefits that help achieve this goal. In other words, this rider is a guarantee that you can access two ways: - LIFETIME WITHDRAWAL BENEFIT. This rider provides a series of Lifetime Benefit Payments payable in each Contract Year following the Relevant Covered Life's 60th birthday, until the first death of any Covered Life ("Single Life Option") or until the second death of any Covered Life ("Joint/Spousal Option"). Lifetime Benefit Payments are maximum amounts that can be withdrawn each year based on the higher of your Payment Base or Contract Value on each Contract Anniversary, as adjusted by annual Payment Base increases, multiplied by the applicable Withdrawal Percent. In an Eligible Withdrawal Year, your initial Lifetime Benefit Payment is equal to the Payment Base multiplied by the applicable Withdrawal Percentage. Payments may continue even if the Contract Value has been reduced to below our minimum Contract Value. The Withdrawal Percent varies based upon the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender, and the survivor option chosen. Any partial Surrender taken prior to the Contract Anniversary following the Relevant Covered Life's 60th birthday will reduce the Payment Base and your future Lifetime Benefit Payment. Such partial Surrender may potentially eliminate your Lifetime Benefit Withdrawal Guarantee. - GUARANTEED MINIMUM DEATH BENEFIT. This guaranteed minimum Death Benefit provides a Death Benefit equal to the greater of Premium Payments reduced for Partial Surrenders or Contract Value as of the date due proof of death is received for any Contract Owner or Annuitant. PARTIAL SURRENDERS WILL REDUCE OR ELIMINATE THE GUARANTEED MINIMUM DEATH BENEFIT. THIS GUARANTEED MINIMUM DEATH BENEFIT REPLACES THE STANDARD DEATH BENEFITS PROVIDED UNDER THIS CONTRACT. See Optional Benefit Comparisons in Appendix B. WHEN CAN YOU BUY THIS RIDER? Subject to State approval of The Hartford's Lifetime Income Builder Portfolios and The Hartford's Lifetime Income Builder Selects, this rider is closed to new investors. If available, you may elect this rider at the time of purchase, or may exchange the rider if you are eligible to participate in a designated company sponsored exchange program described in Appendix D. The benefits comprising this rider may not be purchased separately. This rider may not be available through all Registered Representatives and may be subject to additional restrictions set by your Registered Representative or us. We reserve the right to withdraw this rider at any time. When you buy this rider, you must provide us with the names and ages of the Owner, any joint Owner, Annuitant and Beneficiary. A Covered Life must be a living person. If you choose the Joint/Spousal Option, we reserve the right to (a) prohibit non-natural entities from being designated as an Owner, (b) prohibit anyone other than your Spouse from being a joint Owner; and (c) impose other designation restrictions from time to time. For the Single Life Option, the Covered Life is most often the same as the Contract Owner and joint Owner (which could be two different people). In the Joint/Spousal Option, the Covered Life is most often the Contract Owner and his or her Spouse, as joint Owner or Beneficiary. The Relevant Covered Life will be one factor used to establish your Withdrawal Percent. When the Single Life Option is chosen, we use the older Covered Life as the Relevant Covered Life; and when the Joint/Spousal Option is chosen, we use the younger Covered Life as the Relevant Covered Life. The maximum age of any Contract Owner or Annuitant when electing this rider is 75. When the Joint/Spousal Option is chosen, the Beneficiary also must be younger than age 76. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any rider other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The fee for this rider is based on your then current Payment Base (not your Contract Value) as of each Contract Anniversary. This charge will automatically be deducted from your Contract Value on your Contract Anniversary AFTER your Anniversary Value and 42 ------------------------------------------------------------------------------- Payment Base have been computed and prior to all other financial transactions. In the event of a full Surrender, a prorated charge will be deducted from your Surrender Value. The charge for this rider will be withdrawn from each Sub-Account and the Fixed Accumulation Feature in the same proportion that the value of each Sub-Account bears to the total Contract Value. Except as otherwise provided below, we will continue to deduct this charge until we begin to make Annuity Payouts. The rider charge may limit access to the Fixed Accumulation Feature in certain states. We reserve the right to increase the charge for this rider up to a maximum rate of 0.75% any time on or after the fifth anniversary of electing this rider or five years from the date from which we last notified you of a fee increase, whichever is later. The fee increase will only apply if you are eligible for future automatic Payment Base increases. Any future fee increase will be based on the charge that we are then currently charging other customers who have not previously elected this rider. If we cease sales of this rider, we will predetermine the rider charge on a non-discriminatory basis. Fee increases will not apply if (a) the age of the Relevant Covered Life is 80 or older; or (b) you notify us in writing of your election to permanently waive automatic Payment Base increases. This fee may not be the same as the fee that we charge new purchasers or the fee we set before we cease offering this rider. In no event will this charge exceed 0.75% annually. Subject to the foregoing limitation, we also reserve the right to charge a different fee for this rider to any new Contract Owners as a result of a change of Covered Life. Unless exempt, we will automatically deduct rider fees, as they may be increased from time to time. We may offer a lower fee to customers who agree to participate in any asset allocation models, investment programs, or fund-of-funds we may designate from time to time. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. Your initial Payment Base equals your initial Premium Payment. Your Payment Base will fluctuate based on subsequent Premium Payments and partial Surrenders as well as automatic Payment Base increases. Your Payment Base can never be less than $0 or more than $5 million. Any activities that would otherwise increase the Payment Base above this ceiling will not be included for any benefits under this rider. The Payment Base will be recalculated based on certain changes in Covered Lives. - Automatic Payment Base increases. Your Payment Base may fluctuate based on annual "automatic Payment Base increases." You will be qualified for annual automatic Payment Base increases commencing on your first Contract Anniversary. Automatic Payment Base increases will cease upon the earlier of the Annuity Commencement Date or the Contract Anniversary immediately following the Relevant Covered Life's attained age of 80. Automatic Payment Base increases are based on your then current Anniversary Value (prior to the rider charge being taken) divided by your Maximum Contract Value and then reduced by 1. In no event will this factor be less than 0% or greater than 10%. Automatic Payment Base increases will not take place if the investment performance of your Sub-Accounts is neutral or negative. - Subsequent Premium Payments increase your Payment Base on a dollar-for-dollar basis. - Partial Surrenders may trigger a recalculation of the Payment Base depending on (a) whether the partial Surrender takes place prior or during an Eligible Withdrawal Year, and (b) if the cumulative amount of all partial Surrenders during any Contract Year exceeds the applicable Threshold, as discussed below: A. If cumulative partial Surrenders taken during any Contract Year and prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Payment Base on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), then we will reduce the Payment Base on a (i) dollar-for-dollar basis up to the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will not reduce the Payment Base. C. For any partial Surrender that first causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Payment Base on a proportionate basis for the amount in excess of the Lifetime Benefit Payment. Partial Surrenders taken during any Contract Year that cumulatively exceed the Annual Withdrawal Amount but do not exceed the Lifetime Benefit Payment will be free of any applicable CDSC. Partial Surrenders will diminish the Guaranteed Minimum Death Benefit. 43 ------------------------------------------------------------------------------- See Examples 7, 8 and 10-14 under The Hartford's Lifetime Income Builder II. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? Yes. However, your Withdrawal Percentage and therefore the amount of your Lifetime Benefit Payment, is dependent upon when you take your first partial Surrender. For instance: - If you take your first partial Surrender before an Eligible Withdrawal Year, your Withdrawal Percent will never increase above 5% for Single Life Option or 4.5% for Joint/Spousal option for the remaining duration of your Contract. - If you take your first partial Surrender during an Eligible Withdrawal Year, your Withdrawal Percent will never increase above the Withdrawal Percent corresponding with the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender. If such a partial Surrender took place during the first Contract Year, we will use the attained age of the Relevant Covered Life as of Contract issuance to set the Withdrawal Percent. Once the Withdrawal Percent has been established, it will not change for the remaining duration of your Contract. In other words, prior to the Relevant Covered Life turning 80, the longer the first partial Surrender is delayed, the higher your Withdrawal Percent shall be.
ATTAINED AGE OF RELEVANT COVERED WITHDRAWAL PERCENT LIFE ON THE CONTRACT ANNIVERSARY SINGLE LIFE JOINT/SPOUSAL PRIOR TO THE FIRST PARTIAL SURRENDER OPTION OPTION -------------------------------------------------------------------------------- 60 - 64 5.0% 4.5% 65 - 69 5.5% 5.0% 70 - 74 6.0% 5.5% 75 - 79 6.5% 6.0% 80+ 7.0% 6.5%
Your Withdrawal Percent may change based on a permissible Covered Life change. If you choose to receive less than your full Lifetime Benefit Payment in any Contract Year, you will not be able to carry remaining amounts forward to future Contract Years. See Examples 1-6 and 11-14 under The Hartford's Lifetime Income Builder II. IS THIS RIDER DESIGNED TO PAY YOU DEATH BENEFITS? Yes. This Guaranteed Minimum Death Benefit guarantees that we will pay a Death Benefit equal to the greater of Premium Payments reduced for partial Surrenders or Contract Value as of the date we receive due proof of death of the Contract Owner(s) or Annuitant. Termination of this rider will result in the rescission of the Guaranteed Minimum Death Benefit and result in your Beneficiary receiving the Contract Value as of the date we receive due proof of death. Partial Surrenders will affect the Guaranteed Minimum Death Benefit as follows: A. If cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), then we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. C. For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Lifetime Benefit Payment. Please refer to the section labeled "CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT" for more information on the continuation of the Lifetime Benefit Payments by your Spouse. See Examples 9, 10 and under The Hartford's Lifetime Income Builder II. DOES THIS RIDER REPLACE THE STANDARD DEATH BENEFIT? Yes. CAN YOU REVOKE THIS RIDER? No. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. 44 ------------------------------------------------------------------------------- WHAT EFFECT DO PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Please refer to "DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER?" for the effect of partial Surrenders on your Payment Base, Guaranteed Minimum Death Benefit and Lifetime Benefit Payments. You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value with any applicable charges deducted and not the Payment Base or any Lifetime Benefit Payment that you would have received under this rider. If Your Contract Value is reduced below our minimum Contract Value rules in effect on a particular Valuation Day, and your Lifetime Benefit Payment amount remains greater than zero, then we will consider this date as your Annuity Commencement Date and we will no longer accept subsequent Premium Payments. See Examples 7, 8 and 10-14 under The Hartford's Lifetime Income Builder II. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? Inasmuch as this rider is affected only by changes to the Covered Life, only these types of changes are discussed below. We reserve the right to approve all Covered Life changes. Certain approved changes in the designation of the Covered Life may cause a re-calculation of the benefits. Covered Life changes also allow us, in our discretion, to impose investment restrictions, as described below. Any Covered Life change made within the first 6 months from the Contract Issue date will have no impact on the Payment Base or Guaranteed Minimum Death Benefit as long as each succeeding Covered Life is less than the maximum age limitation of the rider at the time of the change. The Withdrawal Percent and Lifetime Benefit Payment will thereafter change based on the age of the new relevant Covered Life. After the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have not yet been taken, in the event that you and your Spouse become legally divorced, you may add a new Spouse to the Contract. Provided that the age limitation of the rider is not exceeded, the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the younger Covered Life as of the date of the change. Alternatively, if after the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and Surrenders have been taken, in the event that you and your Spouse become legally divorced, you may only remove your ex-Spouse from the Contract whereupon the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the remaining Covered Life as of the date of the change. You may not convert your Joint/Spousal Option election to a Single Life Option. In addition, after the first six months following the Contract issue date, if any Covered Life change takes place that is not due to a divorce, then: A. If the older Covered Life after the change is equal to or less than the maximum age limitation of the rider at the time of the change, then we will revoke the Withdrawal Benefits of this rider and continue the Guaranteed Minimum Death Benefit only. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter. B. If the older Covered Life after the change exceeds the maximum age limitation of the rider at the time of the change, or we no longer offer this rider, then the rider will terminate. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If you elected the Single Life Option and any Covered Life changes after the first 6 months from Contract Issue date, then we will: A. If we no longer offer this rider, we will continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change; whereupon the Withdrawal Benefit will terminate. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter; or B. If we offer this rider and: (i) if partial Surrenders have been taken prior to the first Contract Anniversary, then we will use the attained age of the oldest Covered Life as of the rider effective date to reset the Withdrawal Percent, or (ii) if partial Surrenders have not been taken prior to the first Contract Anniversary, then we will use the attained age of the older Covered Life as of the Contract Anniversary prior to the first partial Surrender to reset the Withdrawal Percent. The Payment Base will be recalculated to be the lesser of the Contract Value or the Payment Base effective on the date of the change. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change. The Maximum Contract Value will be recalculated to equal the Contract Value on the date of the change; or C. If we offer this rider and the older Covered Life after the change exceeds the maximum age limitation of this rider at the time of the change; the rider will be terminated and removed from the Contract. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. 45 ------------------------------------------------------------------------------- If the rider is no longer available for sale, we will determine the issue age limitation of the rider on a non-discriminatory basis. The following tables illustrate only some of the various changes and the resulting outcomes associated with deaths of the Contract Owner(s) or Annuitant before and after the Annuity Commencement Date. SINGLE LIFE OPTION ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving The Annuitant is living or Joint Contract Owner receives non-spousal Contract Owner deceased the Death Benefit and this rider terminates Contract Owner There is a surviving spousal The Annuitant is living or Joint Contract Owner receives Contract Owner deceased the Death Benefit and this rider can continue under Spousal Contract continuation Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Designated Owner deceased Beneficiary receives the Death Benefit Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Estate Owner or Beneficiary deceased receives the Death Benefit Annuitant Contract Owner is living There is no Contingent Contract continues, no Death Annuitant and the Contract Benefit is paid, and this rider Owner becomes the Contingent continues Annuitant Annuitant Contract Owner is living There is no Contingent Rider terminates and Contract Annuitant and the Contract Owner receives the Death Owner waives their right to Benefit become the Contingent Annuitant Annuitant Contract Owner is Living Contingent Annuitant is Living Contingent Annuitant becomes the Annuitant and the Contract and this rider continues
JOINT/SPOUSAL ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving Contract The Annuitant is living or The surviving Contract Owner Owner deceased continues the Contract and rider; we will increase the Contract Value to the Death Benefit value Contract Owner There is no surviving Contract The Spouse is the sole primary Follow Spousal Contract Owner beneficiary continuation rules for joint life elections Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates and Contract Owner or Beneficiary deceased Owner's estate receives the Death Benefit Annuitant The Contract Owner is living There is a Contingent Annuitant The Rider continues; upon the death of the last surviving Covered Life, the rider will terminate.
CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? - SINGLE LIFE OPTION: If a Covered Life dies and the Beneficiary is the deceased Covered Life's Spouse at the time of death, such Spouse may continue the Contract. If the Spouse elects to continue the Contract and this rider, we will continue the rider with respect to all Lifetime 46 ------------------------------------------------------------------------------- Withdrawal Benefits at the charge that is currently being assessed for new sales at the time of continuation. We will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater. The Covered Life will be re-determined on the date of Spousal Contract continuation. If the new Covered Life is less than age 81 at the time of the Spousal Contract continuation, and the rider is still available for sale, the Payment Base and the Guaranteed Minimum Death Benefit will be set equal to the Contract Value, the Withdrawal Percent will be recalculated based on the age of the older remaining Covered Life on the effective date of the Spousal Contract continuation. If the new Covered Life is 81 or older at the time of the Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will be equal to the Contract Value. If we are no longer offering this rider at the time of Spousal Contract continuation, we will revoke the Lifetime Withdrawal Benefit, the Guaranteed Minimum Death Benefit will be set equal to the Contract Value and the rider charge will no longer be assessed. - JOINT/SPOUSAL OPTION: This rider is designed to facilitate the continuation of your rights under this rider by your Spouse through the inclusion of a Joint/Spousal Option. If a Covered Life dies and the Spouse elects to continue the Contract, we will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater and we will continue the rider with respect to all benefits at the current rider charge. The benefits will be reset as follows: - The Payment Base will be equal to the greater of Contract Value or the Payment Base on the Spousal Contract continuation date - The Guaranteed Minimum Death Benefit will be equal to the Contract Value on the Spousal Contract continuation date - The Withdrawal Percent will remain at the current percentage if partial Surrenders have commenced; otherwise the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Contract Anniversary prior to the first partial Surrender - The Lifetime Benefit Payment will be recalculated to equal the Withdrawal Percent multiplied by the greater of the Contract Value or Payment Base on the date of Spousal Contract continuation. The remaining Covered Life can not name a new owner on the Contract. Any new beneficiary that is added to the Contract will not be taken into consideration as a Covered Life. The rider will terminate upon the death of the remaining Covered Life. If the Spouse elects to continue the Contract and revoke the Lifetime Withdrawal Benefit, we will assess the charge on the revocation date and it will no longer be assessed thereafter. The Covered Life will be re-determined on the date of Spousal Contract continuation for purposes of the Guaranteed Minimum Death Benefit. If the Covered Life is greater than the age limitation of the rider at the time of Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will equal the Contract Value. See Example 17 under The Hartford's Lifetime Income Builder II. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? If you elect to annuitize your Contract prior to reaching the Annuity Commencement Date, you may only annuitize your Contract Value and will not be able to elect any of the annuitization options allowed under this rider. If your Contract reaches the Annuity Commencement Date, the Contract must be annuitized unless we agree to extend the Annuity Commencement Date, in our sole discretion. In this circumstance, the Contract may be annuitized under our standard annuitization rules or, alternatively, under the rules applicable when the Contract Value is below our minimum Contract Value then in effect. If your Contract Value is reduced below our minimum Contract Value then in effect, your Annuity Commencement Date will be attained and we will no longer accept subsequent Premium Payments. We will then issue you a payout annuity. You may elect the frequency of your payments from those offered by us at such time, but will not be less frequently than annually. - SINGLE LIFE OPTION: If you have elected the Single Life Option, we will issue you a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the Covered Life determined at Annuity Commencement Date. We treat the Covered Life as the Annuitant for this payout option. If there is more than one Covered Life, then the lifetime portion will be based on both Covered Lives. The Covered Lives will be the Annuitant and joint Annuitant for this payout option. The lifetime portion will terminate on the first death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit under this rider. If the older Annuitant is age 59 or younger, we will automatically defer the date the payments begin until the anniversary after the older Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a minimum number of years. If the Annuitant and joint Annuitant are alive and the older Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain. 47 ------------------------------------------------------------------------------- The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of any Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or 5%. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. This option may not be available if the Contract is issued to qualify under Code Sections 401, 403, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. - JOINT/SPOUSAL OPTION: If you have elected the Joint/Spousal Option and both Spouses are alive, we will issue you a Fixed Joint & Survivor Lifetime and Period Certain Payout. If only one Spouse is alive, we will issue a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the surviving Covered Life. The Covered Lives will be the Annuitant and Joint Annuitant for this payout option. The lifetime benefit will terminate on the last death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit. If the younger Annuitant is alive and age 59 or younger, we will automatically defer the date that payments begin until the anniversary after the younger Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the death of the last surviving Annuitant or a period certain. If the Annuitant is alive and the younger Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of the last surviving Annuitant or a minimum number of years. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of the last Surviving Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or 4.5%. Therefore, the higher your then remaining Guaranteed Minimum Death Benefit is at the time of annuitization, the longer the time period you will be entitled to receive annuitization payments. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of the last surviving Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. These options may not be available if the Contract is issued to qualify under Code Sections 401, 403, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? Yes. We reserve the right to limit the Sub-Accounts into which you may allocate your Contract Value on and after the effective date of any Covered Life change. If there is a Covered Life change, we may prohibit investment in any Sub-Account; require you to allocate your Contract Value in one of a number of asset allocation models, investment programs or fund of funds Sub-Accounts. Any transfers required to reallocate Contract Value will not be used in determining the number of transfers allowed during a Contract Year. If the restrictions are violated, the Withdrawal Benefit will be revoked but the Guaranteed Minimum Death Benefit will continue to apply. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? Yes. We reserve the right to require our approval on all subsequent Premium Payments received after the first twelve months. We will not accept any subsequent Premium Payment which brings the total of such cumulative subsequent Premium Payments to in excess of $100,000 without prior approval. Following your Annuity Commencement Date, we will no longer accept subsequent Premium Payments. This restriction is not currently enforced. See Examples 9 and 10 under The Hartford's Lifetime Income Builder II. CAN WE AGGREGATE CONTRACTS? Yes. For purposes of determining the Payment Base and Premium Payment limits, we reserve the right to treat as one all deferred variable annuity Contracts issued by us where you have elected any optional withdrawal benefit rider. If we elect to aggregate Contracts, we will change the period over which we measure Surrenders against future Lifetime Benefit Payments. We will treat the effective date of our aggregation election until the end of the applicable calendar year as a Contract Year for the purposes of the Lifetime Benefit Payment limit. A pro-rata rider fee will be taken at the end of that calendar year. After the first calendar year following aggregation, the Lifetime Benefit Payment limits will be aggregated and will thereafter be set on a calendar 48 ------------------------------------------------------------------------------- year (i.e., January 1 Contract Anniversary) basis. The rider fee then in effect will be taken at the end of each new Contract Anniversary. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - The benefits under this rider cannot be directly or indirectly assigned, collateralized, pledged or securitized in any way. Any such actions will invalidate this rider and allow us to terminate the rider. - Your annual Lifetime Benefit Payments may fluctuate based on changes in the Payment Base and Contract Value. The Payment Base is sensitive to partial Surrenders in excess of the Lifetime Benefit Payment/Threshold. It is therefore possible that Surrenders and subsequent Premium Payments within the same Contract Year, whether or not equal to one another, can result in lower Lifetime Benefit Payments. - Annuitizing your Contract, whether voluntary or not, will impact and possibly eliminate these "lifetime" benefits. First, you may no longer invest additional Premium Payments. Second, any Death Benefit, whether standard or optional, will immediately terminate. Third, any Guaranteed Minimum Withdrawal Benefit guarantees you elect may end. In cases where you are required to annuitize (because you reach the Annuity Commencement Date or your Guaranteed Minimum Withdrawal Benefit requires annuitization because the Contract Value has fallen below our minimum Contract Value then in effect), you will forfeit automatic Payment Base increases (if applicable) and lifetime annuitization payments may equal (or possibly exceed) Lifetime Benefit Payments. However, where you elect to annuitize before a required Annuity Commencement Date, lifetime annuitization payments might be less than the income guaranteed by your Guaranteed Minimum Withdrawal Benefit. - Even though this rider is designed to provide "living benefits," you should not assume that you will necessarily receive "payments for life" if you have violated any of the terms of this rider. - The amount of the Withdrawal Percent used to compute your Lifetime Benefit Payment is frozen based on the date of the first partial Surrender. - The determination of the "Relevant" Covered Life is established by the Company and is critical to the determination of many important benefits such as the Withdrawal Percent used to set Lifetime Benefit Payments. Applicants should confirm this determination and be sure they fully appreciate its importance before investing. - We may terminate this rider post-election based on your violation of benefit rules and may otherwise withdraw this rider for new sales at any time. In the event that this rider is terminated by us, your Lifetime Benefit Payments will cease; your Payment Base, including any automatic Payment Base increases will be eliminated, the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider. - Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use. - You may select this rider only at the time of sale and once you do so, you may not add any other optional withdrawal benefits during the time you own this Contract. If you elect this rider you will not be eligible for the standard Death Benefits or able to elect optional riders other than MAV Plus. - When the Single Life Option is chosen, Spouses may find continuation of this rider to be unavailable or unattractive after the death of the Contract Owner. Continuation of the benefits available in this optional rider is dependent upon its availability at the time of death of the first Covered Life and will be subject to then prevailing charges. - The Joint/Spousal Option provides that if you and your Spouse are no longer married for any reason other than death, the removal and replacement of your Spouse will constitute a Covered Life change. This can result in the resetting of all benefits under this rider. - Certain Covered Life changes may result in a reduction, recalculation or forfeiture of benefits. - This rider may not be suitable if a Covered Life is under attained age 60. - Annuity pay-out options available subsequent to the Annuity Commencement Date may not necessarily provide a stream of income for your lifetime and may be less than Lifetime Benefit Payments. - The fee for this rider may increase if and when automatic Payment Base increases take place. There are no assurances as to the fee we will be charging at the time of each Payment Base increase. This is subject to the maximum fee disclosed in the Synopsis and this section. - The purchase of an optional withdrawal benefit feature may not be appropriate for contracts owned by certain types of non-natural entities, including Charitable Trusts. Because many non-natural entities are required to make certain periodic distributions and those amounts may be different than the withdrawal amounts permitted by the optional withdrawal benefit feature, you may wish to consult with your tax advisor to help determine the appropriateness of this benefit. 49 ------------------------------------------------------------------------------- D. THE HARTFORD'S PRINCIPAL FIRST OBJECTIVE Protect your investment from poor market performance through annual Benefit Payments until the Benefit Amount is reduced to zero. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider protects your investment by guaranteeing Benefit Payments until your Benefit Amount, rather than your Contract Value, has been exhausted. You may also elect "step-ups" that reset your Benefit Amount to the then prevailing Contract Value. See Optional Benefit Comparisons in Appendix B. You or your Spouse (if Spousal Contract continuation has been chosen) may elect to step-up your Benefit Amount following the 5th Contract Year that you added this rider to your Contract and again on each fifth anniversary from the last time you elected to step-up your Benefit Amount (or upon Spousal Contract continuation, whichever is earlier)(these dates are called "election dates" in this section). Your Benefit Amount will then become the Contract Value as of the close of business on the Valuation Date that you properly made this election. Each time that you exercise step-up rights, your Benefit Payment will be reset to 7% of the new Benefit Amount, but will never be less than your then existing Benefit Payment. You must follow certain requirements to make this election: - We will accept requests for a step-up in writing, verbally or electronically, if available. - Written elections must be submitted using the forms we provide. For telephonic and Internet elections, if available, you must authenticate your identity and acknowledge your understanding of the implications of making this election. We are not responsible for lost investment opportunities associated with elections that are not in good order and for relying on the genuiness of any election. - We will not accept any election request prior to an election date. You may not post-date your election. - If an election form is received in good order on or after an election date, the step-up will occur as of the close of business on the Valuation Day that the request is received by us at our Administrative Office. We reserve the right to require you to elect step-ups only on Contract Anniversaries. - We will not honor any election request if your Contract Value is less than your Benefit Amount effective as of the step-up effective date. - Your election is irrevocable. This means that if your Contract Value increases after your step-up, you can not ask us to reset your Benefit Amount again until your next election date. The fee for this rider may also change when you make this election and will remain in effect until your next election, if any. WHEN CAN YOU BUY THIS RIDER? You may elect this benefit at any time, provided we are still offering this rider for new sales. Once elected, your choice is irrevocable. If not elected at issue, Plus Contract owners must wait until after the first Contract Anniversary before purchasing this benefit. The maximum age of any Contract Owner or Annuitant when electing this rider is 85 for non-qualified plans and age 80 for IRA or qualified plans. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any riders other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The annual charge for this rider is based on your daily Sub-Account Value and is deducted daily. The charge continues to be deducted until we begin to make Annuity Payouts. We will recalculate the charge each time that you step-up your Benefit Amount. The fee at the time of step-up will be the charge that we are then currently charging other customers who have previously elected this rider and have elected to step-up. This fee may not be the same as, but will not be more than, the fee that we charge new purchasers or the fee we set before we cease offering this rider. If we cease sales of this rider, we will predetermine the rider charge on a non-discriminatory basis. Before you decide to exercise your step-up privileges, you should request a current prospectus which will describe the then current charge effective upon exercising step-up rights. We also reserve the right to increase the charge for this rider up to a maximum rate of 0.75% any time on or after the fifth anniversary of electing this rider or five years from the date from which we last notified you of a fee increase, whichever is later. The fee increase will only apply if you are eligible for future step-ups. Subject to the foregoing limitation, we also reserve the right to charge a different fee for this rider to any new Contract Owners as a result of a change of ownership of this Contract. 50 ------------------------------------------------------------------------------- DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. If elected at the time of Contract issuance, your initial Benefit Amount is your initial Premium Payment. If elected after the Contract has been issued, your initial Benefit Amount will be the based on your Contract Value at the time the rider is elected. Any time after the 5th Contract Year that this rider has been in effect and thereafter on each fifth anniversary of the last step-up (or sooner upon Spousal Contract continuation); you (or your Spouse if Spousal Contract continuation rights have been elected) may elect to step-up the Benefit Amount to the Contract Value. Your Benefit Amount will fluctuate based on subsequent Premium Payments or partial Surrenders. Partial Surrenders in excess of your Benefit Payments may also trigger a recalculation of the Benefit Amount and future Benefit Payments. Your Benefit Amount can never be more than $5 million. You cannot elect the step-up privilege if your then current Benefit Amount is higher than your Contract Value on step-up dates. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? No. You can continue to take Benefit Payments until the Benefit Amount has been depleted. Once the initial Benefit Amount has been determined, we calculate the Benefit Payment. The maximum Benefit Payment is 7% of your Benefit Amount on rider effective date, or if more recently, the last date on which a step up was elected, or the Benefit Amount was reduced due to a partial Surrender exceeding the Benefit Payment. Benefit Payments can begin at any time and can be taken on any schedule that you request. Benefit Payments are non-cumulative, which means that your Benefit Payment will not increase in the future if you fail to take your full Benefit Payment for the current year. For example, if you do not take 7% one year, you may not take more than 7% the next year. If you elect this rider when you purchase your Contract, we count one year as the time between each Contract Anniversary. If you purchase this rider after you purchase your Contract, we count the first year as the time between the date we added this rider to your Contract and your next Contract Anniversary, which could be less than a year. Each time you add a Premium Payment, we increase your Benefit Amount by the amount of the subsequent Premium Payment. When you make a subsequent Premium Payment, your Benefit Payments will increase by 7% of the amount of the subsequent Premium Payment. Your Benefit Amount cannot be less than $0 or more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider. Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value and Benefit Amount. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your annual Benefit Payment include any applicable Contingent Deferred Sales Charge. IF, IN ONE YEAR, YOUR SURRENDERS TOTAL MORE THAN YOUR BENEFIT PAYMENT, WE WILL RE-CALCULATE YOUR BENEFIT AMOUNT AND YOUR BENEFIT PAYMENT COULD BE SIGNIFICANTLY LOWER IN THE FUTURE. Any time we recalculate your Benefit Amount or your Benefit Payment, we count one year as the time between the date we re-calculate and your next Contract Anniversary, which could be less than a year. Whenever a partial Surrender is made, the Benefit Amount will be equal to the amount determined in either (A) or (B) as follows: A. If the total partial Surrenders since the later of (i) the most recent Contract Anniversary, or (ii) the Valuation Day that the Benefit Payment was last established (excluding establishments for subsequent Premium Payments), are equal to or less than the Benefit Payment, the Benefit Amount becomes the Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender. B. If the total partial Surrenders as determined in (A) above exceed the Benefit Payment, the Benefit Amount will have an automatic reset to the greater of zero or the lesser of (i) or (ii) as follows: (i) The Contract Value immediately following the partial Surrender; or (ii) The Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender. Please refer to examples 2 - 7 for The Hartford's Principal First in Appendix I for illustrations regarding recalculation of your Benefit Amount. Qualified Contracts are subject to certain federal tax rules requiring that minimum distributions be withdrawn from the Contract on a calendar year basis (i.e., compared to a Contract Year basis), usually beginning after age 70 1/2. These withdrawals are called Required Minimum Distributions. A Required Minimum Distribution may exceed your Benefit Payment, which will cause a recalculation of your Benefit Amount. Recalculation of your Benefit Amount may result in a lower Benefit Payment in the future. 51 ------------------------------------------------------------------------------- IS THIS RIDER DESIGNED TO PAY YOU DEATH BENEFITS? No. However, partial Surrenders will reduce the standard Death Benefit. DOES THIS RIDER REPLACE STANDARD DEATH BENEFITS? No. CAN YOU REVOKE THIS RIDER? No. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. WHAT EFFECT DO PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value and Benefit Amount. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your Benefit Payment include any applicable CDSC. If, in one year, your Surrenders total more than your Benefit Payment, we will re-calculate your Benefit Amount and your Benefit Payment could be significantly lower in the future. Any time we re-calculate your Benefit Amount or your Benefit Payment, we count one year as the time between the date we re-calculate and your next Contract Anniversary, which could be less than a year. If your Contract Value is reduced to zero due to receiving Benefit Payments, and you still have a Benefit Amount, you will continue to receive a Benefit Payment through a fixed Annuity Payout option until your Benefit Amount is depleted. While you are receiving payments under fixed Annuity Payout options, you may not make additional Premium Payments, and if you die before you receive all of your payments, your Beneficiary will continue to receive the remaining Benefit Payments. You can Surrender your entire Contract Value any time; however, you will receive your Contract Value at the time you request a full Surrender with any applicable charges deducted and not the Benefit Amount or the Benefit Payment amount that you would have received under this rider. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? If you change the ownership or assign this Contract to someone other than your Spouse after 12 months of electing this rider, we will recalculate the Benefit Amount and the Benefit Payment may be lower in the future. The Benefit Amount will be recalculated to equal the lesser of: - The Benefit Amount immediately prior to the ownership change or assignment; or - The Contract Value at the time of the ownership change or assignment. The Benefit Payment will then be reset to 7% of the new Benefit Amount. If the Owner dies and the sole Beneficiary is the Owner's Spouse, then the surviving Spouse can either become the Contract Owner or elect to receive the standard Death Benefit. You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice. CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? Yes. If the Owner dies and the Beneficiary is the deceased Owner's Spouse at the time of death, the Spouse may continue the Contract and this rider. This right may be exercised only once during the term of the Contract. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? You may elect the annuitization option at any time. If you annuitize your Contract, you may choose this Annuity Payout Option in addition to those Annuity Payout Options offered in the Contract. Under this Annuity Payout Option (called the "PF Annuity Payout Option"), we will pay a fixed dollar amount for a specific number of years ("Payout Period"). If you, the joint Owner or the Annuitant should die before the PF Annuity Payout Period is complete, the remaining payments will be made to the Beneficiary. The PF Annuity Payout Period is determined on the Annuity Calculation Date and it will equal the current Benefit Amount divided by the Benefit Payment. The total amount of the Annuity Payouts under this option will be equal to the Benefit Amount. We may offer other Payout Options. If you, the joint Owner or Annuitant die before the Annuity Calculation Date and all of the Benefit Payments guaranteed by us have not been made, the Beneficiary may elect to take the remaining Benefit Payments by electing the PF Annuity Payout Option or any of the Death Benefit options offered in your Contract. If the Annuitant dies after the Annuity Calculation Date and before all of the Benefit Payments guaranteed by us have been made, the payments will continue to be made to the Beneficiary. If your Contract Value is reduced to zero, you will receive a fixed dollar amount Annuity Payout option until your Benefit Amount is depleted. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? No. 52 ------------------------------------------------------------------------------- ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? No; however, your Benefit Amount cannot be more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider. CAN WE AGGREGATE CONTRACTS? We reserve the right to treat all Contracts issued to you by us or one of our affiliates as one Contract for purposes of this rider. This means that if you purchase two Contracts from us in any twelve month period and elect any optional withdrawal benefit rider on both Contracts, withdrawals from one Contract may be treated as withdrawals from the other Contract. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - The annual percentage used for determining Benefit Payments is not a fixed rate of return. The Contract Value used to set Benefit Payments is based on the investment performance of your Sub-Accounts. - Benefit Payments cannot be carried forward from one year to the next. You will not be warned if you take less than the maximum withdrawals available without triggering recalculation of your Benefit Payments. - Annual Surrenders exceeding 7% accelerate depletion of your Benefit Amount even if you use the Automatic Income Program to meet RMD requirements. No reliable assumptions can be made that your payments will continue for any particular number of years. - Additional contributions made to your Contract after withdrawals have begun may not restore the previous amount of Benefit Payments, even if the additional contribution restores the Benefit Amount to the previous Benefit Amount. - Voluntary or involuntary annuitization will terminate Benefit Payments. Annuity Payout options available subsequent to the Annuity Commencement Date may be less than Benefit Payments. - There are no assurances made or implied that automatic Benefit Amount increases will occur and if occurring, will be predictable. - The fee for this rider may increase if and when automatic Benefit Amount increases take place. There are no assurances as to the fee we will be charging at the time of each step-up. This is subject to the maximum fee disclosed in the Synopsis and this section. - When the Contract Value is small in relation to the Benefit Amount, Surrenders may have a significant effect on future Benefit Payments. 8. MISCELLANEOUS A. DEFINITIONS Except as provided elsewhere in this prospectus, the following capitalized terms shall have the meaning ascribed below: ACCOUNT: Any of the Sub-Accounts or the Fixed Accumulation Feature. ACCUMULATION UNITS: If you allocate your Premium Payment to any of the Sub-Accounts, we will convert those Payments into Accumulation Units in the selected Sub-Accounts. Accumulation Units are valued at the end of each Valuation Day and are used to calculate the value of your Contract prior to Annuitization. ACCUMULATION UNIT VALUE: The daily price of Accumulation Units on any Valuation Day. ADMINISTRATIVE OFFICE: Our location and overnight mailing address is: 200 Hopmeadow Street, Simsbury, Connecticut 06089. Our standard mailing address is: U.S. Wealth Management, P.O. Box 5085, Hartford, Connecticut 06102-5085. ANNIVERSARY VALUE: The value equal to the Contract Value as of a Contract Anniversary, as adjusted for subsequent Premium Payments and partial Surrenders. ANNUAL MAINTENANCE FEE: An annual $30 charge deducted on a Contract Anniversary or upon full Surrender if the Contract Value at either of those times is less than $50,000. The charge is deducted proportionately from each Sub-Account in which you are invested. ANNUAL WITHDRAWAL AMOUNT: This is the amount you can Surrender per Contract Year without paying a Contingent Deferred Sales Charge. This amount is non-cumulative, meaning that it cannot be carried over from one year to the next. ANNUITANT: The person on whose life the Contract is issued. Except as otherwise provided, the Annuitant may not be changed after your Contract is issued. 53 ------------------------------------------------------------------------------- ANNUITY CALCULATION DATE: The date we calculate the first Annuity Payout. ANNUITY COMMENCEMENT DATE: The later of the 10th Contract Anniversary or the date the Annuitant reaches age 90, unless we, in our sole discretion, agree to postpone to another date following our receipt of an extension request. ANNUITY PAYOUT: The money we pay out after the Annuity Commencement Date for the duration and frequency you select. ANNUITY PAYOUT OPTION: Any of the options available for payout after the Annuity Commencement Date or death of the Contract Owner or Annuitant. ANNUITY UNIT: The unit of measure we use to calculate the value of your Annuity Payouts under a variable dollar amount Annuity Payout Option. ANNUITY UNIT VALUE: The daily price of Annuity Units on any Valuation Day. BENEFICIARY: The person(s) entitled to receive benefits pursuant to the terms of the Contract upon the death of any Contract Owner and Annuitant as the case may be. BENEFIT AMOUNT: The basis used to determine the maximum payout guaranteed under The Hartford's Principal First, The Hartford's Principal First Preferred and The Hartford's Lifetime Income Builder. The Benefit Amount is comprised of net Premium Payments, less any Payment Enhancements, if applicable, and may be subject to periodic step ups when The Hartford's Principal First or The Hartford's Lifetime Income Builder have been elected. BENEFIT PAYMENT: The maximum guaranteed amount that may be withdrawn each Contract Year under The Hartford's Principal First, The Hartford's Principal First Preferred or The Hartford's Lifetime Income Builder. A Benefit Payment constitutes a partial Surrender. CHARITABLE REMAINDER TRUST: An irrevocable trust, where an individual donor makes a gift to the trust, and in return receives an income tax deduction. In addition, the individual donor has the right to receive a percentage of the trust earnings for a specified period of time. CODE: The Internal Revenue Code of 1986, as amended. COMMUTED VALUE: The present value of any remaining guaranteed Annuity Payouts. This amount is calculated using the Assumed Investment Return for variable dollar amount Annuity Payouts and a rate of return determined by us for fixed dollar amount Annuity Payouts. CONTINGENT ANNUITANT: The person you may designate to become the Annuitant if the original Annuitant dies before the Annuity Commencement Date. You must name a Contingent Annuitant before the original Annuitant's death. CONTINGENT DEFERRED SALES CHARGE: The deferred sales charge, if applicable, that may apply when you make a full or partial Surrender. CONTRACT: The individual Annuity Contract and any endorsements or riders. Group participants and some individuals may receive a certificate rather than a Contract. CONTRACT ANNIVERSARY: The anniversary of the date we issued your Contract. If the Contract Anniversary falls on a Non-Valuation Day, then the Contract Anniversary will be the next Valuation Day. CONTRACT OWNER, OWNER OR YOU: The owner or holder of the Contract described in this prospectus including any joint Owner(s). We do not capitalize "you" in the prospectus. CONTRACT VALUE: The total value of the Accounts on any Valuation Day. CONTRACT YEAR: Any 12 month period between Contract Anniversaries, beginning with the date the Contract was issued. COVERED LIFE: The governing life or lives used for determining the Lifetime Withdrawal Feature under The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios. DEATH BENEFIT: The amount payable if the Contract Owner, joint Contract Owner or the Annuitant dies before the Annuity Commencement Date. DOLLAR COST AVERAGING: A program that allows you to systematically make transfers between Accounts available in your Contract. ELIGIBLE WITHDRAWAL YEAR: As used in The Hartford's Lifetime Income Foundation and The Hartford's Lifetime Income Builder II, any Contract Year following the Relevant Covered Life's 60th birthday. 54 ------------------------------------------------------------------------------- FIXED ACCUMULATION FEATURE: Part of our General Account, where you may allocate all or a portion of your Contract Value. In your Contract, the Fixed Accumulation Feature may be called the Fixed Account. Not all forms of Contracts we offer contain a Fixed Accumulation Feature. FUND: A registered investment company or a series thereof in which assets of a Sub-Account may be invested. We sometimes call the Funds you select a "Sub-Account". GENERAL ACCOUNT: The General Account includes our company assets, including any money you may have invested in the Fixed Accumulation Feature, if available. The assets in the General Account are available to our creditors. JOINT ANNUITANT: The person on whose life Annuity Payouts are based if the Annuitant dies after Annuitization. You may name a Joint Annuitant only if your Annuity Payout Option provides for a survivor. The Joint Annuitant may not be changed. LIFETIME BENEFIT PAYMENT: The maximum guaranteed amount that can be withdrawn each year pursuant to The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios. A Lifetime Benefit Payment constitutes a partial Surrender. Withdrawals taken prior to an Eligible Withdrawal Year (The Hartford's Lifetime Income Foundation and The Hartford's Lifetime Income Builder II) or prior to the Lifetime Income Eligibility Date (The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios) are excluded from this definition. LIFETIME INCOME ELIGIBILITY DATE: Under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios, the date the relevant Covered Life attains age 59 1/2, at which point Lifetime Benefit Payments can begin. LIFETIME WITHDRAWAL FEATURE: Under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios, a series of Lifetime Benefit Payments in each Contract Year following the Lifetime Income Eligibility Date. MAXIMUM ANNIVERSARY VALUE: This is the highest Anniversary Value, adjusted for subsequent Premium Payments and partial Withdrawals, prior to the deceased's 81st birthday or the date of death, if earlier. MAXIMUM CONTRACT VALUE: The greatest of: (i) the Contract Value on the rider issue date, plus Premium Payments received after such date or (ii) the Contract Value on each subsequent Contract Anniversary, excluding the current Contract Anniversary, plus Premium Payments received after such Contract Anniversary date. MINIMUM CONTRACT VALUE: Subject to state variations, the Minimum Contract Value we establish from time to time. NET INVESTMENT FACTOR: This is used to measure the investment performance of a Sub-Account from one Valuation Day to the next, and is also used to calculate your Annuity Payout amount. 1933 ACT: The Securities Act of 1933, as amended. 1934 ACT: The Securities Exchange Act of 1934, as amended. 1940 ACT: The Investment Company Act of 1940, as amended. NON-VALUATION DAY: Any day the New York Stock Exchange is not open for trading. PAYEE: The person or party you designate to receive Annuity Payouts. PAYMENT BASE: The amount used to determine the Lifetime Benefit Payments for The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios. The Payment Base may be subject to automatic annual Payment Base increases when The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios has been elected. In The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios, Payment Base includes Payment Enhancements (Plus Contracts only) and front end sales charges (Edge Contracts only) but excludes any Employee Gross-Up. Your initial Payment Base equals your initial Premium Payment except in regard to a company sponsored exchange program. For Plus contracts, your initial Payment Base includes any Payment Enhancement, if applicable; provided, however, Payment Enhancements are not taken into consideration as such for the purposes of The Hartford's Lifetime Income Foundation or The Hartford's Lifetime Income Builder II. PAYMENT ENHANCEMENT: An amount we credit to your Contract Value at the time a Premium Payment is made for "Plus" Contracts only. The amount of a Payment Enhancement is based on the cumulative Premium Payments you make to your Contract. PREMIUM PAYMENT: Money sent to us to be invested in your Contract (not taking into consideration any applicable front-end charges, Payment Enhancements or Employee Gross Up). PREMIUM TAX: A tax charged by a state or municipality on Premium Payments. RELEVANT COVERED LIFE: When the Single Life option is chosen, the Relevant Covered Life will be the older of the Contract Owner(s) if the Contract Owner is a natural person or the Annuitant(s) if the Contract Owner is not a natural person. When the 55 ------------------------------------------------------------------------------- Joint/Spousal Option is chosen, however, the Relevant Covered Life will be the younger of the Contract Owner and his or her Spouse if the Contract Owner is a natural person or the Annuitant if the Contract Owner is not a natural person. As used herein, "attained age" means the chronological age of the Relevant Covered Life as of the most recent Contract Anniversary before requesting any partial Surrender or if a partial Surrender is requested during the first Contract Year, the chronological age of the Relevant Covered Life as of the Contract issuance date. REQUIRED MINIMUM DISTRIBUTION: A federal requirement that individuals age 70 1/2 and older must take a distribution from their tax-qualified retirement account by December 31, each year. For employer sponsored qualified Contracts, the individual must begin taking distributions at the age of 70 1/2 or upon retirement, whichever comes later. SPOUSE: A person related to a Contract Owner by marriage pursuant to the Code. SUB-ACCOUNT: A division of the Separate Account containing shares of a Fund. There is a Sub-Account for each Fund. We sometimes call the Funds you select your "Sub-Account". SUB-ACCOUNT VALUE: The value on or before the Annuity Calculation Date, which is determined on any day by multiplying the number of Accumulation Units by the Accumulation Unit Value for each Sub-Account. SURRENDER: A complete or partial withdrawal from your Contract. SURRENDER VALUE: The amount we pay you if you terminate your Contract before the Annuity Commencement Date. The Surrender Value is equal to the Contract Value minus any applicable charges (subject to rounding). THRESHOLD: For the purposes of The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios, the amount used to determine the change in the Payment Base following a partial Surrender in any Contract Year that is not an Eligible Withdrawal Year (The Hartford's Lifetime Income Foundation and The Hartford's Lifetime Income Builder II) or any Contract Year that is prior to the Lifetime Income Eligibility Date (The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios). For the purposes of these optional riders, the percentage used to determine your Threshold amount is 5% (Single Life Election) or 4.5% Joint/ Spousal Election) of the Payment Base. VALUATION DAY: Every day the New York Stock Exchange is open for trading. Values of the Separate Account are determined as of the close of the New York Stock Exchange. The Exchange generally closes at 4:00 p.m. Eastern Time but may close earlier on certain days and as conditions warrant. VALUATION PERIOD: The time span between the close of trading on the New York Stock Exchange from one Valuation Day to the next. WE, US OR OUR: Hartford Life and Annuity Insurance Company or Hartford Life Insurance Company, as the case may be. WITHDRAWAL PERCENT: The multiplier used in calculating Lifetime Benefit Payments under The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios. YOU: The Owner including any joint Owner(s). We do not capitalize "you" or "your" in this prospectus. 56 ------------------------------------------------------------------------------- B. STATE VARIATIONS The following section describes modifications to this prospectus required by one or more state insurance departments as of the date of this prospectus. Unless otherwise noted, variations apply to all forms of Contracts we issue. References to certain state's variations do not imply that we actually offer Contracts in each such state. These variations are subject to change without notice and additional variations may be imposed as specific states approve new riders. - ALABAMA -- We will accept subsequent Premium Payments only during the first Contract Year (if Contract contains the Fixed Account Rider). - CALIFORNIA -- Any Owner 60 years old or older when purchasing this Contract in California must either elect the Senior Protection Program, or elect to immediately allocate the initial Premium Payments to the other investment options. Under the Senior Protection Program, we will allocate your initial Premium Payment to a Money Market Fund Sub-Account (or comparable money market Sub-Account) for the first 35 days your initial Premium Payment is invested. After the 35th day we will automatically allocate your Contract Value according to your most current investment instructions. If you elect the Senior Protection Program you will not be able to participate in any InvestEase (if otherwise available) or Dollar Cost Averaging Program until after the Program has terminated. The Dollar Cost Averaging Plus, Static Asset Allocation Models and certain Automatic Income Programs are not available if you elect the Senior Protection Program. Under the Senior Protection Program any subsequent Premium Payment received during the 35 days after the initial Premium Payment is invested will also be invested in a Money Market Fund Sub-Account (or comparable money market Sub-Account) unless you direct otherwise. You may voluntarily terminate your participation in the Senior Protection Program by contacting us in writing or by telephone. You will automatically terminate your participation in the Senior Protection Program if you allocate a subsequent Premium Payment to any other investment option or transfer Account Value from a Money Market Fund Sub-Account (or comparable money market Sub-Account) to another investment option. When you terminate your participation in the Senior Protection Program you may reallocate your Contract Value in the Program to other investment options; or we will automatically reallocate your Account Value in the Program according to your original instructions 35 days after your initial Premium Payment was invested. - CONNECTICUT -- There are no investment restrictions on the Sub-Accounts that you may invest in while subject to The Hartford's Principal First Preferred benefits. If you elect that rider, our approval is required for any subsequent Premium Payments if the Premium Payments for all deferred variable annuity Contracts issued by us or our affiliates to you equal or exceed $100,000. For Connecticut residents that elect The Hartford's Principle First Preferred, The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation, contract aggregation provisions do not apply. - FLORIDA -- The limit on Death Benefits imposed when aggregate Premium Payments total $5 million or more does not apply. - MASSACHUSETTS -- We will accept subsequent Premium Payments only until the Annuitant's 63rd birthday or the third Contract Anniversary, whichever is later. The Nursing Home Waiver is not available. - MINNESOTA -- MAV Plus is not available and the Maximum Anniversary Value (MAV) Death Benefit is offered instead. - NEW JERSEY -- The only AIRs available are 3% and 5%. The investment restrictions and the contract aggregation provisions of The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II and The Hartford's Lifetime Income Foundation are not applicable to New Jersey Owners electing such rider. The Nursing Home Waiver is not available. - NEW YORK -- We will not recalculate The Hartford's Principal First Preferred or The Hartford's Principal First Benefit Amounts if you change ownership or assign your Contract to someone other than your Spouse. The Minimum Contract Value is $1,000 after any Surrender. The minimum monthly Annuity Payout is $20. There are no investment restrictions for The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II and The Hartford's Lifetime Income Foundation. The rider charge for The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II and The Hartford's Lifetime Income Foundation is only deducted from the Sub-Accounts. MAV Plus is not available and the Maximum Anniversary Value (MAV) Death Benefit is offered instead. The Fixed Accumulation Feature is not available if you elect The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation. The only AIRs available are 3% and 5%. The Nursing Home Waiver is not available. - OKLAHOMA -- The only AIRs available are 3% and 5%. - OREGON -- We will accept subsequent Premium Payments during the first three Contract Years. Owners may only sign up for DCA Plus Programs that are 6 months or longer. You may not choose a fixed dollar amount Annuity Payout. The Life Annuity with a Cash Refund Annuity Payout Option is not available for Oregon residents and the only AIRs available are 3% and 5%. 57 ------------------------------------------------------------------------------- - PENNSYLVANIA -- The Nursing Home Waiver minimum confinement period is changed from 180 days to 90 days. Pennsylvania residents may not choose a fixed dollar amount Annuity Payout or the Life Annuity with a Cash Refund Annuity Payout Option. - WASHINGTON -- MAV Plus is not available and Maximum Anniversary Value (MAV) Death Benefit is offered instead. The Fixed Accumulation is not available if you elect The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation. The rider charge for The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II and The Hartford's Lifetime Income Foundation is only deducted from the Sub-Accounts. 58 ------------------------------------------------------------------------------- C. FINANCIAL STATEMENTS You can find financial statements for us and the Separate Account in the Statement of Additional Information. To receive a copy of the Statement of Additional Information free of charge, call your representative or complete the form at the end of this prospectus and mail the form to us at the address indicated on the form. D. MORE INFORMATION OWNERSHIP CHANGES -- We reserve the right to approve all ownership changes, including any assignment of your Contract (or any benefits) to others or the pledging of your Contract as collateral. Certain approved changes in ownership may cause a re-calculation of the benefits subject to applicable state law. Generally, we will not re-calculate the benefits under your Contract so long as the change in ownership does not affect the Owner and does not result in a change in the tax identification number under the Contract. Changes in ownership can also adversely affect your Death Benefits and optional withdrawal benefits. If the Owner dies and the sole Beneficiary is the Owner's Spouse, then the surviving Spouse can either become the Contract Owner or elect to receive the applicable Death Benefit. We will adjust the Contract Value in these circumstances to equal the amount that we would have paid as the Death Benefit payment, had the Spouse elected to receive the applicable Death Benefit as a lump sum payment. This privilege will only apply once for each Contract. You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice. ASSIGNMENT -- A non-qualified Contract may be assigned. We must be properly notified in writing of an assignment. Any Annuity Payouts or Surrenders requested or scheduled before we record an assignment will be made according to the instructions we have on record. We are not responsible for determining the validity of an assignment. Assigning a non-qualified Contract may require the payment of income taxes and certain penalty taxes. A qualified Contract may not be transferred or otherwise assigned (whether directly or used as collateral for a loan), unless allowed by applicable law and approved by us in writing. We can withhold our consent for any reason. We are not obligated to process any request for approval within any particular time frame. Please consult a qualified tax adviser before assigning your Contract. CONTRACT MODIFICATION -- We may modify the Contract, but no modification will affect the amount or term of any Contract unless a modification is required to conform the Contract to applicable federal or state law. No modification will affect the method by which Contract Values are determined. MEDICAID BENEFITS -- Medicaid is a program that covers most medical costs, including nursing home and home care for the elderly and certain persons with disabilities. To qualify, individuals must meet both income and resource tests. Subject to state law, income tests measure whether earned and unearned income such as benefit payments exceeds predetermined monthly caps. Resource tests look to the value of countable assets such as this Contract. Medicaid also allows the costs of benefits such as nursing home care, home and community based services, and related hospital prescription drug services to be recaptured from a recipient's estate after their death (or if the recipient has a surviving Spouse, the recapture is suspended until after the death of the recipient's surviving Spouse). Medicaid estate planning may be important to people who are concerned about long term care costs or the adequacy of their private LTC insurance. Benefits associated with this variable annuity may have an impact on your Medicaid eligibility and the assets considered for Medicaid benefits. Certain asset and/or trust transfers (or a "spend down" of assets) made to become eligible for Medicaid may trigger periods of potentially unlimited ineligibility and can be considered fraud. Each state examines the financial history of a person to determine whether he or she transferred funds at below market value in order to qualify for Medicaid. These look-back periods are currently 36-months for asset transfers and 60-months for Medicaid exempt trust transfers. Ownership interests or beneficiary status under this variable annuity can render you or your loved ones ineligible for Medicaid. This may be particularly troubling if your Spouse or Beneficiary is already receiving Medicaid benefits at the time of transfer or receipt of Death Benefits. As certain ownership changes are either impermissible or are subject to benefit resetting rules, you may want to carefully consider how you structure the ownership and beneficiary status of your Contract. This discussion is intended to provide a very general overview and does not constitute legal advice or in any way suggest that you circumvent these rules. You should seek advice from a competent elder law attorney to make informed decisions about how this variable annuity may affect your plans. E. LEGAL PROCEEDINGS There continues to be significant federal and state regulatory activity relating to financial services companies. Like other insurance companies, we are involved in lawsuits, arbitrations, and regulatory/legal proceedings. While it is not possible to predict with certainty the ultimate outcome of any pending or future legal proceeding or regulatory action, we do not expect any of these actions to result in a material adverse effect on the Company or its Separate Accounts. 59 ------------------------------------------------------------------------------- F. HOW CONTRACTS ARE SOLD We have entered into a distribution agreement with our affiliate Hartford Securities Distribution Company, Inc. ("HSD") under which HSD serves as the principal underwriter for the Contracts, which are offered on a continuous basis. HSD is registered with the Securities and Exchange Commission under the 1934 Act as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA). The principal business address of HSD is the same as ours. PLANCO Financial Services, LLC, a subsidiary of Hartford Life Insurance Company, provides marketing support for us. Woodbury Financial Services, Inc. is another affiliated broker-dealer that sells this Contract. HSD has entered into selling agreements with affiliated and unaffiliated broker-dealers, and financial institutions ("Financial Intermediaries") for the sale of the Contracts. We pay compensation to HSD for sales of the Contracts by Financial Intermediaries. HSD, in its role as principle underwriter, did not retain any underwriting commissions for the fiscal year ended December 31, 2007. Contracts will be sold by individuals who have been appointed by us as insurance agents and who are registered representatives of Financial Intermediaries ("Registered Representatives"). Core and Edge Contracts may be sold directly to the following individuals free of any commission ("Employee Gross-Up" on Core and no front-end sales charge on Edge): 1) current or retired officers, directors, trustees and employees (and their families) of our ultimate corporate parent and affiliates; and 2) employees and Registered Representatives (and their families) of Financial Intermediaries. If applicable, we will credit the Core Contract with a credit of 5.0% of the initial Premium Payment and each subsequent Premium Payment, if any. This additional percentage of Premium Payment in no way affects current or future charges, rights, benefits or account values of other Contract Owners. We list below types of arrangements that help to incentivize sales people to sell our suite of variable annuities. Not all arrangements necessarily affect each variable annuity. These types of arrangements could be viewed as creating conflicts of interest. Financial Intermediaries receive commissions (described below under "Commissions"). Certain selected Financial Intermediaries also receive additional compensation (described below under "Additional Payments"). All or a portion of the payments we make to Financial Intermediaries may be passed on to Registered Representatives according to a Financial Intermediaries' internal compensation practices. Affiliated broker-dealers also employ individuals called "wholesalers" in the sales process. Wholesalers typically receive commissions based on the type of Contract or optional benefits sold. Commissions are based on a specified amount of Premium Payments or Contract Value. COMMISSIONS Up front commissions paid to Financial Intermediaries generally range from 1% to up to 7% of each Premium Payment you pay for your Contract. Trail commissions (fees paid for customers that maintain their Contracts generally for more than 1 year) range up to 1.20% of your Contract Value. We pay different commissions based on the Contract variation that you buy. We may pay a lower commission for sales to people over age 80. Commission arrangements vary from one Financial Intermediary to another. We are not involved in determining your Registered Representative's compensation. Under certain circumstances, your Registered Representative may be required to return all or a portion of the commissions paid. Check with your Registered Representative to verify whether your account is a brokerage or an advisory account. Your interests may differ from ours and your Registered Representative (or the Financial Intermediary with which they are associated). Please ask questions to make sure you understand your rights and any potential conflicts of interest. If you are an advisory client, your Registered Representative (or the Financial Intermediary with which they are associated) can be paid both by you and by us based on what you buy. Therefore, profits, and your Registered Representative's (or their Financial Intermediary's) compensation, may vary by product and over time. Contact an appropriate person at your Financial Intermediary with whom you can discuss these differences. ADDITIONAL PAYMENTS Subject to FINRA and Financial Intermediary rules, we (or our affiliates) also pay the following types of fees to among other things encourage the sale of this Contract. These additional payments could create an incentive for your Registered Representative, and the Financial Intermediary with which they are associated, to recommend products that pay them more than others, which may not necessarily be to your benefit. 60 -------------------------------------------------------------------------------
ADDITIONAL PAYMENT TYPE WHAT IT'S USED FOR --------------------------------------------------------------------------------------------------------------------------------- Access Access to Registered Representatives and/or Financial Intermediaries such as one-on-one wholesaler visits or attendance at national sales meetings or similar events. Gifts & Entertainment Occasional meals and entertainment, tickets to sporting events and other gifts. Marketing Joint marketing campaigns and/or Financial Intermediary event advertising/ participation; sponsorship of Financial Intermediary sales contests and/or promotions in which participants (including Registered Representatives) receive prizes such as travel awards, merchandise and recognition; client generation expenses. Marketing Expense Allowances Pay Fund related parties for wholesaler support, training and marketing activities for certain Funds. Support Sales support through such things as providing hardware and software, operational and systems integration, links to our website from a Financial Intermediary's websites; shareholder services (including sub-accounting sponsorship of Financial Intermediary due diligence meetings; and/or expense allowances and reimbursements. Training Educational (due diligence), sales or training seminars, conferences and programs, sales and service desk training, and/or client or prospect seminar sponsorships. Visibility Inclusion of our products on a Financial Intermediary's "preferred list"; participation in, or visibility at, national and regional conferences; and/or articles in Financial Intermediary publications highlighting our products and services. Volume Pay for the overall volume of their sales or the amount of money investing in our products.
As of December 31, 2007, we have entered into ongoing contractual arrangements to make Additional Payments to the following Financial Intermediaries for our entire suite of variable annuities: A.G. Edwards & Sons, Inc., AIG Advisors Group, Inc., (Advantage Capital, AIG Financial Advisors, American General, FSC Securities Corporation, Royal Alliance Assoc., Inc.), Bancwest Investment Services, Inc., Cadaret, Grant & Co., Inc., Capital Analyst Inc., Centaurus Financial, Inc., Citigroup, Inc. (various divisions and affiliates), Comerica Securities, Commonwealth Financial Network, Compass Brokerage, Inc., Crown Capital Securities, L.P., Cuna Brokerage Services, Inc., Cuso Financial Services, L.P., Edward D. Jones & Co., L.P., FFP Securities, Inc., First Allied Securities, Inc., First Citizens Investor Services, First Montauk Securities Corp., First Tennessee Bank, First Tennessee Brokerage, Inc., Frost Brokerage Services, Inc., Great American Advisors, Inc., H. Beck, Inc., H.D. Vest Investment Services (subsidiary of Wells Fargo & Company), Harbour Investments, Inc., Heim & Young Securities, Huntington Investment Company, Independent Financial Group LLC, Infinex Financial Group, ING Advisors Network, (Financial Network Services (or Investment) Corp., ING Financial Partners, Multi-Financial Securities, Primevest Financial Services, Inc.,), Investacorp, Inc. , Investment Professionals, Inc., Investors Capital Corp., J.J.B. Hilliard, James T. Borello & Co., Janney Montgomery Scott, Inc., Jefferson Pilot Securities Corporation, Key Investment Services, LaSalle Financial Services, Inc., Lincoln Financial Advisors Corp. (marketing name for Lincoln National Corp.), LPL Financial Corporation, M&T Securities, Inc., Merrill Lynch Pierce Fenner & Smith, Morgan Keegan & Company, Inc., Morgan Keegan FID Division, Morgan Stanley & Co., Inc. (various divisions and affiliates), Mutual Service Corporation, NatCity Investments, National Planning Holdings (Invest Financial Corp., Investment Centers of America, Inc., National Planning Corp., SII Investments, Inc.), Newbridge Securities Corp., NEXT Financial Group, Inc., NFP Securities, Inc., Pension Planners Securities, Inc., Prime Capital Services, Inc., Prospera Financial Services, Inc., Raymond James & Associates, Inc., Raymond James FID Division, Raymond James Financial Services, RBC Dain FID Division, RBC Dain Rauscher Inc., RDM Investment Svcs Inc., Robert W. Baird & Co. Inc., Securities America, Inc., Sigma Financial Corporation, Sorrento Pacific, Stifel Nicolaus & Company, Incorporated, Summit Brokerage Services Inc., Sun Trust Bank, TFS Securities, Inc., The Investment Center, Inc., Thurston, Springer, Miller, Herd & Titak, Inc., Triad Advisors, Inc., U.S. Bancorp Investments, Inc., UBOC Investment Services, Inc. (Union Bank of California, N.A.), UBS Financial Services, Inc., Uvest Financial Services Group Inc., Vanderbilt Securities, LLC, Wachovia Securities, LLC (various divisions), Walnut Street Securities, Inc., Wells Fargo Brokerage Services, L.L.C., WaMu Investments, Inc., Woodbury Financial Services, Inc. (an affiliate of ours), XCU Capital Corporation, Inc. Inclusion on this list does not imply that these sums necessarily constitute "special cash compensation" as defined by FINRA Conduct Rule 2830(l)(4). We will endeavor to update this listing annually and interim arrangements may not be reflected. We assume no duty to notify any investor whether their Registered Representative is or should be included in any such listing. As of December 31, 2007, we have entered into arrangements to pay Marketing Expense Allowances to the following Fund Companies (or affiliated parties) for our entire suite of variable annuities: AIM Advisors, Inc., AllianceBernstein Variable Products Series Funds & Alliance Bernstein Investment Research and Management, Inc., American Variable Insurance Series & Capital Research and Management Company, Franklin Templeton Services, LLC, Oppenheimer Variable Account Funds & Oppenheimer Funds Distributor, Inc., Putnam Retail Management Limited Partnership. Marketing Expense Allowances may vary based on the form of Contract sold and the age of the purchaser. We will endeavor to update this listing annually and interim arrangements may not be reflected. We 61 ------------------------------------------------------------------------------- assume no duty to notify you whether any Financial Intermediary is or should be included in any such listing. You are encouraged to review the prospectus for each Fund for any other compensation arrangements pertaining to the distribution of Fund shares. For the fiscal year ended December 31, 2007, Additional Payments did not in the aggregate exceed approximately $66.4 million (excluding corporate-sponsorship related perquisites and Marketing Expense Allowances) or approximately 0.06% of average total individual variable annuity assets. Marketing Expense Allowances for this period did not exceed $15.8 million or approximately 0.25% of the Premium Payments invested in a particular Fund during this period. Financial Intermediaries that received Additional Payments in 2007, but do not have an ongoing contractual relationship, are listed in the Statement of Additional Information. 9. FEDERAL TAX CONSIDERATIONS A. INTRODUCTION The following summary of tax rules does not provide or constitute any tax advice. It provides only a general discussion of certain of the expected federal income tax consequences with respect to amounts contributed to, invested in or received from a Contract, based on our understanding of the existing provisions of the Code, Treasury Regulations thereunder, and public interpretations thereof by the IRS (e.g., Revenue Rulings, Revenue Procedures or Notices) or by published court decisions. This summary discusses only certain federal income tax consequences to United States Persons, and does not discuss state, local or foreign tax consequences. The term United States Persons means citizens or residents of the United States, domestic corporations, domestic partnerships, trust or estates that are subject to United States federal income tax, regardless of the source of their income. See "Annuity Purchases by Nonresident Aliens and Foreign Corporations," regarding annuity purchases by non-U.S. Persons or residents. This summary has been prepared by us after consultation with tax counsel, but no opinion of tax counsel has been obtained. We do not make any guarantee or representation regarding any tax status (e.g., federal, state, local or foreign) of any Contract or any transaction involving a Contract. In addition, there is always a possibility that the tax treatment of an annuity contract could change by legislation or other means (such as regulations, rulings or judicial decisions). Moreover, it is always possible that any such change in tax treatment could be made retroactive (that is, made effective prior to the date of the change). Accordingly, you should consult a qualified tax adviser for complete information and advice before purchasing a Contract. In addition, this discussion does not address many of the tax consequences if you use the Contract in various arrangements, including Charitable Remainder Trusts, tax-qualified retirement arrangements, deferred compensation plans, split-dollar insurance arrangements, or other employee benefit arrangements. The tax consequences of any such arrangement may vary depending on the particular facts and circumstances of each individual arrangement and whether the arrangement satisfies certain tax qualification or classification requirements. In addition, the tax rules affecting such an arrangement may have changed recently, e.g., by legislation or regulations that affect compensatory or employee benefit arrangements. Therefore, if you are contemplating the use of a Contract in any arrangement the value of which to you depends in part on its tax consequences, you should consult a qualified tax adviser regarding the tax treatment of the proposed arrangement and of any Contract used in it. THE DISCUSSION SET FORTH BELOW IS INCLUDED FOR GENERAL PURPOSES ONLY. SPECIAL TAX RULES MAY APPLY WITH RESPECT TO CERTAIN SITUATIONS THAT ARE NOT DISCUSSED HEREIN. EACH POTENTIAL PURCHASER OF A CONTRACT IS ADVISED TO CONSULT WITH A QUALIFIED TAX ADVISER AS TO THE CONSEQUENCES OF ANY AMOUNTS INVESTED IN A CONTRACT UNDER APPLICABLE FEDERAL, STATE, LOCAL OR FOREIGN TAX LAW. B. TAXATION OF HARTFORD AND THE SEPARATE ACCOUNT The Separate Account is taxed as part of Hartford which is taxed as a life insurance company under Subchapter L of Chapter 1 of the Code. Accordingly, the Separate Account will not be taxed as a "regulated investment company" under Subchapter M of Chapter 1 of the Code. Investment income and any realized capital gains on assets of the Separate Account are reinvested and taken into account in determining the value of the Accumulation and Annuity Units. As a result, such investment income and realized capital gains are automatically applied to increase reserves under the Contract. Currently, no taxes are due on interest, dividends and short-term or long-term capital gain earned by the Separate Account with respect to the Contracts. Hartford is entitled to certain tax benefits related to the investment of company assets, including assets of the Separate Account. These tax benefits, which may include the foreign tax credit and the corporate dividends received deduction, are not passed back to you since Hartford is the owner of the assets from which the tax benefits are derived. 62 ------------------------------------------------------------------------------- C. TAXATION OF ANNUITIES -- GENERAL PROVISIONS AFFECTING CONTRACTS NOT HELD IN TAX-QUALIFIED RETIREMENT PLANS Section 72 of the Code governs the taxation of annuities in general. 1. NON-NATURAL PERSONS AS OWNERS Pursuant to Code Section 72(u), an annuity contract held by a taxpayer other than a natural person generally is not treated as an annuity contract under the Code. Instead, such a non-natural Contract Owner generally could be required to include in gross income currently for each taxable year the excess of (a) the sum of the Contract Value as of the close of the taxable year and all previous distributions under the Contract over (b) the sum of net premiums paid for the taxable year and any prior taxable year and the amount includable in gross income for any prior taxable year with respect to the Contract under Section 72(u). However, Section 72(u) does not apply to: - A contract the nominal owner of which is a non-natural person but the beneficial owner of which is a natural person (e.g., where the non-natural owner holds the contract as an agent for the natural person), - A contract acquired by the estate of a decedent by reason of such decedent's death, - Certain contracts acquired with respect to tax-qualified retirement arrangements, - Certain contracts held in structured settlement arrangements that may qualify under Code Section 130, or - A single premium immediate annuity contract under Code Section 72(u)(4), which provides for substantially equal periodic payments and an annuity starting date that is no later than 1 year from the date of the contract's purchase. A non-natural Contract Owner that is a tax-exempt entity for federal tax purposes (e.g., a tax-qualified retirement trust or a Charitable Remainder Trust) generally would not be subject to federal income tax as a result of such current gross income under Code Section 72(u). However, such a tax-exempt entity, or any annuity contract that it holds, may need to satisfy certain tax requirements in order to maintain its qualification for such favorable tax treatment. See, e.g., IRS Tech. Adv. Memo. 9825001 for certain Charitable Remainder Trusts. Pursuant to Code Section 72(s), if the Contract Owner is a non-natural person, the primary annuitant is treated as the "holder" in applying the required distribution rules described below. These rules require that certain distributions be made upon the death of a "holder." In addition, for a non-natural owner, a change in the primary annuitant is treated as the death of the "holder." However, the provisions of Code Section 72(s) do not apply to certain contracts held in tax-qualified retirement arrangements or structured settlement arrangements. 2. OTHER CONTRACT OWNERS (NATURAL PERSONS). A Contract Owner is not taxed on increases in the value of the Contract until an amount is received or deemed received, e.g., in the form of a lump sum payment (full or partial value of a Contract) or as Annuity payments under the settlement option elected. Except as provided below, upon the death of the Contract Owner prior to the Annuity Commencement Date, if the designated beneficiary is the surviving spouse of the Contract Owner; (a) or the civil union partner of the Contract Owner in a civil union established under applicable state law (or any law succeeding or replacing such statute(s)); or (b) the civil union partner or member of a similar same sex relationship under the law of any state; and the Annuitant or Joint Annuitant, if any, is alive, then such designated beneficiary may continue the Contract as the succeeding Contract Owner. The right of the designated beneficiary (as spouse or civil union partner) to continue the Contract is contingent upon the treatment of the designated beneficiary as the "holder" of the Contract in accordance with the provisions of section 72(s)(3) of the Code (which under current tax law is limited to different sex spouses). In the event that the designated beneficiary continues the Contract, the distribution requirements of Code section 72(s) will only arise upon the death of such designated beneficiary, unless the designated beneficiary elects not to continue the Contract. If the designated beneficiary is not treated as the "holder" under section 72(s)(3) of the Code (as is the case under current federal tax law for a civil union partner), the distribution requirements of Code section 72(s)(1) and (2) outlined above shall apply at the time of the Contract Owner's death and the entire interest in the Contract must be distributed within five years of the Contract Owner's death or under the Alternative Election. Contract continuation under this provision may take effect only once with respect to this Contract. The provisions of Section 72 of the Code concerning distributions are summarized briefly below. Also summarized are special rules affecting distributions from Contracts obtained in a tax-free exchange for other annuity contracts or life insurance contracts which were purchased prior to August 14, 1982. a. DISTRIBUTIONS PRIOR TO THE ANNUITY COMMENCEMENT DATE. i. Total premium payments less amounts received which were not includable in gross income equal the "investment in the contract" under Section 72 of the Code. ii. To the extent that the value of the Contract (ignoring any surrender charges except on a full surrender) exceeds the "investment in the contract," such excess constitutes the "income on the contract." It is unclear what value should be used in determining the "income on the contract." We believe that the current Contract Value (determined without regard to surrender charges) generally is an appropriate measure. However, in some instances the IRS could take the position that the value 63 ------------------------------------------------------------------------------- should be the current Contract value (determined without regard to surrender charges) increased by some measure of the value of certain future cash-value type benefits. iii. Any amount received or deemed received prior to the Annuity Commencement Date (e.g., upon a withdrawal or partial surrender) is deemed to come first from any such "income on the contract" and then from "investment in the contract," and for these purposes such "income on the contract" shall be computed by reference to any aggregation rule in subparagraph 2.c. below. As a result, any such amount received or deemed received (1) shall be includable in gross income to the extent that such amount does not exceed any such "income on the contract," and (2) shall not be includable in gross income to the extent that such amount does exceed any such "income on the contract." If at the time that any amount is received or deemed received there is no "income on the contract" (e.g., because the gross value of the Contract does not exceed the "investment in the contract" and no aggregation rule applies), then such amount received or deemed received will not be includable in gross income, and will simply reduce the "investment in the contract." iv. The receipt of any amount as a loan under the Contract or the assignment or pledge of any portion of the value of the Contract shall be treated as an amount received for purposes of this subparagraph a. and the next subparagraph b. v. In general, the transfer of the Contract, without full and adequate consideration, will be treated as an amount received for purposes of this subparagraph a. and the next subparagraph b. This transfer rule does not apply, however, to certain transfers of property between Spouses or incident to divorce. vi. In general, any amount actually received under the Contract as a Death Benefit, including an optional Death Benefit, if any, will be treated as an amount received for purposes of this subparagraph a. and the next subparagraph b. b. DISTRIBUTIONS AFTER ANNUITY COMMENCEMENT DATE. Annuity payments made periodically after the Annuity Commencement Date are includable in gross income to the extent the payments exceed the amount determined by the application of the ratio of the "investment in the contract" to the total amount of the payments to be made after the Annuity Commencement Date (the "exclusion ratio"). i. When the total of amounts excluded from income by application of the exclusion ratio is equal to the investment in the contract as of the Annuity Commencement Date, any additional payments (including surrenders) will be entirely includable in gross income. ii. If the annuity payments cease by reason of the death of the Annuitant and, as of the date of death, the amount of annuity payments excluded from gross income by the exclusion ratio does not exceed the investment in the contract as of the Annuity Commencement Date, then the remaining portion of unrecovered investment shall be allowed as a deduction for the last taxable year of the Annuitant. iii. Generally, non-periodic amounts received or deemed received after the Annuity Commencement Date are not entitled to any exclusion ratio and shall be fully includable in gross income. However, upon a full surrender after such date, only the excess of the amount received (after any surrender charge) over the remaining "investment in the contract" shall be includable in gross income (except to the extent that the aggregation rule referred to in the next subparagraph c. may apply). c. AGGREGATION OF TWO OR MORE ANNUITY CONTRACTS. Contracts issued after October 21, 1988 by the same insurer (or affiliated insurer) to the same owner within the same calendar year (other than certain contracts held in connection with tax-qualified retirement arrangements) will be aggregated and treated as one annuity contract for the purpose of determining the taxation of distributions prior to the Annuity Commencement Date. An annuity contract received in a tax-free exchange for another annuity contract or life insurance contract may be treated as a new contract for this purpose. We believe that for any Contracts subject to such aggregation, the values under the Contracts and the investment in the contracts will be added together to determine the taxation under subparagraph 2.a., above, of amounts received or deemed received prior to the Annuity Commencement Date. Withdrawals will first be treated first as withdrawals of income until all of the income from all such Contracts is withdrawn. In addition, the Treasury Department has specific authority under the aggregation rules in Code Section 72(e)(12) to issue regulations to prevent the avoidance of the income-out-first rules for non-periodic distributions through the serial purchase of annuity contracts or otherwise. As of the date of this prospectus, there are no regulations interpreting these aggregation provisions. d. 10% PENALTY TAX -- APPLICABLE TO CERTAIN WITHDRAWALS AND ANNUITY PAYMENTS. i. If any amount is received or deemed received on the Contract (before or after the Annuity Commencement Date), the Code applies a penalty tax equal to ten percent of the portion of the amount includable in gross income, unless an exception applies. ii. The 10% penalty tax will not apply to the following distributions: 1. Distributions made on or after the date the recipient has attained the age of 59 1/2. 2. Distributions made on or after the death of the holder or where the holder is not an individual, the death of the primary annuitant. 64 ------------------------------------------------------------------------------- 3. Distributions attributable to a recipient's becoming disabled. 4. A distribution that is part of a scheduled series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the recipient (or the joint lives or life expectancies of the recipient and the recipient's designated Beneficiary). 5. Distributions made under certain annuities issued in connection with structured settlement agreements. 6. Distributions of amounts which are allocable to the "investment in the contract" prior to August 14, 1982 (see next subparagraph e.). 7. Distributions purchased by an employer upon termination of certain qualified plans and held by the employer until the employee separates from service. If the taxpayer avoids this 10% penalty tax by qualifying for the substantially equal periodic payments exception and later such series of payments is modified (other than by death or disability), the 10% penalty tax will be applied retroactively to all the prior periodic payments (i.e., penalty tax plus interest thereon), unless such modification is made after both (a) the taxpayer has reached age 59 1/2 and (b) 5 years have elapsed since the first of these periodic payments. e. SPECIAL PROVISIONS AFFECTING CONTRACTS OBTAINED THROUGH A TAX-FREE EXCHANGE OF OTHER ANNUITY OR LIFE INSURANCE CONTRACTS PURCHASED PRIOR TO AUGUST 14, 1982. If the Contract was obtained by a tax-free exchange of a life insurance or annuity Contract purchased prior to August 14, 1982, then any amount received or deemed received prior to the Annuity Commencement Date shall be deemed to come (1) first from the amount of the "investment in the contract" prior to August 14, 1982 ("pre-8/14/82 investment") carried over from the prior Contract, (2) then from the portion of the "income on the contract" (carried over to, as well as accumulating in, the successor Contract) that is attributable to such pre-8/14/82 investment, (3) then from the remaining "income on the contract" and (4) last from the remaining "investment in the contract." As a result, to the extent that such amount received or deemed received does not exceed such pre-8/14/82 investment, such amount is not includable in gross income. In addition, to the extent that such amount received or deemed received does not exceed the sum of (a) such pre-8/14/82 investment and (b) the "income on the contract" attributable thereto, such amount is not subject to the 10% penalty tax. In all other respects, amounts received or deemed received from such post-exchange Contracts are generally subject to the rules described in this subparagraph e. f. REQUIRED DISTRIBUTIONS i. Death of Contract Owner or Primary Annuitant Subject to the alternative election or Spouse beneficiary provisions in ii or iii below: 1. If any Contract Owner dies on or after the Annuity Commencement Date and before the entire interest in the Contract has been distributed, the remaining portion of such interest shall be distributed at least as rapidly as under the method of distribution being used as of the date of such death; 2. If any Contract Owner dies before the Annuity Commencement Date, the entire interest in the Contract shall be distributed within 5 years after such death; and 3. If the Contract Owner is not an individual, then for purposes of 1. or 2. above, the primary annuitant under the Contract shall be treated as the Contract Owner, and any change in the primary annuitant shall be treated as the death of the Contract Owner. The primary annuitant is the individual, the events in the life of whom are of primary importance in affecting the timing or amount of the payout under the Contract. ii. Alternative Election to Satisfy Distribution Requirements If any portion of the interest of a Contract Owner described in i. above is payable to or for the benefit of a designated beneficiary, such beneficiary may elect to have the portion distributed over a period that does not extend beyond the life or life expectancy of the beneficiary. Such distributions must begin within a year of the Contract Owner's death. iii. Spouse Beneficiary If any portion of the interest of a Contract Owner is payable to or for the benefit of his or her Spouse, and the Annuitant or Contingent Annuitant is living, such Spouse shall be treated as the Contract Owner of such portion for purposes of section i. above. This spousal contract continuation shall apply only once for this Contract. g. ADDITION OF RIDER OR MATERIAL CHANGE. The addition of a rider to the Contract, or a material change in the Contract's provisions, could cause it to be considered newly issued or entered into for tax purposes, and thus could cause the Contract to lose certain grandfathered tax status. Please contact your tax adviser for more information. 65 ------------------------------------------------------------------------------- h. PARTIAL EXCHANGES. The IRS in Rev. Rul. 2003-76 has confirmed that the owner of an annuity contract can direct its insurer to transfer a portion of the contract's cash value directly to another annuity contract (issued by the same insurer or by a different insurer), and such a direct transfer can qualify for tax-free exchange treatment under Code Section 1035 (a "partial exchange"). However, Rev. Rul. 2003-76 also refers to caveats and additional guidance in the companion Notice 2003-51, which discusses cases in which a partial exchange is followed by a surrender, withdrawal or other distribution from either the old contract or the new contract. Notice 2003-51 specifically indicates that the IRS is considering (1) under what circumstances it should treat a partial exchange followed by such a distribution within 24 months as presumptively for "tax avoidance" purposes (e.g., to avoid the income-out-first rules on amounts received under Code Section 72) and (2) what circumstances it should treat as rebutting such a presumption (e.g., death, disability, reaching age 59 1/2, divorce or loss of employment). Notice 2003-51 was superseded by Revenue Procedure 2008-24, effective for partial exchanges completed on or after June 30, 2008. Partial exchanges completed on or after this date will qualify for tax free treatment if: (1) no amounts are withdrawn from, or received in surrender of, either of the contracts involved in the exchange during the 12 months beginning on the date on which amounts are treated as received as premiums or other consideration paid for the contract received in the exchange (the date of transfer); or (2) the taxpayer demonstrates that certain conditions (e.g., death, disability, reaching age 50 1/2, divorce, loss of employment) occurred between the date of transfer and the date of the withdrawal or surrender. A transfer within the scope of the revenue procedure, but not treated as a tax-free exchange, will be treated as a taxable distribution, followed by a payment for a second contract. Two annuity contracts that are the subject of a tax-free exchange pursuant to the revenue procedure will not be aggregated, even if issued by the same insurance company. We advise you to consult with a qualified tax adviser as to potential tax consequences before attempting any partial exchange. 3. DIVERSIFICATION REQUIREMENTS. The Code requires that investments supporting your Contract be adequately diversified. Code Section 817(h) provides that a variable annuity contract will not be treated as an annuity contract for any period during which the investments made by the separate account or Fund are not adequately diversified. If a contract is not treated as an annuity contract, the contract owner will be subject to income tax on annual increases in cash value. The Treasury Department's diversification regulations under Code Section 817(h) require, among other things, that: - no more than 55% of the value of the total assets of the segregated asset account underlying a variable contract is represented by any one investment, - no more than 70% is represented by any two investments, - no more than 80% is represented by any three investments and - no more than 90% is represented by any four investments. In determining whether the diversification standards are met, all securities of the same issuer, all interests in the same real property project, and all interests in the same commodity are each treated as a single investment. In the case of government securities, each government agency or instrumentality is treated as a separate issuer. A separate account must be in compliance with the diversification standards on the last day of each calendar quarter or within 30 days after the quarter ends. If an insurance company inadvertently fails to meet the diversification requirements, the company may still comply within a reasonable period and avoid the taxation of contract income on an ongoing basis. However, either the insurer or the contract owner must agree to pay the tax due for the period during which the diversification requirements were not met. Fund shares may also be sold to tax-qualified plans pursuant to an exemptive order and applicable tax laws. If Fund shares are sold to non-qualified plans, or to tax-qualified plans that later lose their tax-qualified status, the affected Funds may fail the diversification requirements of Code Section 817(h), which could have adverse tax consequences for Contract Owners with premiums allocated to affected Funds. In order to prevent a Fund diversification failure from such an occurrence, Hartford obtained a private letter ruling ("PLR") from the IRS. As long as the Funds comply with certain terms and conditions contained in the PLR, Fund diversification will not be prevented if purported tax-qualified plans invest in the Funds. Hartford and the Funds will monitor the Funds' compliance with the terms and conditions contained in the PLR. 4. TAX OWNERSHIP OF THE ASSETS IN THE SEPARATE ACCOUNT. In order for a variable annuity contract to qualify for tax income deferral, assets in the separate account supporting the contract must be considered to be owned by the insurance company, and not by the contract owner, for tax purposes. The IRS has stated in published rulings that a variable contract owner will be considered the "owner" of separate account assets for income tax purposes if the contract owner possesses sufficient incidents of ownership in those assets, such as the ability to exercise investment control over the assets. In circumstances where the variable contract owner is treated as the "tax owner" of certain separate account assets, income and gain from such assets would be includable in the variable contract owner's gross income. The Treasury Department indicated in 1986 that, in regulations or revenue rulings under Code Section 817(d) (relating to the definition of a variable contract), it 66 ------------------------------------------------------------------------------- would provide guidance on the extent to which contract owners may direct their investments to particular Sub-Accounts without being treated as tax owners of the underlying shares. Although no such regulations have been issued to date, the IRS has issued a number of rulings that indicate that this issue remains subject to a facts and circumstances test for both variable annuity and life insurance contracts. For instance, the IRS in Rev. Rul. 2003-92, amplified by Rev. Rul. 2007-7, reiterated its position in prior rulings that, where shares in a fund offered in an insurer's separate account are not available exclusively through the purchase of a variable insurance contract (e.g., where such shares can be purchased directly by the general public or others without going through such a variable contract), such "public availability" means that such shares should be treated as owned directly by the contract owner (and not by the insurer) for tax purposes, as if such contract owner had chosen instead to purchase such shares directly (without going through the variable contract). None of the shares or other interests in the fund choices offered in our Separate Account for your Contract are available for purchase except through an insurer's variable contracts or by other permitted entities. The IRS in Rev. Rul. 2003-91 also indicated that an insurer could provide as many as 20 fund choices for its variable contract owners (each with a general investment strategy, e.g., a small company stock fund or a special industry fund) under certain circumstances, without causing such a contract owner to be treated as the tax owner of any of the Fund assets. The ruling does not specify the number of fund options, if any, that might prevent a variable contract owner from receiving favorable tax treatment. As a result, we believe that any owner of a Contract also should receive the same favorable tax treatment. However, there is necessarily some uncertainty here as long as the IRS continues to use a facts and circumstances test for investor control and other tax ownership issues. Therefore, we reserve the right to modify the Contract as necessary to prevent you from being treated as the tax owner of any underlying assets. D. FEDERAL INCOME TAX WITHHOLDING The portion of an amount received under a Contract that is taxable gross income to the Payee is also subject to federal income tax withholding, pursuant to Code Section 3405, which requires the following: 1. Non-Periodic Distributions. The portion of a non-periodic distribution that is includable in gross income is subject to federal income tax withholding unless an individual elects not to have such tax withheld ("election out"). We will provide such an "election out" form at the time such a distribution is requested. If the necessary "election out" form is not submitted to us in a timely manner, generally we are required to withhold 10 percent of the includable amount of distribution and remit it to the IRS. 2. Periodic Distributions (payable over a period greater than one year). The portion of a periodic distribution that is includable in gross income is generally subject to federal income tax withholding as if the Payee were a married individual claiming 3 exemptions, unless the individual elects otherwise. An individual generally may elect out of such withholding, or elect to have income tax withheld at a different rate, by providing a completed election form. We will provide such an election form at the time such a distribution is requested. If the necessary "election out" forms are not submitted to us in a timely manner, we are required to withhold tax as if the recipient were married claiming 3 exemptions, and remit this amount to the IRS. Generally no "election out" is permitted if the distribution is delivered outside the United States and any possession of the United States. Regardless of any "election out" (or any amount of tax actually withheld) on an amount received from a Contract, the Payee is generally liable for any failure to pay the full amount of tax due on the includable portion of such amount received. A Payee also may be required to pay penalties under estimated income tax rules, if the withholding and estimated tax payments are insufficient to satisfy the Payee's total tax liability. E. GENERAL PROVISIONS AFFECTING QUALIFIED RETIREMENT PLANS The Contract may be used for a number of qualified retirement plans. If the Contract is being purchased with respect to some form of qualified retirement plan, please refer to Section 10 for information relative to the types of plans for which it may be used and the general explanation of the tax features of such plans. F. ANNUITY PURCHASES BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to U.S. federal income tax and mandatory withholding on U.S. source taxable annuity distributions at a 30% rate, unless a lower treaty rate applies and any required tax forms are submitted to us. If withholding applies, we are required to withhold tax at the 30% rate, or a lower treaty rate if applicable, and remit it to the IRS. In addition, purchasers may be subject to state premium tax, other state and/or municipal taxes, and taxes that may be imposed by the purchaser's country of citizenship or residence. G. ESTATE, GIFT AND GENERATION-SKIPPING TAX AND RELATED TAX CONSIDERATIONS Any amount payable upon a Contract Owner's death, whether before or after the Annuity Commencement Date, is generally includable in the Contract Owner's estate for federal estate tax purposes. Similarly, prior to the Contract Owner's death, the 67 ------------------------------------------------------------------------------- payment of any amount from the Contract, or the transfer of any interest in the Contract, to a beneficiary or other person for less than adequate consideration may have federal gift tax consequences. In addition, any transfer to, or designation of, a non-Spouse beneficiary who either is (1) 37 1/2 or more years younger than a Contract Owner or (2) a grandchild (or more remote further descendent) of a Contract Owner may have federal generation-skipping-transfer ("GST") tax consequences under Code Section 2601. Regulations under Code Section 2662 may require us to deduct any such GST tax from your Contract, or from any applicable payment, and pay it directly to the IRS. However, any federal estate, gift or GST tax payment with respect to a Contract could produce an offsetting income tax deduction for a beneficiary or transferee under Code Section 691(c) (partially offsetting such federal estate or GST tax) or a basis increase for a beneficiary or transferee under Code Section 691(c) or Section 1015(d). In addition, as indicated above in "Distributions Prior to the Annuity Commencement Date," the transfer of a Contract for less than adequate consideration during the Contract Owner's lifetime generally is treated as producing an amount received by such Contract Owner that is subject to both income tax and the 10% penalty tax. To the extent that such an amount deemed received causes an amount to be includable currently in such Contract Owner's gross income, this same income amount could produce a corresponding increase in such Contract Owner's tax basis for such Contract that is carried over to the transferee's tax basis for such Contract under Code Section 72(e)(4)(C)(iii) and Section 1015. 10. INFORMATION REGARDING TAX-QUALIFIED RETIREMENT PLANS This summary does not attempt to provide more than general information about the federal income tax rules associated with use of a Contract by a tax-qualified retirement plan. State income tax rules applicable to tax-qualified retirement plans often differ from federal income tax rules, and this summary does not describe any of these differences. Because of the complexity of the tax rules, owners, participants and beneficiaries are encouraged to consult their own tax advisors as to specific tax consequences. The Contracts are available to a variety of tax-qualified retirement plans and arrangements (a "Qualified Plan" or "Plan"). Tax restrictions and consequences for Contracts or accounts under each type of Qualified Plan differ from each other and from those for Non-Qualified Contracts. In addition, individual Qualified Plans may have terms and conditions that impose additional rules. Therefore, no attempt is made herein to provide more than general information about the use of the Contract with the various types of Qualified Plans. Participants under such Qualified Plans, as well as Contract Owners, annuitants and beneficiaries, are cautioned that the rights of any person to any benefits under such Qualified Plans may be subject to terms and conditions of the Plans themselves or limited by applicable law, regardless of the terms and conditions of the Contract issued in connection therewith. Qualified Plans generally provide for the tax deferral of income regardless of whether the Qualified Plan invests in an annuity or other investment. You should consider if the Contract is a suitable investment if you are investing through a Qualified Plan. THE FOLLOWING IS ONLY A GENERAL DISCUSSION ABOUT TYPES OF QUALIFIED PLANS FOR WHICH THE CONTRACTS MAY BE AVAILABLE. WE ARE NOT THE PLAN ADMINISTRATOR FOR ANY QUALIFIED PLAN. THE PLAN ADMINISTRATOR OR CUSTODIAN, WHICHEVER IS APPLICABLE, (BUT NOT US) IS RESPONSIBLE FOR ALL PLAN ADMINISTRATIVE DUTIES INCLUDING, BUT NOT LIMITED TO, NOTIFICATION OF DISTRIBUTION OPTIONS, DISBURSEMENT OF PLAN BENEFITS, HANDLING ANY PROCESSING AND ADMINISTRATION OF QUALIFIED PLAN LOANS, COMPLIANCE REGULATORY REQUIREMENTS AND FEDERAL AND STATE TAX REPORTING OF INCOME/DISTRIBUTIONS FROM THE PLAN TO PLAN PARTICIPANTS AND, IF APPLICABLE, BENEFICIARIES OF PLAN PARTICIPANTS AND IRA CONTRIBUTIONS FROM PLAN PARTICIPANTS. OUR ADMINISTRATIVE DUTIES ARE LIMITED TO ADMINISTRATION OF THE CONTRACT AND ANY DISBURSEMENTS OF ANY CONTRACT BENEFITS TO THE OWNER, ANNUITANT OR BENEFICIARY OF THE CONTRACT, AS APPLICABLE. OUR TAX REPORTING RESPONSIBILITY IS LIMITED TO FEDERAL AND STATE TAX REPORTING OF INCOME/DISTRIBUTIONS TO THE APPLICABLE PAYEE AND IRA CONTRIBUTIONS FROM THE OWNER OF A CONTRACT, AS RECORDED ON OUR BOOKS AND RECORDS. IF YOU ARE PURCHASING A QUALIFIED CONTRACT, YOU SHOULD CONSULT WITH YOUR PLAN ADMINISTRATOR AND/OR A QUALIFIED TAX ADVISER. YOU ALSO SHOULD CONSULT WITH A QUALIFIED TAX ADVISER AND/OR PLAN ADMINISTRATOR BEFORE YOU WITHDRAW ANY PORTION OF YOUR CONTRACT VALUE. The tax rules applicable to Qualified Contracts and Qualified Plans, including restrictions on contributions and distributions, taxation of distributions and tax penalties, vary according to the type of Qualified Plan, as well as the terms and conditions of the Plan itself. Various tax penalties may apply to contributions in excess of specified limits, plan distributions (including loans) that do not comply with specified limits, and certain other transactions relating to such Plans. Accordingly, this summary provides only general information about the tax rules associated with use of a Qualified Contract in such a Qualified Plan. In addition, some Qualified Plans are subject to distribution and other requirements that are not incorporated into our administrative procedures. Owners, participants, and beneficiaries are responsible for determining that contributions, distributions and other transactions comply with applicable tax (and non-tax) law. Because of the complexity of these rules, Owners, participants and beneficiaries are advised to consult with a qualified tax adviser as to specific tax consequences. We do not currently offer the Contracts in connection with all of the types of Qualified Plans discussed below, and may not offer the Contracts for all types of Qualified Plans in the future. 1. INDIVIDUAL RETIREMENT ANNUITIES ("IRAS"). In addition to "traditional" IRAs governed by Code Sections 408(a) and (b) ("Traditional IRAs"), there are Roth IRAs governed by Code Section 408A, SEP IRAs governed by Code Section 408(k), and SIMPLE IRAs governed by Code Section 408(p). Also, Qualified Plans under Code Section 401, 403(b) or 457(b) that include after-tax employee contributions may be treated as deemed IRAs 68 ------------------------------------------------------------------------------- subject to the same rules and limitations as Traditional IRAs. Contributions to each of these types of IRAs are subject to differing limitations. The following is a very general description of each type of IRA for which a Contract is available. a. TRADITIONAL IRAS Traditional IRAs are subject to limits on the amounts that may be contributed each year, the persons who may be eligible, and the time when minimum distributions must begin. Depending upon the circumstances of the individual, contributions to a Traditional IRA may be made on a deductible or non-deductible basis. Failure to make required minimum distributions ("RMDs") when the Owner reaches age 70 1/2 or dies, as described below, may result in imposition of a 50% penalty tax on any excess of the RMD amount over the amount actually distributed. In addition, any amount received before the Owner reaches age 59 1/2 or dies is subject to a 10% penalty tax on premature distributions, unless a special exception applies, as described below. Under Code Section 408(e), an IRA may not be used for borrowing (or as security for any loan) or in certain prohibited transactions, and such a transaction could lead to the complete tax disqualification of an IRA. You (or your surviving spouse if you die) may rollover funds tax-free from certain existing Qualified Plans (such as proceeds from existing insurance contracts, annuity contracts or securities) into a Traditional IRA under certain circumstances, as indicated below. However, mandatory tax withholding of 20% may apply to any eligible rollover distribution from certain types of Qualified Plans if the distribution is not transferred directly to the Traditional IRA. In addition, under Code Section 402(c)(11) a non-spouse "designated beneficiary" of a deceased Plan participant may make a tax-free "direct rollover" (in the form of a direct transfer between Plan fiduciaries, as described below in "Rollover Distributions") from certain Qualified Plans to a Traditional IRA for such beneficiary, but such Traditional IRA must be designated and treated as an "inherited IRA" that remains subject to applicable RMD rules (as if such IRA had been inherited from the deceased Plan participant). In addition, such a Plan is not required to permit such a rollover. IRAs generally may not invest in life insurance contracts. However, an annuity contract that is used as an IRA may provide a death benefit that equals the greater of the premiums paid or the contract's cash value. The Contract offers an enhanced death benefit that may exceed the greater of the Contract Value or total premium payments. The tax rules are unclear as to what extent an IRA can provide a death benefit that exceeds the greater of the IRA's cash value or the sum of the premiums paid and other contributions into the IRA. Please note that the IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as an IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. b. SEP IRAS Code Section 408(k) provides for a Traditional IRA in the form of an employer-sponsored defined contribution plan known as a Simplified Employee Pension ("SEP") or a SEP IRA. A SEP IRA can have employer, employee and salary reduction contributions, as well as higher overall contribution limits than a Traditional IRA, but a SEP is also subject to special tax-qualification requirements (e.g., on participation, nondiscrimination and withdrawals) and sanctions. Otherwise, a SEP IRA is generally subject to the same tax rules as for a Traditional IRA, which are described above. Please note that the IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as an IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. c. SIMPLE IRAS The Savings Incentive Match Plan for Employees of small employers ("SIMPLE Plan") is a form of an employer-sponsored Qualified Plan that provides IRA benefits for the participating employees ("SIMPLE IRAs"). Depending upon the SIMPLE Plan, employers may make plan contributions into a SIMPLE IRA established by each eligible participant. Like a Traditional IRA, a SIMPLE IRA is subject to the 50% penalty tax for failure to make a full RMD, and to the 10% penalty tax on premature distributions, as described below. In addition, the 10% penalty tax is increased to 25% for amounts received during the 2-year period beginning on the date you first participated in a qualified salary reduction arrangement pursuant to a SIMPLE Plan maintained by your employer under Code Section 408(p)(2). Contributions to a SIMPLE IRA may be either salary deferral contributions or employer contributions, and these are subject to different tax limits from those for a Traditional IRA. Please note that the SIMPLE IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as an SIMPLE IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. A SIMPLE Plan may designate a single financial institution (a Designated Financial Institution) as the initial trustee, custodian or issuer (in the case of an annuity contract) of the SIMPLE IRA set up for each eligible participant. However, any such Plan also must allow each eligible participant to have the balance in his SIMPLE IRA held by the Designated Financial Institution transferred without cost or penalty to a SIMPLE IRA maintained by a different financial institution. Absent a Designated Financial Institution, each eligible participant must select the financial institution to hold his SIMPLE IRA, and notify his employer of this selection. If we do not serve as the Designated Financial Institution for your employer's SIMPLE Plan, for you to use one of our Contracts as a SIMPLE IRA, you need to provide your employer with appropriate notification of such a selection under the SIMPLE Plan. If you 69 ------------------------------------------------------------------------------- choose, you may arrange for a qualifying transfer of any amounts currently held in another SIMPLE IRA for your benefit to your SIMPLE IRA with us. d. ROTH IRAS Code Section 408A permits eligible individuals to establish a Roth IRA. Contributions to a Roth IRA are not deductible, but withdrawals of amounts contributed and the earnings thereon that meet certain requirements are not subject to federal income tax. In general, Roth IRAs are subject to limitations on the amounts that may be contributed by the persons who may be eligible to contribute, certain Traditional IRA restrictions, and certain RMD rules on the death of the Contract Owner. Unlike a Traditional IRA, Roth IRAs are not subject to RMD rules during the Contract Owner's lifetime. Generally, however, upon the Owner's death the amount remaining in a Roth IRA must be distributed by the end of the fifth year after such death or distributed over the life expectancy of a designated beneficiary. The Owner of a Traditional IRA may convert a Traditional IRA into a Roth IRA under certain circumstances. The conversion of a Traditional IRA to a Roth IRA will subject the fair market value of the converted Traditional IRA to federal income tax. In addition to the amount held in the converted Traditional IRA, the fair market value may include the value of additional benefits provided by the annuity contract on the date of conversion, based on reasonable actuarial assumptions. Tax-free rollovers from a Roth IRA can be made only to another Roth IRA under limited circumstances, as indicated below. After 2007, distributions from eligible Qualified Plans can be "rolled over" directly (subject to tax) into a Roth IRA under certain circumstances. Anyone considering the purchase of a Qualified Contract as a Roth IRA or a "conversion" Roth IRA should consult with a qualified tax adviser. Please note that the Roth IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as a Roth IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. 2. QUALIFIED PENSION OR PROFIT-SHARING PLAN OR SECTION 401(k) PLAN Provisions of the Code permit eligible employers to establish a tax-qualified pension or profit sharing plan (described in Section 401(a), and Section 401(k) if applicable, and exempt from taxation under Section 501(a)). Such a Plan is subject to limitations on the amounts that may be contributed, the persons who may be eligible to participate, the amounts of "incidental" death benefits, and the time when RMDs must commence. In addition, a Plan's provision of incidental benefits may result in currently taxable income to the participant for some or all of such benefits. Amounts may be rolled over tax-free from a Qualified Plan to another Qualified Plan under certain circumstances, as described below. Anyone considering the use of a Qualified Contract in connection with such a Qualified Plan should seek competent tax and other legal advice. In particular, please note that these tax rules provide for limits on death benefits provided by a Qualified Plan (to keep such death benefits "incidental" to qualified retirement benefits), and a Qualified Plan (or a Qualified Contract) often contains provisions that effectively limit such death benefits to preserve the tax qualification of the Qualified Plan (or Qualified Contract). In addition, various tax-qualification rules for Qualified Plans specifically limit increases in benefits once RMDs begin, and Qualified Contracts are subject to such limits. As a result, the amounts of certain benefits that can be provided by any option under a Qualified Contract may be limited by the provisions of the Qualified Contract or governing Qualified Plan that are designed to preserve its tax qualification. 3. TAX SHELTERED ANNUITY UNDER SECTION 403(B) ("TSA") Code Section 403(b) permits public school employees and employees of certain types of charitable, educational and scientific organizations described in Code Section 501(c)(3) to purchase a "tax-sheltered annuity" ("TSA") contract and, subject to certain limitations, exclude employer contributions to a TSA from such an employee's gross income. Generally, total contributions may not exceed the lesser of an annual dollar limit (e.g., $46,000 in 2008) or 100% of the employee's "includable compensation" for the most recent full year of service, subject to other adjustments. The general annual elective deferral limit for a TSA participant after 2005 is $15,000. In addition, for years after 2006 this $15,000 limit will be indexed for cost-of-living adjustments under Code Section 402(g)(4) at $500 increments. For any such participant age 50 or older, the contribution limit after 2005 generally is increased by an additional $5,000 under Code Section 414(v). For years after 2006 this "over-50 catch-up" $5,000 limit also will be indexed for cost-of-living adjustments under Code Section 414(v)(2)(C) at $500 increments. Special provisions may allow certain employees different overall limitations. A TSA is subject to a prohibition against distributions from the TSA attributable to contributions made pursuant to a salary reduction agreement, unless such distribution is made: a. after the employee reaches age 59 1/2; b. upon the employee's separation from service; c. upon the employee's death or disability; d. in the case of hardship (and in the case of hardship, any income attributable to such contributions may not be distributed); or e. as a qualified reservist distribution upon certain calls to active duty. 70 ------------------------------------------------------------------------------- Please note that the TSA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as a TSA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. In particular, please note that tax rules provide for limits on death benefits provided by a Qualified Plan (to keep such death benefits "incidental" to qualified retirement benefits), and a Qualified Plan (or a Qualified Contract) often contains provisions that effectively limit such death benefits to preserve the tax qualification of the Qualified Plan (or Qualified Contract). In addition, various tax-qualification rules for Qualified Plans specifically limit increases in benefits once RMDs begin, and Qualified Contracts are subject to such limits. As a result, the amounts of certain benefits that can be provided by any option under a Qualified Contract may be limited by the provisions of the Qualified Contract or governing Qualified Plan that are designed to preserve its tax qualification. In addition, a life insurance contract issued after September 23, 2007 is generally ineligible to qualify as a TSA under Reg. Section 1.403(b)-8(c)(2). Amounts may be rolled over tax-free from a TSA to another TSA or Qualified Plan (or from a Qualified Plan to a TSA) under certain circumstances, as described below. However, effective for TSA contract exchanges after September 24, 2007, Reg. ' 1.403(b)-10(b) allows a TSA contract of a participant or beneficiary under a TSA Plan to be exchanged tax-free for another eligible TSA contract under that same TSA Plan, but only if all of the following conditions are satisfied: (1) such TSA Plan allows such an exchange, (2) the participant or beneficiary has an accumulated benefit after such exchange that is no less than such participant's or beneficiary's accumulated benefit immediately before such exchange (taking into account such participant's or beneficiary's accumulated benefit under both TSA contracts immediately before such exchange), (3) the second TSA contract is subject to distribution restrictions with respect to the participant that are no less stringent than those imposed on the TSA contract being exchanged, and (4) the employer for such TSA Plan enters into an agreement with the issuer of the second TSA contract under which such issuer and employer will provide each other from time to time with certain information necessary for such second TSA contract (or any other TSA contract that has contributions from such employer) to satisfy the TSA requirements under Code Section 403(b) and other federal tax requirements (e.g., plan loan conditions under Code Section 72(p) to avoid deemed distributions). Such necessary information could include information about the participant's employment, information about other Qualified Plans of such employer, and whether a severance has occurred, or hardship rules are satisfied, for purposes of the TSA distribution restrictions. Consequently, you are advised to consult with a qualified tax advisor before attempting any such TSA exchange, particularly because it requires an agreement between the employer and issuer to provide each other with certain information. We are no longer accepting any incoming exchange request, or new contract application, for any individual TSA contract. 4. DEFERRED COMPENSATION PLANS UNDER SECTION 457 ("SECTION 457 PLANS") Certain governmental employers, or tax-exempt employers other than a governmental entity, can establish a Deferred Compensation Plan under Code Section 457. For these purposes, a "governmental employer" is a State, a political subdivision of a State, or an agency or an instrumentality of a State or political subdivision of a State. A Deferred Compensation Plan that meets the requirements of Code Section 457(b) is called an "Eligible Deferred Compensation Plan" or "Section 457(b) Plan." Code Section 457(b) limits the amount of contributions that can be made to an Eligible Deferred Compensation Plan on behalf of a participant. Generally, the limitation on contributions is the lesser of (1) 100% of a participant's includible compensation or (2) the applicable dollar amount, equal to $15,000 for 2006 and thereafter. The $15,000 limit will be indexed for cost-of-living adjustments at $500 increments. The Plan may provide for additional "catch-up" contributions during the three taxable years ending before the year in which the participant attains normal retirement age. In addition, with an eligible Deferred Compensation Plan for a governmental employer, the contribution limitation may be increased under Code Section 457(e)(18) to allow certain "catch-up" contributions for individuals who have attained age 50, but only one "catch-up" may be used in a particular year. In addition, under Code Section 457(d) a Section 457(b) Plan may not make amounts available for distribution to participants or beneficiaries before (1) the calendar year in which the participant attains age 70 1/2, (2) the participant has a severance from employment (including death), or (3) the participant is faced with an unforeseeable emergency (as determined in accordance with regulations). Under Code Section 457(g) all of the assets and income of an Eligible Deferred Compensation Plan for a governmental employer must be held in trust for the exclusive benefit of participants and their beneficiaries. For this purpose, annuity contracts and custodial accounts described in Code Section 401(f) are treated as trusts. This trust requirement does not apply to amounts under an Eligible Deferred Compensation Plan of a tax-exempt (non-governmental) employer. In addition, this trust requirement does not apply to amounts held under a Deferred Compensation Plan of a governmental employer that is not a Section 457(b) Plan. However, where the trust requirement does not apply, amounts held under a Section 457 Plan must remain subject to the claims of the employer's general creditors under Code Section 457(b)(6). 5. TAXATION OF AMOUNTS RECEIVED FROM QUALIFIED PLANS Except under certain circumstances in the case of Roth IRAs, amounts received from Qualified Contracts or Plans generally are taxed as ordinary income under Code Section 72, to the extent that they are not treated as a tax-free recovery of after-tax contributions or other "investment in the contract." For annuity payments and other amounts received after the Annuity Commencement Date from a Qualified Contract or Plan, the tax rules for determining what portion of each amount received represents a tax-free recovery of "investment in the contract" are generally the same as for Non-Qualified Contracts, as described above. 71 ------------------------------------------------------------------------------- For non-periodic amounts from certain Qualified Contracts or Plans, Code Section 72(e)(8) provides special rules that generally treat a portion of each amount received as a tax-free recovery of the "investment in the contract," based on the ratio of the "investment in the contract" over the Contract Value at the time of distribution. However, in determining such a ratio, certain aggregation rules may apply and may vary, depending on the type of Qualified Contract or Plan. For instance, all Traditional IRAs owned by the same individual are generally aggregated for these purposes, but such an aggregation does not include any IRA inherited by such individual or any Roth IRA owned by such individual. In addition, penalty taxes, mandatory tax withholding or rollover rules may apply to amounts received from a Qualified Contract or Plan, as indicated below, and certain exclusions may apply to certain distributions (e.g., distributions from an eligible Government Plan to pay qualified health insurance premiums of an eligible retired public safety officer). Accordingly, you are advised to consult with a qualified tax adviser before taking or receiving any amount (including a loan) from a Qualified Contract or Plan. 6. PENALTY TAXES FOR QUALIFIED PLANS Unlike Non-Qualified Contracts, Qualified Contracts are subject to federal penalty taxes not just on premature distributions, but also on excess contributions and failures to make required minimum distributions ("RMDs"). Penalty taxes on excess contributions can vary by type of Qualified Plan and which person made the excess contribution (e.g., employer or an employee). The penalty taxes on premature distributions and failures to make timely RMDs are more uniform, and are described in more detail below. a. PENALTY TAXES ON PREMATURE DISTRIBUTIONS Code Section 72(t) imposes a penalty income tax equal to 10% of the taxable portion of a distribution from certain types of Qualified Plans that is made before the employee reaches age 59 1/2. However, this 10% penalty tax does not apply to a distribution that is either: (i) made to a beneficiary (or to the employee's estate) on or after the employee's death; (ii) attributable to the employee's becoming disabled under Code Section 72(m)(7); (iii) part of a series of substantially equal periodic payments (not less frequently than annually -- "SEPPs") made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of such employee and a designated beneficiary ("SEPP Exception"), and for certain Qualified Plans (other than IRAs) such a series must begin after the employee separates from service; (iv) (except for IRAs) made to an employee after separation from service after reaching age 55 (or made after age 50 in the case of a qualified public safety employee separated from certain government plans); (v) (except for IRAs) made to an alternate payee pursuant to a qualified domestic relations order under Code Section 414(p) (a similar exception for IRAs in Code Section 408(d)(6) covers certain transfers for the benefit of a spouse or ex-spouse); (vi) not greater than the amount allowable as a deduction to the employee for eligible medical expenses during the taxable year; or (vii) certain qualified reservist distributions under Code Section 72(t)(2)(G) upon a call to active duty. In addition, the 10% penalty tax does not apply to a distribution from an IRA that is either: (viii) made after separation from employment to an unemployed IRA owner for health insurance premiums, if certain conditions are met; (ix) not in excess of the amount of certain qualifying higher education expenses, as defined by Code Section 72(t)(7); or (x) for a qualified first-time home buyer and meets the requirements of Code Section 72(t)(8). If the taxpayer avoids this 10% penalty tax by qualifying for the SEPP Exception and later such series of payments is modified (other than by death or disability), the 10% penalty tax will be applied retroactively to all the prior periodic payments (i.e., penalty tax plus interest thereon), unless such modification is made after both (a) the employee has reached age 59 1/2 and (b) 5 years have elapsed since the first of these periodic payments. For any premature distribution from a SIMPLE IRA during the first 2 years that an individual participates in a salary reduction arrangement maintained by that individual's employer under a SIMPLE Plan, the 10% penalty tax rate is increased to 25%. b. RMDS AND 50% PENALTY TAX If the amount distributed from a Qualified Contract or Plan is less than the amount of the required minimum distribution ("RMD") for the year, the participant is subject to a 50% penalty tax on the amount that has not been timely distributed. An individual's interest in a Qualified Plan generally must be distributed, or begin to be distributed, not later than the Required Beginning Date. Generally, the Required Beginning Date is April 1 of the calendar year following the later of -- (i) the calendar year in which the individual attains age 70 1/2, or 72 ------------------------------------------------------------------------------- (ii) (except in the case of an IRA or a 5% owner, as defined in the Code) the calendar year in which a participant retires from service with the employer sponsoring a Qualified Plan that allows such a later Required Beginning Date. The entire interest of the individual must be distributed beginning no later than the Required Beginning Date over -- (a) the life of the individual or the lives of the individual and a designated beneficiary (as specified in the Code), or (b) over a period not extending beyond the life expectancy of the individual or the joint life expectancy of the individual and a designated beneficiary. If an individual dies before reaching the Required Beginning Date, the individual's entire interest generally must be distributed within 5 years after the individual's death. However, this RMD rule will be deemed satisfied if distributions begin before the close of the calendar year following the individual's death to a designated beneficiary and distribution is over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary). If such beneficiary is the individual's surviving spouse, distributions may be delayed until the deceased individual would have attained age 70 1/2. If an individual dies after RMDs have begun for such individual, any remainder of the individual's interest generally must be distributed at least as rapidly as under the method of distribution in effect at the time of the individual's death. The RMD rules that apply while the Contract Owner is alive do not apply with respect to Roth IRAs. The RMD rules applicable after the death of the Owner apply to all Qualified Plans, including Roth IRAs. In addition, if the Owner of a Traditional or Roth IRA dies and the Owner's surviving spouse is the sole designated beneficiary, this surviving spouse may elect to treat the Traditional or Roth IRA as his or her own. The RMD amount for each year is determined generally by dividing the account balance by the applicable life expectancy. This account balance is generally based upon the account value as of the close of business on the last day of the previous calendar year. RMD incidental benefit rules also may require a larger annual RMD amount, particularly when distributions are made over the joint lives of the Owner and an individual other than his or her spouse. RMDs also can be made in the form of annuity payments that satisfy the rules set forth in Regulations under the Code relating to RMDs. In addition, in computing any RMD amount based on a contract's account value, such account value must include the actuarial value of certain additional benefits provided by the contract. As a result, electing an optional benefit under a Qualified Contract may require the RMD amount for such Qualified Contract to be increased each year, and expose such additional RMD amount to the 50% penalty tax for RMDs if such additional RMD amount is not timely distributed. 7. TAX WITHHOLDING FOR QUALIFIED PLANS Distributions from a Qualified Contract or Qualified Plan generally are subject to federal income tax withholding requirements. These federal income tax withholding requirements, including any "elections out" and the rate at which withholding applies, generally are the same as for periodic and non-periodic distributions from a Non-Qualified Contract, as described above, except where the distribution is an "eligible rollover distribution" (described below in "ROLLOVER DISTRIBUTIONS"). In the latter case, tax withholding is mandatory at a rate of 20% of the taxable portion of the "eligible rollover distribution," to the extent it is not directly rolled over to an IRA or other Eligible Retirement Plan (described below in "ROLLOVER DISTRIBUTIONS"). Payees cannot elect out of this mandatory 20% withholding in the case of such an "eligible rollover distribution." Also, special withholding rules apply with respect to distributions from non-governmental Section 457(b) Plans, and to distributions made to individuals who are neither citizens nor resident aliens of the United States. Regardless of any "election out" (or any actual amount of tax actually withheld) on an amount received from a Qualified Contract or Plan, the payee is generally liable for any failure to pay the full amount of tax due on the includable portion of such amount received. A payee also may be required to pay penalties under estimated income tax rules, if the withholding and estimated tax payments are insufficient to satisfy the payee's total tax liability. 8. ROLLOVER DISTRIBUTIONS The current tax rules and limits for tax-free rollovers and transfers between Qualified Plans vary according to (1) the type of transferor Plan and transferee Plan, (2) whether the amount involved is transferred directly between Plan fiduciaries (a "direct transfer" or a "direct rollover") or is distributed first to a participant or beneficiary who then transfers that amount back into another eligible Plan within 60 days (a "60-day rollover"), and (3) whether the distribution is made to a participant, spouse or other beneficiary. Accordingly, we advise you to consult with a qualified tax adviser before receiving any amount from a Qualified Contract or Plan or attempting some form of rollover or transfer with a Qualified Contract or Plan. For instance, generally any amount can be transferred directly from one type of Qualified Plan (e.g., a TSA) to the same type of Plan for the benefit of the same individual, without limit (or federal income tax), if the transferee Plan is subject to the same kinds of restrictions as the transferor Plan (e.g., a TSA that is subject to the same kinds of salary reduction restrictions) and certain other conditions to maintain the applicable tax qualification are satisfied (e.g., as described above for TSA exchanges after September 24, 73 ------------------------------------------------------------------------------- 2007). Such a "direct transfer" between the same kinds of Plan is generally not treated as any form of "distribution" out of such a Plan for federal income tax purposes. By contrast, an amount distributed from one type of Plan (e.g., a TSA) into a different type of Plan (e.g., a Traditional IRA) generally is treated as a "distribution" out of the first Plan for federal income tax purposes, and therefore to avoid being subject to such tax, such a distribution must qualify either as a "direct rollover" (made directly to another Plan fiduciary) or as a "60-day rollover." The tax restrictions and other rules for a "direct rollover" and a "60-day rollover" are similar in many ways, but if any "eligible rollover distribution" made from certain types of Qualified Plan is not transferred directly to another Plan fiduciary by a "direct rollover," then it is subject to mandatory 20% withholding, even if it is later contributed to that same Plan in a "60-day rollover" by the recipient. If any amount less than 100% of such a distribution (e.g., the net amount after the 20% withholding) is transferred to another Plan in a "60-day rollover", the missing amount that is not rolled over remains subject to normal income tax plus any applicable penalty tax. Under Code Sections 402(f)(2)(A) and 3405(c)(3) an "eligible rollover distribution" (which is both eligible for rollover treatment and subject to 20% mandatory withholding absent a "direct rollover") is generally any distribution to an employee of any portion (or all) of the balance to the employee's credit in any of the following types of "Eligible Retirement Plan": (1) a Qualified Plan under Code Section 401(a) ("Qualified 401(a) Plan"), (2) a qualified annuity plan under Code Section 403(a) ("Qualified Annuity Plan"), (3) a TSA under Code Section 403(b), or (4) a governmental Section 457(b) Plan. However, an "eligible rollover distribution" does not include any distribution that is either -- a. an RMD amount; b. one of a series of substantially equal periodic payments (not less frequently than annually) made either (i) for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and a designated beneficiary, or (ii) for a specified period of 10 years or more; or c. any distribution made upon hardship of the employee. Before making an "eligible rollover distribution," a Plan administrator generally is required under Code Section 402(f) to provide the recipient with advance written notice of the "direct rollover" and "60-day rollover" rules and the distribution's exposure to the 20% mandatory withholding if it is not made by "direct rollover." Generally, under Code Sections 402(c), 403(b)(8) and 457 (e)(16), a "direct rollover" or a "60-day rollover" of an "eligible rollover distribution" can be made to a Traditional IRA or to another Eligible Retirement Plan that agrees to accept such a rollover. However, the maximum amount of an "eligible rollover distribution" that can qualify for a tax-free "60-day rollover" is limited to the amount that otherwise would be includable in gross income. By contrast, a "direct rollover" of an "eligible rollover distribution" can include after-tax contributions as well, if the direct rollover is made either to a Traditional IRA or to another form of Eligible Retirement Plan that agrees to account separately for such a rollover, including accounting for such after-tax amounts separately from the otherwise taxable portion of this rollover. Separate accounting also is required for all amounts (taxable or not) that are rolled into a governmental Section 457(b) Plan from either a Qualified Section 401(a) Plan, Qualified Annuity Plan, TSA or IRA. These amounts, when later distributed from the governmental Section 457(b) Plan, are subject to any premature distribution penalty tax applicable to distributions from such a "predecessor" Qualified Plan. Rollover rules for distributions from IRAs under Code Sections 408(d)(3) and 408A(d)(3) also vary according to the type of transferor IRA and type of transferee IRA or other Plan. For instance, generally no tax-free "direct rollover" or "60-day rollover" can be made between a "NonRoth IRA" (Traditional, SEP or SIMPLE IRA) and a Roth IRA, and a transfer from NonRoth IRA to a Roth IRA, or a "conversion" of a NonRoth IRA to a Roth IRA, is subject to special rules. In addition, generally no tax-free "direct rollover" or "60-day rollover" can be made between an "inherited IRA" (NonRoth or Roth) for a beneficiary and an IRA set up by that same individual as the original owner. Generally, any amount other than an RMD distributed from a Traditional or SEP IRA is eligible for a "direct rollover" or a "60-day rollover" to another Traditional IRA for the same individual. Similarly, any amount other than an RMD distributed from a Roth IRA is generally eligible for a "direct rollover" or a "60-day rollover" to another Roth IRA for the same individual. However, in either case such a tax-free 60-day rollover is limited to 1 per year (365-day period); whereas no 1-year limit applies to any such "direct rollover." Similar rules apply to a "direct rollover" or a "60-day rollover" of a distribution from a SIMPLE IRA to another SIMPLE IRA or a Traditional IRA, except that any distribution of employer contributions from a SIMPLE IRA during the initial 2-year period in which the individual participates in the employer's SIMPLE Plan is generally disqualified (and subject to the 25% penalty tax on premature distributions) if it is not rolled into another SIMPLE IRA for that individual. Amounts other than RMDs distributed from a Traditional or SEP IRA (or SIMPLE IRA after the initial 2-year period) also are eligible for a "direct rollover" or a "60-day rollover" to an Eligible Retirement Plan (e.g., a TSA) that accepts such a rollover, but any such rollover is limited to the amount of the distribution that otherwise would be includable in gross income (i.e., after-tax contributions are not eligible). Special rules also apply to transfers or rollovers for the benefit of a spouse (or ex-spouse) or a nonspouse designated beneficiary, Plan distributions of property, and obtaining a waiver of the 60-day limit for a tax-free rollover from the IRS. The Katrina Emergency Tax Relief Act of 2005 (KETRA) allows certain amounts to be recontributed within three years as a rollover contribution to a plan from which a KETRA distribution was taken. 74 ------------------------------------------------------------------------------- TABLE OF CONTENTS TO STATEMENT OF ADDITIONAL INFORMATION GENERAL INFORMATION Safekeeping of Assets Experts Non-Participating Misstatement of Age or Sex Principal Underwriter Additional Payments PERFORMANCE RELATED INFORMATION Total Return for all Sub-Accounts Yield for Sub-Accounts Money Market Sub-Accounts Additional Materials Performance Comparisons ACCUMULATION UNIT VALUES FINANCIAL STATEMENTS
APP I-1 ------------------------------------------------------------------------------- APPENDIX I -- EXAMPLES TABLE OF CONTENTS
PAGE -------------------------------------------------------------------------------- Premium Security Death Benefit APP 1-2 Asset Protection Death Benefit APP 1-4 The Hartford's Principal First APP 1-6 The Hartford's Principal First Preferred APP 1-7 The Hartford's Lifetime Income Builder APP 1-8 The Hartford's Lifetime Income Foundation APP 1-10 The Hartford's Lifetime Income Builder II APP 1-14 The Hartford's Lifetime Income Builder Selects and The Hartford's APP 1-20 Lifetime Income Builder Portfolios MAV Plus APP 1-31
APP I-2 ------------------------------------------------------------------------------- PREMIUM SECURITY DEATH BENEFIT EXAMPLE 1 Assume that: - You purchased your Contract with the Premium Security Death Benefit, because You and Your Annuitant were both no older than age 80 on the issue date, - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a withdrawal of $8,000, - Your Contract Value in your fourth Contract Year immediately before your withdrawal was $109,273, - On the day we receive proof of Death, your Contract Value was $117,403, and your Maximum Anniversary Value was $106,000. CALCULATION OF PREMIUM SECURITY DEATH BENEFIT To calculate the Premium Security Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we receive proof of Death [$117,403], - Total Premium Payments adjusted for any partial Surrenders [$100,000 - $8,000 = $92,000], - The lesser of (a) Your Maximum Anniversary Value [$106,000] and (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$117,403 + 25% x $106,000 = $143,903]; the lesser (a) and (b) is $106,000. The Premium Security Death Benefit is the greatest of these three values, which is $117,403. APP I-3 ------------------------------------------------------------------------------- EXAMPLE 2 Assume that: - You purchased your Contract with the Premium Security Death Benefit, because You and Your Annuitant were both no older than age 80 on the issue date, - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $60,000, - Your Contract Value in the fourth year immediately before your Surrender was $150,000, - On the day we receive proof of Death, your Contract Value was $120,000, - Your Maximum Anniversary Value is $83,571 (based on an adjustment to an anniversary value that was $140,000 before the partial Surrender (see below)). CALCULATION OF PREMIUM SECURITY DEATH BENEFIT To calculate the Premium Security Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we receive proof of Death [$120,000], - Total Premium Payments adjusted for any partial Surrenders [$57,857 (see below)], - The lesser of (a) Your Maximum Anniversary Value [$83,571 (see below)] and (b) Your Contract Value on the day we receive proof of Death plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% (83,571) = $140,893]; the lesser (a) and (b) is $83,571. The Premium Security Death Benefit is the greatest of these three values, which is $120,000. ADJUSTMENT FOR PARTIAL SURRENDER FOR TOTAL PREMIUM PAYMENTS The adjustment to your total Premium Payments for partial Surrenders is on a dollar for dollar basis up to 10% of total Premium Payments. 10% of total Premium Payments is $10,000. Total Premium Payments adjusted for dollar for dollar partial Surrenders is $90,000. The remaining partial Surrenders equal $50,000. This amount will reduce your total Premium Payments by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar for dollar adjustment to get $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $90,000. The result is an adjusted total Premium Payment of $57,857. ADJUSTMENT FOR PARTIAL SURRENDER FOR MAXIMUM ANNIVERSARY VALUE The adjustment to your Maximum Anniversary Value for partial Surrenders is on a dollar for dollar basis up to 10% of total Premium Payments. 10% of Premium Payments is $10,000. Your Maximum Anniversary Value adjusted for partial Surrenders on a dollar for dollar basis up to 10% of Premium Payments is $140,000 - $10,000 = $130,000. Remaining partial Surrenders are $50,000. We use this amount to reduce your Maximum Anniversary Value by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar for dollar adjustment to get $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $130,000. The result is an adjusted Maximum Anniversary Value of $83,571. APP I-4 ------------------------------------------------------------------------------- ASSET PROTECTION DEATH BENEFIT EXAMPLE 1 Assume that: - You purchased your Contract with the Asset Protection Death Benefit, because You and/or Your Annuitant were over age 80 on the issue date, - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a withdrawal of $8,000, - Your Contract Value in your fourth Contract Year immediately before your withdrawal was $109,273, - On the day we receive proof of Death, your Contract Value was $117,403, - Your Maximum Anniversary Value was $106,000. CALCULATION OF ASSET PROTECTION DEATH BENEFIT To calculate the Asset Protection Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we receive proof of Death [$117,403], - The lesser of (a) total Premium Payments adjusted for any partial Surrenders [$100,000 - $8,000 = $92,000] or (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your total Premium Payments adjusted for any partial Surrenders and excluding any subsequent Premium Payments we receive within 12 months of death [$117,403 + 25% x $92,000 = $140,403]; the lesser of (a) and (b) is $92,000. - The lesser of (a) Your Maximum Anniversary Value [$106,000] and (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$117,403 + 25% x $106,000 = $143,903]; the lesser (a) and (b) is $106,000. The Asset Protection Death Benefit is the greatest of these three values, which is $117,403. EXAMPLE 2 Assume that: - You purchased your Contract with the Asset Protection Death Benefit because You and/or Your Annuitant were over age 80 on the issue date, - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $60,000, - Your Contract Value in the fourth year immediately before your Surrender was $150,000, - On the day we receive proof of Death, your Contract Value was $120,000, - Your Maximum Anniversary Value is $83,571 (based on an adjustment to an anniversary value that was $140,000 before the partial Surrender (see below)). CALCULATION OF ASSET PROTECTION DEATH BENEFIT To calculate the Asset Protection Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we receive proof of Death [$120,000], - The lesser of (a) total Premium Payments adjusted for any partial Surrenders [$57,857 (see Example 1 under Premium Security Death Benefit)] or (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your total Premium Payments adjusted for any partial Surrenders and excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% x $57,857 = $134,464]; the lesser (a) and (b) is $57,857, - The lesser of (a) Your Maximum Anniversary Value [$83,571 (see Example 1 under Premium Security Death Benefit)] and (b) Your Contract Value on the day we receive proof of Death plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% (83,571) = $140,893]; the lesser (a) and (b) is $83,571. The Asset Protection Death Benefit is the greatest of these three values, which is $120,000. APP I-5 ------------------------------------------------------------------------------- EXAMPLE 3 ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $60,000, AND YOUR CONTRACT VALUE IS $150,000 AT THE TIME OF THE SURRENDER, THEN WE RECALCULATE YOUR BENEFIT AMOUNT BY COMPARING THE RESULTS OF TWO CALCULATIONS AND TAKING THE LESSER OF THE TWO: - First we deduct the amount of the Surrender ($60,000) from your Contract Value ($150,000). This equals $90,000 and is your "New Contract Value." CALCULATION OF ASSET PROTECTION DEATH BENEFIT To calculate the Asset Protection Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we receive proof of Death [$120,000], - The lesser of (a) total Premium Payments adjusted for any partial Surrenders [$57,857 (see Example 1 under Premium Security Death Benefit)] or (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your total Premium Payments adjusted for any partial Surrenders and excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% x $57,857 = $134,464]; the lesser (a) and (b) is $57,857. - The lesser of (a) Your Maximum Anniversary Value [$83,571 (see Example 1 under Premium Security Death Benefit)] and (b) Your Contract Value on the day we receive proof of Death plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% ($83,571) = $140,893]; the lesser (a) and (b) is $83,571. The Asset Protection Death Benefit is the greatest of these three values, which is $120,000. APP I-6 ------------------------------------------------------------------------------- THE HARTFORD'S PRINCIPAL FIRST EXAMPLE 1: ASSUME YOU SELECT THE HARTFORD'S PRINCIPAL FIRST WHEN YOU PURCHASE YOUR CONTRACT AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Benefit Amount is $100,000, which is your initial Premium Payment. - Your Benefit Payment is $7,000, which is 7% of your Benefit Amount. EXAMPLE 2: IF YOU MAKE AN ADDITIONAL PREMIUM PAYMENT OF $50,000, THEN - Your Benefit Amount is $150,000, which is your prior Benefit Amount ($100,000) plus your additional Premium Payment ($50,000). - Your Benefit Payment is $10,500, which is your prior Benefit Payment ($7,000) plus 7% of your additional Premium Payment ($3,500). EXAMPLE 3: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU TAKE THE MAXIMUM BENEFIT PAYMENT BEFORE THE END OF THE FIRST CONTRACT YEAR, THEN - Your Benefit Amount becomes $93,000, which is your prior Benefit Amount ($100,000) minus the Benefit Payment ($7,000). - Your Benefit Payment for the next year remains $7,000, because you did not take more than your maximum Benefit Payment ($7,000). EXAMPLE 4: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $50,000, AND YOUR CONTRACT VALUE IS $150,000 AT THE TIME OF THE SURRENDER, THEN We recalculate your Benefit Amount by comparing the results of two calculations: - First we deduct the amount of the Surrender ($50,000) from your Contract Value ($150,000). This equals $100,000 and is your "New Contract Value." - Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your "New Benefit Amount." Since the New Contract Value ($100,000) is more than or equal to the New Benefit Amount ($50,000), and it is more than or equal to your Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is unchanged and remains $7,000. EXAMPLE 6: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $50,000, AND YOUR CONTRACT VALUE IS $80,000 AT THE TIME OF THE SURRENDER, THEN We recalculate your Benefit Amount by comparing the results of two calculations: - First we deduct the amount of the Surrender ($50,000) from your Contract Value ($80,000). This equals $30,000 and is your "New Contract Value." - Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your "New Benefit Amount." Since the New Contract Value ($30,000) is less than the New Benefit Amount ($50,000), your "New Benefit Amount" becomes the New Contract Value ($30,000), as we have to recalculate your Benefit Payment. We recalculate the Benefit Payment by comparing the "old" Benefit Payment ($7,000) to 7% of the New Benefit Amount ($2,100). Your Benefit Payment becomes the lower of those two values, or $2,100. EXAMPLE 7: IF YOU ELECT TO "STEP UP" THE HARTFORD'S PRINCIPAL FIRST AFTER THE 5TH YEAR, ASSUMING YOU HAVE MADE NO WITHDRAWALS, AND YOUR CONTRACT VALUE AT THE TIME OF STEP UP IS $200,000, THEN - We recalculate your Benefit Amount to equal your Contract Value, which is $200,000. - Your new Benefit Payment is equal to 7% of your new Benefit Amount, or $14,000. APP I-7 ------------------------------------------------------------------------------- THE HARTFORD'S PRINCIPAL FIRST PREFERRED EXAMPLE 1: ASSUME YOU SELECT THE HARTFORD'S PRINCIPAL FIRST PREFERRED WHEN YOU PURCHASE YOUR CONTRACT AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Benefit Amount is $100,000, which is your initial Premium Payment. - Your Benefit Payment is $5,000, which is 5% of your Benefit Amount. EXAMPLE 2: IF YOU MAKE AN ADDITIONAL PREMIUM PAYMENT OF $50,000, THEN - Your Benefit Amount is $150,000, which is your prior Benefit Amount ($100,000) plus your additional Premium Payment ($50,000). - Your Benefit Payment is $7,500, which is your new Benefit Amount ($150,000) multiplied by 5%. EXAMPLE 3: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU TAKE THE MAXIMUM BENEFIT PAYMENT BEFORE THE END OF THE FIRST CONTRACT YEAR, THEN - Your Benefit Amount becomes $95,000, which is your prior Benefit Amount ($100,000) minus the Benefit Payment ($5,000). - Your Benefit Payment for the next year remains $5,000, because you did not take more than your maximum Benefit Payment ($5,000). EXAMPLE 4: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $50,000, AND YOUR CONTRACT VALUE IS $150,000 AT THE TIME OF THE SURRENDER, THEN We recalculate your Benefit Amount by comparing the results of two calculations and taking the lesser of the two: - First we deduct the amount of the Surrender ($50,000) from your Contract Value ($150,000). This equals $100,000 and is your "New Contract Value." - Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your "New Benefit Amount." Since the New Contract Value ($100,000) is more than or equal to the New Benefit Amount ($50,000), and it is more than or equal to your Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is unchanged and remains $5,000. EXAMPLE 5: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $60,000, AND YOUR CONTRACT VALUE IS $150,000 AT THE TIME OF THE SURRENDER, THEN We recalculate your Benefit Amount by comparing the results of two calculations: - First we deduct the amount of the Surrender ($60,000) from your Contract Value ($150,000). This equals $90,000 and is your "New Contract Value." - Second, we deduct the amount of the Surrender ($60,000) from your Benefit Amount ($100,000). This is $40,000 and is your "New Benefit Amount." Since the New Contract Value ($90,000) is more than or equal to the New Benefit Amount ($40,000), but less than the Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is reduced. The new Benefit Payment is 5% of the greater of your New Contract Value and New Benefit Amount, which is $4,500. EXAMPLE 6: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $50,000, AND YOUR CONTRACT VALUE IS $80,000 AT THE TIME OF THE SURRENDER, THEN We recalculate your Benefit Amount by comparing the results of two calculations and taking the lesser of the two: - First we deduct the amount of the Surrender ($50,000) from your Contract Value ($80,000). This equals $30,000 and is your "New Contract Value." - Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your "New Benefit Amount." Since the New Contract Value ($30,000) is less than the New Benefit Amount ($50,000), your "New Benefit Amount" becomes the New Contract Value ($30,000), as we have to recalculate your Benefit Payment. We recalculate the Benefit Payment by comparing the "old" Benefit Payment ($5,000) to 5% of the New Benefit Amount ($1,500). Your Benefit Payment becomes the lower of those two values, or $1,500. APP I-8 ------------------------------------------------------------------------------- THE HARTFORD'S LIFETIME INCOME BUILDER THIS OPTIONAL WITHDRAWAL BENEFIT IS CLOSED. FOR ALL EXAMPLES YOUR GUARANTEED MINIMUM DEATH BENEFIT IS THE GREATER OF THE BENEFIT AMOUNT AND THE CONTRACT VALUE ON THE DATE OF DUE PROOF OF DEATH. EXAMPLE 1: ASSUME YOU SELECT THE HARTFORD'S LIFETIME INCOME BUILDER WHEN YOU PURCHASE YOUR CONTRACT, YOU ARE YOUNGER THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Benefit Amount is $100,000, which is your initial Premium Payment. - Your Benefit Payment is $5,000, which is 5% of your Benefit Amount. - Your Lifetime Benefit Payment is zero. The Lifetime Benefit Payment will be set equal to the Benefit Amount multiplied by 5% on the Contract Anniversary immediately following the Older Owner's 60th birthday. EXAMPLE 2: ASSUME THE SAME FACTS AS EXAMPLE 1. ALSO ASSUME THAT YOU MAKE NO ADDITIONAL PREMIUM PAYMENTS AND TAKE NO WITHDRAWALS DURING THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $105,000. - At the anniversary, we calculate the automatic Benefit Amount Increase. The ratio is the Contract Value ($105,000) divided by the Maximum Contract Value ($100,000), less 1 subject to a minimum of 0% and a maximum of 10%. - ($105,000 / $100,000) - 1 = .05 = 5%. - Your Benefit Amount is $105,000, which is your previous Benefit Amount plus the automatic Benefit Amount increase. - Your Benefit Payment is $5,250, which is 5% of your Benefit Amount. - The annual charge for The Hartford's Lifetime Income Builder is 40 bps of the Benefit Amount after the automatic increase calculation. - $105,000 x .004 = $420, this amount is deducted from the Contract Value. EXAMPLE 3: ASSUME THE SAME FACTS AS EXAMPLE 1. ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. - Your initial Benefit Amount is $100,000. - Your Benefit Payment is $5,000. - After the partial Surrenders of $1,000, your Benefit Amount is $99,000. - There is no change to the annual Benefit Payment since the partial Surrender is less than the Benefit Payment. - At the anniversary, we calculate the automatic Benefit Amount Increase. The ratio is the Contract Value ($99,000) divided by the Maximum Contract Value ($100,000), less 1 subject to a minimum of 0% and a maximum of 10%. - ($99,000 / $100,000) - 1 = -.01 subject to the minimum of 0%. - Your Benefit Amount is $99,000, which is your previous Benefit Amount since the automatic Benefit Amount increase was 0%. - Your Benefit Payment will remain at $5,000. Because your Benefit Amount did not increase because of the automatic Benefit Amount increase provision on the anniversary, the Benefit Payment will not increase. And because the remaining Benefit Amount ($99,000) is not less than the Benefit Payment immediately prior to the anniversary, the Benefit Payment will not be reduced. - The annual charge for The Hartford's Lifetime Income Builder is 40 bps of the Benefit Amount after the automatic increase calculation. - $99,000 x .004 = $396, this amount is deducted from the Contract Value. EXAMPLE 4: ASSUME THE SAME FACTS AS EXAMPLE 3. ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2 AND THAT, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. - At the beginning of Contract Year 2, your initial Benefit Amount is $99,000. - Your Benefit Payment is $5,000. - Your Benefit Amount after the premium payment is $119,000. - Your Benefit Payment is $5,950, which is 5% of your Benefit Amount. APP I-9 ------------------------------------------------------------------------------- EXAMPLE 5: ASSUME THE SAME FACTS AS EXAMPLE 4. ASSUME THAT AT THE ON THE FOLLOWING ANNIVERSARY (THE END OF CONTRACT YEAR 2) THE CONTRACT VALUE IS $118,000 AND THAT NO WITHDRAWALS WERE TAKEN IN CONTRACT YEAR 2. - After premium payment, your Benefit Amount is $119,000. - Your Benefit Payment is $5,950. - At the anniversary, we calculate the automatic Benefit Amount Increase. The ratio is the Contract Value ($118,000) divided by the Maximum Contract Value ($120,000), less 1 subject to a minimum of 0% and a maximum of 10%. - ($118,000 / $120,000) - 1 = -.01667 subject to a minimum of 0% - Your Benefit Amount is $119,000, which is your previous Benefit Amount since the automatic Benefit Amount increase is 0%. - Your Benefit Payment is $5,950, which is 5% of your Benefit Amount. - The annual charge for The Hartford's Lifetime Income Builder is 40 bps of the Benefit Amount after the automatic increase calculation. - $119,000 x .004 = $476, this amount is deducted from the Contract Value. EXAMPLE 6: ASSUME THE SAME FACTS AS EXAMPLE 5. ASSUME THAT IN THE THIRD CONTRACT YEAR, A $35,000 PARTIAL SURRENDER IS TAKEN. THE PARTIAL SURRENDER INCLUDES A CONTINGENT DEFERRED SALES CHARGE. THE WITHDRAWAL LOWERED THE CONTRACT VALUE FROM $115,000 TO $80,000. - At the beginning of Contract Year 3, your initial Benefit Amount is $119,000. - Your Benefit Payment is $5,950. - Since the total partial Surrender exceeds the Benefit Payment, the Benefit Amount is reset to the lesser of (i) or (ii) as follows - (i) the Contract Value immediately following the partial withdrawal: $80,000. - (ii) the Benefit Amount prior to the partial Surrender, less the amount of the Surrender: $119,000 - $35,000 = $84,000. - Your new Benefit Amount is $80,000. - Your new Benefit Payment is $4,000, which is 5% of the new Benefit Amount. EXAMPLE 7: ASSUME THAT ON THE CONTRACT ANNIVERSARY IMMEDIATELY FOLLOWING THE OLDER OWNER'S 60TH BIRTHDAY, THE CONTRACT VALUE IS $200,000. - Your Benefit Amount after the automatic increase calculation is $200,000. - Your Lifetime Benefit Payment is $10,000 which is 5% of your Benefit Amount. - The annual charge for The Hartford's Lifetime Income Builder is 40 bps of the Benefit Amount after the automatic increase calculation. - $200,000 x .004 = $800, this amount is deducted from the Contract Value. EXAMPLE 8: ASSUME THE OWNER WITHDRAWS $9,000 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE BENEFIT PAYMENT IS $10,000; THE LIFETIME BENEFIT PAYMENT IS $7,000; THE BENEFIT AMOUNT $80,000 AND THE CONTRACT VALUE IS $85,000. - Your Benefit Amount is $80,000 before the partial Surrender. - Your Benefit Amount after the partial Surrender is $71,000, since the partial Surrender is less than your Benefit Payment. - There is no change to the annual Benefit Payment since the partial Surrender is less than the Benefit Payment. - Your Lifetime Benefit Payment will be reset to $3,550 which is 5% of the Benefit Amount after the partial Surrender. This reset occurs because partial Surrender is greater that the annual Lifetime Benefit Payment. EXAMPLE 9: ASSUME THE OWNER WITHDRAWS $12,000 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE BENEFIT PAYMENT IS $10,000; THE LIFETIME BENEFIT PAYMENT IS $7,000; THE BENEFIT AMOUNT $80,000 AND THE CONTRACT VALUE IS $85,000. - Your Benefit Amount is $80,000 before the partial Surrender. - Your Benefit Amount after the partial Surrender is $68,000. - It is the lesser of Contract Value after the partial Surrender ($73,000) and the Benefit Amount immediately prior the partial Surrender, less the partial Surrender amount ($68,000). This comparison is done because the partial Surrender is greater than your Benefit Payment. - Your Benefit Amount will reset to $3,400 which is 5% of the Benefit Amount after the partial Surrenders. This reset occurs because the partial Surrender is greater than the annual Benefit Payment. - Your Lifetime Benefit Payment will reset to $3,400 which is 5% of the Benefit Amount after the partial Surrender. This reset occurs because partial Surrender is greater that the annual Lifetime Benefit Payment. APP I-10 ------------------------------------------------------------------------------- THE HARTFORD'S LIFETIME INCOME FOUNDATION THIS OPTIONAL WITHDRAWAL BENEFIT IS CLOSED TO NEW INVESTORS IF THE HARTFORD'S LIFETIME INCOME SELECTS OR THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS IS APPROVED IN YOUR STATE. EXAMPLE 1: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $5,000, which is 5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 2: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $4,500, which is 4.5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 3: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Withdrawal Percent is 5%, which is based on your age. - Your Lifetime Benefit Payment is $5,000, which is 5% of your Payment Base. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 4: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 3, HOWEVER YOUR FIRST PARTIAL SURRENDER IS TAKEN AT AGE 70. YOUR WITHDRAWAL PERCENT IS 6% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $105,000. - Your Lifetime Benefit Payment is $6,300, which is the product of your Withdrawal Percent multiplied by $105,000, which is the greater of your Contract Value at the beginning of the year and your Payment Base. - You take a partial Surrender of $6,000. - Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent will remain at 6% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender. - Your remaining Lifetime Benefit Payment for the Contract Year is $300. - Your Contract Value after the withdrawal is $99,000. - Your Guaranteed Minimum Death Benefit is $94,000, which is your prior Death Benefit reduced by the amount of the withdrawal. EXAMPLE 5: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Withdrawal Percent is 4.5%, which is based on your age. - Your Lifetime Benefit Payment is $4,500, which is 4.5% of your Payment Base. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. APP I-11 ------------------------------------------------------------------------------- EXAMPLE 6: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 5, HOWEVER YOUR FIRST PARTIAL SURRENDER AT AGE 70. YOUR WITHDRAWAL PERCENT IS 5.5% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $106,500. - Your Lifetime Benefit Payment is $5,857.50, which is the product of your Withdrawal Percent multiplied by $106,500, which is the greater of your Contract Value at the beginning of the year and your Payment Base. - You take a partial Surrender of $5,500. - Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent will remain at 5.5% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender. - Your remaining Lifetime Benefit Payment for the Contract Year is $357.50. - Your Contract Value after the withdrawal is $101,000. - Your Guaranteed Minimum Death Benefit is $94,500, which is your prior Death Benefit reduced by the withdrawal. EXAMPLE 7: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. PRIOR TO THE SURRENDER: - Your initial Payment Base is $100,000. - Your Threshold is $5,000. - Your Guaranteed Minimum Death Benefit is $100,000. AFTER THE SURRENDER: - Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender. - Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 5% for the duration of your Contract. - Your remaining Threshold amount for the Contract Year is $4,000, which is your prior Threshold amount reduced by the amount of the partial Surrender. - The annual charge for The Hartford's Lifetime Income Foundation is 0.30% of the Payment Base. - $99,000 x 0.30% = $297, this amount is deducted from the Contract Value. - Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 8: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. PRIOR TO THE SURRENDER: - Your initial Payment Base is $100,000. - Your Threshold is $4,500. - Your Guaranteed Minimum Death Benefit is $100,000. AFTER THE SURRENDER: - Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender. - Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 4.5% for the duration of your Contract. - Your remaining Threshold amount for the Contract Year is $3,500, which is your prior Threshold amount reduced by the amount of the partial Surrender. - The annual charge for The Hartford's Lifetime Income Foundation is 0.30% of the Payment Base. - $99,000 x 0.30% = $297, this amount is deducted from the Contract Value. - Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender. APP I-12 ------------------------------------------------------------------------------- EXAMPLE 9: ASSUME THE SAME FACTS AS EXAMPLE 7 (SINGLE LIFE). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. PRIOR TO THE PREMIUM PAYMENT: - At the beginning of Contract Year 2, your initial Payment Base is $99,000. - Your Threshold amount is $4,950. - Your Guaranteed Minimum Death Benefit is $99,000. AFTER THE PREMIUM PAYMENT: - Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment. - Your Threshold amount is $5,950, which is 5% of the greater of your Contract Value immediately following the Premium Payment or your Payment Base immediately following the Premium Payment. - Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment. EXAMPLE 10: ASSUME THE SAME FACTS AS EXAMPLE 8 (JOINT/SPOUSAL). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. PRIOR TO THE PREMIUM PAYMENT: - At the beginning of Contract Year 2, your initial Payment Base is $99,000. - Your Threshold amount is $4,455. - Your Guaranteed Minimum Death Benefit is $99,000. AFTER THE PREMIUM PAYMENT: - Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment. - Your Threshold amount is $5,355, which is 4.5% of the greater of your Contract Value immediately following the Premium Payment or your Payment Base immediately following the Premium Payment. - Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment. EXAMPLE 11: ASSUME THE OLDER COVERED LIFE IS 74 (SINGLE LIFE). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,300 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 6%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000; THE LIFETIME BENEFIT PAYMENT IS 6% MULTIPLIED BY THE GREATER OF THE PAYMENT BASE OR CONTRACT VALUE, OR $3,300. AFTER THE PARTIAL SURRENDER: - Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent is 6% for the duration of your Contract. - Your Lifetime Benefit Payment for the remainder of the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,700, which is your prior Death Benefit reduced by the amount of the partial Surrender. APP I-13 ------------------------------------------------------------------------------- EXAMPLE 12: ASSUME THE YOUNGER COVERED LIFE IS 74 (JOINT/SPOUSAL). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,025 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 5.5%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000; THE LIFETIME BENEFIT PAYMENT IS 5.5% MULTIPLIED BY THE GREATER OF PAYMENT BASE OR CONTRACT VALUE, OR $3,025. AFTER THE PARTIAL SURRENDER: - Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent is 5.5% for the duration of your Contract. - Your Lifetime Benefit Payment for the remainder of the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,975, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 13: ASSUME THE SAME FACTS AS EXAMPLE 11 (SINGLE LIFE). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $1,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $52,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $51,000. PRIOR TO THE PARTIAL SURRENDER: - Your Payment Base is $50,000. - Your Withdrawal Percent was previously locked in at 6%. - Your remaining Lifetime Benefit Payment for this Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,700. AFTER THE PARTIAL SURRENDER: - Your Payment Base is $49,038, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base. - Your Lifetime Benefit Payment remaining for the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $45,802, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment /Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit. EXAMPLE 14: ASSUME THE SAME FACTS AS EXAMPLE 12 (JOINT/SPOUSAL). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $2,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $49,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $47,000. PRIOR TO THE PARTIAL SURRENDER: - Your Payment Base is $50,000. - Your Withdrawal Percent was previously locked in at 5.5%. - Your remaining Lifetime Benefit Payment for this Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,975. AFTER THE PARTIAL SURRENDER: - Your new Payment Base is $47,959, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment /Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base. - Your Lifetime Benefit Payment remaining for the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $45,058, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment /Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit. APP I-14 ------------------------------------------------------------------------------- THE HARTFORD'S LIFETIME INCOME BUILDER II THIS OPTIONAL WITHDRAWAL BENEFIT IS CLOSED TO NEW INVESTORS IF THE HARTFORD'S LIFETIME INCOME SELECTS OR THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS IS APPROVED IN YOUR STATE. EXAMPLE 1: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $5,000, which is 5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 2: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $4,500, which is 4.5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 3: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Withdrawal Percent is 5%, which is based on your age. - Your Lifetime Benefit Payment is $5,000, which is 5% of your Payment Base. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 4: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 3, HOWEVER YOUR FIRST PARTIAL SURRENDER IS TAKEN AT AGE 70. YOUR WITHDRAWAL PERCENT IS 6% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $105,000. - Your Lifetime Benefit Payment is $6,300, which is the product of your Withdrawal Percent multiplied by $105,000, which is the greater of your Contract Value at the beginning of the year and your Payment Base. - You take a partial Surrender of $6,000. - Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent will remain at 6% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender. - Your remaining Lifetime Benefit Payment for the Contract Year is $300. - Your Contract Value after the withdrawal is $99,000. - Your Guaranteed Minimum Death Benefit is $94,000, which is your prior Death Benefit reduced by the amount of the withdrawal. EXAMPLE 5: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Withdrawal Percent is 4.5%, which is based on your age. - Your Lifetime Benefit Payment is $4,500, which is 4.5% of your Payment Base. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. APP I-15 ------------------------------------------------------------------------------- EXAMPLE 6: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 5, HOWEVER YOUR FIRST PARTIAL SURRENDER AT AGE 70. YOUR WITHDRAWAL PERCENT IS 5.5% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $106,500. - Your Lifetime Benefit Payment is $5,857.50, which is the product of your Withdrawal Percent multiplied by $106,500, which is the greater of your Contract Value at the beginning of the year and your Payment Base. - You take a partial Surrender of $5,500. - Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent will remain at 5.5% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender. - Your remaining Lifetime Benefit Payment for the Contract Year is $357.50. - Your Contract Value after the withdrawal is $101,000. - Your Guaranteed Minimum Death Benefit is $94,500, which is your prior Death Benefit reduced by the withdrawal. EXAMPLE 7: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. PRIOR TO THE SURRENDER: - Your initial Payment Base is $100,000. - Your Threshold is $5,000. - Your Guaranteed Minimum Death Benefit is $100,000. AFTER THE SURRENDER: - At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($95,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%. - ($95,000/$100,000) - 1 = -.05 subject to the minimum of 0%. - Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender, since the automatic Payment Base increase was 0%. - Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 5% for the duration of your Contract. - Your remaining Threshold amount for the Contract Year is $4,000, which is your prior Threshold amount reduced by the amount of the partial Surrender. - The annual charge for The Hartford's Lifetime Income Builder II is 0.40% of the Payment Base after the automatic increase calculation. - $99,000 x 0.40% = $396, this amount is deducted from the Contract Value. - Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender. APP I-16 ------------------------------------------------------------------------------- EXAMPLE 8: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. PRIOR TO THE SURRENDER: - Your initial Payment Base is $100,000. - Your Threshold is $4,500. - Your Guaranteed Minimum Death Benefit is $100,000. AFTER THE SURRENDER: - At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($95,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%. - ($95,000/$100,000) - 1 = -.05 subject to the minimum of 0%. - Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender, since the automatic Payment Base increase was 0%. - Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 4.5% for the duration of your Contract. - Your remaining Threshold amount for the Contract Year is $3,500, which is your prior Threshold amount reduced by the amount of the partial Surrender. - The annual charge for The Hartford's Lifetime Income Builder II is 0.40% of the Payment Base after the automatic increase calculation. - $99,000 x 0.40% = $396, this amount is deducted from the Contract Value. - Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 9: ASSUME THE SAME FACTS AS EXAMPLE 7 (SINGLE LIFE). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. PRIOR TO THE PREMIUM PAYMENT: - At the beginning of Contract Year 2, your initial Payment Base is $99,000. - Your Threshold amount is $4,950. - Your Guaranteed Minimum Death Benefit is $99,000. AFTER THE PREMIUM PAYMENT: - Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment. - Your Threshold amount is $5,950, which is 5% of the greater of your Contract Value immediately following the Premium Payment or your Payment Base immediately following the Premium Payment. - Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment. EXAMPLE 10: ASSUME THE SAME FACTS AS EXAMPLE 8 (JOINT/SPOUSAL). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. PRIOR TO THE PREMIUM PAYMENT: - At the beginning of Contract Year 2, your initial Payment Base is $99,000. - Your Threshold amount is $4,455. - Your Guaranteed Minimum Death Benefit is $99,000. AFTER THE PREMIUM PAYMENT: - Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment. - Your Threshold amount is $5,355, which is 4.5% of the greater of your Contract Value immediately following the Premium Payment or your Payment Base immediately following the Premium Payment. - Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment. APP I-17 ------------------------------------------------------------------------------- EXAMPLE 11: ASSUME THE OLDER COVERED LIFE IS 74 (SINGLE LIFE). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,300 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 6%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000; THE LIFETIME BENEFIT PAYMENT IS 6% MULTIPLIED BY THE GREATER OF THE PAYMENT BASE OR CONTRACT VALUE, OR $3,300. AFTER THE PARTIAL SURRENDER: - Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent is 6% for the duration of your Contract. - Your Lifetime Benefit Payment for the remainder of the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,700, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 12: ASSUME THE YOUNGER COVERED LIFE IS 74 (JOINT/SPOUSAL). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,025 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 5.5%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000; THE LIFETIME BENEFIT PAYMENT IS 5.5% MULTIPLIED BY THE GREATER OF PAYMENT BASE OR CONTRACT VALUE, OR $3,025. AFTER THE PARTIAL SURRENDER: - Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent is 5.5% for the duration of your Contract. - Your Lifetime Benefit Payment for the remainder of the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,975, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 13: ASSUME THE SAME FACTS AS EXAMPLE 11 (SINGLE LIFE). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $1,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $52,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $51,000. PRIOR TO THE PARTIAL SURRENDER: - Your Payment Base is $50,000. - Your Withdrawal Percent was previously locked in at 6%. - Your remaining Lifetime Benefit Payment for this Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,700. AFTER THE PARTIAL SURRENDER: - Your Payment Base is $49,038, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base. - Your Lifetime Benefit Payment remaining for the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $45,802, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit. APP I-18 ------------------------------------------------------------------------------- EXAMPLE 14: ASSUME THE SAME FACTS AS EXAMPLE 12 (JOINT/SPOUSAL). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $2,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $49,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $47,000. PRIOR TO THE PARTIAL SURRENDER: - Your Payment Base is $50,000. - Your Withdrawal Percent was previously locked in at 5.5%. - Your remaining Lifetime Benefit Payment for this Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,975. AFTER THE PARTIAL SURRENDER: - Your new Payment Base is $47,959, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base. - Your Lifetime Benefit Payment remaining for the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $45,058, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit. EXAMPLE 15: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). NOW ASSUME YOU HAVE REACHED YOUR FIRST CONTRACT ANNIVERSARY. YOUR CONTRACT VALUE ON THE CONTRACT ANNIVERSARY IS $110,000. PRIOR TO THE CONTRACT ANNIVERSARY: - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $5,000, which is 5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. AFTER THE CONTRACT ANNIVERSARY: - At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($110,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%. - ($110,000/$100,000) - 1 = .10 subject to the maximum of 10%. - Your Payment Base is $110,000, which is your prior Payment Base multiplied by the automatic Payment Base increase. - Your Threshold amount for the Contract Year is $5,500, which is your new Payment Base multiplied by 5%. - Your Guaranteed Minimum Death Benefit remains $100,000, as it is not impacted by the automatic Payment Base increase. APP I-19 ------------------------------------------------------------------------------- EXAMPLE 16: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). NOW ASSUME YOU HAVE REACHED YOUR FIRST CONTRACT ANNIVERSARY. YOUR CONTRACT VALUE ON THE ANNIVERSARY IS $105,000. PRIOR TO THE CONTRACT ANNIVERSARY: - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $4,500, which is 4.5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. AFTER THE CONTRACT ANNIVERSARY: - At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($105,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%. - ($105,000/$100,000) - 1 = .05 subject to the maximum of 10%. - Your Payment Base is $105,000, which is your prior Payment Base multiplied by the automatic Payment Base increase. - Your Threshold amount for the Contract Year is $4,725, which is your new Payment Base multiplied by 4.5%. - Your Guaranteed Minimum Death Benefit remains $100,000, as it is not impacted by the automatic Payment Base increase. EXAMPLE 17: SPOUSAL CONTRACT CONTINUATION On date of Spousal Contract continuation, we increase the Contract Value to equal the Death Benefit (if greater). For illustration purposes, we will assume the Contract Value on the date of continuation is set equal to the Death Benefit of $150,000 and the Payment Base is $125,000. The values for the rider are impacted as follows: Payment Base = $150,000 (greater of Contract Value or Payment Base on date of continuation) WP = existing Withdrawal Percent if partial Surrender have been taken, or else it is set using the remaining Spouse's attained age on the Contract Anniversary prior to the first partial Surrender (for this example we will say it is 6%). Lifetime Benefit Payment = $9,000 (WP x greater of Payment Base or Contract Value on date of continuation) Death Benefit = $150,000 (Contract Value on date of continuation) Maximum Contract Value (LIB II Only) = $150,000 (greater of Contract Value or Payment Base on date of continuation) APP I-20 ------------------------------------------------------------------------------- THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS AND THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS EXAMPLE 1: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000.
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment THRESHOLD $5,000 $5,000 - 5% of your Payment Base - 5% of your Payment Base LIFETIME BENEFIT PAYMENT N/A N/A GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
EXAMPLE 2: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000.
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment THRESHOLD $4,500 $4,500 - 4.5% of your Payment Base - 4.5% of your Payment Base LIFETIME BENEFIT PAYMENT N/A N/A GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
EXAMPLE 3: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000.
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment WITHDRAWAL PERCENT 5% 5% - Based on your age - Based on your age LIFETIME BENEFIT PAYMENT $5,000 $5,000 - 5% of your Payment Base - 5% of your Payment Base GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
EXAMPLE 4: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 3 (SINGLE LIFE), HOWEVER YOUR FIRST PARTIAL SURRENDER IS TAKEN AT AGE 70. YOUR WITHDRAWAL PERCENT IS 6% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $105,000. YOUR CONTRACT VALUE UPON ATTAINING AGE 70 IS $105,500. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $105,000 $105,000 LIFETIME BENEFIT PAYMENT $6,330 $6,300 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by your greater of your Payment Base or Contract Payment Base Value upon attaining age 70
APP I-21 ------------------------------------------------------------------------------- YOU TAKE A PARTIAL SURRENDER OF $6,000, VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $105,000 $105,000 WITHDRAWAL PERCENT 6%(1) 6%(1) LIFETIME BENEFIT PAYMENT $330 $300 - Remaining for Contract Year - Remaining for Contract Year CONTRACT VALUE AFTER THE WITHDRAWAL $99,000 $99,000 GUARANTEED MINIMUM DEATH BENEFIT $94,000 $94,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
EXAMPLE 5: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000.
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment WITHDRAWAL PERCENT 4.5% 4.5% - Based on your age - Based on your age LIFETIME BENEFIT PAYMENT $4,500 $4,500 - 4.5% of your Payment Base - 4.5% of your Payment Base GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
(1) The Withdrawal Percentage will remain for the duration of your Contract unless an automatic Payment Base increase occurs on a future anniversary and a new Withdrawal Percent age band is applicable; if no automatic Payment Base increase occurs on a future anniversary where a new Withdrawal Percent age band is applicable, your Withdrawal Percent will remain as is. EXAMPLE 6: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 5 (JOINT/SPOUSAL), HOWEVER YOUR FIRST PARTIAL SURRENDER IS TAKEN AT AGE 70. YOUR WITHDRAWAL PERCENT IS 5.5% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE CONTRACT YEAR IS $110,000. YOUR CONTRACT VALUE UPON ATTAINING AGE 70 IS $111,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $110,000 $110,000 LIFETIME BENEFIT PAYMENT $6,105 $6,050 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by your greater of your Payment Base or Contract Payment Base Value upon attaining age 70
YOU TAKE A PARTIAL SURRENDER OF $6,000, VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $110,000 $110,000 WITHDRAWAL PERCENT 5.5%(1) 5.5%(1) LIFETIME BENEFIT PAYMENT $105 $50 - Remaining for Contract Year - REMAINING FOR CONTRACT YEAR CONTRACT VALUE AFTER THE WITHDRAWAL $105,000 $105,000 GUARANTEED MINIMUM DEATH BENEFIT $94,000 $94,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
APP I-22 ------------------------------------------------------------------------------- EXAMPLE 7: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE PRIOR TO THE RIDER CHARGE BEING DEDUCTED ON YOUR FIRST ANNIVERSARY IS $95,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 THRESHOLD $5,000 $5,000 GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000
VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - Prior Payment Base reduced by - Prior Payment Base reduced by withdrawal withdrawal WITHDRAWAL PERCENT 5%(1) 5%(1) THRESHOLD $4,000 $4,000 - Remaining for the Contract Year - Remaining for the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($95,000) divided by your current Payment the rider charge being taken, or Base ($99,000), less 1 - Your current Payment Base - Resulting in -0.04%, subject to minimum of 0%, No change to the Payment Base THRESHOLD $4,950 $4,950 - 5% of your Payment Base - 5% of your Payment Base RIDER CHARGE $544.50 $643.50 - Rider charge of 0.55% multiplied by - Rider charge of 0.65% multiplied by your current Payment Base your current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 8: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE PRIOR TO THE RIDER CHARGE BEING DEDUCTED ON YOUR FIRST ANNIVERSARY IS $105,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 THRESHOLD $5,000 $5,000 GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000
APP I-23 ------------------------------------------------------------------------------- VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - Prior Payment Base reduced by - Prior Payment Base reduced by withdrawal withdrawal WITHDRAWAL PERCENT 5%(1) 5%(1) THRESHOLD $4,000 $4,000 - Remaining for the Contract Year - Remaining for the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $105,000 $105,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($105,000) divided by your current the rider charge being taken, or Payment Base ($99,000), less 1 - Your current Payment Base - Resulting in 0.06%, subject to minimum of 0% and maximum of 10% THRESHOLD $5,250 $5,250 - 5% of your Payment Base - 5% of your Payment Base RIDER CHARGE $577.50 $682.50 - Rider charge of 0.55% multiplied by - Rider charge of 0.65% multiplied by your current Payment Base your current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 9: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE PRIOR TO THE RIDER CHARGE BEING DEDUCTED ON YOUR FIRST ANNIVERSARY IS $95,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 THRESHOLD $4,500 $4,500 GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000
VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - Prior Payment Base reduced by - Prior Payment Base reduced by withdrawal withdrawal WITHDRAWAL PERCENT 4.5%(1) 4.5%(1) THRESHOLD $3,500 $3,500 - Remaining for the Contract Year - Remaining for the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
APP I-24 ------------------------------------------------------------------------------- VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($95,000) divided by your current Payment the rider charge being taken, or Base ($99,000), less 1 - Your current Payment Base - Resulting in -0.04%, subject to minimum of 0%, No change to the Payment Base THRESHOLD $4,455 $4,455 - 4.5% of your Payment Base - 4.5% of your Payment Base RIDER CHARGE $544.50 $643.50 - Rider charge of 0.55% multiplied by - Rider charge of 0.65% multiplied by your current Payment Base your current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 10: ASSUME THE SAME FACTS AS EXAMPLE 7 (SINGLE LIFE). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, THE CONTRACT VALUE AFTER THE PAYMENT IS $121,000. VALUES PRIOR TO THE PREMIUM PAYMENT:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 THRESHOLD $4,950 $4,950 GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000
VALUES AFTER THE PREMIUM PAYMENT:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $119,000 $119,000 - Prior Payment Base increased by the - Prior Payment Base increased by the Premium Payment Premium Payment THRESHOLD $6,050 $5,950 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by your greater of your current Payment Base or current Payment Base Contract Value GUARANTEED MINIMUM DEATH BENEFIT $119,000 $119,000 - Prior Death Benefit increased by the - Prior Death Benefit increased by the Premium Payment Premium Payment
APP I-25 ------------------------------------------------------------------------------- EXAMPLE 11: ASSUME THE SAME FACTS AS EXAMPLE 9 (JOINT/SPOUSAL). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, THE CONTRACT VALUE AFTER THE PAYMENT IS $125,000. VALUES PRIOR TO THE PREMIUM PAYMENT:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 THRESHOLD $4,455 $4,455 GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000
VALUES AFTER THE PREMIUM PAYMENT:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $119,000 $119,000 - Prior Payment Base increased by the - Prior Payment Base increased by the Premium Payment Premium Payment THRESHOLD $5,625 $5,355 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by your greater of your current Payment Base or current Payment Base Contract Value GUARANTEED MINIMUM DEATH BENEFIT $119,000 $119,000 - Prior Death Benefit increased by the - Prior Death Benefit increased by the Premium Payment Premium Payment
EXAMPLE 12: ASSUME THE OLDER COVERED LIFE IS 74 (SINGLE LIFE). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,000 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 6%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000. VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $50,000 $50,000 - Partial Surrender did not exceed the - Partial Surrender did not exceed the Lifetime Benefit Payment Lifetime Benefit Payment WITHDRAWAL PERCENT 6%(1) 6%(1) LIFETIME BENEFIT PAYMENT $300 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was 6% multiplied by the greater of the 6% multiplied by the Payment Base on the Payment Base or Contract Value on the Contract Anniversary Contract Anniversary - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was $3,000 $3,300 GUARANTEED MINIMUM DEATH BENEFIT $47,000 $47,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the partial Surrender partial Surrender
APP I-26 ------------------------------------------------------------------------------- EXAMPLE 13: ASSUME THE YOUNGER COVERED LIFE IS 74 (JOINT/SPOUSAL). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $2,750 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 5.5%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000. VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $50,000 $50,000 - Partial Surrender did not exceed the - Partial Surrender did not exceed the Lifetime Benefit Payment Lifetime Benefit Payment WITHDRAWAL PERCENT 5.5%(1) 5.5%(1) LIFETIME BENEFIT PAYMENT $275 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was 5.5% multiplied by the greater of the 5.5% multiplied by the Payment Base on Payment Base or Contract Value on the the Contract Anniversary Contract Anniversary - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was $2,750 $3,025 GUARANTEED MINIMUM DEATH BENEFIT $47,250 $47,250 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the partial Surrender partial Surrender
EXAMPLE 14: ASSUME THE SAME FACTS AS EXAMPLE 12 (SINGLE LIFE). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $1,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $52,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $51,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $50,000 $50,000 - Partial Surrender did not exceed the - Partial Surrender did not exceed the Lifetime Benefit Payment Lifetime Benefit Payment WITHDRAWAL PERCENT 6% 6% LIFETIME BENEFIT PAYMENT $300 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was 6% multiplied by the greater of the 6% multiplied by the Payment Base on the Payment Base or Contract Value on the Contract Anniversary Contract Anniversary - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was $3,000 $3,300 GUARANTEED MINIMUM DEATH BENEFIT $47,000 $47,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the partial Surrender partial Surrender
APP I-27 ------------------------------------------------------------------------------- VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $49,323 $49,038 - Proportional reduction: - Proportional reduction: 1-($700/($52,000-$300) 1-($1000/$52,000) LIFETIME BENEFIT PAYMENT $0 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $46,068 $46,096 - Prior Death Benefit reduced by partial - Prior Death Benefit reduced by partial surrender NOT exceeding the Lifetime surrender NOT exceeding the Lifetime Benefit Payment. Then, proportional Benefit Payment. Then, proportional reduction multiplied by the result of the reduction multiplied by the result of the above above
EXAMPLE 15: ASSUME THE SAME FACTS AS EXAMPLE 13 (JOINT/SPOUSAL). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $2,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $49,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $47,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $50,000 $50,000 WITHDRAWAL PERCENT 5.5% 5.5% LIFETIME BENEFIT PAYMENT $275 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was 5.5% multiplied by the greater of the 5.5% multiplied by the Payment Base on Payment Base or Contract Value on the the Contract Anniversary Contract Anniversary - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was $2,750 $3,025 GUARANTEED MINIMUM DEATH BENEFIT $47,250 $47,250
VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $48,230 $47,959 - Proportional reduction: - Proportional reduction: 1-($1,725/($49,000-$275) 1-($2,000/$49,000) LIFETIME BENEFIT PAYMENT $0 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $45,312 $45,321 - Prior Death Benefit reduced by partial - Prior Death Benefit reduced by partial surrender NOT exceeding the Lifetime surrender NOT exceeding the Lifetime Benefit Payment. Then, proportional Benefit Payment. Then, proportional reduction multiplied by the result of the reduction multiplied by the result of the above above
APP I-28 ------------------------------------------------------------------------------- EXAMPLE 16: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). NOW ASSUME YOU HAVE REACHED YOUR FIRST CONTRACT ANNIVERSARY. YOUR CONTRACT VALUE ON THE CONTRACT ANNIVERSARY IS $115,000. VALUES PRIOR TO THE CONTRACT ANNIVERSARY:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment THRESHOLD $5,000 $5,000 - 5% of your Payment Base - 5% of your Payment Base LIFETIME BENEFIT PAYMENT N/A N/A GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $110,000 $115,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($115,000) divided by your current the rider charge being taken, or Payment Base ($100,000), less 1 - Your current Payment Base - Resulting in 0.15%, capped at 10%. Subject to minimum of 0% and maximum of 10% THRESHOLD $5,500 $5,750 - 5% of your Payment Base - 5% of your Payment Base GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 17: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). NOW ASSUME YOU HAVE REACHED YOUR FIRST CONTRACT ANNIVERSARY. YOUR CONTRACT VALUE ON THE ANNIVERSARY IS $115,000. VALUES PRIOR TO THE CONTRACT ANNIVERSARY:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment THRESHOLD $4,500 $4,500 - 4.5% of your Payment Base - 4.5% of your Payment Base LIFETIME BENEFIT PAYMENT N/A N/A GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
VALUES AFTER THE CONTRACT ANNIVERSARY: PAYMENT BASE $110,000 $115,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($115,000) divided by your current the rider charge being taken, or Payment Base ($100,000), less 1 - Your current Payment Base - Resulting in 0.15%, capped at 10%. Subject to minimum of 0% and maximum of 10% THRESHOLD $4,950 $5,175 - 4.5% of your Payment Base - 4.5% of your Payment Base GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - No change due to anniversary processing - No change due to anniversary processing
APP I-29 ------------------------------------------------------------------------------- EXAMPLE 18: SPOUSAL CONTRACT CONTINUATION (SINGLE LIFE) On date of Spousal Contract continuation, we increase the Contract Value to equal the Death Benefit (if greater). For illustration purposes, we will assume the Contract Value on the date of continuation is set equal to the Death Benefit of $150,000 and the Payment Base is $125,000. VALUES UPON SPOUSAL CONTINUATION:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $150,000 $150,000 - Equal to the Contract Value on date of - Equal to Contract Value on date of continuation continuation WITHDRAWAL PERCENTAGE 6% 6% - Withdrawal Percent is set using the - Withdrawal Percent is set using the oldest Covered Life's age on the oldest Covered Life's age on the effective date of continuation effective date of continuation LIFETIME BENEFIT PAYMENT $9,000 $9,000 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by the Payment Base on date of continuation Payment Base on date of continuation GUARANTEED MINIMUM DEATH BENEFIT $150,000 $150,000 - Equal to Contract Value on date of - Equal to Contract Value on date of continuation continuation
EXAMPLE 19: SPOUSAL CONTRACT CONTINUATION (JOINT/SPOUSAL) On date of Spousal Contract continuation, we increase the Contract Value to equal the Death Benefit (if greater). For illustration purposes, we will assume the Contract Value on the date of continuation is set equal to the Death Benefit of $150,000 and the Payment Base is $125,000. VALUES UPON SPOUSAL CONTRACT CONTINUATION:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $150,000 $150,000 - Greater of Contract Value or Payment - Greater of Contract Value or Payment Base on date of continuation Base on date of continuation WITHDRAWAL PERCENTAGE 5.5% 5.5% - Withdrawal Percent is set using the - Withdrawal Percent is set using the oldest Covered Life's age on the oldest Covered Life's age on the effective date of continuation effective date of continuation LIFETIME BENEFIT PAYMENT $8,250 $8,250 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by greater of the Contract Value or Payment Payment Base on date of continuation Base on date of continuation GUARANTEED MINIMUM DEATH BENEFIT $150,000 $150,000 - Equal to Contract Value on date of - Equal to Contract Value on date of continuation continuation
APP I-30 ------------------------------------------------------------------------------- EXAMPLE 20: WITHDRAWAL PERCENT INCREASE; ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 4 (SINGLE LIFE). YOUR WITHDRAWAL PERCENT IS 6%, WHICH WAS BASED ON YOUR AGE (70) AT THE TIME OF FIRST WITHDRAWAL. YOUR LIFETIME BENEFIT PAYMENT PRIOR TO THE CONTRACT ANNIVERSARY IS $6,300. YOU ARE NOW AGE 75 AND YOUR ANNIVERSARY IS BEING PROCESSED. YOUR CONTRACT VALUE ON ANNIVERSARY IS $117,000. VALUES PRIOR TO THE ANNIVERSARY:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $105,000 $105,000 WITHDRAWAL PERCENT 6% 6% LIFETIME BENEFIT PAYMENT $6,300 $6,300 GUARANTEED MINIMUM DEATH BENEFIT $94,000 $94,000
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $115,500 $117,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($117,000) divided by your current the rider charge being taken, or Payment Base ($105,000), less 1 - Your current Payment Base - Resulting in 0.11%, capped at 10%. Subject to minimum of 0% and maximum of 10% WITHDRAWAL PERCENT 6.5% 6.5% - Due to the automatic increase and - Due to the automatic increase and client reaching a new age band, the client reaching a new age band, the Withdrawal Percent has increased Withdrawal Percent has increased LIFETIME BENEFIT PAYMENT $7,507.50 $7,605 RIDER CHARGE $635.25 $760.50 - Rider charge of 0.55% multiplied by - Rider charge of 0.65% multiplied by your current Payment Base your current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $94,000 $94,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 21 Assume the following Contract values: Contract Value = $3,000 Lifetime Benefit Payment = $2,000 Client takes a partial Surrender of $2,000 (within rider limit) New Contract Value = $1,000 - Minimum Amount Rule is reached as remaining Contract Value is reduced below one Lifetime Benefit Payment and the Partial Surrender was within the rider limit - Contract Value is transferred to approved investment program - We will no longer accept subsequent Premium Payments - We will begin to automatically pay the annual Lifetime Benefit Payment via the Automatic Income Program. The Lifetime Benefit Payment will be paid out of our General Account - The payout of the Lifetime Benefit Payment will no longer reduce the Contract Value, however, the Death Benefit will continue to be reduced - We will waive the Annual Maintenance Fee and rider fee - Benefit Increases will no longer be applied NOTE: If the Contract Value is reduced below one Lifetime Benefit Payment on any Contract Anniversary due to performance the above scenario would occur. APP I-31 ------------------------------------------------------------------------------- EXAMPLE 22 Assume the following Contract values: Contract Value = $3,000 Lifetime Benefit Payment = $2,000 Client takes a partial Surrender of $2,800 (exceeds rider limit) New Contract Value = $200 - Minimum Account Rule is reached as remaining Contract Value is reduced below the Minimum Account Rule under the contract, $500 (varies by state) and the Partial Surrender exceeded the rider limit - Contract is fully liquidated MAV PLUS EXAMPLE 1 Assume that: - You elected the MAV Plus Death Benefit when you purchased your Contract with the Premium Security Death Benefit, - You made a single Premium Payment of $100,000, - In your fourth Contract Year, you made a withdrawal of $8,000, - Your Contract Value in your fourth Contract Year immediately before your withdrawal was $109,273, - On the day we receive proof of Death, your Contract Value was $117,403, - Your Maximum Anniversary Value was $106,000, - The Contract Value on the date we calculate the Death Benefit plus 40% of the Contract gain was greater than the Premium Security Death Benefit, your adjusted total Premium Payments, and your Maximum Anniversary Value. ADJUSTMENT FOR PARTIAL SURRENDERS FOR EARNINGS PROTECTION BENEFIT To calculate the Earnings Protection Benefit, we make an adjustment for partial Surrenders if the amount of a Surrender is greater than the Contract gain in the Contract immediately prior to the Surrender. To determine if the partial Surrender is greater than the Contract gain: - We determine Contract gain by subtracting the Contract Value on the date you added the MAV Plus Death Benefit from the Contract Value immediately before the partial surrender, then deduct any premium payments and add any adjustments for partial Surrenders made during that time [$109,273 - $100,000 - $0 + $0 = $9,273]. Since the Contract gain at the time of partial Surrender [$9,273] exceeds the partial Surrender [$8,000], there is no adjustment for the partial Surrender in this case. CALCULATION OF CONTRACT GAIN We would calculate the Contract gain as follows: - Contract Value on the day we receive proof of Death [$117,403], - Subtract the Contract Value on the date the MAV Plus Death Benefit was added to your Contract [$100,000], - Add any adjustments for partial Surrenders [$0], So the Contract gain equals $17,403. CALCULATION OF EARNINGS PROTECTION BENEFIT CAP To determine if the cap applies: - We calculate the Contract Value on the date the MAV Plus Death Benefit was added to your Contract ($100,000), - plus Premium Payments made since that date excluding Premium Payments made in the 12 months prior to death ($0), - minus any adjustments for partial Surrenders ($0), Which equals $100,000. The cap is 200% of $100,000, which is $200,000. MAV PLUS DEATH BENEFIT AMOUNT IS $106,000. (See Example 1 under Premium Security Death Benefit for details of calculation.) ADJUSTED TOTAL PREMIUM PAYMENT AMOUNT IS $92,000. (See Example 1 under MAV PLUS/EPB Death Benefit for details of calculation.) APP I-32 ------------------------------------------------------------------------------- MAV PLUS DEATH BENEFIT In this situation the cap does not apply, so we take the Contract Value on the date we receive proof of death and adds 40% of gain [$117,403 + 40% (17,403)] which totals $124,364. This is the greatest of the four values compared, and so is the Death Benefit. EXAMPLE 2 Assume that: - You elected the MAV Plus Death Benefit when you purchased your Contract with the Premium Security Death Benefit, - You made a single Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $60,000, - Your Contract Value in the fourth year immediately before your Surrender was $150,000, - Your Maximum Anniversary Value is $83,571 (based on an adjustment to an anniversary value that was $140,000 before the partial Surrender (see below)), - On the day we receive proof of Death, your Contract Value was $120,000, - The Contract Value on the date we calculate the Death Benefit plus 40% of the Contract gain was the greatest of the Death Benefit calculations. ADJUSTMENT FOR PARTIAL SURRENDERS To calculate the Earnings Protection Benefit, we make an adjustment for partial Surrenders if the amount of a Surrender is greater than the Contract gain in the Contract immediately prior to the Surrender. To determine if the partial Surrender is greater than the Contract gain: - We determine Contract gain by subtracting the Contract Value on the date you added the MAV Plus Death Benefit from the Contract Value immediately before the partial surrender, then deduct any premium payments and add any adjustments for partial Surrenders made during that time [$150,000 - $100,000 - $0 + $0 = $50,000]. Since the partial Surrender [$60,000] exceeds the Contract gain at the time of partial Surrender [$50,000], the adjustment for the partial Surrender is the difference, or $10,000. CALCULATION OF CONTRACT GAIN We would calculate the Contract gain as follows: - Contract Value on the day we receive proof of Death [$120,000], - Subtract the Contract Value on the date the MAV Plus Death Benefit was added to your Contract [$100,000], - Add any adjustments for partial Surrenders [$10,000], So the Contract gain equals $30,000. CALCULATION OF EARNINGS PROTECTION BENEFIT CAP To determine if the cap applies: - We calculate the Contract Value on the date the MAV Plus Death Benefit was added to your Contract ($100,000), - plus Premium Payments made since that date excluding Premium Payments made in the 12 months prior to death ($0), - minus any adjustments for partial Surrenders ($10,000), Which equals $90,000. The cap is 200% of $90,000, which is $180,000. ADJUSTMENT FOR PARTIAL SURRENDERS FOR MAXIMUM ANNIVERSARY VALUE The adjustment to your Maximum Anniversary Value for partial Surrenders is on a dollar for dollar basis up to 10% of total Premium Payments. 10% of Premium Payments is $10,000. Maximum Anniversary Value adjusted for dollar for dollar Surrenders is $140,000 - $10,000 = $130,000. Remaining Surrenders equal $50,000. This amount will reduce the Maximum Anniversary Value proportionally. Contract Value immediately before Surrender is $150,000 minus $10,000 = $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $130,000. The result is an adjusted Maximum Anniversary Value of $83,571. DEATH BENEFIT WITH EARNINGS PROTECTION BENEFIT In this situation the cap does not apply, so we take 40% of Contract gain on the day we receive proof of death $30,000 or $12,000 and add that to the Contract Value on the date we receive proof of death. Therefore, the Earnings Protection Benefit is [40% ($30,000) + $120,000], which equals $132,000. APP II-1 ------------------------------------------------------------------------------- APPENDIX II -- ACCUMULATION UNIT VALUES The following information should be read in conjunction with the financial statements for the Separate Account included in the Statement of Additional Information. There are several classes of Accumulation Unit Values under the Contract depending on the number of optional benefits you select. There are two tables below reflecting the Accumulation Unit Values for Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company. The tables show only the highest and lowest possible Accumulation Unit Value, assuming you select no optional benefits or assuming you select all optional benefits. Tables showing all classes of Accumulation Unit Values corresponding to all combinations of optional benefits appear in the Statement of Additional Information, which you may obtain free of charge by contacting us. HARTFORD LIFE INSURANCE COMPANY: SERIES II/IIR
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- AIM V.I. BASIC VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.515 $1.357 $1.301 $1.187 $1.017 Accumulation Unit Value at end of period $1.518 $1.515 $1.357 $1.301 $1.187 Number of Accumulation Units outstanding at end of period (in thousands) 4,128 4,027 3,551 3,218 1,301 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.453 $1.312 $1.268 $1.181 -- Accumulation Unit Value at end of period $1.444 $1.453 $1.312 $1.268 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,823 4,001 4,345 3,538 -- AIM V.I. CAPITAL APPRECIATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.419 $1.353 $1.260 $1.198 $1.022 Accumulation Unit Value at end of period $1.568 $1.419 $1.353 $1.260 $1.198 Number of Accumulation Units outstanding at end of period (in thousands) 2,046 1,892 694 486 120 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.361 $1.308 $1.228 $1.196 -- Accumulation Unit Value at end of period $1.492 $1.361 $1.308 $1.228 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,435 1,311 669 511 -- AIM V.I. CAPITAL DEVELOPMENT FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.553 -- -- -- -- (a) Accumulation Unit Value at end of period $9.789 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.542 -- -- -- -- (a) Accumulation Unit Value at end of period $9.767 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- -- -- AIM V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.863 $10.303 $9.632 -- -- Accumulation Unit Value at end of period $12.654 $11.863 $10.303 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,035 1,101 2 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.690 $10.234 $9.618 -- -- Accumulation Unit Value at end of period $12.370 $11.690 $10.234 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 964 1,006 -- -- -- AIM V.I. GOVERNMENT SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $1.095 $1.092 $1.079 $1.094 Accumulation Unit Value at end of period $1.174 $1.119 $1.095 $1.092 $1.079 Number of Accumulation Units outstanding at end of period (in thousands) 53,104 29,884 14,477 6,425 1,030 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.073 $1.059 $1.064 $1.064 -- Accumulation Unit Value at end of period $1.117 $1.073 $1.059 $1.064 -- Number of Accumulation Units outstanding at end of period (in thousands) 20,812 18,954 16,034 10,307 --
APP II-2 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.102 $1.662 $1.428 $1.167 $0.970 Accumulation Unit Value at end of period $2.379 $2.102 $1.662 $1.428 $1.167 Number of Accumulation Units outstanding at end of period (in thousands) 7,270 2,232 630 258 84 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.016 $1.607 $1.392 $1.181 -- Accumulation Unit Value at end of period $2.264 $2.016 $1.607 $1.392 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,498 1,243 1,818 470 -- AIM V.I. LARGE CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.474 $10.764 $9.456 -- -- Accumulation Unit Value at end of period $13.091 $11.474 $10.764 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 160 94 2 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.307 $10.692 $9.443 -- -- Accumulation Unit Value at end of period $12.797 $11.307 $10.692 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 128 127 1 -- -- AIM V.I. MID CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.663 $1.515 $1.427 $1.271 $1.111 Accumulation Unit Value at end of period $1.797 $1.663 $1.515 $1.427 $1.271 Number of Accumulation Units outstanding at end of period (in thousands) 6,210 4,974 4,285 2,959 1,123 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.595 $1.465 $1.391 $1.271 -- Accumulation Unit Value at end of period $1.710 $1.595 $1.465 $1.391 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,572 4,515 5,229 3,493 -- AIM V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.394 $12.423 $11.647 $10.790 $10.288 Accumulation Unit Value at end of period $14.937 $14.394 $12.423 $11.647 $10.790 Number of Accumulation Units outstanding at end of period (in thousands) 407 134 78 34 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.029 $12.205 $11.535 $11.054 -- Accumulation Unit Value at end of period $14.443 $14.029 $12.205 $11.535 -- Number of Accumulation Units outstanding at end of period (in thousands) 156 109 81 74 -- AMERICAN FUNDS ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.608 $12.913 $11.993 $11.220 $10.120 Accumulation Unit Value at end of period $15.357 $14.608 $12.913 $11.993 $11.220 Number of Accumulation Units outstanding at end of period (in thousands) 4,853 4,018 3,146 1,968 287 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.820 $11.424 $10.694 $10.151 -- Accumulation Unit Value at end of period $13.369 $12.820 $11.424 $10.694 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,392 2,550 2,650 2,164 -- AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.222 $1.055 $0.997 $0.921 $0.790 Accumulation Unit Value at end of period $1.230 $1.222 $1.055 $0.997 $0.921 Number of Accumulation Units outstanding at end of period (in thousands) 21,965 16,908 12,671 8,579 1,634 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.170 $1.018 $0.970 $0.919 -- Accumulation Unit Value at end of period $1.169 $1.170 $1.018 $0.970 -- Number of Accumulation Units outstanding at end of period (in thousands) 11,387 10,568 11,082 8,662 --
APP II-3 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- AMERICAN FUNDS BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.281 $13.530 $13.499 $12.943 $12.513 Accumulation Unit Value at end of period $14.558 $14.281 $13.530 $13.499 $12.943 Number of Accumulation Units outstanding at end of period (in thousands) 4,138 2,781 1,713 1,014 230 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.371 $12.769 $12.843 $12.500 -- Accumulation Unit Value at end of period $13.522 $13.371 $12.769 $12.843 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,470 1,363 1,300 1,000 -- AMERICAN FUNDS GLOBAL BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.207 $10.028 -- -- -- Accumulation Unit Value at end of period $10.999 $10.207 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 709 79 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.187 $10.021 -- -- -- Accumulation Unit Value at end of period $10.890 $10.187 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 109 29 -- -- -- AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.921 $9.990 -- -- -- Accumulation Unit Value at end of period $12.140 $10.921 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2,980 885 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.856 $9.985 -- -- -- Accumulation Unit Value at end of period $11.972 $10.856 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 308 154 -- -- -- AMERICAN FUNDS GLOBAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.715 $13.227 $11.752 $10.496 $8.622 Accumulation Unit Value at end of period $17.807 $15.715 $13.227 $11.752 $10.496 Number of Accumulation Units outstanding at end of period (in thousands) 1,326 866 594 332 46 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.135 $12.841 $11.501 $10.499 -- Accumulation Unit Value at end of period $17.012 $15.135 $12.841 $11.501 -- Number of Accumulation Units outstanding at end of period (in thousands) 463 421 415 348 -- AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.960 $16.308 $13.187 $11.057 $8.281 Accumulation Unit Value at end of period $23.912 $19.960 $16.308 $13.187 $11.057 Number of Accumulation Units outstanding at end of period (in thousands) 902 659 408 233 47 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.241 $16.671 $13.588 $11.953 -- Accumulation Unit Value at end of period $24.055 $20.241 $16.671 $13.588 -- Number of Accumulation Units outstanding at end of period (in thousands) 414 418 454 297 -- AMERICAN FUNDS GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.955 $13.753 $11.997 $10.810 $9.337 Accumulation Unit Value at end of period $16.576 $14.955 $13.753 $11.997 $10.810 Number of Accumulation Units outstanding at end of period (in thousands) 12,565 8,039 4,469 2,660 601 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.770 $12.765 $11.225 $10.443 -- Accumulation Unit Value at end of period $15.142 $13.770 $12.765 $11.225 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,458 4,490 4,456 3,122 --
APP II-4 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- AMERICAN FUNDS GROWTH-INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.692 $13.806 $13.223 $12.143 $10.422 Accumulation Unit Value at end of period $16.262 $15.692 $13.806 $13.223 $12.143 Number of Accumulation Units outstanding at end of period (in thousands) 11,554 7,464 4,415 2,440 441 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.352 $11.842 $11.432 $10.801 -- Accumulation Unit Value at end of period $13.727 $13.352 $11.842 $11.432 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,830 4,880 4,875 3,306 -- AMERICAN FUNDS INTERNATIONAL FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.583 $13.275 $11.074 $9.407 $7.437 Accumulation Unit Value at end of period $18.452 $15.583 $13.275 $11.074 $9.407 Number of Accumulation Units outstanding at end of period (in thousands) 3,850 2,766 1,497 776 81 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.670 $13.457 $11.316 $9.882 -- Accumulation Unit Value at end of period $18.408 $15.670 $13.457 $11.316 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,204 1,268 1,086 825 -- AMERICAN FUNDS NEW WORLD FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.315 $17.823 $14.962 $12.766 $10.155 Accumulation Unit Value at end of period $30.412 $23.315 $17.823 $14.962 $12.766 Number of Accumulation Units outstanding at end of period (in thousands) 775 471 278 198 41 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $21.039 $16.212 $13.719 $11.966 -- Accumulation Unit Value at end of period $27.225 $21.039 $16.212 $13.719 -- Number of Accumulation Units outstanding at end of period (in thousands) 218 172 155 83 -- FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.878 $10.480 $9.408 -- -- Accumulation Unit Value at end of period $12.269 $10.878 $10.480 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 461 313 95 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.719 $10.411 $9.396 -- -- Accumulation Unit Value at end of period $11.994 $10.719 $10.411 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 99 82 30 -- -- FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.791 $13.537 $13.504 $12.022 $10.500 Accumulation Unit Value at end of period $16.165 $15.791 $13.537 $13.504 $12.022 Number of Accumulation Units outstanding at end of period (in thousands) 20,982 13,732 8,121 3,878 619 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.211 $13.144 $13.217 $12.007 -- Accumulation Unit Value at end of period $15.446 $15.211 $13.144 $13.217 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,505 3,535 3,423 1,995 -- FRANKLIN LARGE CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.066 $11.029 $11.061 $10.388 $9.177 Accumulation Unit Value at end of period $12.646 $12.066 $11.029 $11.061 $10.388 Number of Accumulation Units outstanding at end of period (in thousands) 1,112 895 541 294 49 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.622 $10.708 $10.826 $10.430 -- Accumulation Unit Value at end of period $12.084 $11.622 $10.708 $10.826 -- Number of Accumulation Units outstanding at end of period (in thousands) 651 616 607 426 --
APP II-5 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- FRANKLIN LARGE CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.824 $10.315 $9.708 -- -- Accumulation Unit Value at end of period $11.634 $11.824 $10.315 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 170 93 9 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.651 $10.246 $9.695 -- -- Accumulation Unit Value at end of period $11.374 $11.651 $10.246 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 31 16 5 -- -- FRANKLIN RISING DIVIDENDS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.628 $13.525 $13.254 $12.103 $10.476 Accumulation Unit Value at end of period $15.004 $15.628 $13.525 $13.254 $12.103 Number of Accumulation Units outstanding at end of period (in thousands) 7,350 4,260 2,034 964 112 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.176 $13.239 $13.078 $12.174 -- Accumulation Unit Value at end of period $14.454 $15.176 $13.239 $13.078 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,354 1,395 1,322 829 -- FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.254 -- -- -- -- (a) Accumulation Unit Value at end of period $9.253 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.243 -- -- -- -- (a) Accumulation Unit Value at end of period $9.233 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.943 $12.070 $11.675 $10.616 $8.778 Accumulation Unit Value at end of period $14.205 $12.943 $12.070 $11.675 $10.616 Number of Accumulation Units outstanding at end of period (in thousands) 969 591 360 261 96 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.920 $12.145 $11.842 $11.202 -- Accumulation Unit Value at end of period $14.067 $12.920 $12.145 $11.842 -- Number of Accumulation Units outstanding at end of period (in thousands) 518 426 426 325 -- FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.961 $14.910 $14.856 $13.687 $12.843 Accumulation Unit Value at end of period $16.724 $15.961 $14.910 $14.856 $13.687 Number of Accumulation Units outstanding at end of period (in thousands) 2,126 1,409 834 459 95 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.835 $13.970 $14.030 $13.157 -- Accumulation Unit Value at end of period $15.420 $14.835 $13.970 $14.030 -- Number of Accumulation Units outstanding at end of period (in thousands) 826 749 731 470 -- HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.129 $1.093 $1.077 $1.081 $1.086 Accumulation Unit Value at end of period $1.169 $1.129 $1.093 $1.077 $1.081 Number of Accumulation Units outstanding at end of period (in thousands) 25,415 16,822 9,835 4,098 476 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $1.052 $1.045 $1.056 -- Accumulation Unit Value at end of period $1.107 $1.078 $1.052 $1.045 -- Number of Accumulation Units outstanding at end of period (in thousands) 13,220 5,550 5,324 5,525 --
APP II-6 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ MFS(R) CORE EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.139 $9.031 $9.002 $8.113 $7.184 Accumulation Unit Value at end of period $11.119 $10.139 $9.031 $9.002 $8.113 Number of Accumulation Units outstanding at end of period (in thousands) 18 21 27 11 14 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.072 $8.145 $8.184 $7.631 -- Accumulation Unit Value at end of period $9.869 $9.072 $8.145 $8.184 -- Number of Accumulation Units outstanding at end of period (in thousands) 35 32 31 30 -- MFS(R) EMERGING GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.679 $8.153 $7.568 $6.791 $6.037 Accumulation Unit Value at end of period $10.375 $8.679 $8.153 $7.568 $6.791 Number of Accumulation Units outstanding at end of period (in thousands) 195 98 78 62 28 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.179 $7.745 $7.248 $6.755 -- Accumulation Unit Value at end of period $9.700 $8.179 $7.745 $7.248 -- Number of Accumulation Units outstanding at end of period (in thousands) 76 49 69 54 -- MFS(R) GLOBAL EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.420 $13.378 $12.593 $10.792 $9.284 Accumulation Unit Value at end of period $17.689 $16.420 $13.378 $12.593 $10.792 Number of Accumulation Units outstanding at end of period (in thousands) 58 35 19 8 3 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.966 $12.292 $11.663 $10.243 -- Accumulation Unit Value at end of period $15.995 $14.966 $12.292 $11.663 -- Number of Accumulation Units outstanding at end of period (in thousands) 46 32 24 33 -- MFS(R) HIGH INCOME SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.282 $12.198 $12.102 $11.238 $10.338 Accumulation Unit Value at end of period $13.336 $13.282 $12.198 $12.102 $11.238 Number of Accumulation Units outstanding at end of period (in thousands) 835 586 377 202 83 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.321 $11.405 $11.407 $10.766 -- Accumulation Unit Value at end of period $12.272 $12.321 $11.405 $11.407 -- Number of Accumulation Units outstanding at end of period (in thousands) 372 333 394 240 -- MFS(R) INVESTORS GROWTH STOCK SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.871 $8.358 $8.108 $7.527 $6.906 Accumulation Unit Value at end of period $9.746 $8.871 $8.358 $8.108 $7.527 Number of Accumulation Units outstanding at end of period (in thousands) 132 87 58 76 57 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.086 $7.680 $7.510 $7.184 -- Accumulation Unit Value at end of period $8.813 $8.086 $7.680 $7.510 -- Number of Accumulation Units outstanding at end of period (in thousands) 92 62 66 60 -- MFS(R) INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.127 $9.981 $9.428 $8.581 $7.685 Accumulation Unit Value at end of period $12.109 $11.127 $9.981 $9.428 $8.581 Number of Accumulation Units outstanding at end of period (in thousands) 2,802 1,871 1,019 446 47 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.417 $8.516 $8.108 $7.521 -- Accumulation Unit Value at end of period $10.167 $9.417 $8.516 $8.108 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,220 1,172 1,140 754 --
APP II-7 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ MFS(R) MID CAP GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.126 $6.055 $5.952 $5.266 $4.500 Accumulation Unit Value at end of period $6.638 $6.126 $6.055 $5.952 $5.266 Number of Accumulation Units outstanding at end of period (in thousands) 495 449 399 313 141 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.832 $5.811 $5.758 $5.384 -- Accumulation Unit Value at end of period $6.269 $5.832 $5.811 $5.758 -- Number of Accumulation Units outstanding at end of period (in thousands) 453 433 482 439 -- MFS(R) NEW DISCOVERY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.233 $13.638 $13.135 $12.498 $10.467 Accumulation Unit Value at end of period $15.407 $15.233 $13.638 $13.135 $12.498 Number of Accumulation Units outstanding at end of period (in thousands) 1,310 909 377 196 35 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.379 $12.074 $11.722 $11.875 -- Accumulation Unit Value at end of period $13.424 $13.379 $12.074 $11.722 -- Number of Accumulation Units outstanding at end of period (in thousands) 495 518 578 310 -- MFS(R) RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $10.040 $9.983 -- -- Accumulation Unit Value at end of period $10.596 $10.307 $10.040 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 641 177 27 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.158 $9.975 $9.971 -- -- Accumulation Unit Value at end of period $10.361 $10.158 $9.975 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 89 29 10 -- -- MFS(R) RESEARCH INTERNATIONAL SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.847 $11.985 $10.019 -- -- Accumulation Unit Value at end of period $16.527 $14.847 $11.985 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 300 57 3 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.650 $11.921 $10.018 -- -- Accumulation Unit Value at end of period $16.177 $14.650 $11.921 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 48 13 2 -- -- MFS(R) RESEARCH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.572 $10.617 $9.472 -- -- Accumulation Unit Value at end of period $12.925 $11.572 $10.617 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 32 11 4 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.403 $10.546 $9.459 -- -- Accumulation Unit Value at end of period $12.634 $11.403 $10.546 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 18 7 9 -- -- MFS(R) TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.523 $14.061 $13.861 $12.621 $11.713 Accumulation Unit Value at end of period $15.960 $15.523 $14.061 $13.861 $12.621 Number of Accumulation Units outstanding at end of period (in thousands) 6,616 3,959 1,860 923 164 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.773 $12.576 $12.497 $11.620 -- Accumulation Unit Value at end of period $14.048 $13.773 $12.576 $12.497 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,070 1,991 2,026 1,297 --
APP II-8 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ MFS(R) VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.453 $14.639 $13.912 $12.242 $10.607 Accumulation Unit Value at end of period $18.581 $17.453 $14.639 $13.912 $12.242 Number of Accumulation Units outstanding at end of period (in thousands) 807 373 148 62 14 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.948 $14.330 $13.727 $12.302 -- Accumulation Unit Value at end of period $17.899 $16.948 $14.330 $13.727 -- Number of Accumulation Units outstanding at end of period (in thousands) 192 225 131 84 -- MUTUAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $20.136 $16.585 $14.496 $12.431 $10.546 Accumulation Unit Value at end of period $22.220 $20.136 $16.585 $14.496 $12.431 Number of Accumulation Units outstanding at end of period (in thousands) 1,814 1,001 438 207 21 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.553 $16.235 $14.304 $12.521 -- Accumulation Unit Value at end of period $21.405 $19.553 $16.235 $14.304 -- Number of Accumulation Units outstanding at end of period (in thousands) 475 489 372 195 -- MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.484 $16.683 $15.295 $13.764 $12.081 Accumulation Unit Value at end of period $19.892 $19.484 $16.683 $15.295 $13.764 Number of Accumulation Units outstanding at end of period (in thousands) 9,553 6,695 4,108 2,075 304 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.694 $14.408 $13.316 $12.204 -- Accumulation Unit Value at end of period $16.907 $16.694 $14.408 $13.316 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,134 2,125 2,145 1,327 -- TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.737 $18.733 $14.862 $12.067 $8.935 Accumulation Unit Value at end of period $30.230 $23.737 $18.733 $14.862 $12.067 Number of Accumulation Units outstanding at end of period (in thousands) 454 304 159 51 6 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.618 $15.607 $12.481 $10.512 -- Accumulation Unit Value at end of period $24.786 $19.618 $15.607 $12.481 -- Number of Accumulation Units outstanding at end of period (in thousands) 170 165 157 90 -- TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.502 $12.104 $11.136 $9.523 $7.775 Accumulation Unit Value at end of period $16.519 $14.502 $12.104 $11.136 $9.523 Number of Accumulation Units outstanding at end of period (in thousands) 3,379 2,739 1,634 847 96 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.261 $11.157 $10.347 $9.107 -- Accumulation Unit Value at end of period $14.985 $13.261 $11.157 $10.347 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,495 1,596 1,616 1,192 -- TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.068 $14.202 $13.223 $11.552 $9.590 Accumulation Unit Value at end of period $17.234 $17.068 $14.202 $13.223 $11.552 Number of Accumulation Units outstanding at end of period (in thousands) 9,032 6,655 4,070 1,828 177 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.227 $12.772 $11.987 $10.763 -- Accumulation Unit Value at end of period $15.252 $15.227 $12.772 $11.987 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,750 1,945 1,941 1,097 --
APP II-9 ------------------------------------------------------------------------------- SERIES III
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- AIM V.I. BASIC VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.515 $1.357 $1.247 Accumulation Unit Value at end of period $1.518 $1.515 $1.357 Number of Accumulation Units outstanding at end of period (in thousands) 4,128 4,027 3,551 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.453 $1.312 $1.212 Accumulation Unit Value at end of period $1.444 $1.453 $1.312 Number of Accumulation Units outstanding at end of period (in thousands) 3,823 4,001 4,345 AIM V.I. CAPITAL APPRECIATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.419 $1.353 $1.175 Accumulation Unit Value at end of period $1.568 $1.419 $1.353 Number of Accumulation Units outstanding at end of period (in thousands) 2,046 1,892 694 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.361 $1.308 $1.142 Accumulation Unit Value at end of period $1.492 $1.361 $1.308 Number of Accumulation Units outstanding at end of period (in thousands) 1,435 1,311 669 AIM V.I. CAPITAL DEVELOPMENT FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.553 -- -- (a) Accumulation Unit Value at end of period $9.789 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.542 -- -- (a) Accumulation Unit Value at end of period $9.767 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- AIM V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.863 $10.303 $9.632 Accumulation Unit Value at end of period $12.654 $11.863 $10.303 Number of Accumulation Units outstanding at end of period (in thousands) 1,035 1,101 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.690 $10.234 $9.618 Accumulation Unit Value at end of period $12.370 $11.690 $10.234 Number of Accumulation Units outstanding at end of period (in thousands) 964 1,006 -- AIM V.I. GOVERNMENT SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $1.095 $1.092 Accumulation Unit Value at end of period $1.174 $1.119 $1.095 Number of Accumulation Units outstanding at end of period (in thousands) 53,104 29,884 14,477 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.073 $1.059 $1.062 Accumulation Unit Value at end of period $1.117 $1.073 $1.059 Number of Accumulation Units outstanding at end of period (in thousands) 20,812 18,954 16,034 AIM V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.102 $1.662 $1.397 Accumulation Unit Value at end of period $2.379 $2.102 $1.662 Number of Accumulation Units outstanding at end of period (in thousands) 7,270 2,232 630 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.016 $1.607 $1.358 Accumulation Unit Value at end of period $2.264 $2.016 $1.607 Number of Accumulation Units outstanding at end of period (in thousands) 1,498 1,243 1,818
APP II-10 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- AIM V.I. LARGE CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.474 $10.764 $9.456 Accumulation Unit Value at end of period $13.091 $11.474 $10.764 Number of Accumulation Units outstanding at end of period (in thousands) 160 94 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.307 $10.692 $9.443 Accumulation Unit Value at end of period $12.797 $11.307 $10.692 Number of Accumulation Units outstanding at end of period (in thousands) 128 127 1 AIM V.I. MID CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.663 $1.515 $1.395 Accumulation Unit Value at end of period $1.797 $1.663 $1.515 Number of Accumulation Units outstanding at end of period (in thousands) 6,210 4,974 4,285 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.595 $1.465 $1.356 Accumulation Unit Value at end of period $1.710 $1.595 $1.465 Number of Accumulation Units outstanding at end of period (in thousands) 4,572 4,515 5,229 AIM V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.394 $12.423 $10.812 Accumulation Unit Value at end of period $14.937 $14.394 $12.423 Number of Accumulation Units outstanding at end of period (in thousands) 407 134 78 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.029 $12.205 $10.679 Accumulation Unit Value at end of period $14.443 $14.029 $12.205 Number of Accumulation Units outstanding at end of period (in thousands) 156 109 81 AMERICAN FUNDS ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.608 $12.913 $11.768 Accumulation Unit Value at end of period $15.357 $14.608 $12.913 Number of Accumulation Units outstanding at end of period (in thousands) 4,853 4,018 3,146 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.820 $11.424 $10.466 Accumulation Unit Value at end of period $13.369 $12.820 $11.424 Number of Accumulation Units outstanding at end of period (in thousands) 2,392 2,550 2,650 AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.222 $1.055 $0.956 Accumulation Unit Value at end of period $1.230 $1.222 $1.055 Number of Accumulation Units outstanding at end of period (in thousands) 21,965 16,908 12,671 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.170 $1.018 $0.927 Accumulation Unit Value at end of period $1.169 $1.170 $1.018 Number of Accumulation Units outstanding at end of period (in thousands) 11,387 10,568 11,082 AMERICAN FUNDS BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.281 $13.530 $13.310 Accumulation Unit Value at end of period $14.558 $14.281 $13.530 Number of Accumulation Units outstanding at end of period (in thousands) 4,138 2,781 1,713 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.371 $12.769 $12.629 Accumulation Unit Value at end of period $13.522 $13.371 $12.769 Number of Accumulation Units outstanding at end of period (in thousands) 1,470 1,363 1,300
APP II-11 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- AMERICAN FUNDS GLOBAL BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.207 $10.028 -- Accumulation Unit Value at end of period $10.999 $10.207 -- Number of Accumulation Units outstanding at end of period (in thousands) 709 79 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.187 $10.021 -- Accumulation Unit Value at end of period $10.890 $10.187 -- Number of Accumulation Units outstanding at end of period (in thousands) 109 29 -- AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.921 $9.990 -- Accumulation Unit Value at end of period $12.140 $10.921 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,980 885 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.856 $9.985 -- Accumulation Unit Value at end of period $11.972 $10.856 -- Number of Accumulation Units outstanding at end of period (in thousands) 308 154 -- AMERICAN FUNDS GLOBAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.715 $13.227 $11.285 Accumulation Unit Value at end of period $17.807 $15.715 $13.227 Number of Accumulation Units outstanding at end of period (in thousands) 1,326 866 594 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.135 $12.841 $11.014 Accumulation Unit Value at end of period $17.012 $15.135 $12.841 Number of Accumulation Units outstanding at end of period (in thousands) 463 421 415 AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.960 $16.308 $13.174 Accumulation Unit Value at end of period $23.912 $19.960 $16.308 Number of Accumulation Units outstanding at end of period (in thousands) 902 659 408 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.241 $16.671 $13.538 Accumulation Unit Value at end of period $24.055 $20.241 $16.671 Number of Accumulation Units outstanding at end of period (in thousands) 414 418 454 AMERICAN FUNDS GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.955 $13.753 $11.567 Accumulation Unit Value at end of period $16.576 $14.955 $13.753 Number of Accumulation Units outstanding at end of period (in thousands) 12,565 8,039 4,469 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.770 $12.765 $10.794 Accumulation Unit Value at end of period $15.142 $13.770 $12.765 Number of Accumulation Units outstanding at end of period (in thousands) 4,458 4,490 4,456 AMERICAN FUNDS GROWTH-INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.692 $13.806 $12.649 Accumulation Unit Value at end of period $16.262 $15.692 $13.806 Number of Accumulation Units outstanding at end of period (in thousands) 11,554 7,464 4,415 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.352 $11.842 $10.908 Accumulation Unit Value at end of period $13.727 $13.352 $11.842 Number of Accumulation Units outstanding at end of period (in thousands) 4,830 4,880 4,875
APP II-12 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- AMERICAN FUNDS INTERNATIONAL FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.583 $13.275 $10.766 Accumulation Unit Value at end of period $18.452 $15.583 $13.275 Number of Accumulation Units outstanding at end of period (in thousands) 3,850 2,766 1,497 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.670 $13.457 $10.971 Accumulation Unit Value at end of period $18.408 $15.670 $13.457 Number of Accumulation Units outstanding at end of period (in thousands) 1,204 1,268 1,086 AMERICAN FUNDS NEW WORLD FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.315 $17.823 $14.766 Accumulation Unit Value at end of period $30.412 $23.315 $17.823 Number of Accumulation Units outstanding at end of period (in thousands) 775 471 278 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $21.039 $16.212 $13.503 Accumulation Unit Value at end of period $27.225 $21.039 $16.212 Number of Accumulation Units outstanding at end of period (in thousands) 218 172 155 FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.878 $10.480 $9.408 Accumulation Unit Value at end of period $12.269 $10.878 $10.480 Number of Accumulation Units outstanding at end of period (in thousands) 461 313 95 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.719 $10.411 $9.396 Accumulation Unit Value at end of period $11.994 $10.719 $10.411 Number of Accumulation Units outstanding at end of period (in thousands) 99 82 30 FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.791 $13.537 $13.057 Accumulation Unit Value at end of period $16.165 $15.791 $13.537 Number of Accumulation Units outstanding at end of period (in thousands) 20,982 13,732 8,121 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.211 $13.144 $12.746 Accumulation Unit Value at end of period $15.446 $15.211 $13.144 Number of Accumulation Units outstanding at end of period (in thousands) 3,505 3,535 3,423 FRANKLIN LARGE CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.066 $11.029 $10.613 Accumulation Unit Value at end of period $12.646 $12.066 $11.029 Number of Accumulation Units outstanding at end of period (in thousands) 1,112 895 541 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.622 $10.708 $10.359 Accumulation Unit Value at end of period $12.084 $11.622 $10.708 Number of Accumulation Units outstanding at end of period (in thousands) 651 616 607 FRANKLIN LARGE CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.824 $10.315 $9.708 Accumulation Unit Value at end of period $11.634 $11.824 $10.315 Number of Accumulation Units outstanding at end of period (in thousands) 170 93 9 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.651 $10.246 $9.695 Accumulation Unit Value at end of period $11.374 $11.651 $10.246 Number of Accumulation Units outstanding at end of period (in thousands) 31 16 5
APP II-13 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- FRANKLIN RISING DIVIDENDS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.628 $13.525 $12.810 Accumulation Unit Value at end of period $15.004 $15.628 $13.525 Number of Accumulation Units outstanding at end of period (in thousands) 7,350 4,260 2,034 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.176 $13.239 $12.607 Accumulation Unit Value at end of period $14.454 $15.176 $13.239 Number of Accumulation Units outstanding at end of period (in thousands) 1,354 1,395 1,322 FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.254 -- -- (a) Accumulation Unit Value at end of period $9.253 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.243 -- -- (a) Accumulation Unit Value at end of period $9.233 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.943 $12.070 $10.504 Accumulation Unit Value at end of period $14.205 $12.943 $12.070 Number of Accumulation Units outstanding at end of period (in thousands) 969 591 360 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.920 $12.145 $10.626 Accumulation Unit Value at end of period $14.067 $12.920 $12.145 Number of Accumulation Units outstanding at end of period (in thousands) 518 426 426 FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.961 $14.910 $14.583 Accumulation Unit Value at end of period $16.724 $15.961 $14.910 Number of Accumulation Units outstanding at end of period (in thousands) 2,126 1,409 834 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.835 $13.970 $13.736 Accumulation Unit Value at end of period $15.420 $14.835 $13.970 Number of Accumulation Units outstanding at end of period (in thousands) 826 749 731 HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.129 $1.093 $1.080 Accumulation Unit Value at end of period $1.169 $1.129 $1.093 Number of Accumulation Units outstanding at end of period (in thousands) 25,415 16,822 9,835 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $1.052 $1.045 Accumulation Unit Value at end of period $1.107 $1.078 $1.052 Number of Accumulation Units outstanding at end of period (in thousands) 13,220 5,550 5,324 MFS(R) EMERGING GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.679 $8.153 $6.894 Accumulation Unit Value at end of period $10.375 $8.679 $8.153 Number of Accumulation Units outstanding at end of period (in thousands) 195 98 78 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.179 $7.745 $6.584 Accumulation Unit Value at end of period $9.700 $8.179 $7.745 Number of Accumulation Units outstanding at end of period (in thousands) 76 49 69
APP II-14 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- MFS(R) GLOBAL EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.420 $13.378 $12.168 Accumulation Unit Value at end of period $17.689 $16.420 $13.378 Number of Accumulation Units outstanding at end of period (in thousands) 58 35 19 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.966 $12.292 $11.239 Accumulation Unit Value at end of period $15.995 $14.966 $12.292 Number of Accumulation Units outstanding at end of period (in thousands) 46 32 24 MFS(R) HIGH INCOME SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.282 $12.198 $11.734 Accumulation Unit Value at end of period $13.336 $13.282 $12.198 Number of Accumulation Units outstanding at end of period (in thousands) 835 586 377 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.321 $11.405 $11.030 Accumulation Unit Value at end of period $12.272 $12.321 $11.405 Number of Accumulation Units outstanding at end of period (in thousands) 372 333 394 MFS(R) INVESTORS GROWTH STOCK SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.871 $8.358 $7.590 Accumulation Unit Value at end of period $9.746 $8.871 $8.358 Number of Accumulation Units outstanding at end of period (in thousands) 132 87 58 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.086 $7.680 $7.011 Accumulation Unit Value at end of period $8.813 $8.086 $7.680 Number of Accumulation Units outstanding at end of period (in thousands) 92 62 66 MFS(R) INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.127 $9.981 $9.053 Accumulation Unit Value at end of period $12.109 $11.127 $9.981 Number of Accumulation Units outstanding at end of period (in thousands) 2,802 1,871 1,019 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.417 $8.516 $7.765 Accumulation Unit Value at end of period $10.167 $9.417 $8.516 Number of Accumulation Units outstanding at end of period (in thousands) 1,220 1,172 1,140 MFS(R) MID CAP GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.126 $6.055 $5.306 Accumulation Unit Value at end of period $6.638 $6.126 $6.055 Number of Accumulation Units outstanding at end of period (in thousands) 495 449 399 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.832 $5.811 $5.120 Accumulation Unit Value at end of period $6.269 $5.832 $5.811 Number of Accumulation Units outstanding at end of period (in thousands) 453 433 482 MFS(R) NEW DISCOVERY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.233 $13.638 $11.343 Accumulation Unit Value at end of period $15.407 $15.233 $13.638 Number of Accumulation Units outstanding at end of period (in thousands) 1,310 909 377 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.379 $12.074 $10.096 Accumulation Unit Value at end of period $13.424 $13.379 $12.074 Number of Accumulation Units outstanding at end of period (in thousands) 495 518 578
APP II-15 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- MFS(R) RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $10.040 $9.983 Accumulation Unit Value at end of period $10.596 $10.307 $10.040 Number of Accumulation Units outstanding at end of period (in thousands) 641 177 27 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.158 $9.975 $9.971 Accumulation Unit Value at end of period $10.361 $10.158 $9.975 Number of Accumulation Units outstanding at end of period (in thousands) 89 29 10 MFS(R) RESEARCH INTERNATIONAL SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.847 $11.985 $10.019 Accumulation Unit Value at end of period $16.527 $14.847 $11.985 Number of Accumulation Units outstanding at end of period (in thousands) 300 57 3 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.650 $11.921 $10.018 Accumulation Unit Value at end of period $16.177 $14.650 $11.921 Number of Accumulation Units outstanding at end of period (in thousands) 48 13 2 MFS(R) RESEARCH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.572 $10.617 $9.472 Accumulation Unit Value at end of period $12.925 $11.572 $10.617 Number of Accumulation Units outstanding at end of period (in thousands) 32 11 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.403 $10.546 $9.459 Accumulation Unit Value at end of period $12.634 $11.403 $10.546 Number of Accumulation Units outstanding at end of period (in thousands) 18 7 9 MFS(R) TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.523 $14.061 $13.598 Accumulation Unit Value at end of period $15.960 $15.523 $14.061 Number of Accumulation Units outstanding at end of period (in thousands) 6,616 3,959 1,860 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.773 $12.576 $12.227 Accumulation Unit Value at end of period $14.048 $13.773 $12.576 Number of Accumulation Units outstanding at end of period (in thousands) 2,070 1,991 2,026 MFS(R) VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.453 $14.639 $13.768 Accumulation Unit Value at end of period $18.581 $17.453 $14.639 Number of Accumulation Units outstanding at end of period (in thousands) 807 373 148 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.948 $14.330 $13.549 Accumulation Unit Value at end of period $17.899 $16.948 $14.330 Number of Accumulation Units outstanding at end of period (in thousands) 192 225 131 MUTUAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $20.136 $16.585 $14.600 Accumulation Unit Value at end of period $22.220 $20.136 $16.585 Number of Accumulation Units outstanding at end of period (in thousands) 1,814 1,001 438 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.553 $16.235 $14.367 Accumulation Unit Value at end of period $21.405 $19.553 $16.235 Number of Accumulation Units outstanding at end of period (in thousands) 475 489 372
APP II-16 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.484 $16.683 $15.153 Accumulation Unit Value at end of period $19.892 $19.484 $16.683 Number of Accumulation Units outstanding at end of period (in thousands) 9,553 6,695 4,108 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.694 $14.408 $13.157 Accumulation Unit Value at end of period $16.907 $16.694 $14.408 Number of Accumulation Units outstanding at end of period (in thousands) 2,134 2,125 2,145 TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.737 $18.733 $14.727 Accumulation Unit Value at end of period $30.230 $23.737 $18.733 Number of Accumulation Units outstanding at end of period (in thousands) 454 304 159 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.618 $15.607 $12.335 Accumulation Unit Value at end of period $24.786 $19.618 $15.607 Number of Accumulation Units outstanding at end of period (in thousands) 170 165 157 TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.502 $12.104 $10.823 Accumulation Unit Value at end of period $16.519 $14.502 $12.104 Number of Accumulation Units outstanding at end of period (in thousands) 3,379 2,739 1,634 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.261 $11.157 $10.030 Accumulation Unit Value at end of period $14.985 $13.261 $11.157 Number of Accumulation Units outstanding at end of period (in thousands) 1,495 1,596 1,616 TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.068 $14.202 $12.979 Accumulation Unit Value at end of period $17.234 $17.068 $14.202 Number of Accumulation Units outstanding at end of period (in thousands) 9,032 6,655 4,070 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.227 $12.772 $11.734 Accumulation Unit Value at end of period $15.252 $15.227 $12.772 Number of Accumulation Units outstanding at end of period (in thousands) 1,750 1,945 1,941
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.320 $1.193 $1.152 $1.085 Accumulation Unit Value at end of period $1.401 $1.320 $1.193 $1.152 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.271 $1.158 $1.127 $1.070 Accumulation Unit Value at end of period $1.338 $1.271 $1.158 $1.127 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT C&B LARGE CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.323 $1.098 $1.079 $0.999 Accumulation Unit Value at end of period $1.290 $1.323 $1.098 $1.079 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.274 $1.066 $1.056 $0.985 Accumulation Unit Value at end of period $1.232 $1.274 $1.066 $1.056 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- --
APP II-17 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT DISCOVERY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.731 $11.256 $10.524 -- Accumulation Unit Value at end of period $15.364 $12.731 $11.256 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.570 $11.203 $10.516 -- Accumulation Unit Value at end of period $15.050 $12.570 $11.203 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT EQUITY INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.405 $1.201 $1.155 $1.070 Accumulation Unit Value at end of period $1.425 $1.405 $1.201 $1.155 Number of Accumulation Units outstanding at end of period (in thousands) 14 14 15 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.353 $1.166 $1.130 $1.055 Accumulation Unit Value at end of period $1.361 $1.353 $1.166 $1.130 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.451 $1.217 $1.125 $1.040 Accumulation Unit Value at end of period $1.613 $1.451 $1.217 $1.125 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.397 $1.182 $1.101 $1.025 Accumulation Unit Value at end of period $1.541 $1.397 $1.182 $1.101 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $0.981 $1.017 $0.964 Accumulation Unit Value at end of period $1.130 $1.119 $0.981 $1.017 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $0.952 $0.995 $0.950 Accumulation Unit Value at end of period $1.079 $1.078 $0.952 $0.995 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.069 $1.059 $1.016 $1.007 Accumulation Unit Value at end of period $1.135 $1.069 $1.059 $1.016 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.030 $1.028 $0.994 $0.993 Accumulation Unit Value at end of period $1.085 $1.030 $1.028 $0.994 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT MONEY MARKET FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.026 $0.996 $0.984 $0.990 Accumulation Unit Value at end of period $1.059 $1.026 $0.996 $0.984 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.988 $0.967 $0.963 $0.976 Accumulation Unit Value at end of period $1.012 $0.988 $0.967 $0.963 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- --
APP II-18 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.016 $10.853 $10.330 -- Accumulation Unit Value at end of period $12.642 $12.016 $10.853 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.865 $10.803 $10.322 -- Accumulation Unit Value at end of period $12.383 $11.865 $10.803 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.407 $1.162 $1.108 $1.042 Accumulation Unit Value at end of period $1.580 $1.407 $1.162 $1.108 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.355 $1.128 $1.084 $1.027 Accumulation Unit Value at end of period $1.509 $1.355 $1.128 $1.084 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT SMALL/MID CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.815 $12.100 $10.825 -- Accumulation Unit Value at end of period $13.536 $13.815 $12.100 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.641 $12.044 $10.817 -- Accumulation Unit Value at end of period $13.259 $13.641 $12.044 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT TOTAL RETURN BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.186 $1.158 $1.151 $1.126 Accumulation Unit Value at end of period $1.243 $1.186 $1.158 $1.151 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 7 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.142 $1.124 $1.127 $1.110 Accumulation Unit Value at end of period $1.187 $1.142 $1.124 $1.127 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- --
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.320 $1.193 $1.122 Accumulation Unit Value at end of period $1.401 $1.320 $1.193 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.271 $1.158 $1.095 Accumulation Unit Value at end of period $1.338 $1.271 $1.158 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT C&B LARGE CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.323 $1.098 $1.063 Accumulation Unit Value at end of period $1.290 $1.323 $1.098 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.274 $1.066 $1.038 Accumulation Unit Value at end of period $1.232 $1.274 $1.066 Number of Accumulation Units outstanding at end of period (in thousands) -- -- --
APP II-19 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT DISCOVERY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.731 $11.256 $10.524 Accumulation Unit Value at end of period $15.364 $12.731 $11.256 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.570 $11.203 $10.516 Accumulation Unit Value at end of period $15.050 $12.570 $11.203 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT EQUITY INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.405 $1.201 $1.140 Accumulation Unit Value at end of period $1.425 $1.405 $1.201 Number of Accumulation Units outstanding at end of period (in thousands) 14 14 15 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.353 $1.166 $1.113 Accumulation Unit Value at end of period $1.361 $1.353 $1.166 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.451 $1.217 $1.093 Accumulation Unit Value at end of period $1.613 $1.451 $1.217 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.397 $1.182 $1.066 Accumulation Unit Value at end of period $1.541 $1.397 $1.182 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $0.981 $0.949 Accumulation Unit Value at end of period $1.130 $1.119 $0.981 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $0.952 $0.926 Accumulation Unit Value at end of period $1.079 $1.078 $0.952 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.069 $1.059 $0.911 Accumulation Unit Value at end of period $1.135 $1.069 $1.059 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.030 $1.028 $0.889 Accumulation Unit Value at end of period $1.085 $1.030 $1.028 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT MONEY MARKET FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.026 $0.996 $0.986 Accumulation Unit Value at end of period $1.059 $1.026 $0.996 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.988 $0.967 $0.962 Accumulation Unit Value at end of period $1.012 $0.988 $0.967 Number of Accumulation Units outstanding at end of period (in thousands) -- -- --
APP II-20 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.016 $10.853 $10.330 Accumulation Unit Value at end of period $12.642 $12.016 $10.853 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.865 $10.803 $10.322 Accumulation Unit Value at end of period $12.383 $11.865 $10.803 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.407 $1.162 $0.970 Accumulation Unit Value at end of period $1.580 $1.407 $1.162 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.355 $1.128 $0.946 Accumulation Unit Value at end of period $1.509 $1.355 $1.128 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT SMALL/MID CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.815 $12.100 $10.825 Accumulation Unit Value at end of period $13.536 $13.815 $12.100 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.641 $12.044 $10.817 Accumulation Unit Value at end of period $13.259 $13.641 $12.044 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT TOTAL RETURN BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.186 $1.158 $1.154 Accumulation Unit Value at end of period $1.243 $1.186 $1.158 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 7 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.142 $1.124 $1.126 Accumulation Unit Value at end of period $1.187 $1.142 $1.124 Number of Accumulation Units outstanding at end of period (in thousands) -- -- --
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST BALANCED PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.498 $10.501 $10.384 $9.896 Accumulation Unit Value at end of period $12.040 $11.498 $10.501 $10.384 Number of Accumulation Units outstanding at end of period (in thousands) 39 28 27 24 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.248 $10.355 $10.322 $9.880 Accumulation Unit Value at end of period $11.684 $11.248 $10.355 $10.322 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- JPMORGAN INSURANCE TRUST CORE BOND PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.410 $10.132 $10.030 $9.637 Accumulation Unit Value at end of period $10.918 $10.410 $10.132 $10.030 Number of Accumulation Units outstanding at end of period (in thousands) 2,382 1,524 824 188 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.183 $9.991 $9.970 $9.622 Accumulation Unit Value at end of period $10.595 $10.183 $9.991 $9.970 Number of Accumulation Units outstanding at end of period (in thousands) 232 169 99 28
APP II-21 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST DIVERSIFIED EQUITY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.300 $10.734 $10.632 $10.072 Accumulation Unit Value at end of period $13.403 $12.300 $10.734 $10.632 Number of Accumulation Units outstanding at end of period (in thousands) 385 317 187 49 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.032 $10.585 $10.569 $10.056 Accumulation Unit Value at end of period $13.007 $12.032 $10.585 $10.569 Number of Accumulation Units outstanding at end of period (in thousands) 44 43 24 9 JPMORGAN INSURANCE TRUST DIVERSIFIED MID CAP GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.753 $11.605 $10.588 $9.930 Accumulation Unit Value at end of period $14.752 $12.753 $11.605 $10.588 Number of Accumulation Units outstanding at end of period (in thousands) 413 348 213 62 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.476 $11.444 $10.525 $9.914 Accumulation Unit Value at end of period $14.316 $12.476 $11.444 $10.525 Number of Accumulation Units outstanding at end of period (in thousands) 39 37 24 7 JPMORGAN INSURANCE TRUST DIVERSIFIED MID CAP VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.665 $11.867 $10.959 $9.938 Accumulation Unit Value at end of period $13.606 $13.665 $11.867 $10.959 Number of Accumulation Units outstanding at end of period (in thousands) 310 291 237 62 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.368 $11.702 $10.893 $9.922 Accumulation Unit Value at end of period $13.203 $13.368 $11.702 $10.893 Number of Accumulation Units outstanding at end of period (in thousands) 31 33 32 7 JPMORGAN INSURANCE TRUST EQUITY INDEX PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.615 $11.079 $10.750 $10.085 Accumulation Unit Value at end of period $13.081 $12.615 $11.079 $10.750 Number of Accumulation Units outstanding at end of period (in thousands) 1,480 1,079 635 160 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.341 $10.925 $10.686 $10.069 Accumulation Unit Value at end of period $12.694 $12.341 $10.925 $10.686 Number of Accumulation Units outstanding at end of period (in thousands) 164 140 81 28 JPMORGAN INSURANCE TRUST GOVERNMENT BOND PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.457 $10.244 $10.072 $9.598 Accumulation Unit Value at end of period $11.090 $10.457 $10.244 $10.072 Number of Accumulation Units outstanding at end of period (in thousands) 933 610 337 91 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.230 $10.101 $10.012 $9.582 Accumulation Unit Value at end of period $10.762 $10.230 $10.101 $10.012 Number of Accumulation Units outstanding at end of period (in thousands) 71 54 31 7 JPMORGAN INSURANCE TRUST INTREPID GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.346 $10.913 $10.530 $10.084 Accumulation Unit Value at end of period $12.486 $11.346 $10.913 $10.530 Number of Accumulation Units outstanding at end of period (in thousands) 78 5 7 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.099 $10.762 $10.466 $10.068 Accumulation Unit Value at end of period $12.117 $11.099 $10.762 $10.466 Number of Accumulation Units outstanding at end of period (in thousands) 4 -- -- --
APP II-22 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST INTREPID MID CAP PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.360 $12.755 $11.041 $9.960 Accumulation Unit Value at end of period $14.574 $14.360 $12.755 $11.041 Number of Accumulation Units outstanding at end of period (in thousands) 301 143 21 11 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.048 $12.577 $10.974 $9.944 Accumulation Unit Value at end of period $14.143 $14.048 $12.577 $10.974 Number of Accumulation Units outstanding at end of period (in thousands) 24 14 3 --
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST BALANCED PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.498 $10.501 $10.086 Accumulation Unit Value at end of period $12.040 $11.498 $10.501 Number of Accumulation Units outstanding at end of period (in thousands) 39 28 27 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.248 $10.355 $9.998 Accumulation Unit Value at end of period $11.684 $11.248 $10.355 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- JPMORGAN INSURANCE TRUST CORE BOND PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.410 $10.132 $10.070 Accumulation Unit Value at end of period $10.918 $10.410 $10.132 Number of Accumulation Units outstanding at end of period (in thousands) 2,382 1,524 824 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.183 $9.991 $9.982 Accumulation Unit Value at end of period $10.595 $10.183 $9.991 Number of Accumulation Units outstanding at end of period (in thousands) 232 169 99 JPMORGAN INSURANCE TRUST DIVERSIFIED EQUITY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.300 $10.734 $10.058 Accumulation Unit Value at end of period $13.403 $12.300 $10.734 Number of Accumulation Units outstanding at end of period (in thousands) 385 317 187 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.032 $10.585 $9.971 Accumulation Unit Value at end of period $13.007 $12.032 $10.585 Number of Accumulation Units outstanding at end of period (in thousands) 44 43 24 JPMORGAN INSURANCE TRUST DIVERSIFIED MID CAP GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.753 $11.605 $10.129 Accumulation Unit Value at end of period $14.752 $12.753 $11.605 Number of Accumulation Units outstanding at end of period (in thousands) 413 348 213 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.476 $11.444 $10.041 Accumulation Unit Value at end of period $14.316 $12.476 $11.444 Number of Accumulation Units outstanding at end of period (in thousands) 39 37 24 JPMORGAN INSURANCE TRUST DIVERSIFIED MID CAP VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.665 $11.867 $10.746 Accumulation Unit Value at end of period $13.606 $13.665 $11.867 Number of Accumulation Units outstanding at end of period (in thousands) 310 291 237 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.368 $11.702 $10.653 Accumulation Unit Value at end of period $13.203 $13.368 $11.702 Number of Accumulation Units outstanding at end of period (in thousands) 31 33 32
APP II-23 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST EQUITY INDEX PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.615 $11.079 $10.309 Accumulation Unit Value at end of period $13.081 $12.615 $11.079 Number of Accumulation Units outstanding at end of period (in thousands) 1,480 1,079 635 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.341 $10.925 $10.219 Accumulation Unit Value at end of period $12.694 $12.341 $10.925 Number of Accumulation Units outstanding at end of period (in thousands) 164 140 81 JPMORGAN INSURANCE TRUST GOVERNMENT BOND PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.457 $10.244 $10.209 Accumulation Unit Value at end of period $11.090 $10.457 $10.244 Number of Accumulation Units outstanding at end of period (in thousands) 933 610 337 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.230 $10.101 $10.121 Accumulation Unit Value at end of period $10.762 $10.230 $10.101 Number of Accumulation Units outstanding at end of period (in thousands) 71 54 31 JPMORGAN INSURANCE TRUST INTREPID GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.346 $10.913 $9.663 Accumulation Unit Value at end of period $12.486 $11.346 $10.913 Number of Accumulation Units outstanding at end of period (in thousands) 78 5 7 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.099 $10.762 $9.579 Accumulation Unit Value at end of period $12.117 $11.099 $10.762 Number of Accumulation Units outstanding at end of period (in thousands) 4 -- -- JPMORGAN INSURANCE TRUST INTREPID MID CAP PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.360 $12.755 $10.877 Accumulation Unit Value at end of period $14.574 $14.360 $12.755 Number of Accumulation Units outstanding at end of period (in thousands) 301 143 21 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.048 $12.577 $10.783 Accumulation Unit Value at end of period $14.143 $14.048 $12.577 Number of Accumulation Units outstanding at end of period (in thousands) 24 14 3 STI CLASSIC VT LARGE CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.801 $1.571 $1.457 Accumulation Unit Value at end of period $1.791 $1.801 $1.571 Number of Accumulation Units outstanding at end of period (in thousands) 14 7 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.753 $1.542 $1.437 Accumulation Unit Value at end of period $1.730 $1.753 $1.542 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- STI CLASSIC VT LARGE CAP GROWTH STOCK FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.319 $1.207 $1.156 Accumulation Unit Value at end of period $1.501 $1.319 $1.207 Number of Accumulation Units outstanding at end of period (in thousands) 338 275 107 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.284 $1.184 $1.140 Accumulation Unit Value at end of period $1.449 $1.284 $1.184 Number of Accumulation Units outstanding at end of period (in thousands) 29 29 18
APP II-24 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- STI CLASSIC VT LARGE CAP VALUE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.822 $1.508 $1.437 Accumulation Unit Value at end of period $1.862 $1.822 $1.508 Number of Accumulation Units outstanding at end of period (in thousands) 319 175 54 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.774 $1.480 $1.417 Accumulation Unit Value at end of period $1.798 $1.774 $1.480 Number of Accumulation Units outstanding at end of period (in thousands) 16 13 8 STI CLASSIC VT MID-CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.818 $1.664 $1.453 Accumulation Unit Value at end of period $1.886 $1.818 $1.664 Number of Accumulation Units outstanding at end of period (in thousands) 7 5 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.770 $1.633 $1.433 Accumulation Unit Value at end of period $1.822 $1.770 $1.633 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- EVERGREEN VA BALANCED FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.050 $0.968 $0.908 Accumulation Unit Value at end of period $1.105 $1.050 $0.968 Number of Accumulation Units outstanding at end of period (in thousands) 48 29 5 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.994 $0.924 $0.871 Accumulation Unit Value at end of period $1.038 $0.994 $0.924 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.364 $1.227 $1.119 Accumulation Unit Value at end of period $1.457 $1.364 $1.227 Number of Accumulation Units outstanding at end of period (in thousands) 22 32 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.330 $1.206 $1.105 Accumulation Unit Value at end of period $1.409 $1.330 $1.206 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- EVERGREEN VA GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.436 $1.310 $1.125 Accumulation Unit Value at end of period $1.573 $1.436 $1.310 Number of Accumulation Units outstanding at end of period (in thousands) 254 150 39 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.994 $0.914 $0.789 Accumulation Unit Value at end of period $1.080 $0.994 $0.914 Number of Accumulation Units outstanding at end of period (in thousands) 11 16 8 EVERGREEN VA INTERNATIONAL EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.003 $1.649 $1.414 Accumulation Unit Value at end of period $2.273 $2.003 $1.649 Number of Accumulation Units outstanding at end of period (in thousands) 175 116 16 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.189 $0.987 $0.851 Accumulation Unit Value at end of period $1.339 $1.189 $0.987 Number of Accumulation Units outstanding at end of period (in thousands) 8 5 6
APP II-25 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- EVERGREEN VA OMEGA FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $0.851 $0.813 $0.721 Accumulation Unit Value at end of period $0.939 $0.851 $0.813 Number of Accumulation Units outstanding at end of period (in thousands) 128 27 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.635 $0.612 $0.546 Accumulation Unit Value at end of period $0.696 $0.635 $0.612 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- EVERGREEN VA SPECIAL VALUES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.140 $1.785 $1.555 Accumulation Unit Value at end of period $1.953 $2.140 $1.785 Number of Accumulation Units outstanding at end of period (in thousands) 1,649 1,123 260 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.597 $1.342 $1.175 Accumulation Unit Value at end of period $1.445 $1.597 $1.342 Number of Accumulation Units outstanding at end of period (in thousands) 87 89 77 HUNTINGTON VA DIVIDEND CAPTURE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.596 $1.387 $1.331 Accumulation Unit Value at end of period $1.478 $1.596 $1.387 Number of Accumulation Units outstanding at end of period (in thousands) 1,248 398 76 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.562 $1.369 $1.321 Accumulation Unit Value at end of period $1.435 $1.562 $1.369 Number of Accumulation Units outstanding at end of period (in thousands) 142 1 -- HUNTINGTON VA GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $0.905 $0.851 $0.821 Accumulation Unit Value at end of period $1.024 $0.905 $0.851 Number of Accumulation Units outstanding at end of period (in thousands) 837 134 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.251 $1.186 $1.151 Accumulation Unit Value at end of period $1.405 $1.251 $1.186 Number of Accumulation Units outstanding at end of period (in thousands) 25 7 -- HUNTINGTON VA INCOME EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.378 $1.240 $1.200 Accumulation Unit Value at end of period $1.372 $1.378 $1.240 Number of Accumulation Units outstanding at end of period (in thousands) 588 172 16 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.456 $1.321 $1.284 Accumulation Unit Value at end of period $1.438 $1.456 $1.321 Number of Accumulation Units outstanding at end of period (in thousands) 19 4 -- HUNTINGTON VA INTERNATIONAL EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.430 $11.630 $10.097 Accumulation Unit Value at end of period $16.198 $14.430 $11.630 Number of Accumulation Units outstanding at end of period (in thousands) 102 38 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.249 $11.576 $10.089 Accumulation Unit Value at end of period $15.867 $14.249 $11.576 Number of Accumulation Units outstanding at end of period (in thousands) 14 -- --
APP II-26 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- HUNTINGTON VA MACRO 100 FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.156 $1.092 $0.958 Accumulation Unit Value at end of period $1.108 $1.156 $1.092 Number of Accumulation Units outstanding at end of period (in thousands) 578 267 38 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.133 $1.079 $0.951 Accumulation Unit Value at end of period $1.078 $1.133 $1.079 Number of Accumulation Units outstanding at end of period (in thousands) 20 1 -- HUNTINGTON VA MID CORP AMERICA FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.660 $1.569 $1.374 Accumulation Unit Value at end of period $1.781 $1.660 $1.569 Number of Accumulation Units outstanding at end of period (in thousands) 601 302 54 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.702 $1.621 $1.427 Accumulation Unit Value at end of period $1.811 $1.702 $1.621 Number of Accumulation Units outstanding at end of period (in thousands) 90 35 -- HUNTINGTON VA MORTGAGE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.455 $10.007 $10.034 Accumulation Unit Value at end of period $10.720 $10.455 $10.007 Number of Accumulation Units outstanding at end of period (in thousands) 91 28 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.323 $9.961 $10.026 Accumulation Unit Value at end of period $10.500 $10.323 $9.961 Number of Accumulation Units outstanding at end of period (in thousands) 5 3 -- HUNTINGTON VA NEW ECONOMY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.716 $1.577 $1.360 Accumulation Unit Value at end of period $1.905 $1.716 $1.577 Number of Accumulation Units outstanding at end of period (in thousands) 829 370 58 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.787 $1.656 $1.436 Accumulation Unit Value at end of period $1.968 $1.787 $1.656 Number of Accumulation Units outstanding at end of period (in thousands) 7 33 -- HUNTINGTON VA ROTATING MARKETS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.510 $1.279 $1.129 Accumulation Unit Value at end of period $1.625 $1.510 $1.279 Number of Accumulation Units outstanding at end of period (in thousands) 286 85 5 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.727 $1.475 $1.308 Accumulation Unit Value at end of period $1.844 $1.727 $1.475 Number of Accumulation Units outstanding at end of period (in thousands) 61 35 -- HUNTINGTON VA SITUS SMALL CAP FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.349 $1.304 $1.086 Accumulation Unit Value at end of period $1.482 $1.349 $1.304 Number of Accumulation Units outstanding at end of period (in thousands) 867 427 40 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.322 $1.289 $1.079 Accumulation Unit Value at end of period $1.441 $1.322 $1.289 Number of Accumulation Units outstanding at end of period (in thousands) 110 44 --
(a) Inception date November 12, 2007. APP II-27 ------------------------------------------------------------------------------- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY: SERIES II/IIR
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- AIM V.I. BASIC VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.515 $1.357 $1.301 $1.187 $1.017 Accumulation Unit Value at end of period $1.518 $1.515 $1.357 $1.301 $1.187 Number of Accumulation Units outstanding at end of period (in thousands) 6,608 6,195 4,992 4,739 1,547 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.453 $1.312 $1.268 $1.181 -- Accumulation Unit Value at end of period $1.444 $1.453 $1.312 $1.268 -- Number of Accumulation Units outstanding at end of period (in thousands) 8,096 8,457 10,129 8,833 -- AIM V.I. CAPITAL APPRECIATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.419 $1.353 $1.260 $1.198 $1.022 Accumulation Unit Value at end of period $1.568 $1.419 $1.353 $1.260 $1.198 Number of Accumulation Units outstanding at end of period (in thousands) 2,809 2,651 789 630 268 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.361 $1.308 $1.228 $1.196 -- Accumulation Unit Value at end of period $1.492 $1.361 $1.308 $1.228 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,914 4,407 1,710 1,509 -- AIM V.I. CAPITAL DEVELOPMENT FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.553 -- -- -- -- (a) Accumulation Unit Value at end of period $9.789 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.542 -- -- -- -- (a) Accumulation Unit Value at end of period $9.767 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- AIM V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.863 $10.303 $9.632 -- -- Accumulation Unit Value at end of period $12.654 $11.863 $10.303 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2,217 2,337 10 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.690 $10.234 $9.618 -- -- Accumulation Unit Value at end of period $12.370 $11.690 $10.234 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2,511 2,770 4 -- -- AIM V.I. GOVERNMENT SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $1.095 $1.092 $1.079 $1.094 Accumulation Unit Value at end of period $1.174 $1.119 $1.095 $1.092 $1.079 Number of Accumulation Units outstanding at end of period (in thousands) 73,021 44,385 23,647 10,436 1,425 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.073 $1.059 $1.064 $1.064 -- Accumulation Unit Value at end of period $1.117 $1.073 $1.059 $1.064 -- Number of Accumulation Units outstanding at end of period (in thousands) 42,275 37,566 37,527 26,008 -- AIM V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.102 $1.662 $1.428 $1.167 $0.970 Accumulation Unit Value at end of period $2.379 $2.102 $1.662 $1.428 $1.167 Number of Accumulation Units outstanding at end of period (in thousands) 12,825 3,283 1,186 504 43 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.016 $1.607 $1.392 $1.181 -- Accumulation Unit Value at end of period $2.264 $2.016 $1.607 $1.392 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,062 2,836 2,195 1,002 --
APP II-28 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- AIM V.I. LARGE CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.474 $10.764 $9.456 -- -- Accumulation Unit Value at end of period $13.091 $11.474 $10.764 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 198 166 2 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.307 $10.692 $9.443 -- -- Accumulation Unit Value at end of period $12.797 $11.307 $10.692 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 266 210 7 -- -- AIM V.I. MID CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.663 $1.515 $1.427 $1.271 $1.111 Accumulation Unit Value at end of period $1.797 $1.663 $1.515 $1.427 $1.271 Number of Accumulation Units outstanding at end of period (in thousands) 11,271 8,186 6,356 3,972 1,441 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.595 $1.465 $1.391 $1.271 -- Accumulation Unit Value at end of period $1.710 $1.595 $1.465 $1.391 -- Number of Accumulation Units outstanding at end of period (in thousands) 9,600 9,932 11,800 8,936 -- AIM V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.394 $12.423 $11.647 $10.790 $10.288 Accumulation Unit Value at end of period $14.937 $14.394 $12.423 $11.647 $10.790 Number of Accumulation Units outstanding at end of period (in thousands) 837 358 102 42 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.029 $12.205 $11.535 $11.054 -- Accumulation Unit Value at end of period $14.443 $14.029 $12.205 $11.535 -- Number of Accumulation Units outstanding at end of period (in thousands) 326 267 235 190 -- AMERICAN FUNDS ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.608 $12.913 $11.993 $11.220 $10.120 Accumulation Unit Value at end of period $15.357 $14.608 $12.913 $11.993 $11.220 Number of Accumulation Units outstanding at end of period (in thousands) 8,860 6,835 5,027 3,097 808 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.820 $11.424 $10.694 $10.151 -- Accumulation Unit Value at end of period $13.369 $12.820 $11.424 $10.694 -- Number of Accumulation Units outstanding at end of period (in thousands) 5,087 4,899 4,926 3,923 -- AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.222 $1.055 $0.997 $0.921 $0.790 Accumulation Unit Value at end of period $1.230 $1.222 $1.055 $0.997 $0.921 Number of Accumulation Units outstanding at end of period (in thousands) 67,641 55,180 39,979 25,004 7,529 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.170 $1.018 $0.970 $0.919 -- Accumulation Unit Value at end of period $1.169 $1.170 $1.018 $0.970 -- Number of Accumulation Units outstanding at end of period (in thousands) 39,063 40,200 39,846 32,185 -- AMERICAN FUNDS BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.281 $13.530 $13.499 $12.943 $12.513 Accumulation Unit Value at end of period $14.558 $14.281 $13.530 $13.499 $12.943 Number of Accumulation Units outstanding at end of period (in thousands) 5,995 3,880 2,438 1,368 343 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.371 $12.769 $12.843 $12.500 -- Accumulation Unit Value at end of period $13.522 $13.371 $12.769 $12.843 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,400 3,215 3,197 2,523 --
APP II-29 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- AMERICAN FUNDS GLOBAL BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.207 $10.028 -- -- -- Accumulation Unit Value at end of period $10.999 $10.207 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 929 123 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.187 $10.021 -- -- -- Accumulation Unit Value at end of period $10.890 $10.187 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 308 48 -- -- -- AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.921 $9.990 -- -- -- Accumulation Unit Value at end of period $12.140 $10.921 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 7,322 2,278 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.856 $9.985 -- -- -- Accumulation Unit Value at end of period $11.972 $10.856 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,137 560 -- -- -- AMERICAN FUNDS GLOBAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.715 $13.227 $11.752 $10.496 $8.622 Accumulation Unit Value at end of period $17.807 $15.715 $13.227 $11.752 $10.496 Number of Accumulation Units outstanding at end of period (in thousands) 3,539 2,602 1,643 882 238 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.135 $12.841 $11.501 $10.499 -- Accumulation Unit Value at end of period $17.012 $15.135 $12.841 $11.501 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,573 1,456 1,321 924 -- AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.960 $16.308 $13.187 $11.057 $8.281 Accumulation Unit Value at end of period $23.912 $19.960 $16.308 $13.187 $11.057 Number of Accumulation Units outstanding at end of period (in thousands) 2,024 1,410 858 438 102 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.241 $16.671 $13.588 $11.953 -- Accumulation Unit Value at end of period $24.055 $20.241 $16.671 $13.588 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,344 1,225 1,308 773 -- AMERICAN FUNDS GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.955 $13.753 $11.997 $10.810 $9.337 Accumulation Unit Value at end of period $16.576 $14.955 $13.753 $11.997 $10.810 Number of Accumulation Units outstanding at end of period (in thousands) 21,794 14,681 8,675 4,937 1,622 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.770 $12.765 $11.225 $10.443 -- Accumulation Unit Value at end of period $15.142 $13.770 $12.765 $11.225 -- Number of Accumulation Units outstanding at end of period (in thousands) 12,822 13,143 13,600 10,695 -- AMERICAN FUNDS GROWTH-INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.692 $13.806 $13.223 $12.143 $10.422 Accumulation Unit Value at end of period $16.262 $15.692 $13.806 $13.223 $12.143 Number of Accumulation Units outstanding at end of period (in thousands) 22,677 15,912 9,763 5,476 1,524 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.352 $11.842 $11.432 $10.801 -- Accumulation Unit Value at end of period $13.727 $13.352 $11.842 $11.432 -- Number of Accumulation Units outstanding at end of period (in thousands) 14,288 14,895 15,290 11,516 --
APP II-30 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- AMERICAN FUNDS INTERNATIONAL FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.583 $13.275 $11.074 $9.407 $7.437 Accumulation Unit Value at end of period $18.452 $15.583 $13.275 $11.074 $9.407 Number of Accumulation Units outstanding at end of period (in thousands) 6,638 4,853 2,813 1,396 250 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.670 $13.457 $11.316 $9.882 -- Accumulation Unit Value at end of period $18.408 $15.670 $13.457 $11.316 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,243 3,210 3,129 2,231 -- AMERICAN FUNDS NEW WORLD FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.315 $17.823 $14.962 $12.766 $10.155 Accumulation Unit Value at end of period $30.412 $23.315 $17.823 $14.962 $12.766 Number of Accumulation Units outstanding at end of period (in thousands) 1,664 1,045 563 212 51 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $21.039 $16.212 $13.719 $11.966 -- Accumulation Unit Value at end of period $27.225 $21.039 $16.212 $13.719 -- Number of Accumulation Units outstanding at end of period (in thousands) 824 693 604 412 -- FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.878 $10.480 $9.408 -- -- Accumulation Unit Value at end of period $12.269 $10.878 $10.480 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 545 378 108 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.719 $10.411 $9.396 -- -- Accumulation Unit Value at end of period $11.994 $10.719 $10.411 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 62 50 32 -- -- FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.791 $13.537 $13.504 $12.022 $10.500 Accumulation Unit Value at end of period $16.165 $15.791 $13.537 $13.504 $12.022 Number of Accumulation Units outstanding at end of period (in thousands) 18,719 10,651 5,384 2,089 413 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.211 $13.144 $13.217 $12.007 -- Accumulation Unit Value at end of period $15.446 $15.211 $13.144 $13.217 -- Number of Accumulation Units outstanding at end of period (in thousands) 6,167 5,986 6,083 4,107 -- FRANKLIN LARGE CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.066 $11.029 $11.061 $10.388 $9.177 Accumulation Unit Value at end of period $12.646 $12.066 $11.029 $11.061 $10.388 Number of Accumulation Units outstanding at end of period (in thousands) 1,911 1,569 928 421 42 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.622 $10.708 $10.826 $10.430 -- Accumulation Unit Value at end of period $12.084 $11.622 $10.708 $10.826 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,362 1,472 1,481 939 -- FRANKLIN LARGE CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.824 $10.315 $9.708 -- -- Accumulation Unit Value at end of period $11.634 $11.824 $10.315 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 349 185 58 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.651 $10.246 $9.695 -- -- Accumulation Unit Value at end of period $11.374 $11.651 $10.246 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 99 29 11 -- --
APP II-31 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- FRANKLIN RISING DIVIDENDS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.628 $13.525 $13.254 $12.103 $10.476 Accumulation Unit Value at end of period $15.004 $15.628 $13.525 $13.254 $12.103 Number of Accumulation Units outstanding at end of period (in thousands) 9,602 5,616 2,468 1,108 199 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.176 $13.239 $13.078 $12.174 -- Accumulation Unit Value at end of period $14.454 $15.176 $13.239 $13.078 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,833 3,074 2,842 2,050 -- FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.254 -- -- -- -- (a) Accumulation Unit Value at end of period $9.253 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 7 -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.243 -- -- -- -- (a) Accumulation Unit Value at end of period $9.233 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.943 $12.070 $11.675 $10.616 $8.778 Accumulation Unit Value at end of period $14.205 $12.943 $12.070 $11.675 $10.616 Number of Accumulation Units outstanding at end of period (in thousands) 1,799 1,096 688 414 145 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.920 $12.145 $11.842 $11.202 -- Accumulation Unit Value at end of period $14.067 $12.920 $12.145 $11.842 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,053 896 979 838 -- FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.961 $14.910 $14.856 $13.687 $12.843 Accumulation Unit Value at end of period $16.724 $15.961 $14.910 $14.856 $13.687 Number of Accumulation Units outstanding at end of period (in thousands) 3,680 2,423 1,394 627 174 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.835 $13.970 $14.030 $13.157 -- Accumulation Unit Value at end of period $15.420 $14.835 $13.970 $14.030 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,826 1,827 1,845 1,249 -- HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.129 $1.093 $1.077 $1.081 $1.086 Accumulation Unit Value at end of period $1.169 $1.129 $1.093 $1.077 $1.081 Number of Accumulation Units outstanding at end of period (in thousands) 36,410 20,188 6,654 4,047 1,569 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $1.052 $1.045 $1.056 -- Accumulation Unit Value at end of period $1.107 $1.078 $1.052 $1.045 -- Number of Accumulation Units outstanding at end of period (in thousands) 28,706 15,931 11,174 10,273 -- MFS(R) CORE EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.139 $9.031 $9.002 $8.113 $7.184 Accumulation Unit Value at end of period $11.119 $10.139 $9.031 $9.002 $8.113 Number of Accumulation Units outstanding at end of period (in thousands) 51 61 65 63 37 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.072 $8.145 $8.184 $7.631 -- Accumulation Unit Value at end of period $9.869 $9.072 $8.145 $8.184 -- Number of Accumulation Units outstanding at end of period (in thousands) 91 72 77 75 --
APP II-32 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ MFS(R) EMERGING GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.679 $8.153 $7.568 $6.791 $6.037 Accumulation Unit Value at end of period $10.375 $8.679 $8.153 $7.568 $6.791 Number of Accumulation Units outstanding at end of period (in thousands) 247 153 81 63 18 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.179 $7.745 $7.248 $6.755 -- Accumulation Unit Value at end of period $9.700 $8.179 $7.745 $7.248 -- Number of Accumulation Units outstanding at end of period (in thousands) 261 189 189 168 -- MFS(R) GLOBAL EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.420 $13.378 $12.593 $10.792 $9.284 Accumulation Unit Value at end of period $17.689 $16.420 $13.378 $12.593 $10.792 Number of Accumulation Units outstanding at end of period (in thousands) 156 128 71 32 5 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.966 $12.292 $11.663 $10.243 -- Accumulation Unit Value at end of period $15.995 $14.966 $12.292 $11.663 -- Number of Accumulation Units outstanding at end of period (in thousands) 150 129 80 58 -- MFS(R) HIGH INCOME SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.282 $12.198 $12.102 $11.238 $10.338 Accumulation Unit Value at end of period $13.336 $13.282 $12.198 $12.102 $11.238 Number of Accumulation Units outstanding at end of period (in thousands) 740 617 473 331 131 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.321 $11.405 $11.407 $10.766 -- Accumulation Unit Value at end of period $12.272 $12.321 $11.405 $11.407 -- Number of Accumulation Units outstanding at end of period (in thousands) 597 612 569 514 -- MFS(R) INVESTORS GROWTH STOCK SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.871 $8.358 $8.108 $7.527 $6.906 Accumulation Unit Value at end of period $9.746 $8.871 $8.358 $8.108 $7.527 Number of Accumulation Units outstanding at end of period (in thousands) 268 216 169 117 73 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.086 $7.680 $7.510 $7.184 -- Accumulation Unit Value at end of period $8.813 $8.086 $7.680 $7.510 -- Number of Accumulation Units outstanding at end of period (in thousands) 196 211 229 188 -- MFS(R) INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.127 $9.981 $9.428 $8.581 $7.685 Accumulation Unit Value at end of period $12.109 $11.127 $9.981 $9.428 $8.581 Number of Accumulation Units outstanding at end of period (in thousands) 4,793 3,211 1,720 796 65 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.417 $8.516 $8.108 $7.521 -- Accumulation Unit Value at end of period $10.167 $9.417 $8.516 $8.108 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,026 3,137 3,168 2,074 -- MFS(R) MID CAP GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.126 $6.055 $5.952 $5.266 $4.500 Accumulation Unit Value at end of period $6.638 $6.126 $6.055 $5.952 $5.266 Number of Accumulation Units outstanding at end of period (in thousands) 881 691 746 426 162 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.832 $5.811 $5.758 $5.384 -- Accumulation Unit Value at end of period $6.269 $5.832 $5.811 $5.758 -- Number of Accumulation Units outstanding at end of period (in thousands) 935 985 1,061 861 --
APP II-33 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ MFS(R) NEW DISCOVERY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.233 $13.638 $13.135 $12.498 $10.467 Accumulation Unit Value at end of period $15.407 $15.233 $13.638 $13.135 $12.498 Number of Accumulation Units outstanding at end of period (in thousands) 2,453 1,776 759 370 54 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.379 $12.074 $11.722 $11.875 -- Accumulation Unit Value at end of period $13.424 $13.379 $12.074 $11.722 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,256 1,385 1,323 909 -- MFS(R) RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $10.040 $9.983 -- -- Accumulation Unit Value at end of period $10.596 $10.307 $10.040 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,186 456 62 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.158 $9.975 $9.971 -- -- Accumulation Unit Value at end of period $10.361 $10.158 $9.975 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 221 76 9 -- -- MFS(R) RESEARCH INTERNATIONAL SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.847 $11.985 $10.019 -- -- Accumulation Unit Value at end of period $16.527 $14.847 $11.985 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 506 118 25 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.650 $11.921 $10.018 -- -- Accumulation Unit Value at end of period $16.177 $14.650 $11.921 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 133 58 22 -- -- MFS(R) RESEARCH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.572 $10.617 $9.472 -- -- Accumulation Unit Value at end of period $12.925 $11.572 $10.617 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 368 140 48 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.403 $10.546 $9.459 -- -- Accumulation Unit Value at end of period $12.634 $11.403 $10.546 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 30 12 2 -- -- MFS(R) TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.523 $14.061 $13.861 $12.621 $11.713 Accumulation Unit Value at end of period $15.960 $15.523 $14.061 $13.861 $12.621 Number of Accumulation Units outstanding at end of period (in thousands) 9,927 6,316 3,478 1,549 357 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.773 $12.576 $12.497 $11.620 -- Accumulation Unit Value at end of period $14.048 $13.773 $12.576 $12.497 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,400 4,321 4,513 3,232 -- MFS(R) VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.453 $14.639 $13.912 $12.242 $10.607 Accumulation Unit Value at end of period $18.581 $17.453 $14.639 $13.912 $12.242 Number of Accumulation Units outstanding at end of period (in thousands) 1,861 949 383 135 43 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.948 $14.330 $13.727 $12.302 -- Accumulation Unit Value at end of period $17.899 $16.948 $14.330 $13.727 -- Number of Accumulation Units outstanding at end of period (in thousands) 601 499 404 284 --
APP II-34 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ MUTUAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $20.136 $16.585 $14.496 $12.431 $10.546 Accumulation Unit Value at end of period $22.220 $20.136 $16.585 $14.496 $12.431 Number of Accumulation Units outstanding at end of period (in thousands) 3,781 2,145 959 239 58 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.553 $16.235 $14.304 $12.521 -- Accumulation Unit Value at end of period $21.405 $19.553 $16.235 $14.304 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,293 1,194 1,167 453 -- MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.484 $16.683 $15.295 $13.764 $12.081 Accumulation Unit Value at end of period $19.892 $19.484 $16.683 $15.295 $13.764 Number of Accumulation Units outstanding at end of period (in thousands) 8,185 5,008 2,738 1,145 260 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.694 $14.408 $13.316 $12.204 -- Accumulation Unit Value at end of period $16.907 $16.694 $14.408 $13.316 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,197 4,035 4,064 2,935 -- TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.737 $18.733 $14.862 $12.067 $8.935 Accumulation Unit Value at end of period $30.230 $23.737 $18.733 $14.862 $12.067 Number of Accumulation Units outstanding at end of period (in thousands) 817 608 418 219 48 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.618 $15.607 $12.481 $10.512 -- Accumulation Unit Value at end of period $24.786 $19.618 $15.607 $12.481 -- Number of Accumulation Units outstanding at end of period (in thousands) 640 617 668 233 -- TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.502 $12.104 $11.136 $9.523 $7.775 Accumulation Unit Value at end of period $16.519 $14.502 $12.104 $11.136 $9.523 Number of Accumulation Units outstanding at end of period (in thousands) 4,579 3,897 2,501 1,328 105 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.261 $11.157 $10.347 $9.107 -- Accumulation Unit Value at end of period $14.985 $13.261 $11.157 $10.347 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,301 3,665 3,865 2,813 -- TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.068 $14.202 $13.223 $11.552 $9.590 Accumulation Unit Value at end of period $17.234 $17.068 $14.202 $13.223 $11.552 Number of Accumulation Units outstanding at end of period (in thousands) 6,181 3,876 2,176 849 167 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.227 $12.772 $11.987 $10.763 -- Accumulation Unit Value at end of period $15.252 $15.227 $12.772 $11.987 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,847 3,021 3,014 1,923 --
APP II-35 ------------------------------------------------------------------------------- SERIES III
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- AIM V.I. BASIC VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.515 $1.357 $1.247 Accumulation Unit Value at end of period $1.518 $1.515 $1.357 Number of Accumulation Units outstanding at end of period (in thousands) 6,608 6,195 4,992 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.453 $1.312 $1.212 Accumulation Unit Value at end of period $1.444 $1.453 $1.312 Number of Accumulation Units outstanding at end of period (in thousands) 8,096 8,457 10,129 AIM V.I. CAPITAL APPRECIATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.419 $1.353 $1.175 Accumulation Unit Value at end of period $1.568 $1.419 $1.353 Number of Accumulation Units outstanding at end of period (in thousands) 2,809 2,651 789 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.361 $1.308 $1.142 Accumulation Unit Value at end of period $1.492 $1.361 $1.308 Number of Accumulation Units outstanding at end of period (in thousands) 3,914 4,407 1,710 AIM V.I. CAPITAL DEVELOPMENT FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.553 -- -- (a) Accumulation Unit Value at end of period $9.789 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.542 -- -- (a) Accumulation Unit Value at end of period $9.767 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- AIM V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.863 $10.303 $9.632 Accumulation Unit Value at end of period $12.654 $11.863 $10.303 Number of Accumulation Units outstanding at end of period (in thousands) 2,217 2,337 10 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.690 $10.234 $9.618 Accumulation Unit Value at end of period $12.370 $11.690 $10.234 Number of Accumulation Units outstanding at end of period (in thousands) 2,511 2,770 4 AIM V.I. GOVERNMENT SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $1.095 $1.092 Accumulation Unit Value at end of period $1.174 $1.119 $1.095 Number of Accumulation Units outstanding at end of period (in thousands) 73,021 44,385 23,647 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.073 $1.059 $1.062 Accumulation Unit Value at end of period $1.117 $1.073 $1.059 Number of Accumulation Units outstanding at end of period (in thousands) 42,275 37,566 37,527 AIM V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.102 $1.662 $1.397 Accumulation Unit Value at end of period $2.379 $2.102 $1.662 Number of Accumulation Units outstanding at end of period (in thousands) 12,825 3,283 1,186 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.016 $1.607 $1.358 Accumulation Unit Value at end of period $2.264 $2.016 $1.607 Number of Accumulation Units outstanding at end of period (in thousands) 4,062 2,836 2,195
APP II-36 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- AIM V.I. LARGE CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.474 $10.764 $9.456 Accumulation Unit Value at end of period $13.091 $11.474 $10.764 Number of Accumulation Units outstanding at end of period (in thousands) 198 166 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.307 $10.692 $9.443 Accumulation Unit Value at end of period $12.797 $11.307 $10.692 Number of Accumulation Units outstanding at end of period (in thousands) 266 210 7 AIM V.I. MID CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.663 $1.515 $1.395 Accumulation Unit Value at end of period $1.797 $1.663 $1.515 Number of Accumulation Units outstanding at end of period (in thousands) 11,271 8,186 6,356 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.595 $1.465 $1.356 Accumulation Unit Value at end of period $1.710 $1.595 $1.465 Number of Accumulation Units outstanding at end of period (in thousands) 9,600 9,932 11,800 AIM V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.394 $12.423 $10.812 Accumulation Unit Value at end of period $14.937 $14.394 $12.423 Number of Accumulation Units outstanding at end of period (in thousands) 837 358 102 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.029 $12.205 $10.679 Accumulation Unit Value at end of period $14.443 $14.029 $12.205 Number of Accumulation Units outstanding at end of period (in thousands) 326 267 235 AMERICAN FUNDS ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.608 $12.913 $11.768 Accumulation Unit Value at end of period $15.357 $14.608 $12.913 Number of Accumulation Units outstanding at end of period (in thousands) 8,860 6,835 5,027 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.820 $11.424 $10.466 Accumulation Unit Value at end of period $13.369 $12.820 $11.424 Number of Accumulation Units outstanding at end of period (in thousands) 5,087 4,899 4,926 AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.222 $1.055 $0.956 Accumulation Unit Value at end of period $1.230 $1.222 $1.055 Number of Accumulation Units outstanding at end of period (in thousands) 67,641 55,180 39,979 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.170 $1.018 $0.927 Accumulation Unit Value at end of period $1.169 $1.170 $1.018 Number of Accumulation Units outstanding at end of period (in thousands) 39,063 40,200 39,846 AMERICAN FUNDS BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.281 $13.530 $13.310 Accumulation Unit Value at end of period $14.558 $14.281 $13.530 Number of Accumulation Units outstanding at end of period (in thousands) 5,995 3,880 2,438 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.371 $12.769 $12.629 Accumulation Unit Value at end of period $13.522 $13.371 $12.769 Number of Accumulation Units outstanding at end of period (in thousands) 3,400 3,215 3,197
APP II-37 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- AMERICAN FUNDS GLOBAL BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.207 $10.028 -- Accumulation Unit Value at end of period $10.999 $10.207 -- Number of Accumulation Units outstanding at end of period (in thousands) 929 123 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.187 $10.021 -- Accumulation Unit Value at end of period $10.890 $10.187 -- Number of Accumulation Units outstanding at end of period (in thousands) 308 48 -- AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.921 $9.990 -- Accumulation Unit Value at end of period $12.140 $10.921 -- Number of Accumulation Units outstanding at end of period (in thousands) 7,322 2,278 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.856 $9.985 -- Accumulation Unit Value at end of period $11.972 $10.856 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,137 560 -- AMERICAN FUNDS GLOBAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.715 $13.227 $11.285 Accumulation Unit Value at end of period $17.807 $15.715 $13.227 Number of Accumulation Units outstanding at end of period (in thousands) 3,539 2,602 1,643 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.135 $12.841 $11.014 Accumulation Unit Value at end of period $17.012 $15.135 $12.841 Number of Accumulation Units outstanding at end of period (in thousands) 1,573 1,456 1,321 AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.960 $16.308 $13.174 Accumulation Unit Value at end of period $23.912 $19.960 $16.308 Number of Accumulation Units outstanding at end of period (in thousands) 2,024 1,410 858 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.241 $16.671 $13.538 Accumulation Unit Value at end of period $24.055 $20.241 $16.671 Number of Accumulation Units outstanding at end of period (in thousands) 1,344 1,225 1,308 AMERICAN FUNDS GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.955 $13.753 $11.567 Accumulation Unit Value at end of period $16.576 $14.955 $13.753 Number of Accumulation Units outstanding at end of period (in thousands) 21,794 14,681 8,675 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.770 $12.765 $10.794 Accumulation Unit Value at end of period $15.142 $13.770 $12.765 Number of Accumulation Units outstanding at end of period (in thousands) 12,822 13,143 13,600 AMERICAN FUNDS GROWTH-INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.692 $13.806 $12.649 Accumulation Unit Value at end of period $16.262 $15.692 $13.806 Number of Accumulation Units outstanding at end of period (in thousands) 22,677 15,912 9,763 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.352 $11.842 $10.908 Accumulation Unit Value at end of period $13.727 $13.352 $11.842 Number of Accumulation Units outstanding at end of period (in thousands) 14,288 14,895 15,290
APP II-38 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- AMERICAN FUNDS INTERNATIONAL FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.583 $13.275 $10.766 Accumulation Unit Value at end of period $18.452 $15.583 $13.275 Number of Accumulation Units outstanding at end of period (in thousands) 6,638 4,853 2,813 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.670 $13.457 $10.971 Accumulation Unit Value at end of period $18.408 $15.670 $13.457 Number of Accumulation Units outstanding at end of period (in thousands) 3,243 3,210 3,129 AMERICAN FUNDS NEW WORLD FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.315 $17.823 $14.766 Accumulation Unit Value at end of period $30.412 $23.315 $17.823 Number of Accumulation Units outstanding at end of period (in thousands) 1,664 1,045 563 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $21.039 $16.212 $13.503 Accumulation Unit Value at end of period $27.225 $21.039 $16.212 Number of Accumulation Units outstanding at end of period (in thousands) 824 693 604 FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.878 $10.480 $9.408 Accumulation Unit Value at end of period $12.269 $10.878 $10.480 Number of Accumulation Units outstanding at end of period (in thousands) 545 378 108 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.719 $10.411 $9.396 Accumulation Unit Value at end of period $11.994 $10.719 $10.411 Number of Accumulation Units outstanding at end of period (in thousands) 62 50 32 FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.791 $13.537 $13.057 Accumulation Unit Value at end of period $16.165 $15.791 $13.537 Number of Accumulation Units outstanding at end of period (in thousands) 18,719 10,651 5,384 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.211 $13.144 $12.746 Accumulation Unit Value at end of period $15.446 $15.211 $13.144 Number of Accumulation Units outstanding at end of period (in thousands) 6,167 5,986 6,083 FRANKLIN LARGE CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.066 $11.029 $10.613 Accumulation Unit Value at end of period $12.646 $12.066 $11.029 Number of Accumulation Units outstanding at end of period (in thousands) 1,911 1,569 928 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.622 $10.708 $10.359 Accumulation Unit Value at end of period $12.084 $11.622 $10.708 Number of Accumulation Units outstanding at end of period (in thousands) 1,362 1,472 1,481 FRANKLIN LARGE CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.824 $10.315 $9.708 Accumulation Unit Value at end of period $11.634 $11.824 $10.315 Number of Accumulation Units outstanding at end of period (in thousands) 349 185 58 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.651 $10.246 $9.695 Accumulation Unit Value at end of period $11.374 $11.651 $10.246 Number of Accumulation Units outstanding at end of period (in thousands) 99 29 11
APP II-39 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- FRANKLIN RISING DIVIDENDS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.628 $13.525 $12.810 Accumulation Unit Value at end of period $15.004 $15.628 $13.525 Number of Accumulation Units outstanding at end of period (in thousands) 9,602 5,616 2,468 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.176 $13.239 $12.607 Accumulation Unit Value at end of period $14.454 $15.176 $13.239 Number of Accumulation Units outstanding at end of period (in thousands) 2,833 3,074 2,842 FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.254 -- -- (a) Accumulation Unit Value at end of period $9.253 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 7 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.243 -- -- (a) Accumulation Unit Value at end of period $9.233 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.943 $12.070 $10.504 Accumulation Unit Value at end of period $14.205 $12.943 $12.070 Number of Accumulation Units outstanding at end of period (in thousands) 1,799 1,096 688 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.920 $12.145 $10.626 Accumulation Unit Value at end of period $14.067 $12.920 $12.145 Number of Accumulation Units outstanding at end of period (in thousands) 1,053 896 979 FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.961 $14.910 $14.583 Accumulation Unit Value at end of period $16.724 $15.961 $14.910 Number of Accumulation Units outstanding at end of period (in thousands) 3,680 2,423 1,394 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.835 $13.970 $13.736 Accumulation Unit Value at end of period $15.420 $14.835 $13.970 Number of Accumulation Units outstanding at end of period (in thousands) 1,826 1,827 1,845 HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.129 $1.093 $1.080 Accumulation Unit Value at end of period $1.169 $1.129 $1.093 Number of Accumulation Units outstanding at end of period (in thousands) 36,410 20,188 6,654 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $1.052 $1.045 Accumulation Unit Value at end of period $1.107 $1.078 $1.052 Number of Accumulation Units outstanding at end of period (in thousands) 28,706 15,931 11,174 MFS(R) EMERGING GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.679 $8.153 $6.894 Accumulation Unit Value at end of period $10.375 $8.679 $8.153 Number of Accumulation Units outstanding at end of period (in thousands) 247 153 81 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.179 $7.745 $6.584 Accumulation Unit Value at end of period $9.700 $8.179 $7.745 Number of Accumulation Units outstanding at end of period (in thousands) 261 189 189
APP II-40 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- MFS(R) GLOBAL EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.420 $13.378 $12.168 Accumulation Unit Value at end of period $17.689 $16.420 $13.378 Number of Accumulation Units outstanding at end of period (in thousands) 156 128 71 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.966 $12.292 $11.239 Accumulation Unit Value at end of period $15.995 $14.966 $12.292 Number of Accumulation Units outstanding at end of period (in thousands) 150 129 80 MFS(R) HIGH INCOME SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.282 $12.198 $11.734 Accumulation Unit Value at end of period $13.336 $13.282 $12.198 Number of Accumulation Units outstanding at end of period (in thousands) 740 617 473 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.321 $11.405 $11.030 Accumulation Unit Value at end of period $12.272 $12.321 $11.405 Number of Accumulation Units outstanding at end of period (in thousands) 597 612 569 MFS(R) INVESTORS GROWTH STOCK SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.871 $8.358 $7.590 Accumulation Unit Value at end of period $9.746 $8.871 $8.358 Number of Accumulation Units outstanding at end of period (in thousands) 268 216 169 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.086 $7.680 $7.011 Accumulation Unit Value at end of period $8.813 $8.086 $7.680 Number of Accumulation Units outstanding at end of period (in thousands) 196 211 229 MFS(R) INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.127 $9.981 $9.053 Accumulation Unit Value at end of period $12.109 $11.127 $9.981 Number of Accumulation Units outstanding at end of period (in thousands) 4,793 3,211 1,720 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.417 $8.516 $7.765 Accumulation Unit Value at end of period $10.167 $9.417 $8.516 Number of Accumulation Units outstanding at end of period (in thousands) 3,026 3,137 3,168 MFS(R) MID CAP GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.126 $6.055 $5.306 Accumulation Unit Value at end of period $6.638 $6.126 $6.055 Number of Accumulation Units outstanding at end of period (in thousands) 881 691 746 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.832 $5.811 $5.120 Accumulation Unit Value at end of period $6.269 $5.832 $5.811 Number of Accumulation Units outstanding at end of period (in thousands) 935 985 1,061 MFS(R) NEW DISCOVERY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.233 $13.638 $11.343 Accumulation Unit Value at end of period $15.407 $15.233 $13.638 Number of Accumulation Units outstanding at end of period (in thousands) 2,453 1,776 759 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.379 $12.074 $10.096 Accumulation Unit Value at end of period $13.424 $13.379 $12.074 Number of Accumulation Units outstanding at end of period (in thousands) 1,256 1,385 1,323
APP II-41 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- MFS(R) RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $10.040 $9.983 Accumulation Unit Value at end of period $10.596 $10.307 $10.040 Number of Accumulation Units outstanding at end of period (in thousands) 1,186 456 62 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.158 $9.975 $9.971 Accumulation Unit Value at end of period $10.361 $10.158 $9.975 Number of Accumulation Units outstanding at end of period (in thousands) 221 76 9 MFS(R) RESEARCH INTERNATIONAL SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.847 $11.985 $10.019 Accumulation Unit Value at end of period $16.527 $14.847 $11.985 Number of Accumulation Units outstanding at end of period (in thousands) 506 118 25 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.650 $11.921 $10.018 Accumulation Unit Value at end of period $16.177 $14.650 $11.921 Number of Accumulation Units outstanding at end of period (in thousands) 133 58 22 MFS(R) RESEARCH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.572 $10.617 $9.472 Accumulation Unit Value at end of period $12.925 $11.572 $10.617 Number of Accumulation Units outstanding at end of period (in thousands) 368 140 48 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.403 $10.546 $9.459 Accumulation Unit Value at end of period $12.634 $11.403 $10.546 Number of Accumulation Units outstanding at end of period (in thousands) 30 12 2 MFS(R) TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.523 $14.061 $13.598 Accumulation Unit Value at end of period $15.960 $15.523 $14.061 Number of Accumulation Units outstanding at end of period (in thousands) 9,927 6,316 3,478 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.773 $12.576 $12.227 Accumulation Unit Value at end of period $14.048 $13.773 $12.576 Number of Accumulation Units outstanding at end of period (in thousands) 4,400 4,321 4,513 MFS(R) VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.453 $14.639 $13.768 Accumulation Unit Value at end of period $18.581 $17.453 $14.639 Number of Accumulation Units outstanding at end of period (in thousands) 1,861 949 383 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.948 $14.330 $13.549 Accumulation Unit Value at end of period $17.899 $16.948 $14.330 Number of Accumulation Units outstanding at end of period (in thousands) 601 499 404 MUTUAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $20.136 $16.585 $14.600 Accumulation Unit Value at end of period $22.220 $20.136 $16.585 Number of Accumulation Units outstanding at end of period (in thousands) 3,781 2,145 959 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.553 $16.235 $14.367 Accumulation Unit Value at end of period $21.405 $19.553 $16.235 Number of Accumulation Units outstanding at end of period (in thousands) 1,293 1,194 1,167
APP II-42 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.484 $16.683 $15.153 Accumulation Unit Value at end of period $19.892 $19.484 $16.683 Number of Accumulation Units outstanding at end of period (in thousands) 8,185 5,008 2,738 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.694 $14.408 $13.157 Accumulation Unit Value at end of period $16.907 $16.694 $14.408 Number of Accumulation Units outstanding at end of period (in thousands) 4,197 4,035 4,064 TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.737 $18.733 $14.727 Accumulation Unit Value at end of period $30.230 $23.737 $18.733 Number of Accumulation Units outstanding at end of period (in thousands) 817 608 418 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.618 $15.607 $12.335 Accumulation Unit Value at end of period $24.786 $19.618 $15.607 Number of Accumulation Units outstanding at end of period (in thousands) 640 617 668 TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.502 $12.104 $10.823 Accumulation Unit Value at end of period $16.519 $14.502 $12.104 Number of Accumulation Units outstanding at end of period (in thousands) 4,579 3,897 2,501 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.261 $11.157 $10.030 Accumulation Unit Value at end of period $14.985 $13.261 $11.157 Number of Accumulation Units outstanding at end of period (in thousands) 3,301 3,665 3,865 TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.068 $14.202 $12.979 Accumulation Unit Value at end of period $17.234 $17.068 $14.202 Number of Accumulation Units outstanding at end of period (in thousands) 6,181 3,876 2,176 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.227 $12.772 $11.734 Accumulation Unit Value at end of period $15.252 $15.227 $12.772 Number of Accumulation Units outstanding at end of period (in thousands) 2,847 3,021 3,014
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.320 $1.193 $1.152 $1.068 $0.994 Accumulation Unit Value at end of period $1.401 $1.320 $1.193 $1.152 $1.068 Number of Accumulation Units outstanding at end of period (in thousands) 79 84 54 57 34 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.271 $1.158 $1.127 $1.070 -- Accumulation Unit Value at end of period $1.338 $1.271 $1.158 $1.127 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WELLS FARGO ADVANTAGE VT C&B LARGE CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.323 $1.098 $1.079 $0.984 $0.892 Accumulation Unit Value at end of period $1.290 $1.323 $1.098 $1.079 $0.984 Number of Accumulation Units outstanding at end of period (in thousands) 112 15 3 3 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.274 $1.066 $1.056 $0.985 -- Accumulation Unit Value at end of period $1.232 $1.274 $1.066 $1.056 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- --
APP II-43 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT DISCOVERY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.731 $11.256 $10.524 -- -- Accumulation Unit Value at end of period $15.364 $12.731 $11.256 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 6 2 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.570 $11.203 $10.516 -- -- Accumulation Unit Value at end of period $15.050 $12.570 $11.203 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WELLS FARGO ADVANTAGE VT EQUITY INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.405 $1.201 $1.155 $1.054 $0.957 Accumulation Unit Value at end of period $1.425 $1.405 $1.201 $1.155 $1.054 Number of Accumulation Units outstanding at end of period (in thousands) 388 201 94 42 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.353 $1.166 $1.130 $1.055 -- Accumulation Unit Value at end of period $1.361 $1.353 $1.166 $1.130 -- Number of Accumulation Units outstanding at end of period (in thousands) 17 6 18 -- -- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.451 $1.217 $1.125 $1.040 $0.904 Accumulation Unit Value at end of period $1.613 $1.451 $1.217 $1.125 $1.040 Number of Accumulation Units outstanding at end of period (in thousands) 355 215 112 50 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.397 $1.182 $1.101 $1.025 -- Accumulation Unit Value at end of period $1.541 $1.397 $1.182 $1.101 -- Number of Accumulation Units outstanding at end of period (in thousands) 7 7 19 -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $0.981 $1.017 $0.951 $0.892 Accumulation Unit Value at end of period $1.130 $1.119 $0.981 $1.017 $0.951 Number of Accumulation Units outstanding at end of period (in thousands) 34 31 15 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $0.952 $0.995 $0.950 -- Accumulation Unit Value at end of period $1.079 $1.078 $0.952 $0.995 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.069 $1.059 $1.016 $0.997 $0.958 Accumulation Unit Value at end of period $1.135 $1.069 $1.059 $1.016 $0.997 Number of Accumulation Units outstanding at end of period (in thousands) 315 218 142 104 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.030 $1.028 $0.994 $0.993 -- Accumulation Unit Value at end of period $1.085 $1.030 $1.028 $0.994 -- Number of Accumulation Units outstanding at end of period (in thousands) 7 7 17 -- -- WELLS FARGO ADVANTAGE VT MONEY MARKET FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.026 $0.996 $0.984 $0.991 $0.994 Accumulation Unit Value at end of period $1.059 $1.026 $0.996 $0.984 $0.991 Number of Accumulation Units outstanding at end of period (in thousands) 212 41 40 7 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.988 $0.967 $0.963 $0.976 -- Accumulation Unit Value at end of period $1.012 $0.988 $0.967 $0.963 -- Number of Accumulation Units outstanding at end of period (in thousands) -- 21 24 16 --
APP II-44 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.016 $10.853 $10.330 -- -- Accumulation Unit Value at end of period $12.642 $12.016 $10.853 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1 -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.865 $10.803 $10.322 -- -- Accumulation Unit Value at end of period $12.383 $11.865 $10.803 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.407 $1.162 $1.108 $0.987 $0.913 Accumulation Unit Value at end of period $1.580 $1.407 $1.162 $1.108 $0.987 Number of Accumulation Units outstanding at end of period (in thousands) 387 198 128 74 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.355 $1.128 $1.084 $1.027 -- Accumulation Unit Value at end of period $1.509 $1.355 $1.128 $1.084 -- Number of Accumulation Units outstanding at end of period (in thousands) 16 18 25 -- -- WELLS FARGO ADVANTAGE VT SMALL/MID CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.815 $12.100 $10.825 -- -- Accumulation Unit Value at end of period $13.536 $13.815 $12.100 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 4 -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.641 $12.044 $10.817 -- -- Accumulation Unit Value at end of period $13.259 $13.641 $12.044 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WELLS FARGO ADVANTAGE VT TOTAL RETURN BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.186 $1.158 $1.151 $1.118 $1.097 Accumulation Unit Value at end of period $1.243 $1.186 $1.158 $1.151 $1.118 Number of Accumulation Units outstanding at end of period (in thousands) 514 213 152 110 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.142 $1.124 $1.127 $1.110 -- Accumulation Unit Value at end of period $1.187 $1.142 $1.124 $1.127 -- Number of Accumulation Units outstanding at end of period (in thousands) 210 135 101 -- --
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.320 $1.193 $1.122 Accumulation Unit Value at end of period $1.401 $1.320 $1.193 Number of Accumulation Units outstanding at end of period (in thousands) 79 84 54 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.271 $1.158 $1.095 Accumulation Unit Value at end of period $1.338 $1.271 $1.158 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT C&B LARGE CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.323 $1.098 $1.063 Accumulation Unit Value at end of period $1.290 $1.323 $1.098 Number of Accumulation Units outstanding at end of period (in thousands) 112 15 3 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.274 $1.066 $1.038 Accumulation Unit Value at end of period $1.232 $1.274 $1.066 Number of Accumulation Units outstanding at end of period (in thousands) -- -- --
APP II-45 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT DISCOVERY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.731 $11.256 $10.524 Accumulation Unit Value at end of period $15.364 $12.731 $11.256 Number of Accumulation Units outstanding at end of period (in thousands) 6 2 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.570 $11.203 $10.516 Accumulation Unit Value at end of period $15.050 $12.570 $11.203 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT EQUITY INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.405 $1.201 $1.140 Accumulation Unit Value at end of period $1.425 $1.405 $1.201 Number of Accumulation Units outstanding at end of period (in thousands) 388 201 94 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.353 $1.166 $1.113 Accumulation Unit Value at end of period $1.361 $1.353 $1.166 Number of Accumulation Units outstanding at end of period (in thousands) 17 6 18 WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.451 $1.217 $1.093 Accumulation Unit Value at end of period $1.613 $1.451 $1.217 Number of Accumulation Units outstanding at end of period (in thousands) 355 215 112 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.397 $1.182 $1.066 Accumulation Unit Value at end of period $1.541 $1.397 $1.182 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 19 WELLS FARGO ADVANTAGE VT LARGE COMPANY CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $0.981 $0.949 Accumulation Unit Value at end of period $1.130 $1.119 $0.981 Number of Accumulation Units outstanding at end of period (in thousands) 34 31 15 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $0.952 $0.926 Accumulation Unit Value at end of period $1.079 $1.078 $0.952 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.069 $1.059 $0.911 Accumulation Unit Value at end of period $1.135 $1.069 $1.059 Number of Accumulation Units outstanding at end of period (in thousands) 315 218 142 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.030 $1.028 $0.889 Accumulation Unit Value at end of period $1.085 $1.030 $1.028 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 17 WELLS FARGO ADVANTAGE VT MONEY MARKET FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.026 $0.996 $0.986 Accumulation Unit Value at end of period $1.059 $1.026 $0.996 Number of Accumulation Units outstanding at end of period (in thousands) 212 41 40 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.988 $0.967 $0.962 Accumulation Unit Value at end of period $1.012 $0.988 $0.967 Number of Accumulation Units outstanding at end of period (in thousands) -- 21 24
APP II-46 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.016 $10.853 $10.330 Accumulation Unit Value at end of period $12.642 $12.016 $10.853 Number of Accumulation Units outstanding at end of period (in thousands) 1 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.865 $10.803 $10.322 Accumulation Unit Value at end of period $12.383 $11.865 $10.803 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.407 $1.162 $0.970 Accumulation Unit Value at end of period $1.580 $1.407 $1.162 Number of Accumulation Units outstanding at end of period (in thousands) 387 198 128 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.355 $1.128 $0.946 Accumulation Unit Value at end of period $1.509 $1.355 $1.128 Number of Accumulation Units outstanding at end of period (in thousands) 16 18 25 WELLS FARGO ADVANTAGE VT SMALL/MID CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.815 $12.100 $10.825 Accumulation Unit Value at end of period $13.536 $13.815 $12.100 Number of Accumulation Units outstanding at end of period (in thousands) 4 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.641 $12.044 $10.817 Accumulation Unit Value at end of period $13.259 $13.641 $12.044 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT TOTAL RETURN BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.186 $1.158 $1.154 Accumulation Unit Value at end of period $1.243 $1.186 $1.158 Number of Accumulation Units outstanding at end of period (in thousands) 514 213 152 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.142 $1.124 $1.126 Accumulation Unit Value at end of period $1.187 $1.142 $1.124 Number of Accumulation Units outstanding at end of period (in thousands) 210 135 101
(a) Inception date November 12, 2007. APP A-1 -------------------------------------------------------------------------------- APPENDIX A -- PRODUCT COMPARISON INFORMATION In addition to the variable annuity Contract described in this prospectus, we offer other deferred individual variable annuities, each having different sales charges (if any), fees and investment options. The primary differences between the "Director M" and "Leaders" suites of variable annuities we currently offer generally relate to the investment options offered and mortality expense risk charges. We offer three contract variations that have a contingent deferred sales charge (these forms of contract are called "Outlook", "Plus" and our base contract (which does not have a separate marketing name, but is sometimes referred to in this prospectus as the "Core" version)), one contract version has a front end sales charge (called "Edge") and one contract version has no sales charge (called "Access"). We have not included information regarding our Edge Contract because it is offered through a very limited number of Financial Intermediaries. Your Registered Representative can help you decide which contract variation may be appropriate for you based on your individual circumstances, time horizon, policy feature preferences and risk tolerance. You should consider these differences and discuss them with your Registered Representative to choose a variable annuity. Not all forms of contract are offered by all Financial Intermediaries. This Appendix does not constitute, and may not be used for the purposes of making, any offer or solicitation by anyone of any form of variable annuity other than as specifically provided in this prospectus. Presented below are some, but certainly not all, of the differentiating features between our individual deferred variable annuities. The form of Contract you select will be identified on your application and the contract issued to you. Consider the investment objectives, risks, charges and expenses of an investment carefully before investing. Both the variable annuity product and underlying Fund prospectuses contain other information about variable annuities and investment options. Your Registered Representative can provide you with prospectuses or you can contact us to receive one. This and any of the other variable annuities referenced in this Appendix are underwritten and distributed by Hartford Securities Distribution Company, Inc. Member SIPC. Please read the prospectus carefully before investing. I. KEY DIFFERENCES
MINIMUM INITIAL PREMIUM NON- QUALIFIED QUALIFIED CONTRACT CONTRACT CONTRACT SALES CHARGE ---------------------------------------------------------------------------------------- ACCESS $10,000 $2,000 None CORE $1,000 $1,000 Year 1 2 3 4 5 CDSC(2) 7% 7% 7% 6% 5% OUTLOOK $10,000 $2,000 Year 1 2 3 4 5+ CDSC(2) 7% 6% 5% 4% 0% PLUS $10,000 $2,000 Year 1 2 3 4 5 CDSC(2) 8% 8% 8% 8% 7% MORTALITY & MAXIMUM EXPENSE RISK PAYMENT UP-FRONT CONTRACT SALES CHARGE CHARGE(1) ENHANCEMENT COMMISSION -------- ------------------------------------------------------------------------- ACCESS 1.55% No 2% CORE 6 7 8+ 4% 3% 0% 1.15% No 7% OUTLOOK 1.50% No 5.75% PLUS 6 7 8 9+ 6% 5% 4% 0% 1.50% Yes(3) 6.5%
(1) Excluded fees include administrative charges (up to 0.20%), annual maintenance fees (applies to contracts with anniversary/surrender contract values less than $50,000), premium taxes (0 - 3.5%) and optional benefit fees. (2) Each Premium Payment has its own Contingent Deferred Sales Charge (CDSC) schedule. Only amounts invested for less than the requisite holding period are subject to a CDSC. When a CDSC is applicable, only Surrenders in excess of the Annual Withdrawal Amount (AWA) will be subject to a CDSC. After the AWA deduction, surrenders will then be taken first: from earnings, second: from Premium Payments not subject to a CDSC, third: from 10% of Premium Payments still subject to a CDSC, fourth: from Premium Payments subject to a CDSC on a first-in-first-out basis, and fifth: from Payment Enhancements for Plus contracts only. A CDSC will not exceed your total Premium Payments. APP A-2 -------------------------------------------------------------------------------- THE FOLLOWING SURRENDERS ARE NOT SUBJECT TO A CDSC: - Annual Withdrawal Amount -- During the Contract Years when a CDSC applies, you may take partial Surrenders up to 10% of the total Premium Payments otherwise subject to a CDSC. If you do not take 10% one year, you may not take more than 10% the next year. These amounts are different for group unallocated Contracts and Contracts issued to a Charitable Remainder Trust. - If you are a patient in a certified long-term care facility or other eligible facility -- We will waive any CDSC for a partial or full Surrender if you, the joint Contract Owner or the Annuitant, are confined for at least 180 calendar days to a: - facility recognized as a general hospital by the proper authority of the state in which it is located or the Joint Commission on the Accreditation of Hospitals; - facility certified as a hospital or long-term care facility; or - nursing home licensed by the state in which it is located and offers the services of a registered nurse 24 hours a day. For this waiver to apply, you must: - have owned the Contract continuously since it was issued, - provide written proof of your eligibility satisfactory to us, and - request the Surrender within 91 calendar days of the last day that you are an eligible patient in a recognized facility or nursing home. This waiver is not available if you, the joint Contract Owner or the Annuitant is in a facility or nursing home when you purchase or upgrade the Contract. We will not waive any CDSC applicable to any Premium Payments made while you are in an eligible facility or nursing home. This waiver may not be available in all states. - Upon death of the Annuitant or any Contract Owner(s) -- No CDSC will be deducted if the Annuitant or any Contract Owner(s) dies. - Upon Annuitization -- The CDSC is not deducted when you annuitize the Contract. However, we will charge a CDSC if the Contract is Surrendered during the CDSC period under an Annuity Payout Option which allows Surrenders. - For Required Minimum Distributions -- This allows Annuitants who are age 70 1/2 or older, with a Contract held under an IRA or 403(b) plan, to Surrender an amount equal to the Required Minimum Distribution for the Contract without a CDSC for one year's required minimum distribution for that Contract Year. All requests for Required Minimum Distributions must be in writing. - For substantially equal periodic payments -- We will waive the CDSC if you take partial Surrenders under the Automatic Income Program where you receive a scheduled series of substantially equal periodic payments for the greater of five years or to age 59 1/2. - Upon cancellation during the Right to Cancel Period -- No CDSC will be deducted if you cancel your Contract during the Right to Cancel Period. (3) We add an additional sum to your Account Value equal to 3% of the Premium Payment if cumulative Premium Payments are less than $50,000 or 4% of the Premium Payment if cumulative Premium Payments are more than $50,000. If a subsequent Premium Payment increases cumulative Premium Payments to $50,000 or more, we will credit an additional Payment Enhancement to your Account Value equal to 1% of your Premium Payments. Payment Enhancements will be allocated to the same Accounts and in the same proportion as your Premium Payment. The cost of providing Payment Enhancements is included in the higher Mortality and Expense Risk Charges. Payment Enhancements will be recaptured if you: - Cancel your Contract during any "Free Look" period. - Annuitize your Contract, you will forfeit Payment Enhancements credited in the 24 months prior to the Annuity Commencement Date. - Request a full or partial Surrender under the CDSC exemption applicable when you are a patient in a certified long-term care facility or other eligible facility. APP A-3 -------------------------------------------------------------------------------- II. EXPENSES The following Example is intended to help you compare the cost of investing in any of these forms of contract. The Example uses the same assumptions referenced in Section 2. The data reflected does not take into account Funds available in proprietary versions of our variable annuities. (1) If you Surrender your variable annuity at the end of the applicable time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------- Access $559 $1,782 $2,946 $5,770 Core $1,211 $2,321 $3,225 $5,461 Outlook $1,257 $2,232 $2,924 $5,732 Plus $1,352 $2,510 $3,559 $5,732
(2) If you annuitize at the end of the applicable time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------- Access $ 494 $1,677 $2,841 $5,665 Core $ 453 $1,561 $2,659 $5,356 Outlook $ 489 $1,663 $2,819 $5,627 Plus $ 489 $1,663 $2,819 $5,627
(3) If you do not Surrender your variable annuity:
1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------- Access $ 599 $1,782 $2,946 $5,770 Core $ 558 $1,666 $2,764 $5,461 Outlook $ 594 $1,768 $2,924 $5,732 Plus $ 594 $1,768 $2,924 $5,732
APP A-4 -------------------------------------------------------------------------------- III. INVESTMENT OPTIONS (STANDARD)
INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUB- FUNDING OPTION SUMMARY ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS AIM V.I. Basic Value Fund -- Long-term growth of capital Invesco Aim Advisors, Inc X X X X Series I Sub-adviser: Advisory entities affiliated with Invesco Aim Advisors, Inc. AIM V.I. Capital Growth of capital Invesco Aim Advisors, Inc X X X X Appreciation Fund -- Series Sub-adviser: Advisory entities I affiliated with Invesco Aim Advisors, Inc. AIM V.I. Capital Development Long-term growth of capital Invesco Aim Advisors, Inc X X X X Fund -- Series I Sub-adviser: Advisory entities affiliated with Invesco Aim Advisors, Inc. AIM V.I. Core Equity Fund -- Growth of capital Invesco Aim Advisors, Inc X X X X Series I Sub-adviser: Advisory entities affiliated with Invesco Aim Advisors, Inc. AIM V.I. Government High level of current income Invesco Aim Advisors, Inc X X X X Securities Fund -- Series I consistent with reasonable Sub-adviser: Advisory entities concern for safety of affiliated with Invesco Aim principal Advisors, Inc. AIM V.I. International Long-term growth of capital Invesco Aim Advisors, Inc X X X X Growth Fund -- Series I Sub-adviser: Advisory entities affiliated with Invesco Aim Advisors, Inc. AIM V.I. Large Cap Growth Long-term growth of capital Invesco Aim Advisors, Inc X X X X Fund -- Series I Sub-adviser: Advisory entities affiliated with Invesco Aim Advisors, Inc. AIM V.I. Mid Cap Core Equity Long-term growth of capital Invesco Aim Advisors, Inc X X X X Fund -- Series I Sub-adviser: Advisory entities affiliated with Invesco Aim Advisors, Inc. AIM V.I. Small Cap Equity Long-term growth of capital Invesco Aim Advisors, Inc X X X X Fund -- Series I Sub-adviser: Advisory entities affiliated with Invesco Aim Advisors, Inc. AMERICAN FUNDS INSURANCE SERIES American Funds Asset High total return, including Capital Research and X X X X Allocation Fund -- Class 2 income and capital gains, Management Company consistent with the preservation of capital over the long term.
