HOMEOWNERS INSURANCE

1. HOMEOWNERS INSURANCE Updated: 7/25/07

2. ABOUT TSC>DIRECT • Tri-State Consumer Insurance Company • TSC>DIRECT has been in business for over 20 years • Headquartered in Jericho, NY • Our focus on the NYC/LI region has enabled us to identify the special needs of the people living in the lower NY area and provide superior service and pricing

3. TSC Writes Homeowners Policies for • Queens • Manhattan • Bronx • Brooklyn • Staten Island • Nassau County • Suffolk County (as far east as Smithtown) • Westchester • Orange County • Rockland County

4. TSC>DIRECT is rated EXCELLENT by A.M. Best

5. The TSC>DIRECT Team • Penny Hart, President and CEO • Kathy Casale, Director of Marketing • Jason Smith, Special Projects Coordinator • Jennifer Ragusin, Homeowners Coach Joe DeRosa, Claims Coach • 130 TSC employees Knowledgeable Friendly Dedicated

6. Making it Easy • TSC offers a variety of payment schedule options • Requesting a quote-fast & easy • Claims & Service available by phone or online-24/7 • Located in NY and staffed by New Yorkers “For New Yorkers, by New Yorkers”

7. QUOTE PROCESS Lead Time Required Renewals: 30 days New Business: will be expedited as possible, depending on volume (each agent may submit no more than 10% new business-defined as applicant who was not an existing Allstate Homeowner customer)

8. QUOTE PROCEDURE • Log onto Sterlingrisk.com • Allstate link is on bottom left of the page • Choose Homeowners quote form • Complete quote form • All info requested on quote form is required for us to provide a quote • A quote is immediately generated for your customer’s consideration • Print quote for your customer • If quote is acceptable to the customer, proceed to APPLICATION

9. APPLICATION PROCESS • If the applicant accepts the homeowners quote, please complete the application available on the sterlingrisk.com website, making certain to click on the “submit” button • If approved by underwriting, TSC will notify the agent via phone or e-mail & confirm the effective date for the policy • Paperwork will then be mailed to the policy holder, with a copy sent to the agent

10. Questions on Quotes & Applications 516 – 681 - 9400 Extension 789 E-mail: tschomeinquiry@tscinsurance.com

11. Questions on or Changes to Policies that have already been issued Questions on policies that have already been issued should be handled through the Home Owners Customer Service Department Reasons to call: 1) Endorsements 2) Any changes or adjustments to policy 3) Payments on policy 4) Questions on existing policies How to Reach CS: 1) Dial 516 681 9400 or 718 895 0036 2) Follow Prompt (3) for Customer Service 3) Follow prompt (2) for Home Owner’s Customer Service

12. CLAIMS All claims issues are addressed directly with TSC>DIRECT by the policy holder Policy holder may call: 516-681-9400 or 718-895-0036

13. Homeowners Guidelines

14. Homeowner application or renewalDOES NOTQUALIFY if: • Home has more than three families • Home built prior to 1900 • Home built prior to 1950 • unless wiring / electric / plumbing updated in entire house (with proof of conversions-acceptable proof: invoice of completed work or photos of the electrical panel & boiler) • Age of roof is 30+ years [exception: Slate roofs]

15. Homeowner application or renewalDOES NOT QUALIFYif: • Home is over 3200 square feet (not including any square footage of finished basement, attic, or garage space) • There is a coal/wood stove on premises without a permit (Need copy of permit) • There is a business in the household that requires clients coming into the home regularly • Computer equipment exceeds $3,000. – Waiver from TSC is required

16. Homeowner application or renewalDOES NOT QUALIFYif: • There are guns in the household • unless applicant/insured is a police officer - 2 guns allowed • retired police officer - 1 gun allowed • Applicant/Insured owns undeveloped property • Home is 2,000 feet or less from water (check with TSC on case-by-case basis for exceptions on the North Shore of L.I.) • There is a pool on the property that is unfenced • Fence around property with pool should be 4 feet or higher

17. Homeowner application or renewalDOES NOT QUALIFYif: • There is a trampoline on the premises • Home has a Rottweiler, Doberman Pinscher, Bull Terrier, Stafford Shire Terrier, American Stafford Terrier, Pitbull, Akita, Chow or more than two dogs • Inspection shows poor maintenance and/or hazard • Applicant had no prior insurance [exception may be made if the applicant with a new home purchase lived with parents immediately prior and parents can provide proof of their insurance] • Applicant/Insured fails to provide underwriting information

18. Homeowner application or renewalDOES NOTQUALIFYif: • Location is left vacant or unoccupied or Applicant/Insured takes extended vacations for more than two consecutive weeks OR more than 4 weeks in total a year. (Ask where and how long away) • Location is non-owner occupied [TSC does not write landlord policies] • There is more than 1 additional kitchen than there are families in the household • 1 Family: up to 2 Kitchens okay • 2 family: up to 3 kitchens okay • 3 family: up to 4 kitchens okay • There is a material change in the risk • Applicant/Insured is not legally separated -- unless proof of applicant / insured spouse's separate insurance (Proof legally separated)

19. Homeowner application or renewalDOES NOTQUALIFYif: • Unrelated names will now be considered as long as the following conditions are met: 1) Both names are on the deed & both people live in the house on a permanent basis 2) Proof that both parties are living in the home may be requested 3) This pertains to 1 family houses only • Two or more losses within five years, not including Hurricane claims (Any loss over $7,500 must be reviewed for Approval) • One or more burglary of home within five years • Tenant in home does not have own insurance • Property has an underground oil tank

20. Scheduled Jewelry Any scheduled jewelry item over $2,500 requires an appraisal from a certified gemologist (done within the last year) pictures must also be provided

21. Submission of Proof TSC will bind policies without most proof being submitted (i.e.: jewelry appraisal, electric updates, tenants policy) If proof is not submitted within specified timeframe policy will be subsequently cancelled

22. DISCOUNTS

23. LIMITS OF INSURANCE

24. PAYMENT SCHEDULES ***Unless specifically requested otherwise, a 10 payment plan will be automatically assigned to each policy***

25. Installments are broken down as follows: 2 installments = 50% of total annual premium (plus $4.00 service charge) 4 installments = 25% of total annual premium (plus $4.00 service charge) 6 installments = 1st installment is 25% of total annual premium. Installments 2-6 = 15% of total annual premium (plus $4.00 service charge) 10 installments=1st installment is 19% of total annual premium. 9% each for next 9 installments (plus $4.00 service charge)

26. Materials That Could Be Sent To Policyholder

27. Final Reminders Please remember to inform the customer: • TSC>Direct is the holder of the policy and will be sending an inspector out to do an external inspection of the home • After a policy is issued a letter and an application is mailed to the policy holder’s home. They MUST complete, sign, and mail this application back to our office. (Otherwise a cancellation notice is generated for Failure to provide complete application) • For New Business Closings --- We will request a Moving/Closing letter (this states the PH name, new address, closing date, move in date, and is signed by the customer) if there is more than 10 days between M/C ask why. (IF THE REASON IS B/C OF CONSTRUCTION, WE WILL NOT WRITE IT)

28. THANK YOUWe look forward to working with you!