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National Life Insurance Company - National Life Group

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					   QUARTERLY STATEMENT
               OF THE

National Life Insurance Company
                  Of

            Montpelier
        in the state of VT



     to the Insurance Department
           of the State of

          For the Period Ended
             June 30, 2012



               2012
LIFE AND ACCIDENT AND HEALTH COMPANIES - ASSOCIATION EDITION

                                                                                                                               *66680201220100102*
                                                   QUARTERLY STATEMENT
                                                                                      As of June 30, 2012
                                                                                   of the Condition and Affairs of the

                                      National Life Insurance Company
  NAIC Group Code.....634, 634                                           NAIC Company Code..... 66680                                         Employer's ID Number..... 03-0144090
                              (Current Period) (Prior Period)
  Organized under the Laws of Vermont                                    State of Domicile or Port of Entry Vermont                                  Country of Domicile        US
  Incorporated/Organized..... November 13, 1848                                                                Commenced Business..... January 17, 1850
  Statutory Home Office                                         1 National Life Drive….. Montpelier ..... VT ..... 05604
                                                                (Street and Number)       (City or Town, State and Zip Code)
  Main Administrative Office                                    1 National Life Drive….. Montpelier ..... VT ..... 05604                                                802-229-3333
                                                                (Street and Number)       (City or Town, State and Zip Code)                                     (Area Code) (Telephone Number)
  Mail Address                                                  1 National Life Drive….. Montpelier ..... VT ..... 05604
                                                                (Street and Number or P. O. Box)         (City or Town, State and Zip Code)
  Primary Location of Books and Records                         1 National Life Drive….. Montpelier ..... VT ..... 05604                                                802-229-3333
                                                                (Street and Number)       (City or Town, State and Zip Code)                                     (Area Code) (Telephone Number)
  Internet Web Site Address                                     www.nationallifegroup.com
  Statutory Statement Contact                                   Terry Lewis Somaini                                                                                     802-229-3842
                                                                (Name)                                                                                (Area Code) (Telephone Number) (Extension)
                                                                TSomaini@Nationallifegroup.com                                                                          802-229-7282
                                                                (E-Mail Address)                                                                                            (Fax Number)

                                                                                            OFFICERS
                   Name                                                    Title                                                 Name                                        Title
  1. Mehran (nmn) Assadi                                    President & CEO                                    2. Kerry Anne Jung #                           Secretary
  3. Donald Paul Messier                                    VP - Treasurer                                     4. Craig Alan Smith                            Vice President & Chief Actuary
                                                                                               OTHER
  Christian William Thwaites                                Executive Vice President                           Wade Hampton Mayo                              Executive Vice President
  Thomas Hyde Brownell                                      SVP - Chief Investment Officer                     Gregory Donald Woodworth                       SVP - General Counsel
  Richard (nmn) Pedersen                                    SVP - Chief Information Officer                    Ruth Barra Smith                               Executive Vice President
  Robert Earl Cotton                                        SVP - Chief Financial Officer




                                                                            DIRECTORS OR TRUSTEES
  Mehran (nmn) Assadi                                   David Rudolph Coates                                   Deborah Gillian Ellinger                   Bruce Michael Lisman
  Thomas Henry MacLeay                                  Vera Louise McCarren                                   Roger Blaine Porter                        Eugene Miles Prentice III
  Harris Henry Simmons                                  James Holly Douglas



State of........         Vermont
County of.....           Washington

The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period
stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as
herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement
of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions
therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures
manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and
procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also
includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the
enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement.


                              (Signature)                                                       (Signature)                                                   (Signature)
                         Mehran (nmn) Assadi                                                Kerry Anne Jung                                               Donald Paul Messier
                          1. (Printed Name)                                                 2. (Printed Name)                                              3. (Printed Name)
                           President & CEO                                                         Secretary                                                 VP - Treasurer
                                (Title)                                                             (Title)                                                      (Title)


  Subscribed and sworn to before me                                                                a. Is this an original filing?                                     Yes [ X ]    No [ ]

  This             3rd          day of         August                                              b. If no:       1. State the amendment number

                                                                                                                   2. Date filed

                                                                                                                   3. Number of pages attached
Statement as of June 30, 2012 of the              National Life Insurance Company
                                                                                                                                  ASSETS
                                                                                                                                                                                        Current Statement Date                                                                4
                                                                                                                                                                      1                            2                                    3
                                                                                                                                                                                                                                   Net Admitted                     December 31
                                                                                                                                                                                                Nonadmitted                          Assets                         Prior Year Net
                                                                                                                                                                  Assets                          Assets                           (Cols. 1 - 2)                   Admitted Assets
 1.      Bonds........................................................................................................................................... ..........5,336,030,884 ...............................0 ..........5,336,030,884 ..........5,297,758,860
 2.      Stocks:
         2.1      Preferred stocks................................................................................................................. ...............................0 ...............................0 ...............................0 ...............................0
         2.2      Common stocks................................................................................................................. .............606,871,342 ...............................0 .............606,871,342 .............566,896,398
 3.      Mortgage loans on real estate:
         3.1      First liens............................................................................................................................ .............628,845,432 ...............................0 .............628,845,432 .............641,089,534
         3.2      Other than first liens........................................................................................................... ...............................0 ...............................0 ...............................0 ...............................0
 4.      Real estate:
         4.1      Properties occupied by the company (less $............0
                  encumbrances).................................................................................................................. ...............47,472,536 ...............................0 ...............47,472,536 ...............43,602,394
         4.2      Properties held for the production of income (less $............0
                  encumbrances).................................................................................................................. .................2,725,402 ...............................0 .................2,725,402 .................2,770,277
         4.3      Properties held for sale (less $..........0 encumbrances)..................................................... ...............................0 ...............................0 ...............................0 ...............................0
  5.     Cash ($.....561,794), cash equivalents ($..........0)
         and short-term investments ($.....25,150,000)............................................................................. ...............25,711,794 ...............................0 ...............25,711,794 ...............67,153,898
  6.     Contract loans (including $..........0 premium notes).................................................................... .............562,768,908 ...............................0 .............562,768,908 .............563,426,237
  7.     Derivatives................................................................................................................................... ...............16,566,965 ...............................0 ...............16,566,965 .................9,688,371
  8.     Other invested assets.................................................................................................................. .............346,809,689 ...............................0 .............346,809,689 .............324,756,529
  9.     Receivables for securities............................................................................................................ ...............11,796,634 ...............................0 ...............11,796,634 ....................802,240
 10. Securities lending reinvested collateral assets............................................................................ ...............................0 ...............................0 ...............................0 ...............................0
 11. Aggregate write-ins for invested assets....................................................................................... ....................331,537 ...............................0 ....................331,537 ....................163,969
 12. Subtotals, cash and invested assets (Lines 1 to 11).................................................................... ..........7,585,931,122 ...............................0 ..........7,585,931,122 ..........7,518,108,707
 13. Title plants less $..........0 charged off (for Title insurers only)..................................................... ...............................0 ...............................0 ...............................0 ...............................0
 14. Investment income due and accrued........................................................................................... ...............80,690,094 ...............................0 ...............80,690,094 ...............79,831,509
 15. Premiums and considerations:
         15.1 Uncollected premiums and agents' balances in the course of collection........................... .................7,964,057 ........................4,110 .................7,959,947 ...............18,542,894
         15.2 Deferred premiums, agents' balances and installments booked but deferred
              and not yet due (including $..........0 earned but unbilled premiums)................................. ...............37,011,949 ...............................0 ...............37,011,949 ...............44,452,486
         15.3 Accrued retrospective premiums....................................................................................... ...............................0 ...............................0 ...............................0 ...............................0
 16. Reinsurance:
         16.1 Amounts recoverable from reinsurers................................................................................ .................2,716,629 ...............................0 .................2,716,629 .................5,361,669
         16.2 Funds held by or deposited with reinsured companies...................................................... ...............................0 ...............................0 ...............................0 ...............................0
         16.3 Other amounts receivable under reinsurance contracts.................................................... ...............................0 ...............................0 ...............................0 ...............................0
 17. Amounts receivable relating to uninsured plans.......................................................................... ...............................0 ...............................0 ...............................0 ...............................0
18.1 Current federal and foreign income tax recoverable and interest thereon................................... ...............................0 ...............................0 ...............................0 ...............24,153,151
18.2 Net deferred tax asset.................................................................................................................. .............192,609,475 ...............61,288,913 .............131,320,562 .............135,739,355
 19. Guaranty funds receivable or on deposit..................................................................................... ....................304,682 ...............................0 ....................304,682 .................3,479,169
 20. Electronic data processing equipment and software................................................................... .................2,977,286 ...............................0 .................2,977,286 .................2,765,887
 21. Furniture and equipment, including health care delivery assets ($..........0)................................. .................2,583,917 .................2,583,917 ...............................0 ...............................0
 22. Net adjustment in assets and liabilities due to foreign exchange rates....................................... ...............................0 ...............................0 ...............................0 ...............................0
 23. Receivables from parent, subsidiaries and affiliates.................................................................... ...............................0 ...............................0 ...............................0 ...............................0
 24. Health care ($..........0) and other amounts receivable................................................................. .................3,422,691 .................3,422,691 ...............................0 ...............................0
 25. Aggregate write-ins for other than invested assets...................................................................... .............335,931,682 ...............69,841,505 .............266,090,177 .............260,590,962
 26. Total assets excluding Separate Accounts, Segregated Accounts and Protected
     Cell Accounts (Lines 12 through 25)............................................................................................ ..........8,252,143,584 .............137,141,136 ..........8,115,002,448 ..........8,093,025,789
 27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts.......................... .............683,237,779 ...............................0 .............683,237,779 .............681,616,601
 28. Total (Lines 26 and 27)................................................................................................................ ..........8,935,381,363 .............137,141,136 ..........8,798,240,227 ..........8,774,642,391

                                                                                                                            DETAILS OF WRITE-INS
1101. Other real estate deposits............................................................................................................ ....................331,537 ...............................0 ....................331,537 ....................163,969
1102. ..................................................................................................................................................... ...............................0 ...............................0 ...............................0 ...............................0
1103. ..................................................................................................................................................... ...............................0 ...............................0 ...............................0 ...............................0
1198. Summary of remaining write-ins for Line 11 from overflow page................................................. ...............................0 ...............................0 ...............................0 ...............................0
1199. Totals (Lines 1101 thru 1103 plus 1198) (Line 11 above)........................................................... ....................331,537 ...............................0 ....................331,537 ....................163,969
2501. Corporate owned life insurance................................................................................................... .............213,559,301 ...............................0 .............213,559,301 .............209,559,068
2502. Note receivable from NLVF.......................................................................................................... ...............33,623,247 ...............................0 ...............33,623,247 ...............33,623,247
2503. Cash value of deferred compensation life insurance policies...................................................... ...............14,549,112 ...............................0 ...............14,549,112 ...............14,609,501
2598. Summary of remaining write-ins for Line 25 from overflow page................................................. ...............74,200,022 ...............69,841,505 .................4,358,517 .................2,799,146
2599. Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above)........................................................... .............335,931,682 ...............69,841,505 .............266,090,177 .............260,590,962




                                                                                                                                              Q02
Statement as of June 30, 2012 of the              National Life Insurance Company
                                                                           LIABILITIES, SURPLUS AND OTHER FUNDS
                                                                                                                                                                                                                                        1                                             2
                                                                                                                                                                                                                                      Current                                   December 31
                                                                                                                                                                                                                                  Statement Date                                 Prior Year
  1.    Aggregate reserve for life contracts $.....5,530,458,578 less $..........0
        included in Line 6.3 (including $.....22,108,507 Modco Reserve)..........................................................................................................                                         ...................5,530,458,578 ...................5,553,190,191
  2.    Aggregate reserve for accident and health contracts (including $....405,773,265 Modco Reserve).....................................................                                                               ......................515,734,187 ......................511,405,841
  3.     Liability for deposit-type contracts (including $..........0 Modco Reserve)..............................................................................................                                        ......................305,041,561 ......................303,116,748
  4.    Contract claims:
        4.1         Life.............................................................................................................................................................................................     ........................41,407,180 ........................40,850,162
        4.2         Accident and health...................................................................................................................................................................                ..........................1,737,183 ..........................1,986,399
  5.    Policyholders' dividends $.....1,748,375 and coupons $..........0 due and unpaid..................................................................................                                                ..........................1,748,375 ..........................3,417,810
  6.    Provision for policyholders' dividends and coupons payable in following calendar year - estimated amounts:
        6.1         Dividends apportioned for payment (including $..........0 Modco)...............................................................................................                                       ......................110,502,414           ......................111,712,944
        6.2         Dividends not yet apportioned (including $..........0 Modco).......................................................................................................                                   ........................................0   ........................................0
        6.3         Coupons and similar benefits (including $..........0 Modco)........................................................................................................                                   ........................................0   ........................................0
  7.    Amount provisionally held for deferred dividend policies not included in Line 6....................................................................................                                               ........................................0   ........................................0
  8.    Premiums and annuity considerations for life and accident and health contracts received in advance
        less $..........0 discount; including $.....209,250 accident and health premiums.....................................................................................                                             ..........................2,965,952 ..........................2,763,953
  9.    Contract liabilities not included elsewhere:
        9.1         Surrender values on canceled contracts....................................................................................................................................                            ........................................0 ........................................0
        9.2 Provision for experience rating refunds, including the liability of $..........0 accident and health experience rating
                    refunds of which $..........0 is for medical loss ratio rebate per the Public Health Service Act...................................................                                                   ........................................0 ........................................0
        9.3         Other amounts payable on reinsurance, including $..........0 assumed and $..........0 ceded.....................................................                                                      ........................................0 ........................................0
        9.4         Interest Maintenance Reserve...................................................................................................................................................                       ........................68,214,791 ........................69,375,620
 10.    Commissions to agents due or accrued - life and annuity contracts $..........0, accident and health $.....43,162
         and deposit-type contract funds $..........0.............................................................................................................................................                        ..........................1,464,242 ..........................1,876,300
 11.    Commissions and expense allowances payable on reinsurance assumed...........................................................................................                                                      ........................................0 ........................................0
 12.     General expenses due or accrued........................................................................................................................................................                          ........................26,834,410 ........................27,922,060
 13.    Transfers to Separate Accounts due or accrued (net) (including $..........0 accrued for expense
        allowances recognized in reserves, net of reinsured allowances).........................................................................................................                                          .........................(9,951,222)        .......................(12,488,475)
 14.    Taxes, licenses and fees due or accrued, excluding federal income taxes...........................................................................................                                                .............................751,640        .............................737,447
 15.1   Current federal and foreign income taxes, including $..........0 on realized capital gains (losses).........................................................                                                      ..........................2,684,760         ........................................0
 15.2   Net deferred tax liability.........................................................................................................................................................................               ........................................0   ........................................0
 16.    Unearned investment income................................................................................................................................................................                        ...............................35,238       ...............................25,485
 17.    Amounts withheld or retained by company as agent or trustee.............................................................................................................                                          ............................(122,586)       ............................(158,282)
 18.     Amounts held for agents' account, including $..........0 agents' credit balances....................................................................................                                             ...............................70,512       ....................................338
 19.    Remittances and items not allocated.....................................................................................................................................................                          ..........................8,780,756         ........................11,624,931
 20.    Net adjustment in assets and liabilities due to foreign exchange rates.................................................................................................                                           ........................................0   ........................................0
 21.     Liability for benefits for employees and agents if not included above...................................................................................................                                         ........................95,502,002          ........................98,277,382
 22.     Borrowed money $..........0 and interest thereon $..........0....................................................................................................................                                ........................................0   ........................................0
 23.    Dividends to stockholders declared and unpaid....................................................................................................................................                                 ........................................0   ........................................0
 24.    Miscellaneous liabilities:
        24.01 Asset valuation reserve..............................................................................................................................................................                       ........................75,781,862          ........................60,489,741
        24.02 Reinsurance in unauthorized companies...................................................................................................................................                                    ........................................0   ........................................0
        24.03 Funds held under reinsurance treaties with unauthorized reinsurers........................................................................................                                                  ........................................0   ........................................0
        24.04 Payable to parent, subsidiaries and affiliates.............................................................................................................................                                 ..........................6,599,231         ........................12,634,978
        24.05 Drafts outstanding......................................................................................................................................................................                    ........................................0   ........................................0
        24.06 Liability for amounts held under uninsured plans.......................................................................................................................                                     ........................................0   ........................................0
        24.07 Funds held under coinsurance...................................................................................................................................................                             ........................................0   ........................................0
        24.08 Derivatives.................................................................................................................................................................................                ..........................5,684,754         ..........................3,499,895
        24.09 Payable for securities.................................................................................................................................................................                     ........................................0   ........................................0
        24.10 Payable for securities lending....................................................................................................................................................                          ........................................0   ........................................0
        24.11 Capital notes $..........0 and interest thereon $..........0...............................................................................................................                                 ........................................0   ........................................0
 25.    Aggregate write-ins for liabilities............................................................................................................................................................                   ......................142,074,013           ......................151,754,594
 26.    Total liabilities excluding Separate Accounts business (Lines 1 to 25).................................................................................................                                           ...................6,933,999,834            ...................6,954,016,062
 27.    From Separate Accounts statement......................................................................................................................................................                            ......................679,357,272           ......................677,966,975
 28.    Total liabilities (Lines 26 and 27)...........................................................................................................................................................                    ...................7,613,357,106            ...................7,631,983,037
 29.    Common capital stock...........................................................................................................................................................................                   ..........................2,500,000         ..........................2,500,000
 30.    Preferred capital stock...........................................................................................................................................................................                ........................................0   ........................................0
 31.    Aggregate write-ins for other than special surplus funds.......................................................................................................................                                   ........................................0   ........................................0
 32.    Surplus notes.........................................................................................................................................................................................            ......................200,000,000           ......................200,000,000
 33.    Gross paid in and contributed surplus...................................................................................................................................................                          ......................107,123,400           ......................107,123,400
 34.    Aggregate write-ins for special surplus funds........................................................................................................................................                             ........................56,966,977          ........................56,726,903
 35.    Unassigned funds (surplus)...................................................................................................................................................................                     ......................818,292,744           ......................776,309,051
 36.    Less treasury stock, at cost:
        36.1 .....0.000 shares common (value included in Line 29 $..........0)................................................................................................                                            ........................................0   ........................................0
        36.2 .....0.000 shares preferred (value included in Line 30 $..........0)................................................................................................                                         ........................................0   ........................................0
 37.     Surplus (Total Lines 31 + 32 + 33 + 34 + 35 - 36) (including $.....3,880,507 in Separate Accounts Statement)..................................                                                                   ...................1,182,383,121            ...................1,140,159,354
 38.    Totals of Lines 29, 30 and 37................................................................................................................................................................                     ...................1,184,883,121            ...................1,142,659,354
 39.    Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3)..............................................................................................................................                                 ...................8,798,240,227            ...................8,774,642,391
                                                                                                                                   DETAILS OF WRITE-INS
2501.   Minimum Pension Obligation Accrual - ABO.........................................................................................................................................                                 ........................59,675,336          ........................59,675,336
2502.   Miscellaneous........................................................................................................................................................................................             ........................38,291,850          ........................39,329,183
2503.   Accumulated post retirement benefits...................................................................................................................................................                           ........................33,720,371          ........................33,450,548
2598.    Summary of remaining write-ins for Line 25 from overflow page..........................................................................................................                                          ........................10,386,456          ........................19,299,528
2599.   Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above).....................................................................................................................                                      ......................142,074,013           ......................151,754,594
3101.   ...............................................................................................................................................................................................................   ........................................0   ........................................0
3102.   ...............................................................................................................................................................................................................   ........................................0   ........................................0
3103.   ...............................................................................................................................................................................................................   ........................................0   ........................................0
3198.    Summary of remaining write-ins for Line 31 from overflow page..........................................................................................................                                          ........................................0   ........................................0
3199.   Totals (Lines 3101 thru 3103 plus 3198) (Line 31 above).....................................................................................................................                                      ........................................0   ........................................0
3401.   Net DTA SSAP 10R...............................................................................................................................................................................                   ........................52,446,152          ........................52,446,152
3402.   Separate account annuity mortality fluctuation fund..............................................................................................................................                                 ..........................3,880,507         ..........................3,649,626
3403.   Permanent surplus (Guaranty Fund).....................................................................................................................................................                            .............................500,000        .............................500,000
3498.    Summary of remaining write-ins for Line 34 from overflow page..........................................................................................................                                          .............................140,318        .............................131,124
3499.   Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above).....................................................................................................................                                      ........................56,966,977          ........................56,726,903




                                                                                                                                                    Q03
Statement as of June 30, 2012 of the              National Life Insurance Company

                                                                                                   SUMMARY OF OPERATIONS
                                                                                                                                                                                                                    1                                 2                                 3
                                                                                                                                                                                                               Current                             Prior                   Prior Year Ended
                                                                                                                                                                                                          Year to Date                       Year to Date                     December 31
 1.   Premiums and annuity considerations for life and accident and health contracts...................................................................                                             ............181,592,504           ............196,809,378           ............445,132,889
 2.   Considerations for supplementary contracts with life contingencies.......................................................................................                                     ...................396,404        ...................315,910        ................1,131,845
 3.   Net investment income............................................................................................................................................................             ............184,619,496           ............191,430,962           ............377,376,397
 4.   Amortization of Interest Maintenance Reserve (IMR).............................................................................................................                               ................2,556,213         ................2,381,132         ................4,990,602
 5.   Separate Accounts net gain from operations excluding unrealized gains or losses...............................................................                                                .......................7,771      ......................(1,408)     .....................66,843
 6.   Commissions and expense allowances on reinsurance ceded...............................................................................................                                        ................3,217,922         ................3,224,379         ................6,564,991
 7.   Reserve adjustments on reinsurance ceded...........................................................................................................................                           ................3,126,319         ...............(3,218,179)        .............(15,110,639)
 8.   Miscellaneous Income:
       8.1 Income from fees associated with investment management, administration and contract guarantees
             from Separate Accounts................................................................................................................................................                 ..............12,429,010          ..............13,537,178          ..............26,366,658
       8.2 Charges and fees for deposit-type contracts.................................................................................................................                             ..............................0   ..............................0   ..............................0
       8.3 Aggregate write-ins for miscellaneous income..............................................................................................................                               ...............(4,751,105)        ...............(6,528,602)        .............(11,064,231)
 9.   Totals (Lines 1 to 8.3).............................................................................................................................................................          ............383,194,534           ............397,950,749           ............835,455,355
10.   Death benefits.........................................................................................................................................................................       ..............99,975,086          ..............89,257,072          ............173,897,959
11.   Matured endowments (excluding guaranteed annual pure endowments)..............................................................................                                                ................2,360,910         ................3,515,806         ................7,164,966
12.   Annuity benefits.......................................................................................................................................................................       ..............22,661,927          ..............19,327,774          ..............36,728,628
13.   Disability benefits and benefits under accident and health contracts......................................................................................                                    ................9,977,029         ..............10,490,999          ..............20,932,330
14.   Coupons, guaranteed annual pure endowments and similar benefits....................................................................................                                           ..............................0   ..............................0   ..............................0
15.   Surrender benefits and withdrawals for life contracts.............................................................................................................                            ............142,828,218           ............138,477,168           ............288,315,450
16.   Group conversions..................................................................................................................................................................           ..............................0   ..............................0   ..............................0
17.   Interest and adjustments on contract or deposit-type contract funds......................................................................................                                     ................5,117,723         ................4,276,751         ................9,516,623
18.   Payments on supplementary contracts with life contingencies...............................................................................................                                    ................2,255,686         ................2,247,097         ................4,378,287
19.   Increase in aggregate reserves for life and accident and health contracts.............................................................................                                        .............(18,403,267)         ...............(6,869,554)        ..............34,556,817
20.   Totals (Lines 10 to 19)............................................................................................................................................................           ............266,773,311           ............260,723,112           ............575,491,061
21.   Commissions on premiums, annuity considerations and deposit-type contract funds (direct business only).........................                                                               ..............16,048,773          ..............15,736,378          ..............31,818,395
22.   Commissions and expense allowances on reinsurance assumed..........................................................................................                                           ..........................308     ..........................809     .......................3,675
23.   General insurance expenses..................................................................................................................................................                  ..............62,425,835          ..............60,260,637          ............132,368,417
24.   Insurance taxes, licenses and fees, excluding federal income taxes......................................................................................                                      ................6,610,005         ................5,667,993         ..............13,580,076
25.   Increase in loading on deferred and uncollected premiums....................................................................................................                                  ...............(2,811,327)        ...............(2,709,509)        ..................(314,082)
26.   Net transfers to or (from) Separate Accounts net of reinsurance............................................................................................                                   .............(23,972,513)         .............(15,403,759)         .............(40,546,464)
27.   Aggregate write-ins for deductions..........................................................................................................................................                  ................1,939,931         ................3,046,409         ................3,662,924
28.   Totals (Lines 20 to 27)............................................................................................................................................................           ............327,014,323           ............327,322,070           ............716,064,002
29.   Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28)......................                                                              ..............56,180,211          ..............70,628,679          ............119,391,353
30.   Dividends to policyholders......................................................................................................................................................              ..............42,573,144          ..............50,097,103          ............109,701,687
31.   Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30)...........                                                                  ..............13,607,066          ..............20,531,576          ................9,689,666
32.   Federal and foreign income taxes incurred (excluding tax on capital gains)..........................................................................                                          .............(10,377,382)         ...............(2,321,502)        .............(24,044,900)
33.   Net gain from operations after dividends to policyholders and federal income taxes and before realized
      capital gains or (losses) (Line 31 minus Line 32)....................................................................................................................                         ..............23,984,448 ..............22,853,078 ..............33,734,566
34.   Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital gains
      tax of $.....(2,569,205) (excluding taxes of $.....907,434 transferred to the IMR)....................................................................                                        ...............(2,019,942) ..................(870,452) ...............(7,790,985)
35.   Net income (Line 33 plus Line 34)..........................................................................................................................................                   ..............21,964,506 ..............21,982,626 ..............25,943,581
                                                     CAPITAL AND SURPLUS ACCOUNT
36.   Capital and surplus, December 31, prior year.........................................................................................................................                         .........1,142,659,354            .........1,136,177,180            .........1,136,177,180
37.   Net income (Line 35)...............................................................................................................................................................           ..............21,964,506          ..............21,982,626          ..............25,943,581
38.   Change in net unrealized capital gains (losses) less capital gains tax of $..........0................................................................                                        ..............46,981,684          ..............41,792,248          ..............17,303,249
39.   Change in net unrealized foreign exchange capital gain (loss)...............................................................................................                                  ..............................0   ..............................0   ....................(19,989)
40.   Change in net deferred income tax.........................................................................................................................................                    ...............(5,127,637)        ...............(6,095,964)        ...............(3,710,515)
41.   Change in nonadmitted assets................................................................................................................................................                  ...............(6,525,774)        ...................998,718        ...............(7,190,501)
42.   Change in liability for reinsurance in unauthorized companies...............................................................................................                                  ..............................0   ..............................0   ..............................0
43.   Change in reserve on account of change in valuation basis, (increase) or decrease.............................................................                                                ..............................0   ..............................0   ..............................0
44.   Change in asset valuation reserve..........................................................................................................................................                   .............(15,292,121)         .............(18,468,701)         .............(11,661,569)
45.   Change in treasury stock........................................................................................................................................................              ..............................0   ..............................0   ..............................0
46.   Surplus (contributed to) withdrawn from Separate Accounts during period............................................................................                                           ..............................0   ..............................0   ..............................0
47.   Other changes in surplus in Separate Accounts Statement....................................................................................................                                   ...................223,109        ...................238,075        ....................(55,230)
48.   Change in surplus notes.........................................................................................................................................................              ..............................0   ..............................0   ..............................0
49.   Cumulative effect of changes in accounting principles...........................................................................................................                              ..............................0   ..............................0   ..............................0
50.   Capital changes:
      50.1 Paid in............................................................................................................................................................................      ..............................0 ..............................0 ..............................0
      50.2 Transferred from surplus (Stock Dividend)....................................................................................................................                            ..............................0 ..............................0 ..............................0
      50.3 Transferred to surplus...................................................................................................................................................                ..............................0 ..............................0 ..............................0
51.   Surplus adjustment:
      51.1 Paid in............................................................................................................................................................................      ..............................0   ..............................0   ..............................0
      51.2 Transferred to capital (Stock Dividend).........................................................................................................................                         ..............................0   ..............................0   ..............................0
      51.3 Transferred from capital................................................................................................................................................                 ..............................0   ..............................0   ..............................0
      51.4 Change in surplus as a result of reinsurance................................................................................................................                             ..............................0   ..............................0   ..............................0
52.   Dividends to stockholders.......................................................................................................................................................              ..............................0   ..............................0   ..............................0
53.   Aggregate write-ins for gains and losses in surplus................................................................................................................                           ..............................0   ..............................0   .............(14,126,853)
54.   Net change in capital and surplus (Lines 37 through 53)........................................................................................................                               ..............42,223,767          ..............40,447,003          ................6,482,174
55.   Capital and surplus as of statement date (Lines 36 + 54).......................................................................................................                               .........1,184,883,121            .........1,176,624,183            .........1,142,659,354
                                                                                                                              DETAILS OF WRITE-INS
 08.301.       Miscellaneous Income...................................................................................................................................................              ................6,600,907         ................6,549,253         ..............12,874,320
 08.302.       Change in COLI.............................................................................................................................................................          ................4,000,234         ................2,904,813         ................6,771,044
 08.303.       MODCO Interest............................................................................................................................................................           .............(15,352,245)         .............(15,982,669)         .............(30,709,594)
 08.398.       Summary of remaining write-ins for Line 8.3 from overflow page.................................................................................                                      ..............................0   ..............................0   ..............................0
 08.399.       Totals (Lines 08.301 thru 08.303 plus 08.398) (Line 8.3 above)...................................................................................                                    ...............(4,751,105)        ...............(6,528,602)        .............(11,064,231)
  2701.        Changes in agents deferred comp................................................................................................................................                      ................1,939,754         ................3,045,265         ................3,401,528
  2702.        Miscellaneous deductions.............................................................................................................................................                ..........................103     ..........................111     ..........................183
  2703.        Fines and Penalties.......................................................................................................................................................           ............................74    .......................1,033      ...................261,212
  2798.        Summary of remaining write-ins for Line 27 from overflow page..................................................................................                                      ..............................0   ..............................0   ..............................0
  2799.        Totals (Lines 2701 thru 2703 plus 2798) (Line 27 above).............................................................................................                                 ................1,939,931         ................3,046,409         ................3,662,924
  5301.        Surplus adjustment Net DTA SSAP 10R.......................................................................................................................                           ..............................0   ..............................0   ................1,577,161
  5302.        Minimum pension obligation..........................................................................................................................................                 ..............................0   ..............................0   ................1,191,182
  5303.        Litigation........................................................................................................................................................................   ..............................0   ..............................0   ...........................(55)
  5398.        Summary of remaining write-ins for Line 53 from overflow page..................................................................................                                      ..............................0   ..............................0   .............(16,895,141)
  5399.        Totals (Lines 5301 thru 5303 plus 5398) (Line 53 above).............................................................................................                                 ..............................0   ..............................0   .............(14,126,853)




                                                                                                                                                 Q04
Statement as of June 30, 2012 of the             National Life Insurance Company
                                                                                                                           CASH FLOW
                                                                                                                                                                                                       1                                   2                               3
                                                                                                                                                                                                  Current Year                        Prior Year                   Prior Year Ended
                                                                                                                                                                                                    to Date                            To Date                      December 31
                                                                 CASH FROM OPERATIONS
   1.      Premiums collected net of reinsurance............................................................................................................................... .............203,025,653 .............214,607,786 .............443,135,577
   2.      Net investment income........................................................................................................................................................ .............189,636,350 .............190,769,333 .............389,456,437
   3.      Miscellaneous income......................................................................................................................................................... ...............10,362,347 .................4,261,267 ....................593,713
   4.      Total (Lines 1 through 3)..................................................................................................................................................... .............403,024,350 .............409,638,386 .............833,185,727
   5.      Benefit and loss related payments...................................................................................................................................... .............282,223,737 .............266,500,340 .............531,725,048
   6.      Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts................................................ ..............(26,509,766) ..............(16,739,742) ..............(45,434,529)
   7.      Commissions, expenses paid and aggregate write-ins for deductions.............................................................................. ...............96,911,968 ...............67,793,743 .............169,031,961
   8.      Dividends paid to policyholders........................................................................................................................................... ...............45,453,109 ...............52,872,662 .............126,508,999
   9.      Federal and foreign income taxes paid (recovered) net of $.....2,569,205 tax on capital gains (losses).......................... ..............(38,877,064) ................(7,307,666) ................(2,571,686)
  10.      Total (Lines 5 through 9)..................................................................................................................................................... .............359,201,984 .............363,119,336 .............779,259,793
  11.      Net cash from operations (Line 4 minus Line 10)............................................................................................................... ...............43,822,366 ...............46,519,050 ...............53,925,934
                                                                CASH FROM INVESTMENTS
 12.       Proceeds from investments sold, matured or repaid:
           12.1 Bonds........................................................................................................................................................................ .............296,811,605 .............457,273,040 .............812,133,478
           12.2 Stocks........................................................................................................................................................................ .................7,143,169 .................3,164,258 .................7,317,957
           12.3 Mortgage loans......................................................................................................................................................... ...............22,990,047 ...............31,478,877 ...............66,481,191
           12.4 Real estate................................................................................................................................................................ ...............................0 ...............................0 ...............................0
           12.5 Other invested assets............................................................................................................................................... ...............21,372,906 ...............26,328,046 ...............51,861,043
           12.6 Net gains or (losses) on cash, cash equivalents and short-term investments......................................................... ...............................0 ...............................0 ........................6,057
           12.7 Miscellaneous proceeds........................................................................................................................................... ...............................0 ...............15,195,731 .................5,081,536
           12.8 Total investment proceeds (Lines 12.1 to 12.7)....................................................................................................... .............348,317,727 .............533,439,951 .............942,881,262
  13.      Cost of investments acquired (long-term only):
           13.1 Bonds........................................................................................................................................................................ .............332,999,199 .............505,964,792 .............902,699,836
           13.2 Stocks........................................................................................................................................................................ .................6,131,759 .................3,155,929 ...............10,486,786
           13.3 Mortgage loans......................................................................................................................................................... ...............10,600,000 ...............................0 ...............23,900,000
           13.4 Real estate................................................................................................................................................................ .................4,813,030 ....................233,141 .................2,525,779
           13.5 Other invested assets............................................................................................................................................... ...............40,442,095 ...............61,644,050 ...............97,526,148
           13.6 Miscellaneous applications....................................................................................................................................... ...............18,040,555 ....................393,715 ....................498,277
           13.7 Total investments acquired (Lines 13.1 to 13.6)...................................................................................................... .............413,026,638 .............571,391,628 ..........1,037,636,827
  14.      Net increase (decrease) in contract loans and premium notes.......................................................................................... ...................(657,329) ....................228,512 ...................(103,764)
  15.      Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)................................................................................ ..............(64,051,582) ..............(38,180,188) ..............(94,651,800)
                                 CASH FROM FINANCING AND MISCELLANEOUS SOURCES
  16.      Cash provided (applied):
           16.1 Surplus notes, capital notes...................................................................................................................................... ...............................0 ...............................0 ...............................0
           16.2 Capital and paid in surplus, less treasury stock....................................................................................................... ...............................0 ...............................0 ...............................0
           16.3 Borrowed funds......................................................................................................................................................... ...............................0 ...............................0 ...............................0
           16.4 Net deposits on deposit-type contracts and other insurance liabilities.................................................................... ....................846,625 ................(7,947,248) ...............88,613,158
           16.5 Dividends to stockholders......................................................................................................................................... ...............................0 ...............................0 ...............................0
           16.6 Other cash provided (applied).................................................................................................................................. ..............(22,059,514) ..............(13,108,571) ..............(45,168,893)
  17.      Net cash from financing and miscellaneous sources (Lines 16.1 through 16.4 minus Line 16.5 plus Line 16.6)............ ..............(21,212,889) ..............(21,055,819) ...............43,444,265
        RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
  18.      Net change in cash, cash equivalents and short-term investments (Line 11 plus Line 15 plus Line 17).......................... ..............(41,442,104) ..............(12,716,958) .................2,718,399
  19.      Cash, cash equivalents and short-term investments:
           19.1 Beginning of year...................................................................................................................................................... ...............67,153,898 ...............64,435,500 ...............64,435,500
           19.2 End of period (Line 18 plus Line 19.1)..................................................................................................................... ...............25,711,794 ...............51,718,542 ...............67,153,898
Note: Supplemental disclosures of cash flow information for non-cash transactions:
 20.0001 ................................................................................................................................................................................... ...............................0 ...............................0 ...............................0




                                                                                                                                           Q05
Statement as of June 30, 2012 of the               National Life Insurance Company
                                                                                                                                 EXHIBIT 1
                                                                                    DIRECT PREMIUMS AND DEPOSIT-TYPE CONTRACTS
                                                                                                                                                                         1                                                 2                                          3
                                                                                                                                                                    Current Year                                      Prior Year                                 Prior Year
                                                                                                                                                                      To Date                                          To Date                               Ended December 31

  1.      Industrial life.............................................................................................................................. ............................................0 ............................................0 ............................................0

  2.      Ordinary life insurance............................................................................................................... ..........................182,727,985 ..........................194,802,826 ..........................449,275,721

  3.      Ordinary individual annuities..................................................................................................... ............................17,312,561 ............................16,420,914 ............................33,007,255

  4.      Credit life (group and individual)................................................................................................ ............................................0 ............................................0 ............................................0

  5.      Group life insurance.................................................................................................................. ............................................0 ............................................0 ............................................0

  6.      Group annuities......................................................................................................................... ..............................1,540,422 ..............................3,566,128 ..............................9,179,174

  7.      A&H - group............................................................................................................................... ............................................0 ............................................0 ............................................0

  8.      A&H - credit (group and individual)............................................................................................ ............................................0 ............................................0 ............................................0

  9.      A&H - other................................................................................................................................ ............................15,865,006 ............................16,641,018 ............................32,795,964

 10. Aggregate of all other lines of business..................................................................................... ............................................0 ............................................0 ............................................0

 11. Subtotal..................................................................................................................................... ..........................217,445,974 ..........................231,430,886 ..........................524,258,114

 12. Deposit-type contracts............................................................................................................... ...................................32,436 .................................441,828 .................................541,827

 13. Total........................................................................................................................................... ..........................217,478,410 ..........................231,872,714 ..........................524,799,941

                                                                                                                              DETAILS OF WRITE-INS

1001. ................................................................................................................................................... ............................................0 ............................................0 ............................................0

1002. ................................................................................................................................................... ............................................0 ............................................0 ............................................0

1003. ................................................................................................................................................... ............................................0 ............................................0 ............................................0

1098. Summary of remaining write-ins for Line 10 from overflow page.............................................. ............................................0 ............................................0 ............................................0

1099. Total (Lines 1001 thru 1003 plus 1098) (Line 10 above)........................................................... ............................................0 ............................................0 ............................................0




                                                                                                                                                Q06
Statement as of June 30, 2012 of the   National Life Insurance Company

                                                   NOTES TO FINANCIAL STATEMENTS

Note 1 - Summary of Significant Accounting Policies

   A.         Accounting Practices

              The financial statements of National Life Insurance Company (the Company) are presented on the basis of accounting practices
              prescribed or permitted by the Vermont Department of Financial Regulation (the Department).

