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Filed pursuant to Rule 424(b)(3)
Registration No. 333-41364
THE TRAVELERS INSURANCE COMPANY
REGISTERED FIXED ACCOUNT OPTION
FOR USE WITH ANNUITY CONTRACTS
The Fixed Account Option described in this prospectus is available only in
conjunction with certain variable annuity contracts (the "Contracts" and/or
"Certificates") issued by The Travelers Insurance Company (the "Company") and
funded by The Travelers Separate Account QP for Variable Annuities or The
Travelers Separate Account Five Variable Annuities (the "Separate Account"). The
Company may, in the future, offer the Fixed Account option to additional
contracts funded through other separate accounts. The Separate Account in turn
purchases shares in certain underlying mutual funds. The underlying mutual funds
are described in the mutual fund prospectuses. The specific features of the
Contract and the Separate Account are disclosed in greater detail in the
Contract prospectus. This prospectus must be accompanied by and read in
conjunction with the Contract prospectus and the underlying fund prospectuses.
The group annuity contracts may be issued to Contract Owners on an unallocated
or allocated basis.
This prospectus explains:
- the Fixed Account Option
- Travelers Insurance Company
- the Interest Rates
- Transfers to and from the Fixed Account Option
- Surrenders
- Market Value Adjustment
- other aspects of the Fixed Account Option
The Travelers Insurance Company, One Tower Square, Hartford, Connecticut 06183,
is the issuer of the Contracts; Travelers Distribution LLC, One Tower Square
Hartford, Connecticut 06183, is the principal underwriter and distributor of the
Contracts.
THIS PROSPECTUS IS ACCOMPANIED BY A COPY OF THE COMPANY'S LATEST ANNUAL REPORT
ON FORM 10-K FOR THE PERIOD ENDED DECEMBER 31, 1999 AND THE QUARTERLY REPORT ON
FORM 10-Q FOR THE PERIOD ENDED MARCH 31, 2000.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
MUTUAL FUNDS, ANNUITIES AND INSURANCE PRODUCTS ARE NOT DEPOSITS OF ANY BANK, AND
ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR
ANY OTHER GOVERNMENT AGENCY.
PROSPECTUS DATED JANUARY 2, 2001.
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TABLE OF CONTENTS
PAGE
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Glossary of Special Terms................................... 3
Summary..................................................... 4
The Insurance Company....................................... 5
The Fixed Account Option.................................... 5
The Accumulation Period................................... 5
Purchase Payments...................................... 5
Declared Interest Rates of the Initial and Subsequent
Renewal Periods....................................... 5
Cash Values............................................ 6
Transfers
Transfers from the Fixed Account..................... 6
Transfers to the Fixed Account....................... 6
Surrenders............................................. 7
General.............................................. 7
Payment of Full or Partial Surrenders................ 7
Contract Termination................................. 7
Annuity Period............................................ 9
Investments by the Company.................................. 9
Distribution of the Contracts............................... 9
Federal Income Tax Considerations........................... 10
Taxation of the Company................................... 10
Information Regarding the Contracts....................... 10
Available Information....................................... 10
Incorporation of Certain Documents by Reference............. 11
Legal Opinion............................................... 11
Experts..................................................... 11
Financial Statements
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GLOSSARY OF SPECIAL TERMS
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ACCUMULATION PERIOD: The period before annuity payments begin.
ANNUITANT: A Participant on whose life Annuity payments are to be made under a
contract.
ANNUITY: Payment of income for a stated period or amount.
ANNUITY COMMENCEMENT DATE: The date on which Annuity payments are to begin.
ANNUITY PERIOD: The period during which Annuity payments are made.
CASH SURRENDER VALUE: The Cash Value less any amounts deducted upon surrender,
any applicable premium tax and any outstanding loans.
CASH VALUE: The Purchase Payment(s) plus all interest earned, minus all
surrenders, charges and applicable premium taxes previously deducted.
CERTIFICATE ANNIVERSARY: Each anniversary of the Certificate Date.
CERTIFICATE DATE: The date an individual Certificate of Participation is issued
under a group contract.
