The Plan Dividend is a payment of monies due to policyholders that chose to Opt-In to the rehabilitation plan (the "Plan") for Fidelity** after the company was placed into receivership. The payment may include both interest and liquidity lost due to Contract Changes mandated by the Plan.

The exact amount of the Trust* assets has now been determined and the Plan Dividends have been calculated. Plan Dividend distributions will begin on December 1, 2000. An eligible policyholder should be receiving a letter from the Trust which will include a Plan Dividend Summary which reflects the total plan dividend, amount paid, and balance due such policyholder.

Everyone who elected to Opt-In to the Plan may be eligible for the Plan Dividend, subject to the following: (a) certain conditions imposed by the Rehabilitation Plan, and (b) whether a loss of interest or loss of liquidity balance accrued for an eligible policyholder. Questions 16 and 17 below describe how loss of interest and loss of liquidity are calculated for eligible policyholders.

The Deputy Receiver will begin Plan Dividend distributions to eligible policyholders on or about December 1, 2000, if the Trust has a current address for such policyholders. If you do not receive your distribution notice by January 15, 2001, and believe you should have received a Plan Dividend payment, please contact the Trust by phone at 1-888-660-7083 or by e-mail at admin@fblic.com.

5. How will the Trust issue my Plan Dividend payment?

Your Plan Dividend payment will either be credited to your active Hartford deferred annuity or your active life insurance policy, or will be mailed directly to you from the Trust* if your policy is annuitized, or if you no longer maintain an active Hartford policy. The payment will only be directed to Hartford or you, unless you returned your Distribution Request form before November 17, 2000, and requested the Plan Dividend payment be directed elsewhere.

6. Will Hartford Life pay the Plan Dividend?

No. The Trust assumed the Plan Dividend obligation from Fidelity** under the terms of the Plan. The Plan Dividend is not an obligation of Hartford, but Hartford has agreed to credit any Plan Dividend paid by the Trust to the accounts of active Hartford policyholders.

7. If I initially "Opted In" and no longer hold an active Hartford policy, will I receive notification and a Plan Dividend payment?

Yes, you will receive a notification and payment from the Trust if you are an eligible policyholder entitled to receive a Plan Dividend amount, provided that the Trust has been furnished with your current address. A notification and payment will not be made to policyholders who are ineligible for a Plan Dividend payment.

If you did not receive a notice letter and believe you should have received a Plan Dividend payment, you should contact the Trust at the phone number, address or e-mail below.

8. Should the Plan Dividend payment be included in my gross income for federal income tax purposes?

The following information is not intended to be tax advice, and you should consult your tax consultant for advice on all tax matters that may affect your Plan Dividend distribution election.

If you have an active Hartford deferred annuity or life insurance policy, your Plan Dividend payment will be applied to your policy and continue to grow tax-deferred. If your Hartford deferred annuity or life insurance policy is no longer in force, you should have made an election and returned the Distribution Request Form to the Trustee of the Trust* before November 17, 2000, to indicate whether taxes should be withheld from your Plan Dividend payment. Current tax law requires that a federal income tax of ten percent (10%) be withheld from the taxable portion of certain payments you receive from life insurance and annuity contracts, unless you have informed the Trust that you elect not to have tax withheld from those payments. Even if you elect not to have federal income tax withheld, you are still liable for payment of federal income tax on the taxable portion of the Plan Dividend payment. If the Trust has not received your election by November 17, 2000, it will withhold taxes from the Plan Dividend payment on the assumption that the entire Plan Dividend should be included in your gross income for federal income tax purposes.

9. I received a letter from the Trust stating that my Plan Dividend was being credited to my Hartford account (Active letter) and later received a letter from the Trust enclosing my Plan Dividend (Terminated letter). Why and what does it mean?

This situation may have occurred for one of the following two reasons:

10. When will I receive a payment or contribution from my participating state Guaranty Association?

In most cases, contributions from participating state Guaranty Associations, if any, will be included in Plan Dividend checks sent in this first distribution or in the amounts sent to Hartford on behalf of policyholders whose restructured and assumed contracts remain in force. A Plan Dividend Summary will be sent at the time of the Plan Dividend distribution and will outline the amount of the dividend and the portion, if any, paid by a Guaranty Association. In some cases, the amount paid by a Guaranty Association will be sent separately by the association.

A Guaranty Association contribution was not made for all policyholders. The determination of coverage is made by the applicable state Guaranty Association. In addition, some state Guaranty Associations did not participate in the Fidelity rehabilitation plan, and, thus, the non-participating state Guaranty Associations have not yet contributed any amount toward the Plan Dividend for eligible policyholders. This does not mean that a non-participating state Guaranty Association has no legal liability to former Fidelity policyholders. You may have rights against non-participating state Guaranty Associations under applicable Guaranty Acts.

