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North Coast Life Insurance Company Announces Tax Allocations of 2006 Dividend Distributions.

SPOKANE, Wash. -- North Coast Life Insurance Company (OTCBB:NCLIP) today announced the tax allocation of the 2006 dividend distributions on its preferred stock.

Form 1009-DIV will summarize the allocation of the 2006 dividends paid on shares of the preferred stock. The amounts indicated on Form 1099-DIV should be reported on each stockholder's 2006 federal income tax return. The schedule below, presented on a per share basis, is provided for information purposes only, and should only be used to clarify the Form 1099-DIV.

The 2006 distributions paid with respect to North Coast Life Insurance Series A Preferred Stock (Cusip No. 658654207) are as follows:
 Ordinary Return of
Payment Date Total Dividend Dividend % Capital %
------------ -------------- ---------- ---------

4/28/06 $0.25 79.00% 21.00%
7/31/06 $0.25 79.00% 21.00%
10/31/06 $0.25 79.00% 21.00%


For 2006, the ordinary dividends are considered qualified.

The return of capital distributions are generally not taxable in the year of payment but are deferred until the disposition of the shares. Return of capital distributions reduce the original cost basis of the investment which is used in calculating any gain or loss in the year of disposition. Shareholders are advised to consult their tax advisors for proper tax calculations when disposing of shares.

The taxability of the 2006 dividends is not indicative of the taxability of future dividends.

About North Coast Life

North Coast Life is a life insurance company headquartered in Spokane, Washington, specializing in the family marketplace with interest sensitive whole life (trademark name "Versatile Life"), traditional whole life, term life and a complete line of annuity products. More information is available at www.nclife.com.
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Publication:Business Wire
Date:Jan 24, 2007
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