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SUPPLEMENT DATED AUGUST 27, 1999
TO PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1990
PORTFOLIO LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY
INTEGRITY LIFE INSURANCE COMPANY
THE FOLLOWING SUPPLEMENTS INFORMATION IN THE PROSPECTUS UNDER "INTEGRITY LIFE
INSURANCE COMPANY" IN PART 2, AND IN THE STATEMENT OF ADDITIONAL INFORMATION IN
PART 1, "INTEGRITY AND CUSTODIAN," AND PART 6, "FINANCIAL STATEMENTS."
Integrity Life Insurance Company ("Integrity Life") has consented to an Order of
Supervision issued by the Superintendent of Insurance of the State of Ohio. The
Company sought protection for Integrity Life following recent ratings
downgrades, discussed below, which were primarily attributed to the potential
inability of the Company to meet certain contractual covenants related to its
institutional business.
This regulatory action is intended to ensure an orderly process for addressing
the financial obligations of Integrity Life and to protect the interests of its
individual policyholders. Integrity Life believes it has adequate assets to meet
its obligations to individual retail policyholders. Integrity Life will continue
payments of death benefits, previously scheduled systematic withdrawals,
previously scheduled immediate annuity payments, and agent commissions. In
addition, Integrity Life will continue to honor partial and complete surrender
requests from Separate Account VUL.
The assets of the mutual fund shares held by Separate Account VUL are held by
each fund's custodian. These assets are not subject to the claims of Integrity
Life's general account creditors. Rather, Separate Account VUL's assets are only
available to meet the claims of Portfolio Life variable annuity contract
holders. Each dollar in your variable annuity is covered by this separate
account protection.
Integrity is currently rated "E-" (Under Regulatory Supervision) by A.M. Best
Company, and has received claims paying ability ratings of "R" (Regulatory
Action) from Standard & Poor's Corporation, "DD" (Under Regulatory Intervention)
from Duff & Phelps Credit Rating Company, and "B3" (Poor) from Moody's Investors
Service, Inc. A.M. Best's ratings range from "A++" (Superior) to "F"
(Liquidation). Standard & Poor's claims paying ability ratings range from "AAA"
(Extremely Strong) to "D" (Liquidation). Duff & Phelps' claims paying ability
ratings range from "AAA" (Highest) to "DD" (Default). Moody's claims paying
ability ratings range from "Aaa" (Exceptional) to "C" (Lowest).
The basis for an opinion on a particular rating includes such factors as capital
resources, financial strength, demonstrated management expertise, and stability
of cash flow, as well as the quality of investment operations, administration,
and marketing. These ratings are neither a rating of securities nor a
recommendation to buy, hold, or sell any security. Moreover, the ratings have no
bearing on or relationship to the performance of Separate Account VUL or its
underlying Investment Options.
THIS SUPPLEMENT MODIFIES THE PROSPECTUS AND SHOULD BE READ AND RETAINED.
