WESTERN HOME INSURANCE

National Western Life Insurance Company is a life insurance company, chartered in the State of Colorado in 1956, and doing business in forty-nine states, the District of Columbia and four U.S. territories or possessions. It is also licensed in Haiti, and although not otherwise licensed, the Company accepts applications from and issues policies to residents of various Central and South American, Caribbean, and Pacific Rim countries.

National Western operates within segments organized along product types and geographic marketing areas. These operating segments include domestic life insurance, international life insurance, and annuities.

The Company's international life insurance operations focus marketing efforts on foreign nationals in upper socioeconomic classes with substantial financial resources. Insurance products are issued primarily to residents of countries in Central and South America, the Caribbean, and the Pacific Rim.

Issuing policies to residents in countries in these different regions provides diversification that helps to minimize large fluctuations that could arise due to various economic, political, and competitive pressures that may occur from one country to another. Products issued to international residents are almost entirely universal life and traditional life insurance products.

The Company minimizes exposure to foreign currency risks, as almost all foreign policies require payment of premiums and claims in United States dollars. International production is from independent contractor broker-agents, many of whom have been submitting policy applications to National Western for 20 or more years.