CREDITABLE COVERAGE DISCLOSURE

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" bgproperties="fixed" background="039285a1erlcgo.png"> <div> <FONT SIZE="5" COLOR="#FFCC66" FACE="Arial" ><B>LIFE, DISABILITY, MEDICAL, MEDIGAP, DENTAL, LTCI and ANNUITIES </B></FONT><B>     |     </B><A HREF="index.htm" TARGET="_top" TITLE="LIFE, DISABILITY, MEDICAL, MEDIGAP, DENT"><U><B>home</B></U></A></div> <div>                                                   </div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFCC66" TEXT="#080000" background="038d2c00dkelyh.png"> <div> <B>W. Forrest Veal, CLU</B></div> <div> <B>Veal Benefit Services Inc.</B></div> <div> <B>P. O. Box 700222</B></div> <div> <B>Dallas, TX 75370</B></div> <div> <B>972-250-6516</B></div> <div> <B>Fax 770-542-0808</B></div> <div> <B>E-mail - vbsinsurance@juno.com</B></div> </td> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I>CREDITABLE COVERAGE DISCLOSURE</I></div> <div> <FONT SIZE="3" COLOR="#000000" FACE="Arial" >On January 10, 2006, disclosure guidance was posted on the CMS (Centers for Medicare & Medicaid Services) Web site at</FONT> <A HREF="http://www.cms.hhs.gov/CreditableCoverage/" TARGET="_top" TITLE="http://www.cms.hhs.gov/CreditableCoverag"><U><B>www.cms.hhs.gov/CreditableCoverage/</B></U></A><B>.</B><FONT SIZE="3" COLOR="#000000" FACE="Arial" > Information, guidance, and questions and answers about creditable coverage can be found at this web site. Now in 2007, CMS has issued updated guidance on disclosure notices to Part D Eligible individuals for use after February 15, 2007. Copies of the CMS Notice  & Guidance are available at </FONT></div> <div> <A HREF="http://www.cms.hhs.gov/creditablecoverage/30_CCafterFeb15.asp#TopOfPage" TARGET="_top" TITLE="http://www.cms.hhs.gov/creditablecoverag"><U><B>http://www.cms.hhs.gov/CreditableCoverage/30_CCafterFeb15.asp#TopOfPage</B></U></A><FONT SIZE="3" COLOR="#000000" FACE="Arial" ><A HREF="http://www.cms.hhs.gov/creditablecoverage/30_CCafterFeb15.asp#TopOfPage" TARGET="_top" TITLE="http://www.cms.hhs.gov/creditablecoverag"><U><B> .</B></U></A></FONT></div> <bR> <bR> <div> The Medicare Prescription Drug, Improvement and Modemization Act of 2003 (MMA) requires that all entities providing prescription drug coverage to Medicare Part D-eligible individuals must periodically disclose to the Centers for Medicare & Medicaid Services (CMS) whether the prescription drug coverage offered is creditable or non-creditable to Medicare Part D. </div> <bR> <div> Sponsors of group health plans such as employers, must  also provide to Medicare Part D-eligible individuals evidence of "Creditable" or "Non-creditable" prescription drug coverage in their group health plan or plans to help them decide on their need for Medicare Part D when first eligible for Medicare and to avoid a late sign-up penality, if they continue to work and do not enroll in both Medicare Parts A & B.</div> <bR> <div> Many of the insurance companies provided to their group health plans in 2005, information regarding the plan or plans creditable prescription drug coverage. If an employer providing a group health plan did not receive such notice from their insurance company they should contact the company for this information. </div> <bR> <div> Every employer providing a group health plan with a plan year ending in 2006, must disclose by March 31, 2006 their plan or plans creditable coverage status and then annually thereafter. Also, notice must be given within 30 days after the termination of the prescription drug plan and within 30 days after any change in the creditable coverage status of the prescription drug plan.</div> <bR> <div> <FONT SIZE="3" COLOR="#000000" FACE="Arial" >Disclosure is made electronically via the Disclosure Notice form on the CMS Web site at</FONT><B> </B><A HREF="http://www.cms.hhs.gov/apps/ccdisclosure/" TARGET="_top" TITLE="http://www.cms.hhs.gov/apps/ccdisclosure"><U><B>www.cms.hhs.gov/apps/ccdisclosure/</B></U></A><FONT SIZE="3" COLOR="#000000" FACE="Arial" >.  </FONT></div> </td> </tr></table></body>