CERTIFICATE YEAR: Each 12-month period beginning with the date an individual
certificate of participation is issued under a group Contract.
COMPETING FUND: Any investment option under the Plan, which in our opinion,
consists primarily of fixed income securities and/or money market instruments.
CONTRACT ANNIVERSARY: Each anniversary of the Contract Date.
CONTRACT/CERTIFICATE VALUE: The amount of all purchase payments, plus any
applicable credits, plus or minus any investment experience or interest.
CONTRACT DATE: The date shown on the Contract specifications page on which the
Contract is issued.
CONTRACT OWNER: The employer or entity owning the contract.
CONTRACT YEAR: Each 12-month period beginning with the effective date of the
contract.
DECLARED INTEREST RATE(S): One or more rates of interest which may be declared
by the Company. Such rates will never be less than the guaranteed interest rate
stated in the contract and may apply to some or all of the values under the
Fixed Account Option for periods of time determined by the Company.
FIXED ACCOUNT OPTION: An annuity option which does not vary with the investment
experience of a Separate Account as described in this Prospectus.
GENERAL ACCOUNT: The General Account of the Company that holds values
attributable to the Fixed Account Option.
GUARANTEE PERIOD: The period between the initial Premium Payment or Renewal Date
and the Maturity Date during which a Guaranteed Interest Rate is credited.
HOME OFFICE: The Travelers Insurance Company (sometimes referred to as the
"Company") located at One Tower Square, Hartford, Connecticut 06183.
IN WRITING: A written form satisfactory to us and received at our Home Office.
MARKET VALUE ADJUSTMENT: The Market Value Adjustment reflects the relationship,
at the time of surrender, between the rate of interest credited to funds on
deposit under the Fixed Account Option at the time of discontinuance to the rate
of interest credited on new deposits at the time of discontinuance.
OPTIONAL DEATH BENEFIT AND CREDIT: An optional feature available under the
Travelers Retirement Account Contracts where for an additional charge we will
add a credit to each purchase payment equal to 2% of that purchase payment.
Refer to the Travelers Reitrement Account prospectus for more details.
MARKET ADJUSTED VALUE: The value of funds held in the Fixed Account Option
increased or decreased by the Market Value Adjustment.
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PARTICIPANT: An eligible person who is a member in a tax qualified Plan under
Sections 401, 403(b) or 457 of the Internal Revenue Code of 1986, as amended
(the "Code"), or a nonqualified deferred Compensation Plan.
PARTICIPANT'S INDIVIDUAL ACCOUNT: An account to which amounts are credited to a
Participant or Beneficiary under the contract.
PREMIUM TAX: A tax charged by a state or municipality on premiums, Purchase
Payments or contract values.
PURCHASE PAYMENT: The premium payment applied to the Contract.
SALES CHARGE: Any applicable surrender charge or contingent deferred sales
charge, as defined in the Contract.
SEPARATE ACCOUNT: The Travelers Separate Account QP for Variable Annuities or
The Travelers Separate Account Five for Variable Annuities.
SEPARATE ACCOUNT OPTION: A Funding option which varies with the investment
experience of the separate account.
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SUMMARY
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This prospectus describes the Fixed Account Option available as a companion
contract with variable annuity contracts of Separate Account QP (Gold Track and
Gold Track Select Contracts) or Separate Account Five (Travelers Retirement
Account Contracts). The contracts are used with:
-- qualified pension and profit-sharing plans,
-- tax-deferred annuity plans (for public school teachers and employees
and employees of certain other tax-exempt and qualifying employers)
and
-- deferred compensation plans of state and local governments and
nonqualified deferred compensation plans.
-- individual retirement accounts
The Travelers Insurance Company ("we" or the "Company") issues the contracts.
Purchase Payments made under the contracts and directed to the Fixed Account
Option become a part of the Company's General Account. Purchase Payments may
also be allocated to one or more Separate Account Options. The contracts and the
Separate Account Options are described in separate prospectuses. The
prospectuses for the variable annuity contract and underlying mutual funds will
always accompany this prospectus. Please read all prospectuses carefully.