12. Which Guaranty Associations are non-participating?

The non-participating state Guaranty Associations are as follows: Arizona, California, Florida, Georgia, Kansas, Maryland, Texas, and Washington. In addition, the Guaranty Associations in Colorado, Louisiana, and the District of Columbia are not participating because they did not exist at the time Fidelity was placed in receivership. The New York Security Fund is not participating because Fidelity was not licensed in that state; however, the Virginia Life, Accident and Sickness Insurance Guaranty Association (the "Virginia Association") has covered New York resident policyholders who are eligible for coverage by the Virginia Association.

13. When will I know whether other state Guaranty Associations may elect to participate in the Plan?

Non-participating state Guaranty Associations have decided not to participate in the Fidelity rehabilitation plan. If you believe you have a claim against a non-participating Guaranty Association, you should contact them directly, contact the insurance regulatory officials of your state (or, if different, in the state in which you resided at the time you purchased your Fidelity policies), or consult with your own legal counsel. The non-participating state Guaranty Associations are as follows: Arizona, California, Florida, Georgia, Kansas, Maryland, Texas, and Washington.

14. When will the Deputy Receiver know about additional distributions?

We do not know at this time if additional distributions will be made by the Trust. That will depend on a variety of factors that cannot be predicted or finalized for some time.

15. Am I eligible for additional distributions?

If you are an eligible policyholder, a Plan Dividend Summary will be sent to you when your Plan Dividend is distributed. The summary will reflect your Total Plan Dividend Due and your Plan Dividend Balance. If your Plan Dividend Summary shows a balance greater than zero, then you are eligible for future additional distributions. If your Plan Dividend Summary shows a zero amount for the Plan Dividend balance, you have been paid in full and will not be eligible for additional distributions.

The interest is calculated as the difference between the interest that would have been credited to your account if your Fidelity contract had remained in force after June 15, 1993, and the interest actually credited by Hartford. Loss of interest will only be paid on policies which were active after June 15, 1993, and only for the time they were active after that date.

The loss of liquidity is calculated as the difference between surrender charges that would have been imposed had the policy remained in force after June 15, 1993, and the surrender and market value adjustment charges actually applied to your account after that date. Loss of liquidity is only paid to those who have taken a partial loan or partial surrender and those who have totally surrendered their policies.

18. When my Plan Dividend payment was applied to my policy account value at Hartford, was the paid amount subject to a new surrender charge scale?

No, the money applied to the policy account value did not trigger a new surrender charge scale. However, checks endorsed over to Hartford will be subject to a new surrender charge schedule under the following limited circumstance: (a) the Trust issued a direct Plan Dividend payment to you, and (b) you subsequently endorsed the Trust's payment over to Hartford for deposit into your Hartford policy account.

19. When my Plan Dividend payment was applied to my policy account value at Hartford, how is interest credited on the new funds?

Hartford will credit a new interest rate on the Plan Dividend funds that it receives from the Trust. Call Hartford for additional information regarding the credited interest rates.

20. Do I need to notify Hartford, the Trust, or both of an address change?

Yes, you need to notify Hartford if you have an active account, and you need to notify the Trust if your policy is (or later becomes) inactive with Hartford.

21. WHY DID I RECEIVE A LIMITED PLAN DIVIDEND PAYMENT OR NO PAYMENT AT ALL?

You may have received a limited Plan Dividend payment or no payment at all based on certain policy transactions. These policy transactions may include policy surrenders, exchanges, loans, annuitizations, death claims, etc. as described in more detail below. The information below is a guide of typical reasons why a Plan Dividend was limited or not paid to certain former policyholders of Fidelity.

a. Option One Contract Holders - An Option One Contract Holder ("Option One") refers to a policyholder who surrendered or partially surrendered a Fidelity insurance policy during receivership. When Hartford assumed Fidelity's insurance policies, certain Option One holders decided to purchase a new Hartford insurance policy with the surrender or partial surrender proceeds paid by Fidelity. In such instances, the new Hartford policy (to the extent it was purchased with surrender or partial surrender proceeds) is not eligible for a Plan Dividend because such dividend may only be paid toward the original Fidelity insurance policy assumed and restructured by Hartford on June 15, 1993. Option One holders surrendered or partially surrendered their original Fidelity insurance policies before June 15, 1993, and consequently, such holders are not eligible for a Plan Dividend on the surrendered portion of the original Fidelity policies.

