The Hartford 2012 Annual Report Download - page 13

Table of Contents
Most states have enacted legislation that regulates insurance holding company systems such as The Hartford. This legislation provides that each insurance
company in the system is required to register with the insurance department of its state of domicile and furnish information concerning the operations of
companies within the holding company system that may materially affect the operations, management or financial condition of the insurers within the system.
All transactions within a holding company system affecting insurers must be fair and equitable. Notice to the insurance departments is required prior to the
consummation of transactions affecting the ownership or control of an insurer and of certain material transactions between an insurer and any entity in its
holding company system. In addition, certain of such transactions cannot be consummated without the applicable insurance department’s prior approval. In
the jurisdictions in which the Company’s insurance company subsidiaries are domiciled, the acquisition of more than 10% of The Hartford’s outstanding
common stock would require the acquiring party to make various regulatory filings.
Certain of the Company’s life insurance subsidiaries sold variable life insurance, variable annuity, and some fixed guaranteed products that are “securities”
registered with the SEC under the Securities Act of 1933, as amended. Some of the products have separate accounts that are registered as investment
companies under the Investment Company Act of 1940, as amended (the “1940 Act”), and/or are regulated by state law. Separate account investment products
are also subject to state insurance regulation. Moreover, each separate account is generally divided into sub-accounts, each of which invests in an underlying
mutual fund that is also registered as an investment company under the 1940 Act (“Underlying Funds”). The Company offers these Underlying Funds and
retail mutual funds that are registered with and regulated by the SEC.
In addition, other subsidiaries of the Company sold and distributed the Company’s variable insurance products, Underlying Funds and retail mutual funds
as broker dealers and are subject to regulation promulgated and enforced by the Financial Industry Regulatory Authority (“FINRA”), the SEC and/or in, some
instances, state securities administrators. Other entities operate as investment advisers registered with the SEC under the Investment Advisers Act of 1940 and
are registered as investment advisers under certain state laws, as applicable. One subsidiary is an investment company registered under the 1940 Act. Because
federal and state laws and regulations are primarily intended to protect investors in securities markets, they generally grant regulators broad rulemaking and
enforcement authority. Some of these regulations include, among other things, regulations impacting sales methods, trading practices, suitability of
investments, use and safekeeping of customers’ funds, corporate governance, capital, record keeping, and reporting requirements.
The extent of insurance regulation on business outside the United States varies significantly among the countries in which The Hartford operates. Some
countries have minimal regulatory requirements, while others regulate insurers extensively. Foreign insurers in certain countries are faced with greater
restrictions than domestic competitors domiciled in that particular jurisdiction. The Hartford’s international operations are comprised of insurers licensed in
their respective countries.
In addition, as described under “Legislative Developments,” we are subject to a number of Dodd-Frank Act provisions. Failure to comply with federal and
state laws and regulations may result in censure, fines, the issuance of cease-and-desist orders or suspension, termination or limitation of the activities of our
operations and/or our employees. We cannot predict the impact of these actions on our businesses, results of operations or financial condition.

We rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and protect our intellectual property.
We have a worldwide trademark portfolio that we consider important in the marketing of our products and services, including, among others, the trademarks
of The Hartford name, the Stag Logo and the combination of these two marks. The duration of trademark registrations varies from country to country and
may be renewed indefinitely subject to country-specific use and registration requirements. We regard our trademarks as extremely valuable assets in marketing
our products and services and vigorously seek to protect them against infringement.

The Hartford has approximately 22,500 employees as of December 31, 2012.

The Hartford makes available, free of charge, on or through its Internet website (http://www.thehartford.com) The Hartford’s annual report on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) of the Exchange
Act as soon as reasonably practicable after The Hartford electronically files such material with, or furnishes it to, the SEC. None of the information made
available on The Hartford’s Internet website shall be deemed to be incorporated by reference herein and the reference to The Hartford's Internet website is
provided as an inactive textual reference only. Information filed or furnished to the SEC may be read and copied at the SEC’s Public Reference Room at 100 F
Street, NE, Washington, DC 20549 or by calling the SEC at 1-800-SEC-0330. In addition, the SEC maintains an Internet website (http://sec.gov) that
contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.
13