Policy Limits Change

Policy Limits Change

May 3, 2010

TO: ALL OUR PROPERTY BROKERS

RE: SIUManagers – DIFFERENCE IN CONDITIONS (DIC) FACILITY

Dear Friends:

We are very excited to announce an increase in capacity!

We may now offer up to $30,000,000 in policy limits on our QBE Specialty Insurance Company products.

Also, we have updated our minimum value requirements for Replacement Cost coverage. Attached is a copy of our new requirements for your reference. Of course, we will still accept a Marshall Swift or other valid form of building valuation or copies of the last three years’ fire insurance policy showing the limits and values.

We hope that you will find these changes beneficial to your marketing and production efforts.

We have made every effort to provide quality products, excellent service, and integrity in our underwriting. Should you have any questions please do not hesitate to contact me or one of our underwriters.

Sincerely,

Angela C. Urrutia
Executive Vice President

Minimum required values for Replacement Cost (Without valid Valuation Documentation)

Earthquake Zones A, B, C & D:

Description Class Code Minimum Price/Sq Ft
Wood Frame – Dwellings D 1A, 1B,1C, 1D 420.00
Wood Frame D 1A, 1B,1C, 1D 160.00
All Metal S 2A & 2B 55.00
Steel Frame A 3A, 3B, 3C 210.00
Reinforced Concrete B 4A, 4B, 4C & 4D 190.00
Mixed Construction C 5A, 5B & 5C 130.00
Tilt-up C 5AA 80.00
Engineered EQ Resistive A 6 315.00

Earthquake Zone E:

Description Class Code Minimum Price/Sq Ft
Wood Frame – Dwellings D 1A, 1B,1C, 1D 335.00
Wood Frame D 1A, 1B,1C, 1D 125.00
All Metal S 2A & 2B 45.00
Steel Frame A 3A, 3B, 3C 170.00
Reinforced Concrete B 4A, 4B, 4C & 4D 150.00
Mixed Construction C 5A, 5B & 5C 105.00
Tilt-up C 5AA 65.00
Engineered EQ Resistive A 6 250.00

Earthquake Zones F, G & H and Non-California

Description Class Code Minimum Price/Sq Ft
Wood Frame – Dwellings D 1A, 1B,1C, 1D 275.00
Wood Frame D 1A, 1B,1C, 1D 105.00
All Metal S 2A & 2B 40.00
Steel Frame A 3A, 3B, 3C 135.00
Reinforced Concrete B 4A, 4B, 4C & 4D 125.00
Mixed Construction C 5A, 5B & 5C 85.00
Tilt-up C 5AA 55.00
Engineered EQ Resistive A 6 210.00