During the Accumulation Period, the Fixed Account Option provides for Purchase
Payments to be credited with an initial interest rate for a 12-month period. The
initial interest rate will be declared quarterly for Gold Track or Gold Track
Select contracts issued in connection with plans established under Section 401,
Section 457, and certain plans established under Section 403(b) of the Code. The
initial interest rate will be declared monthly for all Travelers Retirement
Account contracts and for Gold Track contracts issued in connection with
combination plans established pursuant to Sections 403(b)/401 and certain
contracts issued in connection with Section 403(b) plans.
At the end of the 12-month guarantee period, a renewal interest rate (of at
least 3%) will be determined by the Company. At the end of the initial guarantee
period, the first renewal rate will be guaranteed to the end of the calendar
year. The second and all subsequent renewal rates will be declared each January
1 thereafter, and will be guaranteed through December 31 of that year. The rates
of interest credited will affect a contract or account's Cash Value (see "Cash
Values"). Such rates may also be used to determine amounts payable upon
termination of the contracts. (See "Surrenders -- Contract Termination.")
Generally, the Company intends to invest assets directed to the Fixed Account
Option in investment-grade securities. The Company has no specific formula for
determining the initial interest rates or renewal interest rates. However, such
determination will generally reflect interest rates available on the types of
debt instruments in which the Company intends to invest the amounts directed to
the Fixed Account Option. In addition, the Company's management may also
consider various other factors in determining these rates for a given period,
including regulatory and tax requirements; sales commission and administrative
expenses borne by the Company; general economic trends; and competitive factors.
(See "Investments by the Company.")
The Contract Owner may, during the Accumulation Period, direct all or a portion
of a contract or account's Cash Value under the Fixed Account Option to one or
more of the investment options of the Separate Account. No Sales Charges will be
deducted on such transfers. However, there are restrictions which may limit the
amount that may be so directed and transfers may be deferred in certain cases.
(See "Transfers from the Fixed Account.")
Distributions and transfers from the Fixed Account Option are made on a last-in,
first-out basis. We will determine the Cash Surrender Value as of the next
valuation date after we receive a written request at our Home Office. We reserve
the right to defer payment of the Fixed Account Option for up to six months from
the date we receive the written request. If a payment is deferred for more than
30 days after we receive the request, we will pay a minimum interest rate of 3%
on the amount.
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THE INSURANCE COMPANY
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The Travelers Insurance Company is a stock insurance company chartered in 1864
in the state of Connecticut and has been continuously engaged in the insurance
business since that time. The Company is licensed to conduct life insurance
business in all states of the United States, the District of Columbia, Puerto
Rico, Guam, the U.S. and British Virgin Islands and the Bahamas. The Company is
an indirect wholly owned subsidiary of Citigroup Inc. The Company's home office
is located at One Tower Square, Hartford, Connecticut 06183.
THE FIXED ACCOUNT OPTION
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The Fixed Account Option is available only in conjunction with the purchase of a
variable annuity contract (Gold Track, Gold Track Select or Travelers Retirement
Account) issued by the Company. The Contracts are available as individual or
group Contracts. Participants under group Contracts are issued Certificates
summarizing the provisions of the group Contract. For convenience, we refer to
both individual Contract Owners and Participants as Contract Owners.
The contracts provide for both an Accumulation Period and an Annuity Period.
During the Accumulation Period, the Employee/Trustee may direct Purchase
Payments to the Fixed Account (part of the Company's general account). During
the Annuity Period, the value of the Annuity Contract is used to purchase Fixed
or Variable Annuities. The operation of the contract during the Annuity Period
is described in the contract prospectus accompanying this prospectus.
THE ACCUMULATION PERIOD
PURCHASE PAYMENTS
During the Accumulation Period, all or a portion of Purchase Payments (less any
premium taxes), may be allocated to the Fixed Account Option.
DECLARED INTEREST RATES OF THE INITIAL AND SUBSEQUENT RENEWAL PERIODS
The Fixed Account guarantees an initial interest rate for a 12-month period. For
the following contracts we will declare initial interest rates quarterly:
-- Gold Track Select contracts issued in connection with a plan
established under Sections 401, 457 or 403(b) of the Code,
-- Gold Track contracts for plans established under Sections 401, 457.
