ATTENTION: MANAGING PARTNER/OFFICER, OPERATIONS PARTNER/OFFICER, MANAGER, MUTUAL FUNDS OPERATIONS, MANAGER, INSURANCE & ANNUITIES SERVICES, MANAGER, DATA PROCESSING

On July 31, 2001, National Securities Clearing Corporation (NSCC) enhanced the Insurance Processing Service with our latest product line - License and Appointments (please refer to NSCC Important Notice A #5288, P&S #4858 dated July 2, 2001). The License and Appointments ("LNA") service will automate license and appointments data transmission for the annuity and insurance industry.

LNA is a two-way flow of information, a request and response system, between insurance carriers and distributors to process the following types of transactions:

• First time License

• Additional License

• License Status

• Appointment Requests

• Appointment Status

• Renewals

• Mass transfers / Mergers

• Demographic changes (Name and Address changes, Qualifying Officer changes, Identification changes)

• Team maintenance (Set-up, Modifications, and Deletions)

• Terminations (Producer or Appointment)

• Periodic Reconciliation

This service provides for same day money settlement related to the data and information transmitted, and generates a stream of inbound and outbound files to all users including carriers, distributors, service providers and software vendors as follows:

Outbound files (Monday through Saturday at the following cycles):
10:00 a.m., 1:00 p.m. and 4:00 p.m. eastern standard time.

Inbound files (accepted Monday through Friday):
From 2:00 a.m. to midnight (Note: Saturday, from 2:00 a.m. to 3:00 p.m.) eastern standard time.

Record layouts, standard usage and overview documentation may be found on our web site (ips.dtcc.com). Please contact you account manager to obtain an ID and password.

Participants may test the service with a partner in our Participant Services Environment ("PSE") by contacting Robert Schweikert at (212) 855-5648 or the Participant Testing Group ("PTG") directly at (212) 855-5630.

If you have any questions regarding this notice, please call Randi Gordon at (212) 855-5654.

Randi Gordon
Group Director, Insurance Services