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OF THE SOUTHWEST

Life Insurance Company of the Southwest

Illustration Actuary Certification To Accompany Policy Form Submissions

Regarding: 8212(0305), Equity-Indexed Flexible Premium. Adjustabie Benefit Life

| LIFE INSURANCE COMPANY oe DS ey | [ insurance Policy

|, Craig A. Smith, ama Vice President and Chief Actuary of the National Life insurance Company (of |. which the Life insurance Company of the Southwest is a subsidiary) and am a member of the American - ‘Academy of Actuaries In good standing. | was appointed on August 2, 2004 by the Board of Directors of the Life Insurance Company of the Southwest fo be the illustration actuary for this plan of Insurance for all - states. | meet the Academy. requirements for making this certification and the requirements of applicable

state regulations. —

When illustrating under the Deciared Rate Crediting Option, scales used In illustrating non-guaranteed elements on the policy form described above meet the requirements of the Regulation. The disciplined _ current scales for these plans are in conformity with the Actuarial Standard of Practice for Compliance with the NAIC Life Insurance Illustration Model Regulation (ASOP 24) promulgated by the Actuarial

Standards Board. |

When illustrating under the Indexed Rate Crediting Option, the scales used In illustrating non-guaranteed elements for policy form 8212 (including. state specific variations and applicable riders) are identical to those used when illustrating under the Declared Rate Crediting Option except for the interest crediting rate. The interest crediting rate used in the Illustration is based ona geometric average that would have. . resulted from application of a given participation rate and cap rate to historical S&P 500 returns.

The Regulation governs illustrations under the Indexed Rate Crediting Option (by not including these illustrations among those specifically excluded). To the extent it is applicable, ASOP 24. provides guidance to the lilustration Actuary as to certification of compilance with the Life Insurance Illustrations ‘Model Regulation. However, the Regulation and ASOP 24 were developed before Equity Indexed | | Universal Life products emerged in the marketplace. It is not possible to provide meaningful itustrations < | of such products that are fully in accordance with the Regulation. With regard to the ASOP, where a oe question arises with.regard to the applicability of a standard of practice, or where no applicable standard exists, an actuary is directed to use professional judgment, taking into account generally accepted actuarial principles and practices. Consistent with this charge, it is the opinion of the undersigned ‘that, when provided in conjunction: with appropriate disclosure, these illustrations comply with the spirit and intent of the stated goals of the Regulation to ensure that lilustrations do not mislead purchasers of life insurance and to make Illustrations more understandable. | oe : _

‘Non-guaranteed elements illustrated for new policies are consistent with those illustrated for similar in force policies. Hliustrated non-guaranteed elements for new and in force policles subject to this regulation are consistent with the non-guaranteed elements amounts actually credited or charged to the same or

similar forms. :

_LIFE ADMINISTRATIVE OFFICE: ONE NATIONAL LIFE DRIVE » MONTPELIER, VERMONT 05604-0001 Uae Aer JAAN Weer Macviueaion Fanrs Matias TrEyas 75247-1921 DOI 00001 8

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The expenses used in the calculation of the dsciptned current scale for all policy forms subject to the illustration reguiation were fully allocated.

In making this certification, | have evened expense allocations, actuarial. assumptions and actuarial ‘methods, and aie tests of actuarial calculations as | considered necessary.

Date

‘Craig A. Smith, FSA, MAAA Itiustration ae for Life Insurance Com pany of the Southwest

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