SUPPLEMENT DATED JANUARY 3, 2006 TO THE PROSPECTUS DATED MAY 2, 2005
THE TRAVELERS INSURANCE COMPANY FIXED ANNUITY
The following information supplements, and to the extent inconsistent therewith,
replaces the information in the prospectus. Please retain this supplement and
keep it with the prospectus for future reference.
Under the section entitled "Distribution of the Contracts" the second paragraph
is replaced with the following:
The principal underwriter enters into selling agreements with certain
broker-dealers registered under the Act. Under the selling agreements
such broker-dealers may offer Contracts to persons who have established
an account with the broker-dealer. In addition, the Company may offer
certificates to members of certain other eligible groups. The Company
will pay a maximum commission of 6% of the Purchase Payment for the
sale of a Contract. Tower Square Securities, Inc. and Metropolitan Life
Insurance Company, affiliates of the Company, receive greater
compensation for selling the contract than nonaffiliated
broker-dealers.
From time to time, the Company may offer customers of certain
broker-dealers special interest rates and negotiated commissions. In
addition, the Company may offer Contracts to members of certain other
eligible groups through trusts or otherwise.
METROPOLITAN LIFE INSURANCE COMPANY/CITISTREET ASSOCIATES LLC. The
Company and TDLLC have entered into a selling agreement with
Metropolitan Life Insurance Company. Metropolitan Life Insurance
Company and CitiStreet Associates LLC are affiliates of the Company and
MetLife, Inc. Effective January 3, 2006, CitiStreet Associates LLC
representatives who had been appointed by CitiStreet Equities LLC to
offer the Contract to customers commenced offering the Contract to
customers as registered representatives of Metropolitan Life Insurance
Company. The Company has also entered into an arrangement with
CitiStreet Associates LLC whereby the Company pays CitiStreet
Associates LLC fees in connection with CitiStreet Associates' provision
of certain administrative, recordkeeping, marketing and support
services in relation to annuity contracts sold by CitiStreet Equities
LLC in connection with Section 401(a), 401(k), 403(b), 457(b) and
408(b) plans. Any compensation payable to CitiStreet Associates LLC,
CitiStreet Equities LLC or Metropolitan Life Insurance Company will be
made by TDLLC or the Company out of its own assets and will not result
in any additional direct charge to you. Metropolitan Life Insurance
Company, CitiStreet Equities LLC and CitiStreet Associates LLC are
affiliates of the Company and MetLife, Inc.
The Contract is sold through licensed representatives of Metropolitan
Life Insurance Company, which is registered with the Securities and
Exchange Commission as a broker-dealer under the Securities Exchange
Act of 1934 and is a member of the National Association of Securities
Dealers, Inc. The Contract also may be sold through the mail or over
the Internet.
The licensed sales representatives who sell the annuities may be
compensated for these sales by payments from Metropolitan Life
Insurance Company. There is no front-end sales load deducted from
purchase payments to pay sales commissions. Sales representatives in
the MetLife Resources division must meet a minimum level of sales
production in order to maintain employment with Metropolitan Life
Insurance Company. Metropolitan Life Insurance Company sales
representatives who are not in the MetLife Resources division
("non-MetLife Resources Metropolitan Life Insurance Company sales
representatives") must meet a minimum level of sales of proprietary
products in order to maintain employment with Metropolitan Life
Insurance Company.
Metropolitan Life Insurance Company makes cash payments to its licensed
sales representatives for the products they sell and service based upon
a `gross dealer concession' model. Gross dealer concession may also be
paid when the Contract is annuitized. The amount of this gross dealer
concession payable upon annuitization depends on several factors,
including the number of years the Contract has been in force.
