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U.S. Life Insurance Markets Remain Stable; Term Life Premiums Drop To Historic Lows

Quotesmith.com, Inc. (ticker: QUOT, exchange: NASDAQ) News Release - 9/21/2001

U.S. Life Insurance Markets Remain Stable; Term Life Premiums Drop To Historic Lows DARIEN, Ill., Sep 21, 2001 /PRNewswire/ --

Total September 11th Life Insurance Losses not Expected to Exceed 3 Percent of Industry's Capital and Surplus; Substantial Bargains for Insurance Shoppers Abound as Term Life Insurance Prices Continue to Drift Downward

Quotesmith.com (Nasdaq: QUOT) has today released the results of an extensive term life insurance rate comparison study, which examined the rates now being charged by more than 90 leading U.S. life insurance companies.

Quotesmith.com maintains a continually-updated insurance information Web site which publishes up-to-the-day accurate premium quotes, policy coverage information and latest financial stability ratings of more than 300 leading life, health and auto insurance companies. Visitors to the company's Web site can purchase insurance from any company shown.

Commenting on current term life market prices, Quotesmith.com CEO Robert Bland said, "Despite our national tragedy brought about by the horrendous World Trade Center and Pentagon attacks of September 11th, the U.S. life insurance market remains stable with plenty of capital. While current life insurance claims estimates run as high as $5 billion, this amount represents no more than 2.5 percent of the industry's total $200 billion capital base as of March 31, 2001. In fact, term life insurance premiums for healthy applicants have been steadily drifting downward this year to the point where they have now reached all-time lows. This is welcome news for life insurance shoppers who now wish to lock in low rates for many years to come."

For example, the popular $250,000, 15-year level premium policy is now priced about 13 percent below what it was just six months ago for all age groups between 35 and 75. Today, a healthy, non-smoking 45-year old male can buy $250,000 of 20-year level term life insurance for $370 per year vs. paying $400 just six months ago.

Commenting on the average premium decreases that have occurred over the past six months, Will Hemsworth, senior vice president of marketing remarked, "Premiums for females dropped an average of 7.8 percent as compared to a 6 percent average decrease for males. The policy with the most pronounced reduction in premium is the popular 15-year level term policy, which scored an average 13 percent price reduction for both males and females. Every other policy category, including the 10, 20, 25 and 30-year level term policies, recorded lower premiums this month than six months ago. This emphasizes the importance of comparative shopping before you buy or renew any life insurance policy."

The following table represents actual non-tobacco term life premiums that are available in the U.S. marketplace as of September 21, 2001.

$250,000 Term Life Sampler
Guaranteed Annual Premiums/Guaranteed Level Term Period
 
Male Premiums
AGE 10 YEAR 15 YEAR 20 YEAR 25 YEAR 30 YEAR
35 $ 105 $ 133 $ 168 $ 263 $ 315
40 $ 130 $ 178 $ 235 $ 360 $ 425
45 $ 198 $ 298 $ 370 $ 595 $ 703
50 $ 308 $ 458 $ 565 $ 945 $ 1,128
55 $ 450 $ 708 $ 823 $ 1,443 $ 2,785
60 $ 670 $ 1,080 $ 1,460 $ 3,630 $ 4,410
65 $ 1,150 $ 1,813 $ 2,815 $ 5,250 $ 6,180
70 $ 2,025 $ 3,003 $ 4,860 $ 8,430 $ 8,430
75 $ 4,087 $ 6,078 $ 8,100 $ 10,770 $ 13,260
 
Female Premiums
AGE 10 YEAR 15 YEAR 20 YEAR 25 YEAR 30 YEAR
35 $ 98 $ 120 $ 145 $ 220 $ 243
40 $ 123 $ 160 $ 183 $ 305 $ 313
45 $ 173 $ 200 $ 268 $ 425 $ 465
50 $ 233 $ 298 $ 400 $ 615 $ 608
55 $ 333 $ 405 $ 583 $ 1,068 $ 1,803
60 $ 475 $ 678 $ 948 $ 2,400 $ 3,120
65 $ 710 $ 973 $ 1,460 $ 3,900 $ 4,800
70 $ 1,165 $ 1,363 $ 2,970 $ 6,900 $ 6,900
75 $ 1,970 $ 3,590 $ 5,820 $ 9,390 $ 10,440

(see Notes to Table, below)

At its Web site, Quotesmith.com provides easy-to-use reference tools and educational materials to assist insurance shoppers. Every Quotesmith.com term life illustration comes complete with two full pages of policy coverage and reference information, including published underwriting guidelines. Another unique feature is that every Quotesmith.com term life quote also shows the latest independent ratings from A.M. Best, Fitch, Moody's, Standard & Poor's and Weiss Ratings, Inc.

Quotesmith.com is committed to providing a useful, fast and comprehensive insurance information experience on the Internet. The Quotesmith.com service empowers insurance buyers with near-perfect market information (including knowledge of potential savings) which is free, instant, easy to use, up-to- the-day accurate and not available from any other single source. The company electronically collects consumer demand for coverage and can rapidly communicate such demand directly to insurance companies in an accurate and efficient manner, thus making the buying process fast and easy.

