Zurich Settlement

QUESTIONS ABOUT THE LAWSUIT AND SETTLEMENT

1) What is this Class Action about?

The Plaintiffs in this case allege that the way contingency payments were used and the methods used by the Broker Defendants, Insurer Defendants and Zurich in placing commercial insurance and reinsurance violated federal and state law. Zurich denies any wrongdoing.

Specifically, the plaintiffs allege violations of (1) federal and state antitrust laws (2) the Racketeer Influenced and Corrupt Organizations (RICO) Act, and (3) common law arising through (a) practices by which certain insurers provided quotations to policyholders and prospective policyholders through certain brokers in connection with the placement and renewal of insurance contracts and (b) contracts, agreements, arrangements and understandings about the payment of commissions that are contingent upon, among other things, the brokers placing a particular number of policies or dollar value of premium with insurers.

If you have additional questions about the lawsuit, please visit Zurich's website at www.zurichna.com, Class Counsel's website at www.insurancebrokerageclasscounsel.com, or the “Court Information on Litigation” on this website.

2) Why is Zurich Settling/Why is there a Settlement?

The Plaintiffs and Zurich are settling because they believe that the settlement presents an opportunity to provide additional, substantial benefits to the Settlement Class.

3) When and where was the lawsuit filed?

The first lawsuit was filed in August 2004. After more were filed, the court combined them in August 2005 into a single multi-district class action called In Re: Insurance Brokerage Antitrust Litigation. This case is pending in the United States District Court for the District of New Jersey

4) How does Zurich’s settlement agreement differ from those of other companies in the insurance industry? Have any other companies settled this suit?

Zurich is the first defendant to settle this class action. Others involved may have settled other proceedings, but we are not able to comment on those settlements.

5) Are there defendants other than Zurich Insurers?

In addition to Zurich Insurers, the Class Action lawsuit also includes claims against Broker Defendants and other Insurer Defendants. The Zurich Defendants have been dismissed from the case and are no longer parties to the litigation.

They are listed in the Notice on page 1, under Items 3 and 5.

6) I purchased a policy from a broker who is not named as a Broker Defendant. Can my company join the Settlement Class?

Yes, if that policy was a commercial insurance or reinsurance policy issued by one of the Zurich Insurers from August 26, 1994 through September 1, 2005.

However, if you purchased a non-Zurich policy from a broker who is not a defendant in the Class Action, you are not eligible to participate in this settlement.

Regarding your Zurich policy, if you are a member of the Settlement Class, you will automatically participate in the settlement.

7) What is happening in the class action?

Given the settlement negotiations, the proceedings as to Zurich were stayed in November 2005. The Court approved the Settlement on February 16, 2007 and Zurich has been dismissed from the litigation. However, the Court’s February 16 decision to approve the Settlement has been appealed. The appellate court has scheduled argument for April 20, 2009. The proceeds of the Zurich Settlement cannot be distributed until the appeals are resolved. It is unknown when this appeal will be resolved. Further, until the appeal is resolved, neither the Settlement Administrator nor Counsel knows the value of the distribution.

As to all other nonsettling defendants, the lower court granted a motion to dismiss filed by the Broker Defendants and other Insurer Defendants. The dismissal is also on appeal to the Third Circuit Court of Appeals and it is also scheduled to be argued there on April 20, 2009.

8) If Zurich did nothing wrong, why is it settling this lawsuit?

Although each side in this lawsuit believes that it is right, the parties are settling because they believe that the proposed settlement presents an opportunity to provide additional, substantial benefits to the Settlement Class and will allow Zurich to avoid costly and time consuming litigation. The Zurich Defendants deny any wrongdoing and the Plaintiffs are maintaining and pursuing their claims against the Broker Defendants and the other Insurer Defendants.

9) When will the Zurich Settlement become final?/Has the Court’s approval of the Settlement been appealed?