For the following, we will declare initial interest rates monthly:
-- Travelers Retirement Account contracts.
-- Gold Track contracts issued in connection with a plan established
under Section 403(b) or combination contracts under Sections
403(b)/401.
At the end of the 12-month guarantee period, a renewal interest rate will be
determined. The rate will never be less than 3%. At the end of the initial
guarantee period, the first renewal rate will be guaranteed to the end of that
calendar year. The second and all future renewal rates will be declared each
subsequent January 1 and guaranteed through December 31 of each year.
The Company has no specific formula for determining the rate(s) of interest that
it will declare. Generally, the rates we determine will reflect interest rates
available on the types of debt instruments in which we intend to invest the
amounts directed to the Fixed Account Option (see "Investments by the Company").
In addition, the Company's management may also consider various other factors in
determining interest rates for a given period, including regulatory and tax
requirements; sales commission and administrative expenses borne by the Company;
general economic trends; and competitive factors. THE COMPANY'S MANAGEMENT WILL
MAKE THE FINAL DETERMINATION AS TO ANY DECLARED INTEREST RATES AND ANY INTEREST
IN EXCESS OF THE GUARANTEED RATE OF 3%. THE COMPANY CANNOT PREDICT NOR GUARANTEE
THE RATES OF ANY FUTURE DECLARED INTEREST IN EXCESS OF 3%.
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CASH VALUES
We will credit amounts held under the Fixed Account Option with interest. The
minimum guaranteed interest rate is 3%. Interest is credited daily. Purchase
Payments are allocated to the Fixed Account Option as of the close of the
business day on which we receive the Purchase Payment at the Home Office.
Therefore, Purchase Payments begin earning interest the day after we receive the
Purchase Payment in good order.
TRANSFERS
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No transfers are allowed between the Fixed Account Option and any Competing
Fund.
The charges for transfers are described in the contract prospectus which
accompanies this prospectus. No Sales Charges apply when a transfer is made.
Amounts previously transferred from the Fixed Account Option to the Separate
Account Options may not be transferred back to the Fixed Account Option or any
Competing Fund for a period of at least 3 months from the date of the transfer.
TRANSFERS FROM THE FIXED ACCOUNT
The Contract Owner may transfer amounts in the Fixed Account Option to one or
more of the Separate Account Options subject to the Competing Fund restrictions
described in your Contract. All transfers will be made on a last-in, first-out
basis. That is, the money most recently deposited or transferred into the
account will be transferred or surrendered first.
We reserve the right to limit transfers from the Fixed Account in any calendar
year to 20% of the Contract/Certificate Cash Value in the Fixed Account Option
as of the end of the preceding Contract/Certificate year. (See also
"Surrenders.")
TRANSFERS TO THE FIXED ACCOUNT
TRAVELERS RETIREMENT ACCOUNT CONTRACTS
The Contract Owner may transfer amounts in the Separate Account Options to the
Fixed Account Option subject to the Competing Fund restrictions described in
your Contract. In addition:
- Amounts previously transferred from a Competing Fund to a Separate
Account Option which is not a Competing Fund may not be transferred to
the Fixed Account Option for a period of at least 3 months from the
date of transfer.
In addition, if the Contract Owner selects the Optional Death Benefit and Credit
under the Contract, the following additional restrictions apply:
- Purchase Payments allocated to a Separate Account Option which is not
a Competing Fund may not be transferred to the Fixed Account for a
period of at least 3 months from the date of the Purchase Payment.
- If a Purchase Payment has been made within the last five
Contract/Certificate years, transfers from the Separate Account
Options to the Fixed Account Option may not exceed 20% per year of the
Contract/Certificate value in the Separate Account Options on the
Contract/Certificate anniversary.
GOLD TRACK AND GOLD TRACK SELECT CONTRACTS
Values held in a Separate Account Option may be transferred to the Fixed Account
Option at any time subject to any Competing Fund restrictions which may apply.