              The Department recognizes only statutory accounting practices prescribed or permitted by the State of Vermont for determining its
              solvency under Vermont Insurance Law. The National Association of Insurance Commissioners’ (NAIC) Accounting Practices and
              Procedures manual - version effective January 1, 2001 and as subsequently modified (NAIC SAP), has been adopted as a
              component of prescribed or permitted practices by the Department. NAIC SAP consists of Statements of Statutory Accounting
              Principles (SSAPs) and other authoritative guidance.

              A reconciliation of the Company's net income and capital and surplus between NAIC SAP and practices prescribed and permitted by
              the State of Vermont are shown below:

                                                              State of Domicile                  June 2012            Dec 2011
              (1) Net Income (Loss) Vermont State Basis                VT                   $      21,964,506        $25,943,581

              (2) State Prescribed Practice (Income)                    VT                        -0-                  -0-

              (3) State Permitted Practice (Income)                     VT                        -0-                  -0-

              (4) Net Income, NAIC SAP                                                      $     21,964,506         $25,943,581

              (5) Statutory Surplus Vermont State Basis                 VT                  $ 1,184,883,121      $ 1,142,659,354

              (6) State Prescribed Practice (Surplus)                   VT                        -0-                  -0-

              (7) State Permitted Practice (Surplus)                    VT                        -0-                  -0-

              (8) Statutory Surplus, NAIC SAP                                               $ 1,184,883,121      $ 1,142,659,354

              In 2011, the NAIC adopted SSAP No. 101 – Income Taxes. SSAP No. 101 replaces SSAP No. 10 and SSAP No.10R. The effective
              date for implementation of SSAP 101 was January 1, 2012. The adoption did not have an impact on the Company’s assets,
              liabilities, surplus and other funds or statements of operations.

Note 2 - Accounting Changes and Corrections of Errors

                   No significant change.

Note 3 - Business Combinations and Goodwill

                   No significant change.

Note 4 - Discontinued Operations

                   No significant change.

Note 5 - Investments

D.            1. Prepayment assumptions used in the calculation of the effective yield and valuation of loan-backed bonds and structured
                   securities are based on available industry sources and information provided by lenders. The retrospective adjustment
                   methodology is used for the valuation of securities held by the Company.


              2.
                                                    1          2                       3
                                               Amortized    Other-than-Temporary Fair Value
                                               cost Basis  Impairment Recognized   C1 - (C2a
                                                 Before            in Loss          + C2b)
                                             Other-than-Te
                                                mporary
                                              Impairment
                                                           2a          2b        Non-interest
                                                            Interest


 OTTI recognized 1st Quarter
 a. Intent to sell                                      0           0             0          0
 b. Inability or lack of intent to                      0           0             0          0
 retain the investment in the
 security for a period of time
 sufficient to recover the
 amortized cost basis

 c. Total 1st Quarter                                   0           0             0          0

 OTTI recognized 2nd Quarter
 d. Intent to sell                                      0           0             0          0



                                                                             Q07
Statement as of June 30, 2012 of the   National Life Insurance Company

                                                  NOTES TO FINANCIAL STATEMENTS
 e. Inability or lack of intent to                   0        0          0            0
 retain the investment in the
 security for a period of time
 sufficient to recover the
 amortized cost basis

 f. Total 2nd Quarter                                0        0          0            0

 OTTI recognized 3rd Quarter
 g. Intent to sell                                   0        0          0            0
 h. Inability or lack of intent to                   0        0          0            0
 retain the investment in the
 security for a period of time
 sufficient to recover the
 amortized cost basis

 i. Total 3rd Quarter                                0        0          0            0

 OTTI recognized 4th Quarter
 j. Intent to sell                                   0         0         0            0
 k. Inability or lack of intent to                   0        0          0            0
 retain the investment in the
 security for a period of time
 sufficient to recover the
 amortized cost basis

 l. Total 4th Quarter                                0        0          0            0

 m. Annual Aggregate Total                           0        0          0            0


              3.

     1                     2            3            4              5             6           7
 CUSIP                Book/Adj      Projected  Recognized Amortized cost Fair Value at     Date of
                    Carrying Value Cash Flows other-than-tem      after     the time of   Financial
                      Amortized                   porary     other-than-tem    OTTI       Statement
                     Cost before                impairment       porary                    Where
                    current period                             impairment                 Reported
                        OTTI




 Total

              4.

    LT 12 MOS                          GT 12 MOS                            TOTAL
 FAIR VALUE       UNREAL LOSS       FAIR VALUE       UNREAL LOSS        FAIRVALUE       UNREAL LOSS
        4,303,190         (117,370)       39,894,142       (11,057,229)      44,197,332        (11,174,599)


Note 6 - Joint Ventures, Partnerships and Limited Liability Companies

                   No significant change.

Note 7 - Investment Income

                   No significant change.

Note 8 - Derivative Instruments

                   No significant change.

Note 9 - Income Taxes

                   No significant change.

Note 10 - Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties

                   No significant change.

Note 11 - Debt

                   No significant change.

Note 12 - Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other
Postretirement Benefit Plans

                                                                   Q07.1
Statement as of June 30, 2012 of the   National Life Insurance Company

                                                      NOTES TO FINANCIAL STATEMENTS

                 No significant change.

Note 13 - Capital and Surplus, Shareholders’ Dividend Restrictions and Quasi-Reorganizations

                 No significant change.

Note 14 - Contingencies

                 No significant change.

Note 15 - Leases

                 No significant change.

Note 16 - Information About Financial Instruments With Off-Balance Sheet Risk and Financial Instruments With
Concentrations of Credit Risk

                 No significant change.

Note 17 - Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities

C.               None

Note 18 - Gain or Loss to the Reporting Entity from Uninsured Plans and the Uninsured Portion of Partially Insured
Plans

                 No significant change.

Note 19 - Direct Premium Written/Produced by Managing General Agents/Third Party Administrators

                 No significant change.

Note 20 - Fair Value

A.               (1) Assets Measured at Fair Value on a Recurring Basis

                                                       Level 1            Level 2                  Level 3                Total
 Assets at Fair Value
 Bonds
 Industrial & Miscellaneous                                       0             5,184,807                     0             5,184,807
 Hybrid Securities                                                0                     0                     0                     0

 Common Stock
 Industrial & Miscellaneous                              29,633,339                       0                   0            29,633,339

 Derivatives
 OTC-Options Long                                                 0            16,537,402                     0            16,537,402
 Futures                                                     29,563                     0                     0                29,563
 Total Derivatives                                           29,563            16,537,402                     0            16,566,965

 Short Term                                              25,150,000                       0                   0            25,150,000

 Separate Accounts Assets                              611,861,947             71,375,832                     0           683,237,779
 Total Assets at Fair Value                            666,674,849             93,098,041                     0           759,772,890

 Liabilities at Fair Value
 Derivatives
 Interest Rate Swap                                               0               327,326                     0               327,326
 OTC-Options Short                                                0             5,357,428                     0             5,357,428

 Total Liabilities at Fair Value                                  0             5,684,754                     0             5,684,754

                 2. Fair Value Measurements in (Level 3) of the Fair Value Hierarchy

 Assets                        Beginning       Net Investment     Unrealized       Activity During the Transfers In/Out      Ending           Assets and
                                Balance         Gains/Loss in                      period (Purchaess,     of Level 3         Balance       Liabilities still held
                                              earning (Realized                    Issuances, Sales,                                        at the reporting
                                               and Unrealized)                        Settlements)                                                  date




 Bonds
 Corporate                                0                  0                 0                   0                  0                0                       0



                                                                                   Q07.2
Statement as of June 30, 2012 of the   National Life Insurance Company

                                                  NOTES TO FINANCIAL STATEMENTS
Note 21 - Other Items

                 No significant change.

Note 22 - Events Subsequent

                 No significant change.

Note 23 - Reinsurance

                 No significant change.

Note 24 - Retrospectively Rated Contracts & Contracts Subject to Redetermination

                 No significant change.

Note 25 - Change in Incurred Losses and Loss Adjustment Expenses

                 N/A

Note 26 - Intercompany Pooling Arrangements

                 No significant change.

Note 27 - Structured Settlements

                 No significant change.

Note 28 - Health Care Receivables

                 No significant change.

Note 29 - Participating Policies

                 No significant change.

Note 30 - Premium Deficiency Reserves

                 No significant change.

Note 31 - Reserves for Life Contracts and Annuity Contracts

                 No significant change.

Note 32 - Analysis of Annuity Actuarial Reserves and Deposit Liabilities by Withdrawal Characteristics

                 No significant change.

Note 33 - Premiums and Annuity Considerations Deferred and Uncollected

                 No significant change.

Note 34 - Separate Accounts

                 No significant change.

Note 35 - Loss/Claim Adjustment Expenses

                 No significant change.




                                                                  Q07.3
Statement as of June 30, 2012 of the   National Life Insurance Company
                                                                      GENERAL INTERROGATORIES
                                                              PART 1 - COMMON INTERROGATORIES - GENERAL
1.1   Did the reporting entity experience any material transactions requiring the filing of Disclosure of Material Transactions with the State of Domicile, as
      required by the Model Act?                                                                                                                                                   Yes [ X ]             No [ ]

1.2   If yes, has the report been filed with the domiciliary state?                                                                                                                Yes [ X ]             No [ ]

2.1   Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the reporting entity?                Yes [ ]               No [ X ]

2.2   If yes, date of change:                                                                                                                                                ........................................

3.    Have there been any substantial changes in the organizational chart since the prior quarter end?                                                                             Yes [ ]               No [ X ]
      If yes, complete the Schedule Y-Part 1 - Organizational chart.

4.1   Has the reporting entity been a party to a merger or consolidation during the period covered by this statement?                                                              Yes [ ]               No [ X ]

4.2   If yes, provide name of entity, NAIC Company Code, and state of domicile (use two letter state abbreviation) for any entity that has ceased to exist
      as a result of the merger or consolidation.
                                                          1                                                            2                    3
                                                                                                                     NAIC                State of
                                                    Name of Entity                                             Company Code              Domicile


5.    If the reporting entity is subject to a management agreement, including third-party administrator(s), managing general agent(s), attorney-in-fact,
      or similar agreement, have there been any significant changes regarding the terms of the agreement or principals involved?                                          Yes [ ] No [ ] N/A [ X ]
      If yes, attach an explanation.



6.1   State as of what date the latest financial examination of the reporting entity was made or is being made.                                                              12/31/2009......................

6.2   State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity. This date should
      be the date of the examined balance sheet and not the date the report was completed or released.                                                                       12/31/2009......................

6.3   State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or
      the reporting entity. This is the release date or completion date of the examination report and not the date of the examination (balance sheet date).                  2/18/2011........................

6.4   By what department or departments?
               Vermont Department of Financial Regulation


6.5   Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial statement
      filed with Departments?                                                                                                                                             Yes [ X ] No [ ] N/A [ ]

6.6   Have all of the recommendations within the latest financial examination report been complied with?                                                                  Yes [ X ] No [ ] N/A [ ]

7.1   Has this reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable) suspended or revoked
      by any governmental entity during the reporting period?                                                                                                                      Yes [ ]               No [ X ]

7.2   If yes, give full information:



8.1   Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board?                                                                                Yes [ ]               No [ X ]

8.2   If response to 8.1 is yes, please identify the name of the bank holding company.



8.3   Is the company affiliated with one or more banks, thrifts or securities firms?                                                                                               Yes [ X ]             No [ ]

8.4   If the response to 8.3 is yes, please provide below the names and location (city and state of the main office) of any affiliates regulated by a federal
      regulatory services agency [i.e. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Federal Deposit
      Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)] and identify the affiliate's primary federal regulator].
                                         1                                       2                       3                    4                    5                  6
                                  Affiliate Name                      Location (City, State)           FRB                  OCC                  FDIC             SEC
               Equity Services, Inc                                   Montpelier, VT                                                                              Yes
               Sentinel Financial Services Company                    Montpelier, VT                                                                              Yes

9.1   Are the senior officers (principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing
      similar functions) of the reporting entity subject to a code of ethics, which includes the following standards?                                                              Yes [ X ]             No [ ]
      (a)      Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and
               professional relationships;
      (b)      Full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by the reporting entity;
      (c)      Compliance with applicable governmental laws, rules and regulations;
      (d)      The prompt internal reporting of violations to an appropriate person or persons identified in the code; and
      (e)      Accountability for adherence to the code.

9.11 If the response to 9.1 is No, please explain:




9.2   Has the code of ethics for senior managers been amended?                                                                                                                     Yes [ ]               No [ X ]

9.21 If the response to 9.2 is Yes, provide information related to amendment(s).



9.3   Have any provisions of the code of ethics been waived for any of the specified officers?                                                                                     Yes [ ]               No [ X ]




                                                                                                     Q08
Statement as of June 30, 2012 of the          National Life Insurance Company
                                                                                            GENERAL INTERROGATORIES
                                                                                   PART 1 - COMMON INTERROGATORIES - GENERAL
9.31 If the response to 9.3 is Yes, provide the nature of any waiver(s).




                                                                                                                      PART 1 - FINANCIAL
10.1 Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page 2 of this statement?                                                                                                            Yes [ ]              No [ X ]

10.2 If yes, indicate any amounts receivable from parent included in the Page 2 amount:                                                                                                                                          $...................................0




                                                                                                                    PART 1 - INVESTMENT
11.1 Were any of the stocks, bonds, or other assets of the reporting entity loaned, placed under option agreement, or otherwise made available
     for use by another person? (Exclude securities under securities lending agreements.)                                                                                                                                             Yes [ ]              No [ X ]

11.2 If yes, give full and complete information relating thereto:



 12. Amount of real estate and mortgages held in other invested assets in Schedule BA:                                                                                                                                           $...................................0

 13. Amount of real estate and mortgages held in short-term investments:                                                                                                                                                         $...................................0

14.1 Does the reporting entity have any investments in parent, subsidiaries and affiliates?                                                                                                                                           Yes [ X ]             No [ ]

14.2 If yes, please complete the following:                                                                                                                                       1                                            2
                                                                                                                                                                           Prior Year-End                              Current Quarter
                                                                                                                                                                     Book/Adjusted Carrying Value                Book/Adjusted Carrying Value
      14.21    Bonds............................................................................................................................................                 $ ............3,902,694                  $ .......................3,915,322
      14.22    Preferred Stock.............................................................................................................................                      $ ..........................0            $ .....................................0
      14.23    Common Stock.............................................................................................................................                         $ ........536,974,150                    $ ...................570,913,842
      14.24    Short-Term Investments...............................................................................................................                             $ ..........................0            $ .....................................0
      14.25    Mortgage Loans on Real Estate...................................................................................................                                  $ ..........................0            $ .....................................0
      14.26    All Other........................................................................................................................................                 $ ..........................0            $ .....................................0
      14.27    Total Investment in Parent, Subsidiaries and Affiliates (Subtotal Lines 14.21 to 14.26)..............                                                             $ ........540,876,844                    $ ...................574,829,164
      14.28    Total Investment in Parent included in Lines 14.21 to 14.26 above.............................................                                                    $ ..........................0            $ .....................................0

15.1 Has the reporting entity entered into any hedging transactions reported on Schedule DB?                                                                                                                                          Yes [ X ]             No [ ]

15.2 If yes, has a comprehensive description of the hedging program been made available to the domiciliary state?                                                                                                                     Yes [ X ]             No [ ]
     If no, attach a description with this statement.



 16. Excluding items in Schedule E-Part 3-Special Deposits, real estate, mortgage loans and investments held physically in the reporting
     entity's offices, vaults or safety deposit boxes, were all stocks, bonds and other securities, owned throughout the current year held
     pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section 1, III - General Examination Considerations,
     F. Outsourcing of Critical Functions, Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Handbook?                                                                                                    Yes [ X ]             No [ ]

      16.1     For all agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook,
               complete the following:
                                        1                                                                                     2
                             Name of Custodian(s)                                                                     Custodian Address
               JP Morgan Chase                                    New York, NY


      16.2     For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, provide the
               name, location and a complete explanation.
                                        1                                              2                                                           3
                                    Name(s)                                       Location(s)                                            Complete Explanation(s)



      16.3     Have there been any changes, including name changes, in the custodian(s) identified in 16.1 during the current quarter?                                                                                                Yes [ ]              No [ X ]

      16.4     If yes, give full and complete information relating thereto:
                                          1                                                                              2                                                3                                         4
                                    Old Custodian                                                                   New Custodian                                  Date of Change                                 Reason



      16.5     Identify all investment advisors, broker/dealers or individuals acting on behalf of broker/dealers that have access
               to the investment accounts, handle securities and have authority to make investments on behalf of the reporting entity:
                                         1                                                            2                                                                                                              3
                          Central Registration Depository                                         Name(s)                                                                                                         Address
               109396                                                 Sentinel Asset Management, Inc.                              Montpelier, VT


       17.1 Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Securities Valuation Office been followed?                                                                                             Yes [ X ]             No [ ]

       17.2 If no, list exceptions:




                                                                                                                                          Q08.1
Statement as of June 30, 2012 of the           National Life Insurance Company
                                                                       GENERAL INTERROGATORIES (continued)
                                                                                                                PART 2 - LIFE & HEALTH

1.    Report the statement value of mortgage loans at the end of this reporting period for the following categories:

1.1   Long-term mortgages in good standing                                                                                                                                                                                                                   Amount
      1.11 Farm mortgages............................................................................................................................................................................................................     $................................................0
      1.12 Residential mortgages...................................................................................................................................................................................................       $................................................0
      1.13 Commercial mortgages.................................................................................................................................................................................................          $..............................628,845,432
      1.14 Total mortgages in good standing.................................................................................................................................................................................              $..............................628,845,432

1.2   Long-term mortgages in good standing with restructured terms
      1.21 Total mortgages in good standing with restructured terms............................................................................................................................................ $................................................0

1.3   Long-term mortgage loans upon which interest is overdue more than three months
      1.31 Farm mortgages............................................................................................................................................................................................................     $................................................0
      1.32 Residential mortgages...................................................................................................................................................................................................       $................................................0
      1.33 Commercial mortgages.................................................................................................................................................................................................          $................................................0
      1.34 Total mortgages with interest overdue more than three months...................................................................................................................................                                $................................................0

1.4   Long-term mortgage loans in process of foreclosure
      1.41 Farm mortgages............................................................................................................................................................................................................     $................................................0
      1.42 Residential mortgages...................................................................................................................................................................................................       $................................................0
      1.43 Commercial mortgages.................................................................................................................................................................................................          $................................................0
      1.44 Total mortgages in process of foreclosure....................................................................................................................................................................                  $................................................0

1.5    Total mortgage loans (Lines 1.14 + 1.21 + 1.34 + 1.44) (Page 2, Column 3, Lines 3.1 + 3.2) .............................................................................................. $..............................628,845,432

1.6   Long-term mortgages foreclosed, properties transferred to real estate in current quarter
      1.61 Farm mortgages............................................................................................................................................................................................................     $................................................0
      1.62 Residential mortgages...................................................................................................................................................................................................       $................................................0
      1.63 Commercial mortgages.................................................................................................................................................................................................          $................................................0
      1.64 Total mortgages foreclosed and transferred to real estate............................................................................................................................................                          $................................................0

2.    Operating Percentages:
      2.1    A&H loss percent........................................................................................................................................................................................................... ...............................................0.0
      2.2    A&H cost containment percent...................................................................................................................................................................................... ...............................................0.0
      2.3    A&H expense percent excluding cost containment expenses....................................................................................................................................... ...............................................0.0

3.1    Do you act as a custodian for health savings accounts?..........................................................................................................................................................     Yes [ ]                 No [ X ]
3.2    If yes, please provide the amount of custodial funds held as of the reporting date.................................................................................................................. $................................................0
3.3    Do you act as an administrator for health savings accounts?...................................................................................................................................................       Yes [ ]                 No [ X ]
3.4    If yes, please provide the balance of the funds administered as of the reporting date............................................................................................................. $................................................0




                                                                                                                                          Q09
Statement as of June 30, 2012 of the   National Life Insurance Company
                                                     SCHEDULE S - CEDED REINSURANCE
                                                     Showing All New Reinsurance Treaties - Current Year to Date
       1                     2              3                                4                                       5                    6               7
     NAIC                 Federal                                                                                                      Type of       Is Insurer
    Company                 ID           Effective                                                                                   Reinsurance   Authorized?
     Code                 Number           Date                       Name of Reinsurer                   Domiciliary Jurisdiction     Ceded       (YES or NO)




                                                                     NONE




                                                                                 Q10
Statement as of June 30, 2012 of the              National Life Insurance Company
                                                 SCHEDULE T - PREMIUMS AND ANNUITY CONSIDERATIONS
                                                                                         Current Year to Date - Allocated by States and Territories
                                                                                                                        1                                                                                 Direct Business Only
                                                                                                                                                   Life Contracts                                          4                             5                        6                         7
                                                                                                                                               2                         3                  Accident and Health
                                                                                                                                                                                           Insurance Premiums,                                                  Total
                                                                                                                     Active           Life Insurance                 Annuity              Including Policy, Mem-                      Other                  Columns                Deposit-Type
                                            States, Etc.                                                             Status              Premiums              Considerations            bership and Other Fees Considerations                             2 through 5                 Contracts
  1.      Alabama.....................................................................................AL         ......L.........   ........1,394,330          ...............7,480      ........................362,399 ......................0        ........1,764,209         ......................0
  2.      Alaska........................................................................................AK       ......L.........    .............26,004       ......................0   ..........................11,574 ......................0       .............37,578       ......................0
  3.      Arizona.......................................................................................AZ       ......L.........    ........1,960,148         ...........311,427        ........................124,073 ......................0        ........2,395,648         ......................0
  4.      Arkansas...................................................................................AR          ......L.........    ...........160,135        ......................0   ..........................18,518 ......................0       ...........178,653        ......................0
  5.      California...................................................................................CA        ......L.........    ......15,064,857          ...........160,834        .....................1,563,957 ......................0         ......16,789,648          ......................0
  6.      Colorado...................................................................................CO          ......L.........    ...........827,353        ...........283,275        ........................140,533 ......................0        ........1,251,161         ......................0
  7.      Connecticut................................................................................CT          ......L.........    ........3,367,591         ...........107,909        ........................377,046 ......................0        ........3,852,546         ......................0
  8.      Delaware...................................................................................DE          ......L.........    ...........936,789        ...........152,050        ..........................38,631 ......................0       ........1,127,470         ......................0
  9.      District of Columbia...................................................................DC              ......L.........    ...........209,133        ......................0   ..........................28,968 ......................0       ...........238,101        ......................0
  10.     Florida........................................................................................FL      ......L.........    ......13,289,306          ........1,913,590         ........................926,597 ......................0        ......16,129,493          ......................0
  11.     Georgia.....................................................................................GA         ......L.........    ........7,795,275         ........1,097,399         ........................711,571 ......................0        ........9,604,245         ......................0
  12.     Hawaii.........................................................................................HI      ......L.........    ...........124,654        ......................0   ..........................24,461 ......................0       ...........149,115        ......................0
  13.     Idaho...........................................................................................ID     ......L.........    ...........243,096        .............45,701       ............................9,922 ......................0      ...........298,719        ......................0
  14.     Illinois..........................................................................................IL   ......L.........    ........4,712,787         ...........337,236        ........................369,368 ......................0        ........5,419,391         ......................0
  15.     Indiana........................................................................................IN      ......L.........    ........1,767,345         ...........558,000        ........................116,558 ......................0        ........2,441,903         ......................0
  16.     Iowa............................................................................................IA     ......L.........    ...........233,389        ...............8,330      ........................160,296 ......................0        ...........402,015        ......................0
  17.     Kansas.......................................................................................KS        ......L.........    ........1,015,005         ...........153,800        ..........................51,178 ......................0       ........1,219,983         ......................0
  18.     Kentucky....................................................................................KY         ......L.........    ...........835,019        .............94,468       ..........................36,328 ......................0       ...........965,815        ......................0
  19.     Louisiana....................................................................................LA        ......L.........    ...........699,081        ..................700     ........................101,584 ......................0        ...........801,365        ......................0
  20.     Maine........................................................................................ME        ......L.........    ........2,630,034         .............55,550       ........................157,910 ......................0        ........2,843,494         ......................0
  21.     Maryland...................................................................................MD          ......L.........    ........3,741,321         .............66,266       ........................177,863 ......................0        ........3,985,450         ......................0
  22.     Massachusetts..........................................................................MA              ......L.........    ........3,094,059         ...........502,851        ........................323,883 ......................0        ........3,920,793         .............32,436
  23.     Michigan.....................................................................................MI        ......L.........    ........2,960,006         ...........173,862        ........................671,402 ......................0        ........3,805,270         ......................0
  24.     Minnesota.................................................................................MN           ......L.........    ........2,428,966         ...........341,392        ........................352,067 ......................0        ........3,122,425         ......................0
  25.     Mississippi.................................................................................MS         ......L.........    ........3,355,326         ......................0   ..........................27,655 ......................0       ........3,382,981         ......................0
  26.     Missouri....................................................................................MO         ......L.........    ........4,425,762         ...............3,600      ..........................81,913 ......................0       ........4,511,275         ......................0
  27.     Montana....................................................................................MT          ......L.........    ...........202,217        ......................0   ..........................19,159 ......................0       ...........221,376        ......................0
  28.     Nebraska...................................................................................NE          ......L.........    ...........518,650        ...........592,650        ..........................88,383 ......................0       ........1,199,683         ......................0
  29.     Nevada......................................................................................NV         ......L.........    ...........524,634        ......................0   ..........................16,493 ......................0       ...........541,127        ......................0
  30.     New Hampshire.........................................................................NH               ......L.........    ........1,561,248         ...........131,457        ........................101,285 ......................0        ........1,793,990         ......................0
  31.     New Jersey................................................................................NJ           ......L.........    ........7,764,349         ...........365,654        ........................829,671 ......................0        ........8,959,674         ......................0
  32.     New Mexico..............................................................................NM             ......L.........    ...........160,681        ...............4,300      ..........................17,564 ......................0       ...........182,545        ......................0
  33.     New York...................................................................................NY          ......L.........    ......28,312,255          ........4,567,378         .....................2,335,516 ......................0         ......35,215,149          ......................0
  34.     North Carolina...........................................................................NC            ......L.........    ........8,649,489         ...........720,015        ........................366,684 ......................0        ........9,736,188         ......................0
  35.     North Dakota.............................................................................ND            ......L.........    ...........128,129        ....................50    ............................4,368 ......................0      ...........132,547        ......................0
  36.     Ohio..........................................................................................OH       ......L.........    ........4,165,731         ...........411,067        ........................315,753 ......................0        ........4,892,551         ......................0
  37.     Oklahoma..................................................................................OK           ......L.........    ...........288,215        .............42,563       ..........................15,508 ......................0       ...........346,286        ......................0
  38.     Oregon......................................................................................OR         ......L.........    ........1,309,989         .............76,850       ..........................73,092 ......................0       ........1,459,931         ......................0
  39.     Pennsylvania.............................................................................PA            ......L.........    ........7,830,437         ...........188,292        ........................798,534 ......................0        ........8,817,263         ......................0
  40.     Rhode Island...............................................................................RI          ......L.........    ........1,282,705         ...........341,676        ........................173,253 ......................0        ........1,797,634         ......................0
  41.     South Carolina...........................................................................SC            ......L.........    ........1,268,674         .............11,066       ..........................96,662 ......................0       ........1,376,402         ......................0
  42.     South Dakota.............................................................................SD            ......L.........    ...........124,704        ...............3,000      ..........................19,669 ......................0       ...........147,373        ......................0
  43.     Tennessee.................................................................................TN           ......L.........    ........1,718,704         ...............9,000      ........................162,537 ......................0        ........1,890,241         ......................0
  44.     Texas.........................................................................................TX       ......L.........    ........4,303,165         .............28,023       ........................364,122 ......................0        ........4,695,310         ......................0
  45.     Utah...........................................................................................UT      ......L.........    ........1,964,121         ...........261,759        ..........................56,715 ......................0       ........2,282,595         ......................0
  46.     Vermont.....................................................................................VT         ......L.........    ........6,402,842         ........1,851,033         ........................210,485 ......................0        ........8,464,360         ......................0
  47.     Virginia.......................................................................................VA      ......L.........    ........7,093,972         ...........296,704        ........................379,364 ......................0        ........7,770,040         ......................0
  48.     Washington...............................................................................WA            ......L.........    ........1,337,340         ..................500     ..........................85,744 ......................0       ........1,423,584         ......................0
  49.     West Virginia............................................................................WV            ......L.........    ...........256,025        ...............5,000      ..........................16,239 ......................0       ...........277,264        ......................0
  50.     Wisconsin...................................................................................WI         ......L.........    ........5,814,900         .............52,200       ..........................93,346 ......................0       ........5,960,446         ......................0
  51.     Wyoming...................................................................................WY           ......L.........    ...........142,223        ...............8,000      ............................7,985 ......................0      ...........158,208        ......................0
  52.     American Samoa.......................................................................AS                ......N.........    ......................0   ......................0   ...................................0 ......................0   ......................0   ......................0
  53.     Guam........................................................................................GU         ......N.........    ......................0   ......................0   ...................................0 ......................0   ......................0   ......................0
  54.     Puerto Rico................................................................................PR          ......N.........    ...............3,695      ......................0   ...............................871 ......................0     ...............4,566      ......................0
  55.     US Virgin Islands........................................................................VI            ......N.........    .............32,522       ......................0   ...................................0 ......................0   .............32,522       ......................0
  56.     Northern Mariana Islands..........................................................MP                   ......N.........    ......................0   ......................0   ...................................0 ......................0   ......................0   ......................0
  57.     Canada......................................................................................CN         ......N.........    ......................0   ......................0   ...................................0 ......................0   ......................0   ......................0
  58.     Aggregate Other Alien...............................................................OT                 ....XXX......       ........1,088,873         .............59,988       ..........................26,025 ......................0       ........1,174,886         ......................0
  59.     Subtotal..........................................................................................     (a)........51       ....171,547,260           ......16,403,945          ...................13,641,282 ......................0          ....201,592,487           .............32,436
  90.     Reporting entity contributions for employee benefit plans..............                                ....XXX......       ...........357,828        ........1,451,342         ...................................0 ......................0   ........1,809,170         ......................0
  91.     Dividends or refunds applied to purchase paid-up
          additions and annuities...................................................................             ....XXX...... ......29,330,980 ...........997,698 ...................................0 ......................0 ......30,328,677 ......................0
  92.     Dividends or refunds applied to shorten endowment or
          premium paying period...................................................................               ....XXX...... ......................0 ......................0 ...................................0 ......................0 ......................0 ......................0
  93.     Premium or annuity considerations waived under disability
          or other contract provisions............................................................                          ........2,619,680 ......................0 .....................2,433,752 ......................0 ........5,053,432
                                                                                                                 ....XXX......                                                                                                                                                    ......................0
  94.     Aggregate other amounts not allocable by State...........................                                         .............18,094 ......................0 ...................................0 ......................0 .............18,094
                                                                                                                 ....XXX......                                                                                                                                                    ......................0
  95.     Totals (Direct Business).................................................................                         ....203,873,842 ......18,852,984 ...................16,075,034 ......................0 ....238,801,860
                                                                                                                 ....XXX......                                                                                                                                                    .............32,436
  96.     Plus Reinsurance Assumed...........................................................                               ...........193,497 ......................0 ...................................0 ......................0 ...........193,497
                                                                                                                 ....XXX......                                                                                                                                                    ......................0
  97.     Totals (All Business).......................................................................                      ....204,067,339 ......18,852,984 ...................16,075,034 ......................0 ....238,995,357
                                                                                                                 ....XXX......                                                                                                                                                    .............32,436
  98.     Less Reinsurance Ceded...............................................................                             ......23,607,265 .............27,019 ...................12,731,816 ......................0 ......36,366,099
                                                                                                                 ....XXX......                                                                                                                                                    ......................0
  99.     Totals (All Business) less Reinsurance Ceded..............................                                        ....180,460,074 ......18,825,965 .....................3,343,219 ......................0 ....202,629,258
                                                                                                                 ....XXX......                                                                                                                                                    .............32,436
                                                                                                                            DETAILS OF WRITE-INS
5801. Other Foreign................................................................................. ....XXX...... ........1,088,873 .............59,988 ..........................26,025 ......................0 ........1,174,886                                               ......................0
5802. ....................................................................................................... ....XXX...... ......................0 ......................0 ...................................0 ......................0 ......................0                  ......................0
5803. ....................................................................................................... ....XXX...... ......................0 ......................0 ...................................0 ......................0 ......................0                  ......................0
5898. Summary of remaining write-ins for line 58 from overflow page.... ....XXX...... ......................0 ......................0 ...................................0 ......................0 ......................0                                                        ......................0
5899. Total (Lines 5801 thru 5803 plus 5898) (Line 58 above)................ ....XXX...... ........1,088,873 .............59,988 ..........................26,025 ......................0 ........1,174,886                                                                       ......................0
9401. Other Foreign................................................................................. ....XXX...... .............18,094 ......................0 ...................................0 ......................0 .............18,094                                   ......................0
9402. ....................................................................................................... ....XXX...... ......................0 ......................0 ...................................0 ......................0 ......................0                  ......................0
9403. ....................................................................................................... ....XXX...... ......................0 ......................0 ...................................0 ......................0 ......................0                  ......................0
9498. Summary of remaining write-ins for line 94 from overflow page.... ....XXX...... ......................0 ......................0 ...................................0 ......................0 ......................0                                                        ......................0
9499. Total (Lines 9401 thru 9403 plus 9498) (Line 94 above)................ ....XXX...... .............18,094 ......................0 ...................................0 ......................0 .............18,094                                                           ......................0
(L) - Licensed or Chartered - Licensed Insurance Carrier or Domicilied RRG; (R) - Registered - Non-domiciled RRGs; (Q) - Qualified - Qualified or Accredited Reinsurer;
(E) - Eligible - Reporting Entities eligible or approved to write Surplus Lines in the state; (N) - None of the above - Not allowed to write business in the state.
  (a) Insert the number of L responses except for Canada and Other Alien.