The Court approved the Settlement without modification on February 16, 2007. However, the Settlement has not yet become final because the Court’s decision to approve the Settlement has been appealed. If the Court of Appeal upholds the Zurich Settlement, it will become final when the time for taking further appeals expires. If there is a further appeal, it will take additional time.

The appellate court has scheduled oral argument for April 20, 2009. The proceeds of the Zurich Settlement cannot be distributed until the appeals are resolved, neither the Settlement Administrator nor Counsel knows the value of the distribution.

10) How will this affect the financial stability of Zurich?

The settlement is not expected to affect Zurich’s financial stability.

11) What is the Class Period?

The “Class Period’ is the period from August 26, 1994 through September 1, 2005.

12) Have the Zurich Insurers produced any documents in the class action? Can my company review those documents?

Yes, the Zurich Insurers have produced documents. You may be able to review these documents for purposes of assessing the Zurich Settlement. Either you or your attorney must sign a Stipulation and Order of Confidentiality in order to be eligible to gain access to discovery materials.

13) Will copies of the Zurich documents/discovery materials be sent to me?

You (or your attorney) will only be allowed access to discovery materials by appointment during regular business hours at the office of Whatley, Drake & Kallas, LLC, 1540 Broadway, 37th Floor, New York, New York, 10036.

14) My company wishes to review the discovery materials in order to assess the Zurich Settlement Agreement. If we decided not to participate in the Settlement Class, may we use any of the discovery materials that we reviewed in other litigation or actions against the Zurich Insurers?

No. You may not use discovery materials for any purpose other than assessing the Zurich Settlement. Before accessing discovery materials, you will be required to sign a confidentiality agreement. This agreement limits your ability to disclose information obtained from any discovery materials that you may review and specifically prohibits their use in litigation against Zurich. Violating the confidentiality agreement may result in an order of contempt or other sanctions by the Court. You may also be sued.

15) How can I obtain a copy of the Zurich Settlement Agreement?

You may obtain a copy of the Settlement Agreement and other information about the Zurich Settlement by visiting the appropriate links on this website, by calling 1-866-722-3544 Monday through Friday 8:00 a.m. to 7:00 p.m. CST, or by sending an e-mail to zurichadmin@completeclaimsolutions.com. The Order Approving Settlement was issued February 16, 2007 and will be added to the website soon.

You may also visit the following websites:

www.insurancebrokerageclasscounsel.com
www.zurichna.com

Finally, you may examine the settlement agreement and other documents filed in the class action at the Office of the Clerk, United States District Court for the District of New Jersey, Martin Luther King Building and U.S. Courthouse, 50 Walnut Street, Room 4015, Newark, New Jersey 07101 from 9:00 a.m. to 4:00 p.m. EDT.

PARTIES TO CLASS ACTION LAWSUIT

16) Who are the Zurich Insurers?

There are 22 business units who are the Zurich Insurers. They are:

American Guarantee and Liability Insurance Company
American Zurich Insurance Company
Assurance Company of America
Colonial American Casualty and Surety Company
Empire Fire and Marine Insurance Company
Empire Indemnity Insurance Company
Fidelity and Deposit Company of Maryland
Maine Bonding and Casualty Company
Maryland Casualty Company
Maryland Insurance Company
National Standard Insurance Company

Northern Insurance Company of New York
Steadfast Insurance CompanyUniversal Underwriters Insurance Company
Universal Underwriters of Texas Insurance Company
Valiant Insurance Company
Zurich American Insurance Company
Zurich American Insurance Company of Illinois
Zurich Financial Services
Zurich International (Bermuda) Ltd. (ZIB)
Zurich Insurance Bermuda Branch (ZIBB) (to be confirmed)
Zurich Specialties London, Ltd. (ZSL)

17) Who are the Broker Defendants?

