FOUNDATION LIFE INSURANCE COMPANY OF ARKANSAS

Privacy Policy

May 30, 2001

Dear Customer:

Throughout our history, our relationship with current and prospective customers has always been our foremost priority. Because we value our customer relationship with you, we do not sell our customer information or share it with entities outside our organization for their own marketing purposes. We work hard to maintain your privacy and are very careful to preserve the private nature of our relationship with you. At the same time, the very nature of our business sometimes requires that we collect or share certain information about you with other organizations or companies. As such, we want you to be aware of how we handle personal information under the new Federal Financial Services Modernization Act. Our policies and procedures for collecting and disclosing personal information are detailed below:

We may collect non-public personal information about you from the following sources:

• Information we receive from you or your authorized representative on applications or other forms, in interviews, or by other means;

• Information we receive from consumer or other reporting agencies, medical or health care providers, governmental agencies, employers or others; and

• Information about your transactions with us, our affiliates or others.

To the extent permitted by law, we may disclose the same information we collect, as described above, to agents, brokers and representatives who service you.

We may disclose the financial information we collect to insurance agents and others who provide services for us. We may also disclose that information to companies that perform marketing or other services on our behalf, or to other entities with whom we have joint marketing agreements. These disclosures will be made only to the extent permitted by law.

Any medical or health information we collect about you will be disclosed to third parties only to underwrite insurance or administer your policy or claim; as permitted by law; or as authorized by you.

We require anyone to whom we disclose your personal information to protect its confidentiality and to use it solely for the purpose for which it is disclosed.

Otherwise, we do not disclose any non-public personal information about our customers unless authorized by the customer or as permitted by law.

We restrict access to non-public personal information about you to those employees who need to know that information to provide products or services to you. We maintain physical electronic and procedural safeguards that comply with applicable regulatory standards to guard your non-public personal information.

Thank you for turning to us for your insurance needs.

We appreciate you business.