California Product Changes — Effective March 15, 2010

Effective March 15, 2010, North American will be changing our issue ages for five of our fixed annuity products. We will also be implementing a new annuity replacement procedure for annuitants and owners that are 65 and older in California.

Issue Age Change

The maximum issue age for the following products will be reduced to age 65 for the 14-year option only:

North American Charter
North American Precision
North American Prizm Plus
North American Freedom Choice
North American Flex III

(14-year option)
(14-year option)
(14-year option)
(14-year option)
(14-year option)

New Issue Age Maximum
65
65
65
65
65

Click here for an updated version of the Annuities at a Glance sheet that outlines these changes. Note: Issue ages for our other products remain the same.

Applications for the fixed index annuity products mentioned above will be accepted as long as the completed paperwork is received in our Home Office no later than Friday March 12, 2010.

We will allow you to fax application paperwork for ages 66-75 on the products mentioned above as long as:

1. The completed four page new business application is faxed to 866-322-7073 by Friday, March 12, 2010; and
2. The original paperwork is received in the home office no later than Monday, March 15, 2010.

We will not be honoring any exceptions outside of these guidelines.

New Comparison Disclosure for All Annuity Replacement Sales Involving Clients Age 65 and Above

Beginning March 15, 2010, we are introducing a new Disclosure and Comparison Form, 13733Z-04. If either owner or annuitant is 65 or older and you are replacing another annuity, the Disclosure and Comparison of Annuity Contracts Form must be completed in its entirety. In addition to this newly required comparison form we require that you submit the standard replacement form (6779Z-Z).

The new form is available for download at www.nacannuity.com or you may contact Marketing Support at 866-322-7066 to order this form.