There are 37 Broker Defendants. They are:

Acordia, Inc.
Affinity Insurance Services, Inc.
Aon Broker Services, Inc.
Aon Corporation
Aon Group Inc.
Aon Re, Inc.
Aon Re Worldwide, Inc.
Aon Risk Services Companies, Inc.
Aon Risk Services, Inc. of Louisiana
Aon Risk Services, Inc. of Maryland
Aon Risk Services, Inc. of Michigan
Aon Risk Services Inc. U.S.
Aon Risk Services of Texas, Inc.
Aon Services Group, Inc.
Arthur J. Gallagher & Co.
Arthur J. Gallagher Risk Management Services, Inc.
BB&T Corporation
BB&T Insurance Services, Inc.
Branch Banking and Trust Company

Brown & Brown, Inc.
Hilb, Rogal & Hobbs Company
Hub International Limited
Marsh & McLennan Companies, Inc.
Marsh Inc.
Marsh USA, Inc.
Marsh USA Inc. (Connecticut)
Seabury & Smith, Inc.
Stewart Smith Group
Summit Global Partners of Florida, Inc.
U.S.I. Holdings Corporation
USI Insurance Services of Florida, Inc.
(d/b/a USI Florida)
Wells Fargo & Company
Willis Group Holdings Limited
Willis Group Limited
Willis North America, Inc.
Willis of New York, Inc.
Willis Re Inc.

18) Who are the other Insurer Defendants?

The Insurer Defendants, other than the Zurich Defendants¸ include 68 other insurance companies. They are:

ACE American Insurance Co.
ACE INA Holdings, Inc.
ACE Limited
ACE USA, Inc.
AIU Insurance Co.
American Alternative Insurance Corp.
American Casualty Co. of Reading, PA
American Home Assurance Co.
American International Group, Inc.
American International Insurance Co.
American International Specialty Lines Insurance Co.
American Re Corporation
American Re-Insurance Co.
Athena Assurance Co.
AXIS Reinsurance Company
AXIS Specialty Insurance Company
AXIS Surplus Insurance Company
Berkshire Hathaway, Inc.
Berkshire Hathaway Insurance Group
Birmingham Fire Insurance Co. of Pennsylvania
Chicago Insurance Co.
CNA Financial Corp.
Commerce and Industry Insurance Co.
Continental Casualty Co.
Crum & Forster Holdings Corp.
Executive Risk Indemnity Inc.
Federal Insurance Co.
Fireman’s Fund Insurance Co.
General Re Corporation
General Reinsurance Corp.
Greenwich Insurance Co.
Gulf Insurance Co.
Hartford Fire Insurance Co.
Hartford Steam Boiler Inspection and Insurance Co.
Illinois Union Insurance Co.

Indemnity Insurance Co. of North America
Indian Harbor Insurance Co.
Lexington Insurance Company
Liberty Mutual Fire Insurance Co.
Liberty Mutual Holding Company, Inc.
Liberty Mutual Insurance Co.
Mt. Hawley Insurance Co.
Munich Reinsurance Co.
Munich-American Risk Partners, Inc.
National Surety Corp.
National Union Fire Insurance Co. of Louisiana
National Union Fire Insurance Co. of Pittsburgh, Pa.
New Hampshire Insurance Co.
Nutmeg Insurance Co.
Pacific Insurance Co., Ltd.
RLI Corporation
RLI Insurance Co.
St. Paul Fire & Marine Insurance Co.
St. Paul Mercury Insurance Co.
St. Paul Travelers Companies, Inc.
The Chubb Corporation
The Continental Insurance Corp.
The Hartford Fidelity & Bonding Co.
The Hartford Financial Services Group, Inc.
The Insurance Company of the State of Pennsylvania
Travelers Casualty & Surety Co. of America
Travelers Indemnity Company
Twin City Fire Insurance Co.
United States Fire Insurance Co.
Vigilant Insurance Co.
Wausau Underwriters Insurance Co.
Westchester Surplus Lines Insurance Co.
XL Capital Ltd.

CLASS MEMBERSHIP RIGHTS AND PARTICIPATION IN THE SETTLEMENT

19) Who is a Class Member?/ How do I know if I am a member of the Settlement Class?/ Who is in the Settlement Class?

