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02/25/2005 16:14 1 HORIZON PAGE 11 <br /> r <br /> Travelers <br /> IMPORTANT DISCLOSURE NOTICE OF TERRORISM <br /> INSURANCE COVERAGE <br /> On November 26, 2002, President Bush signed into law the <br /> Terrorism Risk Insurance Act of 2.002 (the "Act"). The Act <br /> establishes a short-term program under which the Federal <br /> Government Wil share in the payment of covered losses caused <br /> by certain acts of international terrorism. We are providing you with <br /> this notice to inform you of the key features-o€ the Act, and to let <br /> you know what effect, if any, the Act will have on your premium_ <br /> Under the Act, insurers are required to provide coverage For <br /> certain losses caused by international' acts of terrorisim as defined <br /> in the Act. The Act further provides that the Federal Government <br /> will pay 'a share of such losses. Specifically, the Federal <br /> Government will pay 90% of the amount of covered lasses caused <br /> by certain acts of terrorism which is in excess of Travelers' <br /> statutorily established deductible for that year. The Act also caps <br /> the amount of terrorism-related losses for which the Federal <br /> Government - or an insurer can be responsible at <br /> $100,000,000,000.00, provided than the insurer has met its <br /> deductible_ <br /> a <br /> Please note that passage of the Act does not result in any change <br /> in coverage under the attached policy or bond (or the policy- or <br /> bond being quoted). Please also note that no separate additional <br /> premium charge has been made for the terrorism coverage <br /> required by the Act. The premium charge that is allocable to such <br /> coverage is inseparable from and � imbedded in your overall <br /> premium, and is no more than one percent of your premium. <br />