                                                                                                                                                   Q11
      Statement as of June 30, 2012 of the   National Life Insurance Company
Q12
         Statement as of June 30, 2012 of the      National Life Insurance Company
                                                                                                                                                                                                                                   SCHEDULE Y
                                                                                                                                                                               PART 1A - DETAIL OF INSURANCE HOLDING COMPANY SYSTEM
          1                            2                            3                 4                     5                    6                      7                                                   8                                           9                   10                                                 11                                                12              13                                                 14                                            15
                                                                                                                                                    Name of                                                                                                                                                                                                                    Type of
                                                                                                                                                   Securities                                                                                                                                                                                                                  Control
                                                                                                                                                   Exchange                                                                                                                                                                                                                  (Ownership
                                                                                                                                                   if Publicly                                                                                                                                                                                                                  Board,      If Control is
                                                                 NAIC            Federal                                                             Traded                                         Names of                                                  Relationship                                                                                                  Management Ownership
       Group                        Group                       Company            ID                  Federal                                       (U.S. or                                  Parent, Subsidiaries                               Domiciliary to Reporting                                     Directly Controlled by                                     Attorney-in-Fact, Provide                                   Ultimate Controlling
       Code                         Name                         Code            Number                RSSD                    CIK               International)                                    or Affiliates                                   Location      Entity                                       (Name of Entity/Person)                                     Influence, Other) Percentage                                Entity(ies)/Person(s)                                         *

      Members
      0000...... National Life Group.........................   00000......   03-0359221            0.................   0.................   ..........................   National Life Holding Company..............................            VT.............   UDP.............        ...........................................................................   Board................   .......0.000   ..........................................................................    ............
      0000...... National Life Group.........................   00000......   20-4818866            0.................   0.................   ..........................   National Life Group Charitable Foundation, Inc......                   VT.............   NIA...............      National Life Holding Company..........................                       Management.....         ...100.000     National Life Holding Company..........................                      0...........
      0000...... National Life Group.........................   00000......   03-0359222            0.................   0.................    .........................   NLV Financial Corporation......................................        DE............    UDP.............        National Life Holding Company..........................                       Board................   .......0.000   National Life Holding Company..........................                      0...........
      0634...... National Life Group.........................   66680......   03-0144090            0.................   0.................    .........................   National Life Insurance Company...........................             VT.............   .....................   NLV Financial Corporation..................................                   Board................   .......0.000   National Life Holding Company..........................                      0...........
      0634...... National Life Group.........................   65528......   75-0953004            0.................   0.................   ..........................   Life Insurance Company of the Southwest..............                  TX.............   DS................      National Life Insurance Company.......................                        Ownership.........      ...100.000     National Life Holding Company..........................                      0...........
      0000...... National Life Group.........................   00000......   03-0221140            0.................   0.................   ..........................   Sentinel Asset Management, Inc............................             VT.............   NIA...............      NLV Financial Corporation..................................                   Board................   .......0.000   National Life Holding Company..........................                      0...........
      0000...... National Life Group.........................   00000......   03-0316212            0.................   0.................   ..........................   Sentinel Administrative Services, Inc......................            VT.............   NIA...............      Sentinel Asset Management, Inc........................                        Ownership.........      ...100.000     National Life Holding Company..........................                      0...........
      0000...... National Life Group.........................   00000......   51-0102130            0.................   0.................   ..........................   Sentinel Financial Services, Inc..............................         DE............    NIA...............      Sentinel Asset Management, Inc........................                        Ownership.........      ...100.000     National Life Holding Company..........................                      0...........
      0000...... National Life Group.........................   00000......   03-0335801            0.................   0.................   ..........................   Sentinel Financial Services Company.....................               VT.............   NIA...............      Sentinel Financial Services, Inc..........................                    Ownership.........      .....95.100    National Life Holding Company..........................                      0...........
      0000...... National Life Group.........................   00000......   03-0355801            0.................   0.................   ..........................   Sentinel Financial Services Company.....................               VT.............   NIA...............      Sentinel Asset Management, Inc........................                        Ownership.........      .......4.900   National Life Holding Company..........................                      0...........
      0000...... National Life Group.........................   00000......   27-1362376            0.................   0.................   ..........................   National Life Real Estate Holdings, LLC.................               VT.............   NIA...............      NLV Financial Corporation..................................                   Ownership.........      ...100.000     National Life Holding Company..........................                      0...........
      0000...... National Life Group.........................   00000......   03-0223461            0.................   0.................   ..........................   National Retirement Plan Advisors, Inc...................              VT.............   NIA...............      NLV Financial Corporation..................................                   Ownership.........      ...100.000     National Life Holding Company..........................                      0...........
      0000...... National Life Group.........................   00000......   ...................   0.................   0.................   ..........................   NL Group Statutory Trust I......................................       CT............    NIA...............      NLV Financial Corporation..................................                   Ownership.........      ...100.000     National Life Holding Company..........................                      0...........
      0000...... National Life Group.........................   00000......   03-0221141            0.................   0.................   ..........................   Equity Services, Inc................................................   VT.............   NIA...............      NLV Financial Corporation..................................                   Ownership.........      ...100.000     National Life Holding Company..........................                      0...........
      0000...... National Life Group.........................   00000......   03-0221141            0.................   0.................   ..........................   Equity Services of Nevada, Inc...............................          NV............    NIA...............      Equity Services, Inc............................................              Ownership.........      ...100.000     National Life Holding Company..........................                      0...........
Q13
Statement as of June 30, 2012 of the   National Life Insurance Company
                             SUPPLEMENTAL EXHIBITS AND SCHEDULES INTERROGATORIES
The following supplemental reports are required to be filed as part of your statement filing. However, in the event that your company does not transact the type of
business for which the special report must be filed, your response of NO to the specific interrogatory will be accepted in lieu of filing a "NONE" report and a bar code
will be printed below. If the supplement is required of your company but is not being filed for whatever reason, enter SEE EXPLANATION and provide an
explanation following the interrogatory questions.
                                                                                                                                                                           Response
 1.    Will the Trusteed Surplus Statement be filed with the state of domicile and the NAIC with this statement?                                                             NO
 2.    Will the Medicare Part D Coverage Supplement be filed with the state of domicile and the NAIC with this statement?                                                    NO
 3.    Will the Reasonableness of Assumptions Certification required by Actuarial Guideline XXXV be filed with the state of domicile and electronically
       with the NAIC?                                                                                                                                                        NO
 4.    Will the Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXV be filed with the state of domicile
       and electronically with the NAIC?                                                                                                                                     NO
 5.    Will the Reasonableness of Assumptions Certification for Implied Guaranteed Rate Method required by Actuarial Guideline XXXVI be filed with
       the state of domicile and electronically with the NAIC?                                                                                                               NO
 6.    Will the Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI (Updated Average Market Value)
       be filed with the state of domicile and electronically with the NAIC?                                                                                                 NO
 7.    Will the Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI (Updated Market Value) be filed
       with the state of domicile and electronically with the NAIC?                                                                                                          YES


Explanations:
 1.
 2.
 3.
 4.
 5.
 6.
 7.


Bar Code:



       *66680201249000002*                                                                                                 *66680201244700002*
       *66680201236500002*                                                                                                 *66680201244800002*
       *66680201244500002*
       *66680201244600002*




                                                                                                Q14
Statement as of June 30, 2012 of the              National Life Insurance Company
                                                                                             Overflow Page for Write-Ins
Additional Write-ins for Assets:
                                                                                                                                                                                         Current Statement Date                                                                 4
                                                                                                                                                                       1                            2                                         3
                                                                                                                                                                                                                                    Net Admitted                      December 31,
                                                                                                                                                                                                  Nonadmitted                            Assets                       Prior Year Net
                                                                                                                                                                   Assets                             Assets                         (Cols. 1 - 2)                   Admitted Assets
2504. Items not allocated.......................................................................................................................        .................4,389,961         ......................31,444       .................4,358,517         .................2,799,146
2505. Software applications...................................................................................................................          ...............37,642,610          ...............37,642,610          ...............................0   ...............................0
2506. Prepaid pension...........................................................................................................................        ...............27,809,231          ...............27,809,231          ...............................0   ...............................0
2507. Prepaid expenses........................................................................................................................          .................4,215,652         .................4,215,652         ...............................0   ...............................0
2508. Miscellaneous Adjusment............................................................................................................               ....................142,568        ....................142,568        ...............................0   ...............................0
2597. Summary of remaining write-ins for Line 25................................................................................                        ...............74,200,022          ...............69,841,505          .................4,358,517         .................2,799,146
Additional Write-ins for Liabilities:
                                                                                                                                                                                                                                      1                                        2
                                                                                                                                                                                                                                 Current                             December 31
                                                                                                                                                                                                                          Statement Date                               Prior Year
2504.     Guaranty Fund.......................................................................................................................................................................................   ..........................3,177,532      ..........................6,377,132
2505.     Provision for sales practice litigation.....................................................................................................................................................           ..........................2,499,263      ..........................2,517,357
2506.     Reinsurance reserve adjustment...........................................................................................................................................................              ..........................1,748,751      ..........................6,946,871
2507.     Home office and agent medical plans...................................................................................................................................................                 ..........................1,208,616      ..........................1,581,849
2508.     Commission Accumulation Liability.......................................................................................................................................................               ..........................1,101,318      ..........................1,228,871
2509.     Accrued interest on death claims..........................................................................................................................................................             .............................650,976     .............................647,447
2597.     Summary of remaining write-ins for Line 25..........................................................................................................................................                   ........................10,386,456       ........................19,299,528
Additional Write-ins for Liabilities:
                                                                                                                                                                                                                1                                    2
                                                                                                                                                                                                           Current                         December 31
                                                                                                                                                                                                    Statement Date                           Prior Year
3404. Separate account special contingency fund.......................................................................................................................................... .............................140,318 .............................131,124
3497. Summary of remaining write-ins for Line 34.......................................................................................................................................... .............................140,318 .............................131,124
Additional Write-ins for Summary of Operations:
                                                                                                                                                                                                      1                               2                               3
                                                                                                                                                                                                 Current                           Prior                 Prior Year Ended
                                                                                                                                                                                            Year to Date                    Year to Date                    December 31
   5304.        Miscellaneous Adjustment............................................................................................................................................. ..............................0 ..............................0 ......................(4,383)
   5305.        Miscellaneous Surplus Adjustment - Reserves............................................................................................................. ..............................0 ..............................0 .............(16,890,758)
   5397.        Summary of remaining write-ins for Line 53.................................................................................................................. ..............................0 ..............................0 .............(16,895,141)




                                                                                                                                              Q15
Statement as of June 30, 2012 of the            National Life Insurance Company
                                                                                              SCHEDULE A - VERIFICATION
                                                                                                                                  Real Estate
                                                                                                                                                                                                                     1                                           2
                                                                                                                                                                                                                                                    Prior Year Ended
                                                                                                                                                                                                       Year to Date                                    December 31
 1.    Book/adjusted carrying value, December 31 of prior year....................................................................................................... ...............................46,372,671 ...............................45,752,273
 2.    Cost of acquired:
       2.1 Actual cost at time of acquisition...................................................................................................................................... ...............................................0 ...............................................0
       2.2 Additional investment made after acquisition................................................................................................................... .................................4,813,030 .................................2,525,779
 3.    Current year change in encumbrances................................................................................................................................... ...............................................0 ...............................................0
 4.    Total gain (loss) on disposals.................................................................................................................................................. ...............................................0 ...............................................0
 5.    Deduct amounts received on disposals................................................................................................................................... ...............................................0 ...............................................0
 6.    Total foreign exchange change in book/adjusted carrying value............................................................................................. ...............................................0 ...............................................0
 7.    Deduct current year's other than temporary impairment recognized....................................................................................... ...............................................0 ...............................................0
 8.    Deduct current year's depreciation.......................................................................................................................................... ....................................987,764 .................................1,905,381
 9.    Book/adjusted carrying value at end of current period (Lines 1+2+3+4-5+6-7-8)................................................................... ...............................50,197,937 ...............................46,372,671
 10.   Deduct total nonadmitted amounts.......................................................................................................................................... ...............................................0 ...............................................0
 11.   Statement value at end of current period (Line 9 minus Line 10)............................................................................................ ...............................50,197,937 ...............................46,372,671




                                                                                              SCHEDULE B - VERIFICATION
                                                                                                                             Mortgage Loans
                                                                                                                                                                                                                     1                                                2
                                                                                                                                                                                                                                                         Prior Year Ended
                                                                                                                                                                                                            Year to Date                                    December 31
 1.    Book value/recorded investment excluding accrued interest, December 31 of prior year....................................................... .............................641,089,534 .............................683,670,725
 2.    Cost of acquired:
       2.1 Actual cost at time of acquisition...................................................................................................................................... ...............................10,600,000 ...............................23,900,000
       2.2 Additional investment made after acquisition................................................................................................................... ...............................................0 ...............................................0
 3.    Capitalized deferred interest and other................................................................................................................................... ....................................145,945 ...............................................0
 4.    Accrual of discount.................................................................................................................................................................. ...............................................0 ...............................................0
 5.    Unrealized valuation increase (decrease)............................................................................................................................... ...............................................0 ...............................................0
 6.    Total gain (loss) on disposals.................................................................................................................................................. ...............................................0 ...............................................0
 7.    Deduct amounts received on disposals................................................................................................................................... ...............................22,990,047 ...............................66,481,191
 8.    Deduct amortization of premium and mortgage interest points and commitment fees............................................................ ...............................................0 ...............................................0
 9.    Total foreign exchange change in book value/recorded investment excluding accrued interest............................................. ...............................................0 ...............................................0
 10.   Deduct current year's other than temporary impairment recognized....................................................................................... ...............................................0 ...............................................0
 11.   Book value/recorded investment excluding accrued interest at end of current period (Lines 1+2+3+4+5+6-7-8+9-10)......... .............................628,845,432 .............................641,089,534
 12.   Total valuation allowance........................................................................................................................................................ ...............................................0 ...............................................0
 13.   Subtotal (Line 11 plus Line 12)................................................................................................................................................ .............................628,845,432 .............................641,089,534
 14.   Deduct total nonadmitted amounts.......................................................................................................................................... ...............................................0 ...............................................0
 15.   Statement value at end of current period (Line 13 minus Line 14).......................................................................................... .............................628,845,432 .............................641,089,534




                                                                                           SCHEDULE BA - VERIFICATION
                                                                                                           Other Long-Term Invested Assets
                                                                                                                                                                                                                     1                                            2
                                                                                                                                                                                                                                                     Prior Year Ended
                                                                                                                                                                                                            Year to Date                                December 31
 1.    Book/adjusted carrying value, December 31 of prior year....................................................................................................... .............................324,756,526 .............................285,527,870
 2.    Cost of acquired:
       2.1 Actual cost at time of acquisition...................................................................................................................................... ...............................19,392,908 ...............................42,502,251
       2.2 Additional investment made after acquisition................................................................................................................... ...............................21,049,187 ...............................55,095,859
 3.    Capitalized deferred interest and other................................................................................................................................... ...............................................0 ...............................................0
 4.    Accrual of discount.................................................................................................................................................................. ......................................11,592 ......................................22,589
 5.    Unrealized valuation increase (decrease)............................................................................................................................... .................................8,172,036 ....................................878,188
 6.    Total gain (loss) on disposals.................................................................................................................................................. ...............................................0 .....................................(42,076)
 7.    Deduct amounts received on disposals................................................................................................................................... ...............................21,372,906 ...............................51,987,450
 8.    Deduct amortization of premium and depreciation.................................................................................................................. .................................4,121,301 .................................6,665,092
 9.    Total foreign exchange change in book/adjusted carrying value............................................................................................. ...............................................0 ...............................................0
 10.   Deduct current year's other than temporary impairment recognized....................................................................................... .................................1,078,354 ....................................575,614
 11.   Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5+6-7-8+9-10)......................................................... .............................346,809,688 .............................324,756,526
 12.   Deduct total nonadmitted amounts.......................................................................................................................................... ...............................................0 ...............................................0
 13.   Statement value at end of current period (Line 11 minus Line 12).......................................................................................... .............................346,809,688 .............................324,756,526




                                                                                              SCHEDULE D - VERIFICATION
                                                                                                                           Bonds and Stocks
                                                                                                                                                                                                                     1                                                    2
                                                                                                                                                                                                                                                             Prior Year Ended
                                                                                                                                                                                                              Year to Date                                      December 31
 1.    Book/adjusted carrying value of bonds and stocks, December 31 of prior year......................................................................                                       ..........................5,864,655,258            ..........................5,747,108,304
 2.    Cost of bonds and stocks acquired.........................................................................................................................................              .............................339,130,955           .............................913,186,623
 3.    Accrual of discount..................................................................................................................................................................   .................................6,902,496         .................................8,321,413
 4.    Unrealized valuation increase (decrease)...............................................................................................................................                 ...............................38,852,340          ...............................16,425,058
 5.    Total gain (loss) on disposals..................................................................................................................................................        .................................2,915,257         ...............................11,785,644
 6.    Deduct consideration for bonds and stocks disposed of.........................................................................................................                          .............................303,954,771           .............................819,451,436
 7.    Deduct amortization of premium..............................................................................................................................................            .................................4,756,718         .................................7,244,080
 8.    Total foreign exchange change in book/adjusted carrying value.............................................................................................                              .....................................(42,692)      .....................................(19,989)
 9.    Deduct current year's other than temporary impairment recognized.......................................................................................                                 ....................................799,900        .................................5,456,279
 10.   Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9)...............................................................                                          ..........................5,942,902,225            ..........................5,864,655,258
 11.   Deduct total nonadmitted amounts..........................................................................................................................................              ...............................................0   ...............................................0
 12.   Statement value at end of current period (Line 10 minus Line 11)..........................................................................................                              ..........................5,942,902,225            ..........................5,864,655,258



                                                                                                                                         QSI01
              Statement as of June 30, 2012 of the             National Life Insurance Company
                                                                                                                                                                                                                    SCHEDULE D - PART 1B
                                                                                                                                                                                 Showing the Acquisitions, Dispositions and Non-Trading Activity
                                                                                                                                                                           During the Current Quarter for all Bonds and Preferred Stock by Rating Class
                                                                                                                                                          1                                               2                                           3                                          4                                           5                                           6                                           7                                             8
                                                                                                                                                Book/Adjusted Carrying                              Acquisitions                                Dispositions                            Non-Trading Activity                      Book/Adjusted Carrying                       Book/Adjusted Carrying                      Book/Adjusted Carrying                       Book/Adjusted Carrying
                                                                                                                                                   Value Beginning                                     During                                      During                                     During                                  Value End of                                 Value End of                                Value End of                              Value December 31
                                                                                                                                                  of Current Quarter                               Current Quarter                             Current Quarter                            Current Quarter                              First Quarter                              Second Quarter                               Third Quarter                                  Prior Year

                  BONDS

         1.       Class 1 (a)................................................................................................................ .....................3,277,504,738 ........................455,617,901 ........................534,294,575 .........................(43,918,137) .....................3,277,504,738 .....................3,154,909,925 ..........................................0 .....................3,277,187,328


         2.       Class 2 (a)................................................................................................................ .....................1,843,005,118 ..........................82,052,312 ..........................36,145,389 ..........................30,030,940 .....................1,843,005,118 .....................1,918,942,981 ..........................................0 .....................1,791,755,317


         3.       Class 3 (a)................................................................................................................ ........................176,526,672 ............................8,112,500 ...............................296,051 ..........................12,823,710 ........................176,526,672 ........................197,166,832 ..........................................0 ........................198,715,003


         4.       Class 4 (a)................................................................................................................ ..........................55,136,134 ............................2,218,750 ..........................................0 ............................6,105,466 ..........................55,136,134 ..........................63,460,349 ..........................................0 ..........................58,826,268


         5.       Class 5 (a)................................................................................................................ ..........................21,177,820 ..........................................0 ...............................214,821 ...................................1,436 ..........................21,177,820 ..........................20,964,434 ..........................................0 ..........................21,744,326


         6.       Class 6 (a)................................................................................................................ ..........................10,302,160 ..........................................0 ..........................................1 ...........................(4,565,800) ..........................10,302,160 ............................5,736,360 ..........................................0 ............................9,180,617
QSI02




         7.       Total Bonds.............................................................................................................. .....................5,383,652,642 ........................548,001,463 ........................570,950,837 ...............................477,615 .....................5,383,652,642 .....................5,361,180,881 ..........................................0 .....................5,357,408,859


                  PREFERRED STOCK

         8.       Class 1..................................................................................................................... ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0


         9.       Class 2..................................................................................................................... ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0


         10. Class 3..................................................................................................................... ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0


         11. Class 4..................................................................................................................... ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0


         12. Class 5..................................................................................................................... ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0


         13. Class 6..................................................................................................................... ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0


         14. Total Preferred Stock............................................................................................... ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0 ..........................................0


         15. Total Bonds and Preferred Stock............................................................................. .....................5,383,652,642 ........................548,001,463 ........................570,950,837 ...............................477,615 .....................5,383,652,642 .....................5,361,180,881 ..........................................0 .....................5,357,408,859

        (a)       Book/Adjusted Carrying Value column for the end of the current reporting period includes the following amount of non-rated short-term and cash equivalent bonds by NAIC designation:
                  NAIC 1 $.....25,150,000; NAIC 2 $............0; NAIC 3 $............0; NAIC 4 $............0; NAIC 5 $............0; NAIC 6 $............0.
Statement as of June 30, 2012 of the             National Life Insurance Company
                                                                                                            SCHEDULE DA - PART 1
                                                                                                                            Short-Term Investments
                                                                                    1                                                 2                                           3                                           4                                          5
                                                                             Book/Adjusted                                                                                      Actual                               Interest Collected                      Paid for Accrued Interest
                                                                             Carrying Value                                    Par Value                                         Cost                                  Year To Date                                Year To Date

   9199999. Totals...................................... ............................25,150,000 ................XXX....................... ...........................25,150,000 .......................................872 ...........................................0




                                                                                            SCHEDULE DA - VERIFICATION
                                                                                                                      Short-Term Investments
                                                                                                                                                                                                                     1                                             2
                                                                                                                                                                                                                                                           Prior Year Ended
                                                                                                                                                                                                             Year to Date                                    December 31

 1. Book/adjusted carrying value, December 31 of prior year....................................................................................................... ...............................59,650,000 ...............................24,950,000

 2.     Cost of short-term investments acquired................................................................................................................................. .............................153,600,000 .............................482,800,000

 3.     Accrual of discount.................................................................................................................................................................. ...............................................0 ...............................................0

 4.     Unrealized valuation increase (decrease)............................................................................................................................... ...............................................0 ...............................................0

 5.     Total gain (loss) on disposals.................................................................................................................................................. ...............................................0 ...............................................0

 6.     Deduct consideration received on disposals........................................................................................................................... .............................188,100,000 .............................448,100,000

 7. Deduct amortization of premium.............................................................................................................................................. ...............................................0 ...............................................0

 8. Total foreign exchange change in book/adjusted carrying value............................................................................................. ...............................................0 ...............................................0

 9.     Deduct current year's other than temporary impairment recognized....................................................................................... ...............................................0 ...............................................0

 10. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9)............................................................... ...............................25,150,000 ...............................59,650,000

 11. Deduct total nonadmitted amounts.......................................................................................................................................... ...............................................0 ...............................................0

 12. Statement value at end of current period (Line 10 minus Line 11).......................................................................................... ...............................25,150,000 ...............................59,650,000




                                                                                                                                          QSI03
Statement as of June 30, 2012 of the               National Life Insurance Company
                                                                              SCHEDULE DB - PART A - VERIFICATION
                                                                                            Options, Caps, Floors, Collars, Swaps and Forwards
 1.     Book/adjusted carrying value, December 31, prior year (Line 9, prior year).........................................................................................................................................                                        6,050,262

 2.      Cost paid/(consideration received) on additions...................................................................................................................................................................................                        4,792,824

 3.     Unrealized valuation increase (decrease).............................................................................................................................................................................................                      2,257,033

 4.      Total gain (loss) on termination recognized..........................................................................................................................................................................................                             0

 5.     Considerations received (paid) on terminations....................................................................................................................................................................................                         2,247,469

 6.      Amortization..........................................................................................................................................................................................................................................            0

 7.     Adjustment to the book/adjusted carrying value of hedge item.............................................................................................................................................................                                          0

 8.      Total foreign exchange change in book/adjusted carrying value..........................................................................................................................................................                                           0

 9.     Book/adjusted carrying value at end of current period (Lines 1 + 2 + 3 + 4 - 5 + 6 + 7 + 8).................................................................................................................                                              10,852,649

 10. Deduct nonadmitted assets...................................................................................................................................................................................................................                          0

 11. Statement value at end of current period (Line 9 minus Line 10)..........................................................................................................................................................                                    10,852,649




                                                                              SCHEDULE DB - PART B - VERIFICATION
                                                                                                                                Futures Contracts
 1.      Book/adjusted carrying value, December 31, prior year.......................................................................................................................................................................                               138,213

 2.     Net cash deposits (Section 1, Broker Name/Net Cash Deposits Footnote)..........................................................................................................................................                                             (108,651)

 3.1 Change in variation margin on open contracts.........................................................................................................................................                                                      (13,137)

 3.2 Add:

                  Change in adjustment to basis of hedged item:

        3.21 Section 1, Column 17, current year to date minus................................                                                                      0

        3.22 Section 1, Column 17, prior year...........................................................                                                           0                                           0

                  Change in amount recognized:

        3.23 Section 1, Column 16, current year to date minus................................                                                               (7,300)

        3.24 Section 1, Column 16, prior year...........................................................                                                     5,837                                   (13,137)                                   (13,137)

 3.3 Subtotal (Line 3.1 minus Line 3.2).........................................................................................................................................................................................................                           0

 4.1 Variation margin on terminated contracts during the year...........................................................................                                                                4,485

 4.2 Less:

        4.21 Amount used to adjust basis of hedged item.........................................                                                             4,485

        4.22 Amount recognized................................................................................                                                     0                                    4,485

 4.3 Subtotal (Line 4.1 minus Line 4.2).........................................................................................................................................................................................................                           0

 5.     Dispositions gains (losses) on contracts terminated in prior year:

        5.1       Recognized.................................................................................................................................................................................................................................              0

        5.2       Used to adjust basis of hedged items.........................................................................................................................................................................................                            0

 6.      Book/adjusted carrying value at end of current period (Lines 1 + 2 + 3.3 - 4.3 - 5.1 - 5.2)...................................................................................................................                                              29,562

 7.     Deduct nonadmitted assets...................................................................................................................................................................................................................                       0

 8.     Statement value at end of current period (Line 6 minus Line 7)............................................................................................................................................................                                   29,562




                                                                                                                                               QSI04
        Statement as of June 30, 2012 of the   National Life Insurance Company
                                                                                                                               SCHEDULE DB - PART C - SECTION 1
                                                                                                                   Replication (Synthetic Asset) Transactions Open as of Current Statement Date
                                                     Replicationd (Synthetic Asset) Transactions                                                                                             Components of the Replication (Synthetic Asset) Transactions
            1                              2                    3              4                 5          6              7           8                Derivative Instruments Open                                                            Cash Instrument(s) Held
                                                              NAIC                                                                                    9                         10          11              12                           13                          14           15          16
                                                           Designation                                                                                                                                                                                          NAIC Desig.
                                                            or Other        Notional      Book/Adjusted     Fair        Effective   Maturity                              Book/Adjusted     Fair                                                                  or Other  Book/Adjusted    Fair
        Number                       Description           Description       Amount       Carrying Value   Value          Date       Date         Description             Carrying Value   Value         CUSIP                        Description               Description Carrying Value   Value
QSI05




                                                                                                                                               NONE
         Statement as of June 30, 2012 of the             National Life Insurance Company
                                                                                                                                                                                       SCHEDULE DB - PART C - SECTION 2
                                                                                                                                                                                             Reconciliation (Synthetic Asset) Transactions Open
                                                                                                                                 First Quarter                                                            Second Quarter                                                               Third Quarter                                                             Fourth Quarter                                                              Year-To-Date
                                                                                                                1                                 2                                         3                                4                                         5                                6                                         7                                8                                         9                                10
                                                                                                             Number                       Total Replication                              Number                      Total Replication                              Number                      Total Replication                              Number                      Total Replication                              Number                      Total Replication
                                                                                                                of                  (Synthetic Asset) Transactions                          of                 (Synthetic Asset) Transactions                          of                 (Synthetic Asset) Transactions                          of                 (Synthetic Asset) Transactions                          of                 (Synthetic Asset) Transactions
                                                                                                             Positions                    Statement Value                                Positions                   Statement Value                                Positions                   Statement Value                                Positions                   Statement Value                                Positions                   Statement Value

        1. Beginning Inventory................................................................ ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0



                                                                                                                                                                                                                         NONE
        2. Add: Opened or acquired transactions................................. ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0

        3. Add: Increases in replication asset
                statement value............................................................. ..........XXX.............. ............................................0 ..........XXX.............. ............................................0 ..........XXX.............. ............................................0 ..........XXX.............. ............................................0 ..........XXX.............. ............................................0

        4. Less: Closed or disposed of transactions............................... ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0

        5. Less: Positions disposed of for
                failing effectiveness criteria........................................... ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0

        6. Less: Decreases in replication (synthetic
                asset) transactions statement value.............................. ..........XXX.............. ............................................0 ..........XXX.............. ............................................0 ..........XXX.............. ............................................0 ..........XXX.............. ............................................0 ..........XXX.............. ............................................0

        7. Ending Inventory.................................................................... ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0 ............................0 ............................................0
QSI06
Statement as of June 30, 2012 of the              National Life Insurance Company
                                                                                               SCHEDULE DB - VERIFICATION
                             Verification of Book/Adjusted Carrying Value, Fair Value and Potential Exposure of all Open Derivative Contracts
                                                                                                                                                                                                                        Book/Adjusted Carrying Value Check
 1.     Part A, Section 1, Column 14...................................................................................................................................................................                               10,852,650

 2.     Part B, Section 1, Column 14...................................................................................................................................................................                                      29,563

 3.     Total (Line 1 plus Line 2)...........................................................................................................................................................................................................................   10,882,213

 4.      Part D, Column 5.....................................................................................................................................................................................                        16,566,968

 5.      Part D, Column 6.....................................................................................................................................................................................                         (5,684,755)

 6.      Total (Line 3 minus Line 4 minus Line 5)..................................................................................................................................................................................................                     0

                                                                                                                                                                                                                                           Fair Value Check
 7.     Part A, Section 1, Column 16...................................................................................................................................................................                               10,852,650

 8.     Part B, Section 1, Column 13...................................................................................................................................................................                                      29,563

 9.     Total (Line 7 plus Line 8)...........................................................................................................................................................................................................................   10,882,213

 10. Part D, Column 8.....................................................................................................................................................................................                            16,566,968

 11. Part D, Column 9.....................................................................................................................................................................................                             (5,684,755)

 12. Total (Line 9 minus Line 10 minus Line 11)..............................................................................................................................................................................................                           0

                                                                                                                                                                                                                                   Potential Exposure Check
 13. Part A, Section 1, Column 21...................................................................................................................................................................                                       273,303

 14. Part B, Section 1, Column 19...................................................................................................................................................................                                         17,500

 15. Part D, Column 11...................................................................................................................................................................................                                  290,803

 16. Total (Line 13 plus Line 14 minus Line 15)...............................................................................................................................................................................................                          0




                                                                                                                                           QSI07
Statement as of June 30, 2012 of the             National Life Insurance Company
                                                                                                   SCHEDULE E- VERIFICATION
                                                                                                                              Cash Equivalents
                                                                                                                                                                                                         1                                                       2
                                                                                                                                                                                                                                                         Prior Year Ended
                                                                                                                                                                                                 Year to Date                                              December 31


   1. Book/adjusted carrying value, December 31 of prior year..................................................................................... ..........................................................0 ..........................................55,998,427


   2. Cost of cash equivalents acquired......................................................................................................................... ........................................569,520,910 .....................................1,175,019,705


   3. Accrual of discount................................................................................................................................................. ..........................................................0 ..........................................................0


   4. Unrealized valuation increase (decrease).............................................................................................................. ..........................................................0 ..........................................................0


   5. Total gain (loss) on disposals................................................................................................................................. .....................................................(210) ...................................................6,058


   6. Deduct consideration received on disposals.......................................................................................................... ........................................569,520,700 .....................................1,231,024,189


   7. Deduct amortization of premium............................................................................................................................ ..........................................................0 ..........................................................0


   8. Total foreign exchange change in book/ adjusted carrying value.......................................................................... ..........................................................0 ..........................................................0


   9. Deduct current year's other than temporary impairment recognized...................................................................... ..........................................................0 ..........................................................0


 10. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9).............................................. ..........................................................0 ..........................................................0


 11. Deduct total nonadmitted amounts......................................................................................................................... ..........................................................0 ..........................................................0


 12. Statement value at end of current period (Line 10 minus Line 11)......................................................................... ..........................................................0 ..........................................................0




                                                                                                                                         QSI08
            Statement as of June 30, 2012 of the                              National Life Insurance Company
                                                                                                                                                                                                                                                                                    SCHEDULE A - PART 2
                                                                                                                                                                                                                    Showing all Real Estate ACQUIRED AND ADDITIONS MADE During the Current Quarter
                                                                             1                                                                                                               Location                                                      4                                                                                        5                                                                                                      6                                                  7                                                   8                                               9
                                                                                                                                                                                        2                                           3                                                                                                                                                                                                                                                                                                                                                                         Additional
                                                                                                                                                                                                                                                                                                                                                                                                                                                   Actual Cost                                                                                   Book/Adjusted Carrying                                      Investment
                                                                                                                                                                                                                                                       Date                                                                                                                                                                                         at Time of                                        Amount of                                       Value Less                                             Made After
                                                             Description of Property                                                                                                  City                                       State               Acquired                                                                           Name of Vendor                                                                                             Acquisition                                      Encumbrances                                    Encumbrances                                             Acquisition

       Acquired by Purchase
       04 Home Office............................................................................................................................ Montpelier.................................................. VT............... ..........Various Various................................................................................................................................................ ................................................0                           ................................................0   ................................................0   ..................................2,125,630
       0199999. Totals............................................................................................................................................................................................................................................... ............................................................................................................................................................ ................................................0   ................................................0   ................................................0   ..................................2,125,630
       0399999. Totals............................................................................................................................................................................................................................................... ............................................................................................................................................................ ................................................0   ................................................0   ................................................0   ..................................2,125,630
QE01




                                                                                                                                                                                                                                                                                   SCHEDULE A - PART 3
                                                                                                                                                                       Showing all Real Estate DISPOSED During the Quarter, Including Payments During the Final Year on "Sales Under Contract "
                                               1                                                                Location                                   4                                     5                                          6                         7                              8                            Change in Book/Adjusted Carrying Value Less Encumbrances                                                                             14                          15                        16                      17                        18                      19                    20
                                                                                                                2                           3                                                                                                                   Expended for                                                      9          10              11               12            13
                                                                                                                                                                                                                                                                 Additions,                                                                Current
                                                                                                                                                                                                                                                                 Permanent                Book/Adjusted                                     Year's                                         Total                                                               Book/Adjusted                                                                                                                   Gross Income               Taxes,
                                                                                                                                                                                                                                                               Improvements               Carrying Value                                Other Than         Current           Total        Foreign                                                                Carrying                                              Foreign                                                                     Earned                Repairs,
                                                                                                                                                                                                                                                                and Changes                    Less                        Current       Temporary         Year's         Change in      Exchange                                                               Value Less                  Amounts                   Exchange                 Realized                    Total                Less Interest              and
                                                                                                                                               Disposal                                                                                                              in                   Encumbrances                     Year's        Impairment       Change in        B./A.C.V.     Change in                                                             Encumbrances                 Received                 Gain (Loss)              Gain (Loss)               Gain (Loss)              Incurred on            Expenses
                               Description of Property                                                         City                      State   Date                              Name of Purchaser                                Actual Cost                Encumbrances                 Prior Year                   Depreciation   Recognized Encumbrances (11 - 9 - 10)            B./A.C.V.                                                              on Disposal                During Year               on Disposal              on Disposal               on Disposal            Encumbrances              Incurred