Your company is a member of the Settlement Class if it purchased or renewed commercial insurance or reinsurance with Zurich using any broker OR if it purchased or renewed commercial insurance or reinsurance from any insurer through a Broker Defendant between August 26, 1994 and September 1, 2005.

20) HAS A CLAIM NUMBER: What do I need to do to participate?

If your company purchased or renewed any commercial insurance or reinsurance from Zurich through any broker during the Class Period, you are automatically part of the Settlement. Your company will automatically receive a settlement check for these policies if the Court approves the settlement.
BUT, if you are a Settlement Class Member also or solely because you purchased or renewed one or more commercial insurance or reinsurance policies from any other insurance company, through a Broker Defendant, during the Class Period, you must complete a Claim Form for each policy. Your Claim Form was due June 12, 2007. If you would like to still file a Claim, it will be marked “late” and the court will make a decision as to whether that claim is eligible.
Even if you automatically qualify for relief as a Zurich policyholder, your company may be entitled to additional monetary relief if you also qualify because you had non-Zurich policies purchased through a Broker Defendant. To receive a settlement check for your eligible non-Zurich policies, you must file a Claim Form indicating all your non-Zurich policies. Your Claim Form was due June 12, 2007. If you would like to still file a Claim, it will be marked “late” and the court will make a decision as to whether that claim is eligible.

21) NO CLAIM NUMBER: What do I need to do to participate?

Although we cannot give you specific legal advice, we can tell you your options.

It is up to your company to decide whether or not it wants to participate in the settlement. If your company decides to participate, your company may receive a settlement check. If your company does not participate, it will not receive a check under the Zurich Settlement.

To participate:

You must indicate on the Claim Form each qualifying commercial insurance or reinsurance policy that you purchased or renewed during the Class Period. Your Claim Form needed to be sent to the Settlement Administrator and postmarked by June 12, 2007. If you would like to still file a Claim, it will be marked “late” and the court will make a decision as to whether that claim is eligible.

Policies that qualify for this settlement

Zurich commercial insurance or reinsurance policy

Through

Any broker

Any other insurance company’s commercial insurance or reinsurance policy

Through

A Broker Defendant
(See Q. 17 for list)

22) I/my company did not file a lawsuit against any of the Zurich Insurers. Can my company still participate in the settlement? Do I have to file a lawsuit?

The Representative Plaintiffs filed this lawsuit on behalf of persons with similar claims, and the state regulators investigated on behalf of their constituents. The Plaintiffs and state regulators have negotiated the Zurich Settlement on behalf of such persons. If your company is a member of that group, then your company can receive monetary relief without filing its own lawsuit.

23) Do I need to change insurers/cancel my Zurich policy? If my company takes this settlement, will that affect my company's insurance coverage?

The lawsuit and settlement are not about any current Zurich or other insurance policies you have. It is only about policies purchased or renewed between August 26, 1994 and September 1, 2005. Participation in this settlement will not change your past or present insurance coverage in any way.

24) How do I know if my company is a member of the Settlement Class?

You are within the Settlement Class for the Zurich Settlement if, from August 26, 1994 through September 1, 2005, your company purchased or renewed:

Zurich commercial insurance or reinsurance policy

Through

Any broker

Any other insurance company’s commercial insurance or reinsurance policy

Through

A Broker Defendant
(See Q. 17 for list)

25) My company purchased a policy directly from Zurich. We did not use a broker. Is my company a member of the settlement class?

If your company purchased or renewed a policy directly from Zurich, it is not a member of this settlement class based on those policies. This settlement only covers certain policies that were purchased through brokers during the Class Period.

26) My company is in a foreign country. Can my company participate in the settlement?

Your company may be eligible to participate, but we need to do some additional research to answer your question. I can arrange to have someone get back to you with that information.

27) What is the deadline to decide if my company will participate in the Settlement Class?

