1. Washington State Transit Insurance Pool (WSTIP) Assessing WSTIP’s Pricing Relative to the Open Market September 27, 2012 Brian A. White Rick Steddom Alliant Insurance Services, Inc. 720 Olive Way Suite 1700 Seattle, WA 98109 PHONE (206) 204-9126-0271 www.alliantinsurance.com

2. © 2012 Alliant Insurance Services, Inc. All rights reserved. Strategy to achieve goal of assessing WSTIP’s pricing relative to the Open Market  Review member loss history to identify more profitable members (losses vs. premium), which should attract preferred market attention.  Approach traditional stand-alone Automobile Liability markets w/ low deductibles of $25K - $50K.  Also approach more typical Public Entity “SIR” ($100K - $1M) markets, for stand-alone Auto Liability. 2

3. © 2012 Alliant Insurance Services, Inc. All rights reserved. 3 3 Selecting the “Sample Set”  Reviewed historical losses for the following members: Kitsap Transit Intercity Transit Spokane Transit Authority Whatcom Transportation Authority  Selected two with more profitable loss ratios based on most recent annual premium vs. average annual losses: Kitsap Transit Intercity Transit

4. © 2012 Alliant Insurance Services, Inc. All rights reserved. Results – “Low” Deductible Auto Liability Options:  RLI Transportation: Declination based on loss experience and current pricing, not able to compete.  National Indemnity: Indicated 2 to 3 times current pricing. Requires DL #s, DOB, and MVRs to formalize pricing.  Travelers: Declination, but specifically noted the rates with WSTIP are very low, especially in consideration of the $12 million limits.  Scottsdale: Not interested. Does not see the accounts as profitable in light of current rates and loss experience on both accounts. 4

5. © 2012 Alliant Insurance Services, Inc. All rights reserved. Results – “SIR” Auto Liability Options  Ironshore: Provided indication for $5M XS $1M SIR. See following page.  Great American: Provided indication for $10M XS $100K SIR. See following page.  Genesis: Provided rough indication of 2 to 3 times current pricing levels, but excess of a $500,000 SIR.  Munich: Do not anticipate an ability to compete with what WSTIP currently offers for the 12mil limit and first dollar coverage. 5

6. © 2012 Alliant Insurance Services, Inc. All rights reserved. SIR Approach Results & Analysis 6