PUBLIC NOTICE TO ALL INTERESTED PARTIES REGARDING THE CURRENT NATIONAL AND GLOBAL FINANCIAL SITUATION AS IT RELATES TO UNITED HERITAGE COMPANIES

We at United Heritage Financial Group, which includes United Heritage Life Insurance Company, United Heritage Property & Casualty Company, and Sublimity Insurance Company, understand that there are concerns about the current state of the national and global economy. We at United Heritage understand your concerns and assure you that we are monitoring the situation as it continues to develop. We are providing this notice regarding the economic status of our organization.

1. United Heritage Financial Group and all of its companies are privately held.We have no publically traded shares; therefore, we are not subject to the short selling and trading fluctuations that are hitting public companies;

2. We sold our one non-insurance business over a year ago. As a privately held insurance-only organization, we do not have direct exposure to the wild swings of the market and the financial impact it could have to the entire corporate operation.

3. United Heritage Life Insurance Company is a qualified legal reserve life insurance company and is required by law to maintain reserves equal to the withdrawal value of annuity policies, and must maintain certain levels of capital and surplus.

4. Insurance products are backed by what are known as “Guaranty Associations.”Guaranty Associations are similar to the banking industry protections of the FDIC (which are insured by the federal government), but are instead operated under individual state supervision. All insurance companies are required to participate in the Guaranty Association in all states in which they are licensed and the financial protections for insurance policies are funded by all insurance companies licensed to conduct business in each state. For example, our life insurance company is licensed in 36 states, and thus is a member of 36 state guaranty associations.

5. The Idaho State Guaranty Association provides the following protection for life insurance, annuity and health insurance policies:

   
   
   1. $300,000 for life insurance death benefits;
   2. $100,000 for cash surrender or withdrawal value for life insurance policies;
   3. $100,000 for withdrawal and cash values for annuities; and
   4. $100,000 for health insurance policy benefits.
   
   

   Benefits are specific to individual states and are generally limited to a total aggregate of $300,000 of coverage.

   
   
   

6. Policies backed by a state guaranty association in the event of an insurance company insolvency are kept in force for the benefit of the policyholder when possible and desired by the policyholder.

   
   

7. Please understand that this information about the state Guaranty associations is NOT intended to be an inducement to purchase any form of insurance through any United Heritage company.  If you would like more information about your particular State Guaranty Association, please contact the Insurance Department of your state of residence.

   
   

8. The United Heritage Life Insurance Company investment portfolio consists primarily of investment grade bonds and commercial mortgages.  While we have previously owned Lehman bonds, we do not own any currently.   Almost 80% of our bonds are ranked by the National Association of Insurance Commissioners as Grade 1, which is the highest of 6 rankings.  United Heritage Life does not directly own nor has it guaranteed any credit default swaps (CDS).