The deadline for exclusion from the settlement class was January 11, 2007. You are no longer able to exclude your Zurich policies for which you received a Notice from the settlement.

The deadline for filing a Claim Form for non-Zurich policies purchased or renewed through a Broker Defendant was June 12, 2007. This deadline has passed. If you would like to still file a Claim, it will be marked “late” and the court will make a decision as to whether that claim is eligible.

If you are a class member both because of some eligible Zurich policies and because of other companies’ policies purchased or renewed through a Broker Defendant during the relevant time period and you want to participate for both kinds of eligible policies, all you must have mailed in a claim form as to those non-Zurich policies postmarked no later than June 12, 2007. If you would like to still file a Claim, it will be marked “late” and the court will make a decision as to whether that claim is eligible.

28) HAS A CLAIM NUMBER: I have Zurich policies. Do I need to fill out the Claim Form?

You do not need to do anything to participate for these policies. If you believe you had additional Zurich policies during the Class Period you will need to indicate each such policy on the Claim Form.

You may also be entitled to additional monetary relief if you purchased or renewed non-Zurich policies through a Broker Defendant between August 26, 1994 and September 1, 2005. Any such policies should be indicated on the Claim Form. Your Claim Form must have been addressed to the Settlement Administrator and postmarked no later than June 12, 2007. If you would like to still file a Claim, it will be marked “late” and the court will make a decision as to whether that claim is eligible.

29) NO CLAIM NUMBER: I have Zurich policies. Do I need to fill out the Claim Form?

You would have needed to indicate each Zurich commercial insurance or reinsurance policy you purchased or renewed during the Class Period on the Claim Form.

You may also be entitled to additional monetary relief if you purchased or renewed non-Zurich policies through a Broker Defendant between August 26, 1994 and September 1, 2005. Any such policies should also be indicated on the Claim Form. Your Claim Form must have been addressed to the Settlement Administrator and postmarked no later than June 12, 2007. If you would like to still file a Claim, it will be marked “late” and the court will make a decision as to whether that claim is eligible.

30) How can I get a Claim Form?

You can go to the link to the left on this website and download a Claim Form. The website tells you the address of where you need to send the Claim Form.

31) Do you have any information about my non-Zurich policies?

We do not have any information about non-Zurich policies. We have no way to access this information. If you used a broker, you may want to contact your broker to help you identify any non-Zurich policies you may have.

32) How will you verify my policy information regarding policies from other insurance companies?

We will be conducting random audit verifications of claimants' information by contacting those insurance companies and/or brokers.

33) Does my company need the Court’s permission to become a member of the Settlement Class?

No. You are not required to file any documents with or appear before the Court in order to become a member of the Settlement Class.

34) If my company decides to stay in this settlement, how does that affect my rights against all of the other defendants?

The Zurich settlement does not affect your rights against all of the other defendants. However, it is possible that the amount or part of the amount you recover under this settlement could be subtracted from some future award you could possibly get if you actually took one of the other defendants to trial and won.

There may be other settlements in the future, and your company would have the option at that time to decide to take advantage or not take advantage of those settlements and to release or not release those defendants. For current information, you can visit the Class Counsel’s website at www.insurancebrokerageclasscounsel.com.

35) If my company chooses to participate in the Settlement Class, what rights is it giving up?

Settlement Class Members will release all claims that have been raised or that could have been raised in the class action against Zurich. Settlement Class Members will be permanently barred from filing or participating in any lawsuit or other legal action against all Zurich companies, to the extent that any such lawsuit or action would arise from or relate to any of the claims that have been raised or could have been raised in this class action. The class action will be dismissed as to the Zurich Insurers only.

The Release is an agreement on your part never to make any claim that was made, or could have been made, in this class action against the people or entities named in the Release, namely all Zurich companies. It includes all claims, known and unknown, that you may now have against the Zurich Insurers which were raised or could have been raised in this class action. The Release does not include claims that do not exist at the time that the Release becomes effective or claims that do not relate to those raised in this class action.