APP A-5 --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUB- FUNDING OPTION SUMMARY ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- American Funds Blue Chip Produce income exceeding the Capital Research and X X X X Income and Growth Fund -- average yield on U.S. stocks Management Company Class 2 generally (as represented by the average yield on the Standard & Poor's 500 Composite Index)and to provide an opportunity for growth of principal consistent with sound common stock investing. American Funds Bond Fund -- High level of current income Capital Research and X X X X Class 2 as is consistent with the Management Company preservation of capital. American Funds Global Bond Seeks to provide you, over the Capital Research and X X X X Fund -- Class 2 long term, with a high level Management Company of total return as consistent with prudent management, by investing primarily in investment grade bonds issued by entities based around the world and denominated in various currencies, including U.S. dollars American Funds Global Growth Seeks to make your investment Capital Research and X X X X and Income Fund -- Class 2 grow over time and provide you Management Company with current income by investing primarily in stocks of well-established companies located around the world. American Funds Global Growth Seeks to make your investment Capital Research and X X X X Fund -- Class 2 grow over time by investing Management Company primarily in common stocks of companies located around the world. American Funds Global Small Seeks to make your investment Capital Research and X X X X Capitalization Fund -- grow over time by investing Management Company Class 2 primarily in stocks of smaller companies located around the world. American Funds Growth Fund Seeks to make your investment Capital Research and X X X X -- Class 2 grow by investing primarily in Management Company common stocks of companies that appear to offer superior opportunities for growth of capital.
APP A-6 --------------------------------------------------------------------------------
INVESTMENT ADVISER/SUB- FUNDING OPTION INVESTMENT OBJECTIVE ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- American Funds Growth-Income Seeks to make your investment Capital Research and X X X X Fund -- Class 2 grow and provide you with Management Company income over time by investing primarily in common stocks or other securities that demonstrate the potential for appreciation and/or dividends. American Funds International Seeks to make your investment Capital Research and X X X X Fund -- Class 2 grow over time by investing Management Company primarily in common stocks of companies located outside the United States. American Funds New World Long-term capital appreciation Capital Research and X X X X Fund -- Class 2 Management Company FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST Franklin Flex Cap Growth Capital appreciation Franklin Advisers, Inc. X X X X Securities Fund -- Class 2 Franklin Income Securities Maximize income while Franklin Advisers, Inc. X X X X Fund -- Class 2 maintaining prospects for capital appreciation Franklin Large Cap Growth Capital appreciation Franklin Advisers, Inc. X X X X Securities Fund -- Class 2 Franklin Large Cap Value Long-term capital appreciation Franklin Advisory Services, X X X X Securities Fund -- Class 2 LLC Franklin Rising Dividends Long-term capital appreciation Franklin Advisory Services, X X X X Securities Fund -- Class 2 with preservation of capital LLC as an important consideration. Franklin Small Cap Value Seeks long-term total return Franklin Advisory Services, X X X X Securities Fund -- Class 2 The Fund normally invests at LLC least 80% of its net assets in investments of small capitalization companies, and normally invests predominantly in equity securities. The Fund invests mainly in equity securities of companies that the manager believes are undervalued. Franklin Small-Mid Cap Long-term growth of capital Franklin Advisers, Inc. X X X X Growth Securities Fund -- Class 2 (1) Franklin Strategic Income High level of current income, Franklin Advisers, Inc. X X X X Securities Fund -- Class 1 with capital appreciation over the long term as a secondary goal Mutual Discovery Securities Capital appreciation Franklin Mutual Advisers, LLC X X X X Fund -- Class 2 Sub-advised by Franklin Templeton Investment Management Limited
APP A-7 --------------------------------------------------------------------------------
INVESTMENT ADVISER/SUB- FUNDING OPTION INVESTMENT OBJECTIVE ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- Mutual Shares Securities Capital appreciation, with Franklin Mutual Advisers, LLC X X X X Fund -- Class 2 income as a secondary goal Templeton Developing Markets Long-term capital appreciation Templeton Asset Management X X X X Securities Fund -- Class 1 Ltd. Templeton Foreign Securities Long-term growth of capital Templeton Investment Counsel, X X X X Fund -- Class 2 LLC Sub-advised by Franklin Templeton Investment Management Limited Templeton Growth Securities Long-term growth of capital Templeton Global Advisors X X X X Fund -- Class 2 Limited Sub-advised by Templeton Asset Management Ltd. HARTFORD SERIES FUND, INC. Hartford Money Market HLS Maximum current income HL Investment Advisors, LLC X X X X Fund** -- Class IA consistent with liquidity and Sub-advised by Hartford preservation of capital Investment Management Company MFS(R) VARIABLE INSURANCE X X X X TRUST MFS(R) Core Equity Series -- Capital appreciation MFS Investment Management(R) X X X X Initial Class (2)++ MFS(R) Global Equity Series Capital appreciation MFS Investment Management(R) X X X X -- Initial Class MFS(R) Growth Series -- Capital appreciation MFS Investment Management(R) X X X X Initial Class (3) MFS(R) High Income Series -- Total return with an emphasis MFS Investment Management(R) X X X X Initial Class on high current income, but also considering capital appreciation MFS(R) Investors Growth Capital appreciation MFS Investment Management(R) X X X X Stock Series -- Initial Class MFS(R) Investors Trust Capital appreciation MFS Investment Management(R) X X X X Series -- Initial Class MFS(R) Mid Cap Growth Series Capital appreciation MFS Investment Management(R) X X X X -- Initial Class MFS(R) New Discovery Series Capital appreciation MFS Investment Management(R) X X X X -- Initial Class MFS(R) Research Bond Series Total return with an emphasis MFS Investment Management(R) X X X X -- Initial Class on current income, but also considering capital appreciation. MFS(R) Research Capital appreciation MFS Investment Management(R) X X X X International Series -- Initial Class MFS(R) Research Series -- Capital appreciation MFS Investment Management(R) X X X X Initial Class
APP A-8 --------------------------------------------------------------------------------
INVESTMENT ADVISER/SUB- FUNDING OPTION INVESTMENT OBJECTIVE ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- MFS(R) Total Return Series Total return MFS Investment Management(R) X X X X -- Initial Class MFS(R) Value Series -- Capital appreciation MFS Investment Management(R) X X X X Initial Class Fixed Accumulation Feature* General Account X X X X
++ Closed to Contracts issued on or after 05/02/2005 NOTES (1) Formerly Franklin Small Cap Fund (2) Formerly MFS(R) Capital Opportunities Series -- Initial Class (3) Formerly MFS(R) Emerging Growth Series -- Initial Class * The Fixed Accumulation Feature is not a Sub-Account and the Company does not provide investment advice in connection with this feature. ** In a low interest rate environment, yields for money market funds, after deduction of Contract charges may be negative even though the fund's yield, before deducting for such charges, is positive. If you allocate a portion of your Contract Value to a money market Sub-Account or participate in an Asset Allocation Program where Contract Value is allocated to a money market Sub-Account, that portion of your Contract Value may decrease in value. APP A-9 -------------------------------------------------------------------------------- IV. UNDERLYING FUNDS (PROPRIETARY)
INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUB- FUNDING OPTION SUMMARY ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VARIABLE ANNUITY TRUST Evergreen VA Balanced Fund* Capital growth and current Evergreen Investment X X -- Class 1 income Management Company, LLC Evergreen VA Fundamental Capital growth with the Evergreen Investment X X Large Cap Fund -- Class 1 potential for current income Management Company, LLC Evergreen VA Growth Fund -- Long-term growth of capital Evergreen Investment X X Class 1 Management Company, LLC Evergreen VA International Long-term capital growth and Evergreen Investment X X Equity Fund -- Class 1 secondarily, modest income Management Company, LLC Evergreen VA Omega Fund -- Long-term growth of capital Evergreen Investment X X Class 1 Management Company, LLC Evergreen VA Special Values Capital growth Evergreen Investment X X Fund -- Class 1 Management Company, LLC HUNTINGTON FUNDS Huntington VA Dividend Total return with dividend Huntington Asset Advisors, X X Capture Fund income as an important Inc. component of that return Huntington VA Growth Fund Long-term capital appreciation Huntington Asset Advisors, X X Inc. Huntington VA Income Equity Current income and moderate Huntington Asset Advisors, X X Fund appreciation of capital Inc. Huntington VA International Total return Huntington Asset Advisors, X X Equity Fund Inc. Huntington VA Macro 100 Fund Total return consisting of Huntington Asset Advisors, X X capital appreciation and Inc. income Sub-advised by Laffer Investments, Inc. Huntington VA Mid Corp Long-term capital appreciation Huntington Asset Advisors, X X America Fund Inc. Huntington VA Mortgage Current income Huntington Asset Advisors, X X Securities Fund Inc. Huntington VA New Economy Capital appreciation Huntington Asset Advisors, X X Fund Inc. Huntington VA Rotating Capital appreciation Huntington Asset Advisors, X X Markets Fund Inc. Huntington VA Situs Fund Long-term capital appreciation Huntington Asset Advisors, X X Inc.
APP A-10 --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUB- FUNDING OPTION SUMMARY ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST JPMorgan Insurance Trust Total return while preserving JPMorgan Investment Advisors X Balanced Portfolio 1 capital Inc. (formerly Banc One Investment Advisors Corporation) JPMorgan Insurance Trust Maximize total return by JPMorgan Investment Advisors X Core Bond Portfolio 1 investing primarily in a Inc. (formerly Banc One diversified portfolio of Investment Advisors intermediate- and long-term Corporation) debt securities JPMorgan Insurance Trust Seeks to provide high total JPMorgan Investment Advisors X Diversified Equity return from a portfolio of Inc. (formerly Banc One Portfolio 1 selected equity securities Investment Advisors Corporation) JPMorgan Insurance Trust Growth of capital and, JPMorgan Investment Advisors X Diversified Mid Cap Growth secondarily, current income by Inc. (formerly Banc One Portfolio 1 investing primarily in equity Investment Advisors securities Corporation) JPMorgan Insurance Trust Capital appreciation with the JPMorgan Investment Advisors X Diversified Mid Cap Value secondary goal of achieving Inc. (formerly Banc One Portfolio 1 current income by investing Investment Advisors primarily in equity Corporation) securities JPMorgan Insurance Trust Investment results that JPMorgan Investment Advisors Equity Index Portfolio 1 correspond to the aggregate Inc. (formerly Banc One price and dividend performance Investment Advisors of securities in the Standard Corporation) & Poor's 500 Composite Stock Price Index (S&P 500 Index)* JPMorgan Insurance Trust High level of current income JPMorgan Investment Advisors X Government Bond Portfolio 1 with liquidity and safety of Inc. (formerly Banc One principal Investment Advisors Corporation) JPMorgan Insurance Trust Seeks to provide long-term JPMorgan Investment Advisors X Intrepid Growth Portfolio 1 capital growth Inc. (formerly Banc One Investment Advisors Corporation) JPMorgan Insurance Trust Long-term capital growth by JPMorgan Investment Advisors X Intrepid Mid Cap Portfolio investing primarily in equity Inc. (formerly Banc One 1 securities of companies with Investment Advisors intermediate capitalizations Corporation)
APP A-11 --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUB- FUNDING OPTION SUMMARY ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- RIDGEWORTH VARIABLE TRUST (2) RidgeWorth Variable Trust Capital appreciation with RidgeWorth Capital Management, X X Large Cap Core Equity Fund current income as a secondary Inc. Sub- advised by IronOak (3) goal Advisors LLC RidgeWorth Variable Trust Capital appreciation RidgeWorth Capital Management, X X Large Cap Growth Stock Fund Inc. Sub-advised by Silvant (4) Capital Management LLC RidgeWorth Variable Trust Long-term capital appreciation RidgeWorth Capital Management, X X Large Cap Value Equity Fund with current income as a Inc. Sub- advised by Ceredex (5) secondary goal Value Advisors LLC RidgeWorth Variable Trust Capital appreciation RidgeWorth Capital Management, X X Mid-Cap Core Equity (6) Inc. Sub-advised by IronOak Advisors LLC THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Van Kampen -- UIF Long-term capital Morgan Stanley Investment X X International Growth Equity appreciation, with a secondary Management Inc. Portfolio -- Class II objective of income Van Kampen -- UIF U.S. Mid Above-average total return Morgan Stanley Investment X X Cap Value Portfolio -- over a market cycle of three Management Inc. Class II to five years by investing primarily in common stocks and other equity securities. WELLS FARGO VARIABLE TRUST FUNDS (7) Wells Fargo Advantage VT Long-term total return, Wells Fargo Funds Management, X X Asset Allocation Fund consisting of capital LLC Sub- advised by Wells appreciation and current Capital Management income Incorporated Wells Fargo Advantage VT C&B Maximum long-term total return Wells Fargo Funds Management, X X Large Cap Value Fund (current income and capital LLC Sub- advised by Cooke & appreciation), consistent with Bieler, LP. minimizing risk to principal Wells Fargo Advantage VT Long-term capital appreciation Wells Fargo Funds Management, X X Discovery Fund LLC Sub-advised by Wells Capital Management Incorporated Wells Fargo Advantage VT Long-term capital appreciation Wells Fargo Funds Management, X X Equity Income Fund and above-average dividend LLC Sub- advised by Wells income Capital Management Incorporated Wells Fargo Advantage VT Long-term capital appreciation Wells Fargo Funds Management, X X International Core Fund LLC Sub-advised by New Star International Managers Limited Wells Fargo Advantage VT Total return comprised of Wells Fargo Funds Management, X X Large Company Core Fund long-term capital appreciation LLC Sub- advised by Matrix and current Asset Advisors, Inc. income
APP A-12 --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUB- FUNDING OPTION SUMMARY ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- Wells Fargo Advantage VT Long-term capital appreciation Wells Fargo Funds Management, X X Large Company Growth Fund LLC Sub-advised by Peregrine Capital Management, Inc. Wells Fargo Advantage VT Current income, while Wells Fargo Funds Management, X X Money Market Fund preserving capital and LLC Sub- advised by Wells liquidity Capital Management Incorporated Wells Fargo Advantage VT Long-term capital appreciation Wells Fargo Funds Management, X X Opportunity Fund LLC Sub-advised by Wells Capital Management Incorporated Wells Fargo Advantage VT Long-term capital appreciation Wells Fargo Funds Management, X X Small Cap Growth Fund LLC Sub-advised by Wells Capital Management Incorporated Wells Fargo Advantage VT Long-term capital appreciation Wells Fargo Funds Management, X X Small/Mid Cap Value Fund LLC Sub-advised by Wells Capital Management Incorporated Wells Fargo Advantage VT Total return consisting of Wells Fargo Funds Management, X X Total Return Bond Fund income and capital LLC Sub- advised by Wells appreciation Capital Management Incorporated
NOTES (1) Formerly Morgan Stanley -- American Opportunities Portfolio -- Class Y (2) Formerly STI Classic Variable Trust (3) Formerly STI Classic VT Large Cap Relative Value Fund (4) Formerly STI Classic VT Large Cap Growth Stock Fund (5) Formerly STI Classic VT Large Cap Value Equity Fund (6) Formerly STI Classic VT Mid-Cap Equity Fund (7) Formerly Strong Variable Insurance Funds, Inc. * Effective May 30, 2008, the fund will be renamed Evergreen VA Diversified Capital Builder Fund APP B-1 -------------------------------------------------------------------------------- APPENDIX B -- OPTIONAL BENEFITS COMPARISONS
THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME FEATURES FOUNDATION BUILDER II BUILDER SELECTS / PORTFOLIOS BUILDER -------------------------------------------------------------------------------------------------------------------- OBJECTIVES Guaranteed income - Guaranteed income THE HARTFORD'S LIFETIME - Guaranteed income for life for life INCOME BUILDER SELECTS: for life or a set - Potential - Guaranteed income for life time period automatic annual - Potential automatic annual - Potential Payment Base Payment Base increases automatic annual increases (0 - 10%) Benefit Amount (0 - 10%) THE HARTFORD'S LIFETIME increases INCOME BUILDER PORTFOLIOS: (0 - 10%) - Guaranteed income for life - Potential automatic annual Payment Base adjustment DEATH BENEFIT - Greater of Same as The Same as The Hartford's - Greater of Contract Value or Hartford's Lifetime Lifetime Income Foundation Contract Value or Premium Payments Income Foundation for both options Benefit Amount adjusted for partial - Replaces the Surrenders standard Death - Replaces the Benefit standard Death - MAV Plus (MAV Benefit only) may be - MAV Plus (MAV purchased with this only) may be rider purchased with this rider AVAILABILITY - Available at Same as The - Available at Contract - Available at Contract issue only Hartford's Lifetime issue only Contract issue only - Available subject Income Foundation - Available subject to state - Closed to new to state approval approval investors - No longer available if The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios are approved in your state MAXIMUM ISSUE AGE Qualified, Qualified, Qualified, Non-Qualified Qualified, Non-Qualified Non-Qualified maximum issue age is 80 for Non-Qualified maximum issue age is maximum issue age is any Covered Life and maximum issue age is 80 for any Covered 75 for any Covered Annuitant 75 Life and Annuitant Life and Annuitant. (owner(s)/annuitant) REVOCABILITY - Only the Lifetime - Irrevocable FOR BOTH OPTIONS: - Irrevocable Withdrawal Feature - We may terminate - Irrevocable - We may terminate is revocable by the Rider upon Owner - We may terminate the Rider the Rider upon Owner client, revocation default upon Owner default default can be requested in writing anytime after the 5th Contract Year or upon Spousal Contract Continuation - We may terminate the Rider upon Owner default
APP B-2 --------------------------------------------------------------------------------
THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME FEATURES FOUNDATION BUILDER II BUILDER SELECTS / PORTFOLIOS BUILDER -------------------------------------------------------------------------------------------------------------------- RIDER COMPATIBILITY Cannot be elected Cannot be elected THE HARTFORD'S LIFETIME Cannot be elected with any of the with any of the INCOME BUILDER SELECTS: with any of the following: following: Cannot be elected with any following: - The Hartford's - The Hartford's of the following: - The Hartford's Principal First Principal First - The Hartford's Principal Principal First - The Hartford's - The Hartford's First - The Hartford's Principal First Principal First - The Hartford's Principal Principal First Preferred Preferred First Preferred Preferred - The Hartford's - The Hartford's - The Hartford's Lifetime - The Hartford's Lifetime Income Lifetime Income Income Foundation Lifetime Income Builder I Builder - The Hartford's Lifetime Builder II - The Hartford's - The Hartford's Income Builder II - The Hartford's Lifetime Income Lifetime Income - The Hartford's Lifetime Lifetime Income Builder II Foundation Income Builder Foundation - The Hartford's - The Hartford's Portfolios - The Hartford's Lifetime Income Lifetime Income THE HARTFORD'S LIFETIME Lifetime Income Builder Selects Builder Selects INCOME BUILDER PORTFOLIOS: Builder Selects - The Hartford's - The Hartford's Cannot be elected with any - The Hartford's Lifetime Income Lifetime Income of the following: Lifetime Income Builder Portfolios Builder Portfolios - The Hartford's Principal Builder Portfolios First - The Hartford's Principal First Preferred - The Hartford's Lifetime Income Foundation - The Hartford's Lifetime Income Builder II - The Hartford's Lifetime Income Builder Selects - The Hartford's Lifetime Income Builder Portfolios
APP B-3 --------------------------------------------------------------------------------
THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME FEATURES FOUNDATION BUILDER II BUILDER SELECTS / PORTFOLIOS BUILDER -------------------------------------------------------------------------------------------------------------------- ADDITIONAL CHARGE 0.30% (30 bps) of - 0.40% (40 bps) of THE HARTFORD'S LIFETIME - 0.40% (40 bps) of the Payment Base the Payment Base INCOME BUILDER SELECTS: the Benefit Amount charged annually on charged annually on - 0.55% of the Payment Base charged annually on each Contract the Contract charged annually on the the contract Anniversary (flat Anniversary (flat Contract Anniversary (flat anniversary (flat dollar) dollar) dollar) dollar) - Can increase the - Can increase the fee on or - Can increase the fee on or after the after 12 months from the fee on or after the 5th anniversary from rider effective date or upon 5th contract the rider effective Covered Life changes anniversary and then date and then every - Maximum charge of 1.50% every 5 years 5 years thereafter THE HARTFORD'S LIFETIME thereafter only if or upon Covered Life INCOME BUILDER PORTFOLIOS: annual Benefit changes - 0.65% of the Payment Base Amount increases - Maximum charge of charged annually on the elected 0.75% Contract Anniversary (flat - Maximum charge of dollar) 0.75% - Can increase the fee on or after 12 months from the rider effective date or upon Covered Life changes - Maximum charge of 1.50% BENEFIT AMOUNT Not applicable Not applicable Not applicable 100% of Premium Payment when added at issue
APP B-4 --------------------------------------------------------------------------------
THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME FEATURES FOUNDATION BUILDER II BUILDER SELECTS / PORTFOLIOS BUILDER -------------------------------------------------------------------------------------------------------------------- PAYMENT BASE 100% of Premium 100% of Premium BOTH OPTIONS: Not applicable Payment when added Payment when added 100% of Premium Payment plus at issue at issue any Payment Enhancements (Plus Contracts) when added at issue. WITHDRAWAL - Varies based on: Same as The BOTH OPTIONS: Not applicable PERCENTAGE - attained age of Hartford's Lifetime - Varies based on: Relevant Covered Income Foundation - attained age of Relevant Life Covered Life - survivor option - survivor option chosen chosen - Withdrawal Percent for - date of first Single Life Option starts at partial Surrender 5% and increases by 0.5% for - Withdrawal Percent every 5 year increment for Single Life between the Relevant Covered Option starts at 5% Life's attained ages 60 - 80 and increases by - Withdrawal Percent for 0.5% for every 5 Joint/Spousal Life Option year increment starts at 4.5% and increases between the Relevant by 0.5% for every 5 year Covered Life's increment between the attained ages 60 - Relevant Covered Life's 80 attained ages 60 - 80 - Withdrawal Percent - The Withdrawal Percent for Joint/Spousal will be set at the time of Life Option starts the first partial Surrender at 4.5% and and is based on the attained increases by 0.5% age of the Relevant Covered for every 5 year Life increment between - Potential to increase the Relevant Covered Withdrawal Percent if a new Life's attained ages age band is reached and 60 - 80 there is an automatic - The Withdrawal Payment Base Increase on the Percent will be set anniversary. at the time of the first partial Surrender and is based on the attained age of the Relevant Covered Life
APP B-5 --------------------------------------------------------------------------------
THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME FEATURES FOUNDATION BUILDER II BUILDER SELECTS / PORTFOLIOS BUILDER -------------------------------------------------------------------------------------------------------------------- ANNUAL AMOUNT PRIOR TO AN ELIGIBLE Same as The THE HARTFORD'S LIFETIME PRIOR TO OWNER'S AVAILABLE FOR WITHDRAWAL YEAR: Hartford's Lifetime INCOME BUILDER SELECTS: 60TH BIRTHDAY: SURRENDER Partial Income Foundation PRIOR TO THE LIFETIME INCOME Benefit Payments Surrenders(1) equal ELIGIBILITY DATE: equal 5% multiplied either: Partial Surrenders (1) equal by the Benefit SINGLE LIFE OPTION either: Amount -- 5% multiplied by SINGLE LIFE OPTION -- 5% CONTRACT the greater of multiplied by the greater of ANNIVERSARIES Payment Base or Payment Base or Contract IMMEDIATELY Contract Value (on Value (on the Contract FOLLOWING THE the Contract Anniversary) OWNER'S 60TH Anniversary) JOINT/SPOUSAL OPTION -- 4.5% BIRTHDAY -- ONLY IF JOINT/SPOUSAL OPTION multiplied by the greater of ELECTED: Lifetime -- 4.5% multiplied Payment Base or Contract Benefit Payments(2) by the greater of Value (on the Contract equal 5% of the Payment Base or Anniversary) Benefit Amount Contract Value (on ON OR AFTER THE LIFETIME the Contract INCOME ELIGIBILITY DATE: Anniversary) Lifetime Benefit Payments DURING AN ELIGIBLE equal applicable Withdrawal WITHDRAWAL YEAR: Percent (varies by option Lifetime Benefit elected, Single Life vs. Payments equal Joint/ Spousal) multiplied applicable by the greater of Payment Withdrawal Percent Base or Contract Value (on (varies by option the Contract Anniversary) elected, Single Life THE HARTFORD'S LIFETIME vs. Joint/ Spousal) INCOME BUILDER PORTFOLIOS: multiplied by the PRIOR TO THE LIFETIME INCOME greater of Payment ELIGIBILITY DATE: Base or Contract Partial Surrenders (1) equal Value (on the either: Contract SINGLE LIFE OPTION -- 5% Anniversary) multiplied by the Payment Base JOINT/SPOUSAL OPTION -- 4.5% multiplied by the Payment Base ON OR AFTER THE LIFETIME INCOME ELIGIBILITY DATE: Lifetime Benefit Payments equal applicable Withdrawal Percent (varies by option elected, Single Life vs. Joint/ Spousal) multiplied by the Payment Base (on the Contract Anniversary)
(1) As in the case of any partial Surrender, taking partial Surrenders prior to an Eligible Withdrawal Year will reduce the Payment Base and your future Lifetime Benefit Payment. Such partial Surrender may potentially eliminate your Lifetime Benefit Withdrawal Guarantee and Guaranteed Minimum Death Benefit. (2) Benefit Payments are still available after age 60 and may be different than the Lifetime Benefit Payment. The annual amount withdrawn can not exceed the greater of these two values. APP B-6 --------------------------------------------------------------------------------
THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME FEATURES FOUNDATION BUILDER II BUILDER SELECTS / PORTFOLIOS BUILDER -------------------------------------------------------------------------------------------------------------------- RMD RESET - Contracts enrolled Same as The BOTH RIDERS: - Contracts enrolled in automatic RMD Hartford's Lifetime Same as The Hartford's in automatic RMD (AIP) that go over Income Foundation Lifetime Income Foundation (AIP) that go over the annual Lifetime the 5% allowed will Benefit Payment not result in a amount will not reset of the Benefit result in a reset of Payment or Lifetime the Lifetime Benefit Benefit Payment if Payment if no other no other partial partial Surrenders Surrenders have have occurred during occurred during the the Contract Year Contract Year - NOT 72t/q friendly - NOT 72t/q friendly INVESTMENT - Not currently Same as The THE HARTFORD'S LIFETIME Not currently RESTRICTIONS enforced Hartford's Lifetime INCOME BUILDER SELECTS: enforced - Can be triggered Income Foundation Same as The Hartford's by changes in Lifetime Income Foundation Covered Life THE HARTFORD'S LIFETIME - If the INCOME BUILDER PORTFOLIOS: restrictions are - Contract Value must be violated, the invested in an approved Lifetime Withdrawal asset allocation model, Benefit of this fund-of-funds or rider will be Sub-Accounts -- failure to revoked and the do so will result in the Death Benefit only termination of this rider will continue OWNERSHIP CHANGES Refer to Covered Refer to Covered Refer to Covered Life change - Ownership changes Life change feature Life change feature feature below in the first 12 below below months from the effective date of the rider will have no impact on the rider benefits as long as age limitation is met - Ownership changes after the first 12 months from the effective date of the rider may cause the Benefit Amount, Benefit Payment and Lifetime Benefit Payment to be recalculated SPOUSAL CONTRACT Refer to Spousal Refer to Spousal Refer to Covered Life change If Spousal Contract CONTINUATION Contract Contract feature below continuation is Continuation feature Continuation feature elected, there may below below be a Benefit Amount increase to equal the then current Benefit Amount (this is automatic, NOT elected) providing he/she is younger than 76 years old and the rider is currently available for sale
APP B-7 --------------------------------------------------------------------------------
THE HARTFORD'S LIFETIME INCOME THE HARTFORD'S LIFETIME INCOME THE HARTFORD'S LIFETIME INCOME FOUNDATION -- SINGLE BUILDER II -- SINGLE FOUNDATION -- FEATURES LIFE OPTION LIFE OPTION JOINT/SPOUSAL OPTION -------------------------------------------------------------------------------------------------------------------- COVERED LIFE - Natural Owner -- Owner and Same as The Hartford's - Natural Owner -- The Covered Joint Owner (if any) on rider Lifetime Income Foundation -- Life is both Spouses (as effective date Single Life option defined by Federal Law) - Non-Natural Owner -- the - Non-Natural Owner -- the Annuitant on rider effective Annuitant on rider effective date date - All age based benefit - All age based provisions provisions based on the based on the attained age of attained age of the OLDER the YOUNGER Covered Life Covered Life ISSUE RULES No Additional Requirements Same as The Hartford's - The sole primary beneficiary Lifetime Income Foundation -- (defined as the individual to Single Life option receive the Death Benefit) must be the Owner's Spouse. If the Joint Owner is the Spouse, the primary beneficiary can be someone other than the Spouse - A joint Owner who is not the Owner's Spouse is not allowed. - We reserve the right to prohibit non-natural entities from being listed as Owner COVERED LIFE CHANGE - Covered Life changes within Same as The Hartford's - Covered Life changes within the first 6 months have no Lifetime Income Foundation -- the first 6 months have no impact to the Death Benefit or Single Life option impact to the Death Benefit or Payment Base, however, the Payment Base, however, the Withdrawal Percent and Withdrawal Percent and Lifetime Benefit Payment may Lifetime Benefit Payment may change based on the attained change based on the attained age of new Relevant Covered age of new Relevant Covered Life Life - After the first 6 months: - If Owner and their Spouse - Covered Life changes will are no longer married, for cause a reset in the benefits reasons other than death, - Allow us to impose Covered Life changes may investment restrictions occur: - May cause an increase in - If Surrenders have not been rider charge taken, Owner may remove their Spouse and replace with new Spouse (both events do not need to occur at the same time)(3) - If Surrenders have been taken, Owner may remove their Spouse but may not add a new Spouse - Any other contractual change which causes a change in the Covered Life will cause the Withdrawal Feature to terminate THE HARTFORD'S LIFETIME INCOME BUILDER II -- FEATURES JOINT/SPOUSAL OPTION -------------------- COVERED LIFE Same as The Hartford's Lifetime Income Foundation -- Joint/Spousal option ISSUE RULES Same as The Hartford's Lifetime Income Foundation -- Joint/Spousal option COVERED LIFE CHANGE Same as The Hartford's Lifetime Income Foundation -- Joint/Spousal option except Covered Life changes within the first 6 months have no impact to the Maximum Contract Value
(3) The Covered Life will be reset at time of removal and time of replacement. The Withdrawal Percent scale will be based on the younger Covered Life. APP B-8 --------------------------------------------------------------------------------
THE HARTFORD'S LIFETIME INCOME THE HARTFORD'S LIFETIME INCOME THE HARTFORD'S LIFETIME INCOME FOUNDATION -- SINGLE BUILDER II -- SINGLE FOUNDATION -- FEATURES LIFE OPTION LIFE OPTION JOINT/SPOUSAL OPTION -------------------------------------------------------------------------------------------------------------------- SPOUSAL - We will increase the Same as The Hartford's - We will increase the CONTRACT Contract Value to the Death Lifetime Income Foundation -- Contract Value to the Death CONTINUATION Benefit value Single Life option Benefit value - The Relevant Covered Life - The Spouse may elect to will be re-determined on the either: date of the continuation A) Continue the Contract and - The Payment Base will be set rider; or equal to the Contract Value, B) Continue the Contract and the Death Benefit will be set revoke the Withdrawal Feature equal to the Contract Value of the rider and the Lifetime Benefit If the Spouse elects to Payment and Withdrawal Percent continue the Contract and will be recalculated on the rider: continuation date - The Payment Base will be set - If Relevant Covered Life is equal to the greater of greater than or equal to 81 at Contract Value or Payment Base the time of continuation, the on the continuation date Rider will terminate. The - The Withdrawal Percent will Death Benefit will be equal to remain frozen at the current the Contract Value Withdrawal Percent if there have been partial Surrenders since the rider effective date. If not, the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Contract Anniversary prior to the first partial Surrender - The Lifetime Benefit Payment will be recalculated to equal the Withdrawal Percent multiplied by the greater of Contract Value or Payment Base on the continuation date THE HARTFORD'S LIFETIME INCOME BUILDER II -- FEATURES JOINT/SPOUSAL OPTION -------------------- SPOUSAL Same as The Hartford's CONTRACT Lifetime Income Foundation -- CONTINUATION Joint/Spousal option except the Maximum Contract Value will be the greater of Contract Value or Payment Base on the continuation date
The discussion above is qualified in its entirety by the terms and provisions of the prospectus attached and in the event of any conflict between the discussion above and the prospectus, the prospectus shall prevail. APP B-9 --------------------------------------------------------------------------------
THE HARTFORD'S PRINCIPAL FIRST THE HARTFORD'S FEATURES PREFERRED PRINCIPAL FIRST ------------------------------------------------------------------------------------------------------------------------------ OBJECTIVES - Guaranteed income for a set time period (20 - Guaranteed income for a set time period (14 years estimated) years estimated) - Principal protection - Potential step-ups every 5 years - Principal protection DEATH BENEFIT Not Applicable Not Applicable AVAILABILITY - Available at Contract issue or post issue on - Available at Contract issue or post-issue on contracts effective on or after 11/1/04 current products - Plus contracts must reach the 1st anniversary - Plus contracts must reach the 1st anniversary before adding post-issue. before adding post-issue. MAXIMUM ISSUE AGE Qualified, Non-Qualified maximum issue age is 70 - Non-Qualified and Roth IRA -- age 85 except for (owner(s)/annuitant) Outlook and Access contracts which have a maximum issue age of 90 - IRA/Qualified -- age 80 REVOCABILITY Revocable in writing anytime after the 5th Irrevocable anniversary of the rider effective date (6th rider year) RIDER COMPATIBILITY Cannot be elected with any of the following: Cannot be elected with any of the following: - The Hartford's Principal First - The Hartford's Principal First Preferred - The Hartford's Lifetime Income Builder - The Hartford's Lifetime Income Builder - The Hartford's Lifetime Income Builder II - The Hartford's Lifetime Income Builder II - The Hartford's Lifetime Income Foundation - The Hartford's Lifetime Income Foundation - The Hartford's Lifetime Income Builder Selects - The Hartford's Lifetime Income Builder Selects - The Hartford's Lifetime Income Builder - The Hartford's Lifetime Income Builder Portfolios Portfolios ADDITIONAL CHARGE Annual charge of 0.20% (20 bps) assessed daily - Annual charge of 0.50% (50 bps) assessed daily - Can increase the fee on or after the 5th contract anniversary and then every 5 years thereafter only of step-up elected - Maximum charge of 0.75% BENEFIT AMOUNT - 100% of Premium Payment when added at issue - 100% of Premium Payment when added at issue - Contract Value on the rider effective date when - Contract Value on the rider effective date when added post-issue added post-issue PAYMENT BASE Not applicable Not applicable WITHDRAWAL PERCENTAGE Not applicable Not applicable ANNUAL AMOUNT AVAILABLE BEGINNING IMMEDIATELY: BEGINNING IMMEDIATELY: FOR SURRENDER BENEFIT PAYMENTS EQUAL 5% OF THE BENEFIT AMOUNT BENEFIT PAYMENTS EQUAL 7% OF THE BENEFIT AMOUNT RMD RESET - Contracts enrolled in automatic RMD (AIP) that - All partial Surrenders that go over the 7% go over the 5% allowed will not result in a reset allowed will result in a reset of the Benefit of the Benefit Payment amount if no other partial Amount and possibly a reset of the Benefit Payment Surrenders have occurred during the Contract amount Year. - NOT 72t/q friendly - NOT 72t/q friendly
APP B-10 --------------------------------------------------------------------------------
THE HARTFORD'S PRINCIPAL FIRST THE HARTFORD'S FEATURES PREFERRED PRINCIPAL FIRST ------------------------------------------------------------------------------------------------------------------------------ INVESTMENT RESTRICTIONS - Not currently enforced None - If the restrictions are violated, the withdrawal feature of this rider will be revoked OWNERSHIP CHANGES - Ownership changes in the first 12 months from Same as Principal First Preferred the effective date of the rider will have no impact on the rider benefits as long as age limitation is met - Ownership changes after the first 12 months to someone other than the Spouse will cause a recalculation of the Benefit Amount SPOUSAL There is no option for the Spouse to step up the Spouse may choose to step up the Benefit Amount to CONTRACT Benefit Amount upon Spousal Contract continuation the current Contract Value CONTINUATION
APP C-1 ------------------------------------------------------------------------------- APPENDIX C -- THE HARTFORD'S LIFETIME INCOME BUILDER OBJECTIVE Protect your investment from poor market performance through potential annual Benefit Amount increases and provide income through predetermined periodic payments based either on a set schedule or your lifetime. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider (called the Unified Benefit Design in your Contract) provides a single Benefit Amount payable as two separate but bundled benefits which form the entire benefit. In other words, this rider is a guarantee of the Benefit Amount that you can access two ways: - WITHDRAWAL BENEFIT allows (a) BENEFIT PAYMENTS: a series of withdrawals which may be paid annually until the Benefit Amount is reduced to zero or (b) LIFETIME BENEFIT PAYMENTS: a series of withdrawals which may be paid annually until the death of any Owner if the older Owner (or Annuitant if the Contract Owner is a trust) is age 60 or older. The Benefit Payments and Lifetime Benefit Payments may continue even if the Contract Value is reduced to zero; and/or - GUARANTEED MINIMUM DEATH BENEFIT ("GMDB"). The GMDB is equal to the greater of the Benefit Amount or the Contract Value if the Contract Value is greater than zero. DEPLETING THE BENEFIT AMOUNT BY TAKING SURRENDERS WILL REDUCE OR ELIMINATE THE GUARANTEED MINIMUM DEATH BENEFIT. THIS GUARANTEED MINIMUM DEATH BENEFIT REPLACES THE STANDARD DEATH BENEFITS PROVIDED UNDER THIS CONTRACT. See Optional Benefit Comparisons in Appendix B. WHEN CAN YOU BUY THIS RIDER? The Hartford's Lifetime Income Builder is closed to new investors. This rider may not be available in all states or through all Registered Representatives. We reserve the right to withdraw this rider at any time. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any rider other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The fee for this rider is based on your then current Benefit Amount. . This additional charge will automatically be deducted from your Contract Value on each Contract Anniversary. The charge is withdrawn from each Sub-Account and the Fixed Account in the same proportion that the value of the Sub-Account bears to the total Contract Value. The rider fee will not be taken from the DCA Plus account. The charge is deducted after all other financial transactions and any Benefit Amount increases are made. Once you elect this benefit, we will continue to deduct the charge until we begin to make Annuity Payouts. The rider charge may limit access to Fixed Accounts in certain states. We reserve the right to increase the charge up to a maximum rate of 0.75% any time on or after your fifth Contract Anniversary or five years from the date from which we last notified you of a fee increase, whichever is later. If we increase this charge, you will receive advance notice of the increase and will be given the opportunity to suspend this and future charge increases. If you suspend any charge increase, you will no longer receive automatic Benefit Amount increases. If we do not receive notice from you to suspend the increase, we will automatically assume that automatic Benefit Amount increases will continue and the new charge will apply. Within 30 days prior to subsequent Contract Anniversaries, you may re-start automatic Benefit Amount increases at the charge in effect since your most recent notification. If you Surrender prior to a Contract Anniversary, a pro rata share of the charge will be assessed and will be equal to the charge multiplied by the Benefit Amount prior to the Surrender, multiplied by the number of days since the last charge was assessed, divided by 365. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. The initial Benefit Amount equals your initial Premium Payment. The Benefit Amount will be adjusted in the future through your actions as well as ours. The Benefit Amount will be increased as a result of automatic Benefit Amount increases or subsequent Premium Payments; However, if Surrenders have been taken, your new Benefit Payment may not be greater than your Benefit Amount prior to the Surrender. The Benefit Amount will be decreased as a result of any Surrenders and potentially, any changes in ownership. - Automatic Benefit Amount increases. We may increase the Benefit Amount on each Contract Anniversary (referred to as "automatic Benefit Amount increases"), depending on the investment performance of your Contract. To compute this percentage, we will divide your Contract Value on the then current Contract Anniversary by the Maximum Contract Value and then reduced by 1. In no event will this factor be less than 0% or greater than 10%. Automatic Benefit Amount increases will not take place if the investment performance of your Sub-Accounts is neutral or negative. Automatic Benefit Amount increases will continue until the earlier of the Contract Anniversary immediately following the older Owner's or Annuitant's 75th birthday or the Annuity Commencement Date. APP C-2 ------------------------------------------------------------------------------- - Subsequent Premium Payments. When subsequent Premium Payments are received, the Benefit Amount will be increased by the dollar amount of the subsequent Premium Payment. However, if Surrenders have been taken your new Benefit Payment may not be greater than your Benefit Amount prior to the Surrender. - Surrenders. When a Surrender is made, the Benefit Amount will be equal to the amount determined in either (A), (B) or (C) as follows: A. If total Surrenders since the most recent Contract Anniversary are equal to or less than the Benefit Payment, the Benefit Amount becomes the Benefit Amount immediately prior to the Surrender, less the amount of Surrender. B. If total Surrenders since the most recent Contract Anniversary exceed the Benefit Payment as a result of enrollment in our Automatic Income program to satisfy Required Minimum Distributions, the Benefit Amount becomes the Benefit Amount immediately prior to the Surrender, less the amount of Surrender. C. If total Surrenders since the most recent Contract Anniversary exceed the Benefit Payment and the Required Minimum Distribution exception in (B) does not apply, the Benefit Amount is re-calculated to the greater of zero or the lesser of (i) or (ii) as follows: (i) the Contract Value immediately following the Surrender; or (ii) the Benefit Amount immediately prior to the Surrender, less the amount of Surrender. - Benefit Amount limits. Your Benefit Amount can not be less than zero or more than $5 million. Any sums in excess of this ceiling will not be included for any benefits under this rider. Since the Benefit Amount is a central source for both benefits under this rider, taking withdrawals will lessen or eliminate the Guaranteed Minimum Death Benefit. Refer to the Examples included in Appendix I for a more complete description of these effects. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? Yes. The following section describes both Benefit Payments and Lifetime Benefit Payments which together comprise the Withdrawal Benefit. - BENEFIT PAYMENTS Under this option, Surrenders may be taken immediately as a Benefit Payment that is initially set equal to 5% annually of the initial Benefit Amount. The Benefit Payment is the amount guaranteed for withdrawal each Contract Year until the Benefit Amount is reduced to zero (even if the Contract Value is first reduced to zero). We support this guaranteed payment through our General Account which is subject to our claims paying ability and other liabilities as a company. The Benefit Payment can be taken on any payment schedule that you request. You can continue to take Benefit Payments until the Benefit Amount has been depleted. Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your Benefit Payment include any applicable Contingent Deferred Sales Charge. Whenever a Surrender is taken during any Contract Year, the Benefit Payment will be adjusted to equal the amount in either (A), (B) or (C) as follows: A. If total Surrenders since the most recent Contract Anniversary are equal to or less than the Benefit Payment, the Benefit Payment until the next Contract Anniversary is equal to the lesser of the Benefit Payment immediately prior to the Surrender or the Benefit Amount immediately after the Surrender. B. If total Surrenders since the most recent Contract Anniversary exceed the Benefit Payment as a result of enrollment in our Automatic Income Program to satisfy Required Minimum Distributions, the provisions of (A) will apply. C. If total Surrenders since the most recent Contract Anniversary are more than the Benefit Payment and the Required Minimum Distribution exception in (B) does not apply, the Benefit Payment will be re-calculated to equal the Benefit Amount immediately following the Surrender multiplied by 5%. If you choose an amount less than the Benefit Payment in any Contract Year, the remaining annual Benefit Payment cannot be carried forward to the next Contract Year. You may elect to take Benefit Payments at any time provided that the Benefit Amount is greater than zero. If you make a subsequent Premium Payment, the Benefit Payment will be re-calculated to equal 5% of the Benefit Amount immediately after the subsequent Premium Payment is made. APP C-3 ------------------------------------------------------------------------------- If there is an increase in the Benefit Amount due to an automatic Benefit Amount increase on any Contract Anniversary, we will automatically re-calculate the Benefit Payment to the greater of the Benefit Payment immediately prior to the increase or the Benefit Amount immediately after the increase multiplied by 5%. If you are enrolled in our Automatic Income Program you must request in writing to increase the amount being withdrawn. If Surrenders are less than or equal to the Benefit Payment but result in the Contract Value remaining after such Surrender to be less than our minimum amount rules then in effect, we will not terminate the Contract under our minimum amount rules if the Benefit Amount is greater than zero. However, if the Benefit Amount is zero and the Contract Value remaining after any Surrender is also less than our minimum amount rules then in effect, we may terminate the Contract and pay you the Surrender Value. - LIFETIME BENEFIT PAYMENTS Under this option, Surrenders may be taken as Lifetime Benefit Payments that are initially equal to 5% annually of the Benefit Amount on the Contract Anniversary immediately following the older Owner's 60th birthday or 5% of the initial Benefit Amount if the older Owner is 60 or older at the rider's effective date The Lifetime Benefit Payment is the amount guaranteed to be available for withdrawal each Contract Year until the first death of any Owner (even if the Contract Value is reduced to zero). We support this payment through our General Account which is subject to our claims paying ability and other liabilities as a company. The Lifetime Benefit Payment can be taken on any payment schedule that you request. Lifetime Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value. Each Lifetime Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your Lifetime Benefit Payment include any applicable Contingent Deferred Sales Charge. Whenever a Surrender is taken after the Contract Anniversary immediately following the older Owner's 60th Birthday, the Lifetime Benefit Payment will be equal to the amount determined in either (A), (B) or (C) as follows: A. If total Surrenders since the most recent Contract Anniversary are equal to or less than the Lifetime Benefit Payment, the Lifetime Benefit Payment is equal to the Lifetime Benefit Payment immediately prior to the Surrender. B. If total Surrenders since the most recent Contract Anniversary exceed the Lifetime Benefit Payment as a result of enrollment in our Automatic Income program to satisfy Required Minimum Distributions, the provisions of (A) will apply. C. If total Surrenders since the most recent Contract Anniversary are more than the Lifetime Benefit Payment and the Required Minimum Distribution exception in (B) does not apply, the Lifetime Benefit Payments will be re-calculated to equal the Benefit Amount immediately following the partial Surrender multiplied by 5%. If you choose an amount less than the Lifetime Benefit Payment in any Contract Year, the remaining annual Lifetime Benefit Payment cannot be carried forward to the next Contract Year. Lifetime Benefit Payments will be available until the first death of any Owner. If the Contract Value is reduced to zero, Lifetime Benefit Payments will automatically continue under this Fixed Lifetime and Period Certain Annuity Payout. If you make a subsequent Premium Payment after the Contract Anniversary immediately following the older Owner's 60th birthday, the Lifetime Benefit Payment will be re-calculated to equal 5% of the Benefit Amount after the subsequent Premium Payment is made. If Surrenders are not taken prior to the Contract Anniversary immediately following the older Owner's 60th birthday, the Lifetime Benefit Payment will equal the Benefit Payment. If Surrenders are taken prior to the Contract Anniversary immediately following the older Owner's 60th birthday, the Lifetime Benefit Payment may be less than the Benefit Payment. If there is an increase in the Benefit Amount due to an automatic Benefit Amount increase on any Contract Anniversary after the older Owner's 60th birthday, we will automatically re-calculate the Lifetime Benefit Payment to equal the greater of the Lifetime Benefit Payment immediately prior to the increase or the Benefit Amount immediately after the increase multiplied by 5%. If a Surrender is less than or equal to the Lifetime Benefit Payment but results in the Contract Value remaining after such Surrender to be less than our minimum amount rules then in effect, we will not terminate the Contract under our minimum amount rules. However, if the Contract Value remaining after any Surrender is less than our minimum amount rules then in effect and the Benefit Amount and your Lifetime Benefit Payments have been reduced to zero, we may terminate the Contract and pay the Surrender Value. IS THIS RIDER DESIGNED TO PAY YOU DEATH BENEFITS? Yes. This rider includes a Guaranteed Minimum Death Benefit that replaces the standard Death Benefit. The GMDB is equal to the greater of the Benefit Amount or the Contract Value IF the Contract Value is greater than zero. APP C-4 ------------------------------------------------------------------------------- The Death Benefit is payable at the first death of an Owner or Annuitant. We will pay to the Beneficiary the greater of the Benefit Amount or the Contract Value (as long as the Contract Value is greater than zero) as of the date due proof of death is received by us. If the Contract Value is zero as of the date of due proof of death, there will be no Death Benefit. Otherwise, the Death Benefit will fluctuate based on the Benefit Amount as reduced by Surrenders, Withdrawal Benefits and expenses as discussed above. DOES THIS RIDER REPLACE STANDARD DEATH BENEFITS? Yes. This rider replaces the standard Death Benefit. This rider can be elected along with MAV Plus. CAN YOU REVOKE THIS RIDER? No. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. WHAT EFFECT DO FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value at the time you request a Surrender with any applicable charges deducted and not the Benefit Amount, Lifetime Benefit Payment or the Benefit Payment amount you would have received under this rider. If you still have a Benefit Amount or Lifetime Benefit Payment Amount after you Surrender all of your Contract Value (following the provisions or the rider) or your Contract Value is reduced to zero, we will issue a payout annuity. If the Owner is a natural person we will treat the Owners(s) as the Annuitant for purposes of this annuity. If there is more than one Annuitant, the annuity will be on a first-to-die basis (joint and 0% survivor annuity). You may elect to have the Benefit Amount or Lifetime Benefit Payment paid to you under either the Fixed Period Certain Annuity Payout or the Fixed Lifetime and Period Certain Annuity Payout Option. The election is irrevocable. Subject to our approval, which approval may be withheld or delayed for any reason, you may elect to defer the Annuity Commencement Date until you are eligible for the Fixed Lifetime and Period Certain Annuity Payout. If your Benefit Payment or your Lifetime Benefit Payment on your most recent Contract Anniversary exceeds the Annual Withdrawal Amount, we will waive any applicable Contingent Deferred Sales Charge for withdrawals up to that Benefit Payment amount. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? Any ownership change made prior to the first anniversary of the rider effective date will have no impact on the Benefit Amount, but the Lifetime Benefit Payment may change as long as the new Owner(s) and Annuitant are less than age 76 at the time of the change. The Lifetime Benefit Payment may change based on the age of the new owner. An ownership change after the first Contract Anniversary that causes a re-calculation in the benefits as long as the older Owner after the change is less than age 76 at the time of the change will automatically result in either (A) or (B): (A) If this rider is not currently available for sale, we will continue the existing rider for the GMDB only and the Withdrawal Benefit will terminate. This rider charge will then discontinue. (B) If this rider is currently available for sale, we will continue the existing rider with respect to all benefits at your current charge. The Benefit Amount will be re-calculated to the lesser of the Contract Value or the Benefit Amount on the date of the change. The Benefit Payment and Lifetime Benefit Payment will be re-calculated on the date of the change. If the older Owner is age 76 or greater at the time of an ownership change, this rider will continue with respect to the GMDB only and the Withdrawal Benefit will terminate. The GMDB will be modified to equal Contract Value only and the Rider charge will discontinue. CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? Yes. If the Owner dies and the Beneficiary is the deceased Owner's Spouse at the time of death, the Spouse may continue the Contract and we will adjust the Contract Value to the amount we would have paid as a Death Benefit payment (the greater of the Contract Value and the Benefit Amount). If the Spouse elects to continue the Contract and is less than age 76 at the time of the continuation, then either (A) or (B) will automatically apply: (A) If this rider is not currently available for sale, we will continue the existing The Hartford's Lifetime Income Builder for the GMDB only and the Withdrawal Benefit will terminate and the rider charge will discontinue. (B) If this rider is currently available for sale, we will continue the existing rider with respect to all benefits at the current charge. The Benefit Amount and Maximum Contract Value will be re-calculated to the Contract Value on the continuation date. The Benefit Payments and Lifetime Benefit Payments will be re-calculated on the continuation date. APP C-5 ------------------------------------------------------------------------------- If the Spouse elects to continue the Contract and is age 76 or greater at the time of the continuation, this rider will continue with respect to the GMDB only and the Withdrawal Benefits will terminate. The GMDB will be modified to equal Contract Value only and the rider charge will discontinue. Spousal Contract continuation will only apply one time for each Contract. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? If you annuitize your Contract, you may choose any of those Annuity Payout Options offered in the Contract. The amount used for calculating Annuity Payout Options will be the Contract Value. In other words, you will forfeit any difference between your Contract Value and Benefit Amount by voluntarily annuitizing before the maximum Annuity Commencement Date. If the annuity reaches the maximum Annuity Commencement Date the Contract will automatically be annuitized unless we and the Owner(s) agree to extend the Annuity Commencement Date, which approval may be withheld or delayed for any reason. In this circumstance, the Contract may be annuitized under our standard annuitization rules or, alternatively, under The Hartford's Lifetime Income Builder rules applicable when the Contract Value equals zero. - FIXED PERIOD CERTAIN PAYOUT OPTION If your Contract Value goes to zero, you are entitled to receive payments in a fixed dollar amount for a stated number of years. The actual number of years that payments will be made is determined by dividing the Benefit Amount by the Benefit Payment. The total amount payable under this Annuity Payout Option will equal the Benefit Amount. This annualized amount will be paid over the determined number of years. The frequency of payments you may elect will be among those offered by us at that time but will be no less frequently than annually. The amount payable in the final year of payments may be less than the prior year's annual amount payable so that the total amount of the payouts will be equal to the Benefit Amount. If, at the death of the any Annuitant, payments have been made for less than the stated number of years, the remaining scheduled payments will be made to the Beneficiary as scheduled payments in accordance with the Code and the Owner's last instructions on record. - FIXED LIFETIME AND PERIOD CERTAIN PAYOUT OPTION If your Contract Value goes to zero and the Owner(s) are alive and age 60 or older, you are entitled to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a minimum number of years. The minimum number of years that payments will be made is determined on the Annuity Calculation Date by dividing the Benefit Amount by the Lifetime Benefit Payment. The total minimum amount payable under this option will equal the Benefit Amount. This Lifetime Benefit Payment amount will be paid over the greater of the minimum number of years, or until the death of any Annuitant. The frequency of payments you may elect will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the minimum number of years, the remaining scheduled payments will be made to the Beneficiary as scheduled payments in accordance with the Code and the Owner's last instructions on record. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? We reserve the right to limit the Sub-Accounts into which you may allocate your Contract Value on and after the ownership change effective date. We may prohibit investment in any Sub-Account, require you to allocate your Contract Value in one of a number of asset allocation models, investment programs or fund-of-funds Sub-Accounts. If you violate the restrictions, then this rider, its benefits and its charges will terminate. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? No. CAN WE AGGREGATE CONTRACTS? For purposes of determining the Benefit Amount under this rider, we reserve the right to treat one or more Contracts issued by us to you with any optional Withdrawal Benefit rider in the same calendar year as one Contract. Accordingly, if we elect to aggregate Contracts, we will change the period over which we measure withdrawals against the Benefit Payment. OTHER INFORMATION For examples of how this rider works, see "Appendix I." This rider may not be appropriate for all investors. Several factors, among others, should be considered: - This rider is no longer actively marketed and is not available in any State where The Hartford's Lifetime Income Builder II is approved for sale. - The benefits under this rider cannot be directly or indirectly assigned, pledged, collateralized or securitized in any way. Any such actions will invalidate this rider. APP C-6 ------------------------------------------------------------------------------- - Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use. For instance, if you deplete your Benefit Amount through Surrenders, whether voluntarily or as a result of Required Minimum Distributions, you will reduce your Death Benefit. If your Contract Value is zero as of the date of due proof of death, there will be no Death Benefit. This may be of special concern to seniors. - Inasmuch as Withdrawal Benefits may reduce or eliminate the GMDB, electing this rider as part of an investment program involving a qualified plan may not make sense unless, for instance, other features of this Contract such as Withdrawal Benefits and access to Funds, outweigh the absence of additional tax advantages from a variable annuity. - Annuitizing your Contract, whether voluntarily or not, will impact these benefits. First, annuitization shall eliminate the Guaranteed Minimum Death Benefit. Second, annuitization will terminate any Withdrawal Benefits which will be converted into annuity payments according to the annuitization option chosen. Accordingly, Lifetime Benefit Payments could be replaced by another "lifetime" payout option and will not be subject to automatic Benefit Amount increases. - Even though this rider is designed to provide "living benefits," you should not assume that you will necessarily receive "payments for life" if you have violated any of the terms of this rider. - Purchasing this rider is a one time only event and cannot be undone later. If you elect this rider you will not be able to elect standard Death Benefits or optional riders other than MAV Plus. - Any additional contributions made to your Contract after withdrawals have begun will cause the Benefit Amount to be recalculated. If an additional contribution is made, the Benefit Amount will be recalculated to equal the remaining Benefit Amount plus the additional contribution, which could be more or less than the original Benefit Amount and could change the amount of your Benefit Payments or Lifetime Benefit Payments, as the case may be. - Spouses who are not a joint Owner or Beneficiary may find continuation of this rider to be unavailable or unattractive after the death of the Owner-Spouse. Continuation of the options available in this rider is dependent upon its availability at the time of death of the first Owner-Spouse and will be subject to then prevailing charges. - Certain ownership changes may result in a reduction of benefits. - Annuitizing your Contract instead of receiving Benefit Payments or Lifetime Benefit Payments will forfeit any increases in your Benefit Amount over your Contract Value. Voluntary or involuntary annuitization will terminate Lifetime Benefit Payments. Annuity Payout Options available subsequent to the Annuity Commencement Date may not necessarily provide a stream of income for your lifetime and may be less than Lifetime Benefit Payments. - Finally, we may increase the charge for this rider on or after the fifth Contract Anniversary or five years since your last increase notification, whichever is later. - There are no assurances made or implied that automatic Benefit Amount increases will occur and if occurring, will be predictable. - The fee for this rider may increase if and when automatic Benefit Amount increases take place. There are no assurances as to the fee we will be charging at the time of each automatic Benefit Amount increase. APP D-1 ------------------------------------------------------------------------------- APPENDIX D -- EXCHANGE PROGRAMS TABLE OF CONTENTS
PAGE -------------------------------------------------------------------------------- A. The Hartford's Lifetime Income Builder Conversion Program APP D-2 B. The Hartford's Lifetime Income Builder Selects and The Hartford's APP D-9 Lifetime Income Builder Portfolios Conversion Program C. The Hartford's Lifetime Income Builder Selects and The Hartford's APP D-11 Lifetime Income Builder Portfolios
APP D-2 ------------------------------------------------------------------------------- A. THE HARTFORD'S LIFETIME INCOME BUILDER CONVERSION PROGRAM We are offering Eligible Contract Owners (as defined below) the opportunity to exchange The Hartford's Lifetime Income Builder rider for The Hartford's Lifetime Income Builder II. The availability of the conversion program is at the discretion of the Company and will discontinue once The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios are approved in your state. You should convert your rider only if it is appropriate for your needs and financial considerations. Please read the prospectus carefully and discuss this conversion with your Registered Representative prior to converting. I. WHO IS ELIGIBLE TO PARTICIPATE IN THIS CONVERSION PROGRAM? This exchange program is available to Contract Owners who meet ALL of the following qualifications ("Eligible Contract Owners"): - You must: - own an annuity contract (including any proprietary versions) ("Eligible Contract") as of the conversion date (defined below); - have chosen The Hartford's Lifetime Income Builder rider at the time of purchase; and - be a customer of a financial intermediary that is currently authorized to sell Hartford Life and Annuity Insurance Company or Hartford Life Insurance Company variable annuity Contracts that includes The Hartford's Lifetime Income Builder II optional benefit. - You must not: - be age 76 or older as of the conversion date (including any other Covered Life); II. WHAT ARE KEY DIFFERENCES BETWEEN THE HARTFORD'S LIFETIME INCOME BUILDER AND THE HARTFORD'S LIFETIME INCOME BUILDER II? - The chart below describes some key differences between The Hartford's Lifetime Income Builder and The Hartford's Lifetime Income Builder II and the meaning upon conversion. See Section III for additional considerations.
THE HARTFORD'S LIFETIME THE HARTFORD'S LIFETIME FEATURE INCOME BUILDER II INCOME BUILDER ---------------------------------------------------------------------------------------------------------------------------- FEE Currently equal to 0.40% of Payment Currently equal to 0.40% of Benefit Base. Maximum fee is 0.75%. WITHDRAWALS Amount. Maximum fee is 0.75%. THAT DO NOT EXCEED THE LIFETIME BENEFIT WITHDRAWALS REDUCE THE BENEFIT AMOUNT PAYMENT DO NOT REDUCE THE PAYMENT BASE AND STEP UPS MAY INCREASE THE BENEFIT AND STEP-UPS INCREASE THE PAYMENT BASE; AMOUNT; THEREFORE THE VALUE THAT THE THEREFORE THE VALUE THAT THE 0.40% FEE 0.40% FEE IS APPLIED TO CAN CHANGE OVER IS APPLIED TO CAN CHANGE OVER TIME. TIME. RELEVANT COVERED LIFE The governing life for determining the N/A living benefits provided under the rider BENEFIT AMOUNT N/A (Refer to Payment Base) 100% of premium when added at issue PAYMENT BASE UPON CONVERSION: N/A (Refer to Benefit Amount) - Payment Base will be equal to the Contract Value on the conversion date - PAYMENT BASE MAY BE LESS THAN BENEFIT AMOUNT DEATH BENEFIT UPON CONVERSION: Death Benefit will be Greater of Contract Value or Benefit equal to the Contract Value on the Amount conversion date. If MAV or MAV plus was previously elected, there will be no change to these values BENEFIT PAYMENT/THRESHOLD Allows up to a 5% withdrawal (Single Allows up to a 5% withdrawal of the Life), or 4.5% withdrawal (Joint Life) initial Benefit Amount per year prior to of the Payment Base per year prior to age 60 adjusted for Withdrawals and age 60 adjusted for Withdrawals and Automatic Benefit Amount increases Automatic Payment Base increases
APP D-3 -------------------------------------------------------------------------------
THE HARTFORD'S LIFETIME THE HARTFORD'S LIFETIME FEATURE INCOME BUILDER II INCOME BUILDER ---------------------------------------------------------------------------------------------------------------------------- LIFETIME BENEFIT PAYMENT - The Lifetime Benefit Payment will be - The Lifetime Benefit Payment is equal to the Payment Base multiplied by initially set to equal the initial the applicable Withdrawal Percent (4.5 - Benefit Amount multiplied by 5% 7% depending on Relevant Covered Life's - Available at issue if the oldest Owner attained age as of first Surrender and is age 60 or older whether the Single Life or Joint Life - Available after the Contract Option is selected.) Anniversary immediately following the - Allows you to withdraw on each oldest Owners' 60th birthday if at issue Contract up to the greater of Payment the age of the oldest owner is under 60 Base or Contract Value on the anniversary multiplied by the Withdrawal Percentage per year once the amount is established AUTOMATIC BENEFIT AMOUNT / PAYMENT BASE Automatic Payment Base increases will Automatic Benefit Amount increases INCREASES cease upon the earlier of the Annuity continue until the earlier of the Commencement Date or the Contract Contract Anniversary immediately Anniversary immediately following the following the older Owner's or Relevant Covered Life's attained age of Annuitant's 75th birthday or the or the 80 Annuity Commencement Date NON-EXCESSIVE PARTIAL SURRENDERS Withdrawals within the Lifetime Benefit Withdrawals within the Lifetime Benefit Payment do not reduce the Payment Base. Payment or Benefit Payment reduce the Withdrawals within the Threshold reduce Benefit Amount by the amount of the the Payment Base by the amount of partial surrender partial surrender EXCESSIVE PARTIAL SURRENDERS Withdrawals IN EXCESS of the Lifetime Withdrawals IN EXCESS of the Lifetime Benefit Payment or Threshold will reduce Benefit Payment or Benefit Payment will the Payment Base in proportion to the reduce the Benefit Amount to the minimum reduction in Contract Value due to such of Contract Value immediately following Surrender the partial Surrender; or the Benefit Amount immediately prior to the partial Surrender, less the amount of partial Surrender EXCESSIVE PARTIAL SURRENDERS & THE DEATH Withdrawals IN EXCESS of the Lifetime Withdrawals IN EXCESS of the Lifetime BENEFIT Benefit Payment or Threshold will reduce Benefit Payment or Benefit Payment will the Death Benefit in proportion to the reduce the Death Benefit to the minimum reduction in Contract Value due to such of Contract Value immediately following Surrender the partial Surrender; or the Benefit Amount immediately prior to the partial Surrender, less the amount of partial Surrender SUBSEQUENT PAYMENT LIMITATION None We reserve the right to approve subsequent Premium Payments after the first 12 months Subsequent Premium Payments with a cumulative total of $100,000 or greater require prior approval by the Company. This restriction is not currently enforced. JOINT OWNERSHIP Rider may be elected as a Single Life Single Life only Option or Joint Life Option
STATE VARIATIONS. THE FOREGOING DISCUSSION DOES NOT TAKE INTO CONSIDERATION STATE VARIATIONS, IF ANY. DEFINITIONS. ALL INITIAL CAPITALIZED TERMS SHALL HAVE SUCH MEANING AS PROVIDED IN YOUR PROSPECTUS. APP D-4 ------------------------------------------------------------------------------- III. OTHER KEY CONSIDERATIONS. - THIS CONVERSION OFFER IS DESIGNED FOR CONTRACT OWNERS THAT INTEND TO DEFER TAKING PARTIAL SURRENDERS IN ORDER TO INCREASE THE WITHDRAWAL PERCENT AVAILABLE TO SET LIFETIME BENEFIT PAYMENTS AND WHO OTHERWISE SEEK THE ADDED FLEXIBILITY OF PROVIDING POTENTIAL LIFETIME WITHDRAWALS FOR THEIR SPOUSE. THIS CONVERSION MAY NOT BE SUITABLE FOR ANYONE WHO MAY BE ANTICIPATING AN IMMINENT CHANGE IN THE RELEVANT COVERED LIFE OR ANY OTHER PERTINENT CONTRACT PARTIES. - LIFETIME BENEFIT PAYMENTS WILL NOT NECESSARILY BE THE SAME AS, OR HIGHER THAN, BENEFIT PAYMENTS OR LIFETIME BENEFIT PAYMENTS AVAILABLE UNDER THE HARTFORD'S LIFETIME INCOME BUILDER. WITHDRAWALS FROM THE LIFETIME INCOME BUILDER II RIDER MAY AFFECT THE GUARANTEES IF THE RELEVANT COVERED LIFE IS AGE 60 OR YOUNGER. - LIFETIME BENEFIT PAYMENTS UNDER THE HARTFORD'S LIFETIME INCOME BUILDER II DO NOT REDUCE THE PAYMENT BASE; THEREFORE THE FEE OF 0.40% OF PAYMENT BASE WILL NEVER BE APPLIED TO AN AMOUNT LESS THAN YOUR INITIAL PAYMENT BASE. HOWEVER, IN THE EVENT THAT AN EXCESS WITHDRAWAL IS TAKEN, OR A WITHDRAWAL IS MADE IN A NON-ELIGIBLE WITHDRAWAL YEAR, THE PAYMENT BASE WILL BE REDUCED BY THE METHODS DESCRIBED IN YOUR PROSPECTUS. - After the conversion date, your death benefit will no longer be The Hartford's Lifetime Income Builder Guaranteed Minimum Death Benefit. Your new death benefit will be your Contract Value on the conversion date. If you previously elected the optional death benefits MAV or MAV Plus, there will be no change to your death benefit. YOUR DEATH BENEFIT MAY BE REDUCED IF AS OF THE CONVERSION DATE YOUR CONTRACT VALUE AND PREMIUM PAYMENTS ARE LESS THAN YOUR BENEFIT AMOUNT. - You should discuss with your registered representative whether or not converting your rider is suitable for you and your particular needs, investment horizon and financial plans. YOU SHOULD DISCUSS YOUR PARTICULAR CIRCUMSTANCES AND THE TAX CONSEQUENCES OF THIS CONVERSION WITH YOUR TAX ADVISER, AS WE MAKE NO REPRESENTATION REGARDING THE TAX CONSEQUENCES OF AN EXCHANGE OF THESE RIDERS. - Please read your prospectus carefully and particularly the description of each rider and Appendix B -- Optional Benefits Comparison for a more complete description of the differences between The Hartford's Lifetime Income Builder and The Hartford's Lifetime Income Builder II. - We are not obligated to offer rider exchange privileges if and once this offer is withdrawn. - This offer is not available through all broker/dealers. - Your annuitization options for each rider may differ and your guarantee period under The Hartford's Lifetime Income Builder II may be less than under The Hartford's Lifetime Income Builder. If you select The Hartford's Lifetime Income Builder II Joint Life Option, the payment will be based on both Covered Lives. Please refer to your prospectus for details. IV. HOW DOES THE EXCHANGE PROCESS WORK? - You must complete The Hartford's Lifetime Income Builder Conversion Program Form to exchange your The Hartford's Lifetime Income Builder rider. The date that you comply with all our requirements to exchange your existing The Hartford's Lifetime Income Builder rider ("conversion date") will be the date we use to set your benefits under your The Hartford's Lifetime Income Builder II rider. We will also use the conversion date for establishing your eligibility for this offer. - Except as modified by this election, your existing Contract and all other features and functions previously selected will be and remain in full force and effect. - You may not cancel your election after the conversion date. - A prorated final The Hartford's Lifetime Income Builder rider charge will be assessed as of the conversion date. You will not be charged for The Hartford's Lifetime Income Builder II until your first conversion date anniversary and each annual anniversary thereafter. There are no exchange or transfer fees associated with making this election. - Your Contract Value as of the conversion date will become your new Payment Base. IF YOUR BENEFIT AMOUNT UNDER THE HARTFORD'S LIFETIME INCOME BUILDER WAS HIGHER THAN YOUR CONTRACT VALUE, YOU WILL NOT RECEIVE THAT AMOUNT. - We will not provide any credit for the time that you owned The Hartford's Lifetime Income Builder rider. Therefore, annual automatic Payment Base increases will commence on conversion date anniversaries rather than Contract Anniversaries. - There are no additional cancellation privileges afforded to you by participating in this conversion program. - All joint Owners must consent to this conversion. APP D-5 -------------------------------------------------------------------------------- LIFETIME INCOME BUILDER The following example is intended to reflect the effect of positive market performance on The Hartford's Lifetime Income Builder Benefit Amount, Death Benefit, and Rider Fee, and on The Hartford's Lifetime Income Builder II Payment Base, Death Benefit, and Rider Fee.
AGE ACCOUNT BENEFIT GUARANTEED BOY RETURN VALUE BOY AMOUNT BOY WD ACTUAL WD ---------------------------------------------------------------------- 60 0.06 $100,000 $100,000 $5,000 $5,000 61 0.06 $100,317 $95,665 $5,000 $5,000 62 0.06 $100,673 $90,968 $5,000 $5,000 63 0.06 $101,068 $86,288 $5,000 $5,000 64 0.06 $101,505 $81,624 $5,000 $5,000 65 0.06 $101,988 $76,973 $5,000 $5,000 66 0.06 $102,518 $72,333 $5,000 $5,000 67 0.06 $103,098 $67,701 $5,000 $5,000 68 0.06 $103,731 $63,074 $5,000 $5,000 69 0.06 $104,422 $58,449 $5,000 $5,000 70 0.06 $105,172 $53,822 $5,000 $5,000 71 0.06 $105,985 $49,191 $5,000 $5,000 72 0.06 $106,866 $44,550 $5,000 $5,000 73 0.06 $107,818 $39,895 $5,000 $5,000 74 0.06 $108,847 $35,221 $5,000 $5,000 75 0.06 $109,955 $30,523 $5,000 $5,000 76 0.06 $111,149 $25,796 $5,000 $5,000 77 0.06 $112,435 $20,796 $5,000 $5,000 78 0.06 $113,818 $15,796 $5,000 $5,000 79 0.06 $115,304 $10,796 $5,000 $5,000 80 0.06 $116,899 $5,796 $5,000 $5,000 81 0.06 $118,610 $796 $5,000 $5,000 82 0.06 $120,426 $0 $5,000 $5,000 83 0.06 $122,352 $0 $5,000 $5,000 84 0.06 $124,393 $0 $5,000 $5,000 85 0.06 $126,557 $0 $5,000 $5,000 AGE BENEFIT DEATH BENEFIT ACCOUNT BOY AMOUNT EOY EOY VALUE EOY FEE --------- ---------------------------------------------- 60 $95,665 $95,665 $100,700 $383 61 $90,968 $90,968 $101,036 $364 62 $86,288 $86,288 $101,413 $345 63 $81,624 $81,624 $101,832 $326 64 $76,973 $76,973 $102,296 $308 65 $72,333 $72,333 $102,807 $289 66 $67,701 $67,701 $103,369 $271 67 $63,074 $63,074 $103,984 $252 68 $58,449 $58,449 $104,655 $234 69 $53,822 $53,822 $105,387 $215 70 $49,191 $49,191 $106,182 $197 71 $44,550 $44,550 $107,044 $178 72 $39,895 $39,895 $107,978 $160 73 $35,221 $35,221 $108,987 $141 74 $30,523 $30,523 $110,077 $122 75 $25,796 $25,796 $111,253 $103 76 $20,796 $20,796 $112,518 $83 77 $15,796 $15,796 $113,881 $63 78 $10,796 $10,796 $115,347 $43 79 $5,796 $5,796 $116,922 $23 80 $796 $796 $118,613 $3 81 $0 $0 $120,426 $0 82 $0 $0 $122,352 $0 83 $0 $0 $124,393 $0 84 $0 $0 $126,557 $0 85 $0 $0 $128,850 $0
ASSUMPTIONS: LEGEND: -------------------------------------------------------------------------------------------- Age 60 BOY Beginning of Year Annual withdrawals taken, within limit EOY End of Year Market Performance = Annual 6% Gain WD Withdrawal
APP D-6 -------------------------------------------------------------------------------- LIFETIME INCOME BUILDER II The following example is intended to reflect the effect of positive market performance on The Hartford's Lifetime Income Builder Benefit Amount, Death Benefit, and Rider Fee, and on The Hartford's Lifetime Income Builder II Payment Base, Death Benefit, and Rider Fee.
AGE ACCOUNT PAYMENT GUARANTEED MAXIMUM BOY RETURN VALUE BOY BASE BOY WD WD -------------------------------------------------------------------- 60 0.06 $100,000 $100,000 $5,000 $5,000 61 0.06 $100,297 $100,700 $5,035 $5,035 62 0.06 $100,611 $101,015 $5,051 $5,051 63 0.06 $100,942 $101,348 $5,067 $5,067 64 0.06 $101,292 $101,699 $5,085 $5,085 65 0.06 $101,661 $102,069 $5,103 $5,103 66 0.06 $102,051 $102,461 $5,123 $5,123 67 0.06 $102,463 $102,874 $5,144 $5,144 68 0.06 $102,897 $103,310 $5,166 $5,166 69 0.06 $103,356 $103,771 $5,189 $5,189 70 0.06 $103,840 $104,257 $5,213 $5,213 71 0.06 $104,352 $104,771 $5,239 $5,239 72 0.06 $104,891 $105,313 $5,266 $5,266 73 0.06 $105,461 $105,885 $5,294 $5,294 74 0.06 $106,063 $106,489 $5,324 $5,324 75 0.06 $106,698 $107,127 $5,356 $5,356 76 0.06 $107,369 $107,800 $5,390 $5,390 77 0.06 $108,077 $108,511 $5,426 $5,426 78 0.06 $108,825 $109,262 $5,463 $5,463 79 0.06 $109,614 $110,054 $5,503 $5,503 80 0.06 $110,447 $110,891 $5,545 $5,545 81 0.06 $111,330 $110,891 $5,545 $5,567 82 0.06 $112,267 $110,891 $5,545 $5,613 83 0.06 $113,259 $110,891 $5,545 $5,663 84 0.06 $114,311 $110,891 $5,545 $5,716 85 0.06 $115,426 $110,891 $5,545 $5,771 AGE PAYMENT DEATH ACCOUNT BOY ACTUAL WD BASE EOY BENEFIT EOY VALUE EOY FEE ------- ------------------------------------------------------- 60 $5,000 $100,000 $95,000 $100,700 $403 61 $5,000 $100,700 $90,000 $101,015 $404 62 $5,000 $101,015 $85,000 $101,348 $405 63 $5,000 $101,348 $80,000 $101,699 $407 64 $5,000 $101,699 $75,000 $102,069 $408 65 $5,000 $102,069 $70,000 $102,461 $410 66 $5,000 $102,461 $65,000 $102,874 $411 67 $5,000 $102,874 $60,000 $103,310 $413 68 $5,000 $103,310 $55,000 $103,771 $415 69 $5,000 $103,771 $50,000 $104,257 $417 70 $5,000 $104,257 $45,000 $104,771 $419 71 $5,000 $104,771 $40,000 $105,313 $421 72 $5,000 $105,313 $35,000 $105,885 $424 73 $5,000 $105,885 $30,000 $106,489 $426 74 $5,000 $106,489 $25,000 $107,127 $429 75 $5,000 $107,127 $20,000 $107,800 $431 76 $5,000 $107,800 $15,000 $108,511 $434 77 $5,000 $108,511 $10,000 $109,262 $437 78 $5,000 $109,262 $5,000 $110,054 $440 79 $5,000 $110,054 $0 $110,891 $444 80 $5,000 $110,891 $0 $111,774 $444 81 $5,000 $110,891 $0 $112,710 $444 82 $5,000 $110,891 $0 $113,703 $444 83 $5,000 $110,891 $0 $114,755 $444 84 $5,000 $110,891 $0 $115,870 $444 85 $5,000 $110,891 $0 $117,052 $444
ASSUMPTIONS: LEGEND: --------------------------------------------------------------------------------------- Age 60 BOY Beginning of Year Annual withdrawals taken, within limit EOY End of Year Market Performance = Annual 6% Gain WD Withdrawal
APP D-7 -------------------------------------------------------------------------------- LIFETIME INCOME BUILDER The following table is intended to reflect the effect of negative market performance on The Hartford's Lifetime Income Builder Benefit Amount Death Benefit and Rider Fee, and on The Hartford's Lifetime Income Builder II Payment Base, Death Benefit and Rider Fee.
AGE ACCOUNT BENEFIT GUARANTEED BOY RETURN VALUE BOY AMOUNT BOY WD ACTUAL WD ----------------------------------------------------------------------------------- 60 -0.06 $100,000 $100,000 $5,000 $5,000 61 -0.06 $88,920 $95,000 $5,000 $5,000 62 -0.06 $78,525 $90,000 $5,000 $5,000 63 -0.06 $68,773 $85,000 $5,000 $5,000 64 -0.06 $59,627 $80,000 $5,000 $5,000 65 -0.06 $51,049 $75,000 $5,000 $5,000 66 -0.06 $43,006 $70,000 $5,000 $5,000 67 -0.06 $35,466 $65,000 $5,000 $5,000 68 -0.06 $28,398 $60,000 $5,000 $5,000 69 -0.06 $21,774 $55,000 $5,000 $5,000 70 -0.06 $15,568 $50,000 $5,000 $5,000 71 -0.06 $9,754 $45,000 $5,000 $5,000 72 -0.06 $4,308 $40,000 $5,000 $5,000 73 -0.06 $0 $35,000 $5,000 $5,000 74 -0.06 $0 $30,000 $5,000 $5,000 75 -0.06 $0 $25,000 $5,000 $5,000 76 -0.06 $0 $20,000 $5,000 $5,000 77 -0.06 $0 $15,000 $5,000 $5,000 78 -0.06 $0 $10,000 $5,000 $5,000 79 -0.06 $0 $5,000 $5,000 $5,000 80 -0.06 $0 $0 $5,000 $5,000 81 -0.06 $0 $0 $5,000 $5,000 82 -0.06 $0 $0 $5,000 $5,000 83 -0.06 $0 $0 $5,000 $5,000 84 -0.06 $0 $0 $5,000 $5,000 85 -0.06 $0 $0 $5,000 $5,000 DEATH BENEFIT AGE BENEFIT EOY = BA ACCOUNT BOY AMOUNT EOY EOY VALUE EOY FEE --------- ------------------------------------------------------------------ 60 $95,000 $95,000 $89,300 $380 61 $90,000 $90,000 $78,885 $360 62 $85,000 $85,000 $69,113 $340 63 $80,000 $80,000 $59,947 $320 64 $75,000 $75,000 $51,349 $300 65 $70,000 $70,000 $43,286 $280 66 $65,000 $65,000 $35,726 $260 67 $60,000 $60,000 $28,638 $240 68 $55,000 $55,000 $21,994 $220 69 $50,000 $50,000 $15,768 $200 70 $45,000 $45,000 $9,934 $180 71 $40,000 $40,000 $4,468 $160 72 $35,000 $35,000 $0 $0 73 $30,000 $30,000 $0 $0 74 $25,000 $25,000 $0 $0 75 $20,000 $20,000 $0 $0 76 $15,000 $15,000 $0 $0 77 $10,000 $10,000 $0 $0 78 $5,000 $5,000 $0 $0 79 $0 $0 $0 $0 80 $0 $0 $0 $0 81 $0 $0 $0 $0 82 $0 $0 $0 $0 83 $0 $0 $0 $0 84 $0 $0 $0 $0 85 $0 $0 $0 $0
ASSUMPTIONS: LEGEND: --------------------------------------------------------------------------------------- Age 60 BOY Beginning of Year Annual withdrawals taken, within limit EOY End of Year Market Performance = Annual 6% Loss WD Withdrawal
APP D-8 -------------------------------------------------------------------------------- LIFETIME INCOME BUILDER II The following example is intended to reflect the effect of negative market performance on The Hartford's Lifetime Income Builder Benefit Amount, Death Benefit, and Rider Fee, and on The Hartford's Lifetime Income Builder II Payment Base, Death Benefit, and Rider Fee.
AGE ACCOUNT PAYMENT GUARANTEED MAXIMUM BOY RETURN VALUE BOY BASE BOY WD WD ------------------------------------------------------------------ 60 -0.06 $100,000 $100,000 $5,000 $5,000 61 -0.06 $88,900 $100,000 $5,000 $5,000 62 -0.06 $78,466 $100,000 $5,000 $5,000 63 -0.06 $68,658 $100,000 $5,000 $5,000 64 -0.06 $59,439 $100,000 $5,000 $5,000 65 -0.06 $50,772 $100,000 $5,000 $5,000 66 -0.06 $42,626 $100,000 $5,000 $5,000 67 -0.06 $34,968 $100,000 $5,000 $5,000 68 -0.06 $27,770 $100,000 $5,000 $5,000 69 -0.06 $21,004 $100,000 $5,000 $5,000 70 -0.06 $14,644 $100,000 $5,000 $5,000 71 -0.06 $8,665 $100,000 $5,000 $5,000 72 -0.06 $3,045 $100,000 $5,000 $5,000 73 -0.06 $0 $100,000 $5,000 $5,000 74 -0.06 $0 $100,000 $5,000 $5,000 75 -0.06 $0 $100,000 $5,000 $5,000 76 -0.06 $0 $100,000 $5,000 $5,000 77 -0.06 $0 $100,000 $5,000 $5,000 78 -0.06 $0 $100,000 $5,000 $5,000 79 -0.06 $0 $100,000 $5,000 $5,000 80 -0.06 $0 $100,000 $5,000 $5,000 81 -0.06 $0 $100,000 $5,000 $5,000 82 -0.06 $0 $100,000 $5,000 $5,000 83 -0.06 $0 $100,000 $5,000 $5,000 84 -0.06 $0 $100,000 $5,000 $5,000 85 -0.06 $0 $100,000 $5,000 $5,000 AGE PAYMENT DEATH ACCOUNT BOY ACTUAL WD BASE EOY BENEFIT EOY VALUE EOY FEE ------- ------------------------------------------------------- 60 $5,000 $100,000 $95,000 $89,300 $400 61 $5,000 $100,000 $90,000 $78,866 $400 62 $5,000 $100,000 $85,000 $69,058 $400 63 $5,000 $100,000 $80,000 $59,839 $400 64 $5,000 $100,000 $75,000 $51,172 $400 65 $5,000 $100,000 $70,000 $43,026 $400 66 $5,000 $100,000 $65,000 $35,368 $400 67 $5,000 $100,000 $60,000 $28,170 $400 68 $5,000 $100,000 $55,000 $21,404 $400 69 $5,000 $100,000 $50,000 $15,044 $400 70 $5,000 $100,000 $45,000 $9,065 $400 71 $5,000 $100,000 $40,000 $3,445 $400 72 $5,000 $100,000 $35,000 $0 $400 73 $5,000 $100,000 $30,000 $0 $0 74 $5,000 $100,000 $25,000 $0 $0 75 $5,000 $100,000 $20,000 $0 $0 76 $5,000 $100,000 $15,000 $0 $0 77 $5,000 $100,000 $10,000 $0 $0 78 $5,000 $100,000 $5,000 $0 $0 79 $5,000 $100,000 $0 $0 $0 80 $5,000 $100,000 $0 $0 $0 81 $5,000 $100,000 $0 $0 $0 82 $5,000 $100,000 $0 $0 $0 83 $5,000 $100,000 $0 $0 $0 84 $5,000 $100,000 $0 $0 $0 85 $5,000 $100,000 $0 $0 $0
ASSUMPTIONS: LEGEND: --------------------------------------------------------------------------------------- Age 60 BOY Beginning of Year Annual withdrawals taken, within limit EOY End of Year Market Performance = Annual 6% Loss WD Withdrawal
APP D-9 ------------------------------------------------------------------------------- B. THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS AND THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS CONVERSION PROGRAM We reserve the right, in our sole discretion, to offer Eligible Contract Owners the opportunity to exchange The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation for the currently issued version of either The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios subject to the terms and conditions below. The availability of the conversion program is at our discretion and may be withdrawn in whole, or in part, at any time without notice. The opportunity to convert your rider to The Hartford's Lifetime Income Builder Portfolios will expire 90 days after the effective date of this rider exchange program. You should convert your rider only if it is appropriate for your needs and financial considerations. Please read this prospectus carefully and discuss this conversion with your Registered Representative prior to electing to participate in this conversion program. I. WHO IS ELIGIBLE TO PARTICIPATE IN THIS CONVERSION PROGRAM? This conversion program is available to Owners who meet ALL of the following qualifications ("Eligible Contract Owners"): You must: - If electing The Hartford's Lifetime Income Builder Portfolios, you must have purchased a deferred individual annuity contract from us between 1/1/08 - 5/3/08 (or later if The Hartford's Lifetime Income Builder Portfolios was not approved in your state). If electing The Hartford's Lifetime Income Builder Selects, you must have purchased a deferred individual annuity contract from us after 11/01/05 (each, an "Eligible Contract"). You must still own such Contract as of the conversion date (defined below); and - Have previously elected The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation at the time of purchase or as a result of a Company-sponsored exchange program; and - Be a customer of a Financial Intermediary that has approved the sale of The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios; and - The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios are approved for sale in your state. You must not be age 81 or older as of the conversion date (including any other Covered Life). II. WHAT ARE KEY DIFFERENCES BETWEEN THE NEW RIDERS AND MY CURRENT RIDER? Please refer to Appendix B for a table describing some of the key differences between The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios. III. HOW DOES THE CONVERSION PROCESS WORK? - You must complete a Conversion Program Form to exchange your The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation rider. The date that you comply with all our requirements to exchange your existing rider ("conversion date") will be the date we use to set your benefits under your The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios rider selected. We will also use the conversion date for establishing your eligibility for this conversion program. Your request for conversion will not be in good order until the requisite fund transfers are made. - If you elect either The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios, you must abide by all restrictions applicable to these riders, including, but not limited to, investment restrictions described in this prospectus. - Except as modified by this election, your existing Contract and all other features and functions previously selected will be and remain in full force and effect after the conversion date. - You may not cancel your election after the conversion date. - A prorated final rider charge for your pre-conversion rider will be assessed as of the conversion date. There are no exchange or transfer fees associated with making this election. - Your Contract Value as of the conversion date will become your new Payment Base. YOUR PAYMENT BASE UNDER YOUR EXISTING RIDER WILL NOT CARRY OVER AS YOUR NEW PAYMENT BASE. APP D-10 ------------------------------------------------------------------------------- - Your Withdrawal Percent under The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios is based on the attained age of the relevant Covered Life on the effective date of the conversion. If the Withdrawal Percent had been locked in under The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation, it will be unlocked and reset upon conversion. - Your new death benefit will equal your Contract Value on the effective date of the conversion and thereafter will operate under the terms of the Guaranteed Minimum Death Benefit. CONVERSION OF YOUR RIDER MAY HAVE THE AFFECT OF REDUCING YOUR DEATH BENEFIT. - Your Lifetime Benefit Payment will be equal to your Payment Base multiplied by your Withdrawal Percent for the remainder of the rider year. Your Lifetime Benefit Payment will reset upon the next Contract Anniversary according to the terms of the rider you selected. - All Joint Owners and the Annuitant must consent to this conversion. - Any changes in Covered Lives will affect your benefits under your new riders. - The survivorship option selected under your existing riders may not be amended in connection with your exercising your conversion privileges. IV. WHAT OTHER THINGS SHOULD BE CONSIDERED? - YOUR PAYMENT BASE, GUARANTEED MINIMUM DEATH BENEFIT, AND LIFETIME BENEFIT PAYMENTS MAY BE LOWER AND RIDER CHARGES MAY BE HIGHER THAN, THOSE AVAILABLE UNDER YOUR CURRENT RIDER. - You should discuss with your Registered Representative whether or not converting your rider is suitable for you and your particular needs, investment horizon and financial plans. You should discuss your particular circumstances and the tax consequences of this conversion with your tax advisor, as we make no representation regarding the tax consequences of an exchange of these riders. - We are not obligated to offer rider conversion privileges if and once this offer is withdrawn. - These conversion privileges may not be available through all Financial Intermediaries. - For a comparison of the features of each rider, please see Appendix B, and read sections describing each rider below. APP D-11 ------------------------------------------------------------------------------- C. THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS AND THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS OBJECTIVE The objective of these two different riders is to (i) protect your investment from poor market performance; (ii) provide longevity protection through Lifetime Benefit Payments; and (iii) provide Death Benefit protection. HOW DO THE RIDERS HELP ACHIEVE THIS GOAL? - LIFETIME WITHDRAWAL FEATURE. Provided you follow the rules below, the riders provide a series of Lifetime Benefit Payments payable in each Contract Year following the Relevant Covered Life's Lifetime Income Eligibility Date until the first death of any Covered Life ("Single Life Option") or until the second death of any Covered Life ("Joint/Spousal Option"). Lifetime Benefit Payments are maximum amounts that can be withdrawn each year based on the rider chosen: Lifetime Income = Payment Base or Contract x Withdrawal Percent Builder Selects Value, whichever is higher - or - Lifetime Income = Payment Base x Withdrawal Percent Builder Portfolios
- GUARANTEED MINIMUM DEATH BENEFIT. This guaranteed minimum Death Benefit provides a Death Benefit equal to the greater of Premium Payments (adjusted for partial Surrenders) or Contract Value as of the date due proof of death is received by us for any Contract Owner or Annuitant. PARTIAL SURRENDERS WILL REDUCE OR ELIMINATE THE GUARANTEED MINIMUM DEATH BENEFIT. THIS GUARANTEED MINIMUM DEATH BENEFIT REPLACES THE STANDARD DEATH BENEFITS PROVIDED UNDER THIS CONTRACT. See Optional Benefit Comparisons in Appendix B. WHEN CAN YOU BUY THE RIDERS? Subject to state availability, you may elect either rider if you are eligible to participate in a designated Company sponsored exchange program. The benefits comprising either rider may not be purchased separately. The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios riders are sold separately. These riders may not be available through all Registered Representatives and may be subject to additional restrictions set by your Registered Representative or us. We reserve the right to withdraw either or both riders and any options at any time. When you buy either rider, you must provide us with the names and date of birth of the Owner, any joint Owner, Annuitant and Beneficiary. We then determine who the "Relevant Covered Life" and other "Covered Lives" will be when establishing the Withdrawal Percent. - A Covered Life must be a living person. If you choose the Joint/Spousal Option, we reserve the right to (a) prohibit non-natural entities from being designated as an Owner, (b) prohibit anyone other than your Spouse from being a joint Owner; and (c) impose other designation restrictions from time to time. - For the Single Life Option, the Covered Life is most often the same as the Contract Owner and joint Owner (which could be two different people). In the Joint/Spousal Option, the Covered Life is most often the Contract Owner, and his or her Spouse is the joint Owner or Beneficiary. - The Relevant Covered Life will be one factor used to establish your Withdrawal Percent. When the Single Life Option is chosen, we use the older Covered Life as the Relevant Covered Life; and when the Joint/Spousal Option is chosen, we use the younger Covered Life as the Relevant Covered Life. The maximum age of any Contract Owner or Annuitant when electing either rider is 80. These age restrictions also apply to the Beneficiary when the Joint/Spousal Option is chosen. DOES ELECTING EITHER RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect either rider, you may not elect any rider other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR EITHER RIDER CALCULATED? The fee for the riders is based on your then current Payment Base (not your Contract Value) as of each Contract Anniversary. This charge will automatically be deducted from your Contract Value on your Contract Anniversary AFTER your Anniversary Value and Payment Base have been computed and prior to all other financial transactions. In the event of a full Surrender, a prorated charge will be deducted from your Surrender Value. The charge for the riders will be withdrawn from each Sub-Account and the Fixed Accumulation Feature in the same proportion that the value of each Sub-Account bears to the total Contract Value. Except as otherwise provided below, we will continue to deduct this charge until we begin to make Annuity Payouts. The rider charge may limit access to the Fixed Accumulation Feature in certain states. APP D-12 ------------------------------------------------------------------------------- We reserve the right to increase the charge for either or both riders (and any option) up to the maximum fees described in the Synopsis at any time 12 months after either riders' effective date. The fee increase will only apply if you are eligible for future automatic Payment Base and/or Withdrawal Percent increases. Any future fee increase will be based on the charge that we are then currently charging other customers who have not previously elected such rider. If we cease sales of either or both riders, we will predetermine the rider charge on a non-discriminatory basis. Fee increases will not apply if (a) the age of the Relevant Covered Life is 80 or older; (b) you notify us in writing of your election to permanently waive automatic Payment Base and Withdrawal Percent increases; or (c) we convert your benefits based on our Minimum Amount rules defined in your Contract. This fee may not be the same as the fee that we charge new purchasers or the fee we set before we cease offering either or both riders (or options). Subject to the foregoing limitation, we also reserve the right to charge a different fee for either rider (or options) to any new Contract Owners as a result of a change of Covered Life. Unless exempt, we will automatically deduct rider fees, as they may be increased from time to time. DOES THE PAYMENT BASE CHANGE UNDER EITHER RIDER? Yes, your initial Payment Base equals your initial Premium Payment except in regard to a company sponsored-exchange program. Your Payment Base will fluctuate based on: - automatic Payment Base increases; and - subsequent Premium Payments; and - partial Surrenders (including partial Surrenders taken prior to the Lifetime Income Eligibility Date or if the amount of the partial Surrender exceeds either your Threshold or Lifetime Benefit Payment amount). - Automatic Payment Base Increase: Your automatic annual Payment Base increase varies depending on whether you choose The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios. The following table describes how these options operate:
THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------------ New Payment Base [(current Anniversary Value (prior to the rider charge The higher of current Contract Value or Payment Base being taken) divided by your prior Payment Base)] multiplied by your prior Payment Base Annual Payment Base 0% - 10% Unlimited increase limits
We will determine if you are eligible for annual automatic Payment Base increases on each Contract Anniversary. Automatic Payment Base increases will cease upon the earliest of: - your Annuity Commencement Date; - the Contract Anniversary immediately following the Relevant Covered Life's attained age of 80; or - You waive your right to receive automatic Payment Base increases. Your Payment Base can never be less than $0 or more than $5 million. Any activities that would otherwise increase the Payment Base above this ceiling will not be included for any benefits under either rider. See Examples 16 and 17 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix I. - Subsequent Premium Payments increase your Payment Base on a dollar-for-dollar basis. See Examples 10 and 11 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix I. - Partial Surrenders may trigger a recalculation of the Payment Base depending on (a) whether the partial Surrender takes place prior to the Lifetime Income Eligibility Date, and (b) if the cumulative amount of all partial Surrenders during any Contract Year exceeds the applicable limits as discussed below: A. If cumulative partial Surrenders taken during any Contract Year and prior to the Lifetime Income Eligibility Date, are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Payment Base on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to the Lifetime Income Eligibility Date are greater than the Threshold (subject to rounding), then we will reduce the Payment Base on a (i) dollar-for-dollar basis up to the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. APP D-13 ------------------------------------------------------------------------------- B. If cumulative partial Surrenders taken after the Lifetime Income Eligibility Date are equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will not reduce the Payment Base. C. For any partial Surrender that causes cumulative partial Surrenders after the Lifetime Income Eligibility Date to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Payment Base on a proportionate basis for the amount in excess of the Lifetime Benefit Payment. See Examples 3-9 and 12-15 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix I - Covered Life changes may also trigger a recalculation of your Payment Base, Lifetime Benefit Payment, Guaranteed Minimum Death Benefit and rider fees. See "WHAT HAPPENS IF YOU CHANGE OWNERSHIP?" below. - Option Conversion. We reserve the right to offer a one-time only conversion from The Hartford's Lifetime Income Builder Selects to The Hartford's Lifetime Income Builder Portfolios, or vice versa, on or after the first Contract Anniversary after the rider has been in effect and prior to the Relevant Covered Life's reaching attained age 81. Your then current Payment Base will be your new Payment Base for the purposes of the converted rider. This conversion will go into effect on the next following Contract Anniversary. A conversion notice must be received by us in good order between 30 days prior to, or within 15 days after, a Contract Anniversary. This privilege may be withdrawn at our sole discretion at any time without prior notice. The rider fee and any associated restrictions will be based on the rider then in effect. You may rescind your election within 15 days after making your election. Upon rescission; however, your Payment Base will be reset at the LOWER of the then applicable Payment Base or the Contract Value at the time of rescission. RESCISSION OF A CONVERSION OPTION MAY THEREFORE RESULT IN A PERMANENT REDUCTION OF BENEFITS. Once rescinded, this privilege will be terminated. - Partial Surrenders taken during any Contract Year that cumulatively exceed the Annual Withdrawal Amount but do not exceed the Lifetime Benefit Payment will be free of any applicable CDSC. IS EITHER RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? Yes. However, withdrawals taken prior to the Lifetime Income Eligibility Date are not guaranteed to be available throughout your lifetime. Such withdrawals will reduce (and may even eliminate) the Payment Base otherwise available to establish Lifetime Benefit Payments and Guaranteed Minimum Death Benefits. As shown in the following table, the Withdrawal Percent for all partial Surrenders taken BEFORE the Lifetime Income Eligibility Date will be 5% (Single Life Option) or 4.5% (Joint/Spousal Option). In contrast, the Withdrawal Percent for partial Surrenders taken AFTER the Lifetime Income Eligibility Date will be based on the chronological age of the Relevant Covered Life at the time of the first withdrawal as shown below:
WITHDRAWAL PERCENT SINGLE LIFE JOINT/SPOUSAL RELEVANT COVERED LIFE ATTAINED AGE OPTION OPTION -------------------------------------------------------------------------------- [LESS THAN]59 1/2 - 64 5.0% 4.5% 65 - 69 5.5% 5.0% 70 - 74 6.0% 5.5% 75 - 79 6.5% 6.0% 80+ 7.0% 6.5%
Your Withdrawal Percentage will increase according to this schedule if: - You are entitled to an automatic Payment Base increase during the Contract Year when the Relevant Covered Life's birthday coincides with a new age band; and - You have not waived your obligation to pay potential rider fee increases. Your new Withdrawal Percent will take effect on either of the following dates depending on whether a partial Surrender was ever taken: - If a partial Surrender HAS NOT been taken, your new Withdrawal Percent will be effective on the next birthday that brought the Relevant Covered Life into a new Withdrawal Percent age band; or - If a partial Surrender HAS been taken, then your new Withdrawal Percent will be effective as of the Contract Anniversary when the next automatic Payment Base increase occurs after the birthday that brought you into a new Withdrawal Percent age band (and not that birthday). APP D-14 ------------------------------------------------------------------------------- See "WHAT HAPPENS IF YOU CHANGE OWNERSHIP?" for a description of circumstances when your Withdrawal Percent may change based on a permissible Covered Life change. See Examples 1-3 and 20 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix I. IS EITHER RIDER DESIGNED TO PAY YOU DEATH BENEFITS? Yes. This Guaranteed Minimum Death Benefit guarantees that we will pay a Death Benefit equal to the greater of Premium Payments adjusted for partial Surrenders or Contract Value as of the date we receive due proof of death of the Contract Owner(s) or Annuitant. Termination of either rider will result in the rescission of the Guaranteed Minimum Death Benefit and result in your Beneficiary receiving the Contract Value as of the date we receive due proof of death. For Joint/Spousal election of either rider, no Death Benefit will be available when a Relevant Covered Life is the Beneficiary and the Beneficiary dies. Partial Surrenders will affect the Guaranteed Minimum Death Benefit as follows: A. If cumulative partial Surrenders taken prior to the Lifetime Income Eligibility Date are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to the Lifetime Income Eligibility Date are greater than the Threshold (subject to rounding), then we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders after the Lifetime Income Eligibility Date are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. C. For any partial Surrender that causes cumulative partial Surrenders after the Lifetime Income Eligibility Date to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Lifetime Benefit Payment. Please refer to the section labeled "CAN YOUR SPOUSE CONTINUE YOUR LIFETIME WITHDRAWAL FEATURE" for more information on the continuation of the Lifetime Benefit Payments by your Spouse. DOES EITHER RIDER REPLACE THE STANDARD DEATH BENEFIT? YES, IT PERMANENTLY REPLACES THE STANDARD DEATH BENEFIT. The Guaranteed Minimum Death Benefit will be reset to equal Contract Value when there is a Covered Life change that exceeds the permissible age limitation under either rider. This may also occur for the Single Life Option when the spouse elects Spousal Contract continuation and the new Covered Life exceeds the age limit. CAN YOU REVOKE THIS RIDER? No. However, a Company-sponsored exchange of this rider will not be considered to be a revocation by you of either rider. WHAT EFFECT DOES PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Please refer to "DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER EITHER RIDER?" for the effect of partial Surrenders on your Payment Base, Guaranteed Minimum Death Benefit and Lifetime Benefit Payments. You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value with any applicable charges deducted and not the Payment Base or any Lifetime Benefit Payment that you would have received under either rider. If your Contract Value on any Contract Anniversary is ever reduced below the minimum amount (as defined in your Contract -- generally, the greater of $500 or one Lifetime Benefit Payment) as a result of investment performance or if on any Valuation Day a partial Surrender is taken that reduces your Contract Value below the minimum amount, then the following will occur: - We will no longer accept subsequent Premium Payments; and - You will be required to either make a full Surrender or promptly transfer your remaining Contract Value to an approved Sub-Account(s) and/or Programs (failure to do so after a reasonable amount of time being deemed as acquiescence to our reallocation of these sums to the Money Market Sub-Account); and - Lifetime Benefit Payments will continue; and - Your Guaranteed Minimum Death Benefit will continue to be reduced by Lifetime Benefit Payments until reduced to zero at which time your Death Benefit shall be equal to your Contract Value; and - All other privileges under either rider will terminate and you will no longer be charged a rider fee or Annual Maintenance Fee; and APP D-15 ------------------------------------------------------------------------------- - If any amount greater than a Lifetime Benefit Payment is requested, the Contract will be liquidated, the rider will terminate and the Guaranteed Minimum Death Benefit will be lost. See Examples 21 and 22 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix I. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? Inasmuch as this rider is affected by changes to the Covered Life, only these types of changes are discussed below. We reserve the right to approve all Covered Life changes. Certain approved changes in the designation of the Covered Life may cause a recalculation of the benefits. Covered Life changes also allow us, in our discretion, to impose investment restrictions, as described below. Any Covered Life change made within the first 6 months from the Contract Issue date will have no impact on the Payment Base or Guaranteed Minimum Death Benefit as long as each succeeding Covered Life is less than the maximum age limitation of the applicable rider at the time of the change. The Withdrawal Percent and Lifetime Benefit Payment will thereafter change based on the age of the new relevant Covered Life. After the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have not yet been taken, in the event that you and your Spouse become legally divorced, you may add a new Spouse to the Contract. Provided that the age limitation of the rider is not exceeded, the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the younger Covered Life as of the date of the change. The charge for this rider will remain the same. Alternatively, if after the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and Surrenders have been taken, in the event that you and your Spouse become legally divorced, you may only remove your ex-Spouse from the Contract whereupon the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the remaining Covered Life as of the date of the change. The charge for this rider will remain the same. You may not convert your Joint/Spousal Option election to a Single Life Option. In addition, after the first six months following the Contract issue date, if any Covered Life change takes place that is not due to a divorce, then: A. If the older Covered Life after the change is equal to or less than the maximum age limitation of the rider at the time of the change, then we will revoke the Lifetime Withdrawal Feature of either rider and continue the Guaranteed Minimum Death Benefit only. The charge for the rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter. B. If the older Covered Life after the change exceeds the maximum age limitation of either rider at the time of the change, or we no longer offer either rider, then the rider will terminate. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If you elected the Single Life Option and any Covered Life changes after the first 6 months from Contract Issue date, then: A. If we no longer offer such rider, we will continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change; whereupon the Lifetime Withdrawal Feature will terminate. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter; or B. If we offer such rider, then we will use the attained age of the older Covered Life as of the date of the Covered Life change to reset the Withdrawal Percent. The Payment Base will be recalculated to be the lesser of the Contract Value or the Payment Base effective on the date of the change. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change; or C. If we offer such rider and the older Covered Life after the change exceeds the maximum age limitation of this rider at the time of the change; the rider will be terminated and removed from the Contract. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If such rider is no longer available for sale, we will determine the issue age limitation of the rider on a non-discriminatory basis. The following tables illustrate only some of the various changes and the resulting outcomes associated with deaths of the Contract Owner(s) or Annuitant before and after the Annuity Commencement Date. APP D-16 ------------------------------------------------------------------------------- SINGLE LIFE OPTION ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving The Annuitant is living or Joint Contract Owner receives non-spousal Contract Owner deceased the Death Benefit and this rider terminates Contract Owner There is a surviving spousal The Annuitant is living or Joint Contract Owner receives Contract Owner deceased the Death Benefit and this rider can continue under Spousal Contract continuation Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Designated Owner deceased Beneficiary receives the Death Benefit Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Estate Owner or Beneficiary deceased receives the Death Benefit Annuitant Contract Owner is living There is no Contingent Contract continues, no Death Annuitant and the Contract Benefit is paid, and this rider Owner becomes the Contingent continues Annuitant Annuitant Contract Owner is living There is no Contingent Rider terminates and Contract Annuitant and the Contract Owner receives the Death Owner waives their right to Benefit become the Contingent Annuitant Annuitant Contract Owner is Living Contingent Annuitant is Living Contingent Annuitant becomes the Annuitant and the Contract and this rider continues
JOINT/SPOUSAL ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving Contract The Annuitant is living or The surviving Contract Owner Owner deceased continues the Contract and rider; we will increase the Contract Value to the Death Benefit value Contract Owner There is no surviving Contract The Spouse is the sole primary Follow Spousal Contract Owner beneficiary continuation rules for joint life elections Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates and Contract Owner or Beneficiary deceased Owner's estate receives the Death Benefit Annuitant The Contract Owner is living There is a Contingent Annuitant The Rider continues; upon the death of the last surviving Covered Life, the rider will terminate.
CAN YOUR SPOUSE CONTINUE YOUR LIFETIME WITHDRAWAL FEATURE? - SINGLE LIFE OPTION: If a Covered Life dies and the sole Beneficiary is the deceased Covered Life's Spouse at the time of death, such Spouse may continue the Contract. If the Spouse elects to continue the Contract and such rider, we will continue the rider with respect to all Lifetime Withdrawal Benefits at the charge that is currently being assessed for new sales at the time of continuation. We will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater. The Covered Life will be re-determined on the date of Spousal Contract continuation. If the new Covered Life is less than age 81 at the time of the Spousal Contract continuation, and such rider (or a similar rider, as we determine) is still available for sale, the Payment Base and the Guaranteed Minimum Death Benefit will be set equal to the Contract Value, the Withdrawal Percent will be recalculated based on the age of the older remaining Covered Life on the APP D-17 ------------------------------------------------------------------------------- effective date of the Spousal Contract continuation. If the new Covered Life is 81 or older at the time of the Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will be equal to the Contract Value. If we are no longer offering such rider at the time of Spousal Contract continuation, we will revoke the Lifetime Withdrawal Feature, the Guaranteed Minimum Death Benefit will be set equal to the Contract Value and the rider charge will no longer be assessed. - JOINT/SPOUSAL OPTION: Either rider is designed to facilitate the continuation of your rights under the rider by your Spouse through the inclusion of a Joint/Spousal Option. If a Covered Life dies and the Spouse elects to continue the Contract, we will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater and we will continue the rider with respect to all benefits at the current rider charge. The benefits will be reset as follows: - The Payment Base will be equal to the greater of Contract Value or the Payment Base on the Spousal Contract continuation date; - The Guaranteed Minimum Death Benefit will be equal to the Contract Value on the Spousal Contract continuation date; - The Withdrawal Percent will remain at the current percentage if partial Surrenders have commenced; otherwise the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Spousal Contract continuation date; and - The Lifetime Benefit Payment will be recalculated. The remaining Covered Life can not name a new owner on the Contract. Any new Beneficiary that is added to the Contract will not be taken into consideration as a Covered Life. Either rider will terminate upon the death of the remaining Covered Life. See Examples 18 and 19 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix I. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? If you elect to annuitize your Contract prior to reaching the Annuity Commencement Date, you may only annuitize your Contract Value and will not be able to elect any of the annuitization options allowed under this rider. If your Contract reaches the Annuity Commencement Date, the Contract must be annuitized unless we agree to extend the Annuity Commencement Date, in our sole discretion. In this circumstance, the Contract may be annuitized under our standard annuitization rules or, alternatively, under the rules applicable when the Contract Value is below our Minimum Amount rule then in effect. If your Contract Value is reduced below our Minimum Amount rule (as defined in your Contract), then in effect, your Annuity Commencement Date will be attained and we will no longer accept subsequent Premium Payments. We will then issue you a payout annuity. You may elect the frequency of your payments from those offered by us at such time, but will not be less frequently than annually. - SINGLE LIFE OPTION: If you have elected the Single Life Option, we will issue you a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the Covered Life determined at Annuity Commencement Date. We treat the Covered Life as the Annuitant for this payout option. If there is more than one Covered Life, then the lifetime portion will be based on both Covered Lives. The Covered Lives will be the Annuitant and joint Annuitant for this payout option. The lifetime portion will terminate on the first death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit under this rider. If the older Annuitant is age 59 1/2 or younger, we will automatically defer the date the payments begin until the anniversary after the older Annuitant attains age 59 1/2 and is eligible to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a minimum number of years. If the Annuitant and joint Annuitant are alive and the older Annuitant is age 59 1/2 or older, you will receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of any Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or the applicable Threshold. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. APP D-18 ------------------------------------------------------------------------------- This option may not be available if the Contract is issued to qualify under Code Sections 401, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. - JOINT/SPOUSAL OPTION: If you have elected the Joint/Spousal Option and both Spouses are alive, we will issue you a Fixed Joint & Survivor Lifetime and Period Certain Payout. If only one Spouse is alive, we will issue a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the surviving Covered Life. The Covered Lives will be the Annuitant and Joint Annuitant for this payout option. The lifetime benefit will terminate on the last death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit. If the younger Annuitant is alive and age 59 1/2 or younger, we will automatically defer the date that payments begin until the anniversary after the younger Annuitant attains age 59 1/2 and is eligible to receive payments in a fixed dollar amount until the death of the last surviving Annuitant or a period certain. If the Annuitant is alive and the younger Annuitant is age 59 1/2 or older, you will receive payments in a fixed dollar amount until the later of the death of the last surviving Annuitant or a minimum number of years. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of the last Surviving Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or the applicable Threshold. Therefore, the higher your then remaining Guaranteed Minimum Death Benefit is at the time of annuitization, the longer the time period you will be entitled to receive annuitization payments. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of the last surviving Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. These options may not be available if the Contract is issued to qualify under Code Sections 401, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? Yes, as described in the following table: Lifetime Income Builder We reserve the right to limit the Funds into which you may allocate your Contract Value. We may Selects prohibit investment in certain Funds or require you to allocate your Contract Value only to certain Funds or in accordance with one of a number of model portfolios or Programs. Lifetime Income Builder Your Contract Value must be invested in one or more Programs and in an approved model portfolio, Portfolios Funds or other investment vehicles established from time to time. Permissible portfolios, Funds, Programs or other investment vehicles are described in your application and other communications. Not all model portfolios or Programs are available through all Financial Intermediaries. We may, in our sole discretion, add, replace or alter Funds, Programs and model portfolios from time to time. You will be provided with advance notification of any investment restriction changes. Changes may be made on a prospective basis with respect to any additional Premium Payments received. While you may switch from model portfolio to model portfolio, you can not pick and choose Funds within any model portfolios nor may you specify which Funds should be redeemed to satisfy the Lifetime Withdrawal Feature. You may provide written investment instructions to invest Contract Value in a manner that violates these investment restrictions. Any such action will; however, result in the termination of your rights under either rider.
Investments within model portfolios will fluctuate in value and may be worth more or less than your original investment. We are not responsible for lost investment opportunities associated with the implementation of these investment restrictions. Please refer to each Fund's investment objectives, policies and restrictions and the risks of investing in each Fund as described in this prospectus and the prospectus for each Fund. If your Lifetime Withdrawal Feature is revoked due to failure to comply with the investment restrictions, you will have a one time opportunity to reinstate the Lifetime Withdrawal Feature on your rider. There is a 15 calendar day reinstatement period that will begin from the date your lifetime withdrawal feature is revoked. During the reinstatement period, if you make a subsequent Premium Payment, take a partial Surrender or make a Covered Life change, your opportunity to reinstate will be terminated. APP D-19 ------------------------------------------------------------------------------- Upon reinstatement of your Lifetime Withdrawal Feature under either rider, your Payment Base will be reset at the lower of the Payment Base prior to the revocation and Contract Value as of the date of the reinstatement. Your Withdrawal Percentage will be set equal to the Withdrawal Percentage prior to the Lifetime Withdrawal Feature revocation; unless, if within the reinstatement period you reach a new age band and no partial Surrenders have been taken, then the Withdrawal Percentage will be set equal to the appropriate percentage based on the attained age of the Relevant Covered Life. Your Lifetime Benefit Payment will be recalculated based on the Lifetime Withdrawal Feature values as of the date of the reinstatement. We will deduct a prorated rider charge on your Contract Anniversary following the reinstatement for the time period between the reinstatement date and your first Contract Anniversary following the reinstatement. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? Yes. We reserve the right to require our approval on all subsequent Premium Payments received after the first twelve months. We may not accept any subsequent Premium Payment which brings the total of such cumulative subsequent Premium Payments in excess of $100,000 without prior approval. Following your Annuity Commencement Date, we will no longer accept subsequent Premium Payments. These restrictions are not currently enforced. CAN WE AGGREGATE CONTRACTS? Yes. For purposes of determining the Payment Base and Premium Payment limits, we reserve the right to treat as one all deferred variable annuity Contracts issued by us where you have elected any optional withdrawal benefit rider. If we elect to aggregate Contracts, we will change the period over which we measure Surrenders against future Lifetime Benefit Payments. We will treat the effective date of our aggregation election until the end of the applicable calendar year as a Contract Year for the purposes of the Lifetime Benefit Payment limit. A pro-rata rider fee will be taken at the end of that calendar year. After the first calendar year following aggregation, the Lifetime Benefit Payment limits will be aggregated and will thereafter be set on a calendar year (i.e., January 1 Contract Anniversary) basis. The rider fee then in effect will be taken at the end of each new Contract Anniversary. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - The benefits under this rider cannot be directly or indirectly assigned, collateralized, pledged or securitized in any way. Any such actions will invalidate the rider and allow us to terminate the rider. - YOUR ANNUAL LIFETIME BENEFIT PAYMENTS MAY FLUCTUATE BASED ON CHANGES IN THE PAYMENT BASE AND CONTRACT VALUE. THE PAYMENT BASE IS SENSITIVE TO PARTIAL SURRENDERS IN EXCESS OF THE THEN CURRENT MAXIMUM LIFETIME BENEFIT PAYMENT OR THRESHOLD. IT IS THEREFORE POSSIBLE THAT SURRENDERS AND SUBSEQUENT PREMIUM PAYMENTS WITHIN THE SAME CONTRACT YEAR, WHETHER OR NOT EQUAL TO ONE ANOTHER, CAN RESULT IN LOWER LIFETIME BENEFIT PAYMENTS. - Annuitizing your Contract, whether voluntary or not, will impact and possibly eliminate these "lifetime" benefits. First, you may no longer invest additional Premium Payments. Second, the Death Benefit will immediately terminate. Third, any Guaranteed Minimum Withdrawal Benefit guarantees you elect may end. In cases where you are required to annuitize, you will forfeit automatic Payment Base increases (if applicable) and lifetime annuitization payments may equal (or possibly exceed) Lifetime Benefit Payments. However, where you elect to annuitize before a required Annuity Commencement Date, lifetime annuitization payments might be less than the income guaranteed by your Guaranteed Minimum Withdrawal Benefit. - If you had elected the conversion option from The Hartford's Lifetime Income Builder Selects to The Hartford's Lifetime Income Builder Portfolios, or vice versa, and subsequently rescinded that election, your Payment Base will be set to the lower of the Payment Base or the Contract Value on the date of the rescission and therefore your old Payment Base will not be restored. The Death Benefit will also be set to the lower of the Guaranteed Minimum Death Benefit and the Contract Value on the date of the rescission. - Even though either rider is designed to provide living benefits, you should not assume that you will necessarily receive payments for life if you have violated any of the terms of this rider. - While there is no minimum age for electing either rider, withdrawals taken prior to the Lifetime Income Eligibility Date will reduce, or can even eliminate guaranteed Lifetime Benefit Payments. PAYMENTS TAKEN PRIOR TO THE LIFETIME INCOME ELIGIBILITY DATE ARE NOT GUARANTEED TO LAST FOR A LIFETIME. Either rider may not be suitable if a Covered Life is under attained age 59 1/2. - The determination of the Relevant Covered Life is established by the Company and is critical to the determination of many important benefits such as the Withdrawal Percent used to set Lifetime Benefit Payments. Applicants should confirm this determination and be sure they fully appreciate its importance before investing. - We may terminate either or both riders post-election based on your violation of benefit rules and may otherwise withdraw such rider (or any option) for new sales at any time. In the event that either rider (or any option) is terminated by us, your Lifetime APP D-20 ------------------------------------------------------------------------------- Benefit Payments will cease; your Payment Base, including any automatic Payment Base increases will be eliminated and the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider. - Unless otherwise provided, you may select either rider only at the time of sale and once you do so, you may not add any other optional withdrawal benefits during the time you own this Contract. If you elect either rider you will not be eligible to elect optional riders other than MAV or MAV Plus. - When the Single Life Option is chosen, Spouses may find continuation of either rider to be unavailable or unattractive after the death of the Contract Owner. Continuation of the benefits available in either optional rider is dependent upon its availability at the time of death of the first Covered Life and will be subject to then prevailing charges. - The Joint/Spousal Option provides that if you and your Spouse are no longer married for any reason other than death, the removal and replacement of your Spouse will constitute a Covered Life change. This can result in the resetting of all benefits under this rider. - Certain Covered Life changes may result in a reduction, recalculation or forfeiture of benefits. - Annuity pay-out options available subsequent to the Annuity Commencement Date may not necessarily provide a stream of income for your lifetime and may be less than Lifetime Benefit Payments. - The fee for either rider may increase any time after 12 months from either rider's effective date if and when automatic Payment Base increases take place. There are no assurances as to the fee we will be charging at the time of each Payment Base increase. This is subject to the maximum fee disclosed in the Synopsis. - Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use. - The purchase of an optional withdrawal benefit feature may not be appropriate for contracts owned by certain types of non-natural entities, including Charitable Trusts. Because many non-natural entities are required to make certain periodic distributions and those amounts may be different than the withdrawal amounts permitted by the optional withdrawal benefit feature, you may wish to consult with your tax advisor to help determine the appropriateness of this benefit. APP E-1 ------------------------------------------------------------------------------- APPENDIX E -- INFORMATION REGARDING CONTRACT SERIES NO LONGER SOLD OVERVIEW The following information amends and supplements the Prospectus only with respect to those Series no longer sold. SYNOPSIS The following table describes some of the fees and expenses that you will pay periodically and on a daily basis (except as noted) during the time that you own the Contract, not including fees and expenses of the underlying Funds. Please refer to the Synopsis (Section 2) for more information regarding all other applicable fees and expenses.
SEPARATE ACCOUNT ANNUAL EXPENSES (AS A PERCENTAGE OF AVERAGE DAILY SUB-ACCOUNT VALUE) ACCESS CORE EDGE OUTLOOK PLUS ------------------------------------------------------------------------------------------------------------ Mortality and Expense Risk Charge 1.50% 1.20% 0.80% 1.50% 1.50% Administrative Charge 0.15% 0.15% 0.15% 0.20% 0.15% Total Separate Account Annual Expenses 1.65% 1.35% 0.95% 1.70% 1.65%
This Example is intended to help you compare the cost of investing in this variable annuity with the cost of investing in other variable annuities. Let's say, hypothetically, that your annual investment return is 5% and that your fees and expenses today were as high as possible. The example illustrates the effect of fees and expenses that you could incur (other than taxes). Your actual fees and expenses may vary. For every $10,000 invested, here's how much you would pay under each of the three scenarios posed: (1) If you Surrender your variable annuity at the end of the applicable time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------- Access $589 $1,754 $2,901 $5,694 Core $1,221 $2,321 $3,225 $5,461 Edge $1,044 $2,030 $3,013 $5,452 Outlook $1,257 $2,232 $2,924 $5,732 Plus $1,346 $2,496 $3,538 $5,694
(2) If you annuitize at the end of the applicable time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------- Access $484 $1,649 $2,796 $5,589 Core $453 $1,561 $2,659 $5,356 Edge $939 $1,925 $2,908 $5,347 Outlook $489 $1,663 $2,819 $5,627 Plus $484 $1,649 $2,796 $5,589
(3) If you do not Surrender your variable annuity:
1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------- Access $589 $1,754 $2,901 $5,694 Core $558 $1,666 $2,764 $5,461 Edge $1,044 $2,030 $3,013 $5,452 Outlook $594 $1,768 $2,924 $5,732 Plus $589 $1,754 $2,901 $5,694
STANDARD DEATH BENEFITS These versions of the Contract include a standard Death Benefit that is based on the age of the Owner(s) and Annuitant. Standard Death Benefits are at no additional cost. APP E-2 ------------------------------------------------------------------------------- If all Owner(s) and Annuitant are less than age 76 on the Contract issuance date, you can choose either the Premium Protection or the Asset Protection Death Benefit. If you do not choose a death benefit, we will automatically issue the Asset Protection Death Benefit. If any Owner(s) or Annuitant is more than age 76 on the Contract issuance date, we will automatically issue the Asset Protection Death Benefit. THE PREMIUM PROTECTION DEATH BENEFIT If applicable, your Death Benefit is the highest of: - Contract Value; or - Total Premium Payments adjusted for partial Surrenders. If your Contract has the Premium Protection Death Benefit and you transfer ownership of your Contract to someone who was 76 years old or older at the time you purchased your Contract, the Premium Protection Death Benefit will no longer apply as of the date of transfer and the death benefit will be a return of your Contract Value. As used above, "Contract Value" refers to your Contract Value on the date we receive due proof of death. The following are examples of how Premium Protection Death Benefit works: EXAMPLE 1 Assume that: - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $8,000, - Your Contract Value in the fourth year immediately before your Surrender was $109,273, - On the day we calculate the Death Benefit, your Contract Value was $117,403. The adjustment to your total Premium Payments for partial Surrenders is on a dollar-for-dollar basis up to 10% of total Premium Payments. The partial Surrender of $8,000 is less than 10% of Premium Payments. Your adjusted total Premium Payments is $92,000. Because your Contract Value at death was greater than the adjusted total Premium Payments, your Death Benefit is $117,403. EXAMPLE 2 Assume that: - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $60,000, - Your Contract Value in the fourth year immediately before your Surrender was $150,000, - On the day we calculate the Death Benefit, your Contract Value was $120,000. The adjustments to your Premium Payments for partial Surrenders is on a dollar-for-dollar basis up to 10% of total Premium Payments. 10% of the total Premium Payments is $10,000. Total Premium Payments adjusted for dollar-for-dollar partial Surrenders is $90,000. The remaining partial Surrenders equal $50,000. This amount will reduce your total Premium Payments by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar-for-dollar adjustment to get $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $90,000. The result is an adjusted total Premium Payment of $57,857. Because your Contract Value at death was greater than the adjusted total Premium Payments, your Death Benefit is $120,000. THE ASSET PROTECTION DEATH BENEFIT If applicable, except as noted below, your Death Benefit is the highest of A, B or C, below: A. Contract Value; or B. Contract Value plus 25% of total Premium Payments adjusted for partial Surrenders (excluding Premium Payments we receive within 12 months of death); or C. Contract Value plus 25% of Maximum Anniversary Value. APP E-3 ------------------------------------------------------------------------------- The Asset Protection Death Benefit cannot exceed the highest of: - Contract Value; - Total Premium Payments adjusted for partial Surrenders; or - Maximum Anniversary Value. All references to "Contract Value" refer to such value on the date we receive due proof of death. The following are examples of how Asset Protection Death Benefit works: EXAMPLE 1 Assume that: - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a withdrawal of $8,000, - Your Contract Value in your fourth Contract Year immediately before your withdrawal was $109,273, - On the day we calculate the Death Benefit, your Contract Value was $117,403, - Your Maximum Anniversary Value was $11,403. To calculate the Asset Protection Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we calculate the Death Benefit [$117,403], - The Contract Value of your Contract, plus 25% of the total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for any partial Surrenders. [$117,403 + 25% ($100,000 - $8,000) = $140,403], - The Contract Value of your Contract, plus 25% of Your Maximum Anniversary Value minus an adjustment for any partial Surrenders [$117,403 + 25% ($117,403 - $8,000) = $144,754], but it cannot exceed the greatest of: - The Contract Value of your Contract on the date we calculate the Death Benefit [$117,403], - Total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for partial Surrenders [$100,000 - $8,000 = $92,000]; or - Your Maximum Anniversary Value adjusted for any partial Surrenders [$117,403 - $8,000 = $109,403]. Because the Contract Value of your Contract [$117,403] is greater than your Maximum Anniversary Value adjusted for partial Surrenders [$109,403] and your adjusted total Premium Payments [$92,000], the amount of the Death Benefit would be your Contract Value or $117,403. EXAMPLE 2 Assume that: - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $60,000, - Your Contract Value in the fourth year immediately before your Surrender was $150,000, - On the day we calculate the Death Benefit, your Contract Value was $120,000, - Your Maximum Anniversary Value is $140,000. To calculate the Asset Protection Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we calculate the Death Benefit [$120,000], - The Contract Value of your Contract, plus 25% of the total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for any partial Surrenders. [$120,000 + 25% of $57,857 = $134,464 (see below)], - The Contract Value of your Contract, plus 25% of Your Maximum Anniversary Value minus an adjustment for any partial Surrenders [$120,000 + 25% ($83,571) = $140,893 (see below)]. APP E-4 ------------------------------------------------------------------------------- The Asset Protection Death Benefit is the greatest of these three values but it cannot exceed the greatest of: - The Contract Value of your Contract on the date we calculate the Death Benefit [$120,000], - Total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for partial Surrenders [$57,857 (see below)]; or - Your Maximum Anniversary Value adjusted for any partial Surrenders [$83,571 (see below)]. The adjustments to your Premium Payments and/or Maximum Anniversary Value for partial Surrenders is on a dollar-for-dollar basis up to 10% of total Premium Payments. 10% of the total Premium Payments is $10,000. Total Premium Payments adjusted for dollar-for-dollar partial Surrenders is $90,000. The remaining partial Surrenders equal $50,000. This amount will reduce your total Premium Payments by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar-for-dollar adjustment to get $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $90,000. The result is an adjusted total Premium Payment of $57,857. Your Maximum Anniversary Value adjusted for partial Surrenders on a dollar-for-dollar basis up to 10% of Premium Payments is $130,000. Remaining partial Surrenders are $50,000. We use this amount to reduce your Maximum Anniversary Value by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar-for-dollar adjustment to get $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $130,000. The result is an adjusted Maximum Anniversary Value of $83,571. Your Asset Protection Death Benefit is $120,000. This is because your Contract Value at death [$120,000] was the greatest of: - The Contract Value of your Contract on the date we calculate the Death Benefit [$120,000], - Total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for partial Surrenders [$57,857]; or - Your Maximum Anniversary Value minus an adjustment for any partial Surrenders [$83,571]. ------------------------------------------------------------------------------- To obtain a Statement of Additional Information, please complete the form below and mail to: The Hartford Attn: U.S. Wealth Management P.O. Box 5085 Hartford, Connecticut 06102-5085 Please send a Statement of Additional Information for Series II, IIR and III of Hartford Leaders variable annuity to me at the following address: ---------------------------------------------------------------- Name ---------------------------------------------------------------- Address ---------------------------------------------------------------- City/State Zip Code PART B STATEMENT OF ADDITIONAL INFORMATION HARTFORD LIFE INSURANCE COMPANY SEPARATE ACCOUNT SEVEN SERIES II, IIR AND III OF HARTFORD LEADERS This Statement of Additional Information is not a prospectus. The information contained in this document should be read in conjunction with the prospectus. To obtain a prospectus, send a written request to Hartford Life Insurance Company, Attn: U.S. Wealth Management, P.O. Box 5085, Hartford, CT 06102-5085. Date of Prospectus: May 1, 2007 Date of Statement of Additional Information: May 1, 2007 TABLE OF CONTENTS GENERAL INFORMATION 2 Safekeeping of Assets 2 Experts 2 Non-Participating 2 Misstatement of Age or Sex 2 Principal Underwriter 2 PERFORMANCE RELATED INFORMATION 5 Total Return for all Sub-Accounts 5 Yield for Sub-Accounts 5 Money Market Sub-Accounts 6 Additional Materials 6 Performance Comparisons 6 ACCUMULATION UNIT VALUES 7 FINANCIAL STATEMENTS SA-2
2 ------------------------------------------------------------------------------- GENERAL INFORMATION SAFEKEEPING OF ASSETS We hold title to the assets of the Separate Account. The assets are kept physically segregated and are held separate and apart from our general corporate assets. Records are maintained of all purchases and redemptions of the underlying fund shares held in each of the Sub-Accounts. EXPERTS The consolidated balance sheets of Hartford Life Insurance Company (the "Company") as of December 31, 2007 and 2006, and the related consolidated statements of income, changes in stockholder's equity and cash flows for each of the three years in the period ended December 31, 2007 have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report dated February 20, 2008 and the statements of assets and liabilities of Hartford Life Insurance Company Separate Account Seven (the "Account") as of December 31, 2007, and the related statements of operations and changes in net assets for the respective stated periods then ended have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report dated February 20, 2008, which reports are both included in this Statement of Additional Information. Such financial statements are included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing. The principal business address of Deloitte & Touche LLP is City Place, 32nd Floor, 185 Asylum Street, Hartford, Connecticut 06103-3402. NON-PARTICIPATING The Contract is non-participating and we pay no dividends. MISSTATEMENT OF AGE OR SEX If an Annuitant's age or sex was misstated on the Contract, any Contract payments or benefits will be determined using the correct age and sex. If we have overpaid Annuity Payouts, an adjustment, including interest on the amount of the overpayment, will be made to the next Annuity Payout or Payouts. If we have underpaid due to a misstatement of age or sex, we will credit the next Annuity Payout with the amount we underpaid and credit interest. PRINCIPAL UNDERWRITER The Contracts, which are offered continuously, are distributed by Hartford Securities Distribution Company, Inc. ("HSD"). HSD serves as Principal Underwriter for the securities issued with respect to the Separate Account. HSD is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 as a Broker-Dealer and is a member of the National Association of Securities Dealers, Inc. HSD is an affiliate of ours. Both HSD and Hartford are ultimately controlled by The Hartford Financial Services Group, Inc. The principal business address of HSD is the same as ours. We currently pay HSD underwriting commissions for its role as Principal Underwriter of all variable annuities associated with this Separate Account. For the past three years, the aggregate dollar amount of underwriting commissions paid to HSD in its role as Principal Underwriter has been: 2007: $125,061,889; 2006: $122,003,581; and 2005: $38,481,029. ADDITIONAL PAYMENTS TO FINANCIAL INTERMEDIARIES As stated in the prospectus, we (or our affiliates) pay Additional Payments to Financial Intermediaries. In addition to the Financial Intermediaries listed in the prospectus with whom we have an ongoing contractual arrangement to make Additional Payments, listed below are all Financial Intermediaries that received Additional Payments in 2007 of items such as sponsorship of meetings, education seminars, and travel and entertainment, whether or not an ongoing contractual relationship exists. 1st Discount Brokerage, Inc., AIM Distributors, Inc., A.P.P.S. Financial Group, Inc., Abacus Investments, Inc., ABN AMRO, Inc., Advantage Capital Corporation, Advisory Group Equity Services Ltd., AFA Financial Group LLC, AFS Brokerage, Inc., AIG Equity Sales Corp., AIG Financial Advisors Inc., AIG Retirement Advisors, Inc., AIG SunAmerica, Inc., Alexander Investment Services Co., Allegheny Investments, Ltd., Allen & Company LLC, Allen & Company of Florida, Inc., Allen Douglas Securities, Inc., Alliance Bank, AllianceBerstein Investments, Inc., AMCORE Investment Services, Inc., American Classic Securities Inc., American Diversified Financial Group LLC, American Funds & Trusts Inc., American Funds Distributors, Inc., American General Securities, Inc., American Investors Company, American Portfolios Financial Services, Inc., Ameriprise Financial, Inc., Ameritas Investment Corp., AMTrust Investment Services, Inc., AMVest Securities, Inc., Anderson & Strudwick, Inc., Andrew Garrett, Inc., Anthony Financial Management LLC, Arizona State Savings & Credit Union, Arvest Asset Management, Askar Corp., Asset Management Securities Corp., Associated Financial Services, Inc., Associated Investment Services, Inc., Associated Securities Corp., Atlantic Coast Securities Corp., AUL Equity Sales Corp., AXA Advisors LLC, AYRE Investments, Inc., B.C. Ziegler and Company, Banc of America Investment Services, Inc., BancNorth Investment Group, Inc., Bancorpsouth Investment Services, Inc., BancWest Investment Services, Inc., Bank Insurance & 3 ------------------------------------------------------------------------------- Securities Association, Bank Iowa, Bank of the West, Bankers & Investors Co., Banknorth, N.A., Bannon Ohanesian & Lecours, Inc., Banorte Securities International, Ltd., Bates Securities, Inc., BB&T Investment Services, Inc., BBVA Investments Inc., BCG Securities, Inc., Beaconsfield Financial Services, Inc., Bedrock Capital Management, Inc., Bernard Herold & Co., Inc., Berthel Fisher & Company Financial Services, Inc., BI Investments LLC, Bodell Overcash Anderson & Co., Inc., Boone County National Bank, BOSC, Inc., Brecek & Young Advisors, Inc., Brighton Securities Corp., Broker Dealer Financial Services Corp., Brokers International Financial, Brokers International Financial Services LLC, Brooke Securities, Inc., Brookstreet Securities Corporation, Brown Advisory Securities LLC, Brown Lisle Cummings, Inc., Bruce A. Lefavi Securities, Inc., Buckman Buckman & Reid, Inc., Butler Freeman Tally Financial Group LLC, Butler Wick & Co., Inc., Cadaret Grant & Co., Inc., Calton & Associates, Inc., Cambridge Investment Research, Inc., Cambridge Legacy Securities LLC, Cantella & Co., Inc., Cantella & Company, Capital Analysts, Inc., Capital Brokerage Corp., Capital Choice Financial Services, Capital City Bank, Capital Concepts Investment Corp., Capital Financial Services, Inc., Capital Growth Securities LLC, Capital Investment Group, Inc., Capital Investment Services, Inc., Capital Management Securities, Inc., Capital One Bank, Capital One Investments LLC, Capital Securities of America, Inc., Capital Select I Corp., Capitol Securities Management, Inc., Carey Thomas Hoover, & Breault, Inc., Carolinas Investment Consulting LLC, CBIZ Financial Solutions, Inc., CCF Investments, Inc., CCO Investment Services Corp., Cebert Wealth Management Group, Inc., Centaurus Financial, Inc., Centennial Securities Company LLC, Central Bank, Century Securities Associates, Inc., CFD Investments, Inc., CFG Financial Associates, Inc., Charter One Financial, Inc., Chase Investments Services, Corp., Chemical Bank & Trust Co., Chemical Bank West, Chicago Investment Group LLC, CIG Securities, Citicorp Financial Services Corporation, Citigroup Global Markets Inc., Citizens Bank, Citizens Financial Services FSB, Citizens Investment Services Corp., Citizens National Bank, City Bank, City Securities Corporation, Clearing Services of America, Inc., Coburn & Meredith, Inc., Colonial Brokerage, Inc., Comerica Securities, Commerce Brokerage Services, Inc., Commerce Capital Markets, Inc., Commonwealth Financial Network, Commonwealth Investment Services, Inc., Community Bank, Community Bankers Securities LLC, Community Investment Services, Inc., Community National Bank, Compak Securities, Inc., Compass Brokerage, Inc., Comprehensive Asset Management Servicing, Inc., Contemporary Financial Solutions, Coordinated Capital Securities, Inc., Cornerstone Financial Services, Inc., Country Club Financial Services, Inc., Countrywide Investment Services, Inc., Crews & Associates, Inc., Cri Securities LLC, Crowell, Weedon & Co., Crown Capital Securities LLP, CUE Financial Group, Inc., Cuna Brokerage Services, Inc., CUSO Financial Services LP, Cutter & Company, Inc., CW Securities LLC, D.A. Davidson & Co., Daiwa Securities America Inc., Davenport & Company LLC, David A. Noyes & Company, Delta Equity Services Corporation, Delta Trust Investments, Inc., Dempsey Financial Network, Inc., Deutsche Bank Securities Inc., DFC Investor Services, Diversified Securities, Inc., Dominion Investor Services, Inc., Dorn & Co., Inc., Dortch Securities & Investments, Inc., Dougherty & Company LLC, Duerr Financial Corporation, Eagle One Investments LLC, Economy Securities, Inc., EDI Financial, Inc., Edward Jones, Effingham State Bank, EK Riley Investments LLC, Emergent Financial Group, Inc., Emerson Equity LLC, Empire Financial Group, Inc., Empire Securities Corp., Ensemble Financial Services, Inc., EPlanning Securities, Inc., Equable Securities Corp., Equitas America LLC, Equity Services, Inc., Essex Financial Services, Inc., Essex National Securities, Inc., Essex Securities LLC, Excel Securities & Associates, Inc., Fairport Capital, Inc., Farmers National Bank, Feltl & Company, Fenwick Securities, Inc., Ferris, Baker, Watts, Inc., FFP Securities, Inc., Fidelity Bank, Fidelity Brokerage Services LLC, Fidelity Federal Bank & Trust, Fiducial Investments Advisors, Inc., Fifth Third Securities, Inc., Financial Design, Inc., Financial Network Investment Corp., Financial Planning Consultants, Inc., Financial Security Management, Inc., Financial Telesis, Inc., Financial West Group, Fintegra LLC, First Allied Securities, Inc., First American Bank, First Bank, First Bank & Trust, First Brokerage America, First Brokerage America LLC, First Busy Securities, Inc., First Citizens Bank, First Citizens Financial Plus, Inc., First Citizens Investor Services, Inc., First Citizens National Bank, First Coast Financial Advisors LLC, First Colonial Group Inc., First Community Bank, N.A., First Dallas Securities Inc., First Federal Bank, First Fidelity Securities, First Financial Equity Corp., First Global Securities, Inc., First Heartland Capital, Inc., First Independent Financial Services, Inc., First MidAmerica Investment Corp., First Montauk Securities Corp., First National Bank, First National Investment Services Company LLC, First Northern Bank, First Place Bank, First Security Bank, First Southeast Investor Services, Inc., First Southwest Company, First St.Louis Securities, Inc., First Tennessee Brokerage, Inc., First Wall Street Corp., First Western Securities, Inc., FirstMerit Securities, Inc., Fiserv Brokerage Services, Inc., Fiserv, Inc., Florida Investment Advisers, FNB Brokerage Services, Inc., FNIC FID Div., Focused Investments, Folger Nolan Fleming Douglas Inc., Foothill Securities, Inc., Foresters Equity Services, Inc., Fortune Financial Services, Inc., Founders Financial Securities LLC, Fox & Company Investments Inc., Franklin Templeton Financial Services Corp., Frost Brokerage Services, Inc., FSC Securities Corp., FSIC, Fulcrum Securities, Inc., G & W Equity Sales, Inc., GBS Financial Corp., Geneos Wealth Management, Inc., Genworth Financial Securities Corp., GIA Financial Group LLC, Girard Securities Inc., Glencrest Insurance Services, Global Brokerage Services, Inc., GMS Group LLC, Gold Coast Securities, Inc., Granite Securities LLC, Grant Bettingen, Inc., Great American Advisors, Inc., Great American Investors, Inc., Great Lakes Capital Financial Service Inc., Great Northern Financial Services, Gregory J. Schwartz & Co., Inc., Gunnallen Financial, Inc., GWN Securities, Inc., H&R Block Financial Advisors, Inc., H. Beck, Inc., H.D.Vest Investment Services., HAAS Financial Products, Inc., Hagar Financial Corporation, Hancock Bank, Hancock Investment Services, Inc., Harbor Financial Services LLC, Harbour Investments, Inc., Harger and Company, Inc., Harold Dance Investments, Harris Investor Services, Inc., Hartford Equity Sales Company Inc., Hartford Investment Financial Services LLC, Harvest Capital LLC, Hawthorne Securities Corporation, Hazard & Siegel, Inc., HBW Securities LLC, Heartland Bank, Heartland Investment Associates, Inc., Hefren-Tillotson, Inc., Heim Young & Associates, Inc., Heritage Bank, Hibernia National Bank, Home Savings Bank Hornor Townsend & Kent, Inc., Horwitz & 4 ------------------------------------------------------------------------------- Associates, Inc., HSBC Bank International, HSBC Securities (USA) Inc., Huntington Securities Corp., Huntington Investment Co., Huntington National Bank, Huntleigh Securities Corporation, IBC Bank, IBC Investments, IBN Financial Services, Inc., ICBA Financial Services Corporation, IFC Holdings, IFG Network Securities, Inc., IFMG Securities, Inc., IMS Securities, Inc., Independent Bank, Independent Financial Group LLC, Independent Financial Securities, Inc., INFINEX Investments, Inc., ING Financial Advisers LLC, ING Financial Partners, Inc., Innovative Solutions Insurance Services, Intercarolina Financial Services, Inc., Interlink Securities Corp., International Assets Advisory LLC, International Research Securities, Inc., Intersecurities, Inc., Intrust Brokerage Inc., Invesmart Securities LLC, Invest Financial Corporation, Investacorp, Inc., Investment Centers Of America, Inc., Investment Management Service, Inc., Investment Planners, Inc., Investment Professionals Inc., Investment Security Corporation, Investors Capital Corp., Investors Security Company, Inc., Iowa State Bank, Iron Street Securities, Inc., Ironstone Securities, Inc., J.B. Hanauer & Co., J.P. Morgan Securities, Inc., J.P. Turner & Company LLC, J.W. Cole Financial, Inc., Jack V. Butterfield Investment Company, James I. Black & Company, Janney Montgomery Scott LLC, Jefferson Pilot Securities Corporation, Jesup & Lamont Securities Corp., Joseph Stevens & Co., Inc., K.W. Brown Investments, Kalos Capital, Inc., Kaplan & Co., Securities Inc., KCD Financial, Inc., Key Investment Services LLC, Kinecta Financial & Insurance Services LLC, KMS Financial Services, Inc., Kovack Securities Inc., Lara, Shull & May, Ltd., Lasalle Financial Services, Inc., Lasalle St Securities LLC, Legacy Asset Securities, Inc., Legacy Financial Services, Inc., Legend Equities Corporation, Legg Mason Investor Services LLC, Leigh Baldwin & Co., LLC, Leonard & Company, Lesko Securities Inc., Lexington Investment Company, Inc., Liberty Group LLC, Lifemark Securities Corp., Lincoln Financial Advisors Corporation, Lincoln Investment Planning, Inc., Linsco/Private Ledger/Bank Div., Long Island Financial Group, Inc., Lord Abbett Distributor LLC, LPL Financial Corporation, M Holdings Securities, Inc., M&I Brokerage Services, Inc., M&T Securities, Inc., M. Griffith Investment Services, Inc., M.L. Stern & Co., LLC, Main Street Securities LLC, Manarin Securities Corporation, Marketing One Securities, Marquette Capital Partners, Inc., MBM Securities, Inc., McGinn, Smith & Co., Inc., McGrath Financial & Retirement Services, Inc., Means Investment Co., Inc., Medallion Investment Services, Inc., Merrill Lynch, Pierce, Fenner & Smith, Inc., Merrimac Corporate Securities, Inc., Merrimack Valley Investment, Inc., Mesirow Financial, Inc., Metlife Securities Inc., MFS Fund Distributors, Inc., Mid Atlantic Capital Corporation, MidAmerica Financial Services, Inc., Milestone Financial Services, Inc., Milkie/ Ferguson Investments, Inc., MML Investors Services, Inc., Maloney Securities Co., Inc., Money Concepts Capital Corp., Money Management Advisory, Inc., Moors & Cabot, Inc., Morgan Keegan & Company, Inc., Morgan Stanley & Co., Inc., Morris Group, Inc., MSCS Financial Services LLC, Multi-Financial Securities Corp., Multiple Financial Services, Inc., Mutual Funds Associates Inc., Mutual Of Omaha Investor Services, Inc., Mutual Securities, Inc., Mutual Services Corp., MWA Financial Services Inc., NAST, NatCity Investments, Inc., National Advisers Trust Company FSB, National Financial Services LLC, National Investor Service Corporation, National Planning Corporation, National Securities Corporation, Nations Financial Group, Inc., NAVA, Navy Federal Brokerage Services LLC, Navy Federal Credit Union, NBC Securities, Inc., Neidiger Tucker Bruner, Inc., Nelson Securities Inc., New England Securities, NewAlliance Investments, Inc., Newbridge Securities Corporation, Next Financial Group, Inc., NFB Investment Services Corp., NFP Securities, Inc., North Ridge Securities Corp., Northeast Securities, Inc., Northern Trust Securities, Inc., Northwestern Mutual Investment Services LLC, Nutmeg Securities, Ltd., O Bee Credit Union, Oak Tree Securities, Inc., Oberlin Financial Corporation, OFG Financial Services, Inc., Ogilvie Security Advisors Corporation, Ohio National Equities, Inc., Ohio Savings Securities, Inc., Olde Economie Financial Consultants, Ltd., Omega Securities, Inc., Omni Brokerage, Inc., ONE Investment Services, Inc., OneAmerica Securities, Inc., Online Brokerage Services, Oppenheimer & Co. Inc., Orange County Teachers Federal Credit Union, P & A Financial Securities, Inc., Pacific Financial Associates, Inc., Pacific West Securities, Inc., Packerland Brokerage Services, Inc., Park Avenue Securities LLC, Partners Investment Network, Inc., Partnervest Securities, Inc., Paulson Investment Company Inc., Paychex Securities Corporation, Penn Plaza Brokerage, Ltd., Pension Planners Securities, Inc., Pension Financial Services, Inc., Peoples Bank, Peoples Securities, Inc., Perryman Securities, Inc., Pershing LLC, PFIC Securities Corp., Planmember Securities Corp., Planned Investment Co., Inc., PMK Securities & Research Inc., PNC Investments LLC, Pointe Capital, Inc., Pratt, Kutzke & Associates LLP, Preferred Financial Group, Premier Credit Union, Prime Capital Services, Inc., Primesolutions Securities, Inc., Primevest Financial Services, Inc., Princor Financial, Service Corp., Private Consulting Group, Inc., ProEquities, Inc., Professional Asset Management, Inc., Prospera Financial Services, Inc., Protected Investors of America, Provident Bank, PTS Brokerage LLC, Purshe Kaplan Sterling Investments, Putnam Retail Management Limited Partnership, Pyramid Funds, Corp., QA3 Financial Corp., Quest Capital Strategies, Inc., Quest Securities, Inc., Questar Capital Corporation, R. Seelaus & Company Inc., R.M. Stark & Co., Inc., Raymond James & Associates, Inc., Raymond James FID Division, Raymond James Financial Services, Inc., RBC Centura Securities, Inc., RBC Dain Rauscher Inc., Regal Securities, Inc., Reliance Securities LLC, Resource Horizons Group LLC, Rhodes Securities, Inc., Rice Pontes Capital, Inc., Ridgeway & Conger, Inc., River City Bank, Riverstone Wealth Management, Inc., RNR Securities LLC, Robert B. Ausdal & Co., Inc., Robert W. Baird & Co. Inc., Robinson & Robinson, Inc., Rogan & Associates, Inc., Rogan, Rosenberg & Associates, Inc., Royal Alliance Associates, Inc., Royal Securities Company, Rydex Distributors, Inc., S.C. Parker & Co., Inc., S.G. Long & Company, Safe Credit Union, Sage, Rutty & Co., Inc., Sammons Securities Company LLC, San Mateo Credit Union, Sanders Morris Harris Group Inc., Saxony Securities, Inc., SCF Securities, Inc., Scott & Stringfellow, Inc., Seacoast Investor Services Inc., Securian Financial Services, Inc., Securities America, Inc., Securities Service Network, Inc., SEI Financial Services, Inc., Sentinel Securities, Inc., Sentra Securities Corp., Shepard & Vrbanac Sec., Inc., Shields & Company, SIG Brokerage, L.P., Sigma Financial Corporation, Signal Securities, Inc., Signator Investors Inc., Signature Bank, Signature Financial Group, Inc., SII Investments, Inc., Sisk Investment Services, Inc., Smith Hayes Financial Services Corp., Sorrento Pacific Financial LLC, Source Capital Group, Inc., South Valley Wealth Management, Southeast Investments, 5 ------------------------------------------------------------------------------- N.C., Inc., Southwest Securities, Inc., Spectrum Capital, Inc., Spelman & Co., Inc., Spina Financial, Stanford Group Company, Stephen A. Kohn & Associates, Ltd., Stephens, Inc., Sterling Savings Bank, Sterne Agee & Leach, Inc., Steven L. Falk & Assoc., Inc., Stifel Nicolaus & Co., Inc., Strand Atkinson Williams & York, Inc., Strategic Alliance Corp., Stuart Securities Corp., Summark Financial Services, Summit Bank, Summit Brokerage Services Inc., Summit Equities, Inc., Sunset Financial Services, Inc., SunStreet Securities LLC, SunTrust Investment Services, Inc., SWBC Investment Services LLC, SWS Financial Services, Symetra Investment Services Inc., Synergy Investment Group LLC, Synovus Securities, Inc., T.J. Raney & Sons, Inc., T.S. Phillips Investments, Inc., TD Ameritrade, Inc., Teckmeyer Financial Services LLC, TFS Securities, Inc., The Concord Equity Group LLC, The Huntington Investment Company, The O.N. Equity Sales Company, Thoroughbred Financial Services LLC, Thrasher & Company, Inc., Thrivent Investment Management Inc., Thurston Springer Miller, Herd & Titak, Inc., TimeCapital Securities Corp., Touchstone Financial Group LLC, Tower Square Securities, Inc., Traderight Securities, Inc., Transamerica Financial Advisors, Inc., Triad Advisors, Inc., Trustfirst, Trustmark Securities, Inc., Trustmont Financial Group, Inc., U.S. Bancorp Investments, Inc., UBOC Investment Services, Inc., UBS Financial Services, Inc., UBS International, Inc., UCB Investment Services, Inc., UMB Financial Services, Inc., Unified Financial Securities, Inc., Union Capital Company, UnionBanc Investment Services, UnionBanc Investment Services LLC, United Bank, United Brokerage Services, Inc., United Community Bank, United Financial Group, Ltd., United Global Securities, Inc., United Heritage Financial Group, United Planners' Financial Services of America A Limited Partner, United Securities Alliance, Inc., Univest Investments, Inc., USA Financial Securities, Corp., USLIFE Equity Sales, UVEST Financial Services Group, Inc., Valmark Securities, Inc., Van Kampen Funds, Inc., Vanderbilt Securities LLC, VBC Securities LLC, Venture Bank, Veritrust Financial LLC, VFinance Investments, Inc., Vision Investment Services, Inc., Vorpahl Wing Securities, VSR Financial Services, Inc., W. R. Taylor & Company LLC, Wachovia Securities LSG, Wachovia Securities LLC, Wadsworth Investment Co., Inc., Wall Street Financial Group, Inc., Wallstreet Electronica, Inc., Wamu Investments, Inc., Wasserman & Associates, Inc., Waterstone Financial Group, Inc., Waveland Capital Partners LLC, Wayne Hummer Investments LLC, Webster Bank, Webster Investment Services, Inc., Wedbush Morgan Securities, Inc., Weiss Capital Securities, Inc., Weitzel Financial Services, Inc., Wells Fargo Investments LLC, Wells Fargo Securities LLC, Wellstone Securities LLC, Wesbanco Securities, Inc., Wescom Financial Services, Western International Securities, Inc., Westminster Financial Securities, Inc., WFB Wealth Management Group, WFG Investments, Inc., WFP Securities, Whitney Securities LLC, Wiley Bros.-Aintree Capital LLC, William C. Burnside & Company, Inc., Wilmington Brokerage Services Company, Woodbury Financial Services, Inc., Woodlands Securities, Corp., Woodmen Financial Services, Inc., Woodstock Financial Group, Inc., Workman Securities, Corp., World Choice Securities, Inc., World Financial Group, Inc., World Group Securities, Inc., Worth Financial Group, Inc., WRP Investments, Inc., Wunderlich Securities, Inc., XCU Capital Corp., Inc., Zions Direct, Inc., Zions Investment Securities, Inc. PERFORMANCE RELATED INFORMATION The Separate Account may advertise certain performance-related information concerning the Sub-Accounts. Performance information about a Sub-Account is based on the Sub-Account's past performance only and is no indication of future performance. TOTAL RETURN FOR ALL SUB-ACCOUNTS When a Sub-Account advertises its standardized total return, it will usually be calculated from the later of the date of the inception of the Sub-Account or Separate Account for one, five and ten year periods or some other relevant periods if the Sub-Account has not been in existence for at least ten years. Total return is measured by comparing the value of an investment in the Sub-Account at the beginning of the relevant period to the value of the investment at the end of the period. To calculate standardized total return, we use a hypothetical initial premium payment of $1,000.00 and deduct for the Total Annual Fund Operating Expenses, any Sales Charge, Separate Account Annual Expenses without any optional charge deductions and the Annual Maintenance Fee. The formula we use to calculate standardized total return is P(1+T) TO THE POWER OF n = ERV. In this calculation, "P" represents a hypothetical initial premium payment of $1,000.00, "T" represents the average annual total return, "n" represents the number of years and "ERV" represents the redeemable value at the end of the period. In addition to the standardized total return, the Sub-Account may advertise a non-standardized total return. These figures will usually be calculated from the later of the date of inception of the underlying fund or Separate Account for one, five and ten year periods or other relevant periods. Non-standardized total return is measured in the same manner as the standardized total return described above, except that non-standardized total return includes the impact of a minimum 1% sales charge, if applicable, and the Annual Maintenance Fee is not deducted. Therefore, non-standardized total return for a Sub-Account is higher than standardized total return for a Sub-Account. YIELD FOR SUB-ACCOUNTS If applicable, the Sub-Accounts may advertise yield in addition to total return. At any time in the future, yields may be higher or lower than past yields and past performance is no indication of future performance. 6 ------------------------------------------------------------------------------- The standardized yield will be computed for periods beginning with the inception of the Sub-Account in the following manner. The net investment income per Accumulation Unit earned during a one-month period is divided by the Accumulation Unit Value on the last day of the period. The formula we use to calculate yield is: YIELD = 2[(a - b/cd +1) TO THE POWER OF 6 - 1]. In this calculation, "a" represents the net investment income earned during the period by the underlying fund, "b" represents the expenses accrued for the period, "c" represents the average daily number of Accumulation Units outstanding during the period and "d" represents the maximum offering price per Accumulation Unit on the last day of the period. MONEY MARKET SUB-ACCOUNTS At any time in the future, current and effective yields may be higher or lower than past yields and past performance is no indication of future performance. Current yield of a money market fund Sub-Account is calculated for a seven-day period or the "base period" without taking into consideration any realized or unrealized gains or losses on shares of the underlying fund. The first step in determining yield is to compute the base period return. We take a hypothetical account with a balance of one Accumulation Unit of the Sub-Account and calculates the net change in its value from the beginning of the base period to the end of the base period. We then subtract an amount equal to the total deductions for the Contract and then divides that number by the value of the account at the beginning of the base period. The result is the base period return or "BPR." Once the base period return is calculated, we then multiply it by 365/7 to compute the current yield. Current yield is calculated to the nearest hundredth of one percent. The formula for this calculation is YIELD = BPR x (365/7), where BPR = (A - B)/C. "A" is equal to the net change in value of a hypothetical account with a balance of one Accumulation Unit of the Sub-Account from the beginning of the base period to the end of the base period. "B" is equal to the amount that Hartford deducts for mortality and expense risk charge, any applicable administrative charge and the Annual Maintenance Fee. "C" represents the value of the Sub-Account at the beginning of the base period. Effective yield is also calculated using the base period return. The effective yield is calculated by adding 1 to the base period return and raising that result to a power equal to 365 divided by 7 and subtracting 1 from the result. The calculation we use is: EFFECTIVE YIELD = [(BASE PERIOD RETURN + 1) TO THE POWER OF 365/7] - 1. ADDITIONAL MATERIALS We may provide information on various topics to Contract Owners and prospective Contract Owners in advertising, sales literature or other materials. These topics may include the relationship between sectors of the economy and the economy as a whole and its effect on various securities markets, investment strategies and techniques (such as value investing, dollar cost averaging and asset allocation), the advantages and disadvantages of investing in tax-deferred and taxable instruments, customer profiles and hypothetical purchase scenarios, financial management and tax and retirement planning, and other investment alternatives, including comparisons between the Contracts and the characteristics of and market for any alternatives. PERFORMANCE COMPARISONS Each Sub-Account may from time to time include in advertisements the ranking of its performance figures compared with performance figures of other annuity contract's sub-accounts with the same investment objectives which are created by Lipper Analytical Services, Morningstar, Inc. or other recognized ranking services. 7 ------------------------------------------------------------------------------- ACCUMULATION UNIT VALUES The following information should be read in conjunction with the financial statements for the Separate Account included in this Statement of Additional Information. There are several classes of Accumulation Unit Values under the Contract depending on the number of optional benefits you select. There are two tables below reflecting the Accumulation Unit Values for Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company. The tables show all classes of Accumulation Unit Values corresponding to all combinations of optional benefits. Tables showing only the highest and lowest possible Accumulation Unit Value appear in the prospectus, which assumes you select either no optional benefits or all optional benefits. HARTFORD LIFE INSURANCE COMPANY: SERIES II/IIR
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- AIM V.I. BASIC VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.515 $1.357 $1.301 $1.187 $1.017 Accumulation Unit Value at end of period $1.518 $1.515 $1.357 $1.301 $1.187 Number of Accumulation Units outstanding at end of period (in thousands) 4,128 4,027 3,551 3,218 1,301 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.498 $1.344 $1.291 $1.190 -- Accumulation Unit Value at end of period $1.498 $1.498 $1.344 $1.291 -- Number of Accumulation Units outstanding at end of period (in thousands) 410 481 478 449 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.490 $1.338 $1.287 $1.178 $1.011 Accumulation Unit Value at end of period $1.489 $1.490 $1.338 $1.287 $1.178 Number of Accumulation Units outstanding at end of period (in thousands) 3,631 3,965 4,988 6,087 4,961 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.486 $1.335 $1.285 $1.176 $1.011 Accumulation Unit Value at end of period $1.484 $1.486 $1.335 $1.285 $1.176 Number of Accumulation Units outstanding at end of period (in thousands) 7,750 8,599 9,322 10,045 7,259 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.475 $1.327 $1.278 $1.179 -- Accumulation Unit Value at end of period $1.470 $1.475 $1.327 $1.278 -- Number of Accumulation Units outstanding at end of period (in thousands) 6,507 6,897 7,037 5,086 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.475 $1.327 $1.278 $1.188 -- Accumulation Unit Value at end of period $1.470 $1.475 $1.327 $1.278 -- Number of Accumulation Units outstanding at end of period (in thousands) 6,507 6,897 7,037 5,086 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.463 $1.318 $1.272 $1.168 $1.005 Accumulation Unit Value at end of period $1.456 $1.463 $1.318 $1.272 $1.168 Number of Accumulation Units outstanding at end of period (in thousands) 7,946 10,445 11,931 14,046 11,364 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.453 $1.312 $1.268 $1.181 -- Accumulation Unit Value at end of period $1.444 $1.453 $1.312 $1.268 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,823 4,001 4,345 3,538 -- AIM V.I. CAPITAL APPRECIATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.419 $1.353 $1.260 $1.198 $1.022 Accumulation Unit Value at end of period $1.568 $1.419 $1.353 $1.260 $1.198 Number of Accumulation Units outstanding at end of period (in thousands) 2,046 1,892 694 486 120 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.403 $1.341 $1.251 $1.167 -- Accumulation Unit Value at end of period $1.547 $1.403 $1.341 $1.251 -- Number of Accumulation Units outstanding at end of period (in thousands) 203 268 99 80 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.396 $1.335 $1.247 $1.189 $1.016 Accumulation Unit Value at end of period $1.538 $1.396 $1.335 $1.247 $1.189 Number of Accumulation Units outstanding at end of period (in thousands) 1,443 1,504 738 892 615 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.392 $1.332 $1.245 $1.187 $1.016 Accumulation Unit Value at end of period $1.533 $1.392 $1.332 $1.245 $1.187 Number of Accumulation Units outstanding at end of period (in thousands) 3,133 3,945 1,660 1,869 1,582
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.381 $1.323 $1.239 $1.156 -- Accumulation Unit Value at end of period $1.519 $1.381 $1.323 $1.239 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,984 2,381 670 587 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.381 $1.323 $1.239 $1.203 -- Accumulation Unit Value at end of period $1.519 $1.381 $1.323 $1.239 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,984 2,381 670 587 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.370 $1.315 $1.233 $1.179 $1.010 Accumulation Unit Value at end of period $1.504 $1.370 $1.315 $1.233 $1.179 Number of Accumulation Units outstanding at end of period (in thousands) 3,851 5,291 1,717 1,862 1,730 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.361 $1.308 $1.228 $1.196 -- Accumulation Unit Value at end of period $1.492 $1.361 $1.308 $1.228 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,435 1,311 669 511 -- AIM V.I. CAPITAL DEVELOPMENT FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.553 -- -- -- -- (a) Accumulation Unit Value at end of period $9.789 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.550 -- -- -- -- (a) Accumulation Unit Value at end of period $9.784 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.549 -- -- -- -- (a) Accumulation Unit Value at end of period $9.781 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1 -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.548 -- -- -- -- (a) Accumulation Unit Value at end of period $9.780 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 8 -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.546 -- -- -- -- (a) Accumulation Unit Value at end of period $9.775 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.546 -- -- -- -- (a) Accumulation Unit Value at end of period $9.775 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.544 -- -- -- -- (a) Accumulation Unit Value at end of period $9.771 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.542 -- -- -- -- (a) Accumulation Unit Value at end of period $9.767 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- -- -- AIM V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.863 $10.303 $9.632 -- -- Accumulation Unit Value at end of period $12.654 $11.863 $10.303 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,035 1,101 2 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.819 $10.286 $9.628 -- -- Accumulation Unit Value at end of period $12.582 $11.819 $10.286 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 211 217 2 -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.798 $10.277 $9.627 -- -- Accumulation Unit Value at end of period $12.547 $11.798 $10.277 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 620 692 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.787 $10.273 $9.626 -- -- Accumulation Unit Value at end of period $12.529 $11.787 $10.273 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,159 1,208 2 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.754 $10.260 $9.623 -- -- Accumulation Unit Value at end of period $12.476 $11.754 $10.260 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2,459 2,669 4 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.754 $10.260 $9.623 -- -- Accumulation Unit Value at end of period $12.476 $11.754 $10.260 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2,459 2,669 4 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.722 $10.247 $9.621 -- -- Accumulation Unit Value at end of period $12.423 $11.722 $10.247 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 657 760 2 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.690 $10.234 $9.618 -- -- Accumulation Unit Value at end of period $12.370 $11.690 $10.234 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 964 1,006 -- -- -- AIM V.I. GOVERNMENT SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $1.095 $1.092 $1.079 $1.094 Accumulation Unit Value at end of period $1.174 $1.119 $1.095 $1.092 $1.079 Number of Accumulation Units outstanding at end of period (in thousands) 53,104 29,884 14,477 6,425 1,030 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.106 $1.085 $1.084 $1.085 -- Accumulation Unit Value at end of period $1.158 $1.106 $1.085 $1.084 -- Number of Accumulation Units outstanding at end of period (in thousands) 6,115 4,473 2,758 599 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.100 $1.080 $1.080 $1.071 $1.088 Accumulation Unit Value at end of period $1.151 $1.100 $1.080 $1.080 $1.071 Number of Accumulation Units outstanding at end of period (in thousands) 17,344 13,911 18,088 16,589 14,720 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.098 $1.078 $1.079 $1.070 $1.087 Accumulation Unit Value at end of period $1.147 $1.098 $1.078 $1.079 $1.070 Number of Accumulation Units outstanding at end of period (in thousands) 35,318 22,144 14,085 10,668 8,645 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.089 $1.071 $1.073 $1.075 -- Accumulation Unit Value at end of period $1.137 $1.089 $1.071 $1.073 -- Number of Accumulation Units outstanding at end of period (in thousands) 54,991 45,031 34,763 17,412 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.089 $1.071 $1.073 $1.070 -- Accumulation Unit Value at end of period $1.137 $1.089 $1.071 $1.073 -- Number of Accumulation Units outstanding at end of period (in thousands) 54,991 45,031 34,763 17,412 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.080 $1.064 $1.068 $1.062 $1.081 Accumulation Unit Value at end of period $1.126 $1.080 $1.064 $1.068 $1.062 Number of Accumulation Units outstanding at end of period (in thousands) 23,928 20,478 18,324 17,404 19,325 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.073 $1.059 $1.064 $1.064 -- Accumulation Unit Value at end of period $1.117 $1.073 $1.059 $1.064 -- Number of Accumulation Units outstanding at end of period (in thousands) 20,812 18,954 16,034 10,307 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ AIM V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.102 $1.662 $1.428 $1.167 $0.970 Accumulation Unit Value at end of period $2.379 $2.102 $1.662 $1.428 $1.167 Number of Accumulation Units outstanding at end of period (in thousands) 7,270 2,232 630 258 84 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.079 $1.646 $1.418 $1.283 -- Accumulation Unit Value at end of period $2.348 $2.079 $1.646 $1.418 -- Number of Accumulation Units outstanding at end of period (in thousands) 851 1,266 1,664 23 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $2.068 $1.639 $1.413 $1.159 $0.964 Accumulation Unit Value at end of period $2.333 $2.068 $1.639 $1.413 $1.159 Number of Accumulation Units outstanding at end of period (in thousands) 1,938 675 839 304 184 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $2.062 $1.636 $1.411 $1.157 $0.964 Accumulation Unit Value at end of period $2.326 $2.062 $1.636 $1.411 $1.157 Number of Accumulation Units outstanding at end of period (in thousands) 5,913 4,739 1,145 842 354 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.046 $1.625 $1.404 $1.271 -- Accumulation Unit Value at end of period $2.304 $2.046 $1.625 $1.404 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,686 2,772 1,923 626 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.046 $1.625 $1.404 $1.188 -- Accumulation Unit Value at end of period $2.304 $2.046 $1.625 $1.404 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,686 2,772 1,923 626 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $2.030 $1.615 $1.397 $1.149 $0.959 Accumulation Unit Value at end of period $2.283 $2.030 $1.615 $1.397 $1.149 Number of Accumulation Units outstanding at end of period (in thousands) 2,358 1,370 993 731 434 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.016 $1.607 $1.392 $1.181 -- Accumulation Unit Value at end of period $2.264 $2.016 $1.607 $1.392 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,498 1,243 1,818 470 -- AIM V.I. LARGE CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.474 $10.764 $9.456 -- -- Accumulation Unit Value at end of period $13.091 $11.474 $10.764 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 160 94 2 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.432 $10.746 $9.453 -- -- Accumulation Unit Value at end of period $13.017 $11.432 $10.746 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 21 18 5 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.411 $10.737 $9.451 -- -- Accumulation Unit Value at end of period $12.980 $11.411 $10.737 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 182 197 3 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.401 $10.732 $9.450 -- -- Accumulation Unit Value at end of period $12.962 $11.401 $10.732 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 214 226 3 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.369 $10.719 $9.448 -- -- Accumulation Unit Value at end of period $12.907 $11.369 $10.719 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 117 111 7 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.369 $10.719 $9.448 -- -- Accumulation Unit Value at end of period $12.907 $11.369 $10.719 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 117 111 7 -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.338 $10.705 $9.445 -- -- Accumulation Unit Value at end of period $12.852 $11.338 $10.705 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 309 325 3 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.307 $10.692 $9.443 -- -- Accumulation Unit Value at end of period $12.797 $11.307 $10.692 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 128 127 1 -- -- AIM V.I. MID CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.663 $1.515 $1.427 $1.271 $1.111 Accumulation Unit Value at end of period $1.797 $1.663 $1.515 $1.427 $1.271 Number of Accumulation Units outstanding at end of period (in thousands) 6,210 4,974 4,285 2,959 1,123 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.644 $1.501 $1.417 $1.333 -- Accumulation Unit Value at end of period $1.773 $1.644 $1.501 $1.417 -- Number of Accumulation Units outstanding at end of period (in thousands) 379 361 284 184 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.635 $1.495 $1.412 $1.261 $1.104 Accumulation Unit Value at end of period $1.762 $1.635 $1.495 $1.412 $1.261 Number of Accumulation Units outstanding at end of period (in thousands) 3,875 4,010 5,481 5,563 4,313 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.631 $1.491 $1.410 $1.260 $1.103 Accumulation Unit Value at end of period $1.757 $1.631 $1.491 $1.410 $1.260 Number of Accumulation Units outstanding at end of period (in thousands) 9,718 9,619 9,568 9,102 6,768 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.618 $1.482 $1.403 $1.320 -- Accumulation Unit Value at end of period $1.740 $1.618 $1.482 $1.403 -- Number of Accumulation Units outstanding at end of period (in thousands) 8,498 8,591 8,284 5,094 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.618 $1.482 $1.403 $1.278 -- Accumulation Unit Value at end of period $1.740 $1.618 $1.482 $1.403 -- Number of Accumulation Units outstanding at end of period (in thousands) 8,498 8,591 8,284 5,094 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.606 $1.472 $1.396 $1.251 $1.097 Accumulation Unit Value at end of period $1.724 $1.606 $1.472 $1.396 $1.251 Number of Accumulation Units outstanding at end of period (in thousands) 9,832 11,984 13,307 13,227 10,856 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.595 $1.465 $1.391 $1.271 -- Accumulation Unit Value at end of period $1.710 $1.595 $1.465 $1.391 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,572 4,515 5,229 3,493 -- AIM V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.394 $12.423 $11.647 $10.790 $10.288 Accumulation Unit Value at end of period $14.937 $14.394 $12.423 $11.647 $10.790 Number of Accumulation Units outstanding at end of period (in thousands) 407 134 78 34 2 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.302 $12.368 $11.619 $10.731 -- Accumulation Unit Value at end of period $14.812 $14.302 $12.368 $11.619 -- Number of Accumulation Units outstanding at end of period (in thousands) 18 7 5 1 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.256 $12.341 $11.605 $10.783 $10.286 Accumulation Unit Value at end of period $14.750 $14.256 $12.341 $11.605 $10.783 Number of Accumulation Units outstanding at end of period (in thousands) 150 90 80 43 2 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.233 $12.327 $11.598 $10.782 $10.286 Accumulation Unit Value at end of period $14.719 $14.233 $12.327 $11.598 $10.782 Number of Accumulation Units outstanding at end of period (in thousands) 329 154 83 67 17
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.165 $12.287 $11.577 $10.697 -- Accumulation Unit Value at end of period $14.626 $14.165 $12.287 $11.577 -- Number of Accumulation Units outstanding at end of period (in thousands) 274 193 139 99 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.165 $12.287 $11.577 $11.064 -- Accumulation Unit Value at end of period $14.626 $14.165 $12.287 $11.577 -- Number of Accumulation Units outstanding at end of period (in thousands) 274 193 139 99 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.097 $12.246 $11.556 $10.775 $10.284 Accumulation Unit Value at end of period $14.534 $14.097 $12.246 $11.556 $10.775 Number of Accumulation Units outstanding at end of period (in thousands) 228 159 118 57 7 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.029 $12.205 $11.535 $11.054 -- Accumulation Unit Value at end of period $14.443 $14.029 $12.205 $11.535 -- Number of Accumulation Units outstanding at end of period (in thousands) 156 109 81 74 -- AMERICAN FUNDS ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.608 $12.913 $11.993 $11.220 $10.120 Accumulation Unit Value at end of period $15.357 $14.608 $12.913 $11.993 $11.220 Number of Accumulation Units outstanding at end of period (in thousands) 4,853 4,018 3,146 1,968 287 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.301 $11.781 $10.963 $10.533 -- Accumulation Unit Value at end of period $13.955 $13.301 $11.781 $10.963 -- Number of Accumulation Units outstanding at end of period (in thousands) 562 576 475 270 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.202 $11.705 $10.903 $10.231 $9.244 Accumulation Unit Value at end of period $13.836 $13.202 $11.705 $10.903 $10.231 Number of Accumulation Units outstanding at end of period (in thousands) 2,717 2,743 2,789 2,488 1,791 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.486 $11.963 $11.149 $10.467 $9.460 Accumulation Unit Value at end of period $14.127 $13.486 $11.963 $11.149 $10.467 Number of Accumulation Units outstanding at end of period (in thousands) 4,917 4,853 4,437 4,293 3,137 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.360 $11.869 $11.078 $10.648 -- Accumulation Unit Value at end of period $13.974 $13.360 $11.869 $11.078 -- Number of Accumulation Units outstanding at end of period (in thousands) 5,554 5,527 4,840 3,024 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.360 $11.869 $11.078 $10.487 -- Accumulation Unit Value at end of period $13.974 $13.360 $11.869 $11.078 -- Number of Accumulation Units outstanding at end of period (in thousands) 5,554 5,527 4,840 3,024 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.905 $11.482 $10.733 $10.107 $9.151 Accumulation Unit Value at end of period $13.478 $12.905 $11.482 $10.733 $10.107 Number of Accumulation Units outstanding at end of period (in thousands) 3,238 3,366 3,246 3,421 2,812 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.820 $11.424 $10.694 $10.151 -- Accumulation Unit Value at end of period $13.369 $12.820 $11.424 $10.694 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,392 2,550 2,650 2,164 -- AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.222 $1.055 $0.997 $0.921 $0.790 Accumulation Unit Value at end of period $1.230 $1.222 $1.055 $0.997 $0.921 Number of Accumulation Units outstanding at end of period (in thousands) 21,965 16,908 12,671 8,579 1,634 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.208 $1.045 $0.989 $0.929 -- Accumulation Unit Value at end of period $1.213 $1.208 $1.045 $0.989 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,264 2,164 1,821 1,222 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.201 $1.040 $0.986 $0.913 $0.785 Accumulation Unit Value at end of period $1.205 $1.201 $1.040 $0.986 $0.913 Number of Accumulation Units outstanding at end of period (in thousands) 15,599 16,259 16,004 14,944 10,119 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.198 $1.038 $0.984 $0.912 $0.784 Accumulation Unit Value at end of period $1.201 $1.198 $1.038 $0.984 $0.912 Number of Accumulation Units outstanding at end of period (in thousands) 28,692 32,115 30,389 28,421 20,893 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.188 $1.031 $0.979 $0.919 -- Accumulation Unit Value at end of period $1.190 $1.188 $1.031 $0.979 -- Number of Accumulation Units outstanding at end of period (in thousands) 26,898 26,457 23,435 14,674 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.188 $1.031 $0.979 $0.925 -- Accumulation Unit Value at end of period $1.190 $1.188 $1.031 $0.979 -- Number of Accumulation Units outstanding at end of period (in thousands) 26,898 26,457 23,435 14,674 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.178 $1.024 $0.974 $0.905 $0.780 Accumulation Unit Value at end of period $1.178 $1.178 $1.024 $0.974 $0.905 Number of Accumulation Units outstanding at end of period (in thousands) 22,667 24,866 26,020 27,652 24,376 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.170 $1.018 $0.970 $0.919 -- Accumulation Unit Value at end of period $1.169 $1.170 $1.018 $0.970 -- Number of Accumulation Units outstanding at end of period (in thousands) 11,387 10,568 11,082 8,662 -- AMERICAN FUNDS BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.281 $13.530 $13.499 $12.943 $12.513 Accumulation Unit Value at end of period $14.558 $14.281 $13.530 $13.499 $12.943 Number of Accumulation Units outstanding at end of period (in thousands) 4,138 2,781 1,713 1,014 230 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.872 $13.169 $13.166 $13.061 -- Accumulation Unit Value at end of period $14.114 $13.872 $13.169 $13.166 -- Number of Accumulation Units outstanding at end of period (in thousands) 562 490 413 297 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.769 $13.084 $13.094 $12.592 $12.195 Accumulation Unit Value at end of period $13.994 $13.769 $13.084 $13.094 $12.592 Number of Accumulation Units outstanding at end of period (in thousands) 2,156 2,165 2,216 2,203 1,834 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.271 $12.617 $12.633 $12.155 $11.775 Accumulation Unit Value at end of period $13.482 $13.271 $12.617 $12.633 $12.155 Number of Accumulation Units outstanding at end of period (in thousands) 3,471 2,849 2,472 2,268 1,614 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.147 $12.518 $12.553 $12.459 -- Accumulation Unit Value at end of period $13.336 $13.147 $12.518 $12.553 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,635 3,352 2,749 1,471 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.147 $12.518 $12.553 $12.184 -- Accumulation Unit Value at end of period $13.336 $13.147 $12.518 $12.553 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,635 3,352 2,749 1,471 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.460 $12.835 $12.890 $12.439 $12.072 Accumulation Unit Value at end of period $13.632 $13.460 $12.835 $12.890 $12.439 Number of Accumulation Units outstanding at end of period (in thousands) 2,606 2,676 2,601 2,546 2,068 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.371 $12.769 $12.843 $12.500 -- Accumulation Unit Value at end of period $13.522 $13.371 $12.769 $12.843 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,470 1,363 1,300 1,000 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ AMERICAN FUNDS GLOBAL BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.207 $10.028 -- -- -- Accumulation Unit Value at end of period $10.999 $10.207 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 709 79 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.202 $10.026 -- -- -- Accumulation Unit Value at end of period $10.972 $10.202 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 98 12 -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.199 $10.025 -- -- -- Accumulation Unit Value at end of period $10.958 $10.199 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 225 8 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.198 $10.025 -- -- -- Accumulation Unit Value at end of period $10.951 $10.198 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 300 14 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.194 $10.023 -- -- -- Accumulation Unit Value at end of period $10.931 $10.194 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 351 16 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.194 $10.023 -- -- -- Accumulation Unit Value at end of period $10.931 $10.194 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 351 16 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.191 $10.022 -- -- -- Accumulation Unit Value at end of period $10.911 $10.191 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 139 39 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.187 $10.021 -- -- -- Accumulation Unit Value at end of period $10.890 $10.187 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 109 29 -- -- -- AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.921 $9.990 -- -- -- Accumulation Unit Value at end of period $12.140 $10.921 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2,980 885 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.905 $9.989 -- -- -- Accumulation Unit Value at end of period $12.097 $10.905 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 182 94 -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.897 $9.988 -- -- -- Accumulation Unit Value at end of period $12.076 $10.897 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 587 128 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.893 $9.988 -- -- -- Accumulation Unit Value at end of period $12.066 $10.893 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2,033 657 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.881 $9.987 -- -- -- Accumulation Unit Value at end of period $12.034 $10.881 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,822 775 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.881 $9.987 -- -- -- Accumulation Unit Value at end of period $12.034 $10.881 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,822 775 -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.868 $9.986 -- -- -- Accumulation Unit Value at end of period $12.003 $10.868 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 715 194 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.856 $9.985 -- -- -- Accumulation Unit Value at end of period $11.972 $10.856 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 308 154 -- -- -- AMERICAN FUNDS GLOBAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.715 $13.227 $11.752 $10.496 $8.622 Accumulation Unit Value at end of period $17.807 $15.715 $13.227 $11.752 $10.496 Number of Accumulation Units outstanding at end of period (in thousands) 1,326 866 594 332 46 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.703 $13.243 $11.790 $10.942 -- Accumulation Unit Value at end of period $17.757 $15.703 $13.243 $11.790 -- Number of Accumulation Units outstanding at end of period (in thousands) 191 178 147 132 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.585 $13.157 $11.725 $10.504 $8.643 Accumulation Unit Value at end of period $17.607 $15.585 $13.157 $11.725 $10.504 Number of Accumulation Units outstanding at end of period (in thousands) 778 822 826 707 627 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.126 $10.241 $9.132 $8.184 $6.736 Accumulation Unit Value at end of period $13.691 $12.126 $10.241 $9.132 $8.184 Number of Accumulation Units outstanding at end of period (in thousands) 1,640 1,283 983 757 548 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.013 $10.161 $9.074 $8.425 -- Accumulation Unit Value at end of period $13.543 $12.013 $10.161 $9.074 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,625 1,378 1,049 553 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.013 $10.161 $9.074 $8.260 -- Accumulation Unit Value at end of period $13.543 $12.013 $10.161 $9.074 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,625 1,378 1,049 553 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.235 $12.907 $11.543 $10.376 $8.555 Accumulation Unit Value at end of period $17.151 $15.235 $12.907 $11.543 $10.376 Number of Accumulation Units outstanding at end of period (in thousands) 768 781 749 664 548 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.135 $12.841 $11.501 $10.499 -- Accumulation Unit Value at end of period $17.012 $15.135 $12.841 $11.501 -- Number of Accumulation Units outstanding at end of period (in thousands) 463 421 415 348 -- AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.960 $16.308 $13.187 $11.057 $8.281 Accumulation Unit Value at end of period $23.912 $19.960 $16.308 $13.187 $11.057 Number of Accumulation Units outstanding at end of period (in thousands) 902 659 408 233 47 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $21.000 $17.193 $13.930 $12.513 -- Accumulation Unit Value at end of period $25.108 $21.000 $17.193 $13.930 -- Number of Accumulation Units outstanding at end of period (in thousands) 156 147 119 102 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $20.843 $17.081 $13.853 $11.651 $8.741 Accumulation Unit Value at end of period $24.896 $20.843 $17.081 $13.853 $11.651 Number of Accumulation Units outstanding at end of period (in thousands) 406 460 441 371 304 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.426 $12.648 $10.263 $8.636 $6.481 Accumulation Unit Value at end of period $18.415 $15.426 $12.648 $10.263 $8.636 Number of Accumulation Units outstanding at end of period (in thousands) 1,128 878 791 646 397
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.282 $12.549 $10.198 $9.165 -- Accumulation Unit Value at end of period $18.216 $15.282 $12.549 $10.198 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,367 1,285 987 519 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.282 $12.549 $10.198 $8.946 -- Accumulation Unit Value at end of period $18.216 $15.282 $12.549 $10.198 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,367 1,285 987 519 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $20.375 $16.756 $13.637 $11.509 $8.652 Accumulation Unit Value at end of period $24.251 $20.375 $16.756 $13.637 $11.509 Number of Accumulation Units outstanding at end of period (in thousands) 572 590 559 576 426 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.241 $16.671 $13.588 $11.953 -- Accumulation Unit Value at end of period $24.055 $20.241 $16.671 $13.588 -- Number of Accumulation Units outstanding at end of period (in thousands) 414 418 454 297 -- AMERICAN FUNDS GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.955 $13.753 $11.997 $10.810 $9.337 Accumulation Unit Value at end of period $16.576 $14.955 $13.753 $11.997 $10.810 Number of Accumulation Units outstanding at end of period (in thousands) 12,565 8,039 4,469 2,660 601 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.287 $13.165 $11.508 $10.639 -- Accumulation Unit Value at end of period $15.805 $14.287 $13.165 $11.508 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,680 1,631 1,291 882 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.181 $13.080 $11.445 $10.342 $8.949 Accumulation Unit Value at end of period $15.671 $14.181 $13.080 $11.445 $10.342 Number of Accumulation Units outstanding at end of period (in thousands) 5,517 5,731 5,724 5,624 4,619 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.884 $9.121 $7.985 $7.219 $6.248 Accumulation Unit Value at end of period $10.917 $9.884 $9.121 $7.985 $7.219 Number of Accumulation Units outstanding at end of period (in thousands) 15,115 13,065 10,794 10,297 7,289 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.792 $9.050 $7.934 $7.338 -- Accumulation Unit Value at end of period $10.799 $9.792 $9.050 $7.934 -- Number of Accumulation Units outstanding at end of period (in thousands) 20,944 19,287 15,190 8,603 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.792 $9.050 $7.934 $7.361 -- Accumulation Unit Value at end of period $10.799 $9.792 $9.050 $7.934 -- Number of Accumulation Units outstanding at end of period (in thousands) 20,944 19,287 15,190 8,603 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.862 $12.831 $11.266 $10.217 $8.858 Accumulation Unit Value at end of period $15.265 $13.862 $12.831 $11.266 $10.217 Number of Accumulation Units outstanding at end of period (in thousands) 7,520 8,035 8,338 8,451 7,382 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.770 $12.765 $11.225 $10.443 -- Accumulation Unit Value at end of period $15.142 $13.770 $12.765 $11.225 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,458 4,490 4,456 3,122 -- AMERICAN FUNDS GROWTH-INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.692 $13.806 $13.223 $12.143 $10.422 Accumulation Unit Value at end of period $16.262 $15.692 $13.806 $13.223 $12.143 Number of Accumulation Units outstanding at end of period (in thousands) 11,554 7,464 4,415 2,440 441 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.853 $12.213 $11.720 $10.993 -- Accumulation Unit Value at end of period $14.328 $13.853 $12.213 $11.720 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,818 1,743 1,396 815 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.750 $12.134 $11.656 $10.736 $9.231 Accumulation Unit Value at end of period $14.207 $13.750 $12.134 $11.656 $10.736 Number of Accumulation Units outstanding at end of period (in thousands) 5,872 6,112 6,117 6,094 4,994 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.928 $12.297 $11.819 $10.891 $9.367 Accumulation Unit Value at end of period $14.384 $13.928 $12.297 $11.819 $10.891 Number of Accumulation Units outstanding at end of period (in thousands) 9,920 9,055 7,412 6,810 4,917 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.798 $12.201 $11.744 $11.021 -- Accumulation Unit Value at end of period $14.228 $13.798 $12.201 $11.744 -- Number of Accumulation Units outstanding at end of period (in thousands) 15,663 14,817 11,884 6,349 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.798 $12.201 $11.744 $11.065 -- Accumulation Unit Value at end of period $14.228 $13.798 $12.201 $11.744 -- Number of Accumulation Units outstanding at end of period (in thousands) 15,663 14,817 11,884 6,349 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.441 $11.903 $11.474 $10.605 $9.137 Accumulation Unit Value at end of period $13.839 $13.441 $11.903 $11.474 $10.605 Number of Accumulation Units outstanding at end of period (in thousands) 7,054 7,548 7,581 7,823 6,950 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.352 $11.842 $11.432 $10.801 -- Accumulation Unit Value at end of period $13.727 $13.352 $11.842 $11.432 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,830 4,880 4,875 3,306 -- AMERICAN FUNDS INTERNATIONAL FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.583 $13.275 $11.074 $9.407 $7.437 Accumulation Unit Value at end of period $18.452 $15.583 $13.275 $11.074 $9.407 Number of Accumulation Units outstanding at end of period (in thousands) 3,850 2,766 1,497 776 81 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.258 $13.878 $11.600 $10.613 -- Accumulation Unit Value at end of period $19.213 $16.258 $13.878 $11.600 -- Number of Accumulation Units outstanding at end of period (in thousands) 561 583 391 187 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $16.137 $13.788 $11.537 $9.830 $7.784 Accumulation Unit Value at end of period $19.051 $16.137 $13.788 $11.537 $9.830 Number of Accumulation Units outstanding at end of period (in thousands) 1,686 1,740 1,599 1,433 992 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.330 $10.541 $8.824 $7.522 $5.958 Accumulation Unit Value at end of period $14.549 $12.330 $10.541 $8.824 $7.522 Number of Accumulation Units outstanding at end of period (in thousands) 3,116 2,588 1,626 1,290 696 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.215 $10.458 $8.768 $8.026 -- Accumulation Unit Value at end of period $14.392 $12.215 $10.458 $8.768 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,961 4,877 3,697 2,068 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.215 $10.458 $8.768 $7.636 -- Accumulation Unit Value at end of period $14.392 $12.215 $10.458 $8.768 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,961 4,877 3,697 2,068 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.774 $13.526 $11.357 $9.710 $7.705 Accumulation Unit Value at end of period $18.558 $15.774 $13.526 $11.357 $9.710 Number of Accumulation Units outstanding at end of period (in thousands) 1,535 1,665 1,539 1,361 1,040 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.670 $13.457 $11.316 $9.882 -- Accumulation Unit Value at end of period $18.408 $15.670 $13.457 $11.316 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,204 1,268 1,086 825 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ AMERICAN FUNDS NEW WORLD FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.315 $17.823 $14.962 $12.766 $10.155 Accumulation Unit Value at end of period $30.412 $23.315 $17.823 $14.962 $12.766 Number of Accumulation Units outstanding at end of period (in thousands) 775 471 278 198 41 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $21.829 $16.720 $14.064 $12.790 -- Accumulation Unit Value at end of period $28.416 $21.829 $16.720 $14.064 -- Number of Accumulation Units outstanding at end of period (in thousands) 118 97 80 86 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $21.665 $16.611 $13.987 $11.970 $9.538 Accumulation Unit Value at end of period $28.176 $21.665 $16.611 $13.987 $11.970 Number of Accumulation Units outstanding at end of period (in thousands) 288 256 198 172 129 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $20.464 $15.698 $13.224 $11.323 $9.025 Accumulation Unit Value at end of period $26.599 $20.464 $15.698 $13.224 $11.323 Number of Accumulation Units outstanding at end of period (in thousands) 755 551 329 225 139 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $20.273 $15.575 $13.140 $11.956 -- Accumulation Unit Value at end of period $26.312 $20.273 $15.575 $13.140 -- Number of Accumulation Units outstanding at end of period (in thousands) 919 700 414 144 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.273 $15.575 $13.140 $11.430 -- Accumulation Unit Value at end of period $26.312 $20.273 $15.575 $13.140 -- Number of Accumulation Units outstanding at end of period (in thousands) 919 700 414 144 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $21.179 $16.295 $13.769 $11.824 $9.442 Accumulation Unit Value at end of period $27.447 $21.179 $16.295 $13.769 $11.824 Number of Accumulation Units outstanding at end of period (in thousands) 458 413 334 270 221 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $21.039 $16.212 $13.719 $11.966 -- Accumulation Unit Value at end of period $27.225 $21.039 $16.212 $13.719 -- Number of Accumulation Units outstanding at end of period (in thousands) 218 172 155 83 -- FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.878 $10.480 $9.408 -- -- Accumulation Unit Value at end of period $12.269 $10.878 $10.480 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 461 313 95 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.838 $10.463 $9.405 -- -- Accumulation Unit Value at end of period $12.200 $10.838 $10.463 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 49 43 21 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.818 $10.454 $9.404 -- -- Accumulation Unit Value at end of period $12.165 $10.818 $10.454 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 148 80 12 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.808 $10.450 $9.403 -- -- Accumulation Unit Value at end of period $12.148 $10.808 $10.450 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 284 174 47 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.778 $10.437 $9.400 -- -- Accumulation Unit Value at end of period $12.096 $10.778 $10.437 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 394 360 229 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.778 $10.437 $9.400 -- -- Accumulation Unit Value at end of period $12.096 $10.778 $10.437 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 394 360 229 -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.749 $10.424 $9.398 -- -- Accumulation Unit Value at end of period $12.045 $10.749 $10.424 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 64 37 16 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.719 $10.411 $9.396 -- -- Accumulation Unit Value at end of period $11.994 $10.719 $10.411 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 99 82 30 -- -- FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.791 $13.537 $13.504 $12.022 $10.500 Accumulation Unit Value at end of period $16.165 $15.791 $13.537 $13.504 $12.022 Number of Accumulation Units outstanding at end of period (in thousands) 20,982 13,732 8,121 3,878 619 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.637 $13.431 $13.426 $12.764 -- Accumulation Unit Value at end of period $15.975 $15.637 $13.431 $13.426 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,079 1,796 1,173 84 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.564 $13.382 $13.390 $11.956 $10.461 Accumulation Unit Value at end of period $15.884 $15.564 $13.382 $13.390 $11.956 Number of Accumulation Units outstanding at end of period (in thousands) 3,803 2,930 2,223 1,574 689 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.528 $13.357 $13.372 $11.946 $10.455 Accumulation Unit Value at end of period $15.839 $15.528 $13.357 $13.372 $11.946 Number of Accumulation Units outstanding at end of period (in thousands) 11,435 8,315 5,994 5,196 3,367 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.419 $13.284 $13.318 $12.668 -- Accumulation Unit Value at end of period $15.705 $15.419 $13.284 $13.318 -- Number of Accumulation Units outstanding at end of period (in thousands) 21,166 19,327 15,603 7,079 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.419 $13.284 $13.318 $12.065 -- Accumulation Unit Value at end of period $15.705 $15.419 $13.284 $13.318 -- Number of Accumulation Units outstanding at end of period (in thousands) 21,166 19,327 15,603 7,079 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.312 $13.211 $13.265 $11.886 $10.421 Accumulation Unit Value at end of period $15.572 $15.312 $13.211 $13.265 $11.886 Number of Accumulation Units outstanding at end of period (in thousands) 3,744 3,456 3,030 2,790 2,172 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.211 $13.144 $13.217 $12.007 -- Accumulation Unit Value at end of period $15.446 $15.211 $13.144 $13.217 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,505 3,535 3,423 1,995 -- FRANKLIN LARGE CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.066 $11.029 $11.061 $10.388 $9.177 Accumulation Unit Value at end of period $12.646 $12.066 $11.029 $11.061 $10.388 Number of Accumulation Units outstanding at end of period (in thousands) 1,112 895 541 294 49 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.948 $10.942 $10.997 $10.300 -- Accumulation Unit Value at end of period $12.497 $11.948 $10.942 $10.997 -- Number of Accumulation Units outstanding at end of period (in thousands) 152 140 88 15 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.893 $10.902 $10.968 $10.331 $9.142 Accumulation Unit Value at end of period $12.427 $11.893 $10.902 $10.968 $10.331 Number of Accumulation Units outstanding at end of period (in thousands) 401 361 305 205 37 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.865 $10.882 $10.953 $10.322 $9.137 Accumulation Unit Value at end of period $12.392 $11.865 $10.882 $10.953 $10.322 Number of Accumulation Units outstanding at end of period (in thousands) 996 826 540 413 221
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.782 $10.823 $10.909 $10.223 -- Accumulation Unit Value at end of period $12.287 $11.782 $10.823 $10.909 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,629 1,614 1,355 722 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.782 $10.823 $10.909 $10.481 -- Accumulation Unit Value at end of period $12.287 $11.782 $10.823 $10.909 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,629 1,614 1,355 722 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.700 $10.763 $10.866 $10.270 $9.107 Accumulation Unit Value at end of period $12.183 $11.700 $10.763 $10.866 $10.270 Number of Accumulation Units outstanding at end of period (in thousands) 600 477 410 352 236 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.622 $10.708 $10.826 $10.430 -- Accumulation Unit Value at end of period $12.084 $11.622 $10.708 $10.826 -- Number of Accumulation Units outstanding at end of period (in thousands) 651 616 607 426 -- FRANKLIN LARGE CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.824 $10.315 $9.708 -- -- Accumulation Unit Value at end of period $11.634 $11.824 $10.315 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 170 93 9 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.780 $10.297 $9.704 -- -- Accumulation Unit Value at end of period $11.569 $11.780 $10.297 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 18 16 7 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.759 $10.289 $9.703 -- -- Accumulation Unit Value at end of period $11.536 $11.759 $10.289 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 75 67 14 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.748 $10.284 $9.702 -- -- Accumulation Unit Value at end of period $11.520 $11.748 $10.284 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 166 119 16 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.716 $10.272 $9.699 -- -- Accumulation Unit Value at end of period $11.471 $11.716 $10.272 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 111 135 62 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.716 $10.272 $9.699 -- -- Accumulation Unit Value at end of period $11.471 $11.716 $10.272 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 111 135 62 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.683 $10.259 $9.697 -- -- Accumulation Unit Value at end of period $11.422 $11.683 $10.259 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 36 17 6 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.651 $10.246 $9.695 -- -- Accumulation Unit Value at end of period $11.374 $11.651 $10.246 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 31 16 5 -- -- FRANKLIN RISING DIVIDENDS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.628 $13.525 $13.254 $12.103 $10.476 Accumulation Unit Value at end of period $15.004 $15.628 $13.525 $13.254 $12.103 Number of Accumulation Units outstanding at end of period (in thousands) 7,350 4,260 2,034 964 112
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.514 $13.453 $13.210 $12.344 -- Accumulation Unit Value at end of period $14.865 $15.514 $13.453 $13.210 -- Number of Accumulation Units outstanding at end of period (in thousands) 587 529 270 17 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.457 $13.417 $13.188 $12.079 $10.473 Accumulation Unit Value at end of period $14.795 $15.457 $13.417 $13.188 $12.079 Number of Accumulation Units outstanding at end of period (in thousands) 1,588 1,250 888 667 129 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.429 $13.399 $13.177 $12.075 $10.473 Accumulation Unit Value at end of period $14.761 $15.429 $13.399 $13.177 $12.075 Number of Accumulation Units outstanding at end of period (in thousands) 3,700 2,461 1,392 1,223 683 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.344 $13.345 $13.144 $12.288 -- Accumulation Unit Value at end of period $14.658 $15.344 $13.345 $13.144 -- Number of Accumulation Units outstanding at end of period (in thousands) 6,349 5,845 4,251 1,935 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.344 $13.345 $13.144 $12.202 -- Accumulation Unit Value at end of period $14.658 $15.344 $13.345 $13.144 -- Number of Accumulation Units outstanding at end of period (in thousands) 6,349 5,845 4,251 1,935 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.260 $13.292 $13.111 $12.051 $10.470 Accumulation Unit Value at end of period $14.555 $15.260 $13.292 $13.111 $12.051 Number of Accumulation Units outstanding at end of period (in thousands) 1,328 1,149 873 766 378 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.176 $13.239 $13.078 $12.174 -- Accumulation Unit Value at end of period $14.454 $15.176 $13.239 $13.078 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,354 1,395 1,322 829 -- FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.254 -- -- -- -- (a) Accumulation Unit Value at end of period $9.253 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.251 -- -- -- -- (a) Accumulation Unit Value at end of period $9.248 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.250 -- -- -- -- (a) Accumulation Unit Value at end of period $9.246 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.249 -- -- -- -- (a) Accumulation Unit Value at end of period $9.244 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 8 -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.247 -- -- -- -- (a) Accumulation Unit Value at end of period $9.240 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.247 -- -- -- -- (a) Accumulation Unit Value at end of period $9.240 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.245 -- -- -- -- (a) Accumulation Unit Value at end of period $9.237 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.243 -- -- -- -- (a) Accumulation Unit Value at end of period $9.233 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.943 $12.070 $11.675 $10.616 $8.778 Accumulation Unit Value at end of period $14.205 $12.943 $12.070 $11.675 $10.616 Number of Accumulation Units outstanding at end of period (in thousands) 969 591 360 261 96 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.406 $12.526 $12.141 $11.282 -- Accumulation Unit Value at end of period $14.683 $13.406 $12.526 $12.141 -- Number of Accumulation Units outstanding at end of period (in thousands) 105 116 158 122 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.305 $12.445 $12.074 $11.011 $9.121 Accumulation Unit Value at end of period $14.559 $13.305 $12.445 $12.074 $11.011 Number of Accumulation Units outstanding at end of period (in thousands) 687 707 709 788 651 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $7.718 $7.223 $7.011 $6.397 $5.300 Accumulation Unit Value at end of period $8.441 $7.718 $7.223 $7.011 $6.397 Number of Accumulation Units outstanding at end of period (in thousands) 2,126 1,907 1,828 1,804 1,290 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $7.646 $7.166 $6.966 $6.477 -- Accumulation Unit Value at end of period $8.350 $7.646 $7.166 $6.966 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,648 1,520 1,222 743 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.646 $7.166 $6.966 $6.572 -- Accumulation Unit Value at end of period $8.350 $7.646 $7.166 $6.966 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,648 1,520 1,222 743 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.006 $12.208 $11.886 $10.877 $9.028 Accumulation Unit Value at end of period $14.182 $13.006 $12.208 $11.886 $10.877 Number of Accumulation Units outstanding at end of period (in thousands) 995 1,049 1,057 1,103 1,058 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.920 $12.145 $11.842 $11.202 -- Accumulation Unit Value at end of period $14.067 $12.920 $12.145 $11.842 -- Number of Accumulation Units outstanding at end of period (in thousands) 518 426 426 325 -- FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.961 $14.910 $14.856 $13.687 $12.843 Accumulation Unit Value at end of period $16.724 $15.961 $14.910 $14.856 $13.687 Number of Accumulation Units outstanding at end of period (in thousands) 2,126 1,409 834 459 95 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.392 $14.407 $14.383 $14.018 -- Accumulation Unit Value at end of period $16.095 $15.392 $14.407 $14.383 -- Number of Accumulation Units outstanding at end of period (in thousands) 303 340 287 126 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.277 $14.314 $14.304 $13.219 $12.425 Accumulation Unit Value at end of period $15.959 $15.277 $14.314 $14.304 $13.219 Number of Accumulation Units outstanding at end of period (in thousands) 1,005 867 783 713 489 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.676 $13.758 $13.755 $12.718 $11.958 Accumulation Unit Value at end of period $15.324 $14.676 $13.758 $13.755 $12.718 Number of Accumulation Units outstanding at end of period (in thousands) 1,979 1,532 1,211 1,067 647 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.539 $13.650 $13.668 $13.328 -- Accumulation Unit Value at end of period $15.158 $14.539 $13.650 $13.668 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,315 1,900 1,677 744 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.539 $13.650 $13.668 $12.782 -- Accumulation Unit Value at end of period $15.158 $14.539 $13.650 $13.668 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,315 1,900 1,677 744 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.934 $14.041 $14.081 $13.058 $12.299 Accumulation Unit Value at end of period $15.546 $14.934 $14.041 $14.081 $13.058 Number of Accumulation Units outstanding at end of period (in thousands) 1,370 1,290 1,219 1,191 974 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.835 $13.970 $14.030 $13.157 -- Accumulation Unit Value at end of period $15.420 $14.835 $13.970 $14.030 -- Number of Accumulation Units outstanding at end of period (in thousands) 826 749 731 470 -- HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.129 $1.093 $1.077 $1.081 $1.086 Accumulation Unit Value at end of period $1.169 $1.129 $1.093 $1.077 $1.081 Number of Accumulation Units outstanding at end of period (in thousands) 25,415 16,822 9,835 4,098 476 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.118 $1.084 $1.071 $1.071 -- Accumulation Unit Value at end of period $1.155 $1.118 $1.084 $1.071 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,733 2,792 1,830 957 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.110 $1.077 $1.065 $1.073 $1.079 Accumulation Unit Value at end of period $1.145 $1.110 $1.077 $1.065 $1.073 Number of Accumulation Units outstanding at end of period (in thousands) 17,644 10,746 10,607 10,476 13,080 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.054 $1.024 $1.013 $1.020 $1.026 Accumulation Unit Value at end of period $1.087 $1.054 $1.024 $1.013 $1.020 Number of Accumulation Units outstanding at end of period (in thousands) 40,328 11,347 6,830 6,729 6,795 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.044 $1.016 $1.006 $1.007 -- Accumulation Unit Value at end of period $1.076 $1.044 $1.016 $1.006 -- Number of Accumulation Units outstanding at end of period (in thousands) 42,452 30,403 19,234 7,758 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.044 $1.016 $1.006 $1.014 -- Accumulation Unit Value at end of period $1.076 $1.044 $1.016 $1.006 -- Number of Accumulation Units outstanding at end of period (in thousands) 42,452 30,403 19,234 7,758 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.085 $1.057 $1.048 $1.060 $1.068 Accumulation Unit Value at end of period $1.116 $1.085 $1.057 $1.048 $1.060 Number of Accumulation Units outstanding at end of period (in thousands) 21,040 11,826 8,050 8,567 9,622 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $1.052 $1.045 $1.056 -- Accumulation Unit Value at end of period $1.107 $1.078 $1.052 $1.045 -- Number of Accumulation Units outstanding at end of period (in thousands) 13,220 5,550 5,324 5,525 -- MFS(R) CORE EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.139 $9.031 $9.002 $8.113 $7.184 Accumulation Unit Value at end of period $11.119 $10.139 $9.031 $9.002 $8.113 Number of Accumulation Units outstanding at end of period (in thousands) 18 21 27 11 14 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.413 $8.400 $8.390 $7.723 -- Accumulation Unit Value at end of period $10.301 $9.413 $8.400 $8.390 -- Number of Accumulation Units outstanding at end of period (in thousands) 70 74 80 108 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.342 $8.346 $8.344 $7.543 $6.691 Accumulation Unit Value at end of period $10.214 $9.342 $8.346 $8.344 $7.543 Number of Accumulation Units outstanding at end of period (in thousands) 151 215 274 327 354
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $7.073 $6.322 $6.323 $5.719 $5.075 Accumulation Unit Value at end of period $7.729 $7.073 $6.322 $6.323 $5.719 Number of Accumulation Units outstanding at end of period (in thousands) 178 205 248 277 216 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $7.007 $6.272 $6.283 $5.787 -- Accumulation Unit Value at end of period $7.645 $7.007 $6.272 $6.283 -- Number of Accumulation Units outstanding at end of period (in thousands) 61 97 110 114 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.007 $6.272 $6.283 $5.842 -- Accumulation Unit Value at end of period $7.645 $7.007 $6.272 $6.283 -- Number of Accumulation Units outstanding at end of period (in thousands) 61 97 110 114 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.132 $8.187 $8.214 $7.451 $6.623 Accumulation Unit Value at end of period $9.949 $9.132 $8.187 $8.214 $7.451 Number of Accumulation Units outstanding at end of period (in thousands) 140 163 170 213 205 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.072 $8.145 $8.184 $7.631 -- Accumulation Unit Value at end of period $9.869 $9.072 $8.145 $8.184 -- Number of Accumulation Units outstanding at end of period (in thousands) 35 32 31 30 -- MFS(R) EMERGING GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.679 $8.153 $7.568 $6.791 $6.037 Accumulation Unit Value at end of period $10.375 $8.679 $8.153 $7.568 $6.791 Number of Accumulation Units outstanding at end of period (in thousands) 195 98 78 62 28 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $8.486 $7.988 $7.430 $6.769 -- Accumulation Unit Value at end of period $10.125 $8.486 $7.988 $7.430 -- Number of Accumulation Units outstanding at end of period (in thousands) 100 92 96 106 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.423 $7.936 $7.389 $6.650 $5.922 Accumulation Unit Value at end of period $10.039 $8.423 $7.936 $7.389 $6.650 Number of Accumulation Units outstanding at end of period (in thousands) 209 325 340 414 456 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $5.611 $5.290 $4.927 $4.437 $3.952 Accumulation Unit Value at end of period $6.684 $5.611 $5.290 $4.927 $4.437 Number of Accumulation Units outstanding at end of period (in thousands) 300 255 213 240 201 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $5.558 $5.248 $4.896 $4.462 -- Accumulation Unit Value at end of period $6.612 $5.558 $5.248 $4.896 -- Number of Accumulation Units outstanding at end of period (in thousands) 527 177 145 121 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.558 $5.248 $4.896 $4.551 -- Accumulation Unit Value at end of period $6.612 $5.558 $5.248 $4.896 -- Number of Accumulation Units outstanding at end of period (in thousands) 527 177 145 121 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $8.233 $7.785 $7.274 $6.570 $5.862 Accumulation Unit Value at end of period $9.779 $8.233 $7.785 $7.274 $6.570 Number of Accumulation Units outstanding at end of period (in thousands) 222 232 255 213 173 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.179 $7.745 $7.248 $6.755 -- Accumulation Unit Value at end of period $9.700 $8.179 $7.745 $7.248 -- Number of Accumulation Units outstanding at end of period (in thousands) 76 49 69 54 -- MFS(R) GLOBAL EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.420 $13.378 $12.593 $10.792 $9.284 Accumulation Unit Value at end of period $17.689 $16.420 $13.378 $12.593 $10.792 Number of Accumulation Units outstanding at end of period (in thousands) 58 35 19 8 3
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.528 $12.677 $11.957 $10.948 -- Accumulation Unit Value at end of period $16.695 $15.528 $12.677 $11.957 -- Number of Accumulation Units outstanding at end of period (in thousands) 21 14 15 13 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.412 $12.595 $11.891 $10.221 $8.808 Accumulation Unit Value at end of period $16.554 $15.412 $12.595 $11.891 $10.221 Number of Accumulation Units outstanding at end of period (in thousands) 54 56 53 87 49 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.958 $11.412 $10.780 $9.270 $7.992 Accumulation Unit Value at end of period $14.985 $13.958 $11.412 $10.780 $9.270 Number of Accumulation Units outstanding at end of period (in thousands) 69 75 57 60 25 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.828 $11.323 $10.712 $9.813 -- Accumulation Unit Value at end of period $14.823 $13.828 $11.323 $10.712 -- Number of Accumulation Units outstanding at end of period (in thousands) 111 112 88 69 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.828 $11.323 $10.712 $9.381 -- Accumulation Unit Value at end of period $14.823 $13.828 $11.323 $10.712 -- Number of Accumulation Units outstanding at end of period (in thousands) 111 112 88 69 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.066 $12.355 $11.706 $10.097 $8.719 Accumulation Unit Value at end of period $16.125 $15.066 $12.355 $11.706 $10.097 Number of Accumulation Units outstanding at end of period (in thousands) 100 160 164 227 126 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.966 $12.292 $11.663 $10.243 -- Accumulation Unit Value at end of period $15.995 $14.966 $12.292 $11.663 -- Number of Accumulation Units outstanding at end of period (in thousands) 46 32 24 33 -- MFS(R) HIGH INCOME SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.282 $12.198 $12.102 $11.238 $10.338 Accumulation Unit Value at end of period $13.336 $13.282 $12.198 $12.102 $11.238 Number of Accumulation Units outstanding at end of period (in thousands) 835 586 377 202 83 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.783 $11.762 $11.694 $11.497 -- Accumulation Unit Value at end of period $12.809 $12.783 $11.762 $11.694 -- Number of Accumulation Units outstanding at end of period (in thousands) 131 135 159 95 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.687 $11.686 $11.630 $10.832 $9.982 Accumulation Unit Value at end of period $12.700 $12.687 $11.686 $11.630 $10.832 Number of Accumulation Units outstanding at end of period (in thousands) 605 709 751 856 739 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.820 $11.815 $11.763 $10.962 $10.105 Accumulation Unit Value at end of period $12.827 $12.820 $11.815 $11.763 $10.962 Number of Accumulation Units outstanding at end of period (in thousands) 732 748 803 749 532 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.701 $11.722 $11.689 $11.498 -- Accumulation Unit Value at end of period $12.689 $12.701 $11.722 $11.689 -- Number of Accumulation Units outstanding at end of period (in thousands) 794 707 689 321 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.701 $11.722 $11.689 $11.002 -- Accumulation Unit Value at end of period $12.689 $12.701 $11.722 $11.689 -- Number of Accumulation Units outstanding at end of period (in thousands) 794 707 689 321 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.402 $11.464 $11.448 $10.700 $9.881 Accumulation Unit Value at end of period $12.372 $12.402 $11.464 $11.448 $10.700 Number of Accumulation Units outstanding at end of period (in thousands) 709 852 1,009 1,146 1,043
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.321 $11.405 $11.407 $10.766 -- Accumulation Unit Value at end of period $12.272 $12.321 $11.405 $11.407 -- Number of Accumulation Units outstanding at end of period (in thousands) 372 333 394 240 -- MFS(R) INVESTORS GROWTH STOCK SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.871 $8.358 $8.108 $7.527 $6.906 Accumulation Unit Value at end of period $9.746 $8.871 $8.358 $8.108 $7.527 Number of Accumulation Units outstanding at end of period (in thousands) 132 87 58 76 57 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $8.390 $7.921 $7.699 $7.126 -- Accumulation Unit Value at end of period $9.199 $8.390 $7.921 $7.699 -- Number of Accumulation Units outstanding at end of period (in thousands) 87 98 106 126 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.327 $7.869 $7.656 $7.129 $6.553 Accumulation Unit Value at end of period $9.121 $8.327 $7.869 $7.656 $7.129 Number of Accumulation Units outstanding at end of period (in thousands) 201 301 381 482 558 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $6.534 $6.178 $6.014 $5.602 $5.151 Accumulation Unit Value at end of period $7.153 $6.534 $6.178 $6.014 $5.602 Number of Accumulation Units outstanding at end of period (in thousands) 372 414 546 655 583 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.473 $6.129 $5.975 $5.533 -- Accumulation Unit Value at end of period $7.076 $6.473 $6.129 $5.975 -- Number of Accumulation Units outstanding at end of period (in thousands) 181 180 189 169 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.473 $6.129 $5.975 $5.701 -- Accumulation Unit Value at end of period $7.076 $6.473 $6.129 $5.975 -- Number of Accumulation Units outstanding at end of period (in thousands) 181 180 189 169 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $8.140 $7.719 $7.537 $7.042 $6.487 Accumulation Unit Value at end of period $8.885 $8.140 $7.719 $7.537 $7.042 Number of Accumulation Units outstanding at end of period (in thousands) 312 444 481 591 581 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.086 $7.680 $7.510 $7.184 -- Accumulation Unit Value at end of period $8.813 $8.086 $7.680 $7.510 -- Number of Accumulation Units outstanding at end of period (in thousands) 92 62 66 60 -- MFS(R) INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.127 $9.981 $9.428 $8.581 $7.685 Accumulation Unit Value at end of period $12.109 $11.127 $9.981 $9.428 $8.581 Number of Accumulation Units outstanding at end of period (in thousands) 2,802 1,871 1,019 446 47 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.771 $8.782 $8.312 $7.692 -- Accumulation Unit Value at end of period $10.612 $9.771 $8.782 $8.312 -- Number of Accumulation Units outstanding at end of period (in thousands) 488 447 327 160 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.698 $8.726 $8.266 $7.547 $6.771 Accumulation Unit Value at end of period $10.522 $9.698 $8.726 $8.266 $7.547 Number of Accumulation Units outstanding at end of period (in thousands) 1,110 991 854 678 411 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.592 $8.634 $8.184 $7.475 $6.709 Accumulation Unit Value at end of period $10.402 $9.592 $8.634 $8.184 $7.475 Number of Accumulation Units outstanding at end of period (in thousands) 2,182 1,599 946 709 364 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.502 $8.567 $8.132 $7.530 -- Accumulation Unit Value at end of period $10.290 $9.502 $8.567 $8.132 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,980 3,850 3,202 1,631 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.502 $8.567 $8.132 $7.523 -- Accumulation Unit Value at end of period $10.290 $9.502 $8.567 $8.132 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,980 3,850 3,202 1,631 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.480 $8.559 $8.137 $7.455 $6.702 Accumulation Unit Value at end of period $10.250 $9.480 $8.559 $8.137 $7.455 Number of Accumulation Units outstanding at end of period (in thousands) 1,256 1,154 986 897 719 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.417 $8.516 $8.108 $7.521 -- Accumulation Unit Value at end of period $10.167 $9.417 $8.516 $8.108 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,220 1,172 1,140 754 -- MFS(R) MID CAP GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.126 $6.055 $5.952 $5.266 $4.500 Accumulation Unit Value at end of period $6.638 $6.126 $6.055 $5.952 $5.266 Number of Accumulation Units outstanding at end of period (in thousands) 495 449 399 313 141 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.036 $5.978 $5.888 $5.403 -- Accumulation Unit Value at end of period $6.527 $6.036 $5.978 $5.888 -- Number of Accumulation Units outstanding at end of period (in thousands) 83 94 111 100 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $5.998 $5.946 $5.863 $5.203 $4.454 Accumulation Unit Value at end of period $6.479 $5.998 $5.946 $5.863 $5.203 Number of Accumulation Units outstanding at end of period (in thousands) 426 506 570 574 485 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $6.465 $6.413 $6.326 $5.617 $4.809 Accumulation Unit Value at end of period $6.980 $6.465 $6.413 $6.326 $5.617 Number of Accumulation Units outstanding at end of period (in thousands) 734 787 835 932 703 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.405 $6.362 $6.286 $5.771 -- Accumulation Unit Value at end of period $6.905 $6.405 $6.362 $6.286 -- Number of Accumulation Units outstanding at end of period (in thousands) 514 513 535 427 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.405 $6.362 $6.286 $5.861 -- Accumulation Unit Value at end of period $6.905 $6.405 $6.362 $6.286 -- Number of Accumulation Units outstanding at end of period (in thousands) 514 513 535 427 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $5.871 $5.841 $5.779 $5.147 $4.415 Accumulation Unit Value at end of period $6.320 $5.871 $5.841 $5.779 $5.147 Number of Accumulation Units outstanding at end of period (in thousands) 904 1,114 1,162 1,232 1,080 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.832 $5.811 $5.758 $5.384 -- Accumulation Unit Value at end of period $6.269 $5.832 $5.811 $5.758 -- Number of Accumulation Units outstanding at end of period (in thousands) 453 433 482 439 -- MFS(R) NEW DISCOVERY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.233 $13.638 $13.135 $12.498 $10.467 Accumulation Unit Value at end of period $15.407 $15.233 $13.638 $13.135 $12.498 Number of Accumulation Units outstanding at end of period (in thousands) 1,310 909 377 196 35 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.881 $12.453 $12.017 $10.897 -- Accumulation Unit Value at end of period $14.012 $13.881 $12.453 $12.017 -- Number of Accumulation Units outstanding at end of period (in thousands) 213 171 125 26 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.778 $12.372 $11.951 $11.406 $9.569 Accumulation Unit Value at end of period $13.893 $13.778 $12.372 $11.951 $11.406 Number of Accumulation Units outstanding at end of period (in thousands) 526 472 392 314 238
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.114 $8.188 $7.913 $7.556 $6.341 Accumulation Unit Value at end of period $9.186 $9.114 $8.188 $7.913 $7.556 Number of Accumulation Units outstanding at end of period (in thousands) 1,504 1,206 797 595 376 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.029 $8.124 $7.863 $7.134 -- Accumulation Unit Value at end of period $9.086 $9.029 $8.124 $7.863 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,321 2,253 1,794 837 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.029 $8.124 $7.863 $7.944 -- Accumulation Unit Value at end of period $9.086 $9.029 $8.124 $7.863 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,321 2,253 1,794 837 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.468 $12.136 $11.764 $11.267 $9.472 Accumulation Unit Value at end of period $13.533 $13.468 $12.136 $11.764 $11.267 Number of Accumulation Units outstanding at end of period (in thousands) 647 719 625 536 423 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.379 $12.074 $11.722 $11.875 -- Accumulation Unit Value at end of period $13.424 $13.379 $12.074 $11.722 -- Number of Accumulation Units outstanding at end of period (in thousands) 495 518 578 310 -- MFS(R) RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $10.040 $9.983 -- -- Accumulation Unit Value at end of period $10.596 $10.307 $10.040 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 641 177 27 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.269 $10.024 $9.980 -- -- Accumulation Unit Value at end of period $10.537 $10.269 $10.024 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 38 30 17 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.251 $10.016 $9.978 -- -- Accumulation Unit Value at end of period $10.507 $10.251 $10.016 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 177 76 31 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.241 $10.012 $9.978 -- -- Accumulation Unit Value at end of period $10.493 $10.241 $10.012 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 475 156 10 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.214 $10.000 $9.975 -- -- Accumulation Unit Value at end of period $10.448 $10.214 $10.000 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 458 226 91 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.214 $10.000 $9.975 -- -- Accumulation Unit Value at end of period $10.448 $10.214 $10.000 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 458 226 91 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.186 $9.988 $9.973 -- -- Accumulation Unit Value at end of period $10.404 $10.186 $9.988 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 155 98 21 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.158 $9.975 $9.971 -- -- Accumulation Unit Value at end of period $10.361 $10.158 $9.975 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 89 29 10 -- -- MFS(R) RESEARCH INTERNATIONAL SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.847 $11.985 $10.019 -- -- Accumulation Unit Value at end of period $16.527 $14.847 $11.985 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 300 57 3 -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.798 $11.969 $10.019 -- -- Accumulation Unit Value at end of period $16.439 $14.798 $11.969 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 19 10 3 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.773 $11.961 $10.019 -- -- Accumulation Unit Value at end of period $16.395 $14.773 $11.961 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 71 13 1 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.761 $11.957 $10.019 -- -- Accumulation Unit Value at end of period $16.373 $14.761 $11.957 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 173 57 4 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.724 $11.945 $10.018 -- -- Accumulation Unit Value at end of period $16.307 $14.724 $11.945 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 245 129 5 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.724 $11.945 $10.018 -- -- Accumulation Unit Value at end of period $16.307 $14.724 $11.945 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 245 129 5 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.687 $11.933 $10.018 -- -- Accumulation Unit Value at end of period $16.242 $14.687 $11.933 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 97 64 10 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.650 $11.921 $10.018 -- -- Accumulation Unit Value at end of period $16.177 $14.650 $11.921 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 48 13 2 -- -- MFS(R) RESEARCH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.572 $10.617 $9.472 -- -- Accumulation Unit Value at end of period $12.925 $11.572 $10.617 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 32 11 4 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.530 $10.599 $9.469 -- -- Accumulation Unit Value at end of period $12.851 $11.530 $10.599 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1 1 -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.508 $10.590 $9.468 -- -- Accumulation Unit Value at end of period $12.815 $11.508 $10.590 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 19 10 8 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.498 $10.586 $9.467 -- -- Accumulation Unit Value at end of period $12.797 $11.498 $10.586 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 52 32 13 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.466 $10.573 $9.464 -- -- Accumulation Unit Value at end of period $12.742 $11.466 $10.573 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 66 32 18 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.466 $10.573 $9.464 -- -- Accumulation Unit Value at end of period $12.742 $11.466 $10.573 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 66 32 18 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.435 $10.559 $9.462 -- -- Accumulation Unit Value at end of period $12.688 $11.435 $10.559 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 11 9 2 -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.403 $10.546 $9.459 -- -- Accumulation Unit Value at end of period $12.634 $11.403 $10.546 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 18 7 9 -- -- MFS(R) TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.523 $14.061 $13.861 $12.621 $11.713 Accumulation Unit Value at end of period $15.960 $15.523 $14.061 $13.861 $12.621 Number of Accumulation Units outstanding at end of period (in thousands) 6,616 3,959 1,860 923 164 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.290 $12.970 $12.812 $12.173 -- Accumulation Unit Value at end of period $14.663 $14.290 $12.970 $12.812 -- Number of Accumulation Units outstanding at end of period (in thousands) 831 770 505 167 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.183 $12.886 $12.741 $11.636 $10.818 Accumulation Unit Value at end of period $14.539 $14.183 $12.886 $12.741 $11.636 Number of Accumulation Units outstanding at end of period (in thousands) 2,467 2,222 2,017 1,873 1,442 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.429 $12.207 $12.076 $11.034 $10.261 Accumulation Unit Value at end of period $13.759 $13.429 $12.207 $12.076 $11.034 Number of Accumulation Units outstanding at end of period (in thousands) 5,143 4,234 3,332 3,082 2,204 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.303 $12.111 $11.999 $11.406 -- Accumulation Unit Value at end of period $13.610 $13.303 $12.111 $11.999 -- Number of Accumulation Units outstanding at end of period (in thousands) 8,125 7,399 5,461 2,465 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.303 $12.111 $11.999 $11.126 -- Accumulation Unit Value at end of period $13.610 $13.303 $12.111 $11.999 -- Number of Accumulation Units outstanding at end of period (in thousands) 8,125 7,399 5,461 2,465 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.864 $12.641 $12.543 $11.495 $10.708 Accumulation Unit Value at end of period $14.163 $13.864 $12.641 $12.543 $11.495 Number of Accumulation Units outstanding at end of period (in thousands) 2,606 2,716 2,572 2,581 2,125 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.773 $12.576 $12.497 $11.620 -- Accumulation Unit Value at end of period $14.048 $13.773 $12.576 $12.497 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,070 1,991 2,026 1,297 -- MFS(R) VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.453 $14.639 $13.912 $12.242 $10.607 Accumulation Unit Value at end of period $18.581 $17.453 $14.639 $13.912 $12.242 Number of Accumulation Units outstanding at end of period (in thousands) 807 373 148 62 14 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.325 $14.561 $13.865 $12.892 -- Accumulation Unit Value at end of period $18.408 $17.325 $14.561 $13.865 -- Number of Accumulation Units outstanding at end of period (in thousands) 72 69 19 1 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $17.262 $14.522 $13.842 $12.218 $10.604 Accumulation Unit Value at end of period $18.322 $17.262 $14.522 $13.842 $12.218 Number of Accumulation Units outstanding at end of period (in thousands) 223 137 107 79 6 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $17.230 $14.503 $13.831 $12.214 $10.604 Accumulation Unit Value at end of period $18.279 $17.230 $14.503 $13.831 $12.214 Number of Accumulation Units outstanding at end of period (in thousands) 776 474 189 156 94 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.136 $14.445 $13.796 $12.834 -- Accumulation Unit Value at end of period $18.152 $17.136 $14.445 $13.796 -- Number of Accumulation Units outstanding at end of period (in thousands) 638 486 298 122 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $17.136 $14.445 $13.796 $12.330 -- Accumulation Unit Value at end of period $18.152 $17.136 $14.445 $13.796 -- Number of Accumulation Units outstanding at end of period (in thousands) 638 486 298 122 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $17.042 $14.387 $13.761 $12.189 $10.601 Accumulation Unit Value at end of period $18.025 $17.042 $14.387 $13.761 $12.189 Number of Accumulation Units outstanding at end of period (in thousands) 384 285 204 209 81 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.948 $14.330 $13.727 $12.302 -- Accumulation Unit Value at end of period $17.899 $16.948 $14.330 $13.727 -- Number of Accumulation Units outstanding at end of period (in thousands) 192 225 131 84 -- MUTUAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $20.136 $16.585 $14.496 $12.431 $10.546 Accumulation Unit Value at end of period $22.220 $20.136 $16.585 $14.496 $12.431 Number of Accumulation Units outstanding at end of period (in thousands) 1,814 1,001 438 207 21 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.988 $16.497 $14.448 $13.344 -- Accumulation Unit Value at end of period $22.013 $19.988 $16.497 $14.448 -- Number of Accumulation Units outstanding at end of period (in thousands) 161 151 50 10 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $19.915 $16.453 $14.424 $12.407 $10.543 Accumulation Unit Value at end of period $21.911 $19.915 $16.453 $14.424 $12.407 Number of Accumulation Units outstanding at end of period (in thousands) 450 373 358 243 89 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $19.879 $16.431 $14.412 $12.402 $10.542 Accumulation Unit Value at end of period $21.859 $19.879 $16.431 $14.412 $12.402 Number of Accumulation Units outstanding at end of period (in thousands) 1,673 1,008 376 281 139 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.770 $16.366 $14.376 $13.283 -- Accumulation Unit Value at end of period $21.707 $19.770 $16.366 $14.376 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,586 1,370 848 393 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.770 $16.366 $14.376 $12.549 -- Accumulation Unit Value at end of period $21.707 $19.770 $16.366 $14.376 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,586 1,370 848 393 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $19.661 $16.300 $14.340 $12.377 $10.539 Accumulation Unit Value at end of period $21.555 $19.661 $16.300 $14.340 $12.377 Number of Accumulation Units outstanding at end of period (in thousands) 510 420 310 220 131 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.553 $16.235 $14.304 $12.521 -- Accumulation Unit Value at end of period $21.405 $19.553 $16.235 $14.304 -- Number of Accumulation Units outstanding at end of period (in thousands) 475 489 372 195 -- MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.484 $16.683 $15.295 $13.764 $12.081 Accumulation Unit Value at end of period $19.892 $19.484 $16.683 $15.295 $13.764 Number of Accumulation Units outstanding at end of period (in thousands) 9,553 6,695 4,108 2,075 304 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.320 $14.859 $13.651 $12.732 -- Accumulation Unit Value at end of period $17.647 $17.320 $14.859 $13.651 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,279 1,211 850 209 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $17.191 $14.763 $13.576 $12.254 $10.774 Accumulation Unit Value at end of period $17.498 $17.191 $14.763 $13.576 $12.254 Number of Accumulation Units outstanding at end of period (in thousands) 2,139 2,076 1,985 1,717 1,173
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $16.495 $14.173 $13.040 $11.776 $10.357 Accumulation Unit Value at end of period $16.782 $16.495 $14.173 $13.040 $11.776 Number of Accumulation Units outstanding at end of period (in thousands) 6,775 5,344 4,161 3,929 2,693 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.342 $14.062 $12.957 $12.090 -- Accumulation Unit Value at end of period $16.600 $16.342 $14.062 $12.957 -- Number of Accumulation Units outstanding at end of period (in thousands) 11,385 10,624 8,636 4,210 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.342 $14.062 $12.957 $11.842 -- Accumulation Unit Value at end of period $16.600 $16.342 $14.062 $12.957 -- Number of Accumulation Units outstanding at end of period (in thousands) 11,385 10,624 8,636 4,210 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $16.805 $14.482 $13.364 $12.105 $10.665 Accumulation Unit Value at end of period $17.045 $16.805 $14.482 $13.364 $12.105 Number of Accumulation Units outstanding at end of period (in thousands) 2,584 2,752 2,577 2,399 1,969 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.694 $14.408 $13.316 $12.204 -- Accumulation Unit Value at end of period $16.907 $16.694 $14.408 $13.316 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,134 2,125 2,145 1,327 -- TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.737 $18.733 $14.862 $12.067 $8.935 Accumulation Unit Value at end of period $30.230 $23.737 $18.733 $14.862 $12.067 Number of Accumulation Units outstanding at end of period (in thousands) 454 304 159 51 6 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $20.355 $16.096 $12.796 $11.432 -- Accumulation Unit Value at end of period $25.871 $20.355 $16.096 $12.796 -- Number of Accumulation Units outstanding at end of period (in thousands) 66 66 56 35 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $20.203 $15.992 $12.725 $10.363 $7.687 Accumulation Unit Value at end of period $25.652 $20.203 $15.992 $12.725 $10.363 Number of Accumulation Units outstanding at end of period (in thousands) 216 198 153 104 59 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $24.326 $19.265 $15.338 $12.497 $9.273 Accumulation Unit Value at end of period $30.872 $24.326 $19.265 $15.338 $12.497 Number of Accumulation Units outstanding at end of period (in thousands) 436 304 265 150 81 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $24.099 $19.114 $15.240 $13.623 -- Accumulation Unit Value at end of period $30.539 $24.099 $19.114 $15.240 -- Number of Accumulation Units outstanding at end of period (in thousands) 661 568 399 115 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $24.099 $19.114 $15.240 $12.800 -- Accumulation Unit Value at end of period $30.539 $24.099 $19.114 $15.240 -- Number of Accumulation Units outstanding at end of period (in thousands) 661 568 399 115 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $19.749 $15.687 $12.527 $10.237 $7.609 Accumulation Unit Value at end of period $24.989 $19.749 $15.687 $12.527 $10.237 Number of Accumulation Units outstanding at end of period (in thousands) 259 240 232 179 106 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.618 $15.607 $12.481 $10.512 -- Accumulation Unit Value at end of period $24.786 $19.618 $15.607 $12.481 -- Number of Accumulation Units outstanding at end of period (in thousands) 170 165 157 90 -- TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.502 $12.104 $11.136 $9.523 $7.775 Accumulation Unit Value at end of period $16.519 $14.502 $12.104 $11.136 $9.523 Number of Accumulation Units outstanding at end of period (in thousands) 3,379 2,739 1,634 847 96
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.759 $11.506 $10.607 $9.671 -- Accumulation Unit Value at end of period $15.642 $13.759 $11.506 $10.607 -- Number of Accumulation Units outstanding at end of period (in thousands) 514 533 355 103 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.656 $11.432 $10.549 $9.048 $7.401 Accumulation Unit Value at end of period $15.509 $13.656 $11.432 $10.549 $9.048 Number of Accumulation Units outstanding at end of period (in thousands) 1,192 1,167 1,012 803 306 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.081 $10.956 $10.115 $8.680 $7.102 Accumulation Unit Value at end of period $14.848 $13.081 $10.956 $10.115 $8.680 Number of Accumulation Units outstanding at end of period (in thousands) 2,381 2,146 1,580 1,285 697 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.959 $10.870 $10.051 $9.168 -- Accumulation Unit Value at end of period $14.688 $12.959 $10.870 $10.051 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,767 4,966 4,328 2,456 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.959 $10.870 $10.051 $8.822 -- Accumulation Unit Value at end of period $14.688 $12.959 $10.870 $10.051 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,767 4,966 4,328 2,456 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.349 $11.214 $10.385 $8.938 $7.326 Accumulation Unit Value at end of period $15.108 $13.349 $11.214 $10.385 $8.938 Number of Accumulation Units outstanding at end of period (in thousands) 1,216 1,178 1,023 944 670 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.261 $11.157 $10.347 $9.107 -- Accumulation Unit Value at end of period $14.985 $13.261 $11.157 $10.347 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,495 1,596 1,616 1,192 -- TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.068 $14.202 $13.223 $11.552 $9.590 Accumulation Unit Value at end of period $17.234 $17.068 $14.202 $13.223 $11.552 Number of Accumulation Units outstanding at end of period (in thousands) 9,032 6,655 4,070 1,828 177 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.798 $13.172 $12.289 $11.312 -- Accumulation Unit Value at end of period $15.920 $15.798 $13.172 $12.289 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,188 1,106 765 80 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.680 $13.087 $12.221 $10.708 $8.905 Accumulation Unit Value at end of period $15.785 $15.680 $13.087 $12.221 $10.708 Number of Accumulation Units outstanding at end of period (in thousands) 1,528 1,620 1,275 915 394 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.486 $12.932 $12.082 $10.592 $8.811 Accumulation Unit Value at end of period $15.583 $15.486 $12.932 $12.082 $10.592 Number of Accumulation Units outstanding at end of period (in thousands) 5,011 3,865 2,848 2,481 1,598 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.342 $12.830 $12.006 $11.057 -- Accumulation Unit Value at end of period $15.414 $15.342 $12.830 $12.006 -- Number of Accumulation Units outstanding at end of period (in thousands) 10,657 10,184 8,474 3,797 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.342 $12.830 $12.006 $10.750 -- Accumulation Unit Value at end of period $15.414 $15.342 $12.830 $12.006 -- Number of Accumulation Units outstanding at end of period (in thousands) 10,657 10,184 8,474 3,797 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.328 $12.838 $12.031 $10.578 $8.815 Accumulation Unit Value at end of period $15.377 $15.328 $12.838 $12.031 $10.578 Number of Accumulation Units outstanding at end of period (in thousands) 1,655 1,647 1,475 1,135 835
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.227 $12.772 $11.987 $10.763 -- Accumulation Unit Value at end of period $15.252 $15.227 $12.772 $11.987 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,750 1,945 1,941 1,097 --
(a) Inception date November 12, 2007. SERIES III
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- AIM V.I. BASIC VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.515 $1.357 $1.247 Accumulation Unit Value at end of period $1.518 $1.515 $1.357 Number of Accumulation Units outstanding at end of period (in thousands) 4,128 4,027 3,551 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.498 $1.344 $1.237 Accumulation Unit Value at end of period $1.498 $1.498 $1.344 Number of Accumulation Units outstanding at end of period (in thousands) 410 481 478 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.490 $1.338 $1.232 Accumulation Unit Value at end of period $1.489 $1.490 $1.338 Number of Accumulation Units outstanding at end of period (in thousands) 3,631 3,965 4,988 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.475 $1.327 $1.223 Accumulation Unit Value at end of period $1.470 $1.475 $1.327 Number of Accumulation Units outstanding at end of period (in thousands) 6,507 6,897 7,037 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.475 $1.327 $1.223 Accumulation Unit Value at end of period $1.470 $1.475 $1.327 Number of Accumulation Units outstanding at end of period (in thousands) 6,507 6,897 7,037 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.453 $1.312 $1.212 Accumulation Unit Value at end of period $1.444 $1.453 $1.312 Number of Accumulation Units outstanding at end of period (in thousands) 3,823 4,001 4,345 AIM V.I. CAPITAL APPRECIATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.419 $1.353 $1.175 Accumulation Unit Value at end of period $1.568 $1.419 $1.353 Number of Accumulation Units outstanding at end of period (in thousands) 2,046 1,892 694 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.403 $1.341 $1.165 Accumulation Unit Value at end of period $1.547 $1.403 $1.341 Number of Accumulation Units outstanding at end of period (in thousands) 203 268 99 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.396 $1.335 $1.161 Accumulation Unit Value at end of period $1.538 $1.396 $1.335 Number of Accumulation Units outstanding at end of period (in thousands) 1,443 1,504 738 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.381 $1.323 $1.153 Accumulation Unit Value at end of period $1.519 $1.381 $1.323 Number of Accumulation Units outstanding at end of period (in thousands) 1,984 2,381 670 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.381 $1.323 $1.153 Accumulation Unit Value at end of period $1.519 $1.381 $1.323 Number of Accumulation Units outstanding at end of period (in thousands) 1,984 2,381 670
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.361 $1.308 $1.142 Accumulation Unit Value at end of period $1.492 $1.361 $1.308 Number of Accumulation Units outstanding at end of period (in thousands) 1,435 1,311 669 AIM V.I. CAPITAL DEVELOPMENT FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.553 -- -- (a) Accumulation Unit Value at end of period $9.789 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.550 -- -- (a) Accumulation Unit Value at end of period $9.784 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.549 -- -- (a) Accumulation Unit Value at end of period $9.781 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.546 -- -- (a) Accumulation Unit Value at end of period $9.775 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.546 -- -- (a) Accumulation Unit Value at end of period $9.775 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.542 -- -- (a) Accumulation Unit Value at end of period $9.767 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- AIM V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.863 $10.303 $9.632 Accumulation Unit Value at end of period $12.654 $11.863 $10.303 Number of Accumulation Units outstanding at end of period (in thousands) 1,035 1,101 2 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.819 $10.286 $9.628 Accumulation Unit Value at end of period $12.582 $11.819 $10.286 Number of Accumulation Units outstanding at end of period (in thousands) 211 217 2 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.798 $10.277 $9.627 Accumulation Unit Value at end of period $12.547 $11.798 $10.277 Number of Accumulation Units outstanding at end of period (in thousands) 620 692 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.754 $10.260 $9.623 Accumulation Unit Value at end of period $12.476 $11.754 $10.260 Number of Accumulation Units outstanding at end of period (in thousands) 2,459 2,669 4 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.754 $10.260 $9.623 Accumulation Unit Value at end of period $12.476 $11.754 $10.260 Number of Accumulation Units outstanding at end of period (in thousands) 2,459 2,669 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.690 $10.234 $9.618 Accumulation Unit Value at end of period $12.370 $11.690 $10.234 Number of Accumulation Units outstanding at end of period (in thousands) 964 1,006 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- AIM V.I. GOVERNMENT SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $1.095 $1.092 Accumulation Unit Value at end of period $1.174 $1.119 $1.095 Number of Accumulation Units outstanding at end of period (in thousands) 53,104 29,884 14,477 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.106 $1.085 $1.084 Accumulation Unit Value at end of period $1.158 $1.106 $1.085 Number of Accumulation Units outstanding at end of period (in thousands) 6,115 4,473 2,758 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.100 $1.080 $1.080 Accumulation Unit Value at end of period $1.151 $1.100 $1.080 Number of Accumulation Units outstanding at end of period (in thousands) 17,344 13,911 18,088 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.089 $1.071 $1.072 Accumulation Unit Value at end of period $1.137 $1.089 $1.071 Number of Accumulation Units outstanding at end of period (in thousands) 54,991 45,031 34,763 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.089 $1.071 $1.072 Accumulation Unit Value at end of period $1.137 $1.089 $1.071 Number of Accumulation Units outstanding at end of period (in thousands) 54,991 45,031 34,763 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.073 $1.059 $1.062 Accumulation Unit Value at end of period $1.117 $1.073 $1.059 Number of Accumulation Units outstanding at end of period (in thousands) 20,812 18,954 16,034 AIM V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.102 $1.662 $1.397 Accumulation Unit Value at end of period $2.379 $2.102 $1.662 Number of Accumulation Units outstanding at end of period (in thousands) 7,270 2,232 630 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.079 $1.646 $1.386 Accumulation Unit Value at end of period $2.348 $2.079 $1.646 Number of Accumulation Units outstanding at end of period (in thousands) 851 1,266 1,664 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $2.068 $1.639 $1.381 Accumulation Unit Value at end of period $2.333 $2.068 $1.639 Number of Accumulation Units outstanding at end of period (in thousands) 1,938 675 839 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.046 $1.625 $1.371 Accumulation Unit Value at end of period $2.304 $2.046 $1.625 Number of Accumulation Units outstanding at end of period (in thousands) 4,686 2,772 1,923 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.046 $1.625 $1.371 Accumulation Unit Value at end of period $2.304 $2.046 $1.625 Number of Accumulation Units outstanding at end of period (in thousands) 4,686 2,772 1,923 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.016 $1.607 $1.358 Accumulation Unit Value at end of period $2.264 $2.016 $1.607 Number of Accumulation Units outstanding at end of period (in thousands) 1,498 1,243 1,818 AIM V.I. LARGE CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.474 $10.764 $9.456 Accumulation Unit Value at end of period $13.091 $11.474 $10.764 Number of Accumulation Units outstanding at end of period (in thousands) 160 94 2
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.432 $10.746 $9.453 Accumulation Unit Value at end of period $13.017 $11.432 $10.746 Number of Accumulation Units outstanding at end of period (in thousands) 21 18 5 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.411 $10.737 $9.451 Accumulation Unit Value at end of period $12.980 $11.411 $10.737 Number of Accumulation Units outstanding at end of period (in thousands) 182 197 3 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.369 $10.719 $9.448 Accumulation Unit Value at end of period $12.907 $11.369 $10.719 Number of Accumulation Units outstanding at end of period (in thousands) 117 111 7 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.369 $10.719 $9.448 Accumulation Unit Value at end of period $12.907 $11.369 $10.719 Number of Accumulation Units outstanding at end of period (in thousands) 117 111 7 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.307 $10.692 $9.443 Accumulation Unit Value at end of period $12.797 $11.307 $10.692 Number of Accumulation Units outstanding at end of period (in thousands) 128 127 1 AIM V.I. MID CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.663 $1.515 $1.395 Accumulation Unit Value at end of period $1.797 $1.663 $1.515 Number of Accumulation Units outstanding at end of period (in thousands) 6,210 4,974 4,285 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.644 $1.501 $1.383 Accumulation Unit Value at end of period $1.773 $1.644 $1.501 Number of Accumulation Units outstanding at end of period (in thousands) 379 361 284 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.635 $1.495 $1.378 Accumulation Unit Value at end of period $1.762 $1.635 $1.495 Number of Accumulation Units outstanding at end of period (in thousands) 3,875 4,010 5,481 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.618 $1.482 $1.369 Accumulation Unit Value at end of period $1.740 $1.618 $1.482 Number of Accumulation Units outstanding at end of period (in thousands) 8,498 8,591 8,284 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.618 $1.482 $1.369 Accumulation Unit Value at end of period $1.740 $1.618 $1.482 Number of Accumulation Units outstanding at end of period (in thousands) 8,498 8,591 8,284 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.595 $1.465 $1.356 Accumulation Unit Value at end of period $1.710 $1.595 $1.465 Number of Accumulation Units outstanding at end of period (in thousands) 4,572 4,515 5,229 AIM V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.394 $12.423 $10.812 Accumulation Unit Value at end of period $14.937 $14.394 $12.423 Number of Accumulation Units outstanding at end of period (in thousands) 407 134 78 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.302 $12.368 $10.779 Accumulation Unit Value at end of period $14.812 $14.302 $12.368 Number of Accumulation Units outstanding at end of period (in thousands) 18 7 5 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.256 $12.341 $10.762 Accumulation Unit Value at end of period $14.750 $14.256 $12.341 Number of Accumulation Units outstanding at end of period (in thousands) 150 90 80
