Annual Product Information Notice
Dated May 1, 2023
For
Talcott Resolution Life and Talcott Resolution Life and Annuity OmniSource ®
Group Flexible Premium Variable Life Insurance Policies
We no longer file fully updated prospectuses and statements of additional information (“SAI”) in a Registration Statement with the Securities and Exchange Commission for the above products. However, in order to provide you with updated information that would have been included in the updated prospectuses and SAIs, we are providing you this Annual Product Information Notice. This Notice updates certain information in the prospectuses and SAIs dated May 1, 2007 for the variable life insurance products listed above. Please keep this Notice for future reference.
Important Financial Information
We provide information about our financial strength in reports filed with state insurance departments. You may obtain information about us by contacting us using the information stated on the cover page of this prospectus, visiting our website at www.talcottresolution.com or visiting at the SEC’s website at www.sec.gov. You may also obtain reports and other financial information about us by contacting your state insurance department.
We have included herein the financial statements for the Company and the Separate Account for the year ended December 31, 2022. The Company’s ability to honor death benefit guarantees under the Contract is subject to our claims-paying capabilities and/or financial strength. The financial statements of the Company should not be considered as bearing on the investment performance of the Separate Account. The financial statements of the Separate Account present the investment performance of the Separate Account.
You should review the Company’s financial statements and the Separate Account’s financial statements that are included with this Notice. In addition, the Company’s most recent financial statement information is available at https://www.talcottresolution.com/financialratings.html or requests for copies can also be directed to Talcott Administration Services Company, LLC, (formerly known as Lombard International Administration Services Company, LLC), 1 Griffin Road North, Windsor, CT 06095. Effective on or about September 1, 2023, our corporate offices will be located at 1 American Row, Hartford, CT 06103.
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1. Fund Data
The following is a current list of the Investment Divisions and Portfolios included in this product:
Alger Large Cap Growth Investment Division | Class I-2 of the Alger Large Cap Growth Portfolio of The Alger Portfolios | |
Alger Small Cap Growth Investment Division | Class I-2 of the Alger Small Cap Growth Portfolio of The Alger Portfolios | |
American Funds Asset Allocation Investment Division | Class 2 of the Asset Allocation FundSM of American Funds Insurance Series® | |
American Funds Global Growth Investment Division | Class 2 of the Global Growth FundSM of American Funds Insurance Series® | |
American Funds Global Small Capitalization Investment Division | Class 2 of the Global Small Capitalization FundSM of American Funds Insurance Series® | |
American Funds Growth Investment Division | Class 2 of the Growth FundSM of American Funds Insurance Series® | |
American Funds International Investment Division | Class 2 of the International FundSM of American Funds Insurance Series® | |
DWS Equity 500 Index Investment Division | Class VIP-A of the Deutsche DWS Equity 500 Index of the Deutsche Investments VIT Funds | |
DWS Small Cap Index Investment Division | Class VIP-A of the Deutsche DWS Small Cap Index of the Deutsche Investments VIT Funds | |
Fidelity VIP Equity-Income Investment Division (Effective July 5, 2000, closed to new and subsequent premium payments and transfer of Investment Value) | Initial Class of the Equity-Income Portfolio of the Fidelity Variable Insurance Products | |
Fidelity VIP High Income Investment Division (Effective July 5, 2000, closed to new and subsequent premium payments and transfer of Investment Value) | Initial Class of the High Income Portfolio of the Fidelity Variable Insurance Products | |
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Fidelity VIP Government Money Market Investment Division | Initial Class of the Government Money Market Portfolio of the Fidelity Variable Insurance Products | |
Franklin Rising Dividends VIP Investment Division (formerly, Franklin Rising Dividends Securities Investment Division) |
Class 2 of the Franklin Rising Dividends VIP Fund of the Franklin Templeton Variable Insurance Products Trust (formerly, Franklin Rising Dividends Securities Fund) | |