                                                                                                                                                                                                                                                                                                   NONE
           Statement as of June 30, 2012 of the                      National Life Insurance Company
                                                                                                                                                                                                                                                                   SCHEDULE B - PART 2
                                                                                                                                                                                             Showing all Mortgage Loans ACQUIRED AND ADDITIONS MADE During the Current Quarter
                                       1                                                                                                                          Location                                                                                                         4                      5                               6                                                            7                                                                           8                                                                               9
                                                                                                                                               2                                                                                               3                                                                                                                                                     Actual                                                                    Additional
                                                                                                                                                                                                                                                                                                                                                                                                      Cost                                                                    Investment                                                                    Value of
                                                                                                                                                                                                                                                                                Loan                  Date                           Rate of                                                        at Time                                                                   Made After                                                                    Land and
                              Loan Number                                                                                                    City                                                                                           State                               Type                 Acquired                        Interest                                                    of Acquisition                                                               Acquisition                                                                   Buildings

       Mortgages in Good Standing
       Commercial Mortgages - All Other
       0329709.......................................................... SAUGUS.................................................................................................................................         MA.......................................... ..................         05/24/2012....         ...............................4.250     ..............................................................10,600,000 .............................................................................0 ..............................................................19,800,000
       0329584/0500019........................................... CHARLOTTE..........................................................................................................................                    NC.......................................... ..................         08/01/2002....         ...............................8.000     .............................................................................0 ....................................................................15,419 ................................................................7,150,000
       0599999. Total - Mortgages in Good Standing - Commercial Mortgages - All Other..........................................................................................                                          ....................................................................    .......XXX.......      ................XXX.................     ..............................................................10,600,000 ....................................................................15,419 ..............................................................26,950,000
       0899999. Total - Mortgages in Good Standing..................................................................................................................................................                     ....................................................................    .......XXX.......      ................XXX.................     ..............................................................10,600,000 ....................................................................15,419 ..............................................................26,950,000
       3399999. Total Mortgages................................................................................................................................................................................          ....................................................................    .......XXX.......      ................XXX.................     ..............................................................10,600,000 ....................................................................15,419 ..............................................................26,950,000



                                                                                                                                                                                                                                                                          SCHEDULE B - PART 3
                                                                                                                                                                                                      Showing all Mortgage Loans DISPOSED, Transferred or Repaid During the Current Quarter
                        1                                                    Location                                          4                 5                       6                          7                                                                                           Change in Book Value/Recorded Investment                                                                                                     14                                     15                               16                              17                               18
                                                                        2                                     3                                                                               Book Value/                                  8                                9                            10                  11                                               12                             13                          Book Value/
                                                                                                                                                                                               Recorded                                                                                            Current Year's                                                                                           Total                         Recorded
                                                                                                                                                                                              Investment                           Unrealized                        Current                        Other Than          Capitalized                                      Total                             Foreign                       Investment                                                             Foreign
                                                                                                                                                                                               Excluding                            Valuation                        Year's                         Temporary             Deferred                                     Change in                          Exchange                        Excluding                                                            Exchange                        Realized                           Total
                                                                                                                            Loan            Date                   Disposal                 Accrued Interest                        Increase                      (Amortization)/                   Impairment            Interest                                     Book Value                        Change in                     Accrued Interest                                                       Gain (Loss)                     Gain (Loss)                      Gain (Loss)
                Loan Number                                           City                                 State            Type           Acquired                  Date                      Prior Year                          (Decrease)                       Accretion                       Recognized           and Other                                    (8+9-10+11)                        Book Value                      on Disposal                         Consideration                    on Disposal                     on Disposal                      on Disposal

       Mortgages Closed by Repayment
QE02




       0329467........................... CARNEY...........................................           MD.............. ......... 03/20/1997.... 04/04/2012....                          ........................92,361      ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ........................23,340      ........................23,340   ............................0   ............................0   ................................0
       0329470........................... TULSA..............................................         OK.............. ......... 04/25/1997.... 06/04/2012....                          ...................3,035,103        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ...................2,957,025        ...................2,957,025     ............................0   ............................0   ................................0
       0329578........................... JESSUP............................................          MD.............. ......... 05/09/2002.... 05/22/2012....                          ...................4,884,478        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ...................4,814,712        ...................4,814,712     ............................0   ............................0   ................................0
       0199999. Total - Mortgages Closed by Repayment.....................                            ...............................................................................   ...................8,011,942        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ...................7,795,077        ...................7,795,077     ............................0   ............................0   ................................0
       Mortgages With Partial Repayments
       0329379........................... HOLLYWOOD...................................                FL...............     .........   03/29/1993....         .....................    ...................2,487,465        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................74,286   ............................0   ............................0   ................................0
       0329419........................... PITTSBURGH...................................               PA...............     .........   05/08/1995....         .....................    ...................1,138,576        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................71,084   ............................0   ............................0   ................................0
       0329421........................... CHITTENANGO................................                 NY..............      .........   05/31/1995....         .....................    ...................1,673,183        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................33,895   ............................0   ............................0   ................................0
       0329470........................... TULSA..............................................         OK..............      .........   04/25/1997....         .....................    ...................3,035,103        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................31,553   ............................0   ............................0   ................................0
       0329481........................... EUGENE..........................................            OR..............      .........   06/26/1997....         .....................    ...................8,257,222        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ......................124,481    ............................0   ............................0   ................................0
       0329485........................... CHAPEL HILL...................................              NC..............      .........   09/18/1997....         .....................    ...................3,373,230        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................49,941   ............................0   ............................0   ................................0
       0329487........................... TULSA..............................................         OK..............      .........   05/13/1998....         .....................    ...................6,414,010        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................68,111   ............................0   ............................0   ................................0
       0329492........................... PHOENIX.........................................            AZ...............     .........   01/30/1998....         .....................    ...................2,412,009        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................78,511   ............................0   ............................0   ................................0
       0329494........................... PORTLAND......................................              OR..............      .........   04/30/1998....         .....................    ...................1,013,259        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ......................174,324    ............................0   ............................0   ................................0
       0329501........................... ISSAQUAH.......................................             WA..............      .........   08/27/1998....         .....................    ...................6,871,743        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................96,559   ............................0   ............................0   ................................0
       0329503........................... WEST DES MOINES........................                     IA................    .........   09/15/1999....         .....................    .................11,945,782         ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................82,199   ............................0   ............................0   ................................0
       0329515........................... OKLAHOMA CITY............................                   OK..............      .........   11/06/1998....         .....................    ...................1,613,377        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................45,797   ............................0   ............................0   ................................0
       0329529........................... SPOKANE........................................             WA..............      .........   08/04/1999....         .....................    ...................3,367,259        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................84,433   ............................0   ............................0   ................................0
       0329534........................... WEST CHICAGO..............................                  IL................    .........   05/18/1999....         .....................    ...................2,947,184        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................55,098   ............................0   ............................0   ................................0
       0329535........................... PINEVILLE........................................           NC..............      .........   05/11/1999....         .....................    ...................2,120,951        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................15,644   ............................0   ............................0   ................................0
       0329536........................... PIKESVILLE.....................................             MD..............      .........   05/26/1999....         .....................    ...................2,178,252        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................56,460   ............................0   ............................0   ................................0
       0329538........................... CHESTERTON.................................                 IN................    .........   09/03/1999....         .....................    ...................2,279,173        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................37,428   ............................0   ............................0   ................................0
       0329544........................... PONTIAC..........................................           IL................    .........   01/27/2000....         .....................    ...................1,911,356        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................28,261   ............................0   ............................0   ................................0
       0329546........................... LUDINGTON.....................................              MI...............     .........   02/28/2000....         .....................    ...................2,490,784        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................30,942   ............................0   ............................0   ................................0
       0329555........................... FRESNO...........................................           CA..............      .........   10/02/2000....         .....................    ...................6,299,920        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................60,816   ............................0   ............................0   ................................0
       0329557........................... SALINA.............................................         NY..............      .........   04/26/2001....         .....................    ...................1,647,944        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................79,014   ............................0   ............................0   ................................0
       0329564........................... CHARLOTTE....................................               NC..............      .........   02/08/2001....         .....................    ...................3,619,780        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................50,240   ............................0   ............................0   ................................0
       0329568........................... ONTARIO.........................................            CA..............      .........   01/23/2002....         .....................    ...................6,091,909        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................53,217   ............................0   ............................0   ................................0
       0329570........................... SOUTHAVEN...................................                MS..............      .........   02/21/2002....         .....................    ...................3,158,797        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................27,334   ............................0   ............................0   ................................0
       0329575........................... YORKVILLE......................................             IL................    .........   04/03/2002....         .....................    ...................3,490,224        ............................0     ............................0      ............................0   ............................0   ............................0     ............................0   ................................0   ........................28,045   ............................0   ............................0   ................................0
             Statement as of June 30, 2012 of the                  National Life Insurance Company
                                                                                                                                                                                                                                                        SCHEDULE B - PART 3
                                                                                                                                                                                          Showing all Mortgage Loans DISPOSED, Transferred or Repaid During the Current Quarter
                         1                                                 Location                                        4              5                   6                          7                                                                                  Change in Book Value/Recorded Investment                                                                                                   14                                     15                               16                              17                               18
                                                                      2                                    3                                                                       Book Value/                            8                               9                          10                  11                                               12                           13                          Book Value/
                                                                                                                                                                                    Recorded                                                                                   Current Year's                                                                                         Total                         Recorded
                                                                                                                                                                                   Investment                     Unrealized                       Current                      Other Than          Capitalized                                      Total                           Foreign                       Investment                                                             Foreign
                                                                                                                                                                                    Excluding                      Valuation                       Year's                       Temporary             Deferred                                     Change in                        Exchange                        Excluding                                                            Exchange                        Realized                           Total
                                                                                                                        Loan           Date              Disposal                Accrued Interest                  Increase                     (Amortization)/                 Impairment            Interest                                     Book Value                      Change in                     Accrued Interest                                                       Gain (Loss)                     Gain (Loss)                      Gain (Loss)
                 Loan Number                                        City                                State           Type          Acquired             Date                     Prior Year                    (Decrease)                      Accretion                     Recognized           and Other                                    (8+9-10+11)                      Book Value                      on Disposal                         Consideration                    on Disposal                     on Disposal                      on Disposal

         0329578...........................   JESSUP............................................   MD..............     .........   05/09/2002....   .....................   ...................4,884,478   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................28,176   ............................0   ............................0   ................................0
         0329579...........................   GREENVILLE...................................        SC..............     .........   07/22/2002....   .....................   ...................4,876,809   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................24,251   ............................0   ............................0   ................................0
         0329585...........................   STREAMWOOD...............................            IL................   .........   05/23/2002....   .....................   ...................4,488,841   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................34,371   ............................0   ............................0   ................................0
         0329590...........................   SCOTTSDALE..................................         AZ...............    .........   09/17/2002....   .....................   ...................5,236,973   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................78,029   ............................0   ............................0   ................................0
         0329591...........................   DAVIDSON.......................................      NC..............     .........   09/12/2003....   .....................   ...................2,217,391   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................21,339   ............................0   ............................0   ................................0
         0329593...........................   KIRKLAND........................................     WA..............     .........   11/27/2002....   .....................   ...................3,307,356   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................26,278   ............................0   ............................0   ................................0
         0329594...........................   CHARLOTTE....................................        NC..............     .........   12/18/2002....   .....................   ...................8,129,524   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................48,691   ............................0   ............................0   ................................0
         0329595...........................   MILL CREEK....................................       WA..............     .........   04/01/2003....   .....................   ...................3,257,008   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................26,498   ............................0   ............................0   ................................0
         0329598...........................   HANFORD........................................      CA..............     .........   10/31/2003....   .....................   ...................6,150,759   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................48,006   ............................0   ............................0   ................................0
         0329600...........................   SAN DIEGO......................................      CA..............     .........   06/12/2003....   .....................   ...................8,661,943   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................59,474   ............................0   ............................0   ................................0
         0329601...........................   CINCINNATI.....................................      OH..............     .........   09/12/2003....   .....................   ...................5,626,713   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................50,127   ............................0   ............................0   ................................0
         0329602...........................   HICKORY.........................................     NC..............     .........   10/28/2003....   .....................   .................11,088,928    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................80,364   ............................0   ............................0   ................................0
         0329604...........................   PHOENIX.........................................     AZ...............    .........   08/14/2003....   .....................   ...................5,791,711   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................51,376   ............................0   ............................0   ................................0
         0329608...........................   HAMPTON........................................      VA...............    .........   02/02/2004....   .....................   ...................3,102,560   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................39,391   ............................0   ............................0   ................................0
         0329609...........................   GREENSBORO................................           NC..............     .........   11/26/2003....   .....................   ...................9,733,217   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................51,776   ............................0   ............................0   ................................0
         0329610...........................   CHARLOTTE....................................        NC..............     .........   04/02/2004....   .....................   ...................7,223,629   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................41,186   ............................0   ............................0   ................................0
         0329611...........................   HOUSTON........................................      TX...............    .........   02/02/2004....   .....................   ...................6,659,839   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................34,280   ............................0   ............................0   ................................0
QE02.1




         0329613...........................   CHARLOTTE....................................        NC..............     .........   07/15/2004....   .....................   ...................5,386,068   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................34,731   ............................0   ............................0   ................................0
         0329614...........................   CHARLOTTE....................................        NC..............     .........   06/28/2004....   .....................   ...................5,372,703   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................31,269   ............................0   ............................0   ................................0
         0329615...........................   CHARLOTTE....................................        NC..............     .........   06/28/2004....   .....................   ...................5,194,356   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................30,231   ............................0   ............................0   ................................0
         0329623...........................   COLUMBIA.......................................      MD..............     .........   08/17/2004....   .....................   ...................6,323,734   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................50,809   ............................0   ............................0   ................................0
         0329626...........................   LOUISBURG.....................................       NC..............     .........   09/24/2004....   .....................   ...................3,367,311   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................25,943   ............................0   ............................0   ................................0
         0329627...........................   CAPE CANAVERAL..........................             FL...............    .........   08/20/2004....   .....................   ...................7,285,554   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................96,653   ............................0   ............................0   ................................0
         0329628...........................   PUYALLUP.......................................      WA..............     .........   11/16/2004....   .....................   ...................1,984,286   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................23,403   ............................0   ............................0   ................................0
         0329630...........................   PLYMOUTH......................................       MN..............     .........   11/10/2004....   .....................   ...................9,301,675   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................73,642   ............................0   ............................0   ................................0
         0329632...........................   CHARLOTTE....................................        NC..............     .........   04/28/2005....   .....................   ...................4,729,410   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................29,075   ............................0   ............................0   ................................0
         0329633...........................   MURRIETA.......................................      CA..............     .........   08/31/2005....   .....................   .................11,185,815    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................74,123   ............................0   ............................0   ................................0
         0329636...........................   WOODRIDGE...................................         IL................   .........   05/13/2005....   .....................   ...................6,752,608   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................56,278   ............................0   ............................0   ................................0
         0329638...........................   PLYMOUTH......................................       MN..............     .........   08/16/2005....   .....................   ...................6,128,065   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................33,364   ............................0   ............................0   ................................0
         0329640...........................   GAINESVILLE...................................       VA...............    .........   02/02/2006....   .....................   ...................5,500,857   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................25,918   ............................0   ............................0   ................................0
         0329641...........................   TUSTIN............................................   CA..............     .........   10/12/2005....   .....................   ...................8,329,321   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................42,961   ............................0   ............................0   ................................0
         0329644...........................   VALDOSTA.......................................      GA..............     .........   10/07/2005....   .....................   ...................3,781,350   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................28,085   ............................0   ............................0   ................................0
         0329645...........................   WINSTON-SALEM............................            NC..............     .........   12/05/2005....   .....................   ...................1,476,199   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................17,551   ............................0   ............................0   ................................0
         0329647...........................   STATESVILLE..................................        NC..............     .........   02/13/2006....   .....................   ...................1,714,559   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................20,034   ............................0   ............................0   ................................0
         0329649...........................   CINCINNATI.....................................      OH..............     .........   03/15/2006....   .....................   ...................3,544,830   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................24,356   ............................0   ............................0   ................................0
         0329650...........................   ROSEBURG.....................................        OR..............     .........   01/27/2006....   .....................   .................12,227,354    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................50,108   ............................0   ............................0   ................................0
         0329651...........................   SAN ANTONIO.................................         TX...............    .........   04/27/2006....   .....................   ...................2,231,277   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................25,159   ............................0   ............................0   ................................0
         0329653...........................   RICHMOND......................................       VA...............    .........   04/27/2006....   .....................   ...................5,912,221   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................65,528   ............................0   ............................0   ................................0
         0329654...........................   SCOTTSDALE..................................         AZ...............    .........   06/14/2006....   .....................   ...................6,264,736   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................40,069   ............................0   ............................0   ................................0
         0329656...........................   ST PAUL...........................................   MN..............     .........   06/14/2006....   .....................   ...................9,140,525   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................45,091   ............................0   ............................0   ................................0
         0329657...........................   BOULDER........................................      CO..............     .........   05/18/2006....   .....................   ...................4,394,793   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................16,396   ............................0   ............................0   ................................0
         0329658...........................   TIMONIUM.......................................      MD..............     .........   07/10/2006....   .....................   ...................4,185,414   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................32,152   ............................0   ............................0   ................................0
         0329659...........................   HOUSTON........................................      TX...............    .........   08/21/2006....   .....................   ...................4,946,732   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................31,803   ............................0   ............................0   ................................0
         0329660...........................   AUSTIN............................................   TX...............    .........   10/16/2006....   .....................   ...................2,306,914   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................20,985   ............................0   ............................0   ................................0
         0329662...........................   CINCINNATI.....................................      OH..............     .........   08/29/2006....   .....................   ...................2,071,597   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................13,166   ............................0   ............................0   ................................0
         0329663...........................   ASHEVILLE......................................      NC..............     .........   09/21/2006....   .....................   ...................5,373,309   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................22,027   ............................0   ............................0   ................................0
             Statement as of June 30, 2012 of the                National Life Insurance Company
                                                                                                                                                                                                                                                              SCHEDULE B - PART 3
                                                                                                                                                                                                Showing all Mortgage Loans DISPOSED, Transferred or Repaid During the Current Quarter
                         1                                               Location                                        4                 5                       6                          7                                                                                   Change in Book Value/Recorded Investment                                                                                                   14                                      15                               16                              17                               18
                                                                    2                                   3                                                                               Book Value/                             8                               9                          10                  11                                               12                           13                          Book Value/
                                                                                                                                                                                         Recorded                                                                                    Current Year's                                                                                         Total                         Recorded
                                                                                                                                                                                        Investment                      Unrealized                       Current                      Other Than          Capitalized                                      Total                           Foreign                       Investment                                                              Foreign
                                                                                                                                                                                         Excluding                       Valuation                       Year's                       Temporary             Deferred                                     Change in                        Exchange                        Excluding                                                             Exchange                        Realized                           Total
                                                                                                                      Loan            Date                   Disposal                 Accrued Interest                   Increase                     (Amortization)/                 Impairment            Interest                                     Book Value                      Change in                     Accrued Interest                                                        Gain (Loss)                     Gain (Loss)                      Gain (Loss)
                 Loan Number                                      City                               State            Type           Acquired                  Date                      Prior Year                     (Decrease)                      Accretion                     Recognized           and Other                                    (8+9-10+11)                      Book Value                      on Disposal                         Consideration                     on Disposal                     on Disposal                      on Disposal

         0329664........................... DENVER...........................................   CO.............. ......... 09/14/2006.... .....................                   .................10,288,259     ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................35,791    ............................0   ............................0   ................................0
         0329665........................... AUSTELL..........................................   GA.............. ......... 09/21/2006.... .....................                   ...................9,019,184    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................57,224    ............................0   ............................0   ................................0
         0329668........................... BUTLER...........................................   WI............... ......... 09/11/2006.... .....................                  ...................9,362,317    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................37,455    ............................0   ............................0   ................................0
         0329669........................... WISCONSIN RAPIDS.......................             WI............... ......... 11/22/2006.... .....................                  ...................7,555,101    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................38,362    ............................0   ............................0   ................................0
         0329672........................... CHARLOTTE....................................       NC.............. ......... 12/18/2006.... .....................                   ......................991,383   ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ..........................6,520   ............................0   ............................0   ................................0
         0329673........................... PINE TOWNSHIP.............................          PA............... ......... 12/13/2006.... .....................                  ...................5,215,647    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................20,870    ............................0   ............................0   ................................0
         0329674........................... NEW BEDFORD...............................          MA.............. ......... 02/02/2007.... .....................                   ...................5,105,667    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................21,593    ............................0   ............................0   ................................0
         0329675........................... WYOMING........................................     MI............... ......... 04/16/2007.... .....................                  ...................4,444,230    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................44,216    ............................0   ............................0   ................................0
         0329676........................... CHARLOTTE....................................       NC.............. ......... 05/22/2007.... .....................                   .................10,784,033     ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................53,856    ............................0   ............................0   ................................0
         0329678........................... MACON............................................   GA.............. ......... 04/26/2007.... .....................                   ...................1,428,562    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................17,424    ............................0   ............................0   ................................0
         0329679........................... WEST FALMOUTH...........................            ME.............. ......... 03/29/2007.... .....................                   ...................2,180,948    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ..........................7,125   ............................0   ............................0   ................................0
         0329680........................... SAN ANTONIO.................................        TX............... ......... 08/02/2007.... .....................                  .................10,819,741     ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................35,982    ............................0   ............................0   ................................0
         0329681........................... RIVERSIDE......................................     CA.............. ......... 05/22/2007.... .....................                   ...................6,817,103    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................32,686    ............................0   ............................0   ................................0
         0329682........................... N OLMSTEAD..................................        OH.............. ......... 07/12/2007.... .....................                   ...................2,695,003    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................16,487    ............................0   ............................0   ................................0
         0329684........................... COPPELL.........................................    TX............... ......... 06/04/2007.... .....................                  ...................1,450,383    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ..........................6,035   ............................0   ............................0   ................................0
         0329685........................... CINCINNATI.....................................     OH.............. ......... 07/19/2007.... .....................                   ...................1,284,260    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ..........................7,800   ............................0   ............................0   ................................0
         0329686........................... SOUTHFIELD...................................       MI............... ......... 07/31/2007.... .....................                  ...................1,788,559    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ..........................7,470   ............................0   ............................0   ................................0
QE02.2




         0329687........................... FRANKFORT....................................       KY............... ......... 06/27/2007.... .....................                  ...................3,148,997    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................30,050    ............................0   ............................0   ................................0
         0329688........................... SCOTTSDALE..................................        AZ............... ......... 02/05/2008.... .....................                  ...................7,567,532    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................69,870    ............................0   ............................0   ................................0
         0329689........................... MORENO VALLEY...........................            CA.............. ......... 10/10/2007.... .....................                   .................13,584,569     ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................54,364    ............................0   ............................0   ................................0
         0329690........................... UNION CITY.....................................     TN............... ......... 07/27/2007.... .....................                  ...................3,378,106    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................31,965    ............................0   ............................0   ................................0
         0329693........................... SILVERDALE....................................      WA.............. ......... 01/04/2008.... .....................                   ...................2,834,222    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................10,451    ............................0   ............................0   ................................0
         0329694........................... BLOOMFIELD HILLS........................            MI............... ......... 11/05/2007.... .....................                  ...................2,840,012    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................14,707    ............................0   ............................0   ................................0
         0329695........................... FLORENCE......................................      KY............... ......... 12/12/2007.... .....................                  ...................1,334,444    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ..........................4,873   ............................0   ............................0   ................................0
         0329696........................... BOCA RATON..................................        FL............... ......... 12/05/2007.... .....................                  ...................8,027,883    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................30,332    ............................0   ............................0   ................................0
         0329698........................... CINCINNATI.....................................     OH.............. ......... 04/09/2008.... .....................                   ...................3,828,786    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................14,230    ............................0   ............................0   ................................0
         0329699........................... DAYTON...........................................   OH.............. ......... 06/20/2008.... .....................                   ...................2,427,152    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................13,123    ............................0   ............................0   ................................0
         0329700........................... FOREST PARK.................................        OH.............. ......... 06/27/2008.... .....................                   ...................8,326,420    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................31,093    ............................0   ............................0   ................................0
         0329701........................... RENTON..........................................    WA.............. ......... 06/02/2010.... .....................                   .................14,524,155     ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................84,478    ............................0   ............................0   ................................0
         0329702........................... EDEN PRAIRIE................................        MN.............. ......... 06/22/2010.... .....................                   ...................7,615,040    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................35,003    ............................0   ............................0   ................................0
         0329703........................... OVERLAND......................................      MO.............. ......... 06/22/2010.... .....................                   ...................7,810,298    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................35,900    ............................0   ............................0   ................................0
         0329704........................... TORRANCE......................................      CA.............. ......... 06/22/2010.... .....................                   ...................5,613,652    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................25,803    ............................0   ............................0   ................................0
         0329705........................... CARLSBAD......................................      CA.............. ......... 06/22/2010.... .....................                   ...................5,369,580    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................24,681    ............................0   ............................0   ................................0
         0329706........................... GRESHAM........................................     OR.............. ......... 07/15/2010.... .....................                   ...................9,979,479    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................29,257    ............................0   ............................0   ................................0
         0329708........................... WESTBURY.....................................       NY.............. ......... 12/01/2011.... .....................                   .................18,000,000     ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................75,457    ............................0   ............................0   ................................0
         0500019........................... CHARLOTTE....................................       NC.............. ......... 08/01/2002.... .....................                   ...................3,871,938    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................45,797    ............................0   ............................0   ................................0
         0920003........................... METAIRIE.........................................   LA............... ......... 10/24/1997.... .....................                  ...................1,415,034    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................33,029    ............................0   ............................0   ................................0
         329431A........................... DES PLAINES..................................       IL................ ......... 08/16/1995.... .....................                 ...................3,175,989    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................19,497    ............................0   ............................0   ................................0
         329431B........................... CHICAGO.........................................    IL................ ......... 01/19/2005.... .....................                 ...................1,186,548    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ..........................9,600   ............................0   ............................0   ................................0
         329477D.......................... EL PASO..........................................    TX............... ......... 06/10/2007.... .....................                  ...................4,581,776    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................43,955    ............................0   ............................0   ................................0
         329507A........................... NORTHBROOK................................          IL................ ......... 09/14/1998.... .....................                 ...................3,083,922    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................17,930    ............................0   ............................0   ................................0
         329507B........................... NORTHBROOK................................          IL................ ......... 06/20/2005.... .....................                 ...................1,294,454    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ..........................9,224   ............................0   ............................0   ................................0
         329510A........................... NORTHBROOK................................          IL................ ......... 09/14/1998.... .....................                 ...................3,249,762    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................12,994    ............................0   ............................0   ................................0
         329510B........................... NORTHBROOK................................          IL................ ......... 06/20/2005.... .....................                 ...................1,303,143    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ..........................6,245   ............................0   ............................0   ................................0
         329606A........................... CHARLOTTE....................................       NC.............. ......... 10/22/2003.... .....................                   ...................9,423,522    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................65,801    ............................0   ............................0   ................................0
         329606B........................... CHARLOTTE....................................       NC.............. ......... 09/04/2007.... .....................                   ...................2,431,900    ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ........................11,508    ............................0   ............................0   ................................0
         0299999. Total - Mortgages With Partial Repayments.................                    ...............................................................................   ...............601,148,439      ............................0   ............................0    ............................0   ............................0   ............................0   ............................0   ................................0   ...................4,700,309      ............................0   ............................0   ................................0
             Statement as of June 30, 2012 of the                 National Life Insurance Company
                                                                                                                                                                                                                                             SCHEDULE B - PART 3
                                                                                                                                                                                   Showing all Mortgage Loans DISPOSED, Transferred or Repaid During the Current Quarter
                         1                                                Location                                   4              5                    6                       7                                                                          Change in Book Value/Recorded Investment                                                                                      14                                  15                            16                           17                             18
                                                                     2                                 3                                                                   Book Value/                            8                           9                      10                  11                                        12                        13                       Book Value/
                                                                                                                                                                            Recorded                                                                           Current Year's                                                                               Total                      Recorded
                                                                                                                                                                           Investment                      Unrealized                   Current                 Other Than          Capitalized                                Total                       Foreign                    Investment                                                        Foreign
                                                                                                                                                                            Excluding                       Valuation                   Year's                  Temporary             Deferred                               Change in                    Exchange                     Excluding                                                       Exchange                     Realized                        Total
                                                                                                                   Loan         Date                Disposal             Accrued Interest                   Increase                 (Amortization)/            Impairment            Interest                               Book Value                  Change in                  Accrued Interest                                                  Gain (Loss)                  Gain (Loss)                   Gain (Loss)
                 Loan Number                                       City                              State         Type        Acquired               Date                  Prior Year                     (Decrease)                  Accretion                Recognized           and Other                              (8+9-10+11)                  Book Value                   on Disposal                     Consideration                   on Disposal                  on Disposal                   on Disposal

         Mortgages Disposed
         0329584/0500019............ CHARLOTTE.................................... NC.............. ......... 08/01/2002.... 06/26/2012.... ...................3,871,938 ............................0 ............................0 ............................0 ...................15,419 ...................15,419 ............................0 ...................3,750,875 ...................3,750,875 ............................0 ............................0                                ................................0
         0399999. Total - Mortgages Disposed......................................... ............................................................................... ...................3,871,938 ............................0 ............................0 ............................0 ...................15,419 ...................15,419 ............................0 ...................3,750,875 ...................3,750,875 ............................0 ............................0      ................................0
         0599999. Total Mortgages........................................................... ............................................................................... ...............613,032,319 ............................0 ............................0 ............................0 ...................15,419 ...................15,419 ............................0 .................11,545,952 .................16,246,261 ............................0 ............................0   ................................0
QE02.3
            Statement as of June 30, 2012 of the                             National Life Insurance Company
                                                                                                                                                                                                                                                                                SCHEDULE BA - PART 2
                                                                                                                                                                                            Showing Other Long-Term Invested Assets ACQUIRED AND ADDITIONS MADE During the Current Quarter
                     1                                                                                       2                                                                                                         Location                                                                                                    5                                                                           6                      7                      8                         9                                      10                                       11                                 12                                 13
                                                                                                                                                                                                                   3                                     4                                                                                                                                                                                                                           Actual                                Additional                                                                Commitment
                                                                                                                                                                                                                                                                                                                           Name of                                                                         NAIC                   Date                  Type                        Cost at                               Investment                                                                      for                        Percentage
               CUSIP                                                                                   Name or                                                                                                                                                                                                            Vendor or                                                                        Desig-               Originally               and                        Time of                               Made After                           Amount of                               Additional                        of
            Identification                                                                            Description                                                                                                City                                 State                                                             General Partner                                                                    nation               Acquired               Strategy                    Acquisition                            Acquisition                        Encumbrances                             Investment                     Ownership

       Joint Venture or Partnership Interests That Have Underlying Characteristics of Common Stocks - Unaffiliated
          713300 00 2 Avista Capital Partners.............................................................................................................. Wilmington ........................................ DE.........                                         Avista Capital Partners............................................................................................. ................. 04/28/2006.... ..............0                                 ..................................0    .........................53,685       ..................................0   ..................................0    ................0.7
          715200 00 2 Avista Capital Partners II........................................................................................................... Wilmington ........................................ DE.........                                         Avista Capital Partners II.......................................................................................... ................. 12/31/2008.... ..............0                                 ..................................0    .........................98,946       ..................................0   ....................1,371,891          ................0.8
          717600 00 1 Avista Capital Parnters III LP..................................................................................................... Wilmington ........................................ DE.........                                           Avista Capital Parnters III LP................................................................................... ................. 06/26/2012.... ..............0                                    ....................3,829,653          ..................................0   ..................................0   ....................6,170,347          ................0.0
          714800 00 0 Banc Fund VIII.......................................................................................................................... Chicago ............................................. IL...........                                  Banc Fund VIII........................................................................................................ ................. 04/30/2008.... ..............0                               ..................................0    .......................900,000        ..................................0   ....................5,200,000          ................1.5
          711400 00 2 B IV Capital Partners................................................................................................................. Wilmington ........................................ DE.........                                        B IV Capital Partners................................................................................................ ................. 12/13/2002.... ..............0                                ..................................0    .......................386,000        ..................................0   .......................487,217         ................0.0
          716500 00 4 Centerbridge Capital Partners................................................................................................... Wilmington ........................................ DE.........                                              Centerbridge Capital Partners.................................................................................. ................. 05/09/2011.... ..............0                                      ..................................0    ....................1,531,441         ..................................0   ....................6,942,665          ................0.2
          716900 00 6 CrossHarbor Institutional II........................................................................................................ Wilmington ........................................ DE.........                                          CrossHarbor Institutional II....................................................................................... ................. 10/07/2011.... ..............0                                  ..................................0    ....................1,253,816         ..................................0   ....................3,609,132          ................1.2
          709800 00 7 DLJ Investment Partners II........................................................................................................ Wilmington ........................................ DE.........                                            DLJ Investment Partners II....................................................................................... ................. 11/23/1999.... ..............0                                    ..................................0    ...........................6,714      ..................................0   ..................................0    ................0.5
          710300 00 5 DLJ Merchant Banking III.......................................................................................................... Wilmington ........................................ DE.........                                            DLJ Merchant Banking III......................................................................................... ................. 09/29/2000.... ..............0                                    ..................................0    .........................77,844       ..................................0   ..................................0    ................0.7
          716200 00 1 Energy Fund XV........................................................................................................................ Wilmington ........................................ DE.........                                        Energy Fund XV....................................................................................................... ................. 03/07/2011.... ..............0                                ..................................0    ....................1,317,613         ..................................0   ....................5,080,142          ................0.2
          714100 00 5 EnerTech Capital Partners III.................................................................................................... Wilmington ........................................ DE.........                                             EnerTech Capital Partners III................................................................................... ................. 11/06/2007.... ..............0                                     ..................................0    .......................136,887        ..................................0   .......................655,356         ................3.5
          712400 00 1 GarMark Partners II................................................................................................................... Wilmington ........................................ DE.........                                        GarMark Partners II.................................................................................................. ................. 07/18/2005.... ..............0                                ..................................0    .......................565,015        ..................................0   ..................................0    ................3.0
          709100 00 2 Green Mountain Partners II....................................................................................................... Wilmington ........................................ DE.........                                             Green Mountain Partners II...................................................................................... ................. 07/24/1998.... ..............0                                     ..................................0    .........................24,596       ..................................0   ..................................0    ................1.7
          714300 00 1 GS Mezzanine Partners V......................................................................................................... George Town...................................... GC.........                                                GS Mezzanine Partners V........................................................................................ ................. 11/30/2007.... ..............0                                      ..................................0    .......................194,328        ..................................0   ....................4,333,389          ................0.2
          715700 00 1 Littlejohn Fund IV....................................................................................................................... Wilmington ........................................ DE.........                                     Littlejohn Fund IV..................................................................................................... ................. 06/09/2010.... ..............0                              ..................................0    .........................85,026       ..................................0   ....................4,937,841          ................1.7
          713500 00 7 LS Power Equity Partners II....................................................................................................... Wilmington ........................................ DE.........                                            LS Power Equity Partners II..................................................................................... ................. 02/02/2007.... ..............0                                     ..................................0    .......................100,000        ..................................0   .......................972,091         ................0.6
          710600 00 8 MD Sass Corporate Part III........................................................................................................ Wilmington ........................................ DE.........                                            MD Sass Corporate Part III...................................................................................... ................. 03/23/2001.... ..............0                                     ..................................0    .......................550,984        ..................................0   ..................................0    ................3.0
          717400 00 6 MSouth Equity Partners II LP.................................................................................................... Wilmington ........................................ DE.........                                              MSouth Equity Partners II LP................................................................................... ................. 04/30/2008.... ..............0                                      ..................................0    .......................201,248        ..................................0   .......................612,466         ................1.9
          714200 00 3 Northstar Mezzanine Partners V................................................................................................ Wilmington ........................................ DE.........                                                Northstar Mezzanine Partners V.............................................................................. ................. 11/28/2007.... ..............0                                         ..................................0    ...........................4,079      ..................................0   ....................1,429,622          ................1.0
          713000 00 8 Northstar Mezzanine Ptners IV.................................................................................................. Wilmington ........................................ DE.........                                               Northstar Mezzanine Ptners IV................................................................................ ................. 01/19/2006.... ..............0                                        ..................................0    .......................422,435        ..................................0   .......................138,802         ................1.7
          716600 00 2 Siguler Guff Distressed Real..................................................................................................... Wilmington ........................................ DE.........                                             Siguler Guff Distressed Real.................................................................................... ................. 04/11/2011.... ..............0                                     ..................................0    ....................1,700,000         ..................................0   ....................6,300,000          ................1.6
          716100 00 3 TA Subordinated Debt Fund III.................................................................................................. Wilmington ........................................ DE.........                                               TA Subordinated Debt Fund III................................................................................ ................. 11/08/2010.... ..............0                                        ..................................0    .......................162,013        ..................................0   ....................1,512,500          ................1.0
          713200 00 4 TA X........................................................................................................................................... Wilmington ........................................ DE.........                               TA X......................................................................................................................... ................. 04/25/2006.... ..............0                        ..................................0    .......................121,050        ..................................0   .......................105,000         ................0.1
QE03




          715900 00 7 TA XI.......................................................................................................................................... Wilmington ........................................ DE.........                               TA XI........................................................................................................................ ................. 07/30/2010.... ..............0                        ..................................0    .......................150,000        ..................................0   ....................4,631,250          ................0.4
          713400 00 0 TCW Crescent Mezzanine IV.................................................................................................... Wilmington ........................................ DE.........                                                 TCW Crescent Mezzanine IV................................................................................... ................. 05/12/2006.... ..............0                                         ..................................0    .........................61,307       ..................................0   ....................1,251,068          ................1.0
          714500 00 6 TCW Crescent Mezzanine V..................................................................................................... Wilmington ........................................ DE.........                                                 TCW Crescent Mezzanine V.................................................................................... ................. 03/20/2008.... ..............0                                         ..................................0    .......................452,080        ..................................0   ....................2,727,870          ................0.6
          710800 00 4 TCW/Crescent Mezzanine III..................................................................................................... Wilmington ........................................ DE.........                                               TCW/Crescent Mezzanine III................................................................................... ................. 03/30/2001.... ..............0                                        ..................................0    ...........................5,671      ..................................0   .........................56,067        ................0.5
          711900 00 1 VSS Communications Partners IV............................................................................................. Wilmington ........................................ DE.........                                                   VSS Communications Partners IV........................................................................... ................. 03/14/2005.... ..............0                                            ..................................0    .......................101,044        ..................................0   ..................................0    ................1.2
          710000 00 1 Wilshire Assoc Private Mkt III.................................................................................................... Wilmington ........................................ DE.........                                            Wilshire Assoc Private Mkt III.................................................................................. ................. 08/23/2001.... ..............0                                     ..................................0    .........................95,356       ..................................0   .......................275,000         ................2.0
          711600 00 7 Wilshire Private Mkts Fund VI................................................................................................... Wilmington ........................................ DE.........                                              Wilshire Private Mkts Fund VI.................................................................................. ................. 11/02/2004.... ..............0                                      ..................................0    .......................205,552        ..................................0   ....................1,422,991          ................1.5
          710900 00 2 Wilshire Private Mkts Fund IV................................................................................................... Wilmington ........................................ DE.........                                              Wilshire Private Mkts Fund IV.................................................................................. ................. 12/20/1999.... ..............0                                      ..................................0    .......................132,096        ..................................0   .......................263,480         ................3.3
       1599999. Total - Joint Venture or Partnership Interests That Have Underlying Characteristics of Common Stocks - Unaffiliated.............................................................                                                                    ...................................................................................................................................................................................................   ....................3,829,653          ..................11,096,825          ..................................0   ..................60,486,187           ....XXX...........
       3999999. Subtotal - Unaffiliated...................................................................................................................................................................................................................          ...................................................................................................................................................................................................   ....................3,829,653          ..................11,096,825          ..................................0   ..................60,486,187           ....XXX...........
       4199999. Totals...........................................................................................................................................................................................................................................   ...................................................................................................................................................................................................   ....................3,829,653          ..................11,096,825          ..................................0   ..................60,486,187           ....XXX...........