Instant, real-time quotes for life insurance amounts up to $25 million are available at www.quotesmith.com 24 hrs. per day, 7 days per week.

About Quotesmith.com

Quotesmith.com owns and operates the largest and most comprehensive insurance price comparison service in America. The company provides instant, guaranteed accurate, company-authorized quotes for more than 300 leading insurance companies covering several lines of insurance including life, auto, health, short term medical, small group medical, dental, fixed annuities and long-term care.

In addition to providing the widest selection of instant insurance quotes available from any single source, the Quotesmith.com site also allows visitors to purchase insurance from the company of their choice in a buyer-controlled environment which leads to maximum premium savings.

Quotesmith.com provides complete, toll-free quote-to-policy-delivery customer service through the use of insurance-experienced, in-house, salaried representatives. Quotesmith.com generates revenues from the receipt of commissions and fees paid by participating insurance companies.

Shares of Quotesmith.com trade on the Nasdaq SmallCap Market Exchange under the symbol "QUOT."

Notes to Table

Final premiums and coverage availability can vary depending upon age, state availability, height, weight, hazardous activities, personal and family health history. The non-tobacco use premiums shown above may include: American Life of New York, New York, NY, form 1-350 21-184; Banner Life, Rockville, MD, form RT-97; Canada Life, Atlanta, GA, form 10761-10773; Empire General Life, Shawnee Mission, KS, form EGT-06; First Colony Life, Lynchburg, VA, form ULFCL99; First Penn-Pacific Life, Schaumburg, IL, forms BT-1000 & UL- 1101AA; Great-West Life & Annuity, Greenwood Village, CO, form J348; Jackson National Life, Lansing, MI, form L1665; John Hancock Variable Life, Boston, MA, form 98TLIFE; North American Life & Health, Chicago, IL, form LS108A; Ohio National Life, Cincinnati, OH, form 92-TR-1; Old Republic Life, Chicago, IL, form IL-D0000; West Coast Life, San Francisco, CA, form 001139200; Western- Southern Life, Cincinnati, OH, form 9911-300 WSA. California and Illinois rates used for illustrative purposes. Premium rates shown and policy forms may vary by state or not be available at all in certain states. Certain premiums for residents of New York and New Jersey may be higher than those shown and can be obtained by visiting www.quotesmith.com. Some premiums shown may be graded premium life policies and/or term-like universal life policies. Term life premium rates always escalate after initial rate guarantee period. California and Utah dba Quotesmith.com Insurance Services: CA #0827712, #OA13858; UT #90093.

Cautions about Forward-Looking Statements

This announcement may contain forward-looking statements that involve risks, assumptions and uncertainties pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. This announcement also contains forward-looking statements about events and circumstances that have not yet occurred and may not occur. Expressions of future goals and similar expressions including, without limitation, "may," "will," "believes," "should," "could," "hope," "expects," "expected," "does not currently expect," "anticipates," "predicts," "potential" and "forecast," reflecting something other than historical fact, are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Investors should be aware that actual results may differ materially from the results predicted and reported results should not be considered an indication of future performance. Reported Web site activity and/or quotes are not necessarily indicative of any present or future revenue. The Company will not necessarily update the information in this press release if any forward- looking statement later turns out to be inaccurate. Potential risks and uncertainties include, among others, Quotesmith.com's limited e-commerce operating history, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, consumer trends, competition, risks of system interruption, the evolving nature of its business model, the increasingly competitive online commerce environment, dependence on continuing growth of online commerce and risks associated with capacity constraints and the management of growth. More information about potential factors that could affect the company's financial results is included in the company's Annual Report on Form 10-K for the year ended December 31, 2000, which is on file with the United States Securities and Exchange Commission. Some insurance companies appear at Quotesmith.com for purely informational purposes only and pay no compensation to Quotesmith.com and some insurers pay commissions or fees to Quotesmith.com based upon premium volume or traffic activity produced by Quotesmith.com. Quote availability by state or any other factor is subject to change without notice.

This communication appears as a matter of information only and is not an insurance solicitation. Accordingly, no employee of Quotesmith.com, Inc. is recommending or endorsing any specific insurance company, coverage or policy type within this communication. Some insurance companies appear at Quotesmith.com for purely informational purposes only and pay no compensation to Quotesmith.com and some insurers pay commissions or fees to Quotesmith.com based upon premium volume or traffic activity produced by Quotesmith.com. Quote availability by state of residence or any other factor is subject to change without notice.

Quotesmith.com and LTCompare are registered trademarks and/or registered service marks of Quotesmith.com, Inc. All other names are trademarks of their respective owners.

SOURCE Quotesmith.com

CONTACT: Will Hemsworth II, Senior Vice President of Quotesmith.com,+1-630-515-0170, ext. 213, or whemsworth@quotesmith.com

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