Compensation to the sales representative is all or part of the gross
dealer concession. Compensation to sales representatives in the MetLife
Resources division is based upon premiums and purchase payments applied
to all products sold and serviced by the representative. Compensation
to non-MetLife Resources Metropolitan Life Insurance Company sales
representatives is determined based upon a formula that recognizes
premiums and purchase payments applied to proprietary products sold and
serviced by the representative as well as certain premiums and purchase
payments applied to non-proprietary products sold by the
representative. Proprietary products are those issued by Metropolitan
Life Insurance Company or its affiliates. Because one of the factors
determining the percentage of the gross dealer concession that applies
to non-MetLife Resources Metropolitan Life Insurance Company sales
representatives' compensation is sales of proprietary products, these
sales representatives have an incentive to favor the sale of
proprietary products. Because non-MetLife Resources Metropolitan Life
Insurance Company sales managers' compensation is based upon the sales
made by the representatives they supervise, these sales managers also
have an incentive to favor the sale of proprietary products.
Non-MetLife Resources Metropolitan Life Insurance Company sales
representatives and MetLife Resources sales representatives and their
managers may be eligible for additional cash compensation, such as
bonuses, equity awards (such as stock options), training allowances,
supplemental salary, financial arrangements, marketing support, medical
and other insurance benefits, retirement benefits and other benefits
based primarily on the amount of proprietary products sold. Because
non-MetLife Resources Metropolitan Life Insurance Company sales
representatives' and MetLife Resources sales representatives' and their
managers' additional cash compensation is based primarily on the sale
of proprietary products, non-MetLife Resources Metropolitan Life
Insurance Company sales representatives and MetLife Resources sales
representatives and their managers have an incentive to favor the sale
of proprietary products.
Sales representatives who meet certain productivity, persistency, and
length of service standards and/or their managers may be eligible for
additional cash compensation. Moreover, managers may be eligible for
additional cash compensation based on the sales production of the sales
representatives that the manager supervises.
Metropolitan Life Insurance Company also pays the business unit
responsible for the operation of the Metropolitan Life Insurance
Company distribution system.
Metropolitan Life Insurance Company also offers its sales
representatives and their managers non-cash compensation incentives,
such as conferences, trips, prizes and awards. Other non-cash
compensation payments may be made for other services that are not
directly related to the sale of products. These payments may include
support services in the form of recruitment and training of personnel,
production of promotional services, and other support services.
From time to time, CitiStreet Associates LLC pays organizations,
associations and nonprofit organizations compensation to endorse or
sponsor the Company's variable
annuity contracts or for access to the organization's members. This
compensation may include: the payment of fees, funding their programs,
scholarships, events or awards, such as a principal of the year award;
leasing their office space or paying fees for display space at their
events; purchasing advertisements in their publications; or reimbursing
or defraying their expenses. We also retain finders and consultants to
introduce CitiStreet Associates LLC to potential clients and for
establishing and maintaining relationships between CitiStreet
Associates LLC and various organizations.
TOWER SQUARE SECURITIES. The Company and TDLLC have entered into a
selling agreement with Tower Square Securities, Inc. ("Tower Square"),
which is affiliated with the Company. Registered representatives of
Tower Square, who are properly licensed and appointed, may offer the
Contract to customers. In addition to compensation described above,
Tower Square representatives are eligible for various cash benefits,
such as bonuses, commission advances and non-cash compensation programs
offered by the Company, such as retirement and other benefit plans for
agents and the ability to purchase Citigroup common stock at a
discount. Sales of the Contracts may help qualify a Tower Square
representative for such benefits. Sales representatives may receive
other payments from the Company for services that do not directly
involve the sale of the Contracts, including payments made for the
recruitment and training of personnel, production of promotional
literature, and similar services. In addition, sales representatives
who meet certain Company productivity, persistency and length of the
services standards may be eligible for additional compensation. In
addition to the compensation described above, Tower Square receives
compensation for meeting certain gross sales goals and net sales goals
(sales less redemptions) which may cause Tower Square or its
representatives to favor the Company's products.
L-24570 January, 2006