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.165 $12.287 $10.729 Accumulation Unit Value at end of period $14.626 $14.165 $12.287 Number of Accumulation Units outstanding at end of period (in thousands) 274 193 139 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.165 $12.287 $10.729 Accumulation Unit Value at end of period $14.626 $14.165 $12.287 Number of Accumulation Units outstanding at end of period (in thousands) 274 193 139 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.029 $12.205 $10.679 Accumulation Unit Value at end of period $14.443 $14.029 $12.205 Number of Accumulation Units outstanding at end of period (in thousands) 156 109 81 AMERICAN FUNDS ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.608 $12.913 $11.768 Accumulation Unit Value at end of period $15.357 $14.608 $12.913 Number of Accumulation Units outstanding at end of period (in thousands) 4,853 4,018 3,146 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.301 $11.781 $10.751 Accumulation Unit Value at end of period $13.955 $13.301 $11.781 Number of Accumulation Units outstanding at end of period (in thousands) 562 576 475 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.202 $11.705 $10.689 Accumulation Unit Value at end of period $13.836 $13.202 $11.705 Number of Accumulation Units outstanding at end of period (in thousands) 2,717 2,743 2,789 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.360 $11.869 $10.853 Accumulation Unit Value at end of period $13.974 $13.360 $11.869 Number of Accumulation Units outstanding at end of period (in thousands) 5,554 5,527 4,840 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.360 $11.869 $10.853 Accumulation Unit Value at end of period $13.974 $13.360 $11.869 Number of Accumulation Units outstanding at end of period (in thousands) 5,554 5,527 4,840 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.820 $11.424 $10.466 Accumulation Unit Value at end of period $13.369 $12.820 $11.424 Number of Accumulation Units outstanding at end of period (in thousands) 2,392 2,550 2,650 AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.222 $1.055 $0.956 Accumulation Unit Value at end of period $1.230 $1.222 $1.055 Number of Accumulation Units outstanding at end of period (in thousands) 21,965 16,908 12,671 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.208 $1.045 $0.948 Accumulation Unit Value at end of period $1.213 $1.208 $1.045 Number of Accumulation Units outstanding at end of period (in thousands) 2,264 2,164 1,821 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.201 $1.040 $0.944 Accumulation Unit Value at end of period $1.205 $1.201 $1.040 Number of Accumulation Units outstanding at end of period (in thousands) 15,599 16,259 16,004 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.188 $1.031 $0.937 Accumulation Unit Value at end of period $1.190 $1.188 $1.031 Number of Accumulation Units outstanding at end of period (in thousands) 26,898 26,457 23,435 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.188 $1.031 $0.937 Accumulation Unit Value at end of period $1.190 $1.188 $1.031 Number of Accumulation Units outstanding at end of period (in thousands) 26,898 26,457 23,435
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.170 $1.018 $0.927 Accumulation Unit Value at end of period $1.169 $1.170 $1.018 Number of Accumulation Units outstanding at end of period (in thousands) 11,387 10,568 11,082 AMERICAN FUNDS BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.281 $13.530 $13.310 Accumulation Unit Value at end of period $14.558 $14.281 $13.530 Number of Accumulation Units outstanding at end of period (in thousands) 4,138 2,781 1,713 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.872 $13.169 $12.972 Accumulation Unit Value at end of period $14.114 $13.872 $13.169 Number of Accumulation Units outstanding at end of period (in thousands) 562 490 413 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.769 $13.084 $12.897 Accumulation Unit Value at end of period $13.994 $13.769 $13.084 Number of Accumulation Units outstanding at end of period (in thousands) 2,156 2,165 2,216 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.147 $12.518 $12.356 Accumulation Unit Value at end of period $13.336 $13.147 $12.518 Number of Accumulation Units outstanding at end of period (in thousands) 3,635 3,352 2,749 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.147 $12.518 $12.356 Accumulation Unit Value at end of period $13.336 $13.147 $12.518 Number of Accumulation Units outstanding at end of period (in thousands) 3,635 3,352 2,749 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.371 $12.769 $12.629 Accumulation Unit Value at end of period $13.522 $13.371 $12.769 Number of Accumulation Units outstanding at end of period (in thousands) 1,470 1,363 1,300 AMERICAN FUNDS GLOBAL BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.207 $10.028 -- Accumulation Unit Value at end of period $10.999 $10.207 -- Number of Accumulation Units outstanding at end of period (in thousands) 709 79 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.202 $10.026 -- Accumulation Unit Value at end of period $10.972 $10.202 -- Number of Accumulation Units outstanding at end of period (in thousands) 98 12 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.199 $10.025 -- Accumulation Unit Value at end of period $10.958 $10.199 -- Number of Accumulation Units outstanding at end of period (in thousands) 225 8 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.194 $10.023 -- Accumulation Unit Value at end of period $10.931 $10.194 -- Number of Accumulation Units outstanding at end of period (in thousands) 351 16 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.194 $10.023 -- Accumulation Unit Value at end of period $10.931 $10.194 -- Number of Accumulation Units outstanding at end of period (in thousands) 351 16 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.187 $10.021 -- Accumulation Unit Value at end of period $10.890 $10.187 -- Number of Accumulation Units outstanding at end of period (in thousands) 109 29 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.921 $9.990 -- Accumulation Unit Value at end of period $12.140 $10.921 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,980 885 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.905 $9.989 -- Accumulation Unit Value at end of period $12.097 $10.905 -- Number of Accumulation Units outstanding at end of period (in thousands) 182 94 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.897 $9.988 -- Accumulation Unit Value at end of period $12.076 $10.897 -- Number of Accumulation Units outstanding at end of period (in thousands) 587 128 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.881 $9.987 -- Accumulation Unit Value at end of period $12.034 $10.881 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,822 775 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.881 $9.987 -- Accumulation Unit Value at end of period $12.034 $10.881 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,822 775 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.856 $9.985 -- Accumulation Unit Value at end of period $11.972 $10.856 -- Number of Accumulation Units outstanding at end of period (in thousands) 308 154 -- AMERICAN FUNDS GLOBAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.715 $13.227 $11.285 Accumulation Unit Value at end of period $17.807 $15.715 $13.227 Number of Accumulation Units outstanding at end of period (in thousands) 1,326 866 594 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.703 $13.243 $11.314 Accumulation Unit Value at end of period $17.757 $15.703 $13.243 Number of Accumulation Units outstanding at end of period (in thousands) 191 178 147 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.585 $13.157 $11.248 Accumulation Unit Value at end of period $17.607 $15.585 $13.157 Number of Accumulation Units outstanding at end of period (in thousands) 778 822 826 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.013 $10.161 $8.698 Accumulation Unit Value at end of period $13.543 $12.013 $10.161 Number of Accumulation Units outstanding at end of period (in thousands) 1,625 1,378 1,049 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.013 $10.161 $8.698 Accumulation Unit Value at end of period $13.543 $12.013 $10.161 Number of Accumulation Units outstanding at end of period (in thousands) 1,625 1,378 1,049 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.135 $12.841 $11.014 Accumulation Unit Value at end of period $17.012 $15.135 $12.841 Number of Accumulation Units outstanding at end of period (in thousands) 463 421 415 AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.960 $16.308 $13.174 Accumulation Unit Value at end of period $23.912 $19.960 $16.308 Number of Accumulation Units outstanding at end of period (in thousands) 902 659 408
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $21.000 $17.193 $13.907 Accumulation Unit Value at end of period $25.108 $21.000 $17.193 Number of Accumulation Units outstanding at end of period (in thousands) 156 147 119 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $20.843 $17.081 $13.826 Accumulation Unit Value at end of period $24.896 $20.843 $17.081 Number of Accumulation Units outstanding at end of period (in thousands) 406 460 441 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.282 $12.549 $10.171 Accumulation Unit Value at end of period $18.216 $15.282 $12.549 Number of Accumulation Units outstanding at end of period (in thousands) 1,367 1,285 987 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.282 $12.549 $10.171 Accumulation Unit Value at end of period $18.216 $15.282 $12.549 Number of Accumulation Units outstanding at end of period (in thousands) 1,367 1,285 987 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.241 $16.671 $13.538 Accumulation Unit Value at end of period $24.055 $20.241 $16.671 Number of Accumulation Units outstanding at end of period (in thousands) 414 418 454 AMERICAN FUNDS GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.955 $13.753 $11.567 Accumulation Unit Value at end of period $16.576 $14.955 $13.753 Number of Accumulation Units outstanding at end of period (in thousands) 12,565 8,039 4,469 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.287 $13.165 $11.088 Accumulation Unit Value at end of period $15.805 $14.287 $13.165 Number of Accumulation Units outstanding at end of period (in thousands) 1,680 1,631 1,291 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.181 $13.080 $11.023 Accumulation Unit Value at end of period $15.671 $14.181 $13.080 Number of Accumulation Units outstanding at end of period (in thousands) 5,517 5,731 5,724 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.792 $9.050 $7.637 Accumulation Unit Value at end of period $10.799 $9.792 $9.050 Number of Accumulation Units outstanding at end of period (in thousands) 20,944 19,287 15,190 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.792 $9.050 $7.637 Accumulation Unit Value at end of period $10.799 $9.792 $9.050 Number of Accumulation Units outstanding at end of period (in thousands) 20,944 19,287 15,190 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.770 $12.765 $10.794 Accumulation Unit Value at end of period $15.142 $13.770 $12.765 Number of Accumulation Units outstanding at end of period (in thousands) 4,458 4,490 4,456 AMERICAN FUNDS GROWTH-INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.692 $13.806 $12.649 Accumulation Unit Value at end of period $16.262 $15.692 $13.806 Number of Accumulation Units outstanding at end of period (in thousands) 11,554 7,464 4,415 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.853 $12.213 $11.204 Accumulation Unit Value at end of period $14.328 $13.853 $12.213 Number of Accumulation Units outstanding at end of period (in thousands) 1,818 1,743 1,396 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.750 $12.134 $11.139 Accumulation Unit Value at end of period $14.207 $13.750 $12.134 Number of Accumulation Units outstanding at end of period (in thousands) 5,872 6,112 6,117
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.798 $12.201 $11.216 Accumulation Unit Value at end of period $14.228 $13.798 $12.201 Number of Accumulation Units outstanding at end of period (in thousands) 15,663 14,817 11,884 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.798 $12.201 $11.216 Accumulation Unit Value at end of period $14.228 $13.798 $12.201 Number of Accumulation Units outstanding at end of period (in thousands) 15,663 14,817 11,884 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.352 $11.842 $10.908 Accumulation Unit Value at end of period $13.727 $13.352 $11.842 Number of Accumulation Units outstanding at end of period (in thousands) 4,830 4,880 4,875 AMERICAN FUNDS INTERNATIONAL FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.583 $13.275 $10.766 Accumulation Unit Value at end of period $18.452 $15.583 $13.275 Number of Accumulation Units outstanding at end of period (in thousands) 3,850 2,766 1,497 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.258 $13.878 $11.270 Accumulation Unit Value at end of period $19.213 $16.258 $13.878 Number of Accumulation Units outstanding at end of period (in thousands) 561 583 391 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $16.137 $13.788 $11.204 Accumulation Unit Value at end of period $19.051 $16.137 $13.788 Number of Accumulation Units outstanding at end of period (in thousands) 1,686 1,740 1,599 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.215 $10.458 $8.510 Accumulation Unit Value at end of period $14.392 $12.215 $10.458 Number of Accumulation Units outstanding at end of period (in thousands) 4,961 4,877 3,697 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.215 $10.458 $8.510 Accumulation Unit Value at end of period $14.392 $12.215 $10.458 Number of Accumulation Units outstanding at end of period (in thousands) 4,961 4,877 3,697 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.670 $13.457 $10.971 Accumulation Unit Value at end of period $18.408 $15.670 $13.457 Number of Accumulation Units outstanding at end of period (in thousands) 1,204 1,268 1,086 AMERICAN FUNDS NEW WORLD FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.315 $17.823 $14.766 Accumulation Unit Value at end of period $30.412 $23.315 $17.823 Number of Accumulation Units outstanding at end of period (in thousands) 775 471 278 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $21.829 $16.720 $13.871 Accumulation Unit Value at end of period $28.416 $21.829 $16.720 Number of Accumulation Units outstanding at end of period (in thousands) 118 97 80 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $21.665 $16.611 $13.790 Accumulation Unit Value at end of period $28.176 $21.665 $16.611 Number of Accumulation Units outstanding at end of period (in thousands) 288 256 198 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $20.273 $15.575 $12.947 Accumulation Unit Value at end of period $26.312 $20.273 $15.575 Number of Accumulation Units outstanding at end of period (in thousands) 919 700 414 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.273 $15.575 $12.947 Accumulation Unit Value at end of period $26.312 $20.273 $15.575 Number of Accumulation Units outstanding at end of period (in thousands) 919 700 414
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $21.039 $16.212 $13.503 Accumulation Unit Value at end of period $27.225 $21.039 $16.212 Number of Accumulation Units outstanding at end of period (in thousands) 218 172 155 FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.878 $10.480 $9.408 Accumulation Unit Value at end of period $12.269 $10.878 $10.480 Number of Accumulation Units outstanding at end of period (in thousands) 461 313 95 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.838 $10.463 $9.405 Accumulation Unit Value at end of period $12.200 $10.838 $10.463 Number of Accumulation Units outstanding at end of period (in thousands) 49 43 21 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.818 $10.454 $9.404 Accumulation Unit Value at end of period $12.165 $10.818 $10.454 Number of Accumulation Units outstanding at end of period (in thousands) 148 80 12 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.778 $10.437 $9.400 Accumulation Unit Value at end of period $12.096 $10.778 $10.437 Number of Accumulation Units outstanding at end of period (in thousands) 394 360 229 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.778 $10.437 $9.400 Accumulation Unit Value at end of period $12.096 $10.778 $10.437 Number of Accumulation Units outstanding at end of period (in thousands) 394 360 229 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.719 $10.411 $9.396 Accumulation Unit Value at end of period $11.994 $10.719 $10.411 Number of Accumulation Units outstanding at end of period (in thousands) 99 82 30 FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.791 $13.537 $13.057 Accumulation Unit Value at end of period $16.165 $15.791 $13.537 Number of Accumulation Units outstanding at end of period (in thousands) 20,982 13,732 8,121 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.637 $13.431 $12.973 Accumulation Unit Value at end of period $15.975 $15.637 $13.431 Number of Accumulation Units outstanding at end of period (in thousands) 2,079 1,796 1,173 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.564 $13.382 $12.934 Accumulation Unit Value at end of period $15.884 $15.564 $13.382 Number of Accumulation Units outstanding at end of period (in thousands) 3,803 2,930 2,223 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.419 $13.284 $12.856 Accumulation Unit Value at end of period $15.705 $15.419 $13.284 Number of Accumulation Units outstanding at end of period (in thousands) 21,166 19,327 15,603 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.419 $13.284 $12.856 Accumulation Unit Value at end of period $15.705 $15.419 $13.284 Number of Accumulation Units outstanding at end of period (in thousands) 21,166 19,327 15,603 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.211 $13.144 $12.746 Accumulation Unit Value at end of period $15.446 $15.211 $13.144 Number of Accumulation Units outstanding at end of period (in thousands) 3,505 3,535 3,423
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- FRANKLIN LARGE CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.066 $11.029 $10.613 Accumulation Unit Value at end of period $12.646 $12.066 $11.029 Number of Accumulation Units outstanding at end of period (in thousands) 1,112 895 541 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.948 $10.942 $10.544 Accumulation Unit Value at end of period $12.497 $11.948 $10.942 Number of Accumulation Units outstanding at end of period (in thousands) 152 140 88 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.893 $10.902 $10.512 Accumulation Unit Value at end of period $12.427 $11.893 $10.902 Number of Accumulation Units outstanding at end of period (in thousands) 401 361 305 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.782 $10.823 $10.449 Accumulation Unit Value at end of period $12.287 $11.782 $10.823 Number of Accumulation Units outstanding at end of period (in thousands) 1,629 1,614 1,355 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.782 $10.823 $10.449 Accumulation Unit Value at end of period $12.287 $11.782 $10.823 Number of Accumulation Units outstanding at end of period (in thousands) 1,629 1,614 1,355 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.622 $10.708 $10.359 Accumulation Unit Value at end of period $12.084 $11.622 $10.708 Number of Accumulation Units outstanding at end of period (in thousands) 651 616 607 FRANKLIN LARGE CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.824 $10.315 $9.708 Accumulation Unit Value at end of period $11.634 $11.824 $10.315 Number of Accumulation Units outstanding at end of period (in thousands) 170 93 9 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.780 $10.297 $9.704 Accumulation Unit Value at end of period $11.569 $11.780 $10.297 Number of Accumulation Units outstanding at end of period (in thousands) 18 16 7 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.759 $10.289 $9.703 Accumulation Unit Value at end of period $11.536 $11.759 $10.289 Number of Accumulation Units outstanding at end of period (in thousands) 75 67 14 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.716 $10.272 $9.699 Accumulation Unit Value at end of period $11.471 $11.716 $10.272 Number of Accumulation Units outstanding at end of period (in thousands) 111 135 62 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.716 $10.272 $9.699 Accumulation Unit Value at end of period $11.471 $11.716 $10.272 Number of Accumulation Units outstanding at end of period (in thousands) 111 135 62 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.651 $10.246 $9.695 Accumulation Unit Value at end of period $11.374 $11.651 $10.246 Number of Accumulation Units outstanding at end of period (in thousands) 31 16 5 FRANKLIN RISING DIVIDENDS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.628 $13.525 $12.810 Accumulation Unit Value at end of period $15.004 $15.628 $13.525 Number of Accumulation Units outstanding at end of period (in thousands) 7,350 4,260 2,034
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.514 $13.453 $12.759 Accumulation Unit Value at end of period $14.865 $15.514 $13.453 Number of Accumulation Units outstanding at end of period (in thousands) 587 529 270 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.457 $13.417 $12.734 Accumulation Unit Value at end of period $14.795 $15.457 $13.417 Number of Accumulation Units outstanding at end of period (in thousands) 1,588 1,250 888 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.344 $13.345 $12.683 Accumulation Unit Value at end of period $14.658 $15.344 $13.345 Number of Accumulation Units outstanding at end of period (in thousands) 6,349 5,845 4,251 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.344 $13.345 $12.683 Accumulation Unit Value at end of period $14.658 $15.344 $13.345 Number of Accumulation Units outstanding at end of period (in thousands) 6,349 5,845 4,251 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.176 $13.239 $12.607 Accumulation Unit Value at end of period $14.454 $15.176 $13.239 Number of Accumulation Units outstanding at end of period (in thousands) 1,354 1,395 1,322 FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.254 -- -- (a) Accumulation Unit Value at end of period $9.253 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.251 -- -- (a) Accumulation Unit Value at end of period $9.248 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.250 -- -- (a) Accumulation Unit Value at end of period $9.246 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.247 -- -- (a) Accumulation Unit Value at end of period $9.240 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.247 -- -- (a) Accumulation Unit Value at end of period $9.240 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.243 -- -- (a) Accumulation Unit Value at end of period $9.233 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.943 $12.070 $10.504 Accumulation Unit Value at end of period $14.205 $12.943 $12.070 Number of Accumulation Units outstanding at end of period (in thousands) 969 591 360 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.406 $12.526 $10.915 Accumulation Unit Value at end of period $14.683 $13.406 $12.526 Number of Accumulation Units outstanding at end of period (in thousands) 105 116 158
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.305 $12.445 $10.852 Accumulation Unit Value at end of period $14.559 $13.305 $12.445 Number of Accumulation Units outstanding at end of period (in thousands) 687 707 709 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $7.646 $7.166 $6.257 Accumulation Unit Value at end of period $8.350 $7.646 $7.166 Number of Accumulation Units outstanding at end of period (in thousands) 1,648 1,520 1,222 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.646 $7.166 $6.257 Accumulation Unit Value at end of period $8.350 $7.646 $7.166 Number of Accumulation Units outstanding at end of period (in thousands) 1,648 1,520 1,222 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.920 $12.145 $10.626 Accumulation Unit Value at end of period $14.067 $12.920 $12.145 Number of Accumulation Units outstanding at end of period (in thousands) 518 426 426 FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.961 $14.910 $14.583 Accumulation Unit Value at end of period $16.724 $15.961 $14.910 Number of Accumulation Units outstanding at end of period (in thousands) 2,126 1,409 834 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.392 $14.407 $14.110 Accumulation Unit Value at end of period $16.095 $15.392 $14.407 Number of Accumulation Units outstanding at end of period (in thousands) 303 340 287 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.277 $14.314 $14.027 Accumulation Unit Value at end of period $15.959 $15.277 $14.314 Number of Accumulation Units outstanding at end of period (in thousands) 1,005 867 783 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.539 $13.650 $13.395 Accumulation Unit Value at end of period $15.158 $14.539 $13.650 Number of Accumulation Units outstanding at end of period (in thousands) 2,315 1,900 1,677 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.539 $13.650 $13.395 Accumulation Unit Value at end of period $15.158 $14.539 $13.650 Number of Accumulation Units outstanding at end of period (in thousands) 2,315 1,900 1,677 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.835 $13.970 $13.736 Accumulation Unit Value at end of period $15.420 $14.835 $13.970 Number of Accumulation Units outstanding at end of period (in thousands) 826 749 731 HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.129 $1.093 $1.080 Accumulation Unit Value at end of period $1.169 $1.129 $1.093 Number of Accumulation Units outstanding at end of period (in thousands) 25,415 16,822 9,835 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.118 $1.084 $1.073 Accumulation Unit Value at end of period $1.155 $1.118 $1.084 Number of Accumulation Units outstanding at end of period (in thousands) 3,733 2,792 1,830 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.110 $1.077 $1.067 Accumulation Unit Value at end of period $1.145 $1.110 $1.077 Number of Accumulation Units outstanding at end of period (in thousands) 17,644 10,746 10,607 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.044 $1.016 $1.007 Accumulation Unit Value at end of period $1.076 $1.044 $1.016 Number of Accumulation Units outstanding at end of period (in thousands) 42,452 30,403 19,234
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.044 $1.016 $1.007 Accumulation Unit Value at end of period $1.076 $1.044 $1.016 Number of Accumulation Units outstanding at end of period (in thousands) 42,452 30,403 19,234 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $1.052 $1.045 Accumulation Unit Value at end of period $1.107 $1.078 $1.052 Number of Accumulation Units outstanding at end of period (in thousands) 13,220 5,550 5,324 MFS(R) EMERGING GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.679 $8.153 $6.894 Accumulation Unit Value at end of period $10.375 $8.679 $8.153 Number of Accumulation Units outstanding at end of period (in thousands) 195 98 78 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $8.486 $7.988 $6.763 Accumulation Unit Value at end of period $10.125 $8.486 $7.988 Number of Accumulation Units outstanding at end of period (in thousands) 100 92 96 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.423 $7.936 $6.724 Accumulation Unit Value at end of period $10.039 $8.423 $7.936 Number of Accumulation Units outstanding at end of period (in thousands) 209 325 340 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $5.558 $5.248 $4.452 Accumulation Unit Value at end of period $6.612 $5.558 $5.248 Number of Accumulation Units outstanding at end of period (in thousands) 527 177 145 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.558 $5.248 $4.452 Accumulation Unit Value at end of period $6.612 $5.558 $5.248 Number of Accumulation Units outstanding at end of period (in thousands) 527 177 145 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.179 $7.745 $6.584 Accumulation Unit Value at end of period $9.700 $8.179 $7.745 Number of Accumulation Units outstanding at end of period (in thousands) 76 49 69 MFS(R) GLOBAL EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.420 $13.378 $12.168 Accumulation Unit Value at end of period $17.689 $16.420 $13.378 Number of Accumulation Units outstanding at end of period (in thousands) 58 35 19 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.528 $12.677 $11.545 Accumulation Unit Value at end of period $16.695 $15.528 $12.677 Number of Accumulation Units outstanding at end of period (in thousands) 21 14 15 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.412 $12.595 $11.478 Accumulation Unit Value at end of period $16.554 $15.412 $12.595 Number of Accumulation Units outstanding at end of period (in thousands) 54 56 53 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.828 $11.323 $10.333 Accumulation Unit Value at end of period $14.823 $13.828 $11.323 Number of Accumulation Units outstanding at end of period (in thousands) 111 112 88 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.828 $11.323 $10.333 Accumulation Unit Value at end of period $14.823 $13.828 $11.323 Number of Accumulation Units outstanding at end of period (in thousands) 111 112 88 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.966 $12.292 $11.239 Accumulation Unit Value at end of period $15.995 $14.966 $12.292 Number of Accumulation Units outstanding at end of period (in thousands) 46 32 24
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- MFS(R) HIGH INCOME SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.282 $12.198 $11.734 Accumulation Unit Value at end of period $13.336 $13.282 $12.198 Number of Accumulation Units outstanding at end of period (in thousands) 835 586 377 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.783 $11.762 $11.330 Accumulation Unit Value at end of period $12.809 $12.783 $11.762 Number of Accumulation Units outstanding at end of period (in thousands) 131 135 159 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.687 $11.686 $11.265 Accumulation Unit Value at end of period $12.700 $12.687 $11.686 Number of Accumulation Units outstanding at end of period (in thousands) 605 709 751 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.701 $11.722 $11.314 Accumulation Unit Value at end of period $12.689 $12.701 $11.722 Number of Accumulation Units outstanding at end of period (in thousands) 794 707 689 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.701 $11.722 $11.314 Accumulation Unit Value at end of period $12.689 $12.701 $11.722 Number of Accumulation Units outstanding at end of period (in thousands) 794 707 689 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.321 $11.405 $11.030 Accumulation Unit Value at end of period $12.272 $12.321 $11.405 Number of Accumulation Units outstanding at end of period (in thousands) 372 333 394 MFS(R) INVESTORS GROWTH STOCK SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.871 $8.358 $7.590 Accumulation Unit Value at end of period $9.746 $8.871 $8.358 Number of Accumulation Units outstanding at end of period (in thousands) 132 87 58 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $8.390 $7.921 $7.202 Accumulation Unit Value at end of period $9.199 $8.390 $7.921 Number of Accumulation Units outstanding at end of period (in thousands) 87 98 106 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.327 $7.869 $7.160 Accumulation Unit Value at end of period $9.121 $8.327 $7.869 Number of Accumulation Units outstanding at end of period (in thousands) 201 301 381 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.473 $6.129 $5.585 Accumulation Unit Value at end of period $7.076 $6.473 $6.129 Number of Accumulation Units outstanding at end of period (in thousands) 181 180 189 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.473 $6.129 $5.585 Accumulation Unit Value at end of period $7.076 $6.473 $6.129 Number of Accumulation Units outstanding at end of period (in thousands) 181 180 189 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.086 $7.680 $7.011 Accumulation Unit Value at end of period $8.813 $8.086 $7.680 Number of Accumulation Units outstanding at end of period (in thousands) 92 62 66 MFS(R) INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.127 $9.981 $9.053 Accumulation Unit Value at end of period $12.109 $11.127 $9.981 Number of Accumulation Units outstanding at end of period (in thousands) 2,802 1,871 1,019
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.771 $8.782 $7.976 Accumulation Unit Value at end of period $10.612 $9.771 $8.782 Number of Accumulation Units outstanding at end of period (in thousands) 488 447 327 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.698 $8.726 $7.930 Accumulation Unit Value at end of period $10.522 $9.698 $8.726 Number of Accumulation Units outstanding at end of period (in thousands) 1,110 991 854 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.502 $8.567 $7.796 Accumulation Unit Value at end of period $10.290 $9.502 $8.567 Number of Accumulation Units outstanding at end of period (in thousands) 3,980 3,850 3,202 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.502 $8.567 $7.796 Accumulation Unit Value at end of period $10.290 $9.502 $8.567 Number of Accumulation Units outstanding at end of period (in thousands) 3,980 3,850 3,202 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.417 $8.516 $7.765 Accumulation Unit Value at end of period $10.167 $9.417 $8.516 Number of Accumulation Units outstanding at end of period (in thousands) 1,220 1,172 1,140 MFS(R) MID CAP GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.126 $6.055 $5.306 Accumulation Unit Value at end of period $6.638 $6.126 $6.055 Number of Accumulation Units outstanding at end of period (in thousands) 495 449 399 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.036 $5.978 $5.246 Accumulation Unit Value at end of period $6.527 $6.036 $5.978 Number of Accumulation Units outstanding at end of period (in thousands) 83 94 111 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $5.998 $5.946 $5.221 Accumulation Unit Value at end of period $6.479 $5.998 $5.946 Number of Accumulation Units outstanding at end of period (in thousands) 426 506 570 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.405 $6.362 $5.594 Accumulation Unit Value at end of period $6.905 $6.405 $6.362 Number of Accumulation Units outstanding at end of period (in thousands) 514 513 535 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.405 $6.362 $5.594 Accumulation Unit Value at end of period $6.905 $6.405 $6.362 Number of Accumulation Units outstanding at end of period (in thousands) 514 513 535 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.832 $5.811 $5.120 Accumulation Unit Value at end of period $6.269 $5.832 $5.811 Number of Accumulation Units outstanding at end of period (in thousands) 453 433 482 MFS(R) NEW DISCOVERY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.233 $13.638 $11.343 Accumulation Unit Value at end of period $15.407 $15.233 $13.638 Number of Accumulation Units outstanding at end of period (in thousands) 1,310 909 377 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.881 $12.453 $10.371 Accumulation Unit Value at end of period $14.012 $13.881 $12.453 Number of Accumulation Units outstanding at end of period (in thousands) 213 171 125 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.778 $12.372 $10.310 Accumulation Unit Value at end of period $13.893 $13.778 $12.372 Number of Accumulation Units outstanding at end of period (in thousands) 526 472 392
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.029 $8.124 $6.779 Accumulation Unit Value at end of period $9.086 $9.029 $8.124 Number of Accumulation Units outstanding at end of period (in thousands) 2,321 2,253 1,794 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.029 $8.124 $6.779 Accumulation Unit Value at end of period $9.086 $9.029 $8.124 Number of Accumulation Units outstanding at end of period (in thousands) 2,321 2,253 1,794 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.379 $12.074 $10.096 Accumulation Unit Value at end of period $13.424 $13.379 $12.074 Number of Accumulation Units outstanding at end of period (in thousands) 495 518 578 MFS(R) RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $10.040 $9.983 Accumulation Unit Value at end of period $10.596 $10.307 $10.040 Number of Accumulation Units outstanding at end of period (in thousands) 641 177 27 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.269 $10.024 $9.980 Accumulation Unit Value at end of period $10.537 $10.269 $10.024 Number of Accumulation Units outstanding at end of period (in thousands) 38 30 17 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.251 $10.016 $9.978 Accumulation Unit Value at end of period $10.507 $10.251 $10.016 Number of Accumulation Units outstanding at end of period (in thousands) 177 76 31 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.214 $10.000 $9.975 Accumulation Unit Value at end of period $10.448 $10.214 $10.000 Number of Accumulation Units outstanding at end of period (in thousands) 458 226 91 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.214 $10.000 $9.975 Accumulation Unit Value at end of period $10.448 $10.214 $10.000 Number of Accumulation Units outstanding at end of period (in thousands) 458 226 91 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.158 $9.975 $9.971 Accumulation Unit Value at end of period $10.361 $10.158 $9.975 Number of Accumulation Units outstanding at end of period (in thousands) 89 29 10 MFS(R) RESEARCH INTERNATIONAL SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.847 $11.985 $10.019 Accumulation Unit Value at end of period $16.527 $14.847 $11.985 Number of Accumulation Units outstanding at end of period (in thousands) 300 57 3 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.798 $11.969 $10.019 Accumulation Unit Value at end of period $16.439 $14.798 $11.969 Number of Accumulation Units outstanding at end of period (in thousands) 19 10 3 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.773 $11.961 $10.019 Accumulation Unit Value at end of period $16.395 $14.773 $11.961 Number of Accumulation Units outstanding at end of period (in thousands) 71 13 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.724 $11.945 $10.018 Accumulation Unit Value at end of period $16.307 $14.724 $11.945 Number of Accumulation Units outstanding at end of period (in thousands) 245 129 5 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.724 $11.945 $10.018 Accumulation Unit Value at end of period $16.307 $14.724 $11.945 Number of Accumulation Units outstanding at end of period (in thousands) 245 129 5
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.650 $11.921 $10.018 Accumulation Unit Value at end of period $16.177 $14.650 $11.921 Number of Accumulation Units outstanding at end of period (in thousands) 48 13 2 MFS(R) RESEARCH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.572 $10.617 $9.472 Accumulation Unit Value at end of period $12.925 $11.572 $10.617 Number of Accumulation Units outstanding at end of period (in thousands) 32 11 4 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.530 $10.599 $9.469 Accumulation Unit Value at end of period $12.851 $11.530 $10.599 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.508 $10.590 $9.468 Accumulation Unit Value at end of period $12.815 $11.508 $10.590 Number of Accumulation Units outstanding at end of period (in thousands) 19 10 8 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.466 $10.573 $9.464 Accumulation Unit Value at end of period $12.742 $11.466 $10.573 Number of Accumulation Units outstanding at end of period (in thousands) 66 32 18 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.466 $10.573 $9.464 Accumulation Unit Value at end of period $12.742 $11.466 $10.573 Number of Accumulation Units outstanding at end of period (in thousands) 66 32 18 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.403 $10.546 $9.459 Accumulation Unit Value at end of period $12.634 $11.403 $10.546 Number of Accumulation Units outstanding at end of period (in thousands) 18 7 9 MFS(R) TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.523 $14.061 $13.598 Accumulation Unit Value at end of period $15.960 $15.523 $14.061 Number of Accumulation Units outstanding at end of period (in thousands) 6,616 3,959 1,860 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.290 $12.970 $12.560 Accumulation Unit Value at end of period $14.663 $14.290 $12.970 Number of Accumulation Units outstanding at end of period (in thousands) 831 770 505 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.183 $12.886 $12.487 Accumulation Unit Value at end of period $14.539 $14.183 $12.886 Number of Accumulation Units outstanding at end of period (in thousands) 2,467 2,222 2,017 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.303 $12.111 $11.752 Accumulation Unit Value at end of period $13.610 $13.303 $12.111 Number of Accumulation Units outstanding at end of period (in thousands) 8,125 7,399 5,461 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.303 $12.111 $11.752 Accumulation Unit Value at end of period $13.610 $13.303 $12.111 Number of Accumulation Units outstanding at end of period (in thousands) 8,125 7,399 5,461 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.773 $12.576 $12.227 Accumulation Unit Value at end of period $14.048 $13.773 $12.576 Number of Accumulation Units outstanding at end of period (in thousands) 2,070 1,991 2,026
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- MFS(R) VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.453 $14.639 $13.768 Accumulation Unit Value at end of period $18.581 $17.453 $14.639 Number of Accumulation Units outstanding at end of period (in thousands) 807 373 148 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.325 $14.561 $13.713 Accumulation Unit Value at end of period $18.408 $17.325 $14.561 Number of Accumulation Units outstanding at end of period (in thousands) 72 69 19 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $17.262 $14.522 $13.686 Accumulation Unit Value at end of period $18.322 $17.262 $14.522 Number of Accumulation Units outstanding at end of period (in thousands) 223 137 107 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.136 $14.445 $13.631 Accumulation Unit Value at end of period $18.152 $17.136 $14.445 Number of Accumulation Units outstanding at end of period (in thousands) 638 486 298 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $17.136 $14.445 $13.631 Accumulation Unit Value at end of period $18.152 $17.136 $14.445 Number of Accumulation Units outstanding at end of period (in thousands) 638 486 298 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.948 $14.330 $13.549 Accumulation Unit Value at end of period $17.899 $16.948 $14.330 Number of Accumulation Units outstanding at end of period (in thousands) 192 225 131 MUTUAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $20.136 $16.585 $14.600 Accumulation Unit Value at end of period $22.220 $20.136 $16.585 Number of Accumulation Units outstanding at end of period (in thousands) 1,814 1,001 438 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.988 $16.497 $14.541 Accumulation Unit Value at end of period $22.013 $19.988 $16.497 Number of Accumulation Units outstanding at end of period (in thousands) 161 151 50 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $19.915 $16.453 $14.512 Accumulation Unit Value at end of period $21.911 $19.915 $16.453 Number of Accumulation Units outstanding at end of period (in thousands) 450 373 358 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.770 $16.366 $14.454 Accumulation Unit Value at end of period $21.707 $19.770 $16.366 Number of Accumulation Units outstanding at end of period (in thousands) 1,586 1,370 848 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.770 $16.366 $14.454 Accumulation Unit Value at end of period $21.707 $19.770 $16.366 Number of Accumulation Units outstanding at end of period (in thousands) 1,586 1,370 848 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.553 $16.235 $14.367 Accumulation Unit Value at end of period $21.405 $19.553 $16.235 Number of Accumulation Units outstanding at end of period (in thousands) 475 489 372 MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.484 $16.683 $15.153 Accumulation Unit Value at end of period $19.892 $19.484 $16.683 Number of Accumulation Units outstanding at end of period (in thousands) 9,553 6,695 4,108
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.320 $14.859 $13.515 Accumulation Unit Value at end of period $17.647 $17.320 $14.859 Number of Accumulation Units outstanding at end of period (in thousands) 1,279 1,211 850 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $17.191 $14.763 $13.436 Accumulation Unit Value at end of period $17.498 $17.191 $14.763 Number of Accumulation Units outstanding at end of period (in thousands) 2,139 2,076 1,985 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.342 $14.062 $12.815 Accumulation Unit Value at end of period $16.600 $16.342 $14.062 Number of Accumulation Units outstanding at end of period (in thousands) 11,385 10,624 8,636 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.342 $14.062 $12.815 Accumulation Unit Value at end of period $16.600 $16.342 $14.062 Number of Accumulation Units outstanding at end of period (in thousands) 11,385 10,624 8,636 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.694 $14.408 $13.157 Accumulation Unit Value at end of period $16.907 $16.694 $14.408 Number of Accumulation Units outstanding at end of period (in thousands) 2,134 2,125 2,145 TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.737 $18.733 $14.727 Accumulation Unit Value at end of period $30.230 $23.737 $18.733 Number of Accumulation Units outstanding at end of period (in thousands) 454 304 159 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $20.355 $16.096 $12.671 Accumulation Unit Value at end of period $25.871 $20.355 $16.096 Number of Accumulation Units outstanding at end of period (in thousands) 66 66 56 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $20.203 $15.992 $12.597 Accumulation Unit Value at end of period $25.652 $20.203 $15.992 Number of Accumulation Units outstanding at end of period (in thousands) 216 198 153 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $24.099 $19.114 $15.077 Accumulation Unit Value at end of period $30.539 $24.099 $19.114 Number of Accumulation Units outstanding at end of period (in thousands) 661 568 399 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $24.099 $19.114 $15.077 Accumulation Unit Value at end of period $30.539 $24.099 $19.114 Number of Accumulation Units outstanding at end of period (in thousands) 661 568 399 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.618 $15.607 $12.335 Accumulation Unit Value at end of period $24.786 $19.618 $15.607 Number of Accumulation Units outstanding at end of period (in thousands) 170 165 157 TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.502 $12.104 $10.823 Accumulation Unit Value at end of period $16.519 $14.502 $12.104 Number of Accumulation Units outstanding at end of period (in thousands) 3,379 2,739 1,634 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.759 $11.506 $10.303 Accumulation Unit Value at end of period $15.642 $13.759 $11.506 Number of Accumulation Units outstanding at end of period (in thousands) 514 533 355 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.656 $11.432 $10.243 Accumulation Unit Value at end of period $15.509 $13.656 $11.432 Number of Accumulation Units outstanding at end of period (in thousands) 1,192 1,167 1,012
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.959 $10.870 $9.752 Accumulation Unit Value at end of period $14.688 $12.959 $10.870 Number of Accumulation Units outstanding at end of period (in thousands) 4,767 4,966 4,328 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.959 $10.870 $9.752 Accumulation Unit Value at end of period $14.688 $12.959 $10.870 Number of Accumulation Units outstanding at end of period (in thousands) 4,767 4,966 4,328 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.261 $11.157 $10.030 Accumulation Unit Value at end of period $14.985 $13.261 $11.157 Number of Accumulation Units outstanding at end of period (in thousands) 1,495 1,596 1,616 TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.068 $14.202 $12.979 Accumulation Unit Value at end of period $17.234 $17.068 $14.202 Number of Accumulation Units outstanding at end of period (in thousands) 9,032 6,655 4,070 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.798 $13.172 $12.054 Accumulation Unit Value at end of period $15.920 $15.798 $13.172 Number of Accumulation Units outstanding at end of period (in thousands) 1,188 1,106 765 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.680 $13.087 $11.983 Accumulation Unit Value at end of period $15.785 $15.680 $13.087 Number of Accumulation Units outstanding at end of period (in thousands) 1,528 1,620 1,275 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.342 $12.830 $11.764 Accumulation Unit Value at end of period $15.414 $15.342 $12.830 Number of Accumulation Units outstanding at end of period (in thousands) 10,657 10,184 8,474 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.342 $12.830 $11.764 Accumulation Unit Value at end of period $15.414 $15.342 $12.830 Number of Accumulation Units outstanding at end of period (in thousands) 10,657 10,184 8,474 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.227 $12.772 $11.734 Accumulation Unit Value at end of period $15.252 $15.227 $12.772 Number of Accumulation Units outstanding at end of period (in thousands) 1,750 1,945 1,941
(a) Inception date November 12, 2007.
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.320 $1.193 $1.152 $1.085 Accumulation Unit Value at end of period $1.401 $1.320 $1.193 $1.152 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.310 $1.187 $1.148 $1.082 Accumulation Unit Value at end of period $1.388 $1.310 $1.187 $1.148 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.301 $1.179 $1.142 $1.079 Accumulation Unit Value at end of period $1.377 $1.301 $1.179 $1.142 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.289 $1.171 $1.136 $1.071 Accumulation Unit Value at end of period $1.361 $1.289 $1.171 $1.136 Number of Accumulation Units outstanding at end of period (in thousands) 10 10 10 10 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.289 $1.171 $1.136 $1.075 Accumulation Unit Value at end of period $1.361 $1.289 $1.171 $1.136 Number of Accumulation Units outstanding at end of period (in thousands) 10 10 10 10 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.271 $1.158 $1.127 $1.070 Accumulation Unit Value at end of period $1.338 $1.271 $1.158 $1.127 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT C&B LARGE CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.323 $1.098 $1.079 $0.999 Accumulation Unit Value at end of period $1.290 $1.323 $1.098 $1.079 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.313 $1.092 $1.076 $1.007 Accumulation Unit Value at end of period $1.278 $1.313 $1.092 $1.076 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.304 $1.085 $1.070 $0.993 Accumulation Unit Value at end of period $1.267 $1.304 $1.085 $1.070 Number of Accumulation Units outstanding at end of period (in thousands) 5 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.292 $1.078 $1.065 $0.997 Accumulation Unit Value at end of period $1.253 $1.292 $1.078 $1.065 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.292 $1.078 $1.065 $0.990 Accumulation Unit Value at end of period $1.253 $1.292 $1.078 $1.065 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.274 $1.066 $1.056 $0.985 Accumulation Unit Value at end of period $1.232 $1.274 $1.066 $1.056 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT DISCOVERY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.731 $11.256 $10.524 -- Accumulation Unit Value at end of period $15.364 $12.731 $11.256 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.691 $11.242 $10.522 -- Accumulation Unit Value at end of period $15.285 $12.691 $11.242 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.670 $11.236 $10.521 -- Accumulation Unit Value at end of period $15.246 $12.670 $11.236 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.630 $11.223 $10.519 -- Accumulation Unit Value at end of period $15.167 $12.630 $11.223 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.630 $11.223 $10.519 -- Accumulation Unit Value at end of period $15.167 $12.630 $11.223 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.570 $11.203 $10.516 -- Accumulation Unit Value at end of period $15.050 $12.570 $11.203 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT EQUITY INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.405 $1.201 $1.155 $1.070 Accumulation Unit Value at end of period $1.425 $1.405 $1.201 $1.155 Number of Accumulation Units outstanding at end of period (in thousands) 14 14 15 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.395 $1.195 $1.151 $1.078 Accumulation Unit Value at end of period $1.411 $1.395 $1.195 $1.151 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.384 $1.187 $1.145 $1.064 Accumulation Unit Value at end of period $1.400 $1.384 $1.187 $1.145 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.371 $1.178 $1.139 $1.067 Accumulation Unit Value at end of period $1.384 $1.371 $1.178 $1.139 Number of Accumulation Units outstanding at end of period (in thousands) 8 8 13 6 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.371 $1.178 $1.139 $1.061 Accumulation Unit Value at end of period $1.384 $1.371 $1.178 $1.139 Number of Accumulation Units outstanding at end of period (in thousands) 8 8 13 6 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.353 $1.166 $1.130 $1.055 Accumulation Unit Value at end of period $1.361 $1.353 $1.166 $1.130 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.451 $1.217 $1.125 $1.040 Accumulation Unit Value at end of period $1.613 $1.451 $1.217 $1.125 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.441 $1.211 $1.121 $1.030 Accumulation Unit Value at end of period $1.598 $1.441 $1.211 $1.121 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.430 $1.203 $1.115 $1.034 Accumulation Unit Value at end of period $1.585 $1.430 $1.203 $1.115 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.417 $1.195 $1.110 $1.020 Accumulation Unit Value at end of period $1.567 $1.417 $1.195 $1.110 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 7 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.417 $1.195 $1.110 $1.031 Accumulation Unit Value at end of period $1.567 $1.417 $1.195 $1.110 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 7 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.397 $1.182 $1.101 $1.025 Accumulation Unit Value at end of period $1.541 $1.397 $1.182 $1.101 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT LARGE COMPANY CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $0.981 $1.017 $0.964 Accumulation Unit Value at end of period $1.130 $1.119 $0.981 $1.017 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.111 $0.976 $1.014 $0.942 Accumulation Unit Value at end of period $1.120 $1.111 $0.976 $1.014 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.103 $0.970 $1.009 $0.959 Accumulation Unit Value at end of period $1.110 $1.103 $0.970 $1.009 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.093 $0.963 $1.003 $0.933 Accumulation Unit Value at end of period $1.098 $1.093 $0.963 $1.003 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.093 $0.963 $1.003 $0.955 Accumulation Unit Value at end of period $1.098 $1.093 $0.963 $1.003 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $0.952 $0.995 $0.950 Accumulation Unit Value at end of period $1.079 $1.078 $0.952 $0.995 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.069 $1.059 $1.016 $1.007 Accumulation Unit Value at end of period $1.135 $1.069 $1.059 $1.016 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.062 $1.054 $1.012 $0.947 Accumulation Unit Value at end of period $1.125 $1.062 $1.054 $1.012 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.054 $1.047 $1.007 $1.001 Accumulation Unit Value at end of period $1.116 $1.054 $1.047 $1.007 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.044 $1.039 $1.002 $0.938 Accumulation Unit Value at end of period $1.103 $1.044 $1.039 $1.002 Number of Accumulation Units outstanding at end of period (in thousands) 8 8 7 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.044 $1.039 $1.002 $0.998 Accumulation Unit Value at end of period $1.103 $1.044 $1.039 $1.002 Number of Accumulation Units outstanding at end of period (in thousands) 8 8 7 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.030 $1.028 $0.994 $0.993 Accumulation Unit Value at end of period $1.085 $1.030 $1.028 $0.994 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT MONEY MARKET FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.026 $0.996 $0.984 $0.990 Accumulation Unit Value at end of period $1.059 $1.026 $0.996 $0.984 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- --
58 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.019 $0.991 $0.981 $0.981 Accumulation Unit Value at end of period $1.049 $1.019 $0.991 $0.981 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.011 $0.985 $0.976 $0.984 Accumulation Unit Value at end of period $1.041 $1.011 $0.985 $0.976 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.002 $0.977 $0.971 $0.971 Accumulation Unit Value at end of period $1.029 $1.002 $0.977 $0.971 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.002 $0.977 $0.971 $0.981 Accumulation Unit Value at end of period $1.029 $1.002 $0.977 $0.971 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.988 $0.967 $0.963 $0.976 Accumulation Unit Value at end of period $1.012 $0.988 $0.967 $0.963 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.016 $10.853 $10.330 -- Accumulation Unit Value at end of period $12.642 $12.016 $10.853 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.978 $10.841 $10.328 -- Accumulation Unit Value at end of period $12.576 $11.978 $10.841 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.959 $10.834 $10.327 -- Accumulation Unit Value at end of period $12.544 $11.959 $10.834 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.921 $10.822 $10.325 -- Accumulation Unit Value at end of period $12.479 $11.921 $10.822 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.921 $10.822 $10.325 -- Accumulation Unit Value at end of period $12.479 $11.921 $10.822 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.865 $10.803 $10.322 -- Accumulation Unit Value at end of period $12.383 $11.865 $10.803 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.407 $1.162 $1.108 $1.042 Accumulation Unit Value at end of period $1.580 $1.407 $1.162 $1.108 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.397 $1.156 $1.105 $0.995 Accumulation Unit Value at end of period $1.565 $1.397 $1.156 $1.105 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.387 $1.148 $1.099 $1.036 Accumulation Unit Value at end of period $1.552 $1.387 $1.148 $1.099 Number of Accumulation Units outstanding at end of period (in thousands) 2 -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.374 $1.140 $1.093 $0.985 Accumulation Unit Value at end of period $1.535 $1.374 $1.140 $1.093 Number of Accumulation Units outstanding at end of period (in thousands) 4 5 5 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.374 $1.140 $1.093 $1.032 Accumulation Unit Value at end of period $1.535 $1.374 $1.140 $1.093 Number of Accumulation Units outstanding at end of period (in thousands) 4 5 5 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.355 $1.128 $1.084 $1.027 Accumulation Unit Value at end of period $1.509 $1.355 $1.128 $1.084 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT SMALL/MID CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.815 $12.100 $10.825 -- Accumulation Unit Value at end of period $13.536 $13.815 $12.100 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.772 $12.086 $10.823 -- Accumulation Unit Value at end of period $13.466 $13.772 $12.086 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.750 $12.079 $10.822 -- Accumulation Unit Value at end of period $13.431 $13.750 $12.079 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.706 $12.065 $10.820 -- Accumulation Unit Value at end of period $13.362 $13.706 $12.065 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.706 $12.065 $10.820 -- Accumulation Unit Value at end of period $13.362 $13.706 $12.065 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.641 $12.044 $10.817 -- Accumulation Unit Value at end of period $13.259 $13.641 $12.044 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WELLS FARGO ADVANTAGE VT TOTAL RETURN BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.186 $1.158 $1.151 $1.126 Accumulation Unit Value at end of period $1.243 $1.186 $1.158 $1.151 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 7 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.178 $1.152 $1.148 $1.146 Accumulation Unit Value at end of period $1.231 $1.178 $1.152 $1.148 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.169 $1.144 $1.142 $1.119 Accumulation Unit Value at end of period $1.221 $1.169 $1.144 $1.142 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.158 $1.136 $1.136 $1.135 Accumulation Unit Value at end of period $1.208 $1.158 $1.136 $1.136 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.158 $1.136 $1.136 $1.116 Accumulation Unit Value at end of period $1.208 $1.158 $1.136 $1.136 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- --
60 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.142 $1.124 $1.127 $1.110 Accumulation Unit Value at end of period $1.187 $1.142 $1.124 $1.127 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- --
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.320 $1.193 $1.122 Accumulation Unit Value at end of period $1.401 $1.320 $1.193 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.310 $1.187 $1.118 Accumulation Unit Value at end of period $1.388 $1.310 $1.187 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.301 $1.179 $1.111 Accumulation Unit Value at end of period $1.377 $1.301 $1.179 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.289 $1.171 $1.105 Accumulation Unit Value at end of period $1.361 $1.289 $1.171 Number of Accumulation Units outstanding at end of period (in thousands) 10 10 10 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.289 $1.171 $1.105 Accumulation Unit Value at end of period $1.361 $1.289 $1.171 Number of Accumulation Units outstanding at end of period (in thousands) 10 10 10 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.271 $1.158 $1.095 Accumulation Unit Value at end of period $1.338 $1.271 $1.158 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT C&B LARGE CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.323 $1.098 $1.063 Accumulation Unit Value at end of period $1.290 $1.323 $1.098 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.313 $1.092 $1.059 Accumulation Unit Value at end of period $1.278 $1.313 $1.092 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.304 $1.085 $1.053 Accumulation Unit Value at end of period $1.267 $1.304 $1.085 Number of Accumulation Units outstanding at end of period (in thousands) 5 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.292 $1.078 $1.047 Accumulation Unit Value at end of period $1.253 $1.292 $1.078 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.292 $1.078 $1.047 Accumulation Unit Value at end of period $1.253 $1.292 $1.078 Number of Accumulation Units outstanding at end of period (in thousands) -- -- --
61 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.274 $1.066 $1.038 Accumulation Unit Value at end of period $1.232 $1.274 $1.066 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT DISCOVERY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.731 $11.256 $10.524 Accumulation Unit Value at end of period $15.364 $12.731 $11.256 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.691 $11.242 $10.522 Accumulation Unit Value at end of period $15.285 $12.691 $11.242 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.670 $11.236 $10.521 Accumulation Unit Value at end of period $15.246 $12.670 $11.236 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.630 $11.223 $10.519 Accumulation Unit Value at end of period $15.167 $12.630 $11.223 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.630 $11.223 $10.519 Accumulation Unit Value at end of period $15.167 $12.630 $11.223 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.570 $11.203 $10.516 Accumulation Unit Value at end of period $15.050 $12.570 $11.203 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT EQUITY INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.405 $1.201 $1.140 Accumulation Unit Value at end of period $1.425 $1.405 $1.201 Number of Accumulation Units outstanding at end of period (in thousands) 14 14 15 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.395 $1.195 $1.136 Accumulation Unit Value at end of period $1.411 $1.395 $1.195 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.384 $1.187 $1.130 Accumulation Unit Value at end of period $1.400 $1.384 $1.187 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.371 $1.178 $1.123 Accumulation Unit Value at end of period $1.384 $1.371 $1.178 Number of Accumulation Units outstanding at end of period (in thousands) 8 8 13 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.371 $1.178 $1.123 Accumulation Unit Value at end of period $1.384 $1.371 $1.178 Number of Accumulation Units outstanding at end of period (in thousands) 8 8 13 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.353 $1.166 $1.113 Accumulation Unit Value at end of period $1.361 $1.353 $1.166 Number of Accumulation Units outstanding at end of period (in thousands) -- -- --
62 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.451 $1.217 $1.093 Accumulation Unit Value at end of period $1.613 $1.451 $1.217 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.441 $1.211 $1.089 Accumulation Unit Value at end of period $1.598 $1.441 $1.211 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.430 $1.203 $1.082 Accumulation Unit Value at end of period $1.585 $1.430 $1.203 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.417 $1.195 $1.076 Accumulation Unit Value at end of period $1.567 $1.417 $1.195 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 7 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.417 $1.195 $1.076 Accumulation Unit Value at end of period $1.567 $1.417 $1.195 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 7 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.397 $1.182 $1.066 Accumulation Unit Value at end of period $1.541 $1.397 $1.182 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $0.981 $0.949 Accumulation Unit Value at end of period $1.130 $1.119 $0.981 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.111 $0.976 $0.945 Accumulation Unit Value at end of period $1.120 $1.111 $0.976 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.103 $0.970 $0.940 Accumulation Unit Value at end of period $1.110 $1.103 $0.970 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.093 $0.963 $0.934 Accumulation Unit Value at end of period $1.098 $1.093 $0.963 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.093 $0.963 $0.934 Accumulation Unit Value at end of period $1.098 $1.093 $0.963 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $0.952 $0.926 Accumulation Unit Value at end of period $1.079 $1.078 $0.952 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.069 $1.059 $0.911 Accumulation Unit Value at end of period $1.135 $1.069 $1.059 Number of Accumulation Units outstanding at end of period (in thousands) -- -- --
63 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.062 $1.054 $0.907 Accumulation Unit Value at end of period $1.125 $1.062 $1.054 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.054 $1.047 $0.902 Accumulation Unit Value at end of period $1.116 $1.054 $1.047 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.044 $1.039 $0.897 Accumulation Unit Value at end of period $1.103 $1.044 $1.039 Number of Accumulation Units outstanding at end of period (in thousands) 8 8 7 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.044 $1.039 $0.897 Accumulation Unit Value at end of period $1.103 $1.044 $1.039 Number of Accumulation Units outstanding at end of period (in thousands) 8 8 7 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.030 $1.028 $0.889 Accumulation Unit Value at end of period $1.085 $1.030 $1.028 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT MONEY MARKET FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.026 $0.996 $0.986 Accumulation Unit Value at end of period $1.059 $1.026 $0.996 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.019 $0.991 $0.982 Accumulation Unit Value at end of period $1.049 $1.019 $0.991 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.011 $0.985 $0.977 Accumulation Unit Value at end of period $1.041 $1.011 $0.985 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.002 $0.977 $0.971 Accumulation Unit Value at end of period $1.029 $1.002 $0.977 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.002 $0.977 $0.971 Accumulation Unit Value at end of period $1.029 $1.002 $0.977 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.988 $0.967 $0.962 Accumulation Unit Value at end of period $1.012 $0.988 $0.967 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.016 $10.853 $10.330 Accumulation Unit Value at end of period $12.642 $12.016 $10.853 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.978 $10.841 $10.328 Accumulation Unit Value at end of period $12.576 $11.978 $10.841 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.959 $10.834 $10.327 Accumulation Unit Value at end of period $12.544 $11.959 $10.834 Number of Accumulation Units outstanding at end of period (in thousands) -- -- --
64 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.921 $10.822 $10.325 Accumulation Unit Value at end of period $12.479 $11.921 $10.822 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.921 $10.822 $10.325 Accumulation Unit Value at end of period $12.479 $11.921 $10.822 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.865 $10.803 $10.322 Accumulation Unit Value at end of period $12.383 $11.865 $10.803 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.407 $1.162 $0.970 Accumulation Unit Value at end of period $1.580 $1.407 $1.162 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.397 $1.156 $0.966 Accumulation Unit Value at end of period $1.565 $1.397 $1.156 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.387 $1.148 $0.961 Accumulation Unit Value at end of period $1.552 $1.387 $1.148 Number of Accumulation Units outstanding at end of period (in thousands) 2 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.374 $1.140 $0.955 Accumulation Unit Value at end of period $1.535 $1.374 $1.140 Number of Accumulation Units outstanding at end of period (in thousands) 4 5 5 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.374 $1.140 $0.955 Accumulation Unit Value at end of period $1.535 $1.374 $1.140 Number of Accumulation Units outstanding at end of period (in thousands) 4 5 5 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.355 $1.128 $0.946 Accumulation Unit Value at end of period $1.509 $1.355 $1.128 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT SMALL/MID CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.815 $12.100 $10.825 Accumulation Unit Value at end of period $13.536 $13.815 $12.100 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.772 $12.086 $10.823 Accumulation Unit Value at end of period $13.466 $13.772 $12.086 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.750 $12.079 $10.822 Accumulation Unit Value at end of period $13.431 $13.750 $12.079 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.706 $12.065 $10.820 Accumulation Unit Value at end of period $13.362 $13.706 $12.065 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.706 $12.065 $10.820 Accumulation Unit Value at end of period $13.362 $13.706 $12.065 Number of Accumulation Units outstanding at end of period (in thousands) -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.641 $12.044 $10.817 Accumulation Unit Value at end of period $13.259 $13.641 $12.044 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT TOTAL RETURN BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.186 $1.158 $1.154 Accumulation Unit Value at end of period $1.243 $1.186 $1.158 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 7 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.178 $1.152 $1.150 Accumulation Unit Value at end of period $1.231 $1.178 $1.152 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.169 $1.144 $1.143 Accumulation Unit Value at end of period $1.221 $1.169 $1.144 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.158 $1.136 $1.136 Accumulation Unit Value at end of period $1.208 $1.158 $1.136 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.158 $1.136 $1.136 Accumulation Unit Value at end of period $1.208 $1.158 $1.136 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.142 $1.124 $1.126 Accumulation Unit Value at end of period $1.187 $1.142 $1.124 Number of Accumulation Units outstanding at end of period (in thousands) -- -- --
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST BALANCED PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.498 $10.501 $10.384 $9.896 Accumulation Unit Value at end of period $12.040 $11.498 $10.501 $10.384 Number of Accumulation Units outstanding at end of period (in thousands) 39 28 27 24 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.446 $10.475 $10.379 $9.954 Accumulation Unit Value at end of period $11.962 $11.446 $10.475 $10.379 Number of Accumulation Units outstanding at end of period (in thousands) 20 21 12 1 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.403 $10.446 $10.361 $9.890 Accumulation Unit Value at end of period $11.905 $11.403 $10.446 $10.361 Number of Accumulation Units outstanding at end of period (in thousands) 4 2 2 -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.388 $10.437 $10.357 $9.889 Accumulation Unit Value at end of period $11.883 $11.388 $10.437 $10.357 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.341 $10.410 $10.345 $9.927 Accumulation Unit Value at end of period $11.816 $11.341 $10.410 $10.345 Number of Accumulation Units outstanding at end of period (in thousands) 84 93 107 65
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.341 $10.410 $10.345 $9.886 Accumulation Unit Value at end of period $11.816 $11.341 $10.410 $10.345 Number of Accumulation Units outstanding at end of period (in thousands) 84 93 107 65 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.294 $10.382 $10.334 $9.883 Accumulation Unit Value at end of period $11.750 $11.294 $10.382 $10.334 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.248 $10.355 $10.322 $9.880 Accumulation Unit Value at end of period $11.684 $11.248 $10.355 $10.322 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- JPMORGAN INSURANCE TRUST CORE BOND PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.410 $10.132 $10.030 $9.637 Accumulation Unit Value at end of period $10.918 $10.410 $10.132 $10.030 Number of Accumulation Units outstanding at end of period (in thousands) 2,382 1,524 824 188 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.638 $15.251 $15.128 $15.114 Accumulation Unit Value at end of period $16.368 $15.638 $15.251 $15.128 Number of Accumulation Units outstanding at end of period (in thousands) 196 144 91 13 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.324 $10.079 $10.008 $9.632 Accumulation Unit Value at end of period $10.796 $10.324 $10.079 $10.008 Number of Accumulation Units outstanding at end of period (in thousands) 303 190 80 27 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.310 $10.071 $10.004 $9.631 Accumulation Unit Value at end of period $10.775 $10.310 $10.071 $10.004 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.268 $10.044 $9.993 $9.988 Accumulation Unit Value at end of period $10.715 $10.268 $10.044 $9.993 Number of Accumulation Units outstanding at end of period (in thousands) 2,025 1,733 1,328 335 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.268 $10.044 $9.993 $9.628 Accumulation Unit Value at end of period $10.715 $10.268 $10.044 $9.993 Number of Accumulation Units outstanding at end of period (in thousands) 2,025 1,733 1,328 335 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.225 $10.018 $9.982 $9.625 Accumulation Unit Value at end of period $10.655 $10.225 $10.018 $9.982 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.183 $9.991 $9.970 $9.622 Accumulation Unit Value at end of period $10.595 $10.183 $9.991 $9.970 Number of Accumulation Units outstanding at end of period (in thousands) 232 169 99 28 JPMORGAN INSURANCE TRUST DIVERSIFIED EQUITY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.300 $10.734 $10.632 $10.072 Accumulation Unit Value at end of period $13.403 $12.300 $10.734 $10.632 Number of Accumulation Units outstanding at end of period (in thousands) 385 317 187 49 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.398 $16.962 $16.835 $15.747 Accumulation Unit Value at end of period $21.095 $19.398 $16.962 $16.835 Number of Accumulation Units outstanding at end of period (in thousands) 33 30 19 4
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.199 $10.678 $10.608 $10.066 Accumulation Unit Value at end of period $13.253 $12.199 $10.678 $10.608 Number of Accumulation Units outstanding at end of period (in thousands) 55 44 20 7 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.182 $10.668 $10.604 $10.065 Accumulation Unit Value at end of period $13.229 $12.182 $10.668 $10.604 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.132 $10.640 $10.593 $9.913 Accumulation Unit Value at end of period $13.154 $12.132 $10.640 $10.593 Number of Accumulation Units outstanding at end of period (in thousands) 350 358 284 75 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.132 $10.640 $10.593 $10.062 Accumulation Unit Value at end of period $13.154 $12.132 $10.640 $10.593 Number of Accumulation Units outstanding at end of period (in thousands) 350 358 284 75 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.082 $10.613 $10.581 $10.059 Accumulation Unit Value at end of period $13.081 $12.082 $10.613 $10.581 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.032 $10.585 $10.569 $10.056 Accumulation Unit Value at end of period $13.007 $12.032 $10.585 $10.569 Number of Accumulation Units outstanding at end of period (in thousands) 44 43 24 9 JPMORGAN INSURANCE TRUST DIVERSIFIED MID CAP GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.753 $11.605 $10.588 $9.930 Accumulation Unit Value at end of period $14.752 $12.753 $11.605 $10.588 Number of Accumulation Units outstanding at end of period (in thousands) 413 348 213 62 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.696 $11.576 $10.583 $9.691 Accumulation Unit Value at end of period $14.656 $12.696 $11.576 $10.583 Number of Accumulation Units outstanding at end of period (in thousands) 50 45 26 5 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.649 $11.544 $10.564 $9.924 Accumulation Unit Value at end of period $14.587 $12.649 $11.544 $10.564 Number of Accumulation Units outstanding at end of period (in thousands) 45 36 13 5 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.631 $11.534 $10.560 $9.923 Accumulation Unit Value at end of period $14.559 $12.631 $11.534 $10.560 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.579 $11.504 $10.548 $9.664 Accumulation Unit Value at end of period $14.477 $12.579 $11.504 $10.548 Number of Accumulation Units outstanding at end of period (in thousands) 477 500 369 93 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.579 $11.504 $10.548 $9.920 Accumulation Unit Value at end of period $14.477 $12.579 $11.504 $10.548 Number of Accumulation Units outstanding at end of period (in thousands) 477 500 369 93 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.527 $11.474 $10.537 $9.917 Accumulation Unit Value at end of period $14.396 $12.527 $11.474 $10.537 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.476 $11.444 $10.525 $9.914 Accumulation Unit Value at end of period $14.316 $12.476 $11.444 $10.525 Number of Accumulation Units outstanding at end of period (in thousands) 39 37 24 7
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST DIVERSIFIED MID CAP VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.665 $11.867 $10.959 $9.938 Accumulation Unit Value at end of period $13.606 $13.665 $11.867 $10.959 Number of Accumulation Units outstanding at end of period (in thousands) 310 291 237 62 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $22.155 $19.278 $17.839 $16.528 Accumulation Unit Value at end of period $22.015 $22.155 $19.278 $17.839 Number of Accumulation Units outstanding at end of period (in thousands) 28 29 22 3 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.553 $11.805 $10.934 $9.932 Accumulation Unit Value at end of period $13.453 $13.553 $11.805 $10.934 Number of Accumulation Units outstanding at end of period (in thousands) 31 31 17 5 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.534 $11.794 $10.930 $9.931 Accumulation Unit Value at end of period $13.428 $13.534 $11.794 $10.930 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.479 $11.763 $10.918 $10.120 Accumulation Unit Value at end of period $13.353 $13.479 $11.763 $10.918 Number of Accumulation Units outstanding at end of period (in thousands) 376 414 364 72 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.479 $11.763 $10.918 $9.928 Accumulation Unit Value at end of period $13.353 $13.479 $11.763 $10.918 Number of Accumulation Units outstanding at end of period (in thousands) 376 414 364 72 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.423 $11.732 $10.906 $9.925 Accumulation Unit Value at end of period $13.278 $13.423 $11.732 $10.906 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.368 $11.702 $10.893 $9.922 Accumulation Unit Value at end of period $13.203 $13.368 $11.702 $10.893 Number of Accumulation Units outstanding at end of period (in thousands) 31 33 32 7 JPMORGAN INSURANCE TRUST EQUITY INDEX PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.615 $11.079 $10.750 $10.085 Accumulation Unit Value at end of period $13.081 $12.615 $11.079 $10.750 Number of Accumulation Units outstanding at end of period (in thousands) 1,480 1,079 635 160 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.559 $11.051 $10.745 $10.021 Accumulation Unit Value at end of period $12.996 $12.559 $11.051 $10.745 Number of Accumulation Units outstanding at end of period (in thousands) 204 175 120 19 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.512 $11.021 $10.726 $10.079 Accumulation Unit Value at end of period $12.934 $12.512 $11.021 $10.726 Number of Accumulation Units outstanding at end of period (in thousands) 201 143 65 23 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.495 $11.011 $10.722 $10.078 Accumulation Unit Value at end of period $12.910 $12.495 $11.011 $10.722 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.443 $10.982 $10.710 $9.993 Accumulation Unit Value at end of period $12.838 $12.443 $10.982 $10.710 Number of Accumulation Units outstanding at end of period (in thousands) 1,252 1,199 978 261
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.443 $10.982 $10.710 $10.075 Accumulation Unit Value at end of period $12.838 $12.443 $10.982 $10.710 Number of Accumulation Units outstanding at end of period (in thousands) 1,252 1,199 978 261 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.392 $10.953 $10.698 $10.072 Accumulation Unit Value at end of period $12.766 $12.392 $10.953 $10.698 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.341 $10.925 $10.686 $10.069 Accumulation Unit Value at end of period $12.694 $12.341 $10.925 $10.686 Number of Accumulation Units outstanding at end of period (in thousands) 164 140 81 28 JPMORGAN INSURANCE TRUST GOVERNMENT BOND PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.457 $10.244 $10.072 $9.598 Accumulation Unit Value at end of period $11.090 $10.457 $10.244 $10.072 Number of Accumulation Units outstanding at end of period (in thousands) 933 610 337 91 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.410 $10.218 $10.067 $10.075 Accumulation Unit Value at end of period $11.018 $10.410 $10.218 $10.067 Number of Accumulation Units outstanding at end of period (in thousands) 112 90 69 5 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.371 $10.190 $10.050 $9.592 Accumulation Unit Value at end of period $10.966 $10.371 $10.190 $10.050 Number of Accumulation Units outstanding at end of period (in thousands) 129 58 26 9 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.357 $10.181 $10.046 $9.591 Accumulation Unit Value at end of period $10.945 $10.357 $10.181 $10.046 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.314 $10.154 $10.035 $10.048 Accumulation Unit Value at end of period $10.884 $10.314 $10.154 $10.035 Number of Accumulation Units outstanding at end of period (in thousands) 800 707 541 160 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.314 $10.154 $10.035 $9.588 Accumulation Unit Value at end of period $10.884 $10.314 $10.154 $10.035 Number of Accumulation Units outstanding at end of period (in thousands) 800 707 541 160 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.272 $10.128 $10.023 $9.585 Accumulation Unit Value at end of period $10.823 $10.272 $10.128 $10.023 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.230 $10.101 $10.012 $9.582 Accumulation Unit Value at end of period $10.762 $10.230 $10.101 $10.012 Number of Accumulation Units outstanding at end of period (in thousands) 71 54 31 7 JPMORGAN INSURANCE TRUST INTREPID GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.346 $10.913 $10.530 $10.084 Accumulation Unit Value at end of period $12.486 $11.346 $10.913 $10.530 Number of Accumulation Units outstanding at end of period (in thousands) 78 5 7 2 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.777 $16.170 $15.632 $14.511 Accumulation Unit Value at end of period $18.426 $16.777 $16.170 $15.632 Number of Accumulation Units outstanding at end of period (in thousands) 9 6 1 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 ------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.252 $10.856 $10.506 $10.078 Accumulation Unit Value at end of period $12.347 $11.252 $10.856 $10.506 Number of Accumulation Units outstanding at end of period (in thousands) 18 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.237 $10.847 $10.502 $10.077 Accumulation Unit Value at end of period $12.323 $11.237 $10.847 $10.502 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.191 $10.818 $10.490 $9.742 Accumulation Unit Value at end of period $12.254 $11.191 $10.818 $10.490 Number of Accumulation Units outstanding at end of period (in thousands) 36 9 4 7 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.191 $10.818 $10.490 $10.074 Accumulation Unit Value at end of period $12.254 $11.191 $10.818 $10.490 Number of Accumulation Units outstanding at end of period (in thousands) 36 9 4 7 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.145 $10.790 $10.478 $10.071 Accumulation Unit Value at end of period $12.185 $11.145 $10.790 $10.478 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.099 $10.762 $10.466 $10.068 Accumulation Unit Value at end of period $12.117 $11.099 $10.762 $10.466 Number of Accumulation Units outstanding at end of period (in thousands) 4 -- -- -- JPMORGAN INSURANCE TRUST INTREPID MID CAP PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.360 $12.755 $11.041 $9.960 Accumulation Unit Value at end of period $14.574 $14.360 $12.755 $11.041 Number of Accumulation Units outstanding at end of period (in thousands) 301 143 21 11 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $32.232 $28.686 $24.880 $22.477 Accumulation Unit Value at end of period $32.646 $32.232 $28.686 $24.880 Number of Accumulation Units outstanding at end of period (in thousands) 10 7 1 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.242 $12.688 $11.016 $9.954 Accumulation Unit Value at end of period $14.411 $14.242 $12.688 $11.016 Number of Accumulation Units outstanding at end of period (in thousands) 49 24 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.223 $12.677 $11.012 $9.953 Accumulation Unit Value at end of period $14.384 $14.223 $12.677 $11.012 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.164 $12.644 $10.999 $9.942 Accumulation Unit Value at end of period $14.303 $14.164 $12.644 $10.999 Number of Accumulation Units outstanding at end of period (in thousands) 337 216 34 5 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.164 $12.644 $10.999 $9.950 Accumulation Unit Value at end of period $14.303 $14.164 $12.644 $10.999 Number of Accumulation Units outstanding at end of period (in thousands) 337 216 34 5 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.106 $12.611 $10.987 $9.947 Accumulation Unit Value at end of period $14.223 $14.106 $12.611 $10.987 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.048 $12.577 $10.974 $9.944 Accumulation Unit Value at end of period $14.143 $14.048 $12.577 $10.974 Number of Accumulation Units outstanding at end of period (in thousands) 24 14 3 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST BALANCED PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.498 $10.501 $10.086 Accumulation Unit Value at end of period $12.040 $11.498 $10.501 Number of Accumulation Units outstanding at end of period (in thousands) 39 28 27 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.446 $10.475 $10.074 Accumulation Unit Value at end of period $11.962 $11.446 $10.475 Number of Accumulation Units outstanding at end of period (in thousands) 20 21 12 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.403 $10.446 $10.053 Accumulation Unit Value at end of period $11.905 $11.403 $10.446 Number of Accumulation Units outstanding at end of period (in thousands) 4 2 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.341 $10.410 $10.031 Accumulation Unit Value at end of period $11.816 $11.341 $10.410 Number of Accumulation Units outstanding at end of period (in thousands) 84 93 107 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.341 $10.410 $10.031 Accumulation Unit Value at end of period $11.816 $11.341 $10.410 Number of Accumulation Units outstanding at end of period (in thousands) 84 93 107 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.248 $10.355 $9.998 Accumulation Unit Value at end of period $11.684 $11.248 $10.355 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- JPMORGAN INSURANCE TRUST CORE BOND PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.410 $10.132 $10.070 Accumulation Unit Value at end of period $10.918 $10.410 $10.132 Number of Accumulation Units outstanding at end of period (in thousands) 2,382 1,524 824 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.638 $15.251 $15.177 Accumulation Unit Value at end of period $16.368 $15.638 $15.251 Number of Accumulation Units outstanding at end of period (in thousands) 196 144 91 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.324 $10.079 $10.037 Accumulation Unit Value at end of period $10.796 $10.324 $10.079 Number of Accumulation Units outstanding at end of period (in thousands) 303 190 80 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.268 $10.044 $10.015 Accumulation Unit Value at end of period $10.715 $10.268 $10.044 Number of Accumulation Units outstanding at end of period (in thousands) 2,025 1,733 1,328 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.268 $10.044 $10.015 Accumulation Unit Value at end of period $10.715 $10.268 $10.044 Number of Accumulation Units outstanding at end of period (in thousands) 2,025 1,733 1,328 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.183 $9.991 $9.982 Accumulation Unit Value at end of period $10.595 $10.183 $9.991 Number of Accumulation Units outstanding at end of period (in thousands) 232 169 99 JPMORGAN INSURANCE TRUST DIVERSIFIED EQUITY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.300 $10.734 $10.058 Accumulation Unit Value at end of period $13.403 $12.300 $10.734 Number of Accumulation Units outstanding at end of period (in thousands) 385 317 187
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.398 $16.962 $15.915 Accumulation Unit Value at end of period $21.095 $19.398 $16.962 Number of Accumulation Units outstanding at end of period (in thousands) 33 30 19 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.199 $10.678 $10.026 Accumulation Unit Value at end of period $13.253 $12.199 $10.678 Number of Accumulation Units outstanding at end of period (in thousands) 55 44 20 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.132 $10.640 $10.004 Accumulation Unit Value at end of period $13.154 $12.132 $10.640 Number of Accumulation Units outstanding at end of period (in thousands) 350 358 284 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.132 $10.640 $10.004 Accumulation Unit Value at end of period $13.154 $12.132 $10.640 Number of Accumulation Units outstanding at end of period (in thousands) 350 358 284 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.032 $10.585 $9.971 Accumulation Unit Value at end of period $13.007 $12.032 $10.585 Number of Accumulation Units outstanding at end of period (in thousands) 44 43 24 JPMORGAN INSURANCE TRUST DIVERSIFIED MID CAP GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.753 $11.605 $10.129 Accumulation Unit Value at end of period $14.752 $12.753 $11.605 Number of Accumulation Units outstanding at end of period (in thousands) 413 348 213 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.696 $11.576 $10.117 Accumulation Unit Value at end of period $14.656 $12.696 $11.576 Number of Accumulation Units outstanding at end of period (in thousands) 50 45 26 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.649 $11.544 $10.096 Accumulation Unit Value at end of period $14.587 $12.649 $11.544 Number of Accumulation Units outstanding at end of period (in thousands) 45 36 13 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.579 $11.504 $10.074 Accumulation Unit Value at end of period $14.477 $12.579 $11.504 Number of Accumulation Units outstanding at end of period (in thousands) 477 500 369 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.579 $11.504 $10.074 Accumulation Unit Value at end of period $14.477 $12.579 $11.504 Number of Accumulation Units outstanding at end of period (in thousands) 477 500 369 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.476 $11.444 $10.041 Accumulation Unit Value at end of period $14.316 $12.476 $11.444 Number of Accumulation Units outstanding at end of period (in thousands) 39 37 24 JPMORGAN INSURANCE TRUST DIVERSIFIED MID CAP VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.665 $11.867 $10.746 Accumulation Unit Value at end of period $13.606 $13.665 $11.867 Number of Accumulation Units outstanding at end of period (in thousands) 310 291 237 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $22.155 $19.278 $17.481 Accumulation Unit Value at end of period $22.015 $22.155 $19.278 Number of Accumulation Units outstanding at end of period (in thousands) 28 29 22
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.553 $11.805 $10.711 Accumulation Unit Value at end of period $13.453 $13.553 $11.805 Number of Accumulation Units outstanding at end of period (in thousands) 31 31 17 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.479 $11.763 $10.688 Accumulation Unit Value at end of period $13.353 $13.479 $11.763 Number of Accumulation Units outstanding at end of period (in thousands) 376 414 364 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.479 $11.763 $10.688 Accumulation Unit Value at end of period $13.353 $13.479 $11.763 Number of Accumulation Units outstanding at end of period (in thousands) 376 414 364 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.368 $11.702 $10.653 Accumulation Unit Value at end of period $13.203 $13.368 $11.702 Number of Accumulation Units outstanding at end of period (in thousands) 31 33 32 JPMORGAN INSURANCE TRUST EQUITY INDEX PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.615 $11.079 $10.309 Accumulation Unit Value at end of period $13.081 $12.615 $11.079 Number of Accumulation Units outstanding at end of period (in thousands) 1,480 1,079 635 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.559 $11.051 $10.296 Accumulation Unit Value at end of period $12.996 $12.559 $11.051 Number of Accumulation Units outstanding at end of period (in thousands) 204 175 120 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.512 $11.021 $10.275 Accumulation Unit Value at end of period $12.934 $12.512 $11.021 Number of Accumulation Units outstanding at end of period (in thousands) 201 143 65 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.443 $10.982 $10.253 Accumulation Unit Value at end of period $12.838 $12.443 $10.982 Number of Accumulation Units outstanding at end of period (in thousands) 1,252 1,199 978 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.443 $10.982 $10.253 Accumulation Unit Value at end of period $12.838 $12.443 $10.982 Number of Accumulation Units outstanding at end of period (in thousands) 1,252 1,199 978 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.341 $10.925 $10.219 Accumulation Unit Value at end of period $12.694 $12.341 $10.925 Number of Accumulation Units outstanding at end of period (in thousands) 164 140 81 JPMORGAN INSURANCE TRUST GOVERNMENT BOND PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.457 $10.244 $10.209 Accumulation Unit Value at end of period $11.090 $10.457 $10.244 Number of Accumulation Units outstanding at end of period (in thousands) 933 610 337 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.410 $10.218 $10.197 Accumulation Unit Value at end of period $11.018 $10.410 $10.218 Number of Accumulation Units outstanding at end of period (in thousands) 112 90 69 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.371 $10.190 $10.176 Accumulation Unit Value at end of period $10.966 $10.371 $10.190 Number of Accumulation Units outstanding at end of period (in thousands) 129 58 26
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.314 $10.154 $10.154 Accumulation Unit Value at end of period $10.884 $10.314 $10.154 Number of Accumulation Units outstanding at end of period (in thousands) 800 707 541 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.314 $10.154 $10.154 Accumulation Unit Value at end of period $10.884 $10.314 $10.154 Number of Accumulation Units outstanding at end of period (in thousands) 800 707 541 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.230 $10.101 $10.121 Accumulation Unit Value at end of period $10.762 $10.230 $10.101 Number of Accumulation Units outstanding at end of period (in thousands) 71 54 31 JPMORGAN INSURANCE TRUST INTREPID GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.346 $10.913 $9.663 Accumulation Unit Value at end of period $12.486 $11.346 $10.913 Number of Accumulation Units outstanding at end of period (in thousands) 78 5 7 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.777 $16.170 $14.336 Accumulation Unit Value at end of period $18.426 $16.777 $16.170 Number of Accumulation Units outstanding at end of period (in thousands) 9 6 1 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.252 $10.856 $9.632 Accumulation Unit Value at end of period $12.347 $11.252 $10.856 Number of Accumulation Units outstanding at end of period (in thousands) 18 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.191 $10.818 $9.611 Accumulation Unit Value at end of period $12.254 $11.191 $10.818 Number of Accumulation Units outstanding at end of period (in thousands) 36 9 4 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.191 $10.818 $9.611 Accumulation Unit Value at end of period $12.254 $11.191 $10.818 Number of Accumulation Units outstanding at end of period (in thousands) 36 9 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.099 $10.762 $9.579 Accumulation Unit Value at end of period $12.117 $11.099 $10.762 Number of Accumulation Units outstanding at end of period (in thousands) 4 -- -- JPMORGAN INSURANCE TRUST INTREPID MID CAP PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.360 $12.755 $10.877 Accumulation Unit Value at end of period $14.574 $14.360 $12.755 Number of Accumulation Units outstanding at end of period (in thousands) 301 143 21 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $32.232 $28.686 $24.495 Accumulation Unit Value at end of period $32.646 $32.232 $28.686 Number of Accumulation Units outstanding at end of period (in thousands) 10 7 1 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.242 $12.688 $10.842 Accumulation Unit Value at end of period $14.411 $14.242 $12.688 Number of Accumulation Units outstanding at end of period (in thousands) 49 24 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.164 $12.644 $10.818 Accumulation Unit Value at end of period $14.303 $14.164 $12.644 Number of Accumulation Units outstanding at end of period (in thousands) 337 216 34 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.164 $12.644 $10.818 Accumulation Unit Value at end of period $14.303 $14.164 $12.644 Number of Accumulation Units outstanding at end of period (in thousands) 337 216 34
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.048 $12.577 $10.783 Accumulation Unit Value at end of period $14.143 $14.048 $12.577 Number of Accumulation Units outstanding at end of period (in thousands) 24 14 3 STI CLASSIC VT LARGE CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.801 $1.571 $1.457 Accumulation Unit Value at end of period $1.791 $1.801 $1.571 Number of Accumulation Units outstanding at end of period (in thousands) 14 7 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.795 $1.569 $1.456 Accumulation Unit Value at end of period $1.781 $1.795 $1.569 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.791 $1.567 $1.456 Accumulation Unit Value at end of period $1.776 $1.791 $1.567 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.761 $15.571 $14.485 Accumulation Unit Value at end of period $17.573 $17.761 $15.571 Number of Accumulation Units outstanding at end of period (in thousands) -- 1 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $17.761 $15.571 $14.485 Accumulation Unit Value at end of period $17.573 $17.761 $15.571 Number of Accumulation Units outstanding at end of period (in thousands) -- 1 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.753 $1.542 $1.437 Accumulation Unit Value at end of period $1.730 $1.753 $1.542 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- STI CLASSIC VT LARGE CAP GROWTH STOCK FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.319 $1.207 $1.156 Accumulation Unit Value at end of period $1.501 $1.319 $1.207 Number of Accumulation Units outstanding at end of period (in thousands) 338 275 107 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.315 $1.205 $1.155 Accumulation Unit Value at end of period $1.492 $1.315 $1.205 Number of Accumulation Units outstanding at end of period (in thousands) 17 19 12 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.312 $1.204 $1.155 Accumulation Unit Value at end of period $1.488 $1.312 $1.204 Number of Accumulation Units outstanding at end of period (in thousands) 86 33 11 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.010 $11.958 $11.490 Accumulation Unit Value at end of period $14.723 $13.010 $11.958 Number of Accumulation Units outstanding at end of period (in thousands) 16 14 6 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.010 $11.958 $11.490 Accumulation Unit Value at end of period $14.723 $13.010 $11.958 Number of Accumulation Units outstanding at end of period (in thousands) 16 14 6 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.284 $1.184 $1.140 Accumulation Unit Value at end of period $1.449 $1.284 $1.184 Number of Accumulation Units outstanding at end of period (in thousands) 29 29 18
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- STI CLASSIC VT LARGE CAP VALUE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.822 $1.508 $1.437 Accumulation Unit Value at end of period $1.862 $1.822 $1.508 Number of Accumulation Units outstanding at end of period (in thousands) 319 175 54 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.816 $1.506 $1.436 Accumulation Unit Value at end of period $1.851 $1.816 $1.506 Number of Accumulation Units outstanding at end of period (in thousands) 7 8 5 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.812 $1.505 $1.436 Accumulation Unit Value at end of period $1.846 $1.812 $1.505 Number of Accumulation Units outstanding at end of period (in thousands) 93 25 6 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.968 $14.946 $14.286 Accumulation Unit Value at end of period $18.266 $17.968 $14.946 Number of Accumulation Units outstanding at end of period (in thousands) 12 9 4 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $17.968 $14.946 $14.286 Accumulation Unit Value at end of period $18.266 $17.968 $14.946 Number of Accumulation Units outstanding at end of period (in thousands) 12 9 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.774 $1.480 $1.417 Accumulation Unit Value at end of period $1.798 $1.774 $1.480 Number of Accumulation Units outstanding at end of period (in thousands) 16 13 8 STI CLASSIC VT MID-CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.818 $1.664 $1.453 Accumulation Unit Value at end of period $1.886 $1.818 $1.664 Number of Accumulation Units outstanding at end of period (in thousands) 7 5 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.811 $1.661 $1.452 Accumulation Unit Value at end of period $1.876 $1.811 $1.661 Number of Accumulation Units outstanding at end of period (in thousands) 5 5 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.808 $1.660 $1.452 Accumulation Unit Value at end of period $1.870 $1.808 $1.660 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.924 $16.491 $14.446 Accumulation Unit Value at end of period $18.507 $17.924 $16.491 Number of Accumulation Units outstanding at end of period (in thousands) 2 3 2 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $17.924 $16.491 $14.446 Accumulation Unit Value at end of period $18.507 $17.924 $16.491 Number of Accumulation Units outstanding at end of period (in thousands) 2 3 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.770 $1.633 $1.433 Accumulation Unit Value at end of period $1.822 $1.770 $1.633 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- EVERGREEN VA BALANCED FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.050 $0.968 $0.908 Accumulation Unit Value at end of period $1.105 $1.050 $0.968 Number of Accumulation Units outstanding at end of period (in thousands) 48 29 5
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.046 $0.967 $0.908 Accumulation Unit Value at end of period $1.098 $1.046 $0.967 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.020 $0.944 $0.887 Accumulation Unit Value at end of period $1.070 $1.020 $0.944 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.040 $0.964 $0.908 Accumulation Unit Value at end of period $1.089 $1.040 $0.964 Number of Accumulation Units outstanding at end of period (in thousands) 53 62 4 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.040 $0.964 $0.908 Accumulation Unit Value at end of period $1.089 $1.040 $0.964 Number of Accumulation Units outstanding at end of period (in thousands) 53 62 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.994 $0.924 $0.871 Accumulation Unit Value at end of period $1.038 $0.994 $0.924 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.364 $1.227 $1.119 Accumulation Unit Value at end of period $1.457 $1.364 $1.227 Number of Accumulation Units outstanding at end of period (in thousands) 22 32 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.359 $1.225 $1.118 Accumulation Unit Value at end of period $1.449 $1.359 $1.225 Number of Accumulation Units outstanding at end of period (in thousands) 3 3 3 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.350 $1.218 $1.113 Accumulation Unit Value at end of period $1.438 $1.350 $1.218 Number of Accumulation Units outstanding at end of period (in thousands) 92 84 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.351 $1.222 $1.118 Accumulation Unit Value at end of period $1.437 $1.351 $1.222 Number of Accumulation Units outstanding at end of period (in thousands) 38 59 18 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.351 $1.222 $1.118 Accumulation Unit Value at end of period $1.437 $1.351 $1.222 Number of Accumulation Units outstanding at end of period (in thousands) 38 59 18 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.330 $1.206 $1.105 Accumulation Unit Value at end of period $1.409 $1.330 $1.206 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- EVERGREEN VA GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.436 $1.310 $1.125 Accumulation Unit Value at end of period $1.573 $1.436 $1.310 Number of Accumulation Units outstanding at end of period (in thousands) 254 150 39 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.430 $1.308 $1.125 Accumulation Unit Value at end of period $1.564 $1.430 $1.308 Number of Accumulation Units outstanding at end of period (in thousands) 106 35 23 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.020 $0.934 $0.803 Accumulation Unit Value at end of period $1.114 $1.020 $0.934 Number of Accumulation Units outstanding at end of period (in thousands) 39 31 12
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.422 $1.305 $1.124 Accumulation Unit Value at end of period $1.551 $1.422 $1.305 Number of Accumulation Units outstanding at end of period (in thousands) 204 200 116 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.422 $1.305 $1.124 Accumulation Unit Value at end of period $1.551 $1.422 $1.305 Number of Accumulation Units outstanding at end of period (in thousands) 204 200 116 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.994 $0.914 $0.789 Accumulation Unit Value at end of period $1.080 $0.994 $0.914 Number of Accumulation Units outstanding at end of period (in thousands) 11 16 8 EVERGREEN VA INTERNATIONAL EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.003 $1.649 $1.414 Accumulation Unit Value at end of period $2.273 $2.003 $1.649 Number of Accumulation Units outstanding at end of period (in thousands) 175 116 16 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.996 $1.646 $1.414 Accumulation Unit Value at end of period $2.260 $1.996 $1.646 Number of Accumulation Units outstanding at end of period (in thousands) 26 20 14 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.220 $1.007 $0.866 Accumulation Unit Value at end of period $1.381 $1.220 $1.007 Number of Accumulation Units outstanding at end of period (in thousands) 47 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.985 $1.642 $1.413 Accumulation Unit Value at end of period $2.241 $1.985 $1.642 Number of Accumulation Units outstanding at end of period (in thousands) 163 92 36 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.985 $1.642 $1.413 Accumulation Unit Value at end of period $2.241 $1.985 $1.642 Number of Accumulation Units outstanding at end of period (in thousands) 163 92 36 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.189 $0.987 $0.851 Accumulation Unit Value at end of period $1.339 $1.189 $0.987 Number of Accumulation Units outstanding at end of period (in thousands) 8 5 6 EVERGREEN VA OMEGA FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $0.851 $0.813 $0.721 Accumulation Unit Value at end of period $0.939 $0.851 $0.813 Number of Accumulation Units outstanding at end of period (in thousands) 128 27 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $0.847 $0.812 $0.721 Accumulation Unit Value at end of period $0.934 $0.847 $0.812 Number of Accumulation Units outstanding at end of period (in thousands) 21 21 7 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $0.652 $0.625 $0.556 Accumulation Unit Value at end of period $0.718 $0.652 $0.625 Number of Accumulation Units outstanding at end of period (in thousands) 59 59 50 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $0.843 $0.810 $0.721 Accumulation Unit Value at end of period $0.926 $0.843 $0.810 Number of Accumulation Units outstanding at end of period (in thousands) 3 3 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.843 $0.810 $0.721 Accumulation Unit Value at end of period $0.926 $0.843 $0.810 Number of Accumulation Units outstanding at end of period (in thousands) 3 3 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.635 $0.612 $0.546 Accumulation Unit Value at end of period $0.696 $0.635 $0.612 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- EVERGREEN VA SPECIAL VALUES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.140 $1.785 $1.555 Accumulation Unit Value at end of period $1.953 $2.140 $1.785 Number of Accumulation Units outstanding at end of period (in thousands) 1,649 1,123 260 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.132 $1.782 $1.554 Accumulation Unit Value at end of period $1.942 $2.132 $1.782 Number of Accumulation Units outstanding at end of period (in thousands) 306 233 144 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.633 $1.366 $1.192 Accumulation Unit Value at end of period $1.485 $1.633 $1.366 Number of Accumulation Units outstanding at end of period (in thousands) 294 170 36 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.121 $1.777 $1.553 Accumulation Unit Value at end of period $1.925 $2.121 $1.777 Number of Accumulation Units outstanding at end of period (in thousands) 1,503 1,475 861 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.121 $1.777 $1.553 Accumulation Unit Value at end of period $1.925 $2.121 $1.777 Number of Accumulation Units outstanding at end of period (in thousands) 1,503 1,475 861 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.597 $1.342 $1.175 Accumulation Unit Value at end of period $1.445 $1.597 $1.342 Number of Accumulation Units outstanding at end of period (in thousands) 87 89 77 HUNTINGTON VA DIVIDEND CAPTURE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.596 $1.387 $1.331 Accumulation Unit Value at end of period $1.478 $1.596 $1.387 Number of Accumulation Units outstanding at end of period (in thousands) 1,248 398 76 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.590 $1.385 $1.331 Accumulation Unit Value at end of period $1.469 $1.590 $1.385 Number of Accumulation Units outstanding at end of period (in thousands) 142 81 1 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.596 $1.392 $1.338 Accumulation Unit Value at end of period $1.474 $1.596 $1.392 Number of Accumulation Units outstanding at end of period (in thousands) 387 33 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.822 $13.825 $13.312 Accumulation Unit Value at end of period $14.580 $15.822 $13.825 Number of Accumulation Units outstanding at end of period (in thousands) 81 64 17 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.822 $13.825 $13.312 Accumulation Unit Value at end of period $14.580 $15.822 $13.825 Number of Accumulation Units outstanding at end of period (in thousands) 81 64 17 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.562 $1.369 $1.321 Accumulation Unit Value at end of period $1.435 $1.562 $1.369 Number of Accumulation Units outstanding at end of period (in thousands) 142 1 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- HUNTINGTON VA GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $0.905 $0.851 $0.821 Accumulation Unit Value at end of period $1.024 $0.905 $0.851 Number of Accumulation Units outstanding at end of period (in thousands) 837 134 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $0.902 $0.850 $0.821 Accumulation Unit Value at end of period $1.018 $0.902 $0.850 Number of Accumulation Units outstanding at end of period (in thousands) 81 87 46 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.278 $1.206 $1.166 Accumulation Unit Value at end of period $1.442 $1.278 $1.206 Number of Accumulation Units outstanding at end of period (in thousands) 27 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.673 $11.980 $11.598 Accumulation Unit Value at end of period $14.270 $12.673 $11.980 Number of Accumulation Units outstanding at end of period (in thousands) 7 2 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.673 $11.980 $11.598 Accumulation Unit Value at end of period $14.270 $12.673 $11.980 Number of Accumulation Units outstanding at end of period (in thousands) 7 2 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.251 $1.186 $1.151 Accumulation Unit Value at end of period $1.405 $1.251 $1.186 Number of Accumulation Units outstanding at end of period (in thousands) 25 7 -- HUNTINGTON VA INCOME EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.378 $1.240 $1.200 Accumulation Unit Value at end of period $1.372 $1.378 $1.240 Number of Accumulation Units outstanding at end of period (in thousands) 588 172 16 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.373 $1.238 $1.199 Accumulation Unit Value at end of period $1.364 $1.373 $1.238 Number of Accumulation Units outstanding at end of period (in thousands) 35 31 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.487 $1.343 $1.301 Accumulation Unit Value at end of period $1.477 $1.487 $1.343 Number of Accumulation Units outstanding at end of period (in thousands) 29 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.745 $13.341 $12.946 Accumulation Unit Value at end of period $14.611 $14.745 $13.341 Number of Accumulation Units outstanding at end of period (in thousands) 21 16 4 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.745 $13.341 $12.946 Accumulation Unit Value at end of period $14.611 $14.745 $13.341 Number of Accumulation Units outstanding at end of period (in thousands) 21 16 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.456 $1.321 $1.284 Accumulation Unit Value at end of period $1.438 $1.456 $1.321 Number of Accumulation Units outstanding at end of period (in thousands) 19 4 -- HUNTINGTON VA INTERNATIONAL EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.430 $11.630 $10.097 Accumulation Unit Value at end of period $16.198 $14.430 $11.630 Number of Accumulation Units outstanding at end of period (in thousands) 102 38 1
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.385 $11.617 $10.095 Accumulation Unit Value at end of period $16.115 $14.385 $11.617 Number of Accumulation Units outstanding at end of period (in thousands) 6 3 1 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.362 $11.610 $10.094 Accumulation Unit Value at end of period $16.073 $14.362 $11.610 Number of Accumulation Units outstanding at end of period (in thousands) 33 5 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.567 $1.270 $1.105 Accumulation Unit Value at end of period $1.751 $1.567 $1.270 Number of Accumulation Units outstanding at end of period (in thousands) 282 172 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.567 $1.270 $1.105 Accumulation Unit Value at end of period $1.751 $1.567 $1.270 Number of Accumulation Units outstanding at end of period (in thousands) 282 172 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.249 $11.576 $10.089 Accumulation Unit Value at end of period $15.867 $14.249 $11.576 Number of Accumulation Units outstanding at end of period (in thousands) 14 -- -- HUNTINGTON VA MACRO 100 FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.156 $1.092 $0.958 Accumulation Unit Value at end of period $1.108 $1.156 $1.092 Number of Accumulation Units outstanding at end of period (in thousands) 578 267 38 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.152 $1.090 $0.957 Accumulation Unit Value at end of period $1.102 $1.152 $1.090 Number of Accumulation Units outstanding at end of period (in thousands) 37 1 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.147 $1.087 $0.955 Accumulation Unit Value at end of period $1.097 $1.147 $1.087 Number of Accumulation Units outstanding at end of period (in thousands) 43 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.141 $1.084 $0.954 Accumulation Unit Value at end of period $1.089 $1.141 $1.084 Number of Accumulation Units outstanding at end of period (in thousands) 172 165 5 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.141 $1.084 $0.954 Accumulation Unit Value at end of period $1.089 $1.141 $1.084 Number of Accumulation Units outstanding at end of period (in thousands) 172 165 5 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.133 $1.079 $0.951 Accumulation Unit Value at end of period $1.078 $1.133 $1.079 Number of Accumulation Units outstanding at end of period (in thousands) 20 1 -- HUNTINGTON VA MID CORP AMERICA FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.660 $1.569 $1.374 Accumulation Unit Value at end of period $1.781 $1.660 $1.569 Number of Accumulation Units outstanding at end of period (in thousands) 601 302 54 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.654 $1.567 $1.373 Accumulation Unit Value at end of period $1.771 $1.654 $1.567 Number of Accumulation Units outstanding at end of period (in thousands) 61 70 23 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.739 $1.648 $1.446 Accumulation Unit Value at end of period $1.860 $1.739 $1.648 Number of Accumulation Units outstanding at end of period (in thousands) 63 34 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.238 $16.375 $14.382 Accumulation Unit Value at end of period $18.403 $17.238 $16.375 Number of Accumulation Units outstanding at end of period (in thousands) 33 29 6 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $17.238 $16.375 $14.382 Accumulation Unit Value at end of period $18.403 $17.238 $16.375 Number of Accumulation Units outstanding at end of period (in thousands) 33 29 6 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.702 $1.621 $1.427 Accumulation Unit Value at end of period $1.811 $1.702 $1.621 Number of Accumulation Units outstanding at end of period (in thousands) 90 35 -- HUNTINGTON VA MORTGAGE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.455 $10.007 $10.034 Accumulation Unit Value at end of period $10.720 $10.455 $10.007 Number of Accumulation Units outstanding at end of period (in thousands) 91 28 2 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.422 $9.996 $10.032 Accumulation Unit Value at end of period $10.665 $10.422 $9.996 Number of Accumulation Units outstanding at end of period (in thousands) 10 5 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.405 $9.990 $10.031 Accumulation Unit Value at end of period $10.637 $10.405 $9.990 Number of Accumulation Units outstanding at end of period (in thousands) 3 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.074 $1.034 $1.039 Accumulation Unit Value at end of period $1.096 $1.074 $1.034 Number of Accumulation Units outstanding at end of period (in thousands) 225 148 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.074 $1.034 $1.039 Accumulation Unit Value at end of period $1.096 $1.074 $1.034 Number of Accumulation Units outstanding at end of period (in thousands) 225 148 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.323 $9.961 $10.026 Accumulation Unit Value at end of period $10.500 $10.323 $9.961 Number of Accumulation Units outstanding at end of period (in thousands) 5 3 -- HUNTINGTON VA NEW ECONOMY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.716 $1.577 $1.360 Accumulation Unit Value at end of period $1.905 $1.716 $1.577 Number of Accumulation Units outstanding at end of period (in thousands) 829 370 58 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.710 $1.575 $1.360 Accumulation Unit Value at end of period $1.894 $1.710 $1.575 Number of Accumulation Units outstanding at end of period (in thousands) 60 60 9 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.826 $1.683 $1.455 Accumulation Unit Value at end of period $2.020 $1.826 $1.683 Number of Accumulation Units outstanding at end of period (in thousands) 57 11 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $18.102 $16.721 $14.471 Accumulation Unit Value at end of period $19.992 $18.102 $16.721 Number of Accumulation Units outstanding at end of period (in thousands) 26 19 4 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $18.102 $16.721 $14.471 Accumulation Unit Value at end of period $19.992 $18.102 $16.721 Number of Accumulation Units outstanding at end of period (in thousands) 26 19 4
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.787 $1.656 $1.436 Accumulation Unit Value at end of period $1.968 $1.787 $1.656 Number of Accumulation Units outstanding at end of period (in thousands) 7 33 -- HUNTINGTON VA ROTATING MARKETS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.510 $1.279 $1.129 Accumulation Unit Value at end of period $1.625 $1.510 $1.279 Number of Accumulation Units outstanding at end of period (in thousands) 286 85 5 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.504 $1.277 $1.128 Accumulation Unit Value at end of period $1.616 $1.504 $1.277 Number of Accumulation Units outstanding at end of period (in thousands) 30 28 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.764 $1.500 $1.326 Accumulation Unit Value at end of period $1.894 $1.764 $1.500 Number of Accumulation Units outstanding at end of period (in thousands) 9 2 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.493 $14.898 $13.186 Accumulation Unit Value at end of period $18.737 $17.493 $14.898 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $17.493 $14.898 $13.186 Accumulation Unit Value at end of period $18.737 $17.493 $14.898 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.727 $1.475 $1.308 Accumulation Unit Value at end of period $1.844 $1.727 $1.475 Number of Accumulation Units outstanding at end of period (in thousands) 61 35 -- HUNTINGTON VA SITUS SMALL CAP FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.349 $1.304 $1.086 Accumulation Unit Value at end of period $1.482 $1.349 $1.304 Number of Accumulation Units outstanding at end of period (in thousands) 867 427 40 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.344 $1.302 $1.086 Accumulation Unit Value at end of period $1.474 $1.344 $1.302 Number of Accumulation Units outstanding at end of period (in thousands) 98 96 14 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.339 $1.298 $1.084 Accumulation Unit Value at end of period $1.467 $1.339 $1.298 Number of Accumulation Units outstanding at end of period (in thousands) 101 47 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.332 $1.294 $1.082 Accumulation Unit Value at end of period $1.456 $1.332 $1.294 Number of Accumulation Units outstanding at end of period (in thousands) 465 405 105 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.332 $1.294 $1.082 Accumulation Unit Value at end of period $1.456 $1.332 $1.294 Number of Accumulation Units outstanding at end of period (in thousands) 465 405 105 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.322 $1.289 $1.079 Accumulation Unit Value at end of period $1.441 $1.322 $1.289 Number of Accumulation Units outstanding at end of period (in thousands) 110 44 --
84 ------------------------------------------------------------------------------- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY: SERIES II/IIR
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- AIM V.I. BASIC VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.515 $1.357 $1.301 $1.187 $1.017 Accumulation Unit Value at end of period $1.518 $1.515 $1.357 $1.301 $1.187 Number of Accumulation Units outstanding at end of period (in thousands) 6,608 6,195 4,992 4,739 1,547 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.498 $1.344 $1.291 $1.190 -- Accumulation Unit Value at end of period $1.498 $1.498 $1.344 $1.291 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,542 1,659 1,662 1,916 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.490 $1.338 $1.287 $1.178 $1.011 Accumulation Unit Value at end of period $1.489 $1.490 $1.338 $1.287 $1.178 Number of Accumulation Units outstanding at end of period (in thousands) 8,743 10,297 11,385 13,222 11,005 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.486 $1.335 $1.285 $1.176 $1.011 Accumulation Unit Value at end of period $1.484 $1.486 $1.335 $1.285 $1.176 Number of Accumulation Units outstanding at end of period (in thousands) 23,789 25,947 26,828 30,328 25,644 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.475 $1.327 $1.278 $1.179 -- Accumulation Unit Value at end of period $1.470 $1.475 $1.327 $1.278 -- Number of Accumulation Units outstanding at end of period (in thousands) 11,052 13,253 14,110 12,119 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.475 $1.327 $1.278 $1.188 -- Accumulation Unit Value at end of period $1.470 $1.475 $1.327 $1.278 -- Number of Accumulation Units outstanding at end of period (in thousands) 11,052 13,253 14,110 12,119 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.463 $1.318 $1.272 $1.168 $1.005 Accumulation Unit Value at end of period $1.456 $1.463 $1.318 $1.272 $1.168 Number of Accumulation Units outstanding at end of period (in thousands) 16,250 20,671 24,221 28,262 24,695 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.453 $1.312 $1.268 $1.181 -- Accumulation Unit Value at end of period $1.444 $1.453 $1.312 $1.268 -- Number of Accumulation Units outstanding at end of period (in thousands) 8,096 8,457 10,129 8,833 -- AIM V.I. CAPITAL APPRECIATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.419 $1.353 $1.260 $1.198 $1.022 Accumulation Unit Value at end of period $1.568 $1.419 $1.353 $1.260 $1.198 Number of Accumulation Units outstanding at end of period (in thousands) 2,809 2,651 789 630 268 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.403 $1.341 $1.251 $1.167 -- Accumulation Unit Value at end of period $1.547 $1.403 $1.341 $1.251 -- Number of Accumulation Units outstanding at end of period (in thousands) 632 939 402 353 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.396 $1.335 $1.247 $1.189 $1.016 Accumulation Unit Value at end of period $1.538 $1.396 $1.335 $1.247 $1.189 Number of Accumulation Units outstanding at end of period (in thousands) 4,548 5,294 2,155 2,355 2,010 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.392 $1.332 $1.245 $1.187 $1.016 Accumulation Unit Value at end of period $1.533 $1.392 $1.332 $1.245 $1.187 Number of Accumulation Units outstanding at end of period (in thousands) 9,278 10,175 4,360 4,435 3,869 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.381 $1.323 $1.239 $1.156 -- Accumulation Unit Value at end of period $1.519 $1.381 $1.323 $1.239 -- Number of Accumulation Units outstanding at end of period (in thousands) 7,718 8,382 2,645 2,461 --
85 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.381 $1.323 $1.239 $1.203 -- Accumulation Unit Value at end of period $1.519 $1.381 $1.323 $1.239 -- Number of Accumulation Units outstanding at end of period (in thousands) 7,718 8,382 2,645 2,461 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.370 $1.315 $1.233 $1.179 $1.010 Accumulation Unit Value at end of period $1.504 $1.370 $1.315 $1.233 $1.179 Number of Accumulation Units outstanding at end of period (in thousands) 7,011 9,258 4,182 4,875 4,862 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.361 $1.308 $1.228 $1.196 -- Accumulation Unit Value at end of period $1.492 $1.361 $1.308 $1.228 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,914 4,407 1,710 1,509 -- AIM V.I. CAPITAL DEVELOPMENT FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.553 -- -- -- -- (a) Accumulation Unit Value at end of period $9.789 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.550 -- -- -- -- (a) Accumulation Unit Value at end of period $9.784 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.549 -- -- -- -- (a) Accumulation Unit Value at end of period $9.781 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.548 -- -- -- -- (a) Accumulation Unit Value at end of period $9.780 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1 -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.546 -- -- -- -- (a) Accumulation Unit Value at end of period $9.775 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.546 -- -- -- -- (a) Accumulation Unit Value at end of period $9.775 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.544 -- -- -- -- (a) Accumulation Unit Value at end of period $9.771 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.542 -- -- -- -- (a) Accumulation Unit Value at end of period $9.767 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- AIM V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.863 $10.303 $9.632 -- -- Accumulation Unit Value at end of period $12.654 $11.863 $10.303 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2,217 2,337 10 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.819 $10.286 $9.628 -- -- Accumulation Unit Value at end of period $12.582 $11.819 $10.286 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 497 524 1 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.798 $10.277 $9.627 -- -- Accumulation Unit Value at end of period $12.547 $11.798 $10.277 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,396 1,557 5 -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.787 $10.273 $9.626 -- -- Accumulation Unit Value at end of period $12.529 $11.787 $10.273 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3,609 4,021 10 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.754 $10.260 $9.623 -- -- Accumulation Unit Value at end of period $12.476 $11.754 $10.260 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3,648 4,063 35 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.754 $10.260 $9.623 -- -- Accumulation Unit Value at end of period $12.476 $11.754 $10.260 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3,648 4,063 35 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.722 $10.247 $9.621 -- -- Accumulation Unit Value at end of period $12.423 $11.722 $10.247 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,743 2,055 1 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.690 $10.234 $9.618 -- -- Accumulation Unit Value at end of period $12.370 $11.690 $10.234 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2,511 2,770 4 -- -- AIM V.I. GOVERNMENT SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $1.095 $1.092 $1.079 $1.094 Accumulation Unit Value at end of period $1.174 $1.119 $1.095 $1.092 $1.079 Number of Accumulation Units outstanding at end of period (in thousands) 73,021 44,385 23,647 10,436 1,425 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.106 $1.085 $1.084 $1.085 -- Accumulation Unit Value at end of period $1.158 $1.106 $1.085 $1.084 -- Number of Accumulation Units outstanding at end of period (in thousands) 11,962 9,739 7,203 3,680 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.100 $1.080 $1.080 $1.071 $1.088 Accumulation Unit Value at end of period $1.151 $1.100 $1.080 $1.080 $1.071 Number of Accumulation Units outstanding at end of period (in thousands) 32,443 26,808 26,304 22,799 20,695 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.098 $1.078 $1.079 $1.070 $1.087 Accumulation Unit Value at end of period $1.147 $1.098 $1.078 $1.079 $1.070 Number of Accumulation Units outstanding at end of period (in thousands) 133,743 90,282 59,642 44,900 31,448 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.089 $1.071 $1.073 $1.075 -- Accumulation Unit Value at end of period $1.137 $1.089 $1.071 $1.073 -- Number of Accumulation Units outstanding at end of period (in thousands) 71,648 58,221 48,350 27,054 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.089 $1.071 $1.073 $1.070 -- Accumulation Unit Value at end of period $1.137 $1.089 $1.071 $1.073 -- Number of Accumulation Units outstanding at end of period (in thousands) 71,648 58,221 48,350 27,054 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.080 $1.064 $1.068 $1.062 $1.081 Accumulation Unit Value at end of period $1.126 $1.080 $1.064 $1.068 $1.062 Number of Accumulation Units outstanding at end of period (in thousands) 40,866 35,410 35,306 34,941 34,186 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.073 $1.059 $1.064 $1.064 -- Accumulation Unit Value at end of period $1.117 $1.073 $1.059 $1.064 -- Number of Accumulation Units outstanding at end of period (in thousands) 42,275 37,566 37,527 26,008 -- AIM V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.102 $1.662 $1.428 $1.167 $0.970 Accumulation Unit Value at end of period $2.379 $2.102 $1.662 $1.428 $1.167 Number of Accumulation Units outstanding at end of period (in thousands) 12,825 3,283 1,186 504 43
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.079 $1.646 $1.418 $1.283 -- Accumulation Unit Value at end of period $2.348 $2.079 $1.646 $1.418 -- Number of Accumulation Units outstanding at end of period (in thousands) 816 499 396 87 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $2.068 $1.639 $1.413 $1.159 $0.964 Accumulation Unit Value at end of period $2.333 $2.068 $1.639 $1.413 $1.159 Number of Accumulation Units outstanding at end of period (in thousands) 4,698 3,146 2,228 1,133 342 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $2.062 $1.636 $1.411 $1.157 $0.964 Accumulation Unit Value at end of period $2.326 $2.062 $1.636 $1.411 $1.157 Number of Accumulation Units outstanding at end of period (in thousands) 24,642 8,925 3,337 2,059 1,233 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.046 $1.625 $1.404 $1.271 -- Accumulation Unit Value at end of period $2.304 $2.046 $1.625 $1.404 -- Number of Accumulation Units outstanding at end of period (in thousands) 9,741 5,735 3,816 1,528 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.046 $1.625 $1.404 $1.188 -- Accumulation Unit Value at end of period $2.304 $2.046 $1.625 $1.404 -- Number of Accumulation Units outstanding at end of period (in thousands) 9,741 5,735 3,816 1,528 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $2.030 $1.615 $1.397 $1.149 $0.959 Accumulation Unit Value at end of period $2.283 $2.030 $1.615 $1.397 $1.149 Number of Accumulation Units outstanding at end of period (in thousands) 7,667 4,199 3,647 1,991 1,318 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.016 $1.607 $1.392 $1.181 -- Accumulation Unit Value at end of period $2.264 $2.016 $1.607 $1.392 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,062 2,836 2,195 1,002 -- AIM V.I. LARGE CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.474 $10.764 $9.456 -- -- Accumulation Unit Value at end of period $13.091 $11.474 $10.764 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 198 166 2 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.432 $10.746 $9.453 -- -- Accumulation Unit Value at end of period $13.017 $11.432 $10.746 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 78 58 2 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.411 $10.737 $9.451 -- -- Accumulation Unit Value at end of period $12.980 $11.411 $10.737 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 263 283 2 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.401 $10.732 $9.450 -- -- Accumulation Unit Value at end of period $12.962 $11.401 $10.732 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 680 551 17 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.369 $10.719 $9.448 -- -- Accumulation Unit Value at end of period $12.907 $11.369 $10.719 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 290 286 38 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.369 $10.719 $9.448 -- -- Accumulation Unit Value at end of period $12.907 $11.369 $10.719 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 290 286 38 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.338 $10.705 $9.445 -- -- Accumulation Unit Value at end of period $12.852 $11.338 $10.705 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 518 559 1 -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.307 $10.692 $9.443 -- -- Accumulation Unit Value at end of period $12.797 $11.307 $10.692 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 266 210 7 -- -- AIM V.I. MID CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.663 $1.515 $1.427 $1.271 $1.111 Accumulation Unit Value at end of period $1.797 $1.663 $1.515 $1.427 $1.271 Number of Accumulation Units outstanding at end of period (in thousands) 11,271 8,186 6,356 3,972 1,441 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.644 $1.501 $1.417 $1.333 -- Accumulation Unit Value at end of period $1.773 $1.644 $1.501 $1.417 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,701 2,769 2,995 2,518 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.635 $1.495 $1.412 $1.261 $1.104 Accumulation Unit Value at end of period $1.762 $1.635 $1.495 $1.412 $1.261 Number of Accumulation Units outstanding at end of period (in thousands) 12,288 13,389 14,960 14,319 11,083 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.631 $1.491 $1.410 $1.260 $1.103 Accumulation Unit Value at end of period $1.757 $1.631 $1.491 $1.410 $1.260 Number of Accumulation Units outstanding at end of period (in thousands) 31,745 30,309 28,216 26,952 19,586 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.618 $1.482 $1.403 $1.320 -- Accumulation Unit Value at end of period $1.740 $1.618 $1.482 $1.403 -- Number of Accumulation Units outstanding at end of period (in thousands) 15,280 14,353 15,511 11,541 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.618 $1.482 $1.403 $1.278 -- Accumulation Unit Value at end of period $1.740 $1.618 $1.482 $1.403 -- Number of Accumulation Units outstanding at end of period (in thousands) 15,280 14,353 15,511 11,541 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.606 $1.472 $1.396 $1.251 $1.097 Accumulation Unit Value at end of period $1.724 $1.606 $1.472 $1.396 $1.251 Number of Accumulation Units outstanding at end of period (in thousands) 18,871 21,534 24,851 26,309 22,447 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.595 $1.465 $1.391 $1.271 -- Accumulation Unit Value at end of period $1.710 $1.595 $1.465 $1.391 -- Number of Accumulation Units outstanding at end of period (in thousands) 9,600 9,932 11,800 8,936 -- AIM V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.394 $12.423 $11.647 $10.790 $10.288 Accumulation Unit Value at end of period $14.937 $14.394 $12.423 $11.647 $10.790 Number of Accumulation Units outstanding at end of period (in thousands) 837 358 102 42 1 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.302 $12.368 $11.619 $10.731 -- Accumulation Unit Value at end of period $14.812 $14.302 $12.368 $11.619 -- Number of Accumulation Units outstanding at end of period (in thousands) 67 53 22 7 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.256 $12.341 $11.605 $10.783 $10.286 Accumulation Unit Value at end of period $14.750 $14.256 $12.341 $11.605 $10.783 Number of Accumulation Units outstanding at end of period (in thousands) 414 327 123 78 6 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.233 $12.327 $11.598 $10.782 $10.286 Accumulation Unit Value at end of period $14.719 $14.233 $12.327 $11.598 $10.782 Number of Accumulation Units outstanding at end of period (in thousands) 1,626 629 224 167 27 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.165 $12.287 $11.577 $10.697 -- Accumulation Unit Value at end of period $14.626 $14.165 $12.287 $11.577 -- Number of Accumulation Units outstanding at end of period (in thousands) 909 610 313 207 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.165 $12.287 $11.577 $11.064 -- Accumulation Unit Value at end of period $14.626 $14.165 $12.287 $11.577 -- Number of Accumulation Units outstanding at end of period (in thousands) 909 610 313 207 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.097 $12.246 $11.556 $10.775 $10.284 Accumulation Unit Value at end of period $14.534 $14.097 $12.246 $11.556 $10.775 Number of Accumulation Units outstanding at end of period (in thousands) 457 321 160 141 19 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.029 $12.205 $11.535 $11.054 -- Accumulation Unit Value at end of period $14.443 $14.029 $12.205 $11.535 -- Number of Accumulation Units outstanding at end of period (in thousands) 326 267 235 190 -- AMERICAN FUNDS ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.608 $12.913 $11.993 $11.220 $10.120 Accumulation Unit Value at end of period $15.357 $14.608 $12.913 $11.993 $11.220 Number of Accumulation Units outstanding at end of period (in thousands) 8,860 6,835 5,027 3,097 808 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.301 $11.781 $10.963 $10.533 -- Accumulation Unit Value at end of period $13.955 $13.301 $11.781 $10.963 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,854 2,952 2,891 2,351 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.202 $11.705 $10.903 $10.231 $9.244 Accumulation Unit Value at end of period $13.836 $13.202 $11.705 $10.903 $10.231 Number of Accumulation Units outstanding at end of period (in thousands) 10,207 11,265 11,476 11,007 8,151 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.486 $11.963 $11.149 $10.467 $9.460 Accumulation Unit Value at end of period $14.127 $13.486 $11.963 $11.149 $10.467 Number of Accumulation Units outstanding at end of period (in thousands) 21,116 18,748 16,418 15,320 11,328 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.360 $11.869 $11.078 $10.648 -- Accumulation Unit Value at end of period $13.974 $13.360 $11.869 $11.078 -- Number of Accumulation Units outstanding at end of period (in thousands) 9,486 9,300 8,375 5,921 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.360 $11.869 $11.078 $10.487 -- Accumulation Unit Value at end of period $13.974 $13.360 $11.869 $11.078 -- Number of Accumulation Units outstanding at end of period (in thousands) 9,486 9,300 8,375 5,921 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.905 $11.482 $10.733 $10.107 $9.151 Accumulation Unit Value at end of period $13.478 $12.905 $11.482 $10.733 $10.107 Number of Accumulation Units outstanding at end of period (in thousands) 9,091 9,844 9,555 9,961 8,216 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.820 $11.424 $10.694 $10.151 -- Accumulation Unit Value at end of period $13.369 $12.820 $11.424 $10.694 -- Number of Accumulation Units outstanding at end of period (in thousands) 5,087 4,899 4,926 3,923 -- AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.222 $1.055 $0.997 $0.921 $0.790 Accumulation Unit Value at end of period $1.230 $1.222 $1.055 $0.997 $0.921 Number of Accumulation Units outstanding at end of period (in thousands) 67,641 55,180 39,979 25,004 7,529 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.208 $1.045 $0.989 $0.929 -- Accumulation Unit Value at end of period $1.213 $1.208 $1.045 $0.989 -- Number of Accumulation Units outstanding at end of period (in thousands) 16,818 17,576 17,788 15,747 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.201 $1.040 $0.986 $0.913 $0.785 Accumulation Unit Value at end of period $1.205 $1.201 $1.040 $0.986 $0.913 Number of Accumulation Units outstanding at end of period (in thousands) 68,553 74,980 76,680 75,252 57,297
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.198 $1.038 $0.984 $0.912 $0.784 Accumulation Unit Value at end of period $1.201 $1.198 $1.038 $0.984 $0.912 Number of Accumulation Units outstanding at end of period (in thousands) 149,898 140,470 127,132 122,339 94,254 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.188 $1.031 $0.979 $0.919 -- Accumulation Unit Value at end of period $1.190 $1.188 $1.031 $0.979 -- Number of Accumulation Units outstanding at end of period (in thousands) 71,928 73,628 66,704 51,922 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.188 $1.031 $0.979 $0.925 -- Accumulation Unit Value at end of period $1.190 $1.188 $1.031 $0.979 -- Number of Accumulation Units outstanding at end of period (in thousands) 71,928 73,628 66,704 51,922 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.178 $1.024 $0.974 $0.905 $0.780 Accumulation Unit Value at end of period $1.178 $1.178 $1.024 $0.974 $0.905 Number of Accumulation Units outstanding at end of period (in thousands) 73,720 81,808 83,622 90,105 77,474 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.170 $1.018 $0.970 $0.919 -- Accumulation Unit Value at end of period $1.169 $1.170 $1.018 $0.970 -- Number of Accumulation Units outstanding at end of period (in thousands) 39,063 40,200 39,846 32,185 -- AMERICAN FUNDS BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.281 $13.530 $13.499 $12.943 $12.513 Accumulation Unit Value at end of period $14.558 $14.281 $13.530 $13.499 $12.943 Number of Accumulation Units outstanding at end of period (in thousands) 5,995 3,880 2,438 1,368 343 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.872 $13.169 $13.166 $13.061 -- Accumulation Unit Value at end of period $14.114 $13.872 $13.169 $13.166 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,505 1,438 1,340 1,087 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.769 $13.084 $13.094 $12.592 $12.195 Accumulation Unit Value at end of period $13.994 $13.769 $13.084 $13.094 $12.592 Number of Accumulation Units outstanding at end of period (in thousands) 5,860 6,010 6,387 6,390 6,217 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.271 $12.617 $12.633 $12.155 $11.775 Accumulation Unit Value at end of period $13.482 $13.271 $12.617 $12.633 $12.155 Number of Accumulation Units outstanding at end of period (in thousands) 13,705 11,090 9,884 9,533 8,410 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.147 $12.518 $12.553 $12.459 -- Accumulation Unit Value at end of period $13.336 $13.147 $12.518 $12.553 -- Number of Accumulation Units outstanding at end of period (in thousands) 5,949 5,418 4,944 3,658 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.147 $12.518 $12.553 $12.184 -- Accumulation Unit Value at end of period $13.336 $13.147 $12.518 $12.553 -- Number of Accumulation Units outstanding at end of period (in thousands) 5,949 5,418 4,944 3,658 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.460 $12.835 $12.890 $12.439 $12.072 Accumulation Unit Value at end of period $13.632 $13.460 $12.835 $12.890 $12.439 Number of Accumulation Units outstanding at end of period (in thousands) 6,398 6,215 6,164 6,542 5,817 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.371 $12.769 $12.843 $12.500 -- Accumulation Unit Value at end of period $13.522 $13.371 $12.769 $12.843 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,400 3,215 3,197 2,523 -- AMERICAN FUNDS GLOBAL BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.207 $10.028 -- -- -- Accumulation Unit Value at end of period $10.999 $10.207 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 929 123 -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.202 $10.026 -- -- -- Accumulation Unit Value at end of period $10.972 $10.202 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 98 35 -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.199 $10.025 -- -- -- Accumulation Unit Value at end of period $10.958 $10.199 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 292 71 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.198 $10.025 -- -- -- Accumulation Unit Value at end of period $10.951 $10.198 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,498 68 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.194 $10.023 -- -- -- Accumulation Unit Value at end of period $10.931 $10.194 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 521 93 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.194 $10.023 -- -- -- Accumulation Unit Value at end of period $10.931 $10.194 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 521 93 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.191 $10.022 -- -- -- Accumulation Unit Value at end of period $10.911 $10.191 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 518 79 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.187 $10.021 -- -- -- Accumulation Unit Value at end of period $10.890 $10.187 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 308 48 -- -- -- AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.921 $9.990 -- -- -- Accumulation Unit Value at end of period $12.140 $10.921 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 7,322 2,278 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.905 $9.989 -- -- -- Accumulation Unit Value at end of period $12.097 $10.905 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 479 201 -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.897 $9.988 -- -- -- Accumulation Unit Value at end of period $12.076 $10.897 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2,020 815 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.893 $9.988 -- -- -- Accumulation Unit Value at end of period $12.066 $10.893 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 11,496 3,703 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.881 $9.987 -- -- -- Accumulation Unit Value at end of period $12.034 $10.881 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3,228 1,545 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.881 $9.987 -- -- -- Accumulation Unit Value at end of period $12.034 $10.881 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3,228 1,545 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.868 $9.986 -- -- -- Accumulation Unit Value at end of period $12.003 $10.868 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2,622 1,194 -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.856 $9.985 -- -- -- Accumulation Unit Value at end of period $11.972 $10.856 -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,137 560 -- -- -- AMERICAN FUNDS GLOBAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.715 $13.227 $11.752 $10.496 $8.622 Accumulation Unit Value at end of period $17.807 $15.715 $13.227 $11.752 $10.496 Number of Accumulation Units outstanding at end of period (in thousands) 3,539 2,602 1,643 882 238 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.703 $13.243 $11.790 $10.942 -- Accumulation Unit Value at end of period $17.757 $15.703 $13.243 $11.790 -- Number of Accumulation Units outstanding at end of period (in thousands) 851 865 869 761 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.585 $13.157 $11.725 $10.504 $8.643 Accumulation Unit Value at end of period $17.607 $15.585 $13.157 $11.725 $10.504 Number of Accumulation Units outstanding at end of period (in thousands) 3,052 3,235 3,266 3,089 2,483 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.126 $10.241 $9.132 $8.184 $6.736 Accumulation Unit Value at end of period $13.691 $12.126 $10.241 $9.132 $8.184 Number of Accumulation Units outstanding at end of period (in thousands) 9,397 7,455 5,723 5,064 3,677 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.013 $10.161 $9.074 $8.425 -- Accumulation Unit Value at end of period $13.543 $12.013 $10.161 $9.074 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,585 4,330 3,763 2,617 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.013 $10.161 $9.074 $8.260 -- Accumulation Unit Value at end of period $13.543 $12.013 $10.161 $9.074 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,585 4,330 3,763 2,617 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.235 $12.907 $11.543 $10.376 $8.555 Accumulation Unit Value at end of period $17.151 $15.235 $12.907 $11.543 $10.376 Number of Accumulation Units outstanding at end of period (in thousands) 2,732 2,685 2,488 2,435 1,976 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.135 $12.841 $11.501 $10.499 -- Accumulation Unit Value at end of period $17.012 $15.135 $12.841 $11.501 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,573 1,456 1,321 924 -- AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.960 $16.308 $13.187 $11.057 $8.281 Accumulation Unit Value at end of period $23.912 $19.960 $16.308 $13.187 $11.057 Number of Accumulation Units outstanding at end of period (in thousands) 2,024 1,410 858 438 102 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $21.000 $17.193 $13.930 $12.513 -- Accumulation Unit Value at end of period $25.108 $21.000 $17.193 $13.930 -- Number of Accumulation Units outstanding at end of period (in thousands) 364 383 397 371 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $20.843 $17.081 $13.853 $11.651 $8.741 Accumulation Unit Value at end of period $24.896 $20.843 $17.081 $13.853 $11.651 Number of Accumulation Units outstanding at end of period (in thousands) 1,517 1,547 1,535 1,361 1,011 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.426 $12.648 $10.263 $8.636 $6.481 Accumulation Unit Value at end of period $18.415 $15.426 $12.648 $10.263 $8.636 Number of Accumulation Units outstanding at end of period (in thousands) 5,779 4,357 3,050 2,520 1,829 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.282 $12.549 $10.198 $9.165 -- Accumulation Unit Value at end of period $18.216 $15.282 $12.549 $10.198 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,260 3,005 2,605 1,580 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.282 $12.549 $10.198 $8.946 -- Accumulation Unit Value at end of period $18.216 $15.282 $12.549 $10.198 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,260 3,005 2,605 1,580 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $20.375 $16.756 $13.637 $11.509 $8.652 Accumulation Unit Value at end of period $24.251 $20.375 $16.756 $13.637 $11.509 Number of Accumulation Units outstanding at end of period (in thousands) 1,910 1,973 1,871 1,534 1,024 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.241 $16.671 $13.588 $11.953 -- Accumulation Unit Value at end of period $24.055 $20.241 $16.671 $13.588 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,344 1,225 1,308 773 -- AMERICAN FUNDS GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.955 $13.753 $11.997 $10.810 $9.337 Accumulation Unit Value at end of period $16.576 $14.955 $13.753 $11.997 $10.810 Number of Accumulation Units outstanding at end of period (in thousands) 21,794 14,681 8,675 4,937 1,622 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.287 $13.165 $11.508 $10.639 -- Accumulation Unit Value at end of period $15.805 $14.287 $13.165 $11.508 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,673 4,883 4,837 4,071 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.181 $13.080 $11.445 $10.342 $8.949 Accumulation Unit Value at end of period $15.671 $14.181 $13.080 $11.445 $10.342 Number of Accumulation Units outstanding at end of period (in thousands) 17,290 18,524 19,458 18,755 15,275 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.884 $9.121 $7.985 $7.219 $6.248 Accumulation Unit Value at end of period $10.917 $9.884 $9.121 $7.985 $7.219 Number of Accumulation Units outstanding at end of period (in thousands) 64,996 52,801 41,182 39,176 30,880 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.792 $9.050 $7.934 $7.338 -- Accumulation Unit Value at end of period $10.799 $9.792 $9.050 $7.934 -- Number of Accumulation Units outstanding at end of period (in thousands) 34,759 33,246 28,889 19,704 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.792 $9.050 $7.934 $7.361 -- Accumulation Unit Value at end of period $10.799 $9.792 $9.050 $7.934 -- Number of Accumulation Units outstanding at end of period (in thousands) 34,759 33,246 28,889 19,704 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.862 $12.831 $11.266 $10.217 $8.858 Accumulation Unit Value at end of period $15.265 $13.862 $12.831 $11.266 $10.217 Number of Accumulation Units outstanding at end of period (in thousands) 18,968 20,465 21,100 22,080 18,446 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.770 $12.765 $11.225 $10.443 -- Accumulation Unit Value at end of period $15.142 $13.770 $12.765 $11.225 -- Number of Accumulation Units outstanding at end of period (in thousands) 12,822 13,143 13,600 10,695 -- AMERICAN FUNDS GROWTH-INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.692 $13.806 $13.223 $12.143 $10.422 Accumulation Unit Value at end of period $16.262 $15.692 $13.806 $13.223 $12.143 Number of Accumulation Units outstanding at end of period (in thousands) 22,677 15,912 9,763 5,476 1,524 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.853 $12.213 $11.720 $10.993 -- Accumulation Unit Value at end of period $14.328 $13.853 $12.213 $11.720 -- Number of Accumulation Units outstanding at end of period (in thousands) 5,987 6,223 6,116 5,305 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.750 $12.134 $11.656 $10.736 $9.231 Accumulation Unit Value at end of period $14.207 $13.750 $12.134 $11.656 $10.736 Number of Accumulation Units outstanding at end of period (in thousands) 17,696 19,476 20,433 19,977 16,196
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.928 $12.297 $11.819 $10.891 $9.367 Accumulation Unit Value at end of period $14.384 $13.928 $12.297 $11.819 $10.891 Number of Accumulation Units outstanding at end of period (in thousands) 45,387 37,282 30,950 29,107 22,985 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.798 $12.201 $11.744 $11.021 -- Accumulation Unit Value at end of period $14.228 $13.798 $12.201 $11.744 -- Number of Accumulation Units outstanding at end of period (in thousands) 25,475 24,685 21,755 14,281 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.798 $12.201 $11.744 $11.065 -- Accumulation Unit Value at end of period $14.228 $13.798 $12.201 $11.744 -- Number of Accumulation Units outstanding at end of period (in thousands) 25,475 24,685 21,755 14,281 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.441 $11.903 $11.474 $10.605 $9.137 Accumulation Unit Value at end of period $13.839 $13.441 $11.903 $11.474 $10.605 Number of Accumulation Units outstanding at end of period (in thousands) 19,545 20,994 21,333 22,158 18,549 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.352 $11.842 $11.432 $10.801 -- Accumulation Unit Value at end of period $13.727 $13.352 $11.842 $11.432 -- Number of Accumulation Units outstanding at end of period (in thousands) 14,288 14,895 15,290 11,516 -- AMERICAN FUNDS INTERNATIONAL FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.583 $13.275 $11.074 $9.407 $7.437 Accumulation Unit Value at end of period $18.452 $15.583 $13.275 $11.074 $9.407 Number of Accumulation Units outstanding at end of period (in thousands) 6,638 4,853 2,813 1,396 250 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.258 $13.878 $11.600 $10.613 -- Accumulation Unit Value at end of period $19.213 $16.258 $13.878 $11.600 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,385 1,440 1,359 1,080 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $16.137 $13.788 $11.537 $9.830 $7.784 Accumulation Unit Value at end of period $19.051 $16.137 $13.788 $11.537 $9.830 Number of Accumulation Units outstanding at end of period (in thousands) 4,174 4,450 4,144 3,811 2,886 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.330 $10.541 $8.824 $7.522 $5.958 Accumulation Unit Value at end of period $14.549 $12.330 $10.541 $8.824 $7.522 Number of Accumulation Units outstanding at end of period (in thousands) 15,479 12,259 8,328 7,186 4,448 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.215 $10.458 $8.768 $8.026 -- Accumulation Unit Value at end of period $14.392 $12.215 $10.458 $8.768 -- Number of Accumulation Units outstanding at end of period (in thousands) 8,017 7,753 6,479 4,277 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.215 $10.458 $8.768 $7.636 -- Accumulation Unit Value at end of period $14.392 $12.215 $10.458 $8.768 -- Number of Accumulation Units outstanding at end of period (in thousands) 8,017 7,753 6,479 4,277 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.774 $13.526 $11.357 $9.710 $7.705 Accumulation Unit Value at end of period $18.558 $15.774 $13.526 $11.357 $9.710 Number of Accumulation Units outstanding at end of period (in thousands) 4,369 4,113 3,487 3,048 1,967 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.670 $13.457 $11.316 $9.882 -- Accumulation Unit Value at end of period $18.408 $15.670 $13.457 $11.316 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,243 3,210 3,129 2,231 -- AMERICAN FUNDS NEW WORLD FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.315 $17.823 $14.962 $12.766 $10.155 Accumulation Unit Value at end of period $30.412 $23.315 $17.823 $14.962 $12.766 Number of Accumulation Units outstanding at end of period (in thousands) 1,664 1,045 563 212 51
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $21.829 $16.720 $14.064 $12.790 -- Accumulation Unit Value at end of period $28.416 $21.829 $16.720 $14.064 -- Number of Accumulation Units outstanding at end of period (in thousands) 322 323 280 207 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $21.665 $16.611 $13.987 $11.970 $9.538 Accumulation Unit Value at end of period $28.176 $21.665 $16.611 $13.987 $11.970 Number of Accumulation Units outstanding at end of period (in thousands) 1,124 1,137 1,047 858 619 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $20.464 $15.698 $13.224 $11.323 $9.025 Accumulation Unit Value at end of period $26.599 $20.464 $15.698 $13.224 $11.323 Number of Accumulation Units outstanding at end of period (in thousands) 3,778 2,530 1,542 1,030 649 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $20.273 $15.575 $13.140 $11.956 -- Accumulation Unit Value at end of period $26.312 $20.273 $15.575 $13.140 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,638 1,360 1,135 609 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.273 $15.575 $13.140 $11.430 -- Accumulation Unit Value at end of period $26.312 $20.273 $15.575 $13.140 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,638 1,360 1,135 609 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $21.179 $16.295 $13.769 $11.824 $9.442 Accumulation Unit Value at end of period $27.447 $21.179 $16.295 $13.769 $11.824 Number of Accumulation Units outstanding at end of period (in thousands) 1,434 1,267 987 744 467 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $21.039 $16.212 $13.719 $11.966 -- Accumulation Unit Value at end of period $27.225 $21.039 $16.212 $13.719 -- Number of Accumulation Units outstanding at end of period (in thousands) 824 693 604 412 -- FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.878 $10.480 $9.408 -- -- Accumulation Unit Value at end of period $12.269 $10.878 $10.480 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 545 378 108 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.838 $10.463 $9.405 -- -- Accumulation Unit Value at end of period $12.200 $10.838 $10.463 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 68 63 34 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.818 $10.454 $9.404 -- -- Accumulation Unit Value at end of period $12.165 $10.818 $10.454 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 149 52 19 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.808 $10.450 $9.403 -- -- Accumulation Unit Value at end of period $12.148 $10.808 $10.450 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,352 746 239 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.778 $10.437 $9.400 -- -- Accumulation Unit Value at end of period $12.096 $10.778 $10.437 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 411 333 204 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.778 $10.437 $9.400 -- -- Accumulation Unit Value at end of period $12.096 $10.778 $10.437 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 411 333 204 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.749 $10.424 $9.398 -- -- Accumulation Unit Value at end of period $12.045 $10.749 $10.424 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 213 102 51 -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.719 $10.411 $9.396 -- -- Accumulation Unit Value at end of period $11.994 $10.719 $10.411 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 62 50 32 -- -- FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.791 $13.537 $13.504 $12.022 $10.500 Accumulation Unit Value at end of period $16.165 $15.791 $13.537 $13.504 $12.022 Number of Accumulation Units outstanding at end of period (in thousands) 18,719 10,651 5,384 2,089 413 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.637 $13.431 $13.426 $12.764 -- Accumulation Unit Value at end of period $15.975 $15.637 $13.431 $13.426 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,143 1,904 1,431 408 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.564 $13.382 $13.390 $11.956 $10.461 Accumulation Unit Value at end of period $15.884 $15.564 $13.382 $13.390 $11.956 Number of Accumulation Units outstanding at end of period (in thousands) 7,494 6,794 6,192 4,694 2,073 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.528 $13.357 $13.372 $11.946 $10.455 Accumulation Unit Value at end of period $15.839 $15.528 $13.357 $13.372 $11.946 Number of Accumulation Units outstanding at end of period (in thousands) 35,938 21,983 12,895 8,362 4,539 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.419 $13.284 $13.318 $12.668 -- Accumulation Unit Value at end of period $15.705 $15.419 $13.284 $13.318 -- Number of Accumulation Units outstanding at end of period (in thousands) 15,038 13,232 10,487 4,544 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.419 $13.284 $13.318 $12.065 -- Accumulation Unit Value at end of period $15.705 $15.419 $13.284 $13.318 -- Number of Accumulation Units outstanding at end of period (in thousands) 15,038 13,232 10,487 4,544 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.312 $13.211 $13.265 $11.886 $10.421 Accumulation Unit Value at end of period $15.572 $15.312 $13.211 $13.265 $11.886 Number of Accumulation Units outstanding at end of period (in thousands) 9,124 7,699 6,867 6,373 4,557 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.211 $13.144 $13.217 $12.007 -- Accumulation Unit Value at end of period $15.446 $15.211 $13.144 $13.217 -- Number of Accumulation Units outstanding at end of period (in thousands) 6,167 5,986 6,083 4,107 -- FRANKLIN LARGE CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.066 $11.029 $11.061 $10.388 $9.177 Accumulation Unit Value at end of period $12.646 $12.066 $11.029 $11.061 $10.388 Number of Accumulation Units outstanding at end of period (in thousands) 1,911 1,569 928 421 42 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.948 $10.942 $10.997 $10.300 -- Accumulation Unit Value at end of period $12.497 $11.948 $10.942 $10.997 -- Number of Accumulation Units outstanding at end of period (in thousands) 334 326 224 48 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.893 $10.902 $10.968 $10.331 $9.142 Accumulation Unit Value at end of period $12.427 $11.893 $10.902 $10.968 $10.331 Number of Accumulation Units outstanding at end of period (in thousands) 868 914 878 594 217 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.865 $10.882 $10.953 $10.322 $9.137 Accumulation Unit Value at end of period $12.392 $11.865 $10.882 $10.953 $10.322 Number of Accumulation Units outstanding at end of period (in thousands) 3,208 2,681 1,776 1,200 435 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.782 $10.823 $10.909 $10.223 -- Accumulation Unit Value at end of period $12.287 $11.782 $10.823 $10.909 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,236 2,303 1,951 995 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.782 $10.823 $10.909 $10.481 -- Accumulation Unit Value at end of period $12.287 $11.782 $10.823 $10.909 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,236 2,303 1,951 995 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.700 $10.763 $10.866 $10.270 $9.107 Accumulation Unit Value at end of period $12.183 $11.700 $10.763 $10.866 $10.270 Number of Accumulation Units outstanding at end of period (in thousands) 1,091 1,015 944 814 448 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.622 $10.708 $10.826 $10.430 -- Accumulation Unit Value at end of period $12.084 $11.622 $10.708 $10.826 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,362 1,472 1,481 939 -- FRANKLIN LARGE CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.824 $10.315 $9.708 -- -- Accumulation Unit Value at end of period $11.634 $11.824 $10.315 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 349 185 58 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.780 $10.297 $9.704 -- -- Accumulation Unit Value at end of period $11.569 $11.780 $10.297 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 49 38 22 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.759 $10.289 $9.703 -- -- Accumulation Unit Value at end of period $11.536 $11.759 $10.289 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 141 81 35 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.748 $10.284 $9.702 -- -- Accumulation Unit Value at end of period $11.520 $11.748 $10.284 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 529 277 47 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.716 $10.272 $9.699 -- -- Accumulation Unit Value at end of period $11.471 $11.716 $10.272 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 164 132 88 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.716 $10.272 $9.699 -- -- Accumulation Unit Value at end of period $11.471 $11.716 $10.272 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 164 132 88 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.683 $10.259 $9.697 -- -- Accumulation Unit Value at end of period $11.422 $11.683 $10.259 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 233 83 20 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.651 $10.246 $9.695 -- -- Accumulation Unit Value at end of period $11.374 $11.651 $10.246 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 99 29 11 -- -- FRANKLIN RISING DIVIDENDS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.628 $13.525 $13.254 $12.103 $10.476 Accumulation Unit Value at end of period $15.004 $15.628 $13.525 $13.254 $12.103 Number of Accumulation Units outstanding at end of period (in thousands) 9,602 5,616 2,468 1,108 199 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.514 $13.453 $13.210 $12.344 -- Accumulation Unit Value at end of period $14.865 $15.514 $13.453 $13.210 -- Number of Accumulation Units outstanding at end of period (in thousands) 813 777 548 142 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.457 $13.417 $13.188 $12.079 $10.473 Accumulation Unit Value at end of period $14.795 $15.457 $13.417 $13.188 $12.079 Number of Accumulation Units outstanding at end of period (in thousands) 3,017 2,775 2,205 1,629 438
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.429 $13.399 $13.177 $12.075 $10.473 Accumulation Unit Value at end of period $14.761 $15.429 $13.399 $13.177 $12.075 Number of Accumulation Units outstanding at end of period (in thousands) 15,008 8,977 4,409 3,103 1,340 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.344 $13.345 $13.144 $12.288 -- Accumulation Unit Value at end of period $14.658 $15.344 $13.345 $13.144 -- Number of Accumulation Units outstanding at end of period (in thousands) 7,375 6,669 4,897 2,537 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.344 $13.345 $13.144 $12.202 -- Accumulation Unit Value at end of period $14.658 $15.344 $13.345 $13.144 -- Number of Accumulation Units outstanding at end of period (in thousands) 7,375 6,669 4,897 2,537 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.260 $13.292 $13.111 $12.051 $10.470 Accumulation Unit Value at end of period $14.555 $15.260 $13.292 $13.111 $12.051 Number of Accumulation Units outstanding at end of period (in thousands) 3,902 3,344 2,528 2,245 1,211 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.176 $13.239 $13.078 $12.174 -- Accumulation Unit Value at end of period $14.454 $15.176 $13.239 $13.078 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,833 3,074 2,842 2,050 -- FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.254 -- -- -- -- (a) Accumulation Unit Value at end of period $9.253 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 7 -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.251 -- -- -- -- (a) Accumulation Unit Value at end of period $9.248 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.250 -- -- -- -- (a) Accumulation Unit Value at end of period $9.246 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1 -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.249 -- -- -- -- (a) Accumulation Unit Value at end of period $9.244 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 15 -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.247 -- -- -- -- (a) Accumulation Unit Value at end of period $9.240 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 4 -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.247 -- -- -- -- (a) Accumulation Unit Value at end of period $9.240 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 4 -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.245 -- -- -- -- (a) Accumulation Unit Value at end of period $9.237 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) 5 -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.243 -- -- -- -- (a) Accumulation Unit Value at end of period $9.233 -- -- -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.943 $12.070 $11.675 $10.616 $8.778 Accumulation Unit Value at end of period $14.205 $12.943 $12.070 $11.675 $10.616 Number of Accumulation Units outstanding at end of period (in thousands) 1,799 1,096 688 414 145
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.406 $12.526 $12.141 $11.282 -- Accumulation Unit Value at end of period $14.683 $13.406 $12.526 $12.141 -- Number of Accumulation Units outstanding at end of period (in thousands) 498 551 557 567 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.305 $12.445 $12.074 $11.011 $9.121 Accumulation Unit Value at end of period $14.559 $13.305 $12.445 $12.074 $11.011 Number of Accumulation Units outstanding at end of period (in thousands) 1,713 1,889 1,963 2,101 1,892 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $7.718 $7.223 $7.011 $6.397 $5.300 Accumulation Unit Value at end of period $8.441 $7.718 $7.223 $7.011 $6.397 Number of Accumulation Units outstanding at end of period (in thousands) 7,327 6,285 5,544 6,030 5,370 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $7.646 $7.166 $6.966 $6.477 -- Accumulation Unit Value at end of period $8.350 $7.646 $7.166 $6.966 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,543 3,280 2,674 2,154 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.646 $7.166 $6.966 $6.572 -- Accumulation Unit Value at end of period $8.350 $7.646 $7.166 $6.966 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,543 3,280 2,674 2,154 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.006 $12.208 $11.886 $10.877 $9.028 Accumulation Unit Value at end of period $14.182 $13.006 $12.208 $11.886 $10.877 Number of Accumulation Units outstanding at end of period (in thousands) 2,307 2,614 2,819 3,331 2,748 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.920 $12.145 $11.842 $11.202 -- Accumulation Unit Value at end of period $14.067 $12.920 $12.145 $11.842 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,053 896 979 838 -- FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.961 $14.910 $14.856 $13.687 $12.843 Accumulation Unit Value at end of period $16.724 $15.961 $14.910 $14.856 $13.687 Number of Accumulation Units outstanding at end of period (in thousands) 3,680 2,423 1,394 627 174 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.392 $14.407 $14.383 $14.018 -- Accumulation Unit Value at end of period $16.095 $15.392 $14.407 $14.383 -- Number of Accumulation Units outstanding at end of period (in thousands) 662 635 585 448 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.277 $14.314 $14.304 $13.219 $12.425 Accumulation Unit Value at end of period $15.959 $15.277 $14.314 $14.304 $13.219 Number of Accumulation Units outstanding at end of period (in thousands) 2,433 2,382 2,394 2,086 1,432 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.676 $13.758 $13.755 $12.718 $11.958 Accumulation Unit Value at end of period $15.324 $14.676 $13.758 $13.755 $12.718 Number of Accumulation Units outstanding at end of period (in thousands) 8,395 5,698 4,184 3,360 2,620 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.539 $13.650 $13.668 $13.328 -- Accumulation Unit Value at end of period $15.158 $14.539 $13.650 $13.668 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,268 2,932 2,536 1,172 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.539 $13.650 $13.668 $12.782 -- Accumulation Unit Value at end of period $15.158 $14.539 $13.650 $13.668 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,268 2,932 2,536 1,172 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.934 $14.041 $14.081 $13.058 $12.299 Accumulation Unit Value at end of period $15.546 $14.934 $14.041 $14.081 $13.058 Number of Accumulation Units outstanding at end of period (in thousands) 3,075 2,856 2,811 2,689 2,229
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.835 $13.970 $14.030 $13.157 -- Accumulation Unit Value at end of period $15.420 $14.835 $13.970 $14.030 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,826 1,827 1,845 1,249 -- HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.129 $1.093 $1.077 $1.081 $1.086 Accumulation Unit Value at end of period $1.169 $1.129 $1.093 $1.077 $1.081 Number of Accumulation Units outstanding at end of period (in thousands) 36,410 20,188 6,654 4,047 1,569 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.118 $1.084 $1.071 $1.071 -- Accumulation Unit Value at end of period $1.155 $1.118 $1.084 $1.071 -- Number of Accumulation Units outstanding at end of period (in thousands) 8,488 7,071 4,007 3,013 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.110 $1.077 $1.065 $1.073 $1.079 Accumulation Unit Value at end of period $1.145 $1.110 $1.077 $1.065 $1.073 Number of Accumulation Units outstanding at end of period (in thousands) 37,299 30,252 26,062 31,860 35,889 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.054 $1.024 $1.013 $1.020 $1.026 Accumulation Unit Value at end of period $1.087 $1.054 $1.024 $1.013 $1.020 Number of Accumulation Units outstanding at end of period (in thousands) 95,715 50,457 32,249 30,215 32,704 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.044 $1.016 $1.006 $1.007 -- Accumulation Unit Value at end of period $1.076 $1.044 $1.016 $1.006 -- Number of Accumulation Units outstanding at end of period (in thousands) 47,059 27,480 16,896 10,727 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.044 $1.016 $1.006 $1.014 -- Accumulation Unit Value at end of period $1.076 $1.044 $1.016 $1.006 -- Number of Accumulation Units outstanding at end of period (in thousands) 47,059 27,480 16,896 10,727 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.085 $1.057 $1.048 $1.060 $1.068 Accumulation Unit Value at end of period $1.116 $1.085 $1.057 $1.048 $1.060 Number of Accumulation Units outstanding at end of period (in thousands) 50,471 32,390 24,469 25,907 28,160 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $1.052 $1.045 $1.056 -- Accumulation Unit Value at end of period $1.107 $1.078 $1.052 $1.045 -- Number of Accumulation Units outstanding at end of period (in thousands) 28,706 15,931 11,174 10,273 -- MFS(R) CORE EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.139 $9.031 $9.002 $8.113 $7.184 Accumulation Unit Value at end of period $11.119 $10.139 $9.031 $9.002 $8.113 Number of Accumulation Units outstanding at end of period (in thousands) 51 61 65 63 37 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.413 $8.400 $8.390 $7.723 -- Accumulation Unit Value at end of period $10.301 $9.413 $8.400 $8.390 -- Number of Accumulation Units outstanding at end of period (in thousands) 172 215 257 311 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.342 $8.346 $8.344 $7.543 $6.691 Accumulation Unit Value at end of period $10.214 $9.342 $8.346 $8.344 $7.543 Number of Accumulation Units outstanding at end of period (in thousands) 446 662 857 1,014 1,131 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $7.073 $6.322 $6.323 $5.719 $5.075 Accumulation Unit Value at end of period $7.729 $7.073 $6.322 $6.323 $5.719 Number of Accumulation Units outstanding at end of period (in thousands) 556 727 966 1,265 1,463 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $7.007 $6.272 $6.283 $5.787 -- Accumulation Unit Value at end of period $7.645 $7.007 $6.272 $6.283 -- Number of Accumulation Units outstanding at end of period (in thousands) 233 264 335 420 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.007 $6.272 $6.283 $5.842 -- Accumulation Unit Value at end of period $7.645 $7.007 $6.272 $6.283 -- Number of Accumulation Units outstanding at end of period (in thousands) 233 264 335 420 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.132 $8.187 $8.214 $7.451 $6.623 Accumulation Unit Value at end of period $9.949 $9.132 $8.187 $8.214 $7.451 Number of Accumulation Units outstanding at end of period (in thousands) 258 311 379 530 500 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.072 $8.145 $8.184 $7.631 -- Accumulation Unit Value at end of period $9.869 $9.072 $8.145 $8.184 -- Number of Accumulation Units outstanding at end of period (in thousands) 91 72 77 75 -- MFS(R) EMERGING GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.679 $8.153 $7.568 $6.791 $6.037 Accumulation Unit Value at end of period $10.375 $8.679 $8.153 $7.568 $6.791 Number of Accumulation Units outstanding at end of period (in thousands) 247 153 81 63 18 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $8.486 $7.988 $7.430 $6.769 -- Accumulation Unit Value at end of period $10.125 $8.486 $7.988 $7.430 -- Number of Accumulation Units outstanding at end of period (in thousands) 263 302 363 420 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.423 $7.936 $7.389 $6.650 $5.922 Accumulation Unit Value at end of period $10.039 $8.423 $7.936 $7.389 $6.650 Number of Accumulation Units outstanding at end of period (in thousands) 498 556 710 773 819 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $5.611 $5.290 $4.927 $4.437 $3.952 Accumulation Unit Value at end of period $6.684 $5.611 $5.290 $4.927 $4.437 Number of Accumulation Units outstanding at end of period (in thousands) 1,181 916 951 1,045 1,079 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $5.558 $5.248 $4.896 $4.462 -- Accumulation Unit Value at end of period $6.612 $5.558 $5.248 $4.896 -- Number of Accumulation Units outstanding at end of period (in thousands) 662 442 475 447 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.558 $5.248 $4.896 $4.551 -- Accumulation Unit Value at end of period $6.612 $5.558 $5.248 $4.896 -- Number of Accumulation Units outstanding at end of period (in thousands) 662 442 475 447 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $8.233 $7.785 $7.274 $6.570 $5.862 Accumulation Unit Value at end of period $9.779 $8.233 $7.785 $7.274 $6.570 Number of Accumulation Units outstanding at end of period (in thousands) 543 517 494 497 536 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.179 $7.745 $7.248 $6.755 -- Accumulation Unit Value at end of period $9.700 $8.179 $7.745 $7.248 -- Number of Accumulation Units outstanding at end of period (in thousands) 261 189 189 168 -- MFS(R) GLOBAL EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.420 $13.378 $12.593 $10.792 $9.284 Accumulation Unit Value at end of period $17.689 $16.420 $13.378 $12.593 $10.792 Number of Accumulation Units outstanding at end of period (in thousands) 156 128 71 32 5 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.528 $12.677 $11.957 $10.948 -- Accumulation Unit Value at end of period $16.695 $15.528 $12.677 $11.957 -- Number of Accumulation Units outstanding at end of period (in thousands) 45 53 48 47 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.412 $12.595 $11.891 $10.221 $8.808 Accumulation Unit Value at end of period $16.554 $15.412 $12.595 $11.891 $10.221 Number of Accumulation Units outstanding at end of period (in thousands) 148 175 154 161 115
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.958 $11.412 $10.780 $9.270 $7.992 Accumulation Unit Value at end of period $14.985 $13.958 $11.412 $10.780 $9.270 Number of Accumulation Units outstanding at end of period (in thousands) 378 321 199 207 158 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.828 $11.323 $10.712 $9.813 -- Accumulation Unit Value at end of period $14.823 $13.828 $11.323 $10.712 -- Number of Accumulation Units outstanding at end of period (in thousands) 191 197 142 108 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.828 $11.323 $10.712 $9.381 -- Accumulation Unit Value at end of period $14.823 $13.828 $11.323 $10.712 -- Number of Accumulation Units outstanding at end of period (in thousands) 191 197 142 108 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.066 $12.355 $11.706 $10.097 $8.719 Accumulation Unit Value at end of period $16.125 $15.066 $12.355 $11.706 $10.097 Number of Accumulation Units outstanding at end of period (in thousands) 267 313 294 224 218 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.966 $12.292 $11.663 $10.243 -- Accumulation Unit Value at end of period $15.995 $14.966 $12.292 $11.663 -- Number of Accumulation Units outstanding at end of period (in thousands) 150 129 80 58 -- MFS(R) HIGH INCOME SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.282 $12.198 $12.102 $11.238 $10.338 Accumulation Unit Value at end of period $13.336 $13.282 $12.198 $12.102 $11.238 Number of Accumulation Units outstanding at end of period (in thousands) 740 617 473 331 131 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.783 $11.762 $11.694 $11.497 -- Accumulation Unit Value at end of period $12.809 $12.783 $11.762 $11.694 -- Number of Accumulation Units outstanding at end of period (in thousands) 245 283 301 307 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.687 $11.686 $11.630 $10.832 $9.982 Accumulation Unit Value at end of period $12.700 $12.687 $11.686 $11.630 $10.832 Number of Accumulation Units outstanding at end of period (in thousands) 1,135 1,406 1,602 1,945 2,018 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.820 $11.815 $11.763 $10.962 $10.105 Accumulation Unit Value at end of period $12.827 $12.820 $11.815 $11.763 $10.962 Number of Accumulation Units outstanding at end of period (in thousands) 2,578 2,507 2,543 2,830 2,749 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.701 $11.722 $11.689 $11.498 -- Accumulation Unit Value at end of period $12.689 $12.701 $11.722 $11.689 -- Number of Accumulation Units outstanding at end of period (in thousands) 778 952 910 817 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.701 $11.722 $11.689 $11.002 -- Accumulation Unit Value at end of period $12.689 $12.701 $11.722 $11.689 -- Number of Accumulation Units outstanding at end of period (in thousands) 778 952 910 817 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.402 $11.464 $11.448 $10.700 $9.881 Accumulation Unit Value at end of period $12.372 $12.402 $11.464 $11.448 $10.700 Number of Accumulation Units outstanding at end of period (in thousands) 1,418 1,732 1,909 2,241 2,318 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.321 $11.405 $11.407 $10.766 -- Accumulation Unit Value at end of period $12.272 $12.321 $11.405 $11.407 -- Number of Accumulation Units outstanding at end of period (in thousands) 597 612 569 514 -- MFS(R) INVESTORS GROWTH STOCK SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.871 $8.358 $8.108 $7.527 $6.906 Accumulation Unit Value at end of period $9.746 $8.871 $8.358 $8.108 $7.527 Number of Accumulation Units outstanding at end of period (in thousands) 268 216 169 117 73
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $8.390 $7.921 $7.699 $7.126 -- Accumulation Unit Value at end of period $9.199 $8.390 $7.921 $7.699 -- Number of Accumulation Units outstanding at end of period (in thousands) 431 559 656 811 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.327 $7.869 $7.656 $7.129 $6.553 Accumulation Unit Value at end of period $9.121 $8.327 $7.869 $7.656 $7.129 Number of Accumulation Units outstanding at end of period (in thousands) 475 681 872 1,047 1,212 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $6.534 $6.178 $6.014 $5.602 $5.151 Accumulation Unit Value at end of period $7.153 $6.534 $6.178 $6.014 $5.602 Number of Accumulation Units outstanding at end of period (in thousands) 1,654 1,833 1,961 2,030 1,983 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.473 $6.129 $5.975 $5.533 -- Accumulation Unit Value at end of period $7.076 $6.473 $6.129 $5.975 -- Number of Accumulation Units outstanding at end of period (in thousands) 619 663 752 641 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.473 $6.129 $5.975 $5.701 -- Accumulation Unit Value at end of period $7.076 $6.473 $6.129 $5.975 -- Number of Accumulation Units outstanding at end of period (in thousands) 619 663 752 641 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $8.140 $7.719 $7.537 $7.042 $6.487 Accumulation Unit Value at end of period $8.885 $8.140 $7.719 $7.537 $7.042 Number of Accumulation Units outstanding at end of period (in thousands) 673 808 906 1,034 986 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.086 $7.680 $7.510 $7.184 -- Accumulation Unit Value at end of period $8.813 $8.086 $7.680 $7.510 -- Number of Accumulation Units outstanding at end of period (in thousands) 196 211 229 188 -- MFS(R) INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.127 $9.981 $9.428 $8.581 $7.685 Accumulation Unit Value at end of period $12.109 $11.127 $9.981 $9.428 $8.581 Number of Accumulation Units outstanding at end of period (in thousands) 4,793 3,211 1,720 796 65 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.771 $8.782 $8.312 $7.692 -- Accumulation Unit Value at end of period $10.612 $9.771 $8.782 $8.312 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,240 1,305 1,168 917 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.698 $8.726 $8.266 $7.547 $6.771 Accumulation Unit Value at end of period $10.522 $9.698 $8.726 $8.266 $7.547 Number of Accumulation Units outstanding at end of period (in thousands) 2,369 2,328 2,267 1,825 1,145 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.592 $8.634 $8.184 $7.475 $6.709 Accumulation Unit Value at end of period $10.402 $9.592 $8.634 $8.184 $7.475 Number of Accumulation Units outstanding at end of period (in thousands) 9,208 6,654 4,443 3,224 1,714 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.502 $8.567 $8.132 $7.530 -- Accumulation Unit Value at end of period $10.290 $9.502 $8.567 $8.132 -- Number of Accumulation Units outstanding at end of period (in thousands) 5,694 5,320 4,439 2,242 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.502 $8.567 $8.132 $7.523 -- Accumulation Unit Value at end of period $10.290 $9.502 $8.567 $8.132 -- Number of Accumulation Units outstanding at end of period (in thousands) 5,694 5,320 4,439 2,242 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.480 $8.559 $8.137 $7.455 $6.702 Accumulation Unit Value at end of period $10.250 $9.480 $8.559 $8.137 $7.455 Number of Accumulation Units outstanding at end of period (in thousands) 2,836 2,373 2,199 2,072 1,402
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.417 $8.516 $8.108 $7.521 -- Accumulation Unit Value at end of period $10.167 $9.417 $8.516 $8.108 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,026 3,137 3,168 2,074 -- MFS(R) MID CAP GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.126 $6.055 $5.952 $5.266 $4.500 Accumulation Unit Value at end of period $6.638 $6.126 $6.055 $5.952 $5.266 Number of Accumulation Units outstanding at end of period (in thousands) 881 691 746 426 162 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.036 $5.978 $5.888 $5.403 -- Accumulation Unit Value at end of period $6.527 $6.036 $5.978 $5.888 -- Number of Accumulation Units outstanding at end of period (in thousands) 310 395 431 421 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $5.998 $5.946 $5.863 $5.203 $4.454 Accumulation Unit Value at end of period $6.479 $5.998 $5.946 $5.863 $5.203 Number of Accumulation Units outstanding at end of period (in thousands) 1,400 1,674 2,125 2,213 2,059 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $6.465 $6.413 $6.326 $5.617 $4.809 Accumulation Unit Value at end of period $6.980 $6.465 $6.413 $6.326 $5.617 Number of Accumulation Units outstanding at end of period (in thousands) 2,647 2,782 3,117 3,665 3,361 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.405 $6.362 $6.286 $5.771 -- Accumulation Unit Value at end of period $6.905 $6.405 $6.362 $6.286 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,185 1,295 1,384 1,326 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.405 $6.362 $6.286 $5.861 -- Accumulation Unit Value at end of period $6.905 $6.405 $6.362 $6.286 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,185 1,295 1,384 1,326 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $5.871 $5.841 $5.779 $5.147 $4.415 Accumulation Unit Value at end of period $6.320 $5.871 $5.841 $5.779 $5.147 Number of Accumulation Units outstanding at end of period (in thousands) 2,022 2,492 2,899 3,306 2,843 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.832 $5.811 $5.758 $5.384 -- Accumulation Unit Value at end of period $6.269 $5.832 $5.811 $5.758 -- Number of Accumulation Units outstanding at end of period (in thousands) 935 985 1,061 861 -- MFS(R) NEW DISCOVERY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.233 $13.638 $13.135 $12.498 $10.467 Accumulation Unit Value at end of period $15.407 $15.233 $13.638 $13.135 $12.498 Number of Accumulation Units outstanding at end of period (in thousands) 2,453 1,776 759 370 54 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.881 $12.453 $12.017 $10.897 -- Accumulation Unit Value at end of period $14.012 $13.881 $12.453 $12.017 -- Number of Accumulation Units outstanding at end of period (in thousands) 492 451 329 188 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.778 $12.372 $11.951 $11.406 $9.569 Accumulation Unit Value at end of period $13.893 $13.778 $12.372 $11.951 $11.406 Number of Accumulation Units outstanding at end of period (in thousands) 1,291 1,416 1,342 1,278 1,095 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $9.114 $8.188 $7.913 $7.556 $6.341 Accumulation Unit Value at end of period $9.186 $9.114 $8.188 $7.913 $7.556 Number of Accumulation Units outstanding at end of period (in thousands) 6,775 5,496 3,107 2,543 1,753 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.029 $8.124 $7.863 $7.134 -- Accumulation Unit Value at end of period $9.086 $9.029 $8.124 $7.863 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,734 3,779 2,619 1,396 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.029 $8.124 $7.863 $7.944 -- Accumulation Unit Value at end of period $9.086 $9.029 $8.124 $7.863 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,734 3,779 2,619 1,396 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.468 $12.136 $11.764 $11.267 $9.472 Accumulation Unit Value at end of period $13.533 $13.468 $12.136 $11.764 $11.267 Number of Accumulation Units outstanding at end of period (in thousands) 1,500 1,431 1,345 1,259 1,010 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.379 $12.074 $11.722 $11.875 -- Accumulation Unit Value at end of period $13.424 $13.379 $12.074 $11.722 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,256 1,385 1,323 909 -- MFS(R) RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $10.040 $9.983 -- -- Accumulation Unit Value at end of period $10.596 $10.307 $10.040 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1,186 456 62 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.269 $10.024 $9.980 -- -- Accumulation Unit Value at end of period $10.537 $10.269 $10.024 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 99 50 11 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.251 $10.016 $9.978 -- -- Accumulation Unit Value at end of period $10.507 $10.251 $10.016 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 341 109 38 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.241 $10.012 $9.978 -- -- Accumulation Unit Value at end of period $10.493 $10.241 $10.012 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2,215 725 99 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.214 $10.000 $9.975 -- -- Accumulation Unit Value at end of period $10.448 $10.214 $10.000 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 749 305 83 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.214 $10.000 $9.975 -- -- Accumulation Unit Value at end of period $10.448 $10.214 $10.000 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 749 305 83 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $10.186 $9.988 $9.973 -- -- Accumulation Unit Value at end of period $10.404 $10.186 $9.988 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 450 126 41 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.158 $9.975 $9.971 -- -- Accumulation Unit Value at end of period $10.361 $10.158 $9.975 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 221 76 9 -- -- MFS(R) RESEARCH INTERNATIONAL SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.847 $11.985 $10.019 -- -- Accumulation Unit Value at end of period $16.527 $14.847 $11.985 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 506 118 25 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.798 $11.969 $10.019 -- -- Accumulation Unit Value at end of period $16.439 $14.798 $11.969 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 35 23 5 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.773 $11.961 $10.019 -- -- Accumulation Unit Value at end of period $16.395 $14.773 $11.961 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 150 76 20 -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.761 $11.957 $10.019 -- -- Accumulation Unit Value at end of period $16.373 $14.761 $11.957 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 802 288 14 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.724 $11.945 $10.018 -- -- Accumulation Unit Value at end of period $16.307 $14.724 $11.945 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 389 192 83 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.724 $11.945 $10.018 -- -- Accumulation Unit Value at end of period $16.307 $14.724 $11.945 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 389 192 83 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $14.687 $11.933 $10.018 -- -- Accumulation Unit Value at end of period $16.242 $14.687 $11.933 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 282 163 5 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.650 $11.921 $10.018 -- -- Accumulation Unit Value at end of period $16.177 $14.650 $11.921 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 133 58 22 -- -- MFS(R) RESEARCH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.572 $10.617 $9.472 -- -- Accumulation Unit Value at end of period $12.925 $11.572 $10.617 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 368 140 48 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.530 $10.599 $9.469 -- -- Accumulation Unit Value at end of period $12.851 $11.530 $10.599 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 8 2 -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.508 $10.590 $9.468 -- -- Accumulation Unit Value at end of period $12.815 $11.508 $10.590 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 68 36 21 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.498 $10.586 $9.467 -- -- Accumulation Unit Value at end of period $12.797 $11.498 $10.586 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 180 79 17 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.466 $10.573 $9.464 -- -- Accumulation Unit Value at end of period $12.742 $11.466 $10.573 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 296 163 33 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.466 $10.573 $9.464 -- -- Accumulation Unit Value at end of period $12.742 $11.466 $10.573 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 296 163 33 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.435 $10.559 $9.462 -- -- Accumulation Unit Value at end of period $12.688 $11.435 $10.559 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 78 40 20 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.403 $10.546 $9.459 -- -- Accumulation Unit Value at end of period $12.634 $11.403 $10.546 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 30 12 2 -- -- MFS(R) TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.523 $14.061 $13.861 $12.621 $11.713 Accumulation Unit Value at end of period $15.960 $15.523 $14.061 $13.861 $12.621 Number of Accumulation Units outstanding at end of period (in thousands) 9,927 6,316 3,478 1,549 357
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.290 $12.970 $12.812 $12.173 -- Accumulation Unit Value at end of period $14.663 $14.290 $12.970 $12.812 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,628 1,682 1,563 1,061 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.183 $12.886 $12.741 $11.636 $10.818 Accumulation Unit Value at end of period $14.539 $14.183 $12.886 $12.741 $11.636 Number of Accumulation Units outstanding at end of period (in thousands) 5,780 6,059 6,636 6,178 5,267 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.429 $12.207 $12.076 $11.034 $10.261 Accumulation Unit Value at end of period $13.759 $13.429 $12.207 $12.076 $11.034 Number of Accumulation Units outstanding at end of period (in thousands) 19,439 15,381 12,403 11,042 8,862 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.303 $12.111 $11.999 $11.406 -- Accumulation Unit Value at end of period $13.610 $13.303 $12.111 $11.999 -- Number of Accumulation Units outstanding at end of period (in thousands) 9,822 9,376 8,099 4,773 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.303 $12.111 $11.999 $11.126 -- Accumulation Unit Value at end of period $13.610 $13.303 $12.111 $11.999 -- Number of Accumulation Units outstanding at end of period (in thousands) 9,822 9,376 8,099 4,773 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.864 $12.641 $12.543 $11.495 $10.708 Accumulation Unit Value at end of period $14.163 $13.864 $12.641 $12.543 $11.495 Number of Accumulation Units outstanding at end of period (in thousands) 6,550 7,050 7,525 7,408 6,700 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.773 $12.576 $12.497 $11.620 -- Accumulation Unit Value at end of period $14.048 $13.773 $12.576 $12.497 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,400 4,321 4,513 3,232 -- MFS(R) VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.453 $14.639 $13.912 $12.242 $10.607 Accumulation Unit Value at end of period $18.581 $17.453 $14.639 $13.912 $12.242 Number of Accumulation Units outstanding at end of period (in thousands) 1,861 949 383 135 43 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.325 $14.561 $13.865 $12.892 -- Accumulation Unit Value at end of period $18.408 $17.325 $14.561 $13.865 -- Number of Accumulation Units outstanding at end of period (in thousands) 189 134 68 10 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $17.262 $14.522 $13.842 $12.218 $10.604 Accumulation Unit Value at end of period $18.322 $17.262 $14.522 $13.842 $12.218 Number of Accumulation Units outstanding at end of period (in thousands) 682 528 355 244 72 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $17.230 $14.503 $13.831 $12.214 $10.604 Accumulation Unit Value at end of period $18.279 $17.230 $14.503 $13.831 $12.214 Number of Accumulation Units outstanding at end of period (in thousands) 3,134 1,544 726 479 204 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.136 $14.445 $13.796 $12.834 -- Accumulation Unit Value at end of period $18.152 $17.136 $14.445 $13.796 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,424 876 484 234 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $17.136 $14.445 $13.796 $12.330 -- Accumulation Unit Value at end of period $18.152 $17.136 $14.445 $13.796 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,424 876 484 234 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $17.042 $14.387 $13.761 $12.189 $10.601 Accumulation Unit Value at end of period $18.025 $17.042 $14.387 $13.761 $12.189 Number of Accumulation Units outstanding at end of period (in thousands) 1,136 790 542 411 216
108 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.948 $14.330 $13.727 $12.302 -- Accumulation Unit Value at end of period $17.899 $16.948 $14.330 $13.727 -- Number of Accumulation Units outstanding at end of period (in thousands) 601 499 404 284 -- MUTUAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $20.136 $16.585 $14.496 $12.431 $10.546 Accumulation Unit Value at end of period $22.220 $20.136 $16.585 $14.496 $12.431 Number of Accumulation Units outstanding at end of period (in thousands) 3,781 2,145 959 239 58 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.988 $16.497 $14.448 $13.344 -- Accumulation Unit Value at end of period $22.013 $19.988 $16.497 $14.448 -- Number of Accumulation Units outstanding at end of period (in thousands) 371 294 198 17 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $19.915 $16.453 $14.424 $12.407 $10.543 Accumulation Unit Value at end of period $21.911 $19.915 $16.453 $14.424 $12.407 Number of Accumulation Units outstanding at end of period (in thousands) 1,481 1,299 993 480 126 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $19.879 $16.431 $14.412 $12.402 $10.542 Accumulation Unit Value at end of period $21.859 $19.879 $16.431 $14.412 $12.402 Number of Accumulation Units outstanding at end of period (in thousands) 6,390 3,646 1,754 943 359 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.770 $16.366 $14.376 $13.283 -- Accumulation Unit Value at end of period $21.707 $19.770 $16.366 $14.376 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,858 2,449 1,772 538 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.770 $16.366 $14.376 $12.549 -- Accumulation Unit Value at end of period $21.707 $19.770 $16.366 $14.376 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,858 2,449 1,772 538 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $19.661 $16.300 $14.340 $12.377 $10.539 Accumulation Unit Value at end of period $21.555 $19.661 $16.300 $14.340 $12.377 Number of Accumulation Units outstanding at end of period (in thousands) 1,925 1,473 1,128 638 323 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.553 $16.235 $14.304 $12.521 -- Accumulation Unit Value at end of period $21.405 $19.553 $16.235 $14.304 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,293 1,194 1,167 453 -- MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.484 $16.683 $15.295 $13.764 $12.081 Accumulation Unit Value at end of period $19.892 $19.484 $16.683 $15.295 $13.764 Number of Accumulation Units outstanding at end of period (in thousands) 8,185 5,008 2,738 1,145 260 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.320 $14.859 $13.651 $12.732 -- Accumulation Unit Value at end of period $17.647 $17.320 $14.859 $13.651 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,556 1,524 1,298 817 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $17.191 $14.763 $13.576 $12.254 $10.774 Accumulation Unit Value at end of period $17.498 $17.191 $14.763 $13.576 $12.254 Number of Accumulation Units outstanding at end of period (in thousands) 6,057 6,545 6,334 5,658 4,507 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $16.495 $14.173 $13.040 $11.776 $10.357 Accumulation Unit Value at end of period $16.782 $16.495 $14.173 $13.040 $11.776 Number of Accumulation Units outstanding at end of period (in thousands) 21,739 15,947 11,562 10,001 7,652 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.342 $14.062 $12.957 $12.090 -- Accumulation Unit Value at end of period $16.600 $16.342 $14.062 $12.957 -- Number of Accumulation Units outstanding at end of period (in thousands) 9,098 8,358 6,872 4,081 --
109 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.342 $14.062 $12.957 $11.842 -- Accumulation Unit Value at end of period $16.600 $16.342 $14.062 $12.957 -- Number of Accumulation Units outstanding at end of period (in thousands) 9,098 8,358 6,872 4,081 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $16.805 $14.482 $13.364 $12.105 $10.665 Accumulation Unit Value at end of period $17.045 $16.805 $14.482 $13.364 $12.105 Number of Accumulation Units outstanding at end of period (in thousands) 7,090 7,282 6,967 6,982 5,838 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.694 $14.408 $13.316 $12.204 -- Accumulation Unit Value at end of period $16.907 $16.694 $14.408 $13.316 -- Number of Accumulation Units outstanding at end of period (in thousands) 4,197 4,035 4,064 2,935 -- TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.737 $18.733 $14.862 $12.067 $8.935 Accumulation Unit Value at end of period $30.230 $23.737 $18.733 $14.862 $12.067 Number of Accumulation Units outstanding at end of period (in thousands) 817 608 418 219 48 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $20.355 $16.096 $12.796 $11.432 -- Accumulation Unit Value at end of period $25.871 $20.355 $16.096 $12.796 -- Number of Accumulation Units outstanding at end of period (in thousands) 192 206 200 168 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $20.203 $15.992 $12.725 $10.363 $7.687 Accumulation Unit Value at end of period $25.652 $20.203 $15.992 $12.725 $10.363 Number of Accumulation Units outstanding at end of period (in thousands) 652 720 675 440 316 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $24.326 $19.265 $15.338 $12.497 $9.273 Accumulation Unit Value at end of period $30.872 $24.326 $19.265 $15.338 $12.497 Number of Accumulation Units outstanding at end of period (in thousands) 1,760 1,331 890 613 350 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $24.099 $19.114 $15.240 $13.623 -- Accumulation Unit Value at end of period $30.539 $24.099 $19.114 $15.240 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,186 1,044 824 356 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $24.099 $19.114 $15.240 $12.800 -- Accumulation Unit Value at end of period $30.539 $24.099 $19.114 $15.240 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,186 1,044 824 356 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $19.749 $15.687 $12.527 $10.237 $7.609 Accumulation Unit Value at end of period $24.989 $19.749 $15.687 $12.527 $10.237 Number of Accumulation Units outstanding at end of period (in thousands) 822 812 755 446 315 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.618 $15.607 $12.481 $10.512 -- Accumulation Unit Value at end of period $24.786 $19.618 $15.607 $12.481 -- Number of Accumulation Units outstanding at end of period (in thousands) 640 617 668 233 -- TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.502 $12.104 $11.136 $9.523 $7.775 Accumulation Unit Value at end of period $16.519 $14.502 $12.104 $11.136 $9.523 Number of Accumulation Units outstanding at end of period (in thousands) 4,579 3,897 2,501 1,328 105 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.759 $11.506 $10.607 $9.671 -- Accumulation Unit Value at end of period $15.642 $13.759 $11.506 $10.607 -- Number of Accumulation Units outstanding at end of period (in thousands) 893 844 642 217 --
110 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.656 $11.432 $10.549 $9.048 $7.401 Accumulation Unit Value at end of period $15.509 $13.656 $11.432 $10.549 $9.048 Number of Accumulation Units outstanding at end of period (in thousands) 2,376 2,536 2,492 1,933 729 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.081 $10.956 $10.115 $8.680 $7.102 Accumulation Unit Value at end of period $14.848 $13.081 $10.956 $10.115 $8.680 Number of Accumulation Units outstanding at end of period (in thousands) 8,394 7,550 5,638 4,445 1,781 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.959 $10.870 $10.051 $9.168 -- Accumulation Unit Value at end of period $14.688 $12.959 $10.870 $10.051 -- Number of Accumulation Units outstanding at end of period (in thousands) 5,998 6,308 5,726 3,406 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.959 $10.870 $10.051 $8.822 -- Accumulation Unit Value at end of period $14.688 $12.959 $10.870 $10.051 -- Number of Accumulation Units outstanding at end of period (in thousands) 5,998 6,308 5,726 3,406 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.349 $11.214 $10.385 $8.938 $7.326 Accumulation Unit Value at end of period $15.108 $13.349 $11.214 $10.385 $8.938 Number of Accumulation Units outstanding at end of period (in thousands) 2,881 2,789 2,559 2,336 1,301 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.261 $11.157 $10.347 $9.107 -- Accumulation Unit Value at end of period $14.985 $13.261 $11.157 $10.347 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,301 3,665 3,865 2,813 -- TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.068 $14.202 $13.223 $11.552 $9.590 Accumulation Unit Value at end of period $17.234 $17.068 $14.202 $13.223 $11.552 Number of Accumulation Units outstanding at end of period (in thousands) 6,181 3,876 2,176 849 167 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.798 $13.172 $12.289 $11.312 -- Accumulation Unit Value at end of period $15.920 $15.798 $13.172 $12.289 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,095 1,059 858 330 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.680 $13.087 $12.221 $10.708 $8.905 Accumulation Unit Value at end of period $15.785 $15.680 $13.087 $12.221 $10.708 Number of Accumulation Units outstanding at end of period (in thousands) 3,116 3,386 3,293 2,567 1,647 WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.486 $12.932 $12.082 $10.592 $8.811 Accumulation Unit Value at end of period $15.583 $15.486 $12.932 $12.082 $10.592 Number of Accumulation Units outstanding at end of period (in thousands) 14,543 10,310 6,490 4,246 2,366 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.342 $12.830 $12.006 $11.057 -- Accumulation Unit Value at end of period $15.414 $15.342 $12.830 $12.006 -- Number of Accumulation Units outstanding at end of period (in thousands) 6,247 5,774 4,766 2,114 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.342 $12.830 $12.006 $10.750 -- Accumulation Unit Value at end of period $15.414 $15.342 $12.830 $12.006 -- Number of Accumulation Units outstanding at end of period (in thousands) 6,247 5,774 4,766 2,114 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $15.328 $12.838 $12.031 $10.578 $8.815 Accumulation Unit Value at end of period $15.377 $15.328 $12.838 $12.031 $10.578 Number of Accumulation Units outstanding at end of period (in thousands) 3,821 3,629 3,349 3,108 2,385 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.227 $12.772 $11.987 $10.763 -- Accumulation Unit Value at end of period $15.252 $15.227 $12.772 $11.987 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,847 3,021 3,014 1,923 --
111 ------------------------------------------------------------------------------- SERIES III
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- AIM V.I. BASIC VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.515 $1.357 $1.247 Accumulation Unit Value at end of period $1.518 $1.515 $1.357 Number of Accumulation Units outstanding at end of period (in thousands) 6,608 6,195 4,992 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.498 $1.344 $1.237 Accumulation Unit Value at end of period $1.498 $1.498 $1.344 Number of Accumulation Units outstanding at end of period (in thousands) 1,542 1,659 1,662 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.490 $1.338 $1.232 Accumulation Unit Value at end of period $1.489 $1.490 $1.338 Number of Accumulation Units outstanding at end of period (in thousands) 8,743 10,297 11,385 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.475 $1.327 $1.223 Accumulation Unit Value at end of period $1.470 $1.475 $1.327 Number of Accumulation Units outstanding at end of period (in thousands) 11,052 13,253 14,110 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.475 $1.327 $1.223 Accumulation Unit Value at end of period $1.470 $1.475 $1.327 Number of Accumulation Units outstanding at end of period (in thousands) 11,052 13,253 14,110 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.453 $1.312 $1.212 Accumulation Unit Value at end of period $1.444 $1.453 $1.312 Number of Accumulation Units outstanding at end of period (in thousands) 8,096 8,457 10,129 AIM V.I. CAPITAL APPRECIATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.419 $1.353 $1.175 Accumulation Unit Value at end of period $1.568 $1.419 $1.353 Number of Accumulation Units outstanding at end of period (in thousands) 2,809 2,651 789 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.403 $1.341 $1.165 Accumulation Unit Value at end of period $1.547 $1.403 $1.341 Number of Accumulation Units outstanding at end of period (in thousands) 632 939 402 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.396 $1.335 $1.161 Accumulation Unit Value at end of period $1.538 $1.396 $1.335 Number of Accumulation Units outstanding at end of period (in thousands) 4,548 5,294 2,155 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.381 $1.323 $1.153 Accumulation Unit Value at end of period $1.519 $1.381 $1.323 Number of Accumulation Units outstanding at end of period (in thousands) 7,718 8,382 2,645 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.381 $1.323 $1.153 Accumulation Unit Value at end of period $1.519 $1.381 $1.323 Number of Accumulation Units outstanding at end of period (in thousands) 7,718 8,382 2,645 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.361 $1.308 $1.142 Accumulation Unit Value at end of period $1.492 $1.361 $1.308 Number of Accumulation Units outstanding at end of period (in thousands) 3,914 4,407 1,710 AIM V.I. CAPITAL DEVELOPMENT FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.553 -- -- (a) Accumulation Unit Value at end of period $9.789 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.550 -- -- (a) Accumulation Unit Value at end of period $9.784 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.549 -- -- (a) Accumulation Unit Value at end of period $9.781 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.546 -- -- (a) Accumulation Unit Value at end of period $9.775 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.546 -- -- (a) Accumulation Unit Value at end of period $9.775 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.542 -- -- (a) Accumulation Unit Value at end of period $9.767 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- AIM V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.863 $10.303 $9.632 Accumulation Unit Value at end of period $12.654 $11.863 $10.303 Number of Accumulation Units outstanding at end of period (in thousands) 2,217 2,337 10 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.819 $10.286 $9.628 Accumulation Unit Value at end of period $12.582 $11.819 $10.286 Number of Accumulation Units outstanding at end of period (in thousands) 497 524 1 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.798 $10.277 $9.627 Accumulation Unit Value at end of period $12.547 $11.798 $10.277 Number of Accumulation Units outstanding at end of period (in thousands) 1,396 1,557 5 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.754 $10.260 $9.623 Accumulation Unit Value at end of period $12.476 $11.754 $10.260 Number of Accumulation Units outstanding at end of period (in thousands) 3,648 4,063 35 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.754 $10.260 $9.623 Accumulation Unit Value at end of period $12.476 $11.754 $10.260 Number of Accumulation Units outstanding at end of period (in thousands) 3,648 4,063 35 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.690 $10.234 $9.618 Accumulation Unit Value at end of period $12.370 $11.690 $10.234 Number of Accumulation Units outstanding at end of period (in thousands) 2,511 2,770 4 AIM V.I. GOVERNMENT SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $1.095 $1.092 Accumulation Unit Value at end of period $1.174 $1.119 $1.095 Number of Accumulation Units outstanding at end of period (in thousands) 73,021 44,385 23,647 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.106 $1.085 $1.084 Accumulation Unit Value at end of period $1.158 $1.106 $1.085 Number of Accumulation Units outstanding at end of period (in thousands) 11,962 9,739 7,203 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.100 $1.080 $1.080 Accumulation Unit Value at end of period $1.151 $1.100 $1.080 Number of Accumulation Units outstanding at end of period (in thousands) 32,443 26,808 26,304
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.089 $1.071 $1.072 Accumulation Unit Value at end of period $1.137 $1.089 $1.071 Number of Accumulation Units outstanding at end of period (in thousands) 71,648 58,221 48,350 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.089 $1.071 $1.072 Accumulation Unit Value at end of period $1.137 $1.089 $1.071 Number of Accumulation Units outstanding at end of period (in thousands) 71,648 58,221 48,350 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.073 $1.059 $1.062 Accumulation Unit Value at end of period $1.117 $1.073 $1.059 Number of Accumulation Units outstanding at end of period (in thousands) 42,275 37,566 37,527 AIM V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.102 $1.662 $1.397 Accumulation Unit Value at end of period $2.379 $2.102 $1.662 Number of Accumulation Units outstanding at end of period (in thousands) 12,825 3,283 1,186 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.079 $1.646 $1.386 Accumulation Unit Value at end of period $2.348 $2.079 $1.646 Number of Accumulation Units outstanding at end of period (in thousands) 816 499 396 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $2.068 $1.639 $1.381 Accumulation Unit Value at end of period $2.333 $2.068 $1.639 Number of Accumulation Units outstanding at end of period (in thousands) 4,698 3,146 2,228 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.046 $1.625 $1.371 Accumulation Unit Value at end of period $2.304 $2.046 $1.625 Number of Accumulation Units outstanding at end of period (in thousands) 9,741 5,735 3,816 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.046 $1.625 $1.371 Accumulation Unit Value at end of period $2.304 $2.046 $1.625 Number of Accumulation Units outstanding at end of period (in thousands) 9,741 5,735 3,816 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.016 $1.607 $1.358 Accumulation Unit Value at end of period $2.264 $2.016 $1.607 Number of Accumulation Units outstanding at end of period (in thousands) 4,062 2,836 2,195 AIM V.I. LARGE CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.474 $10.764 $9.456 Accumulation Unit Value at end of period $13.091 $11.474 $10.764 Number of Accumulation Units outstanding at end of period (in thousands) 198 166 2 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.432 $10.746 $9.453 Accumulation Unit Value at end of period $13.017 $11.432 $10.746 Number of Accumulation Units outstanding at end of period (in thousands) 78 58 2 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.411 $10.737 $9.451 Accumulation Unit Value at end of period $12.980 $11.411 $10.737 Number of Accumulation Units outstanding at end of period (in thousands) 263 283 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.369 $10.719 $9.448 Accumulation Unit Value at end of period $12.907 $11.369 $10.719 Number of Accumulation Units outstanding at end of period (in thousands) 290 286 38
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.369 $10.719 $9.448 Accumulation Unit Value at end of period $12.907 $11.369 $10.719 Number of Accumulation Units outstanding at end of period (in thousands) 290 286 38 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.307 $10.692 $9.443 Accumulation Unit Value at end of period $12.797 $11.307 $10.692 Number of Accumulation Units outstanding at end of period (in thousands) 266 210 7 AIM V.I. MID CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.663 $1.515 $1.395 Accumulation Unit Value at end of period $1.797 $1.663 $1.515 Number of Accumulation Units outstanding at end of period (in thousands) 11,271 8,186 6,356 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.644 $1.501 $1.383 Accumulation Unit Value at end of period $1.773 $1.644 $1.501 Number of Accumulation Units outstanding at end of period (in thousands) 2,701 2,769 2,995 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.635 $1.495 $1.378 Accumulation Unit Value at end of period $1.762 $1.635 $1.495 Number of Accumulation Units outstanding at end of period (in thousands) 12,288 13,389 14,960 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.618 $1.482 $1.369 Accumulation Unit Value at end of period $1.740 $1.618 $1.482 Number of Accumulation Units outstanding at end of period (in thousands) 15,280 14,353 15,511 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.618 $1.482 $1.369 Accumulation Unit Value at end of period $1.740 $1.618 $1.482 Number of Accumulation Units outstanding at end of period (in thousands) 15,280 14,353 15,511 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.595 $1.465 $1.356 Accumulation Unit Value at end of period $1.710 $1.595 $1.465 Number of Accumulation Units outstanding at end of period (in thousands) 9,600 9,932 11,800 AIM V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.394 $12.423 $10.812 Accumulation Unit Value at end of period $14.937 $14.394 $12.423 Number of Accumulation Units outstanding at end of period (in thousands) 837 358 102 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.302 $12.368 $10.779 Accumulation Unit Value at end of period $14.812 $14.302 $12.368 Number of Accumulation Units outstanding at end of period (in thousands) 67 53 22 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.256 $12.341 $10.762 Accumulation Unit Value at end of period $14.750 $14.256 $12.341 Number of Accumulation Units outstanding at end of period (in thousands) 414 327 123 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.165 $12.287 $10.729 Accumulation Unit Value at end of period $14.626 $14.165 $12.287 Number of Accumulation Units outstanding at end of period (in thousands) 909 610 313 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.165 $12.287 $10.729 Accumulation Unit Value at end of period $14.626 $14.165 $12.287 Number of Accumulation Units outstanding at end of period (in thousands) 909 610 313 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.029 $12.205 $10.679 Accumulation Unit Value at end of period $14.443 $14.029 $12.205 Number of Accumulation Units outstanding at end of period (in thousands) 326 267 235
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- AMERICAN FUNDS ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.608 $12.913 $11.768 Accumulation Unit Value at end of period $15.357 $14.608 $12.913 Number of Accumulation Units outstanding at end of period (in thousands) 8,860 6,835 5,027 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.301 $11.781 $10.751 Accumulation Unit Value at end of period $13.955 $13.301 $11.781 Number of Accumulation Units outstanding at end of period (in thousands) 2,854 2,952 2,891 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.202 $11.705 $10.689 Accumulation Unit Value at end of period $13.836 $13.202 $11.705 Number of Accumulation Units outstanding at end of period (in thousands) 10,207 11,265 11,476 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.360 $11.869 $10.853 Accumulation Unit Value at end of period $13.974 $13.360 $11.869 Number of Accumulation Units outstanding at end of period (in thousands) 9,486 9,300 8,375 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.360 $11.869 $10.853 Accumulation Unit Value at end of period $13.974 $13.360 $11.869 Number of Accumulation Units outstanding at end of period (in thousands) 9,486 9,300 8,375 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.820 $11.424 $10.466 Accumulation Unit Value at end of period $13.369 $12.820 $11.424 Number of Accumulation Units outstanding at end of period (in thousands) 5,087 4,899 4,926 AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.222 $1.055 $0.956 Accumulation Unit Value at end of period $1.230 $1.222 $1.055 Number of Accumulation Units outstanding at end of period (in thousands) 67,641 55,180 39,979 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.208 $1.045 $0.948 Accumulation Unit Value at end of period $1.213 $1.208 $1.045 Number of Accumulation Units outstanding at end of period (in thousands) 16,818 17,576 17,788 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.201 $1.040 $0.944 Accumulation Unit Value at end of period $1.205 $1.201 $1.040 Number of Accumulation Units outstanding at end of period (in thousands) 68,553 74,980 76,680 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.188 $1.031 $0.937 Accumulation Unit Value at end of period $1.190 $1.188 $1.031 Number of Accumulation Units outstanding at end of period (in thousands) 71,928 73,628 66,704 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.188 $1.031 $0.937 Accumulation Unit Value at end of period $1.190 $1.188 $1.031 Number of Accumulation Units outstanding at end of period (in thousands) 71,928 73,628 66,704 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.170 $1.018 $0.927 Accumulation Unit Value at end of period $1.169 $1.170 $1.018 Number of Accumulation Units outstanding at end of period (in thousands) 39,063 40,200 39,846 AMERICAN FUNDS BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.281 $13.530 $13.310 Accumulation Unit Value at end of period $14.558 $14.281 $13.530 Number of Accumulation Units outstanding at end of period (in thousands) 5,995 3,880 2,438
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.872 $13.169 $12.972 Accumulation Unit Value at end of period $14.114 $13.872 $13.169 Number of Accumulation Units outstanding at end of period (in thousands) 1,505 1,438 1,340 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.769 $13.084 $12.897 Accumulation Unit Value at end of period $13.994 $13.769 $13.084 Number of Accumulation Units outstanding at end of period (in thousands) 5,860 6,010 6,387 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.147 $12.518 $12.356 Accumulation Unit Value at end of period $13.336 $13.147 $12.518 Number of Accumulation Units outstanding at end of period (in thousands) 5,949 5,418 4,944 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.147 $12.518 $12.356 Accumulation Unit Value at end of period $13.336 $13.147 $12.518 Number of Accumulation Units outstanding at end of period (in thousands) 5,949 5,418 4,944 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.371 $12.769 $12.629 Accumulation Unit Value at end of period $13.522 $13.371 $12.769 Number of Accumulation Units outstanding at end of period (in thousands) 3,400 3,215 3,197 AMERICAN FUNDS GLOBAL BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.207 $10.028 -- Accumulation Unit Value at end of period $10.999 $10.207 -- Number of Accumulation Units outstanding at end of period (in thousands) 929 123 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.202 $10.026 -- Accumulation Unit Value at end of period $10.972 $10.202 -- Number of Accumulation Units outstanding at end of period (in thousands) 98 35 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.199 $10.025 -- Accumulation Unit Value at end of period $10.958 $10.199 -- Number of Accumulation Units outstanding at end of period (in thousands) 292 71 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.194 $10.023 -- Accumulation Unit Value at end of period $10.931 $10.194 -- Number of Accumulation Units outstanding at end of period (in thousands) 521 93 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.194 $10.023 -- Accumulation Unit Value at end of period $10.931 $10.194 -- Number of Accumulation Units outstanding at end of period (in thousands) 521 93 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.187 $10.021 -- Accumulation Unit Value at end of period $10.890 $10.187 -- Number of Accumulation Units outstanding at end of period (in thousands) 308 48 -- AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.921 $9.990 -- Accumulation Unit Value at end of period $12.140 $10.921 -- Number of Accumulation Units outstanding at end of period (in thousands) 7,322 2,278 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.905 $9.989 -- Accumulation Unit Value at end of period $12.097 $10.905 -- Number of Accumulation Units outstanding at end of period (in thousands) 479 201 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.897 $9.988 -- Accumulation Unit Value at end of period $12.076 $10.897 -- Number of Accumulation Units outstanding at end of period (in thousands) 2,020 815 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.881 $9.987 -- Accumulation Unit Value at end of period $12.034 $10.881 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,228 1,545 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.881 $9.987 -- Accumulation Unit Value at end of period $12.034 $10.881 -- Number of Accumulation Units outstanding at end of period (in thousands) 3,228 1,545 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.856 $9.985 -- Accumulation Unit Value at end of period $11.972 $10.856 -- Number of Accumulation Units outstanding at end of period (in thousands) 1,137 560 -- AMERICAN FUNDS GLOBAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.715 $13.227 $11.285 Accumulation Unit Value at end of period $17.807 $15.715 $13.227 Number of Accumulation Units outstanding at end of period (in thousands) 3,539 2,602 1,643 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.703 $13.243 $11.314 Accumulation Unit Value at end of period $17.757 $15.703 $13.243 Number of Accumulation Units outstanding at end of period (in thousands) 851 865 869 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.585 $13.157 $11.248 Accumulation Unit Value at end of period $17.607 $15.585 $13.157 Number of Accumulation Units outstanding at end of period (in thousands) 3,052 3,235 3,266 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.013 $10.161 $8.698 Accumulation Unit Value at end of period $13.543 $12.013 $10.161 Number of Accumulation Units outstanding at end of period (in thousands) 4,585 4,330 3,763 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.013 $10.161 $8.698 Accumulation Unit Value at end of period $13.543 $12.013 $10.161 Number of Accumulation Units outstanding at end of period (in thousands) 4,585 4,330 3,763 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.135 $12.841 $11.014 Accumulation Unit Value at end of period $17.012 $15.135 $12.841 Number of Accumulation Units outstanding at end of period (in thousands) 1,573 1,456 1,321 AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.960 $16.308 $13.174 Accumulation Unit Value at end of period $23.912 $19.960 $16.308 Number of Accumulation Units outstanding at end of period (in thousands) 2,024 1,410 858 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $21.000 $17.193 $13.907 Accumulation Unit Value at end of period $25.108 $21.000 $17.193 Number of Accumulation Units outstanding at end of period (in thousands) 364 383 397 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $20.843 $17.081 $13.826 Accumulation Unit Value at end of period $24.896 $20.843 $17.081 Number of Accumulation Units outstanding at end of period (in thousands) 1,517 1,547 1,535 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.282 $12.549 $10.171 Accumulation Unit Value at end of period $18.216 $15.282 $12.549 Number of Accumulation Units outstanding at end of period (in thousands) 3,260 3,005 2,605 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.282 $12.549 $10.171 Accumulation Unit Value at end of period $18.216 $15.282 $12.549 Number of Accumulation Units outstanding at end of period (in thousands) 3,260 3,005 2,605
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.241 $16.671 $13.538 Accumulation Unit Value at end of period $24.055 $20.241 $16.671 Number of Accumulation Units outstanding at end of period (in thousands) 1,344 1,225 1,308 AMERICAN FUNDS GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.955 $13.753 $11.567 Accumulation Unit Value at end of period $16.576 $14.955 $13.753 Number of Accumulation Units outstanding at end of period (in thousands) 21,794 14,681 8,675 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.287 $13.165 $11.088 Accumulation Unit Value at end of period $15.805 $14.287 $13.165 Number of Accumulation Units outstanding at end of period (in thousands) 4,673 4,883 4,837 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.181 $13.080 $11.023 Accumulation Unit Value at end of period $15.671 $14.181 $13.080 Number of Accumulation Units outstanding at end of period (in thousands) 17,290 18,524 19,458 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.792 $9.050 $7.637 Accumulation Unit Value at end of period $10.799 $9.792 $9.050 Number of Accumulation Units outstanding at end of period (in thousands) 34,759 33,246 28,889 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.792 $9.050 $7.637 Accumulation Unit Value at end of period $10.799 $9.792 $9.050 Number of Accumulation Units outstanding at end of period (in thousands) 34,759 33,246 28,889 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.770 $12.765 $10.794 Accumulation Unit Value at end of period $15.142 $13.770 $12.765 Number of Accumulation Units outstanding at end of period (in thousands) 12,822 13,143 13,600 AMERICAN FUNDS GROWTH-INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.692 $13.806 $12.649 Accumulation Unit Value at end of period $16.262 $15.692 $13.806 Number of Accumulation Units outstanding at end of period (in thousands) 22,677 15,912 9,763 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.853 $12.213 $11.204 Accumulation Unit Value at end of period $14.328 $13.853 $12.213 Number of Accumulation Units outstanding at end of period (in thousands) 5,987 6,223 6,116 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.750 $12.134 $11.139 Accumulation Unit Value at end of period $14.207 $13.750 $12.134 Number of Accumulation Units outstanding at end of period (in thousands) 17,696 19,476 20,433 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.798 $12.201 $11.216 Accumulation Unit Value at end of period $14.228 $13.798 $12.201 Number of Accumulation Units outstanding at end of period (in thousands) 25,475 24,685 21,755 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.798 $12.201 $11.216 Accumulation Unit Value at end of period $14.228 $13.798 $12.201 Number of Accumulation Units outstanding at end of period (in thousands) 25,475 24,685 21,755 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.352 $11.842 $10.908 Accumulation Unit Value at end of period $13.727 $13.352 $11.842 Number of Accumulation Units outstanding at end of period (in thousands) 14,288 14,895 15,290
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- AMERICAN FUNDS INTERNATIONAL FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.583 $13.275 $10.766 Accumulation Unit Value at end of period $18.452 $15.583 $13.275 Number of Accumulation Units outstanding at end of period (in thousands) 6,638 4,853 2,813 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.258 $13.878 $11.270 Accumulation Unit Value at end of period $19.213 $16.258 $13.878 Number of Accumulation Units outstanding at end of period (in thousands) 1,385 1,440 1,359 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $16.137 $13.788 $11.204 Accumulation Unit Value at end of period $19.051 $16.137 $13.788 Number of Accumulation Units outstanding at end of period (in thousands) 4,174 4,450 4,144 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.215 $10.458 $8.510 Accumulation Unit Value at end of period $14.392 $12.215 $10.458 Number of Accumulation Units outstanding at end of period (in thousands) 8,017 7,753 6,479 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.215 $10.458 $8.510 Accumulation Unit Value at end of period $14.392 $12.215 $10.458 Number of Accumulation Units outstanding at end of period (in thousands) 8,017 7,753 6,479 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.670 $13.457 $10.971 Accumulation Unit Value at end of period $18.408 $15.670 $13.457 Number of Accumulation Units outstanding at end of period (in thousands) 3,243 3,210 3,129 AMERICAN FUNDS NEW WORLD FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.315 $17.823 $14.766 Accumulation Unit Value at end of period $30.412 $23.315 $17.823 Number of Accumulation Units outstanding at end of period (in thousands) 1,664 1,045 563 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $21.829 $16.720 $13.871 Accumulation Unit Value at end of period $28.416 $21.829 $16.720 Number of Accumulation Units outstanding at end of period (in thousands) 322 323 280 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $21.665 $16.611 $13.790 Accumulation Unit Value at end of period $28.176 $21.665 $16.611 Number of Accumulation Units outstanding at end of period (in thousands) 1,124 1,137 1,047 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $20.273 $15.575 $12.947 Accumulation Unit Value at end of period $26.312 $20.273 $15.575 Number of Accumulation Units outstanding at end of period (in thousands) 1,638 1,360 1,135 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.273 $15.575 $12.947 Accumulation Unit Value at end of period $26.312 $20.273 $15.575 Number of Accumulation Units outstanding at end of period (in thousands) 1,638 1,360 1,135 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $21.039 $16.212 $13.503 Accumulation Unit Value at end of period $27.225 $21.039 $16.212 Number of Accumulation Units outstanding at end of period (in thousands) 824 693 604 FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.878 $10.480 $9.408 Accumulation Unit Value at end of period $12.269 $10.878 $10.480 Number of Accumulation Units outstanding at end of period (in thousands) 545 378 108
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.838 $10.463 $9.405 Accumulation Unit Value at end of period $12.200 $10.838 $10.463 Number of Accumulation Units outstanding at end of period (in thousands) 68 63 34 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.818 $10.454 $9.404 Accumulation Unit Value at end of period $12.165 $10.818 $10.454 Number of Accumulation Units outstanding at end of period (in thousands) 149 52 19 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.778 $10.437 $9.400 Accumulation Unit Value at end of period $12.096 $10.778 $10.437 Number of Accumulation Units outstanding at end of period (in thousands) 411 333 204 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.778 $10.437 $9.400 Accumulation Unit Value at end of period $12.096 $10.778 $10.437 Number of Accumulation Units outstanding at end of period (in thousands) 411 333 204 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.719 $10.411 $9.396 Accumulation Unit Value at end of period $11.994 $10.719 $10.411 Number of Accumulation Units outstanding at end of period (in thousands) 62 50 32 FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.791 $13.537 $13.057 Accumulation Unit Value at end of period $16.165 $15.791 $13.537 Number of Accumulation Units outstanding at end of period (in thousands) 18,719 10,651 5,384 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.637 $13.431 $12.973 Accumulation Unit Value at end of period $15.975 $15.637 $13.431 Number of Accumulation Units outstanding at end of period (in thousands) 2,143 1,904 1,431 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.564 $13.382 $12.934 Accumulation Unit Value at end of period $15.884 $15.564 $13.382 Number of Accumulation Units outstanding at end of period (in thousands) 7,494 6,794 6,192 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.419 $13.284 $12.856 Accumulation Unit Value at end of period $15.705 $15.419 $13.284 Number of Accumulation Units outstanding at end of period (in thousands) 15,038 13,232 10,487 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.419 $13.284 $12.856 Accumulation Unit Value at end of period $15.705 $15.419 $13.284 Number of Accumulation Units outstanding at end of period (in thousands) 15,038 13,232 10,487 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.211 $13.144 $12.746 Accumulation Unit Value at end of period $15.446 $15.211 $13.144 Number of Accumulation Units outstanding at end of period (in thousands) 6,167 5,986 6,083 FRANKLIN LARGE CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.066 $11.029 $10.613 Accumulation Unit Value at end of period $12.646 $12.066 $11.029 Number of Accumulation Units outstanding at end of period (in thousands) 1,911 1,569 928 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.948 $10.942 $10.544 Accumulation Unit Value at end of period $12.497 $11.948 $10.942 Number of Accumulation Units outstanding at end of period (in thousands) 334 326 224 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.893 $10.902 $10.512 Accumulation Unit Value at end of period $12.427 $11.893 $10.902 Number of Accumulation Units outstanding at end of period (in thousands) 868 914 878
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.782 $10.823 $10.449 Accumulation Unit Value at end of period $12.287 $11.782 $10.823 Number of Accumulation Units outstanding at end of period (in thousands) 2,236 2,303 1,951 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.782 $10.823 $10.449 Accumulation Unit Value at end of period $12.287 $11.782 $10.823 Number of Accumulation Units outstanding at end of period (in thousands) 2,236 2,303 1,951 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.622 $10.708 $10.359 Accumulation Unit Value at end of period $12.084 $11.622 $10.708 Number of Accumulation Units outstanding at end of period (in thousands) 1,362 1,472 1,481 FRANKLIN LARGE CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.824 $10.315 $9.708 Accumulation Unit Value at end of period $11.634 $11.824 $10.315 Number of Accumulation Units outstanding at end of period (in thousands) 349 185 58 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.780 $10.297 $9.704 Accumulation Unit Value at end of period $11.569 $11.780 $10.297 Number of Accumulation Units outstanding at end of period (in thousands) 49 38 22 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.759 $10.289 $9.703 Accumulation Unit Value at end of period $11.536 $11.759 $10.289 Number of Accumulation Units outstanding at end of period (in thousands) 141 81 35 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.716 $10.272 $9.699 Accumulation Unit Value at end of period $11.471 $11.716 $10.272 Number of Accumulation Units outstanding at end of period (in thousands) 164 132 88 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.716 $10.272 $9.699 Accumulation Unit Value at end of period $11.471 $11.716 $10.272 Number of Accumulation Units outstanding at end of period (in thousands) 164 132 88 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.651 $10.246 $9.695 Accumulation Unit Value at end of period $11.374 $11.651 $10.246 Number of Accumulation Units outstanding at end of period (in thousands) 99 29 11 FRANKLIN RISING DIVIDENDS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.628 $13.525 $12.810 Accumulation Unit Value at end of period $15.004 $15.628 $13.525 Number of Accumulation Units outstanding at end of period (in thousands) 9,602 5,616 2,468 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.514 $13.453 $12.759 Accumulation Unit Value at end of period $14.865 $15.514 $13.453 Number of Accumulation Units outstanding at end of period (in thousands) 813 777 548 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.457 $13.417 $12.734 Accumulation Unit Value at end of period $14.795 $15.457 $13.417 Number of Accumulation Units outstanding at end of period (in thousands) 3,017 2,775 2,205 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.344 $13.345 $12.683 Accumulation Unit Value at end of period $14.658 $15.344 $13.345 Number of Accumulation Units outstanding at end of period (in thousands) 7,375 6,669 4,897 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.344 $13.345 $12.683 Accumulation Unit Value at end of period $14.658 $15.344 $13.345 Number of Accumulation Units outstanding at end of period (in thousands) 7,375 6,669 4,897
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.176 $13.239 $12.607 Accumulation Unit Value at end of period $14.454 $15.176 $13.239 Number of Accumulation Units outstanding at end of period (in thousands) 2,833 3,074 2,842 FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.254 -- -- (a) Accumulation Unit Value at end of period $9.253 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 7 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.251 -- -- (a) Accumulation Unit Value at end of period $9.248 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.250 -- -- (a) Accumulation Unit Value at end of period $9.246 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.247 -- -- (a) Accumulation Unit Value at end of period $9.240 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 4 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.247 -- -- (a) Accumulation Unit Value at end of period $9.240 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 4 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.243 -- -- (a) Accumulation Unit Value at end of period $9.233 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.943 $12.070 $10.504 Accumulation Unit Value at end of period $14.205 $12.943 $12.070 Number of Accumulation Units outstanding at end of period (in thousands) 1,799 1,096 688 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.406 $12.526 $10.915 Accumulation Unit Value at end of period $14.683 $13.406 $12.526 Number of Accumulation Units outstanding at end of period (in thousands) 498 551 557 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.305 $12.445 $10.852 Accumulation Unit Value at end of period $14.559 $13.305 $12.445 Number of Accumulation Units outstanding at end of period (in thousands) 1,713 1,889 1,963 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $7.646 $7.166 $6.257 Accumulation Unit Value at end of period $8.350 $7.646 $7.166 Number of Accumulation Units outstanding at end of period (in thousands) 3,543 3,280 2,674 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.646 $7.166 $6.257 Accumulation Unit Value at end of period $8.350 $7.646 $7.166 Number of Accumulation Units outstanding at end of period (in thousands) 3,543 3,280 2,674 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.920 $12.145 $10.626 Accumulation Unit Value at end of period $14.067 $12.920 $12.145 Number of Accumulation Units outstanding at end of period (in thousands) 1,053 896 979
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.961 $14.910 $14.583 Accumulation Unit Value at end of period $16.724 $15.961 $14.910 Number of Accumulation Units outstanding at end of period (in thousands) 3,680 2,423 1,394 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.392 $14.407 $14.110 Accumulation Unit Value at end of period $16.095 $15.392 $14.407 Number of Accumulation Units outstanding at end of period (in thousands) 662 635 585 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.277 $14.314 $14.027 Accumulation Unit Value at end of period $15.959 $15.277 $14.314 Number of Accumulation Units outstanding at end of period (in thousands) 2,433 2,382 2,394 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.539 $13.650 $13.395 Accumulation Unit Value at end of period $15.158 $14.539 $13.650 Number of Accumulation Units outstanding at end of period (in thousands) 3,268 2,932 2,536 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.539 $13.650 $13.395 Accumulation Unit Value at end of period $15.158 $14.539 $13.650 Number of Accumulation Units outstanding at end of period (in thousands) 3,268 2,932 2,536 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.835 $13.970 $13.736 Accumulation Unit Value at end of period $15.420 $14.835 $13.970 Number of Accumulation Units outstanding at end of period (in thousands) 1,826 1,827 1,845 HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.129 $1.093 $1.080 Accumulation Unit Value at end of period $1.169 $1.129 $1.093 Number of Accumulation Units outstanding at end of period (in thousands) 36,410 20,188 6,654 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.118 $1.084 $1.073 Accumulation Unit Value at end of period $1.155 $1.118 $1.084 Number of Accumulation Units outstanding at end of period (in thousands) 8,488 7,071 4,007 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.110 $1.077 $1.067 Accumulation Unit Value at end of period $1.145 $1.110 $1.077 Number of Accumulation Units outstanding at end of period (in thousands) 37,299 30,252 26,062 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.044 $1.016 $1.007 Accumulation Unit Value at end of period $1.076 $1.044 $1.016 Number of Accumulation Units outstanding at end of period (in thousands) 47,059 27,480 16,896 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.044 $1.016 $1.007 Accumulation Unit Value at end of period $1.076 $1.044 $1.016 Number of Accumulation Units outstanding at end of period (in thousands) 47,059 27,480 16,896 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $1.052 $1.045 Accumulation Unit Value at end of period $1.107 $1.078 $1.052 Number of Accumulation Units outstanding at end of period (in thousands) 28,706 15,931 11,174 MFS(R) EMERGING GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.679 $8.153 $6.894 Accumulation Unit Value at end of period $10.375 $8.679 $8.153 Number of Accumulation Units outstanding at end of period (in thousands) 247 153 81
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 ------------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $8.486 $7.988 $6.763 Accumulation Unit Value at end of period $10.125 $8.486 $7.988 Number of Accumulation Units outstanding at end of period (in thousands) 263 302 363 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.423 $7.936 $6.724 Accumulation Unit Value at end of period $10.039 $8.423 $7.936 Number of Accumulation Units outstanding at end of period (in thousands) 498 556 710 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $5.558 $5.248 $4.452 Accumulation Unit Value at end of period $6.612 $5.558 $5.248 Number of Accumulation Units outstanding at end of period (in thousands) 662 442 475 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.558 $5.248 $4.452 Accumulation Unit Value at end of period $6.612 $5.558 $5.248 Number of Accumulation Units outstanding at end of period (in thousands) 662 442 475 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.179 $7.745 $6.584 Accumulation Unit Value at end of period $9.700 $8.179 $7.745 Number of Accumulation Units outstanding at end of period (in thousands) 261 189 189 MFS(R) GLOBAL EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.420 $13.378 $12.168 Accumulation Unit Value at end of period $17.689 $16.420 $13.378 Number of Accumulation Units outstanding at end of period (in thousands) 156 128 71 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.528 $12.677 $11.545 Accumulation Unit Value at end of period $16.695 $15.528 $12.677 Number of Accumulation Units outstanding at end of period (in thousands) 45 53 48 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.412 $12.595 $11.478 Accumulation Unit Value at end of period $16.554 $15.412 $12.595 Number of Accumulation Units outstanding at end of period (in thousands) 148 175 154 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.828 $11.323 $10.333 Accumulation Unit Value at end of period $14.823 $13.828 $11.323 Number of Accumulation Units outstanding at end of period (in thousands) 191 197 142 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.828 $11.323 $10.333 Accumulation Unit Value at end of period $14.823 $13.828 $11.323 Number of Accumulation Units outstanding at end of period (in thousands) 191 197 142 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.966 $12.292 $11.239 Accumulation Unit Value at end of period $15.995 $14.966 $12.292 Number of Accumulation Units outstanding at end of period (in thousands) 150 129 80 MFS(R) HIGH INCOME SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.282 $12.198 $11.734 Accumulation Unit Value at end of period $13.336 $13.282 $12.198 Number of Accumulation Units outstanding at end of period (in thousands) 740 617 473 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.783 $11.762 $11.330 Accumulation Unit Value at end of period $12.809 $12.783 $11.762 Number of Accumulation Units outstanding at end of period (in thousands) 245 283 301 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.687 $11.686 $11.265 Accumulation Unit Value at end of period $12.700 $12.687 $11.686 Number of Accumulation Units outstanding at end of period (in thousands) 1,135 1,406 1,602
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.701 $11.722 $11.314 Accumulation Unit Value at end of period $12.689 $12.701 $11.722 Number of Accumulation Units outstanding at end of period (in thousands) 778 952 910 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.701 $11.722 $11.314 Accumulation Unit Value at end of period $12.689 $12.701 $11.722 Number of Accumulation Units outstanding at end of period (in thousands) 778 952 910 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.321 $11.405 $11.030 Accumulation Unit Value at end of period $12.272 $12.321 $11.405 Number of Accumulation Units outstanding at end of period (in thousands) 597 612 569 MFS(R) INVESTORS GROWTH STOCK SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.871 $8.358 $7.590 Accumulation Unit Value at end of period $9.746 $8.871 $8.358 Number of Accumulation Units outstanding at end of period (in thousands) 268 216 169 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $8.390 $7.921 $7.202 Accumulation Unit Value at end of period $9.199 $8.390 $7.921 Number of Accumulation Units outstanding at end of period (in thousands) 431 559 656 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.327 $7.869 $7.160 Accumulation Unit Value at end of period $9.121 $8.327 $7.869 Number of Accumulation Units outstanding at end of period (in thousands) 475 681 872 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.473 $6.129 $5.585 Accumulation Unit Value at end of period $7.076 $6.473 $6.129 Number of Accumulation Units outstanding at end of period (in thousands) 619 663 752 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.473 $6.129 $5.585 Accumulation Unit Value at end of period $7.076 $6.473 $6.129 Number of Accumulation Units outstanding at end of period (in thousands) 619 663 752 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.086 $7.680 $7.011 Accumulation Unit Value at end of period $8.813 $8.086 $7.680 Number of Accumulation Units outstanding at end of period (in thousands) 196 211 229 MFS(R) INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.127 $9.981 $9.053 Accumulation Unit Value at end of period $12.109 $11.127 $9.981 Number of Accumulation Units outstanding at end of period (in thousands) 4,793 3,211 1,720 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.771 $8.782 $7.976 Accumulation Unit Value at end of period $10.612 $9.771 $8.782 Number of Accumulation Units outstanding at end of period (in thousands) 1,240 1,305 1,168 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.698 $8.726 $7.930 Accumulation Unit Value at end of period $10.522 $9.698 $8.726 Number of Accumulation Units outstanding at end of period (in thousands) 2,369 2,328 2,267 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.502 $8.567 $7.796 Accumulation Unit Value at end of period $10.290 $9.502 $8.567 Number of Accumulation Units outstanding at end of period (in thousands) 5,694 5,320 4,439
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.502 $8.567 $7.796 Accumulation Unit Value at end of period $10.290 $9.502 $8.567 Number of Accumulation Units outstanding at end of period (in thousands) 5,694 5,320 4,439 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.417 $8.516 $7.765 Accumulation Unit Value at end of period $10.167 $9.417 $8.516 Number of Accumulation Units outstanding at end of period (in thousands) 3,026 3,137 3,168 MFS(R) MID CAP GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.126 $6.055 $5.306 Accumulation Unit Value at end of period $6.638 $6.126 $6.055 Number of Accumulation Units outstanding at end of period (in thousands) 881 691 746 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.036 $5.978 $5.246 Accumulation Unit Value at end of period $6.527 $6.036 $5.978 Number of Accumulation Units outstanding at end of period (in thousands) 310 395 431 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $5.998 $5.946 $5.221 Accumulation Unit Value at end of period $6.479 $5.998 $5.946 Number of Accumulation Units outstanding at end of period (in thousands) 1,400 1,674 2,125 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.405 $6.362 $5.594 Accumulation Unit Value at end of period $6.905 $6.405 $6.362 Number of Accumulation Units outstanding at end of period (in thousands) 1,185 1,295 1,384 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.405 $6.362 $5.594 Accumulation Unit Value at end of period $6.905 $6.405 $6.362 Number of Accumulation Units outstanding at end of period (in thousands) 1,185 1,295 1,384 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.832 $5.811 $5.120 Accumulation Unit Value at end of period $6.269 $5.832 $5.811 Number of Accumulation Units outstanding at end of period (in thousands) 935 985 1,061 MFS(R) NEW DISCOVERY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.233 $13.638 $11.343 Accumulation Unit Value at end of period $15.407 $15.233 $13.638 Number of Accumulation Units outstanding at end of period (in thousands) 2,453 1,776 759 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.881 $12.453 $10.371 Accumulation Unit Value at end of period $14.012 $13.881 $12.453 Number of Accumulation Units outstanding at end of period (in thousands) 492 451 329 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.778 $12.372 $10.310 Accumulation Unit Value at end of period $13.893 $13.778 $12.372 Number of Accumulation Units outstanding at end of period (in thousands) 1,291 1,416 1,342 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.029 $8.124 $6.779 Accumulation Unit Value at end of period $9.086 $9.029 $8.124 Number of Accumulation Units outstanding at end of period (in thousands) 3,734 3,779 2,619 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.029 $8.124 $6.779 Accumulation Unit Value at end of period $9.086 $9.029 $8.124 Number of Accumulation Units outstanding at end of period (in thousands) 3,734 3,779 2,619
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.379 $12.074 $10.096 Accumulation Unit Value at end of period $13.424 $13.379 $12.074 Number of Accumulation Units outstanding at end of period (in thousands) 1,256 1,385 1,323 MFS(R) RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $10.040 $9.983 Accumulation Unit Value at end of period $10.596 $10.307 $10.040 Number of Accumulation Units outstanding at end of period (in thousands) 1,186 456 62 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.269 $10.024 $9.980 Accumulation Unit Value at end of period $10.537 $10.269 $10.024 Number of Accumulation Units outstanding at end of period (in thousands) 99 50 11 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.251 $10.016 $9.978 Accumulation Unit Value at end of period $10.507 $10.251 $10.016 Number of Accumulation Units outstanding at end of period (in thousands) 341 109 38 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.214 $10.000 $9.975 Accumulation Unit Value at end of period $10.448 $10.214 $10.000 Number of Accumulation Units outstanding at end of period (in thousands) 749 305 83 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.214 $10.000 $9.975 Accumulation Unit Value at end of period $10.448 $10.214 $10.000 Number of Accumulation Units outstanding at end of period (in thousands) 749 305 83 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.158 $9.975 $9.971 Accumulation Unit Value at end of period $10.361 $10.158 $9.975 Number of Accumulation Units outstanding at end of period (in thousands) 221 76 9 MFS(R) RESEARCH INTERNATIONAL SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.847 $11.985 $10.019 Accumulation Unit Value at end of period $16.527 $14.847 $11.985 Number of Accumulation Units outstanding at end of period (in thousands) 506 118 25 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.798 $11.969 $10.019 Accumulation Unit Value at end of period $16.439 $14.798 $11.969 Number of Accumulation Units outstanding at end of period (in thousands) 35 23 5 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.773 $11.961 $10.019 Accumulation Unit Value at end of period $16.395 $14.773 $11.961 Number of Accumulation Units outstanding at end of period (in thousands) 150 76 20 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.724 $11.945 $10.018 Accumulation Unit Value at end of period $16.307 $14.724 $11.945 Number of Accumulation Units outstanding at end of period (in thousands) 389 192 83 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.724 $11.945 $10.018 Accumulation Unit Value at end of period $16.307 $14.724 $11.945 Number of Accumulation Units outstanding at end of period (in thousands) 389 192 83 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.650 $11.921 $10.018 Accumulation Unit Value at end of period $16.177 $14.650 $11.921 Number of Accumulation Units outstanding at end of period (in thousands) 133 58 22
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- MFS(R) RESEARCH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.572 $10.617 $9.472 Accumulation Unit Value at end of period $12.925 $11.572 $10.617 Number of Accumulation Units outstanding at end of period (in thousands) 368 140 48 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.530 $10.599 $9.469 Accumulation Unit Value at end of period $12.851 $11.530 $10.599 Number of Accumulation Units outstanding at end of period (in thousands) 8 2 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.508 $10.590 $9.468 Accumulation Unit Value at end of period $12.815 $11.508 $10.590 Number of Accumulation Units outstanding at end of period (in thousands) 68 36 21 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.466 $10.573 $9.464 Accumulation Unit Value at end of period $12.742 $11.466 $10.573 Number of Accumulation Units outstanding at end of period (in thousands) 296 163 33 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.466 $10.573 $9.464 Accumulation Unit Value at end of period $12.742 $11.466 $10.573 Number of Accumulation Units outstanding at end of period (in thousands) 296 163 33 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.403 $10.546 $9.459 Accumulation Unit Value at end of period $12.634 $11.403 $10.546 Number of Accumulation Units outstanding at end of period (in thousands) 30 12 2 MFS(R) TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.523 $14.061 $13.598 Accumulation Unit Value at end of period $15.960 $15.523 $14.061 Number of Accumulation Units outstanding at end of period (in thousands) 9,927 6,316 3,478 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.290 $12.970 $12.560 Accumulation Unit Value at end of period $14.663 $14.290 $12.970 Number of Accumulation Units outstanding at end of period (in thousands) 1,628 1,682 1,563 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.183 $12.886 $12.487 Accumulation Unit Value at end of period $14.539 $14.183 $12.886 Number of Accumulation Units outstanding at end of period (in thousands) 5,780 6,059 6,636 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.303 $12.111 $11.752 Accumulation Unit Value at end of period $13.610 $13.303 $12.111 Number of Accumulation Units outstanding at end of period (in thousands) 9,822 9,376 8,099 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.303 $12.111 $11.752 Accumulation Unit Value at end of period $13.610 $13.303 $12.111 Number of Accumulation Units outstanding at end of period (in thousands) 9,822 9,376 8,099 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.773 $12.576 $12.227 Accumulation Unit Value at end of period $14.048 $13.773 $12.576 Number of Accumulation Units outstanding at end of period (in thousands) 4,400 4,321 4,513 MFS(R) VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.453 $14.639 $13.768 Accumulation Unit Value at end of period $18.581 $17.453 $14.639 Number of Accumulation Units outstanding at end of period (in thousands) 1,861 949 383
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.325 $14.561 $13.713 Accumulation Unit Value at end of period $18.408 $17.325 $14.561 Number of Accumulation Units outstanding at end of period (in thousands) 189 134 68 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $17.262 $14.522 $13.686 Accumulation Unit Value at end of period $18.322 $17.262 $14.522 Number of Accumulation Units outstanding at end of period (in thousands) 682 528 355 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.136 $14.445 $13.631 Accumulation Unit Value at end of period $18.152 $17.136 $14.445 Number of Accumulation Units outstanding at end of period (in thousands) 1,424 876 484 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $17.136 $14.445 $13.631 Accumulation Unit Value at end of period $18.152 $17.136 $14.445 Number of Accumulation Units outstanding at end of period (in thousands) 1,424 876 484 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.948 $14.330 $13.549 Accumulation Unit Value at end of period $17.899 $16.948 $14.330 Number of Accumulation Units outstanding at end of period (in thousands) 601 499 404 MUTUAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $20.136 $16.585 $14.600 Accumulation Unit Value at end of period $22.220 $20.136 $16.585 Number of Accumulation Units outstanding at end of period (in thousands) 3,781 2,145 959 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.988 $16.497 $14.541 Accumulation Unit Value at end of period $22.013 $19.988 $16.497 Number of Accumulation Units outstanding at end of period (in thousands) 371 294 198 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $19.915 $16.453 $14.512 Accumulation Unit Value at end of period $21.911 $19.915 $16.453 Number of Accumulation Units outstanding at end of period (in thousands) 1,481 1,299 993 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.770 $16.366 $14.454 Accumulation Unit Value at end of period $21.707 $19.770 $16.366 Number of Accumulation Units outstanding at end of period (in thousands) 2,858 2,449 1,772 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.770 $16.366 $14.454 Accumulation Unit Value at end of period $21.707 $19.770 $16.366 Number of Accumulation Units outstanding at end of period (in thousands) 2,858 2,449 1,772 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.553 $16.235 $14.367 Accumulation Unit Value at end of period $21.405 $19.553 $16.235 Number of Accumulation Units outstanding at end of period (in thousands) 1,293 1,194 1,167 MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.484 $16.683 $15.153 Accumulation Unit Value at end of period $19.892 $19.484 $16.683 Number of Accumulation Units outstanding at end of period (in thousands) 8,185 5,008 2,738 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.320 $14.859 $13.515 Accumulation Unit Value at end of period $17.647 $17.320 $14.859 Number of Accumulation Units outstanding at end of period (in thousands) 1,556 1,524 1,298
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $17.191 $14.763 $13.436 Accumulation Unit Value at end of period $17.498 $17.191 $14.763 Number of Accumulation Units outstanding at end of period (in thousands) 6,057 6,545 6,334 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.342 $14.062 $12.815 Accumulation Unit Value at end of period $16.600 $16.342 $14.062 Number of Accumulation Units outstanding at end of period (in thousands) 9,098 8,358 6,872 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.342 $14.062 $12.815 Accumulation Unit Value at end of period $16.600 $16.342 $14.062 Number of Accumulation Units outstanding at end of period (in thousands) 9,098 8,358 6,872 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.694 $14.408 $13.157 Accumulation Unit Value at end of period $16.907 $16.694 $14.408 Number of Accumulation Units outstanding at end of period (in thousands) 4,197 4,035 4,064 TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.737 $18.733 $14.727 Accumulation Unit Value at end of period $30.230 $23.737 $18.733 Number of Accumulation Units outstanding at end of period (in thousands) 817 608 418 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $20.355 $16.096 $12.671 Accumulation Unit Value at end of period $25.871 $20.355 $16.096 Number of Accumulation Units outstanding at end of period (in thousands) 192 206 200 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $20.203 $15.992 $12.597 Accumulation Unit Value at end of period $25.652 $20.203 $15.992 Number of Accumulation Units outstanding at end of period (in thousands) 652 720 675 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $24.099 $19.114 $15.077 Accumulation Unit Value at end of period $30.539 $24.099 $19.114 Number of Accumulation Units outstanding at end of period (in thousands) 1,186 1,044 824 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $24.099 $19.114 $15.077 Accumulation Unit Value at end of period $30.539 $24.099 $19.114 Number of Accumulation Units outstanding at end of period (in thousands) 1,186 1,044 824 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.618 $15.607 $12.335 Accumulation Unit Value at end of period $24.786 $19.618 $15.607 Number of Accumulation Units outstanding at end of period (in thousands) 640 617 668 TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.502 $12.104 $10.823 Accumulation Unit Value at end of period $16.519 $14.502 $12.104 Number of Accumulation Units outstanding at end of period (in thousands) 4,579 3,897 2,501 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.759 $11.506 $10.303 Accumulation Unit Value at end of period $15.642 $13.759 $11.506 Number of Accumulation Units outstanding at end of period (in thousands) 893 844 642 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.656 $11.432 $10.243 Accumulation Unit Value at end of period $15.509 $13.656 $11.432 Number of Accumulation Units outstanding at end of period (in thousands) 2,376 2,536 2,492
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.959 $10.870 $9.752 Accumulation Unit Value at end of period $14.688 $12.959 $10.870 Number of Accumulation Units outstanding at end of period (in thousands) 5,998 6,308 5,726 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.959 $10.870 $9.752 Accumulation Unit Value at end of period $14.688 $12.959 $10.870 Number of Accumulation Units outstanding at end of period (in thousands) 5,998 6,308 5,726 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.261 $11.157 $10.030 Accumulation Unit Value at end of period $14.985 $13.261 $11.157 Number of Accumulation Units outstanding at end of period (in thousands) 3,301 3,665 3,865 TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.068 $14.202 $12.979 Accumulation Unit Value at end of period $17.234 $17.068 $14.202 Number of Accumulation Units outstanding at end of period (in thousands) 6,181 3,876 2,176 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.798 $13.172 $12.054 Accumulation Unit Value at end of period $15.920 $15.798 $13.172 Number of Accumulation Units outstanding at end of period (in thousands) 1,095 1,059 858 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.680 $13.087 $11.983 Accumulation Unit Value at end of period $15.785 $15.680 $13.087 Number of Accumulation Units outstanding at end of period (in thousands) 3,116 3,386 3,293 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.342 $12.830 $11.764 Accumulation Unit Value at end of period $15.414 $15.342 $12.830 Number of Accumulation Units outstanding at end of period (in thousands) 6,247 5,774 4,766 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.342 $12.830 $11.764 Accumulation Unit Value at end of period $15.414 $15.342 $12.830 Number of Accumulation Units outstanding at end of period (in thousands) 6,247 5,774 4,766 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.227 $12.772 $11.734 Accumulation Unit Value at end of period $15.252 $15.227 $12.772 Number of Accumulation Units outstanding at end of period (in thousands) 2,847 3,021 3,014
(a) Inception date November 12, 2007.
