Field Bulletin for Producers Regarding Annuity Compliance

Effective August 1, 2010

Regulators have become increasingly concerned about improper sales of annuities to older age citizens. See Bulletin Number 2010-02 from the Louisiana Insurance Department.

GILICO and its producers have consistently offered high, quality consumer oriented products to our policy owners. We will continue to monitor for suitability and provide appropriate products for all issue ages.

GILICO is pleased to announce that we will continue offering our Choice 4 annuity to all issue ages, including those age 80 and above. The Choice 4 has a 3.0% minimum guarantee on 100% of your client’s premium. Amounts above $100,000 need a Large Case Questionnaire completed.

Our offer to age 80+ applicants is made possible by issuing contracts only to those who elect a 5 year or longer death benefit payout, which the owner may change at the end of the surrender charge period . You will also need to submit our brief Health Status Form.

Our LTC products, AnnuiCare® 4, 5, and 7, remain available through age 85; and AnnuiCare® 10 is available through issue age 79.

For ALL your annuity applications, you may be required to provide additional information if a Power of Attorney or Trust is part of the annuity application (POA and Trust Questionnaire.) No third party checks will be accepted.

Thank you for your diligence in selling suitable products to your clients!