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SUPPLEMENT DATED JANUARY 21, 2000
TO
PROSPECTUS DATED MAY 1, 1999
IQ-THE SMART ANNUITY FLEXIBLE PREMIUM VARIABLE ANNUITY
ISSUED BY NATIONAL INTEGRITY LIFE INSURANCE COMPANY
On December 17, 1999, ARM Financial Group, Inc. (ARM), the parent company of
National Integrity Life Insurance Company (NATIONAL INTEGRITY), announced that
it had signed a definitive agreement whereby Western & Southern Life Insurance
Company (WESTERN & SOUTHERN) would acquire National Integrity. Western and
Southern is rated A++ (Superior) by A.M. Best, AAA (Highest) by Duff & Phelps,
AAA (Extremely Strong) by Standard & Poor's, and Aa2 (Excellent) by Moody's.
The transaction is expected to close late in the first quarter of 2000. The
acquisition of National Integrity by Western & Southern is being implemented
pursuant to a chapter 11 bankruptcy case filed by ARM on December 20, 1999. In
addition to approval by the bankruptcy court, the closing of the transaction is
subject to the approval of various state departments of insurance and other
customary conditions to closing.