Franklin Small Cap Value VIP Investment Division (formerly, Franklin Small Cap Value Securities Investment Division) |
Class 2 of the Franklin Small Cap Value VIP Fund of the Franklin Templeton Variable Insurance Products Trust (formerly, Franklin Small Cap Value Securities Fund) | |
Franklin Small-Mid Cap Growth VIP Investment Division (formerly, Franklin Small-Mid Cap Growth Securities Investment Division) |
Class 2 of the Franklin Small-Mid Cap Growth VIP Fund of the Franklin Templeton Variable Insurance Products Trust (formerly named, Franklin Small-Mid Cap Growth Securities Fund) | |
Franklin Strategic Income VIP Investment Division (formerly, Franklin Strategic Income Securities Investment Division) |
Class 1 of the Franklin Strategic Income VIP Fund of the Franklin Templeton Variable Insurance Products Trust (formerly named, Franklin Strategic Income Securities Fund) | |
Franklin Mutual Shares VIP Investment Division (formerly named “Mutual Shares Securities Investment Division”) |
Class 2 of the Franklin Mutual Shares VIP Fund of the Franklin Templeton Variable Insurance Products Trust (formerly named “Mutual Shares Securities Fund”) | |
Templeton Foreign VIP Investment Division (formerly, Templeton Foreign Securities Investment Division) |
Class 2 of the Templeton Foreign VIP Fund of the Franklin Templeton Variable Insurance Products Trust (formerly, Templeton Foreign Securities Fund) | |
Templeton Growth VIP Investment Division (formerly, Templeton Growth Securities Investment Division) |
Class 2 of the Templeton Growth VIP Fund of the Franklin Templeton Variable Insurance Products Trust (formerly, Templeton Growth Securities Fund) | |
Hartford Balanced HLS Investment Division | Class IA of Hartford Balanced HLS Fund | |
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Hartford Capital Appreciation Investment Division | Class IA of Hartford Capital Appreciation HLS Fund | |
Hartford Ultrashort Bond Investment Division (formerly, Hartford Money Market Investment Division) | Class IA of Hartford Ultrashort Bond HLS Fund (formerly, Hartford Money Market HLS Fund) | |
Hartford Stock Investment Division | Class IA of Hartford Stock HLS Fund | |
Hartford Total Return Bond Investment Division | Class IA of Hartford Total Return Bond HLS Fund | |
Hartford Dividend & Growth Investment Division | Class IA of Dividend & Growth Investment | |
Invesco V.I. Global Core Equity Investment Division (Effective July 5, 2000, closed to new and subsequent premium payments and transfer of Investment Value) | Series I of the Invesco V.I. Global Core Equity Fund | |
Invesco V.I. High Yield Investment Division | Series I of the Invesco V.I. High Yield Fund | |
Janus Henderson Balanced Investment Division | Service Shares of the Balanced Portfolio of the Janus Henderson Series | |
Janus Henderson Enterprise Investment Division | Service Shares of the Enterprise Portfolio of the Janus Henderson Series | |
Janus Henderson Flexible Bond Investment Division | Service Shares of the Flexible Bond Portfolio of the Janus Henderson Series | |
Janus Henderson Global Research Investment Division | Service Shares of the Global Research Portfolio of the Janus Henderson Series | |
Janus Henderson Overseas Investment Division | Service Shares of the Overseas Portfolio of the Janus Henderson Series | |
LVIP JPMorgan Core Bond Investment Division | Class 1 Shares of the LVIP JPMorgan Core Bond Portfolio | |
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LVIP JPMorgan Small Cap Core Investment Division | Class 1 Shares of the LVIP JPMorgan Small Cap Core Portfolio | |
LVIP JPMorgan U.S. Equity Investment Division | Class 1 Shares of the LVIP JPMorgan U.S. Equity Portfolio | |
MFS® Growth Investment Division | Initial Class of the MFS® Growth Series of the MFS® Variable Insurance Trust | |
MFS® High Yield Investment Division (formerly, MFS® High Income Investment Division) | Initial Class of the MFS® High Yield Portfolio of the MFS® Variable Insurance Trust II (formerly, MFS High Income Series) | |
MFS® Investors Trust Investment Division | Initial Class of the MFS® Investors Trust Series of the MFS® Variable Insurance Trust | |
MFS® New Discovery Investment Division | Initial Class of the MFS® New Discovery Series of the MFS® Variable Insurance Trust | |
Morgan Stanley VIF Core Plus Fixed Income Investment Division(formerly, the Morgan Stanley UIF Core Plus Fixed Income Investment Division) | Class I of the Core Plus Fixed Income Portfolio of The Variable Insurance Fund, Inc. (formerly, The Universal Institutional Funds, Inc.) | |
