The following legal notices are mandated by the state or jurisdiction indicated.

NOTICE TO CALIFORNIA AND MASSACHUSETTS APPLICANTS AND INSUREDS:

The following are insurance company subsidiaries of AIG Commercial Insurance Group, Inc., a wholly owned, indirect subsidiary of American International Group, Inc. You are provided with the following information pursuant to Secs. 702 and 703.1 of the California Insurance Code, as amended, and Massachusetts Division of Insurance Bulletin 2001-02:

"Jurisdictions in which Insurance Business Transacted" means that, unless indicated otherwise, the insurance company maintains a certificate of authority, which has been issued by the relevant insurance regulatory authorities, to transact insurance business in the jurisdiction(s) listed. If the insurance company only transacts insurance business in a jurisdiction as an eligible "surplus lines" insurer, the insurance company does not maintain such a certificate of authority in that jurisdiction.

THE FOLLOWING INSURERS ARE NOT LICENSED IN NEW YORK AND ARE NOT SUBJECT TO ITS SUPERVISION:

In response to the severe weather conditions in several states, the member companies of AIG Commercial Insurance Group, Inc. (“AIGCI”) have adopted the protocols identified in the emails below, which were sent to the senior underwriting officers of the AIGCI business units, all of the lawyers for such units, and the compliance representatives for such units. The emails were also sent to the AIGCI operational units, all of the lawyers for such operational units, and the compliance representatives for such operational units.

This is a follow up to the email below regarding our conduct in states affected by severe weather in the past several weeks.
The Governor of Missouri has appealed to insurers to "provide extended grace periods for premium payments and claims documentation procedures for those affected by the flooding."

In response to this request, in the affected areas in Missouri, we will:

• Adopt a 60 day grace period for payment of premium, for all premiums coming due on or prior to June 30, 2008.
  
• Defer the issuance of new cancellation/non-renewal notices to the affected policy holders or respecting affected property until 8/31/08.
  
• Extend until 8/31/08 all policy provisions that provide a timeframe for insureds to take action.

A complete listing of the affected twenty two counties and Governor Blunt’s comments can be found using the following link.

http://insurance.mo.gov/cgi-bin/news/news2.cgi?newsid=EkEuVAEVlVfLCaWaEZ

Please contact your product line officer or your assigned legal counsel with questions.

Sent: Tuesday, June 24, 2008 9:01 AM
Subject: FW: Policy Cancellation Moratorium: Indiana, Illinois, Iowa
Importance: High

As many of you are undoubtedly aware, several states have been affected by severe weather in the past 3-4 weeks. We have received instructions from Illinois, Indiana and Iowa regarding our treatment of (a) policyholders residing in affected areas and (b) property insured in affected areas. AIG CI has interpreted these instructions to apply to both admitted and non-admitted insurers.

Generally, and perhaps most importantly, the senior insurance officials in Illinois, Indiana and Iowa have asked insurers to provide a 60 day grace period for the payment of premium. We have been working with the AIGCI collections team to populate our systems with the affected areas’ zip codes to ensure that we comply with the grace periods. The affected zip codes are identified in the attached spreadsheets.

Below are links to the communications, which identify the affected areas and are summarized below. Underwriters should review the communications and take all necessary actions. In addition, underwriters should be comfortable discussing weather-related issues with brokers. If you have any questions, please contact your URD product line officer or your assigned legal counsel. URD will be responsible for providing updates/new information on this issue.

Illinois

Through Bulletin CB#2008-04 – Exceptions for Consumers in Disaster Area
(http://www.idfpr.com/DOI/General/CB200804ExceptionsforConsumersinDisasterareasDOI.pdf), Director McRaith has issued the following directives:

• All cancellation/non-renewal notices issued on or after 6/10/08 to affected policy holders or respecting affected property must be withdrawn; coverage must be reinstated without any lapse;
• No new cancellation/non-renewal notices may be issued to affected policy holders or respecting affected property until 8/18/08;
• All policy provisions that provide a timeframe for insureds to take action must be extended by at least 60 days; The time period for repairs on affected property must be extended by not less than 60 days if the statutory time frame, or that provided in the policy, cannot be met;
• Insurers may not cancel/nonrenew policies covering affected property due to “increase in the risk originally accepted” or the geographic location of the risk; and
• Insurers are also asked to consider affording exceptions to policy requirements and rating rules in the event such requirements or rules cannot be met due to the weather conditions.

Bulletin CB#2008-04 also provides instructions as to how to handle inquiries from medicare beneficiaries and advise insureds about the ability to file consumer complaints with the ILDOI for disaster-related issues. Finally, insurers are required to post certain information on their websites. We are working with the AIGCI website team to satisfy this requirement.

Indiana

Through Bulletin 163 – Policy Cancellation Moratorium, (http://www.in.gov/idoi/files/Bulletin_163.pdf) Commissioner Atterholt has asked insurers to extend the grace period for the payment of premium for 60 days, beginning 6/17/08. During the extended grace period, insurers may not cancel policies issued to insureds in designated disaster areas for non-payment of premium. The extension does not apply to cancellations for any other reason, which may be made in accordance with applicable laws and regulations. The moratorium has a retrospective component as well, applying to policies affected by the tornadoes that hit on 5/30/08.

Iowa

Through Bulletin 08-09, Deferral of Premium Payments and Policy Time Frames for Flood and Tornado Victims (http://www.iid.state.ia.us/docs/bull0809.pdf), Commissioner Voss has asked insurers to provide a 60 day grace period for the payment of premium, for all premium coming due before the end of June. Commissioner Voss also requests that all policy provisions that provide a timeframe for insureds to take action must be extended by at least 60 days.

In the event that an insured wishes to contact the insurance department for any issues relating to the severe weather conditions, they may do so as shown below. Insureds are also welcome to contact their AIGCI insurer at 1-877-638-4244.

ILLINOIS DIVISION OF INSURANCE
1-866-445-5364
http://www.idfpr.com/doi/Complaints/Complaints.asp

INDIANA DEPARTMENT OF INSURANCE
1-800-622-4461
http://www.in.gov/idoi/2328.htm#1

IOWA DEPARTMENT OF INSURANCE
1-877-955-1212
http://www.iid.state.ia.us/complaints/index.asp

MISSOURI DEPARTMENT OF INSURANCE
1-800-726-7390
http://insurance.mo.gov/consumer/complaints/index.htm