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SURRENDERS
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General
Subject to the termination provisions described below, the Contract Owner may
request a full or partial surrender of Cash Values at any time from the Fixed
Account Option.
Payment of Full or Partial Surrenders
In the event of a partial surrender from the Fixed Account Option, we will pay
the requested value less any applicable Sales Charges. All partial surrenders
will be made on a last-in, first-out basis. If an allocated account is
surrendered for reasons other than contract termination, we will pay the Cash
Value less any Premium Tax, the administrative charge, and any Sales Charges, as
applicable. PLEASE CONSULT THE ACCOMPANYING VARIABLE ANNUITY CONTRACT PROSPECTUS
FOR ANY APPLICABLE SALES CHARGES.
Contract Termination
If the Contract is discontinued, no further Purchase Payments or transfers will
be allowed. On the date we receive a written request to terminate the contract,
or within 31 days after we notify you of our intent to terminate the contract,
any amounts transferred from the Fixed Account Option to the Separate Account
Options during the 30 days before the date of discontinuance will be transferred
back to the Fixed Account Option.
If the Contract is discontinued because of Plan termination due to the
dissolution or liquidation of the employer under US Code Title 11 procedures,
the Cash Surrender Value will be distributed directly to the employees entitled
to share in such distributions pursuant to the plan. Distribution may be in the
form of cash payments, annuity options or deferred annuities. This provision
does not apply to plans established under Section 457 of the Code.
If the Contract Owner requests a full surrender of the contract or of all
contract values held in the Fixed Account Option for reasons other than listed
above; or if the Company discontinues the contract, the Company will determine
the Market Adjusted Value of the Fixed Account Option.
The amount payable to the Contract Owner if a Contract is discontinued may be
lowered by the application of the Market Value Adjustment formula. The formula
is the following:
Market Adjusted Value = Cash Value X (1 + R0)(5)/(1 + R1 + .0025)(5)
Where:
R0 is the interest rate credited to amounts in the Fixed Account
Option at the time of termination,
R1 is the interest rate credited on new deposits for this class of
contracts at the time of termination.
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FOR CONTRACTS ISSUED IN EVERY STATE EXCEPT NEW YORK:
If, as of the date of discontinuance, the Market Adjusted Value is less than the
Cash Value of the Fixed Account Option, the Contract Owner may select one of the
payment methods described below:
1) the Market Adjusted Value (less any applicable Sales Charge) in one lump
sum within 60 days of the date of discontinuance, or
2) The Cash Surrender Value of the Fixed Account Option in installments
over a 5-year period. The amount deducted on Surrender, if any, is
determined as of the date of discontinuance, and will apply to all
installment payments. Interest will be credited to the remaining Cash
Value of the Fixed Account Option during this installment period at a
fixed effective annual interest rate of not less than 3%. The first
payment will be made no later than 60 days following the Contract
Owner's request for surrender or our written notification of our intent
to discontinue the contract. The remaining payments will be mailed on
each anniversary of the discontinuance for four years. During that
period, no additional surrenders are allowed.
If, as of the date of discontinuance, the Market Adjusted Value is greater than
the Cash Value of the Fixed Account Option, the Contract Owner may select one of
the payment methods as described below:
1) the Cash Surrender Value of the Fixed Account Option, in one lump sum
within 60 days of the date of discontinuance, or
2) The Cash Value of the Fixed Account Option in installments over a 5-year
period. Interest will be credited to the remaining Cash Value of the
Fixed Account Option during this installment period at a fixed effective
annual interest rate of not less than 3%. The first payment will be made
no later than 60 days following the Contract Owner's request for
surrender or our written notification of our intent to discontinue the
contract. The remaining payments will be mailed on each anniversary of
the discontinuance for four years. During that period, no additional
surrenders are allowed.
ALLOCATED CONTRACTS ISSUED IN NEW YORK:
If the Market Adjusted Value is less than the Cash Value of the Fixed Account as
of the date of discontinuance, We will pay You the Market Adjusted Value, less
any amounts deducted on surrender, less any loans outstanding in one lump sum.
