Office of Insurance Regulation Hosting Workshop re Florida Hurricane Cat Fund Emergency Assessment 7/20/06

Jan 14, 2007

As you are aware, there has been much discussion regarding the liquidation of the Poe Insurance Companies and the Assessments from both the Florida Hurricane Catastrophe Find and the Florida Insurance Guaranty Association, Inc. There has, however, been little direction to date regarding how authorized insurers are to properly handle these assessments.

The Office of Insurance Regulation (“OIR”) is hosting a workshop concerning the Florida Hurricane Catastrophe Fund Emergency Assessment on Friday, July 28, 2006. Several Members of our firm will attend this workshop and provide a report on the information made available at the workshop.

There is some information available regarding the Florida Insurance Guaranty Association, Inc. (“FIGA”) assessment on www.figafacts.com, including the Notice of the 2006 Assessment, Assessment Levy 01-2006 and the letter from FIGA to the OIR stating that an assessment is necessary. Pursuant to Florida Statute §631.57(3)(a), the OIR issued Assessment Levy No. 01-2006 to all members writing coverage in the “all other” lines of business in the State of Florida. “All other” lines include:

Fire

Allied Lines

Farmowners Multiple Peril

Homeowners Multiple Peril

Commercial Multiple Peril (Non-Liability Portion)

Commercial Multiple Peril (Liability Portion)

Inland Marine

Medical Malpractice

Earthquake

Other Liability

Other Liability- Occurrence

Other Liability- Claims-Made

Products Liability

Products Liability – Occurrence

Products Liability – Claims-Made

Aircraft (All Perils)

Burglary and Theft

Boiler and Machinery

Should you have any questions, please does not hesitate to contact this firm.

Regards,

Fred E. Karlinsky