Morgan Stanley VIF Emerging Markets Equity Investment Division (formerly, the Morgan Stanley UIF Emerging Markets Equity Investment Division) | Class I of the Emerging Markets Equity Portfolio of The Variable Insurance Fund, Inc. (formerly, The Universal Institutional Funds, Inc.) | |
Morgan Stanley VIF Discovery Investment Division (formerly, the Morgan Stanley VIF Mid Cap Growth Investment Division) | Class 1 of the Discovery Portfolio of The Variable Insurance Fund, Inc. | |
Neuberger Berman AMT Mid Cap Growth Investment Division (Effective July 5, 2000, closed to new and subsequent premium payments and transfer of Investment Value) | I Class Shares of the Mid Cap Growth Portfolio of the Neuberger Berman Advisers Management Trust (formerly named Neuberger Berman AMT Balanced Portfolio) | |
Neuberger Berman AMT Sustainable Equity (formerly Neuberger Berman AMT Large Cap Value) Investment Division | I Class Shares of the AMT Sustainable Equity (formerly Neuberger Berman AMT Large Cap Value) Portfolio of Neuberger Berman Advisers Management Trust |
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The following amends the “Annual Fund Operating Expenses” section of the Fee Tables portion of your prospectus:
Each Investment Division purchases shares of the corresponding underlying Fund at net asset value. The net asset value of an underlying fund reflects the investment advisory fees and other expenses of the underlying Fund that are described in each underlying Fund’s prospectus.
The following table shows the minimum and maximum total operating expenses charged by the underlying Funds expressed as a percentage of average daily net assets, for the year ended December 31, 2022:
Minimum | Maximum | |
Total Annual Fund Operating Expenses (Expenses
that are deducted from Underlying Fund |
0.24% | 1.83% |
Refer to the attached updated underlying Fund prospectuses for updated information about the underlying Funds, including Fund fees, charges and investment objectives.
2. | Fees We Receive from Funds and Related Parties |
The following updates “The Funds” section of the About Us portion of your prospectus:
For the fiscal year ended December 31, 2022, revenue sharing (administrative service payments and/or Rule 12b-1 fees received from Fund complexes (or affiliated entities)), did not exceed:
$299,062.95 (excluding indirect benefits received by offering HLS Funds as investment options).
3. | Legal Matters |
The following amends the Legal Matters section of your prospectus:
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. Certain of the lawsuits and legal actions the Company is involved in assert claims for substantial amounts. While it is not possible to predict with certainty the ultimate outcome of any pending or future case, legal proceeding or regulatory action, we do not expect the ultimate result of any of these actions to result in a material adverse effect on the Company or its Separate Accounts. 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 results of operations or cash flows in particular quarterly or annual periods.
4. | The Company |
The following amends the May 31, 2018 Reorganization and Pending Sale section of your prospectus:
The Company
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On May 31, 2018, pursuant to the Stock and Asset Purchase Agreement entered into on December 3, 2017, by and among Hartford Holdings, Inc. (“HHI”) and its parent company, The Hartford Financial Services Group, Inc., Hopmeadow Acquisition, Inc. ("Buyer"), Hopmeadow Holdings, LP, and Hopmeadow Holdings GP, each of which is funded by a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group, HHI sold all of the issued and outstanding equity of Hartford Life, Inc., the parent of Talcott Resolution Life Insurance Company ("Talcott Resolution") (formerly "Hartford Life Insurance Company") to Buyer ("Talcott Resolution Sale Transaction").
Due to the reorganization described above, any references to “Hartford Life Insurance Company” in your prospectus should be deemed to be replaced with “Talcott Resolution Life Insurance Company” and any references to “Hartford Life and Annuity Insurance Company” should be deemed to be replaced with “Talcott Resolution Life and Annuity Insurance Company.” References to “Hartford Securities Distribution Company” and “HSD” should be deemed to be replaced with “Talcott Resolution Distribution Company” and “TDC,” respectively. The names of Hartford Investment Divisions listed in Section 1 (Fund Data) of the Annual Product Information Notice are NOT changing.
