American Modern Insurance Group is prepared to handle claims stemming from Hurricane Rita. Our catastrophe response teams are en route to the affected areas. Our specially trained claims adjusters will be working from catastrophe claims offices located in Southwest Louisiana and Eastern Texas. The American Modern catastrophe response team consists of claims adjusters from across the country, as well as those already representing local areas.

We encourage your policyholders to call our office directly at 1-800-375-2075 or log on to our Web site at www.amig.com for claims reporting and assistance. Additionally, we have extended our hours of operation to receive new claims. Our extended hours are:

Monday through Friday, 8:00am to 7:00pm Eastern Standard Time

We will continue to assess the need for extended claims reporting hours.

We are also advising your customers to:

• Follow any instructions from local emergency management personnel
• When appropriate, check the damage to their property and determine if there are any safety risks.
• If safe, have temporary repairs made if it would prevent further damage. Be sure to save receipts and keep a record of repair expenses.
• Make an inventory of damaged property.
• Safeguard policy documents. Note policy numbers and agent contact information.

American Modern is committed to taking every possible measure to respond promptly and efficiently to policyholder and business partner needs during the recovery process from Hurricane Rita. Adjusters will respond to claims as soon as possible. Again, we encourage policyholders to contact our office directly if they require claim service or have questions. Claims can be filed by calling 1-800-375-2075 or via our Web site at www.amig.com.




September 21, 2005

To:   All American Modern Insurance Group Agents licensed to write in Mississippi

Re:   Hurricane Katrina Policyholder Cancellation Grace Period - Mississippi Update

Since our letter of September 19, 2005, we have received further guidance from the Mississippi Insurance Commissioner regarding cancellations and non-renewals for Mississippi policyholders affected by Hurricane Katrina. As a result of the Mississippi Commissioner's latest guidance, the moratorium on cancellations and non-renewals in Mississippi is now limited to the following counties:

Adams, Amite, Claiborne, Clarke, Copiah, Covington, Forrest, Franklin, George, Greene, Hancock, Harrison, Hinds, Jackson, Jasper, Jefferson, Jefferson Davis, Jones, Lamar, Lauderdale, Lawrence, Lincoln, Marion, Newton, Pearl River, Perry, Pike, Rankin, Scott, Simpson, Smith, Stone, Walthall, Warren, Wayne, and Wilkinson.

American Modern will follow its normal cancellation and non-renewal procedures in all other Mississippi counties. Policyholders affected by Hurricane Katrina, but outside the above named counties, will be reviewed individually as needed.

American Modern remains committed to helping our business partners and our policyholders in the affected areas. Our Catastrophe Claims team is currently inspecting claims and working quickly to close the bulk of those claims within 30 days. We will continue to work as long and as hard as it takes to handle all our policyholders' claims.

We will keep you updated throughout the coming weeks as the clean-up process from Hurricane Katrina continues and further direction is received from the affected States' Departments of Insurance. It is our full intent to make you proud of your partnership with American Modern. Again, if you have any suggestions or questions, please feel free to contact your underwriter.

Sincerely,

John W. Hayden
Chairman, President & CEO
American Modern Insurance Group




September 19, 2005

To:   All American Modern Insurance Group Agents licensed to write in the States of Alabama, Louisiana and Mississippi

Re:   Policyholder Cancellation Grace Period due to Hurricane Katrina - Update

Dear Agent:

Since our letter of September 8, 2005, we have received further guidance from the Alabama, Louisiana and Mississippi Insurance Commissioners regarding cancellations and non-renewals to policyholders affected by Hurricane Katrina. As a result, we are reinstating our normal cancellation and non-renewal procedures in all parishes in Louisiana except: Jefferson, Orleans, Plaquemines, St. Bernard, St. Tammany, Tangipahoa and Washington. The affected counties in Mississippi and Alabama remain unchanged from our letter of September 8, 2005.

In addition, we have decided to push back the effective date of our moratorium from 8/29/05 to 8/26/05. This will prevent cancellations and non-renewals from generating and being mailed in the affected counties and parishes. As noted above, we are limiting our moratorium in Louisiana to the seven parishes named above. At this point, we anticipate the need to continue with the moratorium until 11/01/2005. We will keep you informed if this date changes.

American Modern continues to be committed to helping our business partners and our policyholders in the affected areas. Our Catastrophe Claims team was in motion well before Katrina made landfall, and is currently inspecting claims and working quickly to close the bulk of those claims within 30 days. We will work as long and as hard as it takes to handle all our policyholders' claims.

We will continue to keep you updated throughout the coming weeks as the process of recovering from Hurricane Katrina continues and further direction is received from the affected States' Departments of Insurance. It is our full intent to make you proud of your partnership with American Modern. Again, if you have any suggestions or questions, please feel free to contact your underwriter.

Sincerely,

John W. Hayden
Chairman, President & CEO
American Modern Insurance Group




September 8, 2005

Hurricane Katrina - Policyholder Cancellation Grace Period

To:   All American Modern Insurance Group Agents licensed to write in the States of Alabama, Louisiana and Mississippi

Re:   Policyholder Cancellation Grace Period

American Modern is committed to taking every possible measure to respond promptly and efficiently to policyholder and business partner needs during the recovery process from Hurricane Katrina

Last year, hurricanes highlighted the need for American Modern Insurance Group to work proactively to assist our insureds and to anticipate their needs following a natural disaster. One major consideration was the disruption in the regular mail service and the problems which occur when our insureds are not receiving their billing and legal notifications, either at all or in a timely manner.