                                                                                                                                                                                                                                                                                  SCHEDULE BA - PART 3
                                                                                                                                                                                                Showing Other Long-Term Invested Assets DISPOSED, Transferred or Repaid During the Current Quarter
                     1                                                           2                                                               Location                                                                5                                                 6                    7                         8                                                         Changes in Book/Adjusted Carrying Value                                                                                               15                           16                      17                     18                       19                    20
                                                                                                                                                 3                          4                                                                                                                                                                          9                     10               11              12               13                                                          14
                                                                                                                                                                                                                                                                                                               Book/Adjusted                                            Current Year's Current Year's                                                                                     Total                  Book/Adjusted
                                                                                                                                                                                                                                                                                                               Carrying Value                  Unrealized               (Depreciation)   Other Than       Capitalized         Total                                                      Foreign                 Carrying Value                                           Foreign
                                                                                                                                                                                                                                                                       Date                                         Less                        Valuation                    or          Temporary         Deferred        Change in                                                    Exchange                      Less                                               Exchange               Realized                  Total
               CUSIP                                                      Name or                                                                                                                        Name of Purchaser or                                        Originally           Disposal             Encumbrances,                    Increase                (Amortization)/  Impairment        Interest         B./A.C.V                                                    Change in                Encumbrances                                           Gain (Loss)            Gain (Loss)             Gain (Loss)                Investment
            Identification                                               Description                                                           City                      State                            Nature of Disposal                                         Acquired               Date                 Prior Year                    (Decrease)                 Accretion      Recognized       and Other      (9+10-11+12)                                                   B./A.C.V.                 on Disposal                Consideration              on Disposal            on Disposal             on Disposal                  Income


       Joint Venture or Partnership Interests That Have Underlying Characteristics of Common Stocks - Unaffiliated
          713300 00 2 Avista Capital Partners.................................................. Wilmington........................ DE... Capital Distribution.................................................                                                      04/28/2006          05/25/2012            .............109,104          .....................0     .....................0      .....................0     .....................0      .....................0     .....................0     .............109,104         ..........109,104        ...................0   ...................0     ...................0   ..........28,185
          711400 00 2 B IV Capital Partners..................................................... Wilmington........................ DE... Capital Distribution.................................................                                                     12/13/2002          06/29/2012            .............386,000          .....................0     .....................0      .....................0     .....................0      .....................0     .....................0     .............386,000         ..........386,000        ...................0   ...................0     ...................0   ...................0
          711100 00 8 Banc Fund VI................................................................. Chicago............................. IL..... Capital Distribution.................................................                                              06/19/2002          04/26/2012            .............110,313          .....................0     .....................0      .....................0     .....................0      .....................0     .....................0     .............110,313         ..........110,313        ...................0   ...................0     ...................0   ...................0
          707200 00 2 Concord Partners III....................................................... Wilmington........................ DE... Capital Distribution.................................................                                                    06/25/2001          04/18/2012            ...............10,783         .....................0     .....................0      .....................0     .....................0      .....................0     .....................0     ...............10,783        ............10,763       ...................0   ...................0     ...................0   ...................0
          707200 00 2 Concord Partners III....................................................... Wilmington........................ DE... Capital Distribution.................................................                                                    06/25/2001          06/07/2012            ...............10,783         .....................0     .....................0      .....................0     .....................0      .....................0     .....................0     ...............10,783        ............10,763       ...................0   ...................0     ...................0   ...................0
          716900 00 0 Crossharbor Institutional Partners II.............................. Wilmington........................ DE... Capital Distribution.................................................                                                            10/07/2011          05/30/2012            ........................0     .....................0     .....................0      .....................0     .....................0      .....................0     .....................0     ....................197      .................197     ...................0   ...................0     ...................0   ...............197
          709800 00 7 DLJ Investment Partners II............................................ Wilmington........................ DE... Capital Distribution.................................................                                                         11/23/1999          05/09/2012            .................7,214        .....................0     .....................0      .....................0     .....................0      .....................0     .....................0     .................7,214       ..............7,214      ...................0   ...................0     ...................0   ............6,714
          710300 00 5 DLJ Merchant Banking III.............................................. Wilmington........................ DE... Capital Distribution.................................................                                                         09/29/2000          04/24/2012            ...............80,912         .....................0     .....................0      .....................0     .....................0      .....................0     .....................0     ...............80,912        ............80,912       ...................0   ...................0     ...................0   ..........65,918
              Statement as of June 30, 2012 of the                             National Life Insurance Company
                                                                                                                                                                                                                                                                                   SCHEDULE BA - PART 3
                                                                                                                                                                                                  Showing Other Long-Term Invested Assets DISPOSED, Transferred or Repaid During the Current Quarter
                       1                                                           2                                                               Location                                                                5                                                6                    7                      8                                                   Changes in Book/Adjusted Carrying Value                                                                                   15                      16                    17                     18                     19                     20
                                                                                                                                                   3                          4                                                                                                                                                                  9                   10               11              12               13                                                 14
                                                                                                                                                                                                                                                                                                              Book/Adjusted                                     Current Year's Current Year's                                                                            Total                Book/Adjusted
                                                                                                                                                                                                                                                                                                              Carrying Value             Unrealized             (Depreciation)   Other Than       Capitalized         Total                                             Foreign               Carrying Value                                   Foreign
                                                                                                                                                                                                                                                                        Date                                       Less                   Valuation                  or          Temporary         Deferred        Change in                                           Exchange                    Less                                       Exchange               Realized                 Total
                 CUSIP                                                      Name or                                                                                                                        Name of Purchaser or                                       Originally           Disposal           Encumbrances,               Increase              (Amortization)/  Impairment        Interest         B./A.C.V                                           Change in              Encumbrances                                   Gain (Loss)            Gain (Loss)            Gain (Loss)             Investment
              Identification                                               Description                                                           City                      State                            Nature of Disposal                                        Acquired               Date               Prior Year               (Decrease)               Accretion      Recognized       and Other      (9+10-11+12)                                          B./A.C.V.               on Disposal            Consideration          on Disposal            on Disposal            on Disposal               Income

            716200 00 1 Energy Fund XV............................................................ Wilmington........................ DE... Capital Distribution................................................. 03/07/2011 05/03/2012                                                                       .............230,271     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............267,613     ..........267,613     ...................0   ...................0   ...................0   ..........97,755
            714300 00 1 GS Mezzanine Partners V............................................. George Town.................... GC... Capital Distribution................................................. 11/30/2007 04/30/2012                                                                                .............204,616     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............204,616     ..........204,616     ...................0   ...................0   ...................0   ........194,328
            712400 00 1 GarMark Partners II....................................................... Wilmington........................ DE... Capital Distribution................................................. 07/18/2005 04/13/2012                                                                       .............127,928     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............127,928     ..........127,928     ...................0   ...................0   ...................0   ...................0
            709100 00 2 Green Mountain Partners II........................................... Wilmington........................ DE... Capital Distribution................................................. 07/24/1998 05/10/2012                                                                            .............101,931     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............101,931     ..........101,931     ...................0   ...................0   ...................0   ............7,469
            709100 00 2 Green Mountain Partners II........................................... Wilmington........................ DE... Capital Distribution................................................. 07/24/1998 06/07/2012                                                                            ...............40,513    .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   ...............41,078    ............41,078    ...................0   ...................0   ...................0   ..........17,128
            713500 00 7 LS Power Equity Partners II........................................... Wilmington........................ DE... Capital Distribution................................................. 02/02/2007 06/22/2012                                                                           .............132,045     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............134,383     ..........134,383     ...................0   ...................0   ...................0   ...................0
            715700 00 1 Littlejohn Fund IV........................................................... Wilmington........................ DE... Capital Distribution................................................. 06/09/2010 06/11/2012                                                                    .............139,929     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............139,929     ..........139,929     ...................0   ...................0   ...................0   ...............458
            710600 00 8 MD Sass Corporate Part III............................................ Wilmington........................ DE... Capital Distribution................................................. 03/23/2001 05/16/2012                                                                           .............550,984     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............550,984     ..........550,984     ...................0   ...................0   ...................0   ........550,984
            716300 00 9 Newstone Capital Partners II......................................... Wilmington........................ DE... Capital Distribution................................................. 03/14/2011 04/12/2012                                                                            .............647,173     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............647,173     ..........647,173     ...................0   ...................0   ...................0   ...................0
            714200 00 3 Northstar Mezzanine Partners V.................................... Wilmington........................ DE... Capital Distribution................................................. 11/28/2007 04/30/2012                                                                               .............113,714     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............113,714     ..........113,714     ...................0   ...................0   ...................0   ............1,568
            714200 00 3 Northstar Mezzanine Partners V.................................... Wilmington........................ DE... Capital Distribution................................................. 11/28/2007 05/17/2012                                                                               .............149,012     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............149,112     ..........149,112     ...................0   ...................0   ...................0   ............2,511
            713000 00 8 Northstar Mezzanine Ptners IV...................................... Wilmington........................ DE... Capital Distribution................................................. 01/19/2006 04/05/2012                                                                              .............704,327     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............704,327     ..........704,327     ...................0   ...................0   ...................0   ........392,252
            713000 00 8 Northstar Mezzanine Ptners IV...................................... Wilmington........................ DE... Capital Distribution................................................. 01/19/2006 04/30/2012                                                                              ...............31,876    .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   ...............37,904    ............37,904    ...................0   ...................0   ...................0   ..........30,183
            714600 00 4 Siguler Guff Distressed III.............................................. Wilmington........................ DE... Capital Distribution................................................. 04/08/2008 06/29/2012                                                                        .................1,875   .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .................1,875   ..............1,875   ...................0   ...................0   ...................0   ...................0
            716600 00 2 Siguler Guff Distressed Real Estate Opp...................... Wilmington........................ DE... Capital Distribution................................................. 04/11/2011 04/10/2012                                                                                    ...............16,467    .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   ...............23,877    ............23,877    ...................0   ...................0   ...................0   ...................0
            716600 00 2 Siguler Guff Distressed Real Estate Opp...................... Wilmington........................ DE... Capital Distribution................................................. 04/11/2011 06/29/2012                                                                                    ...............59,950    .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............111,106     ..........111,106     ...................0   ...................0   ...................0   ...................0
            716100 00 3 TA Subordinated Debt Fund III...................................... Wilmington........................ DE... Capital Distribution................................................. 11/08/2010 06/21/2012                                                                              ...............38,781    .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   ...............43,750    ............43,750    ...................0   ...................0   ...................0   ..........37,013
            713200 00 4 TA X............................................................................... Wilmington........................ DE... Capital Distribution................................................. 04/25/2006 06/05/2012                                                              ...............75,000    .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   ...............75,000    ............75,000    ...................0   ...................0   ...................0   ..........31,050
            713200 00 4 TA X............................................................................... Wilmington........................ DE... Capital Distribution................................................. 04/25/2006 06/22/2012                                                              ...............88,565    .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   ...............90,000    ............90,000    ...................0   ...................0   ...................0   ..........90,000
            713400 00 0 TCW Crescent Mezzanine IV........................................ Wilmington........................ DE... Capital Distribution................................................. 05/12/2006 04/23/2012                                                                                .............526,112     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............526,112     ..........526,112     ...................0   ...................0   ...................0   ..........61,307
            714500 00 6 TCW Crescent Mezzanine V......................................... Wilmington........................ DE... Capital Distribution................................................. 03/20/2008 05/31/2012                                                                                .............456,261     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............477,781     ..........477,781     ...................0   ...................0   ...................0   ........152,533
QE03.1




            713900 00 9 TCW Special Mtg Credits Fund..................................... Wilmington........................ DE... Capital Distribution................................................. 07/27/2007 04/27/2012                                                                                .............106,401     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............106,401     ..........106,401     ...................0   ...................0   ...................0   ...................0
            713900 00 9 TCW Special Mtg Credits Fund..................................... Wilmington........................ DE... Capital Distribution................................................. 07/27/2007 05/25/2012                                                                                .............190,658     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............190,658     ..........190,658     ...................0   ...................0   ...................0   ...................0
            713900 00 9 TCW Special Mtg Credits Fund..................................... Wilmington........................ DE... Capital Distribution................................................. 07/27/2007 06/29/2012                                                                                .............148,777     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............148,777     ..........148,777     ...................0   ...................0   ...................0   ...................0
            715000 00 6 TCW Special Mtg Credits II........................................... Wilmington........................ DE... Capital Distribution................................................. 08/15/2008 04/27/2012                                                                            .............141,788     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............141,788     ..........141,788     ...................0   ...................0   ...................0   ...................0
            715000 00 6 TCW Special Mtg Credits II........................................... Wilmington........................ DE... Capital Distribution................................................. 08/15/2008 05/25/2012                                                                            .............212,248     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............212,248     ..........212,248     ...................0   ...................0   ...................0   ...................0
            715000 00 6 TCW Special Mtg Credits II........................................... Wilmington........................ DE... Capital Distribution................................................. 08/15/2008 06/29/2012                                                                            .............166,170     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............166,170     ..........166,170     ...................0   ...................0   ...................0   ...................0
            710800 00 4 TCW/Crescent Mezzanine III......................................... Wilmington........................ DE... Capital Distribution................................................. 03/30/2001 04/19/2012                                                                              .............246,851     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............246,851     ..........246,851     ...................0   ...................0   ...................0   ...................0
            709400 00 6 Ticonderoga e-Services Fund I..................................... Wilmington........................ DE... Capital Distribution................................................. 12/29/1998 04/17/2012                                                                               .................2,168   .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .................2,168   ..............2,168   ...................0   ...................0   ...................0   ...................0
            709400 00 6 Ticonderoga e-Services Fund I..................................... Wilmington........................ DE... Capital Distribution................................................. 12/29/1998 06/07/2012                                                                               .................2,168   .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .................2,168   ..............2,168   ...................0   ...................0   ...................0   ...................0
            711900 00 1 VSS Communications Partners IV................................. Wilmington........................ DE... Capital Distribution................................................. 03/14/2005 03/30/2012                                                                                  .............384,713     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............384,713     ..........384,713     ...................0   ...................0   ...................0   ...................0
            710700 00 6 Whitney V...................................................................... Dover................................ DE... Capital Distribution................................................. 03/29/2001 04/23/2012                                                               .............497,231     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............497,231     ..........497,231     ...................0   ...................0   ...................0   ........497,231
            710000 00 1 Wilshire Assoc Private Mkt III........................................ Wilmington........................ DE... Capital Distribution................................................. 08/23/2001 05/15/2012                                                                           .............122,796     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............122,796     ..........122,796     ...................0   ...................0   ...................0   ..........95,356
            711600 00 7 Wilshire Private Mkts Fund VI....................................... Wilmington........................ DE... Capital Distribution................................................. 11/02/2004 05/30/2012                                                                             .............259,811     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............259,811     ..........259,811     ...................0   ...................0   ...................0   ........105,552
            710900 00 2 Wilshire Private Mkts IV................................................. Wilmington........................ DE... Capital Distribution................................................. 12/20/1999 05/17/2012                                                                        .............145,993     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............145,993     ..........145,993     ...................0   ...................0   ...................0   ........123,596
         1599999. Total - Joint Venture or Partnership Interests That Have Underlying Characteristics of Common Stocks - Unaffiliated.......................................................................................................                                                                  ..........7,780,212      .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   ..........7,913,272      .......7,913,230      ...................0   ...................0   ...................0   .....2,589,287
         Joint Venture or Partnership Interests That Have Underlying Characteristics of Real Estate - Unaffiliated
            715100 00 4 Thor Urban Property Fund II.......................................... Winter Park....................... FL.... Capital Distribution................................................. 10/30/2008 06/14/2012                                                                           .............802,199     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............802,199     ..........802,199     ...................0   ...................0   ...................0   ...................0
         1799999. Total - Joint Venture or Partnership Interests That Have Underlying Characteristics of Real Estate - Unaffiliated...............................................................................................................                                                            .............802,199     .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   .............802,199     ..........802,199     ...................0   ...................0   ...................0   ...................0
                  3999999. Subtotal - Unaffiliated..............................................................................................................................................................................................................................                              ..........8,582,411      .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   ..........8,715,471      .......8,715,429      ...................0   ...................0   ...................0   .....2,589,287
         4199999. Totals........................................................................................................................................................ ..........................................................................................................................   ..........8,582,411      .....................0   .....................0   .....................0   .....................0   .....................0   .....................0   ..........8,715,471      .......8,715,429      ...................0   ...................0   ...................0   .....2,589,287
           Statement as of June 30, 2012 of the                  National Life Insurance Company
                                                                                                                                                                                                                                        SCHEDULE D - PART 3
                                                                                                                                                                                           Show all Long-Term Bonds and Stock Acquired During the Current Quarter
                   1                                                                                 2                                                                          3              4                                                                                    5                                                                                                  6                                                7                                              8                                           9                                          10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Paid for                               NAIC Designation
              CUSIP                                                                                                                                                                         Date                                                                                                                                                                              Number of                                                                                                                                     Accrued Interest                              or Market
           Identification                                                                      Description                                                                  Foreign       Acquired                                                                      Name of Vendor                                                                                      Shares of Stock                                      Actual Cost                                     Par Value                                   and Dividends                               Indicator (a)

       Bonds - U.S. Special Revenue and Special Assessment
         3128M9 CN 0 FREDDIE MAC G06977 3.000% 04/01/42....................................................................................................... ........... ....06/05/2012                   Wells Fargo Funds.................................................................................................................... ...............................................                  ................................20,310,109     ................................19,890,543     .......................................19,891       1FE...........................
         3132GS TW 9 FREDDIE MAC Q07465 3.500% 04/01/42....................................................................................................... ........... ....04/06/2012                   BB&T Capital Markets............................................................................................................... ...............................................                    ................................29,895,610     ................................28,963,352     .......................................30,975       1FE...........................
         31393Y PB 5 Federal Natl Mtg Assn 4.500% 05/25/34........................................................................................................... ........... ....06/01/2012            Interest Capitalization................................................................................................................ ...............................................                .....................................330,474   .....................................330,474   ................................................0   1FE...........................
         31394B 5Q 3 Federal Natl Mtg Assn R 6.000% 02/25/35........................................................................................................ ........... ....06/01/2012             Interest Capitalization................................................................................................................ ...............................................                .....................................214,820   .....................................214,820   ................................................0   1FE...........................
          31394L JD 5 Federal Home Ln Mtg Cor 4.500% 10/15/33..................................................................................................... ........... ....06/01/2012               Interest Capitalization................................................................................................................ ...............................................                .....................................253,794   .....................................253,794   ................................................0   1FE...........................
         31394R LB 3 Federal Home Ln Mtg Cor 5.000% 02/15/34..................................................................................................... ........... ....06/01/2012                Interest Capitalization................................................................................................................ ...............................................                .....................................634,096   .....................................634,096   ................................................0   1FE...........................
          31396F G4 9 Federal Home Ln Mtg Cor 4.500% 11/15/35..................................................................................................... ........... ....06/01/2012               Interest Capitalization................................................................................................................ ...............................................                .....................................450,240   .....................................450,240   ................................................0   1FE...........................
          31396J 2V 6 Federal Home Ln Mtg Cor 6.000% 03/15/36..................................................................................................... ........... ....06/01/2012               Interest Capitalization................................................................................................................ ...............................................                .....................................257,618   .....................................257,618   ................................................0   1FE...........................
         31396K FU 1 Federal Natl Mtg Assn R 6.500% 08/25/36........................................................................................................ ........... ....06/01/2012             Interest Capitalization................................................................................................................ ...............................................                .....................................247,700   .....................................247,700   ................................................0   1FE...........................
         31396K G4 8 Federal Natl Mtg Assn R 6.500% 09/25/36........................................................................................................ ........... ....06/01/2012             Interest Capitalization................................................................................................................ ...............................................                .....................................368,279   .....................................368,279   ................................................0   1FE...........................
         31396V X9 4 Federal Natl Mtg Assn R 6.000% 05/25/37........................................................................................................ ........... ....06/01/2012             Interest Capitalization................................................................................................................ ...............................................                .....................................141,084   .....................................141,084   ................................................0   1FE...........................
         31396W UB 0 Federal Natl Mtg Assn R 6.000% 07/25/37........................................................................................................ ........... ....06/01/2012             Interest Capitalization................................................................................................................ ...............................................                .....................................123,398   .....................................123,398   ................................................0   1FE...........................
         31397A 6C 2 Federal Home Ln Mtg Cor 5.000% 08/15/36..................................................................................................... ........... ....06/01/2012                Interest Capitalization................................................................................................................ ...............................................                .....................................153,871   .....................................153,871   ................................................0   1FE...........................
          31397L C8 0 Federal Natl Mtg Assn R 6.000% 03/25/38........................................................................................................ ........... ....06/01/2012            Interest Capitalization................................................................................................................ ...............................................                .....................................424,538   .....................................424,538   ................................................0   1FE...........................
         31397P V3 1 Federal Home Ln Mtg Cor 5.000% 01/15/38..................................................................................................... ........... ....06/01/2012                Interest Capitalization................................................................................................................ ...............................................                .....................................290,421   .....................................290,421   ................................................0   1FE...........................
         38374N HE 0 Government Natl Mtg Assn 6.500% 06/20/36.................................................................................................... ........... ....06/01/2012                Interest Capitalization................................................................................................................ ...............................................                .....................................290,735   .....................................290,735   ................................................0   1FE...........................
         38374U WN 7 Government Natl Mtg Assn 5.000% 06/20/39.................................................................................................... ........... ....06/01/2012                Interest Capitalization................................................................................................................ ...............................................                .....................................287,965   .....................................287,965   ................................................0   1FE...........................
       3199999.             Total - Bonds - U.S. Special Revenue & Special Assessments................................................................................................................      ....................................................................................................................................................................................................   ................................54,674,752     ................................53,322,928     .......................................50,866       ..........XXX.................
       Bonds - Industrial and Miscellaneous
          017175 AB 6 ALLEGHANY CORP 5.625% 09/15/20.............................................................................................................. ........... ....05/15/2012               Gleacher Securities...................................................................................................................               ...............................................   ..................................2,412,182    ..................................2,205,000    .......................................21,705       2FE...........................
          073730 AE 3 BEAM INC 3.250% 05/15/22............................................................................................................................. ........... ....05/10/2012      Banc of America Securities.......................................................................................................                    ...............................................   ..................................4,955,400    ..................................5,000,000    ................................................0   2FE...........................
QE04




         09247X AJ 0 Blackrock Inc 3.375% 06/01/22......................................................................................................................... ........... ....05/22/2012      Citigroup Global........................................................................................................................             ...............................................   ..................................2,984,070    ..................................3,000,000    ................................................0   1FE...........................
         13342B AJ 4 Cameron International I 3.600% 04/30/22......................................................................................................... ........... ....06/13/2012            Credit Suisse.............................................................................................................................           ...............................................   ..................................5,034,900    ..................................5,000,000    .......................................15,500       2FE...........................
         17121E AD 9 CHRYSLER GP/CG CO-ISSUE 8.250% 06/15/21............................................................................................ ........... ....04/16/2012                         Cantor Fitzgerald.......................................................................................................................             ...............................................   ..................................1,005,000    ..................................1,000,000    .......................................28,417       4FE...........................
          277432 AK 6 Eastman Chemical 4.500% 01/15/21................................................................................................................. ........... ....05/15/2012          MIZUHO....................................................................................................................................           ...............................................   ..................................2,991,162    ..................................2,777,000    .......................................42,696       2FE...........................
          277432 AN 0 Eastman Chemical 3.600% 08/15/22................................................................................................................. ........... ....05/29/2012          Citigroup Global........................................................................................................................             ...............................................   ..................................1,984,480    ..................................2,000,000    ................................................0   2FE...........................
          278865 AL 4 Ecolab Inc 4.350% 12/08/21.............................................................................................................................. ........... ....06/12/2012   Credit Suisse.............................................................................................................................           ...............................................   ..................................3,303,630    ..................................3,000,000    .........................................2,538      2FE...........................
         29266R AC 2 Energizer Holdings Inc 4.700% 05/24/22........................................................................................................... ........... ....05/21/2012           Various......................................................................................................................................        ...............................................   ..................................2,005,065    ..................................2,000,000    ................................................0   2FE...........................
          382550 BC 4 Goodyear Tire & Rubber 7.000% 05/15/22........................................................................................................ ........... ....04/16/2012             Cantor Fitzgerald.......................................................................................................................             ...............................................   .....................................965,000   ..................................1,000,000    .........................................9,917      4FE...........................
          486606 H@ 8 Kayne Anderson MLP 3.950% 05/03/21............................................................................................................ ........... ....05/03/2012             Direct-Private Placement..........................................................................................................                   ...............................................   ..................................5,000,000    ..................................5,000,000    ................................................0   1Z..............................
          489170 AC 4 KENNAMETAL INC 3.875% 02/15/22............................................................................................................... ........... ....06/13/2012              Banc of America Securities.......................................................................................................                    ...............................................   ..................................5,158,950    ..................................5,000,000    .......................................66,736       2FE...........................
         50076Q AF 3 KRAFT FOODS GROUP INC 3.500% 06/06/22................................................................................................ ........... ....06/11/2012                       Various......................................................................................................................................        ...............................................   ..................................7,599,100    ..................................7,500,000    .........................................4,861      2FE...........................
          501044 CQ 2 Kroger Co 3.400% 04/15/22............................................................................................................................... ........... ....04/10/2012   Citigroup Global........................................................................................................................             ...............................................   ..................................2,980,650    ..................................3,000,000    ................................................0   2FE...........................
          608753 AC 3 MOLYCORP INC 10.000% 06/01/20.................................................................................................................. ........... ....06/06/2012            Libertas Partners.......................................................................................................................             ...............................................   .....................................248,750   .....................................250,000   .........................................1,111      4FE...........................
          651290 AQ 1 Newfield Exploration Co 5.625% 07/01/24........................................................................................................ ........... ....06/19/2012            Various......................................................................................................................................        ...............................................   ..................................5,613,750    ..................................5,500,000    ................................................0   3FE...........................
          695156 AN 9 Packaging Corp of America 6.500% 03/15/18................................................................................................... ........... ....06/22/2012               Wells Fargo Funds....................................................................................................................                ...............................................   ..................................4,575,000    ..................................4,000,000    .......................................73,667       2FE...........................
          709599 AE 4 PENSKE TRUCK LEASING/PT 3.750% 05/11/17............................................................................................ ........... ....05/08/2012                        Various......................................................................................................................................        ...............................................   ..................................3,007,425    ..................................3,000,000    ................................................0   2FE...........................
          718546 AA 2 PHILLIPS 66 4.300% 04/01/22.......................................................................................................................... ........... ....05/08/2012      Greenwich Capital.....................................................................................................................               ...............................................   ..................................5,218,850    ..................................5,000,000    .......................................35,236       2FE...........................
          754907 AA 1 RAYONIER INC 3.750% 04/01/22..................................................................................................................... ........... ....05/08/2012          Banc of America Securities.......................................................................................................                    ...............................................   ..................................1,249,913    ..................................1,250,000    .........................................8,594      2FE...........................
          760759 AP 5 Republic Services Inc 3.550% 06/01/22............................................................................................................ ........... ....06/12/2012          Seaport Group...........................................................................................................................             ...............................................   ..................................5,069,850    ..................................5,000,000    .......................................11,833       2FE...........................
          779382 AP 5 ROWAN COMPANIES INC 4.875% 06/01/22................................................................................................... ........... ....05/22/2012                     Wells Fargo Funds....................................................................................................................                ...............................................   ..................................1,995,400    ..................................2,000,000    .........................................1,083      2FE...........................
          871503 AK 4 Symantec Corporation 3.950% 06/15/22........................................................................................................... ........... ....06/11/2012            JP Morgan.................................................................................................................................           ...............................................   ..................................1,984,000    ..................................2,000,000    ................................................0   2FE...........................
          887317 AQ 8 Time Warner Inc 3.400% 06/15/22.................................................................................................................... ........... ....06/08/2012        Citigroup Global........................................................................................................................             ...............................................   ..................................1,997,140    ..................................2,000,000    ................................................0   2FE...........................
          902494 AT 0 Tyson Foods Inc 4.500% 06/15/22.................................................................................................................... ........... ....06/06/2012        Various......................................................................................................................................        ...............................................   ..................................2,505,485    ..................................2,500,000    ................................................0   2FE...........................
          907818 DM 7 Union Pacific Corp 2.950% 01/15/23................................................................................................................. ........... ....06/06/2012        Credit Suisse.............................................................................................................................           ...............................................   ..................................1,998,860    ..................................2,000,000    ................................................0   2FE...........................
          910637 S@ 7 UNITED ILLUM Series C 3.610% 04/02/22....................................................................................................... ........... ....04/02/2012               Direct-Private Placement..........................................................................................................                   ...............................................   ..................................1,000,000    ..................................1,000,000    ................................................0   2................................
         92553P AM 4 VIACOM INC 3.125% 06/15/22......................................................................................................................... ........... ....06/11/2012         Citigroup Global........................................................................................................................             ...............................................   ..................................4,988,050    ..................................5,000,000    ................................................0   2FE...........................
         13643E AG 0 CANADIAN OIL SANDS TRUST 4.500% 04/01/22........................................................................................... A........ ....04/10/2012                           RBC Dain..................................................................................................................................           ...............................................   ..................................2,061,720    ..................................2,000,000    .........................................3,500      2FE...........................
          146900 AG 0 CASCADES INC 7.750% 12/15/17.................................................................................................................... A........ ....06/11/2012             Gleacher Securities...................................................................................................................               ...............................................   .....................................995,000   ..................................1,000,000    .......................................38,535       3FE...........................
             Statement as of June 30, 2012 of the                          National Life Insurance Company
                                                                                                                                                                                                                                                                     SCHEDULE D - PART 3
                                                                                                                                                                                                                     Show all Long-Term Bonds and Stock Acquired During the Current Quarter
                      1                                                                                              2                                                                                   3                 4                                                                                     5                                                                                                  6                                                  7                                                 8                                             9                                          10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Paid for                               NAIC Designation
                 CUSIP                                                                                                                                                                                                 Date                                                                                                                                                                                Number of                                                                                                                                            Accrued Interest                              or Market
              Identification                                                                                 Description                                                                             Foreign         Acquired                                                                        Name of Vendor                                                                                      Shares of Stock                                       Actual Cost                                         Par Value                                     and Dividends                               Indicator (a)

            294829 AA 4 ERICSSON LM 4.125% 05/15/22...................................................................................................................... F......... ....05/02/2012                                      Deutsche Bank-Alex Brown...................................................................................................... ...............................................                         ..................................5,975,100        ..................................6,000,000       ................................................0   2FE...........................
           90320X AA 9 UPCB FINANCE VI LTD 6.875% 01/15/22........................................................................................................ F......... ....05/24/2012                                             Credit Suisse............................................................................................................................. ...............................................             ..................................1,503,750        ..................................1,500,000       .......................................32,370       3FE...........................
         3899999.          Total - Bonds - Industrial & Miscellaneous.................................................................................................................................................                   ....................................................................................................................................................................................................   ..............................100,367,632          ................................98,482,000        .....................................398,299        ..........XXX.................
         8399997.          Total - Bonds - Part 3.................................................................................................................................................................................       ....................................................................................................................................................................................................   ..............................155,042,384          ..............................151,804,928         .....................................449,165        ..........XXX.................
         8399999.          Total - Bonds..............................................................................................................................................................................................   ....................................................................................................................................................................................................   ..............................155,042,384          ..............................151,804,928         .....................................449,165        ..........XXX.................
         Common Stocks - Industrial and Miscellaneous
            31338# 11 2 FHLB - Boston Class B....................................................................................................................................... ........... ....04/06/2012                          Direct......................................................................................................................................... .................................837.000               .......................................83,700      .....................XXX.......................   ................................................0   A...............................
            315808 40 2 Fidelity Advisors Equit......................................................................................................................................... ........... ....04/04/2012                      Sentinel Group Fds................................................................................................................... .....................................1.000                       ..............................................34   .....................XXX.......................   ................................................0   L................................
            68380T 40 0 Oppenheimer International.................................................................................................................................. ........... ....06/29/2012                           Sentinel Group Fds................................................................................................................... ...................................62.000                        ............................................389    .....................XXX.......................   ................................................0   L................................
            817270 20 0 Sentinel Group Fds Inc....................................................................................................................................... ........... ....06/22/2012                         Sentinel Group Fds................................................................................................................... ..............................2,270.000                          .......................................38,913      .....................XXX.......................   ................................................0   L................................
            817270 30 9 Sentinel Group Fds Inc....................................................................................................................................... ........... ....06/27/2012                         Sentinel Group Fds................................................................................................................... ..............................5,367.000                          .....................................176,775       .....................XXX.......................   ................................................0   L................................
            817270 50 7 Sentinel Group Fds Inc....................................................................................................................................... ........... ....06/27/2012                         Sentinel Group Fds................................................................................................................... .................................907.000                         .......................................17,035      .....................XXX.......................   ................................................0   L................................
            817270 56 4 Sentinel Group Fds Inc....................................................................................................................................... ........... ....06/27/2012                         Sentinel Group Fds................................................................................................................... ..............................3,965.000                          .......................................47,944      .....................XXX.......................   ................................................0   L................................
            817270 60 6 Sentinel Group Fds Inc....................................................................................................................................... ........... ....06/27/2012                         Sentinel Group Fds................................................................................................................... ..............................3,215.000                          .......................................34,650      .....................XXX.......................   ................................................0   L................................
            817270 80 4 Sentinel Group Fds Inc....................................................................................................................................... ........... ....06/27/2012                         Sentinel Group Fds................................................................................................................... ............................10,126.000                           .......................................77,350      .....................XXX.......................   ................................................0   L................................
            817270 85 3 Sentinel Group Fds Inc....................................................................................................................................... ........... ....06/22/2012                         Sentinel Group Fds................................................................................................................... .................................171.000                         .........................................1,564     .....................XXX.......................   ................................................0   L................................
            817270 88 7 Sentinel Group Fds Inc....................................................................................................................................... ........... ....06/27/2012                         Sentinel Group Fds................................................................................................................... ..............................1,006.000                          .......................................15,108      .....................XXX.......................   ................................................0   L................................
           81728B 10 6 Sentinel Group Fds Inc....................................................................................................................................... ........... ....05/11/2012                          Sentinel Group Fds................................................................................................................... .................................237.000                         .........................................4,832     .....................XXX.......................   ................................................0   L................................
         9099999.          Total - Common Stocks - Industrial & Miscellaneous................................................................................................................................                            ....................................................................................................................................................................................................   .....................................498,294       .....................XXX.......................   ................................................0   ..........XXX.................
         Common Stocks - Mutual Funds
            817270 37 4 Sentinel Group Fds Inc....................................................................................................................................... ........... ....06/01/2012                         Sentinel Group Fds................................................................................................................... ............................34,286.000                           .......................................34,286      .....................XXX.......................   ................................................0   L................................
QE04.1




