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NOTICE <br />1. THE INSURANCE POLICY THAT YOU HAVE PURCHASED IS <br />BEING ISSUED BY AN INSURER THAT IS NOT LICENSED BY THE <br />STATE OF CALIFORNIA. THESE COMPANIES ARE CALLED <br />"NONADMITTED" OR "SURPLUS LINE" INSURERS. <br />2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY <br />REGULATION AND ENFORCEMENT WHICH APPLIES TO <br />CALIFORNIA LICENSED INSURERS. <br />3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE <br />INSURANCE GUARANTEE FUNDS CREATED BY CALIFORNIA <br />LAW. THEREFORE, THESE FUNDS WILL NOT PAY YOUR <br />CLAIMS OR PROTECT YOUR ASSETS IF THE INSURER BECOMES <br />INSOLVENT AND IS UNABLE TO MAKE PAYMENTS AS <br />PROMISED. <br />4. CALIFORNIA MAINTAINS A LIST OF ELIGIBLE SURPLUS LINE <br />INSURERS APPROVED BY THE INSURANCE COMMISSIONER. <br />ASK YOUR AGENT OR BROKER IF THE INSURER IS ON THAT <br />LIST. <br />5. FOR ADDITIONAL INFORMATION ABOUT THE INSURER YOU <br />SHOULD ASK QUESTIONS OF YOUR INSURANCE AGENT, <br />BROKER, OR "SURPLUS LINE" BROKER OR CONTACT THE <br />CALIFORNIA DEPARTMENT OF INSURANCE, AT THE <br />FOLLOWING TOLL -FREE TELEPHONE NUMBER; 1-804- 9274357. <br />6. IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE <br />POLICY YOU HAVE PURCHASED BE BOUND IMMEDIATELY, <br />EITHER BECAUSE EXISTING COVERAGE WAS GOING TO LAPSE <br />WITHIN TWO BUSINESS DAYS OR BECAUSE YOU WERE <br />REQUIRED TO HAVE COVERAGE WITHIN TWO BUSINESS DAYS, <br />AND YOU DID NOT RECEIVE THIS DISCLOSURE FORM AND A <br />REQUEST FOR YOUR SIGNATURE UNTIL AFTER COVERAGE <br />BECAME EFFECTIVE, YOU HAVE THE RIGHT TO CANCEL THIS <br />POLICY WITHIN FIVE DAYS OF RECEIVING THIS DISCLOSURE. <br />IF YOU CANCEL COVERAGE, THE PREMIUM WILL BE <br />PRORATED AND ANY BROKER FEE CHARGED FOR THIS <br />INSURANCE WILL BE RETURNED TO YOU. <br />SF 199222.2 73670 00741 D -2 (EFFEC77VE JANUARY 1, 2005 THROUGH DECEMBER 31, 2007) <br />