National Securities Clearing Corporation ("NSCC") has filed a rule change with the Securities and Exchange Commission ("SEC") pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934 enhancing NSCC’s Insurance Processing Service ("IPS"). The enhancement is known as "Licensing and Appointments". This change is effective immediately.

The filing enhances IPS to allow Members and Insurance Carrier Members of NSCC to transmit data and information to each other regarding their state licensing and appointments activities. The processing of data and information related to Licensing and Appointments will be similar to the processing of data and information that IPS carries out today.

It is expected that there will be money settlements associated with Licensing and Appointments. The processing of these payments will be similar to IPS’s processing of payments for its other functions.

Information related to Licensing and Appointments in respect of disability/health, fixed annuity, life, long term care, pre-need (funeral), variable annuity, and variable life products may be transmitted through IPS. It is anticipated that the processing of data and information and the settlement of payments in respect of all of these lines of business will be similar.

The full text of the rule change may be obtained by contacting the NSCC Legal Department at (212) 855-3207. Written comments on the proposed rule filing may be addressed to Lisa T. Siebold, Assistant Secretary, National Securities Clearing Corporation, 55 Water Street, New York, New York 10041, and your comments will be forwarded to the SEC. You may also address your written comments to the Secretary of the Commission, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, D.C. 20549. We request that you provide NSCC with a copy of your comments.

Questions regarding Licensing and Appointments should be directed to Randi B. Gordon, at (212) 855-5654. Questions regarding the rule filing should be directed to Jeffrey T. Waddle, Senior Counsel, at (212) 855-3260.

Karen L. Saperstein

Managing Director