1. 1 Environmental Insurance Update Colorado Bar Association Environmental Law Section Topical CLE Luncheon Date: Tuesday, March 31, 2009 12:00 p.m. - 1:30 p.m. Speakers: Melanie Nesterenko of Rock Hill Underwriting Management www.rhkc.comwww.rhkc.com Michael E. Herrmann, P.G., Environmental Insurance Producer James C. Herrmann & Associates, Ltd. Legacy Liability Solutions, LLC – Alternative Risk Management Strategies for Long Lived Environmental Exposures Topic: "Environmental Insurance Update."

2. 2 Environmental Insurance Update Topics AIG – State of Affairs (MEH) Current Environmental Insurance Markets (MJN) Trends in Coverage and Terms/Alternative Risk Management Tools (MEH)

3. 3 AIG – State of Affairs Commercial Insurance Company Handout March 12, 2009 Highlights of AIG Presentation: New name – AIU Holdings Financial overview and performance What does this all mean to the insured? Discussion/questions

4. 4 Current Environmental Insurance Markets Many New “Markets” and Competition Few companies for retroactive and long term risk, financial assurance guarantees, closure/post closure Many markets for contractor pollution liability risk and annual/short term and lower risk site liability Competition to distinguish on service, pricing, coverage - relationships

5. 5 Current Environmental Insurance Markets AIG (AIU Holdings) – all lines Chubb – all lines ACE/ACE Westchester – all lines Zurich – all lines XL – all lines Arch – all lines + lender liability policy LIU – all lines

6. 6 Current Environmental Insurance Markets Great American – all lines, no casualty – related products Navigators – all lines Ironshore – all lines Rockhill/NECC – all lines American Safety – all lines Aspen – CPL, when GL is written with Aspen

7. 7 Current Markets Continued Nautilus, all lines except PLL Hudson – all lines Everest – CPL Endurance American (Freberg) – all lines James River – all lines RLI – all lines Caitlin – professional/CPL only

8. 8 Current Markets Continued Philadelphia Insurance – all lines Argo Pro – all lines

9. 9 Trends and Alternative Risk Management Tools Traditional Market Limitations: Coverage and Term Alternative Risk Transfer (ART) emerging to address concerns posed by “difficult” and industry specific risks. Captives and Risk Retention Groups to Access Reinsurance Markets Advanced Risk Analysis, Loss Control and Prevention Applying Enterprise Risk Management (ERM) Strategies Closure/Post-Closure Markets Annuities and Trusts to manage long term environmental exposures associated with Asset Retirement Obligation (ARO)

10. 10 Environmental Insurance Update Questions & Discussion