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.320 $1.193 $1.152 $1.068 $0.994 Accumulation Unit Value at end of period $1.401 $1.320 $1.193 $1.152 $1.068 Number of Accumulation Units outstanding at end of period (in thousands) 79 84 54 57 34 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.310 $1.187 $1.148 $1.082 -- Accumulation Unit Value at end of period $1.388 $1.310 $1.187 $1.148 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.301 $1.179 $1.142 $1.062 $0.989 Accumulation Unit Value at end of period $1.377 $1.301 $1.179 $1.142 $1.062 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.298 $1.178 $1.141 $1.061 $0.989 Accumulation Unit Value at end of period $1.373 $1.298 $1.178 $1.141 $1.061 Number of Accumulation Units outstanding at end of period (in thousands) 238 241 309 291 141 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.289 $1.171 $1.136 $1.071 -- Accumulation Unit Value at end of period $1.361 $1.289 $1.171 $1.136 -- Number of Accumulation Units outstanding at end of period (in thousands) 152 160 192 137 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.289 $1.171 $1.136 $1.075 -- Accumulation Unit Value at end of period $1.361 $1.289 $1.171 $1.136 -- Number of Accumulation Units outstanding at end of period (in thousands) 152 160 192 137 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.279 $1.164 $1.131 $1.055 $0.985 Accumulation Unit Value at end of period $1.349 $1.279 $1.164 $1.131 $1.055 Number of Accumulation Units outstanding at end of period (in thousands) 21 21 21 21 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.271 $1.158 $1.127 $1.070 -- Accumulation Unit Value at end of period $1.338 $1.271 $1.158 $1.127 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WELLS FARGO ADVANTAGE VT C&B LARGE CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.323 $1.098 $1.079 $0.984 $0.892 Accumulation Unit Value at end of period $1.290 $1.323 $1.098 $1.079 $0.984 Number of Accumulation Units outstanding at end of period (in thousands) 112 15 3 3 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.313 $1.092 $1.076 $1.007 -- Accumulation Unit Value at end of period $1.278 $1.313 $1.092 $1.076 -- Number of Accumulation Units outstanding at end of period (in thousands) 24 24 -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.304 $1.085 $1.070 $0.978 $0.888 Accumulation Unit Value at end of period $1.267 $1.304 $1.085 $1.070 $0.978 Number of Accumulation Units outstanding at end of period (in thousands) 51 -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.301 $1.084 $1.069 $0.978 $0.888 Accumulation Unit Value at end of period $1.264 $1.301 $1.084 $1.069 $0.978 Number of Accumulation Units outstanding at end of period (in thousands) 199 190 70 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.292 $1.078 $1.065 $0.997 -- Accumulation Unit Value at end of period $1.253 $1.292 $1.078 $1.065 -- Number of Accumulation Units outstanding at end of period (in thousands) 159 82 7 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.292 $1.078 $1.065 $0.990 -- Accumulation Unit Value at end of period $1.253 $1.292 $1.078 $1.065 -- Number of Accumulation Units outstanding at end of period (in thousands) 159 82 7 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.282 $1.071 $1.060 $0.972 $0.883 Accumulation Unit Value at end of period $1.242 $1.282 $1.071 $1.060 $0.972 Number of Accumulation Units outstanding at end of period (in thousands) 19 13 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.274 $1.066 $1.056 $0.985 -- Accumulation Unit Value at end of period $1.232 $1.274 $1.066 $1.056 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT DISCOVERY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.731 $11.256 $10.524 -- -- Accumulation Unit Value at end of period $15.364 $12.731 $11.256 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 6 2 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.691 $11.242 $10.522 -- -- Accumulation Unit Value at end of period $15.285 $12.691 $11.242 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.670 $11.236 $10.521 -- -- Accumulation Unit Value at end of period $15.246 $12.670 $11.236 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.660 $11.233 $10.521 -- -- Accumulation Unit Value at end of period $15.226 $12.660 $11.233 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 14 12 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.630 $11.223 $10.519 -- -- Accumulation Unit Value at end of period $15.167 $12.630 $11.223 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 6 4 1 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.630 $11.223 $10.519 -- -- Accumulation Unit Value at end of period $15.167 $12.630 $11.223 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 6 4 1 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $12.600 $11.213 $10.518 -- -- Accumulation Unit Value at end of period $15.108 $12.600 $11.213 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2 3 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.570 $11.203 $10.516 -- -- Accumulation Unit Value at end of period $15.050 $12.570 $11.203 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WELLS FARGO ADVANTAGE VT EQUITY INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.405 $1.201 $1.155 $1.054 $0.957 Accumulation Unit Value at end of period $1.425 $1.405 $1.201 $1.155 $1.054 Number of Accumulation Units outstanding at end of period (in thousands) 388 201 94 42 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.395 $1.195 $1.151 $1.078 -- Accumulation Unit Value at end of period $1.411 $1.395 $1.195 $1.151 -- Number of Accumulation Units outstanding at end of period (in thousands) 73 46 45 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.384 $1.187 $1.145 $1.048 $0.952 Accumulation Unit Value at end of period $1.400 $1.384 $1.187 $1.145 $1.048 Number of Accumulation Units outstanding at end of period (in thousands) 80 76 52 35 -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.382 $1.186 $1.144 $1.048 $0.952 Accumulation Unit Value at end of period $1.396 $1.382 $1.186 $1.144 $1.048 Number of Accumulation Units outstanding at end of period (in thousands) 561 514 404 83 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.371 $1.178 $1.139 $1.067 -- Accumulation Unit Value at end of period $1.384 $1.371 $1.178 $1.139 -- Number of Accumulation Units outstanding at end of period (in thousands) 274 260 324 47 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.371 $1.178 $1.139 $1.061 -- Accumulation Unit Value at end of period $1.384 $1.371 $1.178 $1.139 -- Number of Accumulation Units outstanding at end of period (in thousands) 274 260 324 47 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.361 $1.172 $1.134 $1.042 $0.948 Accumulation Unit Value at end of period $1.372 $1.361 $1.172 $1.134 $1.042 Number of Accumulation Units outstanding at end of period (in thousands) 42 42 8 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.353 $1.166 $1.130 $1.055 -- Accumulation Unit Value at end of period $1.361 $1.353 $1.166 $1.130 -- Number of Accumulation Units outstanding at end of period (in thousands) 17 6 18 -- -- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.451 $1.217 $1.125 $1.040 $0.904 Accumulation Unit Value at end of period $1.613 $1.451 $1.217 $1.125 $1.040 Number of Accumulation Units outstanding at end of period (in thousands) 355 215 112 50 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.441 $1.211 $1.121 $1.030 -- Accumulation Unit Value at end of period $1.598 $1.441 $1.211 $1.121 -- Number of Accumulation Units outstanding at end of period (in thousands) 67 49 52 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.430 $1.203 $1.115 $1.034 $0.899 Accumulation Unit Value at end of period $1.585 $1.430 $1.203 $1.115 $1.034 Number of Accumulation Units outstanding at end of period (in thousands) 17 24 7 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.427 $1.202 $1.114 $1.034 $0.899 Accumulation Unit Value at end of period $1.581 $1.427 $1.202 $1.114 $1.034 Number of Accumulation Units outstanding at end of period (in thousands) 480 457 267 64 3 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.417 $1.195 $1.110 $1.020 -- Accumulation Unit Value at end of period $1.567 $1.417 $1.195 $1.110 -- Number of Accumulation Units outstanding at end of period (in thousands) 272 278 332 32 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.417 $1.195 $1.110 $1.031 -- Accumulation Unit Value at end of period $1.567 $1.417 $1.195 $1.110 -- Number of Accumulation Units outstanding at end of period (in thousands) 272 278 332 32 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.406 $1.188 $1.105 $1.028 $0.895 Accumulation Unit Value at end of period $1.553 $1.406 $1.188 $1.105 $1.028 Number of Accumulation Units outstanding at end of period (in thousands) 41 44 16 8 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.397 $1.182 $1.101 $1.025 -- Accumulation Unit Value at end of period $1.541 $1.397 $1.182 $1.101 -- Number of Accumulation Units outstanding at end of period (in thousands) 7 7 19 -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $0.981 $1.017 $0.951 $0.892 Accumulation Unit Value at end of period $1.130 $1.119 $0.981 $1.017 $0.951 Number of Accumulation Units outstanding at end of period (in thousands) 34 31 15 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.111 $0.976 $1.014 $0.942 -- Accumulation Unit Value at end of period $1.120 $1.111 $0.976 $1.014 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.103 $0.970 $1.009 $0.946 $0.888 Accumulation Unit Value at end of period $1.110 $1.103 $0.970 $1.009 $0.946 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.101 $0.969 $1.008 $0.946 $0.887 Accumulation Unit Value at end of period $1.108 $1.101 $0.969 $1.008 $0.946 Number of Accumulation Units outstanding at end of period (in thousands) 2 2 9 12 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.093 $0.963 $1.003 $0.933 -- Accumulation Unit Value at end of period $1.098 $1.093 $0.963 $1.003 -- Number of Accumulation Units outstanding at end of period (in thousands) 205 59 54 39 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.093 $0.963 $1.003 $0.955 -- Accumulation Unit Value at end of period $1.098 $1.093 $0.963 $1.003 -- Number of Accumulation Units outstanding at end of period (in thousands) 205 59 54 39 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.085 $0.957 $0.999 $0.940 $0.883 Accumulation Unit Value at end of period $1.088 $1.085 $0.957 $0.999 $0.940 Number of Accumulation Units outstanding at end of period (in thousands) 8 1 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $0.952 $0.995 $0.950 -- Accumulation Unit Value at end of period $1.079 $1.078 $0.952 $0.995 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.069 $1.059 $1.016 $0.997 $0.958 Accumulation Unit Value at end of period $1.135 $1.069 $1.059 $1.016 $0.997 Number of Accumulation Units outstanding at end of period (in thousands) 315 218 142 104 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.062 $1.054 $1.012 $0.947 -- Accumulation Unit Value at end of period $1.125 $1.062 $1.054 $1.012 -- Number of Accumulation Units outstanding at end of period (in thousands) 66 50 45 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.054 $1.047 $1.007 $0.991 $0.954 Accumulation Unit Value at end of period $1.116 $1.054 $1.047 $1.007 $0.991 Number of Accumulation Units outstanding at end of period (in thousands) 15 21 6 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.052 $1.045 $1.006 $0.991 $0.953 Accumulation Unit Value at end of period $1.113 $1.052 $1.045 $1.006 $0.991 Number of Accumulation Units outstanding at end of period (in thousands) 666 655 492 285 20 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.044 $1.039 $1.002 $0.938 -- Accumulation Unit Value at end of period $1.103 $1.044 $1.039 $1.002 -- Number of Accumulation Units outstanding at end of period (in thousands) 345 297 345 53 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.044 $1.039 $1.002 $0.998 -- Accumulation Unit Value at end of period $1.103 $1.044 $1.039 $1.002 -- Number of Accumulation Units outstanding at end of period (in thousands) 345 297 345 53 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.037 $1.033 $0.997 $0.985 $0.949 Accumulation Unit Value at end of period $1.093 $1.037 $1.033 $0.997 $0.985 Number of Accumulation Units outstanding at end of period (in thousands) 34 35 8 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.030 $1.028 $0.994 $0.993 -- Accumulation Unit Value at end of period $1.085 $1.030 $1.028 $0.994 -- Number of Accumulation Units outstanding at end of period (in thousands) 7 7 17 -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT MONEY MARKET FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.026 $0.996 $0.984 $0.991 $0.994 Accumulation Unit Value at end of period $1.059 $1.026 $0.996 $0.984 $0.991 Number of Accumulation Units outstanding at end of period (in thousands) 212 41 40 7 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.019 $0.991 $0.981 $0.981 -- Accumulation Unit Value at end of period $1.049 $1.019 $0.991 $0.981 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.011 $0.985 $0.976 $0.985 $0.989 Accumulation Unit Value at end of period $1.041 $1.011 $0.985 $0.976 $0.985 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.010 $0.983 $0.975 $0.985 $0.989 Accumulation Unit Value at end of period $1.038 $1.010 $0.983 $0.975 $0.985 Number of Accumulation Units outstanding at end of period (in thousands) 1,785 604 423 582 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.002 $0.977 $0.971 $0.971 -- Accumulation Unit Value at end of period $1.029 $1.002 $0.977 $0.971 -- Number of Accumulation Units outstanding at end of period (in thousands) 98 1 40 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.002 $0.977 $0.971 $0.981 -- Accumulation Unit Value at end of period $1.029 $1.002 $0.977 $0.971 -- Number of Accumulation Units outstanding at end of period (in thousands) 98 1 40 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $0.995 $0.972 $0.966 $0.979 $0.984 Accumulation Unit Value at end of period $1.020 $0.995 $0.972 $0.966 $0.979 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.988 $0.967 $0.963 $0.976 -- Accumulation Unit Value at end of period $1.012 $0.988 $0.967 $0.963 -- Number of Accumulation Units outstanding at end of period (in thousands) -- 21 24 16 -- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.016 $10.853 $10.330 -- -- Accumulation Unit Value at end of period $12.642 $12.016 $10.853 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1 -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.978 $10.841 $10.328 -- -- Accumulation Unit Value at end of period $12.576 $11.978 $10.841 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.959 $10.834 $10.327 -- -- Accumulation Unit Value at end of period $12.544 $11.959 $10.834 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.950 $10.831 $10.326 -- -- Accumulation Unit Value at end of period $12.528 $11.950 $10.831 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.921 $10.822 $10.325 -- -- Accumulation Unit Value at end of period $12.479 $11.921 $10.822 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.921 $10.822 $10.325 -- -- Accumulation Unit Value at end of period $12.479 $11.921 $10.822 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $11.893 $10.812 $10.323 -- -- Accumulation Unit Value at end of period $12.431 $11.893 $10.812 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.865 $10.803 $10.322 -- -- Accumulation Unit Value at end of period $12.383 $11.865 $10.803 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.407 $1.162 $1.108 $0.987 $0.913 Accumulation Unit Value at end of period $1.580 $1.407 $1.162 $1.108 $0.987 Number of Accumulation Units outstanding at end of period (in thousands) 387 198 128 74 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.397 $1.156 $1.105 $0.995 -- Accumulation Unit Value at end of period $1.565 $1.397 $1.156 $1.105 -- Number of Accumulation Units outstanding at end of period (in thousands) 50 41 34 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.387 $1.148 $1.099 $0.982 $0.908 Accumulation Unit Value at end of period $1.552 $1.387 $1.148 $1.099 $0.982 Number of Accumulation Units outstanding at end of period (in thousands) 22 15 4 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.384 $1.147 $1.098 $0.982 $0.908 Accumulation Unit Value at end of period $1.549 $1.384 $1.147 $1.098 $0.982 Number of Accumulation Units outstanding at end of period (in thousands) 331 312 150 47 20 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.374 $1.140 $1.093 $0.985 -- Accumulation Unit Value at end of period $1.535 $1.374 $1.140 $1.093 -- Number of Accumulation Units outstanding at end of period (in thousands) 456 368 317 128 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.374 $1.140 $1.093 $1.032 -- Accumulation Unit Value at end of period $1.535 $1.374 $1.140 $1.093 -- Number of Accumulation Units outstanding at end of period (in thousands) 456 368 317 128 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.364 $1.133 $1.088 $0.976 $0.904 Accumulation Unit Value at end of period $1.521 $1.364 $1.133 $1.088 $0.976 Number of Accumulation Units outstanding at end of period (in thousands) 36 39 19 14 13 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.355 $1.128 $1.084 $1.027 -- Accumulation Unit Value at end of period $1.509 $1.355 $1.128 $1.084 -- Number of Accumulation Units outstanding at end of period (in thousands) 16 18 25 -- -- WELLS FARGO ADVANTAGE VT SMALL/MID CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.815 $12.100 $10.825 -- -- Accumulation Unit Value at end of period $13.536 $13.815 $12.100 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 4 -- -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.772 $12.086 $10.823 -- -- Accumulation Unit Value at end of period $13.466 $13.772 $12.086 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.750 $12.079 $10.822 -- -- Accumulation Unit Value at end of period $13.431 $13.750 $12.079 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 15 13 -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------------------------------------------------ WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.739 $12.076 $10.822 -- -- Accumulation Unit Value at end of period $13.414 $13.739 $12.076 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 3 3 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.706 $12.065 $10.820 -- -- Accumulation Unit Value at end of period $13.362 $13.706 $12.065 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 24 20 -- -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.706 $12.065 $10.820 -- -- Accumulation Unit Value at end of period $13.362 $13.706 $12.065 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 24 20 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $13.674 $12.054 $10.819 -- -- Accumulation Unit Value at end of period $13.310 $13.674 $12.054 -- -- Number of Accumulation Units outstanding at end of period (in thousands) 2 2 -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.641 $12.044 $10.817 -- -- Accumulation Unit Value at end of period $13.259 $13.641 $12.044 -- -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- -- -- WELLS FARGO ADVANTAGE VT TOTAL RETURN BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.186 $1.158 $1.151 $1.118 $1.097 Accumulation Unit Value at end of period $1.243 $1.186 $1.158 $1.151 $1.118 Number of Accumulation Units outstanding at end of period (in thousands) 514 213 152 110 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.178 $1.152 $1.148 $1.146 -- Accumulation Unit Value at end of period $1.231 $1.178 $1.152 $1.148 -- Number of Accumulation Units outstanding at end of period (in thousands) 119 73 67 -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.169 $1.144 $1.142 $1.112 $1.092 Accumulation Unit Value at end of period $1.221 $1.169 $1.144 $1.142 $1.112 Number of Accumulation Units outstanding at end of period (in thousands) 61 39 12 6 -- WITH THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.167 $1.143 $1.141 $1.111 $1.092 Accumulation Unit Value at end of period $1.218 $1.167 $1.143 $1.141 $1.111 Number of Accumulation Units outstanding at end of period (in thousands) 936 779 477 251 48 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.158 $1.136 $1.136 $1.135 -- Accumulation Unit Value at end of period $1.208 $1.158 $1.136 $1.136 -- Number of Accumulation Units outstanding at end of period (in thousands) 501 386 361 32 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.158 $1.136 $1.136 $1.116 -- Accumulation Unit Value at end of period $1.208 $1.158 $1.136 $1.136 -- Number of Accumulation Units outstanding at end of period (in thousands) 501 386 361 32 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (35 BPS) Accumulation Unit Value at beginning of period $1.150 $1.130 $1.131 $1.105 $1.087 Accumulation Unit Value at end of period $1.197 $1.150 $1.130 $1.131 $1.105 Number of Accumulation Units outstanding at end of period (in thousands) 60 55 12 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.142 $1.124 $1.127 $1.110 -- Accumulation Unit Value at end of period $1.187 $1.142 $1.124 $1.127 -- Number of Accumulation Units outstanding at end of period (in thousands) 210 135 101 -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.320 $1.193 $1.122 Accumulation Unit Value at end of period $1.401 $1.320 $1.193 Number of Accumulation Units outstanding at end of period (in thousands) 79 84 54 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.310 $1.187 $1.118 Accumulation Unit Value at end of period $1.388 $1.310 $1.187 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.301 $1.179 $1.111 Accumulation Unit Value at end of period $1.377 $1.301 $1.179 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.289 $1.171 $1.105 Accumulation Unit Value at end of period $1.361 $1.289 $1.171 Number of Accumulation Units outstanding at end of period (in thousands) 152 160 192 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.289 $1.171 $1.105 Accumulation Unit Value at end of period $1.361 $1.289 $1.171 Number of Accumulation Units outstanding at end of period (in thousands) 152 160 192 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.271 $1.158 $1.095 Accumulation Unit Value at end of period $1.338 $1.271 $1.158 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT C&B LARGE CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.323 $1.098 $1.063 Accumulation Unit Value at end of period $1.290 $1.323 $1.098 Number of Accumulation Units outstanding at end of period (in thousands) 112 15 3 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.313 $1.092 $1.059 Accumulation Unit Value at end of period $1.278 $1.313 $1.092 Number of Accumulation Units outstanding at end of period (in thousands) 24 24 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.304 $1.085 $1.053 Accumulation Unit Value at end of period $1.267 $1.304 $1.085 Number of Accumulation Units outstanding at end of period (in thousands) 51 -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.292 $1.078 $1.047 Accumulation Unit Value at end of period $1.253 $1.292 $1.078 Number of Accumulation Units outstanding at end of period (in thousands) 159 82 7 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.292 $1.078 $1.047 Accumulation Unit Value at end of period $1.253 $1.292 $1.078 Number of Accumulation Units outstanding at end of period (in thousands) 159 82 7 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.274 $1.066 $1.038 Accumulation Unit Value at end of period $1.232 $1.274 $1.066 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT DISCOVERY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.731 $11.256 $10.524 Accumulation Unit Value at end of period $15.364 $12.731 $11.256 Number of Accumulation Units outstanding at end of period (in thousands) 6 2 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.691 $11.242 $10.522 Accumulation Unit Value at end of period $15.285 $12.691 $11.242 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.670 $11.236 $10.521 Accumulation Unit Value at end of period $15.246 $12.670 $11.236 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.630 $11.223 $10.519 Accumulation Unit Value at end of period $15.167 $12.630 $11.223 Number of Accumulation Units outstanding at end of period (in thousands) 6 4 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.630 $11.223 $10.519 Accumulation Unit Value at end of period $15.167 $12.630 $11.223 Number of Accumulation Units outstanding at end of period (in thousands) 6 4 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.570 $11.203 $10.516 Accumulation Unit Value at end of period $15.050 $12.570 $11.203 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT EQUITY INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.405 $1.201 $1.140 Accumulation Unit Value at end of period $1.425 $1.405 $1.201 Number of Accumulation Units outstanding at end of period (in thousands) 388 201 94 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.395 $1.195 $1.136 Accumulation Unit Value at end of period $1.411 $1.395 $1.195 Number of Accumulation Units outstanding at end of period (in thousands) 73 46 45 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.384 $1.187 $1.130 Accumulation Unit Value at end of period $1.400 $1.384 $1.187 Number of Accumulation Units outstanding at end of period (in thousands) 80 76 52 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.371 $1.178 $1.123 Accumulation Unit Value at end of period $1.384 $1.371 $1.178 Number of Accumulation Units outstanding at end of period (in thousands) 274 260 324 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.371 $1.178 $1.123 Accumulation Unit Value at end of period $1.384 $1.371 $1.178 Number of Accumulation Units outstanding at end of period (in thousands) 274 260 324 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.353 $1.166 $1.113 Accumulation Unit Value at end of period $1.361 $1.353 $1.166 Number of Accumulation Units outstanding at end of period (in thousands) 17 6 18 WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.451 $1.217 $1.093 Accumulation Unit Value at end of period $1.613 $1.451 $1.217 Number of Accumulation Units outstanding at end of period (in thousands) 355 215 112 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.441 $1.211 $1.089 Accumulation Unit Value at end of period $1.598 $1.441 $1.211 Number of Accumulation Units outstanding at end of period (in thousands) 67 49 52 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.430 $1.203 $1.082 Accumulation Unit Value at end of period $1.585 $1.430 $1.203 Number of Accumulation Units outstanding at end of period (in thousands) 17 24 7
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.417 $1.195 $1.076 Accumulation Unit Value at end of period $1.567 $1.417 $1.195 Number of Accumulation Units outstanding at end of period (in thousands) 272 278 332 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.417 $1.195 $1.076 Accumulation Unit Value at end of period $1.567 $1.417 $1.195 Number of Accumulation Units outstanding at end of period (in thousands) 272 278 332 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.397 $1.182 $1.066 Accumulation Unit Value at end of period $1.541 $1.397 $1.182 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 19 WELLS FARGO ADVANTAGE VT LARGE COMPANY CORE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $0.981 $0.949 Accumulation Unit Value at end of period $1.130 $1.119 $0.981 Number of Accumulation Units outstanding at end of period (in thousands) 34 31 15 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.111 $0.976 $0.945 Accumulation Unit Value at end of period $1.120 $1.111 $0.976 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.103 $0.970 $0.940 Accumulation Unit Value at end of period $1.110 $1.103 $0.970 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.093 $0.963 $0.934 Accumulation Unit Value at end of period $1.098 $1.093 $0.963 Number of Accumulation Units outstanding at end of period (in thousands) 205 59 54 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.093 $0.963 $0.934 Accumulation Unit Value at end of period $1.098 $1.093 $0.963 Number of Accumulation Units outstanding at end of period (in thousands) 205 59 54 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $0.952 $0.926 Accumulation Unit Value at end of period $1.079 $1.078 $0.952 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.069 $1.059 $0.911 Accumulation Unit Value at end of period $1.135 $1.069 $1.059 Number of Accumulation Units outstanding at end of period (in thousands) 315 218 142 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.062 $1.054 $0.907 Accumulation Unit Value at end of period $1.125 $1.062 $1.054 Number of Accumulation Units outstanding at end of period (in thousands) 66 50 45 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.054 $1.047 $0.902 Accumulation Unit Value at end of period $1.116 $1.054 $1.047 Number of Accumulation Units outstanding at end of period (in thousands) 15 21 6 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.044 $1.039 $0.897 Accumulation Unit Value at end of period $1.103 $1.044 $1.039 Number of Accumulation Units outstanding at end of period (in thousands) 345 297 345 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.044 $1.039 $0.897 Accumulation Unit Value at end of period $1.103 $1.044 $1.039 Number of Accumulation Units outstanding at end of period (in thousands) 345 297 345
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.030 $1.028 $0.889 Accumulation Unit Value at end of period $1.085 $1.030 $1.028 Number of Accumulation Units outstanding at end of period (in thousands) 7 7 17 WELLS FARGO ADVANTAGE VT MONEY MARKET FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.026 $0.996 $0.986 Accumulation Unit Value at end of period $1.059 $1.026 $0.996 Number of Accumulation Units outstanding at end of period (in thousands) 212 41 40 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.019 $0.991 $0.982 Accumulation Unit Value at end of period $1.049 $1.019 $0.991 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.011 $0.985 $0.977 Accumulation Unit Value at end of period $1.041 $1.011 $0.985 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.002 $0.977 $0.971 Accumulation Unit Value at end of period $1.029 $1.002 $0.977 Number of Accumulation Units outstanding at end of period (in thousands) 98 1 40 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.002 $0.977 $0.971 Accumulation Unit Value at end of period $1.029 $1.002 $0.977 Number of Accumulation Units outstanding at end of period (in thousands) 98 1 40 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $0.988 $0.967 $0.962 Accumulation Unit Value at end of period $1.012 $0.988 $0.967 Number of Accumulation Units outstanding at end of period (in thousands) -- 21 24 WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.016 $10.853 $10.330 Accumulation Unit Value at end of period $12.642 $12.016 $10.853 Number of Accumulation Units outstanding at end of period (in thousands) 1 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.978 $10.841 $10.328 Accumulation Unit Value at end of period $12.576 $11.978 $10.841 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.959 $10.834 $10.327 Accumulation Unit Value at end of period $12.544 $11.959 $10.834 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.921 $10.822 $10.325 Accumulation Unit Value at end of period $12.479 $11.921 $10.822 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.921 $10.822 $10.325 Accumulation Unit Value at end of period $12.479 $11.921 $10.822 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.865 $10.803 $10.322 Accumulation Unit Value at end of period $12.383 $11.865 $10.803 Number of Accumulation Units outstanding at end of period (in thousands) -- -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.407 $1.162 $0.970 Accumulation Unit Value at end of period $1.580 $1.407 $1.162 Number of Accumulation Units outstanding at end of period (in thousands) 387 198 128 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.397 $1.156 $0.966 Accumulation Unit Value at end of period $1.565 $1.397 $1.156 Number of Accumulation Units outstanding at end of period (in thousands) 50 41 34 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.387 $1.148 $0.961 Accumulation Unit Value at end of period $1.552 $1.387 $1.148 Number of Accumulation Units outstanding at end of period (in thousands) 22 15 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.374 $1.140 $0.955 Accumulation Unit Value at end of period $1.535 $1.374 $1.140 Number of Accumulation Units outstanding at end of period (in thousands) 456 368 317 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.374 $1.140 $0.955 Accumulation Unit Value at end of period $1.535 $1.374 $1.140 Number of Accumulation Units outstanding at end of period (in thousands) 456 368 317 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.355 $1.128 $0.946 Accumulation Unit Value at end of period $1.509 $1.355 $1.128 Number of Accumulation Units outstanding at end of period (in thousands) 16 18 25 WELLS FARGO ADVANTAGE VT SMALL/MID CAP VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.815 $12.100 $10.825 Accumulation Unit Value at end of period $13.536 $13.815 $12.100 Number of Accumulation Units outstanding at end of period (in thousands) 4 -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.772 $12.086 $10.823 Accumulation Unit Value at end of period $13.466 $13.772 $12.086 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.750 $12.079 $10.822 Accumulation Unit Value at end of period $13.431 $13.750 $12.079 Number of Accumulation Units outstanding at end of period (in thousands) 15 13 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.706 $12.065 $10.820 Accumulation Unit Value at end of period $13.362 $13.706 $12.065 Number of Accumulation Units outstanding at end of period (in thousands) 24 20 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.706 $12.065 $10.820 Accumulation Unit Value at end of period $13.362 $13.706 $12.065 Number of Accumulation Units outstanding at end of period (in thousands) 24 20 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.641 $12.044 $10.817 Accumulation Unit Value at end of period $13.259 $13.641 $12.044 Number of Accumulation Units outstanding at end of period (in thousands) -- -- -- WELLS FARGO ADVANTAGE VT TOTAL RETURN BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.186 $1.158 $1.154 Accumulation Unit Value at end of period $1.243 $1.186 $1.158 Number of Accumulation Units outstanding at end of period (in thousands) 514 213 152
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 2005 -------------------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.178 $1.152 $1.150 Accumulation Unit Value at end of period $1.231 $1.178 $1.152 Number of Accumulation Units outstanding at end of period (in thousands) 119 73 67 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.169 $1.144 $1.143 Accumulation Unit Value at end of period $1.221 $1.169 $1.144 Number of Accumulation Units outstanding at end of period (in thousands) 61 39 12 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.158 $1.136 $1.136 Accumulation Unit Value at end of period $1.208 $1.158 $1.136 Number of Accumulation Units outstanding at end of period (in thousands) 501 386 361 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.158 $1.136 $1.136 Accumulation Unit Value at end of period $1.208 $1.158 $1.136 Number of Accumulation Units outstanding at end of period (in thousands) 501 386 361 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.142 $1.124 $1.126 Accumulation Unit Value at end of period $1.187 $1.142 $1.124 Number of Accumulation Units outstanding at end of period (in thousands) 210 135 101
PART A HARTFORD SELECT LEADERS HARTFORD LIFE AND ANNUITY INSURANCE COMPANY SEPARATE ACCOUNT SEVEN (EST. 12/8/86) HARTFORD LIFE INSURANCE COMPANY SEPARATE ACCOUNT SEVEN (EST. 4/1/99) P.O. BOX 5085 HARTFORD, CONNECTICUT 06102-5085 [TELEPHONE ICON] 1-800-862-6668 (CONTRACT OWNERS) 1-800-862-7155 (REGISTERED REPRESENTATIVES) [COMPUTER ICON] WWW.HARTFORDINVESTOR.COM [THE HARTFORD LOGO] -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- This variable annuity is a contract ("Contract") between you and Hartford Life and Annuity Insurance Company or Hartford Life Insurance Company ("us," "we" or "our"). This Prospectus provides information regarding Select Leaders Series V. This is an individual, deferred, flexible-premium variable annuity. Please read this prospectus carefully before investing and keep it for your records. You can also contact us 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" or "Commission"). Although we file this 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 (www.sec.gov). You may also obtain a copy of this prospectus and the Statement of Additional Information, as amended from time to time, in a compact disk by contacting us. This variable annuity may not be suitable for everyone. This variable annuity may not be appropriate for people who do not have a long time horizon for the investments or intend to engage in market timing. If you are investing in a variable annuity through a tax-advantaged retirement plan (such as a 401(k) plan or Individual Retirement Account ("IRA"), you will get NO ADDITIONAL TAX advantage from this variable annuity. Under these circumstances, consider buying a variable annuity only if it makes sense because of the annuity's other features, such as lifetime income payments and death benefit protection. The tax rules that apply to variable annuities can be complicated -- before investing, you may want to consult a tax adviser about the tax consequences to you of investing in a variable annuity. This prospectus is written in connection with the promotion or marketing of the matters(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice. NOT INSURED BY FDIC OR ANY FEDERAL GOVERNMENT MAY LOSE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR [NOT] FDIC AGENCY VALUE ANY BANK AFFILIATE [NOT] BANK
Portfolio Companies Included in this Prospectus: X AIM Variable Insurance Funds X American Funds Insurance Series X Franklin Templeton Variable Insurance Products Trust X Hartford Series Fund, Inc. X MFS Variable Trust X Morgan Stanley Select Dimensions Series X The Universal Institutional Funds, Inc. X Van Kampen Life Investment Trust Please see Appendix A for additional information. -------------------------------------------------------------------------------- PROSPECTUS DATED: MAY 1, 2008 STATEMENT OF ADDITIONAL INFORMATION DATED: MAY 1, 2008 2 ------------------------------------------------------------------------------- TABLE OF CONTENTS
PAGE -------------------------------------------------------------------------------- 1. HIGHLIGHTS 3 2. SYNOPSIS 5 3. GENERAL INFORMATION 8 The Company 8 The Separate Account 8 The Funds 8 Fixed Accumulation Feature 10 4. PERFORMANCE RELATED INFORMATION 10 5. THE CONTRACT 11 a. Purchases and Contract Value 11 b. Charges and Fees 18 c. Surrenders 19 d. Annuity Payouts 22 e. Standard Death Benefits 25 6. OPTIONAL DEATH BENEFITS 28 a. MAV Plus 28 7. OPTIONAL WITHDRAWAL BENEFITS 30 a. The Hartford's Principal First Preferred 30 b. The Hartford's Lifetime Income Foundation 33 c. The Hartford's Lifetime Income Builder II 41 d. The Hartford's Principal First 49 8. MISCELLANEOUS 52 a. Definitions 52 b. State Variations 56 c. Financial Statements 58 d. More Information 58 e. Legal Proceedings 58 f. How Contracts Are Sold 59 9. FEDERAL TAX CONSIDERATIONS 61 10. INFORMATION REGARDING TAX-QUALIFIED RETIREMENT PLANS 67 TABLE OF CONTENTS TO STATEMENT OF ADDITIONAL INFORMATION 74 APPENDIX I -- EXAMPLES APP I-1 APPENDIX II -- ACCUMULATION UNIT VALUES APP II-1 APPENDIX A -- PRODUCT COMPARISON INFORMATION APP A-1 APPENDIX B -- OPTIONAL BENEFITS COMPARISONS APP B-1 APPENDIX C -- THE HARTFORD'S LIFETIME INCOME BUILDER APP C-1 APPENDIX D -- EXCHANGE PROGRAMS APP D-1 APPENDIX E -- INFORMATION REGARDING CONTRACT SERIES NO LONGER SOLD APP E-1
3 ------------------------------------------------------------------------------- 1. HIGHLIGHTS A. OVERVIEW This is a deferred, flexible-premium variable annuity. A deferred variable annuity has an accumulation phase and a payout phase. You make investments during the accumulation phase. The value of your investments is used to set your benefits. At the end of the accumulation phase, we use that accumulated value to set the payments that we make during the payout phase. Generally speaking, the longer the accumulation phase, the greater your Contract Value will be for setting your benefits and annuity payouts. This variable annuity lets you: X Invest among different investment options. (Sections 3, 5(a) & Appendix A) X Make tax-free transfers among investment options. (Sections 5(a), 9 & 10) X Defer taxes on your investments until you withdraw your money (subject to possible IRS penalty). (Sections 5(c), 9 & 10) X Choose from among several optional living benefits that provide guaranteed withdrawals over a fixed or an indeterminate time period. (Sections 2, 7 & Appendix B) X Collect Annuity Payouts over a fixed or an indeterminate time period. (Section 5(d)) X Select among different Death Benefits. (Sections 2, 5(e), 6, 7(b), 7(c) & Appendices I & B) B. HOW TO BUY OUR VARIABLE ANNUITY (Sections 5(a), 8(a) & Appendix A) [In writing] Complete our application or order request and submit it to your Financial Intermediary for approval. $ Include the applicable minimum Premium Payment. [Thumbs up] Choose an optional feature right for you. Options include:
OPTIONAL FEATURE GENERAL PURPOSE -------------------------------------------------------------------------------- MAV/MAV Plus Guaranteed Minimum Death Benefit that ratchets up based on performance The Hartford's Principal First Guaranteed Minimum Withdrawal Benefit with periodic step-up rights The Hartford's Principal First Guaranteed Minimum Withdrawal Benefit Preferred The Hartford's Lifetime Income Builder Guaranteed Minimum Lifetime Withdrawal Selects Benefit with limited annual step-up rights The Hartford's Lifetime Income Builder Guaranteed Minimum Lifetime Withdrawal Portfolios Benefit with full annual step-up rights The Hartford's Lifetime Income Builder Guaranteed Minimum Lifetime Withdrawal II Benefit with limited annual step-up rights The Hartford's Lifetime Income Builder Guaranteed Minimum Lifetime Withdrawal Foundation Benefit
For The Hartford's Lifetime Income Builder Selects, we reserve the right to limit the Funds into which you may allocate your Contract Value. For The Hartford's Lifetime Income Builder Portfolios, your Contract Value must be invested in one or more Programs and in an approved model portfolio, Funds, or other investment vehicles established from time to time. Partial Surrenders taken prior to the Lifetime Eligibility Date or in excess of the available Lifetime Benefit Payment will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold/Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Threshold/Lifetime Benefit Payment. Optional features are subject to restrictions that may limit or eliminate the availability of these benefits. Optional features selected will be identified on your application and Contract. Not every optional feature may be available from your Financial Intermediary and may be subject to additional restrictions. Other optional features that are not actively sold are referenced in Appendix C. For more information, see Section 7 & Appendix B. Not every variation of this variable annuity may be available from your Financial Intermediary. 4 ------------------------------------------------------------------------------- C. INVESTMENT OPTIONS (Sections 3, 5(a) & Appendices II & A) You may invest in: X Funds with different investment strategies, objectives and risk/reward profiles. X In certain circumstances, you may also invest in a Fixed Accumulation Feature. D. CHARGES AND FEES (Sections 2, 5(b), 5(c) & Appendices II, A & B) You will pay the following types of fees: X Sales charges (varies by Contract version) X Contract expenses (varies by Contract version) X Optional rider fees (if selected) X Fund expenses E. ASK QUESTIONS BEFORE YOU INVEST Before you decide to buy any variable annuity, consider the following questions: - Will you use the variable annuity primarily to save for retirement or a similar long-term goal? - Are you investing in the variable annuity through a retirement plan or IRA (which would mean that you are not receiving any additional tax-deferral benefit from the variable annuity)? - Are you willing to take the risk that your Contract Value may decrease if your underlying investment options perform poorly? - Do you intend to hold this variable annuity long enough to avoid paying any applicable surrender charges if you have to withdraw money? - If you are exchanging one annuity for another one, do the benefits of the exchange outweigh the costs, such as any applicable surrender charges you might have to pay if you withdraw your money before the end of any surrender charge period for the new annuity? - Do you need an optional living or Death Benefit? - If you are purchasing our "Plus" variable annuity, are you sure that you understand that you are buying a "bonus" annuity? Do you understand that you pay for Payment Enhancements through higher surrender charges, a longer surrender period and higher mortality and expense risk charges? Do you know that we may take back some or all Payment Enhancements in certain circumstances? Here are a few suggestions that might make it easier for you to use this prospectus: X We use a lot of defined terms to describe how this variable annuity works. These terms are capitalized and described in the Definition section (section 8(a)). Unavoidably, we sometimes interchangeably use different terms that essentially mean the same thing (for instance, this variable annuity is also called a "Contract"). X We include cross references to other sections to help describe certain aspects of this variable annuity in more detail. For example, we may describe an optional benefit in section 7 but examples of how it works are in Appendix I. X Know what kind of variable annuity you are buying. We have noted what type of variable annuity (and in some instances, what series of variable annuity) this is on the cover page of this prospectus. This information will also appear in your application and Contract. Even though we have included comparison information about other variations of this variable annuity so that you can have a better idea which one might be appropriate for you, you may only need to focus only on those sections that specifically apply to the form of variable annuity you chose. X The format and tables provided are designed to help you compare features. We have used a consistent question and answer format in sections 6 and 7 to make it easier to compare optional benefits. Appendix B provides a summary of these features in an easy to read table. Likewise, Appendix A is designed to compare and contrast different variations of this variable annuity. F. COMMISSIONS FOR SELLING THIS VARIABLE ANNUITY (Section 8(f) & Appendix A) We pay a commission for selling this variable annuity to you. Commissions vary based on a variety of factors such as whether they are paid up front or over time, the type of variable annuity sold and your age. We also provide various promotional incentives to Financial Intermediaries to promote our products. These arrangements create a potential conflict of interest. You should ask your Registered Representative for information regarding these matters. 5 ------------------------------------------------------------------------------- 2. SYNOPSIS THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY WHEN BUYING, OWNING AND SURRENDERING YOUR VARIABLE ANNUITY. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT YOU BUY OR SURRENDER THIS VARIABLE ANNUITY. STATE PREMIUM TAXES MAY ALSO BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES SALES CHARGE IMPOSED ON PURCHASES (as a percentage of Premium Payments) None $0 - $49,999 0% $50,000 - $99,999 0% $100,000 - $249,999 0% $250,000 - $499,999 0% $500,000 - $999,999 0% $1,000,000+ 0% CONTINGENT DEFERRED SALES CHARGE* (as a percentage of Premium Payments) First Year 7% Second Year 7% Third Year 7% Fourth Year 6% Fifth Year 5% Sixth Year 4% Seventh Year 3% Eighth Year 0% Ninth Year 0% SURRENDER FEE (as a percentage of amount Surrendered, if applicable) None EXCHANGE FEE None
* Each Premium Payment has its own Contingent Deferred Sales Charge schedule. CONTRACT OWNER PERIODIC EXPENSES THE NEXT TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY AND ON A DAILY BASIS (EXCEPT AS NOTED) DURING THE TIME THAT YOU OWN THIS VARIABLE ANNUITY, NOT INCLUDING FUND FEES AND EXPENSES. ANNUAL MAINTENANCE FEE (1) $30 SEPARATE ACCOUNT ANNUAL EXPENSES (as a percentage of average daily Account Value) Mortality and Expense Risk Charge 1.15% Administrative Charge 0.20% Total Separate Account Annual Expenses 1.35% MAXIMUM OPTIONAL CHARGES (as a percentage of average daily Account Value) The Hartford's Principal First Preferred Charge (5) 0.20% The Hartford's Principal First Charge (2)(5) 0.75% MAV/MAV Plus Charge 0.30% Total Separate Account Annual Expenses with optional benefit separate account charges 2.40% MAXIMUM OPTIONAL CHARGES (3) (as a percentage of Benefit Amount or Payment Base (4))(5) The Hartford's Lifetime Income Foundation Charge 0.30% The Hartford's Lifetime Income Builder II Charge (2)(5) 0.75% The Hartford's Lifetime Income Builder Charge (2)(5) 0.75%
6 ------------------------------------------------------------------------------- The Hartford's Lifetime Income Builder Selects (2)(3)(5) Single Life Option Charge 1.50 % Joint/Spousal Life Option Charge 1.50 % The Hartford's Lifetime Income Builder Portfolios (2)(3)(5) Single Life Option Charge 1.50 % Joint/Spousal Life Option Charge 1.50 %
(1) Fee waived if Contract Value is $50,000 or more on your Contract Anniversary or when you fully Surrender your Contract. (2) The current charges for new purchases are The Hartford's Lifetime Income Builder (0.40%), The Hartford's Lifetime Income Builder II (0.40%) and The Hartford's Principal First (0.50%), The Hartford's Lifetime Income Builder Selects (0.55%) and The Hartford's Lifetime Income Builder Portfolios (0.65%). (3) Charge deducted on each Contract Anniversary and when you fully Surrender your Contract. (4) See "Does the Benefit Amount/Payment Base change under this rider?" in Section 6 for a description of the terms "Benefit Amount" and "Payment Base." (5) You may not own more than one of these optional riders at the same time. THE NEXT ITEM SHOWS THE MINIMUM AND MAXIMUM TOTAL FUND OPERATING EXPENSES CHARGED BY THE FUNDS THAT YOU MAY PAY ON A DAILY BASIS DURING THE TIME THAT YOU OWN THIS VARIABLE ANNUITY. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND.
MINIMUM MAXIMUM --------------------------------------------------------------------------------------------------------------------------------- TOTAL ANNUAL FUND OPERATING EXPENSES 0.47% 1.84% (these are expenses that are deducted from Fund assets, including management fees, Rule 12b-1 distribution and/or service fees, and other expenses)
7 ------------------------------------------------------------------------------- EXAMPLE THIS EXAMPLE IS INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THIS VARIABLE ANNUITY WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITIES. LET'S SAY, HYPOTHETICALLY, THAT YOUR ANNUAL INVESTMENT RETURN IS 5% AND THAT YOUR FEES AND EXPENSES TODAY WERE AS HIGH AS POSSIBLE. THE EXAMPLE ILLUSTRATES THE EFFECT OF FEES AND EXPENSES THAT YOU COULD INCUR (OTHER THAN TAXES). YOUR ACTUAL FEES AND EXPENSES MAY VARY. FOR EVERY $10,000 INVESTED, HERE'S HOW MUCH YOU WOULD PAY UNDER EACH OF THE THREE SCENARIOS POSED: (1) If you Surrender your variable annuity at the end of the applicable time period: 1 year $1,126 3 years $2,064 5 years $2,815 10 years $4,708
(2) If you annuitize at the end of the applicable time period: 1 year $358 3 years $1,289 5 years $2,227 10 years $4,600
(3) If you do not Surrender your variable annuity: 1 year $464 3 years $1,395 5 years $2,334 10 years $4,708
CONDENSED FINANCIAL INFORMATION -------------------------------------------------------------------------------- When Premium Payments are credited to your Funds, they are converted into Accumulation Units by dividing the amount of your Premium Payments, minus any Premium Taxes, by the Accumulation Unit Value for that day. For more information on how Accumulation Unit Values are calculated see Section 5(a). Please refer to Appendix II for information regarding the minimum and maximum class of Accumulation Unit Values. All classes of Accumulation Unit Values may be obtained, free of charge, by contacting us. 8 ------------------------------------------------------------------------------- 3. GENERAL INFORMATION THE COMPANY We are a stock life insurance company engaged in the business of writing life insurance and individual and group annuities. Hartford Life Insurance Company is authorized to do business in all states of the United States and the District of Columbia. Hartford Life and Annuity Insurance Company is authorized to do business in all states of the United States except New York, the District of Columbia and Puerto Rico. Hartford Life and Annuity Insurance Company was originally incorporated under the laws of Wisconsin on January 9, 1956, and subsequently redomiciled to Connecticut. Hartford Life Insurance Company was originally incorporated under the laws of Massachusetts on June 5, 1902, and subsequently redomiciled to Connecticut. Our offices are located in Simsbury, Connecticut. Not all Contracts are available from each issuing company. Neither company cross guarantees the obligations of the other. We are ultimately controlled by The Hartford Financial Services Group, Inc., one of the largest financial service providers in the United States. THE SEPARATE ACCOUNT We set aside and invest the assets of some of our annuity contracts, including this Contract, in a Separate Account. These Separate Accounts are registered as a unit investment trust under the 1940 Act. This registration does not involve supervision by the SEC of the management or the investment practices of a Separate Account or us. Separate Accounts meet the definition of "Separate Account" under federal securities law. The Separate Accounts referenced in this prospectus hold only assets for variable annuity contracts. These Separate Accounts: - Hold assets for your benefit and the benefit of other Contract Owners, and the persons entitled to the payouts described in the Contract. - Are not subject to the liabilities arising out of any other business we may conduct. All guarantees under the Contract are our general corporate obligations. - Are not affected by the rate of return of our General Account or by the investment performance of any of our other Separate Accounts. - May be subject to liabilities from a Sub-Account of a Separate Account that holds assets of other variable annuity contracts offered by a Separate Account, which are not described in this prospectus. - Are credited with income and gains, and takes losses, whether or not realized, from the assets they hold without regard to our other income, gains or loss. We do not guarantee the investment results of any Separate Account. There is no assurance that the value of your Contract will equal the total of the payments you make to us. THE FUNDS The Funds available for investment are described in Appendix A. These are not the same mutual funds that you can buy through your stockbroker even though they may have similar investment strategies and the same portfolio managers. Each Fund has varying degrees of investment risk. Funds are also subject to separate fees and expenses such as management fees, distribution fees and operating expenses. PLEASE CONTACT US TO OBTAIN A COPY OF THE PROSPECTUSES FOR EACH FUND. YOU SHOULD READ THESE PROSPECTUSES CAREFULLY BEFORE INVESTING. We do not guarantee the investment results of any Fund. Certain Funds may not be available in all states and in all variations of this Contract. MIXED AND SHARED FUNDING -- Fund shares may be sold to our other separate accounts, our insurance company affiliates or other unaffiliated insurance companies to serve as an underlying investment for variable annuity contracts and variable life insurance policies, pursuant to a practice known as "mixed and shared funding." As a result, there is a possibility that a material conflict may arise between the interests of Contract Owners, and other contract owners investing these Funds. If a material conflict arose, we will consider what action may be appropriate, including removing the Fund from the Separate Account or replacing the Fund with another underlying fund. VOTING RIGHTS -- We are the legal owners of all Fund shares held in the Separate Account and we have the right to vote at the Funds' shareholder meetings. To the extent required by federal securities laws or regulations, we will: - Notify you of any Fund shareholders' meeting if the shares held for your Contract may be voted. - Send proxy materials and a form of instructions that you can use to tell us how to vote the Fund shares held for your Contract. - Arrange for the handling and tallying of proxies received from Contract Owners. 9 ------------------------------------------------------------------------------- - Vote all Fund shares attributable to your Contract according to instructions received from you, and - Vote all Fund shares for which no voting instructions are received in the same proportion as shares for which instructions have been received. If any federal securities laws or regulations, or their present interpretation, change to permit us to vote Fund shares on our own, we may decide to do so. You may attend any shareholder meeting at which shares held for your Contract may be voted. After we begin to make Annuity Payouts to you, the number of votes you have will decrease. As a result of proportional voting, a small number of Contract Owners could determine the outcome of a proposition subject to shareholder vote. SUBSTITUTIONS, ADDITIONS, OR DELETIONS OF FUNDS -- Subject to any applicable law, we may make certain changes to the underlying funds offered under your Contract. We may, in our sole discretion, establish new Funds. New Funds may be made available to existing Contract Owners as we deem appropriate. We may also close one or more Funds to additional Premium Payments or transfers from existing Funds. We may liquidate one or more Sub-Accounts if the board of directors of any Fund determines that such actions are prudent. Unless otherwise directed, investment instructions will be automatically updated to reflect the Fund surviving after any merger, substitution or liquidation. We may eliminate the shares of any of the Funds from the Contract for any reason and we may substitute shares of another registered investment company for the shares of any Fund already purchased or to be purchased in the future by the Separate Account. To the extent required by the 1940 Act, substitutions of shares attributable to your interest in a Fund will not be made until we have the approval of the SEC and we have notified you of the change. In the event of any substitution or change, we may, by appropriate endorsement, make any changes in the Contract necessary or appropriate to reflect the substitution or change. If we decide that it is in the best interest of the Contract Owners, the Separate Account may be operated as a management company under the 1940 Act or any other form permitted by law, may be de-registered under the 1940 Act in the event such registration is no longer required, or may be combined with one or more other Separate Accounts. FEES WE RECEIVE FROM FUNDS AND RELATED PARTIES -- We receive substantial and varying administrative service payments and Rule 12b-1 fees from certain Funds or related parties. These types of payments and fees are sometimes referred to as "revenue sharing" payments. We consider these payments and fees among a number of factors when deciding to add or keep a fund on the menu of Funds that we offer through the Contract. We collect these payments and fees under agreements between us and a Fund's principal underwriter, transfer agent, investment adviser and/or other entities related to the Fund. We expect to make a profit on these fees. The availability of these types of arrangements creates an incentive for us to seek and offer Funds (and classes of shares of such Funds) that pay us revenue sharing. Other funds (or available classes of shares) may have lower fees and better overall investment performance. As of December 31, 2007, we have entered into arrangements to receive administrative service payments and/or Rule 12b-1 fees from each of the following Fund complexes (or affiliated entities): AIM Advisors, Inc., AllianceBernstein Variable Products Series Funds & Alliance Bernstein Investments, American Variable Insurance Series & Capital Research and Management Company, Branch Banking & Trust Company, Evergreen Investment Services Inc., Fidelity Distributors Corporation, Fidelity Investments Institutional Operations Company, Fifth Third Bank Corporation, Franklin Templeton Services, LLC, The Huntington Funds, Lord Abbett Series Fund & Lord Abbett Distributor, LLC, MFS Fund Distributors, Inc. & Massachusetts Financial Services Company, Merrill Lynch Asset Management & Princeton Funds Distributor, Morgan Stanley Distribution, Inc. & Morgan Stanley Investment Management & The Universal Institutional Funds, MTB Investment Advisors, Inc., Banc of America Advisors, LLC, Banc One Investment Advisors Corporation, Oppenheimer Variable Account Funds & Oppenheimer Funds Distributor, Inc., Pioneer Variable Contracts Trust & Pioneer Investment Management, Inc. & Pioneer Funds Distributor, Inc., Prudential Investment Management Services, LLC, Putnam Retail Management Limited Partnership, SunTrust Securities, Inc. & Trusco Capital Management, Inc., UBS Financial Services, Inc., Van Kampen Life Investment Trust & Van Kampen Asset Management, Van Kampen Funds, The Victory Variable Insurance Funds & Victory Capital Management, Inc. & Victory Capital Advisers, Inc. and Wells Fargo Variable Trust & Wells Fargo Fund Management, LLC. We are affiliated with Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (collectively, the "HLS Funds") based on our affiliation with their investment advisers HL Investment Advisors, LLC and Hartford Investment Management Company. In addition to investment advisory fees, we, or our other insurance company affiliates, receive fees to provide, among other things, administrative, processing, accounting and shareholder services for the HLS Funds. Not all Fund complexes pay the same amounts of revenue sharing payments and/or Rule 12b-1 fees. Therefore, the amount of fees we collect may be greater or smaller based on the Funds you select. Revenue sharing and Rule 12b-1 fees did not exceed 0.50% and 0.25%, respectively, in 2007, and are not expected to exceed 0.50% and 0.35%, respectively, in 2008, of the annual percentage of 10 ------------------------------------------------------------------------------- the average daily net assets (for instance, in 2007, assuming that you invested in a Fund that paid us the maximum fees and you maintained a hypothetical average balance of $10,000, we would collect $75 from that Fund). We will endeavor to update this listing annually and interim arrangements may not be reflected. For the fiscal year ended December 31, 2007, revenue sharing and Rule 12b-1 fees did not exceed $162.2 million. These fees do not take into consideration indirect benefits received by offering HLS Funds as investment options. FIXED ACCUMULATION FEATURE THIS PORTION OF THE PROSPECTUS RELATING TO THE FIXED ACCUMULATION FEATURE IS NOT REGISTERED UNDER THE 1933 ACT AND THE FIXED ACCUMULATION FEATURE IS NOT REGISTERED AS AN INVESTMENT COMPANY UNDER THE 1940 ACT. THE FIXED ACCUMULATION FEATURE OR ANY OF ITS INTERESTS ARE NOT SUBJECT TO THE PROVISIONS OR RESTRICTIONS OF THE 1933 ACT OR THE 1940 ACT, AND THE STAFF OF THE SEC HAS NOT REVIEWED THE DISCLOSURE REGARDING THE FIXED ACCUMULATION FEATURE. THE FOLLOWING DISCLOSURE ABOUT THE FIXED ACCUMULATION FEATURE MAY BE SUBJECT TO CERTAIN GENERALLY APPLICABLE PROVISIONS OF THE FEDERAL SECURITIES LAWS REGARDING THE ACCURACY AND COMPLETENESS OF DISCLOSURES. THE FIXED ACCUMULATION FEATURE IS NOT OFFERED IN ALL CONTRACTS. Premium Payments and Contract Values allocated to the Fixed Accumulation Feature become a part of our General Account assets. We invest the assets of the General Account according to the laws governing the investments of insurance company General Accounts. Premium Payments and Contract Values allocated to the Fixed Accumulation Feature are available to our general creditors. We guarantee that we will credit interest to amounts you allocate to the Fixed Accumulation Feature at a rate that meets your State's minimum requirements. We may change the minimum guaranteed interest rate subject only to applicable State insurance law. We may credit interest at a rate in excess of the minimum guaranteed interest rate. We will periodically publish the Fixed Accumulation Feature interest rates currently in effect. There is no specific formula for determining interest rates. Some of the factors that we may consider in determining whether to credit excess interest are: general economic trends, rates of return currently available and anticipated on our investments, regulatory and tax requirements and competitive factors. We will account for any deductions, Surrenders or transfers from the Fixed Accumulation Feature on a "first-in first-out" basis. The Fixed Accumulation Feature interest rates may vary by State. ANY INTEREST CREDITED TO AMOUNTS YOU ALLOCATE TO THE FIXED ACCUMULATION FEATURE IN EXCESS OF THE MINIMUM GUARANTEED INTEREST RATE WILL BE DETERMINED AT OUR SOLE DISCRETION. YOU ASSUME THE RISK THAT INTEREST CREDITED TO THE FIXED ACCUMULATION FEATURE MAY NOT EXCEED THE MINIMUM GUARANTEED INTEREST RATE FOR ANY GIVEN YEAR. From time to time, we may credit increased interest rates under certain programs established in our sole discretion. We may restrict your ability to allocate Contract Values or Premium Payments to the Fixed Accumulation Feature at any time in our sole discretion. We may close the Fixed Accumulation Feature to new Premium Payments or transfers of existing Contract Value. We may also make the Fixed Accumulation Feature available only through enrollment in a program that we establish. 4. PERFORMANCE RELATED INFORMATION The Separate Account may advertise certain performance-related information concerning the Sub-Accounts. Performance information about a Sub-Account is based on the Sub-Account's past performance only and is no indication of future performance. When a Sub-Account advertises its standardized total return, it will usually be calculated from the date of either the Separate Account's inception or the Sub-Account's inception, whichever is later, for one year, five years, and ten years or some other relevant periods if the Sub-Account has not been in existence for at least ten years. Total return is measured by comparing the value of an investment in the Sub-Account at the beginning of the relevant period to the value of the investment at the end of the period. Total return calculations reflect a deduction for Total Annual Fund Operating Expenses, any Contingent Deferred Sales Charge (CDSC), and Separate Account Annual Expenses without any optional charge deductions, and the Annual Maintenance Fee. The Separate Account may also advertise non-standardized total returns that pre-date the inception of the Separate Account. These non-standardized total returns are calculated by assuming that the Sub-Accounts have been in existence for the same periods as the Funds and by taking deductions for charges equal to those currently assessed against the Sub-Accounts. Non-standardized total return calculations reflect a deduction for Total Annual Fund Operating Expenses and Separate Account Annual Expenses without any optional charge deductions, and do not include deduction for CDSC or the Annual Maintenance Fee. This means the non-standardized total return for a Sub-Account is higher than the standardized total return for a Sub-Account. These non-standardized returns must be accompanied by standardized returns. If applicable, the Sub-Accounts may advertise yield in addition to total return. This yield is based on the 30-day SEC yield of the Fund less the recurring charges at the Separate Account level. 11 ------------------------------------------------------------------------------- A money market Sub-Account may advertise yield and effective yield. The yield of a Sub-Account is based upon the income earned by the Sub-Account over a seven-day period and then 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 percentage of the investment. Effective yield is calculated similarly but when annualized, the income earned by the investment is compounded in the course of a 52-week period. Yield and effective yield include the recurring charges at the Separate Account level. We may provide information on various topics to Contract Owners and prospective Contract Owners in advertising, sales literature or other materials. These topics may include the relationship between sectors of the economy and the economy as a whole and its effect on various securities markets, investment strategies and techniques (such as systematic investing, Dollar Cost Averaging and asset allocation), the advantages and disadvantages of investing in tax-deferred and taxable instruments, customer profiles and hypothetical purchase scenarios, financial management and tax and retirement planning, and other investment alternatives, including comparisons between the Contract and the characteristics of and market for such alternatives. 5. THE CONTRACT A. PURCHASES AND CONTRACT VALUE WHO CAN BUY THIS CONTRACT? The Contract is an individual or group tax-deferred variable annuity Contract. It is designed for retirement planning purposes and may be purchased by any individual, group or trust, including: - Any trustee or custodian for a retirement plan qualified under Sections 401(a) or 403(a) of the Code; - Annuity purchase plans adopted by public school systems and certain tax-exempt organizations according to Section 403(b) of the Code; - Individual Retirement Annuities adopted according to Section 408 of the Code; - Employee pension plans established for employees by a state, a political subdivision of a state, or an agency of either a state or a political subdivision of a state; and - Certain eligible deferred compensation plans as defined in Section 457 of the Code. The examples above represent qualified Contracts, as defined by the Code. In addition, individuals and trusts can also purchase Contracts that are not part of a tax qualified retirement plan. These are known as non-qualified Contracts. If you are purchasing the Contract for use in an IRA or other qualified retirement plan, you should consider other features of the Contract besides tax deferral, since any investment vehicle used within an IRA or other qualified plan receives tax-deferred treatment under the Code. Refer to Appendix A for more information about the different forms of contracts we offer. Not all forms of contracts may be available through your Registered Representative or from each issuing company. HOW DO YOU PURCHASE A CONTRACT? You may only purchase a Contract through a Financial Intermediary. A Registered Representative will work with you to complete and submit an application or an order request form. Part of this process will include an assessment whether this variable annuity may be suitable for you. Prior to recommending the purchase or exchange of a deferred variable annuity, your Registered Representative shall make reasonable efforts to obtain certain information about you and your investment needs. This recommendation will be independently reviewed by a principal within your Financial Intermediary before an application or order will be sent to us. Your Premium Payment will not be invested in any Fund during this period. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, your Financial Intermediary will ask for your name, address, date of birth and other information that will allow us to identify you. They may also ask to see your driver's license or other identifying documents. Non-Resident Alien (NRA) application submissions require our prior approval. The minimum initial Premium Payment required to buy this Contract varies based on the type of purchaser, variable annuity variation chosen and whether you enroll in a systematic investment program such as the InvestEase(R) Program. See Appendix A for more information. Financial Intermediaries may impose other requirements regarding the form of payment they will accept. Premium Payments not actually received by us within the time period provided below will result in the rejection of your application or order request. Premium Payments sent to us must be made in U.S. dollars and checks must be drawn on U.S. banks. We do not accept cash, third party checks or double endorsed checks. We reserve the right to limit the number of checks processed at one time. If your check 12 ------------------------------------------------------------------------------- does not clear, your purchase will be cancelled and you could be liable for any losses or fees incurred. A check must clear our account through our Administrative Office to be considered to be in good order. Premium Payments may not exceed $1 million without our prior approval. We reserve the right to impose special conditions on anyone who seeks our approval to exceed this limit. You and your Annuitant must not be older than age 85 on the date that your Contract is issued. You must be of minimum legal age in the state where the Contract is being purchased or a guardian must act on your behalf. Optional riders are subject to additional maximum issue age restrictions. CAN YOU CANCEL YOUR CONTRACT AFTER YOU PURCHASE IT? If for any reason you are not satisfied with your Contract, simply return it within ten days after you receive it with a written request for cancellation that indicates your tax-withholding instructions. In some states, you may be allowed more time to cancel your Contract. We may require additional information, including a signature guarantee, before we can cancel your Contract. Unless otherwise required by state law, we will pay you your Contract Value as of the Valuation Day we receive your request to cancel and will refund any sales or Contract charges incurred during the period you owned the Contract. The Contract Value may be more or less than your Premium Payments depending upon the investment performance of your Account. This means that you bear the risk of any decline in your Contract Value until we receive your notice of cancellation. In certain states, however, we are required to return your Premium Payment without deduction for any fees or charges. HOW ARE PREMIUM PAYMENTS APPLIED TO YOUR CONTRACT? Your initial Premium Payment will usually be invested within two Valuation Days of our actual receipt in-hand at our Administrative Office of both a properly completed application or order request and the Premium Payment; both being in good order. If we receive your subsequent Premium Payment before the end of a Valuation Day, it will be invested on the same Valuation Day. If we receive your subsequent Premium Payment after the end of a Valuation Day, it will be invested on the next Valuation Day. If we receive your subsequent Premium Payment on a non-Valuation Day, the amount will be invested on the next Valuation Day. Unless we receive new instructions, we will invest all Premium Payments based on your last instructions on record. We will send you a confirmation when we invest your Premium Payments. If the request or other information accompanying the initial Premium Payment is incomplete or not in good order when received, we will hold the money in a non-interest bearing account for up to five Valuation Days (from the Valuation Day that we actually receive your initial Premium Payment at our Administrative Office) while we try to obtain complete information. If we cannot obtain the information within five Valuation Days, we will either return the Premium Payment and explain why the Premium Payment could not be processed or keep the Premium Payment if you authorize us to keep it until you provide the necessary information. Generally, we will receive your application or order request (whether for an initial purchase or a subsequent investment) after your Financial Intermediary has completed a suitability review. We will then consider if your investment is in good order. The suitability and good order process can take up to 17 Business Days from when you leave your Premium with your Registered Representative. During this period, Premium Payments will not be applied to your Contract. You will not earn any interest on Premium Payments even if your Premium Payments have been sent to us or deposited into our bank account. We are not responsible for market losses, gains or lost investment opportunities incurred during this review period or if your Financial Intermediary asks us to unwind a transaction based on their review of your Registered Representative's recommendations. Your Financial Institution, and we, may directly or indirectly earn income on your Premium Payments. These circumstances represent a conflict of interest. For more information, contact your Registered Representative. HOW IS THE VALUE OF YOUR CONTRACT CALCULATED BEFORE THE ANNUITY COMMENCEMENT DATE? The Contract Value is the sum of the value of the Fixed Accumulation Feature, if applicable, and all Funds. There are two things that affect your Contract Value: (1) the number of Accumulation Units, and (2) the Accumulation Unit Value. Contract Value is determined by multiplying the number of Accumulation Units by the Accumulation Unit Value. On any Valuation Day the investment performance of the Sub-Accounts will fluctuate with the performance of the Funds. When Premium Payments are credited to your Account, they are converted into Accumulation Units by dividing the amount of your Premium Payments, minus any Premium Taxes, by the Accumulation Unit Value for that day. The more Premium Payments you make to your Contract, the more Accumulation Units you will own. You decrease the number of Accumulation Units you have by requesting partial or full Surrenders, settling a Death Benefit claim or by annuitizing your Contract. To determine the current Accumulation Unit Value, we take the prior Valuation Day's Accumulation Unit Value and multiply it by the Net Investment Factor for the current Valuation Day. 13 ------------------------------------------------------------------------------- The Net Investment Factor is used to measure the investment performance of a Sub-Account from one Valuation Day to the next. The Net Investment Factor for each Sub-Account equals: - The net asset value per share plus applicable distributions per share of each Fund at the end of the current Valuation Day; reduced by - The net asset value per share of each Fund at the end of the prior Valuation Day; reduced by - Contract charges including the deductions for the mortality and expense risk charge and any other periodic expenses, including charges for optional benefits, divided by the number of days in the year multiplied by the number of days in the Valuation period. We will send you a statement at least annually. WHAT OTHER WAYS CAN YOU INVEST? You may enroll in the following features (sometimes called a "Program") for no additional fee. Not all Programs are available with all Contract variations. INVESTEASE This electronic funds transfer feature allows you to have money automatically transferred from your checking or savings account and deposited into your Contract on a monthly or quarterly basis. It can be changed or discontinued at any time. The minimum amount for each transfer is $50. You can elect to have transfers made into any available Fund. You can not use this Program to invest in the DCA Plus Programs. STATIC ASSET ALLOCATION MODELS This feature allows you to select an asset allocation model of Funds based on several potential factors including your risk tolerance, time horizon, investment objectives, or your preference to invest in certain funds or fund families. Based on these factors, you can select one of several asset allocation models, with each specifying percentage allocations among various Funds available under your Contract. Asset allocation models can be based on generally accepted investment theories that take into account the historic returns of different asset classes (e.g., equities, bonds or cash) over different time periods, or can be based on certain potential investment strategies that could possibly be achieved by investing in particular funds or fund families and are not based on such investment theories. If you choose to participate in one of these asset allocation models, you must invest all of your Premium Payment into one model. You may invest in an asset allocation model through the Dollar Cost Averaging Program where the Fixed Accumulation Feature, a Money Market sub-account, or a Dollar Cost Averaging Plus Program is the source of the assets to be invested in the asset allocation model you have chosen. You can also participate in these asset allocation models while enrolled in the Automatic Income Program. You may participate in only one asset allocation model at a time. Asset allocation models cannot be combined with other asset allocation models or with individual sub-account elections. You can switch asset allocation models up to twelve times per year. Your ability to elect or switch into and between asset allocation models may be restricted based on fund abusive trading restrictions. You may be required to invest in an acceptable asset allocation model as a condition for electing and maintaining certain guaranteed minimum withdrawal benefits. Your investments in an asset allocation model will be rebalanced quarterly to reflect the model's original percentages. We have no discretionary authority or control over your investment decisions. These asset allocation models are based on then available Funds and do not include the Fixed Accumulation Feature. We make available educational information and materials (e.g., risk tolerance questionnaire, pie charts, graphs, or case studies) that can help you select an asset allocation model, but we do not recommend asset allocation models or otherwise provide advice as to what asset allocation model may be appropriate for you. While we will not alter allocation percentages used in any asset allocation model, allocation weightings could be affected by mergers, liquidations, fund substitutions or closures. Individual availability of these models is subject to fund company restrictions. Please refer to WHAT RESTRICTIONS ARE THERE ON YOUR ABILITY TO MAKE A SUB-ACCOUNT TRANSFER? for more information. You will not be provided with information regarding periodic updates to the Funds and allocation percentages in the asset allocation models, and we will not reallocate your Account Value based on those updates. Information on updated asset allocation models may be obtained by contacting your Registered Representative. Investment alternatives other than these asset allocation models are available that may enable you to invest your Contract Value with similar risk and return characteristics. When considering an asset allocation model for your individual situation, you should consider your other assets, income and investments in addition to this annuity. 14 ------------------------------------------------------------------------------- - Asset Rebalancing In asset rebalancing, you select a portfolio of Funds, and we will rebalance your assets at the specified frequency to reflect the original allocation percentages you selected. You can choose how much of your Contract Value you want to invest in this program. You can also combine this program with others such as the Automatic Income Program and Dollar Cost Averaging Program (subject to restrictions). You may designate only one set of asset allocation instructions at a time. - Dollar Cost Averaging We offer three dollar cost averaging programs: - DCA Plus - Fixed Amount DCA - Earnings/Interest DCA DCA Plus -- These programs allow you to earn a fixed rate of interest on investments. These programs are different from the Fixed Accumulation Feature. We determine, in our sole discretion, the interest rates to be credited. These interest rates may vary depending on the Contract you purchased. Please consult your Registered Representative to determine the interest rate for your Program. You may elect to lock in a rate of interest using either the "12-Month Transfer Program" or the "6-Month Transfer Program". - Under the 12-Month Transfer Program, new Premium Payments will be credited with an interest rate that will not change for 12 months. You must then transfer these investments into available Funds (and not the Fixed Accumulation Feature) during this 12 month period. You must elect to make not less than 7 nor more than 12 transfers to fully deplete sums invested in this Program. - Under the 6-Month Transfer Program, new Premium Payments will be credited with an interest rate that will not change for 6 months. You must then transfer these investments into available Funds (and not the Fixed Accumulation Feature) during this 6 month period. You must make not less than 3 nor more than 6 transfers at any frequency you chose to fully deplete sums invested in this Program. - Each time you make a subsequent Premium Payment, you can invest in a different rate lock program. Any subsequent investments made in a month (or other interest rate effective period) other than your last program investment are considered a separate rate lock program investment. You can invest in up to 5 different rate lock programs at one time. - You must invest at least $5,000 in each rate lock program ($2,000 for qualified plan transfers or rollovers, including IRAs). We may pre- authorize transfers from our Fixed Accumulation Feature subject to restrictions. This minimum amount applies to the initial and all subsequent Premium Payments in a given rate lock program. - Pre-authorized transfers will begin within 15 days of receipt of the Program payment provided we receive complete enrollment instructions in good order. - If a DCA Plus payment is received without enrollment instructions and a DCA Plus program is active on the contract, we will set up the new Program to mirror the existing one. If a DCA Plus payment is received without enrollment instructions and a DCA Plus program is not active on the contract, but is the future investment allocation and a Static Model Portfolio Plan is active on the contract, we will set up the new Program to move funds to the Static Model Portfolio Plan. Otherwise, we will contact your investment professional to obtain complete instructions. If we do not receive in good order enrollment instructions within the 15 day timeframe noted above, we will refund the Program payment for further instruction. - If your Program payment is less than the required minimum amount, we will invest into the destination funds indicated on the Program instructions accompanying the payment. If Program instructions were not provided and a DCA Plus Program is active on the contract, we will apply the payment to the destination funds of the current DCA Plus program. Otherwise, we will contact your investment professional to obtain further investment instructions. - The credited interest rate used under the DCA Plus Programs is not earned on the full amount of your Premium Payment for the entire length of the Program because Program transfers to Funds decrease the amount of your Premium Payment remaining in the Program. - You may elect to terminate your involvement in this Program at any time. Upon cancellation, all the amounts remaining in the Program will be immediately transferred to the Funds you designated. Fixed Amount DCA -- This feature allows you to regularly transfer (monthly or quarterly) a fixed amount from the Fixed Accumulation Feature (if available based on the form of Contract selected) or any Fund into a different Fund. This program begins in 15 days unless you instruct us otherwise. You must make at least three transfers in order to remain in this program. Earnings/Interest DCA -- This feature allows you to regularly transfer (monthly or quarterly) the interest earned from your investment in the Fixed Accumulation Feature (if available based on the form of Contract selected) or any Fund into another Fund. This program begins two business days plus the frequency selected unless you instruct us otherwise. You must make at least three transfers in order to remain in this program. 15 ------------------------------------------------------------------------------- AUTOMATIC INCOME PROGRAM This systematic withdrawal feature allows you to make partial Surrenders up to 10% of your total Premium Payments each Contract Year without a Contingent Deferred Sales Charge. You can designate the Funds to be surrendered from and also choose the frequency of partial Surrenders (monthly, quarterly, semiannual, or annually). The minimum amount of each Surrender is $100. Amounts taken under this program will count towards the Annual Withdrawal Amount, and if received prior to age 59 1/2, may have adverse tax consequences, including a 10% federal income tax penalty on the taxable portion of the Surrender payment. You may satisfy Code Section 72(t)/(q) requirements by enrolling in this program. Your level of participation in this program may result in your exceeding permissible withdrawal limits under certain optional withdrawal riders. OTHER PROGRAM CONSIDERATIONS - You may terminate your enrollment in any Program at any time. - We may discontinue, modify or amend any of these Programs at any time. We will automatically and unilaterally amend your enrollment instructions if: - any Fund is merged or substituted into another Fund -- then your allocations will be directed to the surviving Fund; or - any Fund is liquidated -- then your allocations will be directed to any available money market Fund. You may always provide us with updated instructions following any of these events. - Continuous or periodic investment neither insures a profit nor protects against a loss in declining markets. Because these Programs involve continuous investing regardless of fluctuating price levels, you should carefully consider your ability to continue investing through periods of fluctuating prices. - We make available educational information and materials (e.g., pie charts, graphs, or case studies) that can help you select a model portfolio, but we do not recommend models or otherwise provide advice as to what model portfolio may be appropriate for you. Asset allocation does not guarantee that your Contract Value will increase nor will it protect against a decline if market prices fall. If you choose to participate in an asset allocation program, you are responsible for determining which model portfolio is best for you. Tools used to assess your risk tolerance may not be accurate and could be useless if your circumstances change over time. Although each model portfolio is intended to maximize returns given various levels of risk tolerance, a model portfolio may not perform as intended. Market, asset class or allocation option class performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause a model portfolio to be ineffective or less effective in reducing volatility. A model portfolio may perform better or worse than any single Fund, allocation option or any other combination of Funds or allocation options. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing and periodic updating of model portfolios can cause their component Funds to incur transactional expenses to raise cash for money flowing out of Funds or to buy securities with money flowing into the Funds. Moreover, large outflows of money from the Funds may increase the expenses attributable to the assets remaining in the Funds. These expenses can adversely affect the performance of the relevant Funds and of the model portfolios. In addition, these inflows and outflows may cause a Fund to hold a large portion of its assets in cash, which could detract from the achievement of the Fund's investment objective, particularly in periods of rising market prices. For additional information regarding the risks of investing in a particular fund, see that Fund's prospectus. - Additional considerations apply for qualified Contracts with respect to Static Asset Allocation Model programs. Neither we, nor any third party service provider, nor any of their respective affiliates, is acting as a fiduciary under The Employee Retirement Income Security Act of 1974, as amended (ERISA) or the Code, in providing any information or other communication contemplated by any Program, including, without limitation, any model portfolios. That information and communications are not intended, and may not serve as a primary basis for your investment decisions with respect to your participation in a Program. Before choosing to participate in a Program, you must determine that you are capable of exercising control and management of the assets of the plan and of making an independent and informed decision concerning your participation in the Program. Also, you are solely responsible for determining whether and to what extent the Program is appropriate for you and the assets contained in the qualified Contract. Qualified Contracts are subject to additional rules regarding participation in these Programs. It is your responsibility to ensure compliance of any recommendation in connection with any model portfolio with governing plan documents. - If you make systematic transfers from the Fixed Accumulation Feature under a Dollar Cost Averaging Program or DCA Plus Program, you must wait 6 months after your last systematic transfer before moving Sub-Account Values back to the Fixed Accumulation Feature. - These Programs may be adversely affected by Fund trading policies. CAN YOU TRANSFER FROM ONE FUND TO ANOTHER? During those phases of your Contract when transfers are permissible, you may make transfers between Funds according to the following policies and procedures, as they may be amended from time to time. 16 ------------------------------------------------------------------------------- In addition, many of the Funds that are available as investment options in our variable annuity products are also available as investment options in variable life insurance policies, retirement plans, funding agreements and other products offered by us or our affiliates. Each day, investors and participants in these other products engage in similar transfer transactions. We take advantage of our size and available technology to combine sales of a particular Fund for many of the variable annuities, variable life insurance policies, retirement plans, funding agreements or other products offered by us or our affiliates. We also combine many of the purchases of that particular Fund for many of the products we offer. We then "net" these trades by offsetting purchases against redemptions. Netting trades has no impact on the net asset value of the Fund shares that you purchase or sell. Netting trades has no impact on the net asset value of the Fund shares that you purchase or sell. This means that we sometimes reallocate shares of a Fund rather than buy new shares or sell shares of the Fund. For example, if we combine all transfer-out (redemption) requests and Surrenders of a stock Fund Sub-Account with all other sales of that Fund from all our other products, we may have to sell $1 million dollars of that Fund on any particular day. However, if other Contract Owners and the owners of other products offered by us want to transfer-in (purchase) an amount equal to $300,000 of that same Fund, then we would send a sell order to the Fund for $700,000 (a $1 million sell order minus the purchase order of $300,000) rather than making two or more transactions. WHAT RESTRICTIONS ARE THERE ON YOUR ABILITY TO MAKE A SUB-ACCOUNT TRANSFER? FIRST, YOU MAY MAKE ONLY ONE SUB-ACCOUNT TRANSFER REQUEST EACH DAY. We limit each Contract Owner to one Sub-Account transfer request each Valuation Day. We count all Sub-Account transfer activity that occurs on any one Valuation Day as one "Sub-Account transfer", however, you cannot transfer the same Contract Value more than once a Valuation Day. EXAMPLES
TRANSFER REQUEST PER VALUATION DAY PERMISSIBLE? -------------------------------------------------------------------------------- Transfer $10,000 from a money market Sub-Account to a growth Yes Sub-Account Transfer $10,000 from a money market Sub-Account to any Yes number of other Sub-Accounts (dividing the $10,000 among the other Sub-Accounts however you chose) Transfer $10,000 from any number of different Sub-Accounts Yes to any number of other Sub-Accounts Transfer $10,000 from a money market Sub-Account to a growth No Sub-Account and then, before the end of that same Valuation Day, transfer the same $10,000 from the growth Sub-Account to an international Sub-Account
SECOND, YOU ARE ALLOWED TO SUBMIT A TOTAL OF 20 SUB-ACCOUNT TRANSFERS EACH CONTRACT YEAR (the "Transfer Rule") by U.S. Mail, Voice Response Unit, Internet or telephone. Once you have reached the maximum number of Sub-Account transfers, you may only submit any additional Sub-Account transfer requests and any trade cancellation requests in writing through U.S. Mail or overnight delivery service. In other words, Voice Response Unit, Internet or telephone transfer requests will not be honored. We may, but are not obligated to, notify you when you are in jeopardy of approaching these limits. For example, we will send you a letter after your 10th Sub-Account transfer to remind you about the Transfer Rule. After your 20th transfer request, our computer system will not allow you to do another Sub-Account transfer by telephone, Voice Response Unit or via the Internet. You will then be instructed to send your Sub-Account transfer request by U.S. Mail or overnight delivery service. We reserve the right to aggregate your Contracts (whether currently existing or those recently surrendered) for the purposes of enforcing these restrictions. The Transfer Rule does not apply to Sub-Account transfers that occur automatically as part of a Company sponsored asset allocation or Dollar Cost Averaging program. Reallocations made based on a Fund merger, substitution, or liquidation also do not count toward this transfer limit. Restrictions may vary based on state law. We make no assurances that the Transfer Rule is or will be effective in detecting or preventing market timing. THIRD, POLICIES HAVE BEEN DESIGNED TO RESTRICT EXCESSIVE SUB-ACCOUNT TRANSFERS. You should not purchase this Contract if you want to make frequent Sub-Account transfers for any reason. In particular, don't purchase this Contract if you plan to engage in "market timing," which includes frequent transfer activity into and out of the same Fund, or frequent Sub-Account transfers in order to exploit any inefficiencies in the pricing of a Fund. Even if you do not engage in market timing, certain restrictions may be imposed. FUND TRADING POLICIES You are subject to Fund trading policies, if any. We are obligated to provide, at the Fund's request, tax identification numbers and other shareholder identifying information contained in our records to assist Funds in identifying any pattern or frequency of Sub-Account transfers that may violate their trading policy. In certain instances, we have agreed to serve as a Fund's agent to help monitor compliance with that Fund's trading policy. 17 ------------------------------------------------------------------------------- We are obligated to follow each Fund's instructions regarding enforcement of their trading policy. Penalties for violating these policies may include, among other things, temporarily or permanently limiting or banning you from making Sub-Account transfers into a Fund or other funds within that fund complex. We are not authorized to grant exceptions to a Fund's trading policy. Please refer to each Fund's prospectus for more information. Fund abusive trading policies do not apply or may be limited. For instance: - Certain types of financial intermediaries may not be required to provide us with shareholder information. - "Excepted funds" such as money market funds and any Fund that affirmatively permits short-term trading of its securities may opt not to adopt this type of policy. This type of policy may not apply to any financial intermediary that a Fund treats as a single investor. - A Fund can decide to exempt categories of contract holders whose contracts are subject to inconsistent trading restrictions or none at all. - Non-shareholder initiated purchases or redemptions may not always be monitored. These include Sub-Account transfers that are executed: (i) automatically pursuant to a company sponsored contractual or systematic program such as transfers of assets as a result of "dollar cost averaging" programs, asset allocation programs, automatic rebalancing programs, annuity payouts, loans, or systematic withdrawal programs; (ii) as a result of the payment of a Death Benefit; (iii) as a step-up in Contract Value pursuant to a Contract Death Benefit or guaranteed minimum withdrawal benefit; (iv) as a result of any deduction of charges or fees under a Contract; or (v) as a result of payments such as loan repayments, scheduled contributions, scheduled withdrawals or surrenders, retirement plan salary reduction contributions, or planned premium payments. POSSIBILITY OF UNDETECTED ABUSIVE TRADING OR MARKET TIMING. We may not be able to detect or prevent all abusive trading or market timing activities. For instance, - Since we net all the purchases and redemptions for a particular Fund for this and many of our other products, transfers by any specific market timer could be inadvertently overlooked. - Certain forms of variable annuities and types of Funds may be attractive to market timers. We can not provide assurances that we will be capable of addressing possible abuses in a timely manner. - These policies apply only to individuals and entities that own this Contract or have the right to make transfers (regardless of whether requests are made by you or anyone else acting on your behalf). However, the Funds that make up the Sub-Accounts of this Contract are also available for use with many different variable life insurance policies, variable annuity products and funding agreements, and are offered directly to certain qualified retirement plans. Some of these products and plans may have less restrictive transfer rules or no transfer restrictions at all. HOW ARE YOU AFFECTED BY FREQUENT SUB-ACCOUNT TRANSFERS? We are not responsible for losses or lost investment opportunities associated with the effectuation of these policies. Frequent Sub-Account transfers may result in the dilution of the value of the outstanding securities issued by a Fund as a result of increased transaction costs and lost investment opportunities typically associated with maintaining greater cash positions. This can adversely impact Fund performance and, as a result, the performance of your Contract. This may also lower the Death Benefit paid to your Beneficiary or lower Annuity Payouts for your Payee as well as reduce value of other optional benefits available under your Contract. Separate Account investors could be prevented from purchasing Fund shares if we reach an impasse on the execution of a Fund's trading instructions. In other words, a Fund complex could refuse to allow new purchases of shares by all our variable product investors if the Fund and we can not reach a mutually acceptable agreement on how to treat an investor who, in a Fund's opinion, has violated the Fund's trading policy. In some cases, we do not have the tax identification number or other identifying information requested by a Fund in our records. In those cases, we rely on the Contract Owner to provide the information. If the Contract Owner does not provide the information, we may be directed by the Fund to restrict the Contract Owner from further purchases of Fund shares. In those cases, all participants under a plan funded by the Contract will also be precluded from further purchases of Fund shares. FIXED ACCUMULATION FEATURE TRANSFERS -- If applicable, during each Contract Year, you may make transfers out of the Fixed Accumulation Feature to the Sub-Accounts, subject to the transfer restrictions discussed below. All transfer allocations must be in whole numbers (e.g., 1%). Each Contract Year you may transfer the greater of: - 30% of the greatest Contract Value in the Fixed Accumulation Feature as of any Contract Anniversary or Contract issue date. When we calculate the 30%, we add Premium Payments made after that date but before the next Contract Anniversary. The 30% does not include Contract Value in any DCA Plus Program; or 18 ------------------------------------------------------------------------------- - An amount equal to your largest previous transfer from the Fixed Accumulation Feature in any one Contract Year. We apply these restrictions to all transfers from the Fixed Accumulation Feature, including all systematic transfers and Dollar Cost Averaging Programs, except for transfers under our DCA Plus Program. If your interest rate renews at a rate at least 1% lower than your prior interest rate, you may transfer any amount up to 100% of the amount to be invested at the renewal rate. You must make this transfer request within 60 days of being notified of the renewal rate. We may defer transfers and Surrenders from the Fixed Accumulation Feature for up to 6 months from the date of your request. You must wait 6 months after your most recent transfer from the Fixed Accumulation Feature before moving Sub-Account Values back to the Fixed Accumulation Feature. If you make systematic transfers from the Fixed Accumulation Feature under a Dollar Cost Averaging Program or DCA Plus Program, you must wait 6 months after your last systematic transfer before moving Sub-Account Values back to the Fixed Accumulation Feature. As a result of these limitations, it may take a significant amount of time (i.e., several years) to move Contract Values in the Fixed Accumulation Feature to Sub-Accounts and therefore this may not provide an effective short term defensive strategy. TELEPHONE AND INTERNET TRANSFERS -- Transfer instructions received by telephone before the end of any Valuation Day will be carried out at the end of that day. Otherwise, the instructions will be carried out at the end of the next Valuation Day. Transfer instructions you send electronically are considered to be received by us at the time and date stated on the electronic acknowledgement we return to you. If the time and date indicated on the acknowledgement is before the end of any Valuation Day, the instructions will be carried out at the end of that Valuation Day. Otherwise, the instructions will be carried out at the end of the next Valuation Day. If you do not receive an electronic acknowledgement, you should contact us as soon as possible. We will send you a confirmation when we process your transfer. You are responsible for verifying transfer confirmations and promptly reporting any inaccuracy or discrepancy to us and your Registered Representative. Any oral communication should be re-confirmed in writing. Telephone or Internet transfer requests may currently only be cancelled by calling us before the end of the Valuation Day you made the transfer request. We, our agents or our affiliates are NOT responsible for losses resulting from telephone or electronic requests that we believe are genuine. We will use reasonable procedures to confirm that instructions received by telephone or through our website are genuine, including a requirement that Contract Owners provide certain identification information, including a personal identification number. We record all telephone transfer instructions. We may suspend, modify, or terminate telephone or electronic transfer privileges at any time. POWER OF ATTORNEY -- You may authorize another person or your Registered Representative to make transfers on your behalf by submitting a completed power of attorney form. Once we have the completed form on file, we will accept transfer instructions, subject to our transfer restrictions, from your designated third party until we receive new instructions in writing from you. You will not be able to make transfers or other changes to your Contract if you have authorized someone else to act under a power of attorney. B. CHARGES AND FEES MORTALITY AND EXPENSE RISK CHARGE We deduct a daily charge for assuming mortality and expense risks under the Contract. This charge is deducted from your Sub-Account Value. The mortality and expense risk charge is broken into charges for mortality risks and for an expense risk: - Mortality Risk -- There are two types of mortality risks that we assume, those made while your Premium Payments are accumulating and those made once Annuity Payouts have begun. During the accumulation phase of your Contract, we are required to cover any difference between the Death Benefit paid and the Surrender Value. These differences may occur in periods of declining value or in periods where the CDSCs would have been applicable. The risk that we bear during this period is that actual mortality rates, in aggregate, may exceed expected mortality rates. Once Annuity Payouts have begun, we may be required to make Annuity Payouts as long as the Annuitant is living, regardless of how long the Annuitant lives. The risk that we bear during this period is that the actual mortality rates, in aggregate, may be lower than the expected mortality rates. - Expense Risk -- We also bear an expense risk that the CDSCs, if applicable, and the Annual Maintenance Fee collected before the Annuity Commencement Date may not be enough to cover the actual cost of selling, distributing and administering the Contract. 19 ------------------------------------------------------------------------------- Although variable Annuity Payouts will fluctuate with the performance of the Fund selected, your Annuity Payouts will NOT be affected by (a) the actual mortality experience of our Annuitants, or (b) our actual expenses if they are greater than the deductions stated in the Contract. Because we cannot be certain how long our Annuitants will live, we charge this percentage fee based on the mortality tables currently in use. The mortality and expense risk charge enables us to keep our commitments and to pay you as planned. If the mortality and expense risk charge under a Contract is insufficient to cover our actual costs, we will bear the loss. If the mortality and expense risk charge exceeds these costs, we keep the excess as profit. We may use these profits, as well as revenue sharing and Rule 12b-1 fees received from certain Funds, for any proper corporate purpose including, among other things, payment of sales expenses, including the fees paid to distributors. We expect to make a profit from the mortality and expense risk charge. ANNUAL MAINTENANCE FEE The Annual Maintenance Fee is a flat fee that is deducted from your Contract Value to reimburse us for expenses relating to the administrative maintenance of the Contract and your Account. The annual charge is deducted on a Contract Anniversary or when the Contract is fully Surrendered if the Contract Value at either of those times is less than $50,000. The charge is deducted proportionately from each Sub-Account in which you are invested. We will waive the Annual Maintenance Fee if your Contract Value is $50,000 or more on your Contract Anniversary or when you fully Surrender your Contract. In addition, we will waive one Annual Maintenance Fee for Contract Owners who own more than one Contract with a combined Contract Value between $50,000 and $100,000. If you have multiple Contracts with a combined Contract Value of $100,000 or greater, we will waive the Annual Maintenance Fee on all Contracts. However, we may limit the number of waivers to a total of six Contracts. We also may waive the Annual Maintenance Fee under certain other conditions. We do not include contracts from our Putnam Hartford line of variable annuity contracts with the Contracts when we combine Contract Value for purposes of this waiver. ADMINISTRATIVE CHARGE We apply a daily administration charge against all Contract Values held in the Separate Account during both the accumulation and annuity phases of the Contract. There is not necessarily a relationship between the amount of administrative charge imposed on a given Contract and the amount of expenses that may be attributable to that Contract; expenses may be more or less than the charge. This charge compensates us for administrative expenses that exceed revenues from the Annual Maintenance Fee described above. PREMIUM TAXES We deduct premium taxes, if required, by a state or other government agency. Some states collect these taxes when Premium Payments are made; others collect at Annuitization. Since we pay premium taxes when they are required by applicable law, we may deduct them from your Contract when we pay the taxes, upon Surrender, or on the Annuity Commencement Date. The premium tax rate varies by state or municipality and currently ranges from 0% - 3.5%. SALES CHARGES We offer three contract variations that have a CDSC (these forms of contract are called "Outlook", "Plus" and our base contract (which does not have a separate marketing name but is sometimes referred to in this prospectus as the "Core" version)), one contract version has a front end sales charge (called "Edge") and one contract version has no sales charge (called "Access"). These types of charges (and any available reductions or waivers) are described in Section 2. CHARGES AGAINST THE FUNDS Annual Fund Operating Expenses -- The Separate Account purchases shares of the Funds at net asset value. The net asset value of the Fund reflects investment advisory fees, distribution fees, operating expenses and administrative expenses already deducted from the assets of the Funds. These charges are described in the Funds' prospectuses. REDUCED FEES AND CHARGES We may offer, in our discretion, reduced fees and charges including, but not limited to, CDSCs, the Mortality and Expense Risk Charge, the Annual Maintenance Fee, and charges for optional benefits, for certain Contracts (including employer sponsored savings plans) which may result in decreased costs and expenses. Reductions in these fees and charges will not be unfairly discriminatory against any Contract Owner. Please see "Synopsis" for a description of charges and fees. C. SURRENDERS WHAT KINDS OF SURRENDERS ARE AVAILABLE? BEFORE THE ANNUITY COMMENCEMENT DATE: Full Surrenders -- When you Surrender your Contract before the Annuity Commencement Date, the Surrender Value of the Contract will be made in a lump sum payment. The Surrender Value is the Contract Value minus any applicable Premium Taxes, CDSCs, 20 ------------------------------------------------------------------------------- a pro-rated portion of optional benefit charges, if applicable and the Annual Maintenance Fee. The Surrender Value may be more or less than the amount of the Premium Payments made to a Contract. Partial Surrenders -- You may request a partial Surrender of Contract Values at any time before the Annuity Commencement Date. We will deduct any applicable CDSC. You can ask us to deduct the CDSC from the amount you are Surrendering or from your remaining Contract Value. If we deduct the CDSC from your remaining Contract Value, that amount will also be subject to CDSC. This is our default option. Both full and partial Surrenders are taken proportionally out of the Sub-Accounts and the Fixed Accumulation Feature unless prohibited by your state. Please see section 8 (State Variations) for additional details. There are several restrictions on partial Surrenders before the Annuity Commencement Date: - The partial Surrender amount must be at least equal to $100, our current minimum for partial Surrenders, and - After a Surrender, your Contract Value must be equal to or greater than our then current minimum Contract Value that we establish according to our current policies and procedures. We may change the minimum Contract Value in our sole discretion, with notice to you. We will close your Contract and pay the full Surrender Value if the Contract Value is under the minimum after a Surrender. Your resulting standard Death Benefit will be reduced proportionately if you Surrender the majority of your Contract Value. See sections 6 and 7 for information regarding the impact of Surrenders to optional benefits. AFTER THE ANNUITY COMMENCEMENT DATE: Full Surrenders -- You may Surrender your Contract on or after the Annuity Commencement Date only if you selected the Payment for a Period Certain Annuity Payout Option. Under this option, we pay you the Commuted Value of your Contract minus any applicable CDSCs. The Commuted Value is determined on the day we receive your written request for Surrender. Partial Surrenders -- Partial Surrenders are permitted after the Annuity Commencement Date if you select the Life Annuity With Payments for a Period Certain, Joint and Last Survivor Life Annuity With Payments for a Period Certain or the Payment for a Period Certain Annuity Payout Options. You may take partial Surrenders of amounts equal to the Commuted Value of the payments that we would have made during the "Period Certain" for the number of years you select under the Annuity Payout Option that we guarantee to make Annuity Payouts. Both full and partial Surrenders are taken proportionally out of the Sub-Accounts and the Fixed Accumulation Feature unless prohibited by your state. Please see section 8 (State Variations) for additional details. To qualify for partial Surrenders under these Annuity Payout Options you must make the Surrender request during the Period Certain. We will deduct any applicable CDSCs. If you elect to take the entire Commuted Value of the Annuity Payouts we would have made during the Period Certain, we will not make any Annuity Payouts during the remaining Period Certain. If you elect to take only some of the Commuted Value of the Annuity Payouts we would have made during the Period Certain, we will reduce the remaining Annuity Payouts during the remaining Period Certain. Annuity Payouts that are to be made after the Period Certain is over will not change. These options may not be available if the Contract is issued to qualify under Code Sections 401, 403, 408, or 457. For such Contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. Please check with your qualified tax adviser because there could be adverse tax consequences for partial Surrenders after the Annuity Commencement Date. 21 ------------------------------------------------------------------------------- HOW DO YOU REQUEST A SURRENDER? Requests for full Surrenders must be in writing. Requests for partial Surrenders can be made in writing or by telephone or on the Internet. We will send your money within seven days of receiving complete instructions. However, we may postpone payment of Surrenders whenever: (a) the New York Stock Exchange is closed, (b) trading on the New York Stock Exchange is restricted by the SEC, (c) the SEC permits and orders postponement or (d) the SEC determines that an emergency exists to restrict valuation. Written Requests -- To request a full or partial Surrender, complete a Surrender Form or send us a letter, signed by you, stating: - the dollar amount that you want to receive, either before or after we withhold taxes and deduct for any applicable charges, - your tax withholding amount or percentage, if any, and - your mailing address. If there are joint Contract Owners, both must authorize all Surrenders. For a partial Surrender, specify the Sub-Accounts that you want your Surrender to come from; otherwise, the Surrender will be taken in proportion to the value in each Sub-Account. Telephone Requests -- To request a partial Surrender by telephone, we must have received your completed Telephone Redemption Program Enrollment Form. If there are joint Contract Owners, both must sign this form. By signing the form, you authorize us to accept telephone instructions for partial Surrenders from either Contract Owner. Telephone authorization will remain in effect until we receive a written cancellation notice from you or your joint Contract Owner, we discontinue the program, or you are no longer the owner of the Contract. Please call us with any questions regarding restrictions on telephone Surrenders. Internet Requests -- To request a partial Surrender by internet; we must have received your completed Internet partial Withdrawal Program Enrollment Form. If there are joint Contract Owners, both must sign this form. By signing the form, you authorize us to accept internet instructions for partial Surrenders from either Owner. Internet authorization will remain in effect until we receive a written cancellation notice from you or your joint Contract Owner, we discontinue the program, or you are no longer the owner of the Contract. Please call us with any questions regarding restrictions on Internet Surrenders. We may record telephone calls and use other procedures to verify information and confirm that instructions are genuine. We will not be liable for losses or expenses arising from telephone instructions reasonably believed to be genuine. WE MAY MODIFY THE REQUIREMENTS FOR TELEPHONE REDEMPTIONS AT ANY TIME. Telephone and Internet Surrender instructions received before the end of a Valuation Day will be processed at the end of that Valuation Day. Otherwise, your request will be processed at the end of the next Valuation Day. Completing a Power of Attorney form for another person to act on your behalf may prevent you from making Surrenders via telephone and Internet. WHAT SHOULD BE CONSIDERED ABOUT TAXES? There are certain tax consequences associated with Surrenders. If you make a Surrender prior to age 59 1/2, there may be adverse tax consequences including a 10% federal income tax penalty on the taxable portion of the Surrender payment. Surrendering before age 59 1/2 may also affect the continuing tax-qualified status of some Contracts. WE DO NOT MONITOR SURRENDER REQUESTS. CONSULT YOUR PERSONAL TAX ADVISER TO DETERMINE WHETHER A SURRENDER IS PERMISSIBLE, WITH OR WITHOUT FEDERAL INCOME TAX PENALTY. More than one Contract issued in the same calendar year -- If you own more than one Contract issued by us or our affiliates in the same calendar year, then these Contracts may be treated as one Contract for the purpose of determining the taxation of distributions prior to the Annuity Commencement Date. Internal Revenue Code section 403(b) annuities -- As of December 31, 1988, all section 403(b) annuities have limits on full and partial Surrenders. Contributions to your Contract made after December 31, 1988 and any increases in cash value after December 31, 1988 may not be distributed unless you are: (a) age 59 1/2, (b) no longer employed, (c) deceased, (d) disabled, or (e) experiencing a financial hardship (cash value increases may not be distributed for hardships prior to age 59 1/2 ). Distributions prior to age 59 1/2 due to financial hardship; unemployment or retirement may still be subject to a penalty tax of 10%. We will no longer accept any incoming 403(b) exchanges or applications for 403(b) individual annuity contracts. 22 ------------------------------------------------------------------------------- D. ANNUITY PAYOUTS When you "annuitize" your Contract, you begin the process of converting Accumulation Units in what is known as the "payout phase." The payout phase starts with your Annuity Commencement Date and ends when we make the last payment required under your Contract. You should answer the following questions: - When do you want Annuity Payouts to begin? - Which Annuity Payout Option do you want to use? - How often do you want the Payee to receive Annuity Payouts? - Do you want Annuity Payouts to be fixed dollar amount or variable dollar amount? Please check with your Registered Representative to select the Annuity Payout Option that best meets your income needs. WHEN DO YOUR ANNUITY PAYOUTS BEGIN? Your Annuity Commencement Date cannot be earlier than: X 2nd Contract Anniversary - if choosing a fixed dollar amount Annuity Payout X Immediately - if choosing a variable dollar amount Annuity Payout or be later than: X Annuitant's 90th birthday (or if the Contract Owner is a Charitable Remainder Trust, the Annuitant's 100th birthday) X 10th Contract Year (subject to state variation) X The Annuity Commencement Date stated in an extension request (subject to your Financial Intermediary's rules for granting extension requests) received by us not less than 30 days prior to a scheduled Annuity Commencement Date We reserve the right, in our sole discretion, to refuse to extend your Annuity Commencement Date regardless of whether we may have granted extensions in the past to you or other similarly situated investors. In certain instances, a Financial Intermediary has asked us to prohibit Annuity Commencement Date extensions for their customers when the Annuitant turns age 95. Please ask your Registered Representative whether you are affected by any such prohibition and make sure that you fully understand the implications this might have in regard to your living and Death Benefits. The Annuity Calculation Date is when the amount of your Annuity Payout is determined. This occurs within five Valuation Days before your selected Annuity Commencement Date. All Annuity Payouts, regardless of frequency, will occur on the same day of the month as the Annuity Commencement Date. After the initial payout, if an Annuity Payout date falls on a non-Valuation Day, the Annuity Payout is computed on the prior Valuation Day. If the Annuity Payout date does not occur in a given month due to a leap year or months with only 28 days (i.e. the 31st), the Annuity Payout will be computed on the last Valuation Day of the month. WHICH ANNUITY PAYOUT OPTION DO YOU WANT TO USE? Your Contract contains the Annuity Payout Options described below. We may at times offer other Annuity Payout Options. Once we begin to make Annuity Payouts, the Annuity Payout Option cannot be changed. LIFE ANNUITY We make Annuity Payouts as long as the Annuitant is living. When the Annuitant dies, we stop making Annuity Payouts. A Payee would receive only one Annuity Payout if the Annuitant dies after the first payout, two Annuity Payouts if the Annuitant dies after the second payout, and so forth. LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN We will make Annuity Payouts as long as the Annuitant is living, but we at least guarantee to make Annuity Payouts for a time period you select, between 5 years and 100 years minus the Annuitant's age. If the Annuitant dies before the guaranteed number of years have passed, then the Beneficiary may elect to continue Annuity Payouts for the remainder of the guaranteed number of years or receive the Commuted Value in one sum. LIFE ANNUITY WITH A CASH REFUND We will make Annuity Payouts as long as the Annuitant is living. When the Annuitant dies, if the Annuity Payouts already made are less than the Contract Value on the Annuity Commencement Date minus any Premium Tax, the remaining value will be paid to the Beneficiary. The remaining value is equal to the Contract Value minus any Premium Tax minus all Annuity Payouts already made. This option is only available for fixed dollar amount Annuity Payouts. 23 ------------------------------------------------------------------------------- JOINT AND LAST SURVIVOR LIFE ANNUITY We will make Annuity Payouts as long as the Annuitant and Joint Annuitant are living. When one Annuitant dies, we continue to make Annuity Payouts until that second Annuitant dies. When choosing this option, you must decide what will happen to the Annuity Payouts after the first Annuitant dies. You must select Annuity Payouts that: - Remain the same at 100%, or - Decrease to 66.67%, or - Decrease to 50%. For variable Annuity Payouts, these percentages represent Annuity Units; for fixed Annuity Payouts, they represent actual dollar amounts. The percentage will also impact the Annuity Payout amount we pay while both Annuitants are living. If you pick a lower percentage, your original Annuity Payouts will be higher while both Annuitants are alive. JOINT AND LAST SURVIVOR LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN We will make Annuity Payouts as long as either the Annuitant or Joint Annuitant are living, but we at least guarantee to make Annuity Payouts for a time period you select, between 5 years and 100 years minus your younger Annuitant's age. If the Annuitant and the Joint Annuitant both die before the guaranteed number of years have passed, then the Beneficiary may continue Annuity Payouts for the remainder of the guaranteed number of years or receive the Commuted Value in one sum. When choosing this option, you must decide what will happen to the Annuity Payouts after the first Annuitant dies. You must select Annuity Payouts that: - Remain the same at 100%, or - Decrease to 66.67%, or - Decrease to 50%. For variable dollar amount Annuity Payouts, these percentages represent Annuity Units. For fixed dollar amount Annuity Payouts, these percentages represent actual dollar amounts. The percentage will also impact the Annuity Payout amount we pay while both Annuitants are living. If you pick a lower percentage, your original Annuity Payouts will be higher while both Annuitants are alive. PAYMENTS FOR A PERIOD CERTAIN We agree to make payments for a specified time. The minimum period that you can select is 10 years during the first two Contract Years and 5 years after the second Contract Anniversary. The maximum period that you can select is 100 years minus your Annuitant's age. If, at the death of the Annuitant, Annuity Payouts have been made for less than the time period selected, then the Beneficiary may elect to continue the remaining Annuity Payouts or receive the Commuted Value in one sum. You may not choose a fixed dollar amount Annuity Payout during the first two Contract Years. YOU CANNOT SURRENDER YOUR CONTRACT ONCE ANNUITY PAYOUTS BEGIN, UNLESS YOU HAVE SELECTED LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN, JOINT AND LAST SURVIVOR LIFE ANNUITY WITH PAYMENTS FOR A PERIOD CERTAIN, OR PAYMENTS FOR A PERIOD CERTAIN ANNUITY PAYOUT OPTION. A CONTINGENT DEFERRED SALES CHARGE, IF APPLICABLE, MAY BE DEDUCTED. For qualified Contracts, if you elect an Annuity Payout Option with a Period Certain, the guaranteed number of years must be less than the life expectancy of the Annuitant at the time the Annuity Payouts begin. We compute life expectancy using the IRS mortality tables. Automatic Annuity Payouts -- If you do not elect an Annuity Payout Option, monthly Annuity Payouts will automatically begin on the Annuity Commencement Date under the Life Annuity with Payments for a Period Certain Annuity Payout Option with a ten-year period certain. Automatic Annuity Payouts will be fixed dollar amount Annuity Payouts, variable dollar amount Annuity Payouts, or a combination of fixed or variable dollar amount Annuity Payouts, depending on the investment allocation of your Account in effect on the Annuity Commencement Date. Automatic variable Annuity Payouts will be based on an Assumed Investment Return equal to 5%. HOW OFTEN DO YOU WANT THE PAYEE TO RECEIVE ANNUITY PAYOUTS? In addition to selecting an Annuity Commencement Date and an Annuity Payout Option, you must also decide how often you want the Payee to receive Annuity Payouts. You may choose to receive Annuity Payouts: - monthly, - quarterly, - semi-annually, or - annually. 24 ------------------------------------------------------------------------------- Once you select a frequency, it cannot be changed. If you do not make a selection, the Payee will receive monthly Annuity Payouts. You must select a frequency that results in an Annuity Payout of at least $50. If the amount falls below $50, we have the right to change the frequency to bring the Annuity Payout up to at least $50. DO YOU WANT ANNUITY PAYOUTS TO BE FIXED DOLLAR AMOUNT OR VARIABLE DOLLAR AMOUNT? You may choose an Annuity Payout Option with fixed dollar amounts or variable dollar amounts, depending on your income needs. You may not choose a fixed dollar amount Annuity Payout during the first two Contract Years. Fixed Dollar Amount Annuity Payouts -- Once a fixed dollar amount Annuity Payout begins, you cannot change your selection to receive variable dollar amount Annuity Payouts. You will receive equal fixed dollar amount Annuity Payouts throughout the Annuity Payout period. Fixed dollar amount Annuity Payout amounts are determined by multiplying the Contract Value, minus any applicable Premium Taxes, by an annuity rate set by us. Variable Dollar Amount Annuity Payouts -- Once a variable dollar amount Annuity Payout begins, you cannot change your selection to receive a fixed dollar amount Annuity Payout. A variable dollar amount Annuity Payout is based on the investment performance of the Sub-Accounts. The variable dollar amount Annuity Payouts may fluctuate with the performance of the Funds. To begin making variable dollar amount Annuity Payouts, we convert the first Annuity Payout amount to a set number of Annuity Units and then price those units to determine the Annuity Payout amount. The number of Annuity Units that determines the Annuity Payout amount remains fixed unless you transfer units between Sub-Accounts. The dollar amount of the first variable Annuity Payout depends on: - the Annuity Payout Option chosen, - the Annuitant's attained age and gender (if applicable), - the applicable annuity purchase rates based on the 1983a Individual Annuity Mortality table adjusted for projections based on accepted actuarial principles, and - the Assumed Investment Return ("AIR"). The total amount of the first variable dollar amount Annuity Payout is determined by dividing the Contract Value minus any applicable Premium Taxes by $1,000 and multiplying the result by the payment factor defined in the Contract for the selected Annuity Payout Option. The dollar amount of each subsequent variable dollar amount Annuity Payout is equal to the total of Annuity Units for each Sub-Account multiplied by the Annuity Unit Value of each Sub-Account. The Annuity Unit Value of each Sub-Account for any Valuation Period is equal to the Accumulation Unit Value Net Investment Factor for the current Valuation Period multiplied by the Annuity Unit Factor, multiplied by the Annuity Unit Value for the preceding Valuation Period. The Annuity Unit Factor offsets the AIR used to calculate your first variable dollar amount Annuity Payout. The first Annuity Payout will be based upon the AIR. The remaining Annuity Payouts will fluctuate based on the performance of the Funds in relation to the AIR. The degree of the fluctuation will depend on the AIR you select. You can select one of the following AIRs offered, subject to state variations:
ANNUITY ANNUITY ANNUITY AIR UNIT FACTOR AIR UNIT FACTOR AIR UNIT FACTOR ------------------------------------------------------------------- 3% 0.999919% 5% 0.999866% 6% 0.999840%
The greater the AIR, the greater the initial Annuity Payout. But a higher AIR may result in a smaller potential growth in future Annuity Payouts when the Sub-Accounts earn more than the AIR. On the other hand, a lower AIR results in a lower initial Annuity Payout, but future Annuity Payouts have the potential to be greater when the Sub-Accounts earn more than the AIR. For example, if the Sub-Accounts earned exactly the same as the AIR, then the second monthly Annuity Payout is the same as the first. If the Sub-Accounts earned more than the AIR, then the second monthly Annuity Payout is higher than the first. If the Sub-Accounts earned less than the AIR, then the second monthly Annuity Payout is lower than the first. Level variable dollar amount Annuity Payouts would be produced if the investment returns remained constant and equal to the AIR. In fact, Annuity Payouts will vary up or down as the investment rate varies up or down from the AIR. The degree of variation depends on the AIR you select. After the Annuity Calculation Date, you may transfer dollar amounts of Annuity Units from one Sub-Account to another. On the day you make a transfer, the dollar amounts are equal for both Sub-Accounts and the number of Annuity Units will be different. We will transfer the dollar amount of your Annuity Units the day we receive your written request if received before the close of the New 25 ------------------------------------------------------------------------------- York Stock Exchange. Otherwise, the transfer will be made on the next Valuation Day. All Sub-Account transfers must comply with applicable transfer restriction policies. Combination Annuity Payout -- You may choose to receive a combination of fixed dollar amount and variable dollar amount Annuity Payouts as long as they total 100% of your Annuity Payout. For example, you may choose to use 40% fixed dollar amount and 60% variable dollar amount to meet your income needs. Combination Annuity Payouts are not available during the first two Contract Years. E. STANDARD DEATH BENEFITS WHAT IS THE DEATH BENEFIT AND HOW IS IT CALCULATED? The Death Benefit is the amount we will pay if the Owner, joint Owner, or the Annuitant dies before we begin to make Annuity Payouts. We calculate the Death Benefit when, and as of the date that, we receive a certified death certificate or other legal document acceptable to us. The Death Benefits described below are at no additional cost. Standard Death Benefits are automatically included in your Contract unless superseded by certain optional benefits. Terms and titles used in riders to your Contract may differ from those used in this prospectus. The calculated Death Benefit will remain invested according to the Owner's last instructions until we receive complete written settlement instructions from the Beneficiary. This means the Death Benefit amount will fluctuate with the performance of the Account. When there is more than one Beneficiary, we will calculate the Accumulation Units for each Sub-Account and the dollar amount for the Fixed Accumulation Feature for each Beneficiary's portion of the proceeds. THE PREMIUM SECURITY DEATH BENEFIT This standard Death Benefit is automatically issued if you and the Annuitant are all younger than age 81 when the Contract is issued. This Death Benefit is the highest of: - Contract Value; or - Total Premium Payments adjusted for partial Surrenders; or - The lesser of: - Maximum Anniversary Value, or - the sum of Contract Value plus 25% of Maximum Anniversary Value (excluding Premium Payments we receive within 12 months of death). Please refer to Premium Security Death Benefit examples 1 - 2 in Appendix I. THE ASSET PROTECTION DEATH BENEFIT This standard Death Benefit is automatically issued if you or the Annuitant are between ages 81 to 85 when the Contract is issued. This Death Benefit is the highest of: - Contract Value; or - The lesser of: - Premium Payments (adjusted for partial Surrenders), or - the sum of Contract Value plus 25% of total Premium Payments adjusted for partial Surrenders (excluding Premium Payments we receive within 12 months of death). If one of the Owners and Annuitant is age 81 or older on the date we issue this Contract and one of the Owners and Annuitant is age 79 or younger on the date we issue this Contract; however, the Death Benefit payable upon the death of the younger of the Owners or Annuitant will be the lesser of Maximum Anniversary Value or the sum of Contract Value plus 25% of Maximum Anniversary Value. Please refer to Asset Protection Death Benefit examples 1 - 3 in Appendix I. MAXIMUM ANNIVERSARY VALUE The Maximum Anniversary Value is based on a series of calculations on Contract Anniversaries of Contract Values, Premium Payments and partial Surrenders. We will calculate an Anniversary Value for each Contract Anniversary prior to the deceased's 81st birthday or the date of death, whichever is earlier. The Anniversary Value is equal to the Contract Value as of a Contract Anniversary with the following adjustments: - Your Anniversary Value is increased by the dollar amount of any Premium Payments made since the Contract Anniversary; and 26 ------------------------------------------------------------------------------- - Your Anniversary Value is reduced for any partial Surrenders since the Contract Anniversary. The Maximum Anniversary Value is equal to the greatest Anniversary Value attained from this series of calculations. ADJUSTMENTS FOR SURRENDERS We calculate the adjustments to your Maximum Anniversary Value for any Surrenders by reducing your Anniversary Value on a dollar-for-dollar basis for any Surrenders within a Contract Year up to 10% of aggregate Premium Payments. After that, we reduce your Anniversary Value proportionally based on the amount of any Surrenders that exceed 10% of aggregate Premium Payments divided by your aggregate Contract Value at the time of Surrender. For examples of how this is applied for the Premium Security Death Benefit, please refer to Premium Security Death Benefit examples 1 - 2 in Appendix I and for the Asset Protection Death Benefit, please refer to Asset Protection Death Benefit examples 1 - 3 in Appendix I. We calculate the adjustment to your aggregate Premium Payments for any Surrenders by reducing your aggregate Premium Payments on a dollar-for-dollar basis for any Surrenders within a Contract Year up to 10% of aggregate Premium Payments. After that, we reduce your aggregate Premium Payments proportionately based on the amount of any Surrenders that exceed 10% of aggregate Premium Payments divided by your aggregate Contract Value at the time of Surrender. ADDITIONAL INFORMATION ABOUT DEATH BENEFITS We reserve the right to treat all deferred variable annuities that you buy from us or our affiliates as a single contract for the purposes of determining your total Death Benefits. These limits will be applied if you make $5 million or more in total aggregate Premium Payments. If applicable, the aggregate limit on total Death Benefits payable by us or our affiliates will never exceed a maximum of: - $5 million of Premium Payments (as reduced by an adjustment for Surrenders), or - Contract Value plus $1 million. Any reduction in Death Benefits will be in proportion to the Contract Value of each deferred variable annuity at the time of reduction. HOW IS THE DEATH BENEFIT PAID? The Death Benefit may be taken in one lump sum or under any of the Annuity Payout Options then being offered by us, unless the Owner has designated the manner in which the Beneficiary will receive the Death Benefit. We will calculate the Death Benefit as of the date we receive a certified death certificate or other legal documents acceptable by us. The Death Benefit amount remains invested and is subject to market fluctuation until complete settlement instructions are received from each Beneficiary. On the date we receive complete instructions from the Beneficiary, we will compute the Death Benefit amount to be paid out or applied to a selected Annuity Payout Option. When there is more than one Beneficiary, we will calculate the Death Benefit amount for each Beneficiary's portion of the proceeds and then pay it out or apply it to a selected Annuity Payout Option according to each Beneficiary's instructions. If we receive the complete instructions on a non-Valuation Day, computations will take place on the next Valuation Day. If your Beneficiary elects to receive the Death Benefit amount as a lump sum payment, unless we are otherwise instructed, we may transfer that amount to our General Account and issue the Beneficiary a draft book. The Beneficiary can write one draft for total payment of the Death Benefit, or keep the money in the General Account and write drafts as needed. We will credit interest at a rate determined periodically in our sole discretion. For federal income tax purposes, the Beneficiary will be deemed to have received the lump sum payment on transfer of the Death Benefit amount to the General Account. The interest will be taxable to the Beneficiary in the tax year that it is credited. If the Beneficiary resides or the Contract was purchased in a state that imposes restrictions on this method of lump sum payment, we may issue a check to the Beneficiary. The Beneficiary may elect under the Annuity Proceeds Settlement Option "Death Benefit Remaining with the Company" to leave proceeds from the Death Benefit invested with us for up to five years from the date of death if death occurred before the Annuity Commencement Date. Once we receive a certified death certificate or other legal documents acceptable to us, the Beneficiary can: (a) make Sub-Account transfers (subject to applicable restrictions) and (b) take Surrenders without paying Contingent Deferred Sales Charges, if any. We reserve the right to inform the IRS in the event that we believe that any Beneficiary has intentionally delayed delivering proper proof of death in order to circumvent applicable Code proceeds payment duties. We shall endeavor to fully discharge the last instructions from the Owner wherever possible or practical. The Beneficiary of a non-qualified Contract or IRA (prior to the required distribution date) may also elect the Single Life Expectancy Only option. This option allows the Beneficiary to take the Death Benefit in a series of payments spread over a period equal to the Beneficiary's remaining life expectancy. Distributions are calculated based on IRS life expectancy tables. This option is subject to different limitations and conditions depending on whether the Contract is non-qualified or an IRA. 27 ------------------------------------------------------------------------------- If the Owner dies before the Annuity Commencement Date, the Death Benefit must be distributed within five years after death or be distributed under a distribution option or Annuity Payout Option that satisfies the Alternatives to the Required Distributions described below. If the Owner dies on or after the Annuity Commencement Date under an Annuity Payout Option that permits the Beneficiary to elect to continue Annuity Payouts or receive the Commuted Value, any remaining value must be distributed at least as rapidly as under the payment method being used as of the Owner's death. If the Owner is not an individual (e.g. a trust), then the original Annuitant will be treated as the Owner in the situations described above and any change in the original Annuitant will be treated as the death of the Owner. WHAT SHOULD THE BENEFICIARY CONSIDER? Alternatives to the Required Distributions -- The selection of an Annuity Payout Option and the timing of the selection will have an impact on the tax treatment of the Death Benefit. To receive favorable tax treatment, the Annuity Payout Option selected: (a) cannot extend beyond the Beneficiary's life or life expectancy, and (b) must begin within one year of the date of death. If these conditions are NOT met, the Death Benefit will be treated as a lump sum payment for tax purposes. This sum will be taxable in the year in which it is considered received. Spousal Contract Continuation -- If the Owner dies and the Owner's Spouse is a beneficiary, then the portion of the Contract payable to the Spouse may be continued with the Spouse as Owner, unless the Spouse elects to receive the Death Benefit as a lump sum payment or as an Annuity Payment Option. For certain Contracts, if the Contract continues with the Spouse as Owner, we will adjust the Contract Value to the amount that we would have paid as the Death Benefit payment, had the Spouse elected to receive the Death Benefit as a lump sum payment. Spousal Contract continuation will only apply one time for each Contract. WHO WILL RECEIVE THE DEATH BENEFIT? The distribution of the Death Benefit applies only when death is before the Annuity Commencement Date. If death occurs on or after the Annuity Commencement Date, there may be no payout at death unless the Owner has elected an Annuity Payout Option that permits the Beneficiary to elect to continue Annuity Payouts or receive the Commuted Value. IF DEATH OCCURS BEFORE THE ANNUITY COMMENCEMENT DATE: IF THE DECEASED IS THE . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving joint The Annuitant is living or Joint Contract Owner receives Contract Owner deceased the Death Benefit. Contract Owner There is no surviving joint The Annuitant is living or Designated Beneficiary receives Contract Owner deceased the Death Benefit. Contract Owner There is no surviving joint The Annuitant is living or Contract Owner's estate Contract Owner and the deceased receives the Death Benefit. Beneficiary predeceases the Contract Owner Annuitant The Contract Owner is living There is no named Contingent The Contract Owner becomes the Annuitant Contingent Annuitant and the Contract continues. The Contract Owner may waive this presumption and receive the Death Benefit. Annuitant The Contract Owner is living The Contingent Annuitant is Contingent Annuitant becomes living the Annuitant, and the Contract continues.
28 ------------------------------------------------------------------------------- IF DEATH OCCURS ON OR AFTER THE ANNUITY COMMENCEMENT DATE: IF THE DECEASED IS THE . . . AND . . . THEN THE . . . Contract Owner The Annuitant is living Designated Beneficiary becomes the Contract Owner. Annuitant The Contract Owner is living Contract Owner receives the payout at death, if any. Annuitant The Annuitant is also the Owner Designated Beneficiary receives the payout at death, if any.
THESE ARE THE MOST COMMON SCENARIOS. SOME OF THE ANNUITY PAYOUT OPTIONS MAY NOT RESULT IN A PAYOUT AT DEATH. 6. OPTIONAL DEATH BENEFITS A. MAV PLUS OBJECTIVE Refund net Premium Payments as well as some percentage of any Contract Value gains. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? The Death Benefit will be the greater of the standard Death Benefit and MAV Plus Death Benefit. If you also elect any optional benefit rider, the Death Benefit will be the greater of such optional rider and this rider. The MAV Plus Death Benefit is the greatest of: A. Contract Value on the date we receive due proof of death. B. Total Premium Payments adjusted for any partial Surrenders (see clause D below for a description of this adjustment). C. Maximum Anniversary Value -- The Maximum Anniversary Value is based on a series of calculations on Contract Anniversaries of Contract Values, Premium Payments and partial Surrenders. We will calculate an Anniversary Value for each Contract Anniversary prior to the deceased's 81st birthday or the date of death, whichever is earlier. The Anniversary Value is equal to the Contract Value as of a Contract Anniversary with the following adjustments: (a) Anniversary Value is increased by the dollar amount of any Premium Payments made since the Contract Anniversary; and (b) Anniversary Value is adjusted for any partial Surrenders since the Contract Anniversary. The Maximum Anniversary Value is equal to the greatest Anniversary Value attained from this series of calculations. D. Earnings Protection Benefit -- The Earnings Protection Benefit depends on the age of you and/or your Annuitant on the date this rider is added to your Contract. - If each is aged 69 or younger, the Death Benefit is the Contract Value on the date we receive due proof of death plus 40% of the lesser of Contract gain on that date and the cap. - If you and/or your Annuitant are age 70 or older on the date this rider is added to your Contract, the benefit is the Contract Value on the date we receive due proof of death plus 25% of the lesser of Contract gain on that date and the cap. We determine Contract gain by subtracting your Contract Value on the date you added this rider from the Contract Value on the date we receive due proof of death. We then deduct any Premium Payments and add adjustments for any partial Surrender made during that time. We make an adjustment for partial Surrenders if the amount of Surrender is greater than the Contract gain immediately prior to the Surrender. The adjustment is the difference between the two, but not less than zero. We calculate the adjustment to your Maximum Anniversary Value for any Surrenders by reducing your Maximum Anniversary Value on a dollar-for-dollar basis for any Surrenders within a Contract Year up to 10% of aggregate Premium Payments. After that, we reduce your Maximum Anniversary Value proportionately based on the amount of any Surrenders that exceed 10% of aggregate Premium Payments divided by your aggregate Contract Value at the time of Surrender. Please refer to the examples in Appendix I for illustrations of this adjustment. The Contract gain that is used to determine your Death Benefit has a limit or cap. The cap is 200% of the following: - the Contract Value on the date this rider was added to your Contract; plus - Premium Payments made after this rider was added to your Contract, excluding any Premium Payments made within 12 months of the date we receive due proof of death; minus - any adjustments for partial Surrenders. 29 ------------------------------------------------------------------------------- If you elect MAV Plus, the Death Benefit will be the greater of the Premium Security Death Benefit and the MAV Plus Death Benefit. WHEN CAN YOU BUY THIS RIDER? You may elect this rider only at the time of issue and once you do so, your choice is irrevocable. You may not choose this optional Death Benefit if the Owner(s) and/or Annuitant are age 76 or older on the Contract issue date. In states where the MAV Plus Death Benefit is not available, we offer the "Maximum Anniversary Value (MAV) Death Benefit" for the same additional fee. The MAV Death Benefit is the same as the MAV Plus Death Benefit but excludes the Earnings Protection Benefit. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? No. HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The annual charge for this rider is based on your daily Contract Value and is deducted daily. The charge for this rider continues to be deducted until we begin to make Annuity Payouts. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? No. This rider is not affected by the Benefit Amount or Payment Base. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? No. IS THIS RIDER DESIGNED TO PAY YOU DEATH BENEFITS? Yes. DOES THIS RIDER REPLACE STANDARD DEATH BENEFITS? No. CAN YOU REVOKE THIS RIDER? No. WHAT EFFECT DO PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Surrenders will reduce the MAV Plus Death Benefit and will be subject to CDSCs, if any. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? We reserve the right to approve all ownership changes, including any assignment of your Contract to others or the pledging of your Contract as collateral. Certain approved changes in ownership may cause a re-calculation of the benefits subject to applicable state law. Generally, we will not re-calculate the benefits under your Contract so long as the change in ownership does not affect the Owner and does not result in a change in the tax identification number under the Contract. Changes in ownership can also adversely affect your Death Benefits and optional withdrawal benefits. You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice. CAN YOUR SPOUSE CONTINUE YOUR CONTRACT RIGHTS? Yes. If your Spouse continues the Contract as Owner, we will use the date the Contract is continued with your Spouse as Owner as the effective date this rider was added to the Contract. This means we will use the date the Contract is continued with your Spouse as Owner as the effective date for calculating this Death Benefit going forward. The percentage used for this Death Benefit will be determined by the oldest age of any remaining joint Owner or Annuitant at the time the Contract is continued. Spousal Contract continuation can apply once during the term of this Contract. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? This rider will be terminated and the fee will no longer be assessed. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? No. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? No. 30 ------------------------------------------------------------------------------- CAN WE AGGREGATE CONTRACTS? Yes. We reserve the right to treat all deferred variable annuities that you buy from us or our affiliates as a single contract for the purposes of determining your total Death Benefits. These limits will be applied if you make $5 million or more in total aggregate Premium Payments. If applicable, the aggregate limit on total Death Benefits payable by us or our affiliates will never exceed a maximum of: - $5 million of Premium Payments (as reduced by an adjustment for Surrenders), or - Contract Value plus $1 million. Any reduction in Death Benefits will be in proportion to the Contract Value of each deferred variable annuity at the time of reduction. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - This rider is not available in all states or is named differently in those states. - If your Contract has no gain, your Beneficiary will receive no additional benefit. - A Death Benefit is paid to Beneficiaries upon the death of the Annuitant or any Owner, whichever occurs first. - This rider may be used to supplement Death Benefits in other optional riders. In certain instances, however, this additional Death Benefit coverage could be superfluous. - Annuitizing your Contract will extinguish this rider. 7. OPTIONAL WITHDRAWAL BENEFITS A. THE HARTFORD'S PRINCIPAL FIRST PREFERRED OBJECTIVE Protect your Premium Payments from poor market performance through annual Benefit Payments until the Benefit Amount is reduced to zero. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider protects Premium Payments by guaranteeing annual Benefit Payments until your Benefit Amount, rather than your Contract Value, has been exhausted. See Optional Benefit Comparisons in Appendix B. WHEN CAN YOU BUY THIS RIDER? You cannot elect The Hartford's Principal First Preferred after May 1, 2008. For investors purchasing a Contract after August 14, 2006, the maximum age of any Contract Owner or Annuitant when electing this rider is age 70. For all other investors, the maximum age of any Contract Owner or Annuitant electing this rider is age 85 for non-qualified plans and age 70 for IRA or qualified plans. If not elected at issue, Plus Contract Owners must wait until after the first Contract Anniversary before purchasing this benefit. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any optional riders other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The annual charge for this rider is based on your daily Account Value and is deducted daily. We will continue to deduct The Hartford's Principal First Preferred Charge until we begin to make Annuity Payouts or the rider is revoked. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. Your Benefit Amount will fluctuate based on subsequent Premium Payments or partial Surrenders. If you elect the rider at a later date, your Contract Value on the date it is added to your Contract will be the initial Benefit Amount. Partial Surrenders in excess of your annual Benefit Payments may also trigger a recalculation of the Benefit Amount and future Benefit Payments. Your Benefit Amount can never be more than $5 million. 31 ------------------------------------------------------------------------------- IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? No. You can continue to take Benefit Payments until the Benefit Amount has been depleted. Once the initial Benefit Amount has been determined, we calculate Benefit Payments. If you elect the rider when purchasing the Contract, your initial Premium Payment is equal to the initial Benefit Amount. The maximum Benefit Payment is 5% of your Benefit Amount. Benefit Payments are available at any time and can be taken on any schedule that you request. Benefit Payments are non-cumulative, which means that your Benefit Payment will not increase in the future if you fail to take your full Benefit Payment for the current Contract Year. For example, if you do not take 5% one Contract Year, you may not take more than 5% the next Contract Year. If you elect this rider when you purchase your Contract, we count one year as the time between each Contract Anniversary. If you purchase this rider after you purchase your Contract, we count the first year as the time between the date you added this rider to your Contract and your next Contract Anniversary, which could be less than a year. Each time you add a Premium Payment, we increase your Benefit Amount by the amount of the subsequent Premium Payment on a dollar-for-dollar basis. When you make a subsequent Premium Payment, your Benefit Payments will increase by 5% of the amount of the subsequent Premium Payment. Your Benefit Amount cannot be less than $0 or more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider. If, in one year, your Surrenders total more than your annual Benefit Payment, we will recalculate your Benefit Amount and your Benefit Payment could be significantly lower in the future. Any time we re-calculate your Benefit Amount and your Benefit Payment we count one year as the time between the date we recalculate and your next Contract Anniversary, which could be less than a year. Whenever a partial Surrender is made, the Benefit Amount will be equal to the amount determined in either (A) or (B) as follows: A. If the total partial Surrenders since the later of (i) the most recent Contract Anniversary, or (ii) the Valuation Day that the Benefit Payment was last established (excluding subsequent Premium Payments), are equal to or less than the Benefit Payment, the new Benefit Amount becomes the Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender. B. If the total partial Surrenders as determined in (A) above exceed the Benefit Payment, the Benefit Amount will have an automatic reset to the greater of zero or the lesser of (i) or (ii) as follows: (i) The Contract Value immediately following the partial Surrender; or (ii) The Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender. Please refer to examples 2 - 6 for The Hartford's Principal First Preferred in Appendix I for illustrations regarding recalculation of your Benefit Amount. Qualified Contracts are subject to certain federal tax rules requiring that minimum distributions be withdrawn from the Contract on a calendar year basis (i.e., compared to a Contract Year basis), usually beginning after age 70 1/2. These withdrawals are called Required Minimum Distributions ("RMD"). An RMD may exceed your Benefit Payment, which will cause a recalculation of your Benefit Amount. Recalculation of your Benefit Amount may result in a lower Benefit Payment in the future. If you enroll in our Automatic Income Program to satisfy the RMD from the Contract and, as a result, the withdrawals exceed your annual Benefit Payment, we will not recalculate your Benefit Amount or Benefit Payment. IS THIS RIDER DESIGNED TO PAY YOU A DEATH BENEFIT? No. However, partial Surrenders will reduce the standard Death Benefit. DOES THIS RIDER REPLACE STANDARD DEATH BENEFITS? No. CAN YOU REVOKE THIS RIDER? Yes. You may revoke this rider in writing anytime following the earlier of the 5th Contract Year (if elected at issuance) or the 5th anniversary of electing this rider post-issuance or at the time we exercise our right to impose investment restrictions. Annuitizing your Contract instead of receiving Benefit Payments will terminate this rider. If you revoke this rider you will not be able to elect any other optional benefit rider or participate in a Company-sponsored exchange program. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. WHAT EFFECT DO PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value and Benefit Amount. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your annual Benefit Payment include any applicable CDSC. 32 ------------------------------------------------------------------------------- If, in one year, your Surrenders total more than your annual Benefit Payment, we will re-calculate your Benefit Amount and your Benefit Payment could be significantly lower in the future. Any time we re-calculate your Benefit Amount and your Benefit Payment we count one year as the time between the date we re-calculate and your next Contract Anniversary, which could be less than a year. If your Contract Value is reduced to zero due to receiving annual Benefit Payments, and you still have a Benefit Amount, you will continue to receive a Benefit Payment through a fixed Annuity Payout option until your Benefit Amount is depleted. While you are receiving payments under fixed Annuity Payout options, you may not make additional Premium Payments, and if you die before you receive all of your payments, your Beneficiary will continue to receive the remaining Benefit Payments. You can Surrender your entire Contract Value any time; however, you will receive your Contract Value at the time you request a full Surrender with any applicable charges deducted and not the Benefit Amount or the Benefit Payment amount that you would have received under this rider. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? If you change the ownership or assign this Contract to someone other than your Spouse after 12 months of electing this rider, we will recalculate the Benefit Amount and the Benefit Payment may be lower in the future. The Benefit Amount will be recalculated to equal the lesser of: - The Benefit Amount immediately prior to the ownership change or assignment; or - The Contract Value at the time of the ownership change or assignment. The Benefit Payment will then be reset to 5% of the new Benefit Amount. If the Owner dies and the sole Beneficiary is the Owner's Spouse, then the surviving Spouse can either become the Contract Owner or elect to receive the standard Death Benefit. You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice. CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? Yes. If the Owner dies and the sole Beneficiary is the deceased Owner's Spouse at the time of death, that Spouse may continue the Contract and this rider. This right may be exercised only once during the term of the Contract. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? You may elect the annuitization option at any time. If you annuitize your Contract, you may choose this payout option in addition to those Annuity Payout Options offered in the Contract. Under this Annuity Payout Option (called the "PFP Annuity Payout Option"), we will pay a fixed dollar amount for a specific number of years ("Payout Period"). If you, the joint Owner or the Annuitant should die before the PFP Annuity Payout Period is complete, the remaining payments will be made to the Beneficiary. The PFP Annuity Payout Period is determined on the Annuity Calculation Date and it will equal the current Benefit Amount divided by the Benefit Payment. The total amount of the Annuity Payouts under this option will be equal to the Benefit Amount. We may offer other Payout Options. If you, the joint Owner or Annuitant die before the Annuity Calculation Date and all of the Benefit Payments guaranteed by us have not been made, the Beneficiary may elect to take the remaining Benefit Payments by electing the PFP Payout Option. Electing this option forfeits any right to Death Benefit values calculated under the standard Death Benefit or any optional death benefits you may have purchased. If the Annuitant dies after the Annuity Calculation Date and before all of the Benefit Payments guaranteed by us have been made, the payments will continue to be made to the Beneficiary. If your Contract Value is reduced to zero, you will receive a fixed Annuity Payout option until your Benefit Amount is depleted. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? Yes. We reserve the right to limit the Sub-Accounts into which you may allocate your Contract Value on and after the effective date. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? No; however, your Benefit Amount cannot be more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider. CAN WE AGGREGATE CONTRACTS? Yes. We reserve the right to treat all Contracts issued to you by us or one of our affiliates as one Contract for purposes of this rider. This means that if you purchase two Contracts from us in any twelve month period and elect optional withdrawal benefits in such other Contracts, withdrawals from one Contract may be treated as withdrawals from the other Contract. 33 ------------------------------------------------------------------------------- OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - We can revoke this rider if you violate the investment restrictions requirements. Once revoked, you cannot reinstate this or any other optional benefit rider and the rider fee will cease. - The annual percentage used for determining Benefit Payments is not a fixed rate of return. The Contract Value used in the calculation of the Benefit Amount and Benefit Payment is based on the investment performance of your Sub-Accounts. - Benefit Payments can't be carried forward from one year to the next. - Annual Surrenders exceeding 5% accelerate depletion of your Benefit Amount even if you use the Automatic Income Program to meet RMD requirements. No reliable assumptions can be made that your payments will continue for any particular number of years. - Additional contributions made to your Contract after withdrawals have begun may not restore the previous amount of Benefit Payments, even if the additional contribution restores the Benefit Amount to the previous Benefit Amount. - If elected post-issuance, the first one year period will be considered to be the time period between election and the next following Contract Anniversary. - When the Contract Value is small in relation to the Benefit Amount, Surrenders may have a significant effect on future Benefit Payments. B. THE HARTFORD'S LIFETIME INCOME FOUNDATION OBJECTIVE Protect principal from poor market performance, provide longevity protection through Lifetime Benefit Payments, and ensure a Death Benefit equivalent to the greater of Premium Payments reduced for partial Surrenders or Contract Value. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider provides two separate but bundled benefits that help achieve this goal. In other words, this rider is a guarantee that you can access two ways: - LIFETIME WITHDRAWAL BENEFIT. This rider provides a series of Lifetime Benefit Payments payable in each Contract Year following the Relevant Covered Life's 60th birthday, until the first death of any Covered Life ("Single Life Option") or the second death of any Covered Life ("Joint/Spousal Option"). Lifetime Benefit Payments are maximum amounts that can be withdrawn each year based on the higher of your Payment Base or Contract Value on each Contract Anniversary multiplied by the applicable Withdrawal Percent. In an Eligible Withdrawal Year, your initial Lifetime Benefit Payment is equal to the Payment Base multiplied by the applicable Withdrawal Percentage. Payments may continue even if the Contract Value has been reduced to below our minimum Contract Value. The Withdrawal Percent varies based upon the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender, and the survivor option chosen. Any partial Surrender taken prior to the Contract Anniversary following the Relevant Covered Life's 60th birthday will reduce the Payment Base and your future Lifetime Benefit Payment. Such partial Surrender may potentially eliminate your Lifetime Benefit Withdrawal Guarantee. - GUARANTEED MINIMUM DEATH BENEFIT. This guaranteed minimum Death Benefit provides a Death Benefit equal to the greater of Premium Payments reduced for partial Surrenders or Contract Value as of the date due proof of death is received for any Contract Owner or Annuitant. PARTIAL SURRENDERS WILL REDUCE OR ELIMINATE THE GUARANTEED MINIMUM DEATH BENEFIT. THIS GUARANTEED MINIMUM DEATH BENEFIT REPLACES THE STANDARD DEATH BENEFITS PROVIDED UNDER THIS CONTRACT. See Optional Benefit Comparisons in Appendix B. WHEN CAN YOU BUY THIS RIDER? Subject to State approval of The Hartford's Lifetime Income Builder Portfolios and The Hartford's Lifetime Income Builder Selects, this rider is closed to new investors. If applicable, you may elect this rider at the time of purchase, or at a later date, if you are eligible to participate in a designated company sponsored exchange program. The benefits comprising this rider may not be purchased separately. This rider may not be available through all Registered Representatives and may be subject to additional restrictions set by your Registered Representative or us. We reserve the right to withdraw this rider at any time. When you buy this rider, you must provide us with the names and ages of the Owner, any joint Owner, Annuitant and Beneficiary. A Covered Life must be a living person. If you choose the Joint/Spousal Option, we reserve the right to (a) prohibit non-natural entities from being designated as an Owner, (b) prohibit anyone other than your Spouse from being a joint Owner; and (c) impose other designation restrictions from time to time. 34 ------------------------------------------------------------------------------- For the Single Life Option, the Covered Life is most often the same as the Contract Owner and joint Owner (which could be two different people). In the Joint/Spousal Option, the Covered Life is most often the Contract Owner and his or her Spouse, as joint Owner or Beneficiary. The Relevant Covered Life will be one factor used to establish your Withdrawal Percent. When the Single Life Option is chosen, we use the older Covered Life as the Relevant Covered Life; and when the Joint/Spousal Option is chosen, we use the younger Covered Life as the Relevant Covered Life. The maximum age of any Contract Owner or Annuitant when electing this rider is 80. When the Joint/Spousal Option is chosen, the Beneficiary also must be younger than age 81. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any rider other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The fee for this rider is based on your then current Payment Base (not your Contract Value) as of each Contract Anniversary. This charge will automatically be deducted from your Contract Value on your Contract Anniversary AFTER your Anniversary Value and Payment Base have been computed and prior to all other financial transactions. In the event of a full Surrender, a prorated charge will be deducted from your Surrender Value. The charge for this rider will be withdrawn from each Sub-Account and the Fixed Accumulation Feature in the same proportion that the value of each Sub-Account bears to the total Contract Value. Except as otherwise provided below, we will continue to deduct this charge until we begin to make Annuity Payouts. The rider charge may limit access to the Fixed Accumulation Feature in certain states. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. Your initial Payment Base equals your initial Premium Payment. Your Payment Base will fluctuate based on subsequent Premium Payments and partial Surrenders. Your Payment Base can never be less than $0 or more than $5 million. Any activities that would otherwise increase the Payment Base above this ceiling will not be included for any benefits under this rider. The Payment Base will be recalculated based on: - Subsequent Premium Payments. Subsequent Premium Payments increase your Payment Base on a dollar-for-dollar basis. - Partial Surrenders. Partial Surrenders may trigger a recalculation of the Payment Base depending on (a) whether the partial Surrender takes place prior or during an Eligible Withdrawal Year, and (b) if the aggregate amount of the partial Surrenders during any Contract Year exceeds the applicable Threshold, as discussed below: A. If cumulative partial Surrenders taken during any Contract Year and prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Payment Base on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), then we will reduce the Payment Base on a (i) dollar-for-dollar basis up to the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will not reduce the Payment Base. C. For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Payment Base on a proportionate basis for the amount in excess of the Lifetime Benefit Payment. Partial Surrenders taken during any Contract Year that cumulatively exceed the Annual Withdrawal Amount but do not exceed the Lifetime Benefit Payment will be free of any applicable CDSC. Partial Surrenders will diminish the Guaranteed Minimum Death Benefit. Please refer to the Examples in Appendix I for a more complete description of these effects. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? Yes. However, your Withdrawal Percent, and therefore the amount of your Lifetime Benefit Payment, is dependent upon when you take your first partial Surrender. For instance, - If you take your first partial Surrender before an Eligible Withdrawal Year, your Withdrawal Percent will never increase above 5% for Single Life Option or 4.5% for Joint/Spousal option for the remaining duration of your Contract. - If you take your first partial Surrender during an Eligible Withdrawal Year, your Withdrawal Percent will never increase above the Withdrawal Percent corresponding with the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the 35 ------------------------------------------------------------------------------- first partial Surrender. If such a partial Surrender took place during the first Contract Year, we will use the attained age of the Relevant Covered Life as of Contract issue date to set the Withdrawal Percent. Once the Withdrawal Percent has been established, it will not change for the remaining duration of your Contract. In other words, prior to the Relevant Covered Life turning 80, the longer the first partial Surrender is delayed, the higher your Withdrawal Percent shall be.
ATTAINED AGE OF RELEVANT COVERED WITHDRAWAL PERCENT LIFE ON THE CONTRACT ANNIVERSARY SINGLE LIFE JOINT/SPOUSAL PRIOR TO THE FIRST PARTIAL SURRENDER OPTION OPTION -------------------------------------------------------------------------------- 60 - 64 5.0% 4.5% 65 - 69 5.5% 5.0% 70 - 74 6.0% 5.5% 75 - 79 6.5% 6.0% 80+ 7.0% 6.5%
Your Withdrawal Percent may change based on a permissible Covered Life change. If you choose to receive less than your full Lifetime Benefit Payment in any Contract Year; you will not be able to carry remaining amounts forward to future Contract Years. IS THIS RIDER DESIGNED TO PAY YOU A DEATH BENEFIT? Yes. This Guaranteed Minimum Death Benefit guarantees that we will pay a Death Benefit equal to the greater of Premium Payments reduced for partial Surrenders or Contract Value as of the date we receive due proof of death of the Contract Owner(s) or Annuitant. Termination of this rider will result in the rescission of the Guaranteed Minimum Death Benefit and result in your Beneficiary receiving the Contract Value as of the date we receive due proof of death. Partial Surrenders will affect the Guaranteed Minimum Death Benefit as follows: A. If cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. C. For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Lifetime Benefit Payment. Please refer to the section labeled "CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT" for more information on the continuation of the Lifetime Benefit Payments by your Spouse. DOES THIS RIDER REPLACE THE STANDARD DEATH BENEFIT? Yes. CAN YOU REVOKE THIS RIDER? Yes. Anytime following the earlier of Spousal Contract continuation or the 5th Contract Year, the Contract Owner may also elect to revoke the Lifetime Withdrawal Benefits whereupon we will deduct one last pro-rated fee for this rider and only the Guaranteed Minimum Death Benefit shall continue to apply. Certain changes in the Covered Life will also constitute a revocation of the Withdrawal Benefits. A Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. In the event that this rider is terminated, whether as a result of your actions or ours, your Lifetime Benefit Payments will cease; your Payment Base will be eliminated, the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider. 36 ------------------------------------------------------------------------------- WHAT EFFECT DO PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Please refer to the discussion under "DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER?" for the effect of partial Surrenders on your Payment Base, Guaranteed Minimum Death Benefit and Lifetime Benefit Payments. You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value with any applicable charges deducted and not the Payment Base or any Lifetime Benefit Payment that you would have received under this rider. If Your Contract Value is reduced below our minimum Contract Value rules in effect on a particular Valuation Day, and your Lifetime Benefit Payment amount remains greater than zero, then we will consider this date as your Annuity Commencement Date and we will no longer accept subsequent Premium Payments. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? Inasmuch as this rider is affected only by changes to the Covered Life, only these types of changes are discussed below. We reserve the right to approve all Covered Life changes. Certain approved changes in the designation of the Covered Life may cause a re-calculation of the benefits. Covered Life changes also allow us, in our discretion, to impose investment restrictions, as described below. Any Covered Life change made within the first 6 months from the Contract Issue date will have no impact on the Payment Base or Guaranteed Minimum Death Benefit as long as each succeeding Covered Life is less than the maximum age limitation of the rider at the time of the change. The Withdrawal Percent and Lifetime Benefit Payment will thereafter change based on the age of the new Relevant Covered Life. After the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have not yet been taken, in the event that you and your Spouse become legally divorced, you may add a new Spouse to the Contract. Provided that the age limitation of the rider is not exceeded, the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will recalculate your Withdrawal Percent based on the age of the younger Covered Life as of the date of the change. Alternatively, if after the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have been taken, in the event that you and your Spouse become legally divorced, you may only remove your ex-Spouse from the Contract whereupon the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the remaining Covered Life as of the date of the change. You may not convert your Joint/Spousal Option election to a Single Life Option. In addition, after the first six months following the Contract issue date, if any Covered Life change takes place that is not due to a divorce, then we will: A. If the older Covered Life after the change is equal to or less than the maximum age limitation of the rider at the time of the change, then we will revoke the Withdrawal Benefits of this rider and continue the Guaranteed Minimum Death Benefit only. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter. B. If the older Covered Life after the change exceeds the maximum age limitation of the rider at the time of the change, or we no longer offer this rider, then the rider will terminate. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If you elected the Single Life Option and any Covered Life changes after the first 6 months from Contract Issue date, then: A. If we no longer offer this rider, we will continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change; whereupon the Withdrawal Benefit will terminate. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter; or B. If we offer this rider and: (i) if partial Surrenders have been taken prior to the first Contract Anniversary, then we will use the attained age of the oldest Covered Life as of the rider effective date to reset the Withdrawal Percent, or (ii) if partial Surrenders have not been taken prior to the first Contract Anniversary, then we will use the attained age of the older Covered Life as of the Contract Anniversary prior to the first partial Surrender to reset the Withdrawal Percent. The Payment Base will be recalculated to be the lesser of the Contract Value or the Payment Base effective on the date of the change. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change; or C. If we offer this rider and the older Covered Life after the change exceeds the maximum age limitation of this rider at the time of the change; the rider will be terminated and removed from the Contract. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. 37 ------------------------------------------------------------------------------- If the rider is no longer available for sale, we will determine the issue age limitation of the rider on a non-discriminatory basis. The following tables illustrate only some of the various changes and the resulting outcomes associated with deaths of the Contract Owner(s) or Annuitant before and after the Annuity Commencement Date. SINGLE LIFE OPTION ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving The Annuitant is living or Joint Contract Owner receives non-spousal Contract Owner deceased the Death Benefit and this rider terminates Contract Owner There is a surviving spousal The Annuitant is living or Joint Contract Owner receives Contract Owner deceased the Death Benefit and this rider can continue under Spousal Contract continuation Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Designated Owner deceased Beneficiary receives the Death Benefit Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Estate Owner or Beneficiary deceased receives the Death Benefit Annuitant Contract Owner is living There is no Contingent Contract continues, no Death Annuitant and the Contract Benefit is paid, and this rider Owner becomes the Contingent continues Annuitant Annuitant Contract Owner is living There is no Contingent Rider terminates and Contract Annuitant and the Contract Owner receives the Death Owner waives their right to Benefit become the Contingent Annuitant Annuitant Contract Owner is Living Contingent Annuitant is Living Contingent Annuitant becomes the Annuitant and the Contract and this rider continues
JOINT/SPOUSAL ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving Contract The Annuitant is living or The surviving Contract Owner Owner deceased continues the Contract and rider; we will increase the Contract Value to the Death Benefit value Contract Owner There is no surviving Contract The Spouse is the sole primary Follow Spousal Contract Owner beneficiary continuation rules for joint life elections Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates and Contract Owner or Beneficiary deceased Owner's estate receives the Death Benefit Annuitant The Contract Owner is living There is a Contingent Annuitant The Rider continues; upon the death of the last surviving Covered Life, the rider will terminate.
38 ------------------------------------------------------------------------------- CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? - SINGLE LIFE OPTION: If a Covered Life dies and the Beneficiary is the deceased Covered Life's Spouse at the time of death, such Spouse may continue the Contract. If the Spouse elects to continue the Contract and this rider, we will continue the rider with respect to all Lifetime Withdrawal Benefits at the charge that is currently being assessed for new sales of this rider at the time of continuation. We will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater. The Covered Life will be re-determined on the date of Spousal Contract continuation. If the new Covered Life is less than age 81 at the time of the Spousal Contract continuation, and the rider is still available for sale, the Payment Base and the Guaranteed Minimum Death Benefit will be set equal to the Contract Value, the Withdrawal Percent will be recalculated based on the age of the older remaining Covered Life on the effective date of the Spousal Contract continuation. If the new Covered Life is 81 or older at the time of the Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will be equal to the Contract Value. If we are no longer offering this rider at the time of Spousal Contract continuation, we will revoke the Lifetime Withdrawal Benefit, the Guaranteed Minimum Death Benefit will be set equal to the Contract Value and the rider charge will no longer be assessed. - JOINT/SPOUSAL OPTION: This rider is designed to facilitate the continuation of your rights under this rider by your Spouse through the inclusion of a Joint/Spousal Option. If a Covered Life dies and the Spouse elects to continue the Contract, we will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater and we will continue the rider with respect to all benefits at the current rider charge. The benefits will be reset as follows: - The Payment Base will be equal to the greater of Contract Value or the Payment Base on the Spousal Contract continuation date; - The Guaranteed Minimum Death Benefit will be equal to the Contract Value on the Spousal Contract continuation date; - The Withdrawal Percent will remain at the current percentage if partial Surrenders have commenced; otherwise the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Contract Anniversary prior to the first partial Surrender; and - The Lifetime Benefit Payment will be recalculated to equal the Withdrawal Percent multiplied by the greater of the Contract Value or Payment Base on the date of Spousal Contract continuation. The remaining Covered Life can not name a new Owner of the Contract. Any new beneficiary that is added to the Contract will not be taken into consideration as a Covered Life. The rider will then terminate upon the death of the remaining Covered Life. If the Spouse elects to continue the Contract and revoke the Lifetime Withdrawal Benefit, we will assess the charge on the revocation date and it will no longer be assessed thereafter. The Covered Life will be re-determined on the date of Spousal Contract continuation for purposes of the Guaranteed Minimum Death Benefit. If the age of the Covered Life is greater than the age limitation of the rider at the time of Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will equal the Contract Value. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? If you elect to annuitize your Contract prior to reaching the Annuity Commencement Date, you may only annuitize your Contract Value and will not be able to elect any of the annuitization options allowed under this rider. If your Contract reaches the Annuity Commencement Date, the Contract must be annuitized unless we agree to extend the Annuity Commencement Date, in our sole discretion. In this circumstance, the Contract may be annuitized under our standard annuitization rules or, alternatively, under the rules applicable when the Contract Value is below our minimum Contract Value then in effect. By annuitizing your Contract and choosing an income option, you will be exchanging your accumulated savings and Death Benefits for a guaranteed income stream. If your Contract Value is reduced below our minimum Contract Value then in effect, your Annuity Commencement Date will be attained and we will no longer accept subsequent Premium Payments. We will then issue you a payout annuity. You may elect the frequency of your payments from those offered by us at such time, but will not be less frequently than annually. - SINGLE LIFE OPTION: If you have elected the Single Life Option, we will issue you a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the Covered Life determined at Annuity Commencement Date. We treat the Covered Life as the Annuitant for this payout option. If there is more than one Covered Life, then the lifetime portion will be based on both Covered Lives. The Covered Lives will be the Annuitant and joint Annuitant for this payout option. The lifetime portion will terminate on the first death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit under this rider. 39 ------------------------------------------------------------------------------- If the older Annuitant is age 59 or younger, we will automatically defer the date the payments begin until the anniversary after the older Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a minimum number of years. If the Annuitant is alive and the older Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of any Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of your Withdrawal Percent or 5%. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. This option may not be available if the Contract is issued to qualify under Code Section 401, 403, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. - JOINT/SPOUSAL OPTION: If you have elected the Joint/Spousal Option and both Spouses are alive, we will issue you a Fixed Joint & Survivor Lifetime and Period Certain Payout. If only one Spouse is alive, we will issue a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the surviving Covered Life. The Covered Lives will be the Annuitant and Joint Annuitant for this payout option. The lifetime benefit will terminate on the last death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit. If the younger Annuitant is alive and age 59 or younger, we will automatically defer the date that payments begin until the anniversary after the younger Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the death of the last surviving Annuitant or a period certain. If the Annuitant is alive and the younger Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of the last surviving Annuitant or a minimum number of years. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of the last Surviving Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of Withdrawal Percent or 4.5%. Therefore, the higher your then remaining Guaranteed Minimum Death Benefit is at the time of annuitization, the longer the time period you will be entitled to receive annuitization payments. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of the last surviving Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. These options may not be available if the Contract is issued to qualify under Code Sections 401, 403, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? Yes. We reserve the right to limit the Sub-Accounts into which you may allocate your Contract Value on and after the effective date of a Covered Life change. We may prohibit investment in any Sub-Account; require you to allocate your Contract Value in one of a number of asset allocation models, investment programs or fund of funds Sub-Accounts. Any transfers required to reallocate Contract Value will not be used in determining the number of transfers allowed during a Contract Year. If the restrictions are violated, the Withdrawal Benefit will be revoked but the Guaranteed Minimum Death Benefit will continue to apply. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? Yes. We reserve the right to require our approval on all subsequent Premium Payments received after the first twelve months. We will not accept any subsequent Premium Payment which brings the total of such cumulative subsequent Premium Payments to in excess of $100,000 without prior approval. Following your Annuity Commencement Date, we will no longer accept subsequent Premium Payments. This restriction is not currently enforced. 40 ------------------------------------------------------------------------------- CAN WE AGGREGATE CONTRACTS? Yes. For purposes of determining the Payment Base and Premium Payment limits, we reserve the right to treat as one all deferred variable annuity Contracts issued by us where you have elected any optional withdrawal benefit rider. If we elect to aggregate Contracts, we will change the period over which we measure Surrenders against future Lifetime Benefit Payments. We will treat the effective date of our aggregation election until the end of the applicable calendar year as a Contract Year for the purposes of the Lifetime Benefit Payment limit. A pro-rata rider fee will be taken at the end of that calendar year. After the first calendar year following aggregation, the Lifetime Benefit Payment limits will be aggregated and will thereafter be set on a calendar year (i.e., January 1 Contract Anniversary) basis. The rider fee then in effect will be taken at the end of each new Contract Anniversary. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - The benefits under this rider cannot be directly or indirectly assigned, collateralized, pledged or securitized in any way. Any such actions will invalidate this rider and allow us to terminate the rider. - Your annual Lifetime Benefit Payment may fluctuate based on changes in the Payment Base and Contract Value. The Payment Base is sensitive to partial Surrenders in excess of the Lifetime Benefit Payment/Threshold. It is therefore possible that Surrenders and subsequent Premium Payments within the same Contract Year, whether or not equal to one another, can result in lower Lifetime Benefit Payments. - Annuitizing your Contract, whether voluntary or not, will impact and possibly eliminate these "lifetime" benefits. First, you may no longer invest additional Premium Payments. Second, any Death Benefit, whether standard or optional, will immediately terminate. Third, any Guaranteed Minimum Withdrawal Benefit guarantees you elect may end. In cases where you are required to annuitize (because you reach the Annuity Commencement Date or your Guaranteed Minimum Withdrawal Benefit requires annuitization because the Contract Value has fallen below our minimum Contract Value then in effect), lifetime annuitization payments may equal (or possibly exceed) Lifetime Benefit Payments. However, where you elect to annuitize before a required Annuity Commencement Date, lifetime annuitization payments might be less than the income guaranteed by your Guaranteed Minimum Withdrawal Benefit. - Even though this rider is designed to provide "living benefits," you should not assume that you will necessarily receive "payments for life" if you have violated any of the terms of this rider. - The amount of the Withdrawal Percent used to compute your Lifetime Benefit Payment is frozen based on the date of the first partial Surrender. - The determination of the "Relevant" Covered Life is established by the Company and is critical to the determination of many important benefits such as the Withdrawal Percent used to set Lifetime Benefit Payments. Applicants should confirm this determination and be sure they fully appreciate its importance before investing. - We may terminate this rider post-election based on your violation of benefit rules and may otherwise withdraw this rider for new sales at any time. - Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use. - You may select this rider only at the time of sale and once you do so, you may not add any other optional withdrawal benefits during the time you own this Contract. If you elect this rider you will not be eligible for the standard Death Benefits or be able to elect optional riders other than MAV Plus. - When the Single Life Option is chosen, your Spouse may find continuation of this rider to be unavailable or unattractive after the death of the Covered Life. Continuation of the benefits available in this optional rider is dependent upon its availability at the time of death of the first Covered Life and will be subject to then prevailing charges. - The Joint/Spousal Option provides that if you and your Spouse are no longer married for any reason other than death, the removal and replacement of your Spouse will constitute a Covered Life change. This can result in the resetting of all benefits under this rider. - Certain Covered Life changes may result in a reduction, recalculation or forfeiture of benefits. - This rider may not be suitable if a Covered Life is under attained age 60. - The purchase of an optional withdrawal benefit feature may not be appropriate for contracts owned by certain types of non-natural entities, including Charitable Trusts. Because many non-natural entities are required to make certain periodic distributions and 41 ------------------------------------------------------------------------------- those amounts may be different than the withdrawal amounts permitted by the optional withdrawal benefit feature, you may wish to consult with your tax advisor to help determine the appropriateness of this benefit. C. THE HARTFORD'S LIFETIME INCOME BUILDER II OBJECTIVE Protect your investment from poor market performance through potential annual automatic Payment Base increases, provide longevity protection through Lifetime Benefit Payments, and ensure a Death Benefit equivalent to the greater of Premium Payments reduced for partial Surrenders or Contract Value. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider provides two separate but bundled benefits that help achieve this goal. In other words, this rider is a guarantee that you can access two ways: - LIFETIME WITHDRAWAL BENEFIT. This rider provides a series of Lifetime Benefit Payments payable in each Contract Year following the Relevant Covered Life's 60th birthday, until the first death of any Covered Life ("Single Life Option") or until the second death of any Covered Life ("Joint/Spousal Option"). Lifetime Benefit Payments are maximum amounts that can be withdrawn each year based on the higher of your Payment Base or Contract Value on each Contract Anniversary, as adjusted by annual Payment Base increases, multiplied by the applicable Withdrawal Percent. In an Eligible Withdrawal Year, your initial Lifetime Benefit Payment is equal to the Payment Base multiplied by the applicable Withdrawal Percentage. Payments may continue even if the Contract Value has been reduced to below our minimum Contract Value. The Withdrawal Percent varies based upon the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender, and the survivor option chosen. Any partial Surrender taken prior to the Contract Anniversary following the Relevant Covered Life's 60th birthday will reduce the Payment Base and your future Lifetime Benefit Payment. Such partial Surrender may potentially eliminate your Lifetime Benefit Withdrawal Guarantee. - GUARANTEED MINIMUM DEATH BENEFIT. This guaranteed minimum Death Benefit provides a Death Benefit equal to the greater of Premium Payments reduced for Partial Surrenders or Contract Value as of the date due proof of death is received for any Contract Owner or Annuitant. PARTIAL SURRENDERS WILL REDUCE OR ELIMINATE THE GUARANTEED MINIMUM DEATH BENEFIT. THIS GUARANTEED MINIMUM DEATH BENEFIT REPLACES THE STANDARD DEATH BENEFITS PROVIDED UNDER THIS CONTRACT. See Optional Benefit Comparisons in Appendix B. WHEN CAN YOU BUY THIS RIDER? Subject to State approval of The Hartford's Lifetime Income Builder Portfolios and The Hartford's Lifetime Income Builder Selects, this rider is closed to new investors. If available, you may elect this rider at the time of purchase, or may exchange the rider if you are eligible to participate in a designated company sponsored exchange program described in Appendix D. The benefits comprising this rider may not be purchased separately. This rider may not be available through all Registered Representatives and may be subject to additional restrictions set by your Registered Representative or us. We reserve the right to withdraw this rider at any time. When you buy this rider, you must provide us with the names and ages of the Owner, any joint Owner, Annuitant and Beneficiary. A Covered Life must be a living person. If you choose the Joint/Spousal Option, we reserve the right to (a) prohibit non-natural entities from being designated as an Owner, (b) prohibit anyone other than your Spouse from being a joint Owner; and (c) impose other designation restrictions from time to time. For the Single Life Option, the Covered Life is most often the same as the Contract Owner and joint Owner (which could be two different people). In the Joint/Spousal Option, the Covered Life is most often the Contract Owner and his or her Spouse, as joint Owner or Beneficiary. The Relevant Covered Life will be one factor used to establish your Withdrawal Percent. When the Single Life Option is chosen, we use the older Covered Life as the Relevant Covered Life; and when the Joint/Spousal Option is chosen, we use the younger Covered Life as the Relevant Covered Life. The maximum age of any Contract Owner or Annuitant when electing this rider is 75. When the Joint/Spousal Option is chosen, the Beneficiary also must be younger than age 76. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any rider other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The fee for this rider is based on your then current Payment Base (not your Contract Value) as of each Contract Anniversary. This charge will automatically be deducted from your Contract Value on your Contract Anniversary AFTER your Anniversary Value and 42 ------------------------------------------------------------------------------- Payment Base have been computed and prior to all other financial transactions. In the event of a full Surrender, a prorated charge will be deducted from your Surrender Value. The charge for this rider will be withdrawn from each Sub-Account and the Fixed Accumulation Feature in the same proportion that the value of each Sub-Account bears to the total Contract Value. Except as otherwise provided below, we will continue to deduct this charge until we begin to make Annuity Payouts. The rider charge may limit access to the Fixed Accumulation Feature in certain states. We reserve the right to increase the charge for this rider up to a maximum rate of 0.75% any time on or after the fifth anniversary of electing this rider or five years from the date from which we last notified you of a fee increase, whichever is later. The fee increase will only apply if you are eligible for future automatic Payment Base increases. Any future fee increase will be based on the charge that we are then currently charging other customers who have not previously elected this rider. If we cease sales of this rider, we will predetermine the rider charge on a non-discriminatory basis. Fee increases will not apply if (a) the age of the Relevant Covered Life is 80 or older; or (b) you notify us in writing of your election to permanently waive automatic Payment Base increases. This fee may not be the same as the fee that we charge new purchasers or the fee we set before we cease offering this rider. In no event will this charge exceed 0.75% annually. Subject to the foregoing limitation, we also reserve the right to charge a different fee for this rider to any new Contract Owners as a result of a change of Covered Life. Unless exempt, we will automatically deduct rider fees, as they may be increased from time to time. We may offer a lower fee to customers who agree to participate in any asset allocation models, investment programs, or fund-of-funds we may designate from time to time. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. Your initial Payment Base equals your initial Premium Payment. Your Payment Base will fluctuate based on subsequent Premium Payments and partial Surrenders as well as automatic Payment Base increases. Your Payment Base can never be less than $0 or more than $5 million. Any activities that would otherwise increase the Payment Base above this ceiling will not be included for any benefits under this rider. The Payment Base will be recalculated based on certain changes in Covered Lives. - Automatic Payment Base increases. Your Payment Base may fluctuate based on annual "automatic Payment Base increases." You will be qualified for annual automatic Payment Base increases commencing on your first Contract Anniversary. Automatic Payment Base increases will cease upon the earlier of the Annuity Commencement Date or the Contract Anniversary immediately following the Relevant Covered Life's attained age of 80. Automatic Payment Base increases are based on your then current Anniversary Value (prior to the rider charge being taken) divided by your Maximum Contract Value and then reduced by 1. In no event will this factor be less than 0% or greater than 10%. Automatic Payment Base increases will not take place if the investment performance of your Sub-Accounts is neutral or negative. - Subsequent Premium Payments increase your Payment Base on a dollar-for-dollar basis. - Partial Surrenders may trigger a recalculation of the Payment Base depending on (a) whether the partial Surrender takes place prior or during an Eligible Withdrawal Year, and (b) if the cumulative amount of all partial Surrenders during any Contract Year exceeds the applicable Threshold, as discussed below: A. If cumulative partial Surrenders taken during any Contract Year and prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Payment Base on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), then we will reduce the Payment Base on a (i) dollar-for-dollar basis up to the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will not reduce the Payment Base. C. For any partial Surrender that first causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Payment Base on a proportionate basis for the amount in excess of the Lifetime Benefit Payment. Partial Surrenders taken during any Contract Year that cumulatively exceed the Annual Withdrawal Amount but do not exceed the Lifetime Benefit Payment will be free of any applicable CDSC. Partial Surrenders will diminish the Guaranteed Minimum Death Benefit. 43 ------------------------------------------------------------------------------- See Examples 7, 8 and 10-14 under The Hartford's Lifetime Income Builder II. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? Yes. However, your Withdrawal Percentage and therefore the amount of your Lifetime Benefit Payment, is dependent upon when you take your first partial Surrender. For instance: - If you take your first partial Surrender before an Eligible Withdrawal Year, your Withdrawal Percent will never increase above 5% for Single Life Option or 4.5% for Joint/Spousal option for the remaining duration of your Contract. - If you take your first partial Surrender during an Eligible Withdrawal Year, your Withdrawal Percent will never increase above the Withdrawal Percent corresponding with the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender. If such a partial Surrender took place during the first Contract Year, we will use the attained age of the Relevant Covered Life as of Contract issuance to set the Withdrawal Percent. Once the Withdrawal Percent has been established, it will not change for the remaining duration of your Contract. In other words, prior to the Relevant Covered Life turning 80, the longer the first partial Surrender is delayed, the higher your Withdrawal Percent shall be.
ATTAINED AGE OF RELEVANT COVERED WITHDRAWAL PERCENT LIFE ON THE CONTRACT ANNIVERSARY SINGLE LIFE JOINT/SPOUSAL PRIOR TO THE FIRST PARTIAL SURRENDER OPTION OPTION -------------------------------------------------------------------------------- 60 - 64 5.0% 4.5% 65 - 69 5.5% 5.0% 70 - 74 6.0% 5.5% 75 - 79 6.5% 6.0% 80+ 7.0% 6.5%
Your Withdrawal Percent may change based on a permissible Covered Life change. If you choose to receive less than your full Lifetime Benefit Payment in any Contract Year, you will not be able to carry remaining amounts forward to future Contract Years. See Examples 1-6 and 11-14 under The Hartford's Lifetime Income Builder II. IS THIS RIDER DESIGNED TO PAY YOU DEATH BENEFITS? Yes. This Guaranteed Minimum Death Benefit guarantees that we will pay a Death Benefit equal to the greater of Premium Payments reduced for partial Surrenders or Contract Value as of the date we receive due proof of death of the Contract Owner(s) or Annuitant. Termination of this rider will result in the rescission of the Guaranteed Minimum Death Benefit and result in your Beneficiary receiving the Contract Value as of the date we receive due proof of death. Partial Surrenders will affect the Guaranteed Minimum Death Benefit as follows: A. If cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), then we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. C. For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Lifetime Benefit Payment. Please refer to the section labeled "CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT" for more information on the continuation of the Lifetime Benefit Payments by your Spouse. See Examples 9, 10 and under The Hartford's Lifetime Income Builder II. DOES THIS RIDER REPLACE THE STANDARD DEATH BENEFIT? Yes. CAN YOU REVOKE THIS RIDER? No. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. 44 ------------------------------------------------------------------------------- WHAT EFFECT DO PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Please refer to "DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER?" for the effect of partial Surrenders on your Payment Base, Guaranteed Minimum Death Benefit and Lifetime Benefit Payments. You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value with any applicable charges deducted and not the Payment Base or any Lifetime Benefit Payment that you would have received under this rider. If Your Contract Value is reduced below our minimum Contract Value rules in effect on a particular Valuation Day, and your Lifetime Benefit Payment amount remains greater than zero, then we will consider this date as your Annuity Commencement Date and we will no longer accept subsequent Premium Payments. See Examples 7, 8 and 10-14 under The Hartford's Lifetime Income Builder II. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? Inasmuch as this rider is affected only by changes to the Covered Life, only these types of changes are discussed below. We reserve the right to approve all Covered Life changes. Certain approved changes in the designation of the Covered Life may cause a re-calculation of the benefits. Covered Life changes also allow us, in our discretion, to impose investment restrictions, as described below. Any Covered Life change made within the first 6 months from the Contract Issue date will have no impact on the Payment Base or Guaranteed Minimum Death Benefit as long as each succeeding Covered Life is less than the maximum age limitation of the rider at the time of the change. The Withdrawal Percent and Lifetime Benefit Payment will thereafter change based on the age of the new relevant Covered Life. After the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have not yet been taken, in the event that you and your Spouse become legally divorced, you may add a new Spouse to the Contract. Provided that the age limitation of the rider is not exceeded, the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the younger Covered Life as of the date of the change. Alternatively, if after the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and Surrenders have been taken, in the event that you and your Spouse become legally divorced, you may only remove your ex-Spouse from the Contract whereupon the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the remaining Covered Life as of the date of the change. You may not convert your Joint/Spousal Option election to a Single Life Option. In addition, after the first six months following the Contract issue date, if any Covered Life change takes place that is not due to a divorce, then: A. If the older Covered Life after the change is equal to or less than the maximum age limitation of the rider at the time of the change, then we will revoke the Withdrawal Benefits of this rider and continue the Guaranteed Minimum Death Benefit only. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter. B. If the older Covered Life after the change exceeds the maximum age limitation of the rider at the time of the change, or we no longer offer this rider, then the rider will terminate. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If you elected the Single Life Option and any Covered Life changes after the first 6 months from Contract Issue date, then we will: A. If we no longer offer this rider, we will continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change; whereupon the Withdrawal Benefit will terminate. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter; or B. If we offer this rider and: (i) if partial Surrenders have been taken prior to the first Contract Anniversary, then we will use the attained age of the oldest Covered Life as of the rider effective date to reset the Withdrawal Percent, or (ii) if partial Surrenders have not been taken prior to the first Contract Anniversary, then we will use the attained age of the older Covered Life as of the Contract Anniversary prior to the first partial Surrender to reset the Withdrawal Percent. The Payment Base will be recalculated to be the lesser of the Contract Value or the Payment Base effective on the date of the change. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change. The Maximum Contract Value will be recalculated to equal the Contract Value on the date of the change; or C. If we offer this rider and the older Covered Life after the change exceeds the maximum age limitation of this rider at the time of the change; the rider will be terminated and removed from the Contract. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. 45 ------------------------------------------------------------------------------- If the rider is no longer available for sale, we will determine the issue age limitation of the rider on a non-discriminatory basis. The following tables illustrate only some of the various changes and the resulting outcomes associated with deaths of the Contract Owner(s) or Annuitant before and after the Annuity Commencement Date. SINGLE LIFE OPTION ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving The Annuitant is living or Joint Contract Owner receives non-spousal Contract Owner deceased the Death Benefit and this rider terminates Contract Owner There is a surviving spousal The Annuitant is living or Joint Contract Owner receives Contract Owner deceased the Death Benefit and this rider can continue under Spousal Contract continuation Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Designated Owner deceased Beneficiary receives the Death Benefit Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Estate Owner or Beneficiary deceased receives the Death Benefit Annuitant Contract Owner is living There is no Contingent Contract continues, no Death Annuitant and the Contract Benefit is paid, and this rider Owner becomes the Contingent continues Annuitant Annuitant Contract Owner is living There is no Contingent Rider terminates and Contract Annuitant and the Contract Owner receives the Death Owner waives their right to Benefit become the Contingent Annuitant Annuitant Contract Owner is Living Contingent Annuitant is Living Contingent Annuitant becomes the Annuitant and the Contract and this rider continues
JOINT/SPOUSAL ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving Contract The Annuitant is living or The surviving Contract Owner Owner deceased continues the Contract and rider; we will increase the Contract Value to the Death Benefit value Contract Owner There is no surviving Contract The Spouse is the sole primary Follow Spousal Contract Owner beneficiary continuation rules for joint life elections Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates and Contract Owner or Beneficiary deceased Owner's estate receives the Death Benefit Annuitant The Contract Owner is living There is a Contingent Annuitant The Rider continues; upon the death of the last surviving Covered Life, the rider will terminate.
CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? - SINGLE LIFE OPTION: If a Covered Life dies and the Beneficiary is the deceased Covered Life's Spouse at the time of death, such Spouse may continue the Contract. If the Spouse elects to continue the Contract and this rider, we will continue the rider with respect to all Lifetime 46 ------------------------------------------------------------------------------- Withdrawal Benefits at the charge that is currently being assessed for new sales at the time of continuation. We will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater. The Covered Life will be re-determined on the date of Spousal Contract continuation. If the new Covered Life is less than age 81 at the time of the Spousal Contract continuation, and the rider is still available for sale, the Payment Base and the Guaranteed Minimum Death Benefit will be set equal to the Contract Value, the Withdrawal Percent will be recalculated based on the age of the older remaining Covered Life on the effective date of the Spousal Contract continuation. If the new Covered Life is 81 or older at the time of the Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will be equal to the Contract Value. If we are no longer offering this rider at the time of Spousal Contract continuation, we will revoke the Lifetime Withdrawal Benefit, the Guaranteed Minimum Death Benefit will be set equal to the Contract Value and the rider charge will no longer be assessed. - JOINT/SPOUSAL OPTION: This rider is designed to facilitate the continuation of your rights under this rider by your Spouse through the inclusion of a Joint/Spousal Option. If a Covered Life dies and the Spouse elects to continue the Contract, we will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater and we will continue the rider with respect to all benefits at the current rider charge. The benefits will be reset as follows: - The Payment Base will be equal to the greater of Contract Value or the Payment Base on the Spousal Contract continuation date - The Guaranteed Minimum Death Benefit will be equal to the Contract Value on the Spousal Contract continuation date - The Withdrawal Percent will remain at the current percentage if partial Surrenders have commenced; otherwise the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Contract Anniversary prior to the first partial Surrender - The Lifetime Benefit Payment will be recalculated to equal the Withdrawal Percent multiplied by the greater of the Contract Value or Payment Base on the date of Spousal Contract continuation. The remaining Covered Life can not name a new owner on the Contract. Any new beneficiary that is added to the Contract will not be taken into consideration as a Covered Life. The rider will terminate upon the death of the remaining Covered Life. If the Spouse elects to continue the Contract and revoke the Lifetime Withdrawal Benefit, we will assess the charge on the revocation date and it will no longer be assessed thereafter. The Covered Life will be re-determined on the date of Spousal Contract continuation for purposes of the Guaranteed Minimum Death Benefit. If the Covered Life is greater than the age limitation of the rider at the time of Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will equal the Contract Value. See Example 17 under The Hartford's Lifetime Income Builder II. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? If you elect to annuitize your Contract prior to reaching the Annuity Commencement Date, you may only annuitize your Contract Value and will not be able to elect any of the annuitization options allowed under this rider. If your Contract reaches the Annuity Commencement Date, the Contract must be annuitized unless we agree to extend the Annuity Commencement Date, in our sole discretion. In this circumstance, the Contract may be annuitized under our standard annuitization rules or, alternatively, under the rules applicable when the Contract Value is below our minimum Contract Value then in effect. If your Contract Value is reduced below our minimum Contract Value then in effect, your Annuity Commencement Date will be attained and we will no longer accept subsequent Premium Payments. We will then issue you a payout annuity. You may elect the frequency of your payments from those offered by us at such time, but will not be less frequently than annually. - SINGLE LIFE OPTION: If you have elected the Single Life Option, we will issue you a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the Covered Life determined at Annuity Commencement Date. We treat the Covered Life as the Annuitant for this payout option. If there is more than one Covered Life, then the lifetime portion will be based on both Covered Lives. The Covered Lives will be the Annuitant and joint Annuitant for this payout option. The lifetime portion will terminate on the first death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit under this rider. If the older Annuitant is age 59 or younger, we will automatically defer the date the payments begin until the anniversary after the older Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a minimum number of years. If the Annuitant and joint Annuitant are alive and the older Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain. 47 ------------------------------------------------------------------------------- The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of any Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or 5%. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. This option may not be available if the Contract is issued to qualify under Code Sections 401, 403, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. - JOINT/SPOUSAL OPTION: If you have elected the Joint/Spousal Option and both Spouses are alive, we will issue you a Fixed Joint & Survivor Lifetime and Period Certain Payout. If only one Spouse is alive, we will issue a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the surviving Covered Life. The Covered Lives will be the Annuitant and Joint Annuitant for this payout option. The lifetime benefit will terminate on the last death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit. If the younger Annuitant is alive and age 59 or younger, we will automatically defer the date that payments begin until the anniversary after the younger Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the death of the last surviving Annuitant or a period certain. If the Annuitant is alive and the younger Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of the last surviving Annuitant or a minimum number of years. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of the last Surviving Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or 4.5%. Therefore, the higher your then remaining Guaranteed Minimum Death Benefit is at the time of annuitization, the longer the time period you will be entitled to receive annuitization payments. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of the last surviving Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. These options may not be available if the Contract is issued to qualify under Code Sections 401, 403, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? Yes. We reserve the right to limit the Sub-Accounts into which you may allocate your Contract Value on and after the effective date of any Covered Life change. If there is a Covered Life change, we may prohibit investment in any Sub-Account; require you to allocate your Contract Value in one of a number of asset allocation models, investment programs or fund of funds Sub-Accounts. Any transfers required to reallocate Contract Value will not be used in determining the number of transfers allowed during a Contract Year. If the restrictions are violated, the Withdrawal Benefit will be revoked but the Guaranteed Minimum Death Benefit will continue to apply. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? Yes. We reserve the right to require our approval on all subsequent Premium Payments received after the first twelve months. We will not accept any subsequent Premium Payment which brings the total of such cumulative subsequent Premium Payments to in excess of $100,000 without prior approval. Following your Annuity Commencement Date, we will no longer accept subsequent Premium Payments. This restriction is not currently enforced. See Examples 9 and 10 under The Hartford's Lifetime Income Builder II. CAN WE AGGREGATE CONTRACTS? Yes. For purposes of determining the Payment Base and Premium Payment limits, we reserve the right to treat as one all deferred variable annuity Contracts issued by us where you have elected any optional withdrawal benefit rider. If we elect to aggregate Contracts, we will change the period over which we measure Surrenders against future Lifetime Benefit Payments. We will treat the effective date of our aggregation election until the end of the applicable calendar year as a Contract Year for the purposes of the Lifetime Benefit Payment limit. A pro-rata rider fee will be taken at the end of that calendar year. After the first calendar year following aggregation, the Lifetime Benefit Payment limits will be aggregated and will thereafter be set on a calendar 48 ------------------------------------------------------------------------------- year (i.e., January 1 Contract Anniversary) basis. The rider fee then in effect will be taken at the end of each new Contract Anniversary. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - The benefits under this rider cannot be directly or indirectly assigned, collateralized, pledged or securitized in any way. Any such actions will invalidate this rider and allow us to terminate the rider. - Your annual Lifetime Benefit Payments may fluctuate based on changes in the Payment Base and Contract Value. The Payment Base is sensitive to partial Surrenders in excess of the Lifetime Benefit Payment/Threshold. It is therefore possible that Surrenders and subsequent Premium Payments within the same Contract Year, whether or not equal to one another, can result in lower Lifetime Benefit Payments. - Annuitizing your Contract, whether voluntary or not, will impact and possibly eliminate these "lifetime" benefits. First, you may no longer invest additional Premium Payments. Second, any Death Benefit, whether standard or optional, will immediately terminate. Third, any Guaranteed Minimum Withdrawal Benefit guarantees you elect may end. In cases where you are required to annuitize (because you reach the Annuity Commencement Date or your Guaranteed Minimum Withdrawal Benefit requires annuitization because the Contract Value has fallen below our minimum Contract Value then in effect), you will forfeit automatic Payment Base increases (if applicable) and lifetime annuitization payments may equal (or possibly exceed) Lifetime Benefit Payments. However, where you elect to annuitize before a required Annuity Commencement Date, lifetime annuitization payments might be less than the income guaranteed by your Guaranteed Minimum Withdrawal Benefit. - Even though this rider is designed to provide "living benefits," you should not assume that you will necessarily receive "payments for life" if you have violated any of the terms of this rider. - The amount of the Withdrawal Percent used to compute your Lifetime Benefit Payment is frozen based on the date of the first partial Surrender. - The determination of the "Relevant" Covered Life is established by the Company and is critical to the determination of many important benefits such as the Withdrawal Percent used to set Lifetime Benefit Payments. Applicants should confirm this determination and be sure they fully appreciate its importance before investing. - We may terminate this rider post-election based on your violation of benefit rules and may otherwise withdraw this rider for new sales at any time. In the event that this rider is terminated by us, your Lifetime Benefit Payments will cease; your Payment Base, including any automatic Payment Base increases will be eliminated, the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider. - Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use. - You may select this rider only at the time of sale and once you do so, you may not add any other optional withdrawal benefits during the time you own this Contract. If you elect this rider you will not be eligible for the standard Death Benefits or able to elect optional riders other than MAV Plus. - When the Single Life Option is chosen, Spouses may find continuation of this rider to be unavailable or unattractive after the death of the Contract Owner. Continuation of the benefits available in this optional rider is dependent upon its availability at the time of death of the first Covered Life and will be subject to then prevailing charges. - The Joint/Spousal Option provides that if you and your Spouse are no longer married for any reason other than death, the removal and replacement of your Spouse will constitute a Covered Life change. This can result in the resetting of all benefits under this rider. - Certain Covered Life changes may result in a reduction, recalculation or forfeiture of benefits. - This rider may not be suitable if a Covered Life is under attained age 60. - Annuity pay-out options available subsequent to the Annuity Commencement Date may not necessarily provide a stream of income for your lifetime and may be less than Lifetime Benefit Payments. - The fee for this rider may increase if and when automatic Payment Base increases take place. There are no assurances as to the fee we will be charging at the time of each Payment Base increase. This is subject to the maximum fee disclosed in the Synopsis and this section. - The purchase of an optional withdrawal benefit feature may not be appropriate for contracts owned by certain types of non-natural entities, including Charitable Trusts. Because many non-natural entities are required to make certain periodic distributions and those amounts may be different than the withdrawal amounts permitted by the optional withdrawal benefit feature, you may wish to consult with your tax advisor to help determine the appropriateness of this benefit. 49 ------------------------------------------------------------------------------- D. THE HARTFORD'S PRINCIPAL FIRST OBJECTIVE Protect your investment from poor market performance through annual Benefit Payments until the Benefit Amount is reduced to zero. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider protects your investment by guaranteeing Benefit Payments until your Benefit Amount, rather than your Contract Value, has been exhausted. You may also elect "step-ups" that reset your Benefit Amount to the then prevailing Contract Value. See Optional Benefit Comparisons in Appendix B. You or your Spouse (if Spousal Contract continuation has been chosen) may elect to step-up your Benefit Amount following the 5th Contract Year that you added this rider to your Contract and again on each fifth anniversary from the last time you elected to step-up your Benefit Amount (or upon Spousal Contract continuation, whichever is earlier)(these dates are called "election dates" in this section). Your Benefit Amount will then become the Contract Value as of the close of business on the Valuation Date that you properly made this election. Each time that you exercise step-up rights, your Benefit Payment will be reset to 7% of the new Benefit Amount, but will never be less than your then existing Benefit Payment. You must follow certain requirements to make this election: - We will accept requests for a step-up in writing, verbally or electronically, if available. - Written elections must be submitted using the forms we provide. For telephonic and Internet elections, if available, you must authenticate your identity and acknowledge your understanding of the implications of making this election. We are not responsible for lost investment opportunities associated with elections that are not in good order and for relying on the genuiness of any election. - We will not accept any election request prior to an election date. You may not post-date your election. - If an election form is received in good order on or after an election date, the step-up will occur as of the close of business on the Valuation Day that the request is received by us at our Administrative Office. We reserve the right to require you to elect step-ups only on Contract Anniversaries. - We will not honor any election request if your Contract Value is less than your Benefit Amount effective as of the step-up effective date. - Your election is irrevocable. This means that if your Contract Value increases after your step-up, you can not ask us to reset your Benefit Amount again until your next election date. The fee for this rider may also change when you make this election and will remain in effect until your next election, if any. WHEN CAN YOU BUY THIS RIDER? You may elect this benefit at any time, provided we are still offering this rider for new sales. Once elected, your choice is irrevocable. If not elected at issue, Plus Contract owners must wait until after the first Contract Anniversary before purchasing this benefit. The maximum age of any Contract Owner or Annuitant when electing this rider is 85 for non-qualified plans and age 80 for IRA or qualified plans. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any riders other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The annual charge for this rider is based on your daily Sub-Account Value and is deducted daily. The charge continues to be deducted until we begin to make Annuity Payouts. We will recalculate the charge each time that you step-up your Benefit Amount. The fee at the time of step-up will be the charge that we are then currently charging other customers who have previously elected this rider and have elected to step-up. This fee may not be the same as, but will not be more than, the fee that we charge new purchasers or the fee we set before we cease offering this rider. If we cease sales of this rider, we will predetermine the rider charge on a non-discriminatory basis. Before you decide to exercise your step-up privileges, you should request a current prospectus which will describe the then current charge effective upon exercising step-up rights. We also reserve the right to increase the charge for this rider up to a maximum rate of 0.75% any time on or after the fifth anniversary of electing this rider or five years from the date from which we last notified you of a fee increase, whichever is later. The fee increase will only apply if you are eligible for future step-ups. Subject to the foregoing limitation, we also reserve the right to charge a different fee for this rider to any new Contract Owners as a result of a change of ownership of this Contract. 50 ------------------------------------------------------------------------------- DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. If elected at the time of Contract issuance, your initial Benefit Amount is your initial Premium Payment. If elected after the Contract has been issued, your initial Benefit Amount will be the based on your Contract Value at the time the rider is elected. Any time after the 5th Contract Year that this rider has been in effect and thereafter on each fifth anniversary of the last step-up (or sooner upon Spousal Contract continuation); you (or your Spouse if Spousal Contract continuation rights have been elected) may elect to step-up the Benefit Amount to the Contract Value. Your Benefit Amount will fluctuate based on subsequent Premium Payments or partial Surrenders. Partial Surrenders in excess of your Benefit Payments may also trigger a recalculation of the Benefit Amount and future Benefit Payments. Your Benefit Amount can never be more than $5 million. You cannot elect the step-up privilege if your then current Benefit Amount is higher than your Contract Value on step-up dates. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? No. You can continue to take Benefit Payments until the Benefit Amount has been depleted. Once the initial Benefit Amount has been determined, we calculate the Benefit Payment. The maximum Benefit Payment is 7% of your Benefit Amount on rider effective date, or if more recently, the last date on which a step up was elected, or the Benefit Amount was reduced due to a partial Surrender exceeding the Benefit Payment. Benefit Payments can begin at any time and can be taken on any schedule that you request. Benefit Payments are non-cumulative, which means that your Benefit Payment will not increase in the future if you fail to take your full Benefit Payment for the current year. For example, if you do not take 7% one year, you may not take more than 7% the next year. If you elect this rider when you purchase your Contract, we count one year as the time between each Contract Anniversary. If you purchase this rider after you purchase your Contract, we count the first year as the time between the date we added this rider to your Contract and your next Contract Anniversary, which could be less than a year. Each time you add a Premium Payment, we increase your Benefit Amount by the amount of the subsequent Premium Payment. When you make a subsequent Premium Payment, your Benefit Payments will increase by 7% of the amount of the subsequent Premium Payment. Your Benefit Amount cannot be less than $0 or more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider. Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value and Benefit Amount. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your annual Benefit Payment include any applicable Contingent Deferred Sales Charge. IF, IN ONE YEAR, YOUR SURRENDERS TOTAL MORE THAN YOUR BENEFIT PAYMENT, WE WILL RE-CALCULATE YOUR BENEFIT AMOUNT AND YOUR BENEFIT PAYMENT COULD BE SIGNIFICANTLY LOWER IN THE FUTURE. Any time we recalculate your Benefit Amount or your Benefit Payment, we count one year as the time between the date we re-calculate and your next Contract Anniversary, which could be less than a year. Whenever a partial Surrender is made, the Benefit Amount will be equal to the amount determined in either (A) or (B) as follows: A. If the total partial Surrenders since the later of (i) the most recent Contract Anniversary, or (ii) the Valuation Day that the Benefit Payment was last established (excluding establishments for subsequent Premium Payments), are equal to or less than the Benefit Payment, the Benefit Amount becomes the Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender. B. If the total partial Surrenders as determined in (A) above exceed the Benefit Payment, the Benefit Amount will have an automatic reset to the greater of zero or the lesser of (i) or (ii) as follows: (i) The Contract Value immediately following the partial Surrender; or (ii) The Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender. Please refer to examples 2 - 7 for The Hartford's Principal First in Appendix I for illustrations regarding recalculation of your Benefit Amount. Qualified Contracts are subject to certain federal tax rules requiring that minimum distributions be withdrawn from the Contract on a calendar year basis (i.e., compared to a Contract Year basis), usually beginning after age 70 1/2. These withdrawals are called Required Minimum Distributions. A Required Minimum Distribution may exceed your Benefit Payment, which will cause a recalculation of your Benefit Amount. Recalculation of your Benefit Amount may result in a lower Benefit Payment in the future. 51 ------------------------------------------------------------------------------- IS THIS RIDER DESIGNED TO PAY YOU DEATH BENEFITS? No. However, partial Surrenders will reduce the standard Death Benefit. DOES THIS RIDER REPLACE STANDARD DEATH BENEFITS? No. CAN YOU REVOKE THIS RIDER? No. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. WHAT EFFECT DO PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value and Benefit Amount. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your Benefit Payment include any applicable CDSC. If, in one year, your Surrenders total more than your Benefit Payment, we will re-calculate your Benefit Amount and your Benefit Payment could be significantly lower in the future. Any time we re-calculate your Benefit Amount or your Benefit Payment, we count one year as the time between the date we re-calculate and your next Contract Anniversary, which could be less than a year. If your Contract Value is reduced to zero due to receiving Benefit Payments, and you still have a Benefit Amount, you will continue to receive a Benefit Payment through a fixed Annuity Payout option until your Benefit Amount is depleted. While you are receiving payments under fixed Annuity Payout options, you may not make additional Premium Payments, and if you die before you receive all of your payments, your Beneficiary will continue to receive the remaining Benefit Payments. You can Surrender your entire Contract Value any time; however, you will receive your Contract Value at the time you request a full Surrender with any applicable charges deducted and not the Benefit Amount or the Benefit Payment amount that you would have received under this rider. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? If you change the ownership or assign this Contract to someone other than your Spouse after 12 months of electing this rider, we will recalculate the Benefit Amount and the Benefit Payment may be lower in the future. The Benefit Amount will be recalculated to equal the lesser of: - The Benefit Amount immediately prior to the ownership change or assignment; or - The Contract Value at the time of the ownership change or assignment. The Benefit Payment will then be reset to 7% of the new Benefit Amount. If the Owner dies and the sole Beneficiary is the Owner's Spouse, then the surviving Spouse can either become the Contract Owner or elect to receive the standard Death Benefit. You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice. CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? Yes. If the Owner dies and the Beneficiary is the deceased Owner's Spouse at the time of death, the Spouse may continue the Contract and this rider. This right may be exercised only once during the term of the Contract. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? You may elect the annuitization option at any time. If you annuitize your Contract, you may choose this Annuity Payout Option in addition to those Annuity Payout Options offered in the Contract. Under this Annuity Payout Option (called the "PF Annuity Payout Option"), we will pay a fixed dollar amount for a specific number of years ("Payout Period"). If you, the joint Owner or the Annuitant should die before the PF Annuity Payout Period is complete, the remaining payments will be made to the Beneficiary. The PF Annuity Payout Period is determined on the Annuity Calculation Date and it will equal the current Benefit Amount divided by the Benefit Payment. The total amount of the Annuity Payouts under this option will be equal to the Benefit Amount. We may offer other Payout Options. If you, the joint Owner or Annuitant die before the Annuity Calculation Date and all of the Benefit Payments guaranteed by us have not been made, the Beneficiary may elect to take the remaining Benefit Payments by electing the PF Annuity Payout Option or any of the Death Benefit options offered in your Contract. If the Annuitant dies after the Annuity Calculation Date and before all of the Benefit Payments guaranteed by us have been made, the payments will continue to be made to the Beneficiary. If your Contract Value is reduced to zero, you will receive a fixed dollar amount Annuity Payout option until your Benefit Amount is depleted. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? No. 52 ------------------------------------------------------------------------------- ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? No; however, your Benefit Amount cannot be more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider. CAN WE AGGREGATE CONTRACTS? We reserve the right to treat all Contracts issued to you by us or one of our affiliates as one Contract for purposes of this rider. This means that if you purchase two Contracts from us in any twelve month period and elect any optional withdrawal benefit rider on both Contracts, withdrawals from one Contract may be treated as withdrawals from the other Contract. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - The annual percentage used for determining Benefit Payments is not a fixed rate of return. The Contract Value used to set Benefit Payments is based on the investment performance of your Sub-Accounts. - Benefit Payments cannot be carried forward from one year to the next. You will not be warned if you take less than the maximum withdrawals available without triggering recalculation of your Benefit Payments. - Annual Surrenders exceeding 7% accelerate depletion of your Benefit Amount even if you use the Automatic Income Program to meet RMD requirements. No reliable assumptions can be made that your payments will continue for any particular number of years. - Additional contributions made to your Contract after withdrawals have begun may not restore the previous amount of Benefit Payments, even if the additional contribution restores the Benefit Amount to the previous Benefit Amount. - Voluntary or involuntary annuitization will terminate Benefit Payments. Annuity Payout options available subsequent to the Annuity Commencement Date may be less than Benefit Payments. - There are no assurances made or implied that automatic Benefit Amount increases will occur and if occurring, will be predictable. - The fee for this rider may increase if and when automatic Benefit Amount increases take place. There are no assurances as to the fee we will be charging at the time of each step-up. This is subject to the maximum fee disclosed in the Synopsis and this section. - When the Contract Value is small in relation to the Benefit Amount, Surrenders may have a significant effect on future Benefit Payments. 8. MISCELLANEOUS A. DEFINITIONS Except as provided elsewhere in this prospectus, the following capitalized terms shall have the meaning ascribed below: ACCOUNT: Any of the Sub-Accounts or the Fixed Accumulation Feature. ACCUMULATION UNITS: If you allocate your Premium Payment to any of the Sub-Accounts, we will convert those Payments into Accumulation Units in the selected Sub-Accounts. Accumulation Units are valued at the end of each Valuation Day and are used to calculate the value of your Contract prior to Annuitization. ACCUMULATION UNIT VALUE: The daily price of Accumulation Units on any Valuation Day. ADMINISTRATIVE OFFICE: Our location and overnight mailing address is: 200 Hopmeadow Street, Simsbury, Connecticut 06089. Our standard mailing address is: U.S. Wealth Management, P.O. Box 5085, Hartford, Connecticut 06102-5085. ANNIVERSARY VALUE: The value equal to the Contract Value as of a Contract Anniversary, as adjusted for subsequent Premium Payments and partial Surrenders. ANNUAL MAINTENANCE FEE: An annual $30 charge deducted on a Contract Anniversary or upon full Surrender if the Contract Value at either of those times is less than $50,000. The charge is deducted proportionately from each Sub-Account in which you are invested. ANNUAL WITHDRAWAL AMOUNT: This is the amount you can Surrender per Contract Year without paying a Contingent Deferred Sales Charge. This amount is non-cumulative, meaning that it cannot be carried over from one year to the next. ANNUITANT: The person on whose life the Contract is issued. Except as otherwise provided, the Annuitant may not be changed after your Contract is issued. 53 ------------------------------------------------------------------------------- ANNUITY CALCULATION DATE: The date we calculate the first Annuity Payout. ANNUITY COMMENCEMENT DATE: The later of the 10th Contract Anniversary or the date the Annuitant reaches age 90, unless we, in our sole discretion, agree to postpone to another date following our receipt of an extension request. ANNUITY PAYOUT: The money we pay out after the Annuity Commencement Date for the duration and frequency you select. ANNUITY PAYOUT OPTION: Any of the options available for payout after the Annuity Commencement Date or death of the Contract Owner or Annuitant. ANNUITY UNIT: The unit of measure we use to calculate the value of your Annuity Payouts under a variable dollar amount Annuity Payout Option. ANNUITY UNIT VALUE: The daily price of Annuity Units on any Valuation Day. BENEFICIARY: The person(s) entitled to receive benefits pursuant to the terms of the Contract upon the death of any Contract Owner and Annuitant as the case may be. BENEFIT AMOUNT: The basis used to determine the maximum payout guaranteed under The Hartford's Principal First, The Hartford's Principal First Preferred and The Hartford's Lifetime Income Builder. The Benefit Amount is comprised of net Premium Payments, less any Payment Enhancements, if applicable, and may be subject to periodic step ups when The Hartford's Principal First or The Hartford's Lifetime Income Builder have been elected. BENEFIT PAYMENT: The maximum guaranteed amount that may be withdrawn each Contract Year under The Hartford's Principal First, The Hartford's Principal First Preferred or The Hartford's Lifetime Income Builder. A Benefit Payment constitutes a partial Surrender. CHARITABLE REMAINDER TRUST: An irrevocable trust, where an individual donor makes a gift to the trust, and in return receives an income tax deduction. In addition, the individual donor has the right to receive a percentage of the trust earnings for a specified period of time. CODE: The Internal Revenue Code of 1986, as amended. COMMUTED VALUE: The present value of any remaining guaranteed Annuity Payouts. This amount is calculated using the Assumed Investment Return for variable dollar amount Annuity Payouts and a rate of return determined by us for fixed dollar amount Annuity Payouts. CONTINGENT ANNUITANT: The person you may designate to become the Annuitant if the original Annuitant dies before the Annuity Commencement Date. You must name a Contingent Annuitant before the original Annuitant's death. CONTINGENT DEFERRED SALES CHARGE: The deferred sales charge, if applicable, that may apply when you make a full or partial Surrender. CONTRACT: The individual Annuity Contract and any endorsements or riders. Group participants and some individuals may receive a certificate rather than a Contract. CONTRACT ANNIVERSARY: The anniversary of the date we issued your Contract. If the Contract Anniversary falls on a Non-Valuation Day, then the Contract Anniversary will be the next Valuation Day. CONTRACT OWNER, OWNER OR YOU: The owner or holder of the Contract described in this prospectus including any joint Owner(s). We do not capitalize "you" in the prospectus. CONTRACT VALUE: The total value of the Accounts on any Valuation Day. CONTRACT YEAR: Any 12 month period between Contract Anniversaries, beginning with the date the Contract was issued. COVERED LIFE: The governing life or lives used for determining the Lifetime Withdrawal Feature under The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios. DEATH BENEFIT: The amount payable if the Contract Owner, joint Contract Owner or the Annuitant dies before the Annuity Commencement Date. DOLLAR COST AVERAGING: A program that allows you to systematically make transfers between Accounts available in your Contract. ELIGIBLE WITHDRAWAL YEAR: As used in The Hartford's Lifetime Income Foundation and The Hartford's Lifetime Income Builder II, any Contract Year following the Relevant Covered Life's 60th birthday. 54 ------------------------------------------------------------------------------- FIXED ACCUMULATION FEATURE: Part of our General Account, where you may allocate all or a portion of your Contract Value. In your Contract, the Fixed Accumulation Feature may be called the Fixed Account. Not all forms of Contracts we offer contain a Fixed Accumulation Feature. FUND: A registered investment company or a series thereof in which assets of a Sub-Account may be invested. We sometimes call the Funds you select a "Sub-Account". GENERAL ACCOUNT: The General Account includes our company assets, including any money you may have invested in the Fixed Accumulation Feature, if available. The assets in the General Account are available to our creditors. JOINT ANNUITANT: The person on whose life Annuity Payouts are based if the Annuitant dies after Annuitization. You may name a Joint Annuitant only if your Annuity Payout Option provides for a survivor. The Joint Annuitant may not be changed. LIFETIME BENEFIT PAYMENT: The maximum guaranteed amount that can be withdrawn each year pursuant to The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios. A Lifetime Benefit Payment constitutes a partial Surrender. Withdrawals taken prior to an Eligible Withdrawal Year (The Hartford's Lifetime Income Foundation and The Hartford's Lifetime Income Builder II) or prior to the Lifetime Income Eligibility Date (The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios) are excluded from this definition. LIFETIME INCOME ELIGIBILITY DATE: Under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios, the date the relevant Covered Life attains age 59 1/2, at which point Lifetime Benefit Payments can begin. LIFETIME WITHDRAWAL FEATURE: Under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios, a series of Lifetime Benefit Payments in each Contract Year following the Lifetime Income Eligibility Date. MAXIMUM ANNIVERSARY VALUE: This is the highest Anniversary Value, adjusted for subsequent Premium Payments and partial Withdrawals, prior to the deceased's 81st birthday or the date of death, if earlier. MAXIMUM CONTRACT VALUE: The greatest of: (i) the Contract Value on the rider issue date, plus Premium Payments received after such date or (ii) the Contract Value on each subsequent Contract Anniversary, excluding the current Contract Anniversary, plus Premium Payments received after such Contract Anniversary date. MINIMUM CONTRACT VALUE: Subject to state variations, the Minimum Contract Value we establish from time to time. NET INVESTMENT FACTOR: This is used to measure the investment performance of a Sub-Account from one Valuation Day to the next, and is also used to calculate your Annuity Payout amount. 1933 ACT: The Securities Act of 1933, as amended. 1934 ACT: The Securities Exchange Act of 1934, as amended. 1940 ACT: The Investment Company Act of 1940, as amended. NON-VALUATION DAY: Any day the New York Stock Exchange is not open for trading. PAYEE: The person or party you designate to receive Annuity Payouts. PAYMENT BASE: The amount used to determine the Lifetime Benefit Payments for The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios. The Payment Base may be subject to automatic annual Payment Base increases when The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios has been elected. In The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios, Payment Base includes Payment Enhancements (Plus Contracts only) and front end sales charges (Edge Contracts only) but excludes any Employee Gross-Up. Your initial Payment Base equals your initial Premium Payment except in regard to a company sponsored exchange program. For Plus contracts, your initial Payment Base includes any Payment Enhancement, if applicable; provided, however, Payment Enhancements are not taken into consideration as such for the purposes of The Hartford's Lifetime Income Foundation or The Hartford's Lifetime Income Builder II. PAYMENT ENHANCEMENT: An amount we credit to your Contract Value at the time a Premium Payment is made for "Plus" Contracts only. The amount of a Payment Enhancement is based on the cumulative Premium Payments you make to your Contract. PREMIUM PAYMENT: Money sent to us to be invested in your Contract (not taking into consideration any applicable front-end charges, Payment Enhancements or Employee Gross Up). PREMIUM TAX: A tax charged by a state or municipality on Premium Payments. RELEVANT COVERED LIFE: When the Single Life option is chosen, the Relevant Covered Life will be the older of the Contract Owner(s) if the Contract Owner is a natural person or the Annuitant(s) if the Contract Owner is not a natural person. When the 55 ------------------------------------------------------------------------------- Joint/Spousal Option is chosen, however, the Relevant Covered Life will be the younger of the Contract Owner and his or her Spouse if the Contract Owner is a natural person or the Annuitant if the Contract Owner is not a natural person. As used herein, "attained age" means the chronological age of the Relevant Covered Life as of the most recent Contract Anniversary before requesting any partial Surrender or if a partial Surrender is requested during the first Contract Year, the chronological age of the Relevant Covered Life as of the Contract issuance date. REQUIRED MINIMUM DISTRIBUTION: A federal requirement that individuals age 70 1/2 and older must take a distribution from their tax-qualified retirement account by December 31, each year. For employer sponsored qualified Contracts, the individual must begin taking distributions at the age of 70 1/2 or upon retirement, whichever comes later. SPOUSE: A person related to a Contract Owner by marriage pursuant to the Code. SUB-ACCOUNT: A division of the Separate Account containing shares of a Fund. There is a Sub-Account for each Fund. We sometimes call the Funds you select your "Sub-Account". SUB-ACCOUNT VALUE: The value on or before the Annuity Calculation Date, which is determined on any day by multiplying the number of Accumulation Units by the Accumulation Unit Value for each Sub-Account. SURRENDER: A complete or partial withdrawal from your Contract. SURRENDER VALUE: The amount we pay you if you terminate your Contract before the Annuity Commencement Date. The Surrender Value is equal to the Contract Value minus any applicable charges (subject to rounding). THRESHOLD: For the purposes of The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios, the amount used to determine the change in the Payment Base following a partial Surrender in any Contract Year that is not an Eligible Withdrawal Year (The Hartford's Lifetime Income Foundation and The Hartford's Lifetime Income Builder II) or any Contract Year that is prior to the Lifetime Income Eligibility Date (The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios). For the purposes of these optional riders, the percentage used to determine your Threshold amount is 5% (Single Life Election) or 4.5% Joint/ Spousal Election) of the Payment Base. VALUATION DAY: Every day the New York Stock Exchange is open for trading. Values of the Separate Account are determined as of the close of the New York Stock Exchange. The Exchange generally closes at 4:00 p.m. Eastern Time but may close earlier on certain days and as conditions warrant. VALUATION PERIOD: The time span between the close of trading on the New York Stock Exchange from one Valuation Day to the next. WE, US OR OUR: Hartford Life and Annuity Insurance Company or Hartford Life Insurance Company, as the case may be. WITHDRAWAL PERCENT: The multiplier used in calculating Lifetime Benefit Payments under The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios. YOU: The Owner including any joint Owner(s). We do not capitalize "you" or "your" in this prospectus. 56 ------------------------------------------------------------------------------- B. STATE VARIATIONS The following section describes modifications to this prospectus required by one or more state insurance departments as of the date of this prospectus. Unless otherwise noted, variations apply to all forms of Contracts we issue. References to certain state's variations do not imply that we actually offer Contracts in each such state. These variations are subject to change without notice and additional variations may be imposed as specific states approve new riders. - ALABAMA -- We will accept subsequent Premium Payments only during the first Contract Year (if Contract contains the Fixed Account Rider). - CALIFORNIA -- Any Owner 60 years old or older when purchasing this Contract in California must either elect the Senior Protection Program, or elect to immediately allocate the initial Premium Payments to the other investment options. Under the Senior Protection Program, we will allocate your initial Premium Payment to a Money Market Fund Sub-Account (or comparable money market Sub-Account) for the first 35 days your initial Premium Payment is invested. After the 35th day we will automatically allocate your Contract Value according to your most current investment instructions. If you elect the Senior Protection Program you will not be able to participate in any InvestEase (if otherwise available) or Dollar Cost Averaging Program until after the Program has terminated. The Dollar Cost Averaging Plus, Static Asset Allocation Models and certain Automatic Income Programs are not available if you elect the Senior Protection Program. Under the Senior Protection Program any subsequent Premium Payment received during the 35 days after the initial Premium Payment is invested will also be invested in a Money Market Fund Sub-Account (or comparable money market Sub-Account) unless you direct otherwise. You may voluntarily terminate your participation in the Senior Protection Program by contacting us in writing or by telephone. You will automatically terminate your participation in the Senior Protection Program if you allocate a subsequent Premium Payment to any other investment option or transfer Account Value from a Money Market Fund Sub-Account (or comparable money market Sub-Account) to another investment option. When you terminate your participation in the Senior Protection Program you may reallocate your Contract Value in the Program to other investment options; or we will automatically reallocate your Account Value in the Program according to your original instructions 35 days after your initial Premium Payment was invested. - CONNECTICUT -- There are no investment restrictions on the Sub-Accounts that you may invest in while subject to The Hartford's Principal First Preferred benefits. If you elect that rider, our approval is required for any subsequent Premium Payments if the Premium Payments for all deferred variable annuity Contracts issued by us or our affiliates to you equal or exceed $100,000. For Connecticut residents that elect The Hartford's Principle First Preferred, The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation, contract aggregation provisions do not apply. - FLORIDA -- The limit on Death Benefits imposed when aggregate Premium Payments total $5 million or more does not apply. - MASSACHUSETTS -- We will accept subsequent Premium Payments only until the Annuitant's 63rd birthday or the third Contract Anniversary, whichever is later. The Nursing Home Waiver is not available. - MINNESOTA -- MAV Plus is not available and the Maximum Anniversary Value (MAV) Death Benefit is offered instead. - NEW JERSEY -- The only AIRs available are 3% and 5%. The investment restrictions and the contract aggregation provisions of The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II and The Hartford's Lifetime Income Foundation are not applicable to New Jersey Owners electing such rider. The Nursing Home Waiver is not available. - NEW YORK -- We will not recalculate The Hartford's Principal First Preferred or The Hartford's Principal First Benefit Amounts if you change ownership or assign your Contract to someone other than your Spouse. The Minimum Contract Value is $1,000 after any Surrender. The minimum monthly Annuity Payout is $20. There are no investment restrictions for The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II and The Hartford's Lifetime Income Foundation. The rider charge for The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II and The Hartford's Lifetime Income Foundation is only deducted from the Sub-Accounts. MAV Plus is not available and the Maximum Anniversary Value (MAV) Death Benefit is offered instead. The Fixed Accumulation Feature is not available if you elect The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation. The only AIRs available are 3% and 5%. The Nursing Home Waiver is not available. - OKLAHOMA -- The only AIRs available are 3% and 5%. - OREGON -- We will accept subsequent Premium Payments during the first three Contract Years. Owners may only sign up for DCA Plus Programs that are 6 months or longer. You may not choose a fixed dollar amount Annuity Payout. The Life Annuity with a Cash Refund Annuity Payout Option is not available for Oregon residents and the only AIRs available are 3% and 5%. 57 ------------------------------------------------------------------------------- - PENNSYLVANIA -- The Nursing Home Waiver minimum confinement period is changed from 180 days to 90 days. Pennsylvania residents may not choose a fixed dollar amount Annuity Payout or the Life Annuity with a Cash Refund Annuity Payout Option. - WASHINGTON -- MAV Plus is not available and Maximum Anniversary Value (MAV) Death Benefit is offered instead. The Fixed Accumulation is not available if you elect The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation. The rider charge for The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II and The Hartford's Lifetime Income Foundation is only deducted from the Sub-Accounts. 58 ------------------------------------------------------------------------------- C. FINANCIAL STATEMENTS You can find financial statements for us and the Separate Account in the Statement of Additional Information. To receive a copy of the Statement of Additional Information free of charge, call your representative or complete the form at the end of this prospectus and mail the form to us at the address indicated on the form. D. MORE INFORMATION OWNERSHIP CHANGES -- We reserve the right to approve all ownership changes, including any assignment of your Contract (or any benefits) to others or the pledging of your Contract as collateral. Certain approved changes in ownership may cause a re-calculation of the benefits subject to applicable state law. Generally, we will not re-calculate the benefits under your Contract so long as the change in ownership does not affect the Owner and does not result in a change in the tax identification number under the Contract. Changes in ownership can also adversely affect your Death Benefits and optional withdrawal benefits. If the Owner dies and the sole Beneficiary is the Owner's Spouse, then the surviving Spouse can either become the Contract Owner or elect to receive the applicable Death Benefit. We will adjust the Contract Value in these circumstances to equal the amount that we would have paid as the Death Benefit payment, had the Spouse elected to receive the applicable Death Benefit as a lump sum payment. This privilege will only apply once for each Contract. You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice. ASSIGNMENT -- A non-qualified Contract may be assigned. We must be properly notified in writing of an assignment. Any Annuity Payouts or Surrenders requested or scheduled before we record an assignment will be made according to the instructions we have on record. We are not responsible for determining the validity of an assignment. Assigning a non-qualified Contract may require the payment of income taxes and certain penalty taxes. A qualified Contract may not be transferred or otherwise assigned (whether directly or used as collateral for a loan), unless allowed by applicable law and approved by us in writing. We can withhold our consent for any reason. We are not obligated to process any request for approval within any particular time frame. Please consult a qualified tax adviser before assigning your Contract. CONTRACT MODIFICATION -- We may modify the Contract, but no modification will affect the amount or term of any Contract unless a modification is required to conform the Contract to applicable federal or state law. No modification will affect the method by which Contract Values are determined. MEDICAID BENEFITS -- Medicaid is a program that covers most medical costs, including nursing home and home care for the elderly and certain persons with disabilities. To qualify, individuals must meet both income and resource tests. Subject to state law, income tests measure whether earned and unearned income such as benefit payments exceeds predetermined monthly caps. Resource tests look to the value of countable assets such as this Contract. Medicaid also allows the costs of benefits such as nursing home care, home and community based services, and related hospital prescription drug services to be recaptured from a recipient's estate after their death (or if the recipient has a surviving Spouse, the recapture is suspended until after the death of the recipient's surviving Spouse). Medicaid estate planning may be important to people who are concerned about long term care costs or the adequacy of their private LTC insurance. Benefits associated with this variable annuity may have an impact on your Medicaid eligibility and the assets considered for Medicaid benefits. Certain asset and/or trust transfers (or a "spend down" of assets) made to become eligible for Medicaid may trigger periods of potentially unlimited ineligibility and can be considered fraud. Each state examines the financial history of a person to determine whether he or she transferred funds at below market value in order to qualify for Medicaid. These look-back periods are currently 36-months for asset transfers and 60-months for Medicaid exempt trust transfers. Ownership interests or beneficiary status under this variable annuity can render you or your loved ones ineligible for Medicaid. This may be particularly troubling if your Spouse or Beneficiary is already receiving Medicaid benefits at the time of transfer or receipt of Death Benefits. As certain ownership changes are either impermissible or are subject to benefit resetting rules, you may want to carefully consider how you structure the ownership and beneficiary status of your Contract. This discussion is intended to provide a very general overview and does not constitute legal advice or in any way suggest that you circumvent these rules. You should seek advice from a competent elder law attorney to make informed decisions about how this variable annuity may affect your plans. E. LEGAL PROCEEDINGS There continues to be significant federal and state regulatory activity relating to financial services companies. Like other insurance companies, we are involved in lawsuits, arbitrations, and regulatory/legal proceedings. While it is not possible to predict with certainty the ultimate outcome of any pending or future legal proceeding or regulatory action, we do not expect any of these actions to result in a material adverse effect on the Company or its Separate Accounts. 59 ------------------------------------------------------------------------------- F. HOW CONTRACTS ARE SOLD We have entered into a distribution agreement with our affiliate Hartford Securities Distribution Company, Inc. ("HSD") under which HSD serves as the principal underwriter for the Contracts, which are offered on a continuous basis. HSD is registered with the Securities and Exchange Commission under the 1934 Act as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA). The principal business address of HSD is the same as ours. PLANCO Financial Services, LLC, a subsidiary of Hartford Life Insurance Company, provides marketing support for us. Woodbury Financial Services, Inc. is another affiliated broker-dealer that sells this Contract. HSD has entered into selling agreements with affiliated and unaffiliated broker-dealers, and financial institutions ("Financial Intermediaries") for the sale of the Contracts. We pay compensation to HSD for sales of the Contracts by Financial Intermediaries. HSD, in its role as principle underwriter, did not retain any underwriting commissions for the fiscal year ended December 31, 2007. Contracts will be sold by individuals who have been appointed by us as insurance agents and who are registered representatives of Financial Intermediaries ("Registered Representatives"). Core and Edge Contracts may be sold directly to the following individuals free of any commission ("Employee Gross-Up" on Core and no front-end sales charge on Edge): 1) current or retired officers, directors, trustees and employees (and their families) of our ultimate corporate parent and affiliates; and 2) employees and Registered Representatives (and their families) of Financial Intermediaries. If applicable, we will credit the Core Contract with a credit of 5.0% of the initial Premium Payment and each subsequent Premium Payment, if any. This additional percentage of Premium Payment in no way affects current or future charges, rights, benefits or account values of other Contract Owners. We list below types of arrangements that help to incentivize sales people to sell our suite of variable annuities. Not all arrangements necessarily affect each variable annuity. These types of arrangements could be viewed as creating conflicts of interest. Financial Intermediaries receive commissions (described below under "Commissions"). Certain selected Financial Intermediaries also receive additional compensation (described below under "Additional Payments"). All or a portion of the payments we make to Financial Intermediaries may be passed on to Registered Representatives according to a Financial Intermediaries' internal compensation practices. Affiliated broker-dealers also employ individuals called "wholesalers" in the sales process. Wholesalers typically receive commissions based on the type of Contract or optional benefits sold. Commissions are based on a specified amount of Premium Payments or Contract Value. COMMISSIONS Up front commissions paid to Financial Intermediaries generally range from 1% to up to 7% of each Premium Payment you pay for your Contract. Trail commissions (fees paid for customers that maintain their Contracts generally for more than 1 year) range up to 1.20% of your Contract Value. We pay different commissions based on the Contract variation that you buy. We may pay a lower commission for sales to people over age 80. Commission arrangements vary from one Financial Intermediary to another. We are not involved in determining your Registered Representative's compensation. Under certain circumstances, your Registered Representative may be required to return all or a portion of the commissions paid. Check with your Registered Representative to verify whether your account is a brokerage or an advisory account. Your interests may differ from ours and your Registered Representative (or the Financial Intermediary with which they are associated). Please ask questions to make sure you understand your rights and any potential conflicts of interest. If you are an advisory client, your Registered Representative (or the Financial Intermediary with which they are associated) can be paid both by you and by us based on what you buy. Therefore, profits, and your Registered Representative's (or their Financial Intermediary's) compensation, may vary by product and over time. Contact an appropriate person at your Financial Intermediary with whom you can discuss these differences. ADDITIONAL PAYMENTS Subject to FINRA and Financial Intermediary rules, we (or our affiliates) also pay the following types of fees to among other things encourage the sale of this Contract. These additional payments could create an incentive for your Registered Representative, and the Financial Intermediary with which they are associated, to recommend products that pay them more than others, which may not necessarily be to your benefit. 60 -------------------------------------------------------------------------------
ADDITIONAL PAYMENT TYPE WHAT IT'S USED FOR --------------------------------------------------------------------------------------------------------------------------------- Access Access to Registered Representatives and/or Financial Intermediaries such as one-on-one wholesaler visits or attendance at national sales meetings or similar events. Gifts & Entertainment Occasional meals and entertainment, tickets to sporting events and other gifts. Marketing Joint marketing campaigns and/or Financial Intermediary event advertising/ participation; sponsorship of Financial Intermediary sales contests and/or promotions in which participants (including Registered Representatives) receive prizes such as travel awards, merchandise and recognition; client generation expenses. Marketing Expense Allowances Pay Fund related parties for wholesaler support, training and marketing activities for certain Funds. Support Sales support through such things as providing hardware and software, operational and systems integration, links to our website from a Financial Intermediary's websites; shareholder services (including sub-accounting sponsorship of Financial Intermediary due diligence meetings; and/or expense allowances and reimbursements. Training Educational (due diligence), sales or training seminars, conferences and programs, sales and service desk training, and/or client or prospect seminar sponsorships. Visibility Inclusion of our products on a Financial Intermediary's "preferred list"; participation in, or visibility at, national and regional conferences; and/or articles in Financial Intermediary publications highlighting our products and services. Volume Pay for the overall volume of their sales or the amount of money investing in our products.
