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$3.4 BILLION TRANSFER ENDS TWO YEARS OF FINANCIAL UNCERTAINTY FOR FIDELITY BANKERS POLICYHOLDERS

 SIMSBURY, Conn., June 15 /PRNewswire/ -- More than $3.4 billion in policyholder account values were transferred today from Fidelity Bankers Life Insurance Co. to Hartford Life Insurance Co. This transfer marks the final chapter in a process that has kept 163,000 Fidelity Bankers policyholders from accessing their policies for more than two years.
 Fidelity Bankers was placed in receivership on May 13, 1991 by Virginia Insurance Commissioner Steven T. Foster. Under a rehabilitation plan created by Foster and Hartford Life, individuals who chose to transfer their policies to Hartford Life will have 100 percent of their account values restored.
 More than 75 percent of Fidelity Bankers policyholders elected to participate in the Hartford Life plan. "We are extremely glad to play a part in resolving this long and trying period of uncertainty for these former Fidelity Bankers clients," said Thomas M. Marra, Hartford Life vice president and director, individual annuity operations. "We're also gratified that such a large percentage put their trust in our company. This was a major decision for these individuals. Many of them are retirees who placed significant portions of their life savings in these contracts."
 Along with the restoration of policyholders' account values, those who chose to take part in Hartford Life's plan will receive a plan credit, and the opportunity for a plan dividend.
 The plan credit was designed to compensate policyholders for their inability to gain access to their account values and for any loss of interest occurring during receivership.
 The plan dividend was designed to compensate policyholders for potential interest and liquidity loss following the effective date of their Hartford Life account. The dividend will be credited, to the extent that assets are available, seven years after the effective date.
 Individuals who chose not to participate in Hartford Life's plan will surrender their Fidelity Bankers policies and receive approximately 85 percent of their account values in cash. The remaining 15 percent will be invested in an annuity issued by a new mutual company formed under the rehabilitation plan. Policyholders will not be able to cash out these annuities for two years.
 Commenting on the extent of the participation in Hartford Life's plan, Marra said he felt the company's ratings and financial stability played a significant role in policyholders' decisions. "Hartford Life has a long-standing strategy of careful, conservative investment practices. That has given a lot of people -- including Fidelity's former policyholders -- a high degree of comfort in doing business with us."
 The company's investment portfolio includes minimal mortgage and real estate investments (less than 1 percent of statutory assets). Nearly 90 percent of its assets are invested in fixed income securities, and better than 99 percent of its bonds are investment-grade. Hartford Life has received the highest ratings possible from Standard & Poor's. A.M. Best and Duff & Phelps. Moody's Insurance Rating Service described the company's portfolio as "among the best in the industry."
 Hartford Life is the 15th largest U.S. life insurer in terms of assets. It is a member of ITT Hartford Insurance Group, one of the oldest and largest insurance organizations in the nation with $51 billion in assets. ITT Hartford is owned by ITT Corp., a highly- diversified manufacturing and services organization, with worldwide assets of $69 billion.
 -0- 6/15/93
 /CONTACT: Gregory Potter, 203-843-8857 (office), 203-653-6061 (home), or Joseph Fazzino, 203-843-8180 (office), 203-489-0055 (home), both of ITT Hartford/


CO: ITT Hartford ST: Connecticut IN: INS SU:

SJ -- NE014 -- 2331 06/15/93 16:50 EDT
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Publication:PR Newswire
Date:Jun 15, 1993
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