1. Louisiana Plans Management System (LPMS) Commercial Training July 2006

2. Major Operational Changes New Telephone System and Call Center Market Equalization Charges Effective 07/01/2006 Commercial/Commercial W&H Application in LPMS Effective 07/01/2006– Tentative quote fee no longer required. Emergency Assessments Effective 01/01/2007

3. Builder’s Risk Renovation Policies Effective July 2006 Gubernatorial Declared Disaster Areas Only Personal and Commercial One Annual Term May be unoccupied but must have building permit or signed contract Fully earned premium payable at time of application – no payment options Mandatory minimum deductible and hurricane deductible

4. Gubernatorial Declared Disaster Areas JeffersonTangipahoa OrleansWashington PlaqueminesCalcasieu St. Bernard Cameron St. TammanyVermilion

5. Producer Binding Authority Effective Date TBD Must submit application via LPMS Qualifications to be established Effect on fees and other charges Application Fee MEC Emergency Assessments

6. Commercial Program Requirements ISO Commercial Lines Manual ISO Classification Manual Knowledge of commercial codes Access to PIAL commercial rating information for non-class rated risks PIAL member company authorization to access PIAL commercial rating system Access to LPMS does not include access to PIAL

8. Current Binding Procedures Producers do not have binding authority Coverage bound upon receipt and acceptance of application package by LA Citizens Determination of Bound Date FAX Binders – Not Available for Commercial Hurricane Binding Restrictions Submission procedures

9. Application Package Properly Completed Signed Application Properly Completed Signed Supplement Commercial Hurricane Loss Statement At least two COLOR pictures - 3x3 minimum size Check or money order – no cash Mobile Home Tie Down/Anchoring Certificate Premium Finance Contract

10. Commercial Policy Limits MAXIMUM POLICY LIMIT OF LIABILITY IS $10 MILLION MAXIMUM LIMITS OF LIABILITY AT ANY ONE LOCATION** Building - $2,000,000. Business Property - $1,000,000. School Property Limits subject to acceptance by the Plan. **Location is defined as the entire area within a described premises or site bounded by public thoroughfares or open waterways. Underwriting – Penny O’NeilClaims – Caroline Baker Linda Kemp

11. How Commercial Limits Can Be Utilized Building must be insured to a minimum of 80% of ACV 90% and 100% coinsurance options available LA Citizens will participate up to its limits on a contributing insurance form basis LA Citizens cannot act as primary insurer Deductible Any layer

12. Commercial Deductible Options Policy Limit $3 Million or Less Mandatory 2% W/H Other perils $500, $1000, $2500, $5000, $10000, $25000, $50000, $75000 Policy Limit more than $3 million and $10 Million or Less Mandatory 5% W/H Other perils $500, $1000, $2500, $5000, $10000, $25000, $50000, $75000 Higher deductibles will be offered in future

13. Commercial Risks Any seasonal dwelling or camp owned in a commercial name or LLC Any dwelling risk with more than four (4) families regardless of ownership Any risk used for commercial purposes regardless of ownership Any risk owned in a commercial name (Exception: Risk with four (4) families or less occupied by tenants as a primary residence

14. Eligible Commercial Risks Reasonable Underwriting Standards Satisfactory housekeeping and maintenance Sound construction with controlled access Insurance requested reasonable to policy valuation requirements Subject to condition surcharges, increased deductible, declination of risk

15. Ineligible Commercial Risks Risk that qualify for dwelling program (Four families or less occupied as a primary residence) Less than 50% occupied (new construction has 60 days to comply) Structural damage or foundation problems Personal storage facilities

16. Perils Insured Against – Only Basic Property Coverage Fire, Lightning, Explosion Windstorm or Hail, Smoke, Aircraft or Vehicle, Riot or Civil Commotion, Sinkhole Collapse, Volcanic Action Vandalism or Malicious Mischief (Optional) Not available for bars, vacant, unoccupied, or seasonal buildings. Sprinkler Leakage (Optional) All the above as defined by CP 10 10 06 95

17. Exclusions Ordinance or Law Earth Movement Governmental Action Nuclear Hazard Utility Services War and Military Action Water All above as defined by CP 10 10 06 95

18. Current Commercial Status Requests for Quotes – May 2006 We will process and keep fee or return with check for fee Returning significant number for lack of properly completed application package Type of coverage requested Building number versus location number Co-Applicant versus additional named insured Endorsements, Billings, and Commissions

19. August 2006 Renewals and Subsequent New application must be submitted via LPMS Cannot complete in house because old system did not capture the required information Less than 1,000 commercial policies in force Can change requested effective date up to sixty (60) days in advance

20. Producer reports claim via LPMS – Currently only available if application submitted via LPMS Bankers is Service Provider (SP) for all commercial policies SP assigns IA to adjust claim IA submits report to SP SP conducts final review and determines settlement SP requests claims checks via LPMS Checks/report mailed to Insured/Producer Claims Process

21. Bankers Insurance Group 3636 S. I-10 Service Rd. #204PO Box 1434 Metairie, LA 70001Metairie, LA 70004 (800) 973-4953 Phone(800) 966-9014 FAX Katrina/Rita Claims (866) 476-6600 Underwriting – Michael Emery (Commercial) Amy Roth (Personal) Claims – Andy Condrey NOTE: Bankers handles all commercial business.

22. First Premium Ins. Group 112 Innwood DrivePO Box 77 Covington, LA 70433Covington, LA 70434 (800) 256-2171 Phone(800) 299-2171 FAX LA Citizens Line(888) 741-0088 Underwriting – April Najolia Claims – Eddie Cole

23. The MacNeill Group 235 Highlandia Drive PO Box 82630 Baton Rouge, LA 70810 Baton Rouge LA 70884 (877) 527-4222 Phone (877) 527-4244 FAX Katrina/Rita Claims (866) 635-4722 Underwriting – Elaine (Bunny) McMorris Claims – Ronnie Landry

24. LA Citizens Contacts Underwriting and PaymentsClaims 433 Metairie Rd. Ste. 4005555 Hilton Avenue, Ste. 320 Metairie, LA 70005Baton Rouge, LA 70808 PO Box 60730PO Box 14839 New Orleans, LA 70160Baton Rouge, LA 70808(888) 568-6455 Phone (504) 831-6676 FAX(225) 928-3090 FAX

25. Technical questions webmaster@lacitizens.com Support General policy or procedural questions policyadmin@lacitizens.com policyadmin@lacitizens.com Website Address www.lacitizens.com