As of December 31, 2007, we have entered into ongoing contractual arrangements to make Additional Payments to the following Financial Intermediaries for our entire suite of variable annuities: A.G. Edwards & Sons, Inc., AIG Advisors Group, Inc., (Advantage Capital, AIG Financial Advisors, American General, FSC Securities Corporation, Royal Alliance Assoc., Inc.), Bancwest Investment Services, Inc., Cadaret, Grant & Co., Inc., Capital Analyst Inc., Centaurus Financial, Inc., Citigroup, Inc. (various divisions and affiliates), Comerica Securities, Commonwealth Financial Network, Compass Brokerage, Inc., Crown Capital Securities, L.P., Cuna Brokerage Services, Inc., Cuso Financial Services, L.P., Edward D. Jones & Co., L.P., FFP Securities, Inc., First Allied Securities, Inc., First Citizens Investor Services, First Montauk Securities Corp., First Tennessee Bank, First Tennessee Brokerage, Inc., Frost Brokerage Services, Inc., Great American Advisors, Inc., H. Beck, Inc., H.D. Vest Investment Services (subsidiary of Wells Fargo & Company), Harbour Investments, Inc., Heim & Young Securities, Huntington Investment Company, Independent Financial Group LLC, Infinex Financial Group, ING Advisors Network, (Financial Network Services (or Investment) Corp., ING Financial Partners, Multi-Financial Securities, Primevest Financial Services, Inc.,), Investacorp, Inc. , Investment Professionals, Inc., Investors Capital Corp., J.J.B. Hilliard, James T. Borello & Co., Janney Montgomery Scott, Inc., Jefferson Pilot Securities Corporation, Key Investment Services, LaSalle Financial Services, Inc., Lincoln Financial Advisors Corp. (marketing name for Lincoln National Corp.), LPL Financial Corporation, M&T Securities, Inc., Merrill Lynch Pierce Fenner & Smith, Morgan Keegan & Company, Inc., Morgan Keegan FID Division, Morgan Stanley & Co., Inc. (various divisions and affiliates), Mutual Service Corporation, NatCity Investments, National Planning Holdings (Invest Financial Corp., Investment Centers of America, Inc., National Planning Corp., SII Investments, Inc.), Newbridge Securities Corp., NEXT Financial Group, Inc., NFP Securities, Inc., Pension Planners Securities, Inc., Prime Capital Services, Inc., Prospera Financial Services, Inc., Raymond James & Associates, Inc., Raymond James FID Division, Raymond James Financial Services, RBC Dain FID Division, RBC Dain Rauscher Inc., RDM Investment Svcs Inc., Robert W. Baird & Co. Inc., Securities America, Inc., Sigma Financial Corporation, Sorrento Pacific, Stifel Nicolaus & Company, Incorporated, Summit Brokerage Services Inc., Sun Trust Bank, TFS Securities, Inc., The Investment Center, Inc., Thurston, Springer, Miller, Herd & Titak, Inc., Triad Advisors, Inc., U.S. Bancorp Investments, Inc., UBOC Investment Services, Inc. (Union Bank of California, N.A.), UBS Financial Services, Inc., Uvest Financial Services Group Inc., Vanderbilt Securities, LLC, Wachovia Securities, LLC (various divisions), Walnut Street Securities, Inc., Wells Fargo Brokerage Services, L.L.C., WaMu Investments, Inc., Woodbury Financial Services, Inc. (an affiliate of ours), XCU Capital Corporation, Inc. Inclusion on this list does not imply that these sums necessarily constitute "special cash compensation" as defined by FINRA Conduct Rule 2830(l)(4). We will endeavor to update this listing annually and interim arrangements may not be reflected. We assume no duty to notify any investor whether their Registered Representative is or should be included in any such listing. As of December 31, 2007, we have entered into arrangements to pay Marketing Expense Allowances to the following Fund Companies (or affiliated parties) for our entire suite of variable annuities: AIM Advisors, Inc., AllianceBernstein Variable Products Series Funds & Alliance Bernstein Investment Research and Management, Inc., American Variable Insurance Series & Capital Research and Management Company, Franklin Templeton Services, LLC, Oppenheimer Variable Account Funds & Oppenheimer Funds Distributor, Inc., Putnam Retail Management Limited Partnership. Marketing Expense Allowances may vary based on the form of Contract sold and the age of the purchaser. We will endeavor to update this listing annually and interim arrangements may not be reflected. We 61 ------------------------------------------------------------------------------- assume no duty to notify you whether any Financial Intermediary is or should be included in any such listing. You are encouraged to review the prospectus for each Fund for any other compensation arrangements pertaining to the distribution of Fund shares. For the fiscal year ended December 31, 2007, Additional Payments did not in the aggregate exceed approximately $66.4 million (excluding corporate-sponsorship related perquisites and Marketing Expense Allowances) or approximately 0.06% of average total individual variable annuity assets. Marketing Expense Allowances for this period did not exceed $15.8 million or approximately 0.25% of the Premium Payments invested in a particular Fund during this period. Financial Intermediaries that received Additional Payments in 2007, but do not have an ongoing contractual relationship, are listed in the Statement of Additional Information. 9. FEDERAL TAX CONSIDERATIONS A. INTRODUCTION The following summary of tax rules does not provide or constitute any tax advice. It provides only a general discussion of certain of the expected federal income tax consequences with respect to amounts contributed to, invested in or received from a Contract, based on our understanding of the existing provisions of the Code, Treasury Regulations thereunder, and public interpretations thereof by the IRS (e.g., Revenue Rulings, Revenue Procedures or Notices) or by published court decisions. This summary discusses only certain federal income tax consequences to United States Persons, and does not discuss state, local or foreign tax consequences. The term United States Persons means citizens or residents of the United States, domestic corporations, domestic partnerships, trust or estates that are subject to United States federal income tax, regardless of the source of their income. See "Annuity Purchases by Nonresident Aliens and Foreign Corporations," regarding annuity purchases by non-U.S. Persons or residents. This summary has been prepared by us after consultation with tax counsel, but no opinion of tax counsel has been obtained. We do not make any guarantee or representation regarding any tax status (e.g., federal, state, local or foreign) of any Contract or any transaction involving a Contract. In addition, there is always a possibility that the tax treatment of an annuity contract could change by legislation or other means (such as regulations, rulings or judicial decisions). Moreover, it is always possible that any such change in tax treatment could be made retroactive (that is, made effective prior to the date of the change). Accordingly, you should consult a qualified tax adviser for complete information and advice before purchasing a Contract. In addition, this discussion does not address many of the tax consequences if you use the Contract in various arrangements, including Charitable Remainder Trusts, tax-qualified retirement arrangements, deferred compensation plans, split-dollar insurance arrangements, or other employee benefit arrangements. The tax consequences of any such arrangement may vary depending on the particular facts and circumstances of each individual arrangement and whether the arrangement satisfies certain tax qualification or classification requirements. In addition, the tax rules affecting such an arrangement may have changed recently, e.g., by legislation or regulations that affect compensatory or employee benefit arrangements. Therefore, if you are contemplating the use of a Contract in any arrangement the value of which to you depends in part on its tax consequences, you should consult a qualified tax adviser regarding the tax treatment of the proposed arrangement and of any Contract used in it. THE DISCUSSION SET FORTH BELOW IS INCLUDED FOR GENERAL PURPOSES ONLY. SPECIAL TAX RULES MAY APPLY WITH RESPECT TO CERTAIN SITUATIONS THAT ARE NOT DISCUSSED HEREIN. EACH POTENTIAL PURCHASER OF A CONTRACT IS ADVISED TO CONSULT WITH A QUALIFIED TAX ADVISER AS TO THE CONSEQUENCES OF ANY AMOUNTS INVESTED IN A CONTRACT UNDER APPLICABLE FEDERAL, STATE, LOCAL OR FOREIGN TAX LAW. B. TAXATION OF HARTFORD AND THE SEPARATE ACCOUNT The Separate Account is taxed as part of Hartford which is taxed as a life insurance company under Subchapter L of Chapter 1 of the Code. Accordingly, the Separate Account will not be taxed as a "regulated investment company" under Subchapter M of Chapter 1 of the Code. Investment income and any realized capital gains on assets of the Separate Account are reinvested and taken into account in determining the value of the Accumulation and Annuity Units. As a result, such investment income and realized capital gains are automatically applied to increase reserves under the Contract. Currently, no taxes are due on interest, dividends and short-term or long-term capital gain earned by the Separate Account with respect to the Contracts. Hartford is entitled to certain tax benefits related to the investment of company assets, including assets of the Separate Account. These tax benefits, which may include the foreign tax credit and the corporate dividends received deduction, are not passed back to you since Hartford is the owner of the assets from which the tax benefits are derived. 62 ------------------------------------------------------------------------------- C. TAXATION OF ANNUITIES -- GENERAL PROVISIONS AFFECTING CONTRACTS NOT HELD IN TAX-QUALIFIED RETIREMENT PLANS Section 72 of the Code governs the taxation of annuities in general. 1. NON-NATURAL PERSONS AS OWNERS Pursuant to Code Section 72(u), an annuity contract held by a taxpayer other than a natural person generally is not treated as an annuity contract under the Code. Instead, such a non-natural Contract Owner generally could be required to include in gross income currently for each taxable year the excess of (a) the sum of the Contract Value as of the close of the taxable year and all previous distributions under the Contract over (b) the sum of net premiums paid for the taxable year and any prior taxable year and the amount includable in gross income for any prior taxable year with respect to the Contract under Section 72(u). However, Section 72(u) does not apply to: - A contract the nominal owner of which is a non-natural person but the beneficial owner of which is a natural person (e.g., where the non-natural owner holds the contract as an agent for the natural person), - A contract acquired by the estate of a decedent by reason of such decedent's death, - Certain contracts acquired with respect to tax-qualified retirement arrangements, - Certain contracts held in structured settlement arrangements that may qualify under Code Section 130, or - A single premium immediate annuity contract under Code Section 72(u)(4), which provides for substantially equal periodic payments and an annuity starting date that is no later than 1 year from the date of the contract's purchase. A non-natural Contract Owner that is a tax-exempt entity for federal tax purposes (e.g., a tax-qualified retirement trust or a Charitable Remainder Trust) generally would not be subject to federal income tax as a result of such current gross income under Code Section 72(u). However, such a tax-exempt entity, or any annuity contract that it holds, may need to satisfy certain tax requirements in order to maintain its qualification for such favorable tax treatment. See, e.g., IRS Tech. Adv. Memo. 9825001 for certain Charitable Remainder Trusts. Pursuant to Code Section 72(s), if the Contract Owner is a non-natural person, the primary annuitant is treated as the "holder" in applying the required distribution rules described below. These rules require that certain distributions be made upon the death of a "holder." In addition, for a non-natural owner, a change in the primary annuitant is treated as the death of the "holder." However, the provisions of Code Section 72(s) do not apply to certain contracts held in tax-qualified retirement arrangements or structured settlement arrangements. 2. OTHER CONTRACT OWNERS (NATURAL PERSONS). A Contract Owner is not taxed on increases in the value of the Contract until an amount is received or deemed received, e.g., in the form of a lump sum payment (full or partial value of a Contract) or as Annuity payments under the settlement option elected. Except as provided below, upon the death of the Contract Owner prior to the Annuity Commencement Date, if the designated beneficiary is the surviving spouse of the Contract Owner; (a) or the civil union partner of the Contract Owner in a civil union established under applicable state law (or any law succeeding or replacing such statute(s)); or (b) the civil union partner or member of a similar same sex relationship under the law of any state; and the Annuitant or Joint Annuitant, if any, is alive, then such designated beneficiary may continue the Contract as the succeeding Contract Owner. The right of the designated beneficiary (as spouse or civil union partner) to continue the Contract is contingent upon the treatment of the designated beneficiary as the "holder" of the Contract in accordance with the provisions of section 72(s)(3) of the Code (which under current tax law is limited to different sex spouses). In the event that the designated beneficiary continues the Contract, the distribution requirements of Code section 72(s) will only arise upon the death of such designated beneficiary, unless the designated beneficiary elects not to continue the Contract. If the designated beneficiary is not treated as the "holder" under section 72(s)(3) of the Code (as is the case under current federal tax law for a civil union partner), the distribution requirements of Code section 72(s)(1) and (2) outlined above shall apply at the time of the Contract Owner's death and the entire interest in the Contract must be distributed within five years of the Contract Owner's death or under the Alternative Election. Contract continuation under this provision may take effect only once with respect to this Contract. The provisions of Section 72 of the Code concerning distributions are summarized briefly below. Also summarized are special rules affecting distributions from Contracts obtained in a tax-free exchange for other annuity contracts or life insurance contracts which were purchased prior to August 14, 1982. a. DISTRIBUTIONS PRIOR TO THE ANNUITY COMMENCEMENT DATE. i. Total premium payments less amounts received which were not includable in gross income equal the "investment in the contract" under Section 72 of the Code. ii. To the extent that the value of the Contract (ignoring any surrender charges except on a full surrender) exceeds the "investment in the contract," such excess constitutes the "income on the contract." It is unclear what value should be used in determining the "income on the contract." We believe that the current Contract Value (determined without regard to surrender charges) generally is an appropriate measure. However, in some instances the IRS could take the position that the value 63 ------------------------------------------------------------------------------- should be the current Contract value (determined without regard to surrender charges) increased by some measure of the value of certain future cash-value type benefits. iii. Any amount received or deemed received prior to the Annuity Commencement Date (e.g., upon a withdrawal or partial surrender) is deemed to come first from any such "income on the contract" and then from "investment in the contract," and for these purposes such "income on the contract" shall be computed by reference to any aggregation rule in subparagraph 2.c. below. As a result, any such amount received or deemed received (1) shall be includable in gross income to the extent that such amount does not exceed any such "income on the contract," and (2) shall not be includable in gross income to the extent that such amount does exceed any such "income on the contract." If at the time that any amount is received or deemed received there is no "income on the contract" (e.g., because the gross value of the Contract does not exceed the "investment in the contract" and no aggregation rule applies), then such amount received or deemed received will not be includable in gross income, and will simply reduce the "investment in the contract." iv. The receipt of any amount as a loan under the Contract or the assignment or pledge of any portion of the value of the Contract shall be treated as an amount received for purposes of this subparagraph a. and the next subparagraph b. v. In general, the transfer of the Contract, without full and adequate consideration, will be treated as an amount received for purposes of this subparagraph a. and the next subparagraph b. This transfer rule does not apply, however, to certain transfers of property between Spouses or incident to divorce. vi. In general, any amount actually received under the Contract as a Death Benefit, including an optional Death Benefit, if any, will be treated as an amount received for purposes of this subparagraph a. and the next subparagraph b. b. DISTRIBUTIONS AFTER ANNUITY COMMENCEMENT DATE. Annuity payments made periodically after the Annuity Commencement Date are includable in gross income to the extent the payments exceed the amount determined by the application of the ratio of the "investment in the contract" to the total amount of the payments to be made after the Annuity Commencement Date (the "exclusion ratio"). i. When the total of amounts excluded from income by application of the exclusion ratio is equal to the investment in the contract as of the Annuity Commencement Date, any additional payments (including surrenders) will be entirely includable in gross income. ii. If the annuity payments cease by reason of the death of the Annuitant and, as of the date of death, the amount of annuity payments excluded from gross income by the exclusion ratio does not exceed the investment in the contract as of the Annuity Commencement Date, then the remaining portion of unrecovered investment shall be allowed as a deduction for the last taxable year of the Annuitant. iii. Generally, non-periodic amounts received or deemed received after the Annuity Commencement Date are not entitled to any exclusion ratio and shall be fully includable in gross income. However, upon a full surrender after such date, only the excess of the amount received (after any surrender charge) over the remaining "investment in the contract" shall be includable in gross income (except to the extent that the aggregation rule referred to in the next subparagraph c. may apply). c. AGGREGATION OF TWO OR MORE ANNUITY CONTRACTS. Contracts issued after October 21, 1988 by the same insurer (or affiliated insurer) to the same owner within the same calendar year (other than certain contracts held in connection with tax-qualified retirement arrangements) will be aggregated and treated as one annuity contract for the purpose of determining the taxation of distributions prior to the Annuity Commencement Date. An annuity contract received in a tax-free exchange for another annuity contract or life insurance contract may be treated as a new contract for this purpose. We believe that for any Contracts subject to such aggregation, the values under the Contracts and the investment in the contracts will be added together to determine the taxation under subparagraph 2.a., above, of amounts received or deemed received prior to the Annuity Commencement Date. Withdrawals will first be treated first as withdrawals of income until all of the income from all such Contracts is withdrawn. In addition, the Treasury Department has specific authority under the aggregation rules in Code Section 72(e)(12) to issue regulations to prevent the avoidance of the income-out-first rules for non-periodic distributions through the serial purchase of annuity contracts or otherwise. As of the date of this prospectus, there are no regulations interpreting these aggregation provisions. d. 10% PENALTY TAX -- APPLICABLE TO CERTAIN WITHDRAWALS AND ANNUITY PAYMENTS. i. If any amount is received or deemed received on the Contract (before or after the Annuity Commencement Date), the Code applies a penalty tax equal to ten percent of the portion of the amount includable in gross income, unless an exception applies. ii. The 10% penalty tax will not apply to the following distributions: 1. Distributions made on or after the date the recipient has attained the age of 59 1/2. 2. Distributions made on or after the death of the holder or where the holder is not an individual, the death of the primary annuitant. 64 ------------------------------------------------------------------------------- 3. Distributions attributable to a recipient's becoming disabled. 4. A distribution that is part of a scheduled series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the recipient (or the joint lives or life expectancies of the recipient and the recipient's designated Beneficiary). 5. Distributions made under certain annuities issued in connection with structured settlement agreements. 6. Distributions of amounts which are allocable to the "investment in the contract" prior to August 14, 1982 (see next subparagraph e.). 7. Distributions purchased by an employer upon termination of certain qualified plans and held by the employer until the employee separates from service. If the taxpayer avoids this 10% penalty tax by qualifying for the substantially equal periodic payments exception and later such series of payments is modified (other than by death or disability), the 10% penalty tax will be applied retroactively to all the prior periodic payments (i.e., penalty tax plus interest thereon), unless such modification is made after both (a) the taxpayer has reached age 59 1/2 and (b) 5 years have elapsed since the first of these periodic payments. e. SPECIAL PROVISIONS AFFECTING CONTRACTS OBTAINED THROUGH A TAX-FREE EXCHANGE OF OTHER ANNUITY OR LIFE INSURANCE CONTRACTS PURCHASED PRIOR TO AUGUST 14, 1982. If the Contract was obtained by a tax-free exchange of a life insurance or annuity Contract purchased prior to August 14, 1982, then any amount received or deemed received prior to the Annuity Commencement Date shall be deemed to come (1) first from the amount of the "investment in the contract" prior to August 14, 1982 ("pre-8/14/82 investment") carried over from the prior Contract, (2) then from the portion of the "income on the contract" (carried over to, as well as accumulating in, the successor Contract) that is attributable to such pre-8/14/82 investment, (3) then from the remaining "income on the contract" and (4) last from the remaining "investment in the contract." As a result, to the extent that such amount received or deemed received does not exceed such pre-8/14/82 investment, such amount is not includable in gross income. In addition, to the extent that such amount received or deemed received does not exceed the sum of (a) such pre-8/14/82 investment and (b) the "income on the contract" attributable thereto, such amount is not subject to the 10% penalty tax. In all other respects, amounts received or deemed received from such post-exchange Contracts are generally subject to the rules described in this subparagraph e. f. REQUIRED DISTRIBUTIONS i. Death of Contract Owner or Primary Annuitant Subject to the alternative election or Spouse beneficiary provisions in ii or iii below: 1. If any Contract Owner dies on or after the Annuity Commencement Date and before the entire interest in the Contract has been distributed, the remaining portion of such interest shall be distributed at least as rapidly as under the method of distribution being used as of the date of such death; 2. If any Contract Owner dies before the Annuity Commencement Date, the entire interest in the Contract shall be distributed within 5 years after such death; and 3. If the Contract Owner is not an individual, then for purposes of 1. or 2. above, the primary annuitant under the Contract shall be treated as the Contract Owner, and any change in the primary annuitant shall be treated as the death of the Contract Owner. The primary annuitant is the individual, the events in the life of whom are of primary importance in affecting the timing or amount of the payout under the Contract. ii. Alternative Election to Satisfy Distribution Requirements If any portion of the interest of a Contract Owner described in i. above is payable to or for the benefit of a designated beneficiary, such beneficiary may elect to have the portion distributed over a period that does not extend beyond the life or life expectancy of the beneficiary. Such distributions must begin within a year of the Contract Owner's death. iii. Spouse Beneficiary If any portion of the interest of a Contract Owner is payable to or for the benefit of his or her Spouse, and the Annuitant or Contingent Annuitant is living, such Spouse shall be treated as the Contract Owner of such portion for purposes of section i. above. This spousal contract continuation shall apply only once for this Contract. g. ADDITION OF RIDER OR MATERIAL CHANGE. The addition of a rider to the Contract, or a material change in the Contract's provisions, could cause it to be considered newly issued or entered into for tax purposes, and thus could cause the Contract to lose certain grandfathered tax status. Please contact your tax adviser for more information. 65 ------------------------------------------------------------------------------- h. PARTIAL EXCHANGES. The IRS in Rev. Rul. 2003-76 has confirmed that the owner of an annuity contract can direct its insurer to transfer a portion of the contract's cash value directly to another annuity contract (issued by the same insurer or by a different insurer), and such a direct transfer can qualify for tax-free exchange treatment under Code Section 1035 (a "partial exchange"). However, Rev. Rul. 2003-76 also refers to caveats and additional guidance in the companion Notice 2003-51, which discusses cases in which a partial exchange is followed by a surrender, withdrawal or other distribution from either the old contract or the new contract. Notice 2003-51 specifically indicates that the IRS is considering (1) under what circumstances it should treat a partial exchange followed by such a distribution within 24 months as presumptively for "tax avoidance" purposes (e.g., to avoid the income-out-first rules on amounts received under Code Section 72) and (2) what circumstances it should treat as rebutting such a presumption (e.g., death, disability, reaching age 59 1/2, divorce or loss of employment). Notice 2003-51 was superseded by Revenue Procedure 2008-24, effective for partial exchanges completed on or after June 30, 2008. Partial exchanges completed on or after this date will qualify for tax free treatment if: (1) no amounts are withdrawn from, or received in surrender of, either of the contracts involved in the exchange during the 12 months beginning on the date on which amounts are treated as received as premiums or other consideration paid for the contract received in the exchange (the date of transfer); or (2) the taxpayer demonstrates that certain conditions (e.g., death, disability, reaching age 50 1/2, divorce, loss of employment) occurred between the date of transfer and the date of the withdrawal or surrender. A transfer within the scope of the revenue procedure, but not treated as a tax-free exchange, will be treated as a taxable distribution, followed by a payment for a second contract. Two annuity contracts that are the subject of a tax-free exchange pursuant to the revenue procedure will not be aggregated, even if issued by the same insurance company. We advise you to consult with a qualified tax adviser as to potential tax consequences before attempting any partial exchange. 3. DIVERSIFICATION REQUIREMENTS. The Code requires that investments supporting your Contract be adequately diversified. Code Section 817(h) provides that a variable annuity contract will not be treated as an annuity contract for any period during which the investments made by the separate account or Fund are not adequately diversified. If a contract is not treated as an annuity contract, the contract owner will be subject to income tax on annual increases in cash value. The Treasury Department's diversification regulations under Code Section 817(h) require, among other things, that: - no more than 55% of the value of the total assets of the segregated asset account underlying a variable contract is represented by any one investment, - no more than 70% is represented by any two investments, - no more than 80% is represented by any three investments and - no more than 90% is represented by any four investments. In determining whether the diversification standards are met, all securities of the same issuer, all interests in the same real property project, and all interests in the same commodity are each treated as a single investment. In the case of government securities, each government agency or instrumentality is treated as a separate issuer. A separate account must be in compliance with the diversification standards on the last day of each calendar quarter or within 30 days after the quarter ends. If an insurance company inadvertently fails to meet the diversification requirements, the company may still comply within a reasonable period and avoid the taxation of contract income on an ongoing basis. However, either the insurer or the contract owner must agree to pay the tax due for the period during which the diversification requirements were not met. Fund shares may also be sold to tax-qualified plans pursuant to an exemptive order and applicable tax laws. If Fund shares are sold to non-qualified plans, or to tax-qualified plans that later lose their tax-qualified status, the affected Funds may fail the diversification requirements of Code Section 817(h), which could have adverse tax consequences for Contract Owners with premiums allocated to affected Funds. In order to prevent a Fund diversification failure from such an occurrence, Hartford obtained a private letter ruling ("PLR") from the IRS. As long as the Funds comply with certain terms and conditions contained in the PLR, Fund diversification will not be prevented if purported tax-qualified plans invest in the Funds. Hartford and the Funds will monitor the Funds' compliance with the terms and conditions contained in the PLR. 4. TAX OWNERSHIP OF THE ASSETS IN THE SEPARATE ACCOUNT. In order for a variable annuity contract to qualify for tax income deferral, assets in the separate account supporting the contract must be considered to be owned by the insurance company, and not by the contract owner, for tax purposes. The IRS has stated in published rulings that a variable contract owner will be considered the "owner" of separate account assets for income tax purposes if the contract owner possesses sufficient incidents of ownership in those assets, such as the ability to exercise investment control over the assets. In circumstances where the variable contract owner is treated as the "tax owner" of certain separate account assets, income and gain from such assets would be includable in the variable contract owner's gross income. The Treasury Department indicated in 1986 that, in regulations or revenue rulings under Code Section 817(d) (relating to the definition of a variable contract), it 66 ------------------------------------------------------------------------------- would provide guidance on the extent to which contract owners may direct their investments to particular Sub-Accounts without being treated as tax owners of the underlying shares. Although no such regulations have been issued to date, the IRS has issued a number of rulings that indicate that this issue remains subject to a facts and circumstances test for both variable annuity and life insurance contracts. For instance, the IRS in Rev. Rul. 2003-92, amplified by Rev. Rul. 2007-7, reiterated its position in prior rulings that, where shares in a fund offered in an insurer's separate account are not available exclusively through the purchase of a variable insurance contract (e.g., where such shares can be purchased directly by the general public or others without going through such a variable contract), such "public availability" means that such shares should be treated as owned directly by the contract owner (and not by the insurer) for tax purposes, as if such contract owner had chosen instead to purchase such shares directly (without going through the variable contract). None of the shares or other interests in the fund choices offered in our Separate Account for your Contract are available for purchase except through an insurer's variable contracts or by other permitted entities. The IRS in Rev. Rul. 2003-91 also indicated that an insurer could provide as many as 20 fund choices for its variable contract owners (each with a general investment strategy, e.g., a small company stock fund or a special industry fund) under certain circumstances, without causing such a contract owner to be treated as the tax owner of any of the Fund assets. The ruling does not specify the number of fund options, if any, that might prevent a variable contract owner from receiving favorable tax treatment. As a result, we believe that any owner of a Contract also should receive the same favorable tax treatment. However, there is necessarily some uncertainty here as long as the IRS continues to use a facts and circumstances test for investor control and other tax ownership issues. Therefore, we reserve the right to modify the Contract as necessary to prevent you from being treated as the tax owner of any underlying assets. D. FEDERAL INCOME TAX WITHHOLDING The portion of an amount received under a Contract that is taxable gross income to the Payee is also subject to federal income tax withholding, pursuant to Code Section 3405, which requires the following: 1. Non-Periodic Distributions. The portion of a non-periodic distribution that is includable in gross income is subject to federal income tax withholding unless an individual elects not to have such tax withheld ("election out"). We will provide such an "election out" form at the time such a distribution is requested. If the necessary "election out" form is not submitted to us in a timely manner, generally we are required to withhold 10 percent of the includable amount of distribution and remit it to the IRS. 2. Periodic Distributions (payable over a period greater than one year). The portion of a periodic distribution that is includable in gross income is generally subject to federal income tax withholding as if the Payee were a married individual claiming 3 exemptions, unless the individual elects otherwise. An individual generally may elect out of such withholding, or elect to have income tax withheld at a different rate, by providing a completed election form. We will provide such an election form at the time such a distribution is requested. If the necessary "election out" forms are not submitted to us in a timely manner, we are required to withhold tax as if the recipient were married claiming 3 exemptions, and remit this amount to the IRS. Generally no "election out" is permitted if the distribution is delivered outside the United States and any possession of the United States. Regardless of any "election out" (or any amount of tax actually withheld) on an amount received from a Contract, the Payee is generally liable for any failure to pay the full amount of tax due on the includable portion of such amount received. A Payee also may be required to pay penalties under estimated income tax rules, if the withholding and estimated tax payments are insufficient to satisfy the Payee's total tax liability. E. GENERAL PROVISIONS AFFECTING QUALIFIED RETIREMENT PLANS The Contract may be used for a number of qualified retirement plans. If the Contract is being purchased with respect to some form of qualified retirement plan, please refer to Section 10 for information relative to the types of plans for which it may be used and the general explanation of the tax features of such plans. F. ANNUITY PURCHASES BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to U.S. federal income tax and mandatory withholding on U.S. source taxable annuity distributions at a 30% rate, unless a lower treaty rate applies and any required tax forms are submitted to us. If withholding applies, we are required to withhold tax at the 30% rate, or a lower treaty rate if applicable, and remit it to the IRS. In addition, purchasers may be subject to state premium tax, other state and/or municipal taxes, and taxes that may be imposed by the purchaser's country of citizenship or residence. G. ESTATE, GIFT AND GENERATION-SKIPPING TAX AND RELATED TAX CONSIDERATIONS Any amount payable upon a Contract Owner's death, whether before or after the Annuity Commencement Date, is generally includable in the Contract Owner's estate for federal estate tax purposes. Similarly, prior to the Contract Owner's death, the 67 ------------------------------------------------------------------------------- payment of any amount from the Contract, or the transfer of any interest in the Contract, to a beneficiary or other person for less than adequate consideration may have federal gift tax consequences. In addition, any transfer to, or designation of, a non-Spouse beneficiary who either is (1) 37 1/2 or more years younger than a Contract Owner or (2) a grandchild (or more remote further descendent) of a Contract Owner may have federal generation-skipping-transfer ("GST") tax consequences under Code Section 2601. Regulations under Code Section 2662 may require us to deduct any such GST tax from your Contract, or from any applicable payment, and pay it directly to the IRS. However, any federal estate, gift or GST tax payment with respect to a Contract could produce an offsetting income tax deduction for a beneficiary or transferee under Code Section 691(c) (partially offsetting such federal estate or GST tax) or a basis increase for a beneficiary or transferee under Code Section 691(c) or Section 1015(d). In addition, as indicated above in "Distributions Prior to the Annuity Commencement Date," the transfer of a Contract for less than adequate consideration during the Contract Owner's lifetime generally is treated as producing an amount received by such Contract Owner that is subject to both income tax and the 10% penalty tax. To the extent that such an amount deemed received causes an amount to be includable currently in such Contract Owner's gross income, this same income amount could produce a corresponding increase in such Contract Owner's tax basis for such Contract that is carried over to the transferee's tax basis for such Contract under Code Section 72(e)(4)(C)(iii) and Section 1015. 10. INFORMATION REGARDING TAX-QUALIFIED RETIREMENT PLANS This summary does not attempt to provide more than general information about the federal income tax rules associated with use of a Contract by a tax-qualified retirement plan. State income tax rules applicable to tax-qualified retirement plans often differ from federal income tax rules, and this summary does not describe any of these differences. Because of the complexity of the tax rules, owners, participants and beneficiaries are encouraged to consult their own tax advisors as to specific tax consequences. The Contracts are available to a variety of tax-qualified retirement plans and arrangements (a "Qualified Plan" or "Plan"). Tax restrictions and consequences for Contracts or accounts under each type of Qualified Plan differ from each other and from those for Non-Qualified Contracts. In addition, individual Qualified Plans may have terms and conditions that impose additional rules. Therefore, no attempt is made herein to provide more than general information about the use of the Contract with the various types of Qualified Plans. Participants under such Qualified Plans, as well as Contract Owners, annuitants and beneficiaries, are cautioned that the rights of any person to any benefits under such Qualified Plans may be subject to terms and conditions of the Plans themselves or limited by applicable law, regardless of the terms and conditions of the Contract issued in connection therewith. Qualified Plans generally provide for the tax deferral of income regardless of whether the Qualified Plan invests in an annuity or other investment. You should consider if the Contract is a suitable investment if you are investing through a Qualified Plan. THE FOLLOWING IS ONLY A GENERAL DISCUSSION ABOUT TYPES OF QUALIFIED PLANS FOR WHICH THE CONTRACTS MAY BE AVAILABLE. WE ARE NOT THE PLAN ADMINISTRATOR FOR ANY QUALIFIED PLAN. THE PLAN ADMINISTRATOR OR CUSTODIAN, WHICHEVER IS APPLICABLE, (BUT NOT US) IS RESPONSIBLE FOR ALL PLAN ADMINISTRATIVE DUTIES INCLUDING, BUT NOT LIMITED TO, NOTIFICATION OF DISTRIBUTION OPTIONS, DISBURSEMENT OF PLAN BENEFITS, HANDLING ANY PROCESSING AND ADMINISTRATION OF QUALIFIED PLAN LOANS, COMPLIANCE REGULATORY REQUIREMENTS AND FEDERAL AND STATE TAX REPORTING OF INCOME/DISTRIBUTIONS FROM THE PLAN TO PLAN PARTICIPANTS AND, IF APPLICABLE, BENEFICIARIES OF PLAN PARTICIPANTS AND IRA CONTRIBUTIONS FROM PLAN PARTICIPANTS. OUR ADMINISTRATIVE DUTIES ARE LIMITED TO ADMINISTRATION OF THE CONTRACT AND ANY DISBURSEMENTS OF ANY CONTRACT BENEFITS TO THE OWNER, ANNUITANT OR BENEFICIARY OF THE CONTRACT, AS APPLICABLE. OUR TAX REPORTING RESPONSIBILITY IS LIMITED TO FEDERAL AND STATE TAX REPORTING OF INCOME/DISTRIBUTIONS TO THE APPLICABLE PAYEE AND IRA CONTRIBUTIONS FROM THE OWNER OF A CONTRACT, AS RECORDED ON OUR BOOKS AND RECORDS. IF YOU ARE PURCHASING A QUALIFIED CONTRACT, YOU SHOULD CONSULT WITH YOUR PLAN ADMINISTRATOR AND/OR A QUALIFIED TAX ADVISER. YOU ALSO SHOULD CONSULT WITH A QUALIFIED TAX ADVISER AND/OR PLAN ADMINISTRATOR BEFORE YOU WITHDRAW ANY PORTION OF YOUR CONTRACT VALUE. The tax rules applicable to Qualified Contracts and Qualified Plans, including restrictions on contributions and distributions, taxation of distributions and tax penalties, vary according to the type of Qualified Plan, as well as the terms and conditions of the Plan itself. Various tax penalties may apply to contributions in excess of specified limits, plan distributions (including loans) that do not comply with specified limits, and certain other transactions relating to such Plans. Accordingly, this summary provides only general information about the tax rules associated with use of a Qualified Contract in such a Qualified Plan. In addition, some Qualified Plans are subject to distribution and other requirements that are not incorporated into our administrative procedures. Owners, participants, and beneficiaries are responsible for determining that contributions, distributions and other transactions comply with applicable tax (and non-tax) law. Because of the complexity of these rules, Owners, participants and beneficiaries are advised to consult with a qualified tax adviser as to specific tax consequences. We do not currently offer the Contracts in connection with all of the types of Qualified Plans discussed below, and may not offer the Contracts for all types of Qualified Plans in the future. 1. INDIVIDUAL RETIREMENT ANNUITIES ("IRAS"). In addition to "traditional" IRAs governed by Code Sections 408(a) and (b) ("Traditional IRAs"), there are Roth IRAs governed by Code Section 408A, SEP IRAs governed by Code Section 408(k), and SIMPLE IRAs governed by Code Section 408(p). Also, Qualified Plans under Code Section 401, 403(b) or 457(b) that include after-tax employee contributions may be treated as deemed IRAs 68 ------------------------------------------------------------------------------- subject to the same rules and limitations as Traditional IRAs. Contributions to each of these types of IRAs are subject to differing limitations. The following is a very general description of each type of IRA for which a Contract is available. a. TRADITIONAL IRAS Traditional IRAs are subject to limits on the amounts that may be contributed each year, the persons who may be eligible, and the time when minimum distributions must begin. Depending upon the circumstances of the individual, contributions to a Traditional IRA may be made on a deductible or non-deductible basis. Failure to make required minimum distributions ("RMDs") when the Owner reaches age 70 1/2 or dies, as described below, may result in imposition of a 50% penalty tax on any excess of the RMD amount over the amount actually distributed. In addition, any amount received before the Owner reaches age 59 1/2 or dies is subject to a 10% penalty tax on premature distributions, unless a special exception applies, as described below. Under Code Section 408(e), an IRA may not be used for borrowing (or as security for any loan) or in certain prohibited transactions, and such a transaction could lead to the complete tax disqualification of an IRA. You (or your surviving spouse if you die) may rollover funds tax-free from certain existing Qualified Plans (such as proceeds from existing insurance contracts, annuity contracts or securities) into a Traditional IRA under certain circumstances, as indicated below. However, mandatory tax withholding of 20% may apply to any eligible rollover distribution from certain types of Qualified Plans if the distribution is not transferred directly to the Traditional IRA. In addition, under Code Section 402(c)(11) a non-spouse "designated beneficiary" of a deceased Plan participant may make a tax-free "direct rollover" (in the form of a direct transfer between Plan fiduciaries, as described below in "Rollover Distributions") from certain Qualified Plans to a Traditional IRA for such beneficiary, but such Traditional IRA must be designated and treated as an "inherited IRA" that remains subject to applicable RMD rules (as if such IRA had been inherited from the deceased Plan participant). In addition, such a Plan is not required to permit such a rollover. IRAs generally may not invest in life insurance contracts. However, an annuity contract that is used as an IRA may provide a death benefit that equals the greater of the premiums paid or the contract's cash value. The Contract offers an enhanced death benefit that may exceed the greater of the Contract Value or total premium payments. The tax rules are unclear as to what extent an IRA can provide a death benefit that exceeds the greater of the IRA's cash value or the sum of the premiums paid and other contributions into the IRA. Please note that the IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as an IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. b. SEP IRAS Code Section 408(k) provides for a Traditional IRA in the form of an employer-sponsored defined contribution plan known as a Simplified Employee Pension ("SEP") or a SEP IRA. A SEP IRA can have employer, employee and salary reduction contributions, as well as higher overall contribution limits than a Traditional IRA, but a SEP is also subject to special tax-qualification requirements (e.g., on participation, nondiscrimination and withdrawals) and sanctions. Otherwise, a SEP IRA is generally subject to the same tax rules as for a Traditional IRA, which are described above. Please note that the IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as an IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. c. SIMPLE IRAS The Savings Incentive Match Plan for Employees of small employers ("SIMPLE Plan") is a form of an employer-sponsored Qualified Plan that provides IRA benefits for the participating employees ("SIMPLE IRAs"). Depending upon the SIMPLE Plan, employers may make plan contributions into a SIMPLE IRA established by each eligible participant. Like a Traditional IRA, a SIMPLE IRA is subject to the 50% penalty tax for failure to make a full RMD, and to the 10% penalty tax on premature distributions, as described below. In addition, the 10% penalty tax is increased to 25% for amounts received during the 2-year period beginning on the date you first participated in a qualified salary reduction arrangement pursuant to a SIMPLE Plan maintained by your employer under Code Section 408(p)(2). Contributions to a SIMPLE IRA may be either salary deferral contributions or employer contributions, and these are subject to different tax limits from those for a Traditional IRA. Please note that the SIMPLE IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as an SIMPLE IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. A SIMPLE Plan may designate a single financial institution (a Designated Financial Institution) as the initial trustee, custodian or issuer (in the case of an annuity contract) of the SIMPLE IRA set up for each eligible participant. However, any such Plan also must allow each eligible participant to have the balance in his SIMPLE IRA held by the Designated Financial Institution transferred without cost or penalty to a SIMPLE IRA maintained by a different financial institution. Absent a Designated Financial Institution, each eligible participant must select the financial institution to hold his SIMPLE IRA, and notify his employer of this selection. If we do not serve as the Designated Financial Institution for your employer's SIMPLE Plan, for you to use one of our Contracts as a SIMPLE IRA, you need to provide your employer with appropriate notification of such a selection under the SIMPLE Plan. If you 69 ------------------------------------------------------------------------------- choose, you may arrange for a qualifying transfer of any amounts currently held in another SIMPLE IRA for your benefit to your SIMPLE IRA with us. d. ROTH IRAS Code Section 408A permits eligible individuals to establish a Roth IRA. Contributions to a Roth IRA are not deductible, but withdrawals of amounts contributed and the earnings thereon that meet certain requirements are not subject to federal income tax. In general, Roth IRAs are subject to limitations on the amounts that may be contributed by the persons who may be eligible to contribute, certain Traditional IRA restrictions, and certain RMD rules on the death of the Contract Owner. Unlike a Traditional IRA, Roth IRAs are not subject to RMD rules during the Contract Owner's lifetime. Generally, however, upon the Owner's death the amount remaining in a Roth IRA must be distributed by the end of the fifth year after such death or distributed over the life expectancy of a designated beneficiary. The Owner of a Traditional IRA may convert a Traditional IRA into a Roth IRA under certain circumstances. The conversion of a Traditional IRA to a Roth IRA will subject the fair market value of the converted Traditional IRA to federal income tax. In addition to the amount held in the converted Traditional IRA, the fair market value may include the value of additional benefits provided by the annuity contract on the date of conversion, based on reasonable actuarial assumptions. Tax-free rollovers from a Roth IRA can be made only to another Roth IRA under limited circumstances, as indicated below. After 2007, distributions from eligible Qualified Plans can be "rolled over" directly (subject to tax) into a Roth IRA under certain circumstances. Anyone considering the purchase of a Qualified Contract as a Roth IRA or a "conversion" Roth IRA should consult with a qualified tax adviser. Please note that the Roth IRA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as a Roth IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. 2. QUALIFIED PENSION OR PROFIT-SHARING PLAN OR SECTION 401(k) PLAN Provisions of the Code permit eligible employers to establish a tax-qualified pension or profit sharing plan (described in Section 401(a), and Section 401(k) if applicable, and exempt from taxation under Section 501(a)). Such a Plan is subject to limitations on the amounts that may be contributed, the persons who may be eligible to participate, the amounts of "incidental" death benefits, and the time when RMDs must commence. In addition, a Plan's provision of incidental benefits may result in currently taxable income to the participant for some or all of such benefits. Amounts may be rolled over tax-free from a Qualified Plan to another Qualified Plan under certain circumstances, as described below. Anyone considering the use of a Qualified Contract in connection with such a Qualified Plan should seek competent tax and other legal advice. In particular, please note that these tax rules provide for limits on death benefits provided by a Qualified Plan (to keep such death benefits "incidental" to qualified retirement benefits), and a Qualified Plan (or a Qualified Contract) often contains provisions that effectively limit such death benefits to preserve the tax qualification of the Qualified Plan (or Qualified Contract). In addition, various tax-qualification rules for Qualified Plans specifically limit increases in benefits once RMDs begin, and Qualified Contracts are subject to such limits. As a result, the amounts of certain benefits that can be provided by any option under a Qualified Contract may be limited by the provisions of the Qualified Contract or governing Qualified Plan that are designed to preserve its tax qualification. 3. TAX SHELTERED ANNUITY UNDER SECTION 403(B) ("TSA") Code Section 403(b) permits public school employees and employees of certain types of charitable, educational and scientific organizations described in Code Section 501(c)(3) to purchase a "tax-sheltered annuity" ("TSA") contract and, subject to certain limitations, exclude employer contributions to a TSA from such an employee's gross income. Generally, total contributions may not exceed the lesser of an annual dollar limit (e.g., $46,000 in 2008) or 100% of the employee's "includable compensation" for the most recent full year of service, subject to other adjustments. The general annual elective deferral limit for a TSA participant after 2005 is $15,000. In addition, for years after 2006 this $15,000 limit will be indexed for cost-of-living adjustments under Code Section 402(g)(4) at $500 increments. For any such participant age 50 or older, the contribution limit after 2005 generally is increased by an additional $5,000 under Code Section 414(v). For years after 2006 this "over-50 catch-up" $5,000 limit also will be indexed for cost-of-living adjustments under Code Section 414(v)(2)(C) at $500 increments. Special provisions may allow certain employees different overall limitations. A TSA is subject to a prohibition against distributions from the TSA attributable to contributions made pursuant to a salary reduction agreement, unless such distribution is made: a. after the employee reaches age 59 1/2; b. upon the employee's separation from service; c. upon the employee's death or disability; d. in the case of hardship (and in the case of hardship, any income attributable to such contributions may not be distributed); or e. as a qualified reservist distribution upon certain calls to active duty. 70 ------------------------------------------------------------------------------- Please note that the TSA rider for the Contract has provisions that are designed to maintain the Contract's tax qualification as a TSA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract's tax qualification. In particular, please note that tax rules provide for limits on death benefits provided by a Qualified Plan (to keep such death benefits "incidental" to qualified retirement benefits), and a Qualified Plan (or a Qualified Contract) often contains provisions that effectively limit such death benefits to preserve the tax qualification of the Qualified Plan (or Qualified Contract). In addition, various tax-qualification rules for Qualified Plans specifically limit increases in benefits once RMDs begin, and Qualified Contracts are subject to such limits. As a result, the amounts of certain benefits that can be provided by any option under a Qualified Contract may be limited by the provisions of the Qualified Contract or governing Qualified Plan that are designed to preserve its tax qualification. In addition, a life insurance contract issued after September 23, 2007 is generally ineligible to qualify as a TSA under Reg. Section 1.403(b)-8(c)(2). Amounts may be rolled over tax-free from a TSA to another TSA or Qualified Plan (or from a Qualified Plan to a TSA) under certain circumstances, as described below. However, effective for TSA contract exchanges after September 24, 2007, Reg. ' 1.403(b)-10(b) allows a TSA contract of a participant or beneficiary under a TSA Plan to be exchanged tax-free for another eligible TSA contract under that same TSA Plan, but only if all of the following conditions are satisfied: (1) such TSA Plan allows such an exchange, (2) the participant or beneficiary has an accumulated benefit after such exchange that is no less than such participant's or beneficiary's accumulated benefit immediately before such exchange (taking into account such participant's or beneficiary's accumulated benefit under both TSA contracts immediately before such exchange), (3) the second TSA contract is subject to distribution restrictions with respect to the participant that are no less stringent than those imposed on the TSA contract being exchanged, and (4) the employer for such TSA Plan enters into an agreement with the issuer of the second TSA contract under which such issuer and employer will provide each other from time to time with certain information necessary for such second TSA contract (or any other TSA contract that has contributions from such employer) to satisfy the TSA requirements under Code Section 403(b) and other federal tax requirements (e.g., plan loan conditions under Code Section 72(p) to avoid deemed distributions). Such necessary information could include information about the participant's employment, information about other Qualified Plans of such employer, and whether a severance has occurred, or hardship rules are satisfied, for purposes of the TSA distribution restrictions. Consequently, you are advised to consult with a qualified tax advisor before attempting any such TSA exchange, particularly because it requires an agreement between the employer and issuer to provide each other with certain information. We are no longer accepting any incoming exchange request, or new contract application, for any individual TSA contract. 4. DEFERRED COMPENSATION PLANS UNDER SECTION 457 ("SECTION 457 PLANS") Certain governmental employers, or tax-exempt employers other than a governmental entity, can establish a Deferred Compensation Plan under Code Section 457. For these purposes, a "governmental employer" is a State, a political subdivision of a State, or an agency or an instrumentality of a State or political subdivision of a State. A Deferred Compensation Plan that meets the requirements of Code Section 457(b) is called an "Eligible Deferred Compensation Plan" or "Section 457(b) Plan." Code Section 457(b) limits the amount of contributions that can be made to an Eligible Deferred Compensation Plan on behalf of a participant. Generally, the limitation on contributions is the lesser of (1) 100% of a participant's includible compensation or (2) the applicable dollar amount, equal to $15,000 for 2006 and thereafter. The $15,000 limit will be indexed for cost-of-living adjustments at $500 increments. The Plan may provide for additional "catch-up" contributions during the three taxable years ending before the year in which the participant attains normal retirement age. In addition, with an eligible Deferred Compensation Plan for a governmental employer, the contribution limitation may be increased under Code Section 457(e)(18) to allow certain "catch-up" contributions for individuals who have attained age 50, but only one "catch-up" may be used in a particular year. In addition, under Code Section 457(d) a Section 457(b) Plan may not make amounts available for distribution to participants or beneficiaries before (1) the calendar year in which the participant attains age 70 1/2, (2) the participant has a severance from employment (including death), or (3) the participant is faced with an unforeseeable emergency (as determined in accordance with regulations). Under Code Section 457(g) all of the assets and income of an Eligible Deferred Compensation Plan for a governmental employer must be held in trust for the exclusive benefit of participants and their beneficiaries. For this purpose, annuity contracts and custodial accounts described in Code Section 401(f) are treated as trusts. This trust requirement does not apply to amounts under an Eligible Deferred Compensation Plan of a tax-exempt (non-governmental) employer. In addition, this trust requirement does not apply to amounts held under a Deferred Compensation Plan of a governmental employer that is not a Section 457(b) Plan. However, where the trust requirement does not apply, amounts held under a Section 457 Plan must remain subject to the claims of the employer's general creditors under Code Section 457(b)(6). 5. TAXATION OF AMOUNTS RECEIVED FROM QUALIFIED PLANS Except under certain circumstances in the case of Roth IRAs, amounts received from Qualified Contracts or Plans generally are taxed as ordinary income under Code Section 72, to the extent that they are not treated as a tax-free recovery of after-tax contributions or other "investment in the contract." For annuity payments and other amounts received after the Annuity Commencement Date from a Qualified Contract or Plan, the tax rules for determining what portion of each amount received represents a tax-free recovery of "investment in the contract" are generally the same as for Non-Qualified Contracts, as described above. 71 ------------------------------------------------------------------------------- For non-periodic amounts from certain Qualified Contracts or Plans, Code Section 72(e)(8) provides special rules that generally treat a portion of each amount received as a tax-free recovery of the "investment in the contract," based on the ratio of the "investment in the contract" over the Contract Value at the time of distribution. However, in determining such a ratio, certain aggregation rules may apply and may vary, depending on the type of Qualified Contract or Plan. For instance, all Traditional IRAs owned by the same individual are generally aggregated for these purposes, but such an aggregation does not include any IRA inherited by such individual or any Roth IRA owned by such individual. In addition, penalty taxes, mandatory tax withholding or rollover rules may apply to amounts received from a Qualified Contract or Plan, as indicated below, and certain exclusions may apply to certain distributions (e.g., distributions from an eligible Government Plan to pay qualified health insurance premiums of an eligible retired public safety officer). Accordingly, you are advised to consult with a qualified tax adviser before taking or receiving any amount (including a loan) from a Qualified Contract or Plan. 6. PENALTY TAXES FOR QUALIFIED PLANS Unlike Non-Qualified Contracts, Qualified Contracts are subject to federal penalty taxes not just on premature distributions, but also on excess contributions and failures to make required minimum distributions ("RMDs"). Penalty taxes on excess contributions can vary by type of Qualified Plan and which person made the excess contribution (e.g., employer or an employee). The penalty taxes on premature distributions and failures to make timely RMDs are more uniform, and are described in more detail below. a. PENALTY TAXES ON PREMATURE DISTRIBUTIONS Code Section 72(t) imposes a penalty income tax equal to 10% of the taxable portion of a distribution from certain types of Qualified Plans that is made before the employee reaches age 59 1/2. However, this 10% penalty tax does not apply to a distribution that is either: (i) made to a beneficiary (or to the employee's estate) on or after the employee's death; (ii) attributable to the employee's becoming disabled under Code Section 72(m)(7); (iii) part of a series of substantially equal periodic payments (not less frequently than annually -- "SEPPs") made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of such employee and a designated beneficiary ("SEPP Exception"), and for certain Qualified Plans (other than IRAs) such a series must begin after the employee separates from service; (iv) (except for IRAs) made to an employee after separation from service after reaching age 55 (or made after age 50 in the case of a qualified public safety employee separated from certain government plans); (v) (except for IRAs) made to an alternate payee pursuant to a qualified domestic relations order under Code Section 414(p) (a similar exception for IRAs in Code Section 408(d)(6) covers certain transfers for the benefit of a spouse or ex-spouse); (vi) not greater than the amount allowable as a deduction to the employee for eligible medical expenses during the taxable year; or (vii) certain qualified reservist distributions under Code Section 72(t)(2)(G) upon a call to active duty. In addition, the 10% penalty tax does not apply to a distribution from an IRA that is either: (viii) made after separation from employment to an unemployed IRA owner for health insurance premiums, if certain conditions are met; (ix) not in excess of the amount of certain qualifying higher education expenses, as defined by Code Section 72(t)(7); or (x) for a qualified first-time home buyer and meets the requirements of Code Section 72(t)(8). If the taxpayer avoids this 10% penalty tax by qualifying for the SEPP Exception and later such series of payments is modified (other than by death or disability), the 10% penalty tax will be applied retroactively to all the prior periodic payments (i.e., penalty tax plus interest thereon), unless such modification is made after both (a) the employee has reached age 59 1/2 and (b) 5 years have elapsed since the first of these periodic payments. For any premature distribution from a SIMPLE IRA during the first 2 years that an individual participates in a salary reduction arrangement maintained by that individual's employer under a SIMPLE Plan, the 10% penalty tax rate is increased to 25%. b. RMDS AND 50% PENALTY TAX If the amount distributed from a Qualified Contract or Plan is less than the amount of the required minimum distribution ("RMD") for the year, the participant is subject to a 50% penalty tax on the amount that has not been timely distributed. An individual's interest in a Qualified Plan generally must be distributed, or begin to be distributed, not later than the Required Beginning Date. Generally, the Required Beginning Date is April 1 of the calendar year following the later of -- (i) the calendar year in which the individual attains age 70 1/2, or 72 ------------------------------------------------------------------------------- (ii) (except in the case of an IRA or a 5% owner, as defined in the Code) the calendar year in which a participant retires from service with the employer sponsoring a Qualified Plan that allows such a later Required Beginning Date. The entire interest of the individual must be distributed beginning no later than the Required Beginning Date over -- (a) the life of the individual or the lives of the individual and a designated beneficiary (as specified in the Code), or (b) over a period not extending beyond the life expectancy of the individual or the joint life expectancy of the individual and a designated beneficiary. If an individual dies before reaching the Required Beginning Date, the individual's entire interest generally must be distributed within 5 years after the individual's death. However, this RMD rule will be deemed satisfied if distributions begin before the close of the calendar year following the individual's death to a designated beneficiary and distribution is over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary). If such beneficiary is the individual's surviving spouse, distributions may be delayed until the deceased individual would have attained age 70 1/2. If an individual dies after RMDs have begun for such individual, any remainder of the individual's interest generally must be distributed at least as rapidly as under the method of distribution in effect at the time of the individual's death. The RMD rules that apply while the Contract Owner is alive do not apply with respect to Roth IRAs. The RMD rules applicable after the death of the Owner apply to all Qualified Plans, including Roth IRAs. In addition, if the Owner of a Traditional or Roth IRA dies and the Owner's surviving spouse is the sole designated beneficiary, this surviving spouse may elect to treat the Traditional or Roth IRA as his or her own. The RMD amount for each year is determined generally by dividing the account balance by the applicable life expectancy. This account balance is generally based upon the account value as of the close of business on the last day of the previous calendar year. RMD incidental benefit rules also may require a larger annual RMD amount, particularly when distributions are made over the joint lives of the Owner and an individual other than his or her spouse. RMDs also can be made in the form of annuity payments that satisfy the rules set forth in Regulations under the Code relating to RMDs. In addition, in computing any RMD amount based on a contract's account value, such account value must include the actuarial value of certain additional benefits provided by the contract. As a result, electing an optional benefit under a Qualified Contract may require the RMD amount for such Qualified Contract to be increased each year, and expose such additional RMD amount to the 50% penalty tax for RMDs if such additional RMD amount is not timely distributed. 7. TAX WITHHOLDING FOR QUALIFIED PLANS Distributions from a Qualified Contract or Qualified Plan generally are subject to federal income tax withholding requirements. These federal income tax withholding requirements, including any "elections out" and the rate at which withholding applies, generally are the same as for periodic and non-periodic distributions from a Non-Qualified Contract, as described above, except where the distribution is an "eligible rollover distribution" (described below in "ROLLOVER DISTRIBUTIONS"). In the latter case, tax withholding is mandatory at a rate of 20% of the taxable portion of the "eligible rollover distribution," to the extent it is not directly rolled over to an IRA or other Eligible Retirement Plan (described below in "ROLLOVER DISTRIBUTIONS"). Payees cannot elect out of this mandatory 20% withholding in the case of such an "eligible rollover distribution." Also, special withholding rules apply with respect to distributions from non-governmental Section 457(b) Plans, and to distributions made to individuals who are neither citizens nor resident aliens of the United States. Regardless of any "election out" (or any actual amount of tax actually withheld) on an amount received from a Qualified Contract or Plan, the payee is generally liable for any failure to pay the full amount of tax due on the includable portion of such amount received. A payee also may be required to pay penalties under estimated income tax rules, if the withholding and estimated tax payments are insufficient to satisfy the payee's total tax liability. 8. ROLLOVER DISTRIBUTIONS The current tax rules and limits for tax-free rollovers and transfers between Qualified Plans vary according to (1) the type of transferor Plan and transferee Plan, (2) whether the amount involved is transferred directly between Plan fiduciaries (a "direct transfer" or a "direct rollover") or is distributed first to a participant or beneficiary who then transfers that amount back into another eligible Plan within 60 days (a "60-day rollover"), and (3) whether the distribution is made to a participant, spouse or other beneficiary. Accordingly, we advise you to consult with a qualified tax adviser before receiving any amount from a Qualified Contract or Plan or attempting some form of rollover or transfer with a Qualified Contract or Plan. For instance, generally any amount can be transferred directly from one type of Qualified Plan (e.g., a TSA) to the same type of Plan for the benefit of the same individual, without limit (or federal income tax), if the transferee Plan is subject to the same kinds of restrictions as the transferor Plan (e.g., a TSA that is subject to the same kinds of salary reduction restrictions) and certain other conditions to maintain the applicable tax qualification are satisfied (e.g., as described above for TSA exchanges after September 24, 73 ------------------------------------------------------------------------------- 2007). Such a "direct transfer" between the same kinds of Plan is generally not treated as any form of "distribution" out of such a Plan for federal income tax purposes. By contrast, an amount distributed from one type of Plan (e.g., a TSA) into a different type of Plan (e.g., a Traditional IRA) generally is treated as a "distribution" out of the first Plan for federal income tax purposes, and therefore to avoid being subject to such tax, such a distribution must qualify either as a "direct rollover" (made directly to another Plan fiduciary) or as a "60-day rollover." The tax restrictions and other rules for a "direct rollover" and a "60-day rollover" are similar in many ways, but if any "eligible rollover distribution" made from certain types of Qualified Plan is not transferred directly to another Plan fiduciary by a "direct rollover," then it is subject to mandatory 20% withholding, even if it is later contributed to that same Plan in a "60-day rollover" by the recipient. If any amount less than 100% of such a distribution (e.g., the net amount after the 20% withholding) is transferred to another Plan in a "60-day rollover", the missing amount that is not rolled over remains subject to normal income tax plus any applicable penalty tax. Under Code Sections 402(f)(2)(A) and 3405(c)(3) an "eligible rollover distribution" (which is both eligible for rollover treatment and subject to 20% mandatory withholding absent a "direct rollover") is generally any distribution to an employee of any portion (or all) of the balance to the employee's credit in any of the following types of "Eligible Retirement Plan": (1) a Qualified Plan under Code Section 401(a) ("Qualified 401(a) Plan"), (2) a qualified annuity plan under Code Section 403(a) ("Qualified Annuity Plan"), (3) a TSA under Code Section 403(b), or (4) a governmental Section 457(b) Plan. However, an "eligible rollover distribution" does not include any distribution that is either -- a. an RMD amount; b. one of a series of substantially equal periodic payments (not less frequently than annually) made either (i) for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and a designated beneficiary, or (ii) for a specified period of 10 years or more; or c. any distribution made upon hardship of the employee. Before making an "eligible rollover distribution," a Plan administrator generally is required under Code Section 402(f) to provide the recipient with advance written notice of the "direct rollover" and "60-day rollover" rules and the distribution's exposure to the 20% mandatory withholding if it is not made by "direct rollover." Generally, under Code Sections 402(c), 403(b)(8) and 457 (e)(16), a "direct rollover" or a "60-day rollover" of an "eligible rollover distribution" can be made to a Traditional IRA or to another Eligible Retirement Plan that agrees to accept such a rollover. However, the maximum amount of an "eligible rollover distribution" that can qualify for a tax-free "60-day rollover" is limited to the amount that otherwise would be includable in gross income. By contrast, a "direct rollover" of an "eligible rollover distribution" can include after-tax contributions as well, if the direct rollover is made either to a Traditional IRA or to another form of Eligible Retirement Plan that agrees to account separately for such a rollover, including accounting for such after-tax amounts separately from the otherwise taxable portion of this rollover. Separate accounting also is required for all amounts (taxable or not) that are rolled into a governmental Section 457(b) Plan from either a Qualified Section 401(a) Plan, Qualified Annuity Plan, TSA or IRA. These amounts, when later distributed from the governmental Section 457(b) Plan, are subject to any premature distribution penalty tax applicable to distributions from such a "predecessor" Qualified Plan. Rollover rules for distributions from IRAs under Code Sections 408(d)(3) and 408A(d)(3) also vary according to the type of transferor IRA and type of transferee IRA or other Plan. For instance, generally no tax-free "direct rollover" or "60-day rollover" can be made between a "NonRoth IRA" (Traditional, SEP or SIMPLE IRA) and a Roth IRA, and a transfer from NonRoth IRA to a Roth IRA, or a "conversion" of a NonRoth IRA to a Roth IRA, is subject to special rules. In addition, generally no tax-free "direct rollover" or "60-day rollover" can be made between an "inherited IRA" (NonRoth or Roth) for a beneficiary and an IRA set up by that same individual as the original owner. Generally, any amount other than an RMD distributed from a Traditional or SEP IRA is eligible for a "direct rollover" or a "60-day rollover" to another Traditional IRA for the same individual. Similarly, any amount other than an RMD distributed from a Roth IRA is generally eligible for a "direct rollover" or a "60-day rollover" to another Roth IRA for the same individual. However, in either case such a tax-free 60-day rollover is limited to 1 per year (365-day period); whereas no 1-year limit applies to any such "direct rollover." Similar rules apply to a "direct rollover" or a "60-day rollover" of a distribution from a SIMPLE IRA to another SIMPLE IRA or a Traditional IRA, except that any distribution of employer contributions from a SIMPLE IRA during the initial 2-year period in which the individual participates in the employer's SIMPLE Plan is generally disqualified (and subject to the 25% penalty tax on premature distributions) if it is not rolled into another SIMPLE IRA for that individual. Amounts other than RMDs distributed from a Traditional or SEP IRA (or SIMPLE IRA after the initial 2-year period) also are eligible for a "direct rollover" or a "60-day rollover" to an Eligible Retirement Plan (e.g., a TSA) that accepts such a rollover, but any such rollover is limited to the amount of the distribution that otherwise would be includable in gross income (i.e., after-tax contributions are not eligible). Special rules also apply to transfers or rollovers for the benefit of a spouse (or ex-spouse) or a nonspouse designated beneficiary, Plan distributions of property, and obtaining a waiver of the 60-day limit for a tax-free rollover from the IRS. The Katrina Emergency Tax Relief Act of 2005 (KETRA) allows certain amounts to be recontributed within three years as a rollover contribution to a plan from which a KETRA distribution was taken. 74 ------------------------------------------------------------------------------- TABLE OF CONTENTS TO STATEMENT OF ADDITIONAL INFORMATION GENERAL INFORMATION Safekeeping of Assets Experts Non-Participating Misstatement of Age or Sex Principal Underwriter Additional Payments PERFORMANCE RELATED INFORMATION Total Return for all Sub-Accounts Yield for Sub-Accounts Money Market Sub-Accounts Additional Materials Performance Comparisons ACCUMULATION UNIT VALUES FINANCIAL STATEMENTS
APP I-1 ------------------------------------------------------------------------------- APPENDIX I -- EXAMPLES TABLE OF CONTENTS
PAGE -------------------------------------------------------------------------------- Premium Security Death Benefit APP 1-2 Asset Protection Death Benefit APP 1-4 The Hartford's Principal First APP 1-6 The Hartford's Principal First Preferred APP 1-7 The Hartford's Lifetime Income Builder APP 1-8 The Hartford's Lifetime Income Foundation APP 1-10 The Hartford's Lifetime Income Builder II APP 1-14 The Hartford's Lifetime Income Builder Selects and The Hartford's APP 1-20 Lifetime Income Builder Portfolios MAV Plus APP 1-31
APP I-2 ------------------------------------------------------------------------------- PREMIUM SECURITY DEATH BENEFIT EXAMPLE 1 Assume that: - You purchased your Contract with the Premium Security Death Benefit, because You and Your Annuitant were both no older than age 80 on the issue date, - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a withdrawal of $8,000, - Your Contract Value in your fourth Contract Year immediately before your withdrawal was $109,273, - On the day we receive proof of Death, your Contract Value was $117,403, and your Maximum Anniversary Value was $106,000. CALCULATION OF PREMIUM SECURITY DEATH BENEFIT To calculate the Premium Security Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we receive proof of Death [$117,403], - Total Premium Payments adjusted for any partial Surrenders [$100,000 - $8,000 = $92,000], - The lesser of (a) Your Maximum Anniversary Value [$106,000] and (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$117,403 + 25% x $106,000 = $143,903]; the lesser (a) and (b) is $106,000. The Premium Security Death Benefit is the greatest of these three values, which is $117,403. APP I-3 ------------------------------------------------------------------------------- EXAMPLE 2 Assume that: - You purchased your Contract with the Premium Security Death Benefit, because You and Your Annuitant were both no older than age 80 on the issue date, - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $60,000, - Your Contract Value in the fourth year immediately before your Surrender was $150,000, - On the day we receive proof of Death, your Contract Value was $120,000, - Your Maximum Anniversary Value is $83,571 (based on an adjustment to an anniversary value that was $140,000 before the partial Surrender (see below)). CALCULATION OF PREMIUM SECURITY DEATH BENEFIT To calculate the Premium Security Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we receive proof of Death [$120,000], - Total Premium Payments adjusted for any partial Surrenders [$57,857 (see below)], - The lesser of (a) Your Maximum Anniversary Value [$83,571 (see below)] and (b) Your Contract Value on the day we receive proof of Death plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% (83,571) = $140,893]; the lesser (a) and (b) is $83,571. The Premium Security Death Benefit is the greatest of these three values, which is $120,000. ADJUSTMENT FOR PARTIAL SURRENDER FOR TOTAL PREMIUM PAYMENTS The adjustment to your total Premium Payments for partial Surrenders is on a dollar for dollar basis up to 10% of total Premium Payments. 10% of total Premium Payments is $10,000. Total Premium Payments adjusted for dollar for dollar partial Surrenders is $90,000. The remaining partial Surrenders equal $50,000. This amount will reduce your total Premium Payments by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar for dollar adjustment to get $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $90,000. The result is an adjusted total Premium Payment of $57,857. ADJUSTMENT FOR PARTIAL SURRENDER FOR MAXIMUM ANNIVERSARY VALUE The adjustment to your Maximum Anniversary Value for partial Surrenders is on a dollar for dollar basis up to 10% of total Premium Payments. 10% of Premium Payments is $10,000. Your Maximum Anniversary Value adjusted for partial Surrenders on a dollar for dollar basis up to 10% of Premium Payments is $140,000 - $10,000 = $130,000. Remaining partial Surrenders are $50,000. We use this amount to reduce your Maximum Anniversary Value by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar for dollar adjustment to get $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $130,000. The result is an adjusted Maximum Anniversary Value of $83,571. APP I-4 ------------------------------------------------------------------------------- ASSET PROTECTION DEATH BENEFIT EXAMPLE 1 Assume that: - You purchased your Contract with the Asset Protection Death Benefit, because You and/or Your Annuitant were over age 80 on the issue date, - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a withdrawal of $8,000, - Your Contract Value in your fourth Contract Year immediately before your withdrawal was $109,273, - On the day we receive proof of Death, your Contract Value was $117,403, - Your Maximum Anniversary Value was $106,000. CALCULATION OF ASSET PROTECTION DEATH BENEFIT To calculate the Asset Protection Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we receive proof of Death [$117,403], - The lesser of (a) total Premium Payments adjusted for any partial Surrenders [$100,000 - $8,000 = $92,000] or (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your total Premium Payments adjusted for any partial Surrenders and excluding any subsequent Premium Payments we receive within 12 months of death [$117,403 + 25% x $92,000 = $140,403]; the lesser of (a) and (b) is $92,000. - The lesser of (a) Your Maximum Anniversary Value [$106,000] and (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$117,403 + 25% x $106,000 = $143,903]; the lesser (a) and (b) is $106,000. The Asset Protection Death Benefit is the greatest of these three values, which is $117,403. EXAMPLE 2 Assume that: - You purchased your Contract with the Asset Protection Death Benefit because You and/or Your Annuitant were over age 80 on the issue date, - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $60,000, - Your Contract Value in the fourth year immediately before your Surrender was $150,000, - On the day we receive proof of Death, your Contract Value was $120,000, - Your Maximum Anniversary Value is $83,571 (based on an adjustment to an anniversary value that was $140,000 before the partial Surrender (see below)). CALCULATION OF ASSET PROTECTION DEATH BENEFIT To calculate the Asset Protection Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we receive proof of Death [$120,000], - The lesser of (a) total Premium Payments adjusted for any partial Surrenders [$57,857 (see Example 1 under Premium Security Death Benefit)] or (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your total Premium Payments adjusted for any partial Surrenders and excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% x $57,857 = $134,464]; the lesser (a) and (b) is $57,857, - The lesser of (a) Your Maximum Anniversary Value [$83,571 (see Example 1 under Premium Security Death Benefit)] and (b) Your Contract Value on the day we receive proof of Death plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% (83,571) = $140,893]; the lesser (a) and (b) is $83,571. The Asset Protection Death Benefit is the greatest of these three values, which is $120,000. APP I-5 ------------------------------------------------------------------------------- EXAMPLE 3 ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $60,000, AND YOUR CONTRACT VALUE IS $150,000 AT THE TIME OF THE SURRENDER, THEN WE RECALCULATE YOUR BENEFIT AMOUNT BY COMPARING THE RESULTS OF TWO CALCULATIONS AND TAKING THE LESSER OF THE TWO: - First we deduct the amount of the Surrender ($60,000) from your Contract Value ($150,000). This equals $90,000 and is your "New Contract Value." CALCULATION OF ASSET PROTECTION DEATH BENEFIT To calculate the Asset Protection Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we receive proof of Death [$120,000], - The lesser of (a) total Premium Payments adjusted for any partial Surrenders [$57,857 (see Example 1 under Premium Security Death Benefit)] or (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your total Premium Payments adjusted for any partial Surrenders and excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% x $57,857 = $134,464]; the lesser (a) and (b) is $57,857. - The lesser of (a) Your Maximum Anniversary Value [$83,571 (see Example 1 under Premium Security Death Benefit)] and (b) Your Contract Value on the day we receive proof of Death plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% ($83,571) = $140,893]; the lesser (a) and (b) is $83,571. The Asset Protection Death Benefit is the greatest of these three values, which is $120,000. APP I-6 ------------------------------------------------------------------------------- THE HARTFORD'S PRINCIPAL FIRST EXAMPLE 1: ASSUME YOU SELECT THE HARTFORD'S PRINCIPAL FIRST WHEN YOU PURCHASE YOUR CONTRACT AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Benefit Amount is $100,000, which is your initial Premium Payment. - Your Benefit Payment is $7,000, which is 7% of your Benefit Amount. EXAMPLE 2: IF YOU MAKE AN ADDITIONAL PREMIUM PAYMENT OF $50,000, THEN - Your Benefit Amount is $150,000, which is your prior Benefit Amount ($100,000) plus your additional Premium Payment ($50,000). - Your Benefit Payment is $10,500, which is your prior Benefit Payment ($7,000) plus 7% of your additional Premium Payment ($3,500). EXAMPLE 3: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU TAKE THE MAXIMUM BENEFIT PAYMENT BEFORE THE END OF THE FIRST CONTRACT YEAR, THEN - Your Benefit Amount becomes $93,000, which is your prior Benefit Amount ($100,000) minus the Benefit Payment ($7,000). - Your Benefit Payment for the next year remains $7,000, because you did not take more than your maximum Benefit Payment ($7,000). EXAMPLE 4: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $50,000, AND YOUR CONTRACT VALUE IS $150,000 AT THE TIME OF THE SURRENDER, THEN We recalculate your Benefit Amount by comparing the results of two calculations: - First we deduct the amount of the Surrender ($50,000) from your Contract Value ($150,000). This equals $100,000 and is your "New Contract Value." - Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your "New Benefit Amount." Since the New Contract Value ($100,000) is more than or equal to the New Benefit Amount ($50,000), and it is more than or equal to your Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is unchanged and remains $7,000. EXAMPLE 6: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $50,000, AND YOUR CONTRACT VALUE IS $80,000 AT THE TIME OF THE SURRENDER, THEN We recalculate your Benefit Amount by comparing the results of two calculations: - First we deduct the amount of the Surrender ($50,000) from your Contract Value ($80,000). This equals $30,000 and is your "New Contract Value." - Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your "New Benefit Amount." Since the New Contract Value ($30,000) is less than the New Benefit Amount ($50,000), your "New Benefit Amount" becomes the New Contract Value ($30,000), as we have to recalculate your Benefit Payment. We recalculate the Benefit Payment by comparing the "old" Benefit Payment ($7,000) to 7% of the New Benefit Amount ($2,100). Your Benefit Payment becomes the lower of those two values, or $2,100. EXAMPLE 7: IF YOU ELECT TO "STEP UP" THE HARTFORD'S PRINCIPAL FIRST AFTER THE 5TH YEAR, ASSUMING YOU HAVE MADE NO WITHDRAWALS, AND YOUR CONTRACT VALUE AT THE TIME OF STEP UP IS $200,000, THEN - We recalculate your Benefit Amount to equal your Contract Value, which is $200,000. - Your new Benefit Payment is equal to 7% of your new Benefit Amount, or $14,000. APP I-7 ------------------------------------------------------------------------------- THE HARTFORD'S PRINCIPAL FIRST PREFERRED EXAMPLE 1: ASSUME YOU SELECT THE HARTFORD'S PRINCIPAL FIRST PREFERRED WHEN YOU PURCHASE YOUR CONTRACT AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Benefit Amount is $100,000, which is your initial Premium Payment. - Your Benefit Payment is $5,000, which is 5% of your Benefit Amount. EXAMPLE 2: IF YOU MAKE AN ADDITIONAL PREMIUM PAYMENT OF $50,000, THEN - Your Benefit Amount is $150,000, which is your prior Benefit Amount ($100,000) plus your additional Premium Payment ($50,000). - Your Benefit Payment is $7,500, which is your new Benefit Amount ($150,000) multiplied by 5%. EXAMPLE 3: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU TAKE THE MAXIMUM BENEFIT PAYMENT BEFORE THE END OF THE FIRST CONTRACT YEAR, THEN - Your Benefit Amount becomes $95,000, which is your prior Benefit Amount ($100,000) minus the Benefit Payment ($5,000). - Your Benefit Payment for the next year remains $5,000, because you did not take more than your maximum Benefit Payment ($5,000). EXAMPLE 4: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $50,000, AND YOUR CONTRACT VALUE IS $150,000 AT THE TIME OF THE SURRENDER, THEN We recalculate your Benefit Amount by comparing the results of two calculations and taking the lesser of the two: - First we deduct the amount of the Surrender ($50,000) from your Contract Value ($150,000). This equals $100,000 and is your "New Contract Value." - Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your "New Benefit Amount." Since the New Contract Value ($100,000) is more than or equal to the New Benefit Amount ($50,000), and it is more than or equal to your Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is unchanged and remains $5,000. EXAMPLE 5: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $60,000, AND YOUR CONTRACT VALUE IS $150,000 AT THE TIME OF THE SURRENDER, THEN We recalculate your Benefit Amount by comparing the results of two calculations: - First we deduct the amount of the Surrender ($60,000) from your Contract Value ($150,000). This equals $90,000 and is your "New Contract Value." - Second, we deduct the amount of the Surrender ($60,000) from your Benefit Amount ($100,000). This is $40,000 and is your "New Benefit Amount." Since the New Contract Value ($90,000) is more than or equal to the New Benefit Amount ($40,000), but less than the Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is reduced. The new Benefit Payment is 5% of the greater of your New Contract Value and New Benefit Amount, which is $4,500. EXAMPLE 6: ASSUME THE SAME FACTS AS EXAMPLE 1. IF YOU SURRENDER $50,000, AND YOUR CONTRACT VALUE IS $80,000 AT THE TIME OF THE SURRENDER, THEN We recalculate your Benefit Amount by comparing the results of two calculations and taking the lesser of the two: - First we deduct the amount of the Surrender ($50,000) from your Contract Value ($80,000). This equals $30,000 and is your "New Contract Value." - Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your "New Benefit Amount." Since the New Contract Value ($30,000) is less than the New Benefit Amount ($50,000), your "New Benefit Amount" becomes the New Contract Value ($30,000), as we have to recalculate your Benefit Payment. We recalculate the Benefit Payment by comparing the "old" Benefit Payment ($5,000) to 5% of the New Benefit Amount ($1,500). Your Benefit Payment becomes the lower of those two values, or $1,500. APP I-8 ------------------------------------------------------------------------------- THE HARTFORD'S LIFETIME INCOME BUILDER THIS OPTIONAL WITHDRAWAL BENEFIT IS CLOSED. FOR ALL EXAMPLES YOUR GUARANTEED MINIMUM DEATH BENEFIT IS THE GREATER OF THE BENEFIT AMOUNT AND THE CONTRACT VALUE ON THE DATE OF DUE PROOF OF DEATH. EXAMPLE 1: ASSUME YOU SELECT THE HARTFORD'S LIFETIME INCOME BUILDER WHEN YOU PURCHASE YOUR CONTRACT, YOU ARE YOUNGER THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Benefit Amount is $100,000, which is your initial Premium Payment. - Your Benefit Payment is $5,000, which is 5% of your Benefit Amount. - Your Lifetime Benefit Payment is zero. The Lifetime Benefit Payment will be set equal to the Benefit Amount multiplied by 5% on the Contract Anniversary immediately following the Older Owner's 60th birthday. EXAMPLE 2: ASSUME THE SAME FACTS AS EXAMPLE 1. ALSO ASSUME THAT YOU MAKE NO ADDITIONAL PREMIUM PAYMENTS AND TAKE NO WITHDRAWALS DURING THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $105,000. - At the anniversary, we calculate the automatic Benefit Amount Increase. The ratio is the Contract Value ($105,000) divided by the Maximum Contract Value ($100,000), less 1 subject to a minimum of 0% and a maximum of 10%. - ($105,000 / $100,000) - 1 = .05 = 5%. - Your Benefit Amount is $105,000, which is your previous Benefit Amount plus the automatic Benefit Amount increase. - Your Benefit Payment is $5,250, which is 5% of your Benefit Amount. - The annual charge for The Hartford's Lifetime Income Builder is 40 bps of the Benefit Amount after the automatic increase calculation. - $105,000 x .004 = $420, this amount is deducted from the Contract Value. EXAMPLE 3: ASSUME THE SAME FACTS AS EXAMPLE 1. ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. - Your initial Benefit Amount is $100,000. - Your Benefit Payment is $5,000. - After the partial Surrenders of $1,000, your Benefit Amount is $99,000. - There is no change to the annual Benefit Payment since the partial Surrender is less than the Benefit Payment. - At the anniversary, we calculate the automatic Benefit Amount Increase. The ratio is the Contract Value ($99,000) divided by the Maximum Contract Value ($100,000), less 1 subject to a minimum of 0% and a maximum of 10%. - ($99,000 / $100,000) - 1 = -.01 subject to the minimum of 0%. - Your Benefit Amount is $99,000, which is your previous Benefit Amount since the automatic Benefit Amount increase was 0%. - Your Benefit Payment will remain at $5,000. Because your Benefit Amount did not increase because of the automatic Benefit Amount increase provision on the anniversary, the Benefit Payment will not increase. And because the remaining Benefit Amount ($99,000) is not less than the Benefit Payment immediately prior to the anniversary, the Benefit Payment will not be reduced. - The annual charge for The Hartford's Lifetime Income Builder is 40 bps of the Benefit Amount after the automatic increase calculation. - $99,000 x .004 = $396, this amount is deducted from the Contract Value. EXAMPLE 4: ASSUME THE SAME FACTS AS EXAMPLE 3. ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2 AND THAT, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. - At the beginning of Contract Year 2, your initial Benefit Amount is $99,000. - Your Benefit Payment is $5,000. - Your Benefit Amount after the premium payment is $119,000. - Your Benefit Payment is $5,950, which is 5% of your Benefit Amount. APP I-9 ------------------------------------------------------------------------------- EXAMPLE 5: ASSUME THE SAME FACTS AS EXAMPLE 4. ASSUME THAT AT THE ON THE FOLLOWING ANNIVERSARY (THE END OF CONTRACT YEAR 2) THE CONTRACT VALUE IS $118,000 AND THAT NO WITHDRAWALS WERE TAKEN IN CONTRACT YEAR 2. - After premium payment, your Benefit Amount is $119,000. - Your Benefit Payment is $5,950. - At the anniversary, we calculate the automatic Benefit Amount Increase. The ratio is the Contract Value ($118,000) divided by the Maximum Contract Value ($120,000), less 1 subject to a minimum of 0% and a maximum of 10%. - ($118,000 / $120,000) - 1 = -.01667 subject to a minimum of 0% - Your Benefit Amount is $119,000, which is your previous Benefit Amount since the automatic Benefit Amount increase is 0%. - Your Benefit Payment is $5,950, which is 5% of your Benefit Amount. - The annual charge for The Hartford's Lifetime Income Builder is 40 bps of the Benefit Amount after the automatic increase calculation. - $119,000 x .004 = $476, this amount is deducted from the Contract Value. EXAMPLE 6: ASSUME THE SAME FACTS AS EXAMPLE 5. ASSUME THAT IN THE THIRD CONTRACT YEAR, A $35,000 PARTIAL SURRENDER IS TAKEN. THE PARTIAL SURRENDER INCLUDES A CONTINGENT DEFERRED SALES CHARGE. THE WITHDRAWAL LOWERED THE CONTRACT VALUE FROM $115,000 TO $80,000. - At the beginning of Contract Year 3, your initial Benefit Amount is $119,000. - Your Benefit Payment is $5,950. - Since the total partial Surrender exceeds the Benefit Payment, the Benefit Amount is reset to the lesser of (i) or (ii) as follows - (i) the Contract Value immediately following the partial withdrawal: $80,000. - (ii) the Benefit Amount prior to the partial Surrender, less the amount of the Surrender: $119,000 - $35,000 = $84,000. - Your new Benefit Amount is $80,000. - Your new Benefit Payment is $4,000, which is 5% of the new Benefit Amount. EXAMPLE 7: ASSUME THAT ON THE CONTRACT ANNIVERSARY IMMEDIATELY FOLLOWING THE OLDER OWNER'S 60TH BIRTHDAY, THE CONTRACT VALUE IS $200,000. - Your Benefit Amount after the automatic increase calculation is $200,000. - Your Lifetime Benefit Payment is $10,000 which is 5% of your Benefit Amount. - The annual charge for The Hartford's Lifetime Income Builder is 40 bps of the Benefit Amount after the automatic increase calculation. - $200,000 x .004 = $800, this amount is deducted from the Contract Value. EXAMPLE 8: ASSUME THE OWNER WITHDRAWS $9,000 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE BENEFIT PAYMENT IS $10,000; THE LIFETIME BENEFIT PAYMENT IS $7,000; THE BENEFIT AMOUNT $80,000 AND THE CONTRACT VALUE IS $85,000. - Your Benefit Amount is $80,000 before the partial Surrender. - Your Benefit Amount after the partial Surrender is $71,000, since the partial Surrender is less than your Benefit Payment. - There is no change to the annual Benefit Payment since the partial Surrender is less than the Benefit Payment. - Your Lifetime Benefit Payment will be reset to $3,550 which is 5% of the Benefit Amount after the partial Surrender. This reset occurs because partial Surrender is greater that the annual Lifetime Benefit Payment. EXAMPLE 9: ASSUME THE OWNER WITHDRAWS $12,000 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE BENEFIT PAYMENT IS $10,000; THE LIFETIME BENEFIT PAYMENT IS $7,000; THE BENEFIT AMOUNT $80,000 AND THE CONTRACT VALUE IS $85,000. - Your Benefit Amount is $80,000 before the partial Surrender. - Your Benefit Amount after the partial Surrender is $68,000. - It is the lesser of Contract Value after the partial Surrender ($73,000) and the Benefit Amount immediately prior the partial Surrender, less the partial Surrender amount ($68,000). This comparison is done because the partial Surrender is greater than your Benefit Payment. - Your Benefit Amount will reset to $3,400 which is 5% of the Benefit Amount after the partial Surrenders. This reset occurs because the partial Surrender is greater than the annual Benefit Payment. - Your Lifetime Benefit Payment will reset to $3,400 which is 5% of the Benefit Amount after the partial Surrender. This reset occurs because partial Surrender is greater that the annual Lifetime Benefit Payment. APP I-10 ------------------------------------------------------------------------------- THE HARTFORD'S LIFETIME INCOME FOUNDATION THIS OPTIONAL WITHDRAWAL BENEFIT IS CLOSED TO NEW INVESTORS IF THE HARTFORD'S LIFETIME INCOME SELECTS OR THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS IS APPROVED IN YOUR STATE. EXAMPLE 1: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $5,000, which is 5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 2: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $4,500, which is 4.5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 3: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Withdrawal Percent is 5%, which is based on your age. - Your Lifetime Benefit Payment is $5,000, which is 5% of your Payment Base. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 4: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 3, HOWEVER YOUR FIRST PARTIAL SURRENDER IS TAKEN AT AGE 70. YOUR WITHDRAWAL PERCENT IS 6% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $105,000. - Your Lifetime Benefit Payment is $6,300, which is the product of your Withdrawal Percent multiplied by $105,000, which is the greater of your Contract Value at the beginning of the year and your Payment Base. - You take a partial Surrender of $6,000. - Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent will remain at 6% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender. - Your remaining Lifetime Benefit Payment for the Contract Year is $300. - Your Contract Value after the withdrawal is $99,000. - Your Guaranteed Minimum Death Benefit is $94,000, which is your prior Death Benefit reduced by the amount of the withdrawal. EXAMPLE 5: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Withdrawal Percent is 4.5%, which is based on your age. - Your Lifetime Benefit Payment is $4,500, which is 4.5% of your Payment Base. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. APP I-11 ------------------------------------------------------------------------------- EXAMPLE 6: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 5, HOWEVER YOUR FIRST PARTIAL SURRENDER AT AGE 70. YOUR WITHDRAWAL PERCENT IS 5.5% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $106,500. - Your Lifetime Benefit Payment is $5,857.50, which is the product of your Withdrawal Percent multiplied by $106,500, which is the greater of your Contract Value at the beginning of the year and your Payment Base. - You take a partial Surrender of $5,500. - Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent will remain at 5.5% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender. - Your remaining Lifetime Benefit Payment for the Contract Year is $357.50. - Your Contract Value after the withdrawal is $101,000. - Your Guaranteed Minimum Death Benefit is $94,500, which is your prior Death Benefit reduced by the withdrawal. EXAMPLE 7: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. PRIOR TO THE SURRENDER: - Your initial Payment Base is $100,000. - Your Threshold is $5,000. - Your Guaranteed Minimum Death Benefit is $100,000. AFTER THE SURRENDER: - Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender. - Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 5% for the duration of your Contract. - Your remaining Threshold amount for the Contract Year is $4,000, which is your prior Threshold amount reduced by the amount of the partial Surrender. - The annual charge for The Hartford's Lifetime Income Foundation is 0.30% of the Payment Base. - $99,000 x 0.30% = $297, this amount is deducted from the Contract Value. - Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 8: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. PRIOR TO THE SURRENDER: - Your initial Payment Base is $100,000. - Your Threshold is $4,500. - Your Guaranteed Minimum Death Benefit is $100,000. AFTER THE SURRENDER: - Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender. - Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 4.5% for the duration of your Contract. - Your remaining Threshold amount for the Contract Year is $3,500, which is your prior Threshold amount reduced by the amount of the partial Surrender. - The annual charge for The Hartford's Lifetime Income Foundation is 0.30% of the Payment Base. - $99,000 x 0.30% = $297, this amount is deducted from the Contract Value. - Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender. APP I-12 ------------------------------------------------------------------------------- EXAMPLE 9: ASSUME THE SAME FACTS AS EXAMPLE 7 (SINGLE LIFE). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. PRIOR TO THE PREMIUM PAYMENT: - At the beginning of Contract Year 2, your initial Payment Base is $99,000. - Your Threshold amount is $4,950. - Your Guaranteed Minimum Death Benefit is $99,000. AFTER THE PREMIUM PAYMENT: - Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment. - Your Threshold amount is $5,950, which is 5% of the greater of your Contract Value immediately following the Premium Payment or your Payment Base immediately following the Premium Payment. - Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment. EXAMPLE 10: ASSUME THE SAME FACTS AS EXAMPLE 8 (JOINT/SPOUSAL). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. PRIOR TO THE PREMIUM PAYMENT: - At the beginning of Contract Year 2, your initial Payment Base is $99,000. - Your Threshold amount is $4,455. - Your Guaranteed Minimum Death Benefit is $99,000. AFTER THE PREMIUM PAYMENT: - Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment. - Your Threshold amount is $5,355, which is 4.5% of the greater of your Contract Value immediately following the Premium Payment or your Payment Base immediately following the Premium Payment. - Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment. EXAMPLE 11: ASSUME THE OLDER COVERED LIFE IS 74 (SINGLE LIFE). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,300 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 6%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000; THE LIFETIME BENEFIT PAYMENT IS 6% MULTIPLIED BY THE GREATER OF THE PAYMENT BASE OR CONTRACT VALUE, OR $3,300. AFTER THE PARTIAL SURRENDER: - Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent is 6% for the duration of your Contract. - Your Lifetime Benefit Payment for the remainder of the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,700, which is your prior Death Benefit reduced by the amount of the partial Surrender. APP I-13 ------------------------------------------------------------------------------- EXAMPLE 12: ASSUME THE YOUNGER COVERED LIFE IS 74 (JOINT/SPOUSAL). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,025 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 5.5%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000; THE LIFETIME BENEFIT PAYMENT IS 5.5% MULTIPLIED BY THE GREATER OF PAYMENT BASE OR CONTRACT VALUE, OR $3,025. AFTER THE PARTIAL SURRENDER: - Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent is 5.5% for the duration of your Contract. - Your Lifetime Benefit Payment for the remainder of the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,975, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 13: ASSUME THE SAME FACTS AS EXAMPLE 11 (SINGLE LIFE). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $1,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $52,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $51,000. PRIOR TO THE PARTIAL SURRENDER: - Your Payment Base is $50,000. - Your Withdrawal Percent was previously locked in at 6%. - Your remaining Lifetime Benefit Payment for this Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,700. AFTER THE PARTIAL SURRENDER: - Your Payment Base is $49,038, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base. - Your Lifetime Benefit Payment remaining for the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $45,802, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment /Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit. EXAMPLE 14: ASSUME THE SAME FACTS AS EXAMPLE 12 (JOINT/SPOUSAL). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $2,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $49,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $47,000. PRIOR TO THE PARTIAL SURRENDER: - Your Payment Base is $50,000. - Your Withdrawal Percent was previously locked in at 5.5%. - Your remaining Lifetime Benefit Payment for this Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,975. AFTER THE PARTIAL SURRENDER: - Your new Payment Base is $47,959, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment /Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base. - Your Lifetime Benefit Payment remaining for the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $45,058, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment /Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit. APP I-14 ------------------------------------------------------------------------------- THE HARTFORD'S LIFETIME INCOME BUILDER II THIS OPTIONAL WITHDRAWAL BENEFIT IS CLOSED TO NEW INVESTORS IF THE HARTFORD'S LIFETIME INCOME SELECTS OR THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS IS APPROVED IN YOUR STATE. EXAMPLE 1: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $5,000, which is 5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 2: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $4,500, which is 4.5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 3: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Withdrawal Percent is 5%, which is based on your age. - Your Lifetime Benefit Payment is $5,000, which is 5% of your Payment Base. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. EXAMPLE 4: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 3, HOWEVER YOUR FIRST PARTIAL SURRENDER IS TAKEN AT AGE 70. YOUR WITHDRAWAL PERCENT IS 6% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $105,000. - Your Lifetime Benefit Payment is $6,300, which is the product of your Withdrawal Percent multiplied by $105,000, which is the greater of your Contract Value at the beginning of the year and your Payment Base. - You take a partial Surrender of $6,000. - Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent will remain at 6% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender. - Your remaining Lifetime Benefit Payment for the Contract Year is $300. - Your Contract Value after the withdrawal is $99,000. - Your Guaranteed Minimum Death Benefit is $94,000, which is your prior Death Benefit reduced by the amount of the withdrawal. EXAMPLE 5: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Withdrawal Percent is 4.5%, which is based on your age. - Your Lifetime Benefit Payment is $4,500, which is 4.5% of your Payment Base. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. APP I-15 ------------------------------------------------------------------------------- EXAMPLE 6: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 5, HOWEVER YOUR FIRST PARTIAL SURRENDER AT AGE 70. YOUR WITHDRAWAL PERCENT IS 5.5% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $106,500. - Your Lifetime Benefit Payment is $5,857.50, which is the product of your Withdrawal Percent multiplied by $106,500, which is the greater of your Contract Value at the beginning of the year and your Payment Base. - You take a partial Surrender of $5,500. - Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent will remain at 5.5% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender. - Your remaining Lifetime Benefit Payment for the Contract Year is $357.50. - Your Contract Value after the withdrawal is $101,000. - Your Guaranteed Minimum Death Benefit is $94,500, which is your prior Death Benefit reduced by the withdrawal. EXAMPLE 7: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. PRIOR TO THE SURRENDER: - Your initial Payment Base is $100,000. - Your Threshold is $5,000. - Your Guaranteed Minimum Death Benefit is $100,000. AFTER THE SURRENDER: - At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($95,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%. - ($95,000/$100,000) - 1 = -.05 subject to the minimum of 0%. - Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender, since the automatic Payment Base increase was 0%. - Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 5% for the duration of your Contract. - Your remaining Threshold amount for the Contract Year is $4,000, which is your prior Threshold amount reduced by the amount of the partial Surrender. - The annual charge for The Hartford's Lifetime Income Builder II is 0.40% of the Payment Base after the automatic increase calculation. - $99,000 x 0.40% = $396, this amount is deducted from the Contract Value. - Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender. APP I-16 ------------------------------------------------------------------------------- EXAMPLE 8: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE ON YOUR FIRST ANNIVERSARY IS $95,000. PRIOR TO THE SURRENDER: - Your initial Payment Base is $100,000. - Your Threshold is $4,500. - Your Guaranteed Minimum Death Benefit is $100,000. AFTER THE SURRENDER: - At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($95,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%. - ($95,000/$100,000) - 1 = -.05 subject to the minimum of 0%. - Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender, since the automatic Payment Base increase was 0%. - Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 4.5% for the duration of your Contract. - Your remaining Threshold amount for the Contract Year is $3,500, which is your prior Threshold amount reduced by the amount of the partial Surrender. - The annual charge for The Hartford's Lifetime Income Builder II is 0.40% of the Payment Base after the automatic increase calculation. - $99,000 x 0.40% = $396, this amount is deducted from the Contract Value. - Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 9: ASSUME THE SAME FACTS AS EXAMPLE 7 (SINGLE LIFE). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. PRIOR TO THE PREMIUM PAYMENT: - At the beginning of Contract Year 2, your initial Payment Base is $99,000. - Your Threshold amount is $4,950. - Your Guaranteed Minimum Death Benefit is $99,000. AFTER THE PREMIUM PAYMENT: - Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment. - Your Threshold amount is $5,950, which is 5% of the greater of your Contract Value immediately following the Premium Payment or your Payment Base immediately following the Premium Payment. - Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment. EXAMPLE 10: ASSUME THE SAME FACTS AS EXAMPLE 8 (JOINT/SPOUSAL). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, JUST PRIOR TO THE PAYMENT, THE CONTRACT VALUE WAS $96,000. PRIOR TO THE PREMIUM PAYMENT: - At the beginning of Contract Year 2, your initial Payment Base is $99,000. - Your Threshold amount is $4,455. - Your Guaranteed Minimum Death Benefit is $99,000. AFTER THE PREMIUM PAYMENT: - Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment. - Your Threshold amount is $5,355, which is 4.5% of the greater of your Contract Value immediately following the Premium Payment or your Payment Base immediately following the Premium Payment. - Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment. APP I-17 ------------------------------------------------------------------------------- EXAMPLE 11: ASSUME THE OLDER COVERED LIFE IS 74 (SINGLE LIFE). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,300 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 6%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000; THE LIFETIME BENEFIT PAYMENT IS 6% MULTIPLIED BY THE GREATER OF THE PAYMENT BASE OR CONTRACT VALUE, OR $3,300. AFTER THE PARTIAL SURRENDER: - Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent is 6% for the duration of your Contract. - Your Lifetime Benefit Payment for the remainder of the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,700, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 12: ASSUME THE YOUNGER COVERED LIFE IS 74 (JOINT/SPOUSAL). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,025 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 5.5%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000; THE LIFETIME BENEFIT PAYMENT IS 5.5% MULTIPLIED BY THE GREATER OF PAYMENT BASE OR CONTRACT VALUE, OR $3,025. AFTER THE PARTIAL SURRENDER: - Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment. - Your Withdrawal Percent is 5.5% for the duration of your Contract. - Your Lifetime Benefit Payment for the remainder of the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,975, which is your prior Death Benefit reduced by the amount of the partial Surrender. EXAMPLE 13: ASSUME THE SAME FACTS AS EXAMPLE 11 (SINGLE LIFE). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $1,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $52,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $51,000. PRIOR TO THE PARTIAL SURRENDER: - Your Payment Base is $50,000. - Your Withdrawal Percent was previously locked in at 6%. - Your remaining Lifetime Benefit Payment for this Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,700. AFTER THE PARTIAL SURRENDER: - Your Payment Base is $49,038, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base. - Your Lifetime Benefit Payment remaining for the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $45,802, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit. APP I-18 ------------------------------------------------------------------------------- EXAMPLE 14: ASSUME THE SAME FACTS AS EXAMPLE 12 (JOINT/SPOUSAL). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $2,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $49,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $47,000. PRIOR TO THE PARTIAL SURRENDER: - Your Payment Base is $50,000. - Your Withdrawal Percent was previously locked in at 5.5%. - Your remaining Lifetime Benefit Payment for this Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $46,975. AFTER THE PARTIAL SURRENDER: - Your new Payment Base is $47,959, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base. - Your Lifetime Benefit Payment remaining for the Contract Year is $0. - Your Guaranteed Minimum Death Benefit is $45,058, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit. EXAMPLE 15: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). NOW ASSUME YOU HAVE REACHED YOUR FIRST CONTRACT ANNIVERSARY. YOUR CONTRACT VALUE ON THE CONTRACT ANNIVERSARY IS $110,000. PRIOR TO THE CONTRACT ANNIVERSARY: - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $5,000, which is 5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. AFTER THE CONTRACT ANNIVERSARY: - At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($110,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%. - ($110,000/$100,000) - 1 = .10 subject to the maximum of 10%. - Your Payment Base is $110,000, which is your prior Payment Base multiplied by the automatic Payment Base increase. - Your Threshold amount for the Contract Year is $5,500, which is your new Payment Base multiplied by 5%. - Your Guaranteed Minimum Death Benefit remains $100,000, as it is not impacted by the automatic Payment Base increase. APP I-19 ------------------------------------------------------------------------------- EXAMPLE 16: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). NOW ASSUME YOU HAVE REACHED YOUR FIRST CONTRACT ANNIVERSARY. YOUR CONTRACT VALUE ON THE ANNIVERSARY IS $105,000. PRIOR TO THE CONTRACT ANNIVERSARY: - Your Payment Base is $100,000, which is your initial Premium Payment. - Your Threshold is $4,500, which is 4.5% of your Payment Base. - Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender. - Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment. AFTER THE CONTRACT ANNIVERSARY: - At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($105,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%. - ($105,000/$100,000) - 1 = .05 subject to the maximum of 10%. - Your Payment Base is $105,000, which is your prior Payment Base multiplied by the automatic Payment Base increase. - Your Threshold amount for the Contract Year is $4,725, which is your new Payment Base multiplied by 4.5%. - Your Guaranteed Minimum Death Benefit remains $100,000, as it is not impacted by the automatic Payment Base increase. EXAMPLE 17: SPOUSAL CONTRACT CONTINUATION On date of Spousal Contract continuation, we increase the Contract Value to equal the Death Benefit (if greater). For illustration purposes, we will assume the Contract Value on the date of continuation is set equal to the Death Benefit of $150,000 and the Payment Base is $125,000. The values for the rider are impacted as follows: Payment Base = $150,000 (greater of Contract Value or Payment Base on date of continuation) WP = existing Withdrawal Percent if partial Surrender have been taken, or else it is set using the remaining Spouse's attained age on the Contract Anniversary prior to the first partial Surrender (for this example we will say it is 6%). Lifetime Benefit Payment = $9,000 (WP x greater of Payment Base or Contract Value on date of continuation) Death Benefit = $150,000 (Contract Value on date of continuation) Maximum Contract Value (LIB II Only) = $150,000 (greater of Contract Value or Payment Base on date of continuation) APP I-20 ------------------------------------------------------------------------------- THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS AND THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS EXAMPLE 1: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000.
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment THRESHOLD $5,000 $5,000 - 5% of your Payment Base - 5% of your Payment Base LIFETIME BENEFIT PAYMENT N/A N/A GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
EXAMPLE 2: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS LESS THAN AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000.
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment THRESHOLD $4,500 $4,500 - 4.5% of your Payment Base - 4.5% of your Payment Base LIFETIME BENEFIT PAYMENT N/A N/A GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
EXAMPLE 3: ASSUME YOU SELECT SINGLE LIFE OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE OLDER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000.
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment WITHDRAWAL PERCENT 5% 5% - Based on your age - Based on your age LIFETIME BENEFIT PAYMENT $5,000 $5,000 - 5% of your Payment Base - 5% of your Payment Base GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
EXAMPLE 4: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 3 (SINGLE LIFE), HOWEVER YOUR FIRST PARTIAL SURRENDER IS TAKEN AT AGE 70. YOUR WITHDRAWAL PERCENT IS 6% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE YEAR IS $105,000. YOUR CONTRACT VALUE UPON ATTAINING AGE 70 IS $105,500. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $105,000 $105,000 LIFETIME BENEFIT PAYMENT $6,330 $6,300 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by your greater of your Payment Base or Contract Payment Base Value upon attaining age 70
APP I-21 ------------------------------------------------------------------------------- YOU TAKE A PARTIAL SURRENDER OF $6,000, VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $105,000 $105,000 WITHDRAWAL PERCENT 6%(1) 6%(1) LIFETIME BENEFIT PAYMENT $330 $300 - Remaining for Contract Year - Remaining for Contract Year CONTRACT VALUE AFTER THE WITHDRAWAL $99,000 $99,000 GUARANTEED MINIMUM DEATH BENEFIT $94,000 $94,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
EXAMPLE 5: ASSUME YOU SELECT JOINT/SPOUSAL OPTION WHEN YOU PURCHASE YOUR CONTRACT, THE YOUNGER COVERED LIFE IS AGE 60, AND YOUR INITIAL PREMIUM PAYMENT IS $100,000.
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment WITHDRAWAL PERCENT 4.5% 4.5% - Based on your age - Based on your age LIFETIME BENEFIT PAYMENT $4,500 $4,500 - 4.5% of your Payment Base - 4.5% of your Payment Base GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
(1) The Withdrawal Percentage will remain for the duration of your Contract unless an automatic Payment Base increase occurs on a future anniversary and a new Withdrawal Percent age band is applicable; if no automatic Payment Base increase occurs on a future anniversary where a new Withdrawal Percent age band is applicable, your Withdrawal Percent will remain as is. EXAMPLE 6: ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 5 (JOINT/SPOUSAL), HOWEVER YOUR FIRST PARTIAL SURRENDER IS TAKEN AT AGE 70. YOUR WITHDRAWAL PERCENT IS 5.5% BASED ON YOUR AGE. YOUR CONTRACT VALUE AT THE BEGINNING OF THE CONTRACT YEAR IS $110,000. YOUR CONTRACT VALUE UPON ATTAINING AGE 70 IS $111,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $110,000 $110,000 LIFETIME BENEFIT PAYMENT $6,105 $6,050 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by your greater of your Payment Base or Contract Payment Base Value upon attaining age 70
YOU TAKE A PARTIAL SURRENDER OF $6,000, VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $110,000 $110,000 WITHDRAWAL PERCENT 5.5%(1) 5.5%(1) LIFETIME BENEFIT PAYMENT $105 $50 - Remaining for Contract Year - REMAINING FOR CONTRACT YEAR CONTRACT VALUE AFTER THE WITHDRAWAL $105,000 $105,000 GUARANTEED MINIMUM DEATH BENEFIT $94,000 $94,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
APP I-22 ------------------------------------------------------------------------------- EXAMPLE 7: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE PRIOR TO THE RIDER CHARGE BEING DEDUCTED ON YOUR FIRST ANNIVERSARY IS $95,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 THRESHOLD $5,000 $5,000 GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000
VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - Prior Payment Base reduced by - Prior Payment Base reduced by withdrawal withdrawal WITHDRAWAL PERCENT 5%(1) 5%(1) THRESHOLD $4,000 $4,000 - Remaining for the Contract Year - Remaining for the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($95,000) divided by your current Payment the rider charge being taken, or Base ($99,000), less 1 - Your current Payment Base - Resulting in -0.04%, subject to minimum of 0%, No change to the Payment Base THRESHOLD $4,950 $4,950 - 5% of your Payment Base - 5% of your Payment Base RIDER CHARGE $544.50 $643.50 - Rider charge of 0.55% multiplied by - Rider charge of 0.65% multiplied by your current Payment Base your current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 8: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE PRIOR TO THE RIDER CHARGE BEING DEDUCTED ON YOUR FIRST ANNIVERSARY IS $105,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 THRESHOLD $5,000 $5,000 GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000
APP I-23 ------------------------------------------------------------------------------- VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - Prior Payment Base reduced by - Prior Payment Base reduced by withdrawal withdrawal WITHDRAWAL PERCENT 5%(1) 5%(1) THRESHOLD $4,000 $4,000 - Remaining for the Contract Year - Remaining for the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $105,000 $105,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($105,000) divided by your current the rider charge being taken, or Payment Base ($99,000), less 1 - Your current Payment Base - Resulting in 0.06%, subject to minimum of 0% and maximum of 10% THRESHOLD $5,250 $5,250 - 5% of your Payment Base - 5% of your Payment Base RIDER CHARGE $577.50 $682.50 - Rider charge of 0.55% multiplied by - Rider charge of 0.65% multiplied by your current Payment Base your current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 9: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). ALSO ASSUME THAT YOU TAKE A $1,000 PARTIAL SURRENDER IN THE FIRST CONTRACT YEAR AND THAT THE CONTRACT VALUE PRIOR TO THE RIDER CHARGE BEING DEDUCTED ON YOUR FIRST ANNIVERSARY IS $95,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 THRESHOLD $4,500 $4,500 GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000
VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - Prior Payment Base reduced by - Prior Payment Base reduced by withdrawal withdrawal WITHDRAWAL PERCENT 4.5%(1) 4.5%(1) THRESHOLD $3,500 $3,500 - Remaining for the Contract Year - Remaining for the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the withdrawal withdrawal
APP I-24 ------------------------------------------------------------------------------- VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($95,000) divided by your current Payment the rider charge being taken, or Base ($99,000), less 1 - Your current Payment Base - Resulting in -0.04%, subject to minimum of 0%, No change to the Payment Base THRESHOLD $4,455 $4,455 - 4.5% of your Payment Base - 4.5% of your Payment Base RIDER CHARGE $544.50 $643.50 - Rider charge of 0.55% multiplied by - Rider charge of 0.65% multiplied by your current Payment Base your current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 10: ASSUME THE SAME FACTS AS EXAMPLE 7 (SINGLE LIFE). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, THE CONTRACT VALUE AFTER THE PAYMENT IS $121,000. VALUES PRIOR TO THE PREMIUM PAYMENT:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 THRESHOLD $4,950 $4,950 GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000
VALUES AFTER THE PREMIUM PAYMENT:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $119,000 $119,000 - Prior Payment Base increased by the - Prior Payment Base increased by the Premium Payment Premium Payment THRESHOLD $6,050 $5,950 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by your greater of your current Payment Base or current Payment Base Contract Value GUARANTEED MINIMUM DEATH BENEFIT $119,000 $119,000 - Prior Death Benefit increased by the - Prior Death Benefit increased by the Premium Payment Premium Payment
APP I-25 ------------------------------------------------------------------------------- EXAMPLE 11: ASSUME THE SAME FACTS AS EXAMPLE 9 (JOINT/SPOUSAL). ASSUME THAT AN ADDITIONAL PREMIUM PAYMENT OF $20,000 IS MADE IN CONTRACT YEAR 2, THE CONTRACT VALUE AFTER THE PAYMENT IS $125,000. VALUES PRIOR TO THE PREMIUM PAYMENT:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $99,000 $99,000 THRESHOLD $4,455 $4,455 GUARANTEED MINIMUM DEATH BENEFIT $99,000 $99,000
VALUES AFTER THE PREMIUM PAYMENT:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $119,000 $119,000 - Prior Payment Base increased by the - Prior Payment Base increased by the Premium Payment Premium Payment THRESHOLD $5,625 $5,355 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by your greater of your current Payment Base or current Payment Base Contract Value GUARANTEED MINIMUM DEATH BENEFIT $119,000 $119,000 - Prior Death Benefit increased by the - Prior Death Benefit increased by the Premium Payment Premium Payment
EXAMPLE 12: ASSUME THE OLDER COVERED LIFE IS 74 (SINGLE LIFE). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $3,000 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 6%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000. VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $50,000 $50,000 - Partial Surrender did not exceed the - Partial Surrender did not exceed the Lifetime Benefit Payment Lifetime Benefit Payment WITHDRAWAL PERCENT 6%(1) 6%(1) LIFETIME BENEFIT PAYMENT $300 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was 6% multiplied by the greater of the 6% multiplied by the Payment Base on the Payment Base or Contract Value on the Contract Anniversary Contract Anniversary - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was $3,000 $3,300 GUARANTEED MINIMUM DEATH BENEFIT $47,000 $47,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the partial Surrender partial Surrender
APP I-26 ------------------------------------------------------------------------------- EXAMPLE 13: ASSUME THE YOUNGER COVERED LIFE IS 74 (JOINT/SPOUSAL). ASSUME THE OWNER MAKES THE FIRST PARTIAL SURRENDER UNDER THE CONTRACT OF $2,750 WHEN, JUST PRIOR TO THE PARTIAL SURRENDER, THE PAYMENT BASE IS $50,000; THE CONTRACT VALUE (ON ANNIVERSARY) IS $55,000; THE WITHDRAWAL PERCENT IS 5.5%; THE GUARANTEED MINIMUM DEATH BENEFIT IS $50,000. VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $50,000 $50,000 - Partial Surrender did not exceed the - Partial Surrender did not exceed the Lifetime Benefit Payment Lifetime Benefit Payment WITHDRAWAL PERCENT 5.5%(1) 5.5%(1) LIFETIME BENEFIT PAYMENT $275 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was 5.5% multiplied by the greater of the 5.5% multiplied by the Payment Base on Payment Base or Contract Value on the the Contract Anniversary Contract Anniversary - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was $2,750 $3,025 GUARANTEED MINIMUM DEATH BENEFIT $47,250 $47,250 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the partial Surrender partial Surrender
EXAMPLE 14: ASSUME THE SAME FACTS AS EXAMPLE 12 (SINGLE LIFE). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $1,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $52,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $51,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $50,000 $50,000 - Partial Surrender did not exceed the - Partial Surrender did not exceed the Lifetime Benefit Payment Lifetime Benefit Payment WITHDRAWAL PERCENT 6% 6% LIFETIME BENEFIT PAYMENT $300 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was 6% multiplied by the greater of the 6% multiplied by the Payment Base on the Payment Base or Contract Value on the Contract Anniversary Contract Anniversary - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was $3,000 $3,300 GUARANTEED MINIMUM DEATH BENEFIT $47,000 $47,000 - Prior Death Benefit reduced by the - Prior Death Benefit reduced by the partial Surrender partial Surrender
APP I-27 ------------------------------------------------------------------------------- VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $49,323 $49,038 - Proportional reduction: - Proportional reduction: 1-($700/($52,000-$300) 1-($1000/$52,000) LIFETIME BENEFIT PAYMENT $0 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $46,068 $46,096 - Prior Death Benefit reduced by partial - Prior Death Benefit reduced by partial surrender NOT exceeding the Lifetime surrender NOT exceeding the Lifetime Benefit Payment. Then, proportional Benefit Payment. Then, proportional reduction multiplied by the result of the reduction multiplied by the result of the above above
EXAMPLE 15: ASSUME THE SAME FACTS AS EXAMPLE 13 (JOINT/SPOUSAL). ASSUME THAT A SECOND PARTIAL SURRENDER IS TAKEN IN THE SAME CONTRACT YEAR FOR $2,000; THE CONTRACT VALUE PRIOR TO THE PARTIAL SURRENDER IS $49,000; THE CONTRACT VALUE AFTER THE PARTIAL SURRENDER IS $47,000. VALUES PRIOR TO THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $50,000 $50,000 WITHDRAWAL PERCENT 5.5% 5.5% LIFETIME BENEFIT PAYMENT $275 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was 5.5% multiplied by the greater of the 5.5% multiplied by the Payment Base on Payment Base or Contract Value on the the Contract Anniversary Contract Anniversary - Available Lifetime Benefit Payment was - Available Lifetime Benefit Payment was $2,750 $3,025 GUARANTEED MINIMUM DEATH BENEFIT $47,250 $47,250
VALUES AFTER THE PARTIAL SURRENDER:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $48,230 $47,959 - Proportional reduction: - Proportional reduction: 1-($1,725/($49,000-$275) 1-($2,000/$49,000) LIFETIME BENEFIT PAYMENT $0 $0 - Remaining Lifetime Benefit Payment for - Remaining Lifetime Benefit Payment for the Contract Year the Contract Year GUARANTEED MINIMUM DEATH BENEFIT $45,312 $45,321 - Prior Death Benefit reduced by partial - Prior Death Benefit reduced by partial surrender NOT exceeding the Lifetime surrender NOT exceeding the Lifetime Benefit Payment. Then, proportional Benefit Payment. Then, proportional reduction multiplied by the result of the reduction multiplied by the result of the above above
APP I-28 ------------------------------------------------------------------------------- EXAMPLE 16: ASSUME THE SAME FACTS AS EXAMPLE 1 (SINGLE LIFE). NOW ASSUME YOU HAVE REACHED YOUR FIRST CONTRACT ANNIVERSARY. YOUR CONTRACT VALUE ON THE CONTRACT ANNIVERSARY IS $115,000. VALUES PRIOR TO THE CONTRACT ANNIVERSARY:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment THRESHOLD $5,000 $5,000 - 5% of your Payment Base - 5% of your Payment Base LIFETIME BENEFIT PAYMENT N/A N/A GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $110,000 $115,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($115,000) divided by your current the rider charge being taken, or Payment Base ($100,000), less 1 - Your current Payment Base - Resulting in 0.15%, capped at 10%. Subject to minimum of 0% and maximum of 10% THRESHOLD $5,500 $5,750 - 5% of your Payment Base - 5% of your Payment Base GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 17: ASSUME THE SAME FACTS AS EXAMPLE 2 (JOINT/SPOUSAL). NOW ASSUME YOU HAVE REACHED YOUR FIRST CONTRACT ANNIVERSARY. YOUR CONTRACT VALUE ON THE ANNIVERSARY IS $115,000. VALUES PRIOR TO THE CONTRACT ANNIVERSARY:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment THRESHOLD $4,500 $4,500 - 4.5% of your Payment Base - 4.5% of your Payment Base LIFETIME BENEFIT PAYMENT N/A N/A GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - Equal to your initial Premium Payment - Equal to your initial Premium Payment
VALUES AFTER THE CONTRACT ANNIVERSARY: PAYMENT BASE $110,000 $115,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($115,000) divided by your current the rider charge being taken, or Payment Base ($100,000), less 1 - Your current Payment Base - Resulting in 0.15%, capped at 10%. Subject to minimum of 0% and maximum of 10% THRESHOLD $4,950 $5,175 - 4.5% of your Payment Base - 4.5% of your Payment Base GUARANTEED MINIMUM DEATH BENEFIT $100,000 $100,000 - No change due to anniversary processing - No change due to anniversary processing
APP I-29 ------------------------------------------------------------------------------- EXAMPLE 18: SPOUSAL CONTRACT CONTINUATION (SINGLE LIFE) On date of Spousal Contract continuation, we increase the Contract Value to equal the Death Benefit (if greater). For illustration purposes, we will assume the Contract Value on the date of continuation is set equal to the Death Benefit of $150,000 and the Payment Base is $125,000. VALUES UPON SPOUSAL CONTINUATION:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $150,000 $150,000 - Equal to the Contract Value on date of - Equal to Contract Value on date of continuation continuation WITHDRAWAL PERCENTAGE 6% 6% - Withdrawal Percent is set using the - Withdrawal Percent is set using the oldest Covered Life's age on the oldest Covered Life's age on the effective date of continuation effective date of continuation LIFETIME BENEFIT PAYMENT $9,000 $9,000 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by the Payment Base on date of continuation Payment Base on date of continuation GUARANTEED MINIMUM DEATH BENEFIT $150,000 $150,000 - Equal to Contract Value on date of - Equal to Contract Value on date of continuation continuation
EXAMPLE 19: SPOUSAL CONTRACT CONTINUATION (JOINT/SPOUSAL) On date of Spousal Contract continuation, we increase the Contract Value to equal the Death Benefit (if greater). For illustration purposes, we will assume the Contract Value on the date of continuation is set equal to the Death Benefit of $150,000 and the Payment Base is $125,000. VALUES UPON SPOUSAL CONTRACT CONTINUATION:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $150,000 $150,000 - Greater of Contract Value or Payment - Greater of Contract Value or Payment Base on date of continuation Base on date of continuation WITHDRAWAL PERCENTAGE 5.5% 5.5% - Withdrawal Percent is set using the - Withdrawal Percent is set using the oldest Covered Life's age on the oldest Covered Life's age on the effective date of continuation effective date of continuation LIFETIME BENEFIT PAYMENT $8,250 $8,250 - Withdrawal Percent multiplied by the - Withdrawal Percent multiplied by greater of the Contract Value or Payment Payment Base on date of continuation Base on date of continuation GUARANTEED MINIMUM DEATH BENEFIT $150,000 $150,000 - Equal to Contract Value on date of - Equal to Contract Value on date of continuation continuation
APP I-30 ------------------------------------------------------------------------------- EXAMPLE 20: WITHDRAWAL PERCENT INCREASE; ASSUME THE SAME CONTRACT ISSUE FACTS AS EXAMPLE 4 (SINGLE LIFE). YOUR WITHDRAWAL PERCENT IS 6%, WHICH WAS BASED ON YOUR AGE (70) AT THE TIME OF FIRST WITHDRAWAL. YOUR LIFETIME BENEFIT PAYMENT PRIOR TO THE CONTRACT ANNIVERSARY IS $6,300. YOU ARE NOW AGE 75 AND YOUR ANNIVERSARY IS BEING PROCESSED. YOUR CONTRACT VALUE ON ANNIVERSARY IS $117,000. VALUES PRIOR TO THE ANNIVERSARY:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $105,000 $105,000 WITHDRAWAL PERCENT 6% 6% LIFETIME BENEFIT PAYMENT $6,300 $6,300 GUARANTEED MINIMUM DEATH BENEFIT $94,000 $94,000
VALUES AFTER THE ANNIVERSARY PROCESSING:
THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME FEATURE BUILDER SELECTS BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------- PAYMENT BASE $115,500 $117,000 - The ratio is the Contract Value - Greater of the Contract Value prior to ($117,000) divided by your current the rider charge being taken, or Payment Base ($105,000), less 1 - Your current Payment Base - Resulting in 0.11%, capped at 10%. Subject to minimum of 0% and maximum of 10% WITHDRAWAL PERCENT 6.5% 6.5% - Due to the automatic increase and - Due to the automatic increase and client reaching a new age band, the client reaching a new age band, the Withdrawal Percent has increased Withdrawal Percent has increased LIFETIME BENEFIT PAYMENT $7,507.50 $7,605 RIDER CHARGE $635.25 $760.50 - Rider charge of 0.55% multiplied by - Rider charge of 0.65% multiplied by your current Payment Base your current Payment Base GUARANTEED MINIMUM DEATH BENEFIT $94,000 $94,000 - No change due to anniversary processing - No change due to anniversary processing
EXAMPLE 21 Assume the following Contract values: Contract Value = $3,000 Lifetime Benefit Payment = $2,000 Client takes a partial Surrender of $2,000 (within rider limit) New Contract Value = $1,000 - Minimum Amount Rule is reached as remaining Contract Value is reduced below one Lifetime Benefit Payment and the Partial Surrender was within the rider limit - Contract Value is transferred to approved investment program - We will no longer accept subsequent Premium Payments - We will begin to automatically pay the annual Lifetime Benefit Payment via the Automatic Income Program. The Lifetime Benefit Payment will be paid out of our General Account - The payout of the Lifetime Benefit Payment will no longer reduce the Contract Value, however, the Death Benefit will continue to be reduced - We will waive the Annual Maintenance Fee and rider fee - Benefit Increases will no longer be applied NOTE: If the Contract Value is reduced below one Lifetime Benefit Payment on any Contract Anniversary due to performance the above scenario would occur. APP I-31 ------------------------------------------------------------------------------- EXAMPLE 22 Assume the following Contract values: Contract Value = $3,000 Lifetime Benefit Payment = $2,000 Client takes a partial Surrender of $2,800 (exceeds rider limit) New Contract Value = $200 - Minimum Account Rule is reached as remaining Contract Value is reduced below the Minimum Account Rule under the contract, $500 (varies by state) and the Partial Surrender exceeded the rider limit - Contract is fully liquidated MAV PLUS EXAMPLE 1 Assume that: - You elected the MAV Plus Death Benefit when you purchased your Contract with the Premium Security Death Benefit, - You made a single Premium Payment of $100,000, - In your fourth Contract Year, you made a withdrawal of $8,000, - Your Contract Value in your fourth Contract Year immediately before your withdrawal was $109,273, - On the day we receive proof of Death, your Contract Value was $117,403, - Your Maximum Anniversary Value was $106,000, - The Contract Value on the date we calculate the Death Benefit plus 40% of the Contract gain was greater than the Premium Security Death Benefit, your adjusted total Premium Payments, and your Maximum Anniversary Value. ADJUSTMENT FOR PARTIAL SURRENDERS FOR EARNINGS PROTECTION BENEFIT To calculate the Earnings Protection Benefit, we make an adjustment for partial Surrenders if the amount of a Surrender is greater than the Contract gain in the Contract immediately prior to the Surrender. To determine if the partial Surrender is greater than the Contract gain: - We determine Contract gain by subtracting the Contract Value on the date you added the MAV Plus Death Benefit from the Contract Value immediately before the partial surrender, then deduct any premium payments and add any adjustments for partial Surrenders made during that time [$109,273 - $100,000 - $0 + $0 = $9,273]. Since the Contract gain at the time of partial Surrender [$9,273] exceeds the partial Surrender [$8,000], there is no adjustment for the partial Surrender in this case. CALCULATION OF CONTRACT GAIN We would calculate the Contract gain as follows: - Contract Value on the day we receive proof of Death [$117,403], - Subtract the Contract Value on the date the MAV Plus Death Benefit was added to your Contract [$100,000], - Add any adjustments for partial Surrenders [$0], So the Contract gain equals $17,403. CALCULATION OF EARNINGS PROTECTION BENEFIT CAP To determine if the cap applies: - We calculate the Contract Value on the date the MAV Plus Death Benefit was added to your Contract ($100,000), - plus Premium Payments made since that date excluding Premium Payments made in the 12 months prior to death ($0), - minus any adjustments for partial Surrenders ($0), Which equals $100,000. The cap is 200% of $100,000, which is $200,000. MAV PLUS DEATH BENEFIT AMOUNT IS $106,000. (See Example 1 under Premium Security Death Benefit for details of calculation.) ADJUSTED TOTAL PREMIUM PAYMENT AMOUNT IS $92,000. (See Example 1 under MAV PLUS/EPB Death Benefit for details of calculation.) APP I-32 ------------------------------------------------------------------------------- MAV PLUS DEATH BENEFIT In this situation the cap does not apply, so we take the Contract Value on the date we receive proof of death and adds 40% of gain [$117,403 + 40% (17,403)] which totals $124,364. This is the greatest of the four values compared, and so is the Death Benefit. EXAMPLE 2 Assume that: - You elected the MAV Plus Death Benefit when you purchased your Contract with the Premium Security Death Benefit, - You made a single Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $60,000, - Your Contract Value in the fourth year immediately before your Surrender was $150,000, - Your Maximum Anniversary Value is $83,571 (based on an adjustment to an anniversary value that was $140,000 before the partial Surrender (see below)), - On the day we receive proof of Death, your Contract Value was $120,000, - The Contract Value on the date we calculate the Death Benefit plus 40% of the Contract gain was the greatest of the Death Benefit calculations. ADJUSTMENT FOR PARTIAL SURRENDERS To calculate the Earnings Protection Benefit, we make an adjustment for partial Surrenders if the amount of a Surrender is greater than the Contract gain in the Contract immediately prior to the Surrender. To determine if the partial Surrender is greater than the Contract gain: - We determine Contract gain by subtracting the Contract Value on the date you added the MAV Plus Death Benefit from the Contract Value immediately before the partial surrender, then deduct any premium payments and add any adjustments for partial Surrenders made during that time [$150,000 - $100,000 - $0 + $0 = $50,000]. Since the partial Surrender [$60,000] exceeds the Contract gain at the time of partial Surrender [$50,000], the adjustment for the partial Surrender is the difference, or $10,000. CALCULATION OF CONTRACT GAIN We would calculate the Contract gain as follows: - Contract Value on the day we receive proof of Death [$120,000], - Subtract the Contract Value on the date the MAV Plus Death Benefit was added to your Contract [$100,000], - Add any adjustments for partial Surrenders [$10,000], So the Contract gain equals $30,000. CALCULATION OF EARNINGS PROTECTION BENEFIT CAP To determine if the cap applies: - We calculate the Contract Value on the date the MAV Plus Death Benefit was added to your Contract ($100,000), - plus Premium Payments made since that date excluding Premium Payments made in the 12 months prior to death ($0), - minus any adjustments for partial Surrenders ($10,000), Which equals $90,000. The cap is 200% of $90,000, which is $180,000. ADJUSTMENT FOR PARTIAL SURRENDERS FOR MAXIMUM ANNIVERSARY VALUE The adjustment to your Maximum Anniversary Value for partial Surrenders is on a dollar for dollar basis up to 10% of total Premium Payments. 10% of Premium Payments is $10,000. Maximum Anniversary Value adjusted for dollar for dollar Surrenders is $140,000 - $10,000 = $130,000. Remaining Surrenders equal $50,000. This amount will reduce the Maximum Anniversary Value proportionally. Contract Value immediately before Surrender is $150,000 minus $10,000 = $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $130,000. The result is an adjusted Maximum Anniversary Value of $83,571. DEATH BENEFIT WITH EARNINGS PROTECTION BENEFIT In this situation the cap does not apply, so we take 40% of Contract gain on the day we receive proof of death $30,000 or $12,000 and add that to the Contract Value on the date we receive proof of death. Therefore, the Earnings Protection Benefit is [40% ($30,000) + $120,000], which equals $132,000. APP II-1 ------------------------------------------------------------------------------- APPENDIX II -- ACCUMULATION UNIT VALUES The following information should be read in conjunction with the financial statements for the Separate Account included in the Statement of Additional Information. There are several classes of Accumulation Unit Values under the Contract depending on the number of optional benefits you select. The table below shows only the highest and lowest possible Accumulation Unit Value, assuming you select no optional benefits or assuming you select all optional benefits. A table showing all classes of Accumulation Unit Values corresponding to all combinations of optional benefits is shown in the Statement of Additional Information, which you may obtain free of charge by contacting us. HARTFORD LIFE INSURANCE COMPANY:
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- AIM V.I. BASIC VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.515 $1.332 Accumulation Unit Value at end of period $1.518 $1.515 Number of Accumulation Units outstanding at end of period (in thousands) 4,128 4,027 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.453 $1.282 Accumulation Unit Value at end of period $1.444 $1.453 Number of Accumulation Units outstanding at end of period (in thousands) 3,823 4,001 AIM V.I. CAPITAL APPRECIATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.419 $1.275 Accumulation Unit Value at end of period $1.568 $1.419 Number of Accumulation Units outstanding at end of period (in thousands) 2,046 1,892 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.361 $1.227 Accumulation Unit Value at end of period $1.492 $1.361 Number of Accumulation Units outstanding at end of period (in thousands) 1,435 1,311 AIM V.I. CAPITAL DEVELOPMENT FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.553 -- (a) Accumulation Unit Value at end of period $9.789 -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.542 -- (a) Accumulation Unit Value at end of period $9.767 -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- AIM V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.863 $10.649 Accumulation Unit Value at end of period $12.654 $11.863 Number of Accumulation Units outstanding at end of period (in thousands) 1,035 1,101 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.690 $10.525 Accumulation Unit Value at end of period $12.370 $11.690 Number of Accumulation Units outstanding at end of period (in thousands) 964 1,006 AIM V.I. GOVERNMENT SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $1.097 Accumulation Unit Value at end of period $1.174 $1.119 Number of Accumulation Units outstanding at end of period (in thousands) 53,104 29,884 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.073 $1.055 Accumulation Unit Value at end of period $1.117 $1.073 Number of Accumulation Units outstanding at end of period (in thousands) 20,812 18,954
APP II-2 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.102 $1.814 Accumulation Unit Value at end of period $2.379 $2.102 Number of Accumulation Units outstanding at end of period (in thousands) 7,270 2,232 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.016 $1.746 Accumulation Unit Value at end of period $2.264 $2.016 Number of Accumulation Units outstanding at end of period (in thousands) 1,498 1,243 AIM V.I. LARGE CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.474 $10.414 Accumulation Unit Value at end of period $13.091 $11.474 Number of Accumulation Units outstanding at end of period (in thousands) 160 94 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.307 $10.293 Accumulation Unit Value at end of period $12.797 $11.307 Number of Accumulation Units outstanding at end of period (in thousands) 128 127 AIM V.I. MID CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.663 $1.495 Accumulation Unit Value at end of period $1.797 $1.663 Number of Accumulation Units outstanding at end of period (in thousands) 6,210 4,974 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.595 $1.438 Accumulation Unit Value at end of period $1.710 $1.595 Number of Accumulation Units outstanding at end of period (in thousands) 4,572 4,515 AIM V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.394 $12.905 Accumulation Unit Value at end of period $14.937 $14.394 Number of Accumulation Units outstanding at end of period (in thousands) 407 134 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.029 $12.617 Accumulation Unit Value at end of period $14.443 $14.029 Number of Accumulation Units outstanding at end of period (in thousands) 156 109 AMERICAN FUNDS ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.608 $13.529 Accumulation Unit Value at end of period $15.357 $14.608 Number of Accumulation Units outstanding at end of period (in thousands) 4,853 4,018 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.820 $11.909 Accumulation Unit Value at end of period $13.369 $12.820 Number of Accumulation Units outstanding at end of period (in thousands) 2,392 2,550 AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.222 $1.090 Accumulation Unit Value at end of period $1.230 $1.222 Number of Accumulation Units outstanding at end of period (in thousands) 21,965 16,908 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.170 $1.047 Accumulation Unit Value at end of period $1.169 $1.170 Number of Accumulation Units outstanding at end of period (in thousands) 11,387 10,568
APP II-3 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- AMERICAN FUNDS BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.281 $13.769 Accumulation Unit Value at end of period $14.558 $14.281 Number of Accumulation Units outstanding at end of period (in thousands) 4,138 2,781 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.371 $12.931 Accumulation Unit Value at end of period $13.522 $13.371 Number of Accumulation Units outstanding at end of period (in thousands) 1,470 1,363 AMERICAN FUNDS GLOBAL BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.207 $10.028 Accumulation Unit Value at end of period $10.999 $10.207 Number of Accumulation Units outstanding at end of period (in thousands) 709 79 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.187 $10.021 Accumulation Unit Value at end of period $10.890 $10.187 Number of Accumulation Units outstanding at end of period (in thousands) 109 29 AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.921 $9.653 Accumulation Unit Value at end of period $12.140 $10.921 Number of Accumulation Units outstanding at end of period (in thousands) 2,980 885 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.856 $9.625 Accumulation Unit Value at end of period $11.972 $10.856 Number of Accumulation Units outstanding at end of period (in thousands) 308 154 AMERICAN FUNDS GLOBAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.715 $14.005 Accumulation Unit Value at end of period $17.807 $15.715 Number of Accumulation Units outstanding at end of period (in thousands) 1,326 866 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.135 $13.529 Accumulation Unit Value at end of period $17.012 $15.135 Number of Accumulation Units outstanding at end of period (in thousands) 463 421 AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.960 $17.270 Accumulation Unit Value at end of period $23.912 $19.960 Number of Accumulation Units outstanding at end of period (in thousands) 902 659 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.241 $17.566 Accumulation Unit Value at end of period $24.055 $20.241 Number of Accumulation Units outstanding at end of period (in thousands) 414 418 AMERICAN FUNDS GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.955 $13.663 Accumulation Unit Value at end of period $16.576 $14.955 Number of Accumulation Units outstanding at end of period (in thousands) 12,565 8,039 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.770 $12.619 Accumulation Unit Value at end of period $15.142 $13.770 Number of Accumulation Units outstanding at end of period (in thousands) 4,458 4,490
APP II-4 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- AMERICAN FUNDS GROWTH-INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.692 $14.089 Accumulation Unit Value at end of period $16.262 $15.692 Number of Accumulation Units outstanding at end of period (in thousands) 11,554 7,464 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.352 $12.025 Accumulation Unit Value at end of period $13.727 $13.352 Number of Accumulation Units outstanding at end of period (in thousands) 4,830 4,880 AMERICAN FUNDS INTERNATIONAL FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.583 $14.249 Accumulation Unit Value at end of period $18.452 $15.583 Number of Accumulation Units outstanding at end of period (in thousands) 3,850 2,766 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.670 $14.373 Accumulation Unit Value at end of period $18.408 $15.670 Number of Accumulation Units outstanding at end of period (in thousands) 1,204 1,268 AMERICAN FUNDS NEW WORLD FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.315 $19.942 Accumulation Unit Value at end of period $30.412 $23.315 Number of Accumulation Units outstanding at end of period (in thousands) 775 471 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $21.039 $18.050 Accumulation Unit Value at end of period $27.225 $21.039 Number of Accumulation Units outstanding at end of period (in thousands) 218 172 FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.878 $10.070 Accumulation Unit Value at end of period $12.269 $10.878 Number of Accumulation Units outstanding at end of period (in thousands) 461 313 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.719 $9.954 Accumulation Unit Value at end of period $11.994 $10.719 Number of Accumulation Units outstanding at end of period (in thousands) 99 82 FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.791 $14.629 Accumulation Unit Value at end of period $16.165 $15.791 Number of Accumulation Units outstanding at end of period (in thousands) 20,982 13,732 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.211 $14.134 Accumulation Unit Value at end of period $15.446 $15.211 Number of Accumulation Units outstanding at end of period (in thousands) 3,505 3,535 FRANKLIN LARGE CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.066 $10.796 Accumulation Unit Value at end of period $12.646 $12.066 Number of Accumulation Units outstanding at end of period (in thousands) 1,112 895 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.622 $10.430 Accumulation Unit Value at end of period $12.084 $11.622 Number of Accumulation Units outstanding at end of period (in thousands) 651 616
APP II-5 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- FRANKLIN LARGE CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.824 $10.571 Accumulation Unit Value at end of period $11.634 $11.824 Number of Accumulation Units outstanding at end of period (in thousands) 170 93 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.651 $10.449 Accumulation Unit Value at end of period $11.374 $11.651 Number of Accumulation Units outstanding at end of period (in thousands) 31 16 FRANKLIN RISING DIVIDENDS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.628 $14.119 Accumulation Unit Value at end of period $15.004 $15.628 Number of Accumulation Units outstanding at end of period (in thousands) 7,350 4,260 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.176 $13.752 Accumulation Unit Value at end of period $14.454 $15.176 Number of Accumulation Units outstanding at end of period (in thousands) 1,354 1,395 FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.254 -- (a) Accumulation Unit Value at end of period $9.253 -- Number of Accumulation Units outstanding at end of period (in thousands) 3 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.243 -- (a) Accumulation Unit Value at end of period $9.233 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.943 $11.599 Accumulation Unit Value at end of period $14.205 $12.943 Number of Accumulation Units outstanding at end of period (in thousands) 969 591 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.920 $11.614 Accumulation Unit Value at end of period $14.067 $12.920 Number of Accumulation Units outstanding at end of period (in thousands) 518 426 FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.961 $15.300 Accumulation Unit Value at end of period $16.724 $15.961 Number of Accumulation Units outstanding at end of period (in thousands) 2,126 1,409 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.835 $14.264 Accumulation Unit Value at end of period $15.420 $14.835 Number of Accumulation Units outstanding at end of period (in thousands) 826 749 HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.129 $1.113 Accumulation Unit Value at end of period $1.169 $1.129 Number of Accumulation Units outstanding at end of period (in thousands) 25,415 16,822 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $1.066 Accumulation Unit Value at end of period $1.107 $1.078 Number of Accumulation Units outstanding at end of period (in thousands) 13,220 5,550
APP II-6 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- MFS(R) CORE EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.139 $8.904 Accumulation Unit Value at end of period $11.119 $10.139 Number of Accumulation Units outstanding at end of period (in thousands) 18 21 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.072 $7.991 Accumulation Unit Value at end of period $9.869 $9.072 Number of Accumulation Units outstanding at end of period (in thousands) 35 32 MFS(R) EMERGING GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.679 $7.650 Accumulation Unit Value at end of period $10.375 $8.679 Number of Accumulation Units outstanding at end of period (in thousands) 195 98 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.179 $7.231 Accumulation Unit Value at end of period $9.700 $8.179 Number of Accumulation Units outstanding at end of period (in thousands) 76 49 MFS(R) GLOBAL EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.420 $14.646 Accumulation Unit Value at end of period $17.689 $16.420 Number of Accumulation Units outstanding at end of period (in thousands) 58 35 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.966 $13.390 Accumulation Unit Value at end of period $15.995 $14.966 Number of Accumulation Units outstanding at end of period (in thousands) 46 32 MFS(R) HIGH INCOME SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.282 $12.513 Accumulation Unit Value at end of period $13.336 $13.282 Number of Accumulation Units outstanding at end of period (in thousands) 835 586 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.321 $11.642 Accumulation Unit Value at end of period $12.272 $12.321 Number of Accumulation Units outstanding at end of period (in thousands) 372 333 MFS(R) INVESTORS GROWTH STOCK SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.871 $7.962 Accumulation Unit Value at end of period $9.746 $8.871 Number of Accumulation Units outstanding at end of period (in thousands) 132 87 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.086 $7.280 Accumulation Unit Value at end of period $8.813 $8.086 Number of Accumulation Units outstanding at end of period (in thousands) 92 62 MFS(R) INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.127 $10.024 Accumulation Unit Value at end of period $12.109 $11.127 Number of Accumulation Units outstanding at end of period (in thousands) 2,802 1,871 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.417 $8.510 Accumulation Unit Value at end of period $10.167 $9.417 Number of Accumulation Units outstanding at end of period (in thousands) 1,220 1,172
APP II-7 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- MFS(R) MID CAP GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.126 $5.444 Accumulation Unit Value at end of period $6.638 $6.126 Number of Accumulation Units outstanding at end of period (in thousands) 495 449 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.832 $5.199 Accumulation Unit Value at end of period $6.269 $5.832 Number of Accumulation Units outstanding at end of period (in thousands) 453 433 MFS(R) NEW DISCOVERY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.233 $12.701 Accumulation Unit Value at end of period $15.407 $15.233 Number of Accumulation Units outstanding at end of period (in thousands) 1,310 909 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.379 $11.189 Accumulation Unit Value at end of period $13.424 $13.379 Number of Accumulation Units outstanding at end of period (in thousands) 495 518 MFS(R) RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $9.991 Accumulation Unit Value at end of period $10.596 $10.307 Number of Accumulation Units outstanding at end of period (in thousands) 641 177 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.158 $9.877 Accumulation Unit Value at end of period $10.361 $10.158 Number of Accumulation Units outstanding at end of period (in thousands) 89 29 MFS(R) RESEARCH INTERNATIONAL SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.847 $13.202 Accumulation Unit Value at end of period $16.527 $14.847 Number of Accumulation Units outstanding at end of period (in thousands) 300 57 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.650 $13.066 Accumulation Unit Value at end of period $16.177 $14.650 Number of Accumulation Units outstanding at end of period (in thousands) 48 13 MFS(R) RESEARCH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.572 $10.310 Accumulation Unit Value at end of period $12.925 $11.572 Number of Accumulation Units outstanding at end of period (in thousands) 32 11 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.403 $10.190 Accumulation Unit Value at end of period $12.634 $11.403 Number of Accumulation Units outstanding at end of period (in thousands) 18 7 MFS(R) TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.523 $14.270 Accumulation Unit Value at end of period $15.960 $15.523 Number of Accumulation Units outstanding at end of period (in thousands) 6,616 3,959 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.773 $12.700 Accumulation Unit Value at end of period $14.048 $13.773 Number of Accumulation Units outstanding at end of period (in thousands) 2,070 1,991
APP II-8 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- MFS(R) VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.453 $15.537 Accumulation Unit Value at end of period $18.581 $17.453 Number of Accumulation Units outstanding at end of period (in thousands) 807 373 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.948 $15.134 Accumulation Unit Value at end of period $17.899 $16.948 Number of Accumulation Units outstanding at end of period (in thousands) 192 225 MORGAN STANLEY -- CAPITAL OPPORTUNITIES PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $4.615 $4.071 Accumulation Unit Value at end of period $5.422 $4.615 Number of Accumulation Units outstanding at end of period (in thousands) 4 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $4.474 $3.959 Accumulation Unit Value at end of period $5.215 $4.474 Number of Accumulation Units outstanding at end of period (in thousands) 3 -- MORGAN STANLEY -- DEVELOPING GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.473 $8.193 Accumulation Unit Value at end of period $11.463 $9.473 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.184 $7.967 Accumulation Unit Value at end of period $11.025 $9.184 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MORGAN STANLEY -- DIVIDEND GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.696 $11.537 Accumulation Unit Value at end of period $13.021 $12.696 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.309 $11.219 Accumulation Unit Value at end of period $12.523 $12.309 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MORGAN STANLEY -- FLEXIBLE INCOME PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.705 $11.344 Accumulation Unit Value at end of period $11.968 $11.705 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.348 $11.031 Accumulation Unit Value at end of period $11.511 $11.348 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MORGAN STANLEY -- FOCUS GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $7.054 $6.279 Accumulation Unit Value at end of period $8.525 $7.054 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.839 $6.106 Accumulation Unit Value at end of period $8.199 $6.839 Number of Accumulation Units outstanding at end of period (in thousands) -- --
APP II-9 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- MORGAN STANLEY -- GLOBAL EQUITY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.928 $9.528 Accumulation Unit Value at end of period $12.523 $10.928 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.595 $9.265 Accumulation Unit Value at end of period $12.044 $10.595 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MUTUAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $20.136 $18.069 Accumulation Unit Value at end of period $22.220 $20.136 Number of Accumulation Units outstanding at end of period (in thousands) 1,814 1,001 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.553 $17.600 Accumulation Unit Value at end of period $21.405 $19.553 Number of Accumulation Units outstanding at end of period (in thousands) 475 489 MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.484 $17.556 Accumulation Unit Value at end of period $19.892 $19.484 Number of Accumulation Units outstanding at end of period (in thousands) 9,553 6,695 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.694 $15.088 Accumulation Unit Value at end of period $16.907 $16.694 Number of Accumulation Units outstanding at end of period (in thousands) 2,134 2,125 TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.737 $20.482 Accumulation Unit Value at end of period $30.230 $23.737 Number of Accumulation Units outstanding at end of period (in thousands) 454 304 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.618 $16.980 Accumulation Unit Value at end of period $24.786 $19.618 Number of Accumulation Units outstanding at end of period (in thousands) 170 165 TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.502 $12.957 Accumulation Unit Value at end of period $16.519 $14.502 Number of Accumulation Units outstanding at end of period (in thousands) 3,379 2,739 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.261 $11.885 Accumulation Unit Value at end of period $14.985 $13.261 Number of Accumulation Units outstanding at end of period (in thousands) 1,495 1,596 TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.068 $15.045 Accumulation Unit Value at end of period $17.234 $17.068 Number of Accumulation Units outstanding at end of period (in thousands) 9,032 6,655 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.227 $13.463 Accumulation Unit Value at end of period $15.252 $15.227 Number of Accumulation Units outstanding at end of period (in thousands) 1,750 1,945
APP II-10 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- VAN KAMPEN -- UIF INTERNATIONAL GROWTH EQUITY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.693 $10.265 Accumulation Unit Value at end of period $13.182 $11.693 Number of Accumulation Units outstanding at end of period (in thousands) 1 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.646 $10.254 Accumulation Unit Value at end of period $13.024 $11.646 Number of Accumulation Units outstanding at end of period (in thousands) -- -- VAN KAMPEN -- UIF U.S. MID CAP VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.012 $11.205 Accumulation Unit Value at end of period $13.831 $13.012 Number of Accumulation Units outstanding at end of period (in thousands) 1 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.822 $11.075 Accumulation Unit Value at end of period $13.521 $12.822 Number of Accumulation Units outstanding at end of period (in thousands) -- -- VAN KAMPEN LIT COMSTOCK PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.983 $15.247 Accumulation Unit Value at end of period $16.365 $16.983 Number of Accumulation Units outstanding at end of period (in thousands) 6 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.582 $14.933 Accumulation Unit Value at end of period $15.852 $16.582 Number of Accumulation Units outstanding at end of period (in thousands) 2 -- VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.034 $15.313 Accumulation Unit Value at end of period $17.230 $17.034 Number of Accumulation Units outstanding at end of period (in thousands) 4 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.514 $14.891 Accumulation Unit Value at end of period $16.571 $16.514 Number of Accumulation Units outstanding at end of period (in thousands) -- --
(a) Inception date November 12, 2007. HARTFORD LIFE AND ANNUITY LIFE INSURANCE COMPANY:
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- AIM V.I. BASIC VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.515 $1.332 Accumulation Unit Value at end of period $1.518 $1.515 Number of Accumulation Units outstanding at end of period (in thousands) 6,608 6,195 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.453 $1.282 Accumulation Unit Value at end of period $1.444 $1.453 Number of Accumulation Units outstanding at end of period (in thousands) 8,096 8,457
APP II-11 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.419 $1.275 Accumulation Unit Value at end of period $1.568 $1.419 Number of Accumulation Units outstanding at end of period (in thousands) 2,809 2,651 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.361 $1.227 Accumulation Unit Value at end of period $1.492 $1.361 Number of Accumulation Units outstanding at end of period (in thousands) 3,914 4,407 AIM V.I. CAPITAL DEVELOPMENT FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.553 -- (a) Accumulation Unit Value at end of period $9.789 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.542 -- (a) Accumulation Unit Value at end of period $9.767 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- AIM V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.863 $10.649 Accumulation Unit Value at end of period $12.654 $11.863 Number of Accumulation Units outstanding at end of period (in thousands) 2,217 2,337 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.690 $10.525 Accumulation Unit Value at end of period $12.370 $11.690 Number of Accumulation Units outstanding at end of period (in thousands) 2,511 2,770 AIM V.I. GOVERNMENT SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $1.097 Accumulation Unit Value at end of period $1.174 $1.119 Number of Accumulation Units outstanding at end of period (in thousands) 73,021 44,385 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.073 $1.055 Accumulation Unit Value at end of period $1.117 $1.073 Number of Accumulation Units outstanding at end of period (in thousands) 42,275 37,566 AIM V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.102 $1.814 Accumulation Unit Value at end of period $2.379 $2.102 Number of Accumulation Units outstanding at end of period (in thousands) 12,825 3,283 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.016 $1.746 Accumulation Unit Value at end of period $2.264 $2.016 Number of Accumulation Units outstanding at end of period (in thousands) 4,062 2,836 AIM V.I. LARGE CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.474 $10.414 Accumulation Unit Value at end of period $13.091 $11.474 Number of Accumulation Units outstanding at end of period (in thousands) 198 166 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.307 $10.293 Accumulation Unit Value at end of period $12.797 $11.307 Number of Accumulation Units outstanding at end of period (in thousands) 266 210
APP II-12 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- AIM V.I. MID CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.663 $1.495 Accumulation Unit Value at end of period $1.797 $1.663 Number of Accumulation Units outstanding at end of period (in thousands) 11,271 8,186 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.595 $1.438 Accumulation Unit Value at end of period $1.710 $1.595 Number of Accumulation Units outstanding at end of period (in thousands) 9,600 9,932 AIM V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.394 $12.905 Accumulation Unit Value at end of period $14.937 $14.394 Number of Accumulation Units outstanding at end of period (in thousands) 837 358 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.029 $12.617 Accumulation Unit Value at end of period $14.443 $14.029 Number of Accumulation Units outstanding at end of period (in thousands) 326 267 AMERICAN FUNDS ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.608 $13.529 Accumulation Unit Value at end of period $15.357 $14.608 Number of Accumulation Units outstanding at end of period (in thousands) 8,860 6,835 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.820 $11.909 Accumulation Unit Value at end of period $13.369 $12.820 Number of Accumulation Units outstanding at end of period (in thousands) 5,087 4,899 AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.222 $1.090 Accumulation Unit Value at end of period $1.230 $1.222 Number of Accumulation Units outstanding at end of period (in thousands) 67,641 55,180 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.170 $1.047 Accumulation Unit Value at end of period $1.169 $1.170 Number of Accumulation Units outstanding at end of period (in thousands) 39,063 40,200 AMERICAN FUNDS BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.281 $13.769 Accumulation Unit Value at end of period $14.558 $14.281 Number of Accumulation Units outstanding at end of period (in thousands) 5,995 3,880 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.371 $12.931 Accumulation Unit Value at end of period $13.522 $13.371 Number of Accumulation Units outstanding at end of period (in thousands) 3,400 3,215 AMERICAN FUNDS GLOBAL BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.207 $10.028 Accumulation Unit Value at end of period $10.999 $10.207 Number of Accumulation Units outstanding at end of period (in thousands) 929 123 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.187 $10.021 Accumulation Unit Value at end of period $10.890 $10.187 Number of Accumulation Units outstanding at end of period (in thousands) 308 48
APP II-13 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.921 $9.653 Accumulation Unit Value at end of period $12.140 $10.921 Number of Accumulation Units outstanding at end of period (in thousands) 7,322 2,278 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.856 $9.625 Accumulation Unit Value at end of period $11.972 $10.856 Number of Accumulation Units outstanding at end of period (in thousands) 1,137 560 AMERICAN FUNDS GLOBAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.715 $14.005 Accumulation Unit Value at end of period $17.807 $15.715 Number of Accumulation Units outstanding at end of period (in thousands) 3,539 2,602 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.135 $13.529 Accumulation Unit Value at end of period $17.012 $15.135 Number of Accumulation Units outstanding at end of period (in thousands) 1,573 1,456 AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.960 $17.270 Accumulation Unit Value at end of period $23.912 $19.960 Number of Accumulation Units outstanding at end of period (in thousands) 2,024 1,410 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.241 $17.566 Accumulation Unit Value at end of period $24.055 $20.241 Number of Accumulation Units outstanding at end of period (in thousands) 1,344 1,225 AMERICAN FUNDS GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.955 $13.663 Accumulation Unit Value at end of period $16.576 $14.955 Number of Accumulation Units outstanding at end of period (in thousands) 21,794 14,681 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.770 $12.619 Accumulation Unit Value at end of period $15.142 $13.770 Number of Accumulation Units outstanding at end of period (in thousands) 12,822 13,143 AMERICAN FUNDS GROWTH-INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.692 $14.089 Accumulation Unit Value at end of period $16.262 $15.692 Number of Accumulation Units outstanding at end of period (in thousands) 22,677 15,912 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.352 $12.025 Accumulation Unit Value at end of period $13.727 $13.352 Number of Accumulation Units outstanding at end of period (in thousands) 14,288 14,895 AMERICAN FUNDS INTERNATIONAL FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.583 $14.249 Accumulation Unit Value at end of period $18.452 $15.583 Number of Accumulation Units outstanding at end of period (in thousands) 6,638 4,853 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.670 $14.373 Accumulation Unit Value at end of period $18.408 $15.670 Number of Accumulation Units outstanding at end of period (in thousands) 3,243 3,210
APP II-14 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- AMERICAN FUNDS NEW WORLD FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.315 $19.942 Accumulation Unit Value at end of period $30.412 $23.315 Number of Accumulation Units outstanding at end of period (in thousands) 1,664 1,045 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $21.039 $18.050 Accumulation Unit Value at end of period $27.225 $21.039 Number of Accumulation Units outstanding at end of period (in thousands) 824 693 FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.878 $10.070 Accumulation Unit Value at end of period $12.269 $10.878 Number of Accumulation Units outstanding at end of period (in thousands) 545 378 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.719 $9.954 Accumulation Unit Value at end of period $11.994 $10.719 Number of Accumulation Units outstanding at end of period (in thousands) 62 50 FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.791 $14.629 Accumulation Unit Value at end of period $16.165 $15.791 Number of Accumulation Units outstanding at end of period (in thousands) 18,719 10,651 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.211 $14.134 Accumulation Unit Value at end of period $15.446 $15.211 Number of Accumulation Units outstanding at end of period (in thousands) 6,167 5,986 FRANKLIN LARGE CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.066 $10.796 Accumulation Unit Value at end of period $12.646 $12.066 Number of Accumulation Units outstanding at end of period (in thousands) 1,911 1,569 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.622 $10.430 Accumulation Unit Value at end of period $12.084 $11.622 Number of Accumulation Units outstanding at end of period (in thousands) 1,362 1,472 FRANKLIN LARGE CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.824 $10.571 Accumulation Unit Value at end of period $11.634 $11.824 Number of Accumulation Units outstanding at end of period (in thousands) 349 185 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.651 $10.449 Accumulation Unit Value at end of period $11.374 $11.651 Number of Accumulation Units outstanding at end of period (in thousands) 99 29 FRANKLIN RISING DIVIDENDS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.628 $14.119 Accumulation Unit Value at end of period $15.004 $15.628 Number of Accumulation Units outstanding at end of period (in thousands) 9,602 5,616 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.176 $13.752 Accumulation Unit Value at end of period $14.454 $15.176 Number of Accumulation Units outstanding at end of period (in thousands) 2,833 3,074
APP II-15 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.254 -- (a) Accumulation Unit Value at end of period $9.253 -- Number of Accumulation Units outstanding at end of period (in thousands) 7 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.243 -- (a) Accumulation Unit Value at end of period $9.233 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.943 $11.599 Accumulation Unit Value at end of period $14.205 $12.943 Number of Accumulation Units outstanding at end of period (in thousands) 1,799 1,096 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.920 $11.614 Accumulation Unit Value at end of period $14.067 $12.920 Number of Accumulation Units outstanding at end of period (in thousands) 1,053 896 FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.961 $15.300 Accumulation Unit Value at end of period $16.724 $15.961 Number of Accumulation Units outstanding at end of period (in thousands) 3,680 2,423 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.835 $14.264 Accumulation Unit Value at end of period $15.420 $14.835 Number of Accumulation Units outstanding at end of period (in thousands) 1,826 1,827 HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.129 $1.113 Accumulation Unit Value at end of period $1.169 $1.129 Number of Accumulation Units outstanding at end of period (in thousands) 36,410 20,188 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $1.066 Accumulation Unit Value at end of period $1.107 $1.078 Number of Accumulation Units outstanding at end of period (in thousands) 28,706 15,931 MFS(R) CORE EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.139 $8.904 Accumulation Unit Value at end of period $11.119 $10.139 Number of Accumulation Units outstanding at end of period (in thousands) 51 61 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.072 $7.991 Accumulation Unit Value at end of period $9.869 $9.072 Number of Accumulation Units outstanding at end of period (in thousands) 91 72 MFS(R) EMERGING GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.679 $7.650 Accumulation Unit Value at end of period $10.375 $8.679 Number of Accumulation Units outstanding at end of period (in thousands) 247 153 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.179 $7.231 Accumulation Unit Value at end of period $9.700 $8.179 Number of Accumulation Units outstanding at end of period (in thousands) 261 189
APP II-16 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- MFS(R) GLOBAL EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.420 $14.646 Accumulation Unit Value at end of period $17.689 $16.420 Number of Accumulation Units outstanding at end of period (in thousands) 156 128 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.966 $13.390 Accumulation Unit Value at end of period $15.995 $14.966 Number of Accumulation Units outstanding at end of period (in thousands) 150 129 MFS(R) HIGH INCOME SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.282 $12.513 Accumulation Unit Value at end of period $13.336 $13.282 Number of Accumulation Units outstanding at end of period (in thousands) 740 617 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.321 $11.642 Accumulation Unit Value at end of period $12.272 $12.321 Number of Accumulation Units outstanding at end of period (in thousands) 597 612 MFS(R) INVESTORS GROWTH STOCK SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.871 $7.962 Accumulation Unit Value at end of period $9.746 $8.871 Number of Accumulation Units outstanding at end of period (in thousands) 268 216 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.086 $7.280 Accumulation Unit Value at end of period $8.813 $8.086 Number of Accumulation Units outstanding at end of period (in thousands) 196 211 MFS(R) INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.127 $10.024 Accumulation Unit Value at end of period $12.109 $11.127 Number of Accumulation Units outstanding at end of period (in thousands) 4,793 3,211 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.417 $8.510 Accumulation Unit Value at end of period $10.167 $9.417 Number of Accumulation Units outstanding at end of period (in thousands) 3,026 3,137 MFS(R) MID CAP GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.126 $5.444 Accumulation Unit Value at end of period $6.638 $6.126 Number of Accumulation Units outstanding at end of period (in thousands) 881 691 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.832 $5.199 Accumulation Unit Value at end of period $6.269 $5.832 Number of Accumulation Units outstanding at end of period (in thousands) 935 985 MFS(R) NEW DISCOVERY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.233 $12.701 Accumulation Unit Value at end of period $15.407 $15.233 Number of Accumulation Units outstanding at end of period (in thousands) 2,453 1,776 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.379 $11.189 Accumulation Unit Value at end of period $13.424 $13.379 Number of Accumulation Units outstanding at end of period (in thousands) 1,256 1,385
APP II-17 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- MFS(R) RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $9.991 Accumulation Unit Value at end of period $10.596 $10.307 Number of Accumulation Units outstanding at end of period (in thousands) 1,186 456 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.158 $9.877 Accumulation Unit Value at end of period $10.361 $10.158 Number of Accumulation Units outstanding at end of period (in thousands) 221 76 MFS(R) RESEARCH INTERNATIONAL SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.847 $13.202 Accumulation Unit Value at end of period $16.527 $14.847 Number of Accumulation Units outstanding at end of period (in thousands) 506 118 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.650 $13.066 Accumulation Unit Value at end of period $16.177 $14.650 Number of Accumulation Units outstanding at end of period (in thousands) 133 58 MFS(R) RESEARCH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.572 $10.310 Accumulation Unit Value at end of period $12.925 $11.572 Number of Accumulation Units outstanding at end of period (in thousands) 368 140 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.403 $10.190 Accumulation Unit Value at end of period $12.634 $11.403 Number of Accumulation Units outstanding at end of period (in thousands) 30 12 MFS(R) TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.523 $14.270 Accumulation Unit Value at end of period $15.960 $15.523 Number of Accumulation Units outstanding at end of period (in thousands) 9,927 6,316 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.773 $12.700 Accumulation Unit Value at end of period $14.048 $13.773 Number of Accumulation Units outstanding at end of period (in thousands) 4,400 4,321 MFS(R) VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.453 $15.537 Accumulation Unit Value at end of period $18.581 $17.453 Number of Accumulation Units outstanding at end of period (in thousands) 1,861 949 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.948 $15.134 Accumulation Unit Value at end of period $17.899 $16.948 Number of Accumulation Units outstanding at end of period (in thousands) 601 499 MORGAN STANLEY -- CAPITAL OPPORTUNITIES PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $4.615 $4.071 Accumulation Unit Value at end of period $5.422 $4.615 Number of Accumulation Units outstanding at end of period (in thousands) 159 70 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $4.474 $3.959 Accumulation Unit Value at end of period $5.215 $4.474 Number of Accumulation Units outstanding at end of period (in thousands) 18 2
APP II-18 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- MORGAN STANLEY -- DEVELOPING GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.473 $8.193 Accumulation Unit Value at end of period $11.463 $9.473 Number of Accumulation Units outstanding at end of period (in thousands) 21 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.184 $7.967 Accumulation Unit Value at end of period $11.025 $9.184 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MORGAN STANLEY -- DIVIDEND GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.696 $11.537 Accumulation Unit Value at end of period $13.021 $12.696 Number of Accumulation Units outstanding at end of period (in thousands) 11 11 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.309 $11.219 Accumulation Unit Value at end of period $12.523 $12.309 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MORGAN STANLEY -- FLEXIBLE INCOME PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.705 $11.344 Accumulation Unit Value at end of period $11.968 $11.705 Number of Accumulation Units outstanding at end of period (in thousands) 30 19 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.348 $11.031 Accumulation Unit Value at end of period $11.511 $11.348 Number of Accumulation Units outstanding at end of period (in thousands) 6 1 MORGAN STANLEY -- FOCUS GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $7.054 $6.279 Accumulation Unit Value at end of period $8.525 $7.054 Number of Accumulation Units outstanding at end of period (in thousands) 35 16 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.839 $6.106 Accumulation Unit Value at end of period $8.199 $6.839 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MORGAN STANLEY -- GLOBAL EQUITY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.928 $9.528 Accumulation Unit Value at end of period $12.523 $10.928 Number of Accumulation Units outstanding at end of period (in thousands) 10 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.595 $9.265 Accumulation Unit Value at end of period $12.044 $10.595 Number of Accumulation Units outstanding at end of period (in thousands) 1 -- MUTUAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $20.136 $18.069 Accumulation Unit Value at end of period $22.220 $20.136 Number of Accumulation Units outstanding at end of period (in thousands) 3,781 2,145 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.553 $17.600 Accumulation Unit Value at end of period $21.405 $19.553 Number of Accumulation Units outstanding at end of period (in thousands) 1,293 1,194
APP II-19 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.484 $17.556 Accumulation Unit Value at end of period $19.892 $19.484 Number of Accumulation Units outstanding at end of period (in thousands) 8,185 5,008 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.694 $15.088 Accumulation Unit Value at end of period $16.907 $16.694 Number of Accumulation Units outstanding at end of period (in thousands) 4,197 4,035 TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.737 $20.482 Accumulation Unit Value at end of period $30.230 $23.737 Number of Accumulation Units outstanding at end of period (in thousands) 817 608 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.618 $16.980 Accumulation Unit Value at end of period $24.786 $19.618 Number of Accumulation Units outstanding at end of period (in thousands) 640 617 TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.502 $12.957 Accumulation Unit Value at end of period $16.519 $14.502 Number of Accumulation Units outstanding at end of period (in thousands) 4,579 3,897 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.261 $11.885 Accumulation Unit Value at end of period $14.985 $13.261 Number of Accumulation Units outstanding at end of period (in thousands) 3,301 3,665 TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.068 $15.045 Accumulation Unit Value at end of period $17.234 $17.068 Number of Accumulation Units outstanding at end of period (in thousands) 6,181 3,876 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.227 $13.463 Accumulation Unit Value at end of period $15.252 $15.227 Number of Accumulation Units outstanding at end of period (in thousands) 2,847 3,021 VAN KAMPEN -- UIF INTERNATIONAL GROWTH EQUITY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.693 $10.265 Accumulation Unit Value at end of period $13.182 $11.693 Number of Accumulation Units outstanding at end of period (in thousands) 3 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.646 $10.254 Accumulation Unit Value at end of period $13.024 $11.646 Number of Accumulation Units outstanding at end of period (in thousands) 2 1 VAN KAMPEN -- UIF U.S. MID CAP VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.012 $11.205 Accumulation Unit Value at end of period $13.831 $13.012 Number of Accumulation Units outstanding at end of period (in thousands) 50 11 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.822 $11.075 Accumulation Unit Value at end of period $13.521 $12.822 Number of Accumulation Units outstanding at end of period (in thousands) 2 1
APP II-20 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- VAN KAMPEN LIT COMSTOCK PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.983 $15.247 Accumulation Unit Value at end of period $16.365 $16.983 Number of Accumulation Units outstanding at end of period (in thousands) 47 18 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.582 $14.933 Accumulation Unit Value at end of period $15.852 $16.582 Number of Accumulation Units outstanding at end of period (in thousands) 5 2 VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.034 $15.313 Accumulation Unit Value at end of period $17.230 $17.034 Number of Accumulation Units outstanding at end of period (in thousands) 142 68 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.514 $14.891 Accumulation Unit Value at end of period $16.571 $16.514 Number of Accumulation Units outstanding at end of period (in thousands) 23 7
(a) Inception date November 12, 2007. APP A-1 -------------------------------------------------------------------------------- APPENDIX A -- PRODUCT COMPARISON INFORMATION In addition to the variable annuity Contract described in this prospectus, we offer other deferred individual variable annuities, each having different sales charges (if any), fees and investment options. The primary differences between the "Director M" and "Leaders" suites of variable annuities we currently offer generally relate to the investment options offered and mortality expense risk charges. We offer three contract variations that have a contingent deferred sales charge (these forms of contract are called "Outlook", "Plus" and our base contract (which does not have a separate marketing name, but is sometimes referred to in this prospectus as the "Core" version)), one contract version has a front end sales charge (called "Edge") and one contract version has no sales charge (called "Access"). We have not included information regarding our Edge Contract because it is offered through a very limited number of Financial Intermediaries. Your Registered Representative can help you decide which contract variation may be appropriate for you based on your individual circumstances, time horizon, policy feature preferences and risk tolerance. You should consider these differences and discuss them with your Registered Representative to choose a variable annuity. Not all forms of contract are offered by all Financial Intermediaries. This Appendix does not constitute, and may not be used for the purposes of making, any offer or solicitation by anyone of any form of variable annuity other than as specifically provided in this prospectus. Presented below are some, but certainly not all, of the differentiating features between our individual deferred variable annuities. The form of Contract you select will be identified on your application and the contract issued to you. Consider the investment objectives, risks, charges and expenses of an investment carefully before investing. Both the variable annuity product and underlying Fund prospectuses contain other information about variable annuities and investment options. Your Registered Representative can provide you with prospectuses or you can contact us to receive one. This and any of the other variable annuities referenced in this Appendix are underwritten and distributed by Hartford Securities Distribution Company, Inc. Member SIPC. Please read the prospectus carefully before investing. I. KEY DIFFERENCES
MINIMUM INITIAL PREMIUM NON- QUALIFIED QUALIFIED CONTRACT CONTRACT CONTRACT SALES CHARGE ---------------------------------------------------------------------------------------- ACCESS $10,000 $2,000 None CORE $1,000 $1,000 Year 1 2 3 4 5 CDSC(2) 7% 7% 7% 6% 5% OUTLOOK $10,000 $2,000 Year 1 2 3 4 5+ CDSC(2) 7% 6% 5% 4% 0% PLUS $10,000 $2,000 Year 1 2 3 4 5 CDSC(2) 8% 8% 8% 8% 7% MORTALITY & MAXIMUM EXPENSE RISK PAYMENT UP-FRONT CONTRACT SALES CHARGE CHARGE(1) ENHANCEMENT COMMISSION -------- ------------------------------------------------------------------------- ACCESS 1.55% No 2% CORE 6 7 8+ 4% 3% 0% 1.15% No 7% OUTLOOK 1.50% No 5.75% PLUS 6 7 8 9+ 6% 5% 4% 0% 1.50% Yes(3) 6.5%
(1) Excluded fees include administrative charges (up to 0.20%), annual maintenance fees (applies to contracts with anniversary/surrender contract values less than $50,000), premium taxes (0 - 3.5%) and optional benefit fees. (2) Each Premium Payment has its own Contingent Deferred Sales Charge (CDSC) schedule. Only amounts invested for less than the requisite holding period are subject to a CDSC. When a CDSC is applicable, only Surrenders in excess of the Annual Withdrawal Amount (AWA) will be subject to a CDSC. After the AWA deduction, surrenders will then be taken first: from earnings, second: from Premium Payments not subject to a CDSC, third: from 10% of Premium Payments still subject to a CDSC, fourth: from Premium Payments subject to a CDSC on a first-in-first-out basis, and fifth: from Payment Enhancements for Plus contracts only. A CDSC will not exceed your total Premium Payments. APP A-2 -------------------------------------------------------------------------------- (3) We add an additional sum to your Account Value equal to 3% of the Premium Payment if cumulative Premium Payments are less than $50,000 or 4% of the Premium Payment if cumulative Premium Payments are more than $50,000. If a subsequent Premium Payment increases cumulative Premium Payments to $50,000 or more, we will credit an additional Payment Enhancement to your Account Value equal to 1% of your Premium Payments. Payment Enhancements will be allocated to the same Accounts and in the same proportion as your Premium Payment. The cost of providing Payment Enhancements is included in the higher Mortality and Expense Risk Charges. Payment Enhancements will be recaptured if you: - Cancel your Contract during any "Free Look" period. - Annuitize your Contract, you will forfeit Payment Enhancements credited in the 24 months prior to the Annuity Commencement Date. - Request a full or partial Surrender under the CDSC exemption applicable when you are a patient in a certified long-term care facility or other eligible facility. THE FOLLOWING SURRENDERS ARE NOT SUBJECT TO A CDSC: - Annual Withdrawal Amount -- During the Contract Years when a CDSC applies, you may take partial Surrenders up to 10% of the total Premium Payments otherwise subject to a CDSC. If you do not take 10% one year, you may not take more than 10% the next year. These amounts are different for group unallocated Contracts and Contracts issued to a Charitable Remainder Trust. - If you are a patient in a certified long-term care facility or other eligible facility -- We will waive any CDSC for a partial or full Surrender if you, the joint Contract Owner or the Annuitant, are confined for at least 180 calendar days to a: - facility recognized as a general hospital by the proper authority of the state in which it is located or the Joint Commission on the Accreditation of Hospitals; - facility certified as a hospital or long-term care facility; or - nursing home licensed by the state in which it is located and offers the services of a registered nurse 24 hours a day. For this waiver to apply, you must: - have owned the Contract continuously since it was issued, - provide written proof of your eligibility satisfactory to us, and - request the Surrender within 91 calendar days of the last day that you are an eligible patient in a recognized facility or nursing home. This waiver is not available if you, the joint Contract Owner or the Annuitant is in a facility or nursing home when you purchase or upgrade the Contract. We will not waive any CDSC applicable to any Premium Payments made while you are in an eligible facility or nursing home. This waiver may not be available in all states. - Upon death of the Annuitant or any Contract Owner(s) -- No CDSC will be deducted if the Annuitant or any Contract Owner(s) dies. - Upon Annuitization -- The CDSC is not deducted when you annuitize the Contract. However, we will charge a CDSC if the Contract is Surrendered during the CDSC period under an Annuity Payout Option which allows Surrenders. - For Required Minimum Distributions -- This allows Annuitants who are age 70 1/2 or older, with a Contract held under an IRA or 403(b) plan, to Surrender an amount equal to the Required Minimum Distribution for the Contract without a CDSC for one year's required minimum distribution for that Contract Year. All requests for Required Minimum Distributions must be in writing. - For substantially equal periodic payments -- We will waive the CDSC if you take partial Surrenders under the Automatic Income Program where you receive a scheduled series of substantially equal periodic payments for the greater of five years or to age 59 1/2. - Upon cancellation during the Right to Cancel Period -- No CDSC will be deducted if you cancel your Contract during the Right to Cancel Period. APP A-3 -------------------------------------------------------------------------------- II. EXAMPLES The following Example is intended to help you compare the cost of investing in any of these forms of contract. The Example uses the same assumptions referenced in Section 2. The data reflected does not take into account Funds available in proprietary versions of our variable annuities. (1) If you Surrender your variable annuity at the end of the applicable time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------- Access $559 $1,782 $2,946 $5,770 Core $1,211 $2,321 $3,225 $5,461 Outlook $1,257 $2,232 $2,924 $5,732 Plus $1,352 $2,510 $3,559 $5,732
(2) If you annuitize at the end of the applicable time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------- Access $ 494 $1,677 $2,841 $5,665 Core $ 453 $1,561 $2,659 $5,356 Outlook $ 489 $1,663 $2,819 $5,627 Plus $ 489 $1,663 $2,819 $5,627
(3) If you do not Surrender your variable annuity:
1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------- Access $ 599 $1,782 $2,946 $5,770 Core $ 558 $1,666 $2,764 $5,461 Outlook $ 594 $1,768 $2,924 $5,732 Plus $ 594 $1,768 $2,924 $5,732
APP A-4 -------------------------------------------------------------------------------- III. INVESTMENT OPTIONS (STANDARD)
INVESTMENT ADVISER/SUB- FUNDING OPTION INVESTMENT OBJECTIVE ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS (1) AIM V.I. Basic Value Fund -- Long-term growth of capital A I M Advisors, Inc. X X X X Series I AIM V.I. Capital Growth of capital A I M Advisors, Inc. X X X X Appreciation Fund -- Series I AIM V.I. Core Equity Fund -- Growth of capital A I M Advisors, Inc. X X X X Series I AIM V.I. Government To achieve a high level of A I M Advisors, Inc. X X X X Securities Fund -- Series I current income consistent with reasonable concern for safety of principal AIM V.I. International To provide long-term growth of A I M Advisors, Inc. X X X X Growth Fund -- Series I capital AIM V.I. Large Cap Growth Long-term growth of capital A I M Advisors, Inc. X X X X Fund -- Series I AIM V.I. Mid Cap Core Equity Long-term growth of capital A I M Advisors, Inc. X X X X Fund -- Series I AIM V.I. Small Cap Equity Long-term growth of capital A I M Advisors, Inc. X X X X Fund -- Series I AMERICAN FUNDS INSURANCE SERIES American Funds Asset High total return, including Capital Research and X X X X Allocation Fund -- Class 2 income and capital gains, Management Company consistent with the preservation of capital over the long term American Funds Blue Chip Produce income exceeding the Capital Research and X X X X Income and Growth Fund -- average yield on U.S. stocks Management Company Class 2 generally (as represented by the average yield on the Standard & Poor's 500 Composite Index) and to provide an opportunity for growth of principal consistent with sound common stock investing American Funds Bond Fund -- High level of current income Capital Research and X X X X Class 2 as is consistent with the Management Company preservation of capital
APP A-5 --------------------------------------------------------------------------------
INVESTMENT ADVISER/SUB- FUNDING OPTION INVESTMENT OBJECTIVE ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- American Funds Global Bond Seeks to provide you, over the Capital Research and X X X X Fund -- Class 2 long term, with a high level Management Company of total return as consistent with prudent management, by investing primarily in investment grade bonds issued by entities based around the world and denominated in various currencies, including U.S. dollars American Funds Global Growth Seeks to make your investment Capital Research and X X X X and Income Fund -- Class 2 grow over time and provide you Management Company with current income by investing primarily in stocks of well-established companies located around the world American Funds Global Growth Seeks to make your investment Capital Research and X X X X Fund -- Class 2 grow over time by investing Management Company primarily in common stocks of companies located around the world American Funds Global Small Seeks to make your investment Capital Research and X X X X Capitalization Fund -- grow over time by investing Management Company Class 2 primarily in stocks of smaller companies located around the world American Funds Growth Fund Seeks to make your investment Capital Research and X X X X -- Class 2 grow by investing primarily in Management Company common stocks of companies that appear to offer superior opportunities for growth of capital American Funds Growth-Income Seeks to make your investment Capital Research and X X X X Fund -- Class 2 grow and provide you with Management Company income over time by investing primarily in common stocks or other securities that demonstrate the potential for appreciation and/or dividends American Funds International Seeks to make your investment Capital Research and X X X X Fund -- Class 2 grow over time by investing Management Company primarily in common stocks of companies located outside the United States American Funds New World Long-term capital appreciation Capital Research and X X X X Fund -- Class 2 Management Company
APP A-6 --------------------------------------------------------------------------------
INVESTMENT ADVISER/SUB- FUNDING OPTION INVESTMENT OBJECTIVE ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST Franklin Flex Cap Growth Capital appreciation Franklin Advisers, Inc. X X X X Securities Fund -- Class 2 Franklin Income Securities Maximize income while Franklin Advisers, Inc. X X X X Fund -- Class 2 maintaining prospects for capital appreciation Franklin Large Cap Growth Capital appreciation Franklin Advisers, Inc. X X X X Securities Fund -- Class 2 Franklin Large Cap Value Long-term capital appreciation Franklin Advisory Services, X X X X Securities Fund -- Class 2 LLC Franklin Rising Dividends Long-term capital appreciation Franklin Advisory Services, X X X X Securities Fund -- Class 2 with preservation of capital LLC as an important consideration Franklin Small-Mid Cap Long-term capital growth Franklin Advisers, Inc. X X X X Growth Securities Fund -- Class 2 (2) Franklin Strategic Income High level of current income, Franklin Advisers, Inc. X X X X Securities Fund -- Class 1 with capital appreciation over the long term as a secondary goal Mutual Discovery Securities Capital appreciation Franklin Mutual Advisers, LLC X X X X Fund -- Class 2 Sub-advised by Franklin Templeton Investment Management Limited Mutual Shares Securities Capital appreciation, with Franklin Mutual Advisers, LLC X X X X Fund -- Class 2 income as a secondary goal Templeton Developing Markets Long-term capital appreciation Templeton Asset Management X X X X Securities Fund -- Class 1 Ltd. Templeton Foreign Securities Long-term capital growth Templeton Investment Counsel, X X X X Fund -- Class 2 LLC Sub-advised by Franklin Templeton Investment Management Limited Templeton Growth Securities Long-term capital growth Templeton Global Advisors X X X X Fund -- Class 2 Limited Sub-advised by Templeton Asset Management Ltd. HARTFORD SERIES FUND, INC. Hartford Money Market HLS Maximum current income HL Investment Advisors, LLC X X X X Fund -- Class IA consistent with liquidity and Sub-advised by Hartford preservation of capital Investment Management Company
APP A-7 --------------------------------------------------------------------------------
INVESTMENT ADVISER/SUB- FUNDING OPTION INVESTMENT OBJECTIVE ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- MFS(R) VARIABLE INSURANCE TRUST MFS(R) Core Equity Series -- Capital appreciation MFS Investment Management(R) X X X X Initial Class (3)+ MFS(R) Emerging Growth Capital appreciation MFS Investment Management(R) X X X X Series -- Initial Class MFS(R) Global Equity Series Capital appreciation MFS Investment Management(R) X X X X -- Initial Class MFS(R) High Income Series -- Total return with an emphasis MFS Investment Management(R) X X X X Initial Class on high current income, but also considering capital appreciation MFS(R) Investors Growth Capital appreciation MFS Investment Management(R) X X X X Stock Series -- Initial Class MFS(R) Investors Trust Capital appreciation MFS Investment Management(R) X X X X Series -- Initial Class MFS(R) Mid Cap Growth Series Capital appreciation MFS Investment Management(R) X X X X -- Initial Class MFS(R) New Discovery Series Capital appreciation MFS Investment Management(R) X X X X -- Initial Class MFS(R) Research Bond Series Total return with an emphasis MFS Investment Management(R) X X X X -- Initial Class on current income, but also considering capital appreciation MFS(R) Research Capital appreciation MFS Investment Management(R) X X X X International Series -- Initial Class MFS(R) Research Series -- Capital appreciation MFS Investment Management(R) X X X X Initial Class MFS(R) Total Return Series Total return MFS Investment Management(R) X X X X -- Initial Class MFS(R) Value Series -- Capital appreciation MFS Investment Management(R) X X X X Initial Class
+ Closed to Contracts issued on or after May 2, 2005. NOTES (1) Formerly AIM Variable Insurance Funds, Inc. (2) Formerly Franklin Small Cap Fund. (3) Formerly MFS(R) Capital Opportunities Series -- Initial Class. APP A-8 -------------------------------------------------------------------------------- IV. INVESTMENT OPTIONS (PROPRIETARY)
INVESTMENT ADVISER/SUB- FUNDING OPTION INVESTMENT OBJECTIVE ADVISER CORE ACCESS PLUS OUTLOOK --------------------------------------------------------------------------------------------------------------------------------- MORGAN STANLEY SELECT DIMENSIONS INVESTMENT SERIES Morgan Stanley -- Capital Long-term capital growth Morgan Stanley Investment X X Opportunities Portfolio -- Advisors Inc. Class Y Morgan Stanley -- Mid Cap Long-term capital growth Morgan Stanley Investment X X Growth Portfolio -- Class Y Advisors Inc. (1) Morgan Stanley -- Dividend Reasonable current income and Morgan Stanley Investment X X Growth Portfolio -- Class Y long-term growth of income and Advisors Inc. capital Morgan Stanley -- Flexible High level of current income. Morgan Stanley Investment X X Income Portfolio -- Class Y A secondary objective is to Advisors Inc. maximize total return, but only to the extent consistent with primary objective Morgan Stanley -- Focus Long-term capital growth Morgan Stanley Investment X X Growth Portfolio -- Class Y consistent with an effort to Advisors Inc. (2) reduce volatility Morgan Stanley -- Global Total return through long- Morgan Stanley Investment X X Equity Portfolio -- Class Y term capital growth and to a Advisors Inc. lesser extent from income THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Van Kampen -- UIF Long-term capital Morgan Stanley Investment X X International Growth Equity appreciation, with a secondary Management Inc. Portfolio -- Class II objective of income Van Kampen -- UIF U.S. Mid Above-average total return Morgan Stanley Investment X X Cap Value Portfolio -- over a market cycle of three Management Inc. Class II to five years by investing primarily in common stocks and other equity securities VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Comstock Capital growth and income Van Kampen Asset Management X X Portfolio -- Class II through investments in equity securities, including common stocks, preferred stocks and securities convertible into common and preferred stocks Van Kampen LIT Growth and Long-term growth of capital Van Kampen Asset Management X X Income Portfolio -- Class and income II
NOTES (1) Formerly Morgan Stanley -- Developing Growth Portfolio -- Class Y. (2) Formerly Morgan Stanley -- American Opportunities Portfolio -- Class Y. APP B-1 -------------------------------------------------------------------------------- APPENDIX B -- OPTIONAL BENEFITS COMPARISONS
THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME FEATURES FOUNDATION BUILDER II BUILDER SELECTS / PORTFOLIOS BUILDER -------------------------------------------------------------------------------------------------------------------- OBJECTIVES Guaranteed income - Guaranteed income THE HARTFORD'S LIFETIME - Guaranteed income for life for life INCOME BUILDER SELECTS: for life or a set - Potential - Guaranteed income for life time period automatic annual - Potential automatic annual - Potential Payment Base Payment Base increases automatic annual increases (0 - 10%) Benefit Amount (0 - 10%) THE HARTFORD'S LIFETIME increases INCOME BUILDER PORTFOLIOS: (0 - 10%) - Guaranteed income for life - Potential automatic annual Payment Base adjustment DEATH BENEFIT - Greater of Same as The Same as The Hartford's - Greater of Contract Value or Hartford's Lifetime Lifetime Income Foundation Contract Value or Premium Payments Income Foundation for both options Benefit Amount adjusted for partial - Replaces the Surrenders standard Death - Replaces the Benefit standard Death - MAV Plus (MAV Benefit only) may be - MAV Plus (MAV purchased with this only) may be rider purchased with this rider AVAILABILITY - Available at Same as The - Available at Contract - Available at Contract issue only Hartford's Lifetime issue only Contract issue only - Available subject Income Foundation - Available subject to state - Closed to new to state approval approval investors - No longer available if The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios are approved in your state MAXIMUM ISSUE AGE Qualified, Qualified, Qualified, Non-Qualified Qualified, Non-Qualified Non-Qualified maximum issue age is 80 for Non-Qualified maximum issue age is maximum issue age is any Covered Life and maximum issue age is 80 for any Covered 75 for any Covered Annuitant 75 Life and Annuitant Life and Annuitant. (owner(s)/annuitant) REVOCABILITY - Only the Lifetime - Irrevocable FOR BOTH OPTIONS: - Irrevocable Withdrawal Feature - We may terminate - Irrevocable - We may terminate is revocable by the Rider upon Owner - We may terminate the Rider the Rider upon Owner client, revocation default upon Owner default default can be requested in writing anytime after the 5th Contract Year or upon Spousal Contract Continuation - We may terminate the Rider upon Owner default
APP B-2 --------------------------------------------------------------------------------
THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME FEATURES FOUNDATION BUILDER II BUILDER SELECTS / PORTFOLIOS BUILDER -------------------------------------------------------------------------------------------------------------------- RIDER COMPATIBILITY Cannot be elected Cannot be elected THE HARTFORD'S LIFETIME Cannot be elected with any of the with any of the INCOME BUILDER SELECTS: with any of the following: following: Cannot be elected with any following: - The Hartford's - The Hartford's of the following: - The Hartford's Principal First Principal First - The Hartford's Principal Principal First - The Hartford's - The Hartford's First - The Hartford's Principal First Principal First - The Hartford's Principal Principal First Preferred Preferred First Preferred Preferred - The Hartford's - The Hartford's - The Hartford's Lifetime - The Hartford's Lifetime Income Lifetime Income Income Foundation Lifetime Income Builder I Builder - The Hartford's Lifetime Builder II - The Hartford's - The Hartford's Income Builder II - The Hartford's Lifetime Income Lifetime Income - The Hartford's Lifetime Lifetime Income Builder II Foundation Income Builder Foundation - The Hartford's - The Hartford's Portfolios - The Hartford's Lifetime Income Lifetime Income THE HARTFORD'S LIFETIME Lifetime Income Builder Selects Builder Selects INCOME BUILDER PORTFOLIOS: Builder Selects - The Hartford's - The Hartford's Cannot be elected with any - The Hartford's Lifetime Income Lifetime Income of the following: Lifetime Income Builder Portfolios Builder Portfolios - The Hartford's Principal Builder Portfolios First - The Hartford's Principal First Preferred - The Hartford's Lifetime Income Foundation - The Hartford's Lifetime Income Builder II - The Hartford's Lifetime Income Builder Selects - The Hartford's Lifetime Income Builder Portfolios
APP B-3 --------------------------------------------------------------------------------
THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME FEATURES FOUNDATION BUILDER II BUILDER SELECTS / PORTFOLIOS BUILDER -------------------------------------------------------------------------------------------------------------------- ADDITIONAL CHARGE 0.30% (30 bps) of - 0.40% (40 bps) of THE HARTFORD'S LIFETIME - 0.40% (40 bps) of the Payment Base the Payment Base INCOME BUILDER SELECTS: the Benefit Amount charged annually on charged annually on - 0.55% of the Payment Base charged annually on each Contract the Contract charged annually on the the contract Anniversary (flat Anniversary (flat Contract Anniversary (flat anniversary (flat dollar) dollar) dollar) dollar) - Can increase the - Can increase the fee on or - Can increase the fee on or after the after 12 months from the fee on or after the 5th anniversary from rider effective date or upon 5th contract the rider effective Covered Life changes anniversary and then date and then every - Maximum charge of 1.50% every 5 years 5 years thereafter THE HARTFORD'S LIFETIME thereafter only if or upon Covered Life INCOME BUILDER PORTFOLIOS: annual Benefit changes - 0.65% of the Payment Base Amount increases - Maximum charge of charged annually on the elected 0.75% Contract Anniversary (flat - Maximum charge of dollar) 0.75% - Can increase the fee on or after 12 months from the rider effective date or upon Covered Life changes - Maximum charge of 1.50% BENEFIT AMOUNT Not applicable Not applicable Not applicable 100% of Premium Payment when added at issue
APP B-4 --------------------------------------------------------------------------------
THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME FEATURES FOUNDATION BUILDER II BUILDER SELECTS / PORTFOLIOS BUILDER -------------------------------------------------------------------------------------------------------------------- PAYMENT BASE 100% of Premium 100% of Premium BOTH OPTIONS: Not applicable Payment when added Payment when added 100% of Premium Payment plus at issue at issue any Payment Enhancements (Plus Contracts) when added at issue. WITHDRAWAL - Varies based on: Same as The BOTH OPTIONS: Not applicable PERCENTAGE - attained age of Hartford's Lifetime - Varies based on: Relevant Covered Income Foundation - attained age of Relevant Life Covered Life - survivor option - survivor option chosen chosen - Withdrawal Percent for - date of first Single Life Option starts at partial Surrender 5% and increases by 0.5% for - Withdrawal Percent every 5 year increment for Single Life between the Relevant Covered Option starts at 5% Life's attained ages 60 - 80 and increases by - Withdrawal Percent for 0.5% for every 5 Joint/Spousal Life Option year increment starts at 4.5% and increases between the Relevant by 0.5% for every 5 year Covered Life's increment between the attained ages 60 - Relevant Covered Life's 80 attained ages 60 - 80 - Withdrawal Percent - The Withdrawal Percent for Joint/Spousal will be set at the time of Life Option starts the first partial Surrender at 4.5% and and is based on the attained increases by 0.5% age of the Relevant Covered for every 5 year Life increment between - Potential to increase the Relevant Covered Withdrawal Percent if a new Life's attained ages age band is reached and 60 - 80 there is an automatic - The Withdrawal Payment Base Increase on the Percent will be set anniversary. at the time of the first partial Surrender and is based on the attained age of the Relevant Covered Life
APP B-5 --------------------------------------------------------------------------------
THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME FEATURES FOUNDATION BUILDER II BUILDER SELECTS / PORTFOLIOS BUILDER -------------------------------------------------------------------------------------------------------------------- ANNUAL AMOUNT PRIOR TO AN ELIGIBLE Same as The THE HARTFORD'S LIFETIME PRIOR TO OWNER'S AVAILABLE FOR WITHDRAWAL YEAR: Hartford's Lifetime INCOME BUILDER SELECTS: 60TH BIRTHDAY: SURRENDER Partial Income Foundation PRIOR TO THE LIFETIME INCOME Benefit Payments Surrenders(1) equal ELIGIBILITY DATE: equal 5% multiplied either: Partial Surrenders (1) equal by the Benefit SINGLE LIFE OPTION either: Amount -- 5% multiplied by SINGLE LIFE OPTION -- 5% CONTRACT the greater of multiplied by the greater of ANNIVERSARIES Payment Base or Payment Base or Contract IMMEDIATELY Contract Value (on Value (on the Contract FOLLOWING THE the Contract Anniversary) OWNER'S 60TH Anniversary) JOINT/SPOUSAL OPTION -- 4.5% BIRTHDAY -- ONLY IF JOINT/SPOUSAL OPTION multiplied by the greater of ELECTED: Lifetime -- 4.5% multiplied Payment Base or Contract Benefit Payments(2) by the greater of Value (on the Contract equal 5% of the Payment Base or Anniversary) Benefit Amount Contract Value (on ON OR AFTER THE LIFETIME the Contract INCOME ELIGIBILITY DATE: Anniversary) Lifetime Benefit Payments DURING AN ELIGIBLE equal applicable Withdrawal WITHDRAWAL YEAR: Percent (varies by option Lifetime Benefit elected, Single Life vs. Payments equal Joint/ Spousal) multiplied applicable by the greater of Payment Withdrawal Percent Base or Contract Value (on (varies by option the Contract Anniversary) elected, Single Life THE HARTFORD'S LIFETIME vs. Joint/ Spousal) INCOME BUILDER PORTFOLIOS: multiplied by the PRIOR TO THE LIFETIME INCOME greater of Payment ELIGIBILITY DATE: Base or Contract Partial Surrenders (1) equal Value (on the either: Contract SINGLE LIFE OPTION -- 5% Anniversary) multiplied by the Payment Base JOINT/SPOUSAL OPTION -- 4.5% multiplied by the Payment Base ON OR AFTER THE LIFETIME INCOME ELIGIBILITY DATE: Lifetime Benefit Payments equal applicable Withdrawal Percent (varies by option elected, Single Life vs. Joint/ Spousal) multiplied by the Payment Base (on the Contract Anniversary)
(1) As in the case of any partial Surrender, taking partial Surrenders prior to an Eligible Withdrawal Year will reduce the Payment Base and your future Lifetime Benefit Payment. Such partial Surrender may potentially eliminate your Lifetime Benefit Withdrawal Guarantee and Guaranteed Minimum Death Benefit. (2) Benefit Payments are still available after age 60 and may be different than the Lifetime Benefit Payment. The annual amount withdrawn can not exceed the greater of these two values. APP B-6 --------------------------------------------------------------------------------
THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S THE HARTFORD'S LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME LIFETIME INCOME FEATURES FOUNDATION BUILDER II BUILDER SELECTS / PORTFOLIOS BUILDER -------------------------------------------------------------------------------------------------------------------- RMD RESET - Contracts enrolled Same as The BOTH RIDERS: - Contracts enrolled in automatic RMD Hartford's Lifetime Same as The Hartford's in automatic RMD (AIP) that go over Income Foundation Lifetime Income Foundation (AIP) that go over the annual Lifetime the 5% allowed will Benefit Payment not result in a amount will not reset of the Benefit result in a reset of Payment or Lifetime the Lifetime Benefit Benefit Payment if Payment if no other no other partial partial Surrenders Surrenders have have occurred during occurred during the the Contract Year Contract Year - NOT 72t/q friendly - NOT 72t/q friendly INVESTMENT - Not currently Same as The THE HARTFORD'S LIFETIME Not currently RESTRICTIONS enforced Hartford's Lifetime INCOME BUILDER SELECTS: enforced - Can be triggered Income Foundation Same as The Hartford's by changes in Lifetime Income Foundation Covered Life THE HARTFORD'S LIFETIME - If the INCOME BUILDER PORTFOLIOS: restrictions are - Contract Value must be violated, the invested in an approved Lifetime Withdrawal asset allocation model, Benefit of this fund-of-funds or rider will be Sub-Accounts -- failure to revoked and the do so will result in the Death Benefit only termination of this rider will continue OWNERSHIP CHANGES Refer to Covered Refer to Covered Refer to Covered Life change - Ownership changes Life change feature Life change feature feature below in the first 12 below below months from the effective date of the rider will have no impact on the rider benefits as long as age limitation is met - Ownership changes after the first 12 months from the effective date of the rider may cause the Benefit Amount, Benefit Payment and Lifetime Benefit Payment to be recalculated SPOUSAL CONTRACT Refer to Spousal Refer to Spousal Refer to Covered Life change If Spousal Contract CONTINUATION Contract Contract feature below continuation is Continuation feature Continuation feature elected, there may below below be a Benefit Amount increase to equal the then current Benefit Amount (this is automatic, NOT elected) providing he/she is younger than 76 years old and the rider is currently available for sale
APP B-7 --------------------------------------------------------------------------------
THE HARTFORD'S LIFETIME INCOME THE HARTFORD'S LIFETIME INCOME THE HARTFORD'S LIFETIME INCOME FOUNDATION -- SINGLE BUILDER II -- SINGLE FOUNDATION -- FEATURES LIFE OPTION LIFE OPTION JOINT/SPOUSAL OPTION -------------------------------------------------------------------------------------------------------------------- COVERED LIFE - Natural Owner -- Owner and Same as The Hartford's - Natural Owner -- The Covered Joint Owner (if any) on rider Lifetime Income Foundation -- Life is both Spouses (as effective date Single Life option defined by Federal Law) - Non-Natural Owner -- the - Non-Natural Owner -- the Annuitant on rider effective Annuitant on rider effective date date - All age based benefit - All age based provisions provisions based on the based on the attained age of attained age of the OLDER the YOUNGER Covered Life Covered Life ISSUE RULES No Additional Requirements Same as The Hartford's - The sole primary beneficiary Lifetime Income Foundation -- (defined as the individual to Single Life option receive the Death Benefit) must be the Owner's Spouse. If the Joint Owner is the Spouse, the primary beneficiary can be someone other than the Spouse - A joint Owner who is not the Owner's Spouse is not allowed. - We reserve the right to prohibit non-natural entities from being listed as Owner COVERED LIFE CHANGE - Covered Life changes within Same as The Hartford's - Covered Life changes within the first 6 months have no Lifetime Income Foundation -- the first 6 months have no impact to the Death Benefit or Single Life option impact to the Death Benefit or Payment Base, however, the Payment Base, however, the Withdrawal Percent and Withdrawal Percent and Lifetime Benefit Payment may Lifetime Benefit Payment may change based on the attained change based on the attained age of new Relevant Covered age of new Relevant Covered Life Life - After the first 6 months: - If Owner and their Spouse - Covered Life changes will are no longer married, for cause a reset in the benefits reasons other than death, - Allow us to impose Covered Life changes may investment restrictions occur: - May cause an increase in - If Surrenders have not been rider charge taken, Owner may remove their Spouse and replace with new Spouse (both events do not need to occur at the same time)(3) - If Surrenders have been taken, Owner may remove their Spouse but may not add a new Spouse - Any other contractual change which causes a change in the Covered Life will cause the Withdrawal Feature to terminate THE HARTFORD'S LIFETIME INCOME BUILDER II -- FEATURES JOINT/SPOUSAL OPTION -------------------- COVERED LIFE Same as The Hartford's Lifetime Income Foundation -- Joint/Spousal option ISSUE RULES Same as The Hartford's Lifetime Income Foundation -- Joint/Spousal option COVERED LIFE CHANGE Same as The Hartford's Lifetime Income Foundation -- Joint/Spousal option except Covered Life changes within the first 6 months have no impact to the Maximum Contract Value
(3) The Covered Life will be reset at time of removal and time of replacement. The Withdrawal Percent scale will be based on the younger Covered Life. APP B-8 --------------------------------------------------------------------------------
THE HARTFORD'S LIFETIME INCOME THE HARTFORD'S LIFETIME INCOME THE HARTFORD'S LIFETIME INCOME FOUNDATION -- SINGLE BUILDER II -- SINGLE FOUNDATION -- FEATURES LIFE OPTION LIFE OPTION JOINT/SPOUSAL OPTION -------------------------------------------------------------------------------------------------------------------- SPOUSAL - We will increase the Same as The Hartford's - We will increase the CONTRACT Contract Value to the Death Lifetime Income Foundation -- Contract Value to the Death CONTINUATION Benefit value Single Life option Benefit value - The Relevant Covered Life - The Spouse may elect to will be re-determined on the either: date of the continuation A) Continue the Contract and - The Payment Base will be set rider; or equal to the Contract Value, B) Continue the Contract and the Death Benefit will be set revoke the Withdrawal Feature equal to the Contract Value of the rider and the Lifetime Benefit If the Spouse elects to Payment and Withdrawal Percent continue the Contract and will be recalculated on the rider: continuation date - The Payment Base will be set - If Relevant Covered Life is equal to the greater of greater than or equal to 81 at Contract Value or Payment Base the time of continuation, the on the continuation date Rider will terminate. The - The Withdrawal Percent will Death Benefit will be equal to remain frozen at the current the Contract Value Withdrawal Percent if there have been partial Surrenders since the rider effective date. If not, the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Contract Anniversary prior to the first partial Surrender - The Lifetime Benefit Payment will be recalculated to equal the Withdrawal Percent multiplied by the greater of Contract Value or Payment Base on the continuation date THE HARTFORD'S LIFETIME INCOME BUILDER II -- FEATURES JOINT/SPOUSAL OPTION -------------------- SPOUSAL Same as The Hartford's CONTRACT Lifetime Income Foundation -- CONTINUATION Joint/Spousal option except the Maximum Contract Value will be the greater of Contract Value or Payment Base on the continuation date
The discussion above is qualified in its entirety by the terms and provisions of the prospectus attached and in the event of any conflict between the discussion above and the prospectus, the prospectus shall prevail. APP B-9 --------------------------------------------------------------------------------
THE HARTFORD'S PRINCIPAL FIRST THE HARTFORD'S FEATURES PREFERRED PRINCIPAL FIRST ------------------------------------------------------------------------------------------------------------------------------ OBJECTIVES - Guaranteed income for a set time period (20 - Guaranteed income for a set time period (14 years estimated) years estimated) - Principal protection - Potential step-ups every 5 years - Principal protection DEATH BENEFIT Not Applicable Not Applicable AVAILABILITY - Available at Contract issue or post issue on - Available at Contract issue or post-issue on contracts effective on or after 11/1/04 current products - Plus contracts must reach the 1st anniversary - Plus contracts must reach the 1st anniversary before adding post-issue. before adding post-issue. MAXIMUM ISSUE AGE Qualified, Non-Qualified maximum issue age is 70 - Non-Qualified and Roth IRA -- age 85 except for (owner(s)/annuitant) Outlook and Access contracts which have a maximum issue age of 90 - IRA/Qualified -- age 80 REVOCABILITY Revocable in writing anytime after the 5th Irrevocable anniversary of the rider effective date (6th rider year) RIDER COMPATIBILITY Cannot be elected with any of the following: Cannot be elected with any of the following: - The Hartford's Principal First - The Hartford's Principal First Preferred - The Hartford's Lifetime Income Builder - The Hartford's Lifetime Income Builder - The Hartford's Lifetime Income Builder II - The Hartford's Lifetime Income Builder II - The Hartford's Lifetime Income Foundation - The Hartford's Lifetime Income Foundation - The Hartford's Lifetime Income Builder Selects - The Hartford's Lifetime Income Builder Selects - The Hartford's Lifetime Income Builder - The Hartford's Lifetime Income Builder Portfolios Portfolios ADDITIONAL CHARGE Annual charge of 0.20% (20 bps) assessed daily - Annual charge of 0.50% (50 bps) assessed daily - Can increase the fee on or after the 5th contract anniversary and then every 5 years thereafter only of step-up elected - Maximum charge of 0.75% BENEFIT AMOUNT - 100% of Premium Payment when added at issue - 100% of Premium Payment when added at issue - Contract Value on the rider effective date when - Contract Value on the rider effective date when added post-issue added post-issue PAYMENT BASE Not applicable Not applicable WITHDRAWAL PERCENTAGE Not applicable Not applicable ANNUAL AMOUNT AVAILABLE BEGINNING IMMEDIATELY: BEGINNING IMMEDIATELY: FOR SURRENDER BENEFIT PAYMENTS EQUAL 5% OF THE BENEFIT AMOUNT BENEFIT PAYMENTS EQUAL 7% OF THE BENEFIT AMOUNT RMD RESET - Contracts enrolled in automatic RMD (AIP) that - All partial Surrenders that go over the 7% go over the 5% allowed will not result in a reset allowed will result in a reset of the Benefit of the Benefit Payment amount if no other partial Amount and possibly a reset of the Benefit Payment Surrenders have occurred during the Contract amount Year. - NOT 72t/q friendly - NOT 72t/q friendly
APP B-10 --------------------------------------------------------------------------------
THE HARTFORD'S PRINCIPAL FIRST THE HARTFORD'S FEATURES PREFERRED PRINCIPAL FIRST ------------------------------------------------------------------------------------------------------------------------------ INVESTMENT RESTRICTIONS - Not currently enforced None - If the restrictions are violated, the withdrawal feature of this rider will be revoked OWNERSHIP CHANGES - Ownership changes in the first 12 months from Same as Principal First Preferred the effective date of the rider will have no impact on the rider benefits as long as age limitation is met - Ownership changes after the first 12 months to someone other than the Spouse will cause a recalculation of the Benefit Amount SPOUSAL There is no option for the Spouse to step up the Spouse may choose to step up the Benefit Amount to CONTRACT Benefit Amount upon Spousal Contract continuation the current Contract Value CONTINUATION
APP C-1 ------------------------------------------------------------------------------- APPENDIX C -- THE HARTFORD'S LIFETIME INCOME BUILDER OBJECTIVE Protect your investment from poor market performance through potential annual Benefit Amount increases and provide income through predetermined periodic payments based either on a set schedule or your lifetime. HOW DOES THIS RIDER HELP ACHIEVE THIS GOAL? This rider (called the Unified Benefit Design in your Contract) provides a single Benefit Amount payable as two separate but bundled benefits which form the entire benefit. In other words, this rider is a guarantee of the Benefit Amount that you can access two ways: - WITHDRAWAL BENEFIT allows (a) BENEFIT PAYMENTS: a series of withdrawals which may be paid annually until the Benefit Amount is reduced to zero or (b) LIFETIME BENEFIT PAYMENTS: a series of withdrawals which may be paid annually until the death of any Owner if the older Owner (or Annuitant if the Contract Owner is a trust) is age 60 or older. The Benefit Payments and Lifetime Benefit Payments may continue even if the Contract Value is reduced to zero; and/or - GUARANTEED MINIMUM DEATH BENEFIT ("GMDB"). The GMDB is equal to the greater of the Benefit Amount or the Contract Value if the Contract Value is greater than zero. DEPLETING THE BENEFIT AMOUNT BY TAKING SURRENDERS WILL REDUCE OR ELIMINATE THE GUARANTEED MINIMUM DEATH BENEFIT. THIS GUARANTEED MINIMUM DEATH BENEFIT REPLACES THE STANDARD DEATH BENEFITS PROVIDED UNDER THIS CONTRACT. See Optional Benefit Comparisons in Appendix B. WHEN CAN YOU BUY THIS RIDER? The Hartford's Lifetime Income Builder is closed to new investors. This rider may not be available in all states or through all Registered Representatives. We reserve the right to withdraw this rider at any time. DOES ELECTING THIS RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect this rider, you may not elect any rider other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR THIS RIDER CALCULATED? The fee for this rider is based on your then current Benefit Amount. . This additional charge will automatically be deducted from your Contract Value on each Contract Anniversary. The charge is withdrawn from each Sub-Account and the Fixed Account in the same proportion that the value of the Sub-Account bears to the total Contract Value. The rider fee will not be taken from the DCA Plus account. The charge is deducted after all other financial transactions and any Benefit Amount increases are made. Once you elect this benefit, we will continue to deduct the charge until we begin to make Annuity Payouts. The rider charge may limit access to Fixed Accounts in certain states. We reserve the right to increase the charge up to a maximum rate of 0.75% any time on or after your fifth Contract Anniversary or five years from the date from which we last notified you of a fee increase, whichever is later. If we increase this charge, you will receive advance notice of the increase and will be given the opportunity to suspend this and future charge increases. If you suspend any charge increase, you will no longer receive automatic Benefit Amount increases. If we do not receive notice from you to suspend the increase, we will automatically assume that automatic Benefit Amount increases will continue and the new charge will apply. Within 30 days prior to subsequent Contract Anniversaries, you may re-start automatic Benefit Amount increases at the charge in effect since your most recent notification. If you Surrender prior to a Contract Anniversary, a pro rata share of the charge will be assessed and will be equal to the charge multiplied by the Benefit Amount prior to the Surrender, multiplied by the number of days since the last charge was assessed, divided by 365. DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER THIS RIDER? Yes. The initial Benefit Amount equals your initial Premium Payment. The Benefit Amount will be adjusted in the future through your actions as well as ours. The Benefit Amount will be increased as a result of automatic Benefit Amount increases or subsequent Premium Payments; However, if Surrenders have been taken, your new Benefit Payment may not be greater than your Benefit Amount prior to the Surrender. The Benefit Amount will be decreased as a result of any Surrenders and potentially, any changes in ownership. - Automatic Benefit Amount increases. We may increase the Benefit Amount on each Contract Anniversary (referred to as "automatic Benefit Amount increases"), depending on the investment performance of your Contract. To compute this percentage, we will divide your Contract Value on the then current Contract Anniversary by the Maximum Contract Value and then reduced by 1. In no event will this factor be less than 0% or greater than 10%. Automatic Benefit Amount increases will not take place if the investment performance of your Sub-Accounts is neutral or negative. Automatic Benefit Amount increases will continue until the earlier of the Contract Anniversary immediately following the older Owner's or Annuitant's 75th birthday or the Annuity Commencement Date. APP C-2 ------------------------------------------------------------------------------- - Subsequent Premium Payments. When subsequent Premium Payments are received, the Benefit Amount will be increased by the dollar amount of the subsequent Premium Payment. However, if Surrenders have been taken your new Benefit Payment may not be greater than your Benefit Amount prior to the Surrender. - Surrenders. When a Surrender is made, the Benefit Amount will be equal to the amount determined in either (A), (B) or (C) as follows: A. If total Surrenders since the most recent Contract Anniversary are equal to or less than the Benefit Payment, the Benefit Amount becomes the Benefit Amount immediately prior to the Surrender, less the amount of Surrender. B. If total Surrenders since the most recent Contract Anniversary exceed the Benefit Payment as a result of enrollment in our Automatic Income program to satisfy Required Minimum Distributions, the Benefit Amount becomes the Benefit Amount immediately prior to the Surrender, less the amount of Surrender. C. If total Surrenders since the most recent Contract Anniversary exceed the Benefit Payment and the Required Minimum Distribution exception in (B) does not apply, the Benefit Amount is re-calculated to the greater of zero or the lesser of (i) or (ii) as follows: (i) the Contract Value immediately following the Surrender; or (ii) the Benefit Amount immediately prior to the Surrender, less the amount of Surrender. - Benefit Amount limits. Your Benefit Amount can not be less than zero or more than $5 million. Any sums in excess of this ceiling will not be included for any benefits under this rider. Since the Benefit Amount is a central source for both benefits under this rider, taking withdrawals will lessen or eliminate the Guaranteed Minimum Death Benefit. Refer to the Examples included in Appendix I for a more complete description of these effects. IS THIS RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? Yes. The following section describes both Benefit Payments and Lifetime Benefit Payments which together comprise the Withdrawal Benefit. - BENEFIT PAYMENTS Under this option, Surrenders may be taken immediately as a Benefit Payment that is initially set equal to 5% annually of the initial Benefit Amount. The Benefit Payment is the amount guaranteed for withdrawal each Contract Year until the Benefit Amount is reduced to zero (even if the Contract Value is first reduced to zero). We support this guaranteed payment through our General Account which is subject to our claims paying ability and other liabilities as a company. The Benefit Payment can be taken on any payment schedule that you request. You can continue to take Benefit Payments until the Benefit Amount has been depleted. Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your Benefit Payment include any applicable Contingent Deferred Sales Charge. Whenever a Surrender is taken during any Contract Year, the Benefit Payment will be adjusted to equal the amount in either (A), (B) or (C) as follows: A. If total Surrenders since the most recent Contract Anniversary are equal to or less than the Benefit Payment, the Benefit Payment until the next Contract Anniversary is equal to the lesser of the Benefit Payment immediately prior to the Surrender or the Benefit Amount immediately after the Surrender. B. If total Surrenders since the most recent Contract Anniversary exceed the Benefit Payment as a result of enrollment in our Automatic Income Program to satisfy Required Minimum Distributions, the provisions of (A) will apply. C. If total Surrenders since the most recent Contract Anniversary are more than the Benefit Payment and the Required Minimum Distribution exception in (B) does not apply, the Benefit Payment will be re-calculated to equal the Benefit Amount immediately following the Surrender multiplied by 5%. If you choose an amount less than the Benefit Payment in any Contract Year, the remaining annual Benefit Payment cannot be carried forward to the next Contract Year. You may elect to take Benefit Payments at any time provided that the Benefit Amount is greater than zero. If you make a subsequent Premium Payment, the Benefit Payment will be re-calculated to equal 5% of the Benefit Amount immediately after the subsequent Premium Payment is made. APP C-3 ------------------------------------------------------------------------------- If there is an increase in the Benefit Amount due to an automatic Benefit Amount increase on any Contract Anniversary, we will automatically re-calculate the Benefit Payment to the greater of the Benefit Payment immediately prior to the increase or the Benefit Amount immediately after the increase multiplied by 5%. If you are enrolled in our Automatic Income Program you must request in writing to increase the amount being withdrawn. If Surrenders are less than or equal to the Benefit Payment but result in the Contract Value remaining after such Surrender to be less than our minimum amount rules then in effect, we will not terminate the Contract under our minimum amount rules if the Benefit Amount is greater than zero. However, if the Benefit Amount is zero and the Contract Value remaining after any Surrender is also less than our minimum amount rules then in effect, we may terminate the Contract and pay you the Surrender Value. - LIFETIME BENEFIT PAYMENTS Under this option, Surrenders may be taken as Lifetime Benefit Payments that are initially equal to 5% annually of the Benefit Amount on the Contract Anniversary immediately following the older Owner's 60th birthday or 5% of the initial Benefit Amount if the older Owner is 60 or older at the rider's effective date The Lifetime Benefit Payment is the amount guaranteed to be available for withdrawal each Contract Year until the first death of any Owner (even if the Contract Value is reduced to zero). We support this payment through our General Account which is subject to our claims paying ability and other liabilities as a company. The Lifetime Benefit Payment can be taken on any payment schedule that you request. Lifetime Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value. Each Lifetime Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your Lifetime Benefit Payment include any applicable Contingent Deferred Sales Charge. Whenever a Surrender is taken after the Contract Anniversary immediately following the older Owner's 60th Birthday, the Lifetime Benefit Payment will be equal to the amount determined in either (A), (B) or (C) as follows: A. If total Surrenders since the most recent Contract Anniversary are equal to or less than the Lifetime Benefit Payment, the Lifetime Benefit Payment is equal to the Lifetime Benefit Payment immediately prior to the Surrender. B. If total Surrenders since the most recent Contract Anniversary exceed the Lifetime Benefit Payment as a result of enrollment in our Automatic Income program to satisfy Required Minimum Distributions, the provisions of (A) will apply. C. If total Surrenders since the most recent Contract Anniversary are more than the Lifetime Benefit Payment and the Required Minimum Distribution exception in (B) does not apply, the Lifetime Benefit Payments will be re-calculated to equal the Benefit Amount immediately following the partial Surrender multiplied by 5%. If you choose an amount less than the Lifetime Benefit Payment in any Contract Year, the remaining annual Lifetime Benefit Payment cannot be carried forward to the next Contract Year. Lifetime Benefit Payments will be available until the first death of any Owner. If the Contract Value is reduced to zero, Lifetime Benefit Payments will automatically continue under this Fixed Lifetime and Period Certain Annuity Payout. If you make a subsequent Premium Payment after the Contract Anniversary immediately following the older Owner's 60th birthday, the Lifetime Benefit Payment will be re-calculated to equal 5% of the Benefit Amount after the subsequent Premium Payment is made. If Surrenders are not taken prior to the Contract Anniversary immediately following the older Owner's 60th birthday, the Lifetime Benefit Payment will equal the Benefit Payment. If Surrenders are taken prior to the Contract Anniversary immediately following the older Owner's 60th birthday, the Lifetime Benefit Payment may be less than the Benefit Payment. If there is an increase in the Benefit Amount due to an automatic Benefit Amount increase on any Contract Anniversary after the older Owner's 60th birthday, we will automatically re-calculate the Lifetime Benefit Payment to equal the greater of the Lifetime Benefit Payment immediately prior to the increase or the Benefit Amount immediately after the increase multiplied by 5%. If a Surrender is less than or equal to the Lifetime Benefit Payment but results in the Contract Value remaining after such Surrender to be less than our minimum amount rules then in effect, we will not terminate the Contract under our minimum amount rules. However, if the Contract Value remaining after any Surrender is less than our minimum amount rules then in effect and the Benefit Amount and your Lifetime Benefit Payments have been reduced to zero, we may terminate the Contract and pay the Surrender Value. IS THIS RIDER DESIGNED TO PAY YOU DEATH BENEFITS? Yes. This rider includes a Guaranteed Minimum Death Benefit that replaces the standard Death Benefit. The GMDB is equal to the greater of the Benefit Amount or the Contract Value IF the Contract Value is greater than zero. APP C-4 ------------------------------------------------------------------------------- The Death Benefit is payable at the first death of an Owner or Annuitant. We will pay to the Beneficiary the greater of the Benefit Amount or the Contract Value (as long as the Contract Value is greater than zero) as of the date due proof of death is received by us. If the Contract Value is zero as of the date of due proof of death, there will be no Death Benefit. Otherwise, the Death Benefit will fluctuate based on the Benefit Amount as reduced by Surrenders, Withdrawal Benefits and expenses as discussed above. DOES THIS RIDER REPLACE STANDARD DEATH BENEFITS? Yes. This rider replaces the standard Death Benefit. This rider can be elected along with MAV Plus. CAN YOU REVOKE THIS RIDER? No. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider. WHAT EFFECT DO FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value at the time you request a Surrender with any applicable charges deducted and not the Benefit Amount, Lifetime Benefit Payment or the Benefit Payment amount you would have received under this rider. If you still have a Benefit Amount or Lifetime Benefit Payment Amount after you Surrender all of your Contract Value (following the provisions or the rider) or your Contract Value is reduced to zero, we will issue a payout annuity. If the Owner is a natural person we will treat the Owners(s) as the Annuitant for purposes of this annuity. If there is more than one Annuitant, the annuity will be on a first-to-die basis (joint and 0% survivor annuity). You may elect to have the Benefit Amount or Lifetime Benefit Payment paid to you under either the Fixed Period Certain Annuity Payout or the Fixed Lifetime and Period Certain Annuity Payout Option. The election is irrevocable. Subject to our approval, which approval may be withheld or delayed for any reason, you may elect to defer the Annuity Commencement Date until you are eligible for the Fixed Lifetime and Period Certain Annuity Payout. If your Benefit Payment or your Lifetime Benefit Payment on your most recent Contract Anniversary exceeds the Annual Withdrawal Amount, we will waive any applicable Contingent Deferred Sales Charge for withdrawals up to that Benefit Payment amount. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? Any ownership change made prior to the first anniversary of the rider effective date will have no impact on the Benefit Amount, but the Lifetime Benefit Payment may change as long as the new Owner(s) and Annuitant are less than age 76 at the time of the change. The Lifetime Benefit Payment may change based on the age of the new owner. An ownership change after the first Contract Anniversary that causes a re-calculation in the benefits as long as the older Owner after the change is less than age 76 at the time of the change will automatically result in either (A) or (B): (A) If this rider is not currently available for sale, we will continue the existing rider for the GMDB only and the Withdrawal Benefit will terminate. This rider charge will then discontinue. (B) If this rider is currently available for sale, we will continue the existing rider with respect to all benefits at your current charge. The Benefit Amount will be re-calculated to the lesser of the Contract Value or the Benefit Amount on the date of the change. The Benefit Payment and Lifetime Benefit Payment will be re-calculated on the date of the change. If the older Owner is age 76 or greater at the time of an ownership change, this rider will continue with respect to the GMDB only and the Withdrawal Benefit will terminate. The GMDB will be modified to equal Contract Value only and the Rider charge will discontinue. CAN YOUR SPOUSE CONTINUE YOUR WITHDRAWAL BENEFIT? Yes. If the Owner dies and the Beneficiary is the deceased Owner's Spouse at the time of death, the Spouse may continue the Contract and we will adjust the Contract Value to the amount we would have paid as a Death Benefit payment (the greater of the Contract Value and the Benefit Amount). If the Spouse elects to continue the Contract and is less than age 76 at the time of the continuation, then either (A) or (B) will automatically apply: (A) If this rider is not currently available for sale, we will continue the existing The Hartford's Lifetime Income Builder for the GMDB only and the Withdrawal Benefit will terminate and the rider charge will discontinue. (B) If this rider is currently available for sale, we will continue the existing rider with respect to all benefits at the current charge. The Benefit Amount and Maximum Contract Value will be re-calculated to the Contract Value on the continuation date. The Benefit Payments and Lifetime Benefit Payments will be re-calculated on the continuation date. APP C-5 ------------------------------------------------------------------------------- If the Spouse elects to continue the Contract and is age 76 or greater at the time of the continuation, this rider will continue with respect to the GMDB only and the Withdrawal Benefits will terminate. The GMDB will be modified to equal Contract Value only and the rider charge will discontinue. Spousal Contract continuation will only apply one time for each Contract. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? If you annuitize your Contract, you may choose any of those Annuity Payout Options offered in the Contract. The amount used for calculating Annuity Payout Options will be the Contract Value. In other words, you will forfeit any difference between your Contract Value and Benefit Amount by voluntarily annuitizing before the maximum Annuity Commencement Date. If the annuity reaches the maximum Annuity Commencement Date the Contract will automatically be annuitized unless we and the Owner(s) agree to extend the Annuity Commencement Date, which approval may be withheld or delayed for any reason. In this circumstance, the Contract may be annuitized under our standard annuitization rules or, alternatively, under The Hartford's Lifetime Income Builder rules applicable when the Contract Value equals zero. - FIXED PERIOD CERTAIN PAYOUT OPTION If your Contract Value goes to zero, you are entitled to receive payments in a fixed dollar amount for a stated number of years. The actual number of years that payments will be made is determined by dividing the Benefit Amount by the Benefit Payment. The total amount payable under this Annuity Payout Option will equal the Benefit Amount. This annualized amount will be paid over the determined number of years. The frequency of payments you may elect will be among those offered by us at that time but will be no less frequently than annually. The amount payable in the final year of payments may be less than the prior year's annual amount payable so that the total amount of the payouts will be equal to the Benefit Amount. If, at the death of the any Annuitant, payments have been made for less than the stated number of years, the remaining scheduled payments will be made to the Beneficiary as scheduled payments in accordance with the Code and the Owner's last instructions on record. - FIXED LIFETIME AND PERIOD CERTAIN PAYOUT OPTION If your Contract Value goes to zero and the Owner(s) are alive and age 60 or older, you are entitled to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a minimum number of years. The minimum number of years that payments will be made is determined on the Annuity Calculation Date by dividing the Benefit Amount by the Lifetime Benefit Payment. The total minimum amount payable under this option will equal the Benefit Amount. This Lifetime Benefit Payment amount will be paid over the greater of the minimum number of years, or until the death of any Annuitant. The frequency of payments you may elect will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the minimum number of years, the remaining scheduled payments will be made to the Beneficiary as scheduled payments in accordance with the Code and the Owner's last instructions on record. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? We reserve the right to limit the Sub-Accounts into which you may allocate your Contract Value on and after the ownership change effective date. We may prohibit investment in any Sub-Account, require you to allocate your Contract Value in one of a number of asset allocation models, investment programs or fund-of-funds Sub-Accounts. If you violate the restrictions, then this rider, its benefits and its charges will terminate. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? No. CAN WE AGGREGATE CONTRACTS? For purposes of determining the Benefit Amount under this rider, we reserve the right to treat one or more Contracts issued by us to you with any optional Withdrawal Benefit rider in the same calendar year as one Contract. Accordingly, if we elect to aggregate Contracts, we will change the period over which we measure withdrawals against the Benefit Payment. OTHER INFORMATION For examples of how this rider works, see "Appendix I." This rider may not be appropriate for all investors. Several factors, among others, should be considered: - This rider is no longer actively marketed and is not available in any State where The Hartford's Lifetime Income Builder II is approved for sale. - The benefits under this rider cannot be directly or indirectly assigned, pledged, collateralized or securitized in any way. Any such actions will invalidate this rider. APP C-6 ------------------------------------------------------------------------------- - Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use. For instance, if you deplete your Benefit Amount through Surrenders, whether voluntarily or as a result of Required Minimum Distributions, you will reduce your Death Benefit. If your Contract Value is zero as of the date of due proof of death, there will be no Death Benefit. This may be of special concern to seniors. - Inasmuch as Withdrawal Benefits may reduce or eliminate the GMDB, electing this rider as part of an investment program involving a qualified plan may not make sense unless, for instance, other features of this Contract such as Withdrawal Benefits and access to Funds, outweigh the absence of additional tax advantages from a variable annuity. - Annuitizing your Contract, whether voluntarily or not, will impact these benefits. First, annuitization shall eliminate the Guaranteed Minimum Death Benefit. Second, annuitization will terminate any Withdrawal Benefits which will be converted into annuity payments according to the annuitization option chosen. Accordingly, Lifetime Benefit Payments could be replaced by another "lifetime" payout option and will not be subject to automatic Benefit Amount increases. - Even though this rider is designed to provide "living benefits," you should not assume that you will necessarily receive "payments for life" if you have violated any of the terms of this rider. - Purchasing this rider is a one time only event and cannot be undone later. If you elect this rider you will not be able to elect standard Death Benefits or optional riders other than MAV Plus. - Any additional contributions made to your Contract after withdrawals have begun will cause the Benefit Amount to be recalculated. If an additional contribution is made, the Benefit Amount will be recalculated to equal the remaining Benefit Amount plus the additional contribution, which could be more or less than the original Benefit Amount and could change the amount of your Benefit Payments or Lifetime Benefit Payments, as the case may be. - Spouses who are not a joint Owner or Beneficiary may find continuation of this rider to be unavailable or unattractive after the death of the Owner-Spouse. Continuation of the options available in this rider is dependent upon its availability at the time of death of the first Owner-Spouse and will be subject to then prevailing charges. - Certain ownership changes may result in a reduction of benefits. - Annuitizing your Contract instead of receiving Benefit Payments or Lifetime Benefit Payments will forfeit any increases in your Benefit Amount over your Contract Value. Voluntary or involuntary annuitization will terminate Lifetime Benefit Payments. Annuity Payout Options available subsequent to the Annuity Commencement Date may not necessarily provide a stream of income for your lifetime and may be less than Lifetime Benefit Payments. - Finally, we may increase the charge for this rider on or after the fifth Contract Anniversary or five years since your last increase notification, whichever is later. - There are no assurances made or implied that automatic Benefit Amount increases will occur and if occurring, will be predictable. - The fee for this rider may increase if and when automatic Benefit Amount increases take place. There are no assurances as to the fee we will be charging at the time of each automatic Benefit Amount increase. APP D-1 ------------------------------------------------------------------------------- APPENDIX D -- EXCHANGE PROGRAMS TABLE OF CONTENTS
PAGE -------------------------------------------------------------------------------- A. The Hartford's Lifetime Income Builder Conversion Program APP D-2 B. The Hartford's Lifetime Income Builder Selects and The Hartford's APP D-9 Lifetime Income Builder Portfolios Conversion Program C. The Hartford's Lifetime Income Builder Selects and The Hartford's APP D-11 Lifetime Income Builder Portfolios
APP D-2 ------------------------------------------------------------------------------- A. THE HARTFORD'S LIFETIME INCOME BUILDER CONVERSION PROGRAM We are offering Eligible Contract Owners (as defined below) the opportunity to exchange The Hartford's Lifetime Income Builder rider for The Hartford's Lifetime Income Builder II. The availability of the conversion program is at the discretion of the Company and will discontinue once The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios are approved in your state. You should convert your rider only if it is appropriate for your needs and financial considerations. Please read the prospectus carefully and discuss this conversion with your Registered Representative prior to converting. I. WHO IS ELIGIBLE TO PARTICIPATE IN THIS CONVERSION PROGRAM? This exchange program is available to Contract Owners who meet ALL of the following qualifications ("Eligible Contract Owners"): - You must: - own an annuity contract (including any proprietary versions) ("Eligible Contract") as of the conversion date (defined below); - have chosen The Hartford's Lifetime Income Builder rider at the time of purchase; and - be a customer of a financial intermediary that is currently authorized to sell Hartford Life and Annuity Insurance Company or Hartford Life Insurance Company variable annuity Contracts that includes The Hartford's Lifetime Income Builder II optional benefit. - You must not: - be age 76 or older as of the conversion date (including any other Covered Life); II. WHAT ARE KEY DIFFERENCES BETWEEN THE HARTFORD'S LIFETIME INCOME BUILDER AND THE HARTFORD'S LIFETIME INCOME BUILDER II? - The chart below describes some key differences between The Hartford's Lifetime Income Builder and The Hartford's Lifetime Income Builder II and the meaning upon conversion. See Section III for additional considerations.
THE HARTFORD'S LIFETIME THE HARTFORD'S LIFETIME FEATURE INCOME BUILDER II INCOME BUILDER ---------------------------------------------------------------------------------------------------------------------------- FEE Currently equal to 0.40% of Payment Currently equal to 0.40% of Benefit Base. Maximum fee is 0.75%. WITHDRAWALS Amount. Maximum fee is 0.75%. THAT DO NOT EXCEED THE LIFETIME BENEFIT WITHDRAWALS REDUCE THE BENEFIT AMOUNT PAYMENT DO NOT REDUCE THE PAYMENT BASE AND STEP UPS MAY INCREASE THE BENEFIT AND STEP-UPS INCREASE THE PAYMENT BASE; AMOUNT; THEREFORE THE VALUE THAT THE THEREFORE THE VALUE THAT THE 0.40% FEE 0.40% FEE IS APPLIED TO CAN CHANGE OVER IS APPLIED TO CAN CHANGE OVER TIME. TIME. RELEVANT COVERED LIFE The governing life for determining the N/A living benefits provided under the rider BENEFIT AMOUNT N/A (Refer to Payment Base) 100% of premium when added at issue PAYMENT BASE UPON CONVERSION: N/A (Refer to Benefit Amount) - Payment Base will be equal to the Contract Value on the conversion date - PAYMENT BASE MAY BE LESS THAN BENEFIT AMOUNT DEATH BENEFIT UPON CONVERSION: Death Benefit will be Greater of Contract Value or Benefit equal to the Contract Value on the Amount conversion date. If MAV or MAV plus was previously elected, there will be no change to these values BENEFIT PAYMENT/THRESHOLD Allows up to a 5% withdrawal (Single Allows up to a 5% withdrawal of the Life), or 4.5% withdrawal (Joint Life) initial Benefit Amount per year prior to of the Payment Base per year prior to age 60 adjusted for Withdrawals and age 60 adjusted for Withdrawals and Automatic Benefit Amount increases Automatic Payment Base increases
APP D-3 -------------------------------------------------------------------------------
THE HARTFORD'S LIFETIME THE HARTFORD'S LIFETIME FEATURE INCOME BUILDER II INCOME BUILDER ---------------------------------------------------------------------------------------------------------------------------- LIFETIME BENEFIT PAYMENT - The Lifetime Benefit Payment will be - The Lifetime Benefit Payment is equal to the Payment Base multiplied by initially set to equal the initial the applicable Withdrawal Percent (4.5 - Benefit Amount multiplied by 5% 7% depending on Relevant Covered Life's - Available at issue if the oldest Owner attained age as of first Surrender and is age 60 or older whether the Single Life or Joint Life - Available after the Contract Option is selected.) Anniversary immediately following the - Allows you to withdraw on each oldest Owners' 60th birthday if at issue Contract up to the greater of Payment the age of the oldest owner is under 60 Base or Contract Value on the anniversary multiplied by the Withdrawal Percentage per year once the amount is established AUTOMATIC BENEFIT AMOUNT / PAYMENT BASE Automatic Payment Base increases will Automatic Benefit Amount increases INCREASES cease upon the earlier of the Annuity continue until the earlier of the Commencement Date or the Contract Contract Anniversary immediately Anniversary immediately following the following the older Owner's or Relevant Covered Life's attained age of Annuitant's 75th birthday or the or the 80 Annuity Commencement Date NON-EXCESSIVE PARTIAL SURRENDERS Withdrawals within the Lifetime Benefit Withdrawals within the Lifetime Benefit Payment do not reduce the Payment Base. Payment or Benefit Payment reduce the Withdrawals within the Threshold reduce Benefit Amount by the amount of the the Payment Base by the amount of partial surrender partial surrender EXCESSIVE PARTIAL SURRENDERS Withdrawals IN EXCESS of the Lifetime Withdrawals IN EXCESS of the Lifetime Benefit Payment or Threshold will reduce Benefit Payment or Benefit Payment will the Payment Base in proportion to the reduce the Benefit Amount to the minimum reduction in Contract Value due to such of Contract Value immediately following Surrender the partial Surrender; or the Benefit Amount immediately prior to the partial Surrender, less the amount of partial Surrender EXCESSIVE PARTIAL SURRENDERS & THE DEATH Withdrawals IN EXCESS of the Lifetime Withdrawals IN EXCESS of the Lifetime BENEFIT Benefit Payment or Threshold will reduce Benefit Payment or Benefit Payment will the Death Benefit in proportion to the reduce the Death Benefit to the minimum reduction in Contract Value due to such of Contract Value immediately following Surrender the partial Surrender; or the Benefit Amount immediately prior to the partial Surrender, less the amount of partial Surrender SUBSEQUENT PAYMENT LIMITATION None We reserve the right to approve subsequent Premium Payments after the first 12 months Subsequent Premium Payments with a cumulative total of $100,000 or greater require prior approval by the Company. This restriction is not currently enforced. JOINT OWNERSHIP Rider may be elected as a Single Life Single Life only Option or Joint Life Option
STATE VARIATIONS. THE FOREGOING DISCUSSION DOES NOT TAKE INTO CONSIDERATION STATE VARIATIONS, IF ANY. DEFINITIONS. ALL INITIAL CAPITALIZED TERMS SHALL HAVE SUCH MEANING AS PROVIDED IN YOUR PROSPECTUS. APP D-4 ------------------------------------------------------------------------------- III. OTHER KEY CONSIDERATIONS. - THIS CONVERSION OFFER IS DESIGNED FOR CONTRACT OWNERS THAT INTEND TO DEFER TAKING PARTIAL SURRENDERS IN ORDER TO INCREASE THE WITHDRAWAL PERCENT AVAILABLE TO SET LIFETIME BENEFIT PAYMENTS AND WHO OTHERWISE SEEK THE ADDED FLEXIBILITY OF PROVIDING POTENTIAL LIFETIME WITHDRAWALS FOR THEIR SPOUSE. THIS CONVERSION MAY NOT BE SUITABLE FOR ANYONE WHO MAY BE ANTICIPATING AN IMMINENT CHANGE IN THE RELEVANT COVERED LIFE OR ANY OTHER PERTINENT CONTRACT PARTIES. - LIFETIME BENEFIT PAYMENTS WILL NOT NECESSARILY BE THE SAME AS, OR HIGHER THAN, BENEFIT PAYMENTS OR LIFETIME BENEFIT PAYMENTS AVAILABLE UNDER THE HARTFORD'S LIFETIME INCOME BUILDER. WITHDRAWALS FROM THE LIFETIME INCOME BUILDER II RIDER MAY AFFECT THE GUARANTEES IF THE RELEVANT COVERED LIFE IS AGE 60 OR YOUNGER. - LIFETIME BENEFIT PAYMENTS UNDER THE HARTFORD'S LIFETIME INCOME BUILDER II DO NOT REDUCE THE PAYMENT BASE; THEREFORE THE FEE OF 0.40% OF PAYMENT BASE WILL NEVER BE APPLIED TO AN AMOUNT LESS THAN YOUR INITIAL PAYMENT BASE. HOWEVER, IN THE EVENT THAT AN EXCESS WITHDRAWAL IS TAKEN, OR A WITHDRAWAL IS MADE IN A NON-ELIGIBLE WITHDRAWAL YEAR, THE PAYMENT BASE WILL BE REDUCED BY THE METHODS DESCRIBED IN YOUR PROSPECTUS. - After the conversion date, your death benefit will no longer be The Hartford's Lifetime Income Builder Guaranteed Minimum Death Benefit. Your new death benefit will be your Contract Value on the conversion date. If you previously elected the optional death benefits MAV or MAV Plus, there will be no change to your death benefit. YOUR DEATH BENEFIT MAY BE REDUCED IF AS OF THE CONVERSION DATE YOUR CONTRACT VALUE AND PREMIUM PAYMENTS ARE LESS THAN YOUR BENEFIT AMOUNT. - You should discuss with your registered representative whether or not converting your rider is suitable for you and your particular needs, investment horizon and financial plans. YOU SHOULD DISCUSS YOUR PARTICULAR CIRCUMSTANCES AND THE TAX CONSEQUENCES OF THIS CONVERSION WITH YOUR TAX ADVISER, AS WE MAKE NO REPRESENTATION REGARDING THE TAX CONSEQUENCES OF AN EXCHANGE OF THESE RIDERS. - Please read your prospectus carefully and particularly the description of each rider and Appendix B -- Optional Benefits Comparison for a more complete description of the differences between The Hartford's Lifetime Income Builder and The Hartford's Lifetime Income Builder II. - We are not obligated to offer rider exchange privileges if and once this offer is withdrawn. - This offer is not available through all broker/dealers. - Your annuitization options for each rider may differ and your guarantee period under The Hartford's Lifetime Income Builder II may be less than under The Hartford's Lifetime Income Builder. If you select The Hartford's Lifetime Income Builder II Joint Life Option, the payment will be based on both Covered Lives. Please refer to your prospectus for details. IV. HOW DOES THE EXCHANGE PROCESS WORK? - You must complete The Hartford's Lifetime Income Builder Conversion Program Form to exchange your The Hartford's Lifetime Income Builder rider. The date that you comply with all our requirements to exchange your existing The Hartford's Lifetime Income Builder rider ("conversion date") will be the date we use to set your benefits under your The Hartford's Lifetime Income Builder II rider. We will also use the conversion date for establishing your eligibility for this offer. - Except as modified by this election, your existing Contract and all other features and functions previously selected will be and remain in full force and effect. - You may not cancel your election after the conversion date. - A prorated final The Hartford's Lifetime Income Builder rider charge will be assessed as of the conversion date. You will not be charged for The Hartford's Lifetime Income Builder II until your first conversion date anniversary and each annual anniversary thereafter. There are no exchange or transfer fees associated with making this election. - Your Contract Value as of the conversion date will become your new Payment Base. IF YOUR BENEFIT AMOUNT UNDER THE HARTFORD'S LIFETIME INCOME BUILDER WAS HIGHER THAN YOUR CONTRACT VALUE, YOU WILL NOT RECEIVE THAT AMOUNT. - We will not provide any credit for the time that you owned The Hartford's Lifetime Income Builder rider. Therefore, annual automatic Payment Base increases will commence on conversion date anniversaries rather than Contract Anniversaries. - There are no additional cancellation privileges afforded to you by participating in this conversion program. - All joint Owners must consent to this conversion. APP D-5 -------------------------------------------------------------------------------- LIFETIME INCOME BUILDER The following example is intended to reflect the effect of positive market performance on The Hartford's Lifetime Income Builder Benefit Amount, Death Benefit, and Rider Fee, and on The Hartford's Lifetime Income Builder II Payment Base, Death Benefit, and Rider Fee.
AGE ACCOUNT BENEFIT GUARANTEED BOY RETURN VALUE BOY AMOUNT BOY WD ACTUAL WD ---------------------------------------------------------------------- 60 0.06 $100,000 $100,000 $5,000 $5,000 61 0.06 $100,317 $95,665 $5,000 $5,000 62 0.06 $100,673 $90,968 $5,000 $5,000 63 0.06 $101,068 $86,288 $5,000 $5,000 64 0.06 $101,505 $81,624 $5,000 $5,000 65 0.06 $101,988 $76,973 $5,000 $5,000 66 0.06 $102,518 $72,333 $5,000 $5,000 67 0.06 $103,098 $67,701 $5,000 $5,000 68 0.06 $103,731 $63,074 $5,000 $5,000 69 0.06 $104,422 $58,449 $5,000 $5,000 70 0.06 $105,172 $53,822 $5,000 $5,000 71 0.06 $105,985 $49,191 $5,000 $5,000 72 0.06 $106,866 $44,550 $5,000 $5,000 73 0.06 $107,818 $39,895 $5,000 $5,000 74 0.06 $108,847 $35,221 $5,000 $5,000 75 0.06 $109,955 $30,523 $5,000 $5,000 76 0.06 $111,149 $25,796 $5,000 $5,000 77 0.06 $112,435 $20,796 $5,000 $5,000 78 0.06 $113,818 $15,796 $5,000 $5,000 79 0.06 $115,304 $10,796 $5,000 $5,000 80 0.06 $116,899 $5,796 $5,000 $5,000 81 0.06 $118,610 $796 $5,000 $5,000 82 0.06 $120,426 $0 $5,000 $5,000 83 0.06 $122,352 $0 $5,000 $5,000 84 0.06 $124,393 $0 $5,000 $5,000 85 0.06 $126,557 $0 $5,000 $5,000 AGE BENEFIT DEATH BENEFIT ACCOUNT BOY AMOUNT EOY EOY VALUE EOY FEE --------- ---------------------------------------------- 60 $95,665 $95,665 $100,700 $383 61 $90,968 $90,968 $101,036 $364 62 $86,288 $86,288 $101,413 $345 63 $81,624 $81,624 $101,832 $326 64 $76,973 $76,973 $102,296 $308 65 $72,333 $72,333 $102,807 $289 66 $67,701 $67,701 $103,369 $271 67 $63,074 $63,074 $103,984 $252 68 $58,449 $58,449 $104,655 $234 69 $53,822 $53,822 $105,387 $215 70 $49,191 $49,191 $106,182 $197 71 $44,550 $44,550 $107,044 $178 72 $39,895 $39,895 $107,978 $160 73 $35,221 $35,221 $108,987 $141 74 $30,523 $30,523 $110,077 $122 75 $25,796 $25,796 $111,253 $103 76 $20,796 $20,796 $112,518 $83 77 $15,796 $15,796 $113,881 $63 78 $10,796 $10,796 $115,347 $43 79 $5,796 $5,796 $116,922 $23 80 $796 $796 $118,613 $3 81 $0 $0 $120,426 $0 82 $0 $0 $122,352 $0 83 $0 $0 $124,393 $0 84 $0 $0 $126,557 $0 85 $0 $0 $128,850 $0
ASSUMPTIONS: LEGEND: -------------------------------------------------------------------------------------------- Age 60 BOY Beginning of Year Annual withdrawals taken, within limit EOY End of Year Market Performance = Annual 6% Gain WD Withdrawal
APP D-6 -------------------------------------------------------------------------------- LIFETIME INCOME BUILDER II The following example is intended to reflect the effect of positive market performance on The Hartford's Lifetime Income Builder Benefit Amount, Death Benefit, and Rider Fee, and on The Hartford's Lifetime Income Builder II Payment Base, Death Benefit, and Rider Fee.
AGE ACCOUNT PAYMENT GUARANTEED MAXIMUM BOY RETURN VALUE BOY BASE BOY WD WD -------------------------------------------------------------------- 60 0.06 $100,000 $100,000 $5,000 $5,000 61 0.06 $100,297 $100,700 $5,035 $5,035 62 0.06 $100,611 $101,015 $5,051 $5,051 63 0.06 $100,942 $101,348 $5,067 $5,067 64 0.06 $101,292 $101,699 $5,085 $5,085 65 0.06 $101,661 $102,069 $5,103 $5,103 66 0.06 $102,051 $102,461 $5,123 $5,123 67 0.06 $102,463 $102,874 $5,144 $5,144 68 0.06 $102,897 $103,310 $5,166 $5,166 69 0.06 $103,356 $103,771 $5,189 $5,189 70 0.06 $103,840 $104,257 $5,213 $5,213 71 0.06 $104,352 $104,771 $5,239 $5,239 72 0.06 $104,891 $105,313 $5,266 $5,266 73 0.06 $105,461 $105,885 $5,294 $5,294 74 0.06 $106,063 $106,489 $5,324 $5,324 75 0.06 $106,698 $107,127 $5,356 $5,356 76 0.06 $107,369 $107,800 $5,390 $5,390 77 0.06 $108,077 $108,511 $5,426 $5,426 78 0.06 $108,825 $109,262 $5,463 $5,463 79 0.06 $109,614 $110,054 $5,503 $5,503 80 0.06 $110,447 $110,891 $5,545 $5,545 81 0.06 $111,330 $110,891 $5,545 $5,567 82 0.06 $112,267 $110,891 $5,545 $5,613 83 0.06 $113,259 $110,891 $5,545 $5,663 84 0.06 $114,311 $110,891 $5,545 $5,716 85 0.06 $115,426 $110,891 $5,545 $5,771 AGE PAYMENT DEATH ACCOUNT BOY ACTUAL WD BASE EOY BENEFIT EOY VALUE EOY FEE ------- ------------------------------------------------------- 60 $5,000 $100,000 $95,000 $100,700 $403 61 $5,000 $100,700 $90,000 $101,015 $404 62 $5,000 $101,015 $85,000 $101,348 $405 63 $5,000 $101,348 $80,000 $101,699 $407 64 $5,000 $101,699 $75,000 $102,069 $408 65 $5,000 $102,069 $70,000 $102,461 $410 66 $5,000 $102,461 $65,000 $102,874 $411 67 $5,000 $102,874 $60,000 $103,310 $413 68 $5,000 $103,310 $55,000 $103,771 $415 69 $5,000 $103,771 $50,000 $104,257 $417 70 $5,000 $104,257 $45,000 $104,771 $419 71 $5,000 $104,771 $40,000 $105,313 $421 72 $5,000 $105,313 $35,000 $105,885 $424 73 $5,000 $105,885 $30,000 $106,489 $426 74 $5,000 $106,489 $25,000 $107,127 $429 75 $5,000 $107,127 $20,000 $107,800 $431 76 $5,000 $107,800 $15,000 $108,511 $434 77 $5,000 $108,511 $10,000 $109,262 $437 78 $5,000 $109,262 $5,000 $110,054 $440 79 $5,000 $110,054 $0 $110,891 $444 80 $5,000 $110,891 $0 $111,774 $444 81 $5,000 $110,891 $0 $112,710 $444 82 $5,000 $110,891 $0 $113,703 $444 83 $5,000 $110,891 $0 $114,755 $444 84 $5,000 $110,891 $0 $115,870 $444 85 $5,000 $110,891 $0 $117,052 $444
ASSUMPTIONS: LEGEND: --------------------------------------------------------------------------------------- Age 60 BOY Beginning of Year Annual withdrawals taken, within limit EOY End of Year Market Performance = Annual 6% Gain WD Withdrawal
APP D-7 -------------------------------------------------------------------------------- LIFETIME INCOME BUILDER The following table is intended to reflect the effect of negative market performance on The Hartford's Lifetime Income Builder Benefit Amount Death Benefit and Rider Fee, and on The Hartford's Lifetime Income Builder II Payment Base, Death Benefit and Rider Fee.
AGE ACCOUNT BENEFIT GUARANTEED BOY RETURN VALUE BOY AMOUNT BOY WD ACTUAL WD ----------------------------------------------------------------------------------- 60 -0.06 $100,000 $100,000 $5,000 $5,000 61 -0.06 $88,920 $95,000 $5,000 $5,000 62 -0.06 $78,525 $90,000 $5,000 $5,000 63 -0.06 $68,773 $85,000 $5,000 $5,000 64 -0.06 $59,627 $80,000 $5,000 $5,000 65 -0.06 $51,049 $75,000 $5,000 $5,000 66 -0.06 $43,006 $70,000 $5,000 $5,000 67 -0.06 $35,466 $65,000 $5,000 $5,000 68 -0.06 $28,398 $60,000 $5,000 $5,000 69 -0.06 $21,774 $55,000 $5,000 $5,000 70 -0.06 $15,568 $50,000 $5,000 $5,000 71 -0.06 $9,754 $45,000 $5,000 $5,000 72 -0.06 $4,308 $40,000 $5,000 $5,000 73 -0.06 $0 $35,000 $5,000 $5,000 74 -0.06 $0 $30,000 $5,000 $5,000 75 -0.06 $0 $25,000 $5,000 $5,000 76 -0.06 $0 $20,000 $5,000 $5,000 77 -0.06 $0 $15,000 $5,000 $5,000 78 -0.06 $0 $10,000 $5,000 $5,000 79 -0.06 $0 $5,000 $5,000 $5,000 80 -0.06 $0 $0 $5,000 $5,000 81 -0.06 $0 $0 $5,000 $5,000 82 -0.06 $0 $0 $5,000 $5,000 83 -0.06 $0 $0 $5,000 $5,000 84 -0.06 $0 $0 $5,000 $5,000 85 -0.06 $0 $0 $5,000 $5,000 DEATH BENEFIT AGE BENEFIT EOY = BA ACCOUNT BOY AMOUNT EOY EOY VALUE EOY FEE --------- ------------------------------------------------------------------ 60 $95,000 $95,000 $89,300 $380 61 $90,000 $90,000 $78,885 $360 62 $85,000 $85,000 $69,113 $340 63 $80,000 $80,000 $59,947 $320 64 $75,000 $75,000 $51,349 $300 65 $70,000 $70,000 $43,286 $280 66 $65,000 $65,000 $35,726 $260 67 $60,000 $60,000 $28,638 $240 68 $55,000 $55,000 $21,994 $220 69 $50,000 $50,000 $15,768 $200 70 $45,000 $45,000 $9,934 $180 71 $40,000 $40,000 $4,468 $160 72 $35,000 $35,000 $0 $0 73 $30,000 $30,000 $0 $0 74 $25,000 $25,000 $0 $0 75 $20,000 $20,000 $0 $0 76 $15,000 $15,000 $0 $0 77 $10,000 $10,000 $0 $0 78 $5,000 $5,000 $0 $0 79 $0 $0 $0 $0 80 $0 $0 $0 $0 81 $0 $0 $0 $0 82 $0 $0 $0 $0 83 $0 $0 $0 $0 84 $0 $0 $0 $0 85 $0 $0 $0 $0
ASSUMPTIONS: LEGEND: --------------------------------------------------------------------------------------- Age 60 BOY Beginning of Year Annual withdrawals taken, within limit EOY End of Year Market Performance = Annual 6% Loss WD Withdrawal
APP D-8 -------------------------------------------------------------------------------- LIFETIME INCOME BUILDER II The following example is intended to reflect the effect of negative market performance on The Hartford's Lifetime Income Builder Benefit Amount, Death Benefit, and Rider Fee, and on The Hartford's Lifetime Income Builder II Payment Base, Death Benefit, and Rider Fee.
