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NEA Members Insurance Trust

1997 SUMMARY ANNUAL REPORT
(Trust Plan Year Beginning September 1, 1997)

The following is the summary annual report for the NEA Members Insurance Plan, Employer Identification Number 52-1126682, including information for NEA Life Insurance Program, NEA Accidental Death & Dismemberment Insurance Program, DUES-TAB, and NEA MemberCare® Medicare Supplement Program for period beginning September 1, 1997, and ending August 31, 1998. The annual report has been filed with the Internal Revenue Service, as required under the Employee Retirement Income Security Act of 1974 (ERISA).

Basic NEA Members Insurance Trust Financial Information
The value of Trust assets, after subtracting liabilities of the Trust was $85,433,953 as of August 31, 1998, compared to $93,384,886 as of September 1, 1997. During the Trust year, the Trust experienced a decrease in its net assets of $7,950,933. This decrease includes unrealized appreciation and depreciation in the value of Trust assets; that is, the difference between the value of the Trust assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the Trust year, the Trust had total income of $58,900,455 including participant contributions of $49,519,987, realized gains of $13,992,717 from the sale of assets, and earnings from investments of $5,928,064.

Trust expenses were $66,851,388. These expenses included benefits paid to participants and beneficiaries, administrative and other expenses.

Information For NEA Life Insurance Program
The Trust has a contract with The Prudential Insurance Company of America to pay all Life Insurance claims incurred under the terms of this program. The total contributions for the Trust plan year beginning September 1, 1997, and ending August 31, 1998, were $36,419,577.

Because it is a so called "experienced rated" contract, the premium costs are affected by, among other things, the number and size of claims. Of the total contributions made for the Trust year ending August 31, 1998, the contributions made under such "experienced-rated" contract were $36,419,577 and the total of all benefit claims paid under the contract during the Trust year was $33,555,001.

Information For NEA Accidental Death & Dismemberment (AD&D) Program
The Trust has a contract with The Prudential Insurance Company of America to pay all AD&D claims incurred under the terms of the Trust. The total contributions for the Trust year beginning September 1, 1997, and ending August 31, 1998 were $2,207,700.

Because it is a so called "experienced rated" contract, the premium costs are affected by, among other things, the number and size of claims. Of the total contributions made for the Trust year ending August 31, 1998, the contributions made under such "experienced-rated" contract were $2,207,700 and the total of all benefit claims paid under the contract during the Trust year was $1,590,357.

Information For Dues-Tab Program
The Trust has a contract with The Prudential Insurance Company of America to pay all DUES-TAB claims incurred under the terms of the Trust. The total contributions for the Trust year beginning September 1, 1997 and ending August 31, 1998 were $2,042,346.

Of the total contributions made for the Trust year ending August 31, 1998, the contributions made were $2,042,346 and the total of all benefit claims paid under the contract during the Trust year was $1,727,494. Benefits charged, less benefit claims paid, were ($38,586) which is comprised of incurred but unreported claims and a pooled claim charge. Trust expenses, less benefit claims paid, were $45,434 in premium taxes and $142,457 in other expenses.

The DUES-TAB program is self-supporting and paid by premiums from the NEA Members Insurance Trust funds rather than from Member contributions.

Information For NEA Membercare Medicare Supplement Program
This information will be distributed directly to NEA MemberCare® Medicare Supplement Program participants.

Additional Information
As a participant, you have the right to receive a copy of the full annual report, or any part thereof for a reasonable charge or you may inspect the Annual Report without charge at the office of NEA Members Insurance Trust, c/o NEA Member Benefits, 1201 Sixteenth Street, N.W., Washington, D.C. 20036 or at the U.S. Department of Labor in Washington, D.C. You also have the right to receive from the Trust Administrator, on request and at no charge, a statement of the assets and liabilities of the Trust and accompanying notes, or a statement of income and expenses of the Trust and accompanying notes, or both. The Administrator will state the charge, if any, of the specific document you request so you can find out the cost before ordering.