Legal Notices/Privacy Practices/Compliance Bulletins

Asset Protection Network Complies with NAIC Privacy Regulations

Asset Protection Network and its employees are working diligently to ensure compliance with the federal Gramm-Leach-Bliley Act of 1999 (GLB) and a new model privacy regulation adopted by the National Association of Insurance Commissioners (NAIC). GLB requires financial institutions, including insurance companies, to adopt various privacy practices to protect the confidentiality of customers' nonpublic personal information. In September 2000, the NAIC adopted a regulation that provides state insurance regulators with a model by which to implement the privacy provisions of GLB.

The NAIC Model Regulation ("Privacy of Consumer Financial and Health Information Regulation") regulates the disclosure of nonpublic personal financial and health information. The Model Regulation requires insurers to provide initial and annual notices to customers about nonpublic personal financial information the insurer collects and discloses. insurers must provide customers with an opportunity to opt-out of disclosures where financial information is disclosed to nonatfiliated third parties for purposes unrelated to insurance functions. The Model Regulation also requires insurers to obtain authorizations from customers prior to disclosing nonpublic personal health information for other than insurance-related purposes.

In an effort to comply with the NAIC Model, Asset Protection Network has drafted a "Notice of Privacy Practices." This notice was mailed to existing customers of Asset Protection Network, Inc. prior to July 1, 2001, the compliance deadline adopted by many states. In addition, the privacy notice will be available to all interested parties via www.ltc-america.com. A copy is also printed following this notice for your convenience. Asset Protection Network will not provide an opt-out to customers because it does not disclose financial information to nonaffiliated third parties for purposes unrelated to insurance functions.

Notice of Privacy Practices

Congress passed the Gramm-Leach-Bliley (GLB) Act, which deals in part with how financial institutions treat nonpublic personal financial information. Asset Protection Network and its subsidiaries have always been committed to maintaining customer confidentiality. We appreciate this opportunity to clarify our privacy practices for you as a result of this new law.

• As part of our insurance business, we obtain certain "nonpublic personal financial information" about you, which for ease of reading we will refer to as "information" in this notice. This information includes information we receive from you on applications or other forms, information about your transactions with us, our affiliates or others, and information we receive from a consumer reporting agency.
• We restrict access to the information to authorized individuals who need to know this information to provide service and products to you.
• We maintain physical, electronic, and procedural safeguards that protect your information.
• We do not disclose this information about you or any former customers to anyone, except as permitted by law.
• Employees share this information outside the company only as authorized by you or for a specific business purpose.
• The law permits us to share this information with our affiliates, including insurance companies and insurance service providers.
• The law also permits us to share this information with companies that perform marketing services for us, or other financial institutions that have joint marketing agreements with us.

We may also share other types of information with our affiliates, including insurance companies and insurance service providers. This information may be financial or other personal information such as employment history and it may not be directly related to our transaction with you. Consistent with the Fair Credit Reporting Act, our standard authorizations permit us to share this information with our affiliates.

You do not need to call, or do anything as a result of this notice. it is meant to inform you of how we safeguard your nonpublic personal financial information. You may wish to file this notice with your insurance papers.

If you want to learn more about the GLB Act contact your insurance professional.

We value our relationship with you and strive to earn your continued trust.

CALIFORNIA LICENSE

As of March 15,2001, and in compliance with the California Code and the

INSURANCE COMPLIANCE BULLETIN CALIFORNIA — INSURANCE ADVERTISEMENTS ON THE INTERNET

E. David Hensley is a citizen and resident of the State of North Carolina and the business is Asset Protection Network, Inc. 900 Hendersonville Road, Suite 310, Asheville, North Carolina 28803.

California Insurance License #0C78570

Effective January 1, 2001 Sections 702 and 1726 of the California insurance Code will be amended requiring any person who is licensed as an insurance agent or broker or an insurer that maintains a certificate of authority to transact insurance in California, and advertises for the sale of insurance on the ntemet to provide on the internet an insurance license number, or a certificate of authority number. These sections specify when a person advertising insurance on the internet is transacting insurance and requires an insurer that is not admitted in California to follow the provisions relating to advertising by non-admitted insurers.

All internet communications, including mass e-mails, web sites or any other insurance advertisements must include/disclose the following information.

• Name as it appears on your California certificate of authority (license). If you use a different name (e.g., fictitious, d.b.a., etc.) it must be approved and on file with the Commissioner for doing business in California.
• Your state of domicile (state of residence) and your principal place of business (business address).
• CA license number

These internet disclosures are required if our firm advertises on its own web site or through the domain (web site) of another individual and/or entity These requirements may also affect agents who advertise and use the internet OUTSIDE the state of California and who use the internet to: (1) provide insurance quotes to a California resident; (2) accept an application for coverage from a California resident or; (3) otherwise communicate with a California resident regarding terms of an insurance policy.

MASSACHUSETTS LICENSE

In Compliance with the Massachusetts Division of Insurance MA DOI Bulletin 2001-2, our Massachusetts License  is # 1576500.