On June 30, 2021, pursuant to the Agreement and Plan of Merger dated as of January 18, 2021, by and among Sutton Holdings Investments, Ltd. (“Buyer”), Sutton Holdings Merger Sub, L.P., Hopmeadow Holdings, LP (“HHLP”) and Hopmeadow Holdings GP LLC, the owners of HHLP sold all of the issued and outstanding equity interests in HHLP, a parent of Talcott Resolution Life Insurance Company and Talcott Resolution Life and Annuity Insurance Company (“Talcott Resolution”), to Buyer, an affiliate of Sixth Street, a global investment firm.
Additionally, effective April 14, 2022, the administrator of your contract, Lombard International Administrative Services Company, LLC (“LIASC”) changed its name to Talcott Administrative Services Company (“TASC”). TASC will continue to administer your Contract. Talcott Resolution remains responsible for paying all contractual guarantees and General Account liabilities under your Contract subject to its financial strength and claims paying ability. The terms, features and benefits of your Contract will NOT change as a result of the sale. Talcott Resolution Distribution Company remains the principal underwriter for the Contracts.
5. | Cybersecurity |
The Cybersecurity section of your prospectus is deleted in its entirety and replaced with the following:
Cybersecurity and Disruptions to Business Operations
We rely heavily on interconnected computer systems and digital data to conduct our annuity products business. Because our business is highly dependent upon the effective operation of our computer systems and those of our business partners, our business is vulnerable to disruptions from utility outages, and susceptible to operational and information security risks resulting from information systems failure (e.g., hardware and software malfunctions), and cyber-attacks. These risks include, among other things, the theft, misuse, corruption and destruction of data maintained online or digitally, interference with or denial of service, attacks on websites and other operational disruption and unauthorized release of confidential customer information. Such systems failures and cyber-attacks affecting us, any third-party administrator, the underlying funds, intermediaries and other affiliated or third-party service providers may adversely affect us and your Contract Value. For instance, systems failures and cyber-attacks may interfere with our processing of contract transactions, including the processing of orders from our website or with the underlying funds, impact our ability to calculate Accumulation Unit value, cause the release and possible destruction of confidential customer or business information, impede order processing, subject us and/or our service providers and intermediaries to regulatory fines and financial losses and/or cause reputational damage. Cybersecurity risks may also impact the issuers of securities in which the underlying funds invest, which may cause the funds underlying your contract to lose value. . There may also be an increased risk of cyber-attacks during periods of geopolitical or military conflict (such as Russia's invasion of Ukraine and the resulting response by the United States and other countries). There can be no assurance that we or the underlying funds or our service providers will avoid losses affecting your contract due to cyber-attacks or information security
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breaches in the future.
We are also exposed to risks related to natural and man-made disasters, including public health crises (such as COVID-19), terrorist acts, and other severe events that could adversely affect our ability to conduct our business operations. While we have adopted a business continuity plan and taken precautions, we cannot assure you that such events will not result in short- or long-term interruptions to our business operations, particularly if such events affect our computer systems or result in a significant number of our employees becoming unavailable. Interruptions to our business operations may interfere with our ability to effectively administer the Contract, including our ability to process orders and calculate Contract Value. Our third-party service providers and other third-parties related to our business (such as financial intermediaries or, in the case of our variable products, underlying funds) are subject to similar risks, risks of political instability, and disruptions to their business operations may cause interruptions to our own business operations. Even if our employees and the employees of our service providers are able to work remotely, those remote work arrangements could result in our business operations being less efficient than under normal circumstances and could lead to delays in our processing of Contract-related transactions, including orders from Contract owners.
The impact of the outbreak and continuing spread of the novel coronavirus ("COVID-19") and the related disruption to the worldwide economy are affecting companies across all industries. Worldwide health emergency measures to combat the spread of the virus have caused severe disruption resulting in an economic slowdown. The duration and impact of the COVID-19 public health crises on the financial markets, overall economy and our operations are uncertain, as is the efficacy of government and central bank interventions. Additionally, we are unable to determine what, if any, actions our regulators may take in response to the COVID-19 public health crises and its impact on financial markets and our operations. At this time, the Company is not able to reliably estimate the length and severity of the COVID-19 public health crises and, as such, cannot quantify its impact on the financial results, liquidity and capital resources of the Company and its operations in future periods.
