SIGCo

Policyholder Disclosure Notice of
Terrorism Insurance Coverage

Coverage for acts of terrorism, as defined in the Terrorism Risk Insurance Act (TRIA) which was enacted in the United States on November 26, 2002, where those acts precipitate a claim for a Covered Liability on the guarantor under OPA90 or CERCLA is already included within the terms of your COFR Facility Agreement with SIGCo. TRIA coverage was extended to December 31, 2014 by the Terrorism Risk Insurance Program Reauthorization Act of 2007 (“TRIPRA”). You should know that, effective November 26, 2002, any losses in connection with the COFR Guaranty issued by SIGCo under the terms of the COFR Facility Agreement, and caused by certified acts of terrorism (now inclusive of domestic acts of terrorism through TRIPRA), would be partially reimbursed by the United States under a formula established by federal law. Under this formula, commencing in 2008, the United States pays 85% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage. The United States Government shall not make any payment for any portion of the amount of such losses that exceed $100 billion, and no insurer that has met its deductible shall be liable for the payment of any portion of the amount of such losses that exceeds $100 billion. The portion of your annual premium that is attributable to coverage for acts of terrorism is 5%.

Any questions regarding the above can be addressed to

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