b. Death Claims On Life Insurance Policies - If a policyholder, who held a former Fidelity life insurance policy that was thereafter assumed by Hartford, passed away on or before June 15, 2000, the policyholder's beneficiary (e.g., estate, heirs, etc.) will receive the policy death benefit payment from Hartford. With one exception noted below, the beneficiaries of such life insurance policies will be ineligible for the Plan Dividend because, in accordance with the Plan, the death benefit paid by Hartford will compensate the beneficiaries for any accrued loss of liquidity or loss of interest Plan Dividend that may be applicable to such policies. A universal life insurance policy with a death benefit equal to the face amount plus the account value of such policy is the sole exception to this general rule, and these policies will be eligible to receive a Plan Dividend, regardless of whether a death benefit claim was paid for such policy.

c. Annuitized or Matured policy - If the former Fidelity insurance policy matured or annuitized prior to the Hartford policy assumption on June 15, 1993, the insurance policy terminated upon the policy maturity or annuitization. The former Fidelity policyholder may have opted to purchase a new Hartford insurance policy with the matured or annuitized policy proceeds, but the new insurance policy is not a restructured insurance policy of Fidelity; thus, the new Hartford policy is not eligible for a Plan Dividend payment. The Plan Dividend is only paid on original policies of Fidelity that were assumed and restructured by Hartford on June 15, 1993.

d. Variable Annuities and Life Policies - On or after June 15, 1993, certain former Fidelity policyholders elected to exchange their insurance policies for variable annuities or variable life insurance policies offered by Hartford. In such instances, the variable annuity or variable life insurance policyholders are only eligible for the loss of liquidity portion of the Plan Dividend that may have been triggered upon policy exchange, as well as any loss of interest Plan Dividend incurred prior to the date of variable policy exchange. A variable policyholder is not eligible for a loss of interest Plan Dividend after policy exchange because the loss of interest Plan Dividend applies only to Fidelity's original policies assumed by Hartford, not to new Hartford policies.

The loss of liquidity portion of the Plan Dividend for each of these policies consists of the surrender and Market Value Adjustment ("MVA") charges assessed by Hartford on policy surrender less any remaining surrender charges on the original Fidelity policy for such policyholder. MVA charges could be positive or negative at the time of surrender, and whether the charge was positive or negative would depend on the MVA charges then in effect at Hartford upon the date of policy surrender. For example, assume the Fidelity surrender charge was $350 and that Hartford charged a surrender charge of $250 and market value adjustment ("MVA") charge of $50 upon policy surrender. In this example, there would be no loss of liquidity Plan Dividend earned by the policyholder because the Hartford surrender and MVA charges (i.e., a total charge of $300) are less than the surrender charge imposed by the original Fidelity policy (i.e., a total charge of $350). A Plan Dividend loss of liquidity would have been earned if the Hartford surrender and MVA charges had been more than the surrender charge imposed by the original Fidelity insurance policy. Any loss of liquidity portion of the Plan Dividend earned accrued interest at 3% per annum from the date incurred until June 15, 2000.

e. Other issues which affect Loss of Liquidity - loans on policies and policies that become annuitized after Hartford's assumption will typically reduce the loss of liquidity portion of the Plan Dividend.

f. General Considerations - refer to FAQ items 16 and 17 for additional information. As noted by FAQ item 16, a loss of interest Plan Dividend will only accrue if your original Fidelity insurance policy would have earned more interest than the restructured Fidelity policy assumed by Hartford. As noted by FAQ item 17, a loss of liquidity Plan Dividend will only accrue if the surrender and MVA charges imposed by Hartford upon policy surrender were greater than the surrender charge imposed by your original Fidelity insurance policy.

The above guide is not an exhaustive list of reasons as to why a Plan Dividend was limited or not paid to former policyholders of Fidelity. Former Fidelity policyholders may contact a Trust representative, at the address or telephone number listed in FAQ item 22, if they would like to discuss the reasons why a Plan Dividend was limited or not paid for their former Fidelity insurance policy. Former policyholders of Fidelity will not be eligible for a subsequent Plan Dividend payment, if any is paid by the Trust in the future, if they were not eligible to receive an initial Plan Dividend payment. Similarly, former Fidelity policyholders will be ineligible for a subsequent Plan Dividend payment, if any, if the Plan Dividend Summary reported to such policyholders (i.e., in correspondence from the Trust) reflects a zero balance due for the Plan Dividend.

22. Whom may I contact if I have additional questions?

For questions regarding in force Hartford annuity policies, you may call toll-free at 1-800-862-6668 or write to: Hartford Life, P.O. Box 5085, Hartford, CT 06102-5085

For questions regarding in force Hartford life insurance policies, you may call toll-free at 1-800-243-5433 or write to: National Service Center, P.O. Box 59179, Minneapolis, MN 55459-0179.

For all other questions you may contact the Trust toll-free at 1-888-660-7083 or write to the Trust at P.O. Box 83438, Lincoln, NE 68501, or you may e-mail your questions to admin@fblic.com.