This amount will never be less than 90% of the Cash Value of the Fixed Account,
less any outstanding loans as of the date of discontinuance. We may defer
payment of this amount for up to six months from the date of discontinuance. If
a payment is deferred more than 10 working days from the date of discontinuance,
we will credit interest during the deferred period in the same manner as
described in this rider.
If the Market Adjusted Value is greater than the Cash Value of the Fixed Account
as of the date of discontinuance, We will pay the Cash Surrender Value of the
Fixed Account as of the date of discontinuance in one lump sum. We may defer
payment of this amount for up to six months from the date of discontinuance. If
a payment is deferred more than 10 working days from the date of discontinuance,
we will credit interest during the deferred period in the same manner as
described in this rider.
UNALLOCATED CONTRACTS ISSUED IN NEW YORK:
You may select either of the following methods of payout:
a) LUMP SUM PAYMENT OPTION. If the Market Adjusted Value is less than the
Cash Value of the Fixed Account as of the date of discontinuance, We
will pay You the Market Adjusted Value, less any amounts deducted on
Surrender, in one lump sum within 60 days of the date of discontinuance.
If the Market Adjusted Value is greater than the Cash Value of the
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Fixed Account as of the date of discontinuance, We will pay You the Cash
Surrender Value of the Fixed Account within 60 days of the date of
discontinuance.
b) INSTALLMENT PAYMENT OPTION. We will pay You the Cash Value of the Fixed
Account in installments over a 5 year period. Interest will be credited
to the remaining Cash Value of the Fixed Account during this installment
period at a fixed effective annual interest rate of not less than 1.5%
below the net effective rate being credited to the contract on the date
of discontinuance. The first payment will be made no later than 60 days
following our mailing the written notice to You at the most current
address available on our records. The remaining payments will be mailed
on each anniversary of the discontinuance date for 4 years. Allowable
distributions shown on the Contract Specifications page are not
permitted during the 5-year installment period.
ANNUITY PERIOD
We will normally make annuity payments within fifteen business days after we
receive a settlement claim, or any other later specified date. Subsequent
payments will be made periodically on the anniversaries of the first payment.
The Separate Account contract prospectus describes more fully the Annuity Period
and annuity options under the contracts. Please note, however, that
annuitization is irrevocable; once fixed Annuity payments have begun, the
annuity benefit cannot be surrendered for a lump sum settlement.
INVESTMENTS BY THE COMPANY
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We must invest our assets according to applicable state laws regarding the
nature, quality and diversification of investments that may be made by life
insurance companies. In general, these laws permit investments, within specified
limits and subject to certain qualifications, in federal, state, and municipal
obligations, corporate bonds, preferred and common stocks, real estate
mortgages, real estate and certain other investments. All General Account assets
of the Company would be available to meet the Company's guarantee under the
Fixed Account Option. The proceeds from the Fixed Account Option will become
part of the Company's general assets and are available to fund the claims of all
classes of customers of the Company.
In establishing Declared Interest Rates, the Company will consider the yields
available on the instruments in which it intends to invest the amounts directed
to the Fixed Account Option. The current investment strategy for the Contracts
is to invest in investment-grade fixed income securities, including public
bonds, privately placed bonds, and mortgages, some of which may be zero coupon
securities. While this generally describes our investment strategy, we are not
obligated to follow any particular strategy except as may be required by federal
and state laws.
DISTRIBUTION OF THE CONTRACTS
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Travelers Distribution LLC (TDC), an affiliate of the Company, is the principal
underwriter of the Contracts. TDC is registered with the Securities and Exchange
Commission under the 1934 Act as a broker-dealer, and is a member of the
National Association of Securities Dealers, Inc.
The principal underwriter enters into selling agreements with certain
broker-dealers registered under the 1934 Act. Under the selling agreements such
broker-dealers may offer Contracts to persons who have established an account
with the broker-dealer. In connection with the sale of Gold Track and Gold Track
Select Contracts, the Company will pay a maximum commission of 5% of the
Purchase Payment for the sale of a Contract.
