As you’re aware, the interest rate environment has been difficult for years. In order to continue offering the desired coverage, we developed innovative Real Time Pricing^SM on our TransACE^® products.

Unfortunately, the interest rate environment has continued to deteriorate and we’ve therefore made the difficult decision to exit the market.

As a result, we are withdrawing two of our TransACE products for new sales, effective immediately. The following products are no longer available for sale in any jurisdictions.

• TransACE
• TransACE Survivor^®

In addition to withdrawing these products for new sales, we have also stopped processing applications in underwriting and new business. We will be sending letters to affected applicants (and any premium refunds), with copies to General Agencies. Policies that are already out for delivery are not impacted. However, there will be no extensions of delivery periods.

We have also stopped processing applications that involve 1035 exchanges unless the request for funds has been sent to the existing carrier. The normal Real Time Pricing guidelines will apply to these cases while we are acquiring the 1035 funds from the existing carrier. We will issue the policy and apply the 1035 funds when they are received.

We understand what this decision means for general agents, producers and customers. We believe in the value of UL products but the current TransACE design is no longer sustainable in this economic environment. We are reviewing our UL product offerings and will seek consumer input as we develop a new design..