6. | Fraud Prevention |
The following section is added to your prospectus.
Fraud Prevention
Four Simple Steps to Safeguard Your Account Against Fraud
We take protection of our customer accounts and information seriously. With the number of security breaches on the rise, it is a good time to remind you, our clients, to increase your awareness and protect yourself from fraud. We recommend four easy ways you can help protect yourself and your investments.
1. Strengthen Your Password
A strong password is your primary line of defense, which is why criminals attempt to acquire them. Passwords should be complex and difficult to guess. In order to ensure their ongoing effectiveness, passwords should be changed on a regular basis.
2. Keep Your Information Current
Make sure your contact information, including mailing address, email address and phone number is up to date with us. This will ensure that you receive your important documents.
3. Be Aware
Learn to recognize phishing emails, suspicious phone calls and texts from individuals posing as legitimate organizations, such as a bank, credit card company and government agencies. Do not click on links or download attachments from unknown sources.
4. Review Your Account Statements and Notify Law Enforcement of Suspicious Activity
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As a precautionary measure, we recommend that you remain vigilant by reviewing your account statements and credit reports closely. If you detect any suspicious activity on an account, you should promptly notify the financial institution or company with which the account is maintained. You also should promptly report any fraudulent activity or suspected incidence of identity theft to proper law enforcement authorities or the Federal Trade Commission (FTC).
To file a complaint with the FTC, you may do so at www.ftc.gov/idtheft or call 1-877-ID-THEFT (877-438-4338). The FTC mailing address is 600 Pennsylvania Ave. NW, Washington, DC 20580. Complaints filed with the FTC will be added to the FTC’s Identity Theft Data Clearinghouse, which is a database made available to law enforcement agencies.
Obtain a Copy of Your Credit Report
You may obtain a free copy of your credit report from each of the three major credit reporting agencies once every 12 months by visiting www.annualcreditreport.com, calling toll-free 877-322-8228, or by completing an Annual Credit Report Request Form (found on the website) and mailing it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348. Or you can elect to purchase a copy of your credit report by contacting one of the three national credit reporting agencies. Contact information for the three national credit reporting agencies is provided below:
Equifax (800) 685-1111 www.equifax.com P.O. Box 740241 Atlanta, GA 30374 |
Experian (888) 397-3742 www.experian.com P.O. Box 2002 Allen, TX 75013 |
Transunion (800) 888-4213 www.transunion.com P.O. Box 1000 Chester, PA 19016 |
Additional Free Resources on Identity Theft
You may wish to review the tips provided by the FTC on how to avoid identity theft. For more information, please visit www.consumer.ftc.gov/topics/privacy-identity or call 1-877-ID THEFT (877-438-4338).
7. | Premiums |
You may send premium payments to us by means of the following methods:
By Mail
Make your check payable to: Talcott Resolution
Note your Policy/Certificate number on the check and cover letter.
Mail your check to:
Attn: Document Controls Services
Talcott Resolution-(Private Placement Life Insurance)
1 Griffin Road North, Windsor, CT 06095
On or about September 1, 2023, mail checks to:
Attn: Document Controls Services
Talcott Resolution-(Private Placement Life Insurance)
1 American Row
Hartford, CT 06103
By Wire
You may also arrange to pay your premium by wire by calling Talcott Administration Services Company, LLC* at 1-800-862-6668.
*Talcott Administration Services Company, LLC (“TASC”) is the Third Party Administrator (“TPA”) for certain insurance policies issued by Talcott Resolution Life Insurance Company and Talcott Resolution Life and Annuity Insurance Company (“Talcott Resolution”) pursuant to an Administrative Services Agreement.
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Additional Information and Contacting Talcott Resolution
In addition to this Notice, you will continue to receive Talcott Resolution company and separate account financial statements and the updated underlying fund prospectuses. You will also receive each underlying fund’s annual and semi-annual reports as well as policyholder reports. If you have consented to electronic delivery of the prospectus information, you may find it on the https://reportal.lombardinternational.com website; otherwise, for policy information or assistance with the Reportal website, please contact our customer service representatives at Talcott Administration Services Company, LLC via telephone at 860-791-0600 or via mail at Lombard International Administration Services Company, LLC, 1 American Row, Hartford, CT 06103.
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