         9299999.          Total - Common Stocks - Mutual Funds.....................................................................................................................................................                     ....................................................................................................................................................................................................   .......................................34,286      .....................XXX.......................   ................................................0   ..........XXX.................
         9799997.          Total - Common Stocks - Part 3.................................................................................................................................................................               ....................................................................................................................................................................................................   .....................................532,580       .....................XXX.......................   ................................................0   ..........XXX.................
         9799999.          Total - Common Stocks..............................................................................................................................................................................           ....................................................................................................................................................................................................   .....................................532,580       .....................XXX.......................   ................................................0   ..........XXX.................
         9899999.          Total - Preferred and Common Stocks.......................................................................................................................................................                    ....................................................................................................................................................................................................   .....................................532,580       .....................XXX.......................   ................................................0   ..........XXX.................
         9999999.          Total - Bonds, Preferred and Common Stocks..........................................................................................................................................                          ....................................................................................................................................................................................................   ..............................155,574,964          .....................XXX.......................   .....................................449,165        ..........XXX.................
         (a) For all common stock bearing the NAIC market indicator "U" provide: the number of such issues:...............0.
           Statement as of June 30, 2012 of the                 National Life Insurance Company
                                                                                                                                                                                                                                   SCHEDULE D - PART 4
                                                                                                                                                       Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
                    1                                                  2                                      3           4                              5                                  6                       7                       8                       9                        10                             Change in Book/Adjusted Carrying Value                                                              16                   17                 18                 19                 20              2122
                                                                                                              F                                                                                                                                                                                                      11         12            13            14                                            15                                                                                                                   NAIC
                                                                                                              o                                                                                                                                                                                                                             Current                                                                                              Foreign                                                    Bond               Desig-
                                                                                                              r                                                                                                                                                                        Prior Year                                           Year's                                                    Total                 Book/               Exchange           Realized             Total             Interest/            nation
                                                                                                              e                                                                                                                                                                          Book/                 Unrealized     Current     Other Than       Total                                     Foreign              Adjusted                Gain               Gain               Gain               Stock     Stated      or
                                                                                                              i                                                                       Number of                                                                                        Adjusted                 Valuation     Year's      Temporary     Change in                                   Exchange               Carrying              (Loss)             (Loss)             (Loss)            Dividends Contractual Market
                CUSIP                                                                                         g      Disposal                                                         Shares of                                                                                         Carrying                Increase/ (Amortization)/ Impairment     B./A.C.V.                                  Change in              Value At                on                 on                 on              Received   Maturity Indicator
             Identification                                      Description                                  n        Date                  Name of Purchaser                          Stock               Consideration              Par Value              Actual Cost                Value                 (Decrease)    Accretion    Recognized    (11+12-13)                                  B./A.C.V.           Disposal Date           Disposal           Disposal           Disposal          During Year   Date      (a)

       Bonds - U.S. Government
          125990 NN 7 GMAC 1997 C - FHA Project 7.111% 05/25/19......... ..... 06/01/2012 Paydown..................................... ..........................                                          ............950,412     ............950,412     ............917,965     ............934,375        .................0   ........16,037       .................0   ..........16,037       ...............0   ............950,412     ...............0   ...............0   ...............0   ......28,037      05/25/2019     1FE......
         36202D FB 2 Government Natl Mtg Assn 8.000% 11/20/14........... ..... 06/01/2012 Paydown..................................... ..........................                                          ................6,565   ................6,565   ................6,686   ................6,597      .................0   ..............(33)   .................0   ................(33)   ...............0   ................6,565   ...............0   ...............0   ...............0   ...........225    11/20/2014     1FE......
         36211H ZG 9 Government Natl Mtg Assn 8.000% 08/15/14........... ..... 06/01/2012 Paydown..................................... ..........................                                          ................1,562   ................1,562   ................1,598   ................1,582      .................0   ..............(21)   .................0   ................(21)   ...............0   ................1,562   ...............0   ...............0   ...............0   .............52   08/15/2014     1FE......
         36211N TD 0 Government Natl Mtg Assn 8.000% 10/15/14........... ..... 06/01/2012 Paydown..................................... ..........................                                          ................7,471   ................7,471   ................7,667   ................7,501      .................0   ..............(30)   .................0   ................(30)   ...............0   ................7,471   ...............0   ...............0   ...............0   ...........250    10/15/2014     1FE......
          36211S N8 6 Government Natl Mtg Assn 8.000% 12/15/14........... ..... 06/01/2012 Paydown..................................... ..........................                                         ................1,175   ................1,175   ................1,203   ................1,186      .................0   ..............(11)   .................0   ................(11)   ...............0   ................1,175   ...............0   ...............0   ...............0   .............39   12/15/2014     1FE......
         36211W VV 7 Government Natl Mtg Assn 8.000% 12/15/14........... ..... 06/01/2012 Paydown..................................... ..........................                                          ................3,848   ................3,848   ................3,938   ................3,861      .................0   ..............(13)   .................0   ................(13)   ...............0   ................3,848   ...............0   ...............0   ...............0   ...........128    12/15/2014     1FE......
          36225A WN 6 Government Natl Mtg Assn 6.500% 10/15/27........... ..... 06/01/2012 Paydown..................................... ..........................                                         ..............42,653    ..............42,653    ..............42,490    ..............42,497       .................0   .............156     .................0   ...............156     ...............0   ..............42,653    ...............0   ...............0   ...............0   ........1,121     10/15/2027     1FE......
          621999 DP 3 FHA-Insured 236 Project 8.100% 06/01/12............... ..... 06/01/2012 Paydown..................................... ..........................                                      ..............63,485    ..............63,485    ..............66,977    ..............63,440       .................0   ...............45    .................0   .................45    ...............0   ..............63,485    ...............0   ...............0   ...............0   ........2,137     06/01/2012     1FE......
          621999 DX 6 FHA-Insured 236 Project 6.930% 11/01/12............... ..... 06/01/2012 Paydown..................................... ..........................                                      ..............43,877    ..............43,877    ..............46,291    ..............43,945       .................0   ..............(67)   .................0   ................(67)   ...............0   ..............43,877    ...............0   ...............0   ...............0   ........1,236     11/01/2012     1FE......
          621999 EB 3 FHA-Insured 236 Project 7.930% 07/01/14............... ..... 06/01/2012 Paydown..................................... ..........................                                      ..............70,152    ..............70,152    ..............74,010    ..............70,715       .................0   ............(563)    .................0   ..............(563)    ...............0   ..............70,152    ...............0   ...............0   ...............0   ........2,320     07/01/2014     1FE......
          621999 EE 7 FHA-Insured 236 Project 8.125% 07/01/15............... ..... 06/01/2012 Paydown..................................... ..........................                                      ..............36,870    ..............36,870    ..............38,898    ..............37,293       .................0   ............(423)    .................0   ..............(423)    ...............0   ..............36,870    ...............0   ...............0   ...............0   ........1,262     07/01/2015     1FE......
          664355 B9 4 Northeast 1985-1 FHA 8.581% 12/24/20.................. ..... 06/01/2012 Paydown..................................... ..........................                                      ............225,505     ............225,505     ............235,634     ............229,784        .................0   .........(4,279)     .................0   ...........(4,279)     ...............0   ............225,505     ...............0   ...............0   ...............0   ........8,195     12/24/2020     1FE......
          75933* B4 5 Reilly - FHA Project Pool 6.930% 07/01/15............... ..... 06/01/2012 Paydown..................................... ..........................                                    ..............65,383    ..............65,383    ..............68,979    ..............66,128       .................0   ............(746)    .................0   ..............(746)    ...............0   ..............65,383    ...............0   ...............0   ...............0   ........1,889     07/01/2015     1FE......
          75933* B6 0 Reilly - FHA Project Pool 8.767% 12/01/18............... ..... 06/01/2012 Paydown..................................... ..........................                                    ..............27,033    ..............27,033    ..............28,925    ..............27,738       .................0   ............(705)    .................0   ..............(705)    ...............0   ..............27,033    ...............0   ...............0   ...............0   ........1,001     12/01/2018     1FE......
          75933* B7 8 Reilly - FHA Project Pool 7.110% 10/24/19............... ..... 06/01/2012 Paydown..................................... ..........................                                    ..............33,726    ..............33,726    ..............34,306    ..............33,895       .................0   ............(168)    .................0   ..............(168)    ...............0   ..............33,726    ...............0   ...............0   ...............0   ...........969    10/24/2019     1FE......
QE05




          812185 A9 7 Seamans - FHA Project Pool 6.875% 02/24/16......... ..... 06/01/2012 Paydown..................................... ..........................                                         ..............21,509    ..............21,509    ..............20,868    ..............21,268       .................0   .............241     .................0   ...............241     ...............0   ..............21,509    ...............0   ...............0   ...............0   ...........620    02/24/2016     1FE......
          91203* B8 6 USGI - FHA Project Pool 8.930% 10/24/19............... ..... 06/01/2012 Paydown..................................... ..........................                                      ................3,598   ................3,598   ................3,762   ................3,660      .................0   ..............(61)   .................0   ................(61)   ...............0   ................3,598   ...............0   ...............0   ...............0   ...........134    10/24/2019     1FE......
          91203* B9 4 USGI - FHA Project Pool 7.278% 07/24/18............... ..... 06/01/2012 Paydown..................................... ..........................                                      ..............19,008    ..............19,008    ..............18,985    ..............18,941       .................0   ...............67    .................0   .................67    ...............0   ..............19,008    ...............0   ...............0   ...............0   ...........451    07/24/2018     1FE......
       0599999.              Total - Bonds - U.S. Government............................................................................................................................................   .........1,623,832      .........1,623,832      .........1,619,182      .........1,614,406         .................0   ..........9,426      .................0   ............9,426      ...............0   .........1,623,832      ...............0   ...............0   ...............0   ......50,066      ......XXX...   ..XXX....
       Bonds - U.S. Special Revenue and Special Assessment
         31283G 3V 7 Federal Home Ln Mtg Cor 6.500% 04/01/26............. ..... 06/01/2012 Paydown..................................... ..........................                                         ................7,093 ................7,093 ................7,224       ................7,199      .................0 ............(106) .................0 ..............(106) ...............0 ................7,093 ...............0 ...............0 ...............0 ...........186 04/01/2026 1FE......
         3128M7 T9 7 FREDDIE MAC G05676 4.000% 11/01/39............... ..... 06/01/2012 Paydown..................................... ..........................                                            .........3,058,060 .........3,058,060 .........3,197,584                .........3,196,318         .................0 .....(138,258) .................0 .......(138,258) ...............0 .........3,058,060 ...............0 ...............0 ...............0 ......51,361 11/01/2039 1FE......
         3128M8 FH 2 FREDDIE MAC G06168 3.500% 11/01/40............... ..... 06/01/2012 Paydown..................................... ..........................                                            .........2,076,946 .........2,076,946 .........2,025,346                .........2,026,282         .................0 ........50,664 .................0 ..........50,664 ...............0 .........2,076,946 ...............0 ...............0 ...............0 ......30,236 11/01/2040 1FE......
          312931 A6 5 FREDDIE MAC A84529 4.500% 02/01/39............... ..... 06/01/2012 Paydown..................................... ..........................                                           .........2,391,065 .........2,391,065 .........2,331,289                .........2,332,540         .................0 ........58,526 .................0 ..........58,526 ...............0 .........2,391,065 ...............0 ...............0 ...............0 ......41,460 02/01/2039 1FE......
          312933 A7 9 FREDDIE MAC A86330 4.500% 05/01/39............... ..... 06/01/2012 Paydown..................................... ..........................                                           .........2,007,854 .........2,007,854 .........1,957,658                .........1,958,730         .................0 ........49,124 .................0 ..........49,124 ...............0 .........2,007,854 ...............0 ...............0 ...............0 ......35,956 05/01/2039 1FE......
         3132GR HF 1 FREDDIE MAC Q06230 3.500% 02/01/42............... ..... 06/01/2012 Paydown..................................... ..........................                                            ............281,944 ............281,944 ............292,385             .......................0   .................0 .......(10,441) .................0 .........(10,441) ...............0 ............281,944 ...............0 ...............0 ...............0 ........2,745 02/01/2042 1FE......
         3132GS TW 9 FREDDIE MAC Q07465 3.500% 04/01/42............... ..... 06/01/2012 Paydown..................................... ..........................                                            ............124,387 ............124,387 ............128,390             .......................0   .................0 .........(4,004) .................0 ...........(4,004) ...............0 ............124,387 ...............0 ...............0 ...............0 ...........574 04/01/2042 1FE......
          31383S WV 8 Federal Natl Mtg Assn P 7.500% 10/01/29............... ..... 06/01/2012 Paydown..................................... ..........................                                      ...................378 ...................378 ...................377    ...................377     .................0 .................1 .................0 ...................1 ...............0 ...................378 ...............0 ...............0 ...............0 .............12 10/01/2029 1FE......
         31384U WS 9 Federal Natl Mtg Assn P 6.500% 10/01/28............... ..... 06/01/2012 Paydown..................................... ..........................                                       ..............12,719 ..............12,719 ..............12,749          ..............12,724       .................0 ................(5) .................0 ..................(5) ...............0 ..............12,719 ...............0 ...............0 ...............0 ...........344 10/01/2028 1FE......
          31385X LY 1 Federal Natl Mtg Assn 5.000% 09/01/33.................. ..... 04/05/2012 JP Morgan.................................. ..........................                                      .......27,742,840 .......25,558,396 .......27,179,757                    .......27,143,890         .................0 ........27,039 .................0 ..........27,039 ...............0 .......27,170,930 ...............0 .....571,911 .....571,911 .....465,021 09/01/2033 1FE......
          31385X LY 1 Federal Natl Mtg Assn 5.000% 09/01/33.................. ..... 04/01/2012 Paydown..................................... ..........................                                     .........1,011,680 .........1,011,680 .........1,075,858                .........1,074,439         .................0 .......(62,759) .................0 .........(62,759) ...............0 .........1,011,680 ...............0 ...............0 ...............0 ......16,861 09/01/2033 1FE......
         3138AX CF 6 Fannie Mae AJ5469 3.500% 11/01/41..................... ..... 06/01/2012 Paydown..................................... ..........................                                       ............714,866 ............714,866 ............721,791             ............721,739        .................0 .........(6,874) .................0 ...........(6,874) ...............0 ............714,866 ...............0 ...............0 ...............0 ......10,364 11/01/2041 1FE......
         31392G DB 8 Federal Natl Mtg Assn R 6.000% 12/25/32............... ..... 06/01/2012 Paydown..................................... ..........................                                       ............284,990 ............284,990 ............292,026             ............291,760        .................0 .........(6,770) .................0 ...........(6,770) ...............0 ............284,990 ...............0 ...............0 ...............0 ........6,372 12/25/2032 1FE......
         31392U RR 7 Federal Home Ln Mtg Cor 6.000% 09/15/32............. ..... 06/01/2012 Paydown..................................... ..........................                                         ............711,027 ............711,027 ............725,025             ............715,018        .................0 .........(3,991) .................0 ...........(3,991) ...............0 ............711,027 ...............0 ...............0 ...............0 ......17,756 09/15/2032 1FE......
         31394U G5 5 Federal Natl Mtg Assn R 6.000% 10/25/19............... ..... 06/01/2012 Paydown..................................... ..........................                                       .........1,669,117 .........1,669,117 .........1,694,153                .........1,668,661         .................0 .............455 .................0 ...............455 ...............0 .........1,669,117 ...............0 ...............0 ...............0 ......40,556 10/25/2019 1FE......
          31395B DF 7 Federal Natl Mtg Assn R 5.500% 03/25/36............... ..... 06/01/2012 Paydown..................................... ..........................                                      .........1,533,644 .........1,533,644 .........1,467,984                .........1,493,309         .................0 ........40,334 .................0 ..........40,334 ...............0 .........1,533,644 ...............0 ...............0 ...............0 ......35,477 03/25/2036 1FE......
         31395D SY 6 Federal Natl Mtg Assn R 6.000% 05/25/36............... ..... 06/01/2012 Paydown..................................... ..........................                                       .........1,435,687 .........1,435,687 .........1,413,479                .........1,419,472         .................0 ........16,215 .................0 ..........16,215 ...............0 .........1,435,687 ...............0 ...............0 ...............0 ......35,971 05/25/2036 1FE......
          31395E UL 9 Federal Home Ln Mtg Cor 6.000% 08/15/34............. ..... 06/01/2012 Paydown..................................... ..........................                                        ............935,246 ............935,246 ............949,368             ............940,238        .................0 .........(4,992) .................0 ...........(4,992) ...............0 ............935,246 ...............0 ...............0 ...............0 ......22,595 08/15/2034 1FE......
         31395N QJ 9 Federal Natl Mtg Assn R 6.500% 03/25/23............... ..... 06/01/2012 Paydown..................................... ..........................                                       .........2,359,158 .........2,359,158 .........2,407,816                .........2,374,745         .................0 .......(15,586) .................0 .........(15,586) ...............0 .........2,359,158 ...............0 ...............0 ...............0 ......75,570 03/25/2023 1FE......
         31395N Y2 7 Federal Natl Mtg Assn R 6.500% 07/25/36............... ..... 06/01/2012 Paydown..................................... ..........................                                       ............769,257 ............769,257 ............790,893             ............777,421        .................0 .........(8,163) .................0 ...........(8,163) ...............0 ............769,257 ...............0 ...............0 ...............0 ......21,234 07/25/2036 1FE......
          31395T KM 5 Federal Home Ln Mtg Cor 5.500% 11/15/33............. ..... 06/01/2012 Paydown..................................... ..........................                                        .........3,415,424 .........3,415,424 .........3,436,770                .........3,416,449         .................0 .........(1,025) .................0 ...........(1,025) ...............0 .........3,415,424 ...............0 ...............0 ...............0 ......80,052 11/15/2033 1FE......
          31396K L3 4 Federal Natl Mtg Assn R 6.500% 09/25/36............... ..... 06/01/2012 Paydown..................................... ..........................                                      .........1,091,707 .........1,091,707 .........1,116,270                .........1,105,252         .................0 .......(13,545) .................0 .........(13,545) ...............0 .........1,091,707 ...............0 ...............0 ...............0 ......30,907 09/25/2036 1FE......
          31396L CS 7 Federal Natl Mtg Assn R 6.500% 10/25/46............... ..... 06/01/2012 Paydown..................................... ..........................                                      ............386,226 ............386,226 ............391,508             ............388,941        .................0 .........(2,715) .................0 ...........(2,715) ...............0 ............386,226 ...............0 ...............0 ...............0 ......12,552 10/25/2046 1FE......
          31396P K7 5 Federal Natl Mtg Assn R 6.500% 08/25/36............... ..... 06/01/2012 Paydown..................................... ..........................                                      ............936,733 ............936,733 ............933,220             ............932,936        .................0 ..........3,796 .................0 ............3,796 ...............0 ............936,733 ...............0 ...............0 ...............0 ......27,374 08/25/2036 1FE......
             Statement as of June 30, 2012 of the              National Life Insurance Company
                                                                                                                                                                                                                            SCHEDULE D - PART 4
                                                                                                                                                Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
                     1                                               2                                    3          4                            5                               6                         7                          8                         9                        10                             Change in Book/Adjusted Carrying Value                                                               16                    17                 18                19             20             21  22
                                                                                                          F                                                                                                                                                                                                       11         12            13            14                                            15                                                                                                                 NAIC
                                                                                                          o                                                                                                                                                                                                                              Current                                                                                                Foreign                                                Bond               Desig-
                                                                                                          r                                                                                                                                                                         Prior Year                                           Year's                                                    Total                 Book/                 Exchange            Realized            Total         Interest/            nation
                                                                                                          e                                                                                                                                                                           Book/                 Unrealized     Current     Other Than       Total                                     Foreign              Adjusted                  Gain                Gain              Gain           Stock     Stated      or
                                                                                                          i                                                                  Number of                                                                                              Adjusted                 Valuation     Year's      Temporary     Change in                                   Exchange               Carrying                (Loss)              (Loss)            (Loss)        Dividends Contractual Market
                 CUSIP                                                                                    g     Disposal                                                     Shares of                                                                                               Carrying                Increase/ (Amortization)/ Impairment     B./A.C.V.                                  Change in              Value At                  on                  on                on          Received   Maturity Indicator
              Identification                                   Description                                n       Date                Name of Purchaser                        Stock               Consideration                 Par Value                Actual Cost                 Value                 (Decrease)    Accretion    Recognized    (11+12-13)                                  B./A.C.V.           Disposal Date             Disposal            Disposal          Disposal      During Year   Date      (a)

            31396T SL 8 Federal Home Ln Mtg Cor 6.000% 06/15/36............. ..... 06/01/2012 Paydown..................................... ..........................                            .........5,146,826         .........5,146,826         .........5,132,350       .........5,133,109         .................0   ........13,717       .................0   ..........13,717       ...............0   .........5,146,826         ...............0 ...............0     ...............0 .....123,034 06/15/2036 1FE......
            31397B VT 5 Federal Home Ln Mtg Cor 6.000% 03/15/35............. ..... 06/01/2012 Paydown..................................... ..........................                            ............382,304        ............382,304        ............387,382      ............382,290        .................0   ...............14    .................0   .................14    ...............0   ............382,304        ...............0 ...............0     ...............0 ........9,455 03/15/2035 1FE......
            31397H K5 6 Federal Home Ln Mtg Cor 5.900% 09/15/31............. ..... 06/01/2012 Paydown..................................... ..........................                            .........3,423,064         .........3,423,064         .........3,437,667       .........3,420,594         .................0   ..........2,470      .................0   ............2,470      ...............0   .........3,423,064         ...............0 ...............0     ...............0 ......87,324 09/15/2031 1FE......
            31402C PL 0 Federal Natl Mtg Assn 5.000% 11/01/33.................. ..... 06/01/2012 Paydown..................................... ..........................                         ............438,671        ............438,671        ............447,170      ............446,837        .................0   .........(8,166)     .................0   ...........(8,166)     ...............0   ............438,671        ...............0 ...............0     ...............0 ........9,105 11/01/2033 1FE......
            31402E 6W 3 Federal Natl Mtg Assn P 6.500% 09/01/33............... ..... 06/01/2012 Paydown..................................... ..........................                          ................1,238      ................1,238      ................1,291    ................1,280      .................0   ..............(41)   .................0   ................(41)   ...............0   ................1,238      ...............0 ...............0     ...............0 .............34 09/01/2033 1FE......
            31403F SB 1 Federal Natl Mtg Assn P 6.500% 10/01/33............... ..... 06/01/2012 Paydown..................................... ..........................                          ...................701     ...................701     ...................731   ...................725     .................0   ..............(23)   .................0   ................(23)   ...............0   ...................701     ...............0 ...............0     ...............0 .............19 10/01/2033 1FE......
           31403M WL 9 Federal Natl Mtg Assn P 6.500% 11/01/33............... ..... 06/01/2012 Paydown..................................... ..........................                           ...................844     ...................844     ...................880   ...................872     .................0   ..............(28)   .................0   ................(28)   ...............0   ...................844     ...............0 ...............0     ...............0 .............23 11/01/2033 1FE......
            31404L X6 2 Fannie Mae 772101 5.000% 10/01/33..................... ..... 06/01/2012 Paydown..................................... ..........................                          ............564,509        ............564,509        ............575,447      ............575,007        .................0   .......(10,497)      .................0   .........(10,497)      ...............0   ............564,509        ...............0 ...............0     ...............0 ......11,333 10/01/2033 1FE......
            31405F D4 1 Federal Natl Mtg Assn P 6.500% 01/01/33............... ..... 06/01/2012 Paydown..................................... ..........................                          ................5,671      ................5,671      ................5,911    ................5,897      .................0   ............(225)    .................0   ..............(225)    ...............0   ................5,671      ...............0 ...............0     ...............0 ...........154 01/01/2033 1FE......
            31407B TX 7 Federal Natl Mtg Assn P 5.000% 07/01/35............... ..... 06/01/2012 Paydown..................................... ..........................                          ............256,410        ............256,410        ............240,404      ............241,132        .................0   ........15,277       .................0   ..........15,277       ...............0   ............256,410        ...............0 ...............0     ...............0 ........5,322 07/01/2035 1FE......
            31412P CF 6 Federal Natl Mtg Assn 4.500% 03/01/29.................. ..... 06/01/2012 Paydown..................................... ..........................                         .........2,980,413         .........2,980,413         .........2,923,599       .........2,925,273         .................0   ........55,140       .................0   ..........55,140       ...............0   .........2,980,413         ...............0 ...............0     ...............0 ......53,890 03/01/2029 1FE......
           31416M 3A 0 Fannie Mae AA4392 4.000% 04/01/39..................... ..... 06/01/2012 Paydown..................................... ..........................                           ............897,371        ............897,371        ............906,906      ............906,748        .................0   .........(9,377)     .................0   ...........(9,377)     ...............0   ............897,371        ...............0 ...............0     ...............0 ......14,840 04/01/2039 1FE......
           31416W JZ 6 Fannie Mae AB1179 4.500% 02/01/35..................... ..... 06/01/2012 Paydown..................................... ..........................                           ............140,228        ............140,228        ............145,925      ............145,740        .................0   .........(5,512)     .................0   ...........(5,512)     ...............0   ............140,228        ...............0 ...............0     ...............0 ........2,938 02/01/2035 1FE......
            31417K LX 3 Fannie Mae AC1241 5.000% 07/01/39.................... ..... 06/01/2012 Paydown..................................... ..........................                           ............858,413        ............858,413        ............876,654      ............876,165        .................0   .......(17,752)      .................0   .........(17,752)      ...............0   ............858,413        ...............0 ...............0     ...............0 ......17,599 07/01/2039 1FE......
            31418A DV 7 Fannie Mae MA1015 3.000% 03/01/42.................... ..... 06/01/2012 Paydown..................................... ..........................                           ............104,780        ............104,780        ............104,567      .......................0   .................0   .............213     .................0   ...............213     ...............0   ............104,780        ...............0 ...............0     ...............0 ...........543 03/01/2042 1FE......
QE05.1




            31419B 7B 5 Fannie Mae AE1789 4.000% 10/01/40..................... ..... 06/01/2012 Paydown..................................... ..........................                          .........2,286,430         .........2,286,430         .........2,315,725       .........2,315,395         .................0   .......(28,964)      .................0   .........(28,964)      ...............0   .........2,286,430         ...............0 ...............0     ...............0 ......37,026 10/01/2040 1FE......
            31419C 2B 8 Fannie Mae AE2569 3.500% 09/01/40..................... ..... 06/01/2012 Paydown..................................... ..........................                          .........1,361,978         .........1,361,978         .........1,290,581       .........1,291,772         .................0   ........70,206       .................0   ..........70,206       ...............0   .........1,361,978         ...............0 ...............0     ...............0 ......18,701 09/01/2040 1FE......
            31419C ZF 3 Fannie Mae AE2541 3.500% 09/01/40..................... ..... 06/01/2012 Paydown..................................... ..........................                          ............951,306        ............951,306        ............905,710      ............906,096        .................0   ........45,210       .................0   ..........45,210       ...............0   ............951,306        ...............0 ...............0     ...............0 ......14,461 09/01/2040 1FE......
            31419C ZJ 5 Fannie Mae AE2544 3.500% 09/01/40..................... ..... 06/01/2012 Paydown..................................... ..........................                          .........1,067,975         .........1,067,975         .........1,075,985       .........1,075,838         .................0   .........(7,864)     .................0   ...........(7,864)     ...............0   .........1,067,975         ...............0 ...............0     ...............0 ......15,890 09/01/2040 1FE......
           38373M 4Z 0 Government Natl Mtg Assn 1.571% 10/16/48........... ..... 06/01/2012 Paydown..................................... ..........................                              .......................0   .......................0   ............230,596      ............229,485        .................0   .....(229,485)       .................0   .......(229,485)       ...............0   .......................0   ...............0 ...............0     ...............0 ......30,645 10/16/2048 1FE......
           38376G ZX 1 Government Natl Mtg Assn 1.215% 04/16/37........... ..... 06/01/2012 Paydown..................................... ..........................                              .......................0   .......................0   ..............44,057     ..............43,293       .................0   .......(43,293)      .................0   .........(43,293)      ...............0   .......................0   ...............0 ...............0     ...............0 ........3,068 04/16/2037 1FE......
            3837H0 JB 0 Government Natl Mtg Assn 8.050% 06/16/25........... ..... 06/01/2012 Paydown..................................... ..........................                             ................2,639      ................2,639      ................2,717    ................2,683      .................0   ..............(44)   .................0   ................(44)   ...............0   ................2,639      ...............0 ...............0     ...............0 .............90 06/16/2025 1FE......
            911760 JT 4 US Dept Veterans Affair 7.073% 04/15/26................ ..... 06/01/2012 Paydown..................................... ..........................                         ..............29,097       ..............29,097       ..............29,092     ..............29,080       .................0   ...............17    .................0   .................17    ...............0   ..............29,097       ...............0 ...............0     ...............0 ...........734 04/15/2026 1FE......
            92261U AC 8 VA Vende Mtg Trust REMIC 0.498% 01/15/37......... ..... 06/01/2012 Paydown..................................... ..........................                               .......................0   .......................0   ..............38,895     ..............52,510       .................0   .......(52,510)      .................0   .........(52,510)      ...............0   .......................0   ...............0 ...............0     ...............0 .....(31,679) 01/15/2037 1FE......
         3199999.              Total - Bonds - U.S. Special Revenue & Assessment..............................................................................................................    .......75,858,916          .......73,674,472         .......75,669,162         .......75,006,261         .................0   .....(244,597)       .................0   .......(244,597)       ...............0    .......75,287,006         ...............0 .....571,911        .....571,911 ..1,486,085 ......XXX... ..XXX....
         Bonds - Industrial and Miscellaneous
           00111@ AA 2 AES Hawaii Inc 6.870% 06/30/22............................. ..... 06/30/2012 Redemption 100.0000............ ..........................                                   ............116,000        ............116,000        ............116,000      ............116,000        .................0   .................0   .................0   ...................0   ...............0 ............116,000 ...............0           ...............0   ...............0 ........3,985 06/30/2022 3...........
           03235M AA 0 Amtrak Penn Stn Lease T 9.250% 06/15/17............. ..... 06/15/2012 Redemption 100.0000............ ..........................                                          ............260,133        ............260,133        ............260,133      ............260,133        .................0   .................0   .................0   ...................0   ...............0 ............260,133 ...............0           ...............0   ...............0 ......12,356 06/15/2017 1...........
            04004# AA 2 Center Operating Company 8.200% 09/30/23........... ..... 06/30/2012 Redemption 100.0000............ ..........................                                          ..............79,445       ..............79,445       ..............79,445     ..............79,445       .................0   .................0   .................0   ...................0   ...............0 ..............79,445 ...............0          ...............0   ...............0 ........3,257 09/30/2023 3FE......
             08181* AC 8 Wal-Mart 1st Mtg 9.450% 01/10/17........................... ..... 06/10/2012 Redemption 100.0000............ ..........................                                 ............119,659        ............119,659        ............119,659      ............119,659        .................0   .................0   .................0   ...................0   ...............0 ............119,659 ...............0           ...............0   ...............0 ........4,717 01/10/2017 1FE......
           08861@ AA 7 Walgreen Company 6.043% 08/15/31...................... ..... 06/15/2012 Redemption 100.0000............ ..........................                                        ..............15,549       ..............15,549       ..............15,549     ..............15,549       .................0   .................0   .................0   ...................0   ...............0 ..............15,549 ...............0          ...............0   ...............0 ...........392 08/15/2031 1FE......
            126410 LN 7 CSX Equipment Trust Cer 8.375% 10/15/14............. ..... 04/15/2012 Redemption 100.0000............ ..........................                                         ............143,240        ............143,240        ............143,240      ............143,240        .................0   .................0   .................0   ...................0   ...............0 ............143,240 ...............0           ...............0   ...............0 ........5,998 10/15/2014 1FE......
            14059# AB 3 Capitol City Property M 6.530% 06/01/21................. ..... 06/01/2012 Redemption 100.0000............ ..........................                                     ............152,313        ............152,313        ............152,313      ............152,313        .................0   .................0   .................0   ...................0   ...............0 ............152,313 ...............0           ...............0   ...............0 ........4,973 06/01/2021 1...........
            15405C CP 5 Central Maine Power Co 6.650% 05/29/12............... ..... 05/29/2012 Maturity...................................... ..........................                         .........8,000,000         .........8,000,000         .........7,963,040       .........7,998,948         .................0   ..........1,052      .................0   ............1,052      ...............0 .........8,000,000 ...............0            ...............0   ...............0 .....396,044 05/29/2012 2FE......
           17880@ AA 5 Columbia Gas Of Ohio (les 9.350% 06/01/14............ ..... 06/01/2012 Redemption 100.0000............ ..........................                                         ............186,758        ............186,758        ............186,758      ............186,758        .................0   .................0   .................0   ...................0   ...............0 ............186,758 ...............0           ...............0   ...............0 ........8,731 06/01/2014 2...........
            21079U AA 3 CONTINENTAL AIRLINES IN 7.250% 11/10/19....... ..... 05/10/2012 Redemption 100.0000............ ..........................                                               ..............25,113       ..............25,113       ..............25,113     ..............25,113       .................0   .................0   .................0   ...................0   ...............0 ..............25,113 ...............0          ...............0   ...............0 ...........910 11/10/2019 2FE......
           22944@ AA 9 Fusco Park Street Serie 6.460% 07/15/26................ ..... 06/15/2012 Redemption 100.0000............ ..........................                                       ............147,767        ............147,767        ............147,767      ............147,767        .................0   .................0   .................0   ...................0   ...............0 ............147,767 ...............0           ...............0   ...............0 ........3,980 07/15/2026 1FE......
            25746U AJ 8 Dominion Resources Inc 6.250% 06/30/12............... ..... 06/30/2012 Maturity...................................... ..........................                         .........4,000,000         .........4,000,000         .........3,992,600       .........3,999,517         .................0   .............483     .................0   ...............483     ...............0 .........4,000,000 ...............0            ...............0   ...............0 .....125,000 06/30/2012 2FE......
            277432 AE 0 Eastman Chemical 7.000% 04/15/12........................ ..... 04/15/2012 Maturity...................................... ..........................                      .........5,000,000         .........5,000,000         .........4,958,700       .........4,998,393         .................0   ..........1,607      .................0   ............1,607      ...............0 .........5,000,000 ...............0            ...............0   ...............0 .....175,000 04/15/2012 2FE......
             31953* AL 6 BNSF Railway Series A N 5.960% 10/15/27............. ..... 05/15/2012 Redemption 100.0000............ ..........................                                        ..............65,848       ..............65,848       ..............65,848     ..............65,848       .................0   .................0   .................0   ...................0   ...............0 ..............65,848 ...............0          ...............0   ...............0 ........1,962 10/15/2027 1...........
             31953* AM 4 BNSF Railway Series B N 5.960% 10/15/27............. ..... 05/15/2012 Redemption 100.0000............ ..........................                                        ................6,666      ................6,666      ................6,666    ................6,666      .................0   .................0   .................0   ...................0   ...............0 ................6,666 ...............0         ...............0   ...............0 ...........199 10/15/2027 1...........
             31953* AN 2 BNSF Railway Series C N 5.960% 10/15/27............. ..... 05/15/2012 Redemption 100.0000............ ..........................                                        ..............42,184       ..............42,184       ..............42,184     ..............42,184       .................0   .................0   .................0   ...................0   ...............0 ..............42,184 ...............0          ...............0   ...............0 ........1,257 10/15/2027 1...........
             31953* AP 7 BNSF Railway Series D N 5.960% 10/15/27............. ..... 05/15/2012 Redemption 100.0000............ ..........................                                        ..............17,084       ..............17,084       ..............17,084     ..............17,084       .................0   .................0   .................0   ...................0   ...............0 ..............17,084 ...............0          ...............0   ...............0 ...........509 10/15/2027 1...........
             31953* AQ 5 BNSF Railway Series E N 5.960% 10/15/27............. ..... 05/15/2012 Redemption 100.0000............ ..........................                                        ..............22,661       ..............22,661       ..............22,661     ..............22,661       .................0   .................0   .................0   ...................0   ...............0 ..............22,661 ...............0          ...............0   ...............0 ...........675 10/15/2027 1...........
             Statement as of June 30, 2012 of the                    National Life Insurance Company
                                                                                                                                                                                                                                                  SCHEDULE D - PART 4
                                                                                                                                                                Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
                       1                                                     2                                        3           4                               5                                    6                          7                          8                          9                         10                             Change in Book/Adjusted Carrying Value                                                           16                 17               18               19              20              21 22
                                                                                                                      F                                                                                                                                                                                                                   11         12            13            14                                           15                                                                                                         NAIC
                                                                                                                      o                                                                                                                                                                                                                                          Current                                                                                          Foreign                                             Bond               Desig-
                                                                                                                      r                                                                                                                                                                                     Prior Year                                           Year's                                                    Total               Book/             Exchange         Realized           Total          Interest/            nation
                                                                                                                      e                                                                                                                                                                                       Book/                 Unrealized     Current     Other Than       Total                                     Foreign            Adjusted              Gain             Gain             Gain            Stock     Stated      or
                                                                                                                      i                                                                          Number of                                                                                                  Adjusted                 Valuation     Year's      Temporary     Change in                                   Exchange             Carrying            (Loss)           (Loss)           (Loss)         Dividends Contractual Market
                  CUSIP                                                                                               g      Disposal                                                            Shares of                                                                                                   Carrying                Increase/ (Amortization)/ Impairment     B./A.C.V.                                  Change in            Value At              on               on               on           Received   Maturity Indicator
               Identification                                         Description                                     n        Date                   Name of Purchaser                            Stock                 Consideration                 Par Value                Actual Cost                   Value                 (Decrease)    Accretion    Recognized    (11+12-13)                                  B./A.C.V.         Disposal Date         Disposal         Disposal         Disposal       During Year   Date      (a)