AGE ACCOUNT PAYMENT GUARANTEED MAXIMUM BOY RETURN VALUE BOY BASE BOY WD WD ------------------------------------------------------------------ 60 -0.06 $100,000 $100,000 $5,000 $5,000 61 -0.06 $88,900 $100,000 $5,000 $5,000 62 -0.06 $78,466 $100,000 $5,000 $5,000 63 -0.06 $68,658 $100,000 $5,000 $5,000 64 -0.06 $59,439 $100,000 $5,000 $5,000 65 -0.06 $50,772 $100,000 $5,000 $5,000 66 -0.06 $42,626 $100,000 $5,000 $5,000 67 -0.06 $34,968 $100,000 $5,000 $5,000 68 -0.06 $27,770 $100,000 $5,000 $5,000 69 -0.06 $21,004 $100,000 $5,000 $5,000 70 -0.06 $14,644 $100,000 $5,000 $5,000 71 -0.06 $8,665 $100,000 $5,000 $5,000 72 -0.06 $3,045 $100,000 $5,000 $5,000 73 -0.06 $0 $100,000 $5,000 $5,000 74 -0.06 $0 $100,000 $5,000 $5,000 75 -0.06 $0 $100,000 $5,000 $5,000 76 -0.06 $0 $100,000 $5,000 $5,000 77 -0.06 $0 $100,000 $5,000 $5,000 78 -0.06 $0 $100,000 $5,000 $5,000 79 -0.06 $0 $100,000 $5,000 $5,000 80 -0.06 $0 $100,000 $5,000 $5,000 81 -0.06 $0 $100,000 $5,000 $5,000 82 -0.06 $0 $100,000 $5,000 $5,000 83 -0.06 $0 $100,000 $5,000 $5,000 84 -0.06 $0 $100,000 $5,000 $5,000 85 -0.06 $0 $100,000 $5,000 $5,000 AGE PAYMENT DEATH ACCOUNT BOY ACTUAL WD BASE EOY BENEFIT EOY VALUE EOY FEE ------- ------------------------------------------------------- 60 $5,000 $100,000 $95,000 $89,300 $400 61 $5,000 $100,000 $90,000 $78,866 $400 62 $5,000 $100,000 $85,000 $69,058 $400 63 $5,000 $100,000 $80,000 $59,839 $400 64 $5,000 $100,000 $75,000 $51,172 $400 65 $5,000 $100,000 $70,000 $43,026 $400 66 $5,000 $100,000 $65,000 $35,368 $400 67 $5,000 $100,000 $60,000 $28,170 $400 68 $5,000 $100,000 $55,000 $21,404 $400 69 $5,000 $100,000 $50,000 $15,044 $400 70 $5,000 $100,000 $45,000 $9,065 $400 71 $5,000 $100,000 $40,000 $3,445 $400 72 $5,000 $100,000 $35,000 $0 $400 73 $5,000 $100,000 $30,000 $0 $0 74 $5,000 $100,000 $25,000 $0 $0 75 $5,000 $100,000 $20,000 $0 $0 76 $5,000 $100,000 $15,000 $0 $0 77 $5,000 $100,000 $10,000 $0 $0 78 $5,000 $100,000 $5,000 $0 $0 79 $5,000 $100,000 $0 $0 $0 80 $5,000 $100,000 $0 $0 $0 81 $5,000 $100,000 $0 $0 $0 82 $5,000 $100,000 $0 $0 $0 83 $5,000 $100,000 $0 $0 $0 84 $5,000 $100,000 $0 $0 $0 85 $5,000 $100,000 $0 $0 $0
ASSUMPTIONS: LEGEND: --------------------------------------------------------------------------------------- Age 60 BOY Beginning of Year Annual withdrawals taken, within limit EOY End of Year Market Performance = Annual 6% Loss WD Withdrawal
APP D-9 ------------------------------------------------------------------------------- B. THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS AND THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS CONVERSION PROGRAM We reserve the right, in our sole discretion, to offer Eligible Contract Owners the opportunity to exchange The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation for the currently issued version of either The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios subject to the terms and conditions below. The availability of the conversion program is at our discretion and may be withdrawn in whole, or in part, at any time without notice. The opportunity to convert your rider to The Hartford's Lifetime Income Builder Portfolios will expire 90 days after the effective date of this rider exchange program. You should convert your rider only if it is appropriate for your needs and financial considerations. Please read this prospectus carefully and discuss this conversion with your Registered Representative prior to electing to participate in this conversion program. I. WHO IS ELIGIBLE TO PARTICIPATE IN THIS CONVERSION PROGRAM? This conversion program is available to Owners who meet ALL of the following qualifications ("Eligible Contract Owners"): You must: - If electing The Hartford's Lifetime Income Builder Portfolios, you must have purchased a deferred individual annuity contract from us between 1/1/08 - 5/3/08 (or later if The Hartford's Lifetime Income Builder Portfolios was not approved in your state). If electing The Hartford's Lifetime Income Builder Selects, you must have purchased a deferred individual annuity contract from us after 11/01/05 (each, an "Eligible Contract"). You must still own such Contract as of the conversion date (defined below); and - Have previously elected The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation at the time of purchase or as a result of a Company-sponsored exchange program; and - Be a customer of a Financial Intermediary that has approved the sale of The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios; and - The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios are approved for sale in your state. You must not be age 81 or older as of the conversion date (including any other Covered Life). II. WHAT ARE KEY DIFFERENCES BETWEEN THE NEW RIDERS AND MY CURRENT RIDER? Please refer to Appendix B for a table describing some of the key differences between The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Foundation, The Hartford's Lifetime Income Builder II, The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios. III. HOW DOES THE CONVERSION PROCESS WORK? - You must complete a Conversion Program Form to exchange your The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation rider. The date that you comply with all our requirements to exchange your existing rider ("conversion date") will be the date we use to set your benefits under your The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios rider selected. We will also use the conversion date for establishing your eligibility for this conversion program. Your request for conversion will not be in good order until the requisite fund transfers are made. - If you elect either The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios, you must abide by all restrictions applicable to these riders, including, but not limited to, investment restrictions described in this prospectus. - Except as modified by this election, your existing Contract and all other features and functions previously selected will be and remain in full force and effect after the conversion date. - You may not cancel your election after the conversion date. - A prorated final rider charge for your pre-conversion rider will be assessed as of the conversion date. There are no exchange or transfer fees associated with making this election. - Your Contract Value as of the conversion date will become your new Payment Base. YOUR PAYMENT BASE UNDER YOUR EXISTING RIDER WILL NOT CARRY OVER AS YOUR NEW PAYMENT BASE. APP D-10 ------------------------------------------------------------------------------- - Your Withdrawal Percent under The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios is based on the attained age of the relevant Covered Life on the effective date of the conversion. If the Withdrawal Percent had been locked in under The Hartford's Lifetime Income Builder, The Hartford's Lifetime Income Builder II or The Hartford's Lifetime Income Foundation, it will be unlocked and reset upon conversion. - Your new death benefit will equal your Contract Value on the effective date of the conversion and thereafter will operate under the terms of the Guaranteed Minimum Death Benefit. CONVERSION OF YOUR RIDER MAY HAVE THE AFFECT OF REDUCING YOUR DEATH BENEFIT. - Your Lifetime Benefit Payment will be equal to your Payment Base multiplied by your Withdrawal Percent for the remainder of the rider year. Your Lifetime Benefit Payment will reset upon the next Contract Anniversary according to the terms of the rider you selected. - All Joint Owners and the Annuitant must consent to this conversion. - Any changes in Covered Lives will affect your benefits under your new riders. - The survivorship option selected under your existing riders may not be amended in connection with your exercising your conversion privileges. IV. WHAT OTHER THINGS SHOULD BE CONSIDERED? - YOUR PAYMENT BASE, GUARANTEED MINIMUM DEATH BENEFIT, AND LIFETIME BENEFIT PAYMENTS MAY BE LOWER AND RIDER CHARGES MAY BE HIGHER THAN, THOSE AVAILABLE UNDER YOUR CURRENT RIDER. - You should discuss with your Registered Representative whether or not converting your rider is suitable for you and your particular needs, investment horizon and financial plans. You should discuss your particular circumstances and the tax consequences of this conversion with your tax advisor, as we make no representation regarding the tax consequences of an exchange of these riders. - We are not obligated to offer rider conversion privileges if and once this offer is withdrawn. - These conversion privileges may not be available through all Financial Intermediaries. - For a comparison of the features of each rider, please see Appendix B, and read sections describing each rider below. APP D-11 ------------------------------------------------------------------------------- C. THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS AND THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS OBJECTIVE The objective of these two different riders is to (i) protect your investment from poor market performance; (ii) provide longevity protection through Lifetime Benefit Payments; and (iii) provide Death Benefit protection. HOW DO THE RIDERS HELP ACHIEVE THIS GOAL? - LIFETIME WITHDRAWAL FEATURE. Provided you follow the rules below, the riders provide a series of Lifetime Benefit Payments payable in each Contract Year following the Relevant Covered Life's Lifetime Income Eligibility Date until the first death of any Covered Life ("Single Life Option") or until the second death of any Covered Life ("Joint/Spousal Option"). Lifetime Benefit Payments are maximum amounts that can be withdrawn each year based on the rider chosen: Lifetime Income = Payment Base or Contract x Withdrawal Percent Builder Selects Value, whichever is higher - or - Lifetime Income = Payment Base x Withdrawal Percent Builder Portfolios
- GUARANTEED MINIMUM DEATH BENEFIT. This guaranteed minimum Death Benefit provides a Death Benefit equal to the greater of Premium Payments (adjusted for partial Surrenders) or Contract Value as of the date due proof of death is received by us for any Contract Owner or Annuitant. PARTIAL SURRENDERS WILL REDUCE OR ELIMINATE THE GUARANTEED MINIMUM DEATH BENEFIT. THIS GUARANTEED MINIMUM DEATH BENEFIT REPLACES THE STANDARD DEATH BENEFITS PROVIDED UNDER THIS CONTRACT. See Optional Benefit Comparisons in Appendix B. WHEN CAN YOU BUY THE RIDERS? Subject to state availability, you may elect either rider if you are eligible to participate in a designated Company sponsored exchange program. The benefits comprising either rider may not be purchased separately. The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios riders are sold separately. These riders may not be available through all Registered Representatives and may be subject to additional restrictions set by your Registered Representative or us. We reserve the right to withdraw either or both riders and any options at any time. When you buy either rider, you must provide us with the names and date of birth of the Owner, any joint Owner, Annuitant and Beneficiary. We then determine who the "Relevant Covered Life" and other "Covered Lives" will be when establishing the Withdrawal Percent. - A Covered Life must be a living person. If you choose the Joint/Spousal Option, we reserve the right to (a) prohibit non-natural entities from being designated as an Owner, (b) prohibit anyone other than your Spouse from being a joint Owner; and (c) impose other designation restrictions from time to time. - For the Single Life Option, the Covered Life is most often the same as the Contract Owner and joint Owner (which could be two different people). In the Joint/Spousal Option, the Covered Life is most often the Contract Owner, and his or her Spouse is the joint Owner or Beneficiary. - The Relevant Covered Life will be one factor used to establish your Withdrawal Percent. When the Single Life Option is chosen, we use the older Covered Life as the Relevant Covered Life; and when the Joint/Spousal Option is chosen, we use the younger Covered Life as the Relevant Covered Life. The maximum age of any Contract Owner or Annuitant when electing either rider is 80. These age restrictions also apply to the Beneficiary when the Joint/Spousal Option is chosen. DOES ELECTING EITHER RIDER FORFEIT YOUR ABILITY TO BUY OTHER RIDERS? Yes. If you elect either rider, you may not elect any rider other than MAV Plus (MAV only in applicable states). HOW IS THE CHARGE FOR EITHER RIDER CALCULATED? The fee for the riders is based on your then current Payment Base (not your Contract Value) as of each Contract Anniversary. This charge will automatically be deducted from your Contract Value on your Contract Anniversary AFTER your Anniversary Value and Payment Base have been computed and prior to all other financial transactions. In the event of a full Surrender, a prorated charge will be deducted from your Surrender Value. The charge for the riders will be withdrawn from each Sub-Account and the Fixed Accumulation Feature in the same proportion that the value of each Sub-Account bears to the total Contract Value. Except as otherwise provided below, we will continue to deduct this charge until we begin to make Annuity Payouts. The rider charge may limit access to the Fixed Accumulation Feature in certain states. APP D-12 ------------------------------------------------------------------------------- We reserve the right to increase the charge for either or both riders (and any option) up to the maximum fees described in the Synopsis at any time 12 months after either riders' effective date. The fee increase will only apply if you are eligible for future automatic Payment Base and/or Withdrawal Percent increases. Any future fee increase will be based on the charge that we are then currently charging other customers who have not previously elected such rider. If we cease sales of either or both riders, we will predetermine the rider charge on a non-discriminatory basis. Fee increases will not apply if (a) the age of the Relevant Covered Life is 80 or older; (b) you notify us in writing of your election to permanently waive automatic Payment Base and Withdrawal Percent increases; or (c) we convert your benefits based on our Minimum Amount rules defined in your Contract. This fee may not be the same as the fee that we charge new purchasers or the fee we set before we cease offering either or both riders (or options). Subject to the foregoing limitation, we also reserve the right to charge a different fee for either rider (or options) to any new Contract Owners as a result of a change of Covered Life. Unless exempt, we will automatically deduct rider fees, as they may be increased from time to time. DOES THE PAYMENT BASE CHANGE UNDER EITHER RIDER? Yes, your initial Payment Base equals your initial Premium Payment except in regard to a company sponsored-exchange program. Your Payment Base will fluctuate based on: - automatic Payment Base increases; and - subsequent Premium Payments; and - partial Surrenders (including partial Surrenders taken prior to the Lifetime Income Eligibility Date or if the amount of the partial Surrender exceeds either your Threshold or Lifetime Benefit Payment amount). - Automatic Payment Base Increase: Your automatic annual Payment Base increase varies depending on whether you choose The Hartford's Lifetime Income Builder Selects or The Hartford's Lifetime Income Builder Portfolios. The following table describes how these options operate:
THE HARTFORD'S LIFETIME INCOME BUILDER SELECTS THE HARTFORD'S LIFETIME INCOME BUILDER PORTFOLIOS ------------------------------------------------------------------------------------------------------------------------------------ New Payment Base [(current Anniversary Value (prior to the rider charge The higher of current Contract Value or Payment Base being taken) divided by your prior Payment Base)] multiplied by your prior Payment Base Annual Payment Base 0% - 10% Unlimited increase limits
We will determine if you are eligible for annual automatic Payment Base increases on each Contract Anniversary. Automatic Payment Base increases will cease upon the earliest of: - your Annuity Commencement Date; - the Contract Anniversary immediately following the Relevant Covered Life's attained age of 80; or - You waive your right to receive automatic Payment Base increases. Your Payment Base can never be less than $0 or more than $5 million. Any activities that would otherwise increase the Payment Base above this ceiling will not be included for any benefits under either rider. See Examples 16 and 17 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix I. - Subsequent Premium Payments increase your Payment Base on a dollar-for-dollar basis. See Examples 10 and 11 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix I. - Partial Surrenders may trigger a recalculation of the Payment Base depending on (a) whether the partial Surrender takes place prior to the Lifetime Income Eligibility Date, and (b) if the cumulative amount of all partial Surrenders during any Contract Year exceeds the applicable limits as discussed below: A. If cumulative partial Surrenders taken during any Contract Year and prior to the Lifetime Income Eligibility Date, are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Payment Base on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to the Lifetime Income Eligibility Date are greater than the Threshold (subject to rounding), then we will reduce the Payment Base on a (i) dollar-for-dollar basis up to the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. APP D-13 ------------------------------------------------------------------------------- B. If cumulative partial Surrenders taken after the Lifetime Income Eligibility Date are equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will not reduce the Payment Base. C. For any partial Surrender that causes cumulative partial Surrenders after the Lifetime Income Eligibility Date to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Payment Base on a proportionate basis for the amount in excess of the Lifetime Benefit Payment. See Examples 3-9 and 12-15 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix I - Covered Life changes may also trigger a recalculation of your Payment Base, Lifetime Benefit Payment, Guaranteed Minimum Death Benefit and rider fees. See "WHAT HAPPENS IF YOU CHANGE OWNERSHIP?" below. - Option Conversion. We reserve the right to offer a one-time only conversion from The Hartford's Lifetime Income Builder Selects to The Hartford's Lifetime Income Builder Portfolios, or vice versa, on or after the first Contract Anniversary after the rider has been in effect and prior to the Relevant Covered Life's reaching attained age 81. Your then current Payment Base will be your new Payment Base for the purposes of the converted rider. This conversion will go into effect on the next following Contract Anniversary. A conversion notice must be received by us in good order between 30 days prior to, or within 15 days after, a Contract Anniversary. This privilege may be withdrawn at our sole discretion at any time without prior notice. The rider fee and any associated restrictions will be based on the rider then in effect. You may rescind your election within 15 days after making your election. Upon rescission; however, your Payment Base will be reset at the LOWER of the then applicable Payment Base or the Contract Value at the time of rescission. RESCISSION OF A CONVERSION OPTION MAY THEREFORE RESULT IN A PERMANENT REDUCTION OF BENEFITS. Once rescinded, this privilege will be terminated. - Partial Surrenders taken during any Contract Year that cumulatively exceed the Annual Withdrawal Amount but do not exceed the Lifetime Benefit Payment will be free of any applicable CDSC. IS EITHER RIDER DESIGNED TO PAY YOU WITHDRAWAL BENEFITS FOR YOUR LIFETIME? Yes. However, withdrawals taken prior to the Lifetime Income Eligibility Date are not guaranteed to be available throughout your lifetime. Such withdrawals will reduce (and may even eliminate) the Payment Base otherwise available to establish Lifetime Benefit Payments and Guaranteed Minimum Death Benefits. As shown in the following table, the Withdrawal Percent for all partial Surrenders taken BEFORE the Lifetime Income Eligibility Date will be 5% (Single Life Option) or 4.5% (Joint/Spousal Option). In contrast, the Withdrawal Percent for partial Surrenders taken AFTER the Lifetime Income Eligibility Date will be based on the chronological age of the Relevant Covered Life at the time of the first withdrawal as shown below:
WITHDRAWAL PERCENT SINGLE LIFE JOINT/SPOUSAL RELEVANT COVERED LIFE ATTAINED AGE OPTION OPTION -------------------------------------------------------------------------------- [LESS THAN]59 1/2 - 64 5.0% 4.5% 65 - 69 5.5% 5.0% 70 - 74 6.0% 5.5% 75 - 79 6.5% 6.0% 80+ 7.0% 6.5%
Your Withdrawal Percentage will increase according to this schedule if: - You are entitled to an automatic Payment Base increase during the Contract Year when the Relevant Covered Life's birthday coincides with a new age band; and - You have not waived your obligation to pay potential rider fee increases. Your new Withdrawal Percent will take effect on either of the following dates depending on whether a partial Surrender was ever taken: - If a partial Surrender HAS NOT been taken, your new Withdrawal Percent will be effective on the next birthday that brought the Relevant Covered Life into a new Withdrawal Percent age band; or - If a partial Surrender HAS been taken, then your new Withdrawal Percent will be effective as of the Contract Anniversary when the next automatic Payment Base increase occurs after the birthday that brought you into a new Withdrawal Percent age band (and not that birthday). APP D-14 ------------------------------------------------------------------------------- See "WHAT HAPPENS IF YOU CHANGE OWNERSHIP?" for a description of circumstances when your Withdrawal Percent may change based on a permissible Covered Life change. See Examples 1-3 and 20 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix I. IS EITHER RIDER DESIGNED TO PAY YOU DEATH BENEFITS? Yes. This Guaranteed Minimum Death Benefit guarantees that we will pay a Death Benefit equal to the greater of Premium Payments adjusted for partial Surrenders or Contract Value as of the date we receive due proof of death of the Contract Owner(s) or Annuitant. Termination of either rider will result in the rescission of the Guaranteed Minimum Death Benefit and result in your Beneficiary receiving the Contract Value as of the date we receive due proof of death. For Joint/Spousal election of either rider, no Death Benefit will be available when a Relevant Covered Life is the Beneficiary and the Beneficiary dies. Partial Surrenders will affect the Guaranteed Minimum Death Benefit as follows: A. If cumulative partial Surrenders taken prior to the Lifetime Income Eligibility Date are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to the Lifetime Income Eligibility Date are greater than the Threshold (subject to rounding), then we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold. B. If cumulative partial Surrenders after the Lifetime Income Eligibility Date are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. C. For any partial Surrender that causes cumulative partial Surrenders after the Lifetime Income Eligibility Date to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Lifetime Benefit Payment. Please refer to the section labeled "CAN YOUR SPOUSE CONTINUE YOUR LIFETIME WITHDRAWAL FEATURE" for more information on the continuation of the Lifetime Benefit Payments by your Spouse. DOES EITHER RIDER REPLACE THE STANDARD DEATH BENEFIT? YES, IT PERMANENTLY REPLACES THE STANDARD DEATH BENEFIT. The Guaranteed Minimum Death Benefit will be reset to equal Contract Value when there is a Covered Life change that exceeds the permissible age limitation under either rider. This may also occur for the Single Life Option when the spouse elects Spousal Contract continuation and the new Covered Life exceeds the age limit. CAN YOU REVOKE THIS RIDER? No. However, a Company-sponsored exchange of this rider will not be considered to be a revocation by you of either rider. WHAT EFFECT DOES PARTIAL OR FULL SURRENDERS HAVE ON YOUR BENEFITS UNDER THIS RIDER? Please refer to "DOES THE BENEFIT AMOUNT/PAYMENT BASE CHANGE UNDER EITHER RIDER?" for the effect of partial Surrenders on your Payment Base, Guaranteed Minimum Death Benefit and Lifetime Benefit Payments. You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value with any applicable charges deducted and not the Payment Base or any Lifetime Benefit Payment that you would have received under either rider. If your Contract Value on any Contract Anniversary is ever reduced below the minimum amount (as defined in your Contract -- generally, the greater of $500 or one Lifetime Benefit Payment) as a result of investment performance or if on any Valuation Day a partial Surrender is taken that reduces your Contract Value below the minimum amount, then the following will occur: - We will no longer accept subsequent Premium Payments; and - You will be required to either make a full Surrender or promptly transfer your remaining Contract Value to an approved Sub-Account(s) and/or Programs (failure to do so after a reasonable amount of time being deemed as acquiescence to our reallocation of these sums to the Money Market Sub-Account); and - Lifetime Benefit Payments will continue; and - Your Guaranteed Minimum Death Benefit will continue to be reduced by Lifetime Benefit Payments until reduced to zero at which time your Death Benefit shall be equal to your Contract Value; and - All other privileges under either rider will terminate and you will no longer be charged a rider fee or Annual Maintenance Fee; and APP D-15 ------------------------------------------------------------------------------- - If any amount greater than a Lifetime Benefit Payment is requested, the Contract will be liquidated, the rider will terminate and the Guaranteed Minimum Death Benefit will be lost. See Examples 21 and 22 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix I. WHAT HAPPENS IF YOU CHANGE OWNERSHIP? Inasmuch as this rider is affected by changes to the Covered Life, only these types of changes are discussed below. We reserve the right to approve all Covered Life changes. Certain approved changes in the designation of the Covered Life may cause a recalculation of the benefits. Covered Life changes also allow us, in our discretion, to impose investment restrictions, as described below. Any Covered Life change made within the first 6 months from the Contract Issue date will have no impact on the Payment Base or Guaranteed Minimum Death Benefit as long as each succeeding Covered Life is less than the maximum age limitation of the applicable rider at the time of the change. The Withdrawal Percent and Lifetime Benefit Payment will thereafter change based on the age of the new relevant Covered Life. After the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have not yet been taken, in the event that you and your Spouse become legally divorced, you may add a new Spouse to the Contract. Provided that the age limitation of the rider is not exceeded, the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the younger Covered Life as of the date of the change. The charge for this rider will remain the same. Alternatively, if after the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and Surrenders have been taken, in the event that you and your Spouse become legally divorced, you may only remove your ex-Spouse from the Contract whereupon the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the remaining Covered Life as of the date of the change. The charge for this rider will remain the same. You may not convert your Joint/Spousal Option election to a Single Life Option. In addition, after the first six months following the Contract issue date, if any Covered Life change takes place that is not due to a divorce, then: A. If the older Covered Life after the change is equal to or less than the maximum age limitation of the rider at the time of the change, then we will revoke the Lifetime Withdrawal Feature of either rider and continue the Guaranteed Minimum Death Benefit only. The charge for the rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter. B. If the older Covered Life after the change exceeds the maximum age limitation of either rider at the time of the change, or we no longer offer either rider, then the rider will terminate. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If you elected the Single Life Option and any Covered Life changes after the first 6 months from Contract Issue date, then: A. If we no longer offer such rider, we will continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change; whereupon the Lifetime Withdrawal Feature will terminate. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter; or B. If we offer such rider, then we will use the attained age of the older Covered Life as of the date of the Covered Life change to reset the Withdrawal Percent. The Payment Base will be recalculated to be the lesser of the Contract Value or the Payment Base effective on the date of the change. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change; or C. If we offer such rider and the older Covered Life after the change exceeds the maximum age limitation of this rider at the time of the change; the rider will be terminated and removed from the Contract. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value. If such rider is no longer available for sale, we will determine the issue age limitation of the rider on a non-discriminatory basis. The following tables illustrate only some of the various changes and the resulting outcomes associated with deaths of the Contract Owner(s) or Annuitant before and after the Annuity Commencement Date. APP D-16 ------------------------------------------------------------------------------- SINGLE LIFE OPTION ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving The Annuitant is living or Joint Contract Owner receives non-spousal Contract Owner deceased the Death Benefit and this rider terminates Contract Owner There is a surviving spousal The Annuitant is living or Joint Contract Owner receives Contract Owner deceased the Death Benefit and this rider can continue under Spousal Contract continuation Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Designated Owner deceased Beneficiary receives the Death Benefit Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates. Estate Owner or Beneficiary deceased receives the Death Benefit Annuitant Contract Owner is living There is no Contingent Contract continues, no Death Annuitant and the Contract Benefit is paid, and this rider Owner becomes the Contingent continues Annuitant Annuitant Contract Owner is living There is no Contingent Rider terminates and Contract Annuitant and the Contract Owner receives the Death Owner waives their right to Benefit become the Contingent Annuitant Annuitant Contract Owner is Living Contingent Annuitant is Living Contingent Annuitant becomes the Annuitant and the Contract and this rider continues
JOINT/SPOUSAL ELECTION: IF THE DECEASED IS . . . AND . . . AND . . . THEN THE . . . Contract Owner There is a surviving Contract The Annuitant is living or The surviving Contract Owner Owner deceased continues the Contract and rider; we will increase the Contract Value to the Death Benefit value Contract Owner There is no surviving Contract The Spouse is the sole primary Follow Spousal Contract Owner beneficiary continuation rules for joint life elections Contract Owner There is no surviving Contract The Annuitant is living or Rider terminates and Contract Owner or Beneficiary deceased Owner's estate receives the Death Benefit Annuitant The Contract Owner is living There is a Contingent Annuitant The Rider continues; upon the death of the last surviving Covered Life, the rider will terminate.
CAN YOUR SPOUSE CONTINUE YOUR LIFETIME WITHDRAWAL FEATURE? - SINGLE LIFE OPTION: If a Covered Life dies and the sole Beneficiary is the deceased Covered Life's Spouse at the time of death, such Spouse may continue the Contract. If the Spouse elects to continue the Contract and such rider, we will continue the rider with respect to all Lifetime Withdrawal Benefits at the charge that is currently being assessed for new sales at the time of continuation. We will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater. The Covered Life will be re-determined on the date of Spousal Contract continuation. If the new Covered Life is less than age 81 at the time of the Spousal Contract continuation, and such rider (or a similar rider, as we determine) is still available for sale, the Payment Base and the Guaranteed Minimum Death Benefit will be set equal to the Contract Value, the Withdrawal Percent will be recalculated based on the age of the older remaining Covered Life on the APP D-17 ------------------------------------------------------------------------------- effective date of the Spousal Contract continuation. If the new Covered Life is 81 or older at the time of the Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will be equal to the Contract Value. If we are no longer offering such rider at the time of Spousal Contract continuation, we will revoke the Lifetime Withdrawal Feature, the Guaranteed Minimum Death Benefit will be set equal to the Contract Value and the rider charge will no longer be assessed. - JOINT/SPOUSAL OPTION: Either rider is designed to facilitate the continuation of your rights under the rider by your Spouse through the inclusion of a Joint/Spousal Option. If a Covered Life dies and the Spouse elects to continue the Contract, we will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater and we will continue the rider with respect to all benefits at the current rider charge. The benefits will be reset as follows: - The Payment Base will be equal to the greater of Contract Value or the Payment Base on the Spousal Contract continuation date; - The Guaranteed Minimum Death Benefit will be equal to the Contract Value on the Spousal Contract continuation date; - The Withdrawal Percent will remain at the current percentage if partial Surrenders have commenced; otherwise the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Spousal Contract continuation date; and - The Lifetime Benefit Payment will be recalculated. The remaining Covered Life can not name a new owner on the Contract. Any new Beneficiary that is added to the Contract will not be taken into consideration as a Covered Life. Either rider will terminate upon the death of the remaining Covered Life. See Examples 18 and 19 under The Hartford's Lifetime Income Builder Selects and The Hartford's Lifetime Income Builder Portfolios in Appendix I. WHAT HAPPENS IF YOU ANNUITIZE YOUR CONTRACT? If you elect to annuitize your Contract prior to reaching the Annuity Commencement Date, you may only annuitize your Contract Value and will not be able to elect any of the annuitization options allowed under this rider. If your Contract reaches the Annuity Commencement Date, the Contract must be annuitized unless we agree to extend the Annuity Commencement Date, in our sole discretion. In this circumstance, the Contract may be annuitized under our standard annuitization rules or, alternatively, under the rules applicable when the Contract Value is below our Minimum Amount rule then in effect. If your Contract Value is reduced below our Minimum Amount rule (as defined in your Contract), then in effect, your Annuity Commencement Date will be attained and we will no longer accept subsequent Premium Payments. We will then issue you a payout annuity. You may elect the frequency of your payments from those offered by us at such time, but will not be less frequently than annually. - SINGLE LIFE OPTION: If you have elected the Single Life Option, we will issue you a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the Covered Life determined at Annuity Commencement Date. We treat the Covered Life as the Annuitant for this payout option. If there is more than one Covered Life, then the lifetime portion will be based on both Covered Lives. The Covered Lives will be the Annuitant and joint Annuitant for this payout option. The lifetime portion will terminate on the first death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit under this rider. If the older Annuitant is age 59 1/2 or younger, we will automatically defer the date the payments begin until the anniversary after the older Annuitant attains age 59 1/2 and is eligible to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a minimum number of years. If the Annuitant and joint Annuitant are alive and the older Annuitant is age 59 1/2 or older, you will receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of any Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or the applicable Threshold. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. APP D-18 ------------------------------------------------------------------------------- This option may not be available if the Contract is issued to qualify under Code Sections 401, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. - JOINT/SPOUSAL OPTION: If you have elected the Joint/Spousal Option and both Spouses are alive, we will issue you a Fixed Joint & Survivor Lifetime and Period Certain Payout. If only one Spouse is alive, we will issue a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the surviving Covered Life. The Covered Lives will be the Annuitant and Joint Annuitant for this payout option. The lifetime benefit will terminate on the last death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit. If the younger Annuitant is alive and age 59 1/2 or younger, we will automatically defer the date that payments begin until the anniversary after the younger Annuitant attains age 59 1/2 and is eligible to receive payments in a fixed dollar amount until the death of the last surviving Annuitant or a period certain. If the Annuitant is alive and the younger Annuitant is age 59 1/2 or older, you will receive payments in a fixed dollar amount until the later of the death of the last surviving Annuitant or a minimum number of years. The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of the last Surviving Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or the applicable Threshold. Therefore, the higher your then remaining Guaranteed Minimum Death Benefit is at the time of annuitization, the longer the time period you will be entitled to receive annuitization payments. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of the last surviving Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available. These options may not be available if the Contract is issued to qualify under Code Sections 401, 408, or 457. For such Contracts, this option will be available only if the Period Certain Payout is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us. ARE THERE RESTRICTIONS ON HOW YOU MUST INVEST? Yes, as described in the following table: Lifetime Income Builder We reserve the right to limit the Funds into which you may allocate your Contract Value. We may Selects prohibit investment in certain Funds or require you to allocate your Contract Value only to certain Funds or in accordance with one of a number of model portfolios or Programs. Lifetime Income Builder Your Contract Value must be invested in one or more Programs and in an approved model portfolio, Portfolios Funds or other investment vehicles established from time to time. Permissible portfolios, Funds, Programs or other investment vehicles are described in your application and other communications. Not all model portfolios or Programs are available through all Financial Intermediaries. We may, in our sole discretion, add, replace or alter Funds, Programs and model portfolios from time to time. You will be provided with advance notification of any investment restriction changes. Changes may be made on a prospective basis with respect to any additional Premium Payments received. While you may switch from model portfolio to model portfolio, you can not pick and choose Funds within any model portfolios nor may you specify which Funds should be redeemed to satisfy the Lifetime Withdrawal Feature. You may provide written investment instructions to invest Contract Value in a manner that violates these investment restrictions. Any such action will; however, result in the termination of your rights under either rider.
Investments within model portfolios will fluctuate in value and may be worth more or less than your original investment. We are not responsible for lost investment opportunities associated with the implementation of these investment restrictions. Please refer to each Fund's investment objectives, policies and restrictions and the risks of investing in each Fund as described in this prospectus and the prospectus for each Fund. If your Lifetime Withdrawal Feature is revoked due to failure to comply with the investment restrictions, you will have a one time opportunity to reinstate the Lifetime Withdrawal Feature on your rider. There is a 15 calendar day reinstatement period that will begin from the date your lifetime withdrawal feature is revoked. During the reinstatement period, if you make a subsequent Premium Payment, take a partial Surrender or make a Covered Life change, your opportunity to reinstate will be terminated. APP D-19 ------------------------------------------------------------------------------- Upon reinstatement of your Lifetime Withdrawal Feature under either rider, your Payment Base will be reset at the lower of the Payment Base prior to the revocation and Contract Value as of the date of the reinstatement. Your Withdrawal Percentage will be set equal to the Withdrawal Percentage prior to the Lifetime Withdrawal Feature revocation; unless, if within the reinstatement period you reach a new age band and no partial Surrenders have been taken, then the Withdrawal Percentage will be set equal to the appropriate percentage based on the attained age of the Relevant Covered Life. Your Lifetime Benefit Payment will be recalculated based on the Lifetime Withdrawal Feature values as of the date of the reinstatement. We will deduct a prorated rider charge on your Contract Anniversary following the reinstatement for the time period between the reinstatement date and your first Contract Anniversary following the reinstatement. ARE THERE RESTRICTIONS ON THE AMOUNT OF SUBSEQUENT PREMIUM PAYMENTS? Yes. We reserve the right to require our approval on all subsequent Premium Payments received after the first twelve months. We may not accept any subsequent Premium Payment which brings the total of such cumulative subsequent Premium Payments in excess of $100,000 without prior approval. Following your Annuity Commencement Date, we will no longer accept subsequent Premium Payments. These restrictions are not currently enforced. CAN WE AGGREGATE CONTRACTS? Yes. For purposes of determining the Payment Base and Premium Payment limits, we reserve the right to treat as one all deferred variable annuity Contracts issued by us where you have elected any optional withdrawal benefit rider. If we elect to aggregate Contracts, we will change the period over which we measure Surrenders against future Lifetime Benefit Payments. We will treat the effective date of our aggregation election until the end of the applicable calendar year as a Contract Year for the purposes of the Lifetime Benefit Payment limit. A pro-rata rider fee will be taken at the end of that calendar year. After the first calendar year following aggregation, the Lifetime Benefit Payment limits will be aggregated and will thereafter be set on a calendar year (i.e., January 1 Contract Anniversary) basis. The rider fee then in effect will be taken at the end of each new Contract Anniversary. OTHER INFORMATION This rider may not be appropriate for all investors. Several factors, among others, should be considered: - The benefits under this rider cannot be directly or indirectly assigned, collateralized, pledged or securitized in any way. Any such actions will invalidate the rider and allow us to terminate the rider. - YOUR ANNUAL LIFETIME BENEFIT PAYMENTS MAY FLUCTUATE BASED ON CHANGES IN THE PAYMENT BASE AND CONTRACT VALUE. THE PAYMENT BASE IS SENSITIVE TO PARTIAL SURRENDERS IN EXCESS OF THE THEN CURRENT MAXIMUM LIFETIME BENEFIT PAYMENT OR THRESHOLD. IT IS THEREFORE POSSIBLE THAT SURRENDERS AND SUBSEQUENT PREMIUM PAYMENTS WITHIN THE SAME CONTRACT YEAR, WHETHER OR NOT EQUAL TO ONE ANOTHER, CAN RESULT IN LOWER LIFETIME BENEFIT PAYMENTS. - Annuitizing your Contract, whether voluntary or not, will impact and possibly eliminate these "lifetime" benefits. First, you may no longer invest additional Premium Payments. Second, the Death Benefit will immediately terminate. Third, any Guaranteed Minimum Withdrawal Benefit guarantees you elect may end. In cases where you are required to annuitize, you will forfeit automatic Payment Base increases (if applicable) and lifetime annuitization payments may equal (or possibly exceed) Lifetime Benefit Payments. However, where you elect to annuitize before a required Annuity Commencement Date, lifetime annuitization payments might be less than the income guaranteed by your Guaranteed Minimum Withdrawal Benefit. - If you had elected the conversion option from The Hartford's Lifetime Income Builder Selects to The Hartford's Lifetime Income Builder Portfolios, or vice versa, and subsequently rescinded that election, your Payment Base will be set to the lower of the Payment Base or the Contract Value on the date of the rescission and therefore your old Payment Base will not be restored. The Death Benefit will also be set to the lower of the Guaranteed Minimum Death Benefit and the Contract Value on the date of the rescission. - Even though either rider is designed to provide living benefits, you should not assume that you will necessarily receive payments for life if you have violated any of the terms of this rider. - While there is no minimum age for electing either rider, withdrawals taken prior to the Lifetime Income Eligibility Date will reduce, or can even eliminate guaranteed Lifetime Benefit Payments. PAYMENTS TAKEN PRIOR TO THE LIFETIME INCOME ELIGIBILITY DATE ARE NOT GUARANTEED TO LAST FOR A LIFETIME. Either rider may not be suitable if a Covered Life is under attained age 59 1/2. - The determination of the Relevant Covered Life is established by the Company and is critical to the determination of many important benefits such as the Withdrawal Percent used to set Lifetime Benefit Payments. Applicants should confirm this determination and be sure they fully appreciate its importance before investing. - We may terminate either or both riders post-election based on your violation of benefit rules and may otherwise withdraw such rider (or any option) for new sales at any time. In the event that either rider (or any option) is terminated by us, your Lifetime APP D-20 ------------------------------------------------------------------------------- Benefit Payments will cease; your Payment Base, including any automatic Payment Base increases will be eliminated and the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider. - Unless otherwise provided, you may select either rider only at the time of sale and once you do so, you may not add any other optional withdrawal benefits during the time you own this Contract. If you elect either rider you will not be eligible to elect optional riders other than MAV or MAV Plus. - When the Single Life Option is chosen, Spouses may find continuation of either rider to be unavailable or unattractive after the death of the Contract Owner. Continuation of the benefits available in either optional rider is dependent upon its availability at the time of death of the first Covered Life and will be subject to then prevailing charges. - The Joint/Spousal Option provides that if you and your Spouse are no longer married for any reason other than death, the removal and replacement of your Spouse will constitute a Covered Life change. This can result in the resetting of all benefits under this rider. - Certain Covered Life changes may result in a reduction, recalculation or forfeiture of benefits. - Annuity pay-out options available subsequent to the Annuity Commencement Date may not necessarily provide a stream of income for your lifetime and may be less than Lifetime Benefit Payments. - The fee for either rider may increase any time after 12 months from either rider's effective date if and when automatic Payment Base increases take place. There are no assurances as to the fee we will be charging at the time of each Payment Base increase. This is subject to the maximum fee disclosed in the Synopsis. - Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use. - The purchase of an optional withdrawal benefit feature may not be appropriate for contracts owned by certain types of non-natural entities, including Charitable Trusts. Because many non-natural entities are required to make certain periodic distributions and those amounts may be different than the withdrawal amounts permitted by the optional withdrawal benefit feature, you may wish to consult with your tax advisor to help determine the appropriateness of this benefit. APP E-1 ------------------------------------------------------------------------------- APPENDIX E -- INFORMATION REGARDING CONTRACT SERIES NO LONGER SOLD OVERVIEW The following information amends and supplements the Prospectus only with respect to those Series no longer sold. SYNOPSIS The following table describes some of the fees and expenses that you will pay periodically and on a daily basis (except as noted) during the time that you own the Contract, not including fees and expenses of the underlying Funds. Please refer to the Synopsis (Section 2) for more information regarding all other applicable fees and expenses.
SEPARATE ACCOUNT ANNUAL EXPENSES (AS A PERCENTAGE OF AVERAGE DAILY SUB-ACCOUNT VALUE) ACCESS CORE EDGE OUTLOOK PLUS ------------------------------------------------------------------------------------------------------------ Mortality and Expense Risk Charge 1.50% 1.20% 0.80% 1.50% 1.50% Administrative Charge 0.15% 0.15% 0.15% 0.20% 0.15% Total Separate Account Annual Expenses 1.65% 1.35% 0.95% 1.70% 1.65%
This Example is intended to help you compare the cost of investing in this variable annuity with the cost of investing in other variable annuities. Let's say, hypothetically, that your annual investment return is 5% and that your fees and expenses today were as high as possible. The example illustrates the effect of fees and expenses that you could incur (other than taxes). Your actual fees and expenses may vary. For every $10,000 invested, here's how much you would pay under each of the three scenarios posed: (1) If you Surrender your variable annuity at the end of the applicable time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------- Access $589 $1,754 $2,901 $5,694 Core $1,221 $2,321 $3,225 $5,461 Edge $1,044 $2,030 $3,013 $5,452 Outlook $1,257 $2,232 $2,924 $5,732 Plus $1,346 $2,496 $3,538 $5,694
(2) If you annuitize at the end of the applicable time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------- Access $484 $1,649 $2,796 $5,589 Core $453 $1,561 $2,659 $5,356 Edge $939 $1,925 $2,908 $5,347 Outlook $489 $1,663 $2,819 $5,627 Plus $484 $1,649 $2,796 $5,589
(3) If you do not Surrender your variable annuity:
1 YEAR 3 YEARS 5 YEARS 10 YEARS -------------------------------------------------------------------------------- Access $589 $1,754 $2,901 $5,694 Core $558 $1,666 $2,764 $5,461 Edge $1,044 $2,030 $3,013 $5,452 Outlook $594 $1,768 $2,924 $5,732 Plus $589 $1,754 $2,901 $5,694
STANDARD DEATH BENEFITS These versions of the Contract include a standard Death Benefit that is based on the age of the Owner(s) and Annuitant. Standard Death Benefits are at no additional cost. APP E-2 ------------------------------------------------------------------------------- If all Owner(s) and Annuitant are less than age 76 on the Contract issuance date, you can choose either the Premium Protection or the Asset Protection Death Benefit. If you do not choose a death benefit, we will automatically issue the Asset Protection Death Benefit. If any Owner(s) or Annuitant is more than age 76 on the Contract issuance date, we will automatically issue the Asset Protection Death Benefit. THE PREMIUM PROTECTION DEATH BENEFIT If applicable, your Death Benefit is the highest of: - Contract Value; or - Total Premium Payments adjusted for partial Surrenders. If your Contract has the Premium Protection Death Benefit and you transfer ownership of your Contract to someone who was 76 years old or older at the time you purchased your Contract, the Premium Protection Death Benefit will no longer apply as of the date of transfer and the death benefit will be a return of your Contract Value. As used above, "Contract Value" refers to your Contract Value on the date we receive due proof of death. The following are examples of how Premium Protection Death Benefit works: EXAMPLE 1 Assume that: - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $8,000, - Your Contract Value in the fourth year immediately before your Surrender was $109,273, - On the day we calculate the Death Benefit, your Contract Value was $117,403. The adjustment to your total Premium Payments for partial Surrenders is on a dollar-for-dollar basis up to 10% of total Premium Payments. The partial Surrender of $8,000 is less than 10% of Premium Payments. Your adjusted total Premium Payments is $92,000. Because your Contract Value at death was greater than the adjusted total Premium Payments, your Death Benefit is $117,403. EXAMPLE 2 Assume that: - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $60,000, - Your Contract Value in the fourth year immediately before your Surrender was $150,000, - On the day we calculate the Death Benefit, your Contract Value was $120,000. The adjustments to your Premium Payments for partial Surrenders is on a dollar-for-dollar basis up to 10% of total Premium Payments. 10% of the total Premium Payments is $10,000. Total Premium Payments adjusted for dollar-for-dollar partial Surrenders is $90,000. The remaining partial Surrenders equal $50,000. This amount will reduce your total Premium Payments by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar-for-dollar adjustment to get $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $90,000. The result is an adjusted total Premium Payment of $57,857. Because your Contract Value at death was greater than the adjusted total Premium Payments, your Death Benefit is $120,000. THE ASSET PROTECTION DEATH BENEFIT If applicable, except as noted below, your Death Benefit is the highest of A, B or C, below: A. Contract Value; or B. Contract Value plus 25% of total Premium Payments adjusted for partial Surrenders (excluding Premium Payments we receive within 12 months of death); or C. Contract Value plus 25% of Maximum Anniversary Value. APP E-3 ------------------------------------------------------------------------------- The Asset Protection Death Benefit cannot exceed the highest of: - Contract Value; - Total Premium Payments adjusted for partial Surrenders; or - Maximum Anniversary Value. All references to "Contract Value" refer to such value on the date we receive due proof of death. The following are examples of how Asset Protection Death Benefit works: EXAMPLE 1 Assume that: - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a withdrawal of $8,000, - Your Contract Value in your fourth Contract Year immediately before your withdrawal was $109,273, - On the day we calculate the Death Benefit, your Contract Value was $117,403, - Your Maximum Anniversary Value was $11,403. To calculate the Asset Protection Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we calculate the Death Benefit [$117,403], - The Contract Value of your Contract, plus 25% of the total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for any partial Surrenders. [$117,403 + 25% ($100,000 - $8,000) = $140,403], - The Contract Value of your Contract, plus 25% of Your Maximum Anniversary Value minus an adjustment for any partial Surrenders [$117,403 + 25% ($117,403 - $8,000) = $144,754], but it cannot exceed the greatest of: - The Contract Value of your Contract on the date we calculate the Death Benefit [$117,403], - Total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for partial Surrenders [$100,000 - $8,000 = $92,000]; or - Your Maximum Anniversary Value adjusted for any partial Surrenders [$117,403 - $8,000 = $109,403]. Because the Contract Value of your Contract [$117,403] is greater than your Maximum Anniversary Value adjusted for partial Surrenders [$109,403] and your adjusted total Premium Payments [$92,000], the amount of the Death Benefit would be your Contract Value or $117,403. EXAMPLE 2 Assume that: - You made an initial Premium Payment of $100,000, - In your fourth Contract Year, you made a partial Surrender of $60,000, - Your Contract Value in the fourth year immediately before your Surrender was $150,000, - On the day we calculate the Death Benefit, your Contract Value was $120,000, - Your Maximum Anniversary Value is $140,000. To calculate the Asset Protection Death Benefit, we calculate the following three values: - The Contract Value of your Contract on the day we calculate the Death Benefit [$120,000], - The Contract Value of your Contract, plus 25% of the total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for any partial Surrenders. [$120,000 + 25% of $57,857 = $134,464 (see below)], - The Contract Value of your Contract, plus 25% of Your Maximum Anniversary Value minus an adjustment for any partial Surrenders [$120,000 + 25% ($83,571) = $140,893 (see below)]. APP E-4 ------------------------------------------------------------------------------- The Asset Protection Death Benefit is the greatest of these three values but it cannot exceed the greatest of: - The Contract Value of your Contract on the date we calculate the Death Benefit [$120,000], - Total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for partial Surrenders [$57,857 (see below)]; or - Your Maximum Anniversary Value adjusted for any partial Surrenders [$83,571 (see below)]. The adjustments to your Premium Payments and/or Maximum Anniversary Value for partial Surrenders is on a dollar-for-dollar basis up to 10% of total Premium Payments. 10% of the total Premium Payments is $10,000. Total Premium Payments adjusted for dollar-for-dollar partial Surrenders is $90,000. The remaining partial Surrenders equal $50,000. This amount will reduce your total Premium Payments by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar-for-dollar adjustment to get $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $90,000. The result is an adjusted total Premium Payment of $57,857. Your Maximum Anniversary Value adjusted for partial Surrenders on a dollar-for-dollar basis up to 10% of Premium Payments is $130,000. Remaining partial Surrenders are $50,000. We use this amount to reduce your Maximum Anniversary Value by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar-for-dollar adjustment to get $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $130,000. The result is an adjusted Maximum Anniversary Value of $83,571. Your Asset Protection Death Benefit is $120,000. This is because your Contract Value at death [$120,000] was the greatest of: - The Contract Value of your Contract on the date we calculate the Death Benefit [$120,000], - Total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for partial Surrenders [$57,857]; or - Your Maximum Anniversary Value minus an adjustment for any partial Surrenders [$83,571]. ------------------------------------------------------------------------------- To obtain a Statement of Additional Information, please complete the form below and mail to: The Hartford Attn: U.S. Wealth Management P.O. Box 5085 Hartford, Connecticut 06102-5085 Please send a Statement of Additional Information for Series V of Hartford Select Leaders variable annuity to me at the following address: ---------------------------------------------------------------- Name ---------------------------------------------------------------- Address ---------------------------------------------------------------- City/State Zip Code PART B STATEMENT OF ADDITIONAL INFORMATION HARTFORD LIFE INSURANCE COMPANY SEPARATE ACCOUNT SEVEN SERIES V OF HARTFORD LEADERS This Statement of Additional Information is not a prospectus. The information contained in this document should be read in conjunction with the prospectus. To obtain a prospectus, send a written request to Hartford Life Insurance Company, Attn: U.S. Wealth Management, P.O. Box 5085, Hartford, CT 06102-5085. Date of Prospectus: May 1, 2008 Date of Statement of Additional Information: May 1, 2008 TABLE OF CONTENTS GENERAL INFORMATION 2 Safekeeping of Assets 2 Experts 2 Non-Participating 2 Misstatement of Age or Sex 2 Principal Underwriter 2 PERFORMANCE RELATED INFORMATION 2 Total Return for all Sub-Accounts 2 Yield for Sub-Accounts 3 Money Market Sub-Accounts 3 Additional Materials 3 Performance Comparisons 3 ACCUMULATION UNIT VALUES 4 FINANCIAL STATEMENTS [To be filed by Amendment] 2 ------------------------------------------------------------------------------- GENERAL INFORMATION SAFEKEEPING OF ASSETS We hold title to the assets of the Separate Account. The assets are kept physically segregated and are held separate and apart from our general corporate assets. Records are maintained of all purchases and redemptions of the underlying fund shares held in each of the Sub-Accounts. EXPERTS The consolidated balance sheets of Hartford Life Insurance Company (the "Company") as of December 31, 2007 and 2006, and the related consolidated statements of income, changes in stockholder's equity and cash flows for each of the three years in the period ended December 31, 2007 have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report dated February 20, 2008 and the statements of assets and liabilities of Hartford Life Insurance Company Separate Account Seven (the "Account") as of December 31, 2007, and the related statements of operations and changes in net assets for the respective stated periods then ended have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report dated February 20, 2008, which reports are both included in this Statement of Additional Information. Such financial statements are included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing. The principal business address of Deloitte & Touche LLP is City Place, 32nd Floor, 185 Asylum Street, Hartford, Connecticut 06103-3402. NON-PARTICIPATING The Contract is non-participating and we pay no dividends. MISSTATEMENT OF AGE OR SEX If an Annuitant's age or sex was misstated on the Contract, any Contract payments or benefits will be determined using the correct age and sex. If we have overpaid Annuity Payouts, an adjustment, including interest on the amount of the overpayment, will be made to the next Annuity Payout or Payouts. If we have underpaid due to a misstatement of age or sex, we will credit the next Annuity Payout with the amount we underpaid and credit interest. PRINCIPAL UNDERWRITER The Contracts, which are offered continuously, are distributed by Hartford Securities Distribution Company, Inc. ("HSD"). HSD serves as Principal Underwriter for the securities issued with respect to the Separate Account. HSD is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 as a Broker-Dealer and is a member of the National Association of Securities Dealers, Inc. HSD is an affiliate of ours. Both HSD and Hartford are ultimately controlled by The Hartford Financial Services Group, Inc. The principal business address of HSD is the same as ours. We currently pay HSD underwriting commissions for its role as Principal Underwriter of all variable annuities associated with this Separate Account. For the past three years, the aggregate dollar amount of underwriting commissions paid to HSD in its role as Principal Underwriter has been: 2006: $122,003,581; 2005: $38,481,029; and 2004: $1,248,672. PERFORMANCE RELATED INFORMATION The Separate Account may advertise certain performance-related information concerning the Sub-Accounts. Performance information about a Sub-Account is based on the Sub-Account's past performance only and is no indication of future performance. TOTAL RETURN FOR ALL SUB-ACCOUNTS When a Sub-Account advertises its standardized total return, it will usually be calculated from the later of the date of the inception of the Sub-Account or Separate Account for one, five and ten year periods or some other relevant periods if the Sub-Account has not been in existence for at least ten years. Total return is measured by comparing the value of an investment in the Sub-Account at the beginning of the relevant period to the value of the investment at the end of the period. To calculate standardized total return, we use a hypothetical initial premium payment of $1,000.00 and deduct for the Total Annual Fund Operating Expenses, any Sales Charge, Separate Account Annual Expenses without any optional charge deductions and the Annual Maintenance Fee. The formula we use to calculate standardized total return is P(1+T) TO THE POWER OF n = ERV. In this calculation, "P" represents a hypothetical initial premium payment of $1,000.00, "T" represents the average annual total return, "n" represents the number of years and "ERV" represents the redeemable value at the end of the period. 3 ------------------------------------------------------------------------------- In addition to the standardized total return, the Sub-Account may advertise a non-standardized total return. These figures will usually be calculated from the later of the date of inception of the underlying fund or Separate Account for one, five and ten year periods or other relevant periods. Non-standardized total return is measured in the same manner as the standardized total return described above, except that non-standardized total return includes the impact of a minimum 1% sales charge, if applicable, and the Annual Maintenance Fee is not deducted. Therefore, non-standardized total return for a Sub-Account is higher than standardized total return for a Sub-Account. YIELD FOR SUB-ACCOUNTS If applicable, the Sub-Accounts may advertise yield in addition to total return. At any time in the future, yields may be higher or lower than past yields and past performance is no indication of future performance. The standardized yield will be computed for periods beginning with the inception of the Sub-Account in the following manner. The net investment income per Accumulation Unit earned during a one-month period is divided by the Accumulation Unit Value on the last day of the period. The formula we use to calculate yield is: YIELD = 2[(a - b/cd +1) TO THE POWER OF 6 - 1]. In this calculation, "a" represents the net investment income earned during the period by the underlying fund, "b" represents the expenses accrued for the period, "c" represents the average daily number of Accumulation Units outstanding during the period and "d" represents the maximum offering price per Accumulation Unit on the last day of the period. MONEY MARKET SUB-ACCOUNTS At any time in the future, current and effective yields may be higher or lower than past yields and past performance is no indication of future performance. Current yield of a money market fund Sub-Account is calculated for a seven-day period or the "base period" without taking into consideration any realized or unrealized gains or losses on shares of the underlying fund. The first step in determining yield is to compute the base period return. We take a hypothetical account with a balance of one Accumulation Unit of the Sub-Account and calculates the net change in its value from the beginning of the base period to the end of the base period. We then subtract an amount equal to the total deductions for the Contract and then divides that number by the value of the account at the beginning of the base period. The result is the base period return or "BPR." Once the base period return is calculated, we then multiply it by 365/7 to compute the current yield. Current yield is calculated to the nearest hundredth of one percent. The formula for this calculation is YIELD = BPR x (365/7), where BPR = (A - B)/C. "A" is equal to the net change in value of a hypothetical account with a balance of one Accumulation Unit of the Sub-Account from the beginning of the base period to the end of the base period. "B" is equal to the amount that Hartford deducts for mortality and expense risk charge, any applicable administrative charge and the Annual Maintenance Fee. "C" represents the value of the Sub-Account at the beginning of the base period. Effective yield is also calculated using the base period return. The effective yield is calculated by adding 1 to the base period return and raising that result to a power equal to 365 divided by 7 and subtracting 1 from the result. The calculation we use is: EFFECTIVE YIELD = [(BASE PERIOD RETURN + 1) TO THE POWER OF 365/7] - 1. ADDITIONAL MATERIALS We may provide information on various topics to Contract Owners and prospective Contract Owners in advertising, sales literature or other materials. These topics may include the relationship between sectors of the economy and the economy as a whole and its effect on various securities markets, investment strategies and techniques (such as value investing, dollar cost averaging and asset allocation), the advantages and disadvantages of investing in tax-deferred and taxable instruments, customer profiles and hypothetical purchase scenarios, financial management and tax and retirement planning, and other investment alternatives, including comparisons between the Contracts and the characteristics of and market for any alternatives. PERFORMANCE COMPARISONS Each Sub-Account may from time to time include in advertisements the ranking of its performance figures compared with performance figures of other annuity contract's sub-accounts with the same investment objectives which are created by Lipper Analytical Services, Morningstar, Inc. or other recognized ranking services. 4 ------------------------------------------------------------------------------- ACCUMULATION UNIT VALUES The following information should be read in conjunction with the financial statements for the Separate Account included in this Statement of Additional Information. There are several classes of Accumulation Unit Values under the Contract depending on the number of optional benefits you select. The table below shows all possible Accumulation Unit Values corresponding to all combinations of optional benefits. A table showing only the highest and lowest possible Accumulation Unit Values is shown in the prospectus, which assumes you select either no optional benefits or all optional benefits. HARTFORD LIFE INSURANCE COMPANY:
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.419 $1.275 Accumulation Unit Value at end of period $1.568 $1.419 Number of Accumulation Units outstanding at end of period (in thousands) 2,046 1,892 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.403 $1.262 Accumulation Unit Value at end of period $1.547 $1.403 Number of Accumulation Units outstanding at end of period (in thousands) 203 268 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.396 $1.255 Accumulation Unit Value at end of period $1.538 $1.396 Number of Accumulation Units outstanding at end of period (in thousands) 1,443 1,504 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.381 $1.243 Accumulation Unit Value at end of period $1.519 $1.381 Number of Accumulation Units outstanding at end of period (in thousands) 1,984 2,381 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.381 $1.243 Accumulation Unit Value at end of period $1.519 $1.381 Number of Accumulation Units outstanding at end of period (in thousands) 1,984 2,381 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.361 $1.227 Accumulation Unit Value at end of period $1.492 $1.361 Number of Accumulation Units outstanding at end of period (in thousands) 1,435 1,311 AIM V.I. CAPITAL DEVELOPMENT FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.553 -- Accumulation Unit Value at end of period $9.789 -- (a) Number of Accumulation Units outstanding at end of period (in thousands) 3 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.550 -- Accumulation Unit Value at end of period $9.784 -- (a) Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.549 -- Accumulation Unit Value at end of period $9.781 -- (a) Number of Accumulation Units outstanding at end of period (in thousands) 1 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.546 -- Accumulation Unit Value at end of period $9.775 -- (a) Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.546 -- Accumulation Unit Value at end of period $9.775 -- (a) Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.542 -- Accumulation Unit Value at end of period $9.767 -- (a) Number of Accumulation Units outstanding at end of period (in thousands) 3 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- AIM V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.863 $10.649 Accumulation Unit Value at end of period $12.654 $11.863 Number of Accumulation Units outstanding at end of period (in thousands) 1,035 1,101 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.819 $10.618 Accumulation Unit Value at end of period $12.582 $11.819 Number of Accumulation Units outstanding at end of period (in thousands) 211 217 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.798 $10.602 Accumulation Unit Value at end of period $12.547 $11.798 Number of Accumulation Units outstanding at end of period (in thousands) 620 692 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.754 $10.572 Accumulation Unit Value at end of period $12.476 $11.754 Number of Accumulation Units outstanding at end of period (in thousands) 2,459 2,669 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.754 $10.572 Accumulation Unit Value at end of period $12.476 $11.754 Number of Accumulation Units outstanding at end of period (in thousands) 2,459 2,669 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.690 $10.525 Accumulation Unit Value at end of period $12.370 $11.690 Number of Accumulation Units outstanding at end of period (in thousands) 964 1,006 AIM V.I. GOVERNMENT SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $1.097 Accumulation Unit Value at end of period $1.174 $1.119 Number of Accumulation Units outstanding at end of period (in thousands) 53,104 29,884 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.106 $1.086 Accumulation Unit Value at end of period $1.158 $1.106 Number of Accumulation Units outstanding at end of period (in thousands) 6,115 4,473 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.100 $1.080 Accumulation Unit Value at end of period $1.151 $1.100 Number of Accumulation Units outstanding at end of period (in thousands) 17,344 13,911 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.089 $1.070 Accumulation Unit Value at end of period $1.137 $1.089 Number of Accumulation Units outstanding at end of period (in thousands) 54,991 45,031 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.089 $1.070 Accumulation Unit Value at end of period $1.137 $1.089 Number of Accumulation Units outstanding at end of period (in thousands) 54,991 45,031 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.073 $1.055 Accumulation Unit Value at end of period $1.117 $1.073 Number of Accumulation Units outstanding at end of period (in thousands) 20,812 18,954 AIM V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.102 $1.814 Accumulation Unit Value at end of period $2.379 $2.102 Number of Accumulation Units outstanding at end of period (in thousands) 7,270 2,232
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.079 $1.795 Accumulation Unit Value at end of period $2.348 $2.079 Number of Accumulation Units outstanding at end of period (in thousands) 851 1,266 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $2.068 $1.786 Accumulation Unit Value at end of period $2.333 $2.068 Number of Accumulation Units outstanding at end of period (in thousands) 1,938 675 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.046 $1.769 Accumulation Unit Value at end of period $2.304 $2.046 Number of Accumulation Units outstanding at end of period (in thousands) 4,686 2,772 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.046 $1.769 Accumulation Unit Value at end of period $2.304 $2.046 Number of Accumulation Units outstanding at end of period (in thousands) 4,686 2,772 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.016 $1.746 Accumulation Unit Value at end of period $2.264 $2.016 Number of Accumulation Units outstanding at end of period (in thousands) 1,498 1,243 AIM V.I. LARGE CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.474 $10.414 Accumulation Unit Value at end of period $13.091 $11.474 Number of Accumulation Units outstanding at end of period (in thousands) 160 94 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.432 $10.384 Accumulation Unit Value at end of period $13.017 $11.432 Number of Accumulation Units outstanding at end of period (in thousands) 21 18 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.411 $10.369 Accumulation Unit Value at end of period $12.980 $11.411 Number of Accumulation Units outstanding at end of period (in thousands) 182 197 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.369 $10.338 Accumulation Unit Value at end of period $12.907 $11.369 Number of Accumulation Units outstanding at end of period (in thousands) 117 111 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.369 $10.338 Accumulation Unit Value at end of period $12.907 $11.369 Number of Accumulation Units outstanding at end of period (in thousands) 117 111 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.307 $10.293 Accumulation Unit Value at end of period $12.797 $11.307 Number of Accumulation Units outstanding at end of period (in thousands) 128 127 AIM V.I. MID CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.663 $1.495 Accumulation Unit Value at end of period $1.797 $1.663 Number of Accumulation Units outstanding at end of period (in thousands) 6,210 4,974 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.644 $1.479 Accumulation Unit Value at end of period $1.773 $1.644 Number of Accumulation Units outstanding at end of period (in thousands) 379 361
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.635 $1.472 Accumulation Unit Value at end of period $1.762 $1.635 Number of Accumulation Units outstanding at end of period (in thousands) 3,875 4,010 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.618 $1.457 Accumulation Unit Value at end of period $1.740 $1.618 Number of Accumulation Units outstanding at end of period (in thousands) 8,498 8,591 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.618 $1.457 Accumulation Unit Value at end of period $1.740 $1.618 Number of Accumulation Units outstanding at end of period (in thousands) 8,498 8,591 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.595 $1.438 Accumulation Unit Value at end of period $1.710 $1.595 Number of Accumulation Units outstanding at end of period (in thousands) 4,572 4,515 AIM V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.394 $12.905 Accumulation Unit Value at end of period $14.937 $14.394 Number of Accumulation Units outstanding at end of period (in thousands) 407 134 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.302 $12.832 Accumulation Unit Value at end of period $14.812 $14.302 Number of Accumulation Units outstanding at end of period (in thousands) 18 7 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.256 $12.796 Accumulation Unit Value at end of period $14.750 $14.256 Number of Accumulation Units outstanding at end of period (in thousands) 150 90 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.165 $12.724 Accumulation Unit Value at end of period $14.626 $14.165 Number of Accumulation Units outstanding at end of period (in thousands) 274 193 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.165 $12.724 Accumulation Unit Value at end of period $14.626 $14.165 Number of Accumulation Units outstanding at end of period (in thousands) 274 193 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.029 $12.617 Accumulation Unit Value at end of period $14.443 $14.029 Number of Accumulation Units outstanding at end of period (in thousands) 156 109 AMERICAN FUNDS ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.608 $13.529 Accumulation Unit Value at end of period $15.357 $14.608 Number of Accumulation Units outstanding at end of period (in thousands) 4,853 4,018 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.301 $12.328 Accumulation Unit Value at end of period $13.955 $13.301 Number of Accumulation Units outstanding at end of period (in thousands) 562 576 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.202 $12.241 Accumulation Unit Value at end of period $13.836 $13.202 Number of Accumulation Units outstanding at end of period (in thousands) 2,717 2,743 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.360 $12.397 Accumulation Unit Value at end of period $13.974 $13.360 Number of Accumulation Units outstanding at end of period (in thousands) 5,554 5,527
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.360 $12.397 Accumulation Unit Value at end of period $13.974 $13.360 Number of Accumulation Units outstanding at end of period (in thousands) 5,554 5,527 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.820 $11.909 Accumulation Unit Value at end of period $13.369 $12.820 Number of Accumulation Units outstanding at end of period (in thousands) 2,392 2,550 AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.222 $1.090 Accumulation Unit Value at end of period $1.230 $1.222 Number of Accumulation Units outstanding at end of period (in thousands) 21,965 16,908 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.208 $1.078 Accumulation Unit Value at end of period $1.213 $1.208 Number of Accumulation Units outstanding at end of period (in thousands) 2,264 2,164 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.201 $1.072 Accumulation Unit Value at end of period $1.205 $1.201 Number of Accumulation Units outstanding at end of period (in thousands) 15,599 16,259 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.188 $1.061 Accumulation Unit Value at end of period $1.190 $1.188 Number of Accumulation Units outstanding at end of period (in thousands) 26,898 26,457 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.188 $1.061 Accumulation Unit Value at end of period $1.190 $1.188 Number of Accumulation Units outstanding at end of period (in thousands) 26,898 26,457 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.170 $1.047 Accumulation Unit Value at end of period $1.169 $1.170 Number of Accumulation Units outstanding at end of period (in thousands) 11,387 10,568 AMERICAN FUNDS BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.281 $13.769 Accumulation Unit Value at end of period $14.558 $14.281 Number of Accumulation Units outstanding at end of period (in thousands) 4,138 2,781 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.872 $13.386 Accumulation Unit Value at end of period $14.114 $13.872 Number of Accumulation Units outstanding at end of period (in thousands) 562 490 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.769 $13.291 Accumulation Unit Value at end of period $13.994 $13.769 Number of Accumulation Units outstanding at end of period (in thousands) 2,156 2,165 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.147 $12.700 Accumulation Unit Value at end of period $13.336 $13.147 Number of Accumulation Units outstanding at end of period (in thousands) 3,635 3,352 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.147 $12.700 Accumulation Unit Value at end of period $13.336 $13.147 Number of Accumulation Units outstanding at end of period (in thousands) 3,635 3,352 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.371 $12.931 Accumulation Unit Value at end of period $13.522 $13.371 Number of Accumulation Units outstanding at end of period (in thousands) 1,470 1,363
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- AMERICAN FUNDS GLOBAL BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.207 $10.028 Accumulation Unit Value at end of period $10.999 $10.207 Number of Accumulation Units outstanding at end of period (in thousands) 709 79 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.202 $10.026 Accumulation Unit Value at end of period $10.972 $10.202 Number of Accumulation Units outstanding at end of period (in thousands) 98 12 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.199 $10.025 Accumulation Unit Value at end of period $10.958 $10.199 Number of Accumulation Units outstanding at end of period (in thousands) 225 8 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.194 $10.023 Accumulation Unit Value at end of period $10.931 $10.194 Number of Accumulation Units outstanding at end of period (in thousands) 351 16 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.194 $10.023 Accumulation Unit Value at end of period $10.931 $10.194 Number of Accumulation Units outstanding at end of period (in thousands) 351 16 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.187 $10.021 Accumulation Unit Value at end of period $10.890 $10.187 Number of Accumulation Units outstanding at end of period (in thousands) 109 29 AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.921 $9.653 Accumulation Unit Value at end of period $12.140 $10.921 Number of Accumulation Units outstanding at end of period (in thousands) 2,980 885 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.905 $9.646 Accumulation Unit Value at end of period $12.097 $10.905 Number of Accumulation Units outstanding at end of period (in thousands) 182 94 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.897 $9.643 Accumulation Unit Value at end of period $12.076 $10.897 Number of Accumulation Units outstanding at end of period (in thousands) 587 128 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.881 $9.636 Accumulation Unit Value at end of period $12.034 $10.881 Number of Accumulation Units outstanding at end of period (in thousands) 1,822 775 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.881 $9.636 Accumulation Unit Value at end of period $12.034 $10.881 Number of Accumulation Units outstanding at end of period (in thousands) 1,822 775 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.856 $9.625 Accumulation Unit Value at end of period $11.972 $10.856 Number of Accumulation Units outstanding at end of period (in thousands) 308 154 AMERICAN FUNDS GLOBAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.715 $14.005 Accumulation Unit Value at end of period $17.807 $15.715 Number of Accumulation Units outstanding at end of period (in thousands) 1,326 866
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.703 $14.005 Accumulation Unit Value at end of period $17.757 $15.703 Number of Accumulation Units outstanding at end of period (in thousands) 191 178 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.585 $13.906 Accumulation Unit Value at end of period $17.607 $15.585 Number of Accumulation Units outstanding at end of period (in thousands) 778 822 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.013 $10.726 Accumulation Unit Value at end of period $13.543 $12.013 Number of Accumulation Units outstanding at end of period (in thousands) 1,625 1,378 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.013 $10.726 Accumulation Unit Value at end of period $13.543 $12.013 Number of Accumulation Units outstanding at end of period (in thousands) 1,625 1,378 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.135 $13.529 Accumulation Unit Value at end of period $17.012 $15.135 Number of Accumulation Units outstanding at end of period (in thousands) 463 421 AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.960 $17.270 Accumulation Unit Value at end of period $23.912 $19.960 Number of Accumulation Units outstanding at end of period (in thousands) 902 659 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $21.000 $18.184 Accumulation Unit Value at end of period $25.108 $21.000 Number of Accumulation Units outstanding at end of period (in thousands) 156 147 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $20.843 $18.055 Accumulation Unit Value at end of period $24.896 $20.843 Number of Accumulation Units outstanding at end of period (in thousands) 406 460 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.282 $13.247 Accumulation Unit Value at end of period $18.216 $15.282 Number of Accumulation Units outstanding at end of period (in thousands) 1,367 1,285 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.282 $13.247 Accumulation Unit Value at end of period $18.216 $15.282 Number of Accumulation Units outstanding at end of period (in thousands) 1,367 1,285 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.241 $17.566 Accumulation Unit Value at end of period $24.055 $20.241 Number of Accumulation Units outstanding at end of period (in thousands) 414 418 AMERICAN FUNDS GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.955 $13.663 Accumulation Unit Value at end of period $16.576 $14.955 Number of Accumulation Units outstanding at end of period (in thousands) 12,565 8,039 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.287 $13.063 Accumulation Unit Value at end of period $15.805 $14.287 Number of Accumulation Units outstanding at end of period (in thousands) 1,680 1,631 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.181 $12.970 Accumulation Unit Value at end of period $15.671 $14.181 Number of Accumulation Units outstanding at end of period (in thousands) 5,517 5,731
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.792 $8.963 Accumulation Unit Value at end of period $10.799 $9.792 Number of Accumulation Units outstanding at end of period (in thousands) 20,944 19,287 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.792 $8.963 Accumulation Unit Value at end of period $10.799 $9.792 Number of Accumulation Units outstanding at end of period (in thousands) 20,944 19,287 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.770 $12.619 Accumulation Unit Value at end of period $15.142 $13.770 Number of Accumulation Units outstanding at end of period (in thousands) 4,458 4,490 AMERICAN FUNDS GROWTH-INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.692 $14.089 Accumulation Unit Value at end of period $16.262 $15.692 Number of Accumulation Units outstanding at end of period (in thousands) 11,554 7,464 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.853 $12.448 Accumulation Unit Value at end of period $14.328 $13.853 Number of Accumulation Units outstanding at end of period (in thousands) 1,818 1,743 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.750 $12.360 Accumulation Unit Value at end of period $14.207 $13.750 Number of Accumulation Units outstanding at end of period (in thousands) 5,872 6,112 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.798 $12.413 Accumulation Unit Value at end of period $14.228 $13.798 Number of Accumulation Units outstanding at end of period (in thousands) 15,663 14,817 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.798 $12.413 Accumulation Unit Value at end of period $14.228 $13.798 Number of Accumulation Units outstanding at end of period (in thousands) 15,663 14,817 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.352 $12.025 Accumulation Unit Value at end of period $13.727 $13.352 Number of Accumulation Units outstanding at end of period (in thousands) 4,830 4,880 AMERICAN FUNDS INTERNATIONAL FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.583 $14.249 Accumulation Unit Value at end of period $18.452 $15.583 Number of Accumulation Units outstanding at end of period (in thousands) 3,850 2,766 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.258 $14.878 Accumulation Unit Value at end of period $19.213 $16.258 Number of Accumulation Units outstanding at end of period (in thousands) 561 583 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $16.137 $14.773 Accumulation Unit Value at end of period $19.051 $16.137 Number of Accumulation Units outstanding at end of period (in thousands) 1,686 1,740 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.215 $11.191 Accumulation Unit Value at end of period $14.392 $12.215 Number of Accumulation Units outstanding at end of period (in thousands) 4,961 4,877 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.215 $11.191 Accumulation Unit Value at end of period $14.392 $12.215 Number of Accumulation Units outstanding at end of period (in thousands) 4,961 4,877
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.670 $14.373 Accumulation Unit Value at end of period $18.408 $15.670 Number of Accumulation Units outstanding at end of period (in thousands) 1,204 1,268 AMERICAN FUNDS NEW WORLD FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.315 $19.942 Accumulation Unit Value at end of period $30.412 $23.315 Number of Accumulation Units outstanding at end of period (in thousands) 775 471 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $21.829 $18.684 Accumulation Unit Value at end of period $28.416 $21.829 Number of Accumulation Units outstanding at end of period (in thousands) 118 97 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $21.665 $18.552 Accumulation Unit Value at end of period $28.176 $21.665 Number of Accumulation Units outstanding at end of period (in thousands) 288 256 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $20.273 $17.373 Accumulation Unit Value at end of period $26.312 $20.273 Number of Accumulation Units outstanding at end of period (in thousands) 919 700 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.273 $17.373 Accumulation Unit Value at end of period $26.312 $20.273 Number of Accumulation Units outstanding at end of period (in thousands) 919 700 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $21.039 $18.050 Accumulation Unit Value at end of period $27.225 $21.039 Number of Accumulation Units outstanding at end of period (in thousands) 218 172 FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.878 $10.070 Accumulation Unit Value at end of period $12.269 $10.878 Number of Accumulation Units outstanding at end of period (in thousands) 461 313 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.838 $10.041 Accumulation Unit Value at end of period $12.200 $10.838 Number of Accumulation Units outstanding at end of period (in thousands) 49 43 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.818 $10.026 Accumulation Unit Value at end of period $12.165 $10.818 Number of Accumulation Units outstanding at end of period (in thousands) 148 80 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.778 $9.997 Accumulation Unit Value at end of period $12.096 $10.778 Number of Accumulation Units outstanding at end of period (in thousands) 394 360 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.778 $9.997 Accumulation Unit Value at end of period $12.096 $10.778 Number of Accumulation Units outstanding at end of period (in thousands) 394 360 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.719 $9.954 Accumulation Unit Value at end of period $11.994 $10.719 Number of Accumulation Units outstanding at end of period (in thousands) 99 82
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.791 $14.629 Accumulation Unit Value at end of period $16.165 $15.791 Number of Accumulation Units outstanding at end of period (in thousands) 20,982 13,732 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.637 $14.497 Accumulation Unit Value at end of period $15.975 $15.637 Number of Accumulation Units outstanding at end of period (in thousands) 2,079 1,796 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.564 $14.435 Accumulation Unit Value at end of period $15.884 $15.564 Number of Accumulation Units outstanding at end of period (in thousands) 3,803 2,930 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.419 $14.312 Accumulation Unit Value at end of period $15.705 $15.419 Number of Accumulation Units outstanding at end of period (in thousands) 21,166 19,327 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.419 $14.312 Accumulation Unit Value at end of period $15.705 $15.419 Number of Accumulation Units outstanding at end of period (in thousands) 21,166 19,327 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.211 $14.134 Accumulation Unit Value at end of period $15.446 $15.211 Number of Accumulation Units outstanding at end of period (in thousands) 3,505 3,535 FRANKLIN LARGE CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.066 $10.796 Accumulation Unit Value at end of period $12.646 $12.066 Number of Accumulation Units outstanding at end of period (in thousands) 1,112 895 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.948 $10.698 Accumulation Unit Value at end of period $12.497 $11.948 Number of Accumulation Units outstanding at end of period (in thousands) 152 140 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.893 $10.652 Accumulation Unit Value at end of period $12.427 $11.893 Number of Accumulation Units outstanding at end of period (in thousands) 401 361 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.782 $10.561 Accumulation Unit Value at end of period $12.287 $11.782 Number of Accumulation Units outstanding at end of period (in thousands) 1,629 1,614 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.782 $10.561 Accumulation Unit Value at end of period $12.287 $11.782 Number of Accumulation Units outstanding at end of period (in thousands) 1,629 1,614 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.622 $10.430 Accumulation Unit Value at end of period $12.084 $11.622 Number of Accumulation Units outstanding at end of period (in thousands) 651 616 FRANKLIN LARGE CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.824 $10.571 Accumulation Unit Value at end of period $11.634 $11.824 Number of Accumulation Units outstanding at end of period (in thousands) 170 93
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.780 $10.541 Accumulation Unit Value at end of period $11.569 $11.780 Number of Accumulation Units outstanding at end of period (in thousands) 18 16 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.759 $10.525 Accumulation Unit Value at end of period $11.536 $11.759 Number of Accumulation Units outstanding at end of period (in thousands) 75 67 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.716 $10.495 Accumulation Unit Value at end of period $11.471 $11.716 Number of Accumulation Units outstanding at end of period (in thousands) 111 135 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.716 $10.495 Accumulation Unit Value at end of period $11.471 $11.716 Number of Accumulation Units outstanding at end of period (in thousands) 111 135 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.651 $10.449 Accumulation Unit Value at end of period $11.374 $11.651 Number of Accumulation Units outstanding at end of period (in thousands) 31 16 FRANKLIN RISING DIVIDENDS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.628 $14.119 Accumulation Unit Value at end of period $15.004 $15.628 Number of Accumulation Units outstanding at end of period (in thousands) 7,350 4,260 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.514 $14.026 Accumulation Unit Value at end of period $14.865 $15.514 Number of Accumulation Units outstanding at end of period (in thousands) 587 529 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.457 $13.980 Accumulation Unit Value at end of period $14.795 $15.457 Number of Accumulation Units outstanding at end of period (in thousands) 1,588 1,250 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.344 $13.888 Accumulation Unit Value at end of period $14.658 $15.344 Number of Accumulation Units outstanding at end of period (in thousands) 6,349 5,845 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.344 $13.888 Accumulation Unit Value at end of period $14.658 $15.344 Number of Accumulation Units outstanding at end of period (in thousands) 6,349 5,845 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.176 $13.752 Accumulation Unit Value at end of period $14.454 $15.176 Number of Accumulation Units outstanding at end of period (in thousands) 1,354 1,395 FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.254 -- Accumulation Unit Value at end of period $9.253 -- (a) Number of Accumulation Units outstanding at end of period (in thousands) 3 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.251 -- Accumulation Unit Value at end of period $9.248 -- (a) Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.250 -- Accumulation Unit Value at end of period $9.246 -- (a) Number of Accumulation Units outstanding at end of period (in thousands) 3 --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.247 -- Accumulation Unit Value at end of period $9.240 -- (a) Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.247 -- Accumulation Unit Value at end of period $9.240 -- (a) Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.243 -- Accumulation Unit Value at end of period $9.233 -- (a) Number of Accumulation Units outstanding at end of period (in thousands) -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.943 $11.599 Accumulation Unit Value at end of period $14.205 $12.943 Number of Accumulation Units outstanding at end of period (in thousands) 969 591 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.406 $12.022 Accumulation Unit Value at end of period $14.683 $13.406 Number of Accumulation Units outstanding at end of period (in thousands) 105 116 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.305 $11.937 Accumulation Unit Value at end of period $14.559 $13.305 Number of Accumulation Units outstanding at end of period (in thousands) 687 707 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $7.646 $6.865 Accumulation Unit Value at end of period $8.350 $7.646 Number of Accumulation Units outstanding at end of period (in thousands) 1,648 1,520 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.646 $6.865 Accumulation Unit Value at end of period $8.350 $7.646 Number of Accumulation Units outstanding at end of period (in thousands) 1,648 1,520 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.920 $11.614 Accumulation Unit Value at end of period $14.067 $12.920 Number of Accumulation Units outstanding at end of period (in thousands) 518 426 FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.961 $15.300 Accumulation Unit Value at end of period $16.724 $15.961 Number of Accumulation Units outstanding at end of period (in thousands) 2,126 1,409 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.392 $14.766 Accumulation Unit Value at end of period $16.095 $15.392 Number of Accumulation Units outstanding at end of period (in thousands) 303 340 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.277 $14.661 Accumulation Unit Value at end of period $15.959 $15.277 Number of Accumulation Units outstanding at end of period (in thousands) 1,005 867 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.539 $13.963 Accumulation Unit Value at end of period $15.158 $14.539 Number of Accumulation Units outstanding at end of period (in thousands) 2,315 1,900 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.539 $13.963 Accumulation Unit Value at end of period $15.158 $14.539 Number of Accumulation Units outstanding at end of period (in thousands) 2,315 1,900
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.835 $14.264 Accumulation Unit Value at end of period $15.420 $14.835 Number of Accumulation Units outstanding at end of period (in thousands) 826 749 HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.129 $1.113 Accumulation Unit Value at end of period $1.169 $1.129 Number of Accumulation Units outstanding at end of period (in thousands) 25,415 16,822 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.118 $1.103 Accumulation Unit Value at end of period $1.155 $1.118 Number of Accumulation Units outstanding at end of period (in thousands) 3,733 2,792 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.110 $1.096 Accumulation Unit Value at end of period $1.145 $1.110 Number of Accumulation Units outstanding at end of period (in thousands) 17,644 10,746 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.044 $1.032 Accumulation Unit Value at end of period $1.076 $1.044 Number of Accumulation Units outstanding at end of period (in thousands) 42,452 30,403 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.044 $1.032 Accumulation Unit Value at end of period $1.076 $1.044 Number of Accumulation Units outstanding at end of period (in thousands) 42,452 30,403 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $1.066 Accumulation Unit Value at end of period $1.107 $1.078 Number of Accumulation Units outstanding at end of period (in thousands) 13,220 5,550 MFS(R) CORE EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.139 $8.904 Accumulation Unit Value at end of period $11.119 $10.139 Number of Accumulation Units outstanding at end of period (in thousands) 18 21 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.413 $8.272 Accumulation Unit Value at end of period $10.301 $9.413 Number of Accumulation Units outstanding at end of period (in thousands) 70 74 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.342 $8.213 Accumulation Unit Value at end of period $10.214 $9.342 Number of Accumulation Units outstanding at end of period (in thousands) 151 215 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $7.007 $6.165 Accumulation Unit Value at end of period $7.645 $7.007 Number of Accumulation Units outstanding at end of period (in thousands) 61 97 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.007 $6.165 Accumulation Unit Value at end of period $7.645 $7.007 Number of Accumulation Units outstanding at end of period (in thousands) 61 97 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.072 $7.991 Accumulation Unit Value at end of period $9.869 $9.072 Number of Accumulation Units outstanding at end of period (in thousands) 35 32
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- MFS(R) EMERGING GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.679 $7.650 Accumulation Unit Value at end of period $10.375 $8.679 Number of Accumulation Units outstanding at end of period (in thousands) 195 98 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $8.486 $7.486 Accumulation Unit Value at end of period $10.125 $8.486 Number of Accumulation Units outstanding at end of period (in thousands) 100 92 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.423 $7.433 Accumulation Unit Value at end of period $10.039 $8.423 Number of Accumulation Units outstanding at end of period (in thousands) 209 325 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $5.558 $4.909 Accumulation Unit Value at end of period $6.612 $5.558 Number of Accumulation Units outstanding at end of period (in thousands) 527 177 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.558 $4.909 Accumulation Unit Value at end of period $6.612 $5.558 Number of Accumulation Units outstanding at end of period (in thousands) 527 177 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.179 $7.231 Accumulation Unit Value at end of period $9.700 $8.179 Number of Accumulation Units outstanding at end of period (in thousands) 76 49 MFS(R) GLOBAL EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.420 $14.646 Accumulation Unit Value at end of period $17.689 $16.420 Number of Accumulation Units outstanding at end of period (in thousands) 58 35 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.528 $13.861 Accumulation Unit Value at end of period $16.695 $15.528 Number of Accumulation Units outstanding at end of period (in thousands) 21 14 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.412 $13.762 Accumulation Unit Value at end of period $16.554 $15.412 Number of Accumulation Units outstanding at end of period (in thousands) 54 56 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.828 $12.358 Accumulation Unit Value at end of period $14.823 $13.828 Number of Accumulation Units outstanding at end of period (in thousands) 111 112 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.828 $12.358 Accumulation Unit Value at end of period $14.823 $13.828 Number of Accumulation Units outstanding at end of period (in thousands) 111 112 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.966 $13.390 Accumulation Unit Value at end of period $15.995 $14.966 Number of Accumulation Units outstanding at end of period (in thousands) 46 32 MFS(R) HIGH INCOME SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.282 $12.513 Accumulation Unit Value at end of period $13.336 $13.282 Number of Accumulation Units outstanding at end of period (in thousands) 835 586
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.783 $12.052 Accumulation Unit Value at end of period $12.809 $12.783 Number of Accumulation Units outstanding at end of period (in thousands) 131 135 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.687 $11.966 Accumulation Unit Value at end of period $12.700 $12.687 Number of Accumulation Units outstanding at end of period (in thousands) 605 709 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.701 $11.988 Accumulation Unit Value at end of period $12.689 $12.701 Number of Accumulation Units outstanding at end of period (in thousands) 794 707 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.701 $11.988 Accumulation Unit Value at end of period $12.689 $12.701 Number of Accumulation Units outstanding at end of period (in thousands) 794 707 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.321 $11.642 Accumulation Unit Value at end of period $12.272 $12.321 Number of Accumulation Units outstanding at end of period (in thousands) 372 333 MFS(R) INVESTORS GROWTH STOCK SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.871 $7.962 Accumulation Unit Value at end of period $9.746 $8.871 Number of Accumulation Units outstanding at end of period (in thousands) 132 87 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $8.390 $7.536 Accumulation Unit Value at end of period $9.199 $8.390 Number of Accumulation Units outstanding at end of period (in thousands) 87 98 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.327 $7.482 Accumulation Unit Value at end of period $9.121 $8.327 Number of Accumulation Units outstanding at end of period (in thousands) 201 301 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.473 $5.821 Accumulation Unit Value at end of period $7.076 $6.473 Number of Accumulation Units outstanding at end of period (in thousands) 181 180 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.473 $5.821 Accumulation Unit Value at end of period $7.076 $6.473 Number of Accumulation Units outstanding at end of period (in thousands) 181 180 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.086 $7.280 Accumulation Unit Value at end of period $8.813 $8.086 Number of Accumulation Units outstanding at end of period (in thousands) 92 62 MFS(R) INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.127 $10.024 Accumulation Unit Value at end of period $12.109 $11.127 Number of Accumulation Units outstanding at end of period (in thousands) 2,802 1,871 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.771 $8.809 Accumulation Unit Value at end of period $10.612 $9.771 Number of Accumulation Units outstanding at end of period (in thousands) 488 447 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.698 $8.747 Accumulation Unit Value at end of period $10.522 $9.698 Number of Accumulation Units outstanding at end of period (in thousands) 1,110 991
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.502 $8.577 Accumulation Unit Value at end of period $10.290 $9.502 Number of Accumulation Units outstanding at end of period (in thousands) 3,980 3,850 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.502 $8.577 Accumulation Unit Value at end of period $10.290 $9.502 Number of Accumulation Units outstanding at end of period (in thousands) 3,980 3,850 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.417 $8.510 Accumulation Unit Value at end of period $10.167 $9.417 Number of Accumulation Units outstanding at end of period (in thousands) 1,220 1,172 MFS(R) MID CAP GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.126 $5.444 Accumulation Unit Value at end of period $6.638 $6.126 Number of Accumulation Units outstanding at end of period (in thousands) 495 449 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.036 $5.368 Accumulation Unit Value at end of period $6.527 $6.036 Number of Accumulation Units outstanding at end of period (in thousands) 83 94 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $5.998 $5.336 Accumulation Unit Value at end of period $6.479 $5.998 Number of Accumulation Units outstanding at end of period (in thousands) 426 506 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.405 $5.703 Accumulation Unit Value at end of period $6.905 $6.405 Number of Accumulation Units outstanding at end of period (in thousands) 514 513 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.405 $5.703 Accumulation Unit Value at end of period $6.905 $6.405 Number of Accumulation Units outstanding at end of period (in thousands) 514 513 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.832 $5.199 Accumulation Unit Value at end of period $6.269 $5.832 Number of Accumulation Units outstanding at end of period (in thousands) 453 433 MFS(R) NEW DISCOVERY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.233 $12.701 Accumulation Unit Value at end of period $15.407 $15.233 Number of Accumulation Units outstanding at end of period (in thousands) 1,310 909 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.881 $11.583 Accumulation Unit Value at end of period $14.012 $13.881 Number of Accumulation Units outstanding at end of period (in thousands) 213 171 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.778 $11.500 Accumulation Unit Value at end of period $13.893 $13.778 Number of Accumulation Units outstanding at end of period (in thousands) 526 472 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.029 $7.542 Accumulation Unit Value at end of period $9.086 $9.029 Number of Accumulation Units outstanding at end of period (in thousands) 2,321 2,253 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.029 $7.542 Accumulation Unit Value at end of period $9.086 $9.029 Number of Accumulation Units outstanding at end of period (in thousands) 2,321 2,253
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.379 $11.189 Accumulation Unit Value at end of period $13.424 $13.379 Number of Accumulation Units outstanding at end of period (in thousands) 495 518 MFS(R) RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $9.991 Accumulation Unit Value at end of period $10.596 $10.307 Number of Accumulation Units outstanding at end of period (in thousands) 641 177 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.269 $9.962 Accumulation Unit Value at end of period $10.537 $10.269 Number of Accumulation Units outstanding at end of period (in thousands) 38 30 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.251 $9.948 Accumulation Unit Value at end of period $10.507 $10.251 Number of Accumulation Units outstanding at end of period (in thousands) 177 76 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.214 $9.919 Accumulation Unit Value at end of period $10.448 $10.214 Number of Accumulation Units outstanding at end of period (in thousands) 458 226 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.214 $9.919 Accumulation Unit Value at end of period $10.448 $10.214 Number of Accumulation Units outstanding at end of period (in thousands) 458 226 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.158 $9.877 Accumulation Unit Value at end of period $10.361 $10.158 Number of Accumulation Units outstanding at end of period (in thousands) 89 29 MFS(R) RESEARCH INTERNATIONAL SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.847 $13.202 Accumulation Unit Value at end of period $16.527 $14.847 Number of Accumulation Units outstanding at end of period (in thousands) 300 57 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.798 $13.168 Accumulation Unit Value at end of period $16.439 $14.798 Number of Accumulation Units outstanding at end of period (in thousands) 19 10 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.773 $13.151 Accumulation Unit Value at end of period $16.395 $14.773 Number of Accumulation Units outstanding at end of period (in thousands) 71 13 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.724 $13.117 Accumulation Unit Value at end of period $16.307 $14.724 Number of Accumulation Units outstanding at end of period (in thousands) 245 129 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.724 $13.117 Accumulation Unit Value at end of period $16.307 $14.724 Number of Accumulation Units outstanding at end of period (in thousands) 245 129 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.650 $13.066 Accumulation Unit Value at end of period $16.177 $14.650 Number of Accumulation Units outstanding at end of period (in thousands) 48 13
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- MFS(R) RESEARCH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.572 $10.310 Accumulation Unit Value at end of period $12.925 $11.572 Number of Accumulation Units outstanding at end of period (in thousands) 32 11 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.530 $10.280 Accumulation Unit Value at end of period $12.851 $11.530 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.508 $10.265 Accumulation Unit Value at end of period $12.815 $11.508 Number of Accumulation Units outstanding at end of period (in thousands) 19 10 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.466 $10.235 Accumulation Unit Value at end of period $12.742 $11.466 Number of Accumulation Units outstanding at end of period (in thousands) 66 32 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.466 $10.235 Accumulation Unit Value at end of period $12.742 $11.466 Number of Accumulation Units outstanding at end of period (in thousands) 66 32 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.403 $10.190 Accumulation Unit Value at end of period $12.634 $11.403 Number of Accumulation Units outstanding at end of period (in thousands) 18 7 MFS(R) TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.523 $14.270 Accumulation Unit Value at end of period $15.960 $15.523 Number of Accumulation Units outstanding at end of period (in thousands) 6,616 3,959 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.290 $13.146 Accumulation Unit Value at end of period $14.663 $14.290 Number of Accumulation Units outstanding at end of period (in thousands) 831 770 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.183 $13.053 Accumulation Unit Value at end of period $14.539 $14.183 Number of Accumulation Units outstanding at end of period (in thousands) 2,467 2,222 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.303 $12.253 Accumulation Unit Value at end of period $13.610 $13.303 Number of Accumulation Units outstanding at end of period (in thousands) 8,125 7,399 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.303 $12.253 Accumulation Unit Value at end of period $13.610 $13.303 Number of Accumulation Units outstanding at end of period (in thousands) 8,125 7,399 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.773 $12.700 Accumulation Unit Value at end of period $14.048 $13.773 Number of Accumulation Units outstanding at end of period (in thousands) 2,070 1,991 MFS(R) VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.453 $15.537 Accumulation Unit Value at end of period $18.581 $17.453 Number of Accumulation Units outstanding at end of period (in thousands) 807 373
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.325 $15.435 Accumulation Unit Value at end of period $18.408 $17.325 Number of Accumulation Units outstanding at end of period (in thousands) 72 69 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $17.262 $15.385 Accumulation Unit Value at end of period $18.322 $17.262 Number of Accumulation Units outstanding at end of period (in thousands) 223 137 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.136 $15.284 Accumulation Unit Value at end of period $18.152 $17.136 Number of Accumulation Units outstanding at end of period (in thousands) 638 486 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $17.136 $15.284 Accumulation Unit Value at end of period $18.152 $17.136 Number of Accumulation Units outstanding at end of period (in thousands) 638 486 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.948 $15.134 Accumulation Unit Value at end of period $17.899 $16.948 Number of Accumulation Units outstanding at end of period (in thousands) 192 225 MORGAN STANLEY -- CAPITAL OPPORTUNITIES PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $4.615 $4.071 Accumulation Unit Value at end of period $5.422 $4.615 Number of Accumulation Units outstanding at end of period (in thousands) 4 2 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $4.598 $4.059 Accumulation Unit Value at end of period $5.391 $4.598 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $4.590 $4.053 Accumulation Unit Value at end of period $5.376 $4.590 Number of Accumulation Units outstanding at end of period (in thousands) 1 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $4.536 $4.009 Accumulation Unit Value at end of period $5.302 $4.536 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $4.536 $4.009 Accumulation Unit Value at end of period $5.302 $4.536 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $4.474 $3.959 Accumulation Unit Value at end of period $5.215 $4.474 Number of Accumulation Units outstanding at end of period (in thousands) 3 -- MORGAN STANLEY -- DEVELOPING GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.473 $8.193 Accumulation Unit Value at end of period $11.463 $9.473 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.438 $8.169 Accumulation Unit Value at end of period $11.398 $9.438 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.421 $8.157 Accumulation Unit Value at end of period $11.366 $9.421 Number of Accumulation Units outstanding at end of period (in thousands) -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.310 $8.067 Accumulation Unit Value at end of period $11.209 $9.310 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.310 $8.067 Accumulation Unit Value at end of period $11.209 $9.310 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.184 $7.967 Accumulation Unit Value at end of period $11.025 $9.184 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MORGAN STANLEY -- DIVIDEND GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.696 $11.537 Accumulation Unit Value at end of period $13.021 $12.696 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.650 $11.504 Accumulation Unit Value at end of period $12.947 $12.650 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.626 $11.487 Accumulation Unit Value at end of period $12.911 $12.626 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.478 $11.360 Accumulation Unit Value at end of period $12.733 $12.478 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.478 $11.360 Accumulation Unit Value at end of period $12.733 $12.478 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.309 $11.219 Accumulation Unit Value at end of period $12.523 $12.309 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MORGAN STANLEY -- FLEXIBLE INCOME PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.705 $11.344 Accumulation Unit Value at end of period $11.968 $11.705 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.662 $11.311 Accumulation Unit Value at end of period $11.901 $11.662 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.641 $11.294 Accumulation Unit Value at end of period $11.867 $11.641 Number of Accumulation Units outstanding at end of period (in thousands) 7 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.504 $11.170 Accumulation Unit Value at end of period $11.704 $11.504 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.504 $11.170 Accumulation Unit Value at end of period $11.704 $11.504 Number of Accumulation Units outstanding at end of period (in thousands) -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.348 $11.031 Accumulation Unit Value at end of period $11.511 $11.348 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MORGAN STANLEY -- FOCUS GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $7.054 $6.279 Accumulation Unit Value at end of period $8.525 $7.054 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $7.029 $6.261 Accumulation Unit Value at end of period $8.477 $7.029 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $7.016 $6.252 Accumulation Unit Value at end of period $8.453 $7.016 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.933 $6.183 Accumulation Unit Value at end of period $8.337 $6.933 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.933 $6.183 Accumulation Unit Value at end of period $8.337 $6.933 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.839 $6.106 Accumulation Unit Value at end of period $8.199 $6.839 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MORGAN STANLEY -- GLOBAL EQUITY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.928 $9.528 Accumulation Unit Value at end of period $12.523 $10.928 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.888 $9.500 Accumulation Unit Value at end of period $12.452 $10.888 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.868 $9.486 Accumulation Unit Value at end of period $12.417 $10.868 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.740 $9.382 Accumulation Unit Value at end of period $12.246 $10.740 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.740 $9.382 Accumulation Unit Value at end of period $12.246 $10.740 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.595 $9.265 Accumulation Unit Value at end of period $12.044 $10.595 Number of Accumulation Units outstanding at end of period (in thousands) -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- MUTUAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $20.136 $18.069 Accumulation Unit Value at end of period $22.220 $20.136 Number of Accumulation Units outstanding at end of period (in thousands) 1,814 1,001 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.988 $17.951 Accumulation Unit Value at end of period $22.013 $19.988 Number of Accumulation Units outstanding at end of period (in thousands) 161 151 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $19.915 $17.892 Accumulation Unit Value at end of period $21.911 $19.915 Number of Accumulation Units outstanding at end of period (in thousands) 450 373 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.770 $17.775 Accumulation Unit Value at end of period $21.707 $19.770 Number of Accumulation Units outstanding at end of period (in thousands) 1,586 1,370 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.770 $17.775 Accumulation Unit Value at end of period $21.707 $19.770 Number of Accumulation Units outstanding at end of period (in thousands) 1,586 1,370 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.553 $17.600 Accumulation Unit Value at end of period $21.405 $19.553 Number of Accumulation Units outstanding at end of period (in thousands) 475 489 MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.484 $17.556 Accumulation Unit Value at end of period $19.892 $19.484 Number of Accumulation Units outstanding at end of period (in thousands) 9,553 6,695 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.320 $15.618 Accumulation Unit Value at end of period $17.647 $17.320 Number of Accumulation Units outstanding at end of period (in thousands) 1,279 1,211 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $17.191 $15.507 Accumulation Unit Value at end of period $17.498 $17.191 Number of Accumulation Units outstanding at end of period (in thousands) 2,139 2,076 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.342 $14.753 Accumulation Unit Value at end of period $16.600 $16.342 Number of Accumulation Units outstanding at end of period (in thousands) 11,385 10,624 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.342 $14.753 Accumulation Unit Value at end of period $16.600 $16.342 Number of Accumulation Units outstanding at end of period (in thousands) 11,385 10,624 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.694 $15.088 Accumulation Unit Value at end of period $16.907 $16.694 Number of Accumulation Units outstanding at end of period (in thousands) 2,134 2,125 TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.737 $20.482 Accumulation Unit Value at end of period $30.230 $23.737 Number of Accumulation Units outstanding at end of period (in thousands) 454 304
26 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $20.355 $17.577 Accumulation Unit Value at end of period $25.871 $20.355 Number of Accumulation Units outstanding at end of period (in thousands) 66 66 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $20.203 $17.453 Accumulation Unit Value at end of period $25.652 $20.203 Number of Accumulation Units outstanding at end of period (in thousands) 216 198 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $24.099 $20.835 Accumulation Unit Value at end of period $30.539 $24.099 Number of Accumulation Units outstanding at end of period (in thousands) 661 568 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $24.099 $20.835 Accumulation Unit Value at end of period $30.539 $24.099 Number of Accumulation Units outstanding at end of period (in thousands) 661 568 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.618 $16.980 Accumulation Unit Value at end of period $24.786 $19.618 Number of Accumulation Units outstanding at end of period (in thousands) 170 165 TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.502 $12.957 Accumulation Unit Value at end of period $16.519 $14.502 Number of Accumulation Units outstanding at end of period (in thousands) 3,379 2,739 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.759 $12.303 Accumulation Unit Value at end of period $15.642 $13.759 Number of Accumulation Units outstanding at end of period (in thousands) 514 533 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.656 $12.215 Accumulation Unit Value at end of period $15.509 $13.656 Number of Accumulation Units outstanding at end of period (in thousands) 1,192 1,167 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.959 $11.600 Accumulation Unit Value at end of period $14.688 $12.959 Number of Accumulation Units outstanding at end of period (in thousands) 4,767 4,966 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.959 $11.600 Accumulation Unit Value at end of period $14.688 $12.959 Number of Accumulation Units outstanding at end of period (in thousands) 4,767 4,966 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.261 $11.885 Accumulation Unit Value at end of period $14.985 $13.261 Number of Accumulation Units outstanding at end of period (in thousands) 1,495 1,596 TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.068 $15.045 Accumulation Unit Value at end of period $17.234 $17.068 Number of Accumulation Units outstanding at end of period (in thousands) 9,032 6,655 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.798 $13.936 Accumulation Unit Value at end of period $15.920 $15.798 Number of Accumulation Units outstanding at end of period (in thousands) 1,188 1,106 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.680 $13.837 Accumulation Unit Value at end of period $15.785 $15.680 Number of Accumulation Units outstanding at end of period (in thousands) 1,528 1,620
27 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.342 $13.549 Accumulation Unit Value at end of period $15.414 $15.342 Number of Accumulation Units outstanding at end of period (in thousands) 10,657 10,184 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.342 $13.549 Accumulation Unit Value at end of period $15.414 $15.342 Number of Accumulation Units outstanding at end of period (in thousands) 10,657 10,184 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.227 $13.463 Accumulation Unit Value at end of period $15.252 $15.227 Number of Accumulation Units outstanding at end of period (in thousands) 1,750 1,945 VAN KAMPEN -- UIF INTERNATIONAL GROWTH EQUITY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.693 $10.265 Accumulation Unit Value at end of period $13.182 $11.693 Number of Accumulation Units outstanding at end of period (in thousands) 1 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.681 $10.262 Accumulation Unit Value at end of period $13.142 $11.681 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.675 $10.261 Accumulation Unit Value at end of period $13.122 $11.675 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.663 $10.258 Accumulation Unit Value at end of period $13.083 $11.663 Number of Accumulation Units outstanding at end of period (in thousands) 1 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.663 $10.258 Accumulation Unit Value at end of period $13.083 $11.663 Number of Accumulation Units outstanding at end of period (in thousands) 1 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.646 $10.254 Accumulation Unit Value at end of period $13.024 $11.646 Number of Accumulation Units outstanding at end of period (in thousands) -- -- VAN KAMPEN -- UIF U.S. MID CAP VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.012 $11.205 Accumulation Unit Value at end of period $13.831 $13.012 Number of Accumulation Units outstanding at end of period (in thousands) 1 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.964 $11.172 Accumulation Unit Value at end of period $13.753 $12.964 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.940 $11.156 Accumulation Unit Value at end of period $13.714 $12.940 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.893 $11.123 Accumulation Unit Value at end of period $13.637 $12.893 Number of Accumulation Units outstanding at end of period (in thousands) 1 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.893 $11.123 Accumulation Unit Value at end of period $13.637 $12.893 Number of Accumulation Units outstanding at end of period (in thousands) 1 --
28 -------------------------------------------------------------------------------
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.822 $11.075 Accumulation Unit Value at end of period $13.521 $12.822 Number of Accumulation Units outstanding at end of period (in thousands) -- -- VAN KAMPEN LIT COMSTOCK PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.983 $15.247 Accumulation Unit Value at end of period $16.365 $16.983 Number of Accumulation Units outstanding at end of period (in thousands) 6 2 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.920 $15.203 Accumulation Unit Value at end of period $16.272 $16.920 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $16.889 $15.180 Accumulation Unit Value at end of period $16.226 $16.889 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.766 $15.081 Accumulation Unit Value at end of period $16.075 $16.766 Number of Accumulation Units outstanding at end of period (in thousands) 8 4 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.766 $15.081 Accumulation Unit Value at end of period $16.075 $16.766 Number of Accumulation Units outstanding at end of period (in thousands) 8 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.582 $14.933 Accumulation Unit Value at end of period $15.852 $16.582 Number of Accumulation Units outstanding at end of period (in thousands) 2 -- VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.034 $15.313 Accumulation Unit Value at end of period $17.230 $17.034 Number of Accumulation Units outstanding at end of period (in thousands) 4 2 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.971 $15.268 Accumulation Unit Value at end of period $17.132 $16.971 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $16.940 $15.246 Accumulation Unit Value at end of period $17.084 $16.940 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.741 $15.078 Accumulation Unit Value at end of period $16.849 $16.741 Number of Accumulation Units outstanding at end of period (in thousands) 2 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.741 $15.078 Accumulation Unit Value at end of period $16.849 $16.741 Number of Accumulation Units outstanding at end of period (in thousands) 2 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.514 $14.891 Accumulation Unit Value at end of period $16.571 $16.514 Number of Accumulation Units outstanding at end of period (in thousands) -- --
(a) Inception date November 12, 2007. 29 ------------------------------------------------------------------------------- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- AIM V.I. BASIC VALUE FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.515 $1.332 Accumulation Unit Value at end of period $1.518 $1.515 Number of Accumulation Units outstanding at end of period (in thousands) 6,608 6,195 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.498 $1.318 Accumulation Unit Value at end of period $1.498 $1.498 Number of Accumulation Units outstanding at end of period (in thousands) 1,542 1,659 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.490 $1.312 Accumulation Unit Value at end of period $1.489 $1.490 Number of Accumulation Units outstanding at end of period (in thousands) 8,743 10,297 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.475 $1.299 Accumulation Unit Value at end of period $1.470 $1.475 Number of Accumulation Units outstanding at end of period (in thousands) 11,052 13,253 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.475 $1.299 Accumulation Unit Value at end of period $1.470 $1.475 Number of Accumulation Units outstanding at end of period (in thousands) 11,052 13,253 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.453 $1.282 Accumulation Unit Value at end of period $1.444 $1.453 Number of Accumulation Units outstanding at end of period (in thousands) 8,096 8,457 AIM V.I. CAPITAL APPRECIATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.419 $1.275 Accumulation Unit Value at end of period $1.568 $1.419 Number of Accumulation Units outstanding at end of period (in thousands) 2,809 2,651 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.403 $1.262 Accumulation Unit Value at end of period $1.547 $1.403 Number of Accumulation Units outstanding at end of period (in thousands) 632 939 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.396 $1.255 Accumulation Unit Value at end of period $1.538 $1.396 Number of Accumulation Units outstanding at end of period (in thousands) 4,548 5,294 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.381 $1.243 Accumulation Unit Value at end of period $1.519 $1.381 Number of Accumulation Units outstanding at end of period (in thousands) 7,718 8,382 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.381 $1.243 Accumulation Unit Value at end of period $1.519 $1.381 Number of Accumulation Units outstanding at end of period (in thousands) 7,718 8,382 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.361 $1.227 Accumulation Unit Value at end of period $1.492 $1.361 Number of Accumulation Units outstanding at end of period (in thousands) 3,914 4,407 AIM V.I. CAPITAL DEVELOPMENT FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.553 -- (a) Accumulation Unit Value at end of period $9.789 -- Number of Accumulation Units outstanding at end of period (in thousands) -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.550 -- (a) Accumulation Unit Value at end of period $9.784 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.549 -- (a) Accumulation Unit Value at end of period $9.781 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.546 -- (a) Accumulation Unit Value at end of period $9.775 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.546 -- (a) Accumulation Unit Value at end of period $9.775 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.542 -- (a) Accumulation Unit Value at end of period $9.767 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- AIM V.I. CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.863 $10.649 Accumulation Unit Value at end of period $12.654 $11.863 Number of Accumulation Units outstanding at end of period (in thousands) 2,217 2,337 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.819 $10.618 Accumulation Unit Value at end of period $12.582 $11.819 Number of Accumulation Units outstanding at end of period (in thousands) 497 524 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.798 $10.602 Accumulation Unit Value at end of period $12.547 $11.798 Number of Accumulation Units outstanding at end of period (in thousands) 1,396 1,557 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.754 $10.572 Accumulation Unit Value at end of period $12.476 $11.754 Number of Accumulation Units outstanding at end of period (in thousands) 3,648 4,063 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.754 $10.572 Accumulation Unit Value at end of period $12.476 $11.754 Number of Accumulation Units outstanding at end of period (in thousands) 3,648 4,063 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.690 $10.525 Accumulation Unit Value at end of period $12.370 $11.690 Number of Accumulation Units outstanding at end of period (in thousands) 2,511 2,770 AIM V.I. GOVERNMENT SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.119 $1.097 Accumulation Unit Value at end of period $1.174 $1.119 Number of Accumulation Units outstanding at end of period (in thousands) 73,021 44,385 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.106 $1.086 Accumulation Unit Value at end of period $1.158 $1.106 Number of Accumulation Units outstanding at end of period (in thousands) 11,962 9,739 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.100 $1.080 Accumulation Unit Value at end of period $1.151 $1.100 Number of Accumulation Units outstanding at end of period (in thousands) 32,443 26,808
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.089 $1.070 Accumulation Unit Value at end of period $1.137 $1.089 Number of Accumulation Units outstanding at end of period (in thousands) 71,648 58,221 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.089 $1.070 Accumulation Unit Value at end of period $1.137 $1.089 Number of Accumulation Units outstanding at end of period (in thousands) 71,648 58,221 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.073 $1.055 Accumulation Unit Value at end of period $1.117 $1.073 Number of Accumulation Units outstanding at end of period (in thousands) 42,275 37,566 AIM V.I. INTERNATIONAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $2.102 $1.814 Accumulation Unit Value at end of period $2.379 $2.102 Number of Accumulation Units outstanding at end of period (in thousands) 12,825 3,283 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.079 $1.795 Accumulation Unit Value at end of period $2.348 $2.079 Number of Accumulation Units outstanding at end of period (in thousands) 816 499 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $2.068 $1.786 Accumulation Unit Value at end of period $2.333 $2.068 Number of Accumulation Units outstanding at end of period (in thousands) 4,698 3,146 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $2.046 $1.769 Accumulation Unit Value at end of period $2.304 $2.046 Number of Accumulation Units outstanding at end of period (in thousands) 9,741 5,735 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.046 $1.769 Accumulation Unit Value at end of period $2.304 $2.046 Number of Accumulation Units outstanding at end of period (in thousands) 9,741 5,735 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $2.016 $1.746 Accumulation Unit Value at end of period $2.264 $2.016 Number of Accumulation Units outstanding at end of period (in thousands) 4,062 2,836 AIM V.I. LARGE CAP GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.474 $10.414 Accumulation Unit Value at end of period $13.091 $11.474 Number of Accumulation Units outstanding at end of period (in thousands) 198 166 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.432 $10.384 Accumulation Unit Value at end of period $13.017 $11.432 Number of Accumulation Units outstanding at end of period (in thousands) 78 58 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.411 $10.369 Accumulation Unit Value at end of period $12.980 $11.411 Number of Accumulation Units outstanding at end of period (in thousands) 263 283 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.369 $10.338 Accumulation Unit Value at end of period $12.907 $11.369 Number of Accumulation Units outstanding at end of period (in thousands) 290 286 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.369 $10.338 Accumulation Unit Value at end of period $12.907 $11.369 Number of Accumulation Units outstanding at end of period (in thousands) 290 286
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.307 $10.293 Accumulation Unit Value at end of period $12.797 $11.307 Number of Accumulation Units outstanding at end of period (in thousands) 266 210 AIM V.I. MID CAP CORE EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.663 $1.495 Accumulation Unit Value at end of period $1.797 $1.663 Number of Accumulation Units outstanding at end of period (in thousands) 11,271 8,186 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.644 $1.479 Accumulation Unit Value at end of period $1.773 $1.644 Number of Accumulation Units outstanding at end of period (in thousands) 2,701 2,769 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.635 $1.472 Accumulation Unit Value at end of period $1.762 $1.635 Number of Accumulation Units outstanding at end of period (in thousands) 12,288 13,389 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.618 $1.457 Accumulation Unit Value at end of period $1.740 $1.618 Number of Accumulation Units outstanding at end of period (in thousands) 15,280 14,353 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.618 $1.457 Accumulation Unit Value at end of period $1.740 $1.618 Number of Accumulation Units outstanding at end of period (in thousands) 15,280 14,353 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.595 $1.438 Accumulation Unit Value at end of period $1.710 $1.595 Number of Accumulation Units outstanding at end of period (in thousands) 9,600 9,932 AIM V.I. SMALL CAP EQUITY FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.394 $12.905 Accumulation Unit Value at end of period $14.937 $14.394 Number of Accumulation Units outstanding at end of period (in thousands) 837 358 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.302 $12.832 Accumulation Unit Value at end of period $14.812 $14.302 Number of Accumulation Units outstanding at end of period (in thousands) 67 53 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.256 $12.796 Accumulation Unit Value at end of period $14.750 $14.256 Number of Accumulation Units outstanding at end of period (in thousands) 414 327 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.165 $12.724 Accumulation Unit Value at end of period $14.626 $14.165 Number of Accumulation Units outstanding at end of period (in thousands) 909 610 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.165 $12.724 Accumulation Unit Value at end of period $14.626 $14.165 Number of Accumulation Units outstanding at end of period (in thousands) 909 610 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.029 $12.617 Accumulation Unit Value at end of period $14.443 $14.029 Number of Accumulation Units outstanding at end of period (in thousands) 326 267
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- AMERICAN FUNDS ASSET ALLOCATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.608 $13.529 Accumulation Unit Value at end of period $15.357 $14.608 Number of Accumulation Units outstanding at end of period (in thousands) 8,860 6,835 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.301 $12.328 Accumulation Unit Value at end of period $13.955 $13.301 Number of Accumulation Units outstanding at end of period (in thousands) 2,854 2,952 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.202 $12.241 Accumulation Unit Value at end of period $13.836 $13.202 Number of Accumulation Units outstanding at end of period (in thousands) 10,207 11,265 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.360 $12.397 Accumulation Unit Value at end of period $13.974 $13.360 Number of Accumulation Units outstanding at end of period (in thousands) 9,486 9,300 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.360 $12.397 Accumulation Unit Value at end of period $13.974 $13.360 Number of Accumulation Units outstanding at end of period (in thousands) 9,486 9,300 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.820 $11.909 Accumulation Unit Value at end of period $13.369 $12.820 Number of Accumulation Units outstanding at end of period (in thousands) 5,087 4,899 AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.222 $1.090 Accumulation Unit Value at end of period $1.230 $1.222 Number of Accumulation Units outstanding at end of period (in thousands) 67,641 55,180 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.208 $1.078 Accumulation Unit Value at end of period $1.213 $1.208 Number of Accumulation Units outstanding at end of period (in thousands) 16,818 17,576 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.201 $1.072 Accumulation Unit Value at end of period $1.205 $1.201 Number of Accumulation Units outstanding at end of period (in thousands) 68,553 74,980 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.188 $1.061 Accumulation Unit Value at end of period $1.190 $1.188 Number of Accumulation Units outstanding at end of period (in thousands) 71,928 73,628 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.188 $1.061 Accumulation Unit Value at end of period $1.190 $1.188 Number of Accumulation Units outstanding at end of period (in thousands) 71,928 73,628 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.170 $1.047 Accumulation Unit Value at end of period $1.169 $1.170 Number of Accumulation Units outstanding at end of period (in thousands) 39,063 40,200 AMERICAN FUNDS BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.281 $13.769 Accumulation Unit Value at end of period $14.558 $14.281 Number of Accumulation Units outstanding at end of period (in thousands) 5,995 3,880
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.872 $13.386 Accumulation Unit Value at end of period $14.114 $13.872 Number of Accumulation Units outstanding at end of period (in thousands) 1,505 1,438 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.769 $13.291 Accumulation Unit Value at end of period $13.994 $13.769 Number of Accumulation Units outstanding at end of period (in thousands) 5,860 6,010 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.147 $12.700 Accumulation Unit Value at end of period $13.336 $13.147 Number of Accumulation Units outstanding at end of period (in thousands) 5,949 5,418 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.147 $12.700 Accumulation Unit Value at end of period $13.336 $13.147 Number of Accumulation Units outstanding at end of period (in thousands) 5,949 5,418 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.371 $12.931 Accumulation Unit Value at end of period $13.522 $13.371 Number of Accumulation Units outstanding at end of period (in thousands) 3,400 3,215 AMERICAN FUNDS GLOBAL BOND FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.207 $10.028 Accumulation Unit Value at end of period $10.999 $10.207 Number of Accumulation Units outstanding at end of period (in thousands) 929 123 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.202 $10.026 Accumulation Unit Value at end of period $10.972 $10.202 Number of Accumulation Units outstanding at end of period (in thousands) 98 35 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.199 $10.025 Accumulation Unit Value at end of period $10.958 $10.199 Number of Accumulation Units outstanding at end of period (in thousands) 292 71 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.194 $10.023 Accumulation Unit Value at end of period $10.931 $10.194 Number of Accumulation Units outstanding at end of period (in thousands) 521 93 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.194 $10.023 Accumulation Unit Value at end of period $10.931 $10.194 Number of Accumulation Units outstanding at end of period (in thousands) 521 93 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.187 $10.021 Accumulation Unit Value at end of period $10.890 $10.187 Number of Accumulation Units outstanding at end of period (in thousands) 308 48 AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.921 $9.653 Accumulation Unit Value at end of period $12.140 $10.921 Number of Accumulation Units outstanding at end of period (in thousands) 7,322 2,278 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.905 $9.646 Accumulation Unit Value at end of period $12.097 $10.905 Number of Accumulation Units outstanding at end of period (in thousands) 479 201 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.897 $9.643 Accumulation Unit Value at end of period $12.076 $10.897 Number of Accumulation Units outstanding at end of period (in thousands) 2,020 815
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.881 $9.636 Accumulation Unit Value at end of period $12.034 $10.881 Number of Accumulation Units outstanding at end of period (in thousands) 3,228 1,545 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.881 $9.636 Accumulation Unit Value at end of period $12.034 $10.881 Number of Accumulation Units outstanding at end of period (in thousands) 3,228 1,545 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.856 $9.625 Accumulation Unit Value at end of period $11.972 $10.856 Number of Accumulation Units outstanding at end of period (in thousands) 1,137 560 AMERICAN FUNDS GLOBAL GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.715 $14.005 Accumulation Unit Value at end of period $17.807 $15.715 Number of Accumulation Units outstanding at end of period (in thousands) 3,539 2,602 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.703 $14.005 Accumulation Unit Value at end of period $17.757 $15.703 Number of Accumulation Units outstanding at end of period (in thousands) 851 865 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.585 $13.906 Accumulation Unit Value at end of period $17.607 $15.585 Number of Accumulation Units outstanding at end of period (in thousands) 3,052 3,235 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.013 $10.726 Accumulation Unit Value at end of period $13.543 $12.013 Number of Accumulation Units outstanding at end of period (in thousands) 4,585 4,330 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.013 $10.726 Accumulation Unit Value at end of period $13.543 $12.013 Number of Accumulation Units outstanding at end of period (in thousands) 4,585 4,330 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.135 $13.529 Accumulation Unit Value at end of period $17.012 $15.135 Number of Accumulation Units outstanding at end of period (in thousands) 1,573 1,456 AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.960 $17.270 Accumulation Unit Value at end of period $23.912 $19.960 Number of Accumulation Units outstanding at end of period (in thousands) 2,024 1,410 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $21.000 $18.184 Accumulation Unit Value at end of period $25.108 $21.000 Number of Accumulation Units outstanding at end of period (in thousands) 364 383 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $20.843 $18.055 Accumulation Unit Value at end of period $24.896 $20.843 Number of Accumulation Units outstanding at end of period (in thousands) 1,517 1,547 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.282 $13.247 Accumulation Unit Value at end of period $18.216 $15.282 Number of Accumulation Units outstanding at end of period (in thousands) 3,260 3,005 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.282 $13.247 Accumulation Unit Value at end of period $18.216 $15.282 Number of Accumulation Units outstanding at end of period (in thousands) 3,260 3,005
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.241 $17.566 Accumulation Unit Value at end of period $24.055 $20.241 Number of Accumulation Units outstanding at end of period (in thousands) 1,344 1,225 AMERICAN FUNDS GROWTH FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.955 $13.663 Accumulation Unit Value at end of period $16.576 $14.955 Number of Accumulation Units outstanding at end of period (in thousands) 21,794 14,681 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.287 $13.063 Accumulation Unit Value at end of period $15.805 $14.287 Number of Accumulation Units outstanding at end of period (in thousands) 4,673 4,883 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.181 $12.970 Accumulation Unit Value at end of period $15.671 $14.181 Number of Accumulation Units outstanding at end of period (in thousands) 17,290 18,524 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.792 $8.963 Accumulation Unit Value at end of period $10.799 $9.792 Number of Accumulation Units outstanding at end of period (in thousands) 34,759 33,246 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.792 $8.963 Accumulation Unit Value at end of period $10.799 $9.792 Number of Accumulation Units outstanding at end of period (in thousands) 34,759 33,246 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.770 $12.619 Accumulation Unit Value at end of period $15.142 $13.770 Number of Accumulation Units outstanding at end of period (in thousands) 12,822 13,143 AMERICAN FUNDS GROWTH-INCOME FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.692 $14.089 Accumulation Unit Value at end of period $16.262 $15.692 Number of Accumulation Units outstanding at end of period (in thousands) 22,677 15,912 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.853 $12.448 Accumulation Unit Value at end of period $14.328 $13.853 Number of Accumulation Units outstanding at end of period (in thousands) 5,987 6,223 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.750 $12.360 Accumulation Unit Value at end of period $14.207 $13.750 Number of Accumulation Units outstanding at end of period (in thousands) 17,696 19,476 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.798 $12.413 Accumulation Unit Value at end of period $14.228 $13.798 Number of Accumulation Units outstanding at end of period (in thousands) 25,475 24,685 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.798 $12.413 Accumulation Unit Value at end of period $14.228 $13.798 Number of Accumulation Units outstanding at end of period (in thousands) 25,475 24,685 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.352 $12.025 Accumulation Unit Value at end of period $13.727 $13.352 Number of Accumulation Units outstanding at end of period (in thousands) 14,288 14,895
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- AMERICAN FUNDS INTERNATIONAL FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.583 $14.249 Accumulation Unit Value at end of period $18.452 $15.583 Number of Accumulation Units outstanding at end of period (in thousands) 6,638 4,853 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.258 $14.878 Accumulation Unit Value at end of period $19.213 $16.258 Number of Accumulation Units outstanding at end of period (in thousands) 1,385 1,440 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $16.137 $14.773 Accumulation Unit Value at end of period $19.051 $16.137 Number of Accumulation Units outstanding at end of period (in thousands) 4,174 4,450 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.215 $11.191 Accumulation Unit Value at end of period $14.392 $12.215 Number of Accumulation Units outstanding at end of period (in thousands) 8,017 7,753 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.215 $11.191 Accumulation Unit Value at end of period $14.392 $12.215 Number of Accumulation Units outstanding at end of period (in thousands) 8,017 7,753 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.670 $14.373 Accumulation Unit Value at end of period $18.408 $15.670 Number of Accumulation Units outstanding at end of period (in thousands) 3,243 3,210 AMERICAN FUNDS NEW WORLD FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.315 $19.942 Accumulation Unit Value at end of period $30.412 $23.315 Number of Accumulation Units outstanding at end of period (in thousands) 1,664 1,045 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $21.829 $18.684 Accumulation Unit Value at end of period $28.416 $21.829 Number of Accumulation Units outstanding at end of period (in thousands) 322 323 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $21.665 $18.552 Accumulation Unit Value at end of period $28.176 $21.665 Number of Accumulation Units outstanding at end of period (in thousands) 1,124 1,137 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $20.273 $17.373 Accumulation Unit Value at end of period $26.312 $20.273 Number of Accumulation Units outstanding at end of period (in thousands) 1,638 1,360 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $20.273 $17.373 Accumulation Unit Value at end of period $26.312 $20.273 Number of Accumulation Units outstanding at end of period (in thousands) 1,638 1,360 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $21.039 $18.050 Accumulation Unit Value at end of period $27.225 $21.039 Number of Accumulation Units outstanding at end of period (in thousands) 824 693 FRANKLIN FLEX CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.878 $10.070 Accumulation Unit Value at end of period $12.269 $10.878 Number of Accumulation Units outstanding at end of period (in thousands) 545 378
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.838 $10.041 Accumulation Unit Value at end of period $12.200 $10.838 Number of Accumulation Units outstanding at end of period (in thousands) 68 63 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.818 $10.026 Accumulation Unit Value at end of period $12.165 $10.818 Number of Accumulation Units outstanding at end of period (in thousands) 149 52 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.778 $9.997 Accumulation Unit Value at end of period $12.096 $10.778 Number of Accumulation Units outstanding at end of period (in thousands) 411 333 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.778 $9.997 Accumulation Unit Value at end of period $12.096 $10.778 Number of Accumulation Units outstanding at end of period (in thousands) 411 333 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.719 $9.954 Accumulation Unit Value at end of period $11.994 $10.719 Number of Accumulation Units outstanding at end of period (in thousands) 62 50 FRANKLIN INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.791 $14.629 Accumulation Unit Value at end of period $16.165 $15.791 Number of Accumulation Units outstanding at end of period (in thousands) 18,719 10,651 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.637 $14.497 Accumulation Unit Value at end of period $15.975 $15.637 Number of Accumulation Units outstanding at end of period (in thousands) 2,143 1,904 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.564 $14.435 Accumulation Unit Value at end of period $15.884 $15.564 Number of Accumulation Units outstanding at end of period (in thousands) 7,494 6,794 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.419 $14.312 Accumulation Unit Value at end of period $15.705 $15.419 Number of Accumulation Units outstanding at end of period (in thousands) 15,038 13,232 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.419 $14.312 Accumulation Unit Value at end of period $15.705 $15.419 Number of Accumulation Units outstanding at end of period (in thousands) 15,038 13,232 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.211 $14.134 Accumulation Unit Value at end of period $15.446 $15.211 Number of Accumulation Units outstanding at end of period (in thousands) 6,167 5,986 FRANKLIN LARGE CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.066 $10.796 Accumulation Unit Value at end of period $12.646 $12.066 Number of Accumulation Units outstanding at end of period (in thousands) 1,911 1,569 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.948 $10.698 Accumulation Unit Value at end of period $12.497 $11.948 Number of Accumulation Units outstanding at end of period (in thousands) 334 326 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.893 $10.652 Accumulation Unit Value at end of period $12.427 $11.893 Number of Accumulation Units outstanding at end of period (in thousands) 868 914
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.782 $10.561 Accumulation Unit Value at end of period $12.287 $11.782 Number of Accumulation Units outstanding at end of period (in thousands) 2,236 2,303 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.782 $10.561 Accumulation Unit Value at end of period $12.287 $11.782 Number of Accumulation Units outstanding at end of period (in thousands) 2,236 2,303 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.622 $10.430 Accumulation Unit Value at end of period $12.084 $11.622 Number of Accumulation Units outstanding at end of period (in thousands) 1,362 1,472 FRANKLIN LARGE CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.824 $10.571 Accumulation Unit Value at end of period $11.634 $11.824 Number of Accumulation Units outstanding at end of period (in thousands) 349 185 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.780 $10.541 Accumulation Unit Value at end of period $11.569 $11.780 Number of Accumulation Units outstanding at end of period (in thousands) 49 38 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.759 $10.525 Accumulation Unit Value at end of period $11.536 $11.759 Number of Accumulation Units outstanding at end of period (in thousands) 141 81 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.716 $10.495 Accumulation Unit Value at end of period $11.471 $11.716 Number of Accumulation Units outstanding at end of period (in thousands) 164 132 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.716 $10.495 Accumulation Unit Value at end of period $11.471 $11.716 Number of Accumulation Units outstanding at end of period (in thousands) 164 132 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.651 $10.449 Accumulation Unit Value at end of period $11.374 $11.651 Number of Accumulation Units outstanding at end of period (in thousands) 99 29 FRANKLIN RISING DIVIDENDS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.628 $14.119 Accumulation Unit Value at end of period $15.004 $15.628 Number of Accumulation Units outstanding at end of period (in thousands) 9,602 5,616 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.514 $14.026 Accumulation Unit Value at end of period $14.865 $15.514 Number of Accumulation Units outstanding at end of period (in thousands) 813 777 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.457 $13.980 Accumulation Unit Value at end of period $14.795 $15.457 Number of Accumulation Units outstanding at end of period (in thousands) 3,017 2,775 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.344 $13.888 Accumulation Unit Value at end of period $14.658 $15.344 Number of Accumulation Units outstanding at end of period (in thousands) 7,375 6,669 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.344 $13.888 Accumulation Unit Value at end of period $14.658 $15.344 Number of Accumulation Units outstanding at end of period (in thousands) 7,375 6,669
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.176 $13.752 Accumulation Unit Value at end of period $14.454 $15.176 Number of Accumulation Units outstanding at end of period (in thousands) 2,833 3,074 FRANKLIN SMALL CAP VALUE SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.254 -- (a) Accumulation Unit Value at end of period $9.253 -- Number of Accumulation Units outstanding at end of period (in thousands) 7 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.251 -- (a) Accumulation Unit Value at end of period $9.248 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.250 -- (a) Accumulation Unit Value at end of period $9.246 -- Number of Accumulation Units outstanding at end of period (in thousands) 1 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.247 -- (a) Accumulation Unit Value at end of period $9.240 -- Number of Accumulation Units outstanding at end of period (in thousands) 4 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.247 -- (a) Accumulation Unit Value at end of period $9.240 -- Number of Accumulation Units outstanding at end of period (in thousands) 4 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.243 -- (a) Accumulation Unit Value at end of period $9.233 -- Number of Accumulation Units outstanding at end of period (in thousands) -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.943 $11.599 Accumulation Unit Value at end of period $14.205 $12.943 Number of Accumulation Units outstanding at end of period (in thousands) 1,799 1,096 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.406 $12.022 Accumulation Unit Value at end of period $14.683 $13.406 Number of Accumulation Units outstanding at end of period (in thousands) 498 551 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.305 $11.937 Accumulation Unit Value at end of period $14.559 $13.305 Number of Accumulation Units outstanding at end of period (in thousands) 1,713 1,889 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $7.646 $6.865 Accumulation Unit Value at end of period $8.350 $7.646 Number of Accumulation Units outstanding at end of period (in thousands) 3,543 3,280 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.646 $6.865 Accumulation Unit Value at end of period $8.350 $7.646 Number of Accumulation Units outstanding at end of period (in thousands) 3,543 3,280 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.920 $11.614 Accumulation Unit Value at end of period $14.067 $12.920 Number of Accumulation Units outstanding at end of period (in thousands) 1,053 896
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- FRANKLIN STRATEGIC INCOME SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.961 $15.300 Accumulation Unit Value at end of period $16.724 $15.961 Number of Accumulation Units outstanding at end of period (in thousands) 3,680 2,423 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.392 $14.766 Accumulation Unit Value at end of period $16.095 $15.392 Number of Accumulation Units outstanding at end of period (in thousands) 662 635 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.277 $14.661 Accumulation Unit Value at end of period $15.959 $15.277 Number of Accumulation Units outstanding at end of period (in thousands) 2,433 2,382 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.539 $13.963 Accumulation Unit Value at end of period $15.158 $14.539 Number of Accumulation Units outstanding at end of period (in thousands) 3,268 2,932 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.539 $13.963 Accumulation Unit Value at end of period $15.158 $14.539 Number of Accumulation Units outstanding at end of period (in thousands) 3,268 2,932 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.835 $14.264 Accumulation Unit Value at end of period $15.420 $14.835 Number of Accumulation Units outstanding at end of period (in thousands) 1,826 1,827 HARTFORD MONEY MARKET HLS FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $1.129 $1.113 Accumulation Unit Value at end of period $1.169 $1.129 Number of Accumulation Units outstanding at end of period (in thousands) 36,410 20,188 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.118 $1.103 Accumulation Unit Value at end of period $1.155 $1.118 Number of Accumulation Units outstanding at end of period (in thousands) 8,488 7,071 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $1.110 $1.096 Accumulation Unit Value at end of period $1.145 $1.110 Number of Accumulation Units outstanding at end of period (in thousands) 37,299 30,252 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $1.044 $1.032 Accumulation Unit Value at end of period $1.076 $1.044 Number of Accumulation Units outstanding at end of period (in thousands) 47,059 27,480 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.044 $1.032 Accumulation Unit Value at end of period $1.076 $1.044 Number of Accumulation Units outstanding at end of period (in thousands) 47,059 27,480 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $1.078 $1.066 Accumulation Unit Value at end of period $1.107 $1.078 Number of Accumulation Units outstanding at end of period (in thousands) 28,706 15,931 MFS(R) CORE EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.139 $8.904 Accumulation Unit Value at end of period $11.119 $10.139 Number of Accumulation Units outstanding at end of period (in thousands) 51 61
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.413 $8.272 Accumulation Unit Value at end of period $10.301 $9.413 Number of Accumulation Units outstanding at end of period (in thousands) 172 215 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.342 $8.213 Accumulation Unit Value at end of period $10.214 $9.342 Number of Accumulation Units outstanding at end of period (in thousands) 446 662 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $7.007 $6.165 Accumulation Unit Value at end of period $7.645 $7.007 Number of Accumulation Units outstanding at end of period (in thousands) 233 264 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $7.007 $6.165 Accumulation Unit Value at end of period $7.645 $7.007 Number of Accumulation Units outstanding at end of period (in thousands) 233 264 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.072 $7.991 Accumulation Unit Value at end of period $9.869 $9.072 Number of Accumulation Units outstanding at end of period (in thousands) 91 72 MFS(R) EMERGING GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.679 $7.650 Accumulation Unit Value at end of period $10.375 $8.679 Number of Accumulation Units outstanding at end of period (in thousands) 247 153 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $8.486 $7.486 Accumulation Unit Value at end of period $10.125 $8.486 Number of Accumulation Units outstanding at end of period (in thousands) 263 302 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.423 $7.433 Accumulation Unit Value at end of period $10.039 $8.423 Number of Accumulation Units outstanding at end of period (in thousands) 498 556 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $5.558 $4.909 Accumulation Unit Value at end of period $6.612 $5.558 Number of Accumulation Units outstanding at end of period (in thousands) 662 442 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.558 $4.909 Accumulation Unit Value at end of period $6.612 $5.558 Number of Accumulation Units outstanding at end of period (in thousands) 662 442 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.179 $7.231 Accumulation Unit Value at end of period $9.700 $8.179 Number of Accumulation Units outstanding at end of period (in thousands) 261 189 MFS(R) GLOBAL EQUITY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.420 $14.646 Accumulation Unit Value at end of period $17.689 $16.420 Number of Accumulation Units outstanding at end of period (in thousands) 156 128 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.528 $13.861 Accumulation Unit Value at end of period $16.695 $15.528 Number of Accumulation Units outstanding at end of period (in thousands) 45 53 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.412 $13.762 Accumulation Unit Value at end of period $16.554 $15.412 Number of Accumulation Units outstanding at end of period (in thousands) 148 175
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 -------------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.828 $12.358 Accumulation Unit Value at end of period $14.823 $13.828 Number of Accumulation Units outstanding at end of period (in thousands) 191 197 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.828 $12.358 Accumulation Unit Value at end of period $14.823 $13.828 Number of Accumulation Units outstanding at end of period (in thousands) 191 197 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.966 $13.390 Accumulation Unit Value at end of period $15.995 $14.966 Number of Accumulation Units outstanding at end of period (in thousands) 150 129 MFS(R) HIGH INCOME SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.282 $12.513 Accumulation Unit Value at end of period $13.336 $13.282 Number of Accumulation Units outstanding at end of period (in thousands) 740 617 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.783 $12.052 Accumulation Unit Value at end of period $12.809 $12.783 Number of Accumulation Units outstanding at end of period (in thousands) 245 283 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.687 $11.966 Accumulation Unit Value at end of period $12.700 $12.687 Number of Accumulation Units outstanding at end of period (in thousands) 1,135 1,406 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.701 $11.988 Accumulation Unit Value at end of period $12.689 $12.701 Number of Accumulation Units outstanding at end of period (in thousands) 778 952 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.701 $11.988 Accumulation Unit Value at end of period $12.689 $12.701 Number of Accumulation Units outstanding at end of period (in thousands) 778 952 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.321 $11.642 Accumulation Unit Value at end of period $12.272 $12.321 Number of Accumulation Units outstanding at end of period (in thousands) 597 612 MFS(R) INVESTORS GROWTH STOCK SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $8.871 $7.962 Accumulation Unit Value at end of period $9.746 $8.871 Number of Accumulation Units outstanding at end of period (in thousands) 268 216 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $8.390 $7.536 Accumulation Unit Value at end of period $9.199 $8.390 Number of Accumulation Units outstanding at end of period (in thousands) 431 559 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $8.327 $7.482 Accumulation Unit Value at end of period $9.121 $8.327 Number of Accumulation Units outstanding at end of period (in thousands) 475 681 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.473 $5.821 Accumulation Unit Value at end of period $7.076 $6.473 Number of Accumulation Units outstanding at end of period (in thousands) 619 663 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.473 $5.821 Accumulation Unit Value at end of period $7.076 $6.473 Number of Accumulation Units outstanding at end of period (in thousands) 619 663
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $8.086 $7.280 Accumulation Unit Value at end of period $8.813 $8.086 Number of Accumulation Units outstanding at end of period (in thousands) 196 211 MFS(R) INVESTORS TRUST SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.127 $10.024 Accumulation Unit Value at end of period $12.109 $11.127 Number of Accumulation Units outstanding at end of period (in thousands) 4,793 3,211 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.771 $8.809 Accumulation Unit Value at end of period $10.612 $9.771 Number of Accumulation Units outstanding at end of period (in thousands) 1,240 1,305 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.698 $8.747 Accumulation Unit Value at end of period $10.522 $9.698 Number of Accumulation Units outstanding at end of period (in thousands) 2,369 2,328 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.502 $8.577 Accumulation Unit Value at end of period $10.290 $9.502 Number of Accumulation Units outstanding at end of period (in thousands) 5,694 5,320 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.502 $8.577 Accumulation Unit Value at end of period $10.290 $9.502 Number of Accumulation Units outstanding at end of period (in thousands) 5,694 5,320 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.417 $8.510 Accumulation Unit Value at end of period $10.167 $9.417 Number of Accumulation Units outstanding at end of period (in thousands) 3,026 3,137 MFS(R) MID CAP GROWTH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $6.126 $5.444 Accumulation Unit Value at end of period $6.638 $6.126 Number of Accumulation Units outstanding at end of period (in thousands) 881 691 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.036 $5.368 Accumulation Unit Value at end of period $6.527 $6.036 Number of Accumulation Units outstanding at end of period (in thousands) 310 395 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $5.998 $5.336 Accumulation Unit Value at end of period $6.479 $5.998 Number of Accumulation Units outstanding at end of period (in thousands) 1,400 1,674 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.405 $5.703 Accumulation Unit Value at end of period $6.905 $6.405 Number of Accumulation Units outstanding at end of period (in thousands) 1,185 1,295 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.405 $5.703 Accumulation Unit Value at end of period $6.905 $6.405 Number of Accumulation Units outstanding at end of period (in thousands) 1,185 1,295 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $5.832 $5.199 Accumulation Unit Value at end of period $6.269 $5.832 Number of Accumulation Units outstanding at end of period (in thousands) 935 985
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.233 $12.701 Accumulation Unit Value at end of period $15.407 $15.233 Number of Accumulation Units outstanding at end of period (in thousands) 2,453 1,776 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.881 $11.583 Accumulation Unit Value at end of period $14.012 $13.881 Number of Accumulation Units outstanding at end of period (in thousands) 492 451 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.778 $11.500 Accumulation Unit Value at end of period $13.893 $13.778 Number of Accumulation Units outstanding at end of period (in thousands) 1,291 1,416 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.029 $7.542 Accumulation Unit Value at end of period $9.086 $9.029 Number of Accumulation Units outstanding at end of period (in thousands) 3,734 3,779 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.029 $7.542 Accumulation Unit Value at end of period $9.086 $9.029 Number of Accumulation Units outstanding at end of period (in thousands) 3,734 3,779 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.379 $11.189 Accumulation Unit Value at end of period $13.424 $13.379 Number of Accumulation Units outstanding at end of period (in thousands) 1,256 1,385 MFS(R) RESEARCH BOND SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.307 $9.991 Accumulation Unit Value at end of period $10.596 $10.307 Number of Accumulation Units outstanding at end of period (in thousands) 1,186 456 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.269 $9.962 Accumulation Unit Value at end of period $10.537 $10.269 Number of Accumulation Units outstanding at end of period (in thousands) 99 50 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.251 $9.948 Accumulation Unit Value at end of period $10.507 $10.251 Number of Accumulation Units outstanding at end of period (in thousands) 341 109 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.214 $9.919 Accumulation Unit Value at end of period $10.448 $10.214 Number of Accumulation Units outstanding at end of period (in thousands) 749 305 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.214 $9.919 Accumulation Unit Value at end of period $10.448 $10.214 Number of Accumulation Units outstanding at end of period (in thousands) 749 305 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.158 $9.877 Accumulation Unit Value at end of period $10.361 $10.158 Number of Accumulation Units outstanding at end of period (in thousands) 221 76 MFS(R) RESEARCH INTERNATIONAL SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.847 $13.202 Accumulation Unit Value at end of period $16.527 $14.847 Number of Accumulation Units outstanding at end of period (in thousands) 506 118
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.798 $13.168 Accumulation Unit Value at end of period $16.439 $14.798 Number of Accumulation Units outstanding at end of period (in thousands) 35 23 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.773 $13.151 Accumulation Unit Value at end of period $16.395 $14.773 Number of Accumulation Units outstanding at end of period (in thousands) 150 76 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.724 $13.117 Accumulation Unit Value at end of period $16.307 $14.724 Number of Accumulation Units outstanding at end of period (in thousands) 389 192 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.724 $13.117 Accumulation Unit Value at end of period $16.307 $14.724 Number of Accumulation Units outstanding at end of period (in thousands) 389 192 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $14.650 $13.066 Accumulation Unit Value at end of period $16.177 $14.650 Number of Accumulation Units outstanding at end of period (in thousands) 133 58 MFS(R) RESEARCH SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.572 $10.310 Accumulation Unit Value at end of period $12.925 $11.572 Number of Accumulation Units outstanding at end of period (in thousands) 368 140 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.530 $10.280 Accumulation Unit Value at end of period $12.851 $11.530 Number of Accumulation Units outstanding at end of period (in thousands) 8 2 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.508 $10.265 Accumulation Unit Value at end of period $12.815 $11.508 Number of Accumulation Units outstanding at end of period (in thousands) 68 36 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.466 $10.235 Accumulation Unit Value at end of period $12.742 $11.466 Number of Accumulation Units outstanding at end of period (in thousands) 296 163 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.466 $10.235 Accumulation Unit Value at end of period $12.742 $11.466 Number of Accumulation Units outstanding at end of period (in thousands) 296 163 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.403 $10.190 Accumulation Unit Value at end of period $12.634 $11.403 Number of Accumulation Units outstanding at end of period (in thousands) 30 12 MFS(R) TOTAL RETURN SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $15.523 $14.270 Accumulation Unit Value at end of period $15.960 $15.523 Number of Accumulation Units outstanding at end of period (in thousands) 9,927 6,316 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $14.290 $13.146 Accumulation Unit Value at end of period $14.663 $14.290 Number of Accumulation Units outstanding at end of period (in thousands) 1,628 1,682 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $14.183 $13.053 Accumulation Unit Value at end of period $14.539 $14.183 Number of Accumulation Units outstanding at end of period (in thousands) 5,780 6,059
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.303 $12.253 Accumulation Unit Value at end of period $13.610 $13.303 Number of Accumulation Units outstanding at end of period (in thousands) 9,822 9,376 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.303 $12.253 Accumulation Unit Value at end of period $13.610 $13.303 Number of Accumulation Units outstanding at end of period (in thousands) 9,822 9,376 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.773 $12.700 Accumulation Unit Value at end of period $14.048 $13.773 Number of Accumulation Units outstanding at end of period (in thousands) 4,400 4,321 MFS(R) VALUE SERIES WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.453 $15.537 Accumulation Unit Value at end of period $18.581 $17.453 Number of Accumulation Units outstanding at end of period (in thousands) 1,861 949 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.325 $15.435 Accumulation Unit Value at end of period $18.408 $17.325 Number of Accumulation Units outstanding at end of period (in thousands) 189 134 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $17.262 $15.385 Accumulation Unit Value at end of period $18.322 $17.262 Number of Accumulation Units outstanding at end of period (in thousands) 682 528 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.136 $15.284 Accumulation Unit Value at end of period $18.152 $17.136 Number of Accumulation Units outstanding at end of period (in thousands) 1,424 876 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $17.136 $15.284 Accumulation Unit Value at end of period $18.152 $17.136 Number of Accumulation Units outstanding at end of period (in thousands) 1,424 876 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.948 $15.134 Accumulation Unit Value at end of period $17.899 $16.948 Number of Accumulation Units outstanding at end of period (in thousands) 601 499 MORGAN STANLEY -- CAPITAL OPPORTUNITIES PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $4.615 $4.071 Accumulation Unit Value at end of period $5.422 $4.615 Number of Accumulation Units outstanding at end of period (in thousands) 159 70 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $4.598 $4.059 Accumulation Unit Value at end of period $5.391 $4.598 Number of Accumulation Units outstanding at end of period (in thousands) 7 6 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $4.590 $4.053 Accumulation Unit Value at end of period $5.376 $4.590 Number of Accumulation Units outstanding at end of period (in thousands) 43 11 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $4.536 $4.009 Accumulation Unit Value at end of period $5.302 $4.536 Number of Accumulation Units outstanding at end of period (in thousands) 65 31 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $4.536 $4.009 Accumulation Unit Value at end of period $5.302 $4.536 Number of Accumulation Units outstanding at end of period (in thousands) 65 31
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $4.474 $3.959 Accumulation Unit Value at end of period $5.215 $4.474 Number of Accumulation Units outstanding at end of period (in thousands) 18 2 MORGAN STANLEY -- DEVELOPING GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $9.473 $8.193 Accumulation Unit Value at end of period $11.463 $9.473 Number of Accumulation Units outstanding at end of period (in thousands) 21 1 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.438 $8.169 Accumulation Unit Value at end of period $11.398 $9.438 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $9.421 $8.157 Accumulation Unit Value at end of period $11.366 $9.421 Number of Accumulation Units outstanding at end of period (in thousands) 2 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $9.310 $8.067 Accumulation Unit Value at end of period $11.209 $9.310 Number of Accumulation Units outstanding at end of period (in thousands) 4 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.310 $8.067 Accumulation Unit Value at end of period $11.209 $9.310 Number of Accumulation Units outstanding at end of period (in thousands) 4 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $9.184 $7.967 Accumulation Unit Value at end of period $11.025 $9.184 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MORGAN STANLEY -- DIVIDEND GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $12.696 $11.537 Accumulation Unit Value at end of period $13.021 $12.696 Number of Accumulation Units outstanding at end of period (in thousands) 11 11 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.650 $11.504 Accumulation Unit Value at end of period $12.947 $12.650 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.626 $11.487 Accumulation Unit Value at end of period $12.911 $12.626 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.478 $11.360 Accumulation Unit Value at end of period $12.733 $12.478 Number of Accumulation Units outstanding at end of period (in thousands) 5 4 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.478 $11.360 Accumulation Unit Value at end of period $12.733 $12.478 Number of Accumulation Units outstanding at end of period (in thousands) 5 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.309 $11.219 Accumulation Unit Value at end of period $12.523 $12.309 Number of Accumulation Units outstanding at end of period (in thousands) -- --
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- MORGAN STANLEY -- FLEXIBLE INCOME PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.705 $11.344 Accumulation Unit Value at end of period $11.968 $11.705 Number of Accumulation Units outstanding at end of period (in thousands) 30 19 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.662 $11.311 Accumulation Unit Value at end of period $11.901 $11.662 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.641 $11.294 Accumulation Unit Value at end of period $11.867 $11.641 Number of Accumulation Units outstanding at end of period (in thousands) 1 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.504 $11.170 Accumulation Unit Value at end of period $11.704 $11.504 Number of Accumulation Units outstanding at end of period (in thousands) 8 5 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.504 $11.170 Accumulation Unit Value at end of period $11.704 $11.504 Number of Accumulation Units outstanding at end of period (in thousands) 8 5 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.348 $11.031 Accumulation Unit Value at end of period $11.511 $11.348 Number of Accumulation Units outstanding at end of period (in thousands) 6 1 MORGAN STANLEY -- FOCUS GROWTH PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $7.054 $6.279 Accumulation Unit Value at end of period $8.525 $7.054 Number of Accumulation Units outstanding at end of period (in thousands) 35 16 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $7.029 $6.261 Accumulation Unit Value at end of period $8.477 $7.029 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $7.016 $6.252 Accumulation Unit Value at end of period $8.453 $7.016 Number of Accumulation Units outstanding at end of period (in thousands) 2 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $6.933 $6.183 Accumulation Unit Value at end of period $8.337 $6.933 Number of Accumulation Units outstanding at end of period (in thousands) 5 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.933 $6.183 Accumulation Unit Value at end of period $8.337 $6.933 Number of Accumulation Units outstanding at end of period (in thousands) 5 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $6.839 $6.106 Accumulation Unit Value at end of period $8.199 $6.839 Number of Accumulation Units outstanding at end of period (in thousands) -- -- MORGAN STANLEY -- GLOBAL EQUITY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $10.928 $9.528 Accumulation Unit Value at end of period $12.523 $10.928 Number of Accumulation Units outstanding at end of period (in thousands) 10 4
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.888 $9.500 Accumulation Unit Value at end of period $12.452 $10.888 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $10.868 $9.486 Accumulation Unit Value at end of period $12.417 $10.868 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $10.740 $9.382 Accumulation Unit Value at end of period $12.246 $10.740 Number of Accumulation Units outstanding at end of period (in thousands) 2 -- WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.740 $9.382 Accumulation Unit Value at end of period $12.246 $10.740 Number of Accumulation Units outstanding at end of period (in thousands) 2 -- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $10.595 $9.265 Accumulation Unit Value at end of period $12.044 $10.595 Number of Accumulation Units outstanding at end of period (in thousands) 1 -- MUTUAL DISCOVERY SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $20.136 $18.069 Accumulation Unit Value at end of period $22.220 $20.136 Number of Accumulation Units outstanding at end of period (in thousands) 3,781 2,145 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.988 $17.951 Accumulation Unit Value at end of period $22.013 $19.988 Number of Accumulation Units outstanding at end of period (in thousands) 371 294 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $19.915 $17.892 Accumulation Unit Value at end of period $21.911 $19.915 Number of Accumulation Units outstanding at end of period (in thousands) 1,481 1,299 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $19.770 $17.775 Accumulation Unit Value at end of period $21.707 $19.770 Number of Accumulation Units outstanding at end of period (in thousands) 2,858 2,449 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.770 $17.775 Accumulation Unit Value at end of period $21.707 $19.770 Number of Accumulation Units outstanding at end of period (in thousands) 2,858 2,449 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.553 $17.600 Accumulation Unit Value at end of period $21.405 $19.553 Number of Accumulation Units outstanding at end of period (in thousands) 1,293 1,194 MUTUAL SHARES SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $19.484 $17.556 Accumulation Unit Value at end of period $19.892 $19.484 Number of Accumulation Units outstanding at end of period (in thousands) 8,185 5,008 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $17.320 $15.618 Accumulation Unit Value at end of period $17.647 $17.320 Number of Accumulation Units outstanding at end of period (in thousands) 1,556 1,524 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $17.191 $15.507 Accumulation Unit Value at end of period $17.498 $17.191 Number of Accumulation Units outstanding at end of period (in thousands) 6,057 6,545
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.342 $14.753 Accumulation Unit Value at end of period $16.600 $16.342 Number of Accumulation Units outstanding at end of period (in thousands) 9,098 8,358 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.342 $14.753 Accumulation Unit Value at end of period $16.600 $16.342 Number of Accumulation Units outstanding at end of period (in thousands) 9,098 8,358 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.694 $15.088 Accumulation Unit Value at end of period $16.907 $16.694 Number of Accumulation Units outstanding at end of period (in thousands) 4,197 4,035 TEMPLETON DEVELOPING MARKETS SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $23.737 $20.482 Accumulation Unit Value at end of period $30.230 $23.737 Number of Accumulation Units outstanding at end of period (in thousands) 817 608 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $20.355 $17.577 Accumulation Unit Value at end of period $25.871 $20.355 Number of Accumulation Units outstanding at end of period (in thousands) 192 206 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $20.203 $17.453 Accumulation Unit Value at end of period $25.652 $20.203 Number of Accumulation Units outstanding at end of period (in thousands) 652 720 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $24.099 $20.835 Accumulation Unit Value at end of period $30.539 $24.099 Number of Accumulation Units outstanding at end of period (in thousands) 1,186 1,044 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $24.099 $20.835 Accumulation Unit Value at end of period $30.539 $24.099 Number of Accumulation Units outstanding at end of period (in thousands) 1,186 1,044 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $19.618 $16.980 Accumulation Unit Value at end of period $24.786 $19.618 Number of Accumulation Units outstanding at end of period (in thousands) 640 617 TEMPLETON FOREIGN SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $14.502 $12.957 Accumulation Unit Value at end of period $16.519 $14.502 Number of Accumulation Units outstanding at end of period (in thousands) 4,579 3,897 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $13.759 $12.303 Accumulation Unit Value at end of period $15.642 $13.759 Number of Accumulation Units outstanding at end of period (in thousands) 893 844 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $13.656 $12.215 Accumulation Unit Value at end of period $15.509 $13.656 Number of Accumulation Units outstanding at end of period (in thousands) 2,376 2,536 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.959 $11.600 Accumulation Unit Value at end of period $14.688 $12.959 Number of Accumulation Units outstanding at end of period (in thousands) 5,998 6,308 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.959 $11.600 Accumulation Unit Value at end of period $14.688 $12.959 Number of Accumulation Units outstanding at end of period (in thousands) 5,998 6,308
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $13.261 $11.885 Accumulation Unit Value at end of period $14.985 $13.261 Number of Accumulation Units outstanding at end of period (in thousands) 3,301 3,665 TEMPLETON GROWTH SECURITIES FUND WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.068 $15.045 Accumulation Unit Value at end of period $17.234 $17.068 Number of Accumulation Units outstanding at end of period (in thousands) 6,181 3,876 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.798 $13.936 Accumulation Unit Value at end of period $15.920 $15.798 Number of Accumulation Units outstanding at end of period (in thousands) 1,095 1,059 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $15.680 $13.837 Accumulation Unit Value at end of period $15.785 $15.680 Number of Accumulation Units outstanding at end of period (in thousands) 3,116 3,386 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $15.342 $13.549 Accumulation Unit Value at end of period $15.414 $15.342 Number of Accumulation Units outstanding at end of period (in thousands) 6,247 5,774 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.342 $13.549 Accumulation Unit Value at end of period $15.414 $15.342 Number of Accumulation Units outstanding at end of period (in thousands) 6,247 5,774 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $15.227 $13.463 Accumulation Unit Value at end of period $15.252 $15.227 Number of Accumulation Units outstanding at end of period (in thousands) 2,847 3,021 VAN KAMPEN -- UIF INTERNATIONAL GROWTH EQUITY PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $11.693 $10.265 Accumulation Unit Value at end of period $13.182 $11.693 Number of Accumulation Units outstanding at end of period (in thousands) 3 -- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.681 $10.262 Accumulation Unit Value at end of period $13.142 $11.681 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $11.675 $10.261 Accumulation Unit Value at end of period $13.122 $11.675 Number of Accumulation Units outstanding at end of period (in thousands) 2 2 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $11.663 $10.258 Accumulation Unit Value at end of period $13.083 $11.663 Number of Accumulation Units outstanding at end of period (in thousands) 8 1 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.663 $10.258 Accumulation Unit Value at end of period $13.083 $11.663 Number of Accumulation Units outstanding at end of period (in thousands) 8 1 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $11.646 $10.254 Accumulation Unit Value at end of period $13.024 $11.646 Number of Accumulation Units outstanding at end of period (in thousands) 2 1
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- VAN KAMPEN -- UIF U.S. MID CAP VALUE PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $13.012 $11.205 Accumulation Unit Value at end of period $13.831 $13.012 Number of Accumulation Units outstanding at end of period (in thousands) 50 11 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.964 $11.172 Accumulation Unit Value at end of period $13.753 $12.964 Number of Accumulation Units outstanding at end of period (in thousands) 3 -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $12.940 $11.156 Accumulation Unit Value at end of period $13.714 $12.940 Number of Accumulation Units outstanding at end of period (in thousands) 27 4 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $12.893 $11.123 Accumulation Unit Value at end of period $13.637 $12.893 Number of Accumulation Units outstanding at end of period (in thousands) 35 6 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.893 $11.123 Accumulation Unit Value at end of period $13.637 $12.893 Number of Accumulation Units outstanding at end of period (in thousands) 35 6 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $12.822 $11.075 Accumulation Unit Value at end of period $13.521 $12.822 Number of Accumulation Units outstanding at end of period (in thousands) 2 1 VAN KAMPEN LIT COMSTOCK PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $16.983 $15.247 Accumulation Unit Value at end of period $16.365 $16.983 Number of Accumulation Units outstanding at end of period (in thousands) 47 18 WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.920 $15.203 Accumulation Unit Value at end of period $16.272 $16.920 Number of Accumulation Units outstanding at end of period (in thousands) -- -- WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $16.889 $15.180 Accumulation Unit Value at end of period $16.226 $16.889 Number of Accumulation Units outstanding at end of period (in thousands) 37 14 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.766 $15.081 Accumulation Unit Value at end of period $16.075 $16.766 Number of Accumulation Units outstanding at end of period (in thousands) 31 8 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.766 $15.081 Accumulation Unit Value at end of period $16.075 $16.766 Number of Accumulation Units outstanding at end of period (in thousands) 31 8 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.582 $14.933 Accumulation Unit Value at end of period $15.852 $16.582 Number of Accumulation Units outstanding at end of period (in thousands) 5 2 VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO WITHOUT ANY OPTIONAL BENEFITS Accumulation Unit Value at beginning of period $17.034 $15.313 Accumulation Unit Value at end of period $17.230 $17.034 Number of Accumulation Units outstanding at end of period (in thousands) 142 68
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AS OF DECEMBER 31, SUB-ACCOUNT 2007 2006 --------------------------------------------------------------------- WITH THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.971 $15.268 Accumulation Unit Value at end of period $17.132 $16.971 Number of Accumulation Units outstanding at end of period (in thousands) 9 6 WITH MAV/EPB DEATH BENEFIT Accumulation Unit Value at beginning of period $16.940 $15.246 Accumulation Unit Value at end of period $17.084 $16.940 Number of Accumulation Units outstanding at end of period (in thousands) 33 9 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST PREFERRED Accumulation Unit Value at beginning of period $16.741 $15.078 Accumulation Unit Value at end of period $16.849 $16.741 Number of Accumulation Units outstanding at end of period (in thousands) 152 67 WITH THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.741 $15.078 Accumulation Unit Value at end of period $16.849 $16.741 Number of Accumulation Units outstanding at end of period (in thousands) 152 67 WITH MAV/EPB DEATH BENEFIT AND THE HARTFORD'S PRINCIPAL FIRST (50 BPS) Accumulation Unit Value at beginning of period $16.514 $14.891 Accumulation Unit Value at end of period $16.571 $16.514 Number of Accumulation Units outstanding at end of period (in thousands) 23 7
(a) Inception date November 12, 2007. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE CONTRACT OWNERS OF HARTFORD LIFE INSURANCE COMPANY SEPARATE ACCOUNT SEVEN AND THE BOARD OF DIRECTORS OF HARTFORD LIFE INSURANCE COMPANY ------------------------------------------------------------------------------- We have audited the accompanying statements of assets and liabilities of each of the individual Sub-Accounts disclosed in Note 1 which comprise the Hartford Life Insurance Company Separate Account Seven (the "Account"), as of December 31, 2007, and the related statements of operations and changes in net assets for the respective stated periods then ended. These financial statements are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of investments owned as of December 31, 2007, by correspondence with the mutual fund companies; where replies were not received from the mutual fund companies, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the individual Sub-Accounts constituting Hartford Life Insurance Company Separate Account Seven as of December 31, 2007, the results of their operations and the changes in their net assets for the respective stated periods then ended, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Hartford, Connecticut February 20, 2008 SA-1 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 2007 -------------------------------------------------------------------------------
AIM V.I. AIM V.I. BASIC CAPITAL AIM V.I. VALUE FUND APPRECIATION FUND CORE EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 6,439,843 1,351,979 4,063,357 ============= ============= ============== Cost: Class IA -- -- -- Class IB -- -- -- Other class $63,260,756 $30,969,492 $102,023,026 ============= ============= ============== Market Value: Class IA -- -- -- Class IB -- -- -- Other class $81,979,203 $39,710,011 $118,285,636 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 60,150 6,400 10,212 Other assets -- -- -- ------------- ------------- -------------- Total Assets 82,039,353 39,716,411 118,295,848 ------------- ------------- -------------- LIABILITIES: Due to Hartford Life Insurance Company 60,150 6,400 10,212 Payable for fund shares purchased -- -- -- Other liabilities 4 69 898 ------------- ------------- -------------- Total Liabilities 60,154 6,469 11,110 ------------- ------------- -------------- NET ASSETS: For Variable Annuity Contract Liabilities $81,979,199 $39,709,942 $118,284,738 ============= ============= ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-2 -------------------------------------------------------------------------------
AIM V.I. AIM V.I. AIM V.I. AIM V.I. GOVERNMENT HIGH INTERNATIONAL MID CAP CORE SECURITIES FUND YIELD FUND GROWTH FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB -- -- -- -- Other class 26,179,444 228,162 2,258,684 8,155,501 ============== ============ ============= ============== Cost: Class IA -- -- -- -- Class IB -- -- -- -- Other class $317,449,923 $1,306,916 $60,004,724 $96,340,115 ============== ============ ============= ============== Market Value: Class IA -- -- -- -- Class IB -- -- -- -- Other class $315,462,295 $1,309,653 $75,959,532 $118,825,650 Due from Hartford Life Insurance Company 482,138 1,203 293,908 145,978 Receivable from fund shares sold -- -- -- -- Other assets -- -- -- -- -------------- ------------ ------------- -------------- Total Assets 315,944,433 1,310,856 76,253,440 118,971,628 -------------- ------------ ------------- -------------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- -- Payable for fund shares purchased 482,138 1,203 293,908 145,978 Other liabilities 7 -- 3 12 -------------- ------------ ------------- -------------- Total Liabilities 482,145 1,203 293,911 145,990 -------------- ------------ ------------- -------------- NET ASSETS: For Variable Annuity Contract Liabilities $315,462,288 $1,309,653 $75,959,529 $118,825,638 ============== ============ ============= ============== AIM V.I. AIM V.I. AIM V.I. SMALL CAP LARGE CAP CAPITAL EQUITY FUND GROWTH FUND DEVELOPMENT FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (A) ----------------------------- ---------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 2,129,529 1,539,247 10,035 ============= ============= ========== Cost: Class IA -- -- -- Class IB -- -- -- Other class $30,323,237 $19,356,054 $196,928 ============= ============= ========== Market Value: Class IA -- -- -- Class IB -- -- -- Other class $33,071,587 $24,397,254 $189,153 Due from Hartford Life Insurance Company 283,661 -- 5,261 Receivable from fund shares sold -- 3,387 -- Other assets -- -- -- ------------- ------------- ---------- Total Assets 33,355,248 24,400,641 194,414 ------------- ------------- ---------- LIABILITIES: Due to Hartford Life Insurance Company -- 3,387 -- Payable for fund shares purchased 283,661 -- 5,261 Other liabilities -- -- -- ------------- ------------- ---------- Total Liabilities 283,661 3,387 5,261 ------------- ------------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $33,071,587 $24,397,254 $189,153 ============= ============= ==========
(a) From inception November 12, 2007 to December 31, 2007. SA-3 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GLOBAL GROWTH AND ASSET GLOBAL BOND FUND INCOME FUND ALLOCATION FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 2,854,336 11,447,863 27,285,060 ============= ============== ============== Cost: Class IA -- -- -- Class IB -- -- -- Other class $30,297,719 $127,874,059 $406,480,544 ============= ============== ============== Market Value: Class IA -- -- -- Class IB -- -- -- Other class $30,855,370 $134,512,390 $501,772,241 Due from Hartford Life Insurance Company 289,259 661,163 74,834 Receivable from fund shares sold -- -- -- Other assets -- -- -- ------------- -------------- -------------- Total Assets 31,144,629 135,173,553 501,847,075 ------------- -------------- -------------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 289,259 661,163 74,834 Other liabilities -- -- 1 ------------- -------------- -------------- Total Liabilities 289,259 661,163 74,835 ------------- -------------- -------------- NET ASSETS: For Variable Annuity Contract Liabilities $30,855,370 $134,512,390 $501,772,240 ============= ============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-4 -------------------------------------------------------------------------------
AMERICAN FUNDS AMERICAN BLUE CHIP INCOME AMERICAN FUNDS AMERICAN FUNDS FUNDS AND GROWTH FUND BOND FUND GLOBAL GROWTH FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB -- -- -- -- Other class 20,403,568 33,146,535 6,360,051 19,401,944 ============== ============== ============== ================ Cost: Class IA -- -- -- -- Class IB -- -- -- -- Other class $185,639,087 $364,253,201 $114,953,640 $1,014,965,566 ============== ============== ============== ================ Market Value: Class IA -- -- -- -- Class IB -- -- -- -- Other class $233,620,850 $365,606,276 $159,001,258 $1,294,497,677 Due from Hartford Life Insurance Company 53,586 49,994 24,821 638,740 Receivable from fund shares sold -- -- -- -- Other assets 26 -- -- 3 -------------- -------------- -------------- ---------------- Total Assets 233,674,462 365,656,270 159,026,079 1,295,136,420 -------------- -------------- -------------- ---------------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- -- Payable for fund shares purchased 53,586 49,994 24,821 638,740 Other liabilities -- 1 1 -- -------------- -------------- -------------- ---------------- Total Liabilities 53,586 49,995 24,822 638,740 -------------- -------------- -------------- ---------------- NET ASSETS: For Variable Annuity Contract Liabilities $233,620,876 $365,606,275 $159,001,257 $1,294,497,680 ============== ============== ============== ================ AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GROWTH-INCOME FUND INTERNATIONAL FUND NEW WORLD FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 27,851,638 15,466,866 5,486,324 ================ ============== ============== Cost: Class IA -- -- -- Class IB -- -- -- Other class $974,495,645 $267,424,629 $92,891,008 ================ ============== ============== Market Value: Class IA -- -- -- Class IB -- -- -- Other class $1,177,010,225 $382,340,935 $140,998,528 Due from Hartford Life Insurance Company 695,849 883,528 97,048 Receivable from fund shares sold -- -- -- Other assets -- -- -- ---------------- -------------- -------------- Total Assets 1,177,706,074 383,224,463 141,095,576 ---------------- -------------- -------------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 694,906 883,528 97,048 Other liabilities 1 1 -- ---------------- -------------- -------------- Total Liabilities 694,907 883,529 97,048 ---------------- -------------- -------------- NET ASSETS: For Variable Annuity Contract Liabilities $1,177,011,167 $382,340,934 $140,998,528 ================ ============== ==============
SA-5 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
AMERICAN FUNDS COLUMBIA COLUMBIA GLOBAL SMALL ASSET ALLOCATION SMALL COMPANY CAPITALIZATION FUND FUND VS GROWTH FUND VS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 5,656,918 512,994 1,362,504 ============== ============ ============= Cost: Class IA -- -- -- Class IB -- -- -- Other class $102,557,531 $8,300,550 $18,298,492 ============== ============ ============= Market Value: Class IA -- -- -- Class IB -- -- -- Other class $152,453,939 $7,823,188 $19,756,058 Due from Hartford Life Insurance Company 282,351 -- -- Receivable from fund shares sold -- 15,486 28,927 Other assets -- -- -- -------------- ------------ ------------- Total Assets 152,736,290 7,838,674 19,784,985 -------------- ------------ ------------- LIABILITIES: Due to Hartford Life Insurance Company -- 15,486 28,927 Payable for fund shares purchased 282,351 -- -- Other liabilities -- 53 3,928 -------------- ------------ ------------- Total Liabilities 282,351 15,539 32,855 -------------- ------------ ------------- NET ASSETS: For Variable Annuity Contract Liabilities $152,453,939 $7,823,135 $19,752,130 ============== ============ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-6 -------------------------------------------------------------------------------
COLUMBIA EVERGREEN VA LARGE CAP EVERGREEN VA EVERGREEN VA INTERNATIONAL VALUE FUND VS BALANCED FUND GROWTH FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB -- -- -- -- Other class 1,782,012 47,352 171,707 136,435 ============= ========== ============ ============ Cost: Class IA -- -- -- -- Class IB -- -- -- -- Other class $32,829,526 $717,837 $2,578,477 $2,188,188 ============= ========== ============ ============ Market Value: Class IA -- -- -- -- Class IB -- -- -- -- Other class $33,056,702 $733,475 $2,407,327 $2,297,560 Due from Hartford Life Insurance Company -- -- -- 1,150 Receivable from fund shares sold 116,243 36 1 -- Other assets -- -- -- -- ------------- ---------- ------------ ------------ Total Assets 33,172,945 733,511 2,407,328 2,298,710 ------------- ---------- ------------ ------------ LIABILITIES: Due to Hartford Life Insurance Company 116,243 36 1 -- Payable for fund shares purchased -- -- -- 1,150 Other liabilities 113 -- -- -- ------------- ---------- ------------ ------------ Total Liabilities 116,356 36 1 1,150 ------------- ---------- ------------ ------------ NET ASSETS: For Variable Annuity Contract Liabilities $33,056,589 $733,475 $2,407,327 $2,297,560 ============= ========== ============ ============ EVERGREEN VA EVERGREEN VA EVERGREEN VA SPECIAL FUNDAMENTAL OMEGA FUND VALUES FUND LARGE CAP FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- --------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 12,849 1,373,816 51,051 ========== ============= ========== Cost: Class IA -- -- -- Class IB -- -- -- Other class $223,575 $22,993,804 $963,377 ========== ============= ========== Market Value: Class IA -- -- -- Class IB -- -- -- Other class $254,676 $18,670,161 $986,814 Due from Hartford Life Insurance Company -- 10,645 -- Receivable from fund shares sold 11 -- 105 Other assets -- -- -- ---------- ------------- ---------- Total Assets 254,687 18,680,806 986,919 ---------- ------------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 11 -- 105 Payable for fund shares purchased -- 10,645 -- Other liabilities -- -- -- ---------- ------------- ---------- Total Liabilities 11 10,645 105 ---------- ------------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $254,676 $18,670,161 $986,814 ========== ============= ==========
SA-7 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN FRANKLIN RISING DIVIDENDS INCOME LARGE CAP GROWTH SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 20,910,802 76,306,804 5,034,942 ============== ================ ============= Cost: Class IA -- -- -- Class IB -- -- -- Other class $380,546,937 $1,186,125,842 $73,282,581 ============== ================ ============= Market Value: Class IA -- -- -- Class IB -- -- -- Other class $402,951,147 $1,320,870,766 $86,852,753 Due from Hartford Life Insurance Company 346,707 1,011,580 17,042 Receivable from fund shares sold -- -- -- Other assets 1 -- -- -------------- ---------------- ------------- Total Assets 403,297,855 1,321,882,346 86,869,795 -------------- ---------------- ------------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 346,707 1,011,580 17,042 Other liabilities -- 4 -- -------------- ---------------- ------------- Total Liabilities 346,707 1,011,584 17,042 -------------- ---------------- ------------- NET ASSETS: For Variable Annuity Contract Liabilities $402,951,148 $1,320,870,762 $86,852,753 ============== ================ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-8 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN SMALL-MID CAP FRANKLIN FRANKLIN GLOBAL REAL ESTATE GROWTH SMALL CAP VALUE STRATEGIC INCOME SECURITIES FUND SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT (B) SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB -- -- -- -- Other class 184,925 5,622,752 8,748 17,662,278 ============ ============== ========== ============== Cost: Class IA -- -- -- -- Class IB -- -- -- -- Other class $3,209,995 $103,539,044 $151,818 $213,713,320 ============ ============== ========== ============== Market Value: Class IA -- -- -- -- Class IB -- -- -- -- Other class $4,617,593 $128,817,256 $149,590 $225,723,909 Due from Hartford Life Insurance Company -- 222,276 -- -- Receivable from fund shares sold 709 -- 21 6,713 Other assets -- -- -- -- ------------ -------------- ---------- -------------- Total Assets 4,618,302 129,039,532 149,611 225,730,622 ------------ -------------- ---------- -------------- LIABILITIES: Due to Hartford Life Insurance Company 709 -- 21 6,712 Payable for fund shares purchased -- 222,276 -- -- Other liabilities -- 1 -- 2 ------------ -------------- ---------- -------------- Total Liabilities 709 222,277 21 6,714 ------------ -------------- ---------- -------------- NET ASSETS: For Variable Annuity Contract Liabilities $4,617,593 $128,817,255 $149,590 $225,723,908 ============ ============== ========== ============== TEMPLETON TEMPLETON MUTUAL SHARES DEVELOPING MARKETS FOREIGN SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- --------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 40,826,729 5,974,960 14,507,687 ============== ============= ============== Cost: Class IA -- -- -- Class IB -- -- -- Other class $683,586,839 $62,864,087 $207,077,466 ============== ============= ============== Market Value: Class IA -- -- -- Class IB -- -- -- Other class $824,291,651 $96,615,100 $293,780,666 Due from Hartford Life Insurance Company 598,133 141,335 267,917 Receivable from fund shares sold -- -- -- Other assets 1 -- -- -------------- ------------- -------------- Total Assets 824,889,785 96,756,435 294,048,583 -------------- ------------- -------------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 598,133 141,335 267,917 Other liabilities -- 1 4 -------------- ------------- -------------- Total Liabilities 598,133 141,336 267,921 -------------- ------------- -------------- NET ASSETS: For Variable Annuity Contract Liabilities $824,291,652 $96,615,099 $293,780,662 ============== ============= ==============
(a) From inception November 12, 2007 to December 31, 2007. (b) Formerly Franklin Real Estate Fund. Change effective May 1, 2007. SA-9 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
TEMPLETON TEMPLETON GLOBAL ASSET GROWTH MUTUAL DISCOVERY ALLOCATION FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 242,004 39,919,989 8,150,680 ============ ============== ============== Cost: Class IA -- -- -- Class IB -- -- -- Other class $4,282,058 $525,167,728 $154,995,019 ============ ============== ============== Market Value: Class IA -- -- -- Class IB -- -- -- Other class $3,513,906 $616,364,623 $193,089,612 Due from Hartford Life Insurance Company -- 333,509 352,383 Receivable from fund shares sold 453 -- -- Other assets -- -- 1 ------------ -------------- -------------- Total Assets 3,514,359 616,698,132 193,441,996 ------------ -------------- -------------- LIABILITIES: Due to Hartford Life Insurance Company 453 -- -- Payable for fund shares purchased -- 333,509 352,383 Other liabilities -- 3 -- ------------ -------------- -------------- Total Liabilities 453 333,512 352,383 ------------ -------------- -------------- NET ASSETS: For Variable Annuity Contract Liabilities $3,513,906 $616,364,620 $193,089,613 ============ ============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-10 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN HARTFORD HARTFORD FLEX CAP GROWTH LARGE CAP VALUE ADVISERS TOTAL RETURN BOND SECURITIES FUND SECURITIES FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB -- -- 1,481,463 7,347,852 Other class 1,812,289 772,623 -- -- ============= ============ ============= ============= Cost: Class IA -- -- -- -- Class IB -- -- $33,712,320 $86,196,936 Other class $20,026,800 $8,583,789 -- -- ============= ============ ============= ============= Market Value: Class IA -- -- -- -- Class IB -- -- $31,379,395 $81,507,124 Other class $23,052,317 $8,985,602 -- -- Due from Hartford Life Insurance Company -- 437 -- -- Receivable from fund shares sold 17 -- 145,395 97,255 Other assets -- -- -- -- ------------- ------------ ------------- ------------- Total Assets 23,052,334 8,986,039 31,524,790 81,604,379 ------------- ------------ ------------- ------------- LIABILITIES: Due to Hartford Life Insurance Company 17 -- 145,395 97,255 Payable for fund shares purchased -- 437 -- -- Other liabilities -- -- -- 6 ------------- ------------ ------------- ------------- Total Liabilities 17 437 145,395 97,261 ------------- ------------ ------------- ------------- NET ASSETS: For Variable Annuity Contract Liabilities $23,052,317 $8,985,602 $31,379,395 $81,507,118 ============= ============ ============= ============= HARTFORD HARTFORD HARTFORD CAPITAL APPRECIATION DIVIDEND AND GROWTH FUNDAMENTAL GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (C) -------------------------- ------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB 1,449,366 2,493,659 779 Other class -- -- -- ============= ============= ======= Cost: Class IA -- -- -- Class IB $64,976,359 $45,387,068 $7,512 Other class -- -- -- ============= ============= ======= Market Value: Class IA -- -- -- Class IB $75,384,257 $55,551,762 $8,602 Other class -- -- -- Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 360,754 84,698 1 Other assets -- -- -- ------------- ------------- ------- Total Assets 75,745,011 55,636,460 8,603 ------------- ------------- ------- LIABILITIES: Due to Hartford Life Insurance Company 360,754 84,698 1 Payable for fund shares purchased -- -- -- Other liabilities 11 1 -- ------------- ------------- ------- Total Liabilities 360,765 84,699 1 ------------- ------------- ------- NET ASSETS: For Variable Annuity Contract Liabilities $75,384,246 $55,551,761 $8,602 ============= ============= =======
(c) Formerly Hartford Focus HLS Fund. Change effective July 27, 2007. SA-11 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD GLOBAL FINANCIAL GLOBAL ADVISERS GLOBAL COMMUNICATIONS SERVICES HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB 21,109 799 6,071 Other class -- -- -- ========== ======= ========= Cost: Class IA -- -- -- Class IB $286,916 $5,834 $59,859 Other class -- -- -- ========== ======= ========= Market Value: Class IA -- -- -- Class IB $286,149 $7,740 $58,464 Other class -- -- -- Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 34 1 7 Other assets -- -- -- ---------- ------- --------- Total Assets 286,183 7,741 58,471 ---------- ------- --------- LIABILITIES: Due to Hartford Life Insurance Company 34 1 7 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ---------- ------- --------- Total Liabilities 34 1 7 ---------- ------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $286,149 $7,740 $58,464 ========== ======= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-12 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD GLOBAL HEALTH GLOBAL GROWTH GLOBAL TECHNOLOGY DISCIPLINED EQUITY HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT (D) SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB 47,650 91,493 59,346 56,117 Other class -- -- -- -- ========== ============ ========== ========== Cost: Class IA -- -- -- -- Class IB $644,253 $1,826,577 $594,975 $778,107 Other class -- -- -- -- ========== ============ ========== ========== Market Value: Class IA -- -- -- -- Class IB $719,870 $2,037,101 $402,591 $839,952 Other class -- -- -- -- Due from Hartford Life Insurance Company -- -- -- -- Receivable from fund shares sold 84 169 39 105 Other assets -- -- -- -- ---------- ------------ ---------- ---------- Total Assets 719,954 2,037,270 402,630 840,057 ---------- ------------ ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 84 169 39 105 Payable for fund shares purchased -- -- -- -- Other liabilities -- -- -- -- ---------- ------------ ---------- ---------- Total Liabilities 84 169 39 105 ---------- ------------ ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $719,870 $2,037,101 $402,591 $839,952 ========== ============ ========== ========== HARTFORD HARTFORD HARTFORD GROWTH GROWTH OPPORTUNITIES HIGH YIELD HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB 6,146 6,774 47,683 Other class -- -- -- ========= ========== ========== Cost: Class IA -- -- -- Class IB $72,703 $206,362 $430,707 Other class -- -- -- ========= ========== ========== Market Value: Class IA -- -- -- Class IB $81,031 $219,476 $418,896 Other class -- -- -- Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 9 27 50 Other assets -- -- -- --------- ---------- ---------- Total Assets 81,040 219,503 418,946 --------- ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 9 27 50 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- --------- ---------- ---------- Total Liabilities 9 27 50 --------- ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $81,031 $219,476 $418,896 ========= ========== ==========
(d) Formerly Hartford Global Leaders HLS Fund. Change effective July 27, 2007. SA-13 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD INTERNATIONAL INDEX INTERNATIONAL GROWTH SMALL COMPANY HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT (E) SUB-ACCOUNT ------------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB 30,084 28,371 14,400 Other class -- -- -- ============ ========== ========== Cost: Class IA -- -- -- Class IB $1,205,072 $346,539 $215,166 Other class -- -- -- ============ ========== ========== Market Value: Class IA -- -- -- Class IB $944,583 $407,542 $215,034 Other class -- -- -- Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 111 49 25 Other assets -- -- -- ------------ ---------- ---------- Total Assets 944,694 407,591 215,059 ------------ ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 111 49 25 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ------------ ---------- ---------- Total Liabilities 111 49 25 ------------ ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $944,583 $407,542 $215,034 ============ ========== ==========
(e) Formerly Hartford International Capital Appreciation HLS Fund. Change effective July 27, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-14 -------------------------------------------------------------------------------
HARTFORD INTERNATIONAL HARTFORD HARTFORD HARTFORD OPPORTUNITIES MIDCAP MIDCAP VALUE MONEY MARKET HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- 247,350,932 Class IB 678,873 138,452 31,697 24,115,298 Other class -- -- -- -- ============= ============ ========== ============== Cost: Class IA -- -- -- $247,350,932 Class IB $7,930,064 $3,264,951 $303,216 24,115,298 Other class -- -- -- -- ============= ============ ========== ============== Market Value: Class IA -- -- -- $247,350,932 Class IB $10,712,256 $3,610,718 $389,766 24,115,298 Other class -- -- -- 1 Due from Hartford Life Insurance Company -- -- -- -- Receivable from fund shares sold 38,454 391 47 2,278,540 Other assets -- -- -- 226 ------------- ------------ ---------- -------------- Total Assets 10,750,710 3,611,109 389,813 273,744,997 ------------- ------------ ---------- -------------- LIABILITIES: Due to Hartford Life Insurance Company 38,454 391 47 2,278,540 Payable for fund shares purchased -- -- -- -- Other liabilities -- -- -- -- ------------- ------------ ---------- -------------- Total Liabilities 38,454 391 47 2,278,540 ------------- ------------ ---------- -------------- NET ASSETS: For Variable Annuity Contract Liabilities $10,712,256 $3,610,718 $389,766 $271,466,457 ============= ============ ========== ============== HARTFORD HARTFORD HARTFORD MORTGAGE SECURITIES SMALL COMPANY SMALLCAP GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB 55,959 471,226 8,123 Other class -- -- -- ========== ============ ========== Cost: Class IA -- -- -- Class IB $625,200 $6,942,437 $152,930 Other class -- -- -- ========== ============ ========== Market Value: Class IA -- -- -- Class IB $587,578 $8,578,218 $151,586 Other class -- -- -- Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 77 4,950 19 Other assets -- 1 -- ---------- ------------ ---------- Total Assets 587,655 8,583,169 151,605 ---------- ------------ ---------- LIABILITIES: Due to Hartford Life Insurance Company 77 4,950 19 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ---------- ------------ ---------- Total Liabilities 77 4,950 19 ---------- ------------ ---------- NET ASSETS: For Variable Annuity Contract Liabilities $587,578 $8,578,219 $151,586 ========== ============ ==========
SA-15 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
HARTFORD HARTFORD U.S. GOVERNMENT HARTFORD STOCK SECURITIES VALUE HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB 556,069 55,724 12,863 Other class -- -- -- ============= ========== ========== Cost: Class IA -- -- -- Class IB $26,328,329 $598,869 $136,472 Other class -- -- -- ============= ========== ========== Market Value: Class IA -- -- -- Class IB $26,134,601 $618,308 $164,744 Other class -- -- -- Due from Hartford Life Insurance Company -- -- 4 Receivable from fund shares sold 29,892 73 -- Other assets 1 -- -- ------------- ---------- ---------- Total Assets 26,164,494 618,381 164,748 ------------- ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 29,892 73 -- Payable for fund shares purchased -- -- 4 Other liabilities -- -- -- ------------- ---------- ---------- Total Liabilities 29,892 73 4 ------------- ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $26,134,602 $618,308 $164,744 ============= ========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-16 -------------------------------------------------------------------------------
HARTFORD HARTFORD HUNTINGTON VA HUNTINGTON VA VALUE OPPORTUNITIES EQUITY INCOME INCOME DIVIDEND HLS FUND HLS FUND EQUITY FUND CAPTURE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB 15,979 4,011 -- -- Other class -- -- 201,405 712,869 ========== ========= ============ ============ Cost: Class IA -- -- -- -- Class IB $283,350 $55,130 -- -- Other class -- -- $2,322,264 $9,029,163 ========== ========= ============ ============ Market Value: Class IA -- -- -- -- Class IB $245,203 $57,356 -- -- Other class -- -- $2,439,014 $8,390,470 Due from Hartford Life Insurance Company -- -- 593 2,446 Receivable from fund shares sold 30 8 -- -- Other assets -- -- -- -- ---------- --------- ------------ ------------ Total Assets 245,233 57,364 2,439,607 8,392,916 ---------- --------- ------------ ------------ LIABILITIES: Due to Hartford Life Insurance Company 30 8 -- -- Payable for fund shares purchased -- -- 593 2,446 Other liabilities -- -- -- -- ---------- --------- ------------ ------------ Total Liabilities 30 8 593 2,446 ---------- --------- ------------ ------------ NET ASSETS: For Variable Annuity Contract Liabilities $245,203 $57,356 $2,439,014 $8,390,470 ========== ========= ============ ============ HUNTINGTON VA HUNTINGTON VA MID CORP HUNTINGTON VA GROWTH FUND AMERICA FUND NEW ECONOMY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ---------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 192,164 285,591 262,651 ============ ============ ============ Cost: Class IA -- -- -- Class IB -- -- -- Other class $1,795,776 $4,615,661 $4,358,045 ============ ============ ============ Market Value: Class IA -- -- -- Class IB -- -- -- Other class $2,086,896 $5,314,843 $5,108,552 Due from Hartford Life Insurance Company 248 3,211 -- Receivable from fund shares sold -- -- 179 Other assets -- -- -- ------------ ------------ ------------ Total Assets 2,087,144 5,318,054 5,108,731 ------------ ------------ ------------ LIABILITIES: Due to Hartford Life Insurance Company -- -- 179 Payable for fund shares purchased 248 3,211 -- Other liabilities -- -- -- ------------ ------------ ------------ Total Liabilities 248 3,211 179 ------------ ------------ ------------ NET ASSETS: For Variable Annuity Contract Liabilities $2,086,896 $5,314,843 $5,108,552 ============ ============ ============
SA-17 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
HUNTINGTON VA HUNTINGTON VA ROTATING INTERNATIONAL HUNTINGTON VA MARKETS FUND EQUITY FUND MACRO 100 FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 144,722 234,988 133,279 ============ ============ ============ Cost: Class IA -- -- -- Class IB -- -- -- Other class $1,844,507 $3,786,249 $1,549,329 ============ ============ ============ Market Value: Class IA -- -- -- Class IB -- -- -- Other class $2,178,065 $4,199,239 $1,351,444 Due from Hartford Life Insurance Company 786 11,668 -- Receivable from fund shares sold -- -- 549 Other assets -- -- -- ------------ ------------ ------------ Total Assets 2,178,851 4,210,907 1,351,993 ------------ ------------ ------------ LIABILITIES: Due to Hartford Life Insurance Company -- -- 549 Payable for fund shares purchased 786 11,668 -- Other liabilities -- -- -- ------------ ------------ ------------ Total Liabilities 786 11,668 549 ------------ ------------ ------------ NET ASSETS: For Variable Annuity Contract Liabilities $2,178,065 $4,199,239 $1,351,444 ============ ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-18 -------------------------------------------------------------------------------
HUNTINGTON VA MFS MFS MORTGAGE HUNTINGTON VA CORE EQUITY EMERGING SECURITIES FUND SITUS SMALL CAP FUND SERIES GROWTH SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (F) SUB-ACCOUNT --------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB -- -- -- -- Other class 158,033 379,110 728,073 913,077 ============ ============ ============= ============= Cost: Class IA -- -- -- -- Class IB -- -- -- -- Other class $1,747,321 $5,547,202 $12,024,914 $20,972,907 ============ ============ ============= ============= Market Value: Class IA -- -- -- -- Class IB -- -- -- -- Other class $1,788,934 $5,743,517 $12,508,296 $22,836,050 Due from Hartford Life Insurance Company 612 6,107 -- 25,349 Receivable from fund shares sold -- -- 6,366 -- Other assets -- -- -- -- ------------ ------------ ------------- ------------- Total Assets 1,789,546 5,749,624 12,514,662 22,861,399 ------------ ------------ ------------- ------------- LIABILITIES: Due to Hartford Life Insurance Company -- -- 6,366 -- Payable for fund shares purchased 612 6,107 -- 25,349 Other liabilities -- -- -- -- ------------ ------------ ------------- ------------- Total Liabilities 612 6,107 6,366 25,349 ------------ ------------ ------------- ------------- NET ASSETS: For Variable Annuity Contract Liabilities $1,788,934 $5,743,517 $12,508,296 $22,836,050 ============ ============ ============= ============= MFS MFS MFS GLOBAL EQUITY HIGH INCOME INVESTORS GROWTH SERIES SERIES STOCK SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 692,260 8,495,758 2,047,484 ============= ============= ============= Cost: Class IA -- -- -- Class IB -- -- -- Other class $8,037,310 $81,036,072 $20,659,902 ============= ============= ============= Market Value: Class IA -- -- -- Class IB -- -- -- Other class $10,709,258 $80,879,615 $24,201,264 Due from Hartford Life Insurance Company 3,317 53,390 11,960 Receivable from fund shares sold -- -- -- Other assets -- -- -- ------------- ------------- ------------- Total Assets 10,712,575 80,933,005 24,213,224 ------------- ------------- ------------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 3,317 53,390 11,960 Other liabilities -- 1 -- ------------- ------------- ------------- Total Liabilities 3,317 53,391 11,960 ------------- ------------- ------------- NET ASSETS: For Variable Annuity Contract Liabilities $10,709,258 $80,879,614 $24,201,264 ============= ============= =============
(f) Formerly MFS Capital Opportunities Series. Change effective May 1, 2007. SA-19 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
MFS MFS MFS INVESTORS MID CAP NEW DISCOVERY TRUST SERIES GROWTH SERIES SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 7,677,570 5,235,260 6,316,750 ============== ============= ============== Cost: Class IA -- -- -- Class IB -- -- -- Other class $141,594,381 $33,067,504 $94,518,714 ============== ============= ============== Market Value: Class IA -- -- -- Class IB -- -- -- Other class $180,576,440 $40,102,086 $105,047,553 Due from Hartford Life Insurance Company 121,128 -- -- Receivable from fund shares sold -- 49,666 9,913 Other assets -- 1 -- -------------- ------------- -------------- Total Assets 180,697,568 40,151,753 105,057,466 -------------- ------------- -------------- LIABILITIES: Due to Hartford Life Insurance Company -- 49,666 9,912 Payable for fund shares purchased 121,128 -- -- Other liabilities 3 -- -- -------------- ------------- -------------- Total Liabilities 121,131 49,666 9,912 -------------- ------------- -------------- NET ASSETS: For Variable Annuity Contract Liabilities $180,576,437 $40,102,087 $105,047,554 ============== ============= ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-20 -------------------------------------------------------------------------------
MFS MFS MFS RESEARCH TOTAL RETURN MFS RESEARCH BOND INTERNATIONAL SERIES VALUE SERIES SERIES SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB -- -- -- -- Other class 25,128,205 5,036,297 2,476,234 1,256,644 ============== ============= ============= ============= Cost: Class IA -- -- -- -- Class IB -- -- -- -- Other class $502,394,782 $66,623,553 $28,206,348 $18,559,087 ============== ============= ============= ============= Market Value: Class IA -- -- -- -- Class IB -- -- -- -- Other class $544,779,485 $76,803,523 $28,724,315 $20,257,100 Due from Hartford Life Insurance Company 272,343 95,641 208,391 107,205 Receivable from fund shares sold -- -- -- -- Other assets -- -- -- -- -------------- ------------- ------------- ------------- Total Assets 545,051,828 76,899,164 28,932,706 20,364,305 -------------- ------------- ------------- ------------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- -- Payable for fund shares purchased 272,343 95,641 208,391 107,205 Other liabilities 4 -- -- -- -------------- ------------- ------------- ------------- Total Liabilities 272,347 95,641 208,391 107,205 -------------- ------------- ------------- ------------- NET ASSETS: For Variable Annuity Contract Liabilities $544,779,481 $76,803,523 $28,724,315 $20,257,100 ============== ============= ============= ============= BLACKROCK BLACKROCK MFS GLOBAL GROWTH LARGE CAP GROWTH RESEARCH SERIES V.I. FUND V.I. FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- -------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 184,955 18,113 68,053 ============ ========== ========== Cost: Class IA -- -- -- Class IB -- -- -- Other class $3,385,008 $130,638 $516,378 ============ ========== ========== Market Value: Class IA -- -- -- Class IB -- -- -- Other class $3,750,884 $326,404 $864,958 Due from Hartford Life Insurance Company -- -- 25,783 Receivable from fund shares sold 613 55 -- Other assets -- -- -- ------------ ---------- ---------- Total Assets 3,751,497 326,459 890,741 ------------ ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 613 55 -- Payable for fund shares purchased -- -- 25,783 Other liabilities -- -- -- ------------ ---------- ---------- Total Liabilities 613 55 25,783 ------------ ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $3,750,884 $326,404 $864,958 ============ ========== ==========
SA-21 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
INTERNATIONAL GROWTH U.S. CAPITAL EQUITY FUND MID CAP VALUE OPPORTUNITIES SUB-ACCOUNT (G) SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 5,225 2,180 13,062 ========= ========= ========== Cost: Class IA -- -- -- Class IB -- -- -- Other class $63,701 $44,323 $177,362 ========= ========= ========== Market Value: Class IA -- -- -- Class IB -- -- -- Other class $63,279 $41,501 $193,192 Due from Hartford Life Insurance Company -- 90 3,742 Receivable from fund shares sold 3 -- -- Other assets -- -- -- --------- --------- ---------- Total Assets 63,282 41,591 196,934 --------- --------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 3 -- -- Payable for fund shares purchased -- 90 3,742 Other liabilities -- -- -- --------- --------- ---------- Total Liabilities 3 90 3,742 --------- --------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $63,279 $41,501 $193,192 ========= ========= ==========
(g) Funded as of February 8, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-22 -------------------------------------------------------------------------------
DEVELOPING DIVIDEND GROWTH FLEXIBLE INCOME GROWTH GLOBAL EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (G) SUB-ACCOUNT (G) ----------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB -- -- -- -- Other class 380 13,324 418 449 ========= ========= ======= ======= Cost: Class IA -- -- -- -- Class IB -- -- -- -- Other class $9,652 $95,807 $7,708 $8,371 ========= ========= ======= ======= Market Value: Class IA -- -- -- -- Class IB -- -- -- -- Other class $12,027 $94,600 $7,783 $8,341 Due from Hartford Life Insurance Company -- -- -- -- Receivable from fund shares sold 1 13 1 1 Other assets -- -- -- -- --------- --------- ------- ------- Total Assets 12,028 94,613 7,784 8,342 --------- --------- ------- ------- LIABILITIES: Due to Hartford Life Insurance Company 1 13 1 1 Payable for fund shares purchased -- -- -- -- Other liabilities -- -- -- -- --------- --------- ------- ------- Total Liabilities 1 13 1 1 --------- --------- ------- ------- NET ASSETS: For Variable Annuity Contract Liabilities $12,027 $94,600 $7,783 $8,341 ========= ========= ======= ======= COLUMBIA COLUMBIA COLUMBIA MARSICO INTERNATIONAL HIGH YIELD MARSICO FOCUSED OPPORTUNITIES FUND VS FUND VS EQUITIES FUND VS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 1,507,688 2,135,411 1,237,662 ============= ============= ============= Cost: Class IA -- -- -- Class IB -- -- -- Other class $18,542,014 $20,560,284 $16,313,681 ============= ============= ============= Market Value: Class IA -- -- -- Class IB -- -- -- Other class $38,038,971 $23,788,475 $28,305,340 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 101,952 13,853 115,279 Other assets -- -- -- ------------- ------------- ------------- Total Assets 38,140,923 23,802,328 28,420,619 ------------- ------------- ------------- LIABILITIES: Due to Hartford Life Insurance Company 101,952 13,853 115,279 Payable for fund shares purchased -- -- -- Other liabilities 1 2 -- ------------- ------------- ------------- Total Liabilities 101,953 13,855 115,279 ------------- ------------- ------------- NET ASSETS: For Variable Annuity Contract Liabilities $38,038,970 $23,788,473 $28,305,340 ============= ============= =============
(g) Funded as of February 8, 2007. SA-23 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
COLUMBIA COLUMBIA MARSICO COLUMBIA MARSICO 21ST CENTURY MARSICO MIDCAP GROWTH FUND VS FUND VS GROWTH FUND VS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 1,118,743 631,144 3,710,471 ============= ============ ============= Cost: Class IA -- -- -- Class IB -- -- -- Other class $15,292,389 $5,400,663 $24,980,611 ============= ============ ============= Market Value: Class IA -- -- -- Class IB -- -- -- Other class $24,925,598 $9,239,952 $32,243,993 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 31,672 2,266 43,374 Other assets 1 -- 1 ------------- ------------ ------------- Total Assets 24,957,271 9,242,218 32,287,368 ------------- ------------ ------------- LIABILITIES: Due to Hartford Life Insurance Company 31,672 2,266 43,374 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ------------- ------------ ------------- Total Liabilities 31,672 2,266 43,374 ------------- ------------ ------------- NET ASSETS: For Variable Annuity Contract Liabilities $24,925,599 $9,239,952 $32,243,994 ============= ============ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-24 -------------------------------------------------------------------------------
JPMORGAN JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST BALANCED CORE BOND DIVERSIFIED EQUITY INTREPID MID CAP PORTFOLIO - 1 PORTFOLIO - 1 PORTFOLIO - 1 PORTFOLIO - 1 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB -- -- -- -- Other class 105,872 4,963,421 640,458 593,318 ============ ============= ============= ============= Cost: Class IA -- -- -- -- Class IB -- -- -- -- Other class $1,567,752 $55,275,633 $9,860,500 $11,026,867 ============ ============= ============= ============= Market Value: Class IA -- -- -- -- Class IB -- -- -- -- Other class $1,746,889 $56,632,634 $11,746,003 $10,572,932 Due from Hartford Life Insurance Company -- 68,789 1,942 19,568 Receivable from fund shares sold 80 -- -- -- Other assets -- -- -- -- ------------ ------------- ------------- ------------- Total Assets 1,746,969 56,701,423 11,747,945 10,592,500 ------------ ------------- ------------- ------------- LIABILITIES: Due to Hartford Life Insurance Company 80 -- -- -- Payable for fund shares purchased -- 68,789 1,942 19,568 Other liabilities -- -- -- -- ------------ ------------- ------------- ------------- Total Liabilities 80 68,789 1,942 19,568 ------------ ------------- ------------- ------------- NET ASSETS: For Variable Annuity Contract Liabilities $1,746,889 $56,632,634 $11,746,003 $10,572,932 ============ ============= ============= ============= JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST EQUITY INDEX GOVERNMENT BOND INTREPID GROWTH PORTFOLIO - 1 PORTFOLIO - 1 PORTFOLIO - 1 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 3,323,035 1,970,245 113,155 ============= ============= ============ Cost: Class IA -- -- -- Class IB -- -- -- Other class $36,706,943 $22,028,868 $1,769,039 ============= ============= ============ Market Value: Class IA -- -- -- Class IB -- -- -- Other class $42,767,459 $22,460,794 $1,852,340 Due from Hartford Life Insurance Company 38,388 28,317 13,463 Receivable from fund shares sold -- -- -- Other assets -- -- -- ------------- ------------- ------------ Total Assets 42,805,847 22,489,111 1,865,803 ------------- ------------- ------------ LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 38,388 28,317 13,463 Other liabilities -- -- -- ------------- ------------- ------------ Total Liabilities 38,388 28,317 13,463 ------------- ------------- ------------ NET ASSETS: For Variable Annuity Contract Liabilities $42,767,459 $22,460,794 $1,852,340 ============= ============= ============
SA-25 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST DIVERSIFIED MID CAP DIVERSIFIED MID CAP JENNISON 20/20 GROWTH PORTFOLIO - 1 VALUE PORTFOLIO - 1 FOCUS PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 721,561 1,184,756 23,934 ============= ============= ========== Cost: Class IA -- -- -- Class IB -- -- -- Other class $13,499,724 $14,978,796 $308,621 ============= ============= ========== Market Value: Class IA -- -- -- Class IB -- -- -- Other class $14,929,094 $10,686,502 $377,680 Due from Hartford Life Insurance Company -- -- -- Receivable from fund shares sold 2,306 1,640 18 Other assets -- -- -- ------------- ------------- ---------- Total Assets 14,931,400 10,688,142 377,698 ------------- ------------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 2,306 1,640 18 Payable for fund shares purchased -- -- -- Other liabilities -- -- -- ------------- ------------- ---------- Total Liabilities 2,306 1,640 18 ------------- ------------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $14,929,094 $10,686,502 $377,680 ============= ============= ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-26 -------------------------------------------------------------------------------
LEGG MASON PRUDENTIAL PARTNERS VARIABLE JENNISON PRUDENTIAL SERIES INTERNATIONAL CAPITAL AND INCOME PORTFOLIO VALUE PORTFOLIO GROWTH PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (H) SUB-ACCOUNT (I)(J)(K) -------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB -- -- -- -- Other class 27,793 10,758 1,068 28,189 ========== ========== ======= ========== Cost: Class IA -- -- -- -- Class IB -- -- -- -- Other class $679,355 $211,433 $6,481 $407,173 ========== ========== ======= ========== Market Value: Class IA -- -- -- -- Class IB -- -- -- -- Other class $643,977 $252,927 $8,929 $349,828 Due from Hartford Life Insurance Company -- -- -- 69 Receivable from fund shares sold 37 12 -- -- Other assets -- -- -- -- ---------- ---------- ------- ---------- Total Assets 644,014 252,939 8,929 349,897 ---------- ---------- ------- ---------- LIABILITIES: Due to Hartford Life Insurance Company 37 12 -- -- Payable for fund shares purchased -- -- -- 69 Other liabilities -- -- -- -- ---------- ---------- ------- ---------- Total Liabilities 37 12 -- 69 ---------- ---------- ------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $643,977 $252,927 $8,929 $349,828 ========== ========== ======= ========== LEGG MASON LEGG MASON PARTNERS VARIABLE LEGG MASON PARTNERS VARIABLE GLOBAL HIGH PARTNERS VARIABLE FUNDAMENTAL VALUE YIELD BOND INVESTORS PORTFOLIO PORTFOLIO PORTFOLIO SUB-ACCOUNT (K)(L) SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 108,912 15,311 53,880 ============ ========== ========== Cost: Class IA -- -- -- Class IB -- -- -- Other class $2,609,472 $136,604 $723,764 ============ ========== ========== Market Value: Class IA -- -- -- Class IB -- -- -- Other class $2,362,309 $138,565 $890,093 Due from Hartford Life Insurance Company 110 76 223 Receivable from fund shares sold -- -- -- Other assets 2 -- 1 ------------ ---------- ---------- Total Assets 2,362,421 138,641 890,317 ------------ ---------- ---------- LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased 113 76 224 Other liabilities -- -- -- ------------ ---------- ---------- Total Liabilities 113 76 224 ------------ ---------- ---------- NET ASSETS: For Variable Annuity Contract Liabilities $2,362,308 $138,565 $890,093 ============ ========== ==========
(h) Formerly SP William Blair International Growth Portfolio. Change effective January 31, 2007. (i) Effective April 27, 2007, Legg Mason Partners Variable Total Return Portfolio merged with Legg Mason Partners Variable Multiple Discipline Portfolio -- Balanced All Cap Growth and Value. (j) Formerly Legg Mason Partners Variable Multiple Discipline Portfolio -- Balanced All Cap Growth and Value. Change effective April 27, 2007. (k) From inception May 1, 2007 to December 31, 2007. (l) Effective April 28, 2007, Legg Mason Partners Variable All Cap Portfolio merged with Legg Mason Partners Variable Fundamental Value Portfolio. SA-27 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE VT ASSET GROWTH AND INCOME COMSTOCK ALLOCATION FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 18,372 37,147 942 ========== ========== ========= Cost: Class IA -- -- -- Class IB -- -- -- Other class $399,463 $534,674 $11,418 ========== ========== ========= Market Value: Class IA -- -- -- Class IB -- -- -- Other class $391,502 $512,627 $13,784 Due from Hartford Life Insurance Company 6,268 -- -- Receivable from fund shares sold -- 28 1 Other assets -- -- -- ---------- ---------- --------- Total Assets 397,770 512,655 13,785 ---------- ---------- --------- LIABILITIES: Due to Hartford Life Insurance Company -- 28 1 Payable for fund shares purchased 6,268 -- -- Other liabilities -- -- -- ---------- ---------- --------- Total Liabilities 6,268 28 1 ---------- ---------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $391,502 $512,627 $13,784 ========== ========== =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-28 -------------------------------------------------------------------------------
WELLS FARGO WELLS FARGO ADVANTAGE VT WELLS FARGO WELLS FARGO ADVANTAGE VT TOTAL RETURN ADVANTAGE VT EQUITY ADVANTAGE VT C&B INTERNATIONAL BOND FUND INCOME FUND LARGE CAP VALUE FUND CORE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (M) SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------- ASSETS: Investments: Number of Shares: Class IA -- -- -- -- Class IB -- -- -- -- Other class 862 1,667 570 1,062 ======= ========= ======= ========= Cost: Class IA -- -- -- -- Class IB -- -- -- -- Other class $8,588 $27,083 $6,266 $8,881 ======= ========= ======= ========= Market Value: Class IA -- -- -- -- Class IB -- -- -- -- Other class $8,573 $31,239 $6,260 $11,003 Due from Hartford Life Insurance Company -- -- -- -- Receivable from fund shares sold -- 1 -- 1 Other assets -- -- -- -- ------- --------- ------- --------- Total Assets 8,573 31,240 6,260 11,004 ------- --------- ------- --------- LIABILITIES: Due to Hartford Life Insurance Company -- 1 -- 1 Payable for fund shares purchased -- -- -- -- Other liabilities -- -- -- -- ------- --------- ------- --------- Total Liabilities -- 1 -- 1 ------- --------- ------- --------- NET ASSETS: For Variable Annuity Contract Liabilities $8,573 $31,239 $6,260 $11,003 ======= ========= ======= ========= WELLS FARGO WELLS FARGO STI CLASSIC VT ADVANTAGE VT LARGE ADVANTAGE VT SMALL LARGE CAP GROWTH COMPANY GROWTH FUND CAP GROWTH FUND STOCK FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (N) ----------------------------- ------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 838 1,053 412,212 ======= ========= ============ Cost: Class IA -- -- -- Class IB -- -- -- Other class $7,270 $8,870 $6,416,148 ======= ========= ============ Market Value: Class IA -- -- -- Class IB -- -- -- Other class $8,648 $10,207 $7,531,121 Due from Hartford Life Insurance Company -- -- 5,859 Receivable from fund shares sold -- -- -- Other assets -- -- -- ------- --------- ------------ Total Assets 8,648 10,207 7,536,980 ------- --------- ------------ LIABILITIES: Due to Hartford Life Insurance Company -- -- -- Payable for fund shares purchased -- -- 5,859 Other liabilities -- -- -- ------- --------- ------------ Total Liabilities -- -- 5,859 ------- --------- ------------ NET ASSETS: For Variable Annuity Contract Liabilities $8,648 $10,207 $7,531,121 ======= ========= ============
(m) Funded as of November 27, 2007. (n) Formerly STI Classic VT Capital Appreciation Fund. Change effective May 31, 2007. SA-29 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
STI CLASSIC VT STI CLASSIC VT STI CLASSIC VT LARGE CAP CORE MID-CAP CORE LARGE CAP VALUE EQUITY FUND EQUITY FUND EQUITY FUND SUB-ACCOUNT (O) SUB-ACCOUNT (P) SUB-ACCOUNT ------------------------------------------------------------------------------------------------------ ASSETS: Investments: Number of Shares: Class IA -- -- -- Class IB -- -- -- Other class 122,082 153,432 294,219 ============ ============ ============ Cost: Class IA -- -- -- Class IB -- -- -- Other class $1,174,669 $1,638,572 $4,394,904 ============ ============ ============ Market Value: Class IA -- -- -- Class IB -- -- -- Other class $1,504,052 $1,867,265 $5,292,995 Due from Hartford Life Insurance Company -- 1,983 10,553 Receivable from fund shares sold 111 -- -- Other assets -- -- -- ------------ ------------ ------------ Total Assets 1,504,163 1,869,248 5,303,548 ------------ ------------ ------------ LIABILITIES: Due to Hartford Life Insurance Company 111 -- -- Payable for fund shares purchased -- 1,983 10,553 Other liabilities -- -- -- ------------ ------------ ------------ Total Liabilities 111 1,983 10,553 ------------ ------------ ------------ NET ASSETS: For Variable Annuity Contract Liabilities $1,504,052 $1,867,265 $5,292,995 ============ ============ ============
(o) Formerly STI Classic VT Large Cap Relative Value Fund. Change effective May 31, 2007. (p) Formerly STI Classic VT Mid-Cap Equity Fund. Change effective May 31, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-30 ------------------------------------------------------------------------------- [This page intentionally left blank] SA-31 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNITS MINIMUM MAXIMUM OWNED BY UNIT UNIT CONTRACT PARTICIPANTS FAIR VALUE # FAIR VALUE # LIABILITY --------------------------------------------------------------------------------------------------------------------------------- DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION PERIOD (BY SUB-ACCOUNT): AIM V.I. Basic Value Fund -- Class S1 55,715,714 $1.415834 to $1.555421 $81,979,199 AIM V.I. Capital Appreciation Fund -- Class S1 26,725,752 1.013796 to 1.606895 39,709,942 AIM V.I. Core Equity Fund -- Class S1 11,194,693 0.930830 to 12.834710 118,255,471 AIM V.I. Government Securities Fund -- Class S1 276,464,902 1.094766 to 1.202707 315,399,070 AIM V.I. High Yield Fund -- Class S1 1,020,230 1.254847 to 1.314284 1,309,653 AIM V.I. International Growth Fund -- Class S1 32,770,524 2.219333 to 2.413489 75,958,043 AIM V.I. Mid Cap Core Equity Fund -- Class S1 68,210,187 1.676212 to 1.841460 118,744,082 AIM V.I. Small Cap Equity Fund -- Class S1 2,259,126 14.206294 to 14.937331 33,063,699 AIM V.I. Large Cap Growth Fund -- Class S1 1,891,177 12.652975 to 13.091210 24,397,254 AIM V.I. Capital Development Fund -- Class S1 19,348 9.765867 to 9.789131 189,153 American Funds Global Bond Fund -- Class 2 2,819,298 10.843071 to 11.067360 30,855,370 American Funds Global Growth and Income Fund -- Class 2 11,152,766 11.888755 to 12.245550 134,481,797 American Funds Asset Allocation Fund -- Class 2 35,816,519 13.225208 to 15.800420 501,351,256 American Funds Blue Chip Income and Growth Fund -- Class 2 195,597,711 1.145462 to 1.261333 233,470,357 American Funds Bond Fund -- Class 2 26,564,780 12.828250 to 14.978942 365,462,953 American Funds Global Growth Fund -- Class 2 10,058,181 11.950746 to 18.321256 158,927,513 American Funds Growth Fund -- Class 2 96,775,407 10.427125 to 17.055820 1,294,049,648 American Funds Growth-Income Fund -- Class 2 81,583,465 13.579092 to 16.732187 1,176,293,081 American Funds International Fund -- Class 2 22,754,329 12.656410 to 19.487761 382,109,407 American Funds New World Fund -- Class 2 5,114,856 25.310667 to 31.290989 140,991,087 American Funds Global Small Capitalization Fund -- Class 2 7,081,333 17.296552 to 25.466973 152,398,227 Columbia Asset Allocation Fund VS -- Class A 6,749,731 1.127195 to 1.180583 7,823,135 Columbia Small Company Growth Fund VS -- Class A 14,915,454 1.291004 to 1.354933 19,752,130 Columbia Large Cap Value Fund VS -- Class A 25,757,535 1.252159 to 1.314135 33,056,589 Evergreen VA Balanced Fund -- Class I 687,386 1.026684 to 1.104691 733,475 Evergreen VA Growth Fund -- Class I 1,952,589 1.068772 to 1.572762 2,403,518 Evergreen VA International Equity Fund -- Class I 1,451,723 1.324838 to 2.272957 2,297,560 Evergreen VA Omega Fund -- Class I 308,283 0.716149 to 0.939459 254,676 Evergreen VA Special Values Fund -- Class I 11,633,973 1.430216 to 1.952678 18,666,950 Evergreen VA Fundamental Large Cap Fund -- Class I 697,385 1.331900 to 1.457076 986,814 Franklin Rising Dividends Securities Fund -- Class 2 27,344,132 14.200576 to 15.286933 402,789,195 Franklin Income Securities Fund -- Class 2 83,571,758 15.145488 to 16.527450 1,320,424,957 Franklin Large Cap Growth Securities Fund -- Class 2 7,057,250 11.848456 to 12.827021 86,839,926 Franklin Global Real Estate Securities Fund -- Class 2 212,473 19.573800 to 22.193451 4,612,363 Franklin Small-Mid Cap Growth Securities Fund -- Class 2 11,440,653 7.996026 to 14.871642 128,723,587 Franklin Small Cap Value Securities Fund -- Class 2 16,181 9.230086 to 9.253378 149,590 Franklin Strategic Income Securities Fund -- Class 1 14,438,310 14.668907 to 17.207347 225,644,546 Mutual Shares Securities Fund -- Class 2 47,089,391 16.064485 to 20.466750 824,135,429 Templeton Developing Markets Securities Fund -- Class 1 3,460,318 24.519357 to 31.103787 96,610,715 Templeton Foreign Securities Fund -- Class 2 19,309,524 14.128636 to 16.996920 293,693,762 Templeton Global Asset Allocation Fund -- Class 2 202,940 16.116907 to 18.832232 3,508,026 Templeton Growth Securities Fund -- Class 2 38,864,183 14.495551 to 17.732277 615,962,087 Mutual Discovery Securities Fund -- Class 2 8,857,727 21.030000 to 22.638429 193,015,104 Franklin Flex Cap Growth Securities Fund -- Class 2 1,899,040 11.858630 to 12.444192 23,039,309 Franklin Large Cap Value Securities Fund -- Class 2 781,328 11.245329 to 11.800600 8,985,602
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-32 -------------------------------------------------------------------------------
UNITS MINIMUM MAXIMUM OWNED BY UNIT UNIT CONTRACT PARTICIPANTS FAIR VALUE # FAIR VALUE # LIABILITY --------------------------------------------------------------------------------------------------------------------------------- Hartford Advisers HLS Fund -- Class IB 27,568,625 $1.081903 to $1.346358 $31,374,733 Hartford Total Return Bond HLS Fund -- Class IB 64,410,856 1.230471 to 1.509593 81,507,118 Hartford Capital Appreciation HLS Fund -- Class IB 42,981,434 1.603556 to 2.708673 75,381,694 Hartford Dividend and Growth HLS Fund -- Class IB 39,731,152 1.353370 to 1.680583 55,551,761 Hartford Fundamental Growth HLS Fund -- Class IB 6,663 1.291171 to 1.291171 8,602 Hartford Global Advisers HLS Fund -- Class IB 126,232 2.244431 to 2.271611 286,149 Hartford Global Communications HLS Fund -- Class IB 4,834 1.601212 to 1.601212 7,740 Hartford Global Financial Services HLS Fund -- Class IB 46,522 1.256724 to 1.256724 58,464 Hartford Global Health HLS Fund -- Class IB 328,698 2.138451 to 2.193343 719,870 Hartford Global Growth HLS Fund -- Class IB 806,835 2.445701 to 2.530315 2,037,101 Hartford Global Technology HLS Fund -- Class IB 671,933 0.584123 to 0.599182 402,591 Hartford Disciplined Equity HLS Fund -- Class IB 569,456 1.430014 to 1.479497 839,952 Hartford Growth HLS Fund -- Class IB 53,796 1.506262 to 1.506262 81,031 Hartford Growth Opportunities HLS Fund -- Class IB 109,862 1.953917 to 2.009325 219,476 Hartford High Yield HLS Fund -- Class IB 300,192 1.353719 to 1.400582 418,896 Hartford Index HLS Fund -- Class IB 173,978 5.256090 to 5.437964 944,583 Hartford International Growth HLS Fund -- Class IB 208,389 1.905033 to 1.965895 407,542 Hartford International Small Company HLS Fund -- Class IB 89,435 2.404350 to 2.404350 215,034 Hartford International Opportunities HLS Fund -- Class IB 6,042,491 1.713829 to 1.870595 10,710,159 Hartford MidCap HLS Fund -- Class IB 800,676 4.458080 to 4.512098 3,610,718 Hartford MidCap Value HLS Fund -- Class IB 227,798 1.667164 to 1.720458 389,766 Hartford Money Market HLS Fund -- Class IA 222,914,521 1.034643 to 1.202293 247,267,081 Hartford Money Market HLS Fund -- Class IB 23,473,668 0.996396 to 1.198126 24,029,540 Hartford Mortgage Securities HLS Fund -- Class IB 202,285 2.844490 to 2.942854 587,578 Hartford Small Company HLS Fund -- Class IB 5,261,525 1.538611 to 1.999048 8,578,219 Hartford SmallCap Growth HLS Fund -- Class IB 112,150 1.320592 to 1.358036 151,586 Hartford Stock HLS Fund -- Class IB 24,327,447 1.010530 to 1.277448 26,134,602 Hartford U.S. Government Securities HLS Fund -- Class IB 547,280 1.101078 to 1.132329 618,308 Hartford Value HLS Fund -- Class IB 115,481 1.410824 to 1.429723 164,744 Hartford Value Opportunities HLS Fund -- Class IB 164,962 1.450756 to 1.491912 245,203 Hartford Equity Income HLS Fund -- Class IB 39,049 1.458445 to 1.489076 57,356 Huntington VA Income Equity Fund 776,787 1.364355 to 14.727331 2,439,014 Huntington VA Dividend Capture Fund 2,303,770 1.435220 to 14.695755 8,390,470 Huntington VA Growth Fund 1,046,228 1.018437 to 14.383175 2,086,896 Huntington VA Mid Corp America Fund 1,026,705 1.771211 to 18.549039 5,314,843 Huntington VA New Economy Fund 1,118,251 1.893931 to 20.150916 5,108,552 Huntington VA Rotating Markets Fund 468,708 1.616050 to 18.885872 2,178,065 Huntington VA International Equity Fund 1,130,456 1.711354 to 16.198358 4,199,239 Huntington VA Macro 100 Fund 1,231,905 1.064643 to 1.108493 1,351,444 Huntington VA Mortgage Securities Fund 679,274 1.071435 to 10.719929 1,788,934 Huntington VA Situs Small Cap Fund 3,934,675 1.423618 to 1.482212 5,743,517 MFS Core Equity Series -- Class INIT 1,328,423 7.337532 to 11.440100 12,508,296 MFS Emerging Growth Series -- Class INIT 2,657,443 6.398442 to 10.523433 22,836,050 MFS Global Equity Series -- Class INIT 672,282 14.287162 to 17.942006 10,709,258 MFS High Income Series -- Class INIT 6,373,860 12.139484 to 13.721501 80,853,675 MFS Investors Growth Stock Series -- Class INIT 2,875,125 6.887067 to 9.904658 24,187,368 MFS Investors Trust Series -- Class INIT 17,010,615 10.015440 to 12.109375 180,539,781 MFS Mid Cap Growth Series -- Class INIT 6,101,240 6.201280 to 6.980478 40,102,087
SA-33 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNITS MINIMUM MAXIMUM OWNED BY UNIT UNIT CONTRACT PARTICIPANTS FAIR VALUE # FAIR VALUE # LIABILITY --------------------------------------------------------------------------------------------------------------------------------- MFS New Discovery Series -- Class INIT 9,042,476 $8.740299 to $15.627695 $105,026,947 MFS Total Return Series -- Class INIT 38,010,961 13.170810 to 16.421375 544,440,566 MFS Value Series -- Class INIT 4,220,258 17.585857 to 18.930846 76,802,148 MFS Research Bond Series -- Class INIT 2,743,044 10.244550 to 10.656122 28,724,315 MFS Research International Series -- Class INIT 1,239,296 16.005105 to 16.749135 20,257,100 MFS Research Series -- Class INIT 294,020 12.509501 to 13.109180 3,750,884 BlackRock Global Growth V.I. Fund -- Class I 16,953 19.227626 to 19.680286 326,404 BlackRock Large Cap Growth V.I. Fund -- Class I 71,371 10.438256 to 12.955864 864,958 International Growth Equity Fund -- Class II 4,825 13.082745 to 13.181607 63,279 U.S. Mid Cap Value -- Class II 3,158 12.062939 to 13.831448 41,501 Capital Opportunities -- Class Y 36,495 5.185166 to 5.422083 193,192 Developing Growth -- Class Y 1,051 11.365645 to 11.462786 12,027 Flexible Income -- Class Y 7,973 11.835112 to 11.866969 94,600 Dividend Growth -- Class Y 604 12.876060 to 12.876060 7,783 Global Equity -- Class Y 674 12.383314 to 12.383314 8,341 Columbia Marsico International Opportunities Fund VS -- Class B 18,418,788 2.019711 to 2.115341 38,038,970 Columbia High Yield Fund VS 15,431,465 1.501025 to 1.575227 23,788,473 Columbia Marsico Focused Equities Fund VS -- Class A 20,638,790 1.334152 to 1.400168 28,305,340 Columbia Marsico Growth Fund VS -- Class A 19,084,893 1.276468 to 1.336980 24,925,599 Columbia Marsico 21st Century Fund VS -- Class A 4,647,133 1.940597 to 2.032516 9,239,952 Columbia Marsico Midcap Growth Fund VS -- Class A 30,768,410 1.022650 to 1.073257 32,243,994 JPMorgan Insurance Trust Balanced Portfolio -- 1 146,825 11.815996 to 12.039706 1,746,889 JPMorgan Insurance Trust Core Bond Portfolio -- 1 5,137,377 10.595114 to 16.367994 56,632,634 JPMorgan Insurance Trust Diversified Equity Portfolio -- 1 866,016 13.007139 to 21.095255 11,746,003 JPMorgan Insurance Trust Intrepid Mid Cap Portfolio -- 1 720,740 14.143199 to 32.645987 10,572,932 JPMorgan Insurance Trust Equity Index Portfolio -- 1 3,301,174 12.694071 to 13.080749 42,767,459 JPMorgan Insurance Trust Government Bond Portfolio -- 1 2,044,501 10.761819 to 11.089679 22,460,794 JPMorgan Insurance Trust Intrepid Growth Portfolio -- 1 145,198 12.117122 to 18.426447 1,852,340 JPMorgan Insurance Trust Diversified Mid Cap Growth Portfolio -- 1 1,022,858 14.315500 to 14.751510 14,929,094 JPMorgan Insurance Trust Diversified Mid Cap Value Portfolio -- 1 776,442 13.203462 to 22.014746 10,686,502 Jennison 20/20 Focus Portfolio -- Class II 98,975 1.490377 to 15.325556 377,680 Jennison Portfolio -- Class II 331,747 0.975858 to 7.256419 643,977 Prudential Value Portfolio -- Class II 182,221 1.352184 to 1.418866 252,927 Prudential Series International Growth -- Class II 6,443 1.375730 to 1.408201 8,929 Legg Mason Partners Variable Capital and Income Portfolio -- Class I 34,929 9.985693 to 10.019402 349,828 Legg Mason Partners Variable Fundamental Value Portfolio -- Class I 239,472 9.829750 to 9.866295 2,362,308 Legg Mason Partners Variable Global High Yield Bond Portfolio -- Class I 86,415 1.564895 to 1.605919 138,565 Legg Mason Partners Variable Investors Portfolio -- Class I 600,457 1.435434 to 1.485115 890,093 Growth and Income -- Class II 23,224 16.476878 to 17.229559 391,502 Comstock -- Class II 32,060 15.738155 to 16.364834 512,627 Wells Fargo Advantage VT Asset Allocation Fund 10,126 1.361298 to 1.361298 13,784 Wells Fargo Advantage VT Total Return Bond Fund 6,897 1.242914 to 1.242914 8,573
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-34 -------------------------------------------------------------------------------
UNITS MINIMUM MAXIMUM OWNED BY UNIT UNIT CONTRACT PARTICIPANTS FAIR VALUE # FAIR VALUE # LIABILITY --------------------------------------------------------------------------------------------------------------------------------- Wells Fargo Advantage VT Equity Income Fund 22,151 $1.384045 to $1.424572 $31,239 Wells Fargo Advantage VT C&B Large Cap Value Fund 4,939 1.267393 to 1.267393 6,260 Wells Fargo Advantage VT International Core Fund 7,022 1.567025 to 1.567025 11,003 Wells Fargo Advantage VT Large Company Growth Fund 7,840 1.103110 to 1.103110 8,648 Wells Fargo Advantage VT Small Cap Growth Fund 6,623 1.534932 to 1.552301 10,207 STI Classic VT Large Cap Growth Stock Fund 939,447 1.449150 to 14.840050 7,531,121 STI Classic VT Large Cap Core Equity Fund 99,141 1.791100 to 17.712334 1,504,052 STI Classic VT Mid-Cap Core Equity Fund 112,607 1.875710 to 18.654572 1,867,265 STI Classic VT Large Cap Value Equity Fund 683,680 1.797931 to 18.411466 5,292,995 ANNUITY CONTRACTS IN THE ANNUITY PERIOD (BY SUB-ACCOUNT): AIM V.I. Core Equity Fund -- Class S1 2,322 12.528855 to 12.653902 29,267 AIM V.I. Government Securities Fund -- Class S1 54,249 1.147407 to 1.173858 63,218 AIM V.I. International Growth Fund -- Class S1 627 2.370141 to 2.370141 1,486 AIM V.I. Mid Cap Core Equity Fund -- Class S1 45,559 1.790123 to 1.790123 81,556 AIM V.I. Small Cap Equity Fund -- Class S1 528 14.937331 to 14.937331 7,888 American Funds Global Growth and Income Fund -- Class 2 2,522 12.128975 to 12.128975 30,593 American Funds Asset Allocation Fund -- Class 2 28,775 13.836431 to 15.356547 420,984 American Funds Blue Chip Income and Growth Fund -- Class 2 124,189 1.201428 to 1.230132 150,519 American Funds Bond Fund -- Class 2 9,908 14.294907 to 14.558168 143,322 American Funds Global Growth Fund -- Class 2 4,328 13.691482 to 17.985042 73,744 American Funds Growth Fund -- Class 2 28,436 10.917173 to 16.576487 448,032 American Funds Growth-Income Fund -- Class 2 47,736 14.206709 to 16.262099 718,086 American Funds International Fund -- Class 2 12,342 14.549325 to 19.459913 231,527 American Funds New World Fund -- Class 2 253 28.780731 to 30.412135 7,441 American Funds Global Small Capitalization Fund -- Class 2 2,211 23.912038 to 25.430467 55,712 Evergreen VA Growth Fund -- Class I 2,422 1.572762 to 1.572762 3,809 Evergreen VA Special Values Fund -- Class I 1,644 1.952678 to 1.952678 3,211 Franklin Rising Dividends Securities Fund -- Class 2 10,803 14.969050 to 15.004054 161,953 Franklin Income Securities Fund -- Class 2 27,582 15.884443 to 16.164979 445,805 Franklin Large Cap Growth Securities Fund -- Class 2 1,021 12.391579 to 12.646295 12,827 Franklin Global Real Estate Securities Fund -- Class 2 236 22.193451 to 22.193451 5,230 Franklin Small-Mid Cap Growth Securities Fund -- Class 2 9,299 8.441157 to 14.871642 93,668 Franklin Strategic Income Securities Fund -- Class 1 4,788 15.323642 to 16.724020 79,362 Mutual Shares Securities Fund -- Class 2 8,014 17.497732 to 19.891808 156,223 Templeton Developing Markets Securities Fund -- Class 1 157 26.203376 to 30.230111 4,384 Templeton Foreign Securities Fund -- Class 2 5,542 14.848232 to 16.519366 86,900 Templeton Global Asset Allocation Fund -- Class 2 333 17.633846 to 17.633846 5,880 Templeton Growth Securities Fund -- Class 2 25,020 15.582668 to 17.234086 402,533 Mutual Discovery Securities Fund -- Class 2 3,355 22.167799 to 22.219617 74,509 Franklin Flex Cap Growth Securities Fund -- Class 2 1,071 12.147892 to 12.147892 13,008 Hartford Advisers HLS Fund -- Class IB 3,463 1.346358 to 1.346358 4,662 Hartford Capital Appreciation HLS Fund -- Class IB 942 2.708673 to 2.708673 2,552 Hartford International Opportunities HLS Fund -- Class IB 1,121 1.870595 to 1.870595 2,097 Hartford Money Market HLS Fund -- Class IA 75,503 1.087326 to 1.170091 84,055 Hartford Money Market HLS Fund -- Class IB 82,030 1.045727 to 1.045727 85,781 MFS High Income Series -- Class INIT 1,999 12.973204 to 12.973204 25,939 MFS Investors Growth Stock Series -- Class INIT 1,426 9.745673 to 9.745673 13,896
SA-35 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNITS MINIMUM MAXIMUM OWNED BY UNIT UNIT CONTRACT PARTICIPANTS FAIR VALUE # FAIR VALUE # LIABILITY --------------------------------------------------------------------------------------------------------------------------------- MFS Investors Trust Series -- Class INIT 3,270 $10.402183 to $12.109375 $36,656 MFS New Discovery Series -- Class INIT 1,563 9.185641 to 15.407442 20,607 MFS Total Return Series -- Class INIT 21,838 13.758760 to 15.960075 338,915 MFS Value Series -- Class INIT 74 18.537280 to 18.537280 1,375
# Rounded unit values THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-36 ------------------------------------------------------------------------------- [This page intentionally left blank] SA-37 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
AIM V.I. AIM V.I. BASIC CAPITAL AIM V.I. VALUE FUND APPRECIATION FUND CORE EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $509,719 $ -- $1,334,382 ------------- ------------ ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (1,680,876) (776,811) (2,308,419) ------------- ------------ ------------- Net investment income (loss) (1,171,157) (776,811) (974,037) ------------- ------------ ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 3,314,298 898,208 1,930,054 Net realized gain on distributions 4,751,678 -- -- Net unrealized appreciation (depreciation) of investments during the year (6,879,867) 3,793,937 6,567,795 ------------- ------------ ------------- Net gain (loss) on investments 1,186,109 4,692,145 8,497,849 ------------- ------------ ------------- Net increase (decrease) in net assets resulting from operations $14,952 $3,915,334 $7,523,812 ============= ============ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-38 -------------------------------------------------------------------------------
AIM V.I. AIM V.I. AIM V.I. AIM V.I. GOVERNMENT HIGH INTERNATIONAL MID CAP CORE SECURITIES FUND YIELD FUND GROWTH FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $12,353,212 $96,727 $298,484 $264,683 ------------- --------- ------------ ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (4,986,722) (30,218) (986,068) (2,246,503) ------------- --------- ------------ ------------- Net investment income (loss) 7,366,490 66,509 (687,584) (1,981,820) ------------- --------- ------------ ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 174,476 24,754 1,561,880 1,256,125 Net realized gain on distributions -- -- -- 1,726,513 Net unrealized appreciation (depreciation) of investments during the year 5,068,661 (98,175) 4,430,573 7,604,745 ------------- --------- ------------ ------------- Net gain (loss) on investments 5,243,137 (73,421) 5,992,453 10,587,383 ------------- --------- ------------ ------------- Net increase (decrease) in net assets resulting from operations $12,609,627 $(6,912) $5,304,869 $8,605,563 ============= ========= ============ ============= AIM V.I. AIM V.I. AIM V.I. SMALL CAP LARGE CAP CAPITAL EQUITY FUND GROWTH FUND DEVELOPMENT FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (A) ----------------------------- -------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $13,456 $7,327 $ -- ----------- ------------ -------- EXPENSE: Mortality and Expense Risk and Administrative charges (469,885) (440,364) (182) ----------- ------------ -------- Net investment income (loss) (456,429) (433,037) (182) ----------- ------------ -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 19,969 507,296 (1) Net realized gain on distributions 900,342 -- 7,480 Net unrealized appreciation (depreciation) of investments during the year (46,345) 2,828,997 (7,775) ----------- ------------ -------- Net gain (loss) on investments 873,966 3,336,293 (296) ----------- ------------ -------- Net increase (decrease) in net assets resulting from operations $417,537 $2,903,256 $(478) =========== ============ ========
(a) From inception November 12, 2007 to December 31, 2007. SA-39 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GLOBAL GROWTH AND ASSET GLOBAL BOND FUND INCOME FUND ALLOCATION FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $785,740 $2,057,746 $10,878,276 ------------ ------------- ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (246,655) (1,541,077) (8,991,179) ------------ ------------- ------------- Net investment income (loss) 539,085 516,669 1,887,097 ------------ ------------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 19,979 75,524 2,145,813 Net realized gain on distributions -- 4,112,634 16,571,433 Net unrealized appreciation (depreciation) of investments during the year 577,059 3,186,260 1,541,116 ------------ ------------- ------------- Net gain (loss) on investments 597,038 7,374,418 20,258,362 ------------ ------------- ------------- Net increase (decrease) in net assets resulting from operations $1,136,123 $7,891,087 $22,145,459 ============ ============= =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-40 -------------------------------------------------------------------------------
AMERICAN FUNDS BLUE CHIP INCOME AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS AND GROWTH FUND BOND FUND GLOBAL GROWTH FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $6,229,231 $26,848,330 $3,978,875 $9,831,114 -------------- -------------- -------------- -------------- EXPENSE: Mortality and Expense Risk and Administrative charges (4,521,269) (6,199,534) (2,534,370) (22,009,087) -------------- -------------- -------------- -------------- Net investment income (loss) 1,707,962 20,648,796 1,444,505 (12,177,973) -------------- -------------- -------------- -------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 2,582,979 253,528 2,229,133 10,559,242 Net realized gain on distributions 7,830,862 -- 5,755,377 83,188,818 Net unrealized appreciation (depreciation) of investments during the year (11,330,772) (15,869,276) 7,352,756 33,495,714 -------------- -------------- -------------- -------------- Net gain (loss) on investments (916,931) (15,615,748) 15,337,266 127,243,774 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $791,031 $5,033,048 $16,781,771 $115,065,801 ============== ============== ============== ============== AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GROWTH-INCOME FUND INTERNATIONAL FUND NEW WORLD FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ---------------------------------------------------------------------- INVESTMENT INCOME: Dividends $18,070,092 $5,358,916 $3,697,509 -------------- -------------- -------------- EXPENSE: Mortality and Expense Risk and Administrative charges (20,896,024) (6,151,420) (1,972,457) -------------- -------------- -------------- Net investment income (loss) (2,825,932) (792,504) 1,725,052 -------------- -------------- -------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 9,024,902 2,155,488 1,024,442 Net realized gain on distributions 37,947,583 16,916,884 6,890,165 Net unrealized appreciation (depreciation) of investments during the year (10,935,887) 38,353,609 18,618,524 -------------- -------------- -------------- Net gain (loss) on investments 36,036,598 57,425,981 26,533,131 -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations $33,210,666 $56,633,477 $28,258,183 ============== ============== ==============
SA-41 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
AMERICAN FUNDS COLUMBIA COLUMBIA GLOBAL SMALL ASSET ALLOCATION SMALL COMPANY CAPITALIZATION FUND FUND VS GROWTH FUND VS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $4,171,769 $221,950 $ -- ------------- ----------- ------------ EXPENSE: Mortality and Expense Risk and Administrative charges (2,582,311) (158,266) (441,966) ------------- ----------- ------------ Net investment income (loss) 1,589,458 63,684 (441,966) ------------- ----------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 1,382,287 4,668 241,360 Net realized gain on distributions 10,737,599 740,842 -- Net unrealized appreciation (depreciation) of investments during the year 9,556,013 (274,516) 2,525,994 ------------- ----------- ------------ Net gain (loss) on investments 21,675,899 470,994 2,767,354 ------------- ----------- ------------ Net increase (decrease) in net assets resulting from operations $23,265,357 $534,678 $2,325,388 ============= =========== ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-42 -------------------------------------------------------------------------------
COLUMBIA EVERGREEN VA LARGE CAP EVERGREEN VA EVERGREEN VA INTERNATIONAL VALUE FUND VS BALANCED FUND GROWTH FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $535,934 $24,535 $ -- $53,678 ------------- --------- ----------- ---------- EXPENSE: Mortality and Expense Risk and Administrative charges (771,555) (8,805) (38,081) (31,253) ------------- --------- ----------- ---------- Net investment income (loss) (235,621) 15,730 (38,081) 22,425 ------------- --------- ----------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 358,181 740 4,089 (1,553) Net realized gain on distributions 2,552,725 -- 424,741 159,888 Net unrealized appreciation (depreciation) of investments during the year (2,296,772) (1,388) (245,370) 7,905 ------------- --------- ----------- ---------- Net gain (loss) on investments 614,134 (648) 183,460 166,240 ------------- --------- ----------- ---------- Net increase (decrease) in net assets resulting from operations $378,513 $15,082 $145,379 $188,665 ============= ========= =========== ========== EVERGREEN VA EVERGREEN VA EVERGREEN VA SPECIAL FUNDAMENTAL OMEGA FUND VALUES FUND LARGE CAP FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------- INVESTMENT INCOME: Dividends $1,203 $293,812 $10,568 --------- ------------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (4,072) (326,791) (16,617) --------- ------------- --------- Net investment income (loss) (2,869) (32,979) (6,049) --------- ------------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (26,033) 5,838 9,832 Net realized gain on distributions -- 2,522,108 74,224 Net unrealized appreciation (depreciation) of investments during the year 21,339 (4,411,901) (23,094) --------- ------------- --------- Net gain (loss) on investments (4,694) (1,883,955) 60,962 --------- ------------- --------- Net increase (decrease) in net assets resulting from operations $(7,563) $(1,916,934) $54,913 ========= ============= =========