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In connection with the sale of Travelers Retirement Account Contracts, up-front
compensation will not exceed 7% of the purchase payments made under the
Contracts. If asset based compensation is paid, it will not exceed 2% of the
average account value annually. From time to time, the Company may pay or permit
other promotional incentives in cash, credit or other compensation.
From time to time, the Company may offer customers of certain broker-dealers
special Guaranteed Interest Rates and negotiated commissions. In addition, the
Company may offer Contracts to members of certain other eligible groups through
trusts or otherwise.
FEDERAL INCOME TAX CONSIDERATIONS
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Taxation of the Company
The Company is taxed as a life insurance company under Part I of Subchapter L of
the Code. The assets underlying the Fixed Account Option under the contracts
will be owned by the Company. The income earned on such assets will be the
Company's income.
Information Regarding the Contracts
Tax information of the Contracts/Certificates and distributions is briefly
described in the accompanying Contract Prospectus.
AVAILABLE INFORMATION
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The Company files reports and other information with the Securities and Exchange
Commission ("Commission"), as required by law. You may read and copy this
information and other information at the following locations:
- public reference facilities of the Commission at Room 1024, 450 Fifth
Street, N.W., Washington, D.C.
- the Commission's Regional Offices located at Seven World Trade Center,
New York, New York 10048,
- the Commission's Regional Offices located at Northwestern Atrium
Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661.
Under the Securities Act of 1933, the Company has filed with the Commission a
registration statement (the "Registration Statement") relating to the Fixed
Account Option offered by this Prospectus. This Prospectus has been filed as a
part of the Registration Statement and does not contain all of the information
set forth in the Registration Statement and the exhibits, and reference is
hereby made to such Registration Statement and exhibits for further information
relating to the Company and the Contracts. The Registration Statement and the
exhibits may be inspected and copied as described above. Although the Company
does furnish the Annual Report on Form 10-K for the year ended December 31, 1999
and the first quarter report on Form 10-Q for the period ended March 31, 2000,
to owners of contracts or certificates, the Company does not plan to furnish
subsequent annual reports containing financial information to the annuity
contract or certificate owners described in this Prospectus.
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INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
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The Company's latest Annual Report on Form 10-K and the quarterly report on Form
10-Q for the period ended March 31, 2000 have been filed with the Commission.
They are incorporated by reference into this Prospectus and copies must
accompany this Prospectus.
The Form 10-K and Form 10-Q for the period ended December 31, 1999 and March 31,
2000, respectively contain additional information about the Company, including
audited financial statements for the Company's latest fiscal year. The Company
filed its Form 10-K on March 21, 2000 and its Form 10-Q on May 12, 2000 via
Edgar; File No. 33-33691.
If requested, the Company will furnish, without charge, a copy of any and all of
the documents incorporated by reference, other than exhibits to those documents
(unless such exhibits are specifically incorporated by reference in those
documents). You may direct your requests to The Travelers Insurance Company, One
Tower Square, Hartford, Connecticut 06183-5030, Attention: Annuity Services. The
telephone number is (860) 422-3985. You may also obtain copies of any documents,
incorporated by reference into this prospectus by accessing the SEC's website
(http://www.sec.gov).
LEGAL OPINION
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Legal matters in connection with federal laws and regulations affecting the
issue and sale of the Fixed Account Option described in this Prospectus and the
organization of the Company, its authority to issue such Contracts under
Connecticut law, and the validity of the forms such Contracts under Connecticut
law have been passed on by the General Counsel of the Company.
EXPERTS
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The consolidated financial statements and schedules of The Travelers Insurance
Company and subsidiaries as of December 31, 1999 and 1998, and for each of the
years in the three-year period ended December 31, 1999, have been incorporated
by reference herein and in the registration statement in reliance upon the
reports of KPMG LLP, independent certified public accountants, incorporated by
reference herein, and upon the authority of said firm as experts in accounting
and auditing.
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THE TRAVELERS INSURANCE COMPANY
REGISTERED FIXED ACCOUNT OPTION
FOR USE WITH ANNUITY CONTRACTS
L-12673 12/2000