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STPAUL <br /> TRAVELERS <br /> IMPORTANT DISCLOSURE NOTICE OF TERRORISM INSURANCE <br /> COVERAGE <br /> On November 26 , 2002, President Bush signed into law the <br /> Terrorism Risk Insurance Act of 2002 (the "Act" ). The Act <br /> establishes a short term program under which the Federal <br /> Government will share 1n the payment of covered losses caused by <br /> certain acts of international terrorism. We are providing you with <br /> this notice to inform you of the key features of 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 certain <br /> losses caused by intemational acts of terrorism as defined in the <br /> Act. The Act further provides that the Federal Government will pay <br /> a share of such losses . Specifically, the Federal Government will <br /> pay 90% of the amount of covered losses caused by certain acts of <br /> terrorism which is in excess of an insurer's statutorily established <br /> deductible for that year. The Act also caps the amount of terrorism- <br /> related losses for which the Federal Government or an insurer can <br /> be responsible at $ 10090001000, 000. 00, provided that the insurer <br /> has met its deductible . <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 bond <br /> 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 /> ILT 1018 (9/04) <br />