SA-43 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN FRANKLIN RISING DIVIDENDS INCOME LARGE CAP GROWTH SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $9,037,694 $41,491,823 $664,631 -------------- -------------- ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (6,778,833) (21,700,949) (1,622,662) -------------- -------------- ------------- Net investment income (loss) 2,258,861 19,790,874 (958,031) -------------- -------------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 121,480 532,965 393,868 Net realized gain on distributions 5,543,192 7,694,797 654,351 Net unrealized appreciation (depreciation) of investments during the year (27,575,354) (10,860,054) 3,432,448 -------------- -------------- ------------- Net gain (loss) on investments (21,910,682) (2,632,292) 4,480,667 -------------- -------------- ------------- Net increase (decrease) in net assets resulting from operations $(19,651,821) $17,158,582 $3,522,636 ============== ============== =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-44 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN SMALL-MID CAP FRANKLIN FRANKLIN GLOBAL REAL ESTATE GROWTH SMALL CAP VALUE STRATEGIC INCOME SECURITIES FUND SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT (B) SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $141,761 $ -- $ -- $10,705,165 ------------- ------------- -------- ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (95,584) (2,284,159) (131) (3,747,768) ------------- ------------- -------- ------------- Net investment income (loss) 46,177 (2,284,159) (131) 6,957,397 ------------- ------------- -------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 322,778 1,496,033 (92) 158,211 Net realized gain on distributions 439,491 8,924,791 -- 587,747 Net unrealized appreciation (depreciation) of investments during the year (2,234,298) 2,240,702 (2,228) 825,863 ------------- ------------- -------- ------------- Net gain (loss) on investments (1,472,029) 12,661,526 (2,320) 1,571,821 ------------- ------------- -------- ------------- Net increase (decrease) in net assets resulting from operations $(1,425,852) $10,377,367 $(2,451) $8,529,218 ============= ============= ======== ============= TEMPLETON TEMPLETON MUTUAL SHARES DEVELOPING MARKETS FOREIGN SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- -------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $11,629,767 $1,916,189 $5,571,929 -------------- ------------- ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (14,253,536) (1,424,635) (5,026,436) -------------- ------------- ------------- Net investment income (loss) (2,623,769) 491,554 545,493 -------------- ------------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 2,124,666 434,535 2,233,837 Net realized gain on distributions 28,473,401 5,746,159 12,708,896 Net unrealized appreciation (depreciation) of investments during the year (18,985,766) 11,023,732 19,272,853 -------------- ------------- ------------- Net gain (loss) on investments 11,612,301 17,204,426 34,215,586 -------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $8,988,532 $17,695,980 $34,761,079 ============== ============= =============
(a) From inception November 12, 2007 to December 31, 2007. (b) Formerly Franklin Real Estate Fund. Change effective May 1, 2007. SA-45 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
TEMPLETON TEMPLETON GLOBAL ASSET GROWTH MUTUAL DISCOVERY ALLOCATION FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $634,419 $7,986,509 $2,371,471 ------------- -------------- ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (55,004) (10,668,215) (2,964,089) ------------- -------------- ------------- Net investment income (loss) 579,415 (2,681,706) (592,618) ------------- -------------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 29,330 618,529 199,390 Net realized gain on distributions 831,891 25,482,518 1,950,839 Net unrealized appreciation (depreciation) of investments during the year (1,157,122) (22,113,561) 12,284,970 ------------- -------------- ------------- Net gain (loss) on investments (295,901) 3,987,486 14,435,199 ------------- -------------- ------------- Net increase (decrease) in net assets resulting from operations $283,514 $1,305,780 $13,842,581 ============= ============== =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-46 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN HARTFORD HARTFORD FLEX CAP GROWTH LARGE CAP VALUE ADVISERS TOTAL RETURN BOND SECURITIES FUND SECURITIES FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $21,843 $146,010 $621,488 $4,110,956 ------------ ----------- ------------- ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (325,939) (146,921) (690,151) (1,752,694) ------------ ----------- ------------- ------------- Net investment income (loss) (304,096) (911) (68,663) 2,358,262 ------------ ----------- ------------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 59,995 20,384 48,469 (257,245) Net realized gain on distributions -- 4,350 3,481,821 -- Net unrealized appreciation (depreciation) of investments during the year 2,194,616 (241,829) (1,821,233) (196,219) ------------ ----------- ------------- ------------- Net gain (loss) on investments 2,254,611 (217,095) 1,709,057 (453,464) ------------ ----------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $1,950,515 $(218,006) $1,640,394 $1,904,798 ============ =========== ============= ============= HARTFORD HARTFORD HARTFORD CAPITAL APPRECIATION DIVIDEND AND GROWTH FUNDAMENTAL GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (C) ----------------------------- --------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $48,465 $800,250 $5 ------------- ------------- ------- EXPENSE: Mortality and Expense Risk and Administrative charges (1,547,730) (1,230,325) (115) ------------- ------------- ------- Net investment income (loss) (1,499,265) (430,075) (110) ------------- ------------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 2,738,623 2,015,892 17 Net realized gain on distributions 12,539,102 4,453,240 739 Net unrealized appreciation (depreciation) of investments during the year (3,021,107) (2,475,544) 368 ------------- ------------- ------- Net gain (loss) on investments 12,256,618 3,993,588 1,124 ------------- ------------- ------- Net increase (decrease) in net assets resulting from operations $10,757,353 $3,563,513 $1,014 ============= ============= =======
(c) Formerly Hartford Focus HLS Fund. Change effective July 27, 2007. SA-47 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD GLOBAL FINANCIAL GLOBAL ADVISERS GLOBAL COMMUNICATIONS SERVICES HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $1,698 $45 $33 --------- ------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (4,269) (94) (995) --------- ------- --------- Net investment income (loss) (2,571) (49) (962) --------- ------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (2,295) 1 6,913 Net realized gain on distributions 21,346 1,270 13,761 Net unrealized appreciation (depreciation) of investments during the year 23,949 107 (25,249) --------- ------- --------- Net gain (loss) on investments 43,000 1,378 (4,575) --------- ------- --------- Net increase (decrease) in net assets resulting from operations $40,429 $1,329 $(5,537) ========= ======= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-48 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD GLOBAL HEALTH GLOBAL GROWTH GLOBAL TECHNOLOGY DISCIPLINED EQUITY HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT (D) SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $ -- $1,247 $ -- $6,500 ---------- ---------- ---------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (12,758) (32,419) (7,033) (12,766) ---------- ---------- ---------- --------- Net investment income (loss) (12,758) (31,172) (7,033) (6,266) ---------- ---------- ---------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 36,012 105,820 (51,650) 15,054 Net realized gain on distributions 108,206 225,920 -- 2,877 Net unrealized appreciation (depreciation) of investments during the year (87,681) 160,341 118,010 45,751 ---------- ---------- ---------- --------- Net gain (loss) on investments 56,537 492,081 66,360 63,682 ---------- ---------- ---------- --------- Net increase (decrease) in net assets resulting from operations $43,779 $460,909 $59,327 $57,416 ========== ========== ========== ========= HARTFORD HARTFORD HARTFORD GROWTH GROWTH OPPORTUNITIES HIGH YIELD HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $45 $31,963 --------- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (1,123) (2,749) (6,453) --------- --------- --------- Net investment income (loss) (1,123) (2,704) 25,510 --------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 1,460 1,568 (1,291) Net realized gain on distributions 5,467 34,151 -- Net unrealized appreciation (depreciation) of investments during the year 5,139 6,859 (19,577) --------- --------- --------- Net gain (loss) on investments 12,066 42,578 (20,868) --------- --------- --------- Net increase (decrease) in net assets resulting from operations $10,943 $39,874 $4,642 ========= ========= =========
(d) Formerly Hartford Global Leaders HLS Fund. Change effective July 27, 2007. SA-49 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD INTERNATIONAL INDEX INTERNATIONAL GROWTH SMALL COMPANY HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT (E) SUB-ACCOUNT -------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $13,635 $1,779 $3,154 --------- ---------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (18,800) (7,174) (3,161) --------- ---------- --------- Net investment income (loss) (5,165) (5,395) (7) --------- ---------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (51,944) 29,906 101 Net realized gain on distributions 54,955 73,583 34,358 Net unrealized appreciation (depreciation) of investments during the year 63,366 (3,166) (19,790) --------- ---------- --------- Net gain (loss) on investments 66,377 100,323 14,669 --------- ---------- --------- Net increase (decrease) in net assets resulting from operations $61,212 $94,928 $14,662 ========= ========== =========
(e) Formerly Hartford International Capital Appreciation HLS Fund. Change effective July 27, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-50 -------------------------------------------------------------------------------
HARTFORD INTERNATIONAL HARTFORD HARTFORD HARTFORD OPPORTUNITIES MIDCAP MIDCAP VALUE MONEY MARKET HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $87,365 $8,765 $1,174 $10,314,867 ------------ ----------- --------- ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (208,769) (68,077) (7,370) (3,926,765) ------------ ----------- --------- ------------- Net investment income (loss) (121,404) (59,312) (6,196) 6,388,102 ------------ ----------- --------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 670,943 297,198 17,635 -- Net realized gain on distributions 1,989,956 582,191 80,025 -- Net unrealized appreciation (depreciation) of investments during the year (248,095) (123,907) (77,174) (10) ------------ ----------- --------- ------------- Net gain (loss) on investments 2,412,804 755,482 20,486 (10) ------------ ----------- --------- ------------- Net increase (decrease) in net assets resulting from operations $2,291,400 $696,170 $14,290 $6,388,092 ============ =========== ========= ============= HARTFORD HARTFORD HARTFORD MORTGAGE SECURITIES SMALL COMPANY SMALLCAP GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ---------------------------------------------------------------------- INVESTMENT INCOME: Dividends $30,436 $ -- $35 --------- ------------ --------- EXPENSE: Mortality and Expense Risk and Administrative charges (7,536) (182,878) (2,525) --------- ------------ --------- Net investment income (loss) 22,900 (182,878) (2,490) --------- ------------ --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (1,215) 107,340 (365) Net realized gain on distributions -- 1,312,375 12,187 Net unrealized appreciation (depreciation) of investments during the year (12,627) (172,346) (14,782) --------- ------------ --------- Net gain (loss) on investments (13,842) 1,247,369 (2,960) --------- ------------ --------- Net increase (decrease) in net assets resulting from operations $9,058 $1,064,491 $(5,450) ========= ============ =========
SA-51 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
HARTFORD HARTFORD U.S. GOVERNMENT HARTFORD STOCK SECURITIES VALUE HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $207,474 $22,625 $1,723 ------------- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (567,753) (9,178) (3,271) ------------- --------- --------- Net investment income (loss) (360,279) 13,447 (1,548) ------------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 647,632 1,953 23,752 Net realized gain on distributions 3,912,998 -- 21,296 Net unrealized appreciation (depreciation) of investments during the year (2,977,974) 1,248 (26,434) ------------- --------- --------- Net gain (loss) on investments 1,582,656 3,201 18,614 ------------- --------- --------- Net increase (decrease) in net assets resulting from operations $1,222,377 $16,648 $17,066 ============= ========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-52 -------------------------------------------------------------------------------
HARTFORD HARTFORD HUNTINGTON VA HUNTINGTON VA VALUE OPPORTUNITIES EQUITY INCOME INCOME DIVIDEND HLS FUND HLS FUND EQUITY FUND CAPTURE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $2,633 $1,030 $38,315 $245,052 --------- -------- ----------- ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (4,487) (1,038) (41,076) (142,634) --------- -------- ----------- ------------- Net investment income (loss) (1,854) (8) (2,761) 102,418 --------- -------- ----------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 5,916 3,718 20,387 14,009 Net realized gain on distributions 39,370 1,893 70,741 345,714 Net unrealized appreciation (depreciation) of investments during the year (59,949) (2,411) (134,852) (1,180,471) --------- -------- ----------- ------------- Net gain (loss) on investments (14,663) 3,200 (43,724) (820,748) --------- -------- ----------- ------------- Net increase (decrease) in net assets resulting from operations $(16,517) $3,192 $(46,485) $(718,330) ========= ======== =========== ============= HUNTINGTON VA HUNTINGTON VA MID CORP HUNTINGTON VA GROWTH FUND AMERICA FUND NEW ECONOMY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------ INVESTMENT INCOME: Dividends $5,691 $26,280 $6,046 ---------- ---------- ---------- EXPENSE: Mortality and Expense Risk and Administrative charges (26,930) (89,850) (73,750) ---------- ---------- ---------- Net investment income (loss) (21,239) (63,570) (67,704) ---------- ---------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 15,700 46,516 34,482 Net realized gain on distributions 186 52,384 72,933 Net unrealized appreciation (depreciation) of investments during the year 188,302 226,354 308,888 ---------- ---------- ---------- Net gain (loss) on investments 204,188 325,254 416,303 ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations $182,949 $261,684 $348,599 ========== ========== ==========
SA-53 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
HUNTINGTON VA HUNTINGTON VA ROTATING INTERNATIONAL HUNTINGTON VA MARKETS FUND EQUITY FUND MACRO 100 FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $14,551 $389 $4,924 ---------- ---------- ----------- EXPENSE: Mortality and Expense Risk and Administrative charges (34,690) (41,907) (20,739) ---------- ---------- ----------- Net investment income (loss) (20,139) (41,518) (15,815) ---------- ---------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 23,756 3,063 3,296 Net realized gain on distributions 81,029 4,358 199,643 Net unrealized appreciation (depreciation) of investments during the year 20,150 317,622 (254,699) ---------- ---------- ----------- Net gain (loss) on investments 124,935 325,043 (51,760) ---------- ---------- ----------- Net increase (decrease) in net assets resulting from operations $104,796 $283,525 $(67,575) ========== ========== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-54 -------------------------------------------------------------------------------
HUNTINGTON VA MFS MFS MORTGAGE HUNTINGTON VA CORE EQUITY EMERGING SECURITIES FUND SITUS SMALL CAP FUND SERIES GROWTH SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (F) SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $25,714 $18,270 $50,101 $ -- --------- ---------- ------------ ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (21,413) (83,989) (246,166) (330,766) --------- ---------- ------------ ------------- Net investment income (loss) 4,301 (65,719) (196,065) (330,766) --------- ---------- ------------ ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 138 6,736 114,392 (1,075,281) Net realized gain on distributions 273 301,070 -- -- Net unrealized appreciation (depreciation) of investments during the year 25,937 39,284 1,395,286 4,604,082 --------- ---------- ------------ ------------- Net gain (loss) on investments 26,348 347,090 1,509,678 3,528,801 --------- ---------- ------------ ------------- Net increase (decrease) in net assets resulting from operations $30,649 $281,371 $1,313,613 $3,198,035 ========= ========== ============ ============= MFS MFS MFS GLOBAL EQUITY HIGH INCOME INVESTORS GROWTH SERIES SERIES STOCK SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------- INVESTMENT INCOME: Dividends $220,159 $5,813,938 $85,950 ----------- ------------- ------------ EXPENSE: Mortality and Expense Risk and Administrative charges (197,698) (1,509,662) (445,080) ----------- ------------- ------------ Net investment income (loss) 22,461 4,304,276 (359,130) ----------- ------------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 299,322 (24,645) 300,947 Net realized gain on distributions 691,552 -- -- Net unrealized appreciation (depreciation) of investments during the year (278,979) (4,370,989) 2,367,727 ----------- ------------- ------------ Net gain (loss) on investments 711,895 (4,395,634) 2,668,674 ----------- ------------- ------------ Net increase (decrease) in net assets resulting from operations $734,356 $(91,358) $2,309,544 =========== ============= ============
(f) Formerly MFS Capital Opportunities Series. Change effective May 1, 2007. SA-55 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
MFS MFS MFS INVESTORS MID CAP NEW DISCOVERY TRUST SERIES GROWTH SERIES SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $1,344,948 $71,910 $ -- ------------- ------------ ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (3,005,351) (766,470) (1,937,168) ------------- ------------ ------------- Net investment income (loss) (1,660,403) (694,560) (1,937,168) ------------- ------------ ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 903,480 1,035,528 408,724 Net realized gain on distributions 1,364,134 1,530,503 7,259,998 Net unrealized appreciation (depreciation) of investments during the year 12,498,845 1,301,880 (5,756,874) ------------- ------------ ------------- Net gain (loss) on investments 14,766,459 3,867,911 1,911,848 ------------- ------------ ------------- Net increase (decrease) in net assets resulting from operations $13,106,056 $3,173,351 $(25,320) ============= ============ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-56 -------------------------------------------------------------------------------
MFS MFS MFS RESEARCH TOTAL RETURN MFS RESEARCH BOND INTERNATIONAL SERIES VALUE SERIES SERIES SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $12,812,810 $540,325 $451,020 $ -- ------------- ------------- ----------- ------------ EXPENSE: Mortality and Expense Risk and Administrative charges (9,307,877) (1,133,699) (322,031) (209,750) ------------- ------------- ----------- ------------ Net investment income (loss) 3,504,933 (593,374) 128,989 (209,750) ------------- ------------- ----------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 1,573,542 242,714 18,853 38,503 Net realized gain on distributions 12,250,570 925,336 -- 96,970 Net unrealized appreciation (depreciation) of investments during the year (6,817,988) 2,463,723 338,722 1,070,746 ------------- ------------- ----------- ------------ Net gain (loss) on investments 7,006,124 3,631,773 357,575 1,206,219 ------------- ------------- ----------- ------------ Net increase (decrease) in net assets resulting from operations $10,511,057 $3,038,399 $486,564 $996,469 ============= ============= =========== ============ BLACKROCK BLACKROCK MFS GLOBAL GROWTH LARGE CAP GROWTH RESEARCH SERIES V.I. FUND V.I. FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------------- INVESTMENT INCOME: Dividends $12,006 $3,101 $2,405 ---------- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (42,020) (5,738) (17,267) ---------- --------- --------- Net investment income (loss) (30,014) (2,637) (14,862) ---------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 11,061 2,572 79,028 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 228,404 83,460 (9,453) ---------- --------- --------- Net gain (loss) on investments 239,465 86,032 69,575 ---------- --------- --------- Net increase (decrease) in net assets resulting from operations $209,451 $83,395 $54,713 ========== ========= =========
SA-57 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
INTERNATIONAL GROWTH U.S. CAPITAL EQUITY FUND MID CAP VALUE OPPORTUNITIES SUB-ACCOUNT (G) SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $85 $239 $ -- ------- -------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (448) (564) (1,785) ------- -------- --------- Net investment income (loss) (363) (325) (1,785) ------- -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 18 14 420 Net realized gain on distributions 1,309 4,145 -- Net unrealized appreciation (depreciation) of investments during the year (422) (3,639) 15,175 ------- -------- --------- Net gain (loss) on investments 905 520 15,595 ------- -------- --------- Net increase (decrease) in net assets resulting from operations $542 $195 $13,810 ======= ======== =========
(g) Funded as of February 8, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-58 -------------------------------------------------------------------------------
DEVELOPING DIVIDEND GROWTH FLEXIBLE INCOME GROWTH GLOBAL EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (G) SUB-ACCOUNT (G) -------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $15 $2,932 $55 $23 ------- -------- ----- ----- EXPENSE: Mortality and Expense Risk and Administrative charges (138) (758) (85) (88) ------- -------- ----- ----- Net investment income (loss) (123) 2,174 (30) (65) ------- -------- ----- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 6 1 1 4 Net realized gain on distributions -- -- -- 723 Net unrealized appreciation (depreciation) of investments during the year 1,839 (1,286) 75 (30) ------- -------- ----- ----- Net gain (loss) on investments 1,845 (1,285) 76 697 ------- -------- ----- ----- Net increase (decrease) in net assets resulting from operations $1,722 $889 $46 $632 ======= ======== ===== ===== COLUMBIA COLUMBIA COLUMBIA MARSICO INTERNATIONAL HIGH YIELD MARSICO FOCUSED OPPORTUNITIES FUND VS FUND VS EQUITIES FUND VS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------------------- INVESTMENT INCOME: Dividends $42,859 $1,336,627 $34,496 ------------ ------------- ------------ EXPENSE: Mortality and Expense Risk and Administrative charges (818,861) (542,579) (600,264) ------------ ------------- ------------ Net investment income (loss) (776,002) 794,048 (565,768) ------------ ------------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 3,553,710 463,716 2,462,633 Net realized gain on distributions 1,559,685 -- -- Net unrealized appreciation (depreciation) of investments during the year 1,912,729 (1,279,100) 1,284,808 ------------ ------------- ------------ Net gain (loss) on investments 7,026,124 (815,384) 3,747,441 ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations $6,250,122 $(21,336) $3,181,673 ============ ============= ============
(g) Funded as of February 8, 2007. SA-59 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
COLUMBIA COLUMBIA MARSICO COLUMBIA MARSICO 21ST CENTURY MARSICO MIDCAP GROWTH FUND VS FUND VS GROWTH FUND VS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $20,425 $45,680 $37,750 ------------ ------------ ------------- EXPENSE: Mortality and Expense Risk and Administrative charges (543,220) (185,030) (702,742) ------------ ------------ ------------- Net investment income (loss) (522,795) (139,350) (664,992) ------------ ------------ ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 1,823,943 175,966 1,049,981 Net realized gain on distributions -- 457,562 6,413,660 Net unrealized appreciation (depreciation) of investments during the year 2,393,240 906,613 (1,358,335) ------------ ------------ ------------- Net gain (loss) on investments 4,217,183 1,540,141 6,105,306 ------------ ------------ ------------- Net increase (decrease) in net assets resulting from operations $3,694,388 $1,400,791 $5,440,314 ============ ============ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-60 -------------------------------------------------------------------------------
JPMORGAN JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST BALANCED CORE BOND DIVERSIFIED EQUITY INTREPID MID CAP PORTFOLIO - 1 PORTFOLIO - 1 PORTFOLIO - 1 PORTFOLIO - 1 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $48,820 $2,169,284 $114,015 $46,660 --------- ------------ ----------- ----------- EXPENSE: Mortality and Expense Risk and Administrative charges (27,702) (784,231) (184,486) (145,587) --------- ------------ ----------- ----------- Net investment income (loss) 21,118 1,385,053 (70,471) (98,927) --------- ------------ ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 18,612 8,792 33,808 (3,049) Net realized gain on distributions 9,280 -- 484,553 591,424 Net unrealized appreciation (depreciation) of investments during the year 18,900 929,109 471,689 (623,558) --------- ------------ ----------- ----------- Net gain (loss) on investments 46,792 937,901 990,050 (35,183) --------- ------------ ----------- ----------- Net increase (decrease) in net assets resulting from operations $67,910 $2,322,954 $919,579 $(134,110) ========= ============ =========== =========== JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST EQUITY INDEX GOVERNMENT BOND INTREPID GROWTH PORTFOLIO - 1 PORTFOLIO - 1 PORTFOLIO - 1 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------- INVESTMENT INCOME: Dividends $537,801 $922,043 $687 ------------ ------------ --------- EXPENSE: Mortality and Expense Risk and Administrative charges (641,888) (308,436) (13,044) ------------ ------------ --------- Net investment income (loss) (104,087) 613,607 (12,357) ------------ ------------ --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 24,880 1,364 824 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 1,245,495 532,443 64,005 ------------ ------------ --------- Net gain (loss) on investments 1,270,375 533,807 64,829 ------------ ------------ --------- Net increase (decrease) in net assets resulting from operations $1,166,288 $1,147,414 $52,472 ============ ============ =========
SA-61 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST DIVERSIFIED MID CAP DIVERSIFIED MID CAP JENNISON 20/20 GROWTH PORTFOLIO - I VALUE PORTFOLIO - I FOCUS PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $210,601 $440 ------------ ------------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (229,764) (185,386) (5,877) ------------ ------------- --------- Net investment income (loss) (229,764) 25,215 (5,437) ------------ ------------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 66,569 22,996 10,387 Net realized gain on distributions 2,225,004 5,003,545 34,802 Net unrealized appreciation (depreciation) of investments during the year (114,896) (5,141,397) (13,114) ------------ ------------- --------- Net gain (loss) on investments 2,176,677 (114,856) 32,075 ------------ ------------- --------- Net increase (decrease) in net assets resulting from operations $1,946,913 $(89,641) $26,638 ============ ============= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-62 -------------------------------------------------------------------------------
LEGG MASON PRUDENTIAL PARTNERS VARIABLE JENNISON PRUDENTIAL SERIES INTERNATIONAL CAPITAL AND INCOME PORTFOLIO VALUE PORTFOLIO GROWTH PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (H) SUB-ACCOUNT (I)(J)(K) ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $ -- $2,633 $42 $7,987 --------- --------- -------- ----------- EXPENSE: Mortality and Expense Risk and Administrative charges (11,101) (4,466) (373) (5,276) --------- --------- -------- ----------- Net investment income (loss) (11,101) (1,833) (331) 2,711 --------- --------- -------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 29,770 5,603 4,200 57,303 Net realized gain on distributions -- 29,859 1,617 58,930 Net unrealized appreciation (depreciation) of investments during the year 44,325 (30,952) (1,159) (107,835) --------- --------- -------- ----------- Net gain (loss) on investments 74,095 4,510 4,658 8,398 --------- --------- -------- ----------- Net increase (decrease) in net assets resulting from operations $62,994 $2,677 $4,327 $11,109 ========= ========= ======== =========== LEGG MASON LEGG MASON PARTNERS VARIABLE LEGG MASON PARTNERS VARIABLE GLOBAL HIGH PARTNERS VARIABLE FUNDAMENTAL VALUE YIELD BOND INVESTORS PORTFOLIO PORTFOLIO PORTFOLIO SUB-ACCOUNT (K)(L) SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------- INVESTMENT INCOME: Dividends $38,687 $10,417 $11,359 ----------- --------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (39,537) (2,634) (13,591) ----------- --------- --------- Net investment income (loss) (850) 7,783 (2,232) ----------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 618,389 11,225 20,114 Net realized gain on distributions 267,653 701 24,216 Net unrealized appreciation (depreciation) of investments during the year (869,529) (19,865) (15,669) ----------- --------- --------- Net gain (loss) on investments 16,513 (7,939) 28,661 ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $15,663 $(156) $26,429 =========== ========= =========
(h) Formerly SP William Blair International Growth Portfolio. Change effective January 31, 2007. (i) Effective April 27, 2007, Legg Mason Partners Variable Total Return Portfolio merged with Legg Mason Partners Variable Multiple Discipline Portfolio -- Balanced All Cap Growth and Value. (j) Formerly Legg Mason Partners Variable Multiple Discipline Portfolio -- Balanced All Cap Growth and Value. Change effective April 27, 2007. (k) From inception May 1, 2007 to December 31, 2007. (l) Effective April 28, 2007, Legg Mason Partners Variable All Cap Portfolio merged with Legg Mason Partners Variable Fundamental Value Portfolio. SA-63 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE VT ASSET GROWTH AND INCOME COMSTOCK ALLOCATION FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $1,095 $2,939 $306 -------- --------- ------ EXPENSE: Mortality and Expense Risk and Administrative charges (3,752) (7,505) (251) -------- --------- ------ Net investment income (loss) (2,657) (4,566) 55 -------- --------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions (11) 79 1 Net realized gain on distributions 2,949 4,112 210 Net unrealized appreciation (depreciation) of investments during the year (9,833) (29,662) 468 -------- --------- ------ Net gain (loss) on investments (6,895) (25,471) 679 -------- --------- ------ Net increase (decrease) in net assets resulting from operations $(9,552) $(30,037) $734 ======== ========= ======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-64 -------------------------------------------------------------------------------
WELLS FARGO WELLS FARGO ADVANTAGE VT WELLS FARGO WELLS FARGO ADVANTAGE VT TOTAL RETURN ADVANTAGE VT EQUITY ADVANTAGE VT C&B INTERNATIONAL BOND FUND INCOME FUND LARGE CAP VALUE FUND CORE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (M) SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $381 $485 $21 $1 ------ -------- ----- ------- EXPENSE: Mortality and Expense Risk and Administrative charges (112) (488) (10) (201) ------ -------- ----- ------- Net investment income (loss) 269 (3) 11 (200) ------ -------- ----- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions -- (20) -- 83 Net realized gain on distributions -- 2,116 -- 775 Net unrealized appreciation (depreciation) of investments during the year 120 (1,714) (6) 419 ------ -------- ----- ------- Net gain (loss) on investments 120 382 (6) 1,277 ------ -------- ----- ------- Net increase (decrease) in net assets resulting from operations $389 $379 $5 $1,077 ====== ======== ===== ======= WELLS FARGO WELLS FARGO STI CLASSIC VT ADVANTAGE VT LARGE ADVANTAGE VT SMALL LARGE CAP GROWTH COMPANY GROWTH FUND CAP GROWTH FUND STOCK FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (N) -------------------------- -------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ -- $31,064 ------ ------ ------------ EXPENSE: Mortality and Expense Risk and Administrative charges (161) (127) (153,591) ------ ------ ------------ Net investment income (loss) (161) (127) (122,527) ------ ------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 47 169 150,978 Net realized gain on distributions -- 984 441,166 Net unrealized appreciation (depreciation) of investments during the year 602 (209) 458,970 ------ ------ ------------ Net gain (loss) on investments 649 944 1,051,114 ------ ------ ------------ Net increase (decrease) in net assets resulting from operations $488 $817 $928,587 ====== ====== ============
(m) Funded as of November 27, 2007. (n) Formerly STI Classic VT Capital Appreciation Fund. Change effective May 31, 2007. SA-65 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
STI CLASSIC VT STI CLASSIC VT STI CLASSIC VT LARGE CAP CORE MID-CAP CORE LARGE CAP VALUE EQUITY FUND EQUITY FUND EQUITY FUND SUB-ACCOUNT (O) SUB-ACCOUNT (P) SUB-ACCOUNT ------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $22,575 $4,539 $78,352 ----------- ----------- --------- EXPENSE: Mortality and Expense Risk and Administrative charges (39,274) (41,069) (97,262) ----------- ----------- --------- Net investment income (loss) (16,699) (36,530) (18,910) ----------- ----------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions 155,977 38,293 65,320 Net realized gain on distributions 120,990 302,511 -- Net unrealized appreciation (depreciation) of investments during the year (268,742) (250,139) (10,078) ----------- ----------- --------- Net gain (loss) on investments 8,225 90,665 55,242 ----------- ----------- --------- Net increase (decrease) in net assets resulting from operations $(8,474) $54,135 $36,332 =========== =========== =========
(o) Formerly STI Classic VT Large Cap Relative Value Fund. Change effective May 31, 2007. (p) Formerly STI Classic VT Mid-Cap Equity Fund. Change effective May 31, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-66 ------------------------------------------------------------------------------- [This page intentionally left blank] SA-67 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
AIM V.I. AIM V.I. BASIC CAPITAL AIM V.I. VALUE FUND APPRECIATION FUND CORE EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(1,171,157) $(776,811) $(974,037) Net realized gain (loss) on security transactions 3,314,298 898,208 1,930,054 Net realized gain on distributions 4,751,678 -- -- Net unrealized appreciation (depreciation) of investments during the year (6,879,867) 3,793,937 6,567,795 -------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations 14,952 3,915,334 7,523,812 -------------- ------------- -------------- UNIT TRANSACTIONS: Purchases 3,225,728 1,686,865 3,035,848 Net transfers (7,130,378) (3,614,791) (5,891,460) Surrenders for benefit payments and fees (9,374,499) (5,235,986) (9,471,733) Net annuity transactions (29,524) -- (4,266) -------------- ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (13,308,673) (7,163,912) (12,331,611) -------------- ------------- -------------- Net increase (decrease) in net assets (13,293,721) (3,248,578) (4,807,799) NET ASSETS: Beginning of year 95,272,920 42,958,520 123,092,537 -------------- ------------- -------------- End of year $81,979,199 $39,709,942 $118,284,738 ============== ============= ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-68 -------------------------------------------------------------------------------
AIM V.I. AIM V.I. AIM V.I. AIM V.I. GOVERNMENT HIGH INTERNATIONAL MID CAP CORE SECURITIES FUND YIELD FUND GROWTH FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $7,366,490 $66,509 $(687,584) $(1,981,820) Net realized gain (loss) on security transactions 174,476 24,754 1,561,880 1,256,125 Net realized gain on distributions -- -- -- 1,726,513 Net unrealized appreciation (depreciation) of investments during the year 5,068,661 (98,175) 4,430,573 7,604,745 -------------- ------------ -------------- -------------- Net increase (decrease) in net assets resulting from operations 12,609,627 (6,912) 5,304,869 8,605,563 -------------- ------------ -------------- -------------- UNIT TRANSACTIONS: Purchases 47,957,638 16,270 26,048,476 6,609,028 Net transfers 45,661,523 (69,088) 17,416,223 (3,907,374) Surrenders for benefit payments and fees (21,335,229) (241,646) (17,848,561) (8,849,937) Net annuity transactions (15,551) -- 1,285 (38,905) -------------- ------------ -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions 72,268,381 (294,464) 25,617,423 (6,187,188) -------------- ------------ -------------- -------------- Net increase (decrease) in net assets 84,878,008 (301,376) 30,922,292 2,418,375 NET ASSETS: Beginning of year 230,584,280 1,611,029 45,037,237 116,407,263 -------------- ------------ -------------- -------------- End of year $315,462,288 $1,309,653 $75,959,529 $118,825,638 ============== ============ ============== ============== AIM V.I. AIM V.I. AIM V.I. SMALL CAP LARGE CAP CAPITAL EQUITY FUND GROWTH FUND DEVELOPMENT FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (A) ----------------------------- -------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(456,429) $(433,037) $(182) Net realized gain (loss) on security transactions 19,969 507,296 (1) Net realized gain on distributions 900,342 -- 7,480 Net unrealized appreciation (depreciation) of investments during the year (46,345) 2,828,997 (7,775) ------------- ------------- ---------- Net increase (decrease) in net assets resulting from operations 417,537 2,903,256 (478) ------------- ------------- ---------- UNIT TRANSACTIONS: Purchases 8,761,799 1,649,449 51,982 Net transfers 5,163,493 279,267 137,650 Surrenders for benefit payments and fees (1,163,296) (2,843,508) (1) Net annuity transactions (719) -- -- ------------- ------------- ---------- Net increase (decrease) in net assets resulting from unit transactions 12,761,277 (914,792) 189,631 ------------- ------------- ---------- Net increase (decrease) in net assets 13,178,814 1,988,464 189,153 NET ASSETS: Beginning of year 19,892,773 22,408,790 -- ------------- ------------- ---------- End of year $33,071,587 $24,397,254 $189,153 ============= ============= ==========
(a) From inception November 12, 2007 to December 31, 2007. SA-69 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GLOBAL GROWTH AND ASSET GLOBAL BOND FUND INCOME FUND ALLOCATION FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $539,085 $516,669 $1,887,097 Net realized gain (loss) on security transactions 19,979 75,524 2,145,813 Net realized gain on distributions -- 4,112,634 16,571,433 Net unrealized appreciation (depreciation) of investments during the year 577,059 3,186,260 1,541,116 ------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 1,136,123 7,891,087 22,145,459 ------------- -------------- -------------- UNIT TRANSACTIONS: Purchases 6,276,855 39,100,344 34,003,409 Net transfers 21,251,004 47,437,697 11,156,323 Surrenders for benefit payments and fees (696,613) (3,287,879) (38,553,292) Net annuity transactions -- (8,941) 20,371 ------------- -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions 26,831,246 83,241,221 6,626,811 ------------- -------------- -------------- Net increase (decrease) in net assets 27,967,369 91,132,308 28,772,270 NET ASSETS: Beginning of year 2,888,001 43,380,082 472,999,970 ------------- -------------- -------------- End of year $30,855,370 $134,512,390 $501,772,240 ============= ============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-70 -------------------------------------------------------------------------------
AMERICAN FUNDS AMERICAN BLUE CHIP INCOME AMERICAN FUNDS AMERICAN FUNDS FUNDS AND GROWTH FUND BOND FUND GLOBAL GROWTH FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $1,707,962 $20,648,796 $1,444,505 $(12,177,973) Net realized gain (loss) on security transactions 2,582,979 253,528 2,229,133 10,559,242 Net realized gain on distributions 7,830,862 -- 5,755,377 83,188,818 Net unrealized appreciation (depreciation) of investments during the year (11,330,772) (15,869,276) 7,352,756 33,495,714 -------------- -------------- -------------- ---------------- Net increase (decrease) in net assets resulting from operations 791,031 5,033,048 16,781,771 115,065,801 -------------- -------------- -------------- ---------------- UNIT TRANSACTIONS: Purchases 18,228,692 30,808,775 18,675,589 150,942,396 Net transfers (5,410,192) 34,910,080 8,247,453 24,183,891 Surrenders for benefit payments and fees (21,078,312) (27,779,109) (11,690,791) (86,873,936) Net annuity transactions 43 35,841 (2,154) (47,856) -------------- -------------- -------------- ---------------- Net increase (decrease) in net assets resulting from unit transactions (8,259,769) 37,975,587 15,230,097 88,204,495 -------------- -------------- -------------- ---------------- Net increase (decrease) in net assets (7,468,738) 43,008,635 32,011,868 203,270,296 NET ASSETS: Beginning of year 241,089,614 322,597,640 126,989,389 1,091,227,384 -------------- -------------- -------------- ---------------- End of year $233,620,876 $365,606,275 $159,001,257 $1,294,497,680 ============== ============== ============== ================ AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GROWTH-INCOME FUND INTERNATIONAL FUND NEW WORLD FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,825,932) $(792,504) $1,725,052 Net realized gain (loss) on security transactions 9,024,902 2,155,488 1,024,442 Net realized gain on distributions 37,947,583 16,916,884 6,890,165 Net unrealized appreciation (depreciation) of investments during the year (10,935,887) 38,353,609 18,618,524 ---------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 33,210,666 56,633,477 28,258,183 ---------------- -------------- -------------- UNIT TRANSACTIONS: Purchases 136,265,996 41,046,143 19,076,818 Net transfers 18,167,306 7,941,237 14,083,853 Surrenders for benefit payments and fees (88,887,423) (30,542,119) (6,646,381) Net annuity transactions (148,819) (23,554) 3,156 ---------------- -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions 65,397,060 18,421,707 26,517,446 ---------------- -------------- -------------- Net increase (decrease) in net assets 98,607,726 75,055,184 54,775,629 NET ASSETS: Beginning of year 1,078,403,441 307,285,750 86,222,899 ---------------- -------------- -------------- End of year $1,177,011,167 $382,340,934 $140,998,528 ================ ============== ==============
SA-71 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
AMERICAN FUNDS COLUMBIA COLUMBIA GLOBAL SMALL ASSET ALLOCATION SMALL COMPANY CAPITALIZATION FUND FUND VS GROWTH FUND VS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $1,589,458 $63,684 $(441,966) Net realized gain (loss) on security transactions 1,382,287 4,668 241,360 Net realized gain on distributions 10,737,599 740,842 -- Net unrealized appreciation (depreciation) of investments during the year 9,556,013 (274,516) 2,525,994 -------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 23,265,357 534,678 2,325,388 -------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 16,532,981 40,317 119,683 Net transfers 3,300,187 134,774 (862,110) Surrenders for benefit payments and fees (11,838,374) (1,403,211) (3,558,008) Net annuity transactions (3,715) -- (16,459) -------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions 7,991,079 (1,228,120) (4,316,894) -------------- ------------- ------------- Net increase (decrease) in net assets 31,256,436 (693,442) (1,991,506) NET ASSETS: Beginning of year 121,197,503 8,516,577 21,743,636 -------------- ------------- ------------- End of year $152,453,939 $7,823,135 $19,752,130 ============== ============= =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-72 -------------------------------------------------------------------------------
COLUMBIA EVERGREEN VA LARGE CAP EVERGREEN VA EVERGREEN VA INTERNATIONAL VALUE FUND VS BALANCED FUND GROWTH FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(235,621) $15,730 $(38,081) $22,425 Net realized gain (loss) on security transactions 358,181 740 4,089 (1,553) Net realized gain on distributions 2,552,725 -- 424,741 159,888 Net unrealized appreciation (depreciation) of investments during the year (2,296,772) (1,388) (245,370) 7,905 ------------- ---------- ------------ ------------ Net increase (decrease) in net assets resulting from operations 378,513 15,082 145,379 188,665 ------------- ---------- ------------ ------------ UNIT TRANSACTIONS: Purchases 209,493 286,292 524,639 655,221 Net transfers 151,582 78,839 292,885 225,005 Surrenders for benefit payments and fees (6,855,935) (12,708) (76,065) (76,139) Net annuity transactions (74,326) -- (592) -- ------------- ---------- ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions (6,569,186) 352,423 740,867 804,087 ------------- ---------- ------------ ------------ Net increase (decrease) in net assets (6,190,673) 367,505 886,246 992,752 NET ASSETS: Beginning of year 39,247,262 365,970 1,521,081 1,304,808 ------------- ---------- ------------ ------------ End of year $33,056,589 $733,475 $2,407,327 $2,297,560 ============= ========== ============ ============ EVERGREEN VA EVERGREEN VA EVERGREEN VA SPECIAL FUNDAMENTAL OMEGA FUND VALUES FUND LARGE CAP FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- -------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,869) $(32,979) $(6,049) Net realized gain (loss) on security transactions (26,033) 5,838 9,832 Net realized gain on distributions -- 2,522,108 74,224 Net unrealized appreciation (depreciation) of investments during the year 21,339 (4,411,901) (23,094) ---------- ------------- ---------- Net increase (decrease) in net assets resulting from operations (7,563) (1,916,934) 54,913 ---------- ------------- ---------- UNIT TRANSACTIONS: Purchases 112,960 3,706,199 240,670 Net transfers 27,050 2,616,991 (39,374) Surrenders for benefit payments and fees (10,700) (635,976) (9,097) Net annuity transactions -- (496) -- ---------- ------------- ---------- Net increase (decrease) in net assets resulting from unit transactions 129,310 5,686,718 192,199 ---------- ------------- ---------- Net increase (decrease) in net assets 121,747 3,769,784 247,112 NET ASSETS: Beginning of year 132,929 14,900,377 739,702 ---------- ------------- ---------- End of year $254,676 $18,670,161 $986,814 ========== ============= ==========
SA-73 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN FRANKLIN RISING DIVIDENDS INCOME LARGE CAP GROWTH SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $2,258,861 $19,790,874 $(958,031) Net realized gain (loss) on security transactions 121,480 532,965 393,868 Net realized gain on distributions 5,543,192 7,694,797 654,351 Net unrealized appreciation (depreciation) of investments during the year (27,575,354) (10,860,054) 3,432,448 -------------- ----------------- ------------- Net increase (decrease) in net assets resulting from operations (19,651,821) 17,158,582 3,522,636 -------------- ----------------- ------------- UNIT TRANSACTIONS: Purchases 82,090,247 211,165,726 7,883,305 Net transfers 31,807,691 112,576,654 4,746,778 Surrenders for benefit payments and fees (22,154,055) (73,690,540) (5,941,368) Net annuity transactions 9,414 68,434 (1,900) -------------- ----------------- ------------- Net increase (decrease) in net assets resulting from unit transactions 91,753,297 250,120,274 6,686,815 -------------- ----------------- ------------- Net increase (decrease) in net assets 72,101,476 267,278,856 10,209,451 NET ASSETS: Beginning of year 330,849,672 1,053,591,906 76,643,302 -------------- ----------------- ------------- End of year $402,951,148 $1,320,870,762 $86,852,753 ============== ================= =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-74 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN SMALL-MID CAP FRANKLIN FRANKLIN GLOBAL REAL ESTATE GROWTH SMALL CAP VALUE STRATEGIC INCOME SECURITIES FUND SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT (B) SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $46,177 $(2,284,159) $(131) $6,957,397 Net realized gain (loss) on security transactions 322,778 1,496,033 (92) 158,211 Net realized gain on distributions 439,491 8,924,791 -- 587,747 Net unrealized appreciation (depreciation) of investments during the year (2,234,298) 2,240,702 (2,228) 825,863 ------------- -------------- ---------- -------------- Net increase (decrease) in net assets resulting from operations (1,425,852) 10,377,367 (2,451) 8,529,218 ------------- -------------- ---------- -------------- UNIT TRANSACTIONS: Purchases 13,202 12,190,154 34,299 24,033,666 Net transfers (514,814) 2,530,923 117,908 26,078,522 Surrenders for benefit payments and fees (940,520) (9,752,300) (166) (16,556,686) Net annuity transactions 552 (3,021) -- (9,112) ------------- -------------- ---------- -------------- Net increase (decrease) in net assets resulting from unit transactions (1,441,580) 4,965,756 152,041 33,546,390 ------------- -------------- ---------- -------------- Net increase (decrease) in net assets (2,867,432) 15,343,123 149,590 42,075,608 NET ASSETS: Beginning of year 7,485,025 113,474,132 -- 183,648,300 ------------- -------------- ---------- -------------- End of year $4,617,593 $128,817,255 $149,590 $225,723,908 ============= ============== ========== ============== TEMPLETON TEMPLETON MUTUAL SHARES DEVELOPING MARKETS FOREIGN SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- --------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,623,769) $491,554 $545,493 Net realized gain (loss) on security transactions 2,124,666 434,535 2,233,837 Net realized gain on distributions 28,473,401 5,746,159 12,708,896 Net unrealized appreciation (depreciation) of investments during the year (18,985,766) 11,023,732 19,272,853 -------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations 8,988,532 17,695,980 34,761,079 -------------- ------------- -------------- UNIT TRANSACTIONS: Purchases 111,793,509 10,876,889 24,303,849 Net transfers 37,898,853 7,860,705 (3,386,953) Surrenders for benefit payments and fees (53,393,110) (4,515,563) (18,807,331) Net annuity transactions 55,328 1,589 (10) -------------- ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions 96,354,580 14,223,620 2,109,555 -------------- ------------- -------------- Net increase (decrease) in net assets 105,343,112 31,919,600 36,870,634 NET ASSETS: Beginning of year 718,948,540 64,695,499 256,910,028 -------------- ------------- -------------- End of year $824,291,652 $96,615,099 $293,780,662 ============== ============= ==============
(a) From inception November 12, 2007 to December 31, 2007. (b) Formerly Franklin Real Estate Fund. Change effective May 1, 2007. SA-75 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
TEMPLETON TEMPLETON GLOBAL ASSET GROWTH MUTUAL DISCOVERY ALLOCATION FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $579,415 $(2,681,706) $(592,618) Net realized gain (loss) on security transactions 29,330 618,529 199,390 Net realized gain on distributions 831,891 25,482,518 1,950,839 Net unrealized appreciation (depreciation) of investments during the year (1,157,122) (22,113,561) 12,284,970 ------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 283,514 1,305,780 13,842,581 ------------- -------------- -------------- UNIT TRANSACTIONS: Purchases 36,374 85,597,126 35,644,729 Net transfers 36,704 20,161,436 23,533,673 Surrenders for benefit payments and fees (519,089) (36,192,463) (11,107,688) Net annuity transactions (873) (18,602) 2,615 ------------- -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (446,884) 69,547,497 48,073,329 ------------- -------------- -------------- Net increase (decrease) in net assets (163,370) 70,853,277 61,915,910 NET ASSETS: Beginning of year 3,677,276 545,511,343 131,173,703 ------------- -------------- -------------- End of year $3,513,906 $616,364,620 $193,089,613 ============= ============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-76 -------------------------------------------------------------------------------
FRANKLIN FRANKLIN HARTFORD HARTFORD FLEX CAP GROWTH LARGE CAP VALUE ADVISERS TOTAL RETURN BOND SECURITIES FUND SECURITIES FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(304,096) $(911) $(68,663) $2,358,262 Net realized gain (loss) on security transactions 59,995 20,384 48,469 (257,245) Net realized gain on distributions -- 4,350 3,481,821 -- Net unrealized appreciation (depreciation) of investments during the year 2,194,616 (241,829) (1,821,233) (196,219) ------------- ------------ ------------- -------------- Net increase (decrease) in net assets resulting from operations 1,950,515 (218,006) 1,640,394 1,904,798 ------------- ------------ ------------- -------------- UNIT TRANSACTIONS: Purchases 3,015,572 1,720,855 89,721 346,678 Net transfers 3,626,282 1,053,249 (1,333,530) 4,909,107 Surrenders for benefit payments and fees (1,015,585) (539,991) (7,305,122) (12,477,469) Net annuity transactions 11,545 -- (20,319) (15,286) ------------- ------------ ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions 5,637,814 2,234,113 (8,569,250) (7,236,970) ------------- ------------ ------------- -------------- Net increase (decrease) in net assets 7,588,329 2,016,107 (6,928,856) (5,332,172) NET ASSETS: Beginning of year 15,463,988 6,969,495 38,308,251 86,839,290 ------------- ------------ ------------- -------------- End of year $23,052,317 $8,985,602 $31,379,395 $81,507,118 ============= ============ ============= ============== HARTFORD HARTFORD HARTFORD CAPITAL APPRECIATION DIVIDEND AND GROWTH FUNDAMENTAL GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (C) ----------------------------- -------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,499,265) $(430,075) $(110) Net realized gain (loss) on security transactions 2,738,623 2,015,892 17 Net realized gain on distributions 12,539,102 4,453,240 739 Net unrealized appreciation (depreciation) of investments during the year (3,021,107) (2,475,544) 368 ------------------- -------------- ------- Net increase (decrease) in net assets resulting from operations 10,757,353 3,563,513 1,014 ------------------- -------------- ------- UNIT TRANSACTIONS: Purchases 223,551 221,487 -- Net transfers (1,877,504) (1,138,680) 385 Surrenders for benefit payments and fees (14,212,715) (9,381,066) (528) Net annuity transactions (29,364) -- -- ------------------- -------------- ------- Net increase (decrease) in net assets resulting from unit transactions (15,896,032) (10,298,259) (143) ------------------- -------------- ------- Net increase (decrease) in net assets (5,138,679) (6,734,746) 871 NET ASSETS: Beginning of year 80,522,925 62,286,507 7,731 ------------------- -------------- ------- End of year $75,384,246 $55,551,761 $8,602 =================== ============== =======
(c) Formerly Hartford Focus HLS Fund. Change effective July 27, 2007. SA-77 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD GLOBAL GLOBAL ADVISERS GLOBAL COMMUNICATIONS FINANCIAL SERVICES HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,571) $(49) $(962) Net realized gain (loss) on security transactions (2,295) 1 6,913 Net realized gain on distributions 21,346 1,270 13,761 Net unrealized appreciation (depreciation) of investments during the year 23,949 107 (25,249) ---------- ------- --------- Net increase (decrease) in net assets resulting from operations 40,429 1,329 (5,537) ---------- ------- --------- UNIT TRANSACTIONS: Purchases -- -- -- Net transfers 62 440 5 Surrenders for benefit payments and fees (79,307) (8) (19,641) Net annuity transactions -- -- -- ---------- ------- --------- Net increase (decrease) in net assets resulting from unit transactions (79,245) 432 (19,636) ---------- ------- --------- Net increase (decrease) in net assets (38,816) 1,761 (25,173) NET ASSETS: Beginning of year 324,965 5,979 83,637 ---------- ------- --------- End of year $286,149 $7,740 $58,464 ========== ======= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-78 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD GLOBAL HEALTH GLOBAL GROWTH GLOBAL TECHNOLOGY DISCIPLINED EQUITY HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT (D) SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(12,758) $(31,172) $(7,033) $(6,266) Net realized gain (loss) on security transactions 36,012 105,820 (51,650) 15,054 Net realized gain on distributions 108,206 225,920 -- 2,877 Net unrealized appreciation (depreciation) of investments during the year (87,681) 160,341 118,010 45,751 ----------- ------------ ----------- ----------- Net increase (decrease) in net assets resulting from operations 43,779 460,909 59,327 57,416 ----------- ------------ ----------- ----------- UNIT TRANSACTIONS: Purchases -- 4,421 -- 677 Net transfers (32,215) (87,948) 5,685 27,438 Surrenders for benefit payments and fees (265,775) (789,773) (191,560) (168,935) Net annuity transactions -- -- -- -- ----------- ------------ ----------- ----------- Net increase (decrease) in net assets resulting from unit transactions (297,990) (873,300) (185,875) (140,820) ----------- ------------ ----------- ----------- Net increase (decrease) in net assets (254,211) (412,391) (126,548) (83,404) NET ASSETS: Beginning of year 974,081 2,449,492 529,139 923,356 ----------- ------------ ----------- ----------- End of year $719,870 $2,037,101 $402,591 $839,952 =========== ============ =========== =========== HARTFORD HARTFORD HARTFORD GROWTH GROWTH OPPORTUNITIES HIGH YIELD HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,123) $(2,704) $25,510 Net realized gain (loss) on security transactions 1,460 1,568 (1,291) Net realized gain on distributions 5,467 34,151 -- Net unrealized appreciation (depreciation) of investments during the year 5,139 6,859 (19,577) --------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 10,943 39,874 4,642 --------- ---------- ---------- UNIT TRANSACTIONS: Purchases 127 680 -- Net transfers 4,326 47,085 12,667 Surrenders for benefit payments and fees (24,618) (41,032) (89,188) Net annuity transactions -- -- -- --------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions (20,165) 6,733 (76,521) --------- ---------- ---------- Net increase (decrease) in net assets (9,222) 46,607 (71,879) NET ASSETS: Beginning of year 90,253 172,869 490,775 --------- ---------- ---------- End of year $81,031 $219,476 $418,896 ========= ========== ==========
(d) Formerly Hartford Global Leaders HLS Fund. Change effective July 27, 2007. SA-79 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD INTERNATIONAL INDEX INTERNATIONAL GROWTH SMALL COMPANY HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT (E) SUB-ACCOUNT ----------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(5,165) $(5,395) $(7) Net realized gain (loss) on security transactions (51,944) 29,906 101 Net realized gain on distributions 54,955 73,583 34,358 Net unrealized appreciation (depreciation) of investments during the year 63,366 (3,166) (19,790) ------------ ----------- ---------- Net increase (decrease) in net assets resulting from operations 61,212 94,928 14,662 ------------ ----------- ---------- UNIT TRANSACTIONS: Purchases 1,800 932 115 Net transfers (193,804) 26,614 24,901 Surrenders for benefit payments and fees (477,972) (276,980) (33,171) Net annuity transactions -- -- -- ------------ ----------- ---------- Net increase (decrease) in net assets resulting from unit transactions (669,976) (249,434) (8,155) ------------ ----------- ---------- Net increase (decrease) in net assets (608,764) (154,506) 6,507 NET ASSETS: Beginning of year 1,553,347 562,048 208,527 ------------ ----------- ---------- End of year $944,583 $407,542 $215,034 ============ =========== ==========
(e) Formerly Hartford International Capital Appreciation HLS Fund. Change effective July 27, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-80 -------------------------------------------------------------------------------
HARTFORD INTERNATIONAL HARTFORD HARTFORD HARTFORD OPPORTUNITIES MIDCAP MIDCAP VALUE MONEY MARKET HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(121,404) $(59,312) $(6,196) $6,388,102 Net realized gain (loss) on security transactions 670,943 297,198 17,635 -- Net realized gain on distributions 1,989,956 582,191 80,025 -- Net unrealized appreciation (depreciation) of investments during the year (248,095) (123,907) (77,174) (10) ------------- ------------- ----------- -------------- Net increase (decrease) in net assets resulting from operations 2,291,400 696,170 14,290 6,388,092 ------------- ------------- ----------- -------------- UNIT TRANSACTIONS: Purchases 61,607 6,000 -- 27,437,802 Net transfers 128,047 (84,067) (20,419) 174,324,045 Surrenders for benefit payments and fees (2,322,020) (2,413,802) (133,527) (99,982,404) Net annuity transactions (604) -- -- 32,604 ------------- ------------- ----------- -------------- Net increase (decrease) in net assets resulting from unit transactions (2,132,970) (2,491,869) (153,946) 101,812,047 ------------- ------------- ----------- -------------- Net increase (decrease) in net assets 158,430 (1,795,699) (139,656) 108,200,139 NET ASSETS: Beginning of year 10,553,826 5,406,417 529,422 163,266,318 ------------- ------------- ----------- -------------- End of year $10,712,256 $3,610,718 $389,766 $271,466,457 ============= ============= =========== ============== HARTFORD HARTFORD HARTFORD MORTGAGE SECURITIES SMALL COMPANY SMALLCAP GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- -------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $22,900 $(182,878) $(2,490) Net realized gain (loss) on security transactions (1,215) 107,340 (365) Net realized gain on distributions -- 1,312,375 12,187 Net unrealized appreciation (depreciation) of investments during the year (12,627) (172,346) (14,782) ---------- ------------- ---------- Net increase (decrease) in net assets resulting from operations 9,058 1,064,491 (5,450) ---------- ------------- ---------- UNIT TRANSACTIONS: Purchases -- 14,129 745 Net transfers 214,486 (39,498) 7,838 Surrenders for benefit payments and fees (54,943) (1,912,477) (27,898) Net annuity transactions -- -- -- ---------- ------------- ---------- Net increase (decrease) in net assets resulting from unit transactions 159,543 (1,937,846) (19,315) ---------- ------------- ---------- Net increase (decrease) in net assets 168,601 (873,355) (24,765) NET ASSETS: Beginning of year 418,977 9,451,574 176,351 ---------- ------------- ---------- End of year $587,578 $8,578,219 $151,586 ========== ============= ==========
SA-81 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
HARTFORD HARTFORD U.S. GOVERNMENT HARTFORD STOCK SECURITIES VALUE HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(360,279) $13,447 $(1,548) Net realized gain (loss) on security transactions 647,632 1,953 23,752 Net realized gain on distributions 3,912,998 -- 21,296 Net unrealized appreciation (depreciation) of investments during the year (2,977,974) 1,248 (26,434) ------------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 1,222,377 16,648 17,066 ------------- ----------- ----------- UNIT TRANSACTIONS: Purchases 97,076 471 -- Net transfers (836,935) 23,491 (22,868) Surrenders for benefit payments and fees (5,291,736) (106,652) (85,448) Net annuity transactions -- -- -- ------------- ----------- ----------- Net increase (decrease) in net assets resulting from unit transactions (6,031,595) (82,690) (108,316) ------------- ----------- ----------- Net increase (decrease) in net assets (4,809,218) (66,042) (91,250) NET ASSETS: Beginning of year 30,943,820 684,350 255,994 ------------- ----------- ----------- End of year $26,134,602 $618,308 $164,744 ============= =========== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-82 -------------------------------------------------------------------------------
HARTFORD HARTFORD HUNTINGTON VA HUNTINGTON VA VALUE OPPORTUNITIES EQUITY INCOME INCOME DIVIDEND HLS FUND HLS FUND EQUITY FUND CAPTURE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(1,854) $(8) $(2,761) $102,418 Net realized gain (loss) on security transactions 5,916 3,718 20,387 14,009 Net realized gain on distributions 39,370 1,893 70,741 345,714 Net unrealized appreciation (depreciation) of investments during the year (59,949) (2,411) (134,852) (1,180,471) ---------- --------- ------------ ------------- Net increase (decrease) in net assets resulting from operations (16,517) 3,192 (46,485) (718,330) ---------- --------- ------------ ------------- UNIT TRANSACTIONS: Purchases 775 -- 730,219 3,041,234 Net transfers (23,900) 39,131 208,514 793,085 Surrenders for benefit payments and fees (50,035) (39,873) (252,262) (549,070) Net annuity transactions -- -- -- -- ---------- --------- ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions (73,160) (742) 686,471 3,285,249 ---------- --------- ------------ ------------- Net increase (decrease) in net assets (89,677) 2,450 639,986 2,566,919 NET ASSETS: Beginning of year 334,880 54,906 1,799,028 5,823,551 ---------- --------- ------------ ------------- End of year $245,203 $57,356 $2,439,014 $8,390,470 ========== ========= ============ ============= HUNTINGTON VA HUNTINGTON VA MID CORP HUNTINGTON VA GROWTH FUND AMERICA FUND NEW ECONOMY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ---------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(21,239) $(63,570) $(67,704) Net realized gain (loss) on security transactions 15,700 46,516 34,482 Net realized gain on distributions 186 52,384 72,933 Net unrealized appreciation (depreciation) of investments during the year 188,302 226,354 308,888 ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 182,949 261,684 348,599 ------------ ------------ ------------ UNIT TRANSACTIONS: Purchases 851,173 1,389,344 1,744,269 Net transfers 259,440 273,712 329,184 Surrenders for benefit payments and fees (163,235) (402,783) (229,166) Net annuity transactions -- -- -- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions 947,378 1,260,273 1,844,287 ------------ ------------ ------------ Net increase (decrease) in net assets 1,130,327 1,521,957 2,192,886 NET ASSETS: Beginning of year 956,569 3,792,886 2,915,666 ------------ ------------ ------------ End of year $2,086,896 $5,314,843 $5,108,552 ============ ============ ============
SA-83 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
HUNTINGTON VA HUNTINGTON VA ROTATING INTERNATIONAL HUNTINGTON VA MARKETS FUND EQUITY FUND MACRO 100 FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(20,139) $(41,518) $(15,815) Net realized gain (loss) on security transactions 23,756 3,063 3,296 Net realized gain on distributions 81,029 4,358 199,643 Net unrealized appreciation (depreciation) of investments during the year 20,150 317,622 (254,699) ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 104,796 283,525 (67,575) ------------ ------------ ------------ UNIT TRANSACTIONS: Purchases 655,786 2,052,768 538,571 Net transfers 130,484 887,979 107,313 Surrenders for benefit payments and fees (100,065) (166,022) (130,405) Net annuity transactions -- -- -- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions 686,205 2,774,725 515,479 ------------ ------------ ------------ Net increase (decrease) in net assets 791,001 3,058,250 447,904 NET ASSETS: Beginning of year 1,387,064 1,140,989 903,540 ------------ ------------ ------------ End of year $2,178,065 $4,199,239 $1,351,444 ============ ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-84 -------------------------------------------------------------------------------
HUNTINGTON VA MFS MFS MORTGAGE HUNTINGTON VA CORE EQUITY EMERGING SECURITIES FUND SITUS SMALL CAP FUND SERIES GROWTH SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (F) SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $4,301 $(65,719) $(196,065) $(330,766) Net realized gain (loss) on security transactions 138 6,736 114,392 (1,075,281) Net realized gain on distributions 273 301,070 -- -- Net unrealized appreciation (depreciation) of investments during the year 25,937 39,284 1,395,286 4,604,082 ------------ ------------ ------------- -------------- Net increase (decrease) in net assets resulting from operations 30,649 281,371 1,313,613 3,198,035 ------------ ------------ ------------- -------------- UNIT TRANSACTIONS: Purchases 851,322 2,212,792 135,052 1,443,310 Net transfers 350,074 444,097 (782,736) 2,509,484 Surrenders for benefit payments and fees (97,292) (302,663) (2,503,095) (2,301,773) Net annuity transactions -- -- -- -- ------------ ------------ ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions 1,104,104 2,354,226 (3,150,779) 1,651,021 ------------ ------------ ------------- -------------- Net increase (decrease) in net assets 1,134,753 2,635,597 (1,837,166) 4,849,056 NET ASSETS: Beginning of year 654,181 3,107,920 14,345,462 17,986,994 ------------ ------------ ------------- -------------- End of year $1,788,934 $5,743,517 $12,508,296 $22,836,050 ============ ============ ============= ============== MFS MFS MFS GLOBAL EQUITY HIGH INCOME INVESTORS GROWTH SERIES SERIES STOCK SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- --------------------------------------------------------------- OPERATIONS: Net investment income (loss) $22,461 $4,304,276 $(359,130) Net realized gain (loss) on security transactions 299,322 (24,645) 300,947 Net realized gain on distributions 691,552 -- -- Net unrealized appreciation (depreciation) of investments during the year (278,979) (4,370,989) 2,367,727 ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 734,356 (91,358) 2,309,544 ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 1,028,628 5,264,747 945,203 Net transfers (587,259) 1,092,820 (2,198,200) Surrenders for benefit payments and fees (1,200,118) (7,402,038) (2,959,869) Net annuity transactions -- (8,035) (1,168) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (758,749) (1,052,506) (4,214,034) ------------- ------------- ------------- Net increase (decrease) in net assets (24,393) (1,143,864) (1,904,490) NET ASSETS: Beginning of year 10,733,651 82,023,478 26,105,754 ------------- ------------- ------------- End of year $10,709,258 $80,879,614 $24,201,264 ============= ============= =============
(f) Formerly MFS Capital Opportunities Series. Change effective May 1, 2007. SA-85 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
MFS MFS MFS INVESTORS MID CAP NEW DISCOVERY TRUST SERIES GROWTH SERIES SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,660,403) $(694,560) $(1,937,168) Net realized gain (loss) on security transactions 903,480 1,035,528 408,724 Net realized gain on distributions 1,364,134 1,530,503 7,259,998 Net unrealized appreciation (depreciation) of investments during the year 12,498,845 1,301,880 (5,756,874) -------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations 13,106,056 3,173,351 (25,320) -------------- ------------- -------------- UNIT TRANSACTIONS: Purchases 24,879,409 1,308,605 15,058,060 Net transfers 7,527,705 (3,142,948) 853,105 Surrenders for benefit payments and fees (12,728,747) (2,793,753) (7,451,264) Net annuity transactions (5,082) -- (2,318) -------------- ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions 19,673,285 (4,628,096) 8,457,583 -------------- ------------- -------------- Net increase (decrease) in net assets 32,779,341 (1,454,745) 8,432,263 NET ASSETS: Beginning of year 147,797,096 41,556,832 96,615,291 -------------- ------------- -------------- End of year $180,576,437 $40,102,087 $105,047,554 ============== ============= ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-86 -------------------------------------------------------------------------------
MFS MFS MFS RESEARCH TOTAL RETURN MFS RESEARCH BOND INTERNATIONAL SERIES VALUE SERIES SERIES SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $3,504,933 $(593,374) $128,989 $(209,750) Net realized gain (loss) on security transactions 1,573,542 242,714 18,853 38,503 Net realized gain on distributions 12,250,570 925,336 -- 96,970 Net unrealized appreciation (depreciation) of investments during the year (6,817,988) 2,463,723 338,722 1,070,746 -------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 10,511,057 3,038,399 486,564 996,469 -------------- ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 75,398,526 18,978,767 8,414,225 7,705,374 Net transfers 26,817,075 10,747,299 10,521,556 4,706,847 Surrenders for benefit payments and fees (37,979,800) (6,715,753) (1,827,395) (507,779) Net annuity transactions (52,322) 1,290 -- -- -------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions 64,183,479 23,011,603 17,108,386 11,904,442 -------------- ------------- ------------- ------------- Net increase (decrease) in net assets 74,694,536 26,050,002 17,594,950 12,900,911 NET ASSETS: Beginning of year 470,084,945 50,753,521 11,129,365 7,356,189 -------------- ------------- ------------- ------------- End of year $544,779,481 $76,803,523 $28,724,315 $20,257,100 ============== ============= ============= ============= BLACKROCK BLACKROCK MFS GLOBAL GROWTH LARGE CAP RESEARCH SERIES V.I. FUND GROWTH V.I. FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(30,014) $(2,637) $(14,862) Net realized gain (loss) on security transactions 11,061 2,572 79,028 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 228,404 83,460 (9,453) ------------ ---------- ----------- Net increase (decrease) in net assets resulting from operations 209,451 83,395 54,713 ------------ ---------- ----------- UNIT TRANSACTIONS: Purchases 1,138,566 -- 26,968 Net transfers 974,595 (1,800) 11,364 Surrenders for benefit payments and fees (67,497) (1) (175,821) Net annuity transactions -- -- -- ------------ ---------- ----------- Net increase (decrease) in net assets resulting from unit transactions 2,045,664 (1,801) (137,489) ------------ ---------- ----------- Net increase (decrease) in net assets 2,255,115 81,594 (82,776) NET ASSETS: Beginning of year 1,495,769 244,810 947,734 ------------ ---------- ----------- End of year $3,750,884 $326,404 $864,958 ============ ========== ===========
SA-87 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
INTERNATIONAL GROWTH U.S. CAPITAL EQUITY FUND MID CAP VALUE OPPORTUNITIES SUB-ACCOUNT (G) SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(363) $(325) $(1,785) Net realized gain (loss) on security transactions 18 14 420 Net realized gain on distributions 1,309 4,145 -- Net unrealized appreciation (depreciation) of investments during the year (422) (3,639) 15,175 --------- --------- ---------- Net increase (decrease) in net assets resulting from operations 542 195 13,810 --------- --------- ---------- UNIT TRANSACTIONS: Purchases 54,954 29,229 116,021 Net transfers 7,782 2,518 47,269 Surrenders for benefit payments and fees 1 -- (112) Net annuity transactions -- -- -- --------- --------- ---------- Net increase (decrease) in net assets resulting from unit transactions 62,737 31,747 163,178 --------- --------- ---------- Net increase (decrease) in net assets 63,279 31,942 176,988 NET ASSETS: Beginning of year -- 9,559 16,204 --------- --------- ---------- End of year $63,279 $41,501 $193,192 ========= ========= ==========
(g) Funded as of February 8, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-88 -------------------------------------------------------------------------------
DEVELOPING DIVIDEND GROWTH FLEXIBLE INCOME GROWTH GLOBAL EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (G) SUB-ACCOUNT (G) ----------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(123) $2,174 $(30) $(65) Net realized gain (loss) on security transactions 6 1 1 4 Net realized gain on distributions -- -- -- 723 Net unrealized appreciation (depreciation) of investments during the year 1,839 (1,286) 75 (30) --------- --------- ------- ------- Net increase (decrease) in net assets resulting from operations 1,722 889 46 632 --------- --------- ------- ------- UNIT TRANSACTIONS: Purchases 1,800 28,000 -- -- Net transfers 2,021 50,584 7,737 7,709 Surrenders for benefit payments and fees (32) (1) -- -- Net annuity transactions -- -- -- -- --------- --------- ------- ------- Net increase (decrease) in net assets resulting from unit transactions 3,789 78,583 7,737 7,709 --------- --------- ------- ------- Net increase (decrease) in net assets 5,511 79,472 7,783 8,341 NET ASSETS: Beginning of year 6,516 15,128 -- -- --------- --------- ------- ------- End of year $12,027 $94,600 $7,783 $8,341 ========= ========= ======= ======= COLUMBIA COLUMBIA COLUMBIA MARSICO INTERNATIONAL HIGH YIELD MARSICO FOCUSED OPPORTUNITIES FUND VS FUND VS EQUITIES FUND VS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(776,002) $794,048 $(565,768) Net realized gain (loss) on security transactions 3,553,710 463,716 2,462,633 Net realized gain on distributions 1,559,685 -- -- Net unrealized appreciation (depreciation) of investments during the year 1,912,729 (1,279,100) 1,284,808 ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 6,250,122 (21,336) 3,181,673 ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 160,030 125,312 190,058 Net transfers (2,289,310) (207,048) (778,024) Surrenders for benefit payments and fees (6,362,524) (4,944,868) (4,630,896) Net annuity transactions (27,435) -- (39,037) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (8,519,239) (5,026,604) (5,257,899) ------------- ------------- ------------- Net increase (decrease) in net assets (2,269,117) (5,047,940) (2,076,226) NET ASSETS: Beginning of year 40,308,087 28,836,413 30,381,566 ------------- ------------- ------------- End of year $38,038,970 $23,788,473 $28,305,340 ============= ============= =============
(g) Funded as of February 8, 2007. SA-89 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
COLUMBIA COLUMBIA MARSICO COLUMBIA MARSICO 21ST CENTURY MARSICO MIDCAP GROWTH FUND VS FUND VS GROWTH FUND VS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(522,795) $(139,350) $(664,992) Net realized gain (loss) on security transactions 1,823,943 175,966 1,049,981 Net realized gain on distributions -- 457,562 6,413,660 Net unrealized appreciation (depreciation) of investments during the year 2,393,240 906,613 (1,358,335) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 3,694,388 1,400,791 5,440,314 ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 149,207 31,034 208,263 Net transfers (1,378,756) 702,429 (1,917,309) Surrenders for benefit payments and fees (4,704,596) (1,260,183) (5,656,651) Net annuity transactions -- -- -- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (5,934,145) (526,720) (7,365,697) ------------- ------------- ------------- Net increase (decrease) in net assets (2,239,757) 874,071 (1,925,383) NET ASSETS: Beginning of year 27,165,356 8,365,881 34,169,377 ------------- ------------- ------------- End of year $24,925,599 $9,239,952 $32,243,994 ============= ============= =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-90 -------------------------------------------------------------------------------
JPMORGAN JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST BALANCED CORE BOND DIVERSIFIED EQUITY INTREPID MID CAP PORTFOLIO - 1 PORTFOLIO - 1 PORTFOLIO - 1 PORTFOLIO - 1 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $21,118 $1,385,053 $(70,471) $(98,927) Net realized gain (loss) on security transactions 18,612 8,792 33,808 (3,049) Net realized gain on distributions 9,280 -- 484,553 591,424 Net unrealized appreciation (depreciation) of investments during the year 18,900 929,109 471,689 (623,558) ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 67,910 2,322,954 919,579 (134,110) ------------ ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 99,917 7,562,645 1,354,991 2,406,776 Net transfers 138,615 9,669,206 107,553 2,791,022 Surrenders for benefit payments and fees (206,386) (2,513,238) (508,410) (376,224) Net annuity transactions -- -- -- -- ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions 32,146 14,718,613 954,134 4,821,574 ------------ ------------- ------------- ------------- Net increase (decrease) in net assets 100,056 17,041,567 1,873,713 4,687,464 NET ASSETS: Beginning of year 1,646,833 39,591,067 9,872,290 5,885,468 ------------ ------------- ------------- ------------- End of year $1,746,889 $56,632,634 $11,746,003 $10,572,932 ============ ============= ============= ============= JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST EQUITY INDEX GOVERNMENT BOND INTREPID GROWTH PORTFOLIO - 1 PORTFOLIO - 1 PORTFOLIO - 1 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(104,087) $613,607 $(12,357) Net realized gain (loss) on security transactions 24,880 1,364 824 Net realized gain on distributions -- -- -- Net unrealized appreciation (depreciation) of investments during the year 1,245,495 532,443 64,005 ------------- ------------- ------------ Net increase (decrease) in net assets resulting from operations 1,166,288 1,147,414 52,472 ------------- ------------- ------------ UNIT TRANSACTIONS: Purchases 6,056,108 2,814,380 857,148 Net transfers 3,237,110 3,723,385 733,390 Surrenders for benefit payments and fees (1,940,607) (992,457) (42,657) Net annuity transactions -- -- -- ------------- ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions 7,352,611 5,545,308 1,547,881 ------------- ------------- ------------ Net increase (decrease) in net assets 8,518,899 6,692,722 1,600,353 NET ASSETS: Beginning of year 34,248,560 15,768,072 251,987 ------------- ------------- ------------ End of year $42,767,459 $22,460,794 $1,852,340 ============= ============= ============
SA-91 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST DIVERSIFIED MID CAP DIVERSIFIED MID CAP JENNISON 20/20 GROWTH PORTFOLIO - 1 VALUE PORTFOLIO - 1 FOCUS PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(229,764) $25,215 $(5,437) Net realized gain (loss) on security transactions 66,569 22,996 10,387 Net realized gain on distributions 2,225,004 5,003,545 34,802 Net unrealized appreciation (depreciation) of investments during the year (114,896) (5,141,397) (13,114) ------------- ------------- ---------- Net increase (decrease) in net assets resulting from operations 1,946,913 (89,641) 26,638 ------------- ------------- ---------- UNIT TRANSACTIONS: Purchases 1,356,802 417,282 920 Net transfers 205,543 (134,437) 62,911 Surrenders for benefit payments and fees (791,306) (544,952) (24,206) Net annuity transactions -- -- -- ------------- ------------- ---------- Net increase (decrease) in net assets resulting from unit transactions 771,039 (262,107) 39,625 ------------- ------------- ---------- Net increase (decrease) in net assets 2,717,952 (351,748) 66,263 NET ASSETS: Beginning of year 12,211,142 11,038,250 311,417 ------------- ------------- ---------- End of year $14,929,094 $10,686,502 $377,680 ============= ============= ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-92 -------------------------------------------------------------------------------
LEGG MASON PRUDENTIAL PARTNERS VARIABLE JENNISON PRUDENTIAL SERIES INTERNATIONAL CAPITAL AND INCOME PORTFOLIO VALUE PORTFOLIO GROWTH PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (H) SUB-ACCOUNT (I)(J)(K) -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(11,101) $(1,833) $(331) $2,711 Net realized gain (loss) on security transactions 29,770 5,603 4,200 57,303 Net realized gain on distributions -- 29,859 1,617 58,930 Net unrealized appreciation (depreciation) of investments during the year 44,325 (30,952) (1,159) (107,835) ----------- ---------- --------- ----------- Net increase (decrease) in net assets resulting from operations 62,994 2,677 4,327 11,109 ----------- ---------- --------- ----------- UNIT TRANSACTIONS: Purchases -- -- -- 10,862 Net transfers (86,048) 10,976 (17,302) 8,758 Surrenders for benefit payments and fees (53,530) (4,971) (3,040) (41,353) Net annuity transactions -- -- -- -- ----------- ---------- --------- ----------- Net increase (decrease) in net assets resulting from unit transactions (139,578) 6,005 (20,342) (21,733) ----------- ---------- --------- ----------- Net increase (decrease) in net assets (76,584) 8,682 (16,015) (10,624) NET ASSETS: Beginning of year 720,561 244,245 24,944 360,452 ----------- ---------- --------- ----------- End of year $643,977 $252,927 $8,929 $349,828 =========== ========== ========= =========== LEGG MASON LEGG MASON PARTNERS VARIABLE LEGG MASON PARTNERS VARIABLE GLOBAL HIGH PARTNERS VARIABLE FUNDAMENTAL VALUE YIELD BOND INVESTORS PORTFOLIO PORTFOLIO PORTFOLIO SUB-ACCOUNT (K)(L) SUB-ACCOUNT SUB-ACCOUNT ----------------------------- -------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(850) $7,783 $(2,232) Net realized gain (loss) on security transactions 618,389 11,225 20,114 Net realized gain on distributions 267,653 701 24,216 Net unrealized appreciation (depreciation) of investments during the year (869,529) (19,865) (15,669) ------------ ----------- ----------- Net increase (decrease) in net assets resulting from operations 15,663 (156) 26,429 ------------ ----------- ----------- UNIT TRANSACTIONS: Purchases 840 -- 2,580 Net transfers (29,118) (23,602) 22,059 Surrenders for benefit payments and fees (600,586) (89,317) (125,741) Net annuity transactions -- -- -- ------------ ----------- ----------- Net increase (decrease) in net assets resulting from unit transactions (628,864) (112,919) (101,102) ------------ ----------- ----------- Net increase (decrease) in net assets (613,201) (113,075) (74,673) NET ASSETS: Beginning of year 2,975,509 251,640 964,766 ------------ ----------- ----------- End of year $2,362,308 $138,565 $890,093 ============ =========== ===========
(h) Formerly SP William Blair International Growth Portfolio. Change effective January 31, 2007. (i) Effective April 27, 2007, Legg Mason Partners Variable Total Return Portfolio merged with Legg Mason Partners Variable Multiple Discipline Portfolio -- Balanced All Cap Growth and Value. (j) Formerly Legg Mason Partners Variable Multiple Discipline Portfolio -- Balanced All Cap Growth and Value. Change effective April 27, 2007. (k) From inception May 1, 2007 to December 31, 2007. (l) Effective April 28, 2007, Legg Mason Partners Variable All Cap Portfolio merged with Legg Mason Partners Variable Fundamental Value Portfolio. SA-93 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE VT ASSET GROWTH AND INCOME COMSTOCK ALLOCATION FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,657) $(4,566) $55 Net realized gain (loss) on security transactions (11) 79 1 Net realized gain on distributions 2,949 4,112 210 Net unrealized appreciation (depreciation) of investments during the year (9,833) (29,662) 468 ---------- ---------- --------- Net increase (decrease) in net assets resulting from operations (9,552) (30,037) 734 ---------- ---------- --------- UNIT TRANSACTIONS: Purchases 248,983 357,277 -- Net transfers 99,848 30,696 -- Surrenders for benefit payments and fees (962) (3,023) -- Net annuity transactions -- -- -- ---------- ---------- --------- Net increase (decrease) in net assets resulting from unit transactions 347,869 384,950 -- ---------- ---------- --------- Net increase (decrease) in net assets 338,317 354,913 734 NET ASSETS: Beginning of year 53,185 157,714 13,050 ---------- ---------- --------- End of year $391,502 $512,627 $13,784 ========== ========== =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-94 -------------------------------------------------------------------------------
WELLS FARGO WELLS FARGO ADVANTAGE VT WELLS FARGO WELLS FARGO ADVANTAGE VT TOTAL RETURN ADVANTAGE VT EQUITY ADVANTAGE VT C&B INTERNATIONAL BOND FUND INCOME FUND LARGE CAP VALUE FUND CORE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (M) SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $269 $(3) $11 $(200) Net realized gain (loss) on security transactions -- (20) -- 83 Net realized gain on distributions -- 2,116 -- 775 Net unrealized appreciation (depreciation) of investments during the year 120 (1,714) (6) 419 ------- --------- ------- --------- Net increase (decrease) in net assets resulting from operations 389 379 5 1,077 ------- --------- ------- --------- UNIT TRANSACTIONS: Purchases -- -- 6,255 -- Net transfers -- 292 -- (407) Surrenders for benefit payments and fees 1 (505) -- (7) Net annuity transactions -- -- -- -- ------- --------- ------- --------- Net increase (decrease) in net assets resulting from unit transactions 1 (213) 6,255 (414) ------- --------- ------- --------- Net increase (decrease) in net assets 390 166 6,260 663 NET ASSETS: Beginning of year 8,183 31,073 -- 10,340 ------- --------- ------- --------- End of year $8,573 $31,239 $6,260 $11,003 ======= ========= ======= ========= WELLS FARGO WELLS FARGO STI CLASSIC VT ADVANTAGE VT LARGE ADVANTAGE VT SMALL LARGE CAP GROWTH COMPANY GROWTH FUND CAP GROWTH FUND STOCK FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (N) -------------------------- --------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(161) $(127) $(122,527) Net realized gain (loss) on security transactions 47 169 150,978 Net realized gain on distributions -- 984 441,166 Net unrealized appreciation (depreciation) of investments during the year 602 (209) 458,970 ------- --------- ------------- Net increase (decrease) in net assets resulting from operations 488 817 928,587 ------- --------- ------------- UNIT TRANSACTIONS: Purchases -- 3,649 507,736 Net transfers 12 (807) (23,231) Surrenders for benefit payments and fees (6) (5) (1,046,945) Net annuity transactions -- -- -- ------- --------- ------------- Net increase (decrease) in net assets resulting from unit transactions 6 2,837 (562,440) ------- --------- ------------- Net increase (decrease) in net assets 494 3,654 366,147 NET ASSETS: Beginning of year 8,154 6,553 7,164,974 ------- --------- ------------- End of year $8,648 $10,207 $7,531,121 ======= ========= =============
(m) Funded as of November 27, 2007. (n) Formerly STI Classic VT Capital Appreciation Fund. Change effective May 31, 2007. SA-95 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007 -------------------------------------------------------------------------------
STI CLASSIC VT STI CLASSIC VT STI CLASSIC VT LARGE CAP CORE MID-CAP CORE LARGE CAP VALUE EQUITY FUND EQUITY FUND EQUITY FUND SUB-ACCOUNT (O) SUB-ACCOUNT (P) SUB-ACCOUNT ------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(16,699) $(36,530) $(18,910) Net realized gain (loss) on security transactions 155,977 38,293 65,320 Net realized gain on distributions 120,990 302,511 -- Net unrealized appreciation (depreciation) of investments during the year (268,742) (250,139) (10,078) ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations (8,474) 54,135 36,332 ------------ ------------ ------------ UNIT TRANSACTIONS: Purchases 128,762 66,953 1,040,462 Net transfers 2,095 (11,400) 421,767 Surrenders for benefit payments and fees (537,769) (127,652) (553,933) Net annuity transactions -- -- -- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions (406,912) (72,099) 908,296 ------------ ------------ ------------ Net increase (decrease) in net assets (415,386) (17,964) 944,628 NET ASSETS: Beginning of year 1,919,438 1,885,229 4,348,367 ------------ ------------ ------------ End of year $1,504,052 $1,867,265 $5,292,995 ============ ============ ============
(o) Formerly STI Classic VT Large Cap Relative Value Fund. Change effective May 31, 2007. (p) Formerly STI Classic VT Mid-Cap Equity Fund. Change effective May 31, 2007. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-96 ------------------------------------------------------------------------------- [This page intentionally left blank] SA-97 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
AIM V.I. AIM V.I. BASIC CAPITAL AIM V.I. VALUE FUND APPRECIATION FUND CORE EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT (A)(B) SUB-ACCOUNT (C) ----------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,347,557) $(825,096) $(268,892) Net realized gain (loss) on security transactions 1,944,788 6,935,147 13,875,771 Net realized gain on distributions 4,007,164 874,160 -- Net unrealized appreciation (depreciation) of investments during the year 5,177,956 (4,541,925) 505,980 ------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations 9,782,351 2,442,286 14,112,859 ------------- ------------- -------------- UNIT TRANSACTIONS: Purchases 5,443,894 2,070,754 12,550,367 Net transfers (5,021,232) (2,263,287) 2,263,087 Surrenders for benefit payments and fees (8,515,013) (4,753,986) (6,675,500) Net annuity transactions (32,996) -- 9,917 ------------- ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (8,125,347) (4,946,519) 8,147,871 ------------- ------------- -------------- Net increase (decrease) in net assets 1,657,004 (2,504,233) 22,260,730 NET ASSETS: Beginning of year 93,615,916 45,462,753 100,831,807 ------------- ------------- -------------- End of year $95,272,920 $42,958,520 $123,092,537 ============= ============= ==============
(a) Effective April 28, 2006, AIM V.I. Aggressive Growth Fund merged with AIM V.I. Capital Appreciation Fund. (b) Effective November 6, 2006 AIM V.I. Demographic Trends Fund merged with AIM V.I. Capital Appreciation Fund. (c) Effective April 28, 2006, AIM V.I. Premier Equity Fund merged with AIM V.I. Core Equity Fund. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-98 -------------------------------------------------------------------------------
AIM V.I. AIM V.I. AIM V.I. AIM V.I. GOVERNMENT HIGH INTERNATIONAL MID CAP CORE SECURITIES FUND YIELD FUND GROWTH FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $5,222,335 $100,331 $(198,578) $(1,035,838) Net realized gain (loss) on security transactions (250,640) 16,083 417,610 812,143 Net realized gain on distributions -- -- -- 11,412,044 Net unrealized appreciation (depreciation) of investments during the year (1,274,690) 20,258 7,309,528 (1,471,503) -------------- ------------ ------------- -------------- Net increase (decrease) in net assets resulting from operations 3,697,005 136,672 7,528,560 9,716,846 -------------- ------------ ------------- -------------- UNIT TRANSACTIONS: Purchases 47,216,927 1,000 20,294,002 9,487,736 Net transfers 19,210,464 33,962 (1,338,412) (6,946,415) Surrenders for benefit payments and fees (21,923,352) (314,744) (4,402,628) (7,475,997) Net annuity transactions (14,420) -- -- (9,203) -------------- ------------ ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions 44,489,619 (279,782) 14,552,962 (4,943,879) -------------- ------------ ------------- -------------- Net increase (decrease) in net assets 48,186,624 (143,110) 22,081,522 4,772,967 NET ASSETS: Beginning of year 182,397,656 1,754,139 22,955,715 111,634,296 -------------- ------------ ------------- -------------- End of year $230,584,280 $1,611,029 $45,037,237 $116,407,263 ============== ============ ============= ============== AIM V.I. AIM V.I. SMALL CAP LARGE CAP AMERICAN FUNDS EQUITY FUND GROWTH FUND GLOBAL BOND FUND SUB-ACCOUNT SUB-ACCOUNT (D) SUB-ACCOUNT (E) ----------------------------- ------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(304,785) $(314,731) $13,074 Net realized gain (loss) on security transactions 71,823 2,223,174 1,163 Net realized gain on distributions 770,576 -- -- Net unrealized appreciation (depreciation) of investments during the year 1,525,257 (663,937) (19,408) ------------- ------------- ------------ Net increase (decrease) in net assets resulting from operations 2,062,871 1,244,506 (5,171) ------------- ------------- ------------ UNIT TRANSACTIONS: Purchases 2,957,808 1,974,302 929,798 Net transfers 3,629,905 48,383 1,968,410 Surrenders for benefit payments and fees (607,918) (1,541,466) (5,036) Net annuity transactions (710) -- -- ------------- ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions 5,979,085 481,219 2,893,172 ------------- ------------- ------------ Net increase (decrease) in net assets 8,041,956 1,725,725 2,888,001 NET ASSETS: Beginning of year 11,850,817 20,683,065 -- ------------- ------------- ------------ End of year $19,892,773 $22,408,790 $2,888,001 ============= ============= ============
(d) Effective June 12, 2006, AIM V.I. Blue Chip Fund merged with AIM V.I. Large Cap Growth Fund. (e) From inception, May 1, 2006 to December 31, 2006. SA-99 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GLOBAL GROWTH AND ASSET BLUE CHIP INCOME INCOME FUND ALLOCATION FUND AND GROWTH FUND SUB-ACCOUNT (E) SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $1,878 $2,103,807 $(1,472,910) Net realized gain (loss) on security transactions 5,783 1,333,335 1,770,703 Net realized gain on distributions -- 5,615,176 11,361,776 Net unrealized appreciation (depreciation) of investments during the year 3,452,071 41,963,576 19,681,023 ------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 3,459,732 51,015,894 31,340,592 ------------- -------------- -------------- UNIT TRANSACTIONS: Purchases 19,556,867 41,805,000 21,607,104 Net transfers 20,781,523 22,149,360 1,735,578 Surrenders for benefit payments and fees (450,285) (31,018,009) (15,873,295) Net annuity transactions 32,245 24,065 (880) ------------- -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions 39,920,350 32,960,416 7,468,507 ------------- -------------- -------------- Net increase (decrease) in net assets 43,380,082 83,976,310 38,809,099 NET ASSETS: Beginning of year -- 389,023,660 202,280,515 ------------- -------------- -------------- End of year $43,380,082 $472,999,970 $241,089,614 ============= ============== ==============
(e) From inception, May 1, 2006 to December 31, 2006. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-100 -------------------------------------------------------------------------------
AMERICAN AMERICAN FUNDS AMERICAN FUNDS FUNDS AMERICAN FUNDS BOND FUND GLOBAL GROWTH FUND GROWTH FUND GROWTH-INCOME FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $6,187,313 $(1,000,335) $(9,555,201) $(1,633,359) Net realized gain (loss) on security transactions 289,787 1,082,699 9,340,090 4,517,270 Net realized gain on distributions -- -- 6,034,311 22,377,028 Net unrealized appreciation (depreciation) of investments during the year 8,604,010 18,408,148 72,666,049 94,125,066 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 15,081,110 18,490,512 78,485,249 119,386,005 -------------- -------------- -------------- -------------- UNIT TRANSACTIONS: Purchases 36,333,118 15,824,425 163,847,697 150,195,439 Net transfers 22,075,744 5,308,564 29,851,680 28,764,289 Surrenders for benefit payments and fees (24,316,508) (7,509,028) (67,512,401) (66,596,547) Net annuity transactions (14,652) 48,196 (52,537) (109,007) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions 34,077,702 13,672,157 126,134,439 112,254,174 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets 49,158,812 32,162,669 204,619,688 231,640,179 NET ASSETS: Beginning of year 273,438,828 94,826,720 886,607,696 846,763,262 -------------- -------------- -------------- -------------- End of year $322,597,640 $126,989,389 $1,091,227,384 $1,078,403,441 ============== ============== ============== ============== AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GLOBAL SMALL INTERNATIONAL FUND NEW WORLD FUND CAPITALIZATION FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $82,843 $(170,583) $(1,431,433) Net realized gain (loss) on security transactions 951,664 449,919 539,159 Net realized gain on distributions 2,239,132 505,360 5,322,958 Net unrealized appreciation (depreciation) of investments during the year 36,559,038 16,621,201 15,331,476 -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 39,832,677 17,405,897 19,762,160 -------------- -------------- -------------- UNIT TRANSACTIONS: Purchases 53,967,224 16,055,043 17,831,741 Net transfers 27,552,787 8,601,232 5,058,293 Surrenders for benefit payments and fees (17,807,797) (4,023,020) (7,005,431) Net annuity transactions 35,389 2,595 20,653 -------------- -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions 63,747,603 20,635,850 15,905,256 -------------- -------------- -------------- Net increase (decrease) in net assets 103,580,280 38,041,747 35,667,416 NET ASSETS: Beginning of year 203,705,470 48,181,152 85,530,087 -------------- -------------- -------------- End of year $307,285,750 $86,222,899 $121,197,503 ============== ============== ==============
SA-101 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
EVERGREEN VA EVERGREEN VA EVERGREEN VA INTERNATIONAL BALANCED FUND GROWTH FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $1,896 $(17,215) $22,149 Net realized gain (loss) on security transactions 634 1,077 (129) Net realized gain on distributions -- 30,200 52,715 Net unrealized appreciation (depreciation) of investments during the year 14,887 58,774 73,768 ---------- ------------ ------------ Net increase (decrease) in net assets resulting from operations 17,417 72,836 148,503 ---------- ------------ ------------ UNIT TRANSACTIONS: Purchases 218,234 780,853 643,366 Net transfers 41,345 246,128 156,358 Surrenders for benefit payments and fees (30,176) (20,592) (18,258) Net annuity transactions -- 3,869 -- ---------- ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions 229,403 1,010,258 781,466 ---------- ------------ ------------ Net increase (decrease) in net assets 246,820 1,083,094 929,969 NET ASSETS: Beginning of year 119,150 437,987 374,839 ---------- ------------ ------------ End of year $365,970 $1,521,081 $1,304,808 ========== ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-102 -------------------------------------------------------------------------------
EVERGREEN VA EVERGREEN VA FRANKLIN EVERGREEN VA SPECIAL FUNDAMENTAL RISING DIVIDENDS OMEGA FUND VALUES FUND LARGE CAP FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,322) $(78,170) $2,112 $(1,972,038) Net realized gain (loss) on security transactions 97 7,015 121 285,391 Net realized gain on distributions -- 1,513,849 11,217 1,240,729 Net unrealized appreciation (depreciation) of investments during the year 9,573 275,304 45,615 36,014,327 ---------- ------------- ---------- -------------- Net increase (decrease) in net assets resulting from operations 8,348 1,717,998 59,065 35,568,409 ---------- ------------- ---------- -------------- UNIT TRANSACTIONS: Purchases 90,918 6,025,322 563,159 79,660,249 Net transfers (3,000) 2,824,477 88,990 33,956,450 Surrenders for benefit payments and fees (279) (227,478) (4,711) (13,060,589) Net annuity transactions -- 3,843 -- 19,236 ---------- ------------- ---------- -------------- Net increase (decrease) in net assets resulting from unit transactions 87,639 8,626,164 647,438 100,575,346 ---------- ------------- ---------- -------------- Net increase (decrease) in net assets 95,987 10,344,162 706,503 136,143,755 NET ASSETS: Beginning of year 36,942 4,556,215 33,199 194,705,917 ---------- ------------- ---------- -------------- End of year $132,929 $14,900,377 $739,702 $330,849,672 ========== ============= ========== ============== FRANKLIN FRANKLIN INCOME LARGE CAP GROWTH FRANKLIN SECURITIES FUND SECURITIES FUND REAL ESTATE FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $14,330,078 $(722,501) $32,468 Net realized gain (loss) on security transactions 431,302 59,176 323,369 Net realized gain on distributions 3,943,309 -- 570,864 Net unrealized appreciation (depreciation) of investments during the year 110,069,793 6,597,425 307,116 ---------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 128,774,482 5,934,100 1,233,817 ---------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 200,380,656 13,314,418 67,939 Net transfers 87,836,331 5,593,815 (608,762) Surrenders for benefit payments and fees (52,103,242) (4,098,991) (709,659) Net annuity transactions 254,239 5,749 (767) ---------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions 236,367,984 14,814,991 (1,251,249) ---------------- ------------- ------------- Net increase (decrease) in net assets 365,142,466 20,749,091 (17,432) NET ASSETS: Beginning of year 688,449,440 55,894,211 7,502,457 ---------------- ------------- ------------- End of year $1,053,591,906 $76,643,302 $7,485,025 ================ ============= =============
SA-103 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
FRANKLIN SMALL-MID CAP FRANKLIN FRANKLIN GROWTH STRATEGIC INCOME FLEX CAP GROWTH SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,011,176) $4,951,221 $(214,521) Net realized gain (loss) on security transactions 1,277,233 97,343 18,055 Net realized gain on distributions -- 1,037,554 -- Net unrealized appreciation (depreciation) of investments during the year 7,700,178 4,377,099 527,954 -------------- -------------- ------------- Net increase (decrease) in net assets resulting from operations 6,966,235 10,463,217 331,488 -------------- -------------- ------------- UNIT TRANSACTIONS: Purchases 11,416,880 23,640,238 5,914,577 Net transfers 1,692,797 15,935,327 3,207,040 Surrenders for benefit payments and fees (8,761,010) (10,695,008) (479,772) Net annuity transactions 323 78,037 -- -------------- -------------- ------------- Net increase (decrease) in net assets resulting from unit transactions 4,348,990 28,958,594 8,641,845 -------------- -------------- ------------- Net increase (decrease) in net assets 11,315,225 39,421,811 8,973,333 NET ASSETS: Beginning of year 102,158,907 144,226,489 6,490,655 -------------- -------------- ------------- End of year $113,474,132 $183,648,300 $15,463,988 ============== ============== =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-104 -------------------------------------------------------------------------------
FRANKLIN TEMPLETON TEMPLETON LARGE CAP VALUE MUTUAL SHARES DEVELOPING MARKETS FOREIGN SECURITIES FUND SECURITIES FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $11,401 $(3,014,673) $(319,533) $(1,280,713) Net realized gain (loss) on security transactions 13,563 1,513,826 (237,488) 861,402 Net realized gain on distributions 11,236 19,537,077 -- -- Net unrealized appreciation (depreciation) of investments during the year 596,571 74,383,827 12,121,911 38,926,494 ------------ -------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations 632,771 92,420,057 11,564,890 38,507,183 ------------ -------------- ------------- -------------- UNIT TRANSACTIONS: Purchases 2,854,001 108,847,867 13,624,935 41,734,383 Net transfers 2,130,877 48,155,248 2,907,738 12,023,461 Surrenders for benefit payments and fees (181,220) (36,049,176) (3,660,689) (12,756,892) Net annuity transactions -- 28,880 1,550 43,394 ------------ -------------- ------------- -------------- Net increase (decrease) in net assets resulting from unit transactions 4,803,658 120,982,819 12,873,534 41,044,346 ------------ -------------- ------------- -------------- Net increase (decrease) in net assets 5,436,429 213,402,876 24,438,424 79,551,529 NET ASSETS: Beginning of year 1,533,066 505,545,664 40,257,075 177,358,499 ------------ -------------- ------------- -------------- End of year $6,969,495 $718,948,540 $64,695,499 $256,910,028 ============ ============== ============= ============== TEMPLETON TEMPLETON GLOBAL ASSET GROWTH MUTUAL DISCOVERY ALLOCATION FUND SECURITIES FUND SECURITIES FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- -------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $189,113 $(2,122,100) $(733,457) Net realized gain (loss) on security transactions 23,285 590,699 (158,846) Net realized gain on distributions 215,693 15,942,936 3,597,567 Net unrealized appreciation (depreciation) of investments during the year 173,545 66,661,721 15,083,965 ------------ -------------- -------------- Net increase (decrease) in net assets resulting from operations 601,636 81,073,256 17,789,229 ------------ -------------- -------------- UNIT TRANSACTIONS: Purchases 5,221 95,182,319 31,140,069 Net transfers 136,915 41,119,178 22,952,855 Surrenders for benefit payments and fees (263,854) (25,030,636) (4,446,472) Net annuity transactions (781) 8,087 29,516 ------------ -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (122,499) 111,278,948 49,675,968 ------------ -------------- -------------- Net increase (decrease) in net assets 479,137 192,352,204 67,465,197 NET ASSETS: Beginning of year 3,198,139 353,159,139 63,708,506 ------------ -------------- -------------- End of year $3,677,276 $545,511,343 $131,173,703 ============ ============== ==============
SA-105 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD ADVISERS TOTAL RETURN BOND CAPITAL APPRECIATION HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $33,945 $2,074,210 $(713,140) Net realized gain (loss) on security transactions 181,820 (384,495) 1,155,599 Net realized gain on distributions 2,723,426 12,639 9,991,706 Net unrealized appreciation (depreciation) of investments during the year 101,956 340,216 104,004 ------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 3,041,147 2,042,570 10,538,169 ------------- -------------- -------------- UNIT TRANSACTIONS: Purchases 272,374 689,733 171,387 Net transfers (950,026) 3,192,677 (2,018,577) Surrenders for benefit payments and fees (5,253,799) (11,485,507) (9,613,296) Net annuity transactions (19,972) (1,406) (2,915) ------------- -------------- -------------- Net increase (decrease) in net assets resulting from unit transactions (5,951,423) (7,604,503) (11,463,401) ------------- -------------- -------------- Net increase (decrease) in net assets (2,910,276) (5,561,933) (925,232) NET ASSETS: Beginning of year 41,218,527 92,401,223 81,448,157 ------------- -------------- -------------- End of year $38,308,251 $86,839,290 $80,522,925 ============= ============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-106 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD DIVIDEND AND GROWTH FOCUS GLOBAL ADVISERS GLOBAL COMMUNICATIONS HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(361,645) $(64) $3,182 $19 Net realized gain (loss) on security transactions 1,108,740 12 (287) -- Net realized gain on distributions 4,402,304 563 11,621 817 Net unrealized appreciation (depreciation) of investments during the year 4,652,442 59 7,838 153 ------------- ------- ---------- ------- Net increase (decrease) in net assets resulting from operations 9,801,841 570 22,354 989 ------------- ------- ---------- ------- UNIT TRANSACTIONS: Purchases 595,426 -- -- -- Net transfers (691,065) 385 (825) 436 Surrenders for benefit payments and fees (7,651,448) (512) (34,360) (6) Net annuity transactions -- -- -- -- ------------- ------- ---------- ------- Net increase (decrease) in net assets resulting from unit transactions (7,747,087) (127) (35,185) 430 ------------- ------- ---------- ------- Net increase (decrease) in net assets 2,054,754 443 (12,831) 1,419 NET ASSETS: Beginning of year 60,231,753 7,288 337,796 4,560 ------------- ------- ---------- ------- End of year $62,286,507 $7,731 $324,965 $5,979 ============= ======= ========== ======= HARTFORD GLOBAL FINANCIAL HARTFORD HARTFORD SERVICES GLOBAL HEALTH GLOBAL LEADERS HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------- OPERATIONS: Net investment income (loss) $31 $(13,042) $(23,610) Net realized gain (loss) on security transactions 62 1,893 (2,327) Net realized gain on distributions 3,044 135,501 131,315 Net unrealized appreciation (depreciation) of investments during the year 10,121 (41,081) 163,498 --------- ---------- ------------ Net increase (decrease) in net assets resulting from operations 13,258 83,271 268,876 --------- ---------- ------------ UNIT TRANSACTIONS: Purchases -- -- 28,687 Net transfers (17) 11,917 (24,354) Surrenders for benefit payments and fees (11) (19,082) (136,195) Net annuity transactions -- -- -- --------- ---------- ------------ Net increase (decrease) in net assets resulting from unit transactions (28) (7,165) (131,862) --------- ---------- ------------ Net increase (decrease) in net assets 13,230 76,106 137,014 NET ASSETS: Beginning of year 70,407 897,975 2,312,478 --------- ---------- ------------ End of year $83,637 $974,081 $2,449,492 ========= ========== ============
SA-107 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD GLOBAL TECHNOLOGY DISCIPLINED EQUITY GROWTH HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(7,128) $(6,516) $(912) Net realized gain (loss) on security transactions (6,647) (317) 7 Net realized gain on distributions -- -- 5,524 Net unrealized appreciation (depreciation) of investments during the year 55,520 95,896 (390) ---------- ---------- --------- Net increase (decrease) in net assets resulting from operations 41,745 89,063 4,229 ---------- ---------- --------- UNIT TRANSACTIONS: Purchases -- 671 5,771 Net transfers (7,056) 2,370 53,803 Surrenders for benefit payments and fees (12,224) (64,949) (21) Net annuity transactions -- -- -- ---------- ---------- --------- Net increase (decrease) in net assets resulting from unit transactions (19,280) (61,908) 59,553 ---------- ---------- --------- Net increase (decrease) in net assets 22,465 27,155 63,782 NET ASSETS: Beginning of year 506,674 896,201 26,471 ---------- ---------- --------- End of year $529,139 $923,356 $90,253 ========== ========== =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-108 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD INTERNATIONAL GROWTH OPPORTUNITIES HIGH YIELD INDEX CAPITAL APPRECIATION HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,106) $58,948 $325 $(3,759) Net realized gain (loss) on security transactions 788 662 (7,333) 839 Net realized gain on distributions 16,071 -- 161,047 40,829 Net unrealized appreciation (depreciation) of investments during the year (2,939) (21,225) 34,394 48,823 ---------- ---------- ------------ ---------- Net increase (decrease) in net assets resulting from operations 12,814 38,385 188,433 86,732 ---------- ---------- ------------ ---------- UNIT TRANSACTIONS: Purchases 21,803 2,295 10,095 52,236 Net transfers 78,792 61,548 (29,209) 164,869 Surrenders for benefit payments and fees (26,630) (20,732) (80,519) (8,647) Net annuity transactions -- -- -- -- ---------- ---------- ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions 73,965 43,111 (99,633) 208,458 ---------- ---------- ------------ ---------- Net increase (decrease) in net assets 86,779 81,496 88,800 295,190 NET ASSETS: Beginning of year 86,090 409,279 1,464,547 266,858 ---------- ---------- ------------ ---------- End of year $172,869 $490,775 $1,553,347 $562,048 ========== ========== ============ ========== HARTFORD HARTFORD INTERNATIONAL INTERNATIONAL HARTFORD SMALL COMPANY OPPORTUNITIES MIDCAP HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ---------------------------------------------------------------- OPERATIONS: Net investment income (loss) $681 $(90,684) $(30,880) Net realized gain (loss) on security transactions (177) 462,113 18,698 Net realized gain on distributions 21,939 788,766 825,928 Net unrealized appreciation (depreciation) of investments during the year 13,122 906,529 (313,563) ---------- ------------- ------------ Net increase (decrease) in net assets resulting from operations 35,565 2,066,724 500,183 ---------- ------------- ------------ UNIT TRANSACTIONS: Purchases -- 51,644 21,513 Net transfers 93,495 368,475 (134,880) Surrenders for benefit payments and fees (7,019) (2,014,584) (342,114) Net annuity transactions -- (517) -- ---------- ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions 86,476 (1,594,982) (455,481) ---------- ------------- ------------ Net increase (decrease) in net assets 122,041 471,742 44,702 NET ASSETS: Beginning of year 86,486 10,082,084 5,361,715 ---------- ------------- ------------ End of year $208,527 $10,553,826 $5,406,417 ========== ============= ============
SA-109 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD MIDCAP VALUE MONEY MARKET MORTGAGE SECURITIES HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(4,451) $4,271,248 $34,939 Net realized gain (loss) on security transactions 6,537 -- (171) Net realized gain on distributions 63,071 -- -- Net unrealized appreciation (depreciation) of investments during the year 8,412 -- (23,151) ---------- -------------- ---------- Net increase (decrease) in net assets resulting from operations 73,569 4,271,248 11,617 ---------- -------------- ---------- UNIT TRANSACTIONS: Purchases -- 32,959,562 -- Net transfers 1,111 52,233,578 10,965 Surrenders for benefit payments and fees (27,087) (43,004,165) (23,701) Net annuity transactions -- (20,792) -- ---------- -------------- ---------- Net increase (decrease) in net assets resulting from unit transactions (25,976) 42,168,183 (12,736) ---------- -------------- ---------- Net increase (decrease) in net assets 47,593 46,439,431 (1,119) NET ASSETS: Beginning of year 481,829 116,826,887 420,096 ---------- -------------- ---------- End of year $529,422 $163,266,318 $418,977 ========== ============== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-110 -------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD U.S. GOVERNMENT SMALL COMPANY SMALLCAP GROWTH STOCK SECURITIES HLS FUND HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(176,162) $(2,217) $(262,900) $11,714 Net realized gain (loss) on security transactions 676,893 (895) 460,713 (135) Net realized gain on distributions 1,451,121 11,492 1,727,295 -- Net unrealized appreciation (depreciation) of investments during the year (827,320) (2,382) 1,547,962 2,897 ------------- ---------- ------------- ---------- Net increase (decrease) in net assets resulting from operations 1,124,532 5,998 3,473,070 14,476 ------------- ---------- ------------- ---------- UNIT TRANSACTIONS: Purchases 50,809 11,256 224,667 2,964 Net transfers (576,933) 21,486 (604,352) 34,407 Surrenders for benefit payments and fees (1,166,958) (5,500) (3,060,053) (20,107) Net annuity transactions -- -- -- -- ------------- ---------- ------------- ---------- Net increase (decrease) in net assets resulting from unit transactions (1,693,082) 27,242 (3,439,738) 17,264 ------------- ---------- ------------- ---------- Net increase (decrease) in net assets (568,550) 33,240 33,332 31,740 NET ASSETS: Beginning of year 10,020,124 143,111 30,910,488 652,610 ------------- ---------- ------------- ---------- End of year $9,451,574 $176,351 $30,943,820 $684,350 ============= ========== ============= ========== HARTFORD HARTFORD HARTFORD VALUE VALUE OPPORTUNITIES EQUITY INCOME HLS FUND HLS FUND HLS FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,377) $(413) $297 Net realized gain (loss) on security transactions 70 95 395 Net realized gain on distributions 6,579 32,894 50 Net unrealized appreciation (depreciation) of investments during the year 36,623 10,417 4,509 ---------- ---------- --------- Net increase (decrease) in net assets resulting from operations 41,895 42,993 5,251 ---------- ---------- --------- UNIT TRANSACTIONS: Purchases -- 2,295 11,954 Net transfers 4,856 119,791 29,817 Surrenders for benefit payments and fees (810) (2,681) (12,964) Net annuity transactions -- -- -- ---------- ---------- --------- Net increase (decrease) in net assets resulting from unit transactions 4,046 119,405 28,807 ---------- ---------- --------- Net increase (decrease) in net assets 45,941 162,398 34,058 NET ASSETS: Beginning of year 210,053 172,482 20,848 ---------- ---------- --------- End of year $255,994 $334,880 $54,906 ========== ========== =========
SA-111 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
HUNTINGTON VA HUNTINGTON VA INCOME DIVIDEND HUNTINGTON VA EQUITY FUND CAPTURE FUND GROWTH FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,274) $54,425 $(13,313) Net realized gain (loss) on security transactions 17,134 6,342 6,993 Net realized gain on distributions 45,842 96,006 9,150 Net unrealized appreciation (depreciation) of investments during the year 94,728 471,318 43,906 ------------ ------------ ----------- Net increase (decrease) in net assets resulting from operations 156,430 628,091 46,736 ------------ ------------ ----------- UNIT TRANSACTIONS: Purchases 301,967 1,690,753 163,943 Net transfers 145,128 533,847 90,591 Surrenders for benefit payments and fees (182,126) (284,538) (142,457) Net annuity transactions -- -- -- ------------ ------------ ----------- Net increase (decrease) in net assets resulting from unit transactions 264,969 1,940,062 112,077 ------------ ------------ ----------- Net increase (decrease) in net assets 421,399 2,568,153 158,813 NET ASSETS: Beginning of year 1,377,629 3,255,398 797,756 ------------ ------------ ----------- End of year $1,799,028 $5,823,551 $956,569 ============ ============ ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-112 -------------------------------------------------------------------------------
HUNTINGTON VA HUNTINGTON VA HUNTINGTON VA MID CORP HUNTINGTON VA ROTATING INTERNATIONAL AMERICA FUND NEW ECONOMY FUND MARKETS FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(48,009) $(41,308) $(16,719) $1,547 Net realized gain (loss) on security transactions 15,410 2,536 18,059 209 Net realized gain on distributions 33,799 28,216 38,861 5,092 Net unrealized appreciation (depreciation) of investments during the year 157,470 193,307 150,957 92,300 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 158,670 182,751 191,158 99,148 ------------ ------------ ------------ ------------ UNIT TRANSACTIONS: Purchases 1,399,113 1,020,202 218,977 804,942 Net transfers 358,917 276,540 55,438 200,184 Surrenders for benefit payments and fees (213,003) (137,423) (123,936) (12,483) Net annuity transactions -- -- -- -- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions 1,545,027 1,159,319 150,479 992,643 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets 1,703,697 1,342,070 341,637 1,091,791 NET ASSETS: Beginning of year 2,089,189 1,573,596 1,045,427 49,198 ------------ ------------ ------------ ------------ End of year $3,792,886 $2,915,666 $1,387,064 $1,140,989 ============ ============ ============ ============ HUNTINGTON VA HUNTINGTON VA MORTGAGE HUNTINGTON VA MACRO 100 FUND SECURITIES FUND SITUS SMALL CAP FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- -------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(10,141) $(2,733) $(38,726) Net realized gain (loss) on security transactions 742 31 1,181 Net realized gain on distributions 4,944 -- 31,681 Net unrealized appreciation (depreciation) of investments during the year 32,813 15,631 78,912 ---------- ---------- ------------ Net increase (decrease) in net assets resulting from operations 28,358 12,929 73,048 ---------- ---------- ------------ UNIT TRANSACTIONS: Purchases 453,776 416,906 1,569,854 Net transfers 149,331 198,443 464,914 Surrenders for benefit payments and fees (18,597) (2,967) (58,967) Net annuity transactions -- -- -- ---------- ---------- ------------ Net increase (decrease) in net assets resulting from unit transactions 584,510 612,382 1,975,801 ---------- ---------- ------------ Net increase (decrease) in net assets 612,868 625,311 2,048,849 NET ASSETS: Beginning of year 290,672 28,870 1,059,071 ---------- ---------- ------------ End of year $903,540 $654,181 $3,107,920 ========== ========== ============
SA-113 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
MFS CAPITAL MFS MFS OPPORTUNITIES EMERGING GLOBAL EQUITY SERIES GROWTH SERIES SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(180,478) $(311,937) $(123,878) Net realized gain (loss) on security transactions (731,414) (750,437) 98,774 Net realized gain on distributions -- -- 664,741 Net unrealized appreciation (depreciation) of investments during the year 2,505,709 2,114,840 1,213,349 ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 1,593,817 1,052,466 1,852,986 ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 140,781 1,524,500 711,750 Net transfers (1,027,293) (870,432) 790,169 Surrenders for benefit payments and fees (1,426,148) (1,772,813) (765,036) Net annuity transactions (4,180) (3,929) -- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (2,316,840) (1,122,674) 736,883 ------------- ------------- ------------- Net increase (decrease) in net assets (723,023) (70,208) 2,589,869 NET ASSETS: Beginning of year 15,068,485 18,057,202 8,143,782 ------------- ------------- ------------- End of year $14,345,462 $17,986,994 $10,733,651 ============= ============= =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-114 -------------------------------------------------------------------------------
MFS MFS MFS MFS HIGH INCOME INVESTORS GROWTH INVESTORS MID CAP SERIES STOCK SERIES TRUST SERIES GROWTH SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $4,643,218 $(471,866) $(1,703,035) $(780,914) Net realized gain (loss) on security transactions 245,715 (140,864) 237,929 484,382 Net realized gain on distributions -- -- -- 1,447,433 Net unrealized appreciation (depreciation) of investments during the year 1,549,138 2,072,877 15,124,337 (853,065) ------------- ------------- -------------- ------------- Net increase (decrease) in net assets resulting from operations 6,438,071 1,460,147 13,659,231 297,836 ------------- ------------- -------------- ------------- UNIT TRANSACTIONS: Purchases 7,200,380 1,033,244 26,786,023 2,333,202 Net transfers (3,924,871) (3,126,847) 9,292,819 (2,188,857) Surrenders for benefit payments and fees (7,704,272) (2,309,848) (7,699,983) (3,712,385) Net annuity transactions 32,324 (27,392) 9,166 -- ------------- ------------- -------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (4,396,439) (4,430,843) 28,388,025 (3,568,040) ------------- ------------- -------------- ------------- Net increase (decrease) in net assets 2,041,632 (2,970,696) 42,047,256 (3,270,204) NET ASSETS: Beginning of year 79,981,846 29,076,450 105,749,840 44,827,036 ------------- ------------- -------------- ------------- End of year $82,023,478 $26,105,754 $147,797,096 $41,556,832 ============= ============= ============== ============= MFS MFS NEW DISCOVERY TOTAL RETURN MFS SERIES SERIES VALUE SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(1,445,463) $1,696,675 $(320,312) Net realized gain (loss) on security transactions 1,039,273 699,273 50,706 Net realized gain on distributions 1,238,573 12,092,329 765,223 Net unrealized appreciation (depreciation) of investments during the year 8,897,729 24,783,649 5,318,474 ------------- -------------- ------------- Net increase (decrease) in net assets resulting from operations 9,730,112 39,271,926 5,814,091 ------------- -------------- ------------- UNIT TRANSACTIONS: Purchases 23,227,014 89,149,365 14,857,137 Net transfers (297,135) 16,029,823 9,484,662 Surrenders for benefit payments and fees (5,859,043) (28,794,434) (2,451,900) Net annuity transactions (7,320) 145,426 -- ------------- -------------- ------------- Net increase (decrease) in net assets resulting from unit transactions 17,063,516 76,530,180 21,889,899 ------------- -------------- ------------- Net increase (decrease) in net assets 26,793,628 115,802,106 27,703,990 NET ASSETS: Beginning of year 69,821,663 354,282,839 23,049,531 ------------- -------------- ------------- End of year $96,615,291 $470,084,945 $50,753,521 ============= ============== =============
SA-115 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
MFS MFS RESEARCH RESEARCH BOND INTERNATIONAL MFS SERIES SERIES RESEARCH SERIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $42,080 $(39,568) $(15,953) Net realized gain (loss) on security transactions 3,751 (501,437) 7,602 Net realized gain on distributions 17,786 154,165 -- Net unrealized appreciation (depreciation) of investments during the year 166,628 577,639 110,717 ------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations 230,245 190,799 102,366 ------------- ------------ ------------ UNIT TRANSACTIONS: Purchases 4,847,891 2,448,582 347,612 Net transfers 3,820,184 4,161,848 307,001 Surrenders for benefit payments and fees (352,609) (302,314) (66,965) Net annuity transactions -- -- -- ------------- ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions 8,315,466 6,308,116 587,648 ------------- ------------ ------------ Net increase (decrease) in net assets 8,545,711 6,498,915 690,014 NET ASSETS: Beginning of year 2,583,654 857,274 805,755 ------------- ------------ ------------ End of year $11,129,365 $7,356,189 $1,495,769 ============= ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-116 -------------------------------------------------------------------------------
BLACKROCK BLACKROCK GLOBAL GROWTH LARGE CAP GROWTH U.S. CAPITAL V.I. FUND V.I. FUND MID CAP VALUE OPPORTUNITIES SUB-ACCOUNT (F) SUB-ACCOUNT (G) SUB-ACCOUNT (H) SUB-ACCOUNT (H) --------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(2,488) $(19,748) $(47) $(38) Net realized gain (loss) on security transactions 7,794 151,776 8 2 Net realized gain on distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments during the year 36,432 (88,135) 817 655 ---------- ------------ ------- --------- Net increase (decrease) in net assets resulting from operations 41,738 43,893 778 619 ---------- ------------ ------- --------- UNIT TRANSACTIONS: Purchases -- 29,153 8,214 9,087 Net transfers 11,286 (30,540) 567 6,498 Surrenders for benefit payments and fees (20,445) (518,343) -- -- Net annuity transactions -- -- -- -- ---------- ------------ ------- --------- Net increase (decrease) in net assets resulting from unit transactions (9,159) (519,730) 8,781 15,585 ---------- ------------ ------- --------- Net increase (decrease) in net assets 32,579 (475,837) 9,559 16,204 NET ASSETS: Beginning of year 212,231 1,423,571 -- -- ---------- ------------ ------- --------- End of year $244,810 $947,734 $9,559 $16,204 ========== ============ ======= ========= COLUMBIA DEVELOPING ASSET ALLOCATION GROWTH FLEXIBLE INCOME FUND VS SUB-ACCOUNT (H) SUB-ACCOUNT (H) SUB-ACCOUNT (E)(I) ----------------------------- ----------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(22) $82 $240,732 Net realized gain (loss) on security transactions 1 -- 1,167,973 Net realized gain on distributions -- -- 1,101,336 Net unrealized appreciation (depreciation) of investments during the year 537 80 (1,948,012) ------- --------- ------------- Net increase (decrease) in net assets resulting from operations 516 162 562,029 ------- --------- ------------- UNIT TRANSACTIONS: Purchases 6,000 7,400 82,867 Net transfers -- 7,567 (1,335,410) Surrenders for benefit payments and fees -- (1) (1,479,277) Net annuity transactions -- -- -- ------- --------- ------------- Net increase (decrease) in net assets resulting from unit transactions 6,000 14,966 (2,731,820) ------- --------- ------------- Net increase (decrease) in net assets 6,516 15,128 (2,169,791) NET ASSETS: Beginning of year -- -- 10,686,368 ------- --------- ------------- End of year $6,516 $15,128 $8,516,577 ======= ========= =============
(e) From inception, May 1, 2006 to December 31, 2006. (f) Formerly Mercury Global Growth V.I. Fund. Change effective October 2, 2006. (g) Formerly Mercury Large Cap Growth V.I. Fund. Change effective October 2, 2006. (h) From inception, August 14, 2006 to December 31, 2006. (i) Effective May 1, 2006, Nations Asset Allocation Portfolio merged with Columbia Asset Allocation Fund VS. SA-117 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA SMALL COMPANY LARGE CAP MARSICO INTERNATIONAL GROWTH FUND VS VALUE FUND VS OPPORTUNITIES FUND VS SUB-ACCOUNT (E)(J) SUB-ACCOUNT (E)(K) SUB-ACCOUNT (L) ----------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(478,857) $413,615 $(702,773) Net realized gain (loss) on security transactions 5,023,493 9,074,881 1,813,201 Net realized gain on distributions 4,653,683 3,603,938 1,162,939 Net unrealized appreciation (depreciation) of investments during the year (6,837,079) (7,330,178) 5,130,597 ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 2,361,240 5,762,256 7,403,964 ------------- ------------- ------------- UNIT TRANSACTIONS: Purchases 261,719 403,029 522,272 Net transfers (987,761) (1,174,954) (1,964,943) Surrenders for benefit payments and fees (3,474,635) (5,816,264) (4,928,810) Net annuity transactions (1,367) 31,487 (2,032) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions (4,202,044) (6,556,702) (6,373,513) ------------- ------------- ------------- Net increase (decrease) in net assets (1,840,804) (794,446) 1,030,451 NET ASSETS: Beginning of year 23,584,440 40,041,708 39,277,636 ------------- ------------- ------------- End of year $21,743,636 $39,247,262 $40,308,087 ============= ============= =============
(e) From inception, May 1, 2006 to December 31, 2006. (j) Effective May 1, 2006, Nations Small Company Portfolio merged with Columbia Small Company Growth Fund VS. (k) Effective May 1, 2006, Nations Value Portfolio merged with Columbia Large Cap Value Fund VS. (l) Formerly Nations Marsico International Opportunities Portfolio. Change effective May 1, 2006. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-118 -------------------------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA COLUMBIA MARSICO HIGH YIELD MARSICO FOCUSED MARSICO 21ST CENTURY FUND VS EQUITIES FUND VS GROWTH FUND VS FUND VS SUB-ACCOUNT (M) SUB-ACCOUNT (N) SUB-ACCOUNT (O) SUB-ACCOUNT (P) -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $124,488 $(643,251) $(583,494) $(143,274) Net realized gain (loss) on security transactions 219,553 1,302,418 785,054 194,663 Net realized gain on distributions 247,279 -- -- 253,285 Net unrealized appreciation (depreciation) of investments during the year 1,923,234 1,058,816 837,508 949,586 ------------- ------------- ------------- ------------ Net increase (decrease) in net assets resulting from operations 2,514,554 1,717,983 1,039,068 1,254,260 ------------- ------------- ------------- ------------ UNIT TRANSACTIONS: Purchases 186,054 357,686 222,842 143,019 Net transfers (271,871) (66,040) (107,667) 450,029 Surrenders for benefit payments and fees (4,401,273) (5,511,833) (4,066,416) (836,792) Net annuity transactions -- (3,126) -- -- ------------- ------------- ------------- ------------ Net increase (decrease) in net assets resulting from unit transactions (4,487,090) (5,223,313) (3,951,241) (243,744) ------------- ------------- ------------- ------------ Net increase (decrease) in net assets (1,972,536) (3,505,330) (2,912,173) 1,010,516 NET ASSETS: Beginning of year 30,808,949 33,886,896 30,077,529 7,355,365 ------------- ------------- ------------- ------------ End of year $28,836,413 $30,381,566 $27,165,356 $8,365,881 ============= ============= ============= ============ JPMORGAN JPMORGAN COLUMBIA INSURANCE TRUST INSURANCE TRUST MARSICO MIDCAP BALANCED CORE BOND GROWTH FUND VS PORTFOLIO - 1 PORTFOLIO - 1 SUB-ACCOUNT (Q) SUB-ACCOUNT (R) SUB-ACCOUNT (S) ----------------------------- ------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $(722,932) $17,369 $526,810 Net realized gain (loss) on security transactions 1,084,642 731 1,959 Net realized gain on distributions 1,629,903 -- -- Net unrealized appreciation (depreciation) of investments during the year 3,074,652 118,714 411,753 ------------- ------------ ------------- Net increase (decrease) in net assets resulting from operations 5,066,265 136,814 940,522 ------------- ------------ ------------- UNIT TRANSACTIONS: Purchases 348,582 88,264 9,669,357 Net transfers (1,720,202) 51,970 6,149,770 Surrenders for benefit payments and fees (4,770,828) (182,345) (2,044,211) Net annuity transactions -- -- -- ------------- ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions (6,142,448) (42,111) 13,774,916 ------------- ------------ ------------- Net increase (decrease) in net assets (1,076,183) 94,703 14,715,438 NET ASSETS: Beginning of year 35,245,560 1,552,130 24,875,629 ------------- ------------ ------------- End of year $34,169,377 $1,646,833 $39,591,067 ============= ============ =============
(m) Formerly Nations High Yield Bond Portfolio. Change effective May 1, 2006. (n) Formerly Nations Marsico Focused Equities Portfolio. Change effective May 1, 2006. (o) Formerly Nations Marsico Growth Portfolio. Change effective May 1, 2006. (p) Formerly Nations Marsico 21st Century Portfolio. Change effective May 1, 2006. (q) Formerly Nations Marsico Midcap Growth Portfolio. Change effective May 1, 2006. (r) Formerly JPMorgan Investment Trust Balanced Portfolio. Change effective May 1, 2006. (s) Formerly JPMorgan Investment Trust Bond Portfolio. Change effective May 1, 2006. SA-119 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST DIVERSIFIED EQUITY INTREPID MID CAP EQUITY INDEX PORTFOLIO - 1 PORTFOLIO - 1 PORTFOLIO - 1 SUB-ACCOUNT (T) SUB-ACCOUNT (U) SUB-ACCOUNT (V) ------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(69,556) $(43,800) $(112,002) Net realized gain (loss) on security transactions 421 1,632 4,877 Net realized gain on distributions -- 289,203 -- Net unrealized appreciation (depreciation) of investments during the year 1,169,346 103,200 3,743,712 ------------ ------------ ------------- Net increase (decrease) in net assets resulting from operations 1,100,211 350,235 3,636,587 ------------ ------------ ------------- UNIT TRANSACTIONS: Purchases 2,385,698 3,212,678 8,134,324 Net transfers 986,529 1,649,879 3,268,069 Surrenders for benefit payments and fees (428,093) (88,071) (1,498,348) Net annuity transactions -- -- -- ------------ ------------ ------------- Net increase (decrease) in net assets resulting from unit transactions 2,944,134 4,774,486 9,904,045 ------------ ------------ ------------- Net increase (decrease) in net assets 4,044,345 5,124,721 13,540,632 NET ASSETS: Beginning of year 5,827,945 760,747 20,707,928 ------------ ------------ ------------- End of year $9,872,290 $5,885,468 $34,248,560 ============ ============ =============
(t) Formerly JPMorgan Investment Trust Diversified Equity Portfolio. Change effective May 1, 2006. (u) Formerly JPMorgan Investment Trust Diversified Mid Cap Portfolio. Change effective May 1, 2006. (v) Formerly JPMorgan Investment Trust Equity Index Portfolio. Change effective May 1, 2006. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-120 -------------------------------------------------------------------------------
JPMORGAN JPMORGAN JPMORGAN JPMORGAN INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST INSURANCE TRUST GOVERNMENT BOND INTREPID GROWTH DIVERSIFIED MID CAP DIVERSIFIED MID CAP PORTFOLIO - 1 PORTFOLIO - 1 GROWTH PORTFOLIO - 1 VALUE PORTFOLIO - 1 SUB-ACCOUNT (W) SUB-ACCOUNT (X) SUB-ACCOUNT (Y) SUB-ACCOUNT (Z) ------------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $383,597 $(3,169) $(167,326) $(91,271) Net realized gain (loss) on security transactions 1,907 1,081 16,204 16,165 Net realized gain on distributions -- -- 256,305 949,142 Net unrealized appreciation (depreciation) of investments during the year (79,786) 11,057 783,195 503,445 ------------- ---------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 305,718 8,969 888,378 1,377,481 ------------- ---------- ------------- ------------- UNIT TRANSACTIONS: Purchases 3,904,161 65,792 3,587,111 1,742,445 Net transfers 2,129,213 59,919 784,028 454,660 Surrenders for benefit payments and fees (801,645) (21,131) (496,207) (635,208) Net annuity transactions -- -- -- -- ------------- ---------- ------------- ------------- Net increase (decrease) in net assets resulting from unit transactions 5,231,729 104,580 3,874,932 1,561,897 ------------- ---------- ------------- ------------- Net increase (decrease) in net assets 5,537,447 113,549 4,763,310 2,939,378 NET ASSETS: Beginning of year 10,230,625 138,438 7,447,832 8,098,872 ------------- ---------- ------------- ------------- End of year $15,768,072 $251,987 $12,211,142 $11,038,250 ============= ========== ============= ============= JENNISON 20/20 JENNISON PRUDENTIAL FOCUS PORTFOLIO PORTFOLIO VALUE PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(5,084) $(12,054) $(2,076) Net realized gain (loss) on security transactions 13,451 (7,029) 22,789 Net realized gain on distributions 20,143 -- 9,330 Net unrealized appreciation (depreciation) of investments during the year 6,895 15,493 9,726 ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations 35,405 (3,590) 39,769 ---------- ---------- ---------- UNIT TRANSACTIONS: Purchases 960 319 590 Net transfers 2,804 (14,064) (41,358) Surrenders for benefit payments and fees (31,816) (21,919) (28,068) Net annuity transactions -- -- -- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from unit transactions (28,052) (35,664) (68,836) ---------- ---------- ---------- Net increase (decrease) in net assets 7,353 (39,254) (29,067) NET ASSETS: Beginning of year 304,064 759,815 273,312 ---------- ---------- ---------- End of year $311,417 $720,561 $244,245 ========== ========== ==========
(w) Formerly JPMorgan Investment Trust Government Bond Portfolio. Change effective May 1, 2006. (x) Formerly JPMorgan Investment Trust Large Cap Growth Portfolio. Change effective November 1, 2006. (y) Formerly JPMorgan Investment Trust Mid Cap Growth Portfolio. Change effective May 1, 2006. (z) Formerly JPMorgan Investment Trust Mid Cap Value Portfolio. Change effective May 1, 2006. SA-121 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
LEGG MASON LEGG MASON PARTNERS VARIABLE SP WILLIAM PARTNERS VARIABLE GLOBAL HIGH BLAIR INTERNATIONAL ALL CAP YIELD BOND GROWTH PORTFOLIO PORTFOLIO PORTFOLIO SUB-ACCOUNT SUB-ACCOUNT (AA) SUB-ACCOUNT (BB) --------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(21) $(3,944) $10,249 Net realized gain (loss) on security transactions 8 71,949 3,124 Net realized gain on distributions 1,706 103,609 1,435 Net unrealized appreciation (depreciation) of investments during the year 1,843 273,968 10,254 --------- ------------ ---------- Net increase (decrease) in net assets resulting from operations 3,536 445,582 25,062 --------- ------------ ---------- UNIT TRANSACTIONS: Purchases -- 2,960 -- Net transfers 8,183 10,445 6,355 Surrenders for benefit payments and fees (31) (386,104) (77,270) Net annuity transactions -- -- -- --------- ------------ ---------- Net increase (decrease) in net assets resulting from unit transactions 8,152 (372,699) (70,915) --------- ------------ ---------- Net increase (decrease) in net assets 11,688 72,883 (45,853) NET ASSETS: Beginning of year 13,256 2,902,626 297,493 --------- ------------ ---------- End of year $24,944 $2,975,509 $251,640 ========= ============ ==========
(aa) Formerly Salomon Brothers Variable All Cap Fund. Change effective May 1 , 2006. (bb) Formerly Salomon Brothers Variable High Yield Bond Fund. Change effective May 1, 2006. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-122 -------------------------------------------------------------------------------
LEGG MASON LEGG MASON PARTNERS VARIABLE PARTNERS VARIABLE INVESTORS TOTAL RETURN PORTFOLIO PORTFOLIO GROWTH AND INCOME COMSTOCK SUB-ACCOUNT (CC) SUB-ACCOUNT (DD) SUB-ACCOUNT (H) SUB-ACCOUNT (H) ------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income (loss) $2,246 $2,322 $(110) $(647) Net realized gain (loss) on security transactions 5,667 1,155 1 11 Net realized gain on distributions 21,260 6,401 -- -- Net unrealized appreciation (depreciation) of investments during the year 108,508 26,007 1,872 7,615 ---------- ---------- --------- ---------- Net increase (decrease) in net assets resulting from operations 137,681 35,885 1,763 6,979 ---------- ---------- --------- ---------- UNIT TRANSACTIONS: Purchases 4,820 660 39,191 150,649 Net transfers 38,215 12,456 12,230 87 Surrenders for benefit payments and fees (72,402) (15,086) 1 (1) Net annuity transactions -- -- -- -- ---------- ---------- --------- ---------- Net increase (decrease) in net assets resulting from unit transactions (29,367) (1,970) 51,422 150,735 ---------- ---------- --------- ---------- Net increase (decrease) in net assets 108,314 33,915 53,185 157,714 NET ASSETS: Beginning of year 856,452 326,537 -- -- ---------- ---------- --------- ---------- End of year $964,766 $360,452 $53,185 $157,714 ========== ========== ========= ========== WELLS FARGO WELLS FARGO ADVANTAGE VT WELLS FARGO ADVANTAGE VT ASSET TOTAL RETURN ADVANTAGE VT EQUITY ALLOCATION FUND BOND FUND INCOME FUND SUB-ACCOUNT (EE) SUB-ACCOUNT (FF) SUB-ACCOUNT (GG) ----------------------------- --------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $58 $243 $(7) Net realized gain (loss) on security transactions 3 -- 474 Net realized gain on distributions 138 -- 69 Net unrealized appreciation (depreciation) of investments during the year 997 (47) 4,277 --------- ------- --------- Net increase (decrease) in net assets resulting from operations 1,196 196 4,813 --------- ------- --------- UNIT TRANSACTIONS: Purchases -- -- -- Net transfers -- -- 279 Surrenders for benefit payments and fees (1) 1 (6,506) Net annuity transactions -- -- -- --------- ------- --------- Net increase (decrease) in net assets resulting from unit transactions (1) 1 (6,227) --------- ------- --------- Net increase (decrease) in net assets 1,195 197 (1,414) NET ASSETS: Beginning of year 11,855 7,986 32,487 --------- ------- --------- End of year $13,050 $8,183 $31,073 ========= ======= =========
(h) From inception, August 14, 2006 to December 31, 2006. (cc) Formerly Salomon Brothers Variable Investors Fund. Change effective May 1, 2006. (dd) Formerly Salomon Brothers Variable Total Return Fund. Change effective May 1, 2006. (ee) Formerly Wells Fargo Advantage Asset Allocation Fund. Change effective May 1, 2006. (ff) Formerly Wells Fargo Advantage Total Return Bond Fund. Change effective May 1, 2006. (gg) Formerly Wells Fargo Advantage Equity Income Fund. Change effective May 1, 2006. SA-123 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 -------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE VT WELLS FARGO INTERNATIONAL ADVANTAGE VT LARGE CORE FUND COMPANY GROWTH FUND SUB-ACCOUNT (HH) SUB-ACCOUNT (II) -------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(16) $(139) Net realized gain (loss) on security transactions 34 2 Net realized gain on distributions 372 -- Net unrealized appreciation (depreciation) of investments during the year 1,252 211 --------- ------- Net increase (decrease) in net assets resulting from operations 1,642 74 --------- ------- UNIT TRANSACTIONS: Purchases -- -- Net transfers (91) 953 Surrenders for benefit payments and fees (4) (5) Net annuity transactions -- -- --------- ------- Net increase (decrease) in net assets resulting from unit transactions (95) 948 --------- ------- Net increase (decrease) in net assets 1,547 1,022 NET ASSETS: Beginning of year 8,793 7,132 --------- ------- End of year $10,340 $8,154 ========= =======
(hh) Formerly Wells Fargo Advantage International Core Fund. Change effective May 1, 2006. (ii) Formerly Wells Fargo Advantage Large Company Core Fund. Change effective May 1, 2006. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. SA-124 -------------------------------------------------------------------------------
WELLS FARGO STI CLASSIC VT STI CLASSIC VT ADVANTAGE VT SMALL CAPITAL LARGE CAP RELATIVE CAP GROWTH FUND APPRECIATION FUND VALUE FUND SUB-ACCOUNT (JJ) SUB-ACCOUNT SUB-ACCOUNT -------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $(108) $(118,903) $(15,918) Net realized gain (loss) on security transactions 68 42,109 87,579 Net realized gain on distributions 140 399,262 132,343 Net unrealized appreciation (depreciation) of investments during the year 1,045 226,296 42,118 ------- ------------ ------------ Net increase (decrease) in net assets resulting from operations 1,145 548,764 246,122 ------- ------------ ------------ UNIT TRANSACTIONS: Purchases -- 1,139,814 67,540 Net transfers 168 184,510 (61,407) Surrenders for benefit payments and fees (6) (866,411) (337,642) Net annuity transactions -- -- -- ------- ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions 162 457,913 (331,509) ------- ------------ ------------ Net increase (decrease) in net assets 1,307 1,006,677 (85,387) NET ASSETS: Beginning of year 5,246 6,158,297 2,004,825 ------- ------------ ------------ End of year $6,553 $7,164,974 $1,919,438 ======= ============ ============ STI CLASSIC VT STI CLASSIC VT MID-CAP LARGE CAP VALUE EQUITY FUND EQUITY FUND SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ---------------------------------------------- OPERATIONS: Net investment income (loss) $(31,061) $(21,747) Net realized gain (loss) on security transactions 54,021 60,263 Net realized gain on distributions 136,745 -- Net unrealized appreciation (depreciation) of investments during the year (11,671) 623,979 ------------ ------------ Net increase (decrease) in net assets resulting from operations 148,034 662,495 ------------ ------------ UNIT TRANSACTIONS: Purchases 142,677 1,033,124 Net transfers 16,732 133,542 Surrenders for benefit payments and fees (208,624) (418,509) Net annuity transactions -- -- ------------ ------------ Net increase (decrease) in net assets resulting from unit transactions (49,215) 748,157 ------------ ------------ Net increase (decrease) in net assets 98,819 1,410,652 NET ASSETS: Beginning of year 1,786,410 2,937,715 ------------ ------------ End of year $1,885,229 $4,348,367 ============ ============
(jj) Formerly Wells Fargo Advantage Small Cap Growth Fund. Change effective May 1, 2006. SA-125 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2007 ------------------------------------------------------------------------------- 1. ORGANIZATION: Separate Account Seven (the "Account") is a separate investment account within Hartford Life Insurance Company (the "Company") and is registered with the Securities and Exchange Commission ("SEC") as a unit investment trust under the Investment Company Act of 1940, as amended. Both the Company and the Account are subject to supervision and regulation by the Department of Insurance of the State of Connecticut and the SEC. The Account invests deposits by variable annuity contract owners of the Company in various mutual funds (the "Funds") as directed by the contract owners. The Account invests in the following sub-accounts (collectively, the "Sub-Accounts"): the AIM V.I. Basic Value Fund, AIM V.I. Capital Appreciation Fund, AIM V.I. Core Equity Fund, AIM V.I. Government Securities Fund, AIM V.I. High Yield Fund, AIM V.I. International Growth Fund, AIM V.I. Mid Cap Core Equity Fund, AIM V.I. Small Cap Equity Fund, AIM V.I. Large Cap Growth Fund, AIM V.I. Capital Development Fund, American Funds Global Bond Fund, American Funds Global Growth and Income Fund, American Funds Asset Allocation Fund, American Funds Blue Chip Income and Growth Fund, American Funds Bond Fund, American Funds Global Growth Fund, American Funds Growth Fund, American Funds Growth-Income Fund, American Funds International Fund, American Funds New World Fund, American Funds Global Small Capitalization Fund, Columbia Asset Allocation Fund VS, Columbia Small Company Growth Fund VS, Columbia Large Cap Value Fund VS, Evergreen VA Balanced Fund, Evergreen VA Growth Fund, Evergreen VA International Equity Fund, Evergreen VA Omega Fund, Evergreen VA Special Values Fund, Evergreen VA Fundamental Large Cap Fund, Franklin Rising Dividends Securities Fund, Franklin Income Securities Fund, Franklin Large Cap Growth Securities Fund, Franklin Global Real Estate Securities Fund, Franklin Small-Mid Cap Growth Securities Fund, Franklin Small Cap Value Securities Fund, Franklin Strategic Income Securities Fund, Mutual Shares Securities Fund, Templeton Developing Markets Securities Fund, Templeton Foreign Securities Fund, Templeton Global Asset Allocation Fund, Templeton Growth Securities Fund, Mutual Discovery Securities Fund, Franklin Flex Cap Growth Securities Fund, Franklin Large Cap Value Securities Fund, Hartford Advisers HLS Fund, Hartford Total Return Bond HLS Fund, Hartford Capital Appreciation HLS Fund, Hartford Dividend and Growth HLS Fund, Hartford Fundamental Growth HLS Fund, Hartford Global Advisers HLS Fund, Hartford Global Communications HLS Fund, Hartford Global Financial Services HLS Fund, Hartford Global Health HLS Fund, Hartford Global Growth HLS Fund, Hartford Global Technology HLS Fund, Hartford Disciplined Equity HLS Fund, Hartford Growth HLS Fund, Hartford Growth Opportunities HLS Fund, Hartford High Yield HLS Fund, Hartford Index HLS Fund, Hartford International Growth HLS Fund, Hartford International Small Company HLS Fund, Hartford International Opportunities HLS Fund, Hartford MidCap HLS Fund, Hartford MidCap Value HLS Fund, Hartford Money Market HLS Fund, Hartford Mortgage Securities HLS Fund, Hartford Small Company HLS Fund, Hartford SmallCap Growth HLS Fund, Hartford Stock HLS Fund, Hartford U.S. Government Securities HLS Fund, Hartford Value HLS Fund, Hartford Value Opportunities HLS Fund, Hartford Equity Income HLS Fund, Huntington VA Income Equity Fund, Huntington VA Dividend Capture Fund, Huntington VA Growth Fund, Huntington VA Mid Corp America Fund, Huntington VA New Economy Fund, Huntington VA Rotating Markets Fund, Huntington VA International Equity Fund, Huntington VA Macro 100 Fund, Huntington VA Mortgage Securities Fund, Huntington VA Situs Small Cap Fund, MFS Core Equity Series, MFS Emerging Growth Series, MFS Global Equity Series, MFS High Income Series, MFS Investors Growth Stock Series, MFS Investors Trust Series, MFS Mid Cap Growth Series, MFS New Discovery Series, MFS Total Return Series, MFS Value Series, MFS Research Bond Series, MFS Research International Series, MFS Research Series, BlackRock Global Growth V.I. Fund, BlackRock Large Cap Growth V.I. Fund, International Growth Equity Fund, U.S. Mid Cap Value, Capital Opportunities, Developing Growth, Flexible Income, Dividend Growth, Global Equity, Columbia Marsico International Opportunities Fund VS, Columbia High Yield Fund VS, Columbia Marsico Focused Equities Fund VS, Columbia Marsico Growth Fund VS, Columbia Marsico 21st Century Fund VS, Columbia Marsico Midcap Growth Fund VS, JPMorgan Insurance Trust Balanced Portfolio -- 1, JPMorgan Insurance Trust Core Bond Portfolio -- 1, JPMorgan Insurance Trust Diversified Equity Portfolio -- 1, JPMorgan Insurance Trust Intrepid Mid Cap Portfolio -- 1, JPMorgan Insurance Trust Equity Index Portfolio -- 1, JPMorgan Insurance Trust Government Bond Portfolio -- 1, JPMorgan Insurance Trust Intrepid Growth Portfolio -- 1, JPMorgan Insurance Trust Diversified Mid Cap Growth Portfolio -- 1, JPMorgan Insurance Trust Diversified Mid Cap Value Portfolio -- 1, Jennison 20/20 Focus Portfolio, Jennison Portfolio, Prudential Value Portfolio, Prudential Series International Growth, Legg Mason Partners Variable Capital and Income Portfolio, Legg Mason Partners Variable Fundamental Value Portfolio, Legg Mason Partners Variable Global High Yield Bond Portfolio, Legg Mason SA-126 ------------------------------------------------------------------------------- Partners Variable Investors Portfolio, Growth and Income, Comstock, Wells Fargo Advantage VT Asset Allocation Fund, Wells Fargo Advantage VT Total Return Bond Fund, Wells Fargo Advantage VT Equity Income Fund, Wells Fargo Advantage VT C&B Large Cap Value Fund, Wells Fargo Advantage VT International Core Fund, Wells Fargo Advantage VT Large Company Growth Fund, Wells Fargo Advantage VT Small Cap Growth Fund, STI Classic VT Large Cap Growth Stock Fund, STI Classic VT Large Cap Core Equity Fund, STI Classic VT Mid-Cap Core Equity Fund, and STI Classic VT Large Cap Value Equity Fund. 2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of significant accounting policies of the Account, which are in accordance with accounting principles generally accepted in the United States of America: a) SECURITY TRANSACTIONS -- Security transactions are recorded on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sales of securities are computed using the last in first out method. Dividend and net realized gain on distributions income is accrued as of the ex-dividend date. Net realized gain on distributions income represents dividends from the Funds which are characterized as capital gains under tax regulations. b) SECURITY VALUATION -- The investments in shares of the Funds are valued at the closing net asset value per share as determined by the appropriate Fund as of December 31, 2007. c) UNIT TRANSACTIONS -- Unit transactions are executed based on the unit values calculated at the close of the business day. d) FEDERAL INCOME TAXES -- The operations of the Account form a part of, and are taxed with, the total operations of the Company, which is taxed as an insurance company under the Internal Revenue Code. Under current law, no federal income taxes are payable with respect to the operations of the Account. e) USE OF ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the period. Operating results in the future could vary from the amounts derived from management's estimates. f) MORTALITY RISK -- Net assets allocated to contracts in the annuity period are computed according to the 1983a Individual Annuitant Mortality Table and the Annuity 2000 Table. The Mortality Risk is fully borne by the Company and may result in additional amounts being transferred into the variable annuity account by the Company to cover greater longevity of contract owners than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Company. g) RECLASSIFICATIONS -- Certain reclassifications have been made to the December 31, 2006 Statements of Changes in Net Assets to conform to the current year presentation. h) FAIR VALUE MEASUREMENTS -- In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements" ("SFAS 157"). This statement defines fair value, establishes a framework for measuring fair value under accounting principles generally accepted in the United States, and enhances disclosures about fair value measurements. The definition focuses on the price that would be received to sell the asset or paid to transfer the liability (an exit price), not the price that would be paid to acquire the asset or received to assume the liability (an entry price). SFAS 157 provides guidance on how to measure fair value when required under existing accounting standards. SFAS 157 is effective for fiscal years beginning after November 15, 2007, with earlier application encouraged only in the initial quarter of an entity's fiscal year. The Account will adopt SFAS 157 on January 1, 2008. Adoption of this statement is not expected to have a material impact on the Account's financial statements. i) ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, AN INTERPRETATION OF FASB STATEMENT NO. 109 -- In July 2006, the FASB released "Accounting for Uncertainty in Income Taxes" ("FIN 48") to clarify accounting for income taxes recognized in the financial statements in accordance with FASB 109, "Accounting for Income Taxes." FIN 48 is effective for fiscal years beginning after December 15, 2006 and prescribes a comprehensive model for how an entity should recognize, measure, present and disclose in its financial statements uncertain tax positions that the entity has taken or expect to take on a tax return. Upon adoption, as of the first quarter of 2007, FIN 48 did not have an effect on the Account's financial condition. SA-127 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 ------------------------------------------------------------------------------- 3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES: Certain amounts are deducted from the contracts as described below: a) MORTALITY AND EXPENSE RISK CHARGES -- The Company will make deductions at a maximum annual rate of 1.55% of the contract's value for the mortality and expense risks which the company undertakes. b) TAX EXPENSE CHARGE -- If applicable, the Company will make deductions at a maximum rate of 3.5% of the contract's value to meet premium tax requirements. An additional tax charge based on a percentage of the contract's value may be assessed on partial withdrawals or surrenders. These expenses are included in surrenders for benefit payments and fees on the accompanying statements of changes in net assets. c) ADMINISTRATIVE CHARGE -- The Company will make deductions to cover administrative expenses at a maximum annual rate of 0.20% of the contract's value. d) ANNUAL MAINTENANCE FEE -- An annual maintenance fee in the amount of $30 may be charged from the contract's value each contract year. However, this fee is not applicable to contracts with values of $50,000 or more, as determined on the most recent contract anniversary. These expenses are included in surrenders for benefit payments and fees on the accompanying statements of changes in net assets. 4. PURCHASES AND SALES OF INVESTMENTS: The cost of purchases and proceeds from sales of investments for the year ended December 31, 2007 were as follows:
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES ------------------------------------------------------------------------------ AIM V.I. Basic Value Fund $11,322,859 $21,048,282 AIM V.I. Capital Appreciation Fund 5,227,486 13,168,339 AIM V.I. Core Equity Fund 6,510,715 19,816,362 AIM V.I. Government Securities Fund 118,989,608 39,354,284 AIM V.I. High Yield Fund 156,372 384,342 AIM V.I. International Growth Fund 50,540,326 25,611,873 AIM V.I. Mid Cap Core Equity Fund 17,984,201 24,427,868 AIM V.I. Small Cap Equity Fund 18,761,888 5,558,363 AIM V.I. Large Cap Growth Fund 6,235,922 7,584,421 AIM V.I. Capital Development Fund 197,108 179 American Funds Global Bond Fund 30,058,433 2,688,102 American Funds Global Growth and Income Fund 95,043,760 7,173,241 American Funds Asset Allocation Fund 84,638,393 59,553,219 American Funds Blue Chip Income and Growth Fund 45,046,282 43,766,800 American Funds Bond Fund 104,061,130 45,436,727 American Funds Global Growth Fund 45,784,809 23,355,238 American Funds Growth Fund 283,698,981 124,489,365 American Funds Growth-Income Fund 222,234,020 121,718,179 American Funds International Fund 85,847,799 51,303,220 American Funds New World Fund 60,998,696 25,866,033 American Funds Global Small Capitalization Fund 53,093,131 32,776,297 Columbia Asset Allocation Fund VS 2,029,863 2,453,461 Columbia Small Company Growth Fund VS 976,844 5,732,999 Columbia Large Cap Value Fund VS 5,406,676 9,676,689 Evergreen VA Balanced Fund 431,758 63,603 Evergreen VA Growth Fund 1,436,884 309,357 Evergreen VA International Equity Fund 1,163,345 176,948 Evergreen VA Omega Fund 775,737 649,296 Evergreen VA Special Values Fund 9,442,916 1,267,231 Evergreen VA Fundamental Large Cap Fund 342,913 82,536
SA-128 -------------------------------------------------------------------------------
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES ------------------------------------------------------------------------------ Franklin Rising Dividends Securities Fund $126,760,354 $27,203,561 Franklin Income Securities Fund 340,489,679 62,889,502 Franklin Large Cap Growth Securities Fund 18,343,131 11,960,272 Franklin Global Real Estate Securities Fund 1,079,774 2,035,684 Franklin Small-Mid Cap Growth Securities Fund 33,823,869 22,219,056 Franklin Small Cap Value Securities Fund 156,593 4,683 Franklin Strategic Income Securities Fund 66,760,715 25,668,845 Mutual Shares Securities Fund 187,026,848 64,826,098 Templeton Developing Markets Securities Fund 37,521,987 17,059,558 Templeton Foreign Securities Fund 51,783,018 36,420,245 Templeton Global Asset Allocation Fund 1,898,490 934,074 Templeton Growth Securities Fund 148,512,696 56,165,877 Mutual Discovery Securities Fund 68,740,560 19,309,988 Franklin Flex Cap Growth Securities Fund 7,877,795 2,544,271 Franklin Large Cap Value Securities Fund 4,009,429 1,771,885 Hartford Advisers HLS Fund 5,323,490 10,477,998 Hartford Total Return Bond HLS Fund 11,117,413 15,996,212 Hartford Capital Appreciation HLS Fund 15,973,430 20,830,030 Hartford Dividend and Growth HLS Fund 8,937,746 15,213,009 Hartford Fundamental Growth HLS Fund 1,122 636 Hartford Global Advisers HLS Fund 23,056 83,528 Hartford Global Communications HLS Fund 1,748 95 Hartford Global Financial Services HLS Fund 13,797 20,635 Hartford Global Health HLS Fund 114,241 316,783 Hartford Global Growth HLS Fund 276,033 954,580 Hartford Global Technology HLS Fund 3,214 196,110 Hartford Disciplined Equity HLS Fund 32,184 176,385 Hartford Growth HLS Fund 10,019 25,841 Hartford Growth Opportunities HLS Fund 83,053 44,873 Hartford High Yield HLS Fund 40,475 91,486 Hartford Index HLS Fund 76,230 696,415 Hartford International Growth HLS Fund 137,337 318,583 Hartford International Small Company HLS Fund 66,740 40,546 Hartford International Opportunities HLS Fund 4,378,628 4,643,905 Hartford MidCap HLS Fund 592,513 2,561,516 Hartford MidCap Value HLS Fund 84,305 164,426 Hartford Money Market HLS Fund 374,880,911 266,663,388 Hartford Mortgage Securities HLS Fund 244,579 62,135 Hartford Small Company HLS Fund 1,996,611 2,804,946 Hartford SmallCap Growth HLS Fund 21,521 31,140 Hartford Stock HLS Fund 5,115,776 7,594,766 Hartford U.S. Government Securities HLS Fund 45,356 114,594 Hartford Value HLS Fund 74,177 162,747 Hartford Value Opportunities HLS Fund 53,929 89,575 Hartford Equity Income HLS Fund 41,726 40,584 Huntington VA Income Equity Fund 1,089,953 335,544 Huntington VA Dividend Capture Fund 4,450,140 716,549 Huntington VA Growth Fund 1,171,469 245,143
SA-129 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES ------------------------------------------------------------------------------ Huntington VA Mid Corp America Fund $1,807,043 $558,011 Huntington VA New Economy Fund 2,284,129 434,657 Huntington VA Rotating Markets Fund 955,440 208,477 Huntington VA International Equity Fund 2,937,961 200,394 Huntington VA Macro 100 Fund 902,880 203,569 Huntington VA Mortgage Securities Fund 1,262,451 153,773 Huntington VA Situs Small Cap Fund 3,061,301 471,773 MFS Core Equity Series 998,529 4,345,369 MFS Emerging Growth Series 7,967,117 6,647,036 MFS Global Equity Series 4,011,629 4,056,388 MFS High Income Series 20,932,341 17,681,010 MFS Investors Growth Stock Series 2,628,267 7,199,641 MFS Investors Trust Series 37,731,949 18,355,360 MFS Mid Cap Growth Series 6,844,771 10,636,996 MFS New Discovery Series 31,234,486 17,453,680 MFS Total Return Series 130,875,535 50,934,236 MFS Value Series 35,684,422 12,341,092 MFS Research Bond Series 21,225,826 3,988,451 MFS Research International Series 15,009,917 3,218,271 MFS Research Series 2,672,886 657,237 BlackRock Global Growth V.I. Fund 3,100 7,539 BlackRock Large Cap Growth V.I. Fund 88,321 240,671 International Growth Equity Fund 64,128 445 U.S. Mid Cap Value 37,971 2,404 Capital Opportunities 169,689 8,296 Developing Growth 3,832 165 Flexible Income 81,470 712 Dividend Growth 7,792 85 Global Equity 8,455 88 Columbia Marsico International Opportunities Fund VS 3,273,089 11,008,672 Columbia High Yield Fund VS 2,428,224 6,661,048 Columbia Marsico Focused Equities Fund VS 1,940,341 7,764,003 Columbia Marsico Growth Fund VS 1,280,779 7,737,912 Columbia Marsico 21st Century Fund VS 2,176,505 2,384,963 Columbia Marsico Midcap Growth Fund VS 7,721,384 9,338,443 JPMorgan Insurance Trust Balanced Portfolio - 1 295,508 232,969 JPMorgan Insurance Trust Core Bond Portfolio - 1 18,020,290 1,916,603 JPMorgan Insurance Trust Diversified Equity Portfolio - 1 2,638,057 1,269,860 JPMorgan Insurance Trust Intrepid Mid Cap Portfolio - 1 5,868,211 554,158 JPMorgan Insurance Trust Equity Index Portfolio - 1 10,039,663 2,791,072 JPMorgan Insurance Trust Government Bond Portfolio - 1 6,954,044 795,117 JPMorgan Insurance Trust Intrepid Growth Portfolio - 1 1,601,905 66,381 JPMorgan Insurance Trust Diversified Mid Cap Growth Portfolio - 1 4,464,056 1,697,787 JPMorgan Insurance Trust Diversified Mid Cap Value Portfolio - 1 6,201,769 1,435,161 Jennison 20/20 Focus Portfolio 114,247 45,254 Jennison Portfolio 22,754 173,426 Prudential Value Portfolio 54,561 20,533 Prudential Series International Growth 1,659 20,715
SA-130 -------------------------------------------------------------------------------
PURCHASES PROCEEDS SUB-ACCOUNT AT COST FROM SALES ------------------------------------------------------------------------------ Legg Mason Partners Variable Capital and Income Portfolio $459,542 $419,635 Legg Mason Partners Variable Fundamental Value Portfolio 3,378,803 3,740,871 Legg Mason Partners Variable Global High Yield Bond Portfolio 14,359 118,794 Legg Mason Partners Variable Investors Portfolio 59,956 139,070 Growth and Income 353,614 5,453 Comstock 396,452 11,956 Wells Fargo Advantage VT Asset Allocation Fund 517 254 Wells Fargo Advantage VT Total Return Bond Fund 382 112 Wells Fargo Advantage VT Equity Income Fund 2,939 1,050 Wells Fargo Advantage VT C&B Large Cap Value Fund 6,266 -- Wells Fargo Advantage VT International Core Fund 821 661 Wells Fargo Advantage VT Large Company Growth Fund 261 417 Wells Fargo Advantage VT Small Cap Growth Fund 4,647 965 STI Classic VT Large Cap Growth Stock Fund 1,517,933 1,761,732 STI Classic VT Large Cap Core Equity Fund 344,567 647,192 STI Classic VT Mid-Cap Core Equity Fund 532,652 338,780 STI Classic VT Large Cap Value Equity Fund 1,657,609 768,225 ----------------- ----------------- $3,315,018,719 $1,642,096,226 ================= =================
5. CHANGES IN UNITS OUTSTANDING: The changes in units outstanding for the year ended December 31, 2007 were as follows:
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------------------- AIM V.I. Basic Value Fund 4,231,122 13,091,950 (8,860,828) AIM V.I. Capital Appreciation Fund 3,686,620 8,640,887 (4,954,267) AIM V.I. Core Equity Fund 752,589 2,250,726 (1,498,137) AIM V.I. Government Securities Fund 99,221,691 34,182,778 65,038,913 AIM V.I. High Yield Fund 46,500 270,398 (223,898) AIM V.I. International Growth Fund 22,304,592 11,517,880 10,786,712 AIM V.I. Mid Cap Core Equity Fund 9,698,334 13,389,396 (3,691,062) AIM V.I. Small Cap Equity Fund 1,216,946 364,140 852,806 AIM V.I. Large Cap Growth Fund 514,118 595,633 (81,515) AIM V.I. Capital Development Fund 19,348 -- 19,348 American Funds Global Bond Fund 2,776,567 240,529 2,536,038 American Funds Global Growth and Income Fund 7,770,159 599,422 7,170,737 American Funds Asset Allocation Fund 4,330,160 3,935,008 395,152 American Funds Blue Chip Income and Growth Fund 26,729,596 33,537,207 (6,807,611) American Funds Bond Fund 5,873,860 3,139,121 2,734,739 American Funds Global Growth Fund 2,495,032 1,442,198 1,052,834 American Funds Growth Fund 15,283,508 8,851,732 6,431,776 American Funds Growth-Income Fund 11,854,423 7,911,472 3,942,951 American Funds International Fund 4,269,807 3,043,112 1,226,695 American Funds New World Fund 2,098,751 1,051,149 1,047,602 American Funds Global Small Capitalization Fund 1,890,307 1,494,361 395,946 Columbia Asset Allocation Fund VS 944,494 2,059,221 (1,114,727) Columbia Small Company Growth Fund VS 789,223 4,116,741 (3,327,518) Columbia Large Cap Value Fund VS 1,896,444 6,900,746 (5,004,302)
SA-131 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------------------- Evergreen VA Balanced Fund 380,938 52,823 328,115 Evergreen VA Growth Fund 848,186 242,064 606,122 Evergreen VA International Equity Fund 619,046 104,123 514,923 Evergreen VA Omega Fund 1,044,467 924,851 119,616 Evergreen VA Special Values Fund 3,920,620 629,927 3,290,693 Evergreen VA Fundamental Large Cap Fund 188,827 44,420 144,407 Franklin Rising Dividends Securities 7,493,020 1,655,833 5,837,187 Fund Franklin Income Securities Fund 19,210,845 3,711,718 15,499,127 Franklin Large Cap Growth Securities 1,449,189 893,360 555,829 Fund Franklin Global Real Estate Securities 19,390 75,898 (56,508) Fund Franklin Small-Mid Cap Growth Securities 2,273,051 1,850,785 422,266 Fund Franklin Small Cap Value Securities Fund 16,687 506 16,181 Franklin Strategic Income Securities 3,745,268 1,578,827 2,166,441 Fund Mutual Shares Securities Fund 8,538,617 3,496,942 5,041,675 Templeton Developing Markets Securities 1,178,172 676,716 501,456 Fund Templeton Foreign Securities Fund 2,514,907 2,417,725 97,182 Templeton Global Asset Allocation Fund 26,698 52,389 (25,691) Templeton Growth Securities Fund 7,480,411 3,362,536 4,117,875 Mutual Discovery Securities Fund 3,102,388 867,379 2,235,009 Franklin Flex Cap Growth Securities Fund 671,877 204,472 467,405 Franklin Large Cap Value Securities Fund 327,070 139,862 187,208 Hartford Advisers HLS Fund 1,171,581 8,413,655 (7,242,074) Hartford Total Return Bond HLS Fund 6,166,121 11,903,761 (5,737,640) Hartford Capital Appreciation HLS Fund 2,216,089 11,302,385 (9,086,296) Hartford Dividend and Growth HLS Fund 2,821,731 10,106,667 (7,284,936) Hartford Fundamental Growth HLS Fund 315 432 (117) Hartford Global Advisers HLS Fund 142 38,198 (38,056) Hartford Global Communications HLS Fund 308 6 302 Hartford Global Financial Services HLS 4 13,845 (13,841) Fund Hartford Global Health HLS Fund 3,741 139,089 (135,348) Hartford Global Growth HLS Fund 24,181 410,582 (386,401) Hartford Global Technology HLS Fund 9,201 326,396 (317,195) Hartford Disciplined Equity HLS Fund 19,134 116,661 (97,527) Hartford Growth HLS Fund 3,051 18,180 (15,129) Hartford Growth Opportunities HLS Fund 25,080 25,377 (297) Hartford High Yield HLS Fund 6,838 61,771 (54,933) Hartford Index HLS Fund 2,077 124,139 (122,062) Hartford International Growth HLS Fund 36,266 177,466 (141,200) Hartford International Small Company HLS 12,416 16,007 (3,591) Fund Hartford International Opportunities HLS 1,481,270 2,856,878 (1,375,608) Fund Hartford MidCap HLS Fund 2,410 561,400 (558,990) Hartford MidCap Value HLS Fund 1,916 84,440 (82,524) Hartford Money Market HLS Fund 335,262,172 241,906,652 93,355,520 Hartford Mortgage Securities HLS Fund 76,199 18,779 57,420 Hartford Small Company HLS Fund 467,990 1,613,504 (1,145,514) Hartford SmallCap Growth HLS Fund 6,260 19,962 (13,702) Hartford Stock HLS Fund 1,032,326 6,394,844 (5,362,518) Hartford U.S. Government Securities HLS 21,200 95,473 (74,273) Fund
SA-132 -------------------------------------------------------------------------------
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------------------- Hartford Value HLS Fund 37,322 114,529 (77,207) Hartford Value Opportunities HLS Fund 7,348 49,871 (42,523) Hartford Equity Income HLS Fund 26,550 26,624 (74) Huntington VA Income Equity Fund 517,364 51,103 466,261 Huntington VA Dividend Capture Fund 1,592,239 120,277 1,471,962 Huntington VA Growth Fund 861,070 102,224 758,846 Huntington VA Mid Corp America Fund 522,047 113,866 408,181 Huntington VA New Economy Fund 618,743 91,935 526,808 Huntington VA Rotating Markets Fund 274,724 21,589 253,135 Huntington VA International Equity Fund 824,955 45,000 779,955 Huntington VA Macro 100 Fund 606,151 164,593 441,558 Huntington VA Mortgage Securities Fund 447,026 63,319 383,707 Huntington VA Situs Small Cap Fund 1,889,506 288,357 1,601,149 MFS Core Equity Series 105,460 449,354 (343,894) MFS Emerging Growth Series 1,047,995 784,929 263,066 MFS Global Equity Series 198,888 253,248 (54,360) MFS High Income Series 1,217,616 1,319,970 (102,354) MFS Investors Growth Stock Series 309,946 840,947 (531,001) MFS Investors Trust Series 3,518,307 1,698,433 1,819,874 MFS Mid Cap Growth Series 828,043 1,545,683 (717,640) MFS New Discovery Series 1,976,561 1,388,241 588,320 MFS Total Return Series 7,568,632 3,366,237 4,202,395 MFS Value Series 1,932,094 672,845 1,259,249 MFS Research Bond Series 2,037,454 383,487 1,653,967 MFS Research International Series 943,539 204,005 739,534 MFS Research Series 214,477 50,860 163,617 BlackRock Global Growth V.I. Fund (1) 101 (102) BlackRock Large Cap Growth V.I. Fund 7,077 18,896 (11,819) International Growth Equity Fund 4,825 -- 4,825 U.S. Mid Cap Value 2,457 134 2,323 Capital Opportunities 34,192 1,219 32,973 Developing Growth 366 3 363 Flexible Income 6,673 -- 6,673 Dividend Growth 604 -- 604 Global Equity 674 -- 674 Columbia Marsico International 934,705 5,390,309 (4,455,604) Opportunities Fund VS Columbia High Yield Fund VS 764,560 3,995,574 (3,231,014) Columbia Marsico Focused Equities Fund 1,508,861 5,526,754 (4,017,893) VS Columbia Marsico Growth Fund VS 1,043,877 5,888,811 (4,844,934) Columbia Marsico 21st Century Fund VS 918,384 1,184,503 (266,119) Columbia Marsico Midcap Growth Fund VS 1,348,889 8,851,909 (7,503,020) JPMorgan Insurance Trust Balanced 20,056 17,846 2,210 Portfolio - 1 JPMorgan Insurance Trust Core Bond 1,535,148 157,810 1,377,338 Portfolio - 1 JPMorgan Insurance Trust Diversified 164,551 89,862 74,689 Equity Portfolio - 1 JPMorgan Insurance Trust Intrepid Mid 346,949 31,001 315,948 Cap Portfolio - 1 JPMorgan Insurance Trust Equity Index 768,250 203,267 564,983 Portfolio - 1 JPMorgan Insurance Trust Government Bond 591,933 67,016 524,917 Portfolio - 1 JPMorgan Insurance Trust Intrepid Growth 130,361 4,659 125,702 Portfolio - 1
SA-133 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) --------------------------------------------------------------------------------------------------- JPMorgan Insurance Trust Diversified Mid 171,504 114,262 57,242 Cap Growth Portfolio - 1 JPMorgan Insurance Trust Diversified Mid 73,360 93,375 (20,015) Cap Value Portfolio - 1 Jennison 20/20 Focus Portfolio 5,443 10,098 (4,655) Jennison Portfolio 14,502 65,016 (50,514) Prudential Value Portfolio 15,600 11,315 4,285 Prudential Series International Growth -- 14,575 (14,575) Legg Mason Partners Variable Capital and 47,048 283,420 (236,372) Income Portfolio Legg Mason Partners Variable Fundamental 311,619 1,991,003 (1,679,384) Value Portfolio Legg Mason Partners Variable Global High 2,801 70,914 (68,113) Yield Bond Portfolio Legg Mason Partners Variable Investors 20,593 86,582 (65,989) Portfolio Growth and Income 20,204 108 20,096 Comstock 22,901 267 22,634 Wells Fargo Advantage VT Asset -- -- -- Allocation Fund Wells Fargo Advantage VT Total Return -- -- -- Bond Fund Wells Fargo Advantage VT Equity Income 255 415 (160) Fund Wells Fargo Advantage VT C&B Large Cap 4,939 -- 4,939 Value Fund Wells Fargo Advantage VT International 28 304 (276) Core Fund Wells Fargo Advantage VT Large Company 254 223 31 Growth Fund Wells Fargo Advantage VT Small Cap 2,421 568 1,853 Growth Fund STI Classic VT Large Cap Growth Stock 237,230 174,407 62,823 Fund STI Classic VT Large Cap Core Equity 18,257 34,308 (16,051) Fund STI Classic VT Mid-Cap Core Equity Fund 14,115 16,655 (2,540) STI Classic VT Large Cap Value Equity 298,941 58,200 240,741 Fund
The changes in units outstanding for the year ended December 31, 2006 were as follows:
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) ------------------------------------------------------------------------------------------ AIM V.I. Basic Value Fund 5,221,297 11,174,883 (5,953,586) AIM V.I. Capital Appreciation Fund 24,234,103 28,438,916 (4,204,813) AIM V.I. Core Equity Fund 25,482,342 108,890,346 (83,408,004) AIM V.I. Government Securities Fund 70,892,446 29,667,496 41,224,950 AIM V.I. High Yield Fund 174,526 398,901 (224,375) AIM V. I. International Growth Fund 15,393,667 7,539,329 7,854,338 AIM V.I. Mid Cap Core Equity Fund 10,398,703 13,803,035 (3,404,332) AIM V.I. Small Cap Equity Fund 793,371 352,529 440,842 AIM V.I. Large Cap Growth Fund 3,233,574 19,428,624 (16,195,050) American Funds Global Bond Fund 301,061 17,801 283,260 American Funds Capital World Growth and 4,234,123 249,572 3,984,551 Income Fund American Funds Asset Allocation Fund 5,564,496 3,004,388 2,560,108 American Funds Blue Chip Income and 28,266,298 21,740,130 6,526,168 Growth Fund American Funds Bond Fund 5,284,169 2,698,664 2,585,505 American Funds Global Growth Fund 2,242,680 1,159,685 1,082,995 American Funds Growth Fund 16,817,804 5,887,235 10,930,569 American Funds Growth-Income Fund 13,164,393 4,812,182 8,352,211 American Funds International Fund 6,676,950 1,744,571 4,932,379 American Funds New World Fund 1,808,885 695,455 1,113,430 American Funds Global Small 2,149,704 1,195,521 954,183 Capitalization Fund
SA-134 -------------------------------------------------------------------------------
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) ------------------------------------------------------------------------------------------ Evergreen VA Balanced Fund 280,080 48,661 231,419 Evergreen VA Growth Fund 1,015,426 68,091 947,335 Evergreen VA International Equity Fund 635,720 33,954 601,766 Evergreen VA Omega Fund 138,888 7,124 131,764 Evergreen VA Special Values Fund 5,714,046 343,888 5,370,158 Evergreen VA Fundamental Large Cap Fund 535,456 9,669 525,787 Franklin Rising Dividends Securities 7,758,884 827,506 6,931,378 Fund Franklin Income Securities Fund 18,441,483 2,083,919 16,357,564 Franklin Large Cap Growth Securities 1,789,762 455,576 1,334,186 Fund Franklin Real Estate Fund 20,267 71,472 (51,205) Franklin Small-Mid Cap Growth Securities 2,005,053 1,570,470 434,583 Fund Franklin Strategic Income Securities 2,931,281 946,990 1,984,291 Fund Franklin Flex Cap Growth Securities Fund 993,047 182,179 810,868 Franklin Large Cap Value Securities Fund 498,812 53,950 444,862 Mutual Shares Securities Fund 9,164,155 1,701,218 7,462,937 Templeton Developing Markets Securities 1,503,563 876,505 627,058 Fund Templeton Foreign Securities Fund 4,627,028 1,290,612 3,336,416 Templeton Global Asset Allocation Fund 17,456 25,810 (8,354) Templeton Growth Securities Fund 9,900,166 2,178,991 7,721,175 Mutual Discovery Securities Fund 3,813,538 1,080,821 2,732,717 Hartford Advisers HLS Fund 1,141,645 6,929,730 (5,788,085) Hartford Total Return Bond HLS Fund 4,503,372 10,775,541 (6,272,169) Hartford Capital Appreciation HLS Fund 347,701 8,718,765 (8,371,064) Hartford Dividend and Growth HLS Fund 1,989,692 8,499,359 (6,509,667) Hartford Focus HLS Fund 364 482 (118) Hartford Global Advisers HLS Fund 4,480 23,000 (18,520) Hartford Global Communications HLS Fund 389 6 383 Hartford Global Financial Services HLS -- 22 (22) Fund Hartford Global Health HLS Fund 5,840 9,579 (3,739) Hartford Global Leaders HLS Fund 52,701 123,776 (71,075) Hartford Global Technology HLS Fund 13,459 52,398 (38,939) Hartford Disciplined Equity HLS Fund 42,762 91,463 (48,701) Hartford Growth HLS Fund 48,168 15 48,153 Hartford Growth Opportunities HLS Fund 67,171 17,302 49,869 Hartford High Yield HLS Fund 60,298 28,847 31,451 Hartford Index HLS Fund 7,952 28,782 (20,830) Hartford International Capital 159,058 11,790 147,268 Appreciation HLS Fund Hartford International Small Company HLS 47,736 3,775 43,961 Fund Hartford International Opportunities HLS 1,233,924 2,457,291 (1,223,367) Fund Hartford MidCap HLS Fund 20,810 143,173 (122,363) Hartford MidCap Value HLS Fund 645 17,523 (16,878) Hartford Money Market HLS Fund 189,851,900 149,548,540 40,303,360 Hartford Mortgage Securities HLS Fund 4,009 8,694 (4,685) Hartford Small Company HLS Fund 275,463 1,497,265 (1,221,802) Hartford SmallCap Growth HLS Fund 32,370 13,721 18,649 Hartford Stock HLS Fund 1,664,925 5,327,563 (3,662,638) Hartford U.S. Government Securities HLS 35,507 20,129 15,378 Fund Hartford Value HLS Fund 4,039 676 3,363
SA-135 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) ------------------------------------------------------------------------------------------ Hartford Value Opportunities HLS Fund 84,607 1,891 82,716 Hartford Equity Income HLS Fund 32,082 10,465 21,617 Huntington VA Income Equity Fund 215,639 23,280 192,359 Huntington VA Dividend Capture Fund 545,672 20,748 524,924 Huntington VA Growth Fund 192,374 14,753 177,621 Huntington VA Mid Corp America Fund 438,291 18,002 420,289 Huntington VA New Economy Fund 461,350 25,553 435,797 Huntington VA Rotating Markets Fund 148,642 8,716 139,926 Huntington VA International Equity Fund 334,655 5,802 328,853 Huntington VA Macro 100 Fund 537,846 16,156 521,690 Huntington VA Mortgage Securities Fund 282,785 1,719 281,066 Huntington VA Situs Small Cap Fund 1,581,501 68,812 1,512,689 MFS Capital Opportunities Series 57,525 347,511 (289,986) MFS Emerging Growth Series 488,375 591,435 (103,060) MFS Global Equity Series 200,437 147,080 53,357 MFS High Income Series 1,348,649 1,729,753 (381,104) MFS Investors Growth Stock Series 280,537 917,481 (636,944) MFS Investors Trust Series 4,063,205 1,003,952 3,059,253 MFS Mid Cap Growth Series 840,289 1,426,964 (586,675) MFS New Discovery Series 3,494,329 1,868,925 1,625,404 MFS Total Return Series 8,125,434 2,455,310 5,670,124 MFS Value Series 1,707,473 343,016 1,364,457 MFS Research Bond Series 966,245 135,467 830,778 MFS Research International Series 1,336,273 908,361 427,912 MFS Research Series 127,255 73,100 54,155 BlackRock Global Growth V.I. Fund 973 1,830 (857) BlackRock Large Cap Growth V. I. Fund 4,191 50,125 (45,934) U.S. Mid Cap Value 845 10 835 Capital Opportunities 3,531 9 3,522 Developing Growth 688 -- 688 Flexible Income 1,300 -- 1,300 Columbia Asset Allocation Fund, VS 11,019,317 13,725,406 (2,706,089) Columbia Small Company Growth Fund, VS 21,249,471 24,786,364 (3,536,893) Columbia Large Cap Value Fund, VS 36,365,663 41,915,148 (5,549,485) Columbia Marsico International 1,379,096 5,407,076 (4,027,980) Opportunities Fund, VS Columbia High Yield Fund, VS 743,812 3,816,760 (3,072,948) Columbia Marisco Focused Equities Fund, 1,314,567 5,833,766 (4,519,199) VS Columbia Marisco Growth Fund, VS 1,234,194 4,838,867 (3,604,673) Columbia Marsico 21st Century Fund, VS 1,092,076 1,248,251 (156,175) Columbia Marisco Midcap Growth Fund, VS 1,337,475 8,582,835 (7,245,360) JPMorgan Insurance Trust Balanced 16,801 20,968 (4,167) Portfolio - 1 JPMorgan Insurance Trust Core Bond 1,490,850 153,362 1,337,488 Portfolio - 1 JPMorgan Insurance Trust Diversified 294,874 38,206 256,668 Equity Portfolio - 1 JPMorgan Insurance Trust Intrepid Mid 396,362 50,857 345,505 Cap Portfolio - 1 JPMorgan Insurance Trust Equity Index 991,606 134,880 856,726 Portfolio - 1 JPMorgan Insurance Trust Government Bond 596,951 81,543 515,408 Portfolio - 1 JPMorgan Insurance Trust Intrepid Growth 12,673 5,466 7,207 Portfolio - 1 JPMorgan Insurance Trust Diversified Mid 401,782 81,633 320,149 Cap Growth Portfolio - 1
SA-136 -------------------------------------------------------------------------------
UNITS UNITS NET INCREASE SUB-ACCOUNT ISSUED REDEEMED (DECREASE) ------------------------------------------------------------------------------------------ JPMorgan Insurance Trust Diversified Mid 205,752 81,717 124,035 Cap Value Portfolio - 1 Jennison 20/20 Focus Portfolio 27,414 9,098 18,316 Jennison Portfolio 436 18,639 (18,203) Prudential Value Portfolio 22,232 77,806 (55,574) SP William Blair International Growth 7,790 29 7,761 Portfolio Legg Mason Partners Variable All Cap 96,089 356,223 (260,134) Portfolio Legg Mason Partners Variable Global High 3,384 48,126 (44,742) Yield Bond Portfolio Legg Mason Partners Variable Investors 34,286 57,202 (22,916) Portfolio Legg Mason Partners Variable Total 13,723 14,849 (1,126) Return Portfolio Growth and Income 3,130 2 3,128 Comstock 9,426 -- 9,426 Wells Fargo Advantage VT Asset -- -- -- Allocation Fund Wells Fargo Advantage VT Total Return -- -- -- Bond Fund Wells Fargo Advantage VT Equity Income 610 5,585 (4,975) Fund Wells Fargo Advantage VT International 326 388 (62) Core Fund Wells Fargo Advantage VT Large Company 1,036 90 946 Growth Fund Wells Fargo Advantage VT Small Cap 612 443 169 Growth Fund STI Classic VT Capital Appreciation Fund 343,500 118,483 225,017 STI Classic VT Large Cap Relative Value 11,326 25,818 (14,492) Fund STI Classic VT Mid-Cap Equity Fund 24,139 18,204 5,935 STI Classic VT Large Cap Value Equity 234,535 54,603 179,932 Fund
SA-137 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 ------------------------------------------------------------------------------- 6. FINANCIAL HIGHLIGHTS: The following is a summary of units, unit fair value, contract owners' equity, expense ratios, investment income ratios, and total return showing the minimum and maximum contract charges for which a series of each Sub-Account has outstanding units.
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- AIM V.I. BASIC VALUE FUND 2007 Lowest contract charges 13,149 $1.539735 $20,246 Highest contract charges 20,190 1.415834 28,586 Remaining contract charges 55,682,375 -- 81,930,367 2006 Lowest contract charges 13,159 1.529265 20,122 Highest contract charges 19,533 1.430310 27,938 Remaining contract charges 64,543,850 -- 95,224,860 2005 Lowest contract charges 4,429 1.362431 6,034 Highest contract charges 15,469 1.296106 20,049 Remaining contract charges 70,510,230 -- 93,589,833 2004 Lowest contract charges 14,913 1.316677 19,633 Highest contract charges 338,958 1.258072 426,433 Remaining contract charges 73,492,934 -- 93,997,564 2003 Lowest contract charges 5,529 1.196762 6,617 Highest contract charges 422,064 1.162679 490,725 Remaining contract charges 50,215,921 -- 58,941,311 AIM V.I. CAPITAL APPRECIATION FUND 2007 Lowest contract charges 1,405 1.606895 2,257 Highest contract charges 8,611 1.462664 12,595 Remaining contract charges 26,715,736 -- 39,695,090 2006 Lowest contract charges 1,405 1.448235 2,040 Highest contract charges 8,071 1.339480 10,811 Remaining contract charges 31,670,543 -- 42,945,669 2005 Lowest contract charges 1,406 1.375395 1,934 Highest contract charges 14,540 1.293952 18,815 Remaining contract charges 14,335,563 -- 18,104,870 2004 Lowest contract charges 3,083 1.275804 3,933 Highest contract charges 545 1.218998 665 Remaining contract charges 14,608,245 -- 17,212,008 2003 Lowest contract charges 2,928 1.207936 3,537 Highest contract charges 46,484 0.807595 37,540 Remaining contract charges 11,269,817 -- 12,746,616 AIM V.I. CORE EQUITY FUND 2007 Lowest contract charges 269 12.834710 3,458 Highest contract charges 1,063 12.230262 12,996 Remaining contract charges 11,195,683 -- 118,268,284 2006 Lowest contract charges 271 11.972479 3,230 Highest contract charges 891 11.604187 10,340 Remaining contract charges 12,693,990 -- 123,078,967 2005 Lowest contract charges 94 10.346561 972 Highest contract charges 297 10.204436 3,027 Remaining contract charges 18,666 -- 191,463 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- AIM V.I. BASIC VALUE FUND 2007 Lowest contract charges 0.85% 0.60% 0.69% Highest contract charges 2.54% 0.61% (1.01)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 0.42% 12.25% Highest contract charges 2.55% 0.41% 10.35% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 0.32% 9.20% Highest contract charges 2.52% 0.17% 3.08% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.94% -- 10.02% Highest contract charges 2.46% -- 8.33% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% 0.04% 32.36% Highest contract charges 2.33% 0.06% 30.53% Remaining contract charges -- -- -- AIM V.I. CAPITAL APPRECIATION FUND 2007 Lowest contract charges 0.97% -- 10.96% Highest contract charges 2.54% -- 9.20% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.94% 0.06% 5.30% Highest contract charges 2.54% 0.10% 3.62% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.97% 0.33% 7.81% Highest contract charges 2.47% 0.06% 6.15% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.94% -- 5.62% Highest contract charges 2.41% -- 3.99% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.94% -- 28.30% Highest contract charges 2.38% -- 26.45% Remaining contract charges -- -- -- AIM V.I. CORE EQUITY FUND 2007 Lowest contract charges 0.85% 1.13% 7.20% Highest contract charges 2.54% 1.17% 5.40% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.86% 0.64% 15.72% Highest contract charges 2.53% 0.85% 13.77% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.91% 13.82% 7.33% Highest contract charges 2.44% 4.86% 6.16% Remaining contract charges -- -- --
SA-138 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- AIM V.I. GOVERNMENT SECURITIES FUND 2007 Lowest contract charges 74,927 $1.190613 $89,209 Highest contract charges 72,103 1.094766 78,936 Remaining contract charges 276,372,121 -- 315,294,143 2006 Lowest contract charges 5,947 1.129202 6,715 Highest contract charges 32,415 1.056100 34,234 Remaining contract charges 211,441,876 -- 230,543,331 2005 Lowest contract charges 6,162 1.113189 6,859 Highest contract charges 1,605,015 1.047274 1,680,890 Remaining contract charges 168,644,111 -- 180,709,907 2004 Lowest contract charges 19,935 1.105472 22,035 Highest contract charges 348,325 1.056247 367,917 Remaining contract charges 118,099,582 -- 126,808,385 2003 Lowest contract charges 4,974 1.088130 5,412 Highest contract charges 57,555 1.055918 60,773 Remaining contract charges 79,779,626 -- 85,143,304 AIM V.I. HIGH YIELD FUND 2007 Lowest contract charges 217,215 1.314284 285,483 Highest contract charges 129,482 1.254847 162,480 Remaining contract charges 673,533 -- 861,690 2006 Lowest contract charges 249,291 1.320408 329,164 Highest contract charges 131,068 1.270812 166,563 Remaining contract charges 863,769 -- 1,115,302 2005 Lowest contract charges 288,284 1.212824 349,637 Highest contract charges 106,920 1.176633 125,805 Remaining contract charges 1,073,299 -- 1,278,697 2004 Lowest contract charges 422,299 1.201005 507,185 Highest contract charges 5,724 1.174516 6,722 Remaining contract charges 1,174,916 -- 1,392,801 2003 Lowest contract charges 358,849 1.098081 394,046 Highest contract charges 16,888 1.082839 18,287 Remaining contract charges 889,498 -- 968,166 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- AIM V.I. GOVERNMENT SECURITIES FUND 2007 Lowest contract charges 0.84% 8.17% 5.44% Highest contract charges 2.52% 3.80% 3.66% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.84% 10.24% 2.67% Highest contract charges 2.53% 5.88% 0.94% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.96% 1.72% 0.70% Highest contract charges 2.47% 5.14% 0.85% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 4.23% 1.59% Highest contract charges 2.45% 8.85% 0.03% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.94% 5.26% 0.11% Highest contract charges 2.37% 5.38% 1.33% Remaining contract charges -- -- -- AIM V.I. HIGH YIELD FUND 2007 Lowest contract charges 1.70% 6.57% (0.46)% Highest contract charges 2.49% 7.17% (1.26)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.70% 7.84% 8.87% Highest contract charges 2.50% 9.48% 8.00% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.70% 7.79% 0.98% Highest contract charges 2.46% 17.65% 0.18% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.70% 3.27% 9.37% Highest contract charges 2.49% 3.75% 8.50% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.70% 7.65% 25.88% Highest contract charges 1.57% 15.96% 13.34% Remaining contract charges -- -- --
SA-139 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND 2007 Lowest contract charges 36,254 $2.413489 $87,498 Highest contract charges 8,081 2.219333 17,933 Remaining contract charges 32,726,816 -- 75,854,098 2006 Lowest contract charges 8,403 2.121749 17,832 Highest contract charges 312,363 1.987459 620,810 Remaining contract charges 21,663,673 -- 44,398,595 2005 Lowest contract charges 629,932 1.661728 1,046,775 Highest contract charges 207,228 1.589077 329,301 Remaining contract charges 13,292,941 -- 21,579,639 2004 Lowest contract charges 257,992 1.428246 368,476 Highest contract charges 2,706 1.381589 3,739 Remaining contract charges 5,091,769 -- 7,142,795 2003 Lowest contract charges 84,301 1.167399 98,413 Highest contract charges 4,636 1.143632 5,302 Remaining contract charges 2,135,884 -- 2,462,812 AIM V.I. MID CAP CORE EQUITY FUND 2007 Lowest contract charges 46,790 1.822898 85,293 Highest contract charges 11,084 1.676212 18,580 Remaining contract charges 68,197,872 -- 118,721,765 2006 Lowest contract charges 21,069 1.678202 35,359 Highest contract charges 5,855 1.569599 9,190 Remaining contract charges 71,919,884 -- 116,362,714 2005 Lowest contract charges 7,853 1.521487 11,948 Highest contract charges 15,209 1.447415 22,014 Remaining contract charges 75,328,078 -- 111,600,334 2004 Lowest contract charges 32,304 1.444712 46,667 Highest contract charges 184,485 1.380406 254,664 Remaining contract charges 65,791,466 -- 92,311,846 2003 Lowest contract charges 20,184 1.281424 25,865 Highest contract charges 10,043 1.243511 12,489 Remaining contract charges 44,574,170 -- 56,002,913 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND 2007 Lowest contract charges 0.84% 0.46% 13.75% Highest contract charges 2.23% -- 11.84% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.87% 7.34% 27.15% Highest contract charges 2.50% 1.25% 25.07% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% 0.86% 16.35% Highest contract charges 2.45% 1.39% 15.02% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.34% 1.09% 22.34% Highest contract charges 2.47% 0.94% 20.95% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.89% 1.25% 28.41% Highest contract charges 2.34% 0.68% 26.07% Remaining contract charges -- -- -- AIM V.I. MID CAP CORE EQUITY FUND 2007 Lowest contract charges 0.84% 0.27% 8.62% Highest contract charges 2.54% 0.26% 6.79% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 1.56% 10.30% Highest contract charges 2.55% 0.43% 8.44% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% 3.07% 9.01% Highest contract charges 2.43% 1.03% 4.91% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 0.17% 12.74% Highest contract charges 2.47% 0.29% 11.01% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% -- 26.11% Highest contract charges 2.38% -- 24.30% Remaining contract charges -- -- --
SA-140 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- AIM V.I. SMALL CAP EQUITY FUND 2007 Lowest contract charges 407,985 $14.937331 $6,094,211 Highest contract charges 1,947 14.206294 27,665 Remaining contract charges 1,849,722 -- 26,949,711 2006 Lowest contract charges 5,270 14.579513 76,824 Highest contract charges 1,084 13.854438 15,024 Remaining contract charges 1,400,494 -- 19,800,925 2005 Lowest contract charges 114 12.450323 1,423 Highest contract charges 19,967 12.113955 241,875 Remaining contract charges 945,925 -- 11,607,519 2004 Lowest contract charges 34,537 11.646808 402,239 Highest contract charges 3,738 11.488515 42,941 Remaining contract charges 530,997 -- 6,140,237 2003 Lowest contract charges 1,583 10.790046 17,080 Highest contract charges 4,460 10.773220 48,053 Remaining contract charges 30,643 -- 330,315 AIM V.I. LARGE CAP GROWTH FUND 2007 Lowest contract charges 159,815 13.091210 2,092,173 Highest contract charges 1,660 12.652975 20,999 Remaining contract charges 1,729,702 -- 22,284,082 2006 Lowest contract charges 94,375 11.474082 1,082,856 Highest contract charges 1,711 11.223754 19,203 Remaining contract charges 1,876,606 -- 21,306,731 2005 Lowest contract charges 2,138 10.763925 23,012 Highest contract charges 3,646 10.674076 38,919 Remaining contract charges 60,480 -- 648,082 AIM V.I. CAPITAL DEVELOPMENT FUND 2007 Lowest contract charges 3,357 9.789131 32,861 Highest contract charges 4,225 9.765867 41,259 Remaining contract charges 11,766 -- 115,033 AMERICAN FUNDS GLOBAL BOND FUND 2007 Lowest contract charges 32,523 11.067360 359,940 Highest contract charges 41,064 10.843071 445,258 Remaining contract charges 2,745,711 -- 30,050,172 2006 Lowest contract charges 79,113 10.206665 807,470 Highest contract charges 127 10.179637 1,294 Remaining contract charges 204,020 -- 2,079,237 AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND 2007 Lowest contract charges 61,479 12.245550 752,840 Highest contract charges 5,849 11.888755 69,535 Remaining contract charges 11,087,960 -- 133,690,015 2006 Lowest contract charges 15,747 10.961310 172,585 Highest contract charges 19,621 10.828350 212,465 Remaining contract charges 3,949,183 -- 42,995,032 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- AIM V.I. SMALL CAP EQUITY FUND 2007 Lowest contract charges 1.34% 0.07% 3.78% Highest contract charges 2.52% 0.04% 2.54% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.95% -- 16.33% Highest contract charges 2.55% -- 14.48% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.27% -- 6.77% Highest contract charges 2.47% -- 5.44% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.34% 0.01% 7.94% Highest contract charges 2.42% 0.01% 6.71% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.21% 0.07% 7.90% Highest contract charges 0.43% 0.15% 7.73% Remaining contract charges -- -- -- AIM V.I. LARGE CAP GROWTH FUND 2007 Lowest contract charges 1.34% 0.04% 14.09% Highest contract charges 2.54% 0.03% 12.73% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 0.36% 6.60% Highest contract charges 2.53% 0.28% 5.33% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.32% -- 13.83% Highest contract charges 2.27% -- 13.08% Remaining contract charges -- -- -- AIM V.I. CAPITAL DEVELOPMENT FUND 2007 Lowest contract charges 0.35% -- 2.47% Highest contract charges 0.59% -- 2.35% Remaining contract charges -- -- -- AMERICAN FUNDS GLOBAL BOND FUND 2007 Lowest contract charges 0.83% 6.48% 8.30% Highest contract charges 2.48% 7.15% 6.53% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.33% 1.99% 1.78% Highest contract charges 0.61% 2.04% 1.62% Remaining contract charges -- -- -- AMERICAN FUNDS GLOBAL GROWTH AND INCOME FUND 2007 Lowest contract charges 0.84% 2.98% 11.72% Highest contract charges 2.50% 7.08% 9.83% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.63% 1.31% 9.68% Highest contract charges 1.85% 1.07% 8.48% Remaining contract charges -- -- --
SA-141 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- AMERICAN FUNDS ASSET ALLOCATION FUND 2007 Lowest contract charges 20,251 $15.575983 $315,432 Highest contract charges 7,457 13.442506 100,235 Remaining contract charges 35,817,586 -- 501,356,573 2006 Lowest contract charges 9,093 14.742829 134,058 Highest contract charges 10,842 12.941607 140,311 Remaining contract charges 35,430,207 -- 472,725,601 2005 Lowest contract charges 3,416 12.967584 44,295 Highest contract charges 11,106 11.578387 128,589 Remaining contract charges 32,875,512 -- 388,850,776 2004 Lowest contract charges 31,500 12.192260 384,068 Highest contract charges 140,955 10.888180 1,534,739 Remaining contract charges 27,604,737 -- 303,881,995 2003 Lowest contract charges 25,058 11.361024 284,681 Highest contract charges 104,344 10.056939 1,049,378 Remaining contract charges 16,517,574 -- 170,141,584 AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND 2007 Lowest contract charges 191,542 1.247705 238,988 Highest contract charges 50,195 1.145462 57,497 Remaining contract charges 195,480,163 -- 233,324,391 2006 Lowest contract charges 91,280 1.233362 112,581 Highest contract charges 41,115 1.151721 47,353 Remaining contract charges 202,397,116 -- 240,929,680 2005 Lowest contract charges 20,649 1.059379 21,875 Highest contract charges 23,959 1.006214 24,108 Remaining contract charges 195,958,735 -- 202,234,532 2004 Lowest contract charges 246,118 1.010226 248,636 Highest contract charges 848,687 0.963014 817,298 Remaining contract charges 173,410,785 -- 169,988,158 2003 Lowest contract charges 172,227 0.929316 160,053 Highest contract charges 67,552 0.899720 60,778 Remaining contract charges 118,903,937 -- 108,175,918 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- AMERICAN FUNDS ASSET ALLOCATION FUND 2007 Lowest contract charges 0.85% 2.51% 5.65% Highest contract charges 2.55% 1.97% 3.87% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 2.93% 13.69% Highest contract charges 2.55% 2.20% 11.77% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 5.75% 10.09% Highest contract charges 2.50% 5.87% 6.39% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 2.06% 7.32% Highest contract charges 2.48% 4.16% 5.67% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% 2.79% 20.59% Highest contract charges 2.33% 3.60% 18.92% Remaining contract charges -- -- -- AMERICAN FUNDS BLUE CHIP INCOME AND GROWTH FUND 2007 Lowest contract charges 0.85% 2.85% 1.16% Highest contract charges 2.54% 2.48% (0.54)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 0.94% 16.42% Highest contract charges 2.55% 1.10% 14.46% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% -- 10.76% Highest contract charges 2.52% 1.77% 4.54% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 0.67% 8.71% Highest contract charges 2.48% 0.76% 7.04% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% -- 29.49% Highest contract charges 2.38% -- 27.63% Remaining contract charges -- -- --
SA-142 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ---------------------------------------------------------------------------- AMERICAN FUNDS BOND FUND 2007 Lowest contract charges 28,035 $14.766189 $413,969 Highest contract charges 7,873 12.828250 100,996 Remaining contract charges 26,538,780 -- 365,091,310 2006 Lowest contract charges 14,443 14.412511 208,210 Highest contract charges 7,791 12.735633 99,228 Remaining contract charges 23,817,715 -- 322,290,202 2005 Lowest contract charges 1,240 13.586510 16,852 Highest contract charges 3,804 12.211532 46,457 Remaining contract charges 21,249,400 -- 273,375,519 2004 Lowest contract charges 17,553 13.723684 240,877 Highest contract charges 51,011 12.337271 629,330 Remaining contract charges 18,012,718 -- 232,492,034 2003 Lowest contract charges 13,293 13.105524 174,215 Highest contract charges 10,910 11.965616 130,544 Remaining contract charges 12,943,734 -- 161,271,597 AMERICAN FUNDS GLOBAL GROWTH FUND 2007 Lowest contract charges 11,047 18.060908 199,520 Highest contract charges 710 11.950746 8,483 Remaining contract charges 10,050,752 -- 158,793,254 2006 Lowest contract charges 5,571 15.860019 88,303 Highest contract charges 158,950 10.690350 1,699,231 Remaining contract charges 8,845,154 -- 125,201,855 2005 Lowest contract charges 1,628 13.282208 21,622 Highest contract charges 134,658 9.101673 1,225,609 Remaining contract charges 7,790,394 -- 93,579,489 2004 Lowest contract charges 7,631 11.947825 91,171 Highest contract charges 44,539 8.180564 364,354 Remaining contract charges 6,533,491 -- 70,518,602 2003 Lowest contract charges 2,922 10.628399 31,055 Highest contract charges 94 8.056988 759 Remaining contract charges 4,535,277 -- 44,669,760 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- --------------------------------------------------- AMERICAN FUNDS BOND FUND 2007 Lowest contract charges 0.85% 8.33% 2.45% Highest contract charges 2.55% 7.60% 0.73% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 4.20% 6.08% Highest contract charges 2.55% 3.91% 4.29% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% -- 1.99% Highest contract charges 2.51% 2.31% 0.97% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 3.86% 4.72% Highest contract charges 2.48% 3.61% 3.11% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% 3.91% 11.73% Highest contract charges 2.38% 3.36% 10.12% Remaining contract charges -- -- -- AMERICAN FUNDS GLOBAL GROWTH FUND 2007 Lowest contract charges 0.85% 3.35% 13.88% Highest contract charges 2.51% 2.74% 11.96% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 0.96% 19.41% Highest contract charges 2.50% 0.87% 17.46% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 0.42% 17.60% Highest contract charges 2.48% 0.60% 11.26% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.94% 0.39% 12.41% Highest contract charges 2.46% 0.46% 10.69% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% 0.40% 34.00% Highest contract charges 2.26% 0.51% 32.07% Remaining contract charges -- -- --
SA-143 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ---------------------------------------------------------------------------- AMERICAN FUNDS GROWTH FUND 2007 Lowest contract charges 55,979 $16.813360 $941,192 Highest contract charges 39,001 10.427125 406,671 Remaining contract charges 96,708,863 -- 1,293,149,817 2006 Lowest contract charges 28,337 15.093084 427,690 Highest contract charges 23,101 9.520749 219,938 Remaining contract charges 90,320,629 -- 1,090,579,756 2005 Lowest contract charges 4,752 13.810812 65,627 Highest contract charges 11,673 8.861284 103,435 Remaining contract charges 79,425,073 -- 886,438,634 2004 Lowest contract charges 42,471 12.197135 518,021 Highest contract charges 468,853 7.827248 3,669,828 Remaining contract charges 65,048,899 -- 642,758,376 2003 Lowest contract charges 35,224 10.945673 385,546 Highest contract charges 33,403 7.107056 237,400 Remaining contract charges 42,361,291 -- 389,719,430 AMERICAN FUNDS GROWTH-INCOME FUND 2007 Lowest contract charges 65,162 16.494469 1,074,817 Highest contract charges 20,295 13.885894 281,809 Remaining contract charges 81,545,744 -- 1,175,654,541 2006 Lowest contract charges 30,992 15.836641 491,741 Highest contract charges 11,471 13.560686 155,556 Remaining contract charges 77,645,787 -- 1,077,756,144 2005 Lowest contract charges 5,878 13.864101 81,500 Highest contract charges 5,016 12.075123 60,575 Remaining contract charges 69,325,145 -- 846,621,187 2004 Lowest contract charges 66,034 13.442572 887,665 Highest contract charges 318,876 11.710192 3,734,103 Remaining contract charges 56,093,003 -- 657,483,748 2003 Lowest contract charges 60,328 12.295297 741,752 Highest contract charges 47,320 10.721995 507,366 Remaining contract charges 37,412,217 -- 403,029,042 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- --------------------------------------------------- AMERICAN FUNDS GROWTH FUND 2007 Lowest contract charges 0.85% 0.91% 11.40% Highest contract charges 2.54% 0.99% 9.52% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 1.31% 9.29% Highest contract charges 2.55% 0.89% 7.44% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% 1.64% 19.29% Highest contract charges 2.48% 1.84% 13.27% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 0.18% 11.43% Highest contract charges 2.47% 0.31% 9.72% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% 0.13% 35.52% Highest contract charges 2.38% 0.17% 33.57% Remaining contract charges -- -- -- AMERICAN FUNDS GROWTH-INCOME FUND 2007 Lowest contract charges 0.85% 1.84% 4.15% Highest contract charges 2.54% 2.14% 2.40% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 2.37% 14.23% Highest contract charges 2.55% 1.69% 12.30% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% 3.07% 9.51% Highest contract charges 2.52% 2.29% 3.17% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 0.88% 9.33% Highest contract charges 2.47% 1.62% 7.65% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% 1.21% 31.18% Highest contract charges 2.38% 1.52% 29.29% Remaining contract charges -- -- --
SA-144 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ---------------------------------------------------------------------------- AMERICAN FUNDS INTERNATIONAL FUND 2007 Lowest contract charges 15,095 $18.715376 $282,505 Highest contract charges 816 12.656410 10,325 Remaining contract charges 22,750,760 -- 382,048,104 2006 Lowest contract charges 6,037 15.726302 94,926 Highest contract charges 365,767 10.833523 3,962,545 Remaining contract charges 21,168,172 -- 303,228,279 2005 Lowest contract charges 304 13.330608 4,054 Highest contract charges 204,547 9.335922 1,909,635 Remaining contract charges 16,402,746 -- 201,791,781 2004 Lowest contract charges 11,445 11.258248 128,862 Highest contract charges 65,212 7.878061 513,741 Remaining contract charges 12,141,199 -- 126,332,462 2003 Lowest contract charges 3,048 9.525521 29,031 Highest contract charges 949 7.405010 7,025 Remaining contract charges 6,069,692 -- 56,421,063 AMERICAN FUNDS NEW WORLD FUND 2007 Lowest contract charges 6,716 30.846472 207,169 Highest contract charges 3,780 25.310667 95,668 Remaining contract charges 5,104,613 -- 140,695,691 2006 Lowest contract charges 2,255 23.530316 53,065 Highest contract charges 86,947 19.667749 1,710,049 Remaining contract charges 3,978,305 -- 84,459,785 2005 Lowest contract charges 181 18.191741 3,284 Highest contract charges 47,782 15.208322 726,678 Remaining contract charges 2,906,114 -- 47,451,190 2004 Lowest contract charges 589 15.210970 8,943 Highest contract charges 16,540 12.914857 213,606 Remaining contract charges 2,187,806 -- 30,241,675 2003 Lowest contract charges 40,899 12.765628 522,103 Highest contract charges 2,107 11.765582 24,792 Remaining contract charges 1,224,594 -- 14,478,687 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- --------------------------------------------------- AMERICAN FUNDS INTERNATIONAL FUND 2007 Lowest contract charges 0.84% 2.26% 19.01% Highest contract charges 2.53% 2.72% 17.00% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 3.11% 17.97% Highest contract charges 2.50% 1.95% 16.04% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% 3.44% 23.72% Highest contract charges 2.48% 2.10% 18.51% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.94% 2.98% 18.19% Highest contract charges 2.47% 2.34% 16.37% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% 1.24% 33.58% Highest contract charges 2.39% 1.57% 31.66% Remaining contract charges -- -- -- AMERICAN FUNDS NEW WORLD FUND 2007 Lowest contract charges 0.85% 4.21% 31.09% Highest contract charges 2.48% 6.33% 28.89% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 1.20% 31.47% Highest contract charges 2.50% 1.56% 29.32% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.95% -- 19.60% Highest contract charges 2.48% 1.22% 17.76% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.94% 2.29% 17.68% Highest contract charges 2.47% 2.52% 15.87% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.88% -- 33.34% Highest contract charges 2.32% 1.00% 35.95% Remaining contract charges -- -- --
SA-145 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ---------------------------------------------------------------------------- AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND 2007 Lowest contract charges 11,982 $24.253651 $290,619 Highest contract charges 1,409 17.296552 24,377 Remaining contract charges 7,070,153 -- 152,138,943 2006 Lowest contract charges 3,305 20.144150 66,605 Highest contract charges 141,109 14.633974 2,064,983 Remaining contract charges 6,543,184 -- 119,065,915 2005 Lowest contract charges 766 16.376893 12,548 Highest contract charges 88,832 12.095083 1,074,428 Remaining contract charges 5,643,817 -- 84,443,111 2004 Lowest contract charges 10,996 13.406321 147,425 Highest contract charges 33,221 9.893043 328,654 Remaining contract charges 4,343,215 -- 53,267,193 2003 Lowest contract charges 2,012 11.196332 22,528 Highest contract charges 882 8.501150 7,499 Remaining contract charges 2,541,581 -- 27,196,578 COLUMBIA ASSET ALLOCATION FUND VS 2007 Lowest contract charges 1,872,849 1.180583 2,211,054 Highest contract charges 45,656 1.127195 51,463 Remaining contract charges 4,831,226 -- 5,560,618 2006 Lowest contract charges 2,135,920 1.099916 2,349,334 Highest contract charges 25,402 1.058605 26,890 Remaining contract charges 5,703,136 -- 6,140,353 COLUMBIA SMALL COMPANY GROWTH FUND VS 2007 Lowest contract charges 2,501,808 1.354933 3,389,782 Highest contract charges 1,206 1.291004 1,557 Remaining contract charges 12,412,440 -- 16,360,791 2006 Lowest contract charges 3,103,781 1.214678 3,770,094 Highest contract charges 443,797 1.169031 518,812 Remaining contract charges 14,695,394 -- 17,454,730 COLUMBIA LARGE CAP VALUE FUND VS 2007 Lowest contract charges 3,866,530 1.314135 5,081,142 Highest contract charges 21,708 1.252159 27,182 Remaining contract charges 21,869,297 -- 27,948,265 2006 Lowest contract charges 28,571 1.306154 37,318 Highest contract charges 1,052,999 1.252160 1,318,524 Remaining contract charges 29,680,267 -- 37,891,420 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- --------------------------------------------------- AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND 2007 Lowest contract charges 0.84% 3.62% 20.40% Highest contract charges 2.49% 4.10% 18.37% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 0.52% 23.00% Highest contract charges 2.50% 0.48% 20.99% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% 0.25% 24.21% Highest contract charges 2.48% 0.92% 22.26% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.94% -- 19.74% Highest contract charges 2.46% -- 17.90% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.94% 0.33% 52.08% Highest contract charges 2.39% 0.60% 49.89% Remaining contract charges -- -- -- COLUMBIA ASSET ALLOCATION FUND VS 2007 Lowest contract charges 1.70% 2.91% 7.33% Highest contract charges 2.49% 3.07% 6.48% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.16% 2.08% 4.87% Highest contract charges 1.70% 2.54% 4.31% Remaining contract charges -- -- -- COLUMBIA SMALL COMPANY GROWTH FUND VS 2007 Lowest contract charges 1.70% -- 11.55% Highest contract charges 2.23% -- 10.60% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.16% -- (5.42)% Highest contract charges 1.70% -- (5.93)% Remaining contract charges -- -- -- COLUMBIA LARGE CAP VALUE FUND VS 2007 Lowest contract charges 1.70% 1.44% 1.00% Highest contract charges 2.23% -- 0.15% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.73% 5.29% 16.60% Highest contract charges 1.70% 1.37% 6.86% Remaining contract charges -- -- --
SA-146 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ---------------------------------------------------------------------------- EVERGREEN VA BALANCED FUND 2007 Lowest contract charges 47,654 $1.104691 $52,643 Highest contract charges 1,291 1.026684 1,326 Remaining contract charges 638,441 -- 679,506 2006 Lowest contract charges 29,320 1.049553 30,773 Highest contract charges 3,330 0.986711 3,286 Remaining contract charges 326,621 -- 331,911 2005 Lowest contract charges 5,024 0.968453 4,865 Highest contract charges 29,762 0.920995 27,411 Remaining contract charges 93,066 -- 86,874 EVERGREEN VA GROWTH FUND 2007 Lowest contract charges 256,017 1.572762 402,653 Highest contract charges 21,820 1.068772 23,321 Remaining contract charges 1,677,174 -- 1,981,353 2006 Lowest contract charges 152,313 1.435554 218,653 Highest contract charges 18,026 0.986828 17,789 Remaining contract charges 1,178,550 -- 1,284,639 2005 Lowest contract charges 38,637 1.310456 50,633 Highest contract charges 6,964 0.911255 6,346 Remaining contract charges 355,953 -- 381,008 EVERGREEN VA INTERNATIONAL EQUITY FUND 2007 Lowest contract charges 175,346 2.272957 398,554 Highest contract charges 50,700 1.324838 67,169 Remaining contract charges 1,225,677 -- 1,831,837 2006 Lowest contract charges 116,173 2.003304 232,729 Highest contract charges 47,763 1.181155 56,415 Remaining contract charges 772,864 -- 1,015,664 2005 Lowest contract charges 15,966 1.648684 26,324 Highest contract charges 48,849 0.983301 48,033 Remaining contract charges 270,219 -- 300,482 EVERGREEN VA OMEGA FUND 2007 Lowest contract charges 127,971 0.939459 120,223 Highest contract charges 2,746 0.926225 2,543 Remaining contract charges 177,566 -- 131,910 2006 Lowest contract charges 26,854 0.850503 22,840 Highest contract charges 2,857 0.842721 2,407 Remaining contract charges 158,956 -- 107,682 2005 Lowest contract charges 7,362 0.811784 5,977 Highest contract charges 49,541 0.625043 30,965 Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- --------------------------------------------------- EVERGREEN VA BALANCED FUND 2007 Lowest contract charges 1.34% 4.82% 5.25% Highest contract charges 2.51% 3.03% 4.05% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.36% 3.92% 8.37% Highest contract charges 2.50% 3.01% 7.14% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.35% 2.48% 6.62% Highest contract charges 2.48% 1.90% 5.81% Remaining contract charges -- -- -- EVERGREEN VA GROWTH FUND 2007 Lowest contract charges 1.34% -- 9.56% Highest contract charges 2.49% -- 8.30% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% -- 9.55% Highest contract charges 2.50% -- 8.29% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.31% -- 16.46% Highest contract charges 2.44% -- 15.57% Remaining contract charges -- -- -- EVERGREEN VA INTERNATIONAL EQUITY FUND 2007 Lowest contract charges 1.34% 3.14% 13.46% Highest contract charges 2.49% 2.59% 12.17% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 4.69% 21.51% Highest contract charges 2.50% 3.76% 20.12% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.28% 14.32% 16.57% Highest contract charges 2.44% 4.43% 15.69% Remaining contract charges -- -- -- EVERGREEN VA OMEGA FUND 2007 Lowest contract charges 1.34% 0.57% 10.46% Highest contract charges 1.83% 0.56% 9.91% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% -- 4.59% Highest contract charges 1.85% -- 4.07% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.52% -- 12.59% Highest contract charges 1.59% -- 12.51% Remaining contract charges -- -- --
SA-147 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- EVERGREEN VA SPECIAL VALUES FUND 2007 Lowest contract charges 1,650,958 $1.952678 $3,223,790 Highest contract charges 154,078 1.430216 220,365 Remaining contract charges 9,830,581 -- 15,226,006 2006 Lowest contract charges 1,124,999 2.140076 2,407,587 Highest contract charges 147,871 1.585609 234,465 Remaining contract charges 7,072,054 -- 12,258,325 2005 Lowest contract charges 259,683 1.784602 463,431 Highest contract charges 72,143 1.337525 96,493 Remaining contract charges 2,642,940 -- 3,996,291 EVERGREEN VA FUNDAMENTAL LARGE CAP FUND 2007 Lowest contract charges 21,930 1.457076 31,953 Highest contract charges 101,482 1.331900 135,164 Remaining contract charges 573,973 -- 819,697 2006 Lowest contract charges 32,304 1.363805 44,057 Highest contract charges 39,424 1.257282 49,567 Remaining contract charges 481,250 -- 646,078 2005 Lowest contract charges 2,628 1.224825 3,219 Highest contract charges 18,328 1.221742 22,391 Remaining contract charges 6,235 -- 7,589 FRANKLIN RISING DIVIDENDS SECURITIES FUND 2007 Lowest contract charges 22,530 15.218488 342,877 Highest contract charges 4,353 14.200576 61,821 Remaining contract charges 27,328,052 -- 402,546,450 2006 Lowest contract charges 8,997 15.772306 141,877 Highest contract charges 2,203 14.969769 32,978 Remaining contract charges 21,506,548 -- 330,674,817 2005 Lowest contract charges 871 13.581424 11,827 Highest contract charges 1,698 13.111329 22,258 Remaining contract charges 14,583,801 -- 194,671,832 2004 Lowest contract charges 5,943 13.343129 79,254 Highest contract charges 111,923 13.010868 1,456,211 Remaining contract charges 8,292,825 -- 109,031,559 2003 Lowest contract charges 859 12.107290 10,399 Highest contract charges 29,933 12.022402 359,862 Remaining contract charges 1,863,893 -- 22,491,772 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- EVERGREEN VA SPECIAL VALUES FUND 2007 Lowest contract charges 1.34% 1.63% (8.76)% Highest contract charges 2.49% 1.52% (9.80)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 1.21% 19.92% Highest contract charges 2.49% 0.89% 18.55% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.31% 4.60% 14.80% Highest contract charges 2.44% 2.82% 13.93% Remaining contract charges -- -- -- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND 2007 Lowest contract charges 1.35% 0.81% 6.84% Highest contract charges 2.18% 1.28% 5.94% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.34% 2.34% 11.16% Highest contract charges 2.20% 2.60% 10.22% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.49% 3.52% 9.52% Highest contract charges 1.83% 1.91% 9.30% Remaining contract charges -- -- -- FRANKLIN RISING DIVIDENDS SECURITIES FUND 2007 Lowest contract charges 0.85% 2.11% (3.51)% Highest contract charges 2.54% 1.85% (5.14)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 1.18% 16.13% Highest contract charges 2.55% 1.00% 14.17% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% -- 5.93% Highest contract charges 2.53% 1.61% 0.82% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.94% 0.71% 9.95% Highest contract charges 2.47% 0.49% 8.26% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.86% -- 21.07% Highest contract charges 1.56% -- 20.22% Remaining contract charges -- -- --
SA-148 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- FRANKLIN INCOME SECURITIES FUND 2007 Lowest contract charges 73,282 $16.395959 $1,201,526 Highest contract charges 11,939 15.145488 180,828 Remaining contract charges 83,514,119 -- 1,319,488,408 2006 Lowest contract charges 33,408 15.937182 532,424 Highest contract charges 11,079 14.974072 165,894 Remaining contract charges 68,055,726 -- 1,052,893,588 2005 Lowest contract charges 6,361 13.593697 86,464 Highest contract charges 7,475 12.991094 97,111 Remaining contract charges 51,728,813 -- 688,265,865 2004 Lowest contract charges 7,534 13.642332 102,782 Highest contract charges 225,859 13.122761 2,963,897 Remaining contract charges 29,949,118 -- 399,400,715 2003 Lowest contract charges 2,306 12.026069 27,731 Highest contract charges 5,136 11.817583 60,698 Remaining contract charges 11,758,660 -- 140,259,254 FRANKLIN LARGE CAP GROWTH SECURITIES FUND 2007 Lowest contract charges 2,065 12.827021 26,483 Highest contract charges 68 11.848456 808 Remaining contract charges 7,056,138 -- 86,825,462 2006 Lowest contract charges 37 12.177757 461 Highest contract charges 68 11.441566 781 Remaining contract charges 6,502,337 -- 76,642,060 2005 Lowest contract charges 541,016 11.028606 5,966,657 Highest contract charges 60,857 10.594401 644,746 Remaining contract charges 4,566,383 -- 49,282,808 2004 Lowest contract charges 217 11.174616 2,439 Highest contract charges 14,152 10.748796 152,115 Remaining contract charges 3,164,948 -- 34,515,753 2003 Lowest contract charges 338 10.452055 3,532 Highest contract charges 4,138 10.219357 42,289 Remaining contract charges 950,299 -- 9,786,694 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- FRANKLIN INCOME SECURITIES FUND 2007 Lowest contract charges 0.85% 3.23% 2.88% Highest contract charges 2.54% 3.12% 1.15% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 3.65% 17.24% Highest contract charges 2.55% 4.00% 15.26% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 2.03% 4.02% Highest contract charges 2.51% 0.98% 0.95% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.94% 3.03% 12.78% Highest contract charges 2.47% 2.82% 11.05% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.28% 0.96% 30.02% Highest contract charges 2.39% 5.09% 28.60% Remaining contract charges -- -- -- FRANKLIN LARGE CAP GROWTH SECURITIES FUND 2007 Lowest contract charges 0.82% 0.10% 5.33% Highest contract charges 2.57% 0.73% 3.56% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.95% -- 9.96% Highest contract charges 2.51% 0.93% 8.11% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% 0.58% 0.30% Highest contract charges 2.47% 0.48% 1.44% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.94% 0.69% 6.91% Highest contract charges 2.47% 0.39% 5.27% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.93% 0.78% 25.75% Highest contract charges 2.34% 0.67% 24.00% Remaining contract charges -- -- --
SA-149 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND 2007 Lowest contract charges 98,366 $22.193451 $2,183,091 Highest contract charges 692 20.767079 14,362 Remaining contract charges 113,651 -- 2,420,140 2006 Lowest contract charges 114,766 28.439936 3,263,902 Highest contract charges 692 26.866489 18,585 Remaining contract charges 153,759 -- 4,202,538 2005 Lowest contract charges 135,819 23.916634 3,248,336 Highest contract charges 692 22.809046 15,783 Remaining contract charges 183,911 -- 4,238,338 2004 Lowest contract charges 163,732 21.373611 3,499,540 Highest contract charges 703 20.578259 14,465 Remaining contract charges 220,761 -- 4,569,790 2003 Lowest contract charges 176,907 16.445011 2,909,231 Highest contract charges 717 15.984121 11,458 Remaining contract charges 245,153 -- 3,915,877 FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND 2007 Lowest contract charges 13,533 14.408266 194,991 Highest contract charges 5,738 7.996026 45,877 Remaining contract charges 11,430,681 -- 128,576,387 2006 Lowest contract charges 6,948 13.062801 90,794 Highest contract charges 4,625 7.373627 34,103 Remaining contract charges 11,016,113 -- 113,349,235 2005 Lowest contract charges 780 12.120647 9,455 Highest contract charges 3,530 6.959172 24,568 Remaining contract charges 10,588,793 -- 102,124,884 2004 Lowest contract charges 1,897 11.869463 22,508 Highest contract charges 71,934 6.816177 490,318 Remaining contract charges 9,722,180 -- 92,613,848 2003 Lowest contract charges 1,267 10.749301 13,621 Highest contract charges 184 6.297494 1,157 Remaining contract charges 7,051,187 -- 63,312,433 FRANKLIN SMALL CAP VALUE SECURITIES FUND 2007 Lowest contract charges 3,088 9.253378 28,574 Highest contract charges 544 9.230086 5,023 Remaining contract charges 12,549 -- 115,993 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND 2007 Lowest contract charges 1.40% 2.30% (21.96)% Highest contract charges 2.35% 2.26% (22.70)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 2.05% 18.91% Highest contract charges 2.35% 1.98% 17.79% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 1.42% 11.90% Highest contract charges 2.34% 1.39% 10.84% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 1.87% 29.97% Highest contract charges 2.35% 1.89% 28.74% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 2.51% 33.86% Highest contract charges 2.34% 2.57% 32.60% Remaining contract charges -- -- -- FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND 2007 Lowest contract charges 0.85% -- 10.30% Highest contract charges 2.54% -- 8.44% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% -- 7.77% Highest contract charges 2.55% -- 5.96% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% -- 15.29% Highest contract charges 2.43% -- 2.15% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% -- 10.42% Highest contract charges 2.48% -- 8.72% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.97% -- 35.95% Highest contract charges 2.45% -- 34.00% Remaining contract charges -- -- -- FRANKLIN SMALL CAP VALUE SECURITIES FUND 2007 Lowest contract charges 0.36% -- (0.01)% Highest contract charges 0.61% -- (0.13)% Remaining contract charges -- -- --
SA-150 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- FRANKLIN STRATEGIC INCOME SECURITIES FUND 2007 Lowest contract charges 21,176 $16.963013 $359,205 Highest contract charges 2,685 14.676700 39,410 Remaining contract charges 14,419,237 -- 225,325,293 2006 Lowest contract charges 6,276 16.108811 101,072 Highest contract charges 2,043 14.176524 28,968 Remaining contract charges 12,268,338 -- 183,518,260 2005 Lowest contract charges 559 14.972815 8,372 Highest contract charges 1,100 13.402661 14,737 Remaining contract charges 10,290,707 -- 144,203,380 2004 Lowest contract charges 3,038 15.102795 45,897 Highest contract charges 47,514 13.521731 642,473 Remaining contract charges 7,548,776 -- 105,994,364 2003 Lowest contract charges 2,279 13.859065 31,587 Highest contract charges 3,808 12.519934 47,672 Remaining contract charges 4,538,082 -- 59,109,751 MUTUAL SHARES SECURITIES FUND 2007 Lowest contract charges 54,739 20.176053 1,104,424 Highest contract charges 20,374 16.597302 338,150 Remaining contract charges 47,022,292 -- 822,849,078 2006 Lowest contract charges 20,877 19.664073 410,501 Highest contract charges 9,334 16.453485 153,584 Remaining contract charges 42,025,519 -- 718,384,455 2005 Lowest contract charges 3,463 16.752733 58,007 Highest contract charges 3,478 14.257743 49,590 Remaining contract charges 34,585,852 -- 505,438,067 2004 Lowest contract charges 8,663 15.549701 134,691 Highest contract charges 149,130 13.236404 1,973,943 Remaining contract charges 23,871,228 -- 320,263,265 2003 Lowest contract charges 8,671 13.937527 120,849 Highest contract charges 12,664 11.592760 146,815 Remaining contract charges 12,835,342 -- 155,151,274 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- FRANKLIN STRATEGIC INCOME SECURITIES FUND 2007 Lowest contract charges 0.84% 4.36% 5.30% Highest contract charges 2.54% 4.70% 3.53% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 3.67% 7.59% Highest contract charges 2.54% 5.61% 5.77% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 0.87% 2.59% Highest contract charges 2.49% -- 0.83% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.93% 2.30% 8.97% Highest contract charges 2.47% 2.21% 7.30% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% 2.65% 19.22% Highest contract charges 2.33% 0.90% 17.50% Remaining contract charges -- -- -- MUTUAL SHARES SECURITIES FUND 2007 Lowest contract charges 0.84% 1.27% 2.60% Highest contract charges 2.54% 1.20% 0.87% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 1.17% 17.38% Highest contract charges 2.55% 1.45% 15.40% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% -- 10.46% Highest contract charges 2.49% -- 7.77% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 0.78% 11.57% Highest contract charges 2.47% 0.71% 9.85% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% 1.05% 23.97% Highest contract charges 2.38% 0.90% 22.18% Remaining contract charges -- -- --
SA-151 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- TEMPLETON DEVELOPING MARKETS SECURITIES FUND 2007 Lowest contract charges 4,939 $30.661983 $151,452 Highest contract charges 2,510 26.042533 65,367 Remaining contract charges 3,453,026 -- 96,398,280 2006 Lowest contract charges 1,278 23.955722 30,574 Highest contract charges 61,613 20.726343 1,277,019 Remaining contract charges 2,896,128 -- 63,387,906 2005 Lowest contract charges 295 19.120676 5,636 Highest contract charges 39,021 16.546237 645,650 Remaining contract charges 2,292,645 -- 39,605,788 2004 Lowest contract charges 250 15.109178 3,807 Highest contract charges 8,288 13.278865 110,059 Remaining contract charges 1,303,962 -- 17,781,859 2003 Lowest contract charges 5,703 12.067090 68,814 Highest contract charges 555 10.186685 5,654 Remaining contract charges 602,040 -- 6,612,760 TEMPLETON FOREIGN SECURITIES FUND 2007 Lowest contract charges 9,268 16.755358 155,292 Highest contract charges 29 14.128636 407 Remaining contract charges 19,305,769 -- 293,624,963 2006 Lowest contract charges 2,250 14.636053 32,941 Highest contract charges 255,931 12.571975 3,217,555 Remaining contract charges 18,959,703 -- 253,659,532 2005 Lowest contract charges 865 12.154452 10,515 Highest contract charges 170,418 10.613973 1,808,809 Remaining contract charges 15,710,185 -- 175,539,175 2004 Lowest contract charges 1,390 11.321045 15,764 Highest contract charges 43,672 9.878123 431,401 Remaining contract charges 10,548,259 -- 108,883,014 2003 Lowest contract charges 907 9.642470 8,748 Highest contract charges 4,696 8.544872 40,124 Remaining contract charges 3,532,828 -- 31,460,030 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- TEMPLETON DEVELOPING MARKETS SECURITIES FUND 2007 Lowest contract charges 0.84% 1.71% 27.99% Highest contract charges 2.42% -- 25.84% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 0.82% 27.35% Highest contract charges 2.50% 1.31% 25.26% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.95% 1.43% 26.55% Highest contract charges 2.47% 1.33% 24.61% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.94% -- 23.65% Highest contract charges 2.47% 2.14% 21.75% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.88% -- 45.26% Highest contract charges 2.34% 1.35% 50.17% Remaining contract charges -- -- -- TEMPLETON FOREIGN SECURITIES FUND 2007 Lowest contract charges 0.84% 1.21% 14.48% Highest contract charges 2.62% -- 12.55% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 1.16% 20.42% Highest contract charges 2.50% 1.24% 18.45% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.84% 0.13% 12.21% Highest contract charges 2.48% 0.97% 7.45% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 1.33% 17.41% Highest contract charges 2.47% 1.00% 15.60% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.94% 1.80% 30.96% Highest contract charges 2.37% 1.44% 29.08% Remaining contract charges -- -- --
SA-152 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- TEMPLETON GLOBAL ASSET ALLOCATION FUND 2007 Lowest contract charges 1,517 $18.832232 $28,572 Highest contract charges 3,755 16.680252 62,632 Remaining contract charges 198,001 -- 3,422,702 2006 Lowest contract charges 1,519 17.281807 26,228 Highest contract charges 3,755 15.491752 58,169 Remaining contract charges 223,690 -- 3,592,879 2005 Lowest contract charges 1,518 14.405588 21,871 Highest contract charges 3,755 13.069300 49,073 Remaining contract charges 232,045 -- 3,127,195 2004 Lowest contract charges 1,519 14.043980 21,331 Highest contract charges 2,286 12.251426 28,004 Remaining contract charges 287,874 -- 3,803,126 2003 Lowest contract charges 2,581 12.252158 31,623 Highest contract charges 1,799 10.806476 19,443 Remaining contract charges 285,042 -- 3,303,766 TEMPLETON GROWTH SECURITIES FUND 2007 Lowest contract charges 43,133 17.480379 753,978 Highest contract charges 14,246 14.495551 206,501 Remaining contract charges 38,831,824 -- 615,404,141 2006 Lowest contract charges 19,335 17.225283 333,017 Highest contract charges 11,465 14.528955 166,569 Remaining contract charges 34,740,528 -- 545,011,757 2005 Lowest contract charges 6,054 14.262017 86,335 Highest contract charges 4,841 12.235707 59,229 Remaining contract charges 27,039,258 -- 353,013,575 2004 Lowest contract charges 2,658 13.443331 35,739 Highest contract charges 313,025 11.535531 3,610,905 Remaining contract charges 14,511,112 -- 177,137,908 2003 Lowest contract charges 2,921 11.555589 33,757 Highest contract charges 21,412 10.525852 225,385 Remaining contract charges 5,047,917 -- 53,817,909 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- TEMPLETON GLOBAL ASSET ALLOCATION FUND 2007 Lowest contract charges 0.95% 17.34% 8.97% Highest contract charges 2.14% 17.36% 7.67% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.95% 7.05% 19.97% Highest contract charges 2.15% 7.06% 18.54% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.95% 3.70% 2.58% Highest contract charges 2.14% 3.75% 1.35% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 3.28% 14.63% Highest contract charges 2.05% 2.87% 13.37% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% 2.58% 30.71% Highest contract charges 2.03% -- 29.28% Remaining contract charges -- -- -- TEMPLETON GROWTH SECURITIES FUND 2007 Lowest contract charges 0.85% 1.26% 1.48% Highest contract charges 2.54% 1.20% (0.23)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 1.20% 20.78% Highest contract charges 2.55% 1.47% 18.74% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% 0.67% 9.79% Highest contract charges 2.52% -- 6.12% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.94% 1.31% 14.93% Highest contract charges 2.47% 0.62% 13.16% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.27% -- 30.43% Highest contract charges 2.33% 1.23% 29.07% Remaining contract charges -- -- --
SA-153 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- MUTUAL DISCOVERY SECURITIES FUND 2007 Lowest contract charges 40,428 $22.537085 $911,137 Highest contract charges 9,278 21.030000 195,118 Remaining contract charges 8,811,376 -- 191,983,358 2006 Lowest contract charges 16,775 20.321572 340,880 Highest contract charges 1,762 19.287666 33,987 Remaining contract charges 6,607,536 -- 130,798,836 2005 Lowest contract charges 1,558 16.655119 25,945 Highest contract charges 2,176 16.078683 34,984 Remaining contract charges 3,889,622 -- 63,647,577 2004 Lowest contract charges 296 14.593317 4,317 Highest contract charges 26,457 14.229936 376,479 Remaining contract charges 2,154,077 -- 30,968,068 2003 Lowest contract charges 2,586 12.435649 32,160 Highest contract charges 6,500 12.348414 80,267 Remaining contract charges 543,750 -- 6,738,736 FRANKLIN FLEX CAP GROWTH SECURITIES FUND 2007 Lowest contract charges 4,238 12.444192 52,743 Highest contract charges 1,641 11.858630 19,458 Remaining contract charges 1,894,232 -- 22,980,116 2006 Lowest contract charges 678 10.978096 7,429 Highest contract charges 1,270 10.640852 13,512 Remaining contract charges 1,430,758 -- 15,443,047 2005 Lowest contract charges 46 10.524182 484 Highest contract charges 15,384 10.380183 159,686 Remaining contract charges 606,408 -- 6,330,485 FRANKLIN LARGE CAP VALUE SECURITIES FUND 2007 Lowest contract charges 250 11.800600 2,950 Highest contract charges 25 11.245329 283 Remaining contract charges 781,053 -- 8,982,369 2006 Lowest contract charges 92,929 11.823520 1,098,765 Highest contract charges 13,874 11.576666 160,617 Remaining contract charges 487,317 -- 5,710,113 2005 Lowest contract charges 8,796 10.314563 90,723 Highest contract charges 8,117 10.215971 82,925 Remaining contract charges 132,345 -- 1,359,418 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- MUTUAL DISCOVERY SECURITIES FUND 2007 Lowest contract charges 0.84% 1.22% 10.90% Highest contract charges 2.52% 1.07% 9.03% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 1.11% 22.01% Highest contract charges 2.55% 1.20% 19.96% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.82% -- 13.98% Highest contract charges 2.34% -- 13.05% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.62% -- 17.08% Highest contract charges 2.48% 1.19% 15.28% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.86% -- 24.36% Highest contract charges 1.54% -- 23.48% Remaining contract charges -- -- -- FRANKLIN FLEX CAP GROWTH SECURITIES FUND 2007 Lowest contract charges 0.84% 0.13% 13.36% Highest contract charges 2.54% 0.13% 11.44% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 0.01% 4.31% Highest contract charges 2.54% 0.01% 2.55% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.86% 0.71% 11.76% Highest contract charges 2.45% 0.25% 10.55% Remaining contract charges -- -- -- FRANKLIN LARGE CAP VALUE SECURITIES FUND 2007 Lowest contract charges 0.86% 3.39% (1.11)% Highest contract charges 2.44% 4.03% (2.77)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 2.73% 14.63% Highest contract charges 2.50% 1.59% 13.32% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% 1.16% 6.25% Highest contract charges 2.44% 2.93% 5.44% Remaining contract charges -- -- --
SA-154 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HARTFORD ADVISERS HLS FUND 2007 Lowest contract charges 2,926,523 $1.346358 $3,940,147 Highest contract charges 24,470 1.081903 26,474 Remaining contract charges 24,621,095 -- 27,412,774 2006 Lowest contract charges 5,165,865 1.283584 6,630,820 Highest contract charges 24,470 1.043392 25,532 Remaining contract charges 29,623,827 -- 31,651,899 2005 Lowest contract charges 5,862,533 1.178754 6,910,484 Highest contract charges 24,470 0.969260 23,718 Remaining contract charges 34,715,244 -- 34,284,325 2004 Lowest contract charges 6,377,220 1.117498 7,126,531 Highest contract charges 1,252,341 0.929969 1,164,638 Remaining contract charges 38,659,817 -- 36,482,628 2003 Lowest contract charges 7,147,982 1.095089 7,827,676 Highest contract charges 178,360 0.921407 164,342 Remaining contract charges 30,409,308 -- 28,341,446 HARTFORD TOTAL RETURN BOND HLS FUND 2007 Lowest contract charges 1,104,972 1.509593 1,668,058 Highest contract charges 88,976 1.230471 109,482 Remaining contract charges 63,216,908 -- 79,729,578 2006 Lowest contract charges 1,192,897 1.466249 1,749,082 Highest contract charges 56,895 1.208958 68,784 Remaining contract charges 68,898,704 -- 85,021,424 2005 Lowest contract charges 1,335,796 1.422302 1,899,906 Highest contract charges 56,895 1.186291 67,494 Remaining contract charges 75,027,974 -- 90,433,823 2004 Lowest contract charges 1,277,261 1.411419 1,802,750 Highest contract charges 1,540,308 1.191419 1,835,153 Remaining contract charges 69,839,752 -- 84,155,955 2003 Lowest contract charges 1,311,057 1.371476 1,798,083 Highest contract charges 526,592 1.170513 616,383 Remaining contract charges 49,630,276 -- 58,564,571 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HARTFORD ADVISERS HLS FUND 2007 Lowest contract charges 1.40% 1.38% 4.89% Highest contract charges 2.54% 1.93% 3.69% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 2.03% 8.89% Highest contract charges 2.55% 2.15% 7.65% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 2.85% 5.48% Highest contract charges 2.52% 4.40% 4.28% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 1.82% 2.05% Highest contract charges 2.45% 2.95% 0.93% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 2.52% 16.55% Highest contract charges 2.38% 3.11% 15.40% Remaining contract charges -- -- -- HARTFORD TOTAL RETURN BOND HLS FUND 2007 Lowest contract charges 1.40% 4.77% 2.96% Highest contract charges 2.53% 7.54% 1.78% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 4.39% 3.09% Highest contract charges 2.55% 4.58% 1.91% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 7.07% 0.77% Highest contract charges 2.52% 10.33% 0.38% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 4.55% 2.91% Highest contract charges 2.47% 4.52% 1.79% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 4.01% 6.08% Highest contract charges 2.39% 4.19% 5.03% Remaining contract charges -- -- --
SA-155 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HARTFORD CAPITAL APPRECIATION HLS FUND 2007 Lowest contract charges 3,850,996 $2.708673 $10,431,089 Highest contract charges 10,035 1.603556 16,092 Remaining contract charges 39,121,345 -- 64,937,065 2006 Lowest contract charges 5,371,565 2.357117 12,661,408 Highest contract charges 1,763,707 1.413662 2,493,286 Remaining contract charges 44,933,400 -- 65,368,231 2005 Lowest contract charges 5,697,035 2.054889 11,706,774 Highest contract charges 1,817,152 1.246038 2,264,240 Remaining contract charges 52,925,549 -- 67,477,143 2004 Lowest contract charges 6,012,800 1.807982 10,871,033 Highest contract charges 1,656,954 1.108442 1,836,638 Remaining contract charges 57,211,800 -- 64,630,767 2003 Lowest contract charges 6,277,189 1.539851 9,665,936 Highest contract charges 397,700 0.954495 379,602 Remaining contract charges 38,129,265 -- 37,065,515 HARTFORD DIVIDEND AND GROWTH HLS FUND 2007 Lowest contract charges 1,148,371 1.680583 1,929,933 Highest contract charges 21,628 1.353370 29,271 Remaining contract charges 38,561,153 -- 53,592,557 2006 Lowest contract charges 1,882,130 1.578268 2,970,507 Highest contract charges 21,628 1.285670 27,807 Remaining contract charges 45,112,330 -- 59,288,193 2005 Lowest contract charges 2,027,107 1.333084 2,702,304 Highest contract charges 21,628 1.098498 23,759 Remaining contract charges 51,477,020 -- 57,505,690 2004 Lowest contract charges 2,179,542 1.279022 2,787,681 Highest contract charges 1,101,916 1.066670 1,175,381 Remaining contract charges 47,389,011 -- 51,174,113 2003 Lowest contract charges 2,256,078 1.156620 2,609,425 Highest contract charges 738,736 0.975265 720,463 Remaining contract charges 30,216,290 -- 29,730,833 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HARTFORD CAPITAL APPRECIATION HLS FUND 2007 Lowest contract charges 1.40% 0.06% 14.92% Highest contract charges 2.23% -- 13.60% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.10% 14.71% Highest contract charges 2.50% 1.11% 13.45% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 0.61% 13.66% Highest contract charges 2.49% 0.61% 12.41% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 0.22% 17.41% Highest contract charges 2.46% 0.44% 16.13% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 0.42% 40.05% Highest contract charges 2.38% 0.51% 38.66% Remaining contract charges -- -- -- HARTFORD DIVIDEND AND GROWTH HLS FUND 2007 Lowest contract charges 1.40% 1.07% 6.48% Highest contract charges 2.54% 1.42% 5.27% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.44% 18.39% Highest contract charges 2.55% 1.50% 17.04% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 1.58% 4.23% Highest contract charges 2.52% 2.72% 3.04% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 1.19% 10.58% Highest contract charges 2.48% 2.51% 9.37% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 1.37% 24.73% Highest contract charges 2.39% 1.52% 23.48% Remaining contract charges -- -- --
SA-156 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HARTFORD FUNDAMENTAL GROWTH HLS FUND 2007 Lowest contract charges 6,663 $1.291171 $8,602 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 6,780 1.140237 7,731 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 6,898 1.056464 7,288 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 7,307 0.977503 7,143 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 1,490 0.963308 1,435 Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD GLOBAL ADVISERS HLS FUND 2007 Lowest contract charges 104,108 2.271611 236,493 Highest contract charges 22,124 2.244431 49,656 Remaining contract charges -- -- -- 2006 Lowest contract charges 142,160 1.980819 281,593 Highest contract charges 22,128 1.960059 43,372 Remaining contract charges -- -- -- 2005 Lowest contract charges 155,595 1.850300 287,897 Highest contract charges 27,213 1.833652 49,899 Remaining contract charges -- -- -- 2004 Lowest contract charges 194,988 1.819776 354,834 Highest contract charges 27,217 1.806109 49,157 Remaining contract charges -- -- -- 2003 Lowest contract charges 188,842 1.640868 309,865 Highest contract charges 27,222 1.630988 44,398 Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HARTFORD FUNDAMENTAL GROWTH HLS FUND 2007 Lowest contract charges 1.40% 0.06% 13.24% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 0.52% 7.93% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 1.31% 8.08% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 1.39% 0.14% 1.47% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 1.38% 0.18% 26.27% Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD GLOBAL ADVISERS HLS FUND 2007 Lowest contract charges 1.40% 0.55% 14.68% Highest contract charges 1.55% 0.64% 14.51% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 2.40% 7.05% Highest contract charges 1.55% 2.44% 6.89% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 3.26% 1.68% Highest contract charges 1.55% 3.31% 1.53% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% -- 10.90% Highest contract charges 1.55% -- 10.74% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 0.68% 20.27% Highest contract charges 1.53% 1.54% 20.09% Remaining contract charges -- -- --
SA-157 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------- HARTFORD GLOBAL COMMUNICATIONS HLS FUND 2007 Lowest contract charges 4,834 $1.601212 $7,740 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 4,532 1.319404 5,979 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 4,149 1.099231 4,560 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 4,061 0.942122 3,826 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 2,037 0.777330 1,584 Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND 2007 Lowest contract charges 46,522 1.256724 58,464 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 60,363 1.385583 83,637 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 60,385 1.165979 70,407 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 61,689 1.073564 66,227 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 60,414 0.971460 58,690 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- -------------------------------------------------- HARTFORD GLOBAL COMMUNICATIONS HLS FUND 2007 Lowest contract charges 1.40% 0.67% 21.36% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.79% 20.03% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 3.66% 16.68% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% -- 21.20% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 1.39% -- 57.85% Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND 2007 Lowest contract charges 1.40% 0.05% (9.30)% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.44% 18.83% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 2.86% 8.61% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% -- 10.51% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 1.42% 28.16% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-158 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------- HARTFORD GLOBAL HEALTH HLS FUND 2007 Lowest contract charges 286,382 $2.193343 $628,133 Highest contract charges 355 2.138451 759 Remaining contract charges 41,961 -- 90,978 2006 Lowest contract charges 417,758 2.101222 877,801 Highest contract charges 342 2.055824 703 Remaining contract charges 45,946 -- 95,577 2005 Lowest contract charges 421,501 1.921259 809,812 Highest contract charges 322 1.886344 608 Remaining contract charges 45,962 -- 87,555 2004 Lowest contract charges 441,436 1.737313 766,912 Highest contract charges 294 1.711710 503 Remaining contract charges 56,658 -- 97,744 2003 Lowest contract charges 442,299 1.565738 692,524 Highest contract charges 257 1.548076 398 Remaining contract charges 74,370 -- 115,803 HARTFORD GLOBAL GROWTH HLS FUND 2007 Lowest contract charges 715,426 2.530315 1,810,252 Highest contract charges 9,380 2.445701 22,941 Remaining contract charges 82,029 -- 203,908 2006 Lowest contract charges 1,052,674 2.057130 2,165,485 Highest contract charges 32,456 1.998303 64,857 Remaining contract charges 108,106 -- 219,150 2005 Lowest contract charges 1,109,958 1.832185 2,033,649 Highest contract charges 27,431 1.788716 49,067 Remaining contract charges 126,922 -- 229,762 2004 Lowest contract charges 1,169,200 1.815622 2,122,825 Highest contract charges 27,431 1.781427 48,867 Remaining contract charges 114,663 -- 206,442 2003 Lowest contract charges 1,198,560 1.548670 1,856,174 Highest contract charges 8,586 1.530376 13,139 Remaining contract charges 101,705 -- 156,559 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- -------------------------------------------------- HARTFORD GLOBAL HEALTH HLS FUND 2007 Lowest contract charges 1.40% -- 4.38% Highest contract charges 1.61% -- 4.02% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% -- 9.37% Highest contract charges 1.70% -- 8.99% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% -- 10.59% Highest contract charges 1.70% -- 10.20% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% -- 10.96% Highest contract charges 1.74% -- 10.57% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% -- 30.15% Highest contract charges 1.69% -- 29.69% Remaining contract charges -- -- -- HARTFORD GLOBAL GROWTH HLS FUND 2007 Lowest contract charges 1.40% 0.05% 23.00% Highest contract charges 1.90% 0.09% 22.39% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 0.45% 12.28% Highest contract charges 1.90% 0.42% 11.72% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 0.47% 0.91% Highest contract charges 1.89% 0.48% 0.41% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 0.39% 17.24% Highest contract charges 1.84% 2.89% 16.65% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 0.52% 33.36% Highest contract charges 1.75% 0.51% 32.89% Remaining contract charges -- -- --
SA-159 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------- HARTFORD GLOBAL TECHNOLOGY HLS FUND 2007 Lowest contract charges 670,660 $0.599182 $401,848 Highest contract charges 1,273 0.584123 743 Remaining contract charges -- -- -- 2006 Lowest contract charges 983,079 0.534995 525,942 Highest contract charges 1,220 0.523382 639 Remaining contract charges 4,829 -- 2,558 2005 Lowest contract charges 1,022,098 0.492870 503,763 Highest contract charges 1,137 0.483866 550 Remaining contract charges 4,832 -- 2,361 2004 Lowest contract charges 1,076,689 0.450790 485,360 Highest contract charges 1,018 0.444122 452 Remaining contract charges 4,836 -- 2,165 2003 Lowest contract charges 1,153,481 0.452186 521,588 Highest contract charges 877 0.447058 392 Remaining contract charges 4,839 -- 2,176 HARTFORD DISCIPLINED EQUITY HLS FUND 2007 Lowest contract charges 482,787 1.479497 714,282 Highest contract charges 294 1.430014 421 Remaining contract charges 86,375 -- 125,249 2006 Lowest contract charges 551,685 1.388298 765,903 Highest contract charges 388 1.348591 524 Remaining contract charges 114,910 -- 156,929 2005 Lowest contract charges 601,321 1.255097 754,715 Highest contract charges 4,261 1.225316 5,222 Remaining contract charges 110,102 -- 136,264 2004 Lowest contract charges 679,473 1.197237 813,490 Highest contract charges 64,584 1.178956 76,142 Remaining contract charges 54,318 -- 64,542 2003 Lowest contract charges 675,787 1.122715 758,716 Highest contract charges 84,848 1.109457 94,136 Remaining contract charges 38,142 -- 42,563 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- -------------------------------------------------- HARTFORD GLOBAL TECHNOLOGY HLS FUND 2007 Lowest contract charges 1.40% -- 12.00% Highest contract charges 1.66% -- 11.61% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% -- 8.55% Highest contract charges 1.74% -- 8.17% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 0.03% 9.34% Highest contract charges 1.66% 0.03% 8.95% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% -- 0.31% Highest contract charges 1.75% -- 0.66% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% -- 58.86% Highest contract charges 1.67% -- 58.31% Remaining contract charges -- -- -- HARTFORD DISCIPLINED EQUITY HLS FUND 2007 Lowest contract charges 1.40% 0.74% 6.57% Highest contract charges 1.80% 0.66% 6.04% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 0.73% 10.61% Highest contract charges 1.90% 0.03% 10.06% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 0.88% 4.83% Highest contract charges 1.86% 1.33% 4.31% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 0.99% 6.64% Highest contract charges 1.75% 0.82% 6.26% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 0.97% 26.71% Highest contract charges 1.73% 1.47% 26.27% Remaining contract charges -- -- --
SA-160 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------- HARTFORD GROWTH HLS FUND 2007 Lowest contract charges 53,796 $1.506262 $81,031 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 64,590 1.311312 84,697 Highest contract charges 4,335 1.281511 5,556 Remaining contract charges -- -- -- 2005 Lowest contract charges 20,772 1.274338 26,471 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 20,506 1.237646 25,380 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 8,967 1.118468 10,029 Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD GROWTH OPPORTUNITIES HLS FUND 2007 Lowest contract charges 85,630 2.009325 172,058 Highest contract charges 19,869 1.953917 38,822 Remaining contract charges 4,363 -- 8,596 2006 Lowest contract charges 89,417 1.575584 140,884 Highest contract charges 16,379 1.539813 25,221 Remaining contract charges 4,363 -- 6,764 2005 Lowest contract charges 55,927 1.429248 79,933 Highest contract charges 4,363 1.411014 6,157 Remaining contract charges -- -- -- 2004 Lowest contract charges 14,402 1.249263 17,991 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 12,932 1.083781 14,016 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- -------------------------------------------------- HARTFORD GROWTH HLS FUND 2007 Lowest contract charges 1.40% -- 14.87% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% -- 2.90% Highest contract charges 1.89% -- 2.39% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% -- 2.97% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% -- 10.66% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 1.23% -- -- Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD GROWTH OPPORTUNITIES HLS FUND 2007 Lowest contract charges 1.40% 0.02% 27.53% Highest contract charges 1.89% 0.03% 26.89% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 0.55% 10.24% Highest contract charges 1.91% 1.27% 9.69% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.39% -- 14.41% Highest contract charges 1.62% -- 14.01% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% -- 15.27% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 1.24% -- 41.45% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-161 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------- HARTFORD HIGH YIELD HLS FUND 2007 Lowest contract charges 246,057 $1.400582 $344,623 Highest contract charges 20,416 1.353719 27,637 Remaining contract charges 33,719 -- 46,636 2006 Lowest contract charges 304,898 1.385264 422,366 Highest contract charges 16,621 1.345629 22,365 Remaining contract charges 33,606 -- 46,044 2005 Lowest contract charges 276,005 1.266816 349,648 Highest contract charges 4,425 1.236741 5,472 Remaining contract charges 43,244 -- 54,159 2004 Lowest contract charges 302,110 1.261345 381,064 Highest contract charges 16,133 1.242075 20,038 Remaining contract charges 35,438 -- 44,363 2003 Lowest contract charges 314,036 1.193923 374,935 Highest contract charges 3,784 1.179809 4,464 Remaining contract charges 37,395 -- 44,377 HARTFORD INDEX HLS FUND 2007 Lowest contract charges 152,594 5.437964 829,802 Highest contract charges 472 5.256090 2,480 Remaining contract charges 20,912 -- 112,301 2006 Lowest contract charges 254,344 5.255117 1,336,605 Highest contract charges 472 5.104819 2,409 Remaining contract charges 41,224 -- 214,333 2005 Lowest contract charges 276,112 4.627286 1,277,651 Highest contract charges 1,594 4.581945 7,306 Remaining contract charges 39,164 -- 179,590 2004 Lowest contract charges 280,634 4.501460 1,263,261 Highest contract charges 1,594 4.466279 7,121 Remaining contract charges 48,607 -- 217,159 2003 Lowest contract charges 302,268 4.145460 1,253,039 Highest contract charges 1,594 4.121300 6,571 Remaining contract charges 33,413 -- 137,677 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- -------------------------------------------------- HARTFORD HIGH YIELD HLS FUND 2007 Lowest contract charges 1.40% 7.09% 1.11% Highest contract charges 1.89% 7.51% 0.60% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 15.32% 9.35% Highest contract charges 1.90% 23.35% 8.80% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 6.24% 0.43% Highest contract charges 1.87% 9.82% 0.07% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 4.73% 5.65% Highest contract charges 1.74% 4.54% 5.28% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 3.86% 21.17% Highest contract charges 1.68% 3.54% 20.75% Remaining contract charges -- -- -- HARTFORD INDEX HLS FUND 2007 Lowest contract charges 1.40% 1.07% 3.48% Highest contract charges 1.89% 1.42% 2.96% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.43% 13.57% Highest contract charges 1.91% 6.21% 13.00% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 1.59% 2.80% Highest contract charges 1.60% 1.61% 2.59% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 1.07% 8.59% Highest contract charges 1.61% 1.12% 8.37% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 1.15% 26.04% Highest contract charges 1.60% 1.17% 25.79% Remaining contract charges -- -- --
SA-162 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------- HARTFORD INTERNATIONAL GROWTH HLS FUND 2007 Lowest contract charges 169,271 $1.965895 $332,769 Highest contract charges 22,827 1.905033 43,486 Remaining contract charges 16,291 -- 31,287 2006 Lowest contract charges 300,778 1.612967 485,146 Highest contract charges 27,022 1.570859 42,448 Remaining contract charges 21,789 -- 34,454 2005 Lowest contract charges 178,475 1.321537 235,862 Highest contract charges 646 1.293488 835 Remaining contract charges 23,200 -- 30,161 2004 Lowest contract charges 19,876 1.265573 25,154 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 3,798 1.031630 3,918 Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND 2007 Lowest contract charges 89,435 2.404350 215,034 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 91,651 2.242458 205,523 Highest contract charges 1,375 2.183990 3,004 Remaining contract charges -- -- -- 2005 Lowest contract charges 49,065 1.762674 86,486 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 16,255 1.510987 24,562 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 14,045 1.313316 18,446 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- -------------------------------------------------- HARTFORD INTERNATIONAL GROWTH HLS FUND 2007 Lowest contract charges 1.40% 0.35% 21.88% Highest contract charges 1.89% 0.43% 21.27% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 0.52% 22.05% Highest contract charges 1.90% 1.19% 21.44% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.39% 0.63% 4.42% Highest contract charges 0.93% -- 3.90% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.39% -- 22.68% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 1.39% -- 48.75% Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND 2007 Lowest contract charges 1.40% 1.40% 7.22% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.87% 27.22% Highest contract charges 1.90% 2.47% 26.59% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.39% 2.75% 16.66% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% -- 15.05% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 1.39% 1.02% 51.23% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-163 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND 2007 Lowest contract charges 731,012 $1.870595 $1,367,428 Highest contract charges 11,301 1.713829 19,368 Remaining contract charges 5,301,299 -- 9,325,460 2006 Lowest contract charges 1,020,222 1.492426 1,522,605 Highest contract charges 414,109 1.385228 573,636 Remaining contract charges 5,984,889 -- 8,457,585 2005 Lowest contract charges 1,036,986 1.219069 1,264,158 Highest contract charges 679,901 1.144025 777,824 Remaining contract charges 6,925,700 -- 8,040,102 2004 Lowest contract charges 993,897 1.081252 1,074,653 Highest contract charges 224,490 1.025909 230,306 Remaining contract charges 5,574,286 -- 5,783,224 2003 Lowest contract charges 1,080,502 0.930899 1,005,838 Highest contract charges 102,923 0.893007 91,911 Remaining contract charges 4,164,769 -- 3,746,341 HARTFORD MIDCAP HLS FUND 2007 Lowest contract charges 763,479 4.512098 3,444,892 Highest contract charges 37,197 4.458080 165,826 Remaining contract charges -- -- -- 2006 Lowest contract charges 1,287,144 3.978508 5,120,913 Highest contract charges 72,522 3.936774 285,504 Remaining contract charges -- -- -- 2005 Lowest contract charges 1,396,539 3.619701 5,055,053 Highest contract charges 85,490 3.587107 306,662 Remaining contract charges -- -- -- 2004 Lowest contract charges 1,516,966 3.151045 4,780,030 Highest contract charges 35,052 3.102928 108,763 Remaining contract charges 113,078 -- 353,634 2003 Lowest contract charges 1,645,679 2.751199 4,527,591 Highest contract charges 40,690 2.718683 110,622 Remaining contract charges 133,183 -- 364,205 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND 2007 Lowest contract charges 1.40% 0.75% 25.34% Highest contract charges 2.23% 11.91% 23.91% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.21% 22.42% Highest contract charges 2.50% 1.10% 21.08% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% -- 12.75% Highest contract charges 2.48% -- 11.51% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 0.57% 16.15% Highest contract charges 2.38% 2.29% 14.88% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 1.16% 30.92% Highest contract charges 2.37% 1.51% 29.62% Remaining contract charges -- -- -- HARTFORD MIDCAP HLS FUND 2007 Lowest contract charges 1.40% 0.18% 13.41% Highest contract charges 1.55% 0.16% 13.24% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 0.84% 9.91% Highest contract charges 1.55% 0.80% 9.75% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 0.07% 14.87% Highest contract charges 1.55% 0.06% 14.70% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 0.11% 14.53% Highest contract charges 1.75% 0.10% 14.13% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% -- 35.42% Highest contract charges 1.73% -- 34.95% Remaining contract charges -- -- --
SA-164 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HARTFORD MIDCAP VALUE HLS FUND 2007 Lowest contract charges 134,922 $1.720458 $232,128 Highest contract charges 1,466 1.667164 2,444 Remaining contract charges 91,410 -- 155,194 2006 Lowest contract charges 198,287 1.712649 339,596 Highest contract charges 22,315 1.679024 37,468 Remaining contract charges 89,720 -- 152,358 2005 Lowest contract charges 214,820 1.477045 317,298 Highest contract charges 22,119 1.453117 32,142 Remaining contract charges 90,261 -- 132,389 2004 Lowest contract charges 261,848 1.365266 357,491 Highest contract charges 22,813 1.347852 30,749 Remaining contract charges 90,865 -- 123,374 2003 Lowest contract charges 244,551 1.193452 291,860 Highest contract charges 22,700 1.182356 26,840 Remaining contract charges 89,881 -- 106,839 HARTFORD MONEY MARKET HLS FUND 2007 Lowest contract charges 119,533 1.185236 141,675 Highest contract charges 3,148 0.996396 3,136 Remaining contract charges 246,423,041 -- 271,321,646 2006 Lowest contract charges 162,505 1.139019 185,099 Highest contract charges 1,953 1.011338 1,975 Remaining contract charges 153,025,744 -- 163,079,244 2005 Lowest contract charges 143,674 1.115170 160,191 Highest contract charges 698,834 0.959978 670,865 Remaining contract charges 112,044,334 -- 115,995,826 2004 Lowest contract charges 39,819 1.094675 43,588 Highest contract charges 1,071,892 0.959450 1,028,427 Remaining contract charges 88,628,571 -- 91,023,043 2003 Lowest contract charges 144,071 1.094789 157,728 Highest contract charges 160,485 0.976982 156,791 Remaining contract charges 74,310,318 -- 77,507,087 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HARTFORD MIDCAP VALUE HLS FUND 2007 Lowest contract charges 1.40% 0.22% 0.46% Highest contract charges 1.89% 0.38% (0.05)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 0.57% 15.95% Highest contract charges 1.75% 0.58% 15.55% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 0.10% 8.19% Highest contract charges 1.74% 0.10% 7.81% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 0.01% 14.40% Highest contract charges 1.75% 0.01% 14.00% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.39% -- 40.95% Highest contract charges 1.72% -- 40.46% Remaining contract charges -- -- -- HARTFORD MONEY MARKET HLS FUND 2007 Lowest contract charges 0.87% 4.83% 4.06% Highest contract charges 2.24% 3.80% 2.05% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.60% 4.90% 3.82% Highest contract charges 2.56% 4.71% 2.07% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.94% 2.71% 1.87% Highest contract charges 2.50% 2.54% 0.06% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 0.90% 0.01% Highest contract charges 2.46% 1.00% 1.79% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.94% 0.77% 0.20% Highest contract charges 2.39% 0.47% 1.89% Remaining contract charges -- -- --
SA-165 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HARTFORD MORTGAGE SECURITIES HLS FUND 2007 Lowest contract charges 119,724 $2.942854 $352,329 Highest contract charges 76,187 2.844490 216,712 Remaining contract charges 6,374 -- 18,537 2006 Lowest contract charges 137,554 2.893710 398,042 Highest contract charges 7,311 2.863385 20,935 Remaining contract charges -- -- -- 2005 Lowest contract charges 141,161 2.810495 396,731 Highest contract charges 8,389 2.785224 23,365 Remaining contract charges -- -- -- 2004 Lowest contract charges 167,976 2.791291 468,870 Highest contract charges 16,036 2.738765 43,919 Remaining contract charges 14,330 -- 39,700 2003 Lowest contract charges 188,691 2.725422 514,263 Highest contract charges 5,888 2.693264 15,858 Remaining contract charges 15,501 -- 41,992 HARTFORD SMALL COMPANY HLS FUND 2007 Lowest contract charges 644,044 1.999048 1,287,475 Highest contract charges 294,643 1.538611 453,341 Remaining contract charges 4,322,838 -- 6,837,403 2006 Lowest contract charges 1,034,849 1.779188 1,841,188 Highest contract charges 332,633 1.384540 460,544 Remaining contract charges 5,039,557 -- 7,149,842 2005 Lowest contract charges 1,117,590 1.580822 1,766,710 Highest contract charges 331,040 1.243780 411,741 Remaining contract charges 6,180,211 -- 7,841,673 2004 Lowest contract charges 1,159,866 1.328086 1,540,401 Highest contract charges 372,636 1.056494 393,687 Remaining contract charges 7,108,102 -- 7,626,084 2003 Lowest contract charges 1,223,671 1.203552 1,472,751 Highest contract charges 284,870 0.968020 275,760 Remaining contract charges 5,299,336 -- 5,211,393 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HARTFORD MORTGAGE SECURITIES HLS FUND 2007 Lowest contract charges 1.40% 4.97% 1.70% Highest contract charges 1.89% 10.21% 1.19% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 9.98% 2.96% Highest contract charges 1.55% 9.80% 2.81% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 3.71% 0.69% Highest contract charges 1.55% 3.35% 0.54% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 4.68% 2.42% Highest contract charges 1.67% -- 1.91% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 3.25% 0.62% Highest contract charges 1.75% 6.15% 0.26% Remaining contract charges -- -- -- HARTFORD SMALL COMPANY HLS FUND 2007 Lowest contract charges 1.40% -- 12.36% Highest contract charges 2.49% -- 11.13% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 0.10% 12.55% Highest contract charges 2.50% 0.11% 11.32% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% -- 19.03% Highest contract charges 2.49% -- 17.73% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% -- 10.35% Highest contract charges 2.49% -- 9.14% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% -- 53.32% Highest contract charges 2.39% -- 51.80% Remaining contract charges -- -- --
SA-166 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HARTFORD SMALLCAP GROWTH HLS FUND 2007 Lowest contract charges 87,574 $1.358036 $118,929 Highest contract charges 5,669 1.320592 7,486 Remaining contract charges 18,907 -- 25,171 2006 Lowest contract charges 98,923 1.406553 139,141 Highest contract charges 5,754 1.374628 7,909 Remaining contract charges 21,175 -- 29,301 2005 Lowest contract charges 87,090 1.338187 116,544 Highest contract charges 631 1.314363 829 Remaining contract charges 19,482 -- 25,738 2004 Lowest contract charges 53,236 1.225032 65,216 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 38,393 1.078920 41,423 Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD STOCK HLS FUND 2007 Lowest contract charges 3,754,373 1.277448 4,796,017 Highest contract charges 969,640 1.010530 979,850 Remaining contract charges 19,603,434 -- 20,358,735 2006 Lowest contract charges 5,155,251 1.226336 6,322,070 Highest contract charges 1,118,721 0.980820 1,097,264 Remaining contract charges 23,415,993 -- 23,524,486 2005 Lowest contract charges 5,450,383 1.087385 5,926,665 Highest contract charges 1,136,270 0.879295 999,117 Remaining contract charges 26,765,950 -- 23,984,706 2004 Lowest contract charges 5,842,903 1.008454 5,892,298 Highest contract charges 715,689 0.824491 590,079 Remaining contract charges 24,855,123 -- 20,796,205 2003 Lowest contract charges 6,255,434 0.984211 6,156,667 Highest contract charges 57,774 0.813561 47,002 Remaining contract charges 15,925,269 -- 13,127,032 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HARTFORD SMALLCAP GROWTH HLS FUND 2007 Lowest contract charges 1.40% 0.02% (3.45)% Highest contract charges 1.89% 0.02% (3.93)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 0.13% 5.11% Highest contract charges 1.89% 0.16% 4.59% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.39% 0.16% 9.24% Highest contract charges 0.93% -- 8.69% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% -- 13.54% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 1.23% -- 47.61% Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD STOCK HLS FUND 2007 Lowest contract charges 1.40% 0.65% 4.17% Highest contract charges 2.49% 0.70% 3.03% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.09% 12.78% Highest contract charges 2.50% 1.09% 11.55% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 1.56% 7.83% Highest contract charges 2.49% 1.71% 6.65% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 0.93% 2.46% Highest contract charges 2.48% 1.64% 1.34% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 0.99% 24.41% Highest contract charges 2.38% 1.22% 23.17% Remaining contract charges -- -- --
SA-167 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND 2007 Lowest contract charges 476,692 $1.132329 $539,772 Highest contract charges 2,931 1.101078 3,227 Remaining contract charges 67,657 -- 75,309 2006 Lowest contract charges 547,866 1.102881 604,233 Highest contract charges 2,931 1.077824 3,159 Remaining contract charges 70,756 -- 76,958 2005 Lowest contract charges 535,185 1.077947 576,901 Highest contract charges 783 1.058738 829 Remaining contract charges 70,207 -- 74,880 2004 Lowest contract charges 683,975 1.079155 738,114 Highest contract charges 1,498 1.069109 1,602 Remaining contract charges 26,410 -- 28,387 2003 Lowest contract charges 691,324 1.074837 743,061 Highest contract charges 15,587 1.068567 16,656 Remaining contract charges 27,096 -- 29,051 HARTFORD VALUE HLS FUND 2007 Lowest contract charges 91,158 1.429723 130,330 Highest contract charges 3,449 1.410824 4,865 Remaining contract charges 20,874 -- 29,549 2006 Lowest contract charges 104,647 1.333769 139,575 Highest contract charges 3,452 1.318772 4,553 Remaining contract charges 84,589 -- 111,866 2005 Lowest contract charges 104,208 1.113029 115,986 Highest contract charges 3,457 1.102708 3,812 Remaining contract charges 81,660 -- 90,255 2004 Lowest contract charges 13,289 1.046429 13,906 Highest contract charges 12,082 1.033088 12,482 Remaining contract charges 87,064 -- 90,599 2003 Lowest contract charges 12,553 0.960952 12,063 Highest contract charges 3,467 0.955846 3,314 Remaining contract charges 35,343 -- 33,826 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND 2007 Lowest contract charges 1.40% 3.51% 2.67% Highest contract charges 1.86% 3.69% 2.16% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 3.23% 2.31% Highest contract charges 1.86% 2.01% 1.80% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 2.50% 0.11% Highest contract charges 0.94% -- 0.61% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 3.36% 0.40% Highest contract charges 1.78% 0.86% 0.05% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 1.55% 0.47% Highest contract charges 1.75% 2.82% 0.12% Remaining contract charges -- -- -- HARTFORD VALUE HLS FUND 2007 Lowest contract charges 1.40% 0.92% 7.19% Highest contract charges 1.60% 1.02% 6.98% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 0.87% 19.83% Highest contract charges 1.60% 0.87% 19.59% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.39% 2.37% 6.37% Highest contract charges 1.59% 2.01% 6.15% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 0.27% 8.90% Highest contract charges 1.68% -- 8.52% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 0.74% 26.50% Highest contract charges 1.60% 0.66% 26.25% Remaining contract charges -- -- --
SA-168 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HARTFORD VALUE OPPORTUNITIES HLS FUND 2007 Lowest contract charges 142,934 $1.491912 $213,245 Highest contract charges 22,028 1.450756 31,958 Remaining contract charges -- -- -- 2006 Lowest contract charges 181,366 1.618630 293,564 Highest contract charges 26,119 1.581867 41,316 Remaining contract charges -- -- -- 2005 Lowest contract charges 124,158 1.382540 171,652 Highest contract charges 611 1.357902 830 Remaining contract charges -- -- -- 2004 Lowest contract charges 9,269 1.297525 12,026 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 9,275 1.109648 10,292 Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD EQUITY INCOME HLS FUND 2007 Lowest contract charges 12,249 1.489076 18,240 Highest contract charges 25,142 1.458445 36,669 Remaining contract charges 1,658 -- 2,447 2006 Lowest contract charges 17,507 1.415573 24,782 Highest contract charges 21,333 1.393396 29,726 Remaining contract charges 283 -- 398 2005 Lowest contract charges 16,805 1.191368 20,022 Highest contract charges 701 1.178576 826 Remaining contract charges -- -- -- HUNTINGTON VA INCOME EQUITY FUND 2007 Lowest contract charges 588,221 1.372128 807,115 Highest contract charges 4,986 14.136235 70,485 Remaining contract charges 183,580 -- 1,561,414 2006 Lowest contract charges 172,442 1.377826 237,595 Highest contract charges 5,262 14.359121 75,558 Remaining contract charges 132,822 -- 1,485,875 2005 Lowest contract charges 15,565 1.240399 19,306 Highest contract charges 5,238 13.076432 68,489 Remaining contract charges 97,364 -- 1,289,834 2004 Lowest contract charges 5,594 13.241853 74,085 Highest contract charges 3,918 13.019064 51,015 Remaining contract charges 74,294 -- 974,760 2003 Lowest contract charges 2,206 11.850404 26,138 Highest contract charges 3,306 11.748526 38,845 Remaining contract charges 29,850 -- 352,062 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HARTFORD VALUE OPPORTUNITIES HLS FUND 2007 Lowest contract charges 1.40% 0.86% (7.83)% Highest contract charges 1.89% 0.85% (8.29)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.20% 17.08% Highest contract charges 1.90% 2.10% 16.49% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.39% 1.33% 6.55% Highest contract charges 0.93% -- 6.02% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.39% 0.23% 16.93% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2003 Lowest contract charges 1.25% 0.52% 39.56% Highest contract charges -- -- -- Remaining contract charges -- -- -- HARTFORD EQUITY INCOME HLS FUND 2007 Lowest contract charges 1.40% 1.42% 5.19% Highest contract charges 1.89% 1.83% 4.67% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.60% 18.82% Highest contract charges 1.89% 6.07% 18.23% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.38% 2.91% 3.10% Highest contract charges 0.94% -- 2.59% Remaining contract charges -- -- -- HUNTINGTON VA INCOME EQUITY FUND 2007 Lowest contract charges 1.34% 1.49% (0.41)% Highest contract charges 2.49% 1.80% (1.55)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.34% 1.60% 11.08% Highest contract charges 2.50% 1.92% 9.81% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.32% 1.25% 3.40% Highest contract charges 2.49% 1.71% 0.44% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.69% -- 11.74% Highest contract charges 2.46% -- 10.85% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.68% 3.90% 16.43% Highest contract charges 1.55% 4.65% 16.45% Remaining contract charges -- -- --
SA-169 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HUNTINGTON VA DIVIDEND CAPTURE FUND 2007 Lowest contract charges 1,247,927 $1.477762 $1,844,140 Highest contract charges 8,054 14.107888 113,619 Remaining contract charges 1,047,789 -- 6,432,711 2006 Lowest contract charges 397,917 1.595687 634,953 Highest contract charges 7,096 15.409957 109,346 Remaining contract charges 426,795 -- 5,079,252 2005 Lowest contract charges 76,430 1.387277 106,030 Highest contract charges 6,302 13.552210 85,409 Remaining contract charges 224,152 -- 3,063,959 2004 Lowest contract charges 8,898 13.641047 121,388 Highest contract charges 3,765 13.411543 50,491 Remaining contract charges 87,725 -- 1,184,756 2003 Lowest contract charges 4,086 12.197239 49,836 Highest contract charges 3,304 12.092405 39,955 Remaining contract charges 33,099 -- 401,765 HUNTINGTON VA GROWTH FUND 2007 Lowest contract charges 836,922 1.024222 857,194 Highest contract charges 3,586 13.805801 49,502 Remaining contract charges 205,720 -- 1,180,200 2006 Lowest contract charges 134,031 0.905081 121,308 Highest contract charges 3,709 12.340854 45,773 Remaining contract charges 149,642 -- 789,488 2005 Lowest contract charges 45,909 0.849930 39,020 Highest contract charges 3,679 11.742513 43,202 Remaining contract charges 60,173 -- 715,534 2004 Lowest contract charges 4,549 12.158550 55,307 Highest contract charges 2,710 11.953918 32,393 Remaining contract charges 46,966 -- 565,512 2003 Lowest contract charges 3,533 11.702990 41,343 Highest contract charges 1,783 11.602372 20,693 Remaining contract charges 19,790 -- 230,463 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HUNTINGTON VA DIVIDEND CAPTURE FUND 2007 Lowest contract charges 1.34% 2.81% (7.39)% Highest contract charges 2.49% 3.40% (8.45)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 2.60% 15.02% Highest contract charges 2.50% 3.32% 13.71% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.29% 2.16% 4.20% Highest contract charges 2.48% 3.20% 1.05% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.69% 0.05% 11.84% Highest contract charges 2.46% -- 10.95% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.68% 5.71% 19.31% Highest contract charges 1.55% 7.18% 16.38% Remaining contract charges -- -- -- HUNTINGTON VA GROWTH FUND 2007 Lowest contract charges 1.34% 0.29% 13.16% Highest contract charges 2.49% 0.43% 11.87% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 0.09% 6.31% Highest contract charges 2.50% 0.42% 5.10% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.47% -- 3.50% Highest contract charges 2.49% 0.49% 1.77% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.70% 0.01% 3.89% Highest contract charges 2.45% -- 3.07% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.68% 0.37% 13.99% Highest contract charges 1.56% 0.47% 13.21% Remaining contract charges -- -- --
SA-170 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HUNTINGTON VA MID CORP AMERICA FUND 2007 Lowest contract charges 601,487 $1.781308 $1,071,433 Highest contract charges 3,317 17.804561 59,056 Remaining contract charges 421,901 -- 4,184,354 2006 Lowest contract charges 301,645 1.660206 500,791 Highest contract charges 2,796 16.786040 46,928 Remaining contract charges 314,083 -- 3,245,167 2005 Lowest contract charges 54,155 1.569226 84,982 Highest contract charges 2,287 16.049710 36,703 Remaining contract charges 141,793 -- 1,967,504 2004 Lowest contract charges 6,408 14.854866 95,191 Highest contract charges 922 14.604930 13,462 Remaining contract charges 45,358 -- 667,308 2003 Lowest contract charges 2,791 12.923624 36,072 Highest contract charges 862 12.812513 11,049 Remaining contract charges 21,331 -- 274,309 HUNTINGTON VA NEW ECONOMY FUND 2007 Lowest contract charges 828,545 1.904692 1,578,123 Highest contract charges 2,389 19.342180 46,207 Remaining contract charges 287,317 -- 3,484,222 2006 Lowest contract charges 370,392 1.716058 635,614 Highest contract charges 2,267 17.627960 39,958 Remaining contract charges 218,784 -- 2,240,094 2005 Lowest contract charges 57,877 1.577247 91,287 Highest contract charges 2,334 16.389399 38,247 Remaining contract charges 95,435 -- 1,444,062 2004 Lowest contract charges 3,932 15.093436 59,356 Highest contract charges 1,750 14.839470 25,963 Remaining contract charges 36,504 -- 545,245 2003 Lowest contract charges 1,004 12.927692 12,985 Highest contract charges 1,438 12.816543 18,436 Remaining contract charges 11,942 -- 153,586 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HUNTINGTON VA MID CORP AMERICA FUND 2007 Lowest contract charges 1.34% 0.48% 7.29% Highest contract charges 2.49% 0.56% 6.07% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 0.31% 5.80% Highest contract charges 2.50% 0.37% 4.59% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.25% 0.07% 14.24% Highest contract charges 2.48% 0.11% 9.89% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.69% 0.02% 14.94% Highest contract charges 2.46% 0.01% 14.03% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.68% 0.18% 27.45% Highest contract charges 1.55% 0.27% 26.82% Remaining contract charges -- -- -- HUNTINGTON VA NEW ECONOMY FUND 2007 Lowest contract charges 1.34% 0.15% 10.99% Highest contract charges 2.49% 0.17% 9.72% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 0.08% 8.80% Highest contract charges 2.50% 0.12% 7.56% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.26% -- 15.94% Highest contract charges 2.49% -- 10.45% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.69% -- 16.75% Highest contract charges 2.44% -- 15.82% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.67% -- 29.35% Highest contract charges 1.56% -- 23.60% Remaining contract charges -- -- --