Therefore, in response to our insureds' needs:

• Effective 8/29/2005, American Modern has installed system edits to prevent cancellations from generating, and to prevent notices of cancellation from being mailed for non-payment and/or underwriting reasons.
• We will rescind all cancellation notices that have already been mailed since 08/15/2005 in the affected counties.
• We anticipate the need to continue with these edits until 11/01/2005.
• Policies cancelled by Insured request will not be affected.
• These edits have been installed in the affected counties listed below.

Designated Counties for Mississippi: Hurricane Katrina

Adams Chickasaw Clarke Covington George Harrison Jackson Jefferson Kemper Lawrence Lincoln Marion Newton Pearl River Rankin Smith Warren Wilkinson

Amite Choctaw Clay Forrest Greene Hinds Jackson Jefferson Davis Lamar Leake Lowndes Monroe Noxubee Perry Scott Stone Wayne Winston

Attala Claiborne Copiah Franklin Hancock Itawamba Jasper Jones Lauderdale Lee Madison Neshoba Oktibbeha Pike Simpson Walthall Webster

Designated Counties for Alabama: Hurricane Katrina

Baldwin Clarke

Mobile Choctaw

Washington Sumter

Designated Parishes for Louisiana: Hurricane Katrina
All Parishes have been affected:

Acadia Assumption Bienville Calcasieu Catahoula Desoto East Feliciana Grant Jackson Lafayette Lincoln Morehouse Ouachita Rapides Sabine St. Helena St. Landry St. Tammany Terrebonne Vernon West Baton Rouge Winn

Allen Avoyelles Bossier Caldwell Claiborne East Baton Rouge Evangeline Iberia Jefferson Lafourche Livingston Natchitoches Plaquemines Red River St. Bernard St. James St. Martin Tangipahoa Union Washington West Carroll

Ascension Beauregard Caddo Cameron Concordia East Carroll Franklin Iberville Jefferson Davis LaSalle Madison Orleans Pointe Coupee Richland St. Charles St. John St. Mary Tensas Vermillion Webster West Feliciana

Hurricane Katrina has created an incredible hardship for thousands of people and we will do our best to help ease their burden. We are committed to helping our policyholders and business partners return to normal as fast as possible.

As you are no doubt well aware, our Claims Team is among the very best in the business. We have their full force and energy focused on addressing the needs of our policyholders who have been impacted by Hurricane Katrina. Our Catastrophe Claims Team was in motion well before Katrina even made landfall, and is already busy about the task of getting folks back on with their lives. We have a team of nearly 75 people on site in the affected areas, with more on the way. Housing has proven to be a more difficult task in Katrina's wake than in previous events, but we are addressing these challenges as they arise. We will inspect claims quickly after they are reported to us; we are often inspecting insured properties before a claim has even been reported to us, and we will close the bulk of our claims within 30 days.

These are "industry best practices" performance standards, and they are what we have come to expect of ourselves. It is our full intent to make you proud of your partnership with American Modern, and turn this horrible disaster into a source of immense pride for you and your customers.

We will keep you updated with additional information as it becomes available. In the meantime, if you have any suggestions or questions, please feel free to contact your underwriter.

Sincerely,

John W. Hayden
Chairman, President & CEO
American Modern Insurance Group




September 6, 2005

HURRICANE KATRINA UPDATE

AMERICAN MODERN IS PREPARED TO HELP YOUR
POLICYHOLDERS WITH THEIR HURRICANE KATRINA CLAIMS

Policyholders are encouraged to call our office directly at
1-800-375-2075 or log on to our Web site, www.amig.com, for claims reporting and assistance.

American Modern Insurance Group is prepared to handle claims stemming from Hurricane Katrina. Our catastrophe offices are currently operational in Southeast Louisiana, Southern Mississippi and Southern Alabama. The American Modern catastrophe response team has begun inspecting claims. It is also important to note that agents outside of the Hurricane Katrina claim area may not have their local staff adjuster handling claims as that person may be on special catastrophe duty.

We encourage your policyholders to call our office directly at 1-800-375-2075 or log on to our Web site at www.amig.com for claims reporting and assistance. The First Notice of Loss Unit is operating from 8am to 7pm EST Monday through Friday.

We are also advising your customers to:

• Follow any instructions from local emergency management personnel.
• When appropriate, check the damage to their property and determine if there are any safety risks.
• If safe, have temporary repairs made if it would prevent further damage. Be sure to save receipts and keep a record of repair expenses.
• Make an inventory of damaged property.
• Safeguard policy documents. Note policy numbers and agent contact information.

American Modern is committed to taking every possible measure to respond promptly and efficiently to policyholder and business partner needs during the recovery process from Hurricane Katrina. Our adjusters will respond to claims as soon as possible. Again, we encourage policyholders to contact our office directly if they require claim service or have questions. Claims can be filed by calling 1-800-375-2075 or via our Web site at www.amig.com.