Exhibit 99.1

                              NOTICE OF TERMINATION
                              ---------------------

                               Regan Holding Corp.
                               2090 Marina Avenue
                               Petaluma, CA 94654


June 22, 2005

SCOR Life U.S. Re Insurance Company
Colonnade Building III, Suite 700
15305 Dallas Parkway
Addison, TX 75001
Attention:  Mr. Yves Corcos, Chief Executive Officer

Dear Mr. Corcos:

We refer you to the Purchase Option Agreement dated as of July 1, 2002,  between
SCOR Life U.S. Re  Insurance  Company  ("SCOR")  and Regan  Holding  Corp.  (the
"Option  Agreement").  We  understand  that the A.M.  Best  Rating of  Investors
Insurance  Corporation has fallen below an "A-  (Excellent)" and is currently at
"B++ (Very Good)." Therefore, pursuant to Section 10(a) of the Option Agreement,
we hereby  terminate  the  Option  Agreement  and  demand a refund of the Annual
Option Fees, as well as all other Option Fees (as those terms are defined in the
Option  Agreement)  paid to SCOR pursuant to Section 4 of the Option  Agreement,
with  interest at a rate of seven  percent (7%) per annum on each such  payment,
calculated  from the date each  payment was made.  We compute  that amount to be
$3,316,590.28 as of June 20, 2005.  Interest is continuing to accrue to the date
the matter is settled and we expect immediate payment of such amount in full. In
addition,  we  reserve  all  other  rights  that we may have  under  the  Option
Agreement.

Sincerely,


/s/ R. Preston Pitts

R. Preston Pitts
President