2008 Collector Car Program Update

1. 2008 Collector Car Program Update Mark Faber / Steve Cutforth Product Management Exts. 5622 (Mark) 5369 (Steve)

2. Collector Car is “Revved Up for Success” 2007: • Added over 15,000 new customers • Great loss ratio – 42% • New specialty partners 2008: • Grow even more! • Plan calls for $9 million in growth to $21 million • Will need > 36,000 new policies

3. Key Objectives for 2008 • Deliver “Best in Class” service • Improve & Expand our current product offerings • Lay Groundwork for conversion to new processing system in 2009

4. Best in Service… Dedicated Collector Car Team 1 800 214-2351 Cross Functional: Underwriting, Customer Care, and Processing in one unit Goals: • Faster turnaround on transactions • Build / leverage expertise Management Contacts: Shari Feinen ext. 5879 Underwriting/Processing Adam Bowman ext. 5838 Customer Care

5. State Specific Program Manuals Great reference for all details around the Collector Car program. New business/endorsement procedures, roll over miles, eligibility/storage/usage defined, payment plans, contact information, etc. Covers all state specific items such as: Coverages, discounts, driver exclusion applicability, state specific forms, accident thresholds, etc. Collector Car One Pagers Excellent high level overview of program, great for desk reference. 2008 Collector Car Product Changes Grid Updated version available at www.amig.com/collectorcar/schedule.pdf “Think of Us First” Documents and other marketing materials. Available in eforms on modernLINK… or for customized materials please contact your sales representatives. Revised Marketing/Program Materials…

6. Agents with a direct AMIG contract now have the authority to bind coverage when a complete application packet is received and submitted. A completed application packet includes: the completed application with VIN and exact odometer reading, declarations page for regular use autos, all state specific select reject forms, recent color photos showing all four sides (include interior & engine for modifieds), documentation for any discounts, and payment and any associate forms. Bound application packets must be submitted to the company within 14 days of the requested effective date. Application packets received greater than 14 after the requested effective date will be considered bound on the date received. Maximum vehicle value binding authority is: $75,000 per vehicle, $150,000 per collection. New- Binding Authority now provided!

7. The following risks are now eligible with prior underwriting approval: Vehicles under active restoration: If approved we require annual updates (photos/documentation) on the restoration. We expect the restoration to be completed in 2 year period. Needs to be insured at current value, not completed value. Mid term value updates are allowed as progress is made on the restoration. Vehicles with racing equipment: non-OEM roll bars/cages, wheelie bars, 5 pt. seat restraints, or nitrous oxide/alternative fuel source. Raced “Pro Street” machines (street legal race cars). Coverage is excluded while on the race track Broadened eligibility:

8. Leased or corporately owned vehicles Must not be utilized in the course of the business. Business name should be listed as additional insured on policy. Dune buggies designed solely for street use Vehicles with trailers or towing apparatus Vehicles for sale or consignment at time of application. Please contact the Collector Car Team department with specific details on the risk prior to binding. Broadened eligibility (continued):

9. New Program Changes: • Highlights: • Improve competitiveness in key states • Differentiate program with new / unique coverages • 45 states filed: • 18 with rate changes and coverage introductions: • AZ, CO, FL, GA, IL, IN, KY, MD, MN, MO, NV, NY, OH, PA, RI, TN, TX, and WA • 27 with coverage introductions only • Changes not filed in CA, MA, and NC. • Target effective date for changes is 5/1/08, some states will roll out • later due to state approvals. • See the most up to date roll out schedule at: http://www.amig.com/collectorcar/schedule.pdf

10. Overall Rate levels were aligned across these states. 6,000 mile plan is now available for Exotics (may require higher deductible). $250 minimum written premium introduced for policies insuring a modified vehicle. Only applicable to policies written after the effective date of the changes. Liability Overall rates increased. Vehicle classification differences removed. Physical Damage Late model, Exotics, and modified vehicle rates were adjusted for competitiveness. Additional deductible options: $250, $500, $1,000, $2,500 and $5,000 for Antique, Classic and Collectible vehicles. $1,000 and $2,500 are now available for Exotics over $100,000. All vehicles valued at over $100,000 are now eligible for a price break (approximately 20%) regardless of deductible selection or modification level. Rate Adjustments & Deductible Options…

11. “Nine to Five” Driver Allows limited commuting to work. Maximum of 2 times per week and must be operated by the named insured or listed operator. Vehicle specific coverage. $75 charge for Collectible and Exotic vehicles (non modified less than 19 years old) $50 charge for all others. Full Safety Glass Allows a waiver of the selected deductible for damage to safety glass. Vehicle specific coverage. Cost varies from $15 to $150 dependent upon comprehensive deductible on vehicle. New/Revised Coverages…

12. New/Revised Coverages (continued)… Additional Spare Parts $500 automatically included with policy, ability to purchase up to $10,000. Vehicle specific coverage. Cost is $12.50 per $100 of coverage. Nationwide Roadside Assistance The base towing coverage is increased to $75.00. Our Roadside assistance program provides : 24 x 7 coverage Increases the $75 limit to $200 per occurrence (maximum of 3 per policy period). A wallet card sent with the policy renewals. Flat bed towing Lock out, flat tire, fuel service No out of pocket expense for the customer When service is not supplied by Nations Safe Driver (our service provider), we will only pay reasonable charges up to $150.

13. Car Club/Affinity Group Discount 10% discount available for members of approved Car Clubs/Affinity Groups To be approved, the agent/club must: Execute a written agreement with an agent or the company to allow for marketing of the club/promotion of the program through the association (link on website, pass out material at meetings, etc.) Submit documentation of detailed information on the club including states operating in, any dues payments, number of members, focus of club (model specific, age specific, etc.), copy of charter, website, physical address, etc. This information should be faxed to 800-603-4617 As the list of approved car clubs/associations is expanded, previously approved groups will be published. Proof of membership in an approved club must be submitted for policies with this discount. Failure to provide such will result in the removal of the discount. New/Revised Discounts…

14. New/Revised Discounts (continued)… Large Collection Discount • 20% discount on the comprehensive and collision premiums is available for policies insuring more than one vehicle with a total collection value that exceeds $250,000. • Note: This will not automatically apply to policies written prior to the implementation of this discount. Please notify the Collector Car Team of any risks that may need to have this discount applied.

15. We want your business! • Great incentives for conversion business • Use our conversion team • Program comparisons vs. competition • Mailing campaign in spring • Rollover mileage plan • Post card mailing • Give us feedback…