SA-171 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HUNTINGTON VA ROTATING MARKETS FUND 2007 Lowest contract charges 286,453 $1.625080 $465,509 Highest contract charges 2,461 18.127386 44,618 Remaining contract charges 179,794 -- 1,667,938 2006 Lowest contract charges 84,660 1.509664 127,806 Highest contract charges 2,094 17.034600 35,678 Remaining contract charges 128,819 -- 1,223,580 2005 Lowest contract charges 5,423 1.279296 6,938 Highest contract charges 1,626 14.602090 23,750 Remaining contract charges 68,598 -- 1,014,739 2004 Lowest contract charges 4,823 13.886007 66,966 Highest contract charges 970 13.652372 13,237 Remaining contract charges 61,173 -- 841,991 2003 Lowest contract charges 2,907 12.652208 36,780 Highest contract charges 1,310 12.543441 16,435 Remaining contract charges 16,970 -- 213,650 HUNTINGTON VA INTERNATIONAL EQUITY FUND 2007 Lowest contract charges 101,809 16.198358 1,649,135 Highest contract charges 3,144 1.711354 5,381 Remaining contract charges 1,025,503 -- 2,544,723 2006 Lowest contract charges 37,900 14.430333 546,914 Highest contract charges 82,936 1.553815 128,868 Remaining contract charges 229,665 -- 465,207 2005 Lowest contract charges 685 11.630368 7,971 Highest contract charges 15,596 1.263000 19,697 Remaining contract charges 5,367 -- 21,530 HUNTINGTON VA MACRO 100 FUND 2007 Lowest contract charges 578,064 1.108493 640,780 Highest contract charges 21,412 1.064643 22,796 Remaining contract charges 632,429 -- 687,868 2006 Lowest contract charges 267,069 1.155831 308,687 Highest contract charges 17,754 1.122950 19,937 Remaining contract charges 505,524 -- 574,916 2005 Lowest contract charges 37,620 1.092207 41,089 Highest contract charges 8,916 1.073412 9,570 Remaining contract charges 222,121 -- 240,013 2004 Lowest contract charges 13,580 1.050977 14,273 Highest contract charges 49,494 1.048339 51,886 Remaining contract charges 21,023 -- 22,056 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HUNTINGTON VA ROTATING MARKETS FUND 2007 Lowest contract charges 1.34% 0.77% 7.65% Highest contract charges 2.49% 0.82% 6.42% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.34% 0.56% 18.01% Highest contract charges 2.50% 0.58% 16.66% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.22% -- 13.36% Highest contract charges 2.48% 0.64% 6.96% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.69% 0.48% 9.75% Highest contract charges 2.44% 0.16% 8.88% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.68% -- 22.26% Highest contract charges 1.55% -- 21.04% Remaining contract charges -- -- -- HUNTINGTON VA INTERNATIONAL EQUITY FUND 2007 Lowest contract charges 1.34% 0.01% 12.25% Highest contract charges 2.48% 0.02% 10.97% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.34% 2.48% 24.08% Highest contract charges 2.19% 1.80% 23.03% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.22% 14.70% 15.18% Highest contract charges 2.15% 1.08% 14.71% Remaining contract charges -- -- -- HUNTINGTON VA MACRO 100 FUND 2007 Lowest contract charges 1.34% 0.39% (4.10)% Highest contract charges 2.49% 0.40% (5.19)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 0.07% 5.83% Highest contract charges 2.50% 0.13% 4.62% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.31% 0.16% 14.04% Highest contract charges 2.45% 0.19% 2.55% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.83% -- 5.10% Highest contract charges 1.06% -- 4.83% Remaining contract charges -- -- --
SA-172 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- HUNTINGTON VA MORTGAGE SECURITIES FUND 2007 Lowest contract charges 90,663 $10.719929 $971,899 Highest contract charges 1,240 1.071435 1,328 Remaining contract charges 587,371 -- 815,707 2006 Lowest contract charges 27,961 10.454920 292,340 Highest contract charges 46,821 1.065020 49,865 Remaining contract charges 220,785 -- 311,976 2005 Lowest contract charges 1,548 10.007438 15,493 Highest contract charges 7,302 1.030448 7,525 Remaining contract charges 5,651 -- 5,852 HUNTINGTON VA SITUS SMALL CAP FUND 2007 Lowest contract charges 867,456 1.482212 1,285,753 Highest contract charges 14,542 1.423618 20,703 Remaining contract charges 3,052,677 -- 4,437,061 2006 Lowest contract charges 426,891 1.348911 575,837 Highest contract charges 7,995 1.310568 10,478 Remaining contract charges 1,898,640 -- 2,521,605 2005 Lowest contract charges 40,251 1.304158 52,493 Highest contract charges 2,500 1.281741 3,204 Remaining contract charges 778,086 -- 1,003,374 2004 Lowest contract charges 3,979 1.124039 4,472 Highest contract charges 11,840 1.123192 13,299 Remaining contract charges -- -- -- MFS CORE EQUITY SERIES 2007 Lowest contract charges 231 11.440100 2,640 Highest contract charges 1,687 7.337532 12,377 Remaining contract charges 1,326,505 -- 12,493,279 2006 Lowest contract charges 232 10.390804 2,404 Highest contract charges 2,005 6.768617 13,569 Remaining contract charges 1,670,080 -- 14,329,489 2005 Lowest contract charges 232 9.217904 2,138 Highest contract charges 3,157 6.098386 19,251 Remaining contract charges 1,958,914 -- 15,047,096 2004 Lowest contract charges 230 9.151640 2,130 Highest contract charges 3,043 6.149111 18,712 Remaining contract charges 2,218,608 -- 17,092,503 2003 Lowest contract charges 233 8.215084 1,918 Highest contract charges 10,532 7.414145 78,088 Remaining contract charges 2,190,633 -- 15,579,712 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- HUNTINGTON VA MORTGAGE SECURITIES FUND 2007 Lowest contract charges 1.34% 1.63% 2.54% Highest contract charges 2.48% 2.84% 1.36% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 0.26% 4.47% Highest contract charges 2.18% -- 3.59% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.08% -- 0.27% Highest contract charges 2.02% -- 0.61% Remaining contract charges -- -- -- HUNTINGTON VA SITUS SMALL CAP FUND 2007 Lowest contract charges 1.34% 0.43% 9.88% Highest contract charges 2.48% 0.39% 8.63% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.34% 0.12% 3.43% Highest contract charges 2.50% 0.09% 2.25% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.26% -- 20.04% Highest contract charges 2.45% 0.01% 14.29% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.01% -- 12.40% Highest contract charges 1.07% -- 12.32% Remaining contract charges -- -- -- MFS CORE EQUITY SERIES 2007 Lowest contract charges 0.94% 0.34% 10.10% Highest contract charges 2.49% 0.34% 8.41% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.98% 0.44% 12.72% Highest contract charges 2.50% 0.51% 10.99% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.98% 0.74% 0.72% Highest contract charges 2.49% 0.74% 0.83% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 0.36% 11.40% Highest contract charges 2.46% 0.40% 9.69% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.99% 0.23% 26.18% Highest contract charges 2.33% 0.19% 24.43% Remaining contract charges -- -- --
SA-173 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- MFS EMERGING GROWTH SERIES 2007 Lowest contract charges 454 $10.523433 $4,777 Highest contract charges 5,192 6.418030 33,321 Remaining contract charges 2,651,797 -- 22,797,952 2006 Lowest contract charges 98,320 8.678651 853,284 Highest contract charges 5,111 5.433347 27,768 Remaining contract charges 2,290,946 -- 17,105,942 2005 Lowest contract charges 77,507 8.153094 631,920 Highest contract charges 3,879 5.165968 20,039 Remaining contract charges 2,416,051 -- 17,405,243 2004 Lowest contract charges 62,174 7.568372 470,548 Highest contract charges 11,808 4.855786 57,337 Remaining contract charges 2,481,207 -- 16,809,258 2003 Lowest contract charges 28,019 6.791141 190,278 Highest contract charges 1,509 4.367772 6,589 Remaining contract charges 2,334,638 -- 14,688,617 MFS GLOBAL EQUITY SERIES 2007 Lowest contract charges 3,633 17.942006 65,182 Highest contract charges 9,662 14.287162 138,037 Remaining contract charges 658,987 -- 10,506,039 2006 Lowest contract charges 34,570 16.420004 567,659 Highest contract charges 4,954 13.415376 66,463 Remaining contract charges 687,118 -- 10,099,529 2005 Lowest contract charges 18,887 13.377978 252,672 Highest contract charges 4,223 11.056369 46,694 Remaining contract charges 650,175 -- 7,844,416 2004 Lowest contract charges 7,781 12.593096 97,993 Highest contract charges 1,477 10.528057 15,547 Remaining contract charges 734,952 -- 8,440,222 2003 Lowest contract charges 3,165 10.791504 34,155 Highest contract charges 1,424 10.046478 14,304 Remaining contract charges 377,586 -- 3,774,010 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- MFS EMERGING GROWTH SERIES 2007 Lowest contract charges 0.86% -- 20.15% Highest contract charges 2.54% -- 18.12% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% -- 6.45% Highest contract charges 2.55% -- 5.18% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% -- 7.73% Highest contract charges 2.52% -- 6.44% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.35% -- 11.45% Highest contract charges 2.46% -- 10.17% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.90% -- 19.89% Highest contract charges 2.39% -- 27.14% Remaining contract charges -- -- -- MFS GLOBAL EQUITY SERIES 2007 Lowest contract charges 0.84% -- 8.27% Highest contract charges 2.49% 2.02% 6.50% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 0.51% 22.74% Highest contract charges 2.50% 0.49% 21.34% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% 0.22% 6.23% Highest contract charges 2.48% 0.28% 5.02% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.34% 0.26% 16.70% Highest contract charges 2.46% -- 15.36% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.90% -- 23.42% Highest contract charges 2.34% 0.07% 24.88% Remaining contract charges -- -- --
SA-174 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- MFS HIGH INCOME SERIES 2007 Lowest contract charges 1,073 $13.526642 $14,511 Highest contract charges 396 12.205674 4,836 Remaining contract charges 6,374,390 -- 80,860,267 2006 Lowest contract charges 507 13.404996 6,793 Highest contract charges 349 12.303290 4,295 Remaining contract charges 6,477,357 -- 82,012,390 2005 Lowest contract charges 1,790 12.450166 22,292 Highest contract charges 349 11.434854 3,993 Remaining contract charges 6,857,178 -- 79,955,561 2004 Lowest contract charges 3,098 12.303541 38,111 Highest contract charges 30,723 11.488203 352,956 Remaining contract charges 6,233,648 -- 72,407,930 2003 Lowest contract charges 1,791 11.379739 20,381 Highest contract charges 38,364 10.647511 408,484 Remaining contract charges 4,842,418 -- 52,484,124 MFS INVESTORS GROWTH STOCK SERIES 2007 Lowest contract charges 54 9.904658 535 Highest contract charges 799 7.001540 5,591 Remaining contract charges 2,875,698 -- 24,195,138 2006 Lowest contract charges 54 8.992777 492 Highest contract charges 799 6.449766 5,150 Remaining contract charges 3,406,699 -- 26,100,112 2005 Lowest contract charges 55 8.451965 468 Highest contract charges 28,943 6.156607 178,189 Remaining contract charges 4,015,498 -- 28,897,793 2004 Lowest contract charges 57 8.178342 459 Highest contract charges 19,597 6.041268 118,388 Remaining contract charges 4,563,595 -- 32,178,546 2003 Lowest contract charges 57 7.573204 433 Highest contract charges 20,361 7.007495 142,679 Remaining contract charges 4,166,965 -- 27,761,019 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- MFS HIGH INCOME SERIES 2007 Lowest contract charges 0.85% 7.12% 0.91% Highest contract charges 2.54% 6.58% (0.79)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% -- 9.44% Highest contract charges 2.55% 7.79% 7.60% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.95% 9.04% 1.19% Highest contract charges 2.45% -- 0.42% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 4.96% 8.12% Highest contract charges 2.47% 2.81% 6.46% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% 3.96% 16.84% Highest contract charges 2.34% 2.93% 15.22% Remaining contract charges -- -- -- MFS INVESTORS GROWTH STOCK SERIES 2007 Lowest contract charges 0.91% 0.32% 10.14% Highest contract charges 2.54% 0.32% 8.56% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.99% -- 6.40% Highest contract charges 2.54% -- 4.87% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.00% 0.35% 3.35% Highest contract charges 2.49% 0.31% 1.91% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.99% -- 7.99% Highest contract charges 2.47% -- 6.49% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.01% -- 21.68% Highest contract charges 2.33% -- 20.17% Remaining contract charges -- -- --
SA-175 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- MFS INVESTORS TRUST SERIES 2007 Lowest contract charges 2,803,203 $12.109375 $33,945,037 Highest contract charges 3,178 10.111297 32,131 Remaining contract charges 14,207,504 -- 146,599,269 2006 Lowest contract charges 1,872,392 11.127182 20,834,429 Highest contract charges 221 9.403315 2,080 Remaining contract charges 13,321,398 -- 126,960,587 2005 Lowest contract charges 1,019,422 9.981433 10,175,294 Highest contract charges 114,688 8.545435 980,060 Remaining contract charges 11,000,648 -- 94,594,486 2004 Lowest contract charges 446,808 9.427597 4,212,333 Highest contract charges 31,576 8.164604 257,806 Remaining contract charges 7,691,741 -- 62,913,124 2003 Lowest contract charges 46,911 8.581266 402,557 Highest contract charges 31,845 7.418037 236,228 Remaining contract charges 3,896,405 -- 29,280,938 MFS MID CAP GROWTH SERIES 2007 Lowest contract charges 287 6.732442 1,930 Highest contract charges 635 6.642002 4,216 Remaining contract charges 6,100,318 -- 40,095,941 2006 Lowest contract charges 886 6.195864 5,496 Highest contract charges 1,293 6.204074 8,022 Remaining contract charges 6,816,701 -- 41,543,314 2005 Lowest contract charges 277 6.172433 1,709 Highest contract charges 118,933 6.212611 738,885 Remaining contract charges 7,286,345 -- 44,086,442 2004 Lowest contract charges 743 6.043547 4,493 Highest contract charges 24,295 6.177888 150,090 Remaining contract charges 7,201,116 -- 43,055,062 2003 Lowest contract charges 464 5.325653 2,473 Highest contract charges 43,195 5.121071 221,207 Remaining contract charges 5,448,295 -- 28,870,143 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- MFS INVESTORS TRUST SERIES 2007 Lowest contract charges 1.34% 0.75% 8.83% Highest contract charges 2.40% 0.41% 7.53% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 0.43% 11.48% Highest contract charges 2.55% 0.60% 10.15% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% 0.47% 5.88% Highest contract charges 2.48% 0.36% 4.66% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.34% 0.37% 9.86% Highest contract charges 2.46% 0.25% 8.61% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.88% -- 17.00% Highest contract charges 2.31% 0.23% 19.31% Remaining contract charges -- -- -- MFS MID CAP GROWTH SERIES 2007 Lowest contract charges 0.86% -- 8.89% Highest contract charges 2.55% 0.13% 7.06% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.13% -- 1.37% Highest contract charges 2.54% -- (0.04)% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.98% -- 2.13% Highest contract charges 2.47% -- 0.56% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% -- 13.48% Highest contract charges 2.47% -- 11.73% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% -- 35.74% Highest contract charges 2.33% -- 33.85% Remaining contract charges -- -- --
SA-176 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- MFS NEW DISCOVERY SERIES 2007 Lowest contract charges 984 $15.627695 $15,382 Highest contract charges 644 8.740299 5,628 Remaining contract charges 9,042,411 -- 105,026,544 2006 Lowest contract charges 184 15.374161 2,840 Highest contract charges 544 8.745989 4,758 Remaining contract charges 8,454,991 -- 96,607,693 2005 Lowest contract charges 3,567 13.920832 49,658 Highest contract charges 136 7.924706 1,077 Remaining contract charges 6,826,612 -- 69,770,928 2004 Lowest contract charges 3,564 13.353210 47,633 Highest contract charges 36,507 7.727987 282,123 Remaining contract charges 4,251,036 -- 42,642,471 2003 Lowest contract charges 3,672 12.655700 46,468 Highest contract charges 1,879 7.438770 13,977 Remaining contract charges 2,283,719 -- 22,981,090 MFS TOTAL RETURN SERIES 2007 Lowest contract charges 22,048 16.188154 356,908 Highest contract charges 2,549 13.955001 35,565 Remaining contract charges 38,008,202 -- 544,387,008 2006 Lowest contract charges 9,242 15.666027 144,750 Highest contract charges 2,532 13.736415 34,777 Remaining contract charges 33,818,630 -- 469,905,418 2005 Lowest contract charges 1,925 14.120252 27,181 Highest contract charges 296,300 12.605897 3,735,130 Remaining contract charges 27,862,055 -- 350,520,528 2004 Lowest contract charges 13,307 14.092027 187,554 Highest contract charges 96,608 12.570577 1,214,418 Remaining contract charges 20,952,129 -- 261,180,901 2003 Lowest contract charges 10,037 12.779699 128,265 Highest contract charges 6,924 10.861973 75,212 Remaining contract charges 13,431,756 -- 153,518,378 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- MFS NEW DISCOVERY SERIES 2007 Lowest contract charges 0.84% -- 1.65% Highest contract charges 2.54% -- (0.07)% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.87% -- 12.26% Highest contract charges 2.55% -- 10.36% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.95% -- 4.25% Highest contract charges 2.54% -- 2.60% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% -- 5.51% Highest contract charges 2.48% -- 3.89% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.96% -- 32.45% Highest contract charges 2.39% -- 30.55% Remaining contract charges -- -- -- MFS TOTAL RETURN SERIES 2007 Lowest contract charges 0.84% 2.17% 3.33% Highest contract charges 2.54% 2.51% 1.59% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.84% 1.63% 10.95% Highest contract charges 2.54% 0.57% 9.08% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.83% -- 3.75% Highest contract charges 2.48% 1.43% 0.28% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.95% 1.63% 10.27% Highest contract charges 2.48% 1.17% 8.57% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.95% 1.67% 15.22% Highest contract charges 2.38% 0.86% 13.57% Remaining contract charges -- -- --
SA-177 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- MFS VALUE SERIES 2007 Lowest contract charges 4,611 $18.846102 $86,898 Highest contract charges 1,506 17.585857 26,482 Remaining contract charges 4,214,215 -- 76,690,143 2006 Lowest contract charges 1,146 17.614057 20,192 Highest contract charges 468 16.717946 7,818 Remaining contract charges 2,959,469 -- 50,725,511 2005 Lowest contract charges 230 14.700660 3,380 Highest contract charges 70,042 14.206107 995,022 Remaining contract charges 1,526,354 -- 22,051,129 2004 Lowest contract charges 150 14.004824 2,083 Highest contract charges 23,394 13.656146 319,470 Remaining contract charges 965,392 -- 13,312,711 2003 Lowest contract charges 13,955 12.242356 170,842 Highest contract charges 20,623 12.160581 250,788 Remaining contract charges 285,982 -- 3,488,945 MFS RESEARCH BOND SERIES 2007 Lowest contract charges 1,564 10.656122 16,667 Highest contract charges 2,030 10.244550 20,801 Remaining contract charges 2,739,450 -- 28,686,847 2006 Lowest contract charges 2,071 10.344135 21,411 Highest contract charges 372 10.084786 3,747 Remaining contract charges 1,086,634 -- 11,104,207 2005 Lowest contract charges 1,142 10.056830 11,486 Highest contract charges 372 9.942911 3,698 Remaining contract charges 256,785 -- 2,568,470 MFS RESEARCH INTERNATIONAL SERIES 2007 Lowest contract charges 3,508 16.749135 58,758 Highest contract charges 839 16.005105 13,426 Remaining contract charges 1,234,949 -- 20,184,916 2006 Lowest contract charges 57,081 14.847352 847,466 Highest contract charges 7,176 14.564440 104,514 Remaining contract charges 435,505 -- 6,404,209 2005 Lowest contract charges 3,179 11.985466 38,100 Highest contract charges 1,814 11.893036 21,579 Remaining contract charges 66,857 -- 797,595 MFS RESEARCH SERIES 2007 Lowest contract charges 9,121 13.109180 119,573 Highest contract charges 6,540 12.509501 81,813 Remaining contract charges 278,359 -- 3,549,498 2006 Lowest contract charges 1,347 11.678964 15,712 Highest contract charges 3,642 11.330079 41,259 Remaining contract charges 125,414 -- 1,438,798 2005 Lowest contract charges 4,416 10.617084 46,890 Highest contract charges 2,363 10.515260 24,850 Remaining contract charges 69,469 -- 734,015 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- MFS VALUE SERIES 2007 Lowest contract charges 0.84% 0.77% 7.00% Highest contract charges 2.50% 0.84% 5.19% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% 1.00% 19.82% Highest contract charges 2.57% -- 17.80% Remaining contract charges -- -- -- 2005 Lowest contract charges 0.85% -- 6.68% Highest contract charges 2.48% 0.62% 4.03% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.93% -- 14.09% Highest contract charges 2.46% 0.06% 12.34% Remaining contract charges -- -- -- 2003 Lowest contract charges 0.89% -- 22.42% Highest contract charges 1.57% -- 21.61% Remaining contract charges -- -- -- MFS RESEARCH BOND SERIES 2007 Lowest contract charges 1.15% 3.55% 3.02% Highest contract charges 2.46% 2.44% 1.58% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.15% 4.16% 2.86% Highest contract charges 2.55% 4.18% 1.43% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.04% -- 0.71% Highest contract charges 2.47% -- 0.22% Remaining contract charges -- -- -- MFS RESEARCH INTERNATIONAL SERIES 2007 Lowest contract charges 0.84% -- 11.87% Highest contract charges 2.23% -- 9.98% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 2.08% 23.88% Highest contract charges 2.50% 1.44% 22.46% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.31% 3.07% 19.63% Highest contract charges 2.41% 4.40% 18.72% Remaining contract charges -- -- -- MFS RESEARCH SERIES 2007 Lowest contract charges 0.84% 0.22% 12.25% Highest contract charges 2.49% 0.66% 10.41% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.85% -- 9.54% Highest contract charges 2.50% 0.52% 7.75% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.33% -- 12.08% Highest contract charges 2.44% -- 11.23% Remaining contract charges -- -- --
SA-178 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ---------------------------------------------------------------------------- BLACKROCK GLOBAL GROWTH V.I. FUND 2007 Lowest contract charges 834 $19.680286 $16,421 Highest contract charges 15,055 19.227626 289,471 Remaining contract charges 1,064 -- 20,512 2006 Lowest contract charges 936 14.616321 13,674 Highest contract charges 15,055 14.337316 215,848 Remaining contract charges 1,064 -- 15,288 2005 Lowest contract charges 1,025 9.430327 9,663 Highest contract charges 15,823 11.994124 189,785 Remaining contract charges 1,064 -- 12,783 2004 Lowest contract charges 1,025 8.340096 8,553 Highest contract charges 15,121 10.639336 160,881 Remaining contract charges 8,145 -- 86,783 2003 Lowest contract charges 1,026 7.365984 7,559 Highest contract charges 14,907 9.424894 140,500 Remaining contract charges 8,145 -- 76,839 BLACKROCK LARGE CAP GROWTH V.I. FUND 2007 Lowest contract charges 1,621 12.955864 20,997 Highest contract charges 3,416 12.591905 43,018 Remaining contract charges 66,334 -- 800,943 2006 Lowest contract charges 2,283 10.024557 22,882 Highest contract charges 26,968 11.920245 321,464 Remaining contract charges 53,939 -- 603,388 2005 Lowest contract charges 2,283 9.482120 21,644 Highest contract charges 52,952 11.348752 600,939 Remaining contract charges 73,889 -- 800,988 2004 Lowest contract charges 3,886 10.588346 41,143 Highest contract charges 52,646 10.469597 551,177 Remaining contract charges 70,796 -- 704,529 2003 Lowest contract charges 3,245 10.039523 32,577 Highest contract charges 48,309 9.966707 481,479 Remaining contract charges 63,912 -- 600,366 INTERNATIONAL GROWTH EQUITY FUND 2007 Lowest contract charges 713 13.181607 9,396 Highest contract charges 1,495 13.082745 19,562 Remaining contract charges 2,617 -- 34,321 U.S. MID CAP VALUE 2007 Lowest contract charges 996 13.831448 13,778 Highest contract charges 788 12.062939 9,507 Remaining contract charges 1,374 -- 18,216 2006 Lowest contract charges 59 11.473975 679 Highest contract charges 776 11.444937 8,880 Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- --------------------------------------------------- BLACKROCK GLOBAL GROWTH V.I. FUND 2007 Lowest contract charges 1.65% 1.03% 34.65% Highest contract charges 2.04% 1.09% 34.11% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.63% 1.58% 20.02% Highest contract charges 2.05% 0.96% 19.54% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.74% 1.25% 13.07% Highest contract charges 2.04% 1.25% 12.73% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.75% 1.66% 13.22% Highest contract charges 2.05% 1.66% 12.89% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.75% 1.09% 31.24% Highest contract charges 2.02% 2.05% 30.85% Remaining contract charges -- -- -- BLACKROCK LARGE CAP GROWTH V.I. FUND 2007 Lowest contract charges 1.65% 0.29% 6.61% Highest contract charges 2.07% 2.49% 6.08% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 0.29% 5.72% Highest contract charges 2.06% 0.19% 5.04% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.38% 0.35% 9.10% Highest contract charges 2.04% 0.19% 8.40% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.65% 0.28% 5.47% Highest contract charges 2.05% 0.25% 5.05% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.64% 0.77% 32.54% Highest contract charges 2.04% 0.95% 32.02% Remaining contract charges -- -- -- INTERNATIONAL GROWTH EQUITY FUND 2007 Lowest contract charges 1.30% 0.58% 12.73% Highest contract charges 1.84% 0.20% 12.17% Remaining contract charges -- -- -- U.S. MID CAP VALUE 2007 Lowest contract charges 1.34% 1.00% 6.30% Highest contract charges 2.19% 0.58% 5.40% Remaining contract charges -- -- -- 2006 Lowest contract charges 0.62% -- 15.97% Highest contract charges 1.10% -- 15.75% Remaining contract charges -- -- --
SA-179 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ---------------------------------------------------------------------------- CAPITAL OPPORTUNITIES 2007 Lowest contract charges 3,976 $5.422083 $21,556 Highest contract charges 9,263 5.185166 48,030 Remaining contract charges 23,256 -- 123,606 2006 Lowest contract charges 2,101 4.615129 9,694 Highest contract charges 1,421 4.579776 6,510 Remaining contract charges -- -- -- DEVELOPING GROWTH 2007 Lowest contract charges 870 11.462786 9,971 Highest contract charges 181 11.365645 2,056 Remaining contract charges -- -- -- 2006 Lowest contract charges 688 9.473026 6,516 Highest contract charges -- -- -- Remaining contract charges -- -- -- FLEXIBLE INCOME 2007 Lowest contract charges 7,310 11.866969 86,756 Highest contract charges 663 11.835112 7,844 Remaining contract charges -- -- -- 2006 Lowest contract charges 1,300 11.640579 15,128 Highest contract charges -- -- -- Remaining contract charges -- -- -- DIVIDEND GROWTH 2007 Lowest contract charges 604 12.876060 7,783 Highest contract charges -- -- -- Remaining contract charges -- -- -- GLOBAL EQUITY 2007 Lowest contract charges 674 12.383314 8,341 Highest contract charges -- -- -- Remaining contract charges -- -- -- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND VS 2007 Lowest contract charges 2,912,089 2.115341 6,160,062 Highest contract charges 873,698 2.019711 1,764,618 Remaining contract charges 14,633,001 -- 30,114,290 2006 Lowest contract charges 3,491,387 1.797836 6,276,941 Highest contract charges 993,268 1.730327 1,718,678 Remaining contract charges 18,389,737 -- 32,312,468 2005 Lowest contract charges 4,149,631 1.484030 6,158,177 Highest contract charges 1,049,724 1.439763 1,511,354 Remaining contract charges 21,703,017 -- 31,608,105 2004 Lowest contract charges 3,457,927 1.262880 4,366,946 Highest contract charges 854,670 1.235040 1,055,552 Remaining contract charges 19,955,338 -- 24,837,751 2003 Lowest contract charges 1,602,744 1.101687 1,765,723 Highest contract charges 555,440 1.086053 603,237 Remaining contract charges 11,702,492 -- 12,769,749 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- --------------------------------------------------- CAPITAL OPPORTUNITIES 2007 Lowest contract charges 1.34% -- 17.49% Highest contract charges 2.48% -- 16.14% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% -- 13.36% Highest contract charges 1.69% -- 13.21% Remaining contract charges -- -- -- DEVELOPING GROWTH 2007 Lowest contract charges 1.35% 0.14% 21.00% Highest contract charges 1.63% 0.17% 20.64% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.36% -- 15.63% Highest contract charges -- -- -- Remaining contract charges -- -- -- FLEXIBLE INCOME 2007 Lowest contract charges 1.64% 6.37% 1.95% Highest contract charges 1.68% 6.13% 1.89% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.62% 5.29% 3.07% Highest contract charges -- -- -- Remaining contract charges -- -- -- DIVIDEND GROWTH 2007 Lowest contract charges 1.69% 1.09% 2.20% Highest contract charges -- -- -- Remaining contract charges -- -- -- GLOBAL EQUITY 2007 Lowest contract charges 1.69% 0.44% 14.19% Highest contract charges -- -- -- Remaining contract charges -- -- -- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND VS 2007 Lowest contract charges 1.70% 0.11% 17.66% Highest contract charges 2.49% 0.11% 16.72% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.70% 0.28% 21.15% Highest contract charges 2.50% 0.29% 20.18% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.69% 0.09% 17.51% Highest contract charges 2.49% 0.10% 16.58% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.69% 0.43% 14.63% Highest contract charges 2.48% 0.56% 13.72% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.69% 0.02% 37.89% Highest contract charges 2.39% 0.02% 36.93% Remaining contract charges -- -- --
SA-180 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ---------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND VS 2007 Lowest contract charges 3,326,528 $1.575227 $5,240,036 Highest contract charges 3,018 1.501025 4,531 Remaining contract charges 12,101,919 -- 18,543,906 2006 Lowest contract charges 4,010,585 1.573202 6,309,462 Highest contract charges 545,774 1.514137 826,376 Remaining contract charges 14,106,120 -- 21,700,575 2005 Lowest contract charges 4,503,330 1.438402 6,477,599 Highest contract charges 477,309 1.395509 666,089 Remaining contract charges 16,754,788 -- 23,665,261 2004 Lowest contract charges 5,147,879 1.432207 7,372,828 Highest contract charges 350,579 1.400647 491,038 Remaining contract charges 17,707,468 -- 25,007,663 2003 Lowest contract charges 4,603,496 1.307637 6,019,702 Highest contract charges 130,441 1.289080 168,149 Remaining contract charges 12,315,796 -- 15,954,250 COLUMBIA MARSICO FOCUSED EQUITIES FUND VS 2007 Lowest contract charges 4,705,021 1.400168 6,587,820 Highest contract charges 18,947 1.334152 25,278 Remaining contract charges 15,914,822 -- 21,692,242 2006 Lowest contract charges 5,334,158 1.253960 6,688,822 Highest contract charges 408,968 1.206847 493,562 Remaining contract charges 18,913,557 -- 23,199,182 2005 Lowest contract charges 6,477,361 1.178027 7,630,506 Highest contract charges 419,957 1.142878 479,959 Remaining contract charges 22,278,564 -- 25,776,431 2004 Lowest contract charges 6,613,404 1.086242 7,183,756 Highest contract charges 373,554 1.062295 396,824 Remaining contract charges 22,415,920 -- 24,015,948 2003 Lowest contract charges 5,613,869 0.992283 5,570,547 Highest contract charges 545,976 0.978202 534,075 Remaining contract charges 16,934,011 -- 16,647,023 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- --------------------------------------------------- COLUMBIA HIGH YIELD FUND VS 2007 Lowest contract charges 1.70% 4.99% 0.13% Highest contract charges 2.24% -- (0.72)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.70% 2.50% 9.37% Highest contract charges 2.50% 2.68% 8.50% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.70% 0.16% 0.43% Highest contract charges 2.49% 0.18% 0.37% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.70% 6.57% 9.53% Highest contract charges 2.47% 12.71% 8.66% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.69% 7.56% 28.99% Highest contract charges 2.39% 7.62% 28.10% Remaining contract charges -- -- -- COLUMBIA MARSICO FOCUSED EQUITIES FUND VS 2007 Lowest contract charges 1.70% 0.12% 11.66% Highest contract charges 2.23% -- 10.72% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.70% -- 6.45% Highest contract charges 2.50% -- 5.60% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.69% -- 8.45% Highest contract charges 2.49% -- 7.59% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.70% -- 9.47% Highest contract charges 2.48% -- 8.60% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.69% -- 30.86% Highest contract charges 2.38% -- 29.95% Remaining contract charges -- -- --
SA-181 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ---------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND VS 2007 Lowest contract charges 3,113,073 $1.336980 $4,162,117 Highest contract charges 807,292 1.276468 1,030,483 Remaining contract charges 15,164,528 -- 19,732,999 2006 Lowest contract charges 3,807,635 1.157582 4,407,652 Highest contract charges 840,103 1.114060 935,925 Remaining contract charges 19,282,089 -- 21,821,779 2005 Lowest contract charges 4,255,572 1.109812 4,722,885 Highest contract charges 833,330 1.076669 897,221 Remaining contract charges 22,445,598 -- 24,457,423 2004 Lowest contract charges 4,462,849 1.050589 4,688,621 Highest contract charges 408,188 1.027402 419,373 Remaining contract charges 21,313,110 -- 22,074,902 2003 Lowest contract charges 2,992,263 0.945372 2,828,801 Highest contract charges 438,428 0.931930 408,584 Remaining contract charges 9,225,261 -- 8,640,642 COLUMBIA MARSICO 21ST CENTURY FUND VS 2007 Lowest contract charges 1,002,544 2.032516 2,037,686 Highest contract charges 283,373 1.940597 549,913 Remaining contract charges 3,361,216 -- 6,652,353 2006 Lowest contract charges 1,096,576 1.733100 1,900,474 Highest contract charges 223,075 1.668003 372,090 Remaining contract charges 3,593,601 -- 6,093,317 2005 Lowest contract charges 1,184,692 1.472145 1,744,039 Highest contract charges 217,214 1.428223 310,230 Remaining contract charges 3,667,521 -- 5,301,096 2004 Lowest contract charges 1,203,123 1.387941 1,669,862 Highest contract charges 89,641 1.357351 121,675 Remaining contract charges 2,540,812 -- 3,476,569 2003 Lowest contract charges 839,001 1.153813 968,050 Highest contract charges 192,940 1.137441 219,458 Remaining contract charges 1,228,319 -- 1,405,518 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------- --------------------------------------------------- COLUMBIA MARSICO GROWTH FUND VS 2007 Lowest contract charges 1.70% 0.08% 15.50% Highest contract charges 2.49% 0.08% 14.58% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.70% -- 4.30% Highest contract charges 2.50% -- 3.47% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.70% -- 5.64% Highest contract charges 2.48% -- 4.80% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.70% -- 11.13% Highest contract charges 2.48% -- 10.25% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.70% -- 28.39% Highest contract charges 2.40% -- 27.49% Remaining contract charges -- -- -- COLUMBIA MARSICO 21ST CENTURY FUND VS 2007 Lowest contract charges 1.70% 0.50% 17.28% Highest contract charges 2.49% 0.53% 16.34% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.70% 0.18% 17.73% Highest contract charges 2.50% 0.18% 16.79% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.70% -- 6.07% Highest contract charges 2.48% -- 5.22% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.70% -- 20.29% Highest contract charges 2.43% -- 19.33% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.70% -- 46.36% Highest contract charges 2.38% -- 45.34% Remaining contract charges -- -- --
SA-182 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------------------- COLUMBIA MARSICO MIDCAP GROWTH FUND VS 2007 Lowest contract charges 4,698,220 $1.073257 $5,042,397 Highest contract charges 22,269 1.022650 22,773 Remaining contract charges 26,047,921 -- 27,178,824 2006 Lowest contract charges 5,996,410 0.910638 5,460,558 Highest contract charges 1,594,421 0.876416 1,397,376 Remaining contract charges 30,680,599 -- 27,311,443 2005 Lowest contract charges 6,959,737 0.787041 5,477,598 Highest contract charges 1,679,899 0.763540 1,282,670 Remaining contract charges 36,877,154 -- 28,485,292 2004 Lowest contract charges 7,035,039 0.761027 5,353,852 Highest contract charges 1,196,727 0.744232 890,643 Remaining contract charges 34,397,556 -- 25,803,885 2003 Lowest contract charges 5,009,832 0.678494 3,399,141 Highest contract charges 894,178 0.668854 598,075 Remaining contract charges 21,339,664 -- 14,341,642 JPMORGAN INSURANCE TRUST BALANCED PORTFOLIO - 1 2007 Lowest contract charges 39,088 12.039706 470,609 Highest contract charges 83,705 11.815996 989,054 Remaining contract charges 24,032 -- 287,226 2006 Lowest contract charges 28,417 11.497963 326,732 Highest contract charges 93,311 11.340863 1,058,230 Remaining contract charges 22,887 -- 261,871 2005 Lowest contract charges 27,233 10.501235 285,976 Highest contract charges 107,199 10.409670 1,115,902 Remaining contract charges 14,350 -- 150,252 2004 Lowest contract charges 24,275 10.384343 252,078 Highest contract charges 65,371 10.345397 676,286 Remaining contract charges 1,017 -- 10,552 JPMORGAN INSURANCE TRUST CORE BOND PORTFOLIO - 1 2007 Lowest contract charges 2,381,632 10.917888 26,002,390 Highest contract charges 232,127 10.595114 2,459,413 Remaining contract charges 2,523,618 -- 28,170,831 2006 Lowest contract charges 1,524,302 10.409823 15,867,716 Highest contract charges 169,434 10.183203 1,725,377 Remaining contract charges 2,066,303 -- 21,997,974 2005 Lowest contract charges 823,980 10.132437 8,348,927 Highest contract charges 99,284 9.991450 991,991 Remaining contract charges 1,499,287 -- 15,534,711 2004 Lowest contract charges 187,591 10.030484 1,881,624 Highest contract charges 27,585 9.970362 275,031 Remaining contract charges 375,404 -- 3,819,516 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------------- ------------------------------------------------------ COLUMBIA MARSICO MIDCAP GROWTH FUND VS 2007 Lowest contract charges 1.70% 0.11% 17.86% Highest contract charges 2.23% -- 16.86% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.70% -- 15.70% Highest contract charges 2.50% -- 14.78% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.70% -- 3.42% Highest contract charges 2.49% -- 2.59% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.70% -- 12.16% Highest contract charges 2.48% -- 11.27% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.69% -- 25.32% Highest contract charges 2.39% -- 24.45% Remaining contract charges -- -- -- JPMORGAN INSURANCE TRUST BALANCED PORTFOLIO - 1 2007 Lowest contract charges 1.34% 2.88% 4.71% Highest contract charges 1.85% 3.01% 4.19% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 2.53% 9.49% Highest contract charges 1.85% 2.96% 8.95% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.35% 2.71% 1.13% Highest contract charges 1.84% 2.38% 0.62% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.99% -- 3.84% Highest contract charges 1.36% -- 3.45% Remaining contract charges -- -- -- JPMORGAN INSURANCE TRUST CORE BOND PORTFOLIO - 1 2007 Lowest contract charges 1.34% 4.28% 4.88% Highest contract charges 2.14% 4.39% 4.05% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 3.09% 2.74% Highest contract charges 2.15% 3.19% 1.92% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% 2.81% 1.02% Highest contract charges 2.13% 2.21% 0.21% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.99% -- 0.31% Highest contract charges 1.58% -- 0.30% Remaining contract charges -- -- --
SA-183 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST DIVERSIFIED EQUITY PORTFOLIO - 1 2007 Lowest contract charges 384,638 $13.403310 $5,155,416 Highest contract charges 44,133 13.007139 574,044 Remaining contract charges 437,245 -- 6,016,543 2006 Lowest contract charges 317,213 12.300087 3,901,748 Highest contract charges 42,667 12.032363 513,382 Remaining contract charges 431,447 -- 5,457,160 2005 Lowest contract charges 186,991 10.733991 2,007,163 Highest contract charges 24,185 10.584669 255,986 Remaining contract charges 323,483 -- 3,564,796 2004 Lowest contract charges 48,950 10.632360 520,459 Highest contract charges 8,746 10.568653 92,432 Remaining contract charges 85,021 -- 923,035 JPMORGAN INSURANCE TRUST INTREPID MID CAP PORTFOLIO - 1 2007 Lowest contract charges 301,133 14.573924 4,388,690 Highest contract charges 23,787 14.143199 336,431 Remaining contract charges 395,820 -- 5,847,811 2006 Lowest contract charges 143,463 14.360212 2,060,153 Highest contract charges 14,187 14.047695 199,294 Remaining contract charges 247,142 -- 3,626,021 2005 Lowest contract charges 20,859 12.754866 266,058 Highest contract charges 3,465 12.577499 43,586 Remaining contract charges 34,963 -- 451,103 2004 Lowest contract charges 11,242 11.040622 124,120 Highest contract charges 120 10.974483 1,316 Remaining contract charges 5,120 -- 56,315 JPMORGAN INSURANCE TRUST EQUITY INDEX PORTFOLIO - 1 2007 Lowest contract charges 1,479,699 13.080749 19,355,568 Highest contract charges 163,764 12.694071 2,078,832 Remaining contract charges 1,657,711 -- 21,333,059 2006 Lowest contract charges 1,079,426 12.615484 13,617,496 Highest contract charges 140,112 12.340879 1,729,109 Remaining contract charges 1,516,653 -- 18,901,955 2005 Lowest contract charges 634,662 11.078689 7,031,221 Highest contract charges 80,918 10.924560 883,992 Remaining contract charges 1,163,885 -- 12,792,715 2004 Lowest contract charges 160,426 10.750194 17,246,030 Highest contract charges 28,387 10.685771 303,333 Remaining contract charges 303,116 -- 3,247,384 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------------- ------------------------------------------------------ JPMORGAN INSURANCE TRUST DIVERSIFIED EQUITY PORTFOLIO - 1 2007 Lowest contract charges 1.34% 0.98% 8.97% Highest contract charges 2.14% 0.99% 8.10% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 0.72% 14.59% Highest contract charges 2.15% 0.69% 13.68% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% 0.71% 0.96% Highest contract charges 2.13% 0.64% 0.15% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.99% -- 6.32% Highest contract charges 1.57% -- 5.69% Remaining contract charges -- -- -- JPMORGAN INSURANCE TRUST INTREPID MID CAP PORTFOLIO - 1 2007 Lowest contract charges 1.34% 0.51% 1.49% Highest contract charges 2.14% 0.53% 0.68% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.34% 0.17% 12.59% Highest contract charges 2.14% 0.21% 11.69% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% 0.12% 15.53% Highest contract charges 2.12% 0.02% 14.61% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.98% -- 10.41% Highest contract charges 1.52% -- 9.75% Remaining contract charges -- -- -- JPMORGAN INSURANCE TRUST EQUITY INDEX PORTFOLIO - 1 2007 Lowest contract charges 1.34% 1.31% 3.69% Highest contract charges 2.14% 1.34% 2.86% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 1.19% 13.87% Highest contract charges 2.15% 1.18% 12.97% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% 1.03% 3.06% Highest contract charges 2.13% 0.92% 2.24% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.99% -- 7.50% Highest contract charges 1.57% -- 6.86% Remaining contract charges -- -- --
SA-184 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST GOVERNMENT BOND PORTFOLIO - 1 2007 Lowest contract charges 932,741 $11.089679 $10,343,796 Highest contract charges 70,623 10.761819 760,036 Remaining contract charges 1,041,137 -- 11,356,962 2006 Lowest contract charges 609,811 10.457261 6,376,951 Highest contract charges 54,126 10.229605 553,690 Remaining contract charges 855,647 -- 8,837,431 2005 Lowest contract charges 336,907 10.243778 3,451,197 Highest contract charges 30,740 10.101247 310,511 Remaining contract charges 636,529 -- 6,468,917 2004 Lowest contract charges 90,724 10.072294 913,811 Highest contract charges 7,463 10.011926 74,717 Remaining contract charges 174,290 -- 1,749,231 JPMORGAN INSURANCE TRUST INTREPID GROWTH PORTFOLIO - 1 2007 Lowest contract charges 78,056 12.486286 974,629 Highest contract charges 4,440 12.117122 53,802 Remaining contract charges 62,702 -- 823,909 2006 Lowest contract charges 4,520 11.345689 51,280 Highest contract charges 9,047 11.190639 101,238 Remaining contract charges 5,929 -- 99,469 2005 Lowest contract charges 7,343 10.913451 80,141 Highest contract charges 4,051 10.818288 43,820 Remaining contract charges 895 -- 14,477 2004 Lowest contract charges 1,852 10.529602 19,502 Highest contract charges 7,147 10.490110 74,970 Remaining contract charges -- -- -- JPMORGAN INSURANCE TRUST DIVERSIFIED MID CAP GROWTH PORTFOLIO - 1 2007 Lowest contract charges 412,613 14.751510 6,086,670 Highest contract charges 38,548 14.315500 551,835 Remaining contract charges 571,697 -- 8,290,589 2006 Lowest contract charges 347,835 12.753368 4,436,049 Highest contract charges 36,793 12.475767 459,020 Remaining contract charges 580,988 -- 7,316,073 2005 Lowest contract charges 212,798 11.604997 2,469,519 Highest contract charges 24,255 11.443567 277,564 Remaining contract charges 408,414 -- 4,700,749 2004 Lowest contract charges 62,277 10.588191 659,405 Highest contract charges 6,699 10.524737 70,500 Remaining contract charges 103,047 -- 1,087,224 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------------- ------------------------------------------------------ JPMORGAN INSURANCE TRUST GOVERNMENT BOND PORTFOLIO - 1 2007 Lowest contract charges 1.34% 4.65% 6.05% Highest contract charges 2.14% 4.79% 5.20% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 4.27% 2.08% Highest contract charges 2.15% 4.29% 1.27% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% 3.54% 1.70% Highest contract charges 2.12% 2.33% 0.89% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.99% -- 0.72% Highest contract charges 1.58% -- 0.12% Remaining contract charges -- -- -- JPMORGAN INSURANCE TRUST INTREPID GROWTH PORTFOLIO - 1 2007 Lowest contract charges 1.33% 0.06% 10.05% Highest contract charges 2.09% -- 9.18% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 0.08% 3.96% Highest contract charges 1.85% 0.05% 3.44% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.33% 0.24% 3.65% Highest contract charges 1.85% 0.61% 3.13% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.01% -- 5.30% Highest contract charges 1.33% -- 4.90% Remaining contract charges -- -- -- JPMORGAN INSURANCE TRUST DIVERSIFIED MID CAP GROWTH PORTFOLIO - 1 2007 Lowest contract charges 1.34% -- 15.67% Highest contract charges 2.14% -- 14.75% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% -- 9.90% Highest contract charges 2.15% -- 9.02% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% -- 9.60% Highest contract charges 2.12% -- 8.73% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.99% -- 5.88% Highest contract charges 1.57% -- 5.25% Remaining contract charges -- -- --
SA-185 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------------------- JPMORGAN INSURANCE TRUST DIVERSIFIED MID CAP VALUE PORTFOLIO - 1 2007 Lowest contract charges 309,617 $13.605633 $4,212,537 Highest contract charges 31,132 13.203462 411,049 Remaining contract charges 435,693 -- 6,062,916 2006 Lowest contract charges 290,672 13.665218 3,972,101 Highest contract charges 32,728 13.367802 437,506 Remaining contract charges 473,057 -- 6,628,643 2005 Lowest contract charges 237,454 11.866729 2,817,808 Highest contract charges 31,840 11.701685 372,585 Remaining contract charges 403,128 -- 4,908,479 2004 Lowest contract charges 62,019 10.959001 679,670 Highest contract charges 6,759 10.893345 73,631 Remaining contract charges 80,392 -- 896,873 JENNISON 20/20 FOCUS PORTFOLIO 2007 Lowest contract charges 3,510 15.325556 53,795 Highest contract charges 10,055 1.490377 14,986 Remaining contract charges 85,410 -- 308,899 2006 Lowest contract charges 4,677 14.113382 66,009 Highest contract charges 10,055 1.382824 13,905 Remaining contract charges 88,898 -- 231,503 2005 Lowest contract charges 8,468 12.597739 106,673 Highest contract charges 37,495 1.249990 46,869 Remaining contract charges 39,351 -- 150,522 2004 Lowest contract charges 6,762 10.535427 71,240 Highest contract charges 37,505 1.051640 39,442 Remaining contract charges 46,117 -- 141,002 2003 Lowest contract charges 7,524 9.259937 69,670 Highest contract charges 64,737 0.929884 60,198 Remaining contract charges 62,197 -- 140,203 JENNISON PORTFOLIO 2007 Lowest contract charges 28,165 7.256419 204,374 Highest contract charges 19,973 0.975858 19,491 Remaining contract charges 283,609 -- 420,112 2006 Lowest contract charges 31,922 6.596442 210,568 Highest contract charges 23,017 0.895571 20,613 Remaining contract charges 327,322 -- 489,380 2005 Lowest contract charges 32,822 6.599289 216,602 Highest contract charges 24,037 0.904505 21,741 Remaining contract charges 343,605 -- 521,472 2004 Lowest contract charges 35,011 5.869216 205,483 Highest contract charges 25,090 0.812119 20,376 Remaining contract charges 373,387 -- 504,637 2003 Lowest contract charges 36,291 5.449584 197,771 Highest contract charges 26,405 0.761248 20,101 Remaining contract charges 483,061 -- 572,304 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------------- ------------------------------------------------------ JPMORGAN INSURANCE TRUST DIVERSIFIED MID CAP VALUE PORTFOLIO - 1 2007 Lowest contract charges 1.35% 1.81% (0.44)% Highest contract charges 2.14% 1.85% (1.23)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 0.75% 15.16% Highest contract charges 2.15% 0.76% 14.24% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% 0.49% 8.28% Highest contract charges 2.12% 0.32% 7.42% Remaining contract charges -- -- -- 2004 Lowest contract charges 0.99% -- 9.59% Highest contract charges 1.57% -- 8.93% Remaining contract charges -- -- -- JENNISON 20/20 FOCUS PORTFOLIO 2007 Lowest contract charges 1.40% 0.12% 8.59% Highest contract charges 2.14% 0.12% 7.78% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% -- 12.03% Highest contract charges 2.12% -- 11.19% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.39% -- 19.58% Highest contract charges 1.99% -- 18.86% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% -- 13.77% Highest contract charges 2.00% -- 13.09% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% -- 27.01% Highest contract charges 2.00% -- 26.25% Remaining contract charges -- -- -- JENNISON PORTFOLIO 2007 Lowest contract charges 1.40% -- 10.01% Highest contract charges 2.34% -- 8.97% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% -- (0.04)% Highest contract charges 2.35% -- (0.99)% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% -- 12.44% Highest contract charges 2.34% -- 11.38% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 0.04% 7.70% Highest contract charges 2.35% 0.04% 6.68% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% -- 27.81% Highest contract charges 2.32% -- 26.60% Remaining contract charges -- -- --
SA-186 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------------------- PRUDENTIAL VALUE PORTFOLIO 2007 Lowest contract charges 32,753 $1.418866 $46,472 Highest contract charges 10,690 1.352184 14,455 Remaining contract charges 138,778 -- 192,000 2006 Lowest contract charges 32,999 1.399343 46,175 Highest contract charges 10,690 1.343621 14,363 Remaining contract charges 134,247 -- 183,707 2005 Lowest contract charges 48,722 1.188242 57,893 Highest contract charges 6,461 1.149511 7,426 Remaining contract charges 178,327 -- 207,993 2004 Lowest contract charges 47,799 1.036859 49,561 Highest contract charges 6,461 1.010609 6,529 Remaining contract charges 186,586 -- 190,690 2003 Lowest contract charges 35,362 0.907749 32,100 Highest contract charges 6,461 0.891419 5,759 Remaining contract charges 200,740 -- 180,331 PRUDENTIAL SERIES INTERNATIONAL GROWTH 2007 Lowest contract charges 2,028 1.408201 2,855 Highest contract charges 4,415 1.375730 6,074 Remaining contract charges -- -- -- 2006 Lowest contract charges 2,040 1.198770 2,446 Highest contract charges 4,418 1.175236 5,192 Remaining contract charges 14,560 -- 17,306 2005 Lowest contract charges 2,055 1.008958 2,073 Highest contract charges 4,421 0.992620 4,389 Remaining contract charges 6,781 -- 6,794 2004 Lowest contract charges 2,071 0.883610 1,831 Highest contract charges 4,425 0.872343 3,860 Remaining contract charges -- -- -- 2003 Lowest contract charges 2,090 0.771651 1,613 Highest contract charges 4,429 0.764467 3,386 Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------------- ------------------------------------------------------ PRUDENTIAL VALUE PORTFOLIO 2007 Lowest contract charges 1.40% 1.02% 1.40% Highest contract charges 2.14% 1.01% 0.64% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.41% 0.97% 17.77% Highest contract charges 2.14% 1.14% 16.89% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.39% 0.87% 14.60% Highest contract charges 2.14% 0.86% 13.74% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 0.95% 14.22% Highest contract charges 2.15% 0.96% 13.37% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 1.18% 25.86% Highest contract charges 2.13% 3.25% 24.92% Remaining contract charges -- -- -- PRUDENTIAL SERIES INTERNATIONAL GROWTH 2007 Lowest contract charges 1.39% 0.38% 17.47% Highest contract charges 1.75% 0.38% 17.06% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.45% 18.81% Highest contract charges 1.75% 1.45% 18.40% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.39% 0.22% 14.19% Highest contract charges 1.75% 0.22% 13.79% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.38% -- 14.51% Highest contract charges 1.75% -- 14.11% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.39% -- 37.21% Highest contract charges 1.73% -- 36.73% Remaining contract charges -- -- --
SA-187 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE CAPITAL AND INCOME PORTFOLIO 2007 Lowest contract charges 29,134 $10.019402 $291,906 Highest contract charges 94 9.985693 934 Remaining contract charges 5,701 -- 56,988 2006 Lowest contract charges 217,607 1.334751 290,452 Highest contract charges 9,473 1.296582 12,282 Remaining contract charges 44,221 -- 57,718 2005 Lowest contract charges 225,603 1.202497 271,288 Highest contract charges 703 1.173958 826 Remaining contract charges 46,121 -- 54,425 2004 Lowest contract charges 240,282 1.180317 283,609 Highest contract charges 57,913 1.162314 67,313 Remaining contract charges 59,417 -- 69,604 2003 Lowest contract charges 254,571 1.100760 280,222 Highest contract charges 53,793 1.087777 58,515 Remaining contract charges 59,417 -- 65,011 LEGG MASON PARTNERS VARIABLE FUNDAMENTAL VALUE PORTFOLIO 2007 Lowest contract charges 220,928 9.866295 2,179,744 Highest contract charges 4,099 9.829750 40,289 Remaining contract charges 14,445 -- 142,275 2006 Lowest contract charges 1,743,672 1.553472 2,708,746 Highest contract charges 53,339 1.509106 80,495 Remaining contract charges 121,845 -- 186,268 2005 Lowest contract charges 1,999,252 1.333798 2,666,598 Highest contract charges 38,404 1.302192 50,010 Remaining contract charges 141,334 -- 186,018 2004 Lowest contract charges 2,054,471 1.300004 2,670,819 Highest contract charges 63,160 1.280175 80,856 Remaining contract charges 131,905 -- 170,177 2003 Lowest contract charges 2,208,053 1.217162 2,687,558 Highest contract charges 27,102 1.202804 32,599 Remaining contract charges 139,868 -- 169,228 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- LEGG MASON PARTNERS VARIABLE CAPITAL AND INCOME PORTFOLIO 2007 Lowest contract charges 0.94% 1.36% 0.55% Highest contract charges 1.26% 0.79% 0.21% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 2.12% 11.00% Highest contract charges 1.90% 3.39% 10.45% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 1.95% 1.88% Highest contract charges 0.94% 89.76% 1.37% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 1.80% 7.23% Highest contract charges 1.75% 2.00% 6.85% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 1.69% 14.31% Highest contract charges 1.75% 1.82% 13.91% Remaining contract charges -- -- -- LEGG MASON PARTNERS VARIABLE FUNDAMENTAL VALUE PORTFOLIO 2007 Lowest contract charges 1.03% 1.24% (4.33)% Highest contract charges 1.39% 1.00% (4.65)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.29% 16.47% Highest contract charges 1.90% 1.30% 15.89% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 0.87% 2.60% Highest contract charges 1.79% 5.81% 2.09% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 0.54% 6.81% Highest contract charges 1.74% 0.56% 6.43% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 0.26% 37.10% Highest contract charges 1.73% 0.27% 36.63% Remaining contract charges -- -- --
SA-188 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE GLOBAL HIGH YIELD BOND PORTFOLIO 2007 Lowest contract charges 81,278 $1.605919 $130,526 Highest contract charges 5,137 1.564895 8,039 Remaining contract charges -- -- -- 2006 Lowest contract charges 149,388 1.629638 243,449 Highest contract charges 5,140 1.593576 8,191 Remaining contract charges -- -- -- 2005 Lowest contract charges 194,126 1.493640 289,954 Highest contract charges 5,144 1.465714 7,539 Remaining contract charges -- -- -- 2004 Lowest contract charges 182,558 1.459055 266,361 Highest contract charges 26,460 1.436801 38,018 Remaining contract charges -- -- -- 2003 Lowest contract charges 158,461 1.331938 211,060 Highest contract charges 34,320 1.316219 45,172 Remaining contract charges -- -- -- LEGG MASON PARTNERS VARIABLE INVESTORS PORTFOLIO 2007 Lowest contract charges 545,041 1.485115 809,448 Highest contract charges 20,987 1.435434 30,125 Remaining contract charges 34,429 -- 50,520 2006 Lowest contract charges 614,137 1.449498 890,191 Highest contract charges 17,129 1.408038 24,118 Remaining contract charges 35,180 -- 50,457 2005 Lowest contract charges 653,183 1.242971 811,888 Highest contract charges 36,179 1.231762 44,564 Remaining contract charges -- -- -- 2004 Lowest contract charges 650,321 1.183257 769,497 Highest contract charges 38,117 1.174341 44,763 Remaining contract charges -- -- -- 2003 Lowest contract charges 686,965 1.087128 746,819 Highest contract charges 39,881 1.080564 43,094 Remaining contract charges -- -- -- GROWTH AND INCOME 2007 Lowest contract charges 3,924 17.229559 67,607 Highest contract charges 4,968 16.476878 81,850 Remaining contract charges 14,332 -- 242,045 2006 Lowest contract charges 2,394 17.033843 40,772 Highest contract charges 734 16.903161 12,413 Remaining contract charges -- -- -- 2005 Lowest contract charges 10,126 1.170742 11,855 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 10,126 1.135949 11,502 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- LEGG MASON PARTNERS VARIABLE GLOBAL HIGH YIELD BOND PORTFOLIO 2007 Lowest contract charges 1.40% 5.52% (1.46)% Highest contract charges 1.74% 7.21% (1.80)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 4.90% 9.11% Highest contract charges 1.75% 6.00% 8.72% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 6.13% 2.37% Highest contract charges 1.76% 2.08% 2.01% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 6.86% 9.54% Highest contract charges 1.75% 6.52% 9.16% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 6.47% 22.47% Highest contract charges 1.74% 9.32% 22.05% Remaining contract charges -- -- -- LEGG MASON PARTNERS VARIABLE INVESTORS PORTFOLIO 2007 Lowest contract charges 1.40% 1.18% 2.46% Highest contract charges 1.89% 1.27% 1.95% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.40% 1.65% 16.62% Highest contract charges 1.90% 4.40% 16.03% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.40% 1.23% 5.05% Highest contract charges 1.55% 1.20% 4.89% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.40% 1.47% 8.84% Highest contract charges 1.55% 1.48% 8.68% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.40% 1.45% 30.49% Highest contract charges 1.55% 1.36% 30.30% Remaining contract charges -- -- -- GROWTH AND INCOME 2007 Lowest contract charges 1.34% 1.03% 1.15% Highest contract charges 2.48% 0.27% (0.01)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.34% -- 11.24% Highest contract charges 1.68% -- 11.09% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.84% 2.07% 3.06% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 1.82% 3.48% 7.34% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-189 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- COMSTOCK 2007 Lowest contract charges 6,221 $16.364834 $101,813 Highest contract charges 11,199 15.738155 176,247 Remaining contract charges 14,640 -- 234,567 2006 Lowest contract charges 1,914 16.982646 32,506 Highest contract charges 2,522 16.521234 41,673 Remaining contract charges 4,989 -- 83,535 WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND 2007 Lowest contract charges 10,126 1.361298 13,784 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 10,126 1.288809 13,050 Highest contract charges -- -- -- Remaining contract charges -- -- -- WELLS FARGO ADVANTAGE VT TOTAL RETURN BOND FUND 2007 Lowest contract charges 6,897 1.242914 8,573 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 6,897 1.186333 8,183 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 6,897 1.157855 7,986 Highest contract charges -- -- -- Remaining contract charges -- -- -- WELLS FARGO ADVANTAGE VT EQUITY INCOME FUND 2007 Lowest contract charges 14,341 1.424572 20,430 Highest contract charges 7,810 1.384045 10,809 Remaining contract charges -- -- -- 2006 Lowest contract charges 14,341 1.404613 20,143 Highest contract charges 7,970 1.371494 10,930 Remaining contract charges -- -- -- 2005 Lowest contract charges 14,752 1.200923 17,715 Highest contract charges 12,534 1.178478 14,772 Remaining contract charges -- -- -- 2004 Lowest contract charges 6,349 1.139247 7,233 Highest contract charges -- -- -- Remaining contract charges -- -- -- WELLS FARGO ADVANTAGE VT C&B LARGE CAP VALUE FUND 2007 Lowest contract charges 4,939 1.267393 6,260 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- COMSTOCK 2007 Lowest contract charges 1.34% 0.83% (3.64)% Highest contract charges 2.47% 0.44% (4.74)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% -- 11.38% Highest contract charges 2.47% -- 10.90% Remaining contract charges -- -- -- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND 2007 Lowest contract charges 1.84% 2.25% 5.62% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 1.85% 2.32% 10.09% Highest contract charges -- -- -- Remaining contract charges -- -- -- WELLS FARGO ADVANTAGE VT TOTAL RETURN BOND FUND 2007 Lowest contract charges 1.35% 4.57% 4.77% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 4.39% 2.46% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 1.33% 3.78% 0.56% Highest contract charges -- -- -- Remaining contract charges -- -- -- WELLS FARGO ADVANTAGE VT EQUITY INCOME FUND 2007 Lowest contract charges 1.35% 1.52% 1.42% Highest contract charges 1.85% 1.50% 0.92% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 1.56% 16.96% Highest contract charges 1.85% 1.47% 16.38% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.34% 1.70% 3.96% Highest contract charges 1.84% 1.57% 3.44% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.79% 2.36% 9.05% Highest contract charges -- -- -- Remaining contract charges -- -- -- WELLS FARGO ADVANTAGE VT C&B LARGE CAP VALUE FUND 2007 Lowest contract charges 1.60% 3.41% (2.79)% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-190 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY --------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND 2007 Lowest contract charges 7,022 $1.567025 $11,003 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 7,298 1.416803 10,340 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 7,360 1.194669 8,793 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 1,216 1.109528 1,349 Highest contract charges -- -- -- Remaining contract charges -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY GROWTH FUND 2007 Lowest contract charges 7,840 1.103110 8,648 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 7,809 1.044218 8,154 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 6,863 1.039324 7,132 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 1,070 1.001632 1,072 Highest contract charges -- -- -- Remaining contract charges -- -- -- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND 2007 Lowest contract charges 2,411 1.552301 3,743 Highest contract charges 4,212 1.534932 6,464 Remaining contract charges -- -- -- 2006 Lowest contract charges 4,770 1.373834 6,553 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 4,601 1.140072 5,246 Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 764 1.093116 835 Highest contract charges -- -- -- Remaining contract charges -- -- -- INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** ------------------------------- ---------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND 2007 Lowest contract charges 1.84% 0.01% 10.60% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 1.85% 1.69% 18.59% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 1.83% 2.85% 7.67% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 1.72% -- 7.62% Highest contract charges -- -- -- Remaining contract charges -- -- -- WELLS FARGO ADVANTAGE VT LARGE COMPANY GROWTH FUND 2007 Lowest contract charges 1.84% -- 5.64% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2006 Lowest contract charges 1.85% -- 0.47% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 1.83% 0.18% 3.76% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 1.81% -- 1.36% Highest contract charges -- -- -- Remaining contract charges -- -- -- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND 2007 Lowest contract charges 1.60% -- 11.95% Highest contract charges 1.85% -- 11.73% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.85% -- 20.50% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2005 Lowest contract charges 1.82% -- 4.30% Highest contract charges -- -- -- Remaining contract charges -- -- -- 2004 Lowest contract charges 1.71% -- 11.68% Highest contract charges -- -- -- Remaining contract charges -- -- --
SA-191 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------------------- STI CLASSIC VT LARGE CAP GROWTH STOCK FUND 2007 Lowest contract charges 338,213 $1.500630 $507,532 Highest contract charges 23,471 14.244303 334,327 Remaining contract charges 577,763 -- 6,689,262 2006 Lowest contract charges 275,418 1.319453 363,402 Highest contract charges 24,120 12.669242 305,586 Remaining contract charges 577,086 -- 6,495,986 2005 Lowest contract charges 106,832 1.206733 128,918 Highest contract charges 16,411 11.720910 192,352 Remaining contract charges 528,364 -- 5,837,027 2004 Lowest contract charges 22,239 12.334257 274,306 Highest contract charges 2,721 12.126652 32,994 Remaining contract charges 359,349 -- 4,387,702 2003 Lowest contract charges 9,331 11.752110 109,660 Highest contract charges 39,742 11.651033 463,034 Remaining contract charges 179,231 -- 2,095,591 STI CLASSIC VT LARGE CAP CORE EQUITY FUND 2007 Lowest contract charges 14,127 1.791100 25,303 Highest contract charges 7,563 17.109521 129,406 Remaining contract charges 77,451 -- 1,349,343 2006 Lowest contract charges 6,798 1.801290 12,244 Highest contract charges 8,918 17.379730 154,987 Remaining contract charges 99,476 -- 1,752,207 2005 Lowest contract charges 14,729 15.647881 230,482 Highest contract charges 9,192 15.313092 140,753 Remaining contract charges 105,763 -- 1,633,590 2004 Lowest contract charges 14,754 14.598347 215,383 Highest contract charges 21,153 14.379145 304,157 Remaining contract charges 131,768 -- 1,905,742 2003 Lowest contract charges 3,462 12.990742 44,970 Highest contract charges 25,693 12.879095 330,904 Remaining contract charges 128,363 -- 1,658,578 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------------- ------------------------------------------------------ STI CLASSIC VT LARGE CAP GROWTH STOCK FUND 2007 Lowest contract charges 1.34% 0.42% 13.73% Highest contract charges 2.50% 0.43% 12.43% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 0.31% 9.34% Highest contract charges 2.50% 0.30% 8.09% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.32% 0.27% 4.42% Highest contract charges 2.47% 0.17% 3.35% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.70% 0.27% 4.95% Highest contract charges 2.36% 1.51% 4.12% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.68% -- 16.45% Highest contract charges 1.55% -- 13.54% Remaining contract charges -- -- -- STI CLASSIC VT LARGE CAP CORE EQUITY FUND 2007 Lowest contract charges 1.34% 1.20% (0.57)% Highest contract charges 2.34% 1.15% (1.56)% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.34% 1.38% 14.64% Highest contract charges 2.35% 1.26% 13.50% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.69% 0.93% 7.19% Highest contract charges 2.36% 0.90% 6.50% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.69% 0.92% 12.38% Highest contract charges 2.35% 0.78% 11.65% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.64% 1.51% 24.36% Highest contract charges 1.55% 0.76% 22.28% Remaining contract charges -- -- --
SA-192 -------------------------------------------------------------------------------
UNIT CONTRACT SUB-ACCOUNT UNITS FAIR VALUE # OWNERS' EQUITY ----------------------------------------------------------------------------------------- STI CLASSIC VT MID-CAP CORE EQUITY FUND 2007 Lowest contract charges 7,002 $1.886371 $13,208 Highest contract charges 4,756 17.905858 85,151 Remaining contract charges 100,849 -- 1,768,906 2006 Lowest contract charges 5,176 1.817794 9,411 Highest contract charges 4,764 17.454443 83,151 Remaining contract charges 105,207 -- 1,792,667 2005 Lowest contract charges 9,250 16.572461 153,301 Highest contract charges 3,658 16.163856 59,120 Remaining contract charges 96,304 -- 1,573,989 2004 Lowest contract charges 8,960 14.745157 132,091 Highest contract charges 7,001 14.497064 101,495 Remaining contract charges 108,377 -- 1,581,712 2003 Lowest contract charges 4,461 12.838644 57,268 Highest contract charges 14,804 12.728275 188,434 Remaining contract charges 56,454 -- 721,041 STI CLASSIC VT LARGE CAP VALUE EQUITY FUND 2007 Lowest contract charges 318,614 1.861796 593,194 Highest contract charges 12,653 17.672549 223,606 Remaining contract charges 352,413 -- 4,476,195 2006 Lowest contract charges 174,843 1.822311 318,618 Highest contract charges 11,921 17.497735 208,585 Remaining contract charges 256,175 -- 3,821,164 2005 Lowest contract charges 53,603 1.508288 80,849 Highest contract charges 8,136 14.649853 119,189 Remaining contract charges 201,268 -- 2,737,677 2004 Lowest contract charges 6,486 14.725680 95,514 Highest contract charges 1,842 14.477953 26,667 Remaining contract charges 110,424 -- 1,609,878 2003 Lowest contract charges 3,287 12.991193 42,704 Highest contract charges 583 12.879554 7,509 Remaining contract charges 40,914 -- 528,930 INVESTMENT EXPENSE INCOME TOTAL SUB-ACCOUNT RATIO* RATIO** RETURN*** -------------------------------------- ------------------------------------------------------ STI CLASSIC VT MID-CAP CORE EQUITY FUND 2007 Lowest contract charges 1.34% 0.24% 3.77% Highest contract charges 2.49% 0.23% 2.59% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.34% 0.40% 9.23% Highest contract charges 2.50% 0.38% 7.98% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.69% 0.45% 12.39% Highest contract charges 2.51% 0.43% 11.50% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.70% 0.71% 14.85% Highest contract charges 2.48% 0.78% 13.94% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.68% 1.03% 27.54% Highest contract charges 1.55% 0.89% 27.22% Remaining contract charges -- -- -- STI CLASSIC VT LARGE CAP VALUE EQUITY FUND 2007 Lowest contract charges 1.34% 1.63% 2.17% Highest contract charges 2.49% 1.60% 1.00% Remaining contract charges -- -- -- 2006 Lowest contract charges 1.35% 1.55% 20.82% Highest contract charges 2.50% 1.50% 19.44% Remaining contract charges -- -- -- 2005 Lowest contract charges 1.31% 2.07% 4.97% Highest contract charges 2.47% 1.77% 1.19% Remaining contract charges -- -- -- 2004 Lowest contract charges 1.69% 1.62% 13.35% Highest contract charges 2.45% 2.23% 12.45% Remaining contract charges -- -- -- 2003 Lowest contract charges 1.67% 1.69% 21.05% Highest contract charges 1.48% 1.82% 20.78% Remaining contract charges -- -- --
* This represents the annualized contract expenses of the Sub-Account for the year indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the Funds and charges made directly to contract owner accounts through the redemption of units. ** These amounts represent the dividends, excluding distributions of capital gains, received by the Sub-Account from the Fund, net of management fees assessed by the Fund's Manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense risk charges, that result in direct reductions in the unit values. The recognition of investment income by the Sub-Account is affected by the timing of the declaration of dividends by the Fund in which the Sub-Accounts invest. *** This represents the total return for the year indicated and reflects a deduction only for expenses assessed through the daily unit value calculation. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation SA-193 SEPARATE ACCOUNT SEVEN HARTFORD LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2007 ------------------------------------------------------------------------------- indicate the effective date of that investment option in the Account. The total return is calculated for the year indicated or from the effective date through the end of the reporting period. # Rounded unit values Summary of the Account's expense charges, including Mortality and Expense Risk Charges, Administrative Charges,Riders (if applicable) and Annual Maintenance Fees assessed. These fees are either assessed as a direct reduction in unit values or through a redemption of units for all contracts contained within the Account. MORTALITY AND EXPENSE RISK CHARGES: The Company will charge an expense ranging from 0.40% to 1.55% of the contract's value for mortality and expense risks undertaken by the Company. These charges are a reduction in unit values. ADMINISTRATIVE CHARGES: The Company will charge an expense ranging from 0.15% to 0.20% of the contract's value for administrative services provided by the Company. These charges are a reduction in unit values. RIDERS: The Company will charge an expense for various Rider charges, such as MAV/EPB Death Benefit Charge, Principal First Charge, Principal First Preferred Charge, MAV70 Death Benefit Charge, Optional Death Benefit Charge and Earnings Protection Benefit Charge. These charges range from 0.15% to 0.75%. These charges are a reduction in unit values. The Company will charge an expense for Rider charges related to The Hartford's Income Foundation, The Hartford's Lifetime Income Builder, and The Hartford's Lifetime Income Builder II. The Company initially charges 0.30%, 0.40%, and 0.40%, respectively. The Company has the right to increase both the Lifetime Income Builder and Lifetime Income Builder II to a maximum charge of 0.75%. This charge is a redemption of units. ANNUAL MAINTENANCE FEE: An annual maintenance fee in the amount of $30 may be charged to the contract's value each contract year. However, this fee is not applicable to contracts with values of $50,000 or more, as determined on the most recent contract anniversary. These expenses are included in surrenders for benefit payments and fees in the accompanying statements of changes in net assets. These charges are a redemption of units. SA-194 ------------------------------------------------------------------------------- [This page intentionally left blank] SA-195 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholder of Hartford Life Insurance Company Hartford, Connecticut We have audited the accompanying consolidated balance sheets of Hartford Life Insurance Company and its subsidiaries (the "Company") as of December 31, 2007 and 2006, and the related consolidated statements of income, changes in stockholder's equity, and cash flows for each of the three years in the period ended December 31, 2007. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal controls over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Hartford Life Insurance Company and its subsidiaries as of December 31, 2007 and 2006, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2007, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Hartford, Connecticut February 20, 2008 F-1 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 (IN MILLIONS) -------------------------------------------------------------------------------- REVENUES Fee income and other $3,509 $3,113 $2,811 Earned premiums 983 547 449 Net investment income 3,048 2,728 2,569 Net realized capital gains (losses) (934) (299) 75 -------- -------- -------- TOTAL REVENUES 6,606 6,089 5,904 -------- -------- -------- BENEFITS, CLAIMS AND EXPENSES Benefits, loss and loss adjustment expenses 3,980 3,205 3,008 Insurance expenses and other 1,192 853 798 Amortization of deferred policy acquisition costs and present value of future profits 515 1,175 945 Dividends to policyholders 11 22 37 -------- -------- -------- TOTAL BENEFITS, LOSSES AND EXPENSES 5,698 5,255 4,788 -------- -------- -------- Income before income tax expense 908 834 1,116 Income tax expense 168 103 207 -------- -------- -------- NET INCOME $740 $731 $909 -------- -------- --------
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-2 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2007 2006 (IN MILLIONS, EXCEPT FOR SHARE DATA) -------------------------------------------------------------------------------- ASSETS Investments Fixed maturities, available for sale, at fair value (amortized cost of $46,208 and $43,846) $45,611 $44,646 Equity securities, available for sale, at fair value (cost of $763 and $267) 722 275 Equity securities, held for trading, at fair value -- 1 Policy loans, at outstanding balance 2,016 2,009 Mortgage loans on real estate 4,166 2,631 Short-term investments 752 694 Other investments 1,726 1,023 ----------- ----------- TOTAL INVESTMENTS 54,993 51,279 ----------- ----------- Cash 281 186 Premiums receivable and agents' balances 28 29 Reinsurance recoverables 1,730 1,393 Deferred policy acquisition costs and present value of future profits 8,393 7,334 Goodwill 186 186 Other assets 1,348 1,120 Separate account assets 199,253 179,943 ----------- ----------- TOTAL ASSETS $266,212 $241,470 ----------- ----------- LIABILITIES Reserve for future policy benefits $9,396 $8,209 Other policyholder funds 42,377 40,191 Consumer Notes 809 258 Deferred income taxes 124 491 Other liabilities 6,621 4,718 Separate account liabilities 199,253 179,943 ----------- ----------- TOTAL LIABILITIES 258,580 233,810 ----------- ----------- COMMITMENTS AND CONTINGENT LIABILITIES, NOTE 10 -- -- STOCKHOLDER'S EQUITY Common stock -- 1,000 shares authorized, issued and outstanding, par value $5,690 6 6 Capital surplus 2,888 2,586 Accumulated other comprehensive income Net unrealized capital gains on securities, net of tax (469) 290 Foreign currency translation adjustments -- 1 ----------- ----------- TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME (469) 291 ----------- ----------- Retained earnings 5,207 4,777 ----------- ----------- TOTAL STOCKHOLDER'S EQUITY 7,632 7,660 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $266,212 $241,470 ----------- -----------
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-3 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) NET NET (LOSS) UNREALIZED GAIN ON CAPITAL GAINS CASH FLOW FOREIGN COMMON (LOSSES) ON HEDGING CURRENCY STOCK CAPITAL SECURITIES, INSTRUMENTS, TRANSLATION SURPLUS NET OF TAX NET OF TAX ADJUSTMENTS (IN MILLIONS) -------------------------------------------------------------------------------------------------------------------------------- 2007 Balance, December 31, 2006 $6 $2,586 $500 $(210) $1 Comprehensive income Net income Other comprehensive income, net of tax (1) Net change in unrealized capital gains (losses) on securities (2) (832) Net gains on cash flow hedging instruments 73 Cumulative translation adjustments (1) Total other comprehensive income Total comprehensive income Capital contribution from parent 302 Dividends declared Cumulative effect of Accounting Changes, net of tax --- ------ ------ ------ ----- BALANCE, DECEMBER 31, 2007 $6 $2,888 $(332) $(137) $ -- --- ------ ------ ------ ----- 2006 Balance, December 31, 2005 $6 $2,405 $577 $(113) $(1) Comprehensive income Net income Other comprehensive income, net of tax (1) Net change in unrealized capital gains (losses) on securities (2) (77) Net loss on cash flow hedging instruments (97) Cumulative translation adjustments 2 Total other comprehensive income Total comprehensive income Capital contribution from parent 181 Dividends declared --- ------ ------ ------ ----- BALANCE, DECEMBER 31, 2006 $6 $2,586 $500 $(210) $1 --- ------ ------ ------ ----- 2005 Balance, December 31, 2004 $6 $2,240 $1,124 $(184) $(1) Comprehensive income Net income Other comprehensive income, net of tax (1) Net change in unrealized capital gains (losses) on securities (2) (547) Net gains on cash flow hedging instruments 71 Total other comprehensive income Total comprehensive income Capital contribution from parent 165 Dividends declared --- ------ ------ ------ ----- BALANCE, DECEMBER 31, 2005 $6 $2,405 $577 $(113) $(1) --- ------ ------ ------ ----- TOTAL RETAINED STOCKHOLDER'S EARNINGS EQUITY (IN MILLIONS) ---------------------------------- --------------------------------------- 2007 Balance, December 31, 2006 $4,777 $7,660 ------ Comprehensive income Net income 740 740 ------ Other comprehensive income, net of tax (1) Net change in unrealized capital gains (losses) on securities (2) (832) Net gains on cash flow hedging instruments 73 Cumulative translation adjustments (1) ------ Total other comprehensive income (760) ------ Total comprehensive income (20) Capital contribution from parent 302 Dividends declared (307) (307) Cumulative effect of Accounting Changes, net of tax (3) (3) ------ ------ BALANCE, DECEMBER 31, 2007 $5,207 $7,632 ------ ------ 2006 Balance, December 31, 2005 $4,463 $7,337 ------ Comprehensive income Net income 731 731 ------ Other comprehensive income, net of tax (1) Net change in unrealized capital gains (losses) on securities (2) (77) Net loss on cash flow hedging instruments (97) Cumulative translation adjustments 2 ------ Total other comprehensive income (172) ------ Total comprehensive income 559 Capital contribution from parent 181 Dividends declared (417) (417) ------ ------ BALANCE, DECEMBER 31, 2006 $4,777 $7,660 ------ ------ 2005 Balance, December 31, 2004 $4,064 $7,249 ------ Comprehensive income Net income 909 909 ------ Other comprehensive income, net of tax (1) Net change in unrealized capital gains (losses) on securities (2) (547) Net gains on cash flow hedging instruments 71 ------ Total other comprehensive income (476) ------ Total comprehensive income 433 Capital contribution from parent 165 Dividends declared (510) (510) ------ ------ BALANCE, DECEMBER 31, 2005 $4,463 $7,337 ------ ------
(1) Net change in unrealized capital gain on securities is reflected net of tax provision (benefit) and other items of $448, $(42) and $(295) for the years ended December 31, 2007, 2006 and 2005, respectively. Net (loss) gain on cash flow hedging instruments is net of tax provision (benefit) of $(39), $(52) and $38 for the years ended December 31, 2007, 2006 and 2005, respectively. There is no tax effect on cumulative translation adjustments. (2) There were reclassification adjustments for after-tax gains (losses) realized in net income of $(140), $(75), and $26 for the years ended December 31, 2007, 2006 and 2005, respectively. SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-4 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 (IN MILLIONS) -------------------------------------------------------------------------------- OPERATING ACTIVITIES Net income $740 $731 $909 Adjustments to reconcile net income to net cash provided by operating activities Amortization of deferred policy acquisition costs and present value of future profits 515 1,175 945 Additions to deferred policy acquisition costs and present value of future profits (1,400) (1,351) (1,226) Change in: Reserve for future policy benefits, unpaid losses and loss adjustment expenses 1,187 836 129 Reinsurance recoverables (236) (47) 177 Receivables 190 11 (3) Payables and accruals 560 210 385 Accrued and deferred income taxes (102) 340 36 Net realized capital losses (gains) 934 299 (75) Depreciation and amortization 438 404 239 Other, net (267) 157 (228) --------- --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES $2,559 $2,765 $1,288 --------- --------- --------- INVESTING ACTIVITIES Proceeds from the sale/maturity/prepayment of: Fixed Maturities and Short-term Investments, available for sale $15,892 $19,517 $19,727 Equity securities, available-for-sale 296 249 38 Mortgage loans 958 301 354 Partnerships 175 91 169 Payments for the purchase of: Fixed Maturities and Short-term Investments, available for sale (18,780) (22,017) (21,511) Equity securities, available-for-sale (484) (455) (60) Mortgage loans (2,492) (1,574) (915) Partnerships (607) (496) (337) Change in policy loans, net (6) (39) 647 Change in payables for collateral under securities lending, net 1,306 788 (276) Change in all other, net (587) (713) (193) --------- --------- --------- NET CASH USED FOR INVESTING ACTIVITIES $(4,329) $(4,348) $(2,357) --------- --------- --------- FINANCING ACTIVITIES Deposits and other additions to investment and universal life-type contracts 32,396 26,991 25,383 Withdrawals and other deductions from investment and universal life-type contracts (30,433) (26,687) (24,888) Net transfers (to)/from separate accounts related to investment and universal life-type contracts (606) 1,382 852 Capital contributions 270 -- 129 Dividends paid $(305) $(300) $(498) Proceeds from issuance of consumer notes 551 258 -- --------- --------- --------- NET CASH PROVIDED BY FINANCING ACTIVITIES $1,873 $1,644 $978 --------- --------- --------- Impact of foreign exchange (8) 1 (1) Net (decrease) increase in cash 95 62 (92) Cash -- beginning of year 186 124 216 --------- --------- --------- Cash -- end of year $281 $186 $124 --------- --------- --------- Supplemental Disclosure of Cash Flow Information: Net Cash Paid During the Year for: Income taxes $125 $(163) $149
F-5 SUPPLEMENTAL SCHEDULE OF NONCASH OPERATING AND FINANCING ACTIVITIES: THE COMPANY RECAPTURED AN INDEMNITY REINSURANCE ARRANGEMENT WITH HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY IN 2005. IN CONJUNCTION WITH THIS TRANSACTION, THE COMPANY RECORDED A NONCASH CAPITAL CONTRIBUTION OF $36 AND A RELATED EXTINGUISHMENT OF THE REINSURANCE RECOVERABLE LIABILITY. THE COMPANY MADE NONCASH DIVIDENDS OF $2 AND RECEIVED A NONCASH CAPITAL CONTRIBUTIONS OF $20 FROM ITS PARENT COMPANY DURING 2007 RELATED TO THE GUARANTEED MINIMUM INCOME AND ACCUMULATION BENEFIT REINSURANCE AGREEMENTS WITH HARTFORD LIFE INSURANCE K.K. THE COMPANY MADE NONCASH DIVIDENDS OF $117 AND RECEIVED A NONCASH CAPITAL CONTRIBUTIONS OF $154 FROM ITS PARENT COMPANY DURING 2006 RELATED TO THE GUARANTEED MINIMUM INCOME BENEFIT REINSURANCE AGREEMENT WITH HARTFORD LIFE INSURANCE K.K. SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-6 HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLAR AMOUNTS IN MILLIONS, UNLESS OTHERWISE STATED) -------------------------------------------------------------------------------- 1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES BASIS OF PRESENTATION These consolidated financial statements include Hartford Life Insurance Company and its wholly-owned subsidiaries (collectively, "Hartford Life Insurance Company" or the "Company"), Hartford Life and Annuity Insurance Company ("HLAI") and Hartford International Life Reassurance Corporation ("HLRe"). The Company is a wholly-owned subsidiary of Hartford Life and Accident Insurance Company ("HLA"), which is a wholly-owned subsidiary of Hartford Life, Inc. ("Hartford Life"). Hartford Life is a direct wholly-owned subsidiary of Hartford Holdings, Inc., a direct wholly-owned subsidiary of The Hartford Financial Services Group, Inc. ("The Hartford"), the Company's ultimate parent company. Along with its parent, HLA, the Company is a financial services and insurance group which provides (a) investment products, such as individual variable annuities and fixed market value adjusted annuities and retirement plan services; (b) individual life insurance; (c) group benefits products such as group life and group disability insurance that is directly written by the Company and is substantially ceded to its parent, HLA, (d) private placement life insurance and (e) assumes fixed market value adjusted annuities, guaranteed minimum income benefits ("GMIB"), guaranteed minimum accumulation benefits ("GMAB") and guaranteed minimum death benefits ("GMDB") from Hartford Life's international operations. The consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the United States of America ("U.S. GAAP"), which differ materially from the accounting practices prescribed by various insurance regulatory authorities. CONSOLIDATION The consolidated financial statements include the accounts of Hartford Life Insurance Company in which the Company directly or indirectly has a controlling financial interest and those variable interest entities ("VIE") in which the Company is the primary beneficiary. The Company determines if it is the primary beneficiary using both qualitative and quantitative analyses. Entities in which Hartford Life Insurance Company does not have a controlling financial interest but in which the Company has significant influence over the operating and financing decisions are reported using the equity method. All material intercompany transactions and balances between Hartford Life Insurance Company and its subsidiaries and affiliates have been eliminated. For further discussions on variable interest entities see Note 3. USE OF ESTIMATES The preparation of financial statements, in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining estimated gross profits used in the valuation and amortization of assets and liabilities associated with variable annuity and other universal life-type contracts; the evaluation of other-than-temporary impairments on investments in available-for-sale securities; living benefits required to be fair valued; and contingencies relating to corporate litigation and regulatory matters. RECLASSIFICATIONS Certain reclassifications have been made to prior year financial information to conform to the current year presentation. ADOPTION OF NEW ACCOUNTING STANDARDS ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, AN INTERPRETATION OF FASB STATEMENT NO. 109 The Financial Accounting Standards Board ("FASB") issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109" ("FIN 48"), dated June 2006. FIN 48 requires companies to recognize the tax benefit of an uncertain tax position only when the position is "more likely than not" to be sustained assuming examination by tax authorities. The amount recognized represents the largest amount of tax benefit that is greater than 50% likely of being realized. A liability is recognized for any benefit claimed, or expected to be claimed, in a tax return in excess of the benefit recorded in the financial statements, along with any interest and penalty (if applicable) on the excess. The Company adopted the provisions of FIN 48 on January 1, 2007. As a result of the adoption, the Company recognized an $11 decrease in the liability for unrecognized tax benefits and a corresponding increase in the January 1, 2007 balance of retained earnings. The Company had no unrecognized tax benefits as of January 1, 2007. The Company does not believe it would be subject to any penalties in any open tax years and, therefore, has not booked any such amounts. The Company classifies interest and penalties (if applicable) as income tax expense in the financial statements. F-7 AMENDMENT OF FASB INTERPRETATION NO. 39 In April 2007, the FASB issued FASB Staff Position No. FIN 39-1, "Amendment of FASB Interpretation No. 39" ("FSP FIN 39-1"). FSP FIN 39-1 amends FIN 39, "Offsetting of Amounts Related to Certain Contacts", by permitting a reporting entity to offset fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement that have been offset in the statement of financial position in accordance with FIN 39. FSP FIN 39-1 also amends FIN 39 by modifying certain terms. FSP FIN 39-1 is effective for reporting periods beginning after November 15, 2007, with early application permitted. The Company early adopted FSP FIN 39-1 on December 31, 2007, by electing to offset cash collateral against amounts recognized for derivative instruments under master netting arrangements. The effect of applying FSP FIN 39-1 is recorded as a change in accounting principle through retrospective application. The effect on the consolidated balance sheet as of December 31, 2006 was a decrease of $171 in the derivative payable included in other liabilities, and corresponding decrease of $1 and $170, respectively, in other investments and derivative receivable included in other assets. See Note 4 for further discussions on the adoption of FSP FIN 39-1. ACCOUNTING FOR CERTAIN HYBRID FINANCIAL INSTRUMENTS -- AN AMENDMENT OF FASB STATEMENTS NO. 133 AND 140 In February 2006, the FASB issued Statement of Financial Accounting Standard ("SFAS") No. 155, "Accounting for Certain Hybrid Financial Instruments -- an amendment of FASB Statements No. 133 and 140" ("SFAS 155"). This statement amends SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133"), and SFAS No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities" and resolves issues addressed in SFAS 133 Implementation Issue No. D1, "Application of Statement 133 to Beneficial Interests in Securitized Financial Assets". SFAS 155: (a) permits fair value remeasurement for any hybrid financial instrument (asset or liability) that contains an embedded derivative that otherwise would require bifurcation; (b) clarifies which interest-only strips and principal-only strips are not subject to the requirements of SFAS 133; (c) establishes a requirement to evaluate beneficial interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; (d) clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and, (e) eliminates restrictions on a qualifying special-purpose entity's ability to hold passive derivative financial instruments that pertain to beneficial interests that are or contain a derivative financial instrument. SFAS 155 also requires presentation within the financial statements that identifies those hybrid financial instruments for which the fair value election has been applied and information on the income statement impact of the changes in fair value of those instruments. The Company began applying SFAS 155 to all financial instruments acquired, issued or subject to a remeasurement event beginning January 1, 2007. SFAS 155 did not have an effect on the Company's consolidated financial condition and results of operations upon adoption on January 1, 2007. ACCOUNTING BY INSURANCE ENTERPRISES FOR DEFERRED ACQUISITION COSTS ("DAC") IN CONNECTION WITH MODIFICATIONS OR EXCHANGES OF INSURANCE CONTRACTS In September 2005, the American Institute of Certified Public Accountants ("AICPA") issued Statement of Position 05-1, "Accounting by Insurance Enterprises for Deferred Acquisition Costs ("DAC") in Connection with Modifications or Exchanges of Insurance Contracts", ("SOP 05-1"). SOP 05-1 provides guidance on accounting by insurance enterprises for DAC on internal replacements of insurance and investment contracts. An internal replacement is a modification in product benefits, features, rights or coverages that occurs by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. Modifications that result in a replacement contract that is substantially changed from the replaced contract should be accounted for as an extinguishment of the replaced contract. Unamortized DAC, unearned revenue liabilities and deferred sales inducements from the replaced contract must be written-off. Modifications that result in a contract that is substantially unchanged from the replaced contract should be accounted for as a continuation of the replaced contract. The Company adopted SOP 05-1 on January 1, 2007 and recognized the cumulative effect of the adoption of SOP 05-1 as a reduction in retained earnings of $14, after-tax. THE MEANING OF OTHER-THAN-TEMPORARY IMPAIRMENT AND ITS APPLICATION TO CERTAIN INVESTMENTS In November 2005, the FASB released FASB Staff Position Nos. FAS 115-1 and FAS 124-1, "The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments" ("FSP 115-1"), which effectively replaces Emerging Issues Task Force No. 03-1, "The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments" ("EITF 03-1"). FSP 115-1 contains a three-step model for evaluating impairments and carries forward the disclosure requirements in EITF 03-1 pertaining to securities in an unrealized loss position. Under the model, any security in an unrealized loss position is considered impaired; an evaluation is made to determine whether the impairment is other-than-temporary; and, if an impairment is considered other-than-temporary, a realized loss is recognized to write the security's cost or amortized cost basis down to fair value. FSP 115-1 references existing other-than-temporary impairment guidance for determining when an impairment is other-than-temporary and clarifies that subsequent to the recognition of an other- F-8 than-temporary impairment loss for debt securities, an investor shall account for the security using the constant effective yield method. FSP 115-1 is effective for reporting periods beginning after December 15, 2005, with earlier application permitted. The Company adopted FSP 115-1 upon issuance. The adoption did not have a material effect on the Company's consolidated financial condition or results of operations. FUTURE ADOPTION OF NEW ACCOUNTING STANDARDS BUSINESS COMBINATIONS In December 2007, the FASB issued SFAS No. 141 (revised 2007), "Business Combinations" ("SFAS 141(R)"). This statement replaces SFAS No. 141, "Business Combinations" ("SFAS 141") and establishes the principles and requirements for how the acquirer in a business combination: (a) measures and recognizes the identifiable assets acquired, liabilities assumed, and any noncontrolling interests in the acquired entity, (b) measures and recognizes positive goodwill acquired or a gain from bargain purchase (negative goodwill), and (c) determines the disclosure information that is decision-useful to users of financial statements in evaluating the nature and financial effects of the business combination. Some of the significant changes to the existing accounting guidance on business combinations made by SFAS 141(R) include the following: - Most of the identifiable assets acquired, liabilities assumed and any noncontrolling interest in the acquiree shall be measured at their acquisition-date fair values rather than SFAS 141's requirement to allocate the cost of an acquisition to individual assets acquired and liabilities assumed based on their estimated fair values; - Acquisition-related costs incurred by the acquirer shall be expensed in the periods in which the costs are incurred rather than included in the cost of the acquired entity; - Goodwill shall be measured as the excess of the consideration transferred, including the fair value of any contingent consideration, plus the fair value of any noncontrolling interest in the acquiree, over the fair values of the acquired identifiable net assets, rather than measured as the excess of the cost of the acquired entity over the estimated fair values of the acquired identifiable net assets; - Contractual pre-acquisition contingencies are to be recognized at their acquisition date fair values and noncontractual pre-acquisition contingencies are to be recognized at their acquisition date fair values only if it is more likely than not that the contingency gives rise to an asset or liability, whereas SFAS 141 generally permits the deferred recognition of pre-acquisition contingencies until the recognition criteria of SFAS No. 5, "Accounting for Contingencies" are met; and - Contingent consideration shall be recognized at the acquisition date rather than when the contingency is resolved and consideration is issued or becomes issuable. SFAS 141(R) is effective for and shall be applied prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008, with earlier adoption prohibited. Assets and liabilities that arose from business combinations with acquisition dates prior to the SFAS 141(R) effective date shall not be adjusted upon adoption of SFAS 141(R) with certain exceptions for acquired deferred tax assets and acquired income tax positions. The Company expects to adopt SFAS 141(R) on January 1, 2009, and has not yet determined the effect of SFAS 141(R) on its consolidated financial statements. NONCONTROLLING INTERESTS IN CONSOLIDATED FINANCIAL STATEMENTS, AN AMENDMENT OF ARB NO. 51 In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements" ("SFAS 160"). This statement amends Accounting Research Bulletin No. 51, "Consolidated Financial Statements" ("ARB 51"). Noncontrolling interest refers to the minority interest portion of the equity of a subsidiary that is not attributable directly or indirectly to a parent. SFAS 160 establishes accounting and reporting standards that require for-profit entities that prepare consolidated financial statements to: (a) present noncontrolling interests as a component of equity, separate from the parent's equity, (b) separately present the amount of consolidated net income attributable to noncontrolling interests in the income statement, (c) consistently account for changes in a parent's ownership interests in a subsidiary in which the parent entity has a controlling financial interest as equity transactions, (d) require an entity to measure at fair value its remaining interest in a subsidiary that is deconsolidated, (e) require an entity to provide sufficient disclosures that identify and clearly distinguish between interests of the parent and interests of noncontrolling owners. SFAS 160 applies to all for-profit entities that prepare consolidated financial statements, and affects those for-profit entities that have outstanding noncontrolling interests in one or more subsidiaries or that deconsolidate a subsidiary. SFAS 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008 with earlier adoption prohibited. The Company expects to adopt SFAS 160 on January 1, 2009 and has not yet determined the effect of SFAS 160 on its consolidated financial statements. F-9 CLARIFICATION OF THE SCOPE OF THE AUDIT AND ACCOUNTING GUIDE "INVESTMENT COMPANIES" AND ACCOUNTING BY PARENT COMPANIES AND EQUITY METHOD INVESTORS FOR INVESTMENTS IN INVESTMENT COMPANIES In June 2007, the AICPA issued Statement of Position 07-1, "Clarification of the Scope of the Audit and Accounting Guide Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies" ("SOP 07-1"). SOP 07-1 provides guidance for determining whether an entity is within the scope of the AICPA Audit and Accounting Guide Investment Companies ("the Guide"). This statement also addresses whether the specialized industry accounting principles of the Guide should be retained by a parent company in consolidation or by an investor that has the ability to exercise significant influence over the investment company and applies the equity method of accounting to its investment in the entity. In addition, SOP 07-1 includes certain disclosure requirements for parent companies and equity method investors in investment companies that retain investment company accounting in the parent company's consolidated financial statements or the financial statements of an equity method investor. SOP 07-1 is effective for fiscal years beginning on or after December 15, 2007, with earlier application encouraged; however, in November 2007, the FASB decided to (1) delay indefinitely the effective date of the SOP and (2) prohibit adoption of the SOP for an entity that has not early adopted the SOP. The Company did not early adopt SOP 07-1. SOP 07-1 as currently issued is not expected to have an impact on the Company's consolidated financial condition or results of operations. FAIR VALUE OPTION FOR FINANCIAL ASSETS AND FINANCIAL LIABILITIES In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities, Including an amendment of FASB Statement No. 115" ("SFAS 159"). The objective of SFAS 159 is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported net income caused by measuring related assets and liabilities differently. This statement permits entities to choose, at specified election dates, to measure eligible items at fair value (i.e., the fair value option). Items eligible for the fair value option include certain recognized financial assets and liabilities, rights and obligations under certain insurance contracts that are not financial instruments, host financial instruments resulting from the separation of an embedded nonfinancial derivative instrument from a nonfinancial hybrid instrument, and certain commitments. Business entities shall report unrealized gains and losses on items for which the fair value option has been elected in net income. The fair value option: (a) may be applied instrument by instrument, with certain exceptions; (b) is irrevocable (unless a new election date occurs); and (c) is applied only to entire instruments and not to portions of instruments. SFAS 159 is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007, although early adoption is permitted under certain conditions. Companies shall report the effect of the first remeasurement to fair value as a cumulative-effect adjustment to the opening balance of retained earnings. On January 1, 2008, the Company did not elect to apply the provisions of SFAS 159 to financial assets and liabilities. FAIR VALUE MEASUREMENTS FAIR VALUE UNDER SFAS NO. 157 On January 1, 2008, the Company adopted SFAS 157, which was issued by the Financial Accounting Standards Board in September 2006. For financial statement elements currently required to be measured at fair value, SFAS 157 redefines fair value, establishes a framework for measuring fair value under accounting principles generally accepted in the United States and enhances disclosures about fair value measurements. The new definition of fair value focuses on the price that would be received to sell the asset or paid to transfer the liability regardless of whether an observable liquid market price existed (an exit price). An exit price valuation will include margins for risk even if they are not observable. As the Company is released from risk, the margins for risk will also be released through net realized capital gains (losses) in net income. SFAS 157 provides guidance on how to measure fair value, when required, under existing accounting standards. SFAS 157 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels ("Level 1, 2, and 3"). Level 1 Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 2 Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Level 3 Unobservable inputs reflecting the reporting entity's estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). ACCOUNTING FOR GUARANTEED BENEFITS OFFERED WITH VARIABLE ANNUITIES Many of the variable annuity contracts issued or reinsured by the Company offer various guaranteed minimum death, withdrawal, income and accumulation benefits. Those benefits are accounted for under Statement of Financial Accounting Standard No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133") or AICPA Statement of Position No. 03-1 "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts ("SOP 03-1"). Guaranteed minimum benefits often meet the definition of an embedded derivative F-10 under SFAS 133 as they have notional amounts (the guaranteed balance) and underlyings (the investment fund options), they require no initial net investment and they may have terms that require or permit net settlement. However, certain guaranteed minimum benefits settle only upon a single insurable event, such as death (guaranteed minimum death benefits "GMDB") or living (life contingent portion of guaranteed minimum withdrawal benefits "GMWB"), and as such are scoped out of SFAS 133 under the "insurance contract exception". Guaranteed minimum benefits that do not meet the requirements of SFAS 133 are accounted for as insurance benefits under SOP 03-1. GUARANTEED BENEFITS ACCOUNTED FOR UNDER SOP 03-1 The GMDBs issued by the Company and certain GMDBs reinsured by the Company are accounted for under SOP 03-1. In addition, the Company's GMWB "for life" allows policyholders to receive the guaranteed annual withdrawal amount for as long as they are alive even if the guaranteed remaining balance ("GRB") is exhausted. Payments beyond the GRB are considered life contingent insurance benefits and are accounted for under SOP 03-1. Benefit guarantee liabilities accounted for under SOP 03-1, absent an unlocking event as described in the "Critical Accounting Estimates" within Management's Discussion and Analysis, do not result in a change in value that is immediately reflected in net income. Under SOP 03-1, the income statement reflects the current period increase in the liability due to the deferral of a percentage of current period revenues. The percentage is determined by dividing the present value of expected claims by the present value of expected revenues using best estimate assumptions over a range of market scenarios discounted at a rate consistent with that used in the Company's DAC models. Current period revenues are impacted by the actual increase or decrease in account value. Claims recorded against the liability have no immediate impact on the income statement unless those claims exceed the liability. Periodically, the Company unlocks its benefit assumptions, including the benefit deferral rate. The impact of this change is reflected in benefits, losses and loss adjustment expenses, in net income. In the U.S., the Company sells variable annuity contracts that, in addition to the living benefits described above, offer various guaranteed death benefits. Declines in the equity market may increase the Company's net exposure to death benefits under these contracts. The Company's total gross exposure (i.e., before reinsurance) to these U.S. guaranteed death benefits is often referred to as the net amount at risk. However, the Company will incur these guaranteed death benefit payments in the future only if the policyholder has an in-the-money guaranteed death benefit at their time of death. Effective July 31, 2006, an existing reinsurance agreement between a subsidiary of the Company, Hartford Life and Annuity Insurance Company ("HLAI") and Hartford Life, Insurance. KK ("HLIKK"), a wholly owned Japanese subsidiary of Hartford Life, Inc. ("Hartford Life"), was modified to include the GMDB on covered contracts that have an associated GMIB rider. The modified reinsurance agreement applies to all contracts, GMIB product and GMDB riders in-force and issued as of July 31, 2006 and prospectively, except for policies and GMIB product issued prior to April 1, 2005, which were recaptured. Declines in equity markets as well as a strengthening of Japanese Yen in comparison to the U.S. dollar may increase the Company's exposure to these guaranteed benefits. For the guaranteed death benefits, the Company pays the greater of account value at death or a guaranteed death benefit which, depending on the contract, may be based upon the premium paid and/or the maximum anniversary value established no later than age 80, as adjusted for withdrawals under the terms of the contract. The following table provides the account value, net amount at risk and reserve amount, at December 31, 2007, for each type of guaranteed death and living benefit sold by the Company that is accounted for under SOP 03-1:
ACCOUNT NET AMOUNT SOP 03-1 VALUE (1) AT RISK RESERVE (2) -------------------------------------------------------------------------------- U.S. Guaranteed Minimum Death Benefits $126,834 $5,106 $527 Guaranteed Minimum Death Benefits Assumed 30,724 380 4 Life Contingent Portion of "for Life" GMWBs 10,272 (*) (*) ----------- -------- ------ TOTAL $ 167,830 $ 5,486 $ 531 ----------- -------- ------
(1) Policies with "for Life" GMWB riders include both benefits accounted for under SFAS 133 and SOP 03-1 and thus are included this table and the SFAS 133 table below. However, benefits payable are generally mutually exclusive (e.g., for a given contract, only the death or living benefits, but not both are payable at one time) (See Note 8). (2) Before reinsurance. The Company uses reinsurance to manage its exposure to the mortality and equity risk associated with GMDB. Reinsurance of GMDB is accounted for under SOP 03-1. After reinsurance, the net amount at risk for U.S. GMDB is $976. After reinsurance, the net SOP 03-1 reserve for U.S. GMDB is $202. (*) Amounts are insignificant at December 31, 2007. GUARANTEED BENEFITS ACCOUNTED AT FAIR VALUE UNDER SFAS 133 The non-life contingent portion of GMWBs issued by the Company meet the definition of an embedded derivative under SFAS 133, and as such are recorded at fair value with changes in fair value recorded in net realized capital gains (losses) in net income. In bifurcating the embedded derivative, the Company attributes to the derivative a portion of total fees collected F-11 from the contract holder. Those fees attributed are set equal to the present value of future claims expected to be paid for the guaranteed living benefit embedded derivative at the inception of the contract (the "Attributed Fees"). The excess of total fees collected from the contract holder over the Attributed Fees are associated with the host variable annuity contract recorded in fee income. In subsequent valuations, both the present value of future claims expected to be paid and the present value of attributed fees expected to be collected are revalued based on current market conditions and policyholder behavior assumptions. The difference between each of the two components represents the fair value of the embedded derivative. GMWBs provide the policyholder with a guaranteed remaining balance ("GRB") if the account value is reduced to zero through a combination of market declines and withdrawals. The GRB is generally equal to premiums less withdrawals. For most of the Company's GMWB for life riders, the GRB is reset on an annual basis to the maximum anniversary account value subject to a cap. If the GRB exceeds the account value for any policy, the contract is "in-the-money" by the difference between the GRB and the account value. The sum of the in-the-money and out-of-the-money contracts is comparable to net amount at risk. Certain GMIBs and guaranteed minimum accumulation benefits ("GMAB") reinsured by the Company meet the definition a freestanding derivative, even though in-form they are reinsurance. Accordingly, the following GMIB and GMAB reinsurance agreements are recorded at fair value on the Company's balance sheet, with prospective changes in fair value recorded in net realized capital gains (losses) in net income: - REINSURED GMIB: Effective August 31, 2005, HLAI entered into a reinsurance agreement with HLIKK where HLIKK agreed to cede and HLAI agreed to reinsure 100% of the risks associated with the in-force and prospective GMIB product issued by HLIKK on its variable annuity business. Effective July 31, 2006, the agreement was modified to include a tiered reinsurance premium structure. The modified reinsurance agreement applies to all contracts, GMIBs in-force and issued as of July 31, 2006 and prospectively, except for policies and GMIB product issued prior to April 1, 2005, which were recaptured. - REINSURED GMAB: Effective September 30, 2007, HLAI entered into another reinsurance agreement where HLIKK agreed to cede and HLAI agreed to reinsure 100% of the risks associated with the in-force and prospective GMAB riders issued by HLIKK on certain of its variable annuity business. Due to the significance of the non-observable inputs associated with pricing the reinsurance of the GMIB and GMAB products that are free standing derivatives, the initial difference between the transaction price and the modeled value was recorded in additional paid-in capital because the reinsurance arrangements are between entities that are commonly controlled by The Hartford Financial Services Group, Inc. ("The Hartford"). The following table provides the account value, SFAS 133 fair value and GRB, at December 31, 2007, for each type of guaranteed living benefit liability sold or reinsured by the Company that is accounted for under SFAS 133, by rider fee:
(ASSET) GUARANTEED ACCOUNT LIABILITY REMAINING VALUE (1) FAIR VALUE BALANCE ------------------------------------------------------------------------------------------ U.S. GUARANTEED MINIMUM WITHDRAWAL BENEFITS 46,088 553 34,622 NON-LIFE CONTINGENT PORTION OF "FOR LIFE" GUARANTEED MINIMUM WITHDRAWAL BENEFITS 10,272 154 10,230 REINSURED GUARANTEED LIVING BENEFITS Guaranteed Minimum Income Benefits 16,289 72 15,297 Guaranteed Minimum Accumulation Benefits 2,734 (2) 2,768 --------- ------ --------- Subtotal 19,023 70 18,065 --------- ------ --------- TOTAL $ 75,383 $ 777 $ 62,917 --------- ------ ---------
(1) "For life" GMWB policies, and their related account values, include both benefits accounted for under SFAS 133 and SOP 03-1 and thus are included in this SFAS 133 table and the SOP 03-1 table above. However, benefits payable are generally mutually exclusive (e.g., for a given contract, only the death or living benefits, but not both are payable at one time). (2) The magnitude of the SFAS 133 fair value, at December 31, 2007, was highly dependent upon the size of the block of business for guaranteed living benefits that are required to be fair valued, and the market conditions at the date of valuation, in particular high implied volatilities and low risk-free interest rates. If implied volatilities were lower and risk-free interest rates were higher at December 31, 2007, the SFAS 133 fair value would have been lower and vice versa. F-12 DERIVATIVES THAT HEDGE CAPITAL MARKETS RISK FOR GUARANTEED MINIMUM BENEFITS ACCOUNTED FOR AS DERIVATIVES Changes in capital markets or policyholder behavior may increase or decrease the Company's exposure to benefits under the guarantees. The Company uses derivative transactions, including GMWB reinsurance (described below) which meets the definition of a derivative under SFAS 133 and customized derivative transactions, to mitigate some of that exposure. Derivatives are recorded at fair value with changes in fair value recorded in net realized capital gains (losses) in net income. GMWB REINSURANCE For all U.S. GMWB contracts in effect through July 2003, the Company entered into a reinsurance arrangement to offset its exposure to the GMWB for the remaining lives of those contracts. Substantially all of the Company's reinsurance capacity was utilized as of the third quarter of 2003. Substantially all U.S. GMWB riders sold since July 2003, are not covered by reinsurance. CUSTOMIZED DERIVATIVES In June and July of 2007, the Company entered into two customized swap contracts to hedge certain risk components for the remaining term of certain blocks of non-reinsured GMWB riders. These customized derivative contracts provide protection from capital markets risks based on policyholder behavior assumptions as specified by the Company at the inception of the derivative transactions. Due to the significance of the non-observable inputs associated with pricing these derivatives, the initial difference between the transaction price and modeled value was deferred in accordance with EITF No. 02-3 "Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities" ("EITF 02-3") and included in Other Assets in the Condensed Consolidated Balance Sheets. OTHER DERIVATIVE INSTRUMENTS The Company uses other hedging instruments to hedge its unreinsured GMWB exposure. These instruments include interest rate futures and swaps, variance swaps, S&P 500 and NASDAQ index put options and futures contracts. The Company also uses EAFE Index swaps to hedge GMWB exposure to international equity markets. The following table provides the notional amount and SFAS 133 fair value at December 31, 2007, for each type of derivative asset held by the Company to hedge capital markets risk for guaranteed living benefit sold by the Company:
NOTIONAL FAIR AMOUNT VALUE (IN MILLIONS) -------------------------------------------------------------------------- Reinsurance $6,579 $128 Customized Derivatives 12,784 50 --------- ------ Other Derivative Instruments 8,573 592 --------- ------ TOTAL $ 27,936 $ 770 --------- ------
ADOPTION OF STATEMENT OF FINANCIAL ACCOUNTING STANDARD NO. 157, "FAIR VALUE MEASUREMENTS" ("SFAS 157") Fair values for GMWB embedded derivatives, reinsured GMIB and GMAB freestanding derivatives and customized derivatives that hedge certain equity markets exposure for GMWB contracts are calculated based upon internally developed models because active, observable markets do not exist for those items. Below is a description of the Company's fair value methodologies for guaranteed benefit liabilities, the related reinsurance and customized derivatives, all accounted for under SFAS 133, prior to the adoption of SFAS 157 and subsequent to adoption of SFAS 157. PRE-SFAS 157 FAIR VALUE Prior to January 1, 2008, the Company used the guidance prescribed in SFAS 133 and other related accounting literature on fair value which represented the amount for which a financial instrument could be exchanged in a current transaction between knowledgeable, unrelated willing parties. However, under that accounting literature, when an estimate of fair value is made for liabilities where no market observable transactions exist for that liability or similar liabilities, market risk margins are only included in the valuation if the margin is identifiable, measurable and significant. If a reliable estimate of market risk margins is not obtainable, the present value of expected future cash flows, discounted at the risk free rate of interest, may be the best available estimate of fair value in the circumstances ("Pre-SFAS 157 Fair Value"). The Pre-SFAS 157 Fair Value is calculated based on actuarial and capital market assumptions related to projected cashflows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior such as lapses, fund selection, resets and withdrawal utilization (for the customized derivatives, policyholder behavior is prescribed in the derivative contract). Because of the dynamic and complex nature of these cashflows, best estimate assumptions and a Monte Carlo stochastic process involving the generation of thousands of scenarios that assume risk neutral returns consistent with swap rates and a blend of observable implied index volatility levels are used. Estimating these cashflows involves numerous estimates and subjective judgments including those regarding F-13 expected markets rates of return, market volatility, correlations of market index returns to funds, fund performance, discount rates and policyholder behavior. At each valuation date, the Company assumes expected returns based on risk-free rates as represented by the current LIBOR forward curve rates; forward market volatility assumptions for each underlying index based primarily on a blend of observed market "implied volatility" data; correlations of market returns across underlying indices based on actual observed market returns and relationships over the ten years preceding the valuation date; three years of history for fund regression; and current risk-free spot rates as represented by the current LIBOR spot curve to determine the present value of expected future cash flows produced in the stochastic projection process. As GMWB obligations are relatively new in the marketplace, actual policyholder behavior experience is limited. As a result, estimates of future policyholder behavior are subjective and based on analogous internal and external data. As markets change, mature and evolve and actual policyholder behavior emerges, management continually evaluates the appropriateness of its assumptions for this component of the fair value model. The Company's SFAS 157 fair value is calculated as an aggregation of the following components: Pre-SFAS 157 Fair Value, Actively-Managed Volatility Adjustment, Credit Standing Adjustment, Market Illiquidity Premium and Behavior Risk Margin. The resulting aggregation is reconciled or calibrated, if necessary, to market information that is, or may be, available to the Company, but may not be observable by other market participants, including reinsurance discussions and transactions. The Company believes the aggregation of each of these components, as necessary and as reconciled or calibrated to the market information available to the Company, results in an amount that the Company would be required to transfer for a liability, or receive for an asset, to market participants in an active liquid market, if one existed, for those market participants to assume the risks associated with the guaranteed minimum benefits, the related reinsurance and customized derivatives, required to be fair valued. Each of the components described below are unobservable in the market place and require subjectivity by the Company in determining their value. - ACTIVELY-MANAGED VOLATILITY ADJUSTMENT. This component incorporates the basis differential between the observable index implied index volatilities used to calculate the Pre-SFAS 157 component and the actively-managed funds underlying the variable annuity product. The Actively-Managed Volatility Adjustment is calculated using historical fund and weighted index volatilities. - CREDIT STANDING ADJUSTMENT. This component makes an adjustment that market participants would make to reflect the risk that GMWB obligations or the GMWB reinsurance recoverables will not be fulfilled ("nonperformance risk"). SFAS 157 explicitly requires nonperformance risk to be reflected in fair value. The Company calculates the Credit Standing Adjustment by using default rates provided by rating agencies, adjusted for market recoverability. - MARKET ILLIQUIDITY PREMIUM. This component makes an adjustment that market participants would require to reflect that GMWB obligations are illiquid and have no market observable exit prices in the capital markets. The Market Illiquidity Premium was determined using inputs that are identified in customized derivative transactions that the Company has entered into to hedge GMWB related risks. - BEHAVIOR RISK MARGIN. This component adds a margin that market participants would require for the risk that the Company's assumptions about policyholder behavior used in the Pre-SFAS 157 model could differ from actual experience. The Behavior Risk Margin is calculated by taking the difference between adverse policyholder behavior assumptions and the best estimate assumptions used in the Pre-SFAS 157 model using the Company's long-term view on interest rates and volatility. The adverse assumptions incorporate adverse dynamic lapse behavior, greater utilization of the withdrawal features, and the potential for contract holders to shift their investment funds into more aggressive investments when allowed. SFAS 157 TRANSITION Pending the release and potential impact of adopting the proposed FASB Staff Position, "Measuring Liabilities under FASB Statement No. 157", if any, the Company expects the impact of adopting SFAS 157 for guaranteed benefits accounted for under SFAS 133 and the related reinsurance, to be recorded in the first quarter of 2008, will be a reduction to net income of $250-$350, after the effects of DAC amortization and income taxes. In addition, net realized capital gains and losses that will be recorded in 2008 and future years are also likely to be more volatile than amounts recorded in prior years. Furthermore, adoption of SFAS 157 will result in lower variable annuity fee income for new business issued in 2008 as fees attributed to the embedded derivative will increase consistent with incorporating additional risk margins and other indicia of "exit value" in the valuation of the embedded derivative. The Company is still evaluating potential changes to its hedging program as a result of the adoption of SFAS 157. However, based on analysis to date, the Company does not expect significant changes in any of its hedging targets. The loss deferred in accordance with EITF 02-3 of $51 for the customized derivatives used to hedge a portion of the GMWB risk will be recognized in retained earnings upon the adoption of SFAS 157. In addition, the change in value of the customized derivatives due to the initial adoption of SFAS 157 of $35 will also be recorded in retained earnings with subsequent changes in fair value recorded in net realized capital gains (losses) in net income. The Company's adoption of SFAS 157 will not materially impact the fair values of other derivative instruments used to hedge guaranteed minimum benefits, as those instruments are F-14 composed primarily of Level 1 and Level 2 inputs and as a result, the Company was already using market observable transactions to value those hedging instruments. Additionally, the adoption of SFAS 157 will not have a significant impact on the fair values of the Company's other financial instruments. INVESTMENTS The Company's investments in fixed maturities, which include bonds, redeemable preferred stock and commercial paper; and certain equity securities, which include common and non-redeemable preferred stocks, are classified as "available-for-sale" and accordingly, are carried at fair value with the after-tax difference from cost or amortized cost, as adjusted for the effect of deducting the life and pension policyholders' share of the immediate participation guaranteed contracts and certain life and annuity deferred policy acquisition costs and reserve adjustments, reflected in stockholder's equity as a component of accumulated other comprehensive income ("AOCI"). Policy loans are carried at outstanding balance, which approximates fair value. Mortgage loans on real estate are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of valuation allowances, if any. Short-term investments are carried at amortized cost, which approximates fair value. Other investments primarily consist of limited partnership interests and other alternative investments and derivatives instruments. Limited partnerships are accounted for under the equity method and accordingly the Company's share of earnings are included in net investment income. Derivatives instruments are carried at fair value. VALUATION OF FIXED MATURITIES The fair value for fixed maturity securities is largely determined by one of three primary pricing methods: third party pricing service market prices, independent broker quotations or pricing matrices. Security pricing is applied using a hierarchy or "waterfall" approach whereby prices are first sought from third party pricing services with the remaining unpriced securities submitted to independent brokers for prices or lastly priced via a pricing matrix. Typical inputs used by these three pricing methods include, but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flows and prepayments speeds. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, third party pricing services will normally derive the security prices through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information as outlined above. If there are no recent reported trades, the third party pricing services and brokers may use matrix or model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the asset-backed securities ("ABS"), collaterized mortgage obligations ("CMOs"), and mortgage-backed securities ("MBS") pricing are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral. Actual prepayment experience may vary from these estimates Prices from third party pricing services are often unavailable for securities that are rarely traded or are traded only in privately negotiated transactions. As a result, certain of the Company's securities are priced via independent broker quotations which utilize inputs that may be difficult to corroborate with observable market based data. A pricing matrix is used to price securities for which the Company is unable to obtain either a price from a third party pricing service or an independent broker quotation. The pricing matrix begins with current spread levels to determine the market price for the security. The credit spreads, as assigned by a nationally recognized rating agency, incorporate the issuer's credit rating and a risk premium, if warranted, due to the issuer's industry and the security's time to maturity. The issuer-specific yield adjustments, which can be positive or negative, are updated twice annually, as of June 30 and December 31, by an independent third party source and are intended to adjust security prices for issuer-specific factors. The matrix-priced securities at December 31, 2007 and 2006 primarily consisted of non-144A private placements and have an average duration of 4.7 and 5.0 years, respectively. The Company assigns a credit rating to these securities based upon an internal analysis of the issuer's financial strength. The Company performs a monthly analysis on the prices received from third parties to assess if the prices represent a reasonable estimate of the fair value. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. Examples of procedures performed include, but are not limited to, initial and on-going review of third party pricing services methodologies, review of pricing statistics and trends, back testing recent trades, and monitoring of trading volumes. As a result of this analysis, if the Company determines there is a more appropriate fair value based upon available market data, the price received from the third party is adjusted accordingly. F-15 The following table presents the fair value of fixed maturity securities by pricing source as of December 31, 2007 and 2006.
PERCENTAGE PERCENTAGE 2007 OF TOTAL 2006 OF TOTAL FAIR VALUE FAIR VALUE FAIR VALUE FAIR VALUE --------------------------------------------------------------------------------------------------------------------------------- Priced via third party pricing services $35,892 78.7% $37,190 83.3% Priced via independent broker quotations 5,931 13.0% 3,567 8.0% Priced via matrices 3,526 7.7% 3,810 8.5% Priced via other methods 262 0.6% 79 0.2% --------- ------- --------- ------- TOTAL $45,611 100.0% $44,646 100.0% --------- ------- --------- -------
The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between knowledgeable, unrelated willing parties using inputs, including assumptions and estimates, a market participant would utilize. As such, the estimated fair value of a financial instrument may differ significantly from the amount that could be realized if the security was sold immediately. OTHER-THAN-TEMPORARY IMPAIRMENTS ON AVAILABLE-FOR-SALE SECURITIES One of the significant estimates inherent in the valuation of investments is the evaluation of investments for other-than-temporary impairments. The evaluation of impairments is a quantitative and qualitative process, which is subject to risks and uncertainties and is intended to determine whether declines in the fair value of investments should be recognized in current period earnings. The risks and uncertainties include changes in general economic conditions, the issuer's financial condition or near term recovery prospects, the effects of changes in interest rates or credit spreads and the recovery period. The Company's accounting policy requires that a decline in the value of a security below its cost or amortized cost basis be assessed to determine if the decline is other-than-temporary. If the security is deemed to be other-than-temporarily impaired, a charge is recorded in net realized capital losses equal to the difference between the fair value and cost or amortized cost basis of the security. In addition, for securities expected to be sold, an other-than-temporary impairment charge is recognized if the Company does not expect the fair value of a security to recover to cost or amortized cost prior to the expected date of sale. The fair value of the other-than-temporarily impaired investment becomes its new cost basis. The Company has a security monitoring process overseen by a committee of investment and accounting professionals ("the committee") that identifies securities that, due to certain characteristics, as described below, are subjected to an enhanced analysis on a quarterly basis. Securities not subject to EITF Issue No. 99-20, "Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests That Continued to Be Held by a Transferor in Securitized Financial Assets" ("non-EITF Issue No. 99-20 securities") that are in an unrealized loss position, are reviewed at least quarterly to determine if an other-than-temporary impairment is present based on certain quantitative and qualitative factors. The primary factors considered in evaluating whether a decline in value for non-EITF Issue No. 99-20 securities is other-than-temporary include: (a) the length of time and the extent to which the fair value has been or is expected to be less than cost or amortized cost, (b) the financial condition, credit rating and near-term prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments and (d) the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery. For certain securitized financial assets with contractual cash flows including ABS, EITF Issue No. 99-20 requires the Company to periodically update its best estimate of cash flows over the life of the security. If the fair value of a securitized financial asset is less than its cost or amortized cost and there has been a decrease in the present value of the estimated cash flows since the last revised estimate, considering both timing and amount, an other-than-temporary impairment charge is recognized. The Company also considers its intent and ability to retain a temporarily impaired security until recovery. Estimating future cash flows is a quantitative and qualitative process that incorporates information received from third party sources along with certain internal assumptions and judgments regarding the future performance of the underlying collateral. In addition, projections of expected future cash flows may change based upon new information regarding the performance of the underlying collateral. Each quarter, during this analysis, the Company asserts its intent and ability to retain until recovery those securities judged to be temporarily impaired. Once identified, these securities are systematically restricted from trading unless approved by the committee. The committee will only authorize the sale of these securities based on predefined criteria that relate to events that could not have been foreseen. Examples of the criteria include, but are not limited to, the deterioration in the issuer's creditworthiness, a change in regulatory requirements or a major business combination or major disposition. MORTGAGE LOAN IMPAIRMENTS Mortgage loans on real estate are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual F-16 terms of the loan agreement. For mortgage loans that are determined to be impaired, a valuation allowance is established for the difference between the carrying amount and the Company's share of either (a) the present value of the expected future cash flows discounted at the loan's original effective interest rate, (b) the loan's observable market price or (c) the fair value of the collateral. Changes in valuation allowances are recorded in net realized capital gains and losses. NET REALIZED CAPITAL GAINS AND LOSSES Net realized capital gains and losses from investment sales, after deducting the life and pension policyholders' share for certain products, are reported as a component of revenues and are determined on a specific identification basis. Net realized capital gains and losses also result from fair value changes in derivatives contracts (both free-standing and embedded) that do not qualify, or are not designated, as a hedge for accounting purposes, and the change in value of derivatives in certain fair-value hedge relationships. Impairments are recognized as net realized capital losses when investment losses in value are deemed other-than-temporary. Recoveries of principle received by the Company in excess of expected realizable value from securities previously recorded as other-than-temporarily impaired are included in net realized capital gains. Foreign currency transaction remeasurements are also included in net realized capital gains and losses. NET INVESTMENT INCOME Interest income from fixed maturities and mortgage loans on real estate is recognized when earned on the constant effective yield method based on estimated timing of cash flows. The amortization of premium and accretion of discount for fixed maturities also takes into consideration call and maturity dates that produce the lowest yield. For high credit quality securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future principal repayments using the retrospective method. For non-highly rated securitized financial assets any yield adjustments are made using the prospective method. Prepayment fees on fixed maturities and mortgage loans are recorded in net investment income when earned. For limited partnerships, the equity method of accounting is used to recognize the Company's share of earnings. For fixed maturities that have had an other-than-temporary impairment loss, the Company amortizes the new cost basis to par or to the estimated future value over the expected remaining life of the security by adjusting the security's yield. DERIVATIVE INSTRUMENTS Overview The Company utilizes a variety of derivative instruments, including swaps, caps, floors, forwards, futures and options through one of four Company-approved objectives: to hedge risk arising from interest rate, equity market, credit spread including issuer default, price or currency exchange rate risk or volatility; to manage liquidity; to control transaction costs; or to enter into replication transactions. For a further discussion of derivative instruments, see the Derivative Instruments section of Note 3. The Company's derivative transactions are used in strategies permitted under the derivative use plans required by the State of Connecticut and the State of New York insurance departments. Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities Derivative instruments are recognized on the consolidated balance sheets at fair value. As of December 31, 2007 and 2006, approximately 89% and 82% of derivatives, respectively, based upon notional values, were priced by valuation models, which utilize independent market data, while the remaining 11% and 18%, respectively, were priced by broker quotations. The derivatives are valued using mid-market level inputs that are predominantly observable in the market place. Inputs used to value derivatives include, but are not limited to, interest swap rates, foreign currency forward and spot rates, credit spreads, interest and equity volatility and equity index levels. The Company performs a monthly analysis on the derivative valuation which includes both quantitative and qualitative analysis. Examples of procedures performed include, but are not limited to, review of pricing statistics and trends, back testing recent trades, analyzing changes in the market environment and monitoring trading volume. This discussion on derivative pricing excludes the GMWB rider and associated reinsurance contracts as well as the reinsurance contracts associated with the GMIB and GMAB products, which are discussed in the preceding paragraphs under "Accounting for Guaranteed Benefits Offered with Variable Annuities" section. On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the fair value of a recognized asset or liability ("fair-value" hedge), (2) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability ("cash-flow" hedge), (3) a foreign-currency fair value or cash-flow hedge ("foreign-currency" hedge), (4) a hedge of a net investment in a foreign operation ("net investment" hedge) or (5) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks which do not qualify for hedge accounting. Fair-Value Hedges Changes in the fair value of a derivative that is designated and qualifies as a fair-value hedge, along with the changes in the fair value of the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings with any F-17 differences between the net change in fair value of the derivative and the hedged item representing the hedge ineffectiveness. Periodic cash flows and accruals of income/expense ("periodic derivative net coupon settlements") are recorded in the line item of the consolidated statements of income in which the cash flows of the hedged item are recorded. Cash-Flow Hedges Changes in the fair value of a derivative that is designated and qualifies as a cash-flow hedge are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the consolidated statements of income in which the cash flows of the hedged item are recorded. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of income in which the cash flows of the hedged item are recorded. Foreign-Currency Hedges Changes in the fair value of derivatives that are designated and qualify as foreign-currency hedges are recorded in either current period earnings or AOCI, depending on whether the hedged transaction is a fair-value hedge or a cash-flow hedge, respectively. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of income in which the cash flows of the hedged item are recorded. Net Investment in a Foreign Operation Hedges Changes in fair value of a derivative used as a hedge of a net investment in a foreign operation, to the extent effective as a hedge, are recorded in the foreign currency translation adjustments account within AOCI. Cumulative changes in fair value recorded in AOCI are reclassified into earnings upon the sale or complete, or substantially complete, liquidation of the foreign entity. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of income in which the cash flows of the hedged item are recorded. Other Investment and/or Risk Management Activities The Company's other investment and/or risk management activities primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized capital gains and losses. Hedge Documentation and Effectiveness Testing To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in value or cash flow of the hedged item. At hedge inception, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as fair-value, cash-flow, foreign-currency or net investment hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. The Company also formally assesses, both at the hedge's inception and ongoing on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in fair values or cash flows of hedged items. Hedge effectiveness is assessed using qualitative and quantitative methods. Qualitative methods may include comparison of critical terms of the derivative to the hedged item. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships are measured each reporting period using the "Change in Variable Cash Flows Method", the "Change in Fair Value Method", the "Hypothetical Derivative Method", or the "Dollar Offset Method". Discontinuance of Hedge Accounting The Company discontinues hedge accounting prospectively when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the fair value or cash flows of a hedged item; (2) the derivative is dedesignated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair-value hedge, the derivative continues to be carried at fair value on the balance sheet with changes in its fair value recognized in current period earnings. F-18 When hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings. In other situations in which hedge accounting is discontinued on a cash-flow hedge, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the variability of the cash flow of the hedged item. Embedded Derivatives The Company purchases and issues financial instruments and products that contain embedded derivative instruments. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the consolidated balance sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses. Credit Risk The Company's derivative counterparty exposure policy establishes market-based credit limits, favors long-term financial stability and creditworthiness and typically requires credit enhancement/credit risk reducing agreements. Credit risk is measured as the amount owed to the Company based on current market conditions and potential payment obligations between the Company and its counterparties. Credit exposures are generally quantified daily, netted by counterparty for each legal entity of the Company, and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of derivatives exceeds the exposure policy thresholds which do not exceed $10. The Company also minimizes the credit risk in derivative instruments by entering into transactions with high quality counterparties rated A2/A or better, which are monitored by the Company's internal compliance unit and reviewed frequently by senior management. In addition, the compliance unit monitors counterparty credit exposure on a monthly basis to ensure compliance with Company policies and statutory limitations. The Company also maintains a policy of requiring that derivative contracts, other than exchange traded contracts, currency forward contracts, and certain embedded derivatives, be governed by an International Swaps and Derivatives Association Master Agreement which is structured by legal entity and by counterparty and permits right of offset. To date, the Company has not incurred any losses on derivative instruments due to counterparty nonperformance. Product Derivatives and Risk Management The Company offers certain variable annuity products with a guaranteed minimum withdrawal benefit ("GMWB") rider. The Company has also assumed, through reinsurance, from HLIKK GMIB and GMAB. The fair value of the GMWB, GMIB and GMAB is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior. Because of the dynamic and complex nature of these cash flows, best estimate assumptions and stochastic techniques under a variety of market return scenarios are used. Estimating these cash flows involves numerous estimates and subjective judgments including those regarding expected market rates of return, market volatility, correlations of market returns and discount rates. At each valuation date, the Company assumes expected returns based on risk-free rates; market volatility assumptions for each underlying index based on a blend of observed market "implied volatility" data and annualized standard deviations of monthly returns using the most recent 20 years of observed market performance correlations of market returns across underlying indices based on actual observed market returns and relationships over the ten years preceding the valuation date; and current risk-free spot rates, to determine the present value of expected future cash flows produced in the stochastic projection process. Changes in capital market assumptions can significantly change the value of the GMWB, GMIB, and GMAB. In valuing the embedded derivative, the Company attributes to the derivative a portion of the fees collected from the contract holder equal to the present value of future GMWB claims (the "Attributed Fees"). All changes in the fair value of the embedded GMWB derivative are recorded in net realized capital gains and losses. The excess of fees collected from the contract holder over the Attributed Fees are associated with the host variable annuity contract recorded in fee income. Upon adoption of SFAS 157, the Company will revise many of the assumptions used to value GMWB, GMIB and GMAB. For contracts issued prior to July 2003, the Company has a reinsurance arrangement in place to transfer its risk of loss due to GMWB. This arrangement is recognized as a derivative and carried at fair value in reinsurance recoverables. Changes in the fair value of the reinsurance agreement is recorded in net realized capital gains and losses. As of July 2003, the Company had substantially exhausted all of its reinsurance capacity, with respect to contracts issued after July 2003, and began hedging its exposure to the GMWB rider using a sophisticated program involving interest rate futures, Standard and Poor's ("S&P") 500 and NASDAQ index put options and futures contracts and Europe, Australasia and Far East ("EAFE") Index swaps to hedge GMWB exposure to international equity markets. During 2007, the Company also purchased customized derivative instruments to hedge capital market risks associated with GMWB. For the years ended December 31, 2007, 2006 and 2005, net realized capital gains and losses included the change in market value of the embedded derivative related to the GMWB F-19 and GMAB liability, the derivative reinsurance arrangement and the related derivative contracts that were purchased as economic hedges, the net effect of which was a $283 loss, $26 loss and $46 loss, before deferred policy acquisition costs and tax effects, respectively. A contract is 'in the money' if the contract holder's GRB is greater than the account value. For contracts that were 'in the money', the Company's exposure, after reinsurance, as of December 31, 2007, was $139. However, the only ways the contract holder can monetize the excess of the GRB over the account value of the contract is upon death or if their account value is reduced to zero through a combination of a series of withdrawals that do not exceed a specific percentage of the premiums paid per year and market declines. If the account value is reduced to zero, the contract holder will receive a period certain annuity equal to the remaining GRB. As the amount of the excess of the GRB over the account value can fluctuate with equity market returns on a daily basis the ultimate amount to be paid by the Company, if any, is uncertain and could be significantly more or less than $139. SEPARATE ACCOUNTS The Company maintains separate account assets and liabilities, which are reported at fair value. Separate accounts include contracts, wherein the policyholder assumes the investment risk. Separate account assets are segregated from other investments and investment income and gains and losses accrue directly to the policyholder. DEFERRED POLICY ACQUISITION COSTS AND PRESENT VALUE OF FUTURE PROFITS The deferred policy acquisition costs asset and present value of future profits ("PVFP") intangible asset (hereafter, referred to collectively as "DAC") related to investment contracts and universal life-type contracts (including variable annuities) are amortized in the same way, over the estimated life of the contracts acquired using the retrospective deposit method. Under the retrospective deposit method, acquisition costs are amortized in proportion to the present value of estimated gross profits ("EGPs"). EGPs are also used to amortize other assets and liabilities on the Company's balance sheet, such as sales inducement assets and unearned revenue reserves ("URR"). Components of EGPs are used to determine reserves for guaranteed minimum death, income and universal life secondary guarantee benefits accounted for and collectively referred to as "SOP 03-1 reserves". At December 31, 2007 and 2006, the carrying value of the Company's DAC asset was $8.4 billion and $7.3 billion, respectively. At December 31, 2007, the sales inducement, unearned revenue reserves, and SOP 03-1 balances were $445, $1.0 billion and $550, respectively. At December 31, 2006, the sales inducement, unearned revenue reserves and SOP 03-1 reserves were $397, $769 and $483, respectively. For most contracts, the Company estimates gross profits over a 20 year horizon as estimated profits emerging subsequent to year 20 are immaterial. The Company uses other amortization bases for amortizing DAC, such as gross costs (net of reinsurance), as a replacement for EGPs when EGPs are expected to be negative for multiple years of the contract's life. Actual gross profits, in a given reporting period, that vary from management's initial estimates result in increases or decreases in the rate of amortization, commonly referred to as a "true-up", which are recorded in the current period. The true-up recorded for the years ended December 31, 2007, 2006 and 2005 was an increase to amortization of $0, $45 and $27, respectively. Products sold in a particular year are aggregated into cohorts. Future gross profits for each cohort are projected over the estimated lives of the underlying contracts, and are, to a large extent, a function of future account value projections for individual variable annuity products and to a lesser extent for variable universal life products. The projection of future account values requires the use of certain assumptions. The assumptions considered to be important in the projection of future account value, and hence the EGPs, include separate account fund performance, which is impacted by separate account fund mix, less fees assessed against the contract holder's account balance, surrender and lapse rates, interest margin, mortality and hedging costs. The assumptions are developed as part of an annual process and are dependent upon the Company's current best estimates of future events. The Company's current separate account return assumption is approximately 8% (after fund fees, but before mortality and expense charges). Beginning in 2007, the Company estimated gross profits using the mean of EGPs derived from a set of stochastic scenarios that have been calibrated to our estimated separate account return as compared to prior years where we used a single deterministic estimation. Estimating future gross profits is a complex process requiring considerable judgment and the forecasting of events well into the future. The estimation process, the underlying assumptions and the resulting EGPs, are evaluated regularly. During the third quarter of 2007 and the fourth quarter of 2006, the Company refined its estimation process for DAC amortization and completed a comprehensive study of assumptions. The Company plans to complete a comprehensive assumption study and refine its estimate of future gross profits during the third quarter of each successive year. Upon completion of an assumption study, the Company revises its assumptions to reflect its current best estimate, thereby changing its estimate of projected account values and the related EGPs in the DAC, sales inducement and unearned revenue reserve amortization models as well as the SOP 03-1 reserving models. The DAC asset, as well as the sales inducement asset, unearned revenue reserves and SOP 03-1 reserves are adjusted with an offsetting benefit or charge to income to reflect such changes in the period of the revision, a process known as "unlocking". An unlock that results in an after-tax benefit generally occurs as a result of actual experience or future expectations of product profitability being favorable F-20 compared to previous estimates. An unlock that results in an after-tax charge generally occurs as a result of actual experience or future expectations of product profitability being unfavorable compared to previous estimates. In addition to when a comprehensive assumption study is completed, revisions to best estimate assumptions used to estimate future gross profits are necessary when the EGPs in the Company's models fall outside of an independently determined reasonable range of EGPs. The Company performs a quantitative process each quarter to determine the reasonable range of EGPs. This process involves the use of internally developed models, which run a large number of stochastically determined scenarios of separate account fund performance. Incorporated in each scenario are assumptions with respect to lapse rates, mortality, and expenses, based on the Company's most recent assumption study. These scenarios are run for the Company's individual variable annuity businesses, the Company's Retirement Plans businesses and for the Company's individual variable universal life business and are used to calculate statistically significant ranges of reasonable EGPs. The statistical ranges produced from the stochastic scenarios are compared to the present value of EGPs used in the Company's models. If EGPs used in the Company's models fall outside of the statistical ranges of reasonable EGPs, an "unlock" would be necessary. If EGPs used in the Company's models fall inside of the statistical ranges of reasonable EGPs, the Company will not solely rely on the results of the quantitative analysis to determine the necessity of an unlock. In addition, the Company considers, on a quarterly basis, other qualitative factors such as market, product, regulatory and policyholder behavior trends and may also revise EGPs if those trends are expected to be significant and were not or could not be included in the statistically significant ranges of reasonable EGPs. UNLOCK RESULTS During the third quarter of 2007 and the fourth quarter of 2006, the Company completed an annual, comprehensive study of assumptions underlying EGPs, resulting in an "unlock". The study covered all assumptions, including mortality, lapses, expenses, hedging costs, and separate account returns, in substantially all product lines. The new best estimate assumptions were applied to the current in-force to project future gross profits. The after-tax impact on the Company's assets and liabilities as a result of the unlock during the third quarter of 2007 was as follows:
Unearned Death Sales DAC and Revenue Benefit Inducement PVFP Reserves Reserves (1) Assets Total (2) --------------------------------------------------------------------------------------------------------------------------------- SEGMENT AFTER-TAX (CHARGE) BENEFIT Retail $181 $(5) $(4) $9 $181 Retirement Plans (9) -- -- -- (9) Institutional 1 -- -- -- 1 Individual Life 24 (8) -- -- 16 ------ ----- ---- ---- ------ TOTAL $197 $(13) $(4) $9 $189 ------ ----- ---- ---- ------
(1) As a result of the unlock, death benefit reserves, in Retail, decreased $4, pre-tax, offset by a decrease of $10,pre-tax, in reinsurance recoverables. (2) The following were the most significant contributors to the unlock amounts recorded during the third quarter of 2007: - Actual separate account returns were above our aggregated estimated return. - During the third quarter of 2007, the Company estimated gross profits using the mean of EGPs derived from a set of stochastic scenarios that have been calibrated to our estimated separate account return as compared to prior year where we used a single deterministic estimation. The impact of this change in estimation was a benefit of $20, after-tax, for variable annuities. - As part of its continual enhancement to its assumption setting processes and in connection with its assumption study, the Company included dynamic lapse behavior assumptions. Dynamic lapses reflect that lapse behavior will be different depending upon market movements. The impact of this assumption change along with other base lapse rate changes was an approximate benefit of $40, after-tax, for variable annuities. As a result of the unlock in the third quarter of 2007, the Company expects an immaterial change to total Company DAC amortization in 2008. F-21 The after-tax impact on the Company's assets and liabilities as a result of the unlock during the fourth quarter of 2006 was as follows:
Unearned Death Sales DAC and Revenue Benefit Inducement PVFP Reserves Reserves (1) Assets Total --------------------------------------------------------------------------------------------------------------------------------- SEGMENT AFTER-TAX (CHARGE) BENEFIT Retail $(116) $5 $(10) $3 $(118) Retirement Plans 20 -- -- -- 20 Individual Life (46) 30 -- -- (16) ------- ---- ----- ---- ------- TOTAL $(142) $35 $(10) $3 $(114) ------- ---- ----- ---- -------
(1) As a result of the unlock, death benefit reserves, in the Retail, increased $294, offset by an increase of $279 in reinsurance recoverables. An "unlock" only revises EGPs to reflect current best estimate assumptions. The Company must also test the aggregate recoverability of the DAC and sales inducement assets by comparing the amounts deferred to the present value of total EGPs. In addition, the Company routinely stress tests its DAC and sales inducement assets for recoverability against severe declines in its separate account assets, which could occur if the equity markets experienced a significant sell-off, as the majority of policyholders' funds in the separate accounts is invested in the equity market. As of December 31, 2007, the Company believed individual variable annuity separate account assets could fall, through a combination of negative market returns, lapses and mortality, by at least 54%, before portions of its DAC and sales inducement assets would be unrecoverable. RESERVE FOR FUTURE POLICY BENEFITS AND UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Liabilities for the Company's group life and disability contracts as well its individual term life insurance policies include amounts for unpaid losses and future policy benefits. Liabilities for unpaid losses include estimates of amounts to fully settle known reported claims as well as claims related to insured events that the Company estimates have been incurred but have not yet been reported. Liabilities for future policy benefits are calculated by the net level premium method using interest, withdrawal and mortality assumptions appropriate at the time the policies were issued. The methods used in determining the liability for unpaid losses and future policy benefits are standard actuarial methods recognized by the American Academy of Actuaries. For the tabular reserves, discount rates are based on the Company's earned investment yield and the morbidity/mortality tables used are standard industry tables modified to reflect the Company's actual experience when appropriate. In particular, for the Company's group disability known claim reserves, the morbidity table for the early durations of claim is based exclusively on the Company's experience, incorporating factors such as gender, elimination period and diagnosis. These reserves are computed such that they are expected to meet the Company's future policy obligations. Future policy benefits are computed at amounts that, with additions from estimated premiums to be received and with interest on such reserves compounded annually at certain assumed rates, are expected to be sufficient to meet the Company's policy obligations at their maturities or in the event of an insured's death. Changes in or deviations from the assumptions used for mortality, morbidity, expected future premiums and interest can significantly affect the Company's reserve levels and related future operations and, as such, provisions for adverse deviation are built into the long-tailed liability assumptions. Certain contracts classified as universal life-type may also include additional death or other insurance benefit features, such as guaranteed minimum death benefits offered with variable annuity contracts or no lapse guarantees offered with universal life insurance contracts. An additional liability is established for these benefits by estimating the expected present value of the benefits in excess of the projected account value in proportion to the present value of total expected assessments. Excess benefits are accrued as a liability as actual assessments are recorded. Determination of the expected value of excess benefits and assessments are based on a range of scenarios and assumptions including those related to market rates of return and volatility, contract surrender rates and mortality experience. Revisions to assumptions are made consistent with the Company's process for an unlock. See Life Deferred Policy Acquisition Costs and Present value of Future Benefits in this Note. OTHER POLICYHOLDER FUNDS AND BENEFITS PAYABLE The Company has classified its fixed and variable annuities, 401(k), certain governmental annuities, private placement life insurance ("PPLI"), variable universal life insurance, universal life insurance and interest sensitive whole life insurance as universal life-type contracts. The liability for universal life-type contracts is equal to the balance that accrues to the benefit of the policyholders as of the financial statement date (commonly referred to as the account value), including credited interest, amounts that have been assessed to compensate the Company for services to be performed over future periods, and any amounts previously assessed against policyholders that are refundable on termination of the contract. F-22 The Company has classified its institutional and governmental products, without life contingencies, including funding agreements, certain structured settlements and guaranteed investment contracts, as investment contracts. The liability for investment contracts is equal to the balance that accrues to the benefit of the contract holder as of the financial statement date, which includes the accumulation of deposits plus credited interest, less withdrawals and amounts assessed through the financial statement date. Contract holder funds include funding agreements held by VIE issuing medium-term notes. REVENUE RECOGNITION For investment and universal life-type contracts, the amounts collected from policyholders are considered deposits and are not included in revenue. Fee income for universal life-type contracts consists of policy charges for policy administration, cost of insurance charges and surrender charges assessed against policyholders' account balances and are recognized in the period in which services are provided. For the Company's traditional life and group disability products premiums are recognized as revenue when due from policyholders. FOREIGN CURRENCY TRANSLATION Foreign currency translation gains and losses are reflected in stockholder's equity as a component of accumulated other comprehensive income. The Company's assumed foreign balance sheet accounts are translated at the exchange rates in effect at each year end and income statement accounts are translated at the average rates of exchange prevailing during the year. The national currencies of the international operations are generally their functional currencies. DIVIDENDS TO POLICYHOLDERS Policyholder dividends are paid to certain policies, which are referred to as participating policies. Such dividends are accrued using an estimate of the amount to be paid based on underlying contractual obligations under policies and applicable state laws. Participating life insurance in-force accounted for 7%, 3% and 3% as of December 31, 2007, 2006 and 2005, respectively, of total life insurance in-force. Dividends to policyholders were $11, $22 and $37 for the years ended December 31, 2007, 2006 and 2005, respectively. There were no additional amounts of income allocated to participating policyholders. If limitations exist on the amount of net income from participating life insurance contracts that may be distributed to stockholder's, the policyholder's share of net income on those contracts that cannot be distributed is excluded from stockholder's equity by a charge to operations and a credit to a liability. REINSURANCE Through both facultative and treaty reinsurance agreements, the Company cedes a share of the risks it has underwritten to other insurance companies. Assumed reinsurance refers to the Company's acceptance of certain insurance risks that other insurance companies have underwritten. Reinsurance accounting is followed for ceded and assumed transactions when the risk transfer provisions of SFAS 113, "Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration Contracts," have been met. To meet risk transfer requirements, a reinsurance contract must include insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss to the reinsurer. Earned premiums and incurred losses and loss adjustment expenses reflect the net effects of ceded and assumed reinsurance transactions. Included in other assets are prepaid reinsurance premiums, which represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance contracts. Reinsurance recoverables include balances due from reinsurance companies for paid and unpaid losses and loss adjustment expenses and are presented net of an allowance for uncollectible reinsurance. INCOME TAXES The Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. 2. SEGMENT INFORMATION The Company has four reporting segments: Retail Products Group ("Retail"), Retirement Plans ("Retirement"), Institutional Solutions Group ("Institutional") and Individual Life. In 2007, the Company changed its reporting for realized gains and losses, as well as credit risk charges previously allocated between Other and each of the reporting segments. All segment data for prior reporting periods have been adjusted to reflect the current segment reporting. Retail offers individual variable and fixed market value adjusted ("MVA") annuities. Retirement Plans provides products and services to corporations pursuant to Section 401(k) and products and services to municipalities and not-for-profit organizations under Section 457 and 403(b) of the IRS code. F-23 Institutional primarily offers institutional liability products, including stable value products, structured settlements and institutional annuities (primarily terminal funding cases), as well as variable Private Placement Life Insurance ("PPLI") owned by corporations and high net worth individuals. Furthermore, Institutional offers additional individual products including structured settlements, single premium immediate annuities and longevity assurance. Individual Life sells a variety of life insurance products, including variable universal life, universal life, interest sensitive whole life and term life. The Company includes in an Other category its leveraged PPLI product line of business; corporate items not directly allocated to any of its reporting segments; intersegment eliminations, guaranteed minimum income benefit ("GMIB'), guaranteed minimum death benefit ("GMDB") and guaranteed minimum accumulation benefit ("GMAB") reinsurance assumed from Hartford Life Insurance KK ("HLIKK"), a related party and subsidiary of Hartford Life, as well as certain group benefit products, including group life and group disability insurance that is directly written by the Company and for which nearly half is ceded to its parent, HLA. The accounting policies of the reportable operating segments are the same as those described in the summary of significant accounting policies in Note 1. The Company evaluates performance of its segments based on revenues, net income and the segment's return on allocated capital. Each operating segment is allocated corporate surplus as needed to support its business. The following tables represent summarized financial information concerning the Company's segments.
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 -------------------------------------------------------------------------------- REVENUES BY PRODUCT LINE REVENUES LIFE Earned premiums, fees, and other considerations RETAIL Individual annuity: Individual variable annuity $2,103 $1,835 $1,629 Fixed / MVA Annuity 1 3 (2) Other -- -- -- -------- -------- -------- Total Retail 2,104 1,838 1,627 RETIREMENT PLANS 401(k) 179 154 106 403(b)/457 50 45 43 -------- -------- -------- Total Retirement Plans 229 199 149 INSTITUTIONAL IIP 1,012 623 516 PPLI 224 103 105 -------- -------- -------- Total Institutional 1,236 726 621 INDIVIDUAL LIFE Total Individual Life 760 780 716 OTHER 163 117 147 -------- -------- -------- Total Life premiums, fees, and other considerations 4,492 3,660 3,260 Net investment income 3,048 2,728 2,569 Net realized capital losses (934) (299) 75 -------- -------- -------- TOTAL LIFE 6,606 6,089 5,904 -------- -------- --------
NET INCOME (LOSS) 2007 2006 2005 --------------------------------------------------------------------------------- Retail $663 $397 $480 Retirement Plans 53 94 73 Institutional 7 69 107 Individual Life 169 137 157 Other (152) 34 92 ------- ------- --- TOTAL NET INCOME $740 $731 $909 ------- ------- ---
F-24
2007 2006 2005 -------------------------------------------------------------------------------- NET INVESTMENT INCOME Retail $815 $835 $934 Retirement Plans 355 326 311 Institutional 1,226 987 784 Individual Life 331 293 272 Other 321 287 268 ------- ------- ------- TOTAL NET INVESTMENT INCOME $3,048 $2,728 $2,569 ------- ------- ------- AMORTIZATION OF DEFERRED POLICY ACQUISITION AND PRESENT VALUE OF FUTURE PROFITS Retail $316 $913 $685 Retirement Plans 58 (4) 31 Institutional 23 32 32 Individual Life 117 235 198 Other 1 (1) (1) ------- ------- ------- TOTAL AMORTIZATION OF DAC $515 $1,175 $945 ------- ------- ------- INCOME TAX EXPENSE (BENEFIT) Retail $137 $(40) $11 Retirement Plans 14 35 22 Institutional (5) 26 49 Individual Life 81 60 73 Other (1) (59) 22 52 ------- ------- ------- TOTAL INCOME TAX EXPENSE $168 $103 $207 ------- ------- -------
DECEMBER 31, 2007 2006 -------------------------------------------------------------------------------- ASSETS Retail $135,244 $129,158 Retirement Plans 28,157 24,596 Institutional 77,990 65,897 Individual Life 15,151 13,810 Other 9,670 8,009 ----------- ----------- TOTAL ASSETS $266,212 $241,470 ----------- ----------- DAC Retail $5,182 $4,561 Retirement Plans 658 543 Institutional 143 111 Individual Life 2,411 2,119 Other (1) -- ----------- ----------- TOTAL DAC $8,393 $7,334 ----------- ----------- RESERVE FOR FUTURE POLICY BENEFITS Retail $944 $845 Retirement Plans 333 357 Institutional 6,657 5,711 Individual Life 685 575 Other 777 721 ----------- ----------- TOTAL RESERVE FOR FUTURE POLICY BENEFITS $9,396 $8,209 ----------- ----------- OTHER POLICYHOLDER FUNDS Retail $15,391 $15,008 Retirement Plans 5,591 5,544 Institutional 12,455 11,401 Individual Life 5,210 4,845 Other 3,730 3,393 ----------- ----------- TOTAL OTHER POLICYHOLDER FUNDS $42,377 $40,191 ----------- -----------
F-25 3. INVESTMENTS AND DERIVATIVE INSTRUMENTS
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 -------------------------------------------------------------------------------- COMPONENTS OF NET INVESTMENT INCOME Fixed maturities (1) $2,710 $2,459 $2,275 Policy loans 132 140 142 Mortgage loans on real estate 227 126 64 Other investments 35 53 125 Gross investment income 3,104 2,778 2,606 Less: Investment expenses 56 50 37 ------- ------- ------- NET INVESTMENT INCOME $3,048 $2,728 $2,569 ------- ------- ------- COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES) Fixed maturities $(248) $(105) $57 Equity securities (46) (3) 8 Foreign currency transaction remeasurements 102 18 157 Derivatives and other (2) (742) (209) (147) ------- ------- ------- NET REALIZED CAPITAL GAINS (LOSSES) $(934) $(299) $75 ------- ------- -------
(1) Includes income on short-term bonds. (2) Primarily consists of changes in fair value on non-qualifying derivatives, changes in fair value of certain derivatives in fair value hedge relationships and hedge ineffectiveness on qualifying derivative instruments.
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 -------------------------------------------------------------------------------- COMPONENTS OF NET UNREALIZED GAINS (LOSSES) ON AVAILABLE-FOR-SALE SECURITIES Fixed maturities $(597) $800 $986 Equity securities (42) 8 7 Net unrealized gains credited to policyholders 3 (4) (9) ------- ------- ------- Net unrealized gains (636) 804 984 Deferred income taxes and other items (304) 304 407 ------- ------- ------- Net unrealized gains (losses), net of tax -- end of year (332) 500 577 Net unrealized gains, net of tax -- beginning of year 500 577 1,124 ------- ------- ------- CHANGE IN UNREALIZED LOSSES ON AVAILABLE-FOR-SALE SECURITIES $(832) $(77) $(547) ------- ------- -------
F-26 COMPONENTS OF FIXED MATURITY INVESTMENTS
AS OF DECEMBER 31, 2007 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE --------------------------------------------------------------------------------------------------------------------------------- BONDS AND NOTES ABS $7,602 $24 $(519) $7,107 CMOs Agency backed 793 18 (3) 808 Non-agency backed 411 4 (2) 413 Commercial mortgage-backed securities ("CMBS") 11,515 159 (572) 11,102 Corporate 21,928 807 (571) 22,164 Government/Government agencies Foreign 465 35 (2) 498 United States 516 14 (1) 529 MBS 1,750 15 (15) 1,750 States, municipalities and political subdivisions 1,226 32 (20) 1,238 Redeemable preferred stock 2 2 (2) 2 --------- -------- --------- --------- TOTAL FIXED MATURITIES $46,208 $1,110 $(1,707) $45,611 --------- -------- --------- ---------
AS OF DECEMBER 31, 2006 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE --------------------------------------------------------------------------------------------------------------------------------- BONDS AND NOTES ABS $6,170 $38 $(41) $6,167 CMOs Agency backed 778 8 (5) 781 Non-agency backed 76 -- -- 76 Commercial mortgage-backed securities ("CMBS") 10,806 146 (71) 10,881 Corporate 21,982 911 (206) 22,687 Government/Government agencies Foreign 568 44 (4) 608 United States 542 2 (5) 539 MBS 1,808 6 (31) 1,783 States, municipalities and political subdivisions 1,114 23 (15) 1,122 Redeemable preferred stock 2 -- -- 2 --------- -------- ------- --------- TOTAL FIXED MATURITIES $43,846 $1,178 $(378) $44,646 --------- -------- ------- ---------
The amortized cost and estimated fair value of fixed maturity investments at December 31, 2007 by contractual maturity year are shown below.
AMORTIZED COST FAIR VALUE -------------------------------------------------------------------------------- MATURITY One year or less $767 $805 Over one year through five years 7,389 7,675 Over five years through ten years 6,041 5,994 Over ten years 21,455 21,059 Subtotal 35,652 35,533 ABS, MBS, and CMOs 10,556 10,078 --------- --------- TOTAL $46,208 $45,611 --------- ---------
Estimated maturities may differ from contractual maturities due to security call or prepayment provisions because of the potential for prepayment on certain mortgage- and asset-backed securities which is why ABS, MBS, and CMOs are not categorized by contractual maturity. The CMBS are categorized by contractual maturity because they generally are not subject to prepayment risk as these securities are generally structured to include forms of call protections such as yield maintenance charges, prepayment penalties or lockouts, and defeasance. F-27 SALES OF FIXED MATURITY AND AVAILABLE-FOR-SALE EQUITY SECURITY INVESTMENTS
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 -------------------------------------------------------------------------------- SALE OF FIXED MATURITIES Sale proceeds $12,415 $16,159 $15,784 Gross gains 246 210 302 Gross losses (135) (230) (218) SALE OF AVAILABLE-FOR-SALE EQUITY SECURITIES Sale proceeds $296 $249 $38 Gross gains 12 5 8 Gross losses (7) (5) -- --------- --------- ---------
CONCENTRATION OF CREDIT RISK The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company is not exposed to any concentration of credit risk of a single issuer greater than 10% of the Company's stockholder's equity other than U.S. government and certain U.S. government agencies. Other than U.S. government and U.S. government agencies, the Company's largest three exposures by issuer including multiple investment grade tranches of the same security as of December 31, 2007 were Wachovia Bank Commercial Mortgage Trust, Goldman Equity Office Properties and PARCS-R and as of December 31, 2006 were Wachovia Bank Commercial Mortgage Trust, General Electric Company, and Citigroup, Inc., which each comprise less than 1.0%, of total invested assets. Wachovia Bank Commercial Mortgage Trust, Goldman Equity Office Properties, and PARCS-R include multiple investment grade tranches. The Company's largest three exposures by sector, as of December 31, 2007 and 2006, were commercial mortgage and real estate, financial services and residential mortgages which comprised approximately 28%, 14% and 10%, respectively, for 2007 and 26%, 13% and 8%, respectively, for 2006, of total invested assets. The Company's investments in states, municipalities and political subdivisions are geographically dispersed throughout the United States. As of December 31, 2007 and 2006, the largest concentrations were in California, Oregon, and Illinois which each comprised less than 1% of total invested assets, respectively. SECURITY UNREALIZED LOSS AGING The Company has a security monitoring process overseen by a committee of investment and accounting professionals that, on a quarterly basis, identifies securities in an unrealized loss position that could potentially be other-than-temporarily impaired. For further discussion regarding the Company's other-than-temporary impairment policy, see the Investments section of Note 2. Due to the issuers' continued satisfaction of the securities' obligations in accordance with their contractual terms and the expectation that they will continue to do so, management's intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in market value, as well as the evaluation of the fundamentals of the issuers' financial condition and other objective evidence, the Company believes that the prices of the securities in the sectors identified in the tables below were temporarily depressed as of December 31, 2007 and 2006. F-28 The following tables present amortized cost, fair value and unrealized losses for the Company's fixed maturity and available-for-sale equity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2007.
2007 LESS THAN 12 MONTHS 12 MONTHS OR MORE AMORTIZED FAIR UNREALIZED AMORTIZED FAIR UNREALIZED COST VALUE LOSSES COST VALUE LOSSES ----------------------------------------------------------------------------------------------------------------------------------- ABS $6,271 $5,789 $(482) $497 460 $(37) CMOs Agency backed 270 268 (2) 60 59 (1) Non-agency backed 97 96 (1) 33 32 (1) CMBS 5,493 5,010 (483) 1,808 1,719 (89) Corporate 8,354 7,920 (434) 2,554 2,417 (137) Government/Government agencies Foreign 86 84 (2) 43 43 -- United States 136 135 (1) 7 7 -- MBS 49 48 (1) 760 746 (14) States, municipalities and political subdivisions 383 373 (10) 189 179 (10) Redeemable preferred stock 4 2 (2) -- -- -- -------- -------- -------- ------- -------- ------- TOTAL FIXED MATURITIES 21,143 19,725 (1,418) 5,951 5,662 (289) Common stock 106 102 (4) -- -- -- Non-redeemable preferred stock 509 463 (46) 20 19 (1) -------- -------- -------- ------- -------- ------- TOTAL EQUITY 615 565 (50) 20 19 (1) -------- -------- -------- ------- -------- ------- TOTAL TEMPORARILY IMPAIRED SECURITIES $21,758 $20,290 $(1,468) $5,971 $5,681 $(290) -------- -------- -------- ------- -------- -------
2007 TOTAL AMORTIZED FAIR UNREALIZED COST VALUE LOSSES ----------------------------------------------------------------------------------- ABS $6,768 $6,249 $(519) CMOs Agency backed 330 327 (3) Non-agency backed 130 128 (2) CMBS 7,301 6,729 (572) Corporate 10,908 10,337 (571) Government/Government agencies Foreign 129 127 (2) United States 143 142 (1) MBS 809 794 (15) States, municipalities and political subdivisions 572 552 (20) Redeemable preferred stock 4 2 (2) --------- --------- --------- TOTAL FIXED MATURITIES 27,094 25,387 (1,707) Common stock 106 102 (4) Non-redeemable preferred stock 529 482 (47) --------- --------- --------- TOTAL EQUITY 635 584 (51) --------- --------- --------- TOTAL TEMPORARILY IMPAIRED SECURITIES $27,729 $25,971 $(1,758) --------- --------- ---------
As of December 31, 2007, fixed maturities, comprised of approximately 2,920 securities, accounted for approximately 97% of the Company's total unrealized loss amount. The remaining 3% primarily consisted of non-redeemable preferred stock in the financial services sector, the majority of which were in an unrealized loss position for less than six months. Other-than-temporary impairments for certain ABS and CMBS are recognized if the fair value of the security, as determined by external pricing sources, is less than its cost or amortized cost and there has been a decrease in the present value of the expected cash flows since the last reporting period. Based on management's best estimate of future cash flows, there were no such ABS and CMBS in an unrealized loss position as of December 31, 2007 that were deemed to be other-than-temporarily impaired. Fixed maturity securities in an unrealized loss position for less than twelve months were comprised of approximately 1,850 securities. The majority of these securities are investment grade fixed maturities depressed due to changes in credit spreads from the date of purchase. As of December 31, 2007, 81% were securities priced at or greater than 90% of amortized cost. The remaining securities were primarily composed of CMBS, ABS, and corporate securities in the financial services sector, of F-29 which 78% had a credit rating of A or above as of December 31, 2007. The severity of the depression resulted from credit spread widening due to tightened lending conditions and the market's flight to quality securities. Fixed maturity securities depressed for twelve months or more as of December 31, 2007 were comprised of approximately 1,160 securities, with the majority of the unrealized loss amount relating to CMBS, corporate fixed maturities within the financial services sector and ABS. A description of the events contributing to the security types' unrealized loss position and the factors considered in determining that recording an other-than-temporary impairment was not warranted are outlined below. CMBS -- The CMBS in an unrealized loss position for twelve months or more as of December 31, 2007 were primarily the result of credit spreads widening from the security purchase date. The recent price depression resulted from widening credit spreads primarily due to tightened lending conditions and the market's flight to quality securities. However, commercial real estate fundamentals still appear strong with delinquencies, defaults and losses holding to relatively low levels. Substantially all of these securities are investment grade securities with an average price of 96% of amortized cost as of December 31, 2007. Future changes in fair value of these securities are primarily dependent on sector fundamentals, credit spread movements, and changes in interest rates. CORPORATE -- Corporate securities in an unrealized loss position for twelve months or more as of December 31, 2007 were primarily the result of credit spreads widening from the security purchase date primarily due to tightened lending conditions and the market's flight to quality securities. Substantially all of these securities are investment grade securities with an average price of 96% of amortized cost. Future changes in fair value of these securities are primarily dependent on the extent of future issuer credit losses, return of liquidity, and changes in general market conditions, including interest rates and credit spread movements. MORTGAGE LOANS The carrying value of mortgage loans on real estate was $4.2 billion and $2.6 billion as of December 31, 2007 and 2006, respectively. The Company's mortgage loans are collateralized by a variety of commercial and agricultural properties. The mortgage loans are diversified both geographically throughout the United States and by property type. At December 31, 2007 and 2006, the Company held no impaired, restructured, delinquent or in-process-of-foreclosure mortgage loans. The Company had no valuation allowance for mortgage loans at December 31, 2007 and 2006. The following table presents commercial mortgage loans by region and property type. COMMERCIAL MORTGAGE LOANS ON REAL ESTATE BY REGION
DECEMBER 31, 2007 DECEMBER 31, 2006 CARRYING VALUE PERCENT OF TOTAL CARRYING VALUE PERCENT OF TOTAL ------------------------------------------------------------------------------------------------------------------------ East North Central $101 2.4% $94 3.6% East South Central -- -- -- -- Middle Atlantic 503 12.1% 470 17.9% Mountain 101 2.4% 24 0.9% New England 348 8.4% 166 6.3% Pacific 959 23.0% 523 19.9% South Atlantic 749 18.0% 551 20.9% West North Central 25 0.6% 6 0.2% West South Central 179 4.3% 100 3.8% Other (1) 1,201 28.8% 697 26.5% -------- ------- -------- ------- TOTAL $4,166 100.0% $2,631 100.0% -------- ------- -------- -------
(1) Includes multi-regional properties. COMMERCIAL MORTGAGE LOANS ON REAL ESTATE BY PROPERTY TYPE
DECEMBER 31, 2007 DECEMBER 31, 2006 CARRYING VALUE PERCENT OF TOTAL CARRYING VALUE PERCENT OF TOTAL ------------------------------------------------------------------------------------------------------------------------ Industrial $424 10.2% $298 11.3% Lodging 424 10.2% 413 15.7% Agricultural 236 5.7% 58 2.2% Multifamily 708 17.0% 250 9.5% Office 1,550 37.2% 1,130 43.0% Retail 702 16.8% 352 13.4% Other 122 2.9% 130 4.9% -------- ------- -------- ------- TOTAL $4,166 100.0% $2,631 100.0% -------- ------- -------- -------
F-30 VARIABLE INTEREST ENTITIES ("VIE") In the normal course of business, the Company becomes involved with variable interest entities primarily as a collateral manager and through normal investment activities. The Company's involvement includes providing investment management and administrative services, and holding ownership or other investment interests in the entities. The following table summarizes the total assets, liabilities and maximum exposure to loss relating to VIEs for which the Company has concluded it is the primary beneficiary. Accordingly, the results of operations and financial position of these VIEs are included along with the corresponding minority interest liabilities in the accompanying consolidated financial statements.
DECEMBER 31, 2007 DECEMBER 31, 2006 CARRYING MAXIMUM EXPOSURE CARRYING MAXIMUM EXPOSURE VALUE (1) LIABILITY (2) TO LOSS (3) VALUE (1) LIABILITY (2) TO LOSS (3) ------------------------------------------------------------------------------------------------------------------------------ Collateralized loan obligations ("CLOs") and other funds (4) $359 $199 $171 $296 $167 $136 Limited partnerships 309 121 150 103 15 75 Other investments (5) 65 -- 81 -- -- -- ----- ----- ----- ----- ----- ----- TOTAL (6) $733 $320 $402 $399 $182 $211 ----- ----- ----- ----- ----- -----
(1) The carrying value of CLOs and other funds and Other investments is equal to fair value. Limited partnerships are accounted for under the equity method. (2) Creditors have no recourse against the Company in the event of default by the VIE. (3) The maximum exposure to loss does not include changes in fair value or the Company's proportionate shares of earnings associated with limited partnerships accounted for under the equity method. The Company's maximum exposure to loss as of December 31, 2007 and 2006 based on the carrying value was $413 and $217, respectively. The Company's maximum exposure to loss as of December 31, 2007 and 2006 based on the Comany's initial co-investment or amortized cost basis was $402 and $211, respectively. (4) The Company provides collateral management services and earns a fee associated with these structures. (5) Other investments include investment structures that are backed by preferred securities. (6) As of December 31, 2007 and 2006, the Company had relationships with six and four VIEs, respectively, where the Company was the primary beneficiary. In addition to the VIEs described above, as of December 31, 2007, the Company held variable interests in four VIEs, where the Company is not the primary beneficiary and as a result, these are not consolidated by the Company. As of December 31, 2007, these VIEs included two collateralized bond obligations and two CLOs which are managed by HIMCO. These investments have been held by the Company for a period of one year. The maximum exposure to loss consisting of the Company's investments based on the amortized cost of the non-consolidated VIEs was approximately $100 as of December 31, 2007 For the year ended December 31, 2007 the Company recognized $1 of the maximum exposure to loss representing an other-than-temporary impairment recorded as a realized capital loss. HIMCO is the collateral manager for four market value CLOs (included in the VIE discussion above) that invest in senior secured bank loans through total return swaps. For two of the CLOs, the Company has determined it is the primary beneficiary and accordingly consolidates the transactions. The maximum exposure to loss for these two consolidated CLOs, which is included in the "Collateral loan obligations and other funds" line in the table above, is $74 of which the Company has recognized a realized capital loss of $19. The Company is not the primary beneficiary for the remaining two CLOs, but maintains a significant involvement in the transactions. The maximum exposure to loss for these remaining two CLOs, included in the $100 in the preceding paragraph, is $14. The CLOs have triggers that allow the total return swap counterparty to terminate the transactions if the fair value of the aggregate referenced bank loan portfolio declines below a stated level. DERIVATIVE INSTRUMENTS The Company utilizes a variety of derivative instruments, including swaps, caps, floors, forwards, futures and options to achieve one of four Company approved objectives: to hedge risk arising from interest rate, equity market, credit spread including issuer default, price or currency exchange rate risk or volatility; to manage liquidity; to control transaction costs; or to enter into replication transactions. F-31 On the date the derivative contract is entered into, the Company designates the derivative as a fair-value hedge, cash-flow hedge, foreign-currency hedge, net investment hedge, or held for other investment and/or risk management purposes. The Company's derivative transactions are used in strategies permitted under the derivatives use plans required by the State of Connecticut and the State of New York insurance departments. Derivative instruments are recorded in the consolidated balance sheets at fair value. Asset and liability values are determined by calculating the net position, taking into account income accruals and cash collateral held, for each derivative counterparty by legal entity and are presented as of December 31, as follows:
ASSET VALUES LIABILITY VALUES 2007 2006 2007 2006 -------------------------------------------------------------------------------- Other investments $446 $271 $ -- $ -- Reinsurance recoverables 128 -- -- 22 Other policyholder funds and benefits payable 2 172 801 -- Consumer notes -- -- 5 1 Other liabilities -- -- 354 589 ------ ------ -------- ------ TOTAL $576 $443 $1,160 $612 ------ ------ -------- ------
The following table summarizes the derivative instruments used by the Company and the primary hedging strategies to which they relate. Derivatives in the Company's separate accounts are not included because the associated gains and losses accrue directly to policyholders. The notional value of derivative contracts represents the basis upon which pay or receive amounts are calculated and are not reflective of credit risk. The fair value amounts of derivative assets and liabilities are presented on a net basis as of December 31, 2007 and 2006. The total ineffectiveness of all cash-flow, fair-value and net investment hedges and total change in value of other derivative-based strategies which do not qualify for hedge accounting treatment, including periodic derivative net coupon settlements, are presented below on an after-tax basis for the years ended December 31, 2007 and 2006. F-32
HEDGE INEFFECTIVENESS, NOTIONAL AMOUNT FAIR VALUE AFTER-TAX HEDGING STRATEGY 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------------------------------------------------- CASH-FLOW HEDGES Interest rate swaps Interest rate swaps are primarily used to convert interest receipts on floating-rate fixed maturity securities to fixed rates. These derivatives are predominantly used to better match cash receipts from assets with cash disbursements required to fund liabilities. Interest rate swaps are also used to hedge a portion of the Company's floating-rate guaranteed investment contracts. These derivatives convert the floating-rate guaranteed investment contract payments to a fixed rate to better match the cash receipts earned from the supporting investment portfolio. $4,019 $4,560 $73 $(19) $1 $(8) Foreign currency swaps Foreign currency swaps are used to convert foreign denominated cash flows associated with certain foreign denominated fixed maturity investments to U.S. dollars. The foreign fixed maturities are primarily denominated in euros and are swapped to minimize cash flow fluctuations due to changes in currency rates. In addition, foreign currency swaps are also used to convert foreign denominated cash flows associated with certain liability payments to U.S. dollars in order to minimize cash flow fluctuations due to changes in currency rates. 1,226 1,420 (269) (318) (1) (4) FAIR-VALUE HEDGES Interest rate swaps Interest rate swaps are used to hedge the changes in fair value of certain fixed rate liabilities and fixed maturity securities due to changes in the benchmark interest rate, LIBOR. 3,594 3,303 (38) 7 -- -- Foreign currency swaps Foreign currency swaps are used to hedge the changes in fair value of certain foreign denominated fixed rate liabilities due to changes in foreign currency rates. 696 492 25 (9) -- -- ----------- --------- ------- ------- ------- --------- TOTAL CASH-FLOW AND FAIR-VALUE HEDGES $9,535 $9,775 $(209) $(339) $ -- $(12) ----------- --------- ------- ------- ------- ---------
F-33
DERIVATIVE CHANGE IN VALUE, NOTIONAL AMOUNT FAIR VALUE AFTER-TAX HEDGING STRATEGY 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------------------------------------------------- OTHER INVESTMENT AND/OR RISK MANAGEMENT ACTIVITIES Interest rate swaps, caps and floors The Company uses interest rate swaps, caps and floors to manage duration risk between assets and liabilities in certain portfolios. In addition, the Company enters into interest rate swaps to terminate existing swaps in hedging relationships, thereby offsetting the changes in value of the original swap. $6,666 $4,911 $ -- $(15) $15 $(27) Interest rate forwards The Company uses interest rate forwards to replicate the purchase of mortgage-backed securities to manage duration risk and liquidity. -- 644 -- (4) (1) 5 Foreign currency swaps and forwards The Company enters into foreign currency swaps and forwards to hedge the foreign currency exposures in certain of its foreign fixed maturity investments. 199 162 (8) (11) (5) (7) Credit default and total return swaps The Company enters into credit default swap agreements in which the Company assumes credit risk of an individual entity, referenced index or asset pool. These contracts entitle the Company to receive a periodic fee in exchange for an obligation to compensate the derivative counterparty should a credit event occur on the part of the referenced security issuers. The maximum potential future exposure to the Company is the notional value of the swap contracts, which is $1,202 and $786, after-tax, as of December 31, 2007 and 2006, respectively. 1,849 1,209 (235) (92) (83) 20 The Company also assumes credit risk through total return and credit index swaps which reference a specific index or collateral portfolio. The maximum potential future exposure to the Company for the credit index swaps is the notional value and for the total return swaps is the cash collateral associated with the transaction, which has termination triggers that limit investment losses. As of December 31, 2007 and 2006, the maximum potential future exposure to the Company from such contracts is $639 and $707, after-tax, respectively. 1,731 1,629 (62) 1 (48) 1
F-34
DERIVATIVE CHANGE IN VALUE, NOTIONAL AMOUNT FAIR VALUE AFTER-TAX HEDGING STRATEGY 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------------------------------------------------- The Company enters into credit default swap agreements, in which the Company reduces credit risk to an individual entity. These contracts require the Company to pay a derivative counterparty a periodic fee in exchange for compensation from the counterparty should a credit event occur on the part of the referenced security issuer. The Company entered into these agreements as an efficient means to reduce credit exposure to specified issuers or sectors. $3,494 $1,882 $56 $(8) $38 $(6) Yen fixed annuity hedging instruments The Company enters into currency rate swaps and forwards to mitigate the foreign currency exchange rate and yen interest rate exposures associated with the yen denominated individual fixed annuity product. The associated liability is adjusted for changes in spot rates which was $(66) and $12, after-tax, as of December 31, 2007 and 2006, respectively, and offsets the derivative. 1,849 1,869 (115) (225) 34 (64) GMWB product derivatives The Company offers certain variable annuity products with a GMWB rider. The GMWB is a bifurcated embedded derivative that provides the policyholder with a GRB if the account value is reduced to zero through a combination of market declines and withdrawals. The GRB is generally equal to premiums less withdrawals. The policyholder also has the option, after a specified time period, to reset the GRB to the then-current account value, if greater. The notional value of the embedded derivative is the GRB balance. For a further discussion, see the Derivative Instruments section of Note 2. 44,852 37,769 (707) 53 (430) 79 GMWB reinsurance contracts Reinsurance arrangements are used to offset the Company's exposure to the GMWB embedded derivative for the lives of the host variable annuity contracts. The notional amount of the reinsurance contracts is the GRB amount. 6,579 7,172 128 (22) 83 (19) GMWB hedging instruments The Company enters into derivative contracts to economically hedge exposure to the volatility associated with the portion of the GMWB liabilities which are not reinsured. These derivative contracts include customized swaps, interest rate swaps and futures, and equity swaps, put and call options, and futures, on certain indices including the S&P 500 index, EAFE index, and NASDAQ index. 21,357 8,379 642 346 167 (77)
F-35
DERIVATIVE CHANGE IN VALUE, NOTIONAL AMOUNT FAIR VALUE AFTER-TAX HEDGING STRATEGY 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------------------------------------------------- Guaranteed minimum benefit product reinsurance contracts Reinsurance arrangements are used to offset the Company's exposure to the GMIB and GMAB embedded derivatives for the lives of the host variable annuity contracts. The reinsurance contracts are accounted for as free-standing derivative contracts. The notional amount of the reinsurance contracts is the yen denominated GRB balance value converted at the year-end yen to U.S. dollar foreign spot exchange rate. $18,065 $11,304 $(70) $119 $(101) $(35) Equity index swaps and options The Company offers certain equity indexed products, which may contain an embedded derivative that requires bifurcation. The Company enters into S&P index swaps and options to economically hedge the equity volatility risk associated with these embedded derivatives. In addition, the Company is exposed to bifurcated options embedded in certain fixed maturity investments. 149 25 (22) (1) 1 -- Statutory reserve hedging instruments The Company purchases one and two year S&P 500 put option contracts to economically hedge the statutory reserve impact of equity risk arising primarily from GMDB and GMWB obligations against a decline in the equity markets. 661 2,220 18 29 (14) (9) Coinsurance and modified coinsurance reinsurance contract During 2007, a subsidiary insurance company entered into a coinsurance with funds withheld and modified coinsurance reinsurance agreement ("Agreement") with an affiliate reinsurance company to provide statutory surplus relief for certain life insurance policies. The Agreement is accounted for as a financing transaction for GAAP and includes a compound embedded derivative. 655 -- -- -- -- -- TOTAL OTHER INVESTMENT AND/OR RISK MANAGEMENT ACTIVITIES $108,106 $79,175 $(375) $170 $(344) $(139) ----------- --------- ------- ------- ------- --------- TOTAL DERIVATIVES (1) $117,641 $88,950 $(584) $(169) $(344) $(151) ----------- --------- ------- ------- ------- ---------
(1) Derivative change in value includes hedge ineffectiveness for cash-flow and fair-value hedges and total change in value, including periodic derivative net coupon settlements, of derivatives held for other investment and/or risk management activities. The increase in notional amount since December 31, 2006, is primarily due to an increase in embedded derivatives associated with the GMWB rider, an increase in the related GMWB hedging derivatives, and an increase in the guaranteed minimum benefit riders reinsured from a related party. The Company offers certain variable annuity products with a GMWB rider, which is accounted for as an embedded derivative. For further discussion on the GMWB rider, refer to Note 8 of Notes to Consolidated Financial Statements. For further discussion of the internal reinsurance of the guaranteed minimum benefit riders, including GMIB and GMAB products, which are accounted for as free standing derivatives, refer to Note 8 and Note 16 of Notes to Consolidated Financial Statements. F-36 The increase in notional of GMWB embedded derivatives is primarily due to additional product sales. The increase in notional of GMWB hedging derivatives primarily related to two customized swap contracts that were entered into during 2007 to hedge certain risk components for the remaining term of certain blocks of non-reinsured GMWB riders. These customized derivative contracts provide protection from capital markets risks based on policyholder behavior assumptions as specified by the Company. As of December 31, 2007, these swaps had a notional value of $12.8 billion and a market value of $50. Due to the significance of the non-observable inputs associated with pricing these derivatives, the initial difference between the transaction price and modeled value was deferred in accordance with EITF No. 02-3 "Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities" and included in Other Assets in the Condensed Consolidated Balance Sheets. The deferred loss of $51 will be recognized in retained earnings upon the adoption of SFAS 157. In addition, the change in value of the customized derivatives due to the initial adoption of SFAS 157 of $35 will also be recorded in retained earnings with subsequent changes in fair value recorded in net realized capital gains (losses). The increase in notional of the reinsurance of guaranteed minimum benefit riders is primarily due GMIB product sales as well as depreciation of the U.S. dollar compared to the yen. Also contributing to the increase is a new reinsurance agreement entered into effective September 30, 2007, related to the GMAB rider, which is also accounted for as a free-standing derivative. The decrease in net fair value of derivative instruments since December 31, 2006, was primarily related to GMWB related derivatives, the internal reinsurance contract associated with GMIB, and credit derivatives, partially offset by the Japanese fixed annuity hedging instruments, interest rate derivatives, and foreign currency swaps. The GMWB related derivatives decreased in value primarily due to liability model assumption updates and modeling refinements made during the year, including those for dynamic lapse behavior and correlations of market returns across underlying indices as well as those to reflect newly reliable market inputs for volatility. The internal reinsurance contract associated with GMIB decreased in value primarily as a result of liability model refinements, a decrease in interest rates, and changes in equity volatility levels. Credit derivatives, including credit default swaps, credit index swaps, and bank loan total return swaps, declined in value due to credit spreads widening. Credit spreads widened primarily due to the deterioration in the U.S. housing market, tightened lending conditions, the market's flight to quality securities, as well as increased likelihood of a U.S. recession. The Japanese fixed annuity contract hedging instruments increased in value primarily due to appreciation of the Japanese yen in comparison to the U.S. dollar. Interest rate derivatives increased in value primarily due to the decline in interest rates. The fair value of foreign currency swaps hedging foreign bonds increased primarily as a result of the sale of certain swaps that were in loss positions due to the weakening of the U.S. dollar in comparison to certain foreign currencies. The total change in value for derivative-based strategies that do not qualify for hedge accounting treatment ("non-qualifying strategies"), including periodic derivative net coupon settlements, are reported in net realized capital gains (losses). For the years ended December 31, 2007 and 2006, these non-qualifying strategies resulted in after-tax net losses of $(344) and $(139), respectively. For the year ended December 31, 2007, net losses were primarily comprised of net losses on the GMWB related derivatives, net losses on credit derivatives, and net losses associated with the internal reinsurance of GMIB. The net losses on the GMWB rider embedded derivatives were primarily due to liability model assumption updates and modeling refinements made during the year, including those for dynamic lapse behavior and correlations of market returns across underlying indices, as well as other assumption updates made during the second quarter to reflect newly reliable market inputs for volatility. The net losses on credit derivatives, including credit default swaps, credit index swaps, and total return swaps, were due to credit spreads widening. The net losses associated with the internal reinsurance of GMIB were primarily driven by liability model refinements, a decrease in interest rates, and changes in equity volatility levels. For the year ended December 31, 2006, losses were largely comprised of losses on the reinsurance of GMIB, net losses on GMWB rider and hedging derivatives primarily driven by modeling refinements, net losses on interest rate derivatives due to an increase in interest rates, and net losses on the Japanese fixed annuity hedging instruments primarily due to an increase in Japan interest rates. As of December 31, 2007 and 2006, the after-tax deferred net (losses) on derivative instruments recorded in accumulated other comprehensive income (loss) ("AOCI") that are expected to be reclassified to earnings during the next twelve months are $(16) and $(8), respectively. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities that will occur over the next twelve months, at which time the Company will recognize the deferred net gains (losses) as an adjustment to interest income over the term of the investment cash flows. For the year ended December 31, 2007 and 2006, the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring. For the year ended December 31, 2005, after-tax net gains (losses) representing the total ineffectiveness of all cash-flow hedges was $(6) and fair-value hedges was $2, while there were no net gains (losses) on net investment hedges. F-37 SECURITIES LENDING AND COLLATERAL ARRANGEMENTS The Company participates in securities lending programs to generate additional income, whereby certain domestic fixed income securities are loaned for a specified period of time from the Company's portfolio to qualifying third parties, via two lending agents. Borrowers of these securities provide collateral of 102% of the market value of the loaned securities. Acceptable collateral may be in the form of cash or U.S. Government securities. The market value of the loaned securities is monitored and additional collateral is obtained if the market value of the collateral falls below 100% of the market value of the loaned securities. Under the terms of securities lending programs, the lending agent indemnifies the Company against borrower defaults. As of December 31, 2007 and 2006, the fair value of the loaned securities was approximately $2.1 billion and $1.6 billion, respectively, and was included in fixed maturities, equities, available for sale, and short-term investments in the consolidated balance sheets. The Company earns income from the cash collateral or receives a fee from the borrower. The Company recorded before-tax income from securities lending transactions, net of lending fees, of $6 and $2 for the years ended December 31, 2007 and 2006, respectively, which was included in net investment income. The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2007 and 2006, collateral pledged having a fair value of $355 and $441, respectively, was included in fixed maturities in the consolidated balance sheets. The classification and carrying amount of the loaned securities and the collateral pledged at December 31, 2007 and 2006, were as follows:
2007 2006 ------------------------------------------------------------ LOANED SECURITIES AND COLLATERAL PLEDGED ABS $4 $3 CMO 21 -- CMBS 244 169 Corporate 1,554 1,339 MBS 221 152 Government/Government Agencies Foreign 14 4 United States 303 327 Short-term 1 -- Preferred stock 53 -- -------- -------- TOTAL $2,415 $1,994 -------- --------
As of December 31, 2007 and 2006, the Company had accepted collateral relating to securities lending programs and collateral arrangements consisting of cash, U.S. Government and U.S. Government agency securities with a fair value of $3.3 billion and $1.8 billion, respectively. At December 31, 2007 and 2006, cash collateral of $3.1 billion and $1.6 billion, respectively, was invested and recorded in the consolidated balance sheets in fixed maturities with a corresponding amount predominately recorded in other liabilities. At December 31, 2007 and 2006, cash received from derivative counterparties of $175 and $109, respectively, was netted against the derivative assets values in accordance with FSP FIN 39-1 and recorded in other assets. For further discussion on the adoption of FSP FIN 39-1, see Note 2. The Company is only permitted by contract to sell or repledge the noncash collateral in the event of a default by the counterparty. The Company incurred no counterparty default for the years ended December 31, 2007 and 2006. As of December 31, 2007 and 2006, noncash collateral accepted was held in separate custodial accounts. SECURITIES ON DEPOSIT WITH STATES The Company is required by law to deposit securities with government agencies in states where it conducts business. As of December 31, 2007 and 2006, the fair value of securities on deposit was approximately $14 and $9, respectively. 4. FAIR VALUE OF FINANCIAL INSTRUMENTS SFAS No. 107 "Disclosure about Fair Value of Financial Instruments", requires disclosure of fair value information of financial instruments. For certain financial instruments where quoted market prices are not available, other independent valuation techniques and assumptions are used. Because considerable judgment is used, these estimates are not necessarily indicative of amounts that could be realized in a current market exchange. SFAS No. 107 excludes certain financial instruments from disclosure, including insurance contracts other than financial guarantees and investment contracts. The Company uses the following methods and assumptions in estimating the fair value of each class of financial instrument. Fair value for fixed maturities and marketable equity securities approximates those quotations published by applicable stock exchanges or received from other reliable sources. For policy loans and short-term investments, carrying amounts approximate fair value. Fair value of other investments, which primarily consist of partnership investments, is based on external market valuations from partnership management. F-38 For mortgage loans on real estate, fair values were estimated using discounted cash flow calculations based on current incremental lending rates for similar type loans. Derivative instruments are reported at fair value based upon either pricing valuation models, which utilize market data inputs and that are obtained from independent third parties or independent broker quotations. Other policyholder funds and benefits payable fair value information is determined by estimating future cash flows, discounted at the current market rate. For further discussion of other policyholder funds and derivatives, see Note 1. Fair value of consumer notes is based on discounted cash flow calculations based on the current market rates. The carrying amount and fair values of the Company's financial instruments as of December 31, 2007 and 2006 were as follows:
2007 2006 CARRYING FAIR CARRYING FAIR AMOUNT VALUE AMOUNT VALUE ---------------------------------------------------------------------------------------------- ASSETS Fixed maturities $45,611 $45,611 $44,646 $44,646 Equity securities 722 722 276 276 Policy loans 2,016 2,016 2,009 2,009 Mortgage loans on real estate 4,166 4,169 2,631 2,619 Short-term investments 752 752 694 694 Other investments (1) 480 480 273 273 LIABILITIES Other policyholder funds and benefits payable (2) $15,148 $15,097 $13,931 $13,186 Consumer notes 809 814 258 260 --------- ------- -- --
(1) 2007 and 2006 includes $446 and $271 of derivative related assets, respectively. (2) Excludes universal life insurance contracts, including corporate owned life insurance. 5. REINSURANCE The Company cedes insurance to other insurers in order to limit its maximum losses to diversify its exposures and provide surplus relief. Such transfers do not relieve the Company of its primary liability and, as such, failure of reinsurers to honor their obligations could result in losses to the Company. The Company also assumes reinsurance from other insurers and is a member of and participates in several reinsurance pools and associations. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk. As of December 31, 2007and 2006, the Company had no reinsurance recoverables and related concentrations of credit risk greater than 10% of the Company's stockholder's equity. In accordance with normal industry practice, the Company is involved in both the cession and assumption of insurance with other insurance and reinsurance companies. As of December 31, 2007, the Company's policy for the largest amount retained on any one life doubled from $5 to $10 compared to the corresponding 2006 and 2005 periods. Insurance fees, earned premiums and other were comprised of the following:
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 -------------------------------------------------------------------------------- Gross fee income, earned premiums and other $5,173 $4,360 $4,019 Reinsurance assumed 13 19 39 Reinsurance ceded (694) (719) (798) -------- -------- -------- NET FEE INCOME, EARNED PREMIUMS AND OTHER $4,492 $3,660 $3,260 -------- -------- --------
The Company reinsures certain of its risks to other reinsurers under yearly renewable term, coinsurance, and modified coinsurance arrangements. Yearly renewable term and coinsurance arrangements result in passing all or a portion of the risk to the reinsurer. Generally, the reinsurer receives a proportionate amount of the premiums less an allowance for commissions and expenses and is liable for a corresponding proportionate amount of all benefit payments. Modified coinsurance is similar to coinsurance except that the cash and investments that support the liabilities for contract benefits are not transferred to the assuming company, and settlements are made on a net basis between the companies. Coinsurance with funds withheld is a form of coinsurance except that the investment assets that support the liabilities are withheld by the ceding company. In addition, the Company reinsures the majority of minimum death benefit guarantees as well as guaranteed minimum withdrawal benefits, on contracts issued prior to July 2003, offered in connection with its variable annuity contracts. F-39 The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. Insurance recoveries on ceded reinsurance contracts, which reduce death and other benefits were $285, $241 and $378 for the years ended December 31, 2007, 2006 and 2005, respectively. The Company also assumes reinsurance from other insurers. The Company maintains certain reinsurance agreements with HLA, whereby the Company cedes both group life and group accident and health risk. Under these treaties, the Company ceded group life premium of $132, $166 and $130 in 2007, 2006 and 2005, respectively, and accident and health premium of $243, $259 and $221, respectively, to HLA. 6. DEFERRED POLICY ACQUISITION COSTS AND PRESENT VALUE OF FUTURE PROFITS Changes in deferred policy acquisition costs and present value of future profits is as follows:
2007 2006 2005 -------------------------------------------------------------------------------- BALANCE, JANUARY 1, BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE, PRE-TAX $ 7,334 $ 7,101 $ 6,453 Cumulative effect of accounting change, pre-tax (SOP05-1) (20) -- -- BALANCE, JANUARY 1, AS ADJUSTED 7,314 7,101 6,453 Capitalization 1,400 1,351 1,226 Amortization -- Deferred policy acquisitions costs and present value of future profits (817) (1,033) (945) AMORTIZATION -- UNLOCK, PRE-TAX (1) 302 (142) -- Adjustments to unrealized gains and losses on securities available-for-sale and other 194 57 367 -------- -------- -------- BALANCE, DECEMBER 31 $8,393 $7,334 $7,101 -------- -------- --------
(1) For a discussion of unlock effects, see Unlock Results in Note 1. Estimated future net amortization expense of present value of future profits for the succeeding five years is as follows. For the years ended December 31, -------------------------------------------------------------------------------- 2008 $27 2009 $27 2010 $25 2011 $23 2012 $22 --------------------------------------------------------------------------------
7. GOODWILL AND OTHER INTANGIBLE ASSETS As of December 31, 2007 and December 31, 2006, the carrying amount of goodwill for the Company's Retail Products segment was $85 and for the Company's Individual Life segment was $101. The Company's goodwill impairment test performed in accordance with SFAS No. 142 "Goodwill and Other Intangible Assets", resulted in no write-downs for the years ended December 31, 2007 and 2006. For a discussion of present value of future profits that continue to be subject to amortization and aggregate amortization expense, see Note 6. 8. SEPARATE ACCOUNTS, DEATH BENEFITS AND OTHER INSURANCE BENEFIT FEATURES The Company records the variable portion of individual variable annuities, 401(k), institutional, 403(b)/457, private placement life and variable life insurance products within separate account assets and liabilities, which are reported at fair value. Separate account assets are segregated from other investments. Investment income and gains and losses from those separate account assets, which accrue directly to, and whereby investment risk is borne by the policyholder, are offset by the related liability changes within the same line item in the consolidated statements of operations. The fees earned for administrative and contract holder maintenance services performed for these separate accounts are included in fee income. During 2007, 2006 and 2005 there were no gains or losses on transfers of assets from the general account to the separate account. F-40 Many of the variable annuity and universal life ("UL") contracts issued or reinsured by the Company offer various guaranteed minimum death and withdrawal benefits and UL secondary guarantee benefits. UL secondary guarantee benefits ensure that your policy will not terminate, and will continue to provide a death benefit, even if there is insufficient policy value to cover the monthly deductions and charges. Guaranteed minimum death benefits are offered in various forms as described in further detail throughout this Note. The Company currently reinsures a significant portion of the death benefit guarantees associated with its in-force block of business. Changes in the gross guaranteed minimum death benefit ("GMDB") and UL secondary guarantee benefits sold with annuity and/or UL products accounted for and collectively known as "SOP 03-1 reserve liabilities" are as follows:
UL SECONDARY GMDB (1) GUARANTEES (1) -------------------------------------------------------------------------------- LIABILITY BALANCE AS OF JANUARY 1, 2007 $ 476 7 Incurred 144 12 Unlock (4) -- Paid (85) -- ------ --- LIABILITY BALANCE AS OF DECEMBER 31, 2007 $531 19 ------ ---
(1) The reinsurance recoverable asset related to the GMDB was $325 as of December 31, 2007. The reinsurance recoverable asset related to the UL Secondary Guarantees was $10 as of December 31, 2007.
UL SECONDARY GMDB (1) GUARANTEES (1) -------------------------------------------------------------------------------- LIABILITY BALANCE AS OF JANUARY 1, 2006 $ 158 5 Incurred 130 2 Unlock 294 -- Paid (106) -- ------ --- LIABILITY BALANCE AS OF DECEMBER 31, 2006 $476 7 ------ ---
(1) The reinsurance recoverable asset related to the GMDB was $316 as of December 31, 2006. The reinsurance recoverable asset related to the UL Secondary Guarantees was $6 as of December 31, 2006. The net SOP 03-1 reserve liabilities are established by estimating the expected value of net reinsurance costs and death benefits in excess of the projected account balance. The excess death benefits and net reinsurance costs are recognized ratably over the accumulation period based on total expected assessments. The SOP 03-1 reserve liabilities are recorded in Future Policy Benefits on the Company's balance sheet. Changes in the SOP 03-1 liabilities are recorded in benefits, losses and loss adjustment expenses in the Company's statement of income. In a manner consistent with the Company's accounting policy for deferred acquisition costs, the Company regularly evaluates estimates used and adjusts the additional liability balances, with a related charge or credit to benefit expense if actual experience or other evidence suggests that earlier assumptions should be revised. As described within the Unlock Results in Note 1, the Company unlocked its assumptions related to its SOP 03-1 reserves during the third quarter of 2007 and the fourth quarter of 2006. The determination of the SOP 03-1 reserve liabilities and their related reinsurance recoverables, are based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following assumptions were used as of December 31, 2007: GMDB: - 1000 stochastically generated investment performance scenarios for all issue years - For all issue years, the weighted average return is 8% after fund fees, but before mortality and expense charges; it varies by asset class with a low of 3% for cash and a high of 11% for aggressive equities. - Discount rate of 7.5% for issue year 2002 & prior; discount rate of 7% for issue year 2003 & 2004 and discount rate of 5.6% for issue year 2005 -- 2007. - Volatilities also vary by asset class with a low of 1% for cash, a high of 15% for aggressive equities, and a weighted average of 12%. - 100% of the Hartford experience mortality table was used for the mortality assumptions - Lapse rates by calendar year vary from a low of 8% to a high of 13%, with an average of 11% UL SECONDARY GUARANTEES: - Discount rate of 4.75% for issue year 2004, discount rate of 4.50% for issue year 2005 & 2006, and discount rate of 4.25% for issue year 2007. - 100% of the Hartford pricing mortality table for mortality assumptions. F-41 - Lapse rates for single life policies average 3% in policy years 1-10, declining to 0% by age 95. Lapse rate for last survivor policies is 0.4%. The following table provides details concerning GMDB exposure: BREAKDOWN OF VARIABLE ANNUITY ACCOUNT VALUE BY GMDB TYPE AT DECEMBER 31, 2007
RETAINED WEIGHTED AVERAGE ACCOUNT NET AMOUNT NET AMOUNT ATTAINED AGE OF VALUE AT RISK AT RISK ANNUITANT --------------------------------------------------------------------------------------------------------------------------------- Maximum anniversary value (MAV) (1) MAV only $47,463 $3,557 $419 65 With 5% rollup (2) 3,360 285 67 64 With Earnings Protection Benefit Rider (EPB) (3) 5,463 530 85 62 With 5% rollup & EPB 1,333 155 30 64 Total MAV 57,619 4,527 601 Asset Protection Benefit (APB) (4) 42,489 446 242 62 Lifetime Income Benefit (LIB) (5) 10,273 25 25 62 Reset (6) (5-7 years) 6,132 80 80 66 Return of Premium (7)/Other 10,321 28 28 54 ----------- -------- ------ --- TOTAL $126,834 $5,106 $976 63 ----------- -------- ------ ---
(1) MAV: the death benefit is the greatest of current account value, net premiums paid and the highest account value on any anniversary before age 80 (adjusted for withdrawals). (2) Rollup: the death benefit is the greatest of the MAV, current account value, net premium paid and premiums (adjusted for withdrawals) accumulated at generally 5% simple interest up to the earlier of age 80 or 100% of adjusted premiums. (3) EPB: the death benefit is the greatest of the MAV, current account value, or contract value plus a percentage of the contract's growth. The contract's growth is account value less premiums net of withdrawals, subject to a cap of 200% of premiums net of withdrawals. (4) APB: the death benefit is the greater of current account value or MAV, not to exceed current account value plus 25% times the greater of net premiums and MAV (each adjusted for premiums in the past 12 months). (5) LIB: the death benefit is the greatest of current account value or MAV, net premiums paid, or a benefit amount that ratchets over time, generally based on market performance. (6) Reset: the death benefit is the greatest of current account value, net premiums paid and the most recent five to seven year anniversary account value before age 80 (adjusted for withdrawals). (7) Return of premium: the death benefit is the greater of current account value and net premiums paid. The Company offers certain variable annuity products with a GMWB rider. The GMWB provides the policyholder with a guaranteed remaining balance ("GRB") if the account value is reduced to zero through a combination of market declines and withdrawals. The GRB is generally equal to premiums less withdrawals. However, annual withdrawals that exceed a specific percentage of the premiums paid may reduce the GRB by an amount greater than the withdrawals and may also impact the guaranteed annual withdrawal amount that subsequently applies after the excess annual withdrawals occur. For certain of the withdrawal benefit features, the policyholder also has the option, after a specified time period, to reset the GRB to the then-current account value, if greater. In addition, the Company has introduced features, for contracts issued beginning in the fourth quarter of 2005, that allow policyholders to receive the guaranteed annual withdrawal amount for as long as they are alive. Through this feature, the policyholder or their beneficiary will receive the GRB and the GRB is reset on an annual basis to the maximum anniversary account value subject to a cap. The GMWB represents an embedded derivative in the variable annuity contracts that is required to be reported separately from the host variable annuity contract. The GMIB and GMAB reinsurance represent free-standing derivatives and are carried at fair value and reported in other policyholder funds. See Note 16 for additional disclosure concerning reinsurance agreements. The fair value of the GMWB obligation, as well as the GMIB and GMAB obligations, assumed from a related party are calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior. Because of the dynamic and complex nature of these cash flows, best estimate assumptions and stochastic techniques under a variety of market return scenarios are used. Estimating these cash flows involves numerous estimates including those regarding expected market rates of return, market volatility, correlations of market returns and discount rates. At each valuation date, the Company assumes expected returns based on risk-free rates as represented by the current LIBOR forward curve rates; market volatility assumptions for each underlying index based primarily on a blend of observed market F-42 "implied volatility"; correlations of market returns across underlying indices based on actual observed market returns and relationships over the ten years preceding the valuation date; and current risk-free spot rates as represented by the current LIBOR spot curve to determine the present value of expected future cash flows produced in the stochastic projection process. As markets change, mature and evolve and actual policyholder behavior emerges, management continually evaluates the appropriateness of its assumptions. In addition, management regularly evaluates the valuation model, incorporating emerging valuation techniques where appropriate, including drawing on the expertise of market participants and valuation experts. During, the second quarter of 2007, the Company reflected newly reliable market inputs for volatility on Standard and Poor's ("S&P") 500, National Association of Securities Dealers Automated Quotations ("NASDAQ") and Europe, Australasia and Far East ("EAFE") index options. As of December 31, 2007 and December 31, 2006, the embedded derivative (liability) asset recorded for GMWB, before reinsurance or hedging, was $(707) and $53, respectively. During 2007, 2006 and 2005 the change in value of the GMWB, before reinsurance and hedging, reported in realized gains (losses) was $(661), $121and ($64), respectively. Included in the realized gain (loss) for the years ended December 31, 2007 and 2006 were liability model refinements, changes in policyholder behavior assumptions and changes in other assumptions to reflect newly reliable market inputs for volatility of a net $(234) and $(2), respectively. As of December 31, 2007 and 2006, $46.3 billion, or 82%, and $37.3 billion, or 77%, respectively, of account value representing substantially all of the contracts written after July 2003 with the GMWB feature, were unreinsured. In order to minimize the volatility associated with the unreinsured GMWB liabilities, the Company has established a risk management strategy. During the second and third quarter of 2007, as part of the Company's risk management strategy, the Company purchased two customized swap contracts which hedge certain capital market risk components for the remaining term of certain blocks of the non-reinsured GMWB riders. As of December 31, 2007, these swaps had a notional value of $12.8 billion. These customized derivative contracts provide protection from capital markets risks based on policyholder behavior assumptions as specified by the Company. The Company also uses other derivative instruments to hedge its unreinsured GMWB exposure including interest rate futures, S&P 500 and NASDAQ index options and futures contracts and EAFE Index swaps to hedge GMWB exposure to international equity markets. The total (reinsured and unreinsured) GRB as of December 31, 2007 and 2006 was $44.8 billion and $37.8 billion, respectively. A contract is 'in the money' if the contract holder's GRB is greater than the account value. For contracts that were 'in the money' the Company's exposure, after reinsurance, as of December 31, 2007 and 2006, was $139 and $8, respectively. However, the only ways the contract holder can monetize the excess of the GRB over the account value of the contract is upon death or if their account value is reduced to zero through a combination of a series of withdrawals that do not exceed a specific percentage of the premiums paid per year and market declines. If the account value is reduced to zero, the contract holder will receive a period certain annuity equal to the remaining GRB. As the amount of the excess of the GRB over the account value can fluctuate with equity market returns on a daily basis, the ultimate amount to be paid by the Company, if any, is uncertain and could be significantly more or less than $139. Account balances of contracts with guarantees were invested in variable separate accounts as follows:
AS OF AS OF DECEMBER 31, DECEMBER 31, 2007 2006 -------------------------------------------------------------------------------- ASSET TYPE Equity securities $109,354 $104,687 Cash and cash equivalents 9,975 8,931 ----------- ----------- TOTAL $119,329 $113,618 ----------- -----------
As of December 31, 2007, approximately 12% of the equity securities above were invested in fixed income securities through these funds and approximately 88% were invested in equity securities. 9. SALES INDUCEMENTS The Company currently offers enhanced crediting rates or bonus payments to contract holders on certain of its individual and group annuity products. The expense associated with offering a bonus is deferred and amortized over the life of the related contract in a pattern consistent with the amortization of deferred policy acquisition costs. Amortization expense associated with expenses previously deferred is recorded over the remaining life of the contract. Consistent with the Company's unlock, the Company unlocked the amortization of the sales inducement asset. See Note 1, for more information concerning the unlock. F-43 Changes in deferred sales inducement activity were as follows for the years ended December 31,:
2007 2006 -------------------------------------------------------------------------------- BALANCE, BEGINNING OF PERIOD $397 $359 Cumulative effect of accounting change, pre-tax (SOP 05-1) (1) -- BALANCE, JANUARY 1, AS ADJUSTED 396 359 Sales inducements deferred 97 84 Unlock (15) 4 Amortization charged to income (33) (50) ------ ------ BALANCE, END OF PERIOD $445 $397 ------ ------
10. COMMITMENTS AND CONTINGENCIES LITIGATION The Company is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Company accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of the Company. The Company is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. These actions include, among others, putative state and federal class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, improper sales practices in connection with the sale of life insurance and other investment products; and improper fee arrangements in connection with mutual funds and structured settlements. The Company also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of the Company. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company's consolidated results of operations or cash flows in particular quarterly or annual periods. BROKER COMPENSATION LITIGATION -- Following the New York Attorney General's filing of a civil complaint against Marsh & McLennan Companies, Inc., and Marsh, Inc. (collectively, "Marsh") in October 2004 alleging that certain insurance companies, including The Hartford, participated with Marsh in arrangements to submit inflated bids for business insurance and paid contingent commissions to ensure that Marsh would direct business to them, private plaintiffs brought several lawsuits against The Hartford predicated on the allegations in the Marsh complaint, to which The Hartford was not party. Among these is a multidistrict litigation in the United States District Court for the District of New Jersey. There are two consolidated amended complaints filed in the multidistrict litigation, one related to conduct in connection with the sale of property-casualty insurance and the other related to alleged conduct in connection with the sale of group benefits products. The Company is named in the group benefits products complaint. The complaints assert, on behalf of a putative class of persons who purchased insurance through broker defendants, claims under the Sherman Act, the Racketeer Influenced and Corrupt Organizations Act ("RICO"), state law, and in the case of the group benefits products complaint, claims under ERISA. The claims are predicated upon allegedly undisclosed or otherwise improper payments of contingent commissions to the broker defendants to steer business to the insurance company defendants. . The district court has dismissed the Sherman Act and RICO claims in both complaints for failure to state a claim and has granted the defendants' motions for summary judgment on the ERISA claims in the group-benefits products complaint . The district court further has declined to exercise supplemental jurisdiction over the state law claims, has dismissed those state law claims without prejudice, and has closed both cases. The plaintiffs have appealed the dismissal of the Sherman Act, RICO and ERISA claims. REGULATORY DEVELOPMENTS On July 23, 2007, The Hartford entered into an agreement (the "Agreement") with the New York Attorney General's Office, the Connecticut Attorney General's Office, and the Illinois Attorney General's Office to resolve (i) the previously disclosed investigations by these Attorneys General regarding, among other things, The Hartford's compensation agreements with brokers, alleged participation in arrangements to submit inflated bids, sale of fixed and individual annuities used to fund structured settlements, and marketing and sale of individual and group variable annuity products and (ii) the previously disclosed investigation by the New York Attorney General's Office of aspects of The Hartford's variable annuity and mutual fund operations related to market timing. In light of the Agreement, the Staff of the Securities and Exchange Commission has informed The Hartford that it has determined to conclude its previously disclosed investigation into market timing without taking any action. Under the terms of the Agreement, The Hartford paid $115, of which $84 represents restitution for market timing, $5 represents restitution for issues relating to the compensation of brokers, and $26 is a civil penalty. F-44 Hartford Life recorded charges of $54, after-tax, in the aggregate, none of which was attributed to the Company, through the first quarter of 2007 to establish a reserve for the market timing matters and, based on the settlement discussed above, Hartford Life recorded an additional charge of $21, after-tax, in the second quarter of 2007. In the second quarter of 2007, $75, after-tax, representing all of the charges that had been recorded at Hartford Life, was attributed to and recorded at the Company. LEASES The rent paid to Hartford Fire for operating leases entered into by the Company was $27, $35 and $35 for the years ended December 31, 2007, 2006 and 2005, respectively. Included in Hartford Fire's operating leases are the principal executive offices of Hartford Life Insurance Company, together with its parent, which are located in Simsbury, Connecticut. Rental expense for the facility located in Simsbury, Connecticut, which expires on December 31, 2007, as this operating lease will be replaced by a capital lease between its parent Company HLA and Hartford Fire Insurance Company, amounted to approximately $6, $27 and $27 for the years ended December 31, 2007, 2006 and 2005, respectively. Future minimum rental commitments on all operating leases are as follows: 2008 $17 2009 11 2010 8 2011 5 2012 2 Thereafter 2 ---- TOTAL $ 45 ----
TAX MATTERS The Company's federal income tax returns are routinely audited by the Internal Revenue Service ("IRS"). The IRS began its audit of the 2002-2003 tax years in 2005 and the Company expects the audit to be concluded in early 2008. Management believes that adequate provision has been made in the financial statements for any potential assessments that may result from tax examinations and other tax- related matters for all open tax years. The separate account dividends received deduction ("DRD") is estimated for the current year using information from the prior year-end, adjusted for current year equity market performance. The estimated DRD is generally updated in the third quarter for the provision-to-filed-return adjustments, and in the fourth quarter based on current year ultimate mutual fund distributions and fee income from the Company's variable insurance products. The actual current year DRD can vary from estimates based on, but not limited to, changes in eligible dividends received by the mutual funds, amounts of distributions from these mutual funds, amounts of short-term capital gains at the mutual fund level and the Company's taxable income before the DRD. The Company recorded benefits of $155, $174 and $184 related to the separate account DRD in the year ended December 31, 2007, December 31, 2006 and December 31, 2005, respectively. The 2007 benefit included a tax of $1 related to a true-up of the prior year tax return, the 2006 benefit included a benefit of $6 related to true-ups of prior years' tax returns and the 2005 benefit included a benefit of $3 related to a true-up of the prior year tax return In Revenue Ruling 2007-61, issued on September 25, 2007, the IRS announced its intention to issue regulations with respect to certain computational aspects of the DRD on separate account assets held in connection with variable annuity contracts. Revenue Ruling 2007-61 suspended Revenue Ruling 2007-54, issued in August 2007 that purported to change accepted industry and IRS interpretations of the statutes governing these computational questions. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other members of the public will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing and substance of any such regulations are unknown, but they could result in the elimination of some or all of the separate account DRD tax benefit that the Company receives. Management believes that it is highly likely that any such regulations would apply prospectively only. The Company receives a foreign tax credit ("FTC") against its U.S. tax liability for foreign taxes paid by the Company including payments from its separate account assets. The separate account FTC is estimated for the current year using information from the most recent filed return, adjusted for the change in the allocation of separate account investments to the international equity markets during the current year. The actual current year FTC can vary from the estimates due to actual FTCs passed through by the mutual funds. The Company recorded benefits of $11 and $17 related to separate account FTC in the year ended December 31, 2007 and December 31, 2006, respectively. These amounts included benefits related to true-ups of prior years' tax returns of $0 and $7 in 2007 and 2006, respectively. UNFUNDED COMMITMENTS At December 31, 2007, the Company has outstanding commitments totaling $888, of which $616 is committed to fund limited partnership investments. These capital commitments can be called by the partnership during the commitment period (on average two to five years) to fund the purchase of new investments and partnership expenses. Once the commitment F-45 period expires, the Company is under no obligation to fund the remaining unfunded commitment but may elect to do so. The remaining outstanding commitments are primarily related to various funding obligations associated with investments in mortgage and construction loans. These have a commitment period of one month to three years. GUARANTY FUND AND OTHER INSURANCE-RELATED ASSESSMENTS In all states, insurers licensed to transact certain classes of insurance are required to become members of a guaranty fund. In most states, in the event of the insolvency of an insurer writing any such class of insurance in the state, members of the funds are assessed to pay certain claims of the insolvent insurer. A particular state's fund assesses its members based on their respective written premiums in the state for the classes of insurance in which the insolvent insurer was engaged. Assessments are generally limited for any year to one or two percent of premiums written per year depending on the state. The Company accounts for guaranty fund and other insurance assessments in accordance with Statement of Position No. 97-3, "Accounting by Insurance and Other Enterprises for Insurance-Related Assessments". Liabilities for guaranty fund and other insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated, and when the event obligating the Company to pay an imposed or probable assessment has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of other liabilities in the Consolidated Balance Sheets. As of December 31, 2007 and 2006, the liability balance was $4 and $4, respectively. As of December 31, 2007 and 2006, $12 and $13, respectively, related to premium tax offsets were included in other assets. 11. INCOME TAX The Company is included in The Hartford's consolidated Federal income tax return. The Company and The Hartford have entered into a tax sharing agreement under which each member in the consolidated U.S. Federal income tax return will make payments between them such that, with respect to any period, the amount of taxes to be paid by the Company, subject to certain tax adjustments, generally will be determined as though the Company were filing a separate Federal income tax return with current credit for net losses to the extent the losses provide a benefit in the consolidated return. Income tax expense (benefit) is as follows:
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 -------------------------------------------------------------------------------- Current $106 $115 $71 Deferred 62 (12) 136 ------ ------ ------ INCOME TAX EXPENSE $168 $103 $207 ------ ------ ------
A reconciliation of the tax provision at the U.S. Federal statutory rate to the provision (benefit) for income taxes is as follows:
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 -------------------------------------------------------------------------------- Tax provision at the U.S. federal statutory rate $318 $292 $391 Dividends received deduction (155) (174) (184) Penalties 7 -- 1 Foreign related investments (11) (10) (2) Other 9 (5) 1 ------ ------ ------ TOTAL $168 $103 $207 ------ ------ ------
F-46 Deferred tax assets (liabilities) include the following as of December 31:
2007 2006 -------------------------------------------------------------------------------- DEFERRED TAX ASSETS Tax basis deferred policy acquisition costs $682 $568 Unrealized Loss on Investments 294 -- Other Investment-related items 455 179 Minimum tax credit 239 217 Foreign tax credit carryovers -- 7 Other 17 -- --------- --------- TOTAL DEFERRED TAX ASSETS 1,687 971 DEFERRED TAX LIABILITIES Financial statement deferred policy acquisition costs and reserves (1,775) (1,252) Net unrealized gains on equity securities -- (169) Employee benefits (36) (39) Other -- (2) --------- --------- TOTAL DEFERRED TAX LIABILITIES (1,811) (1,462) --------- --------- TOTAL DEFERRED TAX LIABILITY $(124) $(491) --------- ---------
The Company had current federal income tax (payable) receivable of $62 and $(78) as of December 31, 2007 and 2006, respectively. In management's judgment, the gross deferred tax asset will more likely than not be realized through reductions of future taxes. Accordingly, no valuation allowance has been recorded. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2002. During 2005, the Internal Revenue Service ("IRS") commenced an examination of the Company's U.S. income tax returns for 2002 through 2003 that is anticipated to be completed in early 2008. The 2004 through 2006 examination will begin in 2008. The Company anticipates that it is reasonably possible that the Internal Revenue Service will issue the 2002-2003 Revenue Agent's Report within 12 months. The Company does not anticipate that the outcome of the audit will result in a material change to its financial position. The Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, on January 1, 2007. As a result of the adoption, the Company recognized an $11 decrease in the liability for unrecognized tax benefits and a corresponding increase in the January 1, 2007 balance of retained earnings. The Company had no balance of unrecognized tax benefits as of January 1, 2007 or December 31, 2007. The Company classifies interest and penalties (if applicable) as income tax expense in the financial statements. 12. DEBT CONSUMER NOTES On September 8, 2006, Hartford Life Insurance Company filed a shelf registration statement with the SEC (Registration Statement No. 333-137215), effective immediately, for the offering and sale of Hartford Life Income Notes SM and Hartford Life medium-term notes (collectively called "Consumer Notes"). There are no limitations on the ability to issue additional indebtedness in the form of Hartford Life Income Notes SM and Hartford Life medium-term notes. Institutional Solutions Group began issuing Consumer Notes through its Retail Investor Notes Program in September 2006. A Consumer Note is an investment product distributed through broker-dealers directly to retail investors as medium-term, publicly traded fixed or floating rate, or a combination of fixed and floating rate, notes. In addition, discount notes, amortizing notes and indexed notes may also be offered and issued. Consumer Notes are part of the Company's spread-based business and proceeds are used to purchase investment products, primarily fixed rate bonds. Proceeds are not used for general operating purposes. Consumer Notes are offered weekly with maturities up to 30 years and varying interest rates and may include a call provision. Certain Consumer Notes may be redeemed by the holder in the event of death. Redemptions are subject to certain limitations, including calendar year aggregate and individual limits equal to the greater of $1 or 1% of the aggregate principal amount of the notes and $250 thousand per individual, respectively. Derivative instruments will be utilized to hedge the Company's exposure to interest rate risk in accordance with Company policy. As of December 31, 2007 and 2006, $809 and $258 of consumer notes had been issued. As of December 31, 2007, these consumer notes have interest rates ranging from 4.75% to 6.25% for fixed notes and, for variable notes, either consumer price index plus 157 to 267 basis points, or indexed to the S&P 500, Dow Jones Industrials or the Nikkei 225. The aggregate maturities of consumer notes are as follows: $222 in 2008, $494 in 2009, $34 in 2010, $19 in 2011 and $40 thereafter. For the year ended December 31, 2007 and 2006, interest credited to holders of consumer notes was $11 and $2, respectively. F-47 13. STATUTORY RESULTS
FOR THE YEARS ENDED DECEMBER 31, 2007 2006 2005 -------------------------------------------------------------------------------- Statutory net income $255 $777 $393 ------- ------- ------- Statutory capital and surplus $4,448 $3,276 $3,022 ------- ------- -------
A significant percentage of the consolidated statutory surplus is permanently reinvested or is subject to various state regulatory restrictions which limit the payment of dividends without prior approval. The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. Under these laws, the insurance subsidiaries may only make their dividend payments out of unassigned surplus. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer's policyholder surplus as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company) for the twelve-month period ending on the thirty-first day of December last preceding, in each case determined under statutory insurance accounting principles. In addition, if any dividend of a Connecticut-domiciled insurer exceeds the insurer's earned surplus, it requires the prior approval of the Connecticut Insurance Commissioner. The insurance holding company laws of the other jurisdictions in which The Hartford's insurance subsidiaries are incorporated (or deemed commercially domiciled) generally contain similar (although in certain instances somewhat more restrictive) limitations on the payment of dividends. As of December 31, 2007, the maximum amount of statutory dividends which may be paid by the Company in 2008, without prior approval, is $445. The domestic insurance subsidiaries of the Company prepare their statutory financial statements in accordance with accounting practices prescribed by the applicable insurance department. Prescribed statutory accounting practices include publications of the National Association of Insurance Commissioners ("NAIC"), as well as state laws, regulations and general administrative rules. 14. PENSION PLANS, POSTRETIREMENT, HEALTH CARE AND LIFE INSURANCE BENEFIT AND SAVINGS PLANS PENSION PLANS Hartford Life's employees are included in The Hartford's non-contributory defined benefit pension and postretirement health care and life insurance benefit plans. Defined benefit pension expense, postretirement health care and life insurance benefits expense allocated by The Hartford to the Company, was $22, $22 and $21 for the years ended December 31, 2007, 2006 and 2005, respectively. INVESTMENT AND SAVINGS PLAN Substantially all U.S. employees are eligible to participate in The Hartford's Investment and Savings Plan under which designated contributions may be invested in common stock of The Hartford or certain other investments. These contributions are matched, up to 3% of compensation, by the Company. In 2004, the Company began allocating a percentage of base salary to the Plan for eligible employees. In 2007, employees who had salaries of less than $100,000 per year received a contribution of 1.5% of base salary and employees who had salaries of $100,000 or more per year received a contribution of 0.5% of base salary. The cost to Hartford Life for this plan was approximately $11, $9 and $8 for the years ended December 31, 2007, 2006 and 2005, respectively. 15. STOCK COMPENSATION PLANS Hartford Life's employees are included in The Hartford 2005 Incentive Stock Plan and The Hartford Employee Stock Purchase Plan. The Hartford has two primary stock-based compensation plans which are described below. Shares issued in satisfaction of stock-based compensation may be made available from authorized but unissued shares, shares held by The Hartford in treasury or from shares purchased in the open market. The Hartford typically issues new shares in satisfaction of stock-based compensation. Hartford Life was allocated compensation expense of $21 million, $19 million and $15 million for the years ended December 31, 2007, 2006 and 2005, respectively. Hartford Life's income tax benefit recognized for stock-based compensation plans was $7 million, $6 million and $5 million for the years ended December 31, 2007, 2006 and 2005, respectively. Hartford Life did not capitalize any cost of stock-based compensation. STOCK PLAN In 2005, the shareholders of The Hartford approved The Hartford 2005 Incentive Stock Plan (the "2005 Stock Plan"), which superseded and replaced The Hartford Incentive Stock Plan and The Hartford Restricted Stock Plan for Non-employee Directors. The terms of the 2005 Stock Plan are substantially similar to the terms of these superseded plans. F-48 The 2005 Stock Plan provides for awards to be granted in the form of non-qualified or incentive stock options qualifying under Section 422 of the Internal Revenue Code, stock appreciation rights, restricted stock units, restricted stock, performance shares, or any combination of the foregoing. The fair values of awards granted under the 2005 Stock Plan are measured as of the grant date and expensed ratably over the awards' vesting periods, generally three years. For stock option awards granted or modified in 2006 and later, the Company began expensing awards to retirement-eligible employees hired before January 1, 2002 immediately or over a period shorter than the stated vesting period because the employees receive accelerated vesting upon retirement and therefore the vesting period is considered non-substantive. If, prior to the adoption of SFAS 123(R), the Company had been expensing stock option awards to retirement-eligible employees over the shorter of the stated vesting period or the date of retirement eligibility, then the Company would have recognized an immaterial increase in net income for the year ended December 31, 2005 and an immaterial decrease in net income for the year ended December 31, 2004. All awards provide for accelerated vesting upon a change in control of The Hartford as defined in the 2005 Stock Plan. STOCK OPTION AWARDS Under the 2005 Stock Plan, all options granted have an exercise price equal to the market price of The Hartford's common stock on the date of grant, and an option's maximum term is ten years. Certain options become exercisable over a three year period commencing one year from the date of grant, while certain other options become exercisable at the later of the three years from the date of grant or upon the attainment of specified market appreciation of The Hartford's common shares. For any year, no individual employee may receive an award of options for more than 1,000,000 shares. As of December 31, 2007, The Hartford had not issued any incentive stock options under any plans. For all options granted or modified on or after January 1, 2004, The Hartford uses a hybrid lattice/Monte-Carlo based option valuation model (the "valuation model") that incorporates the possibility of early exercise of options into the valuation. The valuation model also incorporates The Hartford's historical termination and exercise experience to determine the option value. For these reasons, the Hartford believes the valuation model provides a fair value that is more representative of actual experience than the value calculated under the Black-Scholes model. SHARE AWARDS Share awards are valued equal to the market price of The Hartford's common stock on the date of grant, less a discount for those awards that do not provide for dividends during the vesting period. Share awards granted under the 2005 Plan and outstanding include restricted stock units, restricted stock and performance shares. Generally, restricted stock units vest after three years and restricted stock vests in three to five years. Performance shares become payable within a range of 0% to 200% of the number of shares initially granted based upon the attainment of specific performance goals achieved over a specified period, generally three years. The maximum award of restricted stock units, restricted stock or performance shares for any individual employee in any year is 200,000 shares or units. EMPLOYEE STOCK PURCHASE PLAN In 1996, The Hartford established The Hartford Employee Stock Purchase Plan ("ESPP"). Under this plan, eligible employees of The Hartford may purchase common stock of The Hartford at a 15% discount from the lower of the closing market price at the beginning or end of the quarterly offering period. Employees purchase a variable number of shares of stock through payroll deductions elected as of the beginning of the quarter. The fair value is estimated based on the 15% discount off of the beginning stock price plus the value of three-month European call and put options on shares of stock at the beginning stock price calculated using the Black-Scholes model. 16. TRANSACTIONS WITH AFFILIATES Transactions of the Company with Hartford Fire Insurance Company, Hartford Holdings and its affiliates relate principally to tax settlements, reinsurance, insurance coverage, rental and service fees, payment of dividends and capital contributions. In addition, an affiliated entity purchased group annuity contracts from the Company to fund structured settlement periodic payment obligations assumed by the affiliated entity as part of claims settlements with property casualty insurance companies and self-insured entities. As of December 31, 2007 and 2006 the Company had $4.8 billion and $3.8 billion of reserves for claim annuities purchased by affiliated entities. For the year ended December 31, 2007, 2006 and 2005, the Company recorded earned premiums of $525, $296 and $339 for these intercompany claim annuities. Substantially all general insurance expenses related to the Company, including rent and employee benefit plan expenses are initially paid by The Hartford. Direct expenses are allocated to the Company using specific identification, and indirect expenses are allocated using other applicable methods. Indirect expenses include those for corporate areas which, depending on type, are allocated based on either a percentage of direct expenses or on utilization. Hartford Life sells fixed market value adjusted ("MVA") annuity products to customers in Japan. The yen based MVA product is written by HLIKK, a wholly owned Japanese subsidiary of Hartford Life and subsequently reinsured to the Company. As of F-49 December 31, 2007 and 2006, $1.8 billion and $1.7 billion, respectively, of the account value had been assumed by the Company. Effective August 31, 2005, a subsidiary of the Company, Hartford Life and Annuity Insurance Company ("HLAI"), entered into a reinsurance agreement with Hartford Life, Insurance KK ("HLIKK"), a wholly owned Japanese subsidiary of Hartford Life, Inc. ("Hartford Life"). Through this agreement, HLIKK agreed to cede and HLAI agreed to reinsure 100% of the risks associated with the in-force and prospective GMIB riders issued by HLIKK on its variable annuity business. Effective July 31, 2006, the agreement was modified to include the GMDB on covered contracts that have an associated GMIB rider. The modified reinsurance agreement applies to all contracts, GMIB riders and GMDB riders in-force and issued as of July 31, 2006 and prospectively, except for policies and GMIB riders issued prior to April 1, 2005, which were recaptured. Additionally, a tiered reinsurance premium structure was implemented. On the date of recapture, HLAI forgave the reinsurance derivative asset of $110 and paid HLIKK $38. The net result of the recapture was recorded as a dividend of $93, after-tax. GMIB riders issued by HLIKK subsequent to April 1, 2005 continue to be reinsured by HLAI. While the form of the agreement between HLAI and HLIKK for GMIB business is reinsurance, in substance and for accounting purposes the agreement is a free standing derivative. As such, the reinsurance agreement for GMIB business is recorded at fair value on the Company's balance sheet, with prospective changes in fair value recorded in net realized capital gains (losses) in net income. Effective September 30, 2007, HLAI entered into another reinsurance agreement where HLIKK agreed to cede and HLAI agreed to reinsure 100% of the risks associated with the in-force and prospective GMAB, GMIB and GMDB riders issued by HLIKK on certain of its variable annuity business. The reinsurance of the GMAB riders is accounted for as a free-standing derivative in accordance with SFAS 133. Accordingly, the reinsurance of the GMAB is recorded at fair value on the Company's balance sheet, with prospective changes in fair value recorded in net realized capital gains (losses) in net income. The fair value of the GMAB is an asset of $2 at December 31, 2007. The initial fair value of the derivative associated with new business will be recorded as an in substance capital contribution or distribution between these related parties. As of December 31, 2007 and 2006, the fair value of the GMIB reinsurance derivative was an asset (liability) of $(72) and $119, respectively. During the year ended December 31, 2007 the Company recorded a net capital contribution (dividend) of $17 and a pre-tax realized loss of $156, representing the change in fair value of the GMIB reinsurance derivative. During the year ended December 31, 2006, the Company recorded a net capital contribution of $74 (including the net result of the recapture) and a pre-tax realized loss of $53, representing the change in fair value of the reinsurance derivative. (Included in the 2006 pre-tax loss amounts was a net $60 of losses related to changes in policyholder behavior assumptions and modeling refinements made by the Company during the year ended December 31, 2006.) The methodology for calculating the value of the reinsurance derivative's for GMIB and GMAB are consistent with the methodology used by the Company in valuing the guaranteed minimum withdrawal benefit rider sold with U.S. variable annuities. The calculation uses risk neutral Japanese capital market assumptions and includes estimates for dynamic policyholder behavior. The resulting reinsurance derivative value in Japanese yen is converted to U.S. dollars at the spot rate. Should actual policyholder behavior or capital markets experience emerge differently from these estimates, the resulting impact on the value of the reinsurance derivative could be material to the results of operations. The contracts underlying the GMIB and GMAB reinsurance contracts are 'in the money' if the contract holder's GRB is greater than the account value. For contracts that were 'in the money' the Company's exposure related to GMIB and GMAB, as of December 31, 2007 and 2006, was $130 and $0, respectively. However, for GMIB's, the only way the contract holder can monetize the excess of the GRB over the account value of the contract is upon annuitization and the amount to be paid by the Company will either be in the form of a lump sum, or over the annuity period for certain GMIB's or over the annuity period only for other GMIB's. For GMAB's the only way that contract holder can monetize the excess of the GRB over the account value of the contract is through a lump sum payment after a ten year waiting period. As the amount of the excess of the GRB over the account value can fluctuate with equity market returns on a daily basis, the ultimate amount to be paid by the Company, if any, is uncertain and could be significantly more than $130. The Reinsurance Agreement for GMDB business is accounted for under SOP 03-1 "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts" ("SOP 03-1"). As of December 31, 2007 the liability for the assumed reinsurance of the GMDB and the net amount at risk was $4 and $380, respectively. As of December 31, 2006 the liability for the assumed reinsurance of the GMDB and the net amount at risk was immaterial. The Company has issued a guarantee to retirees and vested terminated employees ("Retirees") of The Hartford Retirement Plan for U.S. Employees ("the Plan") who retired or terminated prior to January 1, 2004. The Plan is sponsored by The Hartford. The guarantee is an irrevocable commitment to pay all accrued benefits which the Retiree or the Retiree's designated beneficiary is entitled to receive under the Plan in the event the Plan assets are insufficient to fund those benefits and The Hartford is unable to provide sufficient assets to fund those benefits. The Company believes that the likelihood that payments will be required under this guarantee is remote. F-50 Effective November 1, 2007, a subsidiary insurance company ("Ceding Company") entered into a coinsurance with funds withheld and modified coinsurance reinsurance agreement ("Agreement") with an affiliate reinsurance company ("Reinsurer") to provide statutory surplus relief for certain life insurance policies. The Agreement is accounted for as a financing transaction for GAAP. A standby unaffiliated third party Letter of Credit ("LOC") supports a portion of the statutory reserves that have been ceded to the Reinsurer. 17. QUARTERLY RESULTS FOR 2007 AND 2006 (UNAUDITED)
MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, 2007 2006 2007 2006 2007 2006 2007 2006 --------------------------------------------------------------------------------------------------------------------------------- Revenues $1,692 $1,623 $1,660 $1,272 $1,751 $1,523 $1,503 $1,671 Benefits, claims and expenses 1,360 1,286 1,551 1,198 1,337 1,259 1,450 1,512 Net income 262 259 110 93 290 231 78 148 ------- ------- ------- ------- ------- ------- ------- -------
F-51 PART C OTHER INFORMATION ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS (a) All financial statements are included in Part A and Part B of the Registration Statement. (b) (1) Resolution of the Board of Directors of Hartford Life Insurance Company ("Hartford") authorizing the establishment of the Separate Account.(1) (2) Not applicable. (3) (a) Form of Principal Underwriter Agreement.(2) (3) (b) Amended and Restated Principal Underwriter Agreement.(3) (3) (c) Form of Dealer Agreement.(4) (4) Form of Individual Flexible Premium Variable Annuity Contract.(5) (5) Form of Application.(5) (6) (a) Certificate of Incorporation of Hartford.(6) (6) (b) Bylaws of Hartford.(6) (7) Form of Reinsurance Agreement.(7) (8) Form of Fund Participation Agreements.(8) (9) Opinion and Consent of Richard J. Wirth, Senior Counsel. (10) Consent of Deloitte & Touche LLP. (11) No financial statements are omitted. (12) Not applicable. (99) Copy of Power of Attorney. ------------ (1) Incorporated by reference to Post-Effective Amendment No. 1 to the Registration Statement on Form N-4, File No. 333-70153, filed on April 13, 1999. (2) Incorporated by reference to Post-Effective Amendment No. 3 to the Registration Statement on Form N-4, File No. 33-73570, filed May 1, 1996. (3) Incorporated by reference to Post-Effective Amendment No. 9, to the Registration Statement File No. 333-119415, filed on July 20, 2007. (4) Incorporated by reference to Post-Effective Amendment No. 2 the Registration Statement on Form N-4, File No. 33-73570, dated May 1, 1996. (5) Incorporated by reference to Pre-Effective Amendment No. 1, to the Registration Statement File No. 333-101923, filed on April 7, 2003. (6) Incorporated by reference to Post-Effective Amendment No. 6 to the Registration Statement on Form N-4, File No. 333-66343, filed February 8, 2001. (7) Incorporated by reference to Post-Effective Amendment No. 27, to the Registration Statement File No. 33-73570, filed on April 12, 1999. (8) Incorporated by reference to Post-Effective Amendment No. 6 to the Registration Statement on Form N-4, File No. 333-119414, filed April 9, 2007. ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
NAME POSITION WITH HARTFORD ------------------------------------------------------------------------------------------------------------------ Daniel A. Andriola Vice President Robert Arena Senior Vice President Simpa Baiye Assistant Actuary Lynn R. Banziruk Assistant Vice President Richard E. Cady Assistant Vice President David A. Carlson Director of Taxes, Senior Vice President Christine D. Chaia Assistant Vice President Kathleen C. Ciullo Vice President Henry Collie Assistant Actuary Richard G. Costello Vice President and Secretary Rochelle S. Cummings Vice President James Davey Senior Vice President Joseph G. Eck Vice President Jason S. Frain Actuary, Assistant Vice President John Giamalis Senior Vice President, Treasurer Christopher M. Grinnell Assistant Vice President Susan M. Hess Vice President Jeannie M. Iannello Vice President Anne Iezzi Chief Compliance Officer, Vice President Edward Jaworski Assistant Vice President Thomas D. Jones Vice President Stephen T. Joyce Senior Vice President, Director* Thomas P. Kalmbach Vice President and Actuary Paula Knake Assistant Vice President Diane Krajewski Assistant Vice President Alan J. Kreczko Executive Vice President and General Counsel Lori A. LaForge Assistant Vice President Glenn D. Lammey Chief Financial Officer, Executive Vice President, Director* Dawn M. LeBlanc Assistant Vice President Alice Longworth Assistant Vice President Debra L. Ludovissie Assistant Vice President Joseph F. Mahoney Vice President Kenneth A. McCullum Senior Vice President and Actuary Ernest M. McNeill, Jr. Senior Vice President and Chief Accounting Officer Jonathan L. Mercier Assistant Vice President Peter J. Michalik Vice President John J. Mittelstadt Vice President Brian Murphy Executive Vice President Jamie Ohl Vice President John J. Pacheco, Jr. Assistant Vice President Colleen B. Pernerewski Chief Compliance Officer of Separate Accounts Craig R. Raymond Senior Vice President Sharon Roberts Vice President Stephen Roche Vice President Michael J. Roscoe Vice President and Actuary Richard Rubin Assistant Vice President Scott R. Sanderson Vice President Jerry K. Scheinfeldt Assistant Vice President Wade A. Seward Vice President Martin A. Swanson Vice President Charles D. Tatro Actuary, Assistant Vice President James E. Trimble Senior Vice President and Chief Actuary
NAME POSITION WITH HARTFORD ------------------------------------------------------------------------------------------------------------------ Charles N. Vest Vice President and Actuary Andrew J. Waggoner Vice President Jean H. Walker Vice President John C. Walters Co-Chief Executive Officer, Co-President, Director* Richard J. Wirth Assistant Vice President Lizabeth H. Zlatkus Chairman of the Board, Co-Chief Executive Officer, Co-President, Director* David M. Znamierowski Executive Vice President and Chief Investment Officer, Director*
Unless otherwise indicated, the principal business address of each of the above individuals is Hartford Plaza, Hartford, CT 06115. * Denotes Board of Directors. ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT. Incorporated by reference to Post-Effective Amendment No. 8 to the Registration Statement File No. 333-119414, filed on February 8, 2008. ITEM 27. NUMBER OF CONTRACT OWNERS As of January 31, 2008, there were 96,876 Contract Owners. ITEM 28. INDEMNIFICATION Section 33-776 of the Connecticut General Statutes states that: "a corporation may provide indemnification of, or advance expenses to, a director, officer, employee or agent only as permitted by sections 33-770 to 33-779, inclusive." ARTICLE VIII, Section 1(a) of the By-laws of the Depositor (as amended and restated effective July 25, 2000) provides that the Corporation, to the fullest extent permitted by applicable law as then in effect, shall indemnify any person who was or is a director or officer of the Corporation and who was or is threatened to be made a defendant or respondent in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, arbitrative or investigative and whether formal or informal (including, without limitation, any action, suit or proceeding by or in the right of the Corporation to procure a judgment in its favor) (each, a Proceeding"), by reason of the fact that such a person was or is a director or officer of the Corporation or, while a director or officer of the Corporation, is or was serving at the request of the Corporation as a director, officer, partner, trustee, employee or agent of another domestic or foreign corporation, partnership, joint venture, trust, employee benefit plan or other entity (a "Covered Entity"), against all expenses (including attorneys' fees), judgments, fines and amounts paid in settlement and actually and reasonably incurred by such person in connection with such Proceeding. Any such former or present director or officer of the Corporation finally determined to be entitled to indemnification as provided in this Article VIII is hereinafter called an "Indemnitee". Until such final determination is made such former or present director or officer shall be a "Potential Indemnitee" for purposes of this Article VIII. Notwithstanding the foregoing provisions of this Section 1(a), the Corporation shall not indemnify an Indemnitee with respect to any Proceeding commenced by such Indemnitee unless the commencement of such Proceeding by such Indemnitee has been approved by a majority vote of the Disinterested Directors (as defined in Section 5(d)); provided however, that such approval of a majority of the Disinterested Directors shall not be required with respect to any Proceeding commenced by such Indemnitee after a Change in Control (as defined in Section 5(d)) has occurred. Insofar as indemnification for liability arising under the Securities Act of 1933 (the "Act") may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. ITEM 29. PRINCIPAL UNDERWRITERS (a) HSD acts as principal underwriter for the following investment companies: Hartford Life Insurance Company - DC Variable Account I Hartford Life Insurance Company - Separate Account One Hartford Life Insurance Company - Separate Account Two Hartford Life Insurance Company - Separate Account Two (DC Variable Account II) Hartford Life Insurance Company - Separate Account Two (QP Variable Account) Hartford Life Insurance Company - Separate Account Two (Variable Account "A") Hartford Life Insurance Company - Separate Account Two (NQ Variable Account) Hartford Life Insurance Company - Separate Account Ten Hartford Life Insurance Company - Separate Account Three Hartford Life Insurance Company - Separate Account Five Hartford Life Insurance Company - Separate Account Seven Hartford Life Insurance Company - Separate Account Eleven Hartford Life Insurance Company - Separate Account Twelve Hartford Life and Annuity Insurance Company - Separate Account One Hartford Life and Annuity Insurance Company - Separate Account Ten Hartford Life and Annuity Insurance Company - Separate Account Three Hartford Life and Annuity Insurance Company - Separate Account Five Hartford Life and Annuity Insurance Company - Separate Account Six Hartford Life and Annuity Insurance Company - Separate Account Seven American Maturity Life Insurance Company - Separate Account AMLVA American Maturity Life Insurance Company - Separate Account One Nutmeg Life Insurance Company - Separate Account One (b) Directors and Officers of HSD
POSITIONS AND OFFICES NAME WITH UNDERWRITER ---------------------------------------------------------------------------------------------------------------- Robert Arena Senior Vice President/Business Line Principal and Director Diana Benken Chief Financial Officer and Controller/FINOP James Davey Senior Vice President/Business Line Principal Peter Delehanty Senior Vice President/IIP Marketing John N. Gamalis Treasurer Stephen T. Joyce Senior Vice President/Business Line Principal Kenneth A. McCullum Senior Vice President Vernon Meyer Senior Vice President Brian Murphy Director Mark A. Sides Chief Legal Officer and Secretary Martin A. Swanson Vice President/Marketing John C. Walters Chief Executive Officer, President and Director William Wilcox Chief Legal Officer, AML Chief Compliance Officer
Unless otherwise indicated, the principal business address of each of the above individuals is Hartford Plaza, Hartford, CT 06115. ITEM 30. LOCATION OF ACCOUNTS AND RECORDS All of the accounts, books, records or other documents required to be kept by Section 31(a) of the Investment Company Act of 1940 and rules thereunder, are maintained by Hartford at 200 Hopmeadow Street, Simsbury, Connecticut 06089. ITEM 31. MANAGEMENT SERVICES All management contracts are discussed in Part A and Part B of this Registration Statement. ITEM 32. UNDERTAKINGS (a) The Registrant hereby undertakes to file a post-effective amendment to this Registration Statement as frequently as is necessary to ensure that the audited financial statements in the Registration Statement are never more than 16 months old so long as payments under the variable annuity Contracts may be accepted. (b) The Registrant hereby undertakes to include either (1) as part of any application to purchase a Contract offered by the Prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information. (c) The Registrant hereby undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request. (d) Hartford hereby represents that the aggregate fees and charges under the Contract are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Hartford. The Registrant is relying on the no-action letter issued by the Division of Investment Management to American Counsel of Life Insurance, Ref. No. IP-6-88, November 28, 1988. The Registrant has complied with conditions one through four of the no-action letter. SIGNATURES Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has duly caused this Registration Statement to be signed on its behalf, in the Town of Simsbury, and State of Connecticut on this 24th day of April, 2008. HARTFORD LIFE INSURANCE COMPANY - SEPARATE ACCOUNT SEVEN (Registrant) By: John C. Walters *By: /s/ Richard J. Wirth ---------------------------------------- ---------------------------------------- John C. Walters, Richard J. Wirth Co-President, Co-Chief Executive Attorney-in-Fact Officer* By: Lizabeth H. Zlatkus ---------------------------------------- Lizabeth H. Zlatkus Chairman of the Board, Co-Chief Executive Officer, Co-President*
HARTFORD LIFE INSURANCE COMPANY (Depositor) By: John C. Walters ---------------------------------------- John C. Walters, Co-President, Co-Chief Executive Officer* By: Lizabeth H. Zlatkus ---------------------------------------- Lizabeth H. Zlatkus Chairman of the Board, Co-Chief Executive Officer, Co-President*
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons and in the capacity and on the date indicated. Stephen T. Joyce, Senior Vice President, Director* Glenn D. Lammey, Chief Financial Officer, Executive Vice President, Director* John C. Walters, Co-Chief Executive Officer, Co-President, Director* *By: /s/ Richard J. Wirth ----------------------------------- Lizabeth H. Zlatkus, Chairman of the Board, Co-Chief Executive Richard J. Wirth Officer, Co-President, Director* Attorney-in-Fact David M. Znamierowski, Executive Vice President, Chief Investment Date: April 24, 2008 Officer, Director*
333-101932 EXHIBIT INDEX (9) Opinion and Consent of Richard J. Wirth, Senior Counsel. (10) Consent of Deloitte and Touche LLP. (99) Copy of Power of Attorney.