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SUPPLEMENT DATED AUGUST 24, 1999
TO PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1999
IQ THE SMARTANNUITY FLEXIBLE PREMIUM VARIABLE ANNUITY
NATIONAL INTEGRITY LIFE INSURANCE COMPANY
Integrity Life Insurance Company ("Integrity Life") has consented to an Order of
Supervision issued by the Director of Insurance of the State of Ohio. The
Company sought protection for Integrity Life following recent ratings
downgrades, 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.
National Integrity Life Insurance Company ("National Integrity") is a wholly
owned subsidiary of Integrity Life. Although National Integrity does not believe
this action will affect National Integrity or its policyholders, there can be no
assurance that it won't.
THIS SUPPLEMENT MODIFIES THE PROSPECTUS AND SHOULD BE READ AND RETAINED.