             31953* AR 3 BNSF Railway Series F N 5.960% 12/13/27............. ..... 05/15/2012 Redemption 100.0000............ ..........................                                                              ..............19,974       ..............19,974       ..............19,974       ..............19,974       .................0   .................0   .................0   ...................0   ...............0 ..............19,974 ...............0 ...............0 ...............0 ...........595 12/13/2027 1...........
             33632* UJ 4 Phillips Petroleum Alaska 7.950% 12/10/20.............. ..... 06/10/2012 Redemption 100.0000............ ..........................                                                           ............102,462        ............102,462        ............102,462        ............102,462        .................0   .................0   .................0   ...................0   ...............0 ............102,462 ...............0 ...............0 ...............0 ........3,397 12/10/2020 1...........
            35669# AA 2 Freeport LNG Development 6.500% 12/19/25.......... ..... 06/30/2012 Redemption 100.0000............ ..........................                                                                 ............118,303        ............118,303        ............118,303        ............118,303        .................0   .................0   .................0   ...................0   ...............0 ............118,303 ...............0 ...............0 ...............0 ........3,845 06/30/2025 2FE......
            36962G 5J 9 General Electric Capital 4.650% 10/17/21................. ..... 06/26/2012 Goldman Sachs & Company....... ..........................                                                           .........5,526,000         .........5,000,000         .........5,354,650         .......................0   .................0   .........(7,372)     .................0   ...........(7,372)     ...............0 .........5,347,278 ...............0 .....178,722 .....178,722 .....162,750 10/17/2021 1FE......
            444168 DH 8 Hudson United Bank 7.000% 05/15/12..................... ..... 05/15/2012 Maturity...................................... ..........................                                             .........1,500,000         .........1,500,000         .........1,632,615         .........1,507,631         .................0   .........(7,631)     .................0   ...........(7,631)     ...............0 .........1,500,000 ...............0 ...............0 ...............0 ......52,500 05/15/2012 1FE......
            489170 AB 6 KENNAMETAL INC 7.200% 06/15/12....................... ..... 06/15/2012 Maturity...................................... ..........................                                               .........5,000,000         .........5,000,000         .........5,000,000         .........5,000,000         .................0   .................0   .................0   ...................0   ...............0 .........5,000,000 ...............0 ...............0 ...............0 .....180,000 06/15/2012 2FE......
            494492 AA 9 Kincaid Generation 144A 7.330% 06/15/20............... ..... 06/15/2012 Redemption 100.0000............ ..........................                                                             ............191,690        ............191,690        ............191,690        ............191,690        .................0   .................0   .................0   ...................0   ...............0 ............191,690 ...............0 ...............0 ...............0 ........7,025 06/15/2020 2FE......
            56602# AA 8 Marriott International 8.550% 11/17/22.................... ..... 06/17/2012 Redemption 100.0000............ ..........................                                                         ............100,994        ............100,994        ............100,994        ............100,994        .................0   .................0   .................0   ...................0   ...............0 ............100,994 ...............0 ...............0 ...............0 ........3,601 11/17/2022 2...........
            59156R AX 6 Metlife Inc 4.750% 02/08/21..................................... ..... 06/26/2012 Credit Suisse.............................. ..........................                                       .........6,598,984         .........5,940,000         .........6,558,354         .......................0   .................0   .......(22,815)      .................0   .........(22,815)      ...............0 .........6,535,539 ...............0 ......63,445 ......63,445 .....110,509 02/08/2021 1FE......
            598326 AA 4 Midwest ISO 144A 8.750% 06/01/12........................ ..... 06/01/2012 Maturity...................................... ..........................                                            .........6,000,000         .........6,000,000         .........5,971,500         .........5,998,450         .................0   ..........1,550      .................0   ............1,550      ...............0 .........6,000,000 ...............0 ...............0 ...............0 .....262,500 06/01/2012 1FE......
            61910D DC 3 Mortgage Capital Funding 1.989% 11/20/12............. ..... 06/01/2012 Paydown..................................... ..........................                                                 .......................0   .......................0   .......................0   .......................0   .................0   .................0   .................0   ...................0   ...............0 .......................0 ...............0 ...............0 ...............0 .............33 11/20/2012 5FE......
             62425* AA 5 Mountain Prairie Wind N 6.560% 03/25/30............... ..... 06/15/2012 Redemption 100.0000............ ..........................                                                            ..............58,979       ..............58,979       ..............58,979       ..............58,979       .................0   .................0   .................0   ...................0   ...............0 ..............58,979 ...............0 ...............0 ...............0 ........1,935 03/25/2030 2FE......
            62963# AA 9 Natural Resource Partners 5.550% 06/19/23............ ..... 06/19/2012 Redemption 100.0000............ ..........................                                                              ............137,500        ............137,500        ............137,500        ............137,500        .................0   .................0   .................0   ...................0   ...............0 ............137,500 ...............0 ...............0 ...............0 ........3,816 06/19/2023 2...........
            63615# AB 7 National Football League 6.560% 10/15/17............... ..... 04/15/2012 Redemption 100.0000............ ..........................                                                            ............235,263        ............235,263        ............235,263        ............235,263        .................0   .................0   .................0   ...................0   ...............0 ............235,263 ...............0 ...............0 ...............0 ........7,717 10/15/2017 1...........
            637640 AD 5 National Semiconductor 6.150% 06/15/12............... ..... 06/15/2012 Maturity...................................... ..........................                                               .........5,000,000         .........5,000,000         .........4,998,550         .........4,999,846         .................0   .............154     .................0   ...............154     ...............0 .........5,000,000 ...............0 ...............0 ...............0 .....153,750 06/15/2012 1FE......
QE05.2




             64079* AB 8 Neptune Regional 6.210% 06/30/27......................... ..... 06/30/2012 Redemption 100.0000............ ..........................                                                         ..............40,504       ..............40,504       ..............40,504       ..............40,504       .................0   .................0   .................0   ...................0   ...............0 ..............40,504 ...............0 ...............0 ...............0 ........1,258 06/30/2027 2FE......
             69359* AA 0 PGA Tour Investments 7.400% 06/15/19.................. ..... 06/15/2012 Redemption 100.0000............ ..........................                                                            ............214,821        ............214,821        ............214,821        ............214,821        .................0   .................0   .................0   ...................0   ...............0 ............214,821 ...............0 ...............0 ...............0 ........7,948 06/15/2019 5...........
            795770 AN 6 Salton Sea Funding 7.475% 11/30/18....................... ..... 05/31/2012 Redemption 100.0000............ ..........................                                                          ............145,735        ............145,735        ............145,735        ............145,735        .................0   .................0   .................0   ...................0   ...............0 ............145,735 ...............0 ...............0 ...............0 ........5,447 11/30/2018 2FE......
            827065 AA 1 SILICON VALLEY BANK 5.700% 06/01/12............... ..... 06/01/2012 Maturity...................................... ..........................                                                  ............125,000        ............125,000        ............116,875        ............123,708        .................0   ..........1,292      .................0   ............1,292      ...............0 ............125,000 ...............0 ...............0 ...............0 ........3,563 06/01/2012 1FE......
            844895 AS 1 Southwest Gas Corp 7.625% 05/15/12..................... ..... 05/15/2012 Maturity...................................... ..........................                                             .........3,000,000         .........3,000,000         .........2,988,720         .........2,999,422         .................0   .............578     .................0   ...............578     ...............0 .........3,000,000 ...............0 ...............0 ...............0 .....114,375 05/15/2012 2FE......
            861832 A# 0 Stonehenge Capital Fund 8.424% 12/15/16.............. ..... 06/15/2012 Redemption 100.0000............ ..........................                                                              ..............24,739       ..............24,739       ..............24,739       ..............24,739       .................0   .................0   .................0   ...................0   ...............0 ..............24,739 ...............0 ...............0 ...............0 ........1,042 12/15/2016 1...........
            87612# AA 1 Target Corporation 5.066% 01/15/25........................ ..... 06/15/2012 Redemption 100.0000............ ..........................                                                         ............100,651        ............100,651        ............100,651        ............100,651        .................0   .................0   .................0   ...................0   ...............0 ............100,651 ...............0 ...............0 ...............0 ........2,126 01/15/2025 1FE......
            87941# AB 1 Teleglobe Marine Inc 7.120% 04/15/15..................... ..... 04/16/2012 Direct-Private Placement............ ..........................                                                     .......................0   .........1,540,611         .......................0   .......................0   .................0   .................0   .................0   ...................0   ...............0 .......................0 ...............0 ...............0 ...............0 ..1,190,034 11/30/2025 6*.........
            88031V AA 7 Tenaska Gateway Partner 6.052% 12/30/23............. ..... 03/30/2012 Redemption 100.0000............ ..........................                                                               ..............65,907       ..............65,907       ..............65,939       ..............65,932       .................0   .................0   .................0   ...................0   ...............0 ..............65,932 ...............0 ............(25) ............(25) ...........997 12/30/2023 2FE......
            909279 BF 7 UNITED AIRLINES INC 9.875% 08/01/13................ ..... 05/08/2012 Call 103.0000........................ ..........................                                                          ............103,000        ............100,000        ............102,250        ............100,884        .................0   ............(278)    .................0   ..............(278)    ...............0 ............100,606 ...............0 ........2,394 ........2,394 ........7,598 02/01/2013 3FE......
            94978# AH 0 CVS Corporation 7.530% 01/10/24........................... ..... 06/10/2012 Redemption 100.0000............ ..........................                                                         ..............73,882       ..............73,882       ..............73,882       ..............73,882       .................0   .................0   .................0   ...................0   ...............0 ..............73,882 ...............0 ...............0 ...............0 ........2,310 01/10/2024 2...........
            981468 AA 9 World Financial Props T 6.910% 09/01/13................ ..... 06/01/2012 Redemption 100.0000............ ..........................                                                            ..............49,846       ..............49,846       ..............49,846       ..............49,846       .................0   .................0   .................0   ...................0   ...............0 ..............49,846 ...............0 ...............0 ...............0 ........1,436 09/01/2013 1FM.....
            981469 AA 7 World Financial Props T 6.950% 09/01/13................ ..... 06/07/2012 Call 100.0000........................ ..........................                                                      .........1,409,527         .........1,409,527         .........1,409,527         .........1,409,527         .................0   .................0   .................0   ...................0   ...............0 .........1,409,527 ...............0 ...............0 ...............0 .....107,498 09/01/2013 ?...........
            981469 AA 7 World Financial Props T 6.950% 09/01/13................ ..... 06/01/2012 Redemption 100.0000............ ..........................                                                            ............267,517        ............267,517        ............267,517        ............267,517        .................0   .................0   .................0   ...................0   ...............0 ............267,517 ...............0 ...............0 ...............0 ......11,476 09/01/2013 ?...........
           C4566@ AA 1 Ifastgroupe And Company 7.290% 03/23/04............. A.. 06/01/2012 Distribution................................. ..........................                                                    .......................0   .......................1   .......................1   .......................0   .................1   .................0   .................0   ...................1   ...............0 .......................1 ...............0 ..............(1) ..............(1) .....103,831 11/30/2025 6...........
             22268* AF 8 Akzo Nobel Finance US I 7.520% 04/23/12.............. F... 04/23/2012 Maturity...................................... ..........................                                                .......10,000,000          .......10,000,000          .......10,000,000          .......10,000,000         .................0   .................0   .................0   ...................0   ...............0 .......10,000,000 ...............0 ...............0 ...............0 .....376,000 04/23/2012 2...........
            35177P AT 4 France Telecom 5.375% 07/08/19............................ F... 06/26/2012 Nomura Securities...................... ..........................                                                  .........5,650,500         .........5,000,000         .........5,142,596         .........5,115,498         .................0   .........(6,522)     .................0   ...........(6,522)     ...............0 .........5,108,976 ...............0 .....541,524 .....541,524 .....262,031 07/08/2019 1FE......
            9612EA AA 3 WESTPAC SECURITIES NZ L 2.500% 05/25/12..... F... 05/25/2012 Maturity...................................... ..........................                                                         ............250,000        ............250,000        ............250,933        ............250,135        .................0   ............(135)    .................0   ..............(135)    ...............0 ............250,000 ...............0 ...............0 ...............0 ........3,125 05/25/2012 1FE......
             97180* SR 0 Airbus Industries Reg 8.740% 06/29/15.................... F... 06/29/2012 Redemption 100.0000............ ..........................                                                          ............113,789        ............113,789        ............113,789        ............113,789        .................0   .................0   .................0   ...................0   ...............0 ............113,789 ...............0 ...............0 ...............0 ........4,973 06/29/2015 1...........
             97180* SS 8 Airbus Industries Reg 8.740% 06/29/15.................... F... 06/29/2012 Redemption 100.0000............ ..........................                                                          ............113,789        ............113,789        ............113,789        ............113,789        .................0   .................0   .................0   ...................0   ...............0 ............113,789 ...............0 ...............0 ...............0 ........4,973 06/29/2015 1...........
             97180* ST 6 Airbus Industries Reg 8.740% 06/29/15.................... F... 06/29/2012 Redemption 100.0000............ ..........................                                                          ............113,789        ............113,789        ............113,789        ............113,789        .................0   .................0   .................0   ...................0   ...............0 ............113,789 ...............0 ...............0 ...............0 ........4,973 06/29/2015 1...........
             97180* SU 3 Airbus Industries Reg 8.740% 06/29/15.................... F... 06/29/2012 Redemption 100.0000............ ..........................                                                          ............113,789        ............113,789        ............113,789        ............113,789        .................0   .................0   .................0   ...................0   ...............0 ............113,789 ...............0 ...............0 ...............0 ........4,973 06/29/2015 1...........
            H2654# AA 1 Flughafen Zurich AG 6.330% 04/11/15..................... F... 04/11/2012 Redemption 100.0000............ ..........................                                                            .........1,000,000         .........1,000,000         .........1,000,000         .........1,000,000         .................0   .................0   .................0   ...................0   ...............0 .........1,000,000 ...............0 ...............0 ...............0 ......31,650 04/11/2015 1...........
         3899999.           Total - Bonds - Industrial & Miscellaneous...............................................................................................................................                   .......71,967,354          .......71,669,482          .......71,245,286          .......59,306,327         .................1   .......(38,037)      .................0   .........(38,036)      ...............0 .......71,181,295 ...............0 .....786,059 .....786,059 ..3,957,555 ......XXX... ..XXX....
         8399997.           Total - Bonds - Part 4..............................................................................................................................................................        .....149,450,102           .....146,967,786           .....148,533,630           .....135,926,994          .................1   .....(273,208)       .................0   .......(273,207)       ...............0 .....148,092,133 ...............0 ..1,357,970 ..1,357,970 ..5,493,706 ......XXX... ..XXX....
         8399999.           Total - Bonds...........................................................................................................................................................................    .....149,450,102           .....146,967,786           .....148,533,630           .....135,926,994          .................1   .....(273,208)       .................0   .......(273,207)       ...............0 .....148,092,133 ...............0 ..1,357,970 ..1,357,970 ..5,493,706 ......XXX... ..XXX....
         Common Stocks - Industrial and Miscellaneous
           00141M 57 2 AIM Global Equity...................................................... ..... 06/20/2012 Sentinel Group Fds..................... ................2.000                                          .....................19 ............XXX....... .....................30 .....................18 ...............12 .................0 .................0 .................12 ...............0 .....................30 ...............0 ............(11) ............(11) ...............0 ......XXX... L...........
            315805 42 4 Fidelity Advisors Lever............................................... ..... 06/20/2012 Sentinel Group Fds..................... ................0.000                                          .......................6 ............XXX....... .......................6 .......................5 .................0 .................0 .................0 ...................0 ...............0 .......................6 ...............0 ...............1 ...............1 ...............0 ......XXX... L...........
            817270 20 0 Sentinel Group Fds Inc.............................................. ..... 06/27/2012 Sentinel Group Fds..................... .........4,250.000                                               ..............74,424 ............XXX....... ..............50,969 ..............69,954 .......(18,984) .................0 .................0 .........(18,984) ...............0 ..............50,969 ...............0 ......23,455 ......23,455 ...........339 ......XXX... L...........
             Statement as of June 30, 2012 of the                  National Life Insurance Company
                                                                                                                                                                                                                                        SCHEDULE D - PART 4
                                                                                                                                                          Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
                      1                                                   2                                      3           4                              5                                   6                        7                        8                       9                      10                           Change in Book/Adjusted Carrying Value                                                    16                   17               18                19                 20                22
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    21
                                                                                                                 F                                                                                                                                                                                                     11         12            13            14                                    15                                                                                                              NAIC
                                                                                                                 o                                                                                                                                                                                                                            Current                                                                                    Foreign                                                 Bond               Desig-
                                                                                                                 r                                                                                                                                                                          Prior Year                                        Year's                                             Total               Book/              Exchange          Realized            Total            Interest/            nation
                                                                                                                 e                                                                                                                                                                            Book/              Unrealized     Current     Other Than       Total                              Foreign            Adjusted               Gain              Gain              Gain              Stock     Stated      or
                                                                                                                 i                                                                       Number of                                                                                          Adjusted              Valuation     Year's      Temporary     Change in                            Exchange             Carrying             (Loss)            (Loss)            (Loss)           Dividends Contractual Market
                  CUSIP                                                                                          g      Disposal                                                         Shares of                                                                                           Carrying             Increase/ (Amortization)/ Impairment     B./A.C.V.                           Change in            Value At               on                on                on             Received   Maturity Indicator
               Identification                                      Description                                   n        Date                  Name of Purchaser                          Stock                Consideration               Par Value               Actual Cost               Value              (Decrease)    Accretion    Recognized    (11+12-13)                           B./A.C.V.         Disposal Date          Disposal          Disposal          Disposal         During Year   Date      (a)

            817270 30 9 Sentinel Group Fds Inc.............................................. ..... 06/27/2012 Sentinel Group Fds..................... .........2,668.000                                       ..............83,494     ............XXX.......   ..............86,201    ..............82,941 ..........3,260 .................0 .................0 ............3,260 ...............0 ..............86,201 ...............0             .......(2,707)    .......(2,707)    ...........319     ......XXX...   L...........
            817270 50 7 Sentinel Group Fds Inc.............................................. ..... 06/27/2012 Sentinel Group Fds..................... .........4,723.000                                       ..............84,009     ............XXX.......   ..............48,672    ..............83,690 .......(35,018) .................0 .................0 .........(35,018) ...............0 ..............48,672 ...............0             ......35,337      ......35,337      ...............0   ......XXX...   L...........
            817270 56 4 Sentinel Group Fds Inc.............................................. ..... 05/23/2012 Sentinel Group Fds..................... .........1,841.000                                       ..............22,056     ............XXX.......   ..............20,470    ..............21,725 .........(1,255) .................0 .................0 ...........(1,255) ...............0 ..............20,470 ...............0           ........1,585     ........1,585     ...........129     ......XXX...   L...........
            817270 60 6 Sentinel Group Fds Inc.............................................. ..... 06/27/2012 Sentinel Group Fds..................... .........5,139.000                                       ..............55,283     ............XXX.......   ..............56,554    ..............55,292 ..........1,262 .................0 .................0 ............1,262 ...............0 ..............56,554 ...............0             .......(1,271)    .......(1,271)    ...........561     ......XXX...   L...........
            817270 80 4 Sentinel Group Fds Inc.............................................. ..... 06/27/2012 Sentinel Group Fds..................... .........9,920.000                                       ..............72,596     ............XXX.......   ..............40,707    ..............72,219 .......(31,513) .................0 .................0 .........(31,513) ...............0 ..............40,707 ...............0             ......31,889      ......31,889      ...............0   ......XXX...   L...........
            817270 85 3 Sentinel Group Fds Inc.............................................. ..... 06/27/2012 Sentinel Group Fds..................... .........6,413.000                                       ..............58,698     ............XXX.......   ..............58,910    ..............58,810 .............100 .................0 .................0 ...............100 ...............0 ..............58,910 ...............0           ..........(211)   ..........(211)   ...........438     ......XXX...   L...........
            817270 88 7 Sentinel Group Fds Inc.............................................. ..... 06/27/2012 Sentinel Group Fds..................... .......33,265.000                                        ............473,291      ............XXX.......   ............504,449     ............130,743 .......(15,548) .................0 .................0 .........(15,548) ...............0 ............504,449 ...............0               .....(31,158)     .....(31,158)     ...............0   ......XXX...   L...........
           81728B 10 6 Sentinel Group Fds Inc.............................................. ..... 06/27/2012 Sentinel Group Fds..................... ............212.000                                       ................4,091    ............XXX.......   ................4,046   ................3,998 ...............48 .................0 .................0 .................48 ...............0 ................4,046 ...............0       .............46   .............46   ...............0   ......XXX...   L...........
         9099999.           Total - Common Stocks - Industrial & Miscellaneous...............................................................................................................                  ............927,967      ...........XXX........   ............871,014     ............579,395 .......(97,636) .................0 .................0 .........(97,636) ...............0 ............871,014 ...............0               ......56,955      ......56,955      ........1,786      ......XXX...   ..XXX....
         Common Stocks - Mutual Funds
            817270 37 4 Sentinel Group Fds Inc.............................................. ..... 06/27/2012 Sentinel Group Fds..................... ............166.000                                      ...................166   ............XXX.......   ...................166 .......................0 .................0 .................0 .................0 ...................0 ...............0 ...................166 ...............0 ...............0 ...............0 ...............0      ......XXX...   L...........
         9299999.           Total - Common Stocks - Mutual Funds..................................................................................................................................             ...................166   ...........XXX........   ...................166 .......................0 .................0 .................0 .................0 ...................0 ...............0 ...................166 ...............0 ...............0 ...............0 ...............0      ......XXX...   ..XXX....
         9799997            Total - Common Stocks - Part 4..............................................................................................................................................       ............928,133      ...........XXX........   ............871,180 ............579,395 .......(97,636) .................0 .................0 .........(97,636) ...............0 ............871,180 ...............0 ......56,955 ......56,955 ........1,786                                  ......XXX...   ..XXX....
         9799999.           Total - Common Stocks...........................................................................................................................................................   ............928,133      ...........XXX........   ............871,180 ............579,395 .......(97,636) .................0 .................0 .........(97,636) ...............0 ............871,180 ...............0 ......56,955 ......56,955 ........1,786                                  ......XXX...   ..XXX....
         9899999.           Total - Preferred and Common Stocks....................................................................................................................................            ............928,133      ...........XXX........   ............871,180 ............579,395 .......(97,636) .................0 .................0 .........(97,636) ...............0 ............871,180 ...............0 ......56,955 ......56,955 ........1,786                                  ......XXX...   ..XXX....
QE05.3




         9999999.           Total - Bonds, Preferred and Common Stocks.........................................................................................................................                .....150,378,235         ...........XXX........   .....149,404,810 .....136,506,389 .......(97,635) .....(273,208) .................0 .......(370,843) ...............0 .....148,963,313 ...............0 ..1,414,925 ..1,414,925 ..5,495,492                                                    ......XXX...   ..XXX....
         (a) For all common stock bearing the NAIC market indicator "U" provide: the number of such issues:...............0.
          Statement as of June 30, 2012 of the           National Life Insurance Company
                                                                                                                                                                                SCHEDULE DB - PART A - SECTION 1
                                                                                                                                           Showing all Options, Caps, Floors, Collars, Swaps and Forwards Open as of Current Statement Date
                          1                                         2                            3             4                  5                 6             7              8                9                10                11                  12                   13                    14              15            16                  17                18                     19                  20                    21                   22                 23
                                                             Description of                                                                                                                                      Strike          Prior Year        Current Year                                                                                                        Total                                  Adjustment                                                       Hedge
                                                             Items Hedged                                                                                                                                     Price, Rate       Initial Cost        Initial Cost                                 Book/                                          Unrealized            Foreign              Current            to Carrying                                Credit            Effectiveness
                                                               or Used for                   Schedule                                                         Date of                                         of Indexed        of Premium         of Premium              Current              Adjusted                                         Valuation           Exchange              Year's               Value of                                Quality of          at Inception
                                                                 Income                       /Exhibit     Type(s)         Exchange or            Trade      Maturity or    Number of         Notional         Received         (Received)          (Received)               Year               Carrying                         Fair            Increase            Change in          (Amortization)          Hedged              Potential           Reference              and at
                    Description                                Generation                    Identifier    of Risk         Counterparty           Date       Expiration     Contracts         Amount             (Paid)             Paid                Paid               Income                Value            Code          Value           (Decrease)           B./A.C.V.            Accretion              Items              Exposure              Entity          Quarter-end (a)

       Purchased Options - Hedging Effective - Call Options and Warrants
       S&P 500 OTC Call Option                                                                                         JP Morgan Chase
       9PG833LN SPX                    Multiple...........................................   N/A......... Equity/Index & Co            .07/21/2011 .07/20/2012 ..........4,316 ...................0 ....1,344.0000             ........399,618 ...................0 ...................0 ..............131,814 ....... ........131,814 .........(47,473) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833LK SPX                    Multiple...........................................   N/A......... Equity/Index Barclay Bank PLC.       .07/21/2011 .07/20/2012 ..........3,200 ...................0 ....1,344.0000     ........294,144 ...................0 ...................0 ................95,956 ....... ..........95,956 .........(34,843) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option                                                                                         JP Morgan Chase
       9PG833MF SPX                    Multiple...........................................   N/A......... Equity/Index & Co                    .08/19/2011 .08/21/2012 ..........4,272 ...................0 ....1,124.0000     ........466,844 ...................0 ...................0   ...........1,014,485 ....... .....1,014,485         ........254,714 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option                                                                                         JP Morgan Chase
       9PG833MJ SPX                    Multiple...........................................   N/A......... Equity/Index & Co                    .08/19/2011 .08/21/2012 ..........2,403 ...................0 ....1,124.0000     ........262,600 ...................0 ...................0 ..............570,648 ....... ........570,648         ........143,277 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option                                                                                         JP Morgan Chase
       9PG833MH SPX                    Multiple...........................................   N/A......... Equity/Index & Co                    .08/19/2011 .08/21/2012 ..........1,958 ...................0 ....1,124.0000     ........213,970 ...................0 ...................0 ..............464,972 ....... ........464,972         ........116,744 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option                                                                                         JP Morgan Chase
       9PG833NF SPX                    Multiple...........................................   N/A......... Equity/Index & Co                    .09/21/2011 .09/21/2012 ..........2,400 ...................0 ....1,167.0000     ........282,000 ...................0 ...................0 ..............474,692 ....... ........474,692         ........109,997 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option                                                                                         JP Morgan Chase
       9PG833NB SPX                    Multiple...........................................   N/A......... Equity/Index & Co                    .09/21/2011 .09/21/2012 ..........6,000 ...................0 ....1,167.0000     ........705,000 ...................0 ...................0   ...........1,186,731 ....... .....1,186,731         ........274,992 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option                                                                                         JP Morgan Chase
       9PG833ND SPX                    Multiple...........................................   N/A......... Equity/Index & Co                    .09/21/2011 .09/21/2012 ..........2,228 ...................0 ....1,167.0000     ........261,790 ...................0 ...................0 ..............440,673 ....... ........440,673         ........102,114 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option                                                                                         JP Morgan Chase
       9PG833NZ SPX                    Multiple...........................................   N/A......... Equity/Index & Co                    .10/21/2011 .10/19/2012 ..........2,342 ...................0 ....1,238.0000     ........284,787 ...................0 ...................0 ..............323,509 ....... ........323,509         ..........63,717 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option                                                                                         JP Morgan Chase
       9PG833NX SPX                    Multiple...........................................   N/A......... Equity/Index & Co                    .10/21/2011 .10/19/2012 ..........2,019 ...................0 ....1,238.0000     ........245,510 ...................0 ...................0 ..............278,892 ....... ........278,892         ..........54,929 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option                                                                                         JP Morgan Chase
       9PG833NV SPX                    Multiple...........................................   N/A......... Equity/Index & Co                    .10/21/2011 .10/19/2012 ..........5,169 ...................0 ....1,238.0000     ........628,550 ...................0 ...................0 ..............714,012 ....... ........714,012         ........140,628 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
QE06




       S&P 500 OTC Call Option
       9PG833OP SPX                    Multiple...........................................   N/A......... Equity/Index Merrill Lynch Intl.... .11/21/2011 .11/21/2012 ..........7,796 ...................0 ....1,193.0000      ........987,675 ...................0 ...................0   ...........1,413,518 ....... .....1,413,518         ........315,786 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833OT SPX                    Multiple...........................................   N/A......... Equity/Index Merrill Lynch Intl.... .11/21/2011 .11/21/2012 ..........1,844 ...................0 ....1,193.0000      ........233,616 ...................0 ...................0 ..............334,342 ....... ........334,342         ..........74,693 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833PL SPX                    Multiple...........................................   N/A......... Equity/Index Barclay Bank PLC. .12/21/2011 .12/21/2012 ..........2,975 ...................0 ....1,244.0000           ........330,047 ...................0 ...................0 ..............428,871 ....... ........428,871         ..........83,722 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option                                                                                         JP Morgan Chase
       9PG833PJ SPX                    Multiple...........................................   N/A......... Equity/Index & Co              .12/21/2011 .12/21/2012 ..........8,282 ...................0 ....1,244.0000           ........921,869 ...................0 ...................0   ...........1,191,777 ....... .....1,191,777         ........224,651 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833PL SPX                    Multiple...........................................   N/A......... Equity/Index Barclay Bank PLC. .12/21/2011 .12/21/2012 ..........2,975 ...................0 ....1,244.0000           ........330,047 ...................0 ...................0 ..............428,871 ....... ........428,871         ..........83,722 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833QH SPX                    Multiple...........................................   N/A......... Equity/Index Barclay Bank PLC. .01/20/2012 .01/18/2013 ..........2,281 ...................0 ....1,315.0000 ...................0          ........225,637 ...................0 ..............223,423 ....... ........223,423 ...........(2,213) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833QF SPX                    Multiple...........................................   N/A......... Equity/Index Barclay Bank PLC. .01/20/2012 .01/18/2013 ..........2,813 ...................0 ....1,315.0000 ...................0          ........278,262 ...................0 ..............275,533 ....... ........275,533 ...........(2,729) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833QD SPX                    Multiple...........................................   N/A......... Equity/Index Barclay Bank PLC. .01/20/2012 .01/18/2013 ..........5,930 ...................0 ....1,315.0000 ...................0          ........586,596 ...................0 ..............580,842 ....... ........580,842 ...........(5,754) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833QX SPX                    Multiple...........................................   N/A......... Equity/Index Barclay Bank PLC. .02/21/2012 .02/21/2013 ..........5,212 ...................0 ....1,362.0000 ...................0          ........527,507 ...................0 ..............393,505 ....... ........393,505          .......(134,002) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833QZ SPX                    Multiple...........................................   N/A......... Equity/Index Barclay Bank PLC. .02/21/2012 .02/21/2013 ..........2,569 ...................0 ....1,362.0000 ...................0          ........260,008 ...................0 ..............193,959 ....... ........193,959 .........(66,050) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833RB SPX                    Multiple...........................................   N/A......... Equity/Index Credit Suisse FB Int .02/21/2012 .02/21/2013 ..........2,202 ...................0 ....1,362.0000 ...................0       ........226,167 ...................0 ..............168,980 ....... ........168,980 .........(57,187) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833RV SPX                    Multiple...........................................   N/A......... Equity/Index Merrill Lynch Intl.... .03/21/2012 .03/21/2013 ..........1,782 ...................0 ....1,403.0000 ...................0     ........169,753 ...................0 ..............105,958 ....... ........105,958 .........(63,796) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833RR SPX                    Multiple...........................................   N/A......... Equity/Index Barclay Bank PLC. .03/21/2012 .03/21/2013 ..........3,778 ...................0 ....1,403.0000 ...................0          ........358,834 ...................0 ..............223,447 ....... ........223,447          .......(135,388) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833RT SPX                    Multiple...........................................   N/A......... Equity/Index Merrill Lynch Intl.... .03/21/2012 .03/21/2013 ..........1,996 ...................0 ....1,403.0000 ...................0     ........190,139 ...................0 ..............118,682 ....... ........118,682 .........(71,457) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833SL SPX                    Multiple...........................................   N/A......... Equity/Index Credit Suisse FB Int .04/20/2012 .04/19/2013 ..........4,715 ...................0 ....1,379.0000 ...................0       ........468,624 ...................0 ..............370,151 ....... ........370,151 .........(98,473) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833SP SPX                    Multiple...........................................   N/A......... Equity/Index Credit Suisse FB Int .04/20/2012 .04/19/2013 ..........1,886 ...................0 ....1,379.0000 ...................0       ........187,450 ...................0 ..............148,060 ....... ........148,060 .........(39,389) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option
       9PG833SN SPX                    Multiple...........................................   N/A......... Equity/Index Credit Suisse FB Int .04/20/2012 .04/19/2013 ..........2,176 ...................0 ....1,379.0000 ...................0       ........216,273 ...................0 ..............170,827 ....... ........170,827 .........(45,446) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
       S&P 500 OTC Call Option                                                                                         JP Morgan Chase
       9PG833TJ SPX                    Multiple...........................................   N/A......... Equity/Index & Co                 .05/21/2012 .05/21/2013 ..........2,508 ...................0 ....1,316.0000 ...................0       ........268,983 ...................0 ..............298,620 ....... ........298,620          ..........29,637 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
             Statement as of June 30, 2012 of the                      National Life Insurance Company
                                                                                                                                                                                                                               SCHEDULE DB - PART A - SECTION 1
                                                                                                                                                                               Showing all Options, Caps, Floors, Collars, Swaps and Forwards Open as of Current Statement Date
                                 1                                                  2                                   3                 4                        5                      6                 7                  8                     9                    10                     11                     12                   13                    14               15            16                   17                 18                       19                    20                      21                      22                     23
                                                                             Description of                                                                                                                                                                             Strike               Prior Year           Current Year                                                                                                           Total                                      Adjustment                                                                Hedge
                                                                             Items Hedged                                                                                                                                                                            Price, Rate            Initial Cost           Initial Cost                                 Book/                                            Unrealized             Foreign               Current               to Carrying                                     Credit                Effectiveness
                                                                               or Used for                        Schedule                                                                            Date of                                                        of Indexed             of Premium            of Premium             Current               Adjusted                                           Valuation            Exchange               Year's                  Value of                                     Quality of              at Inception
                                                                                 Income                            /Exhibit          Type(s)              Exchange or                  Trade         Maturity or         Number of              Notional              Received              (Received)             (Received)              Year                Carrying                          Fair             Increase             Change in           (Amortization)             Hedged                Potential              Reference                  and at
                          Description                                          Generation                         Identifier         of Risk              Counterparty                 Date          Expiration          Contracts              Amount                  (Paid)                  Paid                   Paid              Income                 Value             Code          Value            (Decrease)            B./A.C.V.             Accretion                 Items                Exposure                 Entity              Quarter-end (a)
         S&P 500 OTC Call Option                                                                                                            JP Morgan Chase
         9PG833TH SPX                       Multiple........................................... N/A......... Equity/Index & Co                                             .05/21/2012 .05/21/2013 ..........2,128 ...................0 ....1,316.0000                                     ...................0   ........228,228 ...................0 ..............253,374 ....... ........253,374            ..........25,146 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                            JP Morgan Chase
         9PG833TF SPX                       Multiple........................................... N/A......... Equity/Index & Co                                             .05/21/2012 .05/21/2013 ..........4,179 ...................0 ....1,316.0000                                     ...................0   ........448,198 ...................0 ..............497,581 ....... ........497,581            ..........49,383 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833TZ SPX                       Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .06/21/2012 .06/21/2013 ..........6,714 ...................0 ....1,326.0000                                                                    ...................0   ........703,963 ...................0 ..............792,225 ....... ........792,225            ..........88,262 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833UB SPX                       Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .06/21/2012 .06/21/2013 ..........2,490 ...................0 ....1,326.0000                                                                    ...................0   ........261,077 ...................0 ..............293,810 ....... ........293,810            ..........32,733 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833UD SPX                       Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .06/21/2012 .06/21/2013 ..........5,055 ...................0 ....1,326.0000                                                                    ...................0   ........530,017 ...................0 ..............596,470 ....... ........596,470            ..........66,453 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG837EF SPXA                      Multiple........................................... N/A......... Equity/Index Credit Suisse FB Int .07/21/2011 .07/20/2012 ..........1,265 ...................0 ....1,344.0000                                                                 ..........62,048 ...................0 ...................0 .........................0 ....... ...................0 ..............(408) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG837EG SPXA                      Multiple........................................... N/A......... Equity/Index Merrill Lynch Intl.... .08/19/2011 .08/21/2012 ..........1,335 ...................0 ....1,124.0000                                                               ..........92,849 ...................0 ...................0 ..............235,685 ....... ........235,685             ..........76,013 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG837EH SPXA                      Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .09/21/2011 .09/21/2012 ..........1,371 ...................0 ....1,167.0000                                                                    ..........97,259 ...................0 ...................0 ..............203,418 ....... ........203,418             ..........77,150 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG837EI SPXA                      Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .10/21/2011 .10/19/2012 ..........1,615 ...................0 ....1,238.0000                                                                    ........116,587 ...................0 ...................0 ..............149,254 ....... ........149,254              ..........61,047 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG837EJ SPXA                      Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .11/21/2011 .11/21/2012 ..........1,676 ...................0 ....1,193.0000                                                                    ........129,756 ...................0 ...................0 ..............245,872 ....... ........245,872              ..........92,266 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG837EK SPXA                      Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .12/21/2011 .12/21/2012 ..........1,447 ...................0 ....1,244.0000                                                                    ..........91,248 ...................0 ...................0 ..............154,809 ....... ........154,809             ..........55,783 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
QE06.1