36) Can my company receive settlement relief without agreeing to the terms of the Release?

No. You must agree to all of the terms of the Release in order to receive relief under the Zurich Settlement.

37) Can I change any terms of the Release?

No. We have absolutely no discretion to change the Release or to negotiate with you regarding the terms of the Release. The Release is based on terms negotiated in settlement with Class Counsel and their representative plaintiffs.

38) Can I obtain a copy of the Release for my company?

The full text of the release is available on this website. You are encouraged to carefully review the terms of the Release and the definitions.

39) Can the parties change the terms of the Zurich Settlement Agreement?

Parties will only be able to change the terms of the settlement if the Court approves the change and (I) the parties agree to do so in writing, (ii) the change is not materially inconsistent with the Order Approving Settlement or the accompanying judgment entered by the Court, and (iii) the change does not materially limit the rights of the Settlement Class Members under the settlement agreement.

40) Can the parties terminate the Zurich Settlement Agreement?

Either the Plaintiffs or Zurich or both may terminate the Zurich Settlement Agreement only if one of two events occurs:

(i) the Court or an appellate court rejects, modifies or denies approval of any portion of the settlement and one of the parties believes that change to be material; OR

(ii) the Court or an appellate court does not enter or completely affirm, or alters or expands, any portion of any order or judgment requested by the parties and one of the parties believes that the Court’s action is material.

The Court approved the Settlement on February 16, 2007 without modification. This decision will be subject to appeal for 30 days. To our knowledge, no notices of appeal have been filed.

41) May the Zurich Settlement Agreement be terminated based on the amount of attorneys’ fees and expenses awarded to Plaintiffs’ counsel?

No. The amount of attorneys’ fees and costs may not serve as a basis for terminating the Zurich Settlement Agreement.

You don't have to do anything to automatically receive monetary relief for any qualifying Zurich policies. However, to receive relief for any commercial policies you purchased or renewed from any other insurance company, through a Broker Defendant, during the Class Period, you must complete a Claim Form for each policy. Your Claim Form must have been postmarked by June 12, 2007. If you would like to still file a Claim, it will be marked “late” and the court will make a decision as to whether that claim is eligible.

If you need to submit a Claim Form, but miss the deadline, you may not receive any compensation for your non-Zurich policies. If you have eligible Zurich policies, your company will automatically receive a settlement check for those policies unless an appeal is filed and the Settlement is subsequently rejected. Your Claim Form must have been postmarked by June 12, 2007. If you would like to still file a Claim, it will be marked “late” and the court will make a decision as to whether that claim is eligible.

No. If you meet the definition of Settlement Class Member, you may choose to either participate in the Zurich Settlement or request exclusion from the Zurich Settlement.

Zurich’s records show that you or your company had commercial insurance or reinsurance coverage. If you believe that there has been a mistake and that you do not have any commercial policies that are covered by this settlement, please contact the Settlement Administrator to verify your policy number(s).

You received the notice(s) because Zurich’s records indicate your company had insurance with Zurich between August 26, 1994 and September 1, 2005. Zurich and other companies were sued on behalf of all persons who had policies during that time. Zurich has reached a settlement in that case which may entitle you to monetary relief. Zurich sent you the notice(s) to inform you about this.

Court rules required that the Plaintiffs and the Zurich Defendants send the notice(s) to provide you with information about the lawsuit and the settlement. You or your company may be eligible to receive monetary relief.

Your company may have been insured by one of Zurich’s 22 business units, which have different names. All 22 are:

49) I received a notice that is addressed to someone else./The addressee no longer lives at this address. What should I do?

You are not being sued. You received the Notice(s) because you may be entitled to monetary relief.

51) Why didn’t I receive a Notice? Why did I have to read about this settlement in a newspaper?

Notices were only sent to companies that, based on Zurich's records, had commercial insurance or reinsurance with Zurich during the August 26, 1994 to September 1, 2005 Class Period.

