Document Sample
ALFRED W. GROSS                                                                         PATRICK H. CANTILO
TRUSTEE                                                                                   DEPUTY TRUSTEE

                                             December 1, 2000

    Dear Policyholder:

    This letter is a follow-up to our correspondence dated March 1, 2000, regarding payment of the Plan
    Dividend by the Fidelity Bankers Life Insurance Company Trust (the Trust). Your initial Plan
    Dividend payment is enclosed with this letter, along with a Plan Dividend Summary. The Plan
    Dividend Summary details the amount of the Plan Dividend the Trust still owes you pursuant to the
    Fidelity Bankers Life Insurance Company ("Fidelity Bankers") Rehabilitation Plan. The Summary
    also provides some information regarding the extent, if any, to which a guaranty association has
    contributed to the enclosed payment. You should consult your tax consultant for advice on all tax
    matters relating to your Plan Dividend payment.

    The Trust is being liquidated and we anticipate that additional amounts will be distributed by the
    Trust during this liquidation process depending on the availability of funds during the Trusts
    liquidation. The Trust will keep you advised as additional distributions become available if you have
    an unpaid Plan Dividend as reflected on the attached Plan Dividend Summary.

    A state life and health insurance guaranty association ("GA") may have provided coverage for the
    Fidelity Bankers policyholders residing in your state of residence. Thirty-nine of those GAs (as listed
    below) entered into a "Supplementary Agreement" with the Deputy Receiver in 1993 to provide
    benefits to those policyholders. Those GAs and the Deputy Receiver recently entered into a
    settlement agreement under which the GAs provided money to the Deputy Receiver for distribution
    to certain former Fidelity Bankers policyholders who the GAs determined were eligible for additional
    funding for benefits. The Plan Dividend payment you received includes the money, if any, that any
    GA designated be distributed to you.

     Alabama               Kentucky                   New Hampshire               South Carolina
     Alaska                Maine                      New Jersey                  South Dakota
     Arkansas              Massachusetts              New Mexico                  Tennessee
     Connecticut           Michigan                   North Carolina              Utah
     Delaware              Minnesota                  North Dakota                Vermont
     Hawaii                Mississippi                Ohio                        Virginia
     Idaho                 Missouri                   Oklahoma                    West Virginia
     Illinois              Montana                    Oregon                      Wisconsin
     Indiana               Nebraska                   Pennsylvania                Wyoming
     Iowa                  Nevada                     Rhode Island

    If the enclosed payment has been funded in part by one of these guaranty associations, the Plan
    Dividend Summary identifies the portion so funded. If the Summary does not indicate such funding,
    the enclosed payment has been made entirely from assets of the Trust. The fact that the
    associations of states not listed above have not contributed to this Plan Dividend Distribution does
    not indicate that they have no legal liability to former Fidelity Bankers policyholders. Rather, the
    guaranty associations for the states listed above have recognized their statutory obligations and

           P. O. Box 83438  Lincoln, Nebraska 68501  (888) 660-7083 
December 1, 2000
Page 2

      elected to discharge them by adding to the Plan Dividend payment. Policyholders whose policies
      are covered by non-participating Guaranty Associations may have rights against such Guaranty
      Associations under the applicable Guaranty Acts. If you believe that another guaranty association
      may be obligated to you (for example, because you resided in such other state at the time Fidelity
      Bankers was placed in receivership) you should contact your legal advisor, the regulators of such
      state, or the guaranty association for such state. Additional information on participating state
      Guaranty Associations is available by contacting the Trust at the telephone number, mailing
      address, or Internet e-mail address reflected in this letter. The Trust's web site (
      contains the telephone number of each state Guaranty Association so that you can contact the
      Guaranty Associations directly.

      Policyholders should notify the Trust of any address changes or if this letter has been sent to an
      incorrect address. You may contact the Trust for additional information as follows: (1) by calling toll-
      free at 1-888-660-7083, (2) by writing to the Trust at P.O. Box 83438, Lincoln, NE 68501, or (3) by
      e-mailing the Trust at Additional information on the receivership may also be
      viewed on-line at the Trust's Internet web site at

      You may contact Hartford Life Insurance Company (Hartford Life) if you currently have an in-
      force Hartford Life insurance policy at the following: (1) for annuity policies, by calling toll-free at 1-
      800-949-3601 or writing to Hartford Life, P.O. Box 5085, Hartford, CT 06102-5085, (2) for life
      insurance policies, by calling toll-free at 1-800-243-5433 or writing to National Service Center, P.O.
      Box 59179, Minneapolis, MN 55459-0179.

      Please do not hesitate to contact the Trust (or Hartford Life if you maintain an in-force insurance
      policy) if you have any questions regarding your distribution and the information in this letter.

      Sincerely yours,

      Alfred W. Gross
      Virginia Insurance Commissioner and
      Trustee of the Fidelity Bankers Life Insurance Company Trust

              P. O. Box 83438  Lincoln, Nebraska 68501  (888) 660-7083 
ALFRED W. GROSS                                                                           PATRICK H. CANTILO
TRUSTEE                                                                                     DEPUTY TRUSTEE

                                              December 1, 2000

    [Policyholder Name]
    [Address 1]
    [Address 2]
    [City, State, Zip]

    [Policy Number: xxxxxxx]


    The summary below provides the Plan Dividend amounts due to you under the Rehabilitation Plan
    as a former policyholder of Fidelity Bankers Life Insurance Company:

     Description                                                                                 Amount
     Total Plan Dividend Due                                                                    $1,000.00
     Plan Dividend Payment 12/01/00                                                              $453.00
     Amount Paid by Guaranty Fund From [not applicable]                                          $100.00
     Federal Tax Withheld                                                                        $100.00
     PLAN DIVIDEND BALANCE                                                                       $347.00

    If the PLAN DIVIDEND BALANCE shown is zero ($0.00), you are not due any further distributions
    from the Fidelity Bankers Life Insurance Company Trust (the "Trust") and none will be made to you
    in the future. If a PLAN DIVIDEND BALANCE greater than zero ($0.00) is shown, that amount is
    owed by the Trust and will be paid subject to availability of assets. The Plan Dividend distribution is
    subject to federal income tax withholding unless you made an affirmative election that tax
    withholding shall not apply to your distribution. If federal income tax has been withheld, it is noted in
    the above Plan Dividend Payment Summary. Should you have any questions regarding this
    information, please contact the Trust at the number given below.

            P. O. Box 83438  Lincoln, Nebraska 68501  (888) 660-7083 

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