         9PG837EL SPXA                      Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .01/20/2012 .01/18/2013 ..........1,520 ...................0 ....1,315.0000                                                                    ...................0   ..........83,767 ...................0 ................74,749 ....... ..........74,749 ...........(9,018) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG837EM SPXA                      Multiple........................................... N/A......... Equity/Index Merrill Lynch Intl.... .02/21/2012 .02/21/2013 ..........1,248 ...................0 ....1,362.0000                                                               ...................0   ..........68,340 ...................0 ................30,627 ....... ..........30,627 .........(37,713) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG837EN SPXA                      Multiple........................................... N/A......... Equity/Index Merrill Lynch Intl.... .03/21/2012 .03/21/2013 ..........1,069 ...................0 ....1,403.0000                                                               ...................0   ..........52,787 ...................0 ................12,567 ....... ..........12,567 .........(40,221) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG837EO SPXA                      Multiple........................................... N/A......... Equity/Index Merrill Lynch Intl.... .04/20/2012 .04/19/2013 ..........1,161 ...................0 ....1,379.0000                                                               ...................0   ..........60,500 ...................0 ................29,359 ....... ..........29,359 .........(31,141) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG837EQ SPXA                      Multiple........................................... N/A......... Equity/Index Merrill Lynch Intl.... .05/21/2012 .05/21/2013 ..........1,216 ...................0 ....1,316.0000                                                               ...................0   ..........72,972 ...................0 ................82,353 ....... ..........82,353         ............9,380 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG837ES SPXA                      Multiple........................................... N/A......... Equity/Index Credit Suisse FB Int .06/21/2012 .06/21/2013 ..........1,660 ...................0 ....1,326.0000                                                                 ...................0   ..........92,860   ...................0 ..............119,502 ....... ........119,502         ..........26,642    ...................0   ...................0   ...................0   ...................0   ......................   0001..............
         0019999. Total-Purchased Options-Hedging Effective-Call Options and Warrants.......................................................... .............................................................................................................                              .....7,437,814         .....6,566,942     ...................0 .........16,537,405 XXX ....16,537,405                .....1,810,880      ...................0   ...................0   ...................0   ...................0   ........XXX.......       ........XXX.......
         0079999. Total-Purchased Options-Hedging Effective.................................................................................................... .............................................................................................................              .....7,437,814         .....6,566,942     ...................0 .........16,537,405 XXX ....16,537,405                .....1,810,880      ...................0   ...................0   ...................0   ...................0   ........XXX.......       ........XXX.......
         0369999. Total-Purchased Options-Call Options and Warrants....................................................................................... .............................................................................................................                   .....7,437,814         .....6,566,942     ...................0 .........16,537,405 XXX ....16,537,405                .....1,810,880      ...................0   ...................0   ...................0   ...................0   ........XXX.......       ........XXX.......
         0429999. Total-Purchased Options................................................................................................................................. .............................................................................................................   .....7,437,814         .....6,566,942     ...................0 .........16,537,405 XXX ....16,537,405                .....1,810,880      ...................0   ...................0   ...................0   ...................0   ........XXX.......       ........XXX.......

         Written Options - Hedging Effective - Call Options and Warrants
         S&P 500 OTC Call Option                                                                                                            JP Morgan Chase
         9PG833LO SPX                      Multiple...........................................                    N/A......... Equity/Index & Co            .07/21/2011 .07/20/2012 ..........4,316 ...................0 ....1,475.0000                                                    .......(153,132) ...................0 ...................0 ......................(13) ....... ................(13) ..........33,621 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833LM SPX                      Multiple...........................................                    N/A......... Equity/Index Barclay Bank PLC.                      .07/21/2011 .07/20/2012 ..........3,200 ...................0 ....1,518.0000 .........(73,536) ...................0 ...................0 ........................(1) ....... ..................(1) ..........12,643 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                            JP Morgan Chase
         9PG833MK SPX                      Multiple...........................................                    N/A......... Equity/Index & Co                                   .08/19/2011 .08/21/2012 ..........2,403 ...................0 ....1,213.0000                             .......(157,565) ...................0 ...................0 .............(363,164) ....... .......(363,164) .........(85,081) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                            JP Morgan Chase
         9PG833MI SPX                      Multiple...........................................                    N/A......... Equity/Index & Co                                   .08/19/2011 .08/21/2012 ..........1,958 ...................0 ....1,233.0000                             .......(113,212) ...................0 ...................0 .............(260,203) ....... .......(260,203) .........(57,409) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                            JP Morgan Chase
         9PG833MG SPX                      Multiple...........................................                    N/A......... Equity/Index & Co                                   .08/19/2011 .08/21/2012 ..........4,272 ...................0 ....1,270.0000                             .......(192,283) ...................0 ...................0 .............(427,982) ....... .......(427,982) .........(75,057) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                            JP Morgan Chase
         9PG833NG SPX                      Multiple...........................................                    N/A......... Equity/Index & Co                                   .09/21/2011 .09/21/2012 ..........2,400 ...................0 ....1,263.0000                             .......(170,280) ...................0 ...................0 .............(269,085) ....... .......(269,085) .........(48,396) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                            JP Morgan Chase
         9PG833NE SPX                      Multiple...........................................                    N/A......... Equity/Index & Co                                   .09/23/2011 .09/21/2012 ..........2,228 ...................0 ....1,289.0000                             .......(135,462) ...................0 ...................0 .............(202,520) ....... .......(202,520) .........(28,796) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                            JP Morgan Chase
         9PG833NC SPX                      Multiple...........................................                    N/A......... Equity/Index & Co                                   .09/21/2011 .09/21/2012 ..........6,000 ...................0 ....1,324.0000                             .......(291,960) ...................0 ...................0 .............(389,580) ....... .......(389,580) .........(22,702) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                            JP Morgan Chase
         9PG833OA SPX                      Multiple...........................................                    N/A......... Equity/Index & Co                                   .10/21/2011 .10/19/2012 ..........2,342 ...................0 ....1,344.0000                             .......(165,298) ...................0 ...................0 .............(138,952) ....... .......(138,952) ...........(4,143) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
             Statement as of June 30, 2012 of the                       National Life Insurance Company
                                                                                                                                                                                                                                 SCHEDULE DB - PART A - SECTION 1
                                                                                                                                                                                 Showing all Options, Caps, Floors, Collars, Swaps and Forwards Open as of Current Statement Date
                                 1                                                   2                                   3                 4                        5                       6                 7                   8                     9                    10                     11                     12                   13                      14               15             16                 17                 18                        19                    20                      21                      22                     23
                                                                              Description of                                                                                                                                                                               Strike               Prior Year           Current Year                                                                                                            Total                                       Adjustment                                                                Hedge
                                                                              Items Hedged                                                                                                                                                                              Price, Rate            Initial Cost           Initial Cost                                   Book/                                            Unrealized            Foreign                Current               to Carrying                                     Credit                Effectiveness
                                                                                or Used for                         Schedule                                                                            Date of                                                         of Indexed             of Premium            of Premium             Current                 Adjusted                                           Valuation           Exchange                Year's                  Value of                                     Quality of              at Inception
                                                                                  Income                             /Exhibit          Type(s)              Exchange or                  Trade         Maturity or         Number of               Notional              Received              (Received)             (Received)              Year                  Carrying                           Fair            Increase            Change in            (Amortization)             Hedged                Potential              Reference                  and at
                          Description                                           Generation                          Identifier         of Risk              Counterparty                 Date          Expiration          Contracts               Amount                  (Paid)                  Paid                   Paid              Income                   Value              Code          Value           (Decrease)           B./A.C.V.              Accretion                 Items                Exposure                 Entity              Quarter-end (a)
         S&P 500 OTC Call Option                                                                                                               JP Morgan Chase
         9PG833NY SPX                          Multiple........................................... N/A......... Equity/Index & Co                                             .10/21/2011 .10/19/2012 ..........2,019 ...................0 ....1,371.0000                                     .......(120,756) ...................0 ...................0 ...............(86,726) ....... .........(86,726) ............7,154 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                               JP Morgan Chase
         9PG833NW SPX                          Multiple........................................... N/A......... Equity/Index & Co                                             .10/21/2011 .10/19/2012 ..........5,169 ...................0 ....1,402.0000                                     .......(254,108) ...................0 ...................0 .............(143,621) ....... .......(143,621) ..........41,341 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833OU SPX                          Multiple........................................... N/A......... Equity/Index Merrill Lynch Intl.... .11/21/2011 .11/21/2012 ..........1,844 ...................0 ....1,297.0000                                                               .......(139,683) ...................0 ...................0 .............(180,535) ....... .......(180,535) .........(30,028) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833OQ SPX                          Multiple........................................... N/A......... Equity/Index Merrill Lynch Intl.... .11/21/2011 .11/21/2012 ..........7,796 ...................0 ....1,348.0000                                                               .......(439,850) ...................0 ...................0 .............(498,446) ....... .......(498,446) .........(40,895) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833PM SPX                          Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .12/21/2011 .12/21/2012 ..........2,975 ...................0 ....1,349.0000                                                                    .......(178,351) ...................0 ...................0 .............(207,950) ....... .......(207,950) .........(18,956) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                               JP Morgan Chase
         9PG833PM SPX                          Multiple........................................... N/A......... Equity/Index & Co                                             .12/21/2011 .12/21/2012 ..........2,975 ...................0 ....1,374.0000                                     .......(150,595) ...................0 ...................0 .............(165,429) ....... .......(165,429) ...........(5,833) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833PK SPX                          Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .12/21/2011 .12/21/2012 ..........8,282 ...................0 ....1,412.0000                                                                    .......(319,271) ...................0 ...................0 .............(310,332) ....... .......(310,332) ..........29,433 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833QI SPX                          Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .01/20/2012 .01/18/2013 ..........2,281 ...................0 ....1,427.0000                                                                    ...................0   .......(105,017) ...................0 ...............(83,981) ....... .........(83,981) ..........21,036 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833QG SPX                          Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .01/20/2012 .01/18/2013 ..........2,813 ...................0 ....1,457.0000                                                                    ...................0   .......(100,649) ...................0 ...............(72,258) ....... .........(72,258) ..........28,391 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833QE SPX                          Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .01/20/2012 .01/18/2013 ..........5,930 ...................0 ....1,493.0000                                                                    ...................0   .......(150,563) ...................0 ...............(90,779) ....... .........(90,779) ..........59,784 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833RC SPX                          Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .02/21/2012 .02/21/2013 ..........2,202 ...................0 ....1,478.0000                                                                    ...................0   .......(105,586) ...................0 ...............(55,690) ....... .........(55,690) ..........49,896 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
QE06.2




         9PG833RA SPX                          Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .02/21/2012 .02/21/2013 ..........2,569 ...................0 ....1,509.0000                                                                    ...................0 .........(91,688) ...................0 ...............(42,021) ....... .........(42,021) ..........49,667 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833QY SPX                          Multiple........................................... N/A......... Equity/Index Credit Suisse FB Int .02/21/2012 .02/21/2013 ..........5,212 ...................0 ....1,546.0000                                                                 ...................0   .......(131,342) ...................0 ...............(48,204) ....... .........(48,204) ..........83,138 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833RW SPX                          Multiple........................................... N/A......... Equity/Index Merrill Lynch Intl.... .03/21/2012 .03/21/2013 ..........1,782 ...................0 ....1,522.0000                                                               ...................0 .........(72,011) ...................0 ...............(31,444) ....... .........(31,444) ..........40,566 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833RU SPX                          Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .03/21/2012 .03/21/2013 ..........1,996 ...................0 ....1,557.0000                                                                    ...................0 .........(58,523) ...................0 ...............(22,055) ....... .........(22,055) ..........36,467 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833RS SPX                          Multiple........................................... N/A......... Equity/Index Merrill Lynch Intl.... .03/21/2012 .03/21/2013 ..........3,778 ...................0 ....1,596.0000                                                               ...................0 .........(74,767) ...................0 ...............(19,994) ....... .........(19,994) ..........54,773 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833SQ SPX                          Multiple........................................... N/A......... Equity/Index Credit Suisse FB Int .04/20/2012 .04/19/2013 ..........1,886 ...................0 ....1,496.0000                                                                 ...................0 .........(83,720) ...................0 ...............(54,364) ....... .........(54,364) ..........29,356 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833SO SPX                          Multiple........................................... N/A......... Equity/Index Credit Suisse FB Int .04/20/2012 .04/19/2013 ..........2,176 ...................0 ....1,523.0000                                                                 ...................0 .........(76,486) ...................0 ...............(46,389) ....... .........(46,389) ..........30,098 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833SM SPX                          Multiple........................................... N/A......... Equity/Index Credit Suisse FB Int .04/20/2012 .04/19/2013 ..........4,715 ...................0 ....1,565.0000                                                                 ...................0   .......(112,453) ...................0 ...............(60,756) ....... .........(60,756) ..........51,697 ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                               JP Morgan Chase
         9PG833TK SPX                          Multiple........................................... N/A......... Equity/Index & Co                                             .05/21/2012 .05/21/2013 ..........2,508 ...................0 ....1,421.0000                                     ...................0   .......(140,598) ...................0 .............(155,662) ....... .......(155,662) .........(15,064) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                               JP Morgan Chase
         9PG833TI SPX                          Multiple........................................... N/A......... Equity/Index & Co                                             .05/21/2012 .05/21/2013 ..........2,128 ...................0 ....1,454.0000                                     ...................0 .........(93,249) ...................0 .............(102,381) ....... .......(102,381) ...........(9,132) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option                                                                                                               JP Morgan Chase
         9PG833TG SPX                          Multiple........................................... N/A......... Equity/Index & Co                                             .05/21/2012 .05/21/2013 ..........4,179 ...................0 ....1,487.0000                                     ...................0   .......(139,119) ...................0 .............(151,009) ....... .......(151,009) .........(11,890) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833UE SPX                          Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .06/21/2012 .06/21/2013 ..........5,055 ...................0 ....1,432.0000                                                                    ...................0   .......(268,724) ...................0 .............(312,404) ....... .......(312,404) .........(43,680) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833UC SPX                          Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .06/21/2012 .06/21/2013 ..........2,490 ...................0 ....1,465.0000                                                                    ...................0   .......(102,314) ...................0 .............(119,778) ....... .......(119,778) .........(17,464) ...................0 ...................0 ...................0 ...................0 ...................... 0001..............
         S&P 500 OTC Call Option
         9PG833UA SPX                          Multiple........................................... N/A......... Equity/Index Barclay Bank PLC. .06/21/2012 .06/21/2013 ..........6,714 ...................0 ....1,498.0000                                                                    ...................0   .......(208,268)   ...................0   .............(243,721)   .......   .......(243,721)   .........(35,453)   ...................0   ...................0   ...................0   ...................0   ......................   0001..............
         0439999. Total-Written Options-Hedging Effective-Call Options and Warrants................................................................ .............................................................................................................                             ....(3,055,342)        ....(2,115,077)    ...................0   ..........(5,357,429)    XXX       ....(5,357,429)    ........109,082     ...................0   ...................0   ...................0   ...................0   ........XXX.......       ........XXX.......
         0499999. Total-Written Options-Hedging Effective.......................................................................................................... .............................................................................................................             ....(3,055,342)        ....(2,115,077)    ...................0   ..........(5,357,429)    XXX       ....(5,357,429)    ........109,082     ...................0   ...................0   ...................0   ...................0   ........XXX.......       ........XXX.......
         0789999. Total-Written Options-Call Options and Warrants............................................................................................ .............................................................................................................                   ....(3,055,342)        ....(2,115,077)    ...................0   ..........(5,357,429)    XXX       ....(5,357,429)    ........109,082     ...................0   ...................0   ...................0   ...................0   ........XXX.......       ........XXX.......
         0849999. Total-Written Options...................................................................................................................................... .............................................................................................................   ....(3,055,342)        ....(2,115,077)    ...................0   ..........(5,357,429)    XXX       ....(5,357,429)    ........109,082     ...................0   ...................0   ...................0   ...................0   ........XXX.......       ........XXX.......

         Swaps - Hedging Effective - Interest Rate
             Statement as of June 30, 2012 of the                       National Life Insurance Company
                                                                                                                                                                                                                                     SCHEDULE DB - PART A - SECTION 1
                                                                                                                                                                                Showing all Options, Caps, Floors, Collars, Swaps and Forwards Open as of Current Statement Date
                                 1                                                  2                                    3                 4                        5                         6                  7                    8                       9                      10                      11                     12                      13                     14               15              16                  17                 18                        19                   20                     21                   22                  23
                                                                             Description of                                                                                                                                                                                        Strike                Prior Year           Current Year                                                                                                                Total                                      Adjustment                                                         Hedge
                                                                             Items Hedged                                                                                                                                                                                       Price, Rate             Initial Cost           Initial Cost                                     Book/                                             Unrealized             Foreign                Current              to Carrying                                  Credit            Effectiveness
                                                                               or Used for                         Schedule                                                                                Date of                                                              of Indexed              of Premium            of Premium                 Current               Adjusted                                            Valuation            Exchange                Year's                 Value of                                  Quality of          at Inception
                                                                                 Income                             /Exhibit          Type(s)              Exchange or                    Trade           Maturity or          Number of                 Notional                Received               (Received)             (Received)                  Year                Carrying                            Fair            Increase             Change in            (Amortization)            Hedged               Potential            Reference              and at
                          Description                                          Generation                          Identifier         of Risk              Counterparty                   Date            Expiration           Contracts                 Amount                    (Paid)                   Paid                   Paid                  Income                 Value              Code           Value           (Decrease)            B./A.C.V.              Accretion                Items               Exposure               Entity          Quarter-end (a)
         Barclays Capital Variable Rate
         Interest Rate Swap                          ....................................................... N/A......... .................. Barclay Bank PLC.                        .05/14/2012 .05/16/2042 .................0 ....10,000,000                               ..........0.4669 ...................0 ...................0             ............5,836 .........................0 ....... ...................0 ...................0 ...................0 ...................0 ...................0       ........273,303 ...................... 0002..............
         Barclays Capital Fixed Rate
         Interest Rate Swap                          ....................................................... N/A......... .................. Barclay Bank PLC.                        .05/14/2012 .05/16/2042 .................0 ..(10,000,000) .........(2.6525)                                      ...................0   ...................0   .........(33,156)   .............(327,326)    .......    .......(327,326)   .......(327,326)     ...................0   ...................0   ...................0 ...................0 ...................... 0002..............
         0859999. Total-Swaps-Hedging Effective-Interest Rate..................................................................................................                        .............................................................................................................   ...................0   ...................0   .........(27,320)   .............(327,326)    XXX        .......(327,326)   .......(327,326)     ...................0   ...................0   ...................0 ........273,303 ........XXX....... ........XXX.......
         0909999. Total-Swaps-Hedging Effective.......................................................................................................................                 .............................................................................................................   ...................0   ...................0   .........(27,320)   .............(327,326)    XXX        .......(327,326)   .......(327,326)     ...................0   ...................0   ...................0 ........273,303 ........XXX....... ........XXX.......
         1159999. Total-Swaps-Interest Rate...............................................................................................................................             .............................................................................................................   ...................0   ...................0   .........(27,320)   .............(327,326)    XXX        .......(327,326)   .......(327,326)     ...................0   ...................0   ...................0 ........273,303 ........XXX....... ........XXX.......
         1209999. Total-Swaps....................................................................................................................................................      .............................................................................................................   ...................0   ...................0   .........(27,320)   .............(327,326)    XXX        .......(327,326)   .......(327,326)     ...................0   ...................0   ...................0 ........273,303 ........XXX....... ........XXX.......
         1399999. Total-Hedging Effective...................................................................................................................................           .............................................................................................................   .....4,382,472         .....4,451,865         .........(27,320)   .........10,852,650       XXX       ....10,852,650      .....1,592,636       ...................0   ...................0   ...................0 ........273,303 ........XXX....... ........XXX.......
         1449999. TOTAL............................................................................................................................................................    .............................................................................................................   .....4,382,472         .....4,451,865         .........(27,320)   .........10,852,650       XXX       ....10,852,650      .....1,592,636       ...................0   ...................0   ...................0 ........273,303 ........XXX....... ........XXX.......


                                (a)                           Code                                                 Financial or Economic Impact of the Hedge at the End of the Reporting Period
                                                              0001                                                 The hedge effectiveness cannot be measured at inception. At 06/30/2012, the change in fair value of the derivative hedging instrument over the previous quarter was 101% of the opposite change in the fair value of the hedged item attributable to the hedged risk, which is within the 80-125 percent range allowed by SSAP 86 for a
                                                              0002                                                 The Company purchases interest rate swaps to protect against interest rate risk in bonds.
QE06.3
             Statement as of June 30, 2012 of the                           National Life Insurance Company
                                                                                                                                                                                                                                                    SCHEDULE DB - PART B - SECTION 1
                                                                                                                                                                                                                                                    Futures Contracts Open as of the Current Statement Date
              1                   2                   3                                              4                                                                            5                                                 6                         7                       8                        9                       10                         11                            12                          13                        14                                            Change in Variation Margin                                                            19                      20
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              15                       16                17                                     18                                              Hedge
                                                                                                                                                                                                                                                                                                                                                                                                                                                   Book/                                          Gain (Loss)        Gain (Loss)                                                                            Effectiveness
                                                                                                                                                                          Description                                        Schedule/                                          Date of                                                                                                   Reporting                                               Adjusted                                        Recognized           Used to                                                                               at Inception
         Ticker            Number of             Notional                                                                                                                 of Hedged                                           Exhibit                   Type(s)                Maturity or                                           Trade                 Transaction                      Date                           Fair                   Carrying                                         in Current      Adjust Basis of                                                   Potential                  and at
         Symbol            Contracts             Amount                                       Description                                                                   Item(s)                                          Identifier                 of Risk                Expiration               Exchange                     Date                     Price                         Price                         Value                    Value                Cumulative                    Year          Hedged Item                            Deferred                  Exposure              Quarter-end (a)

       Short Futures
       Hedging Effective
       SPU2....... ...............(1) .........(250) S&P 500 FUTURE................................................. Multiple..................................................................                            N/A................      Equity/Index.. .09/21/2012...                     CME.............. .06/27/2012... .......1,327.2000 .......1,356.4000                                         ................(7,300)   ...............29,563   ................(7,300)   ................(7,300)   ........................0   ........................0   ...............17,500   0001.....................
       1339999. Total-Short Futures-Hedging Effective..................................................................................................................................................                    ......................   ...............................................   ..........................................................................................................   ................(7,300)   ...............29,563   ................(7,300)   ................(7,300)   ........................0   ........................0   ...............17,500   .........XXX.............
       1389999. Total-Short Futures...............................................................................................................................................................................         ......................   ...............................................   ..........................................................................................................   ................(7,300)   ...............29,563   ................(7,300)   ................(7,300)   ........................0   ........................0   ...............17,500   .........XXX.............
       1399999. Total-Hedging Effective.........................................................................................................................................................................           ......................   ...............................................   ..........................................................................................................   ................(7,300)   ...............29,563   ................(7,300)   ................(7,300)   ........................0   ........................0   ...............17,500   .........XXX.............
       1449999. TOTAL...................................................................................................................................................................................................   ......................   ...............................................   ..........................................................................................................   ................(7,300)   ...............29,563   ................(7,300)   ................(7,300)   ........................0   ........................0   ...............17,500   .........XXX.............

       (a)               Code                  Financial or Economic Impact of the Hedge at the End of the Reporting Period
                         0001                  The hedge effectiveness cannot be measured at inception. At 06/30/2012, the change in fair value of the derivative hedging instrument over the previous quarter was 101% of the opposite change in the fair value of the hedged item attributable to the hedged risk, which is within the 80-125 percent range allowed by SSAP 86 for a highly effective hedge.
QE07




       Broker Name                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Net Cash Deposits
       Brokers
       Goldman Sachs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                ............................................(108,652)
       Total Net Cash Deposits............................................................................................................................................................................................................................... ..................................................................................................................................................................................................................................... ............................................(108,652)
           Statement as of June 30, 2012 of the                       National Life Insurance Company
                                                                                                                                                                                                                                                                  SCHEDULE DB - PART D
                                                                                                                                                                                                          Counterparty Exposure for Derivative Instruments Open as of Current Statement Date
                                                              1                                                                   2                      3                                   4                                                                    Book Adjusted Carrying Value                                                                                                                   Fair Value                                                                                    11                                           12
                                                                                                                                                                                                                                       5                                       6                                                7                                          8                                          9                                            10
                                                                                                                                                     Credit                                                                      Contracts With                         Contracts With
                                                  Description                                                                Master                 Support                          Fair Value                                  Book Adjusted                          Book Adjusted                                                                                 Contracts                                   Contracts                                                                                                                          Off-Balance
                                            Counterparty or Exchange                                                       Agreement                 Annex                         of Acceptable                                   Carrying                                Carrying                                     Exposure Net                                  With Fair                                   With Fair                                Exposure Net                                   Potential                                     Sheet
                                                    Traded                                                                  (Y or N)                (Y or N)                         Collateral                                    Value > 0                               Value < 0                                     of Collateral                                Value > 0                                   Value < 0                                 of Collateral                                 Exposure                                    Exposure

       Exchange Traded Derivatives
       0199999. Exchange Traded............................................................................ .....XXX......... .....XXX.........                        ................XXX....................... ..................................29,563 ...........................................0      ..................................29,563   ..................................29,563 ...........................................0   ..................................29,563     ..................................17,500    ..................................17,500
       NAIC 1 Designation
       Barclays Bank PLC.......................................................................................... .....Y.............. .....Y..............            ...........................................0   ..............................5,355,014    ............................(1,888,296)    ..............................3,466,718    ..............................5,355,014     ............................(1,888,296)     ..............................3,466,718 ................................273,303 ................................273,303
       Credit Suisse FB Int......................................................................................... .....Y.............. .....Y..............          ...........................................0    ................................977,520   ...............................(209,713)    ................................767,807    ................................977,520    ...............................(209,713)     ................................767,807 ...........................................0 ...........................................0
       JP Morgan Chase & Co................................................................................... .....Y.............. .....Y..............                ...........................................0   ..............................7,841,780    ............................(2,856,327)    ..............................4,985,453    ..............................7,841,780     ............................(2,856,327)     ..............................4,985,453 ...........................................0 ...........................................0
       Merrill Lynch Intl.............................................................................................. .....Y.............. .....Y..............      ..............................1,460,001         ..............................2,363,091    ...............................(730,419)    ................................172,671   ..............................2,363,091     ...............................(730,419)     ................................172,671 ...........................................0 ...........................................0
       0299999. Total NAIC 1 Designation................................................................................................................               ..............................1,460,001         ............................16,537,405     ............................(5,684,755)    ..............................9,392,649    ............................16,537,405      ............................(5,684,755)     ..............................9,392,649 ................................273,303 ................................273,303
       0899999. Totals..............................................................................................................................................   ..............................1,460,001         ............................16,566,968     ............................(5,684,755)    ..............................9,422,212    ............................16,566,968      ............................(5,684,755)     ..............................9,422,212 ................................290,803 ................................290,803
QE08
Statement as of June 30, 2012 of the     National Life Insurance Company
                                                                     SCHEDULE DL - PART 1
                                                            SECURITIES LENDING COLLATERAL ASSETS
                                                                     Reinvested Collateral Assets Owned Current Statement Date
         1                                                                   2                                                              3          4         5            6             7
                                                                                                                                                     NAIC
                                                                                                                                                  Designation
      CUSIP                                                                                                                                         /Market      Fair   Book/Adjusted    Maturity
   Identification                                                       Description                                                        Code    Indicator    Value   Carrying Value    Dates

General Interrogatories:
1.         The activity for the year to date: Fair Value $..........0 Book/Adjusted Carrying Value $..........0
2.         Average balance for the year to date: Fair Value $..........0 Book/Adjusted Carrying Value $..........0
3.         Reinvested securities lending collateral assets book/adjusted carrying value included in this schedule by NAIC designation:
           NAIC 1: $..........0 NAIC 2: $..........0 NAIC 3: $..........0 NAIC 4: $..........0 NAIC 5: $..........0 NAIC 6: $..........0




                                                                                                NONE




                                                                                                                 QE09
Statement as of June 30, 2012 of the    National Life Insurance Company
                                                                   SCHEDULE DL - PART 2
                                                          SECURITIES LENDING COLLATERAL ASSETS
                                                                   Reinvested Collateral Assets Owned Current Statement Date
        1                                                                  2                                               3          4         5            6             7
                                                                                                                                    NAIC
                                                                                                                                 Designation
     CUSIP                                                                                                                         /Market      Fair   Book/Adjusted    Maturity
  Identification                                                      Description                                         Code    Indicator    Value   Carrying Value    Dates

General Interrogatory:
1.         The activity for the year to date: Fair Value $..........0 Book/Adjusted Carrying Value $..........0
2.         Average balance for the year to date: Fair Value $..........0 Book/Adjusted Carrying Value $..........0
3.         Grand Total Schedule DL Part 1 and Part 2: Fair Value $..........0 Book/Adjusted Carrying Value $..........0




                                                                                              NONE




                                                                                                              QE10
Statement as of June 30, 2012 of the                         National Life Insurance Company
                                                                                                                                 SCHEDULE E - PART 1 - CASH
                                                                                                                                                    Month End Depository Balances
                                                                      1                                                                                  2                    3                      4                                5                                         Book Balance at End of Each                                        9
                                                                                                                                                                                               Amount of                         Amount of                                      Month During Current Quarter
                                                                                                                                                                            Rate                 Interest                     Interest Accrued                          6                    7                                  8
                                                                                                                                                                             of              Received During                      at Current
                                                               Depository                                                                             Code                Interest           Current Quarter                   Statement Date                    First Month               Second Month                  Third Month               *

Open Depositories
JP Morgan Chase Bank................................................... New York, NY..........................................                   ...................   ...........0.000    .............................0   .............................0 ...........(7,634,988) ...........(2,498,204) ..............(705,214) XXX..
Key Bank......................................................................... Burlington Vt............................................      ...................   ...........0.000    .............................0   .............................0 ...............334,318 ...............334,318 ..........................0 XXX..
State Street Bank............................................................. Boston, MA..............................................          ...................   ...........0.000    .............................0   .............................0 ...............744,133 ................(48,611) ...............494,212 XXX..
Banknorth Vermont.......................................................... Burlington, VT.........................................              ...................   ...........0.000    .............................0   .............................0 ...............123,551 ..............(213,337) ...........(1,239,472) XXX..
BNY Mellon...................................................................... Pittsgburgh, PA.......................................          ...................   ...........0.000    .............................0   .............................0 ............2,440,317 ............1,460,982 ............1,412,853 XXX..
FHLB................................................................................ Boston, MA..............................................    ...................   ...........0.000    .............................0   .............................0 ...............154,940 ...............241,240 ...............415,257 XXX..
0199998. Deposits in.....3 depositories that do not exceed the allowable limit
           in any one depository (see Instructions) - Open Depositories............................................                              ....XXX........       ......XXX........   .............................0   .............................0   ...............216,671      ...............231,134      ...............183,758      XXX..
0199999. Total Open Depositories....................................................................................................             ....XXX........       ......XXX........   .............................0   .............................0   ...........(3,621,057)      ..............(492,478)     ...............561,394      XXX..
0399999. Total Cash on Deposit.........................................................................................................          ....XXX........       ......XXX........   .............................0   .............................0   ...........(3,621,057)      ..............(492,478)     ...............561,394      XXX..
0499999. Cash in Company's Office...................................................................................................             ....XXX........       ......XXX........   ..........XXX...............     ..........XXX...............     ......................400   ......................400   ......................400   XXX..
0599999. Total Cash...........................................................................................................................   ....XXX........       ......XXX........   .............................0   .............................0   ...........(3,620,657)      ..............(492,078)     ...............561,794      XXX..




                                                                                                                                                                           QE11
       Statement as of June 30, 2012 of the   National Life Insurance Company
                                                                                SCHEDULE E - PART 2 - CASH EQUIVALENTS
                                                                                            Show Investments Owned End of Current Quarter
                                                                1                 2        3          4          5                 6                  7                   8

                                                                                         Date      Rate of    Maturity       Book/Adjusted    Amount of Interest   Amount Received
                                                            Description          Code   Acquired   Interest    Date          Carrying Value    Due & Accrued         During Year
QE12




                                                                                  NONE

				
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