Do you believe you had a commercial insurance or reinsurance policy with Zurich during this time?

Zurich does not have a record of any other insurers' eligible policy holders so it could not mail notices to those class members. That is why, instead, Zurich paid to publish the Notice you saw and others in over 50 publications.

53) I lost my company’s notice. What do I do/Can my company join the Settlement Class?

You received the notice because Zurich records indicate that you qualify to participate in the settlement. You do not need to do anything to receive monetary relief for your qualifying Zurich policy.

Zurich has already funded this amount into the Class Action Escrow Account set up under the Zurich Settlement Agreement and the Multi-State Agreement.

Because the Plaintiffs in the Class Action required Zurich to pay $70.1 million and the attorneys general from 13 states required Zurich to pay an additional $51.7 million, together that is $121.8 million.

The Fund will be distributed on a premium weighted basis. The Plan was included in the Notice Packet that you received. If you would like another copy of the Plan of Allocation it can be found on the this website.

Limited expenses may be deducted from the settlement relief to cover any taxes due on the monies and any fees or expenses incurred to maintain the Class Action Escrow Account. After deducting these expenses and calculating the interest due to be added to the fund, the balance will be distributed to the Settlement Class Members. Zurich will be paying all other expenses of the class action settlement in addition to the settlement amounts.

58) Who will pay the costs of implementing and administering the Zurich Settlement?

Zurich will pay all costs associated with implementing and administering the Zurich Settlement. These costs are in addition to the amounts that Zurich must pay as settlement relief.

Neither the Plaintiffs nor Zurich can tell you exactly how much individual Settlement Class Members will receive. The amount will vary depending on, among other things, the number of policyholders who participate in the settlement.

Several objectors to the Zurich Settlement have filed appeals from the Court’s order approving the Zurich Settlement. The appellate court has scheduled argument for April 20, 2009. The proceeds of the Zurich Settlement cannot be distributed until the appeals are resolved. It is unknown when this appeal will be resolved. Further, until this appeal is resolved, neither the Settlement Administrator nor counsel knows the value of the distribution.

61) How can I/my company collect any payment that it receives under the Zurich Settlement?

Unless an appeal is filed and the Zurich Settlement is subsequently rejected, settlement relief will be mailed to the same address to which the Notice was sent or, if you had non-Zurich policies, to the address you indicate on your claim form.

If your address has changed you should fax, mail or e-mail to the Settlement Administrator the old address, the new address and the claimant ID number(s). Also, please provide us with an email address if you have one.

In order to receive a settlement check made out to the company’s new name, you will need to send to the Settlement Administrator a copy of a document showing that name change, such as a corporate resolution or a Notice of Name Change that the company might have sent to a state agency. If the Settlement Administrator receives that from you, then we will be able to have the settlement check made out to the new name.

We do not anticipate sending any further mailings other than settlement relief checks unless your Claim is deficient in some away.

The deadline for objecting to the settlement was January 11, 2007. If you did not file your objection by that deadline, there is nothing you can do to object to the settlement.

66) Can my company object to specific terms of the settlement (e.g., attorneys’ fees) without objecting to the entire settlement?

The deadline for objecting to the settlement was January 11, 2007. If you did not file your objection by that deadline, there is nothing you can do to object to the settlement.

The Court held a hearing on January 26, 2007 to consider whether to approve the Zurich Settlement and subsequently approved the Settlement without modification on February 16, 2007. This ruling has been appealed. In ruling on the settlement, the Court considered, among other things, whether to approve the proposed settlement as fair, reasonable and adequate and whether to approve the proposed Plan of Allocation. The Court also considered and rejected objections that have been raised by Settlement Class Members. At the January 26 hearing, the Court indicated that it would consider the issue of Plaintiffs’ attorneys’ fees and expenses separately at a future date. We do not have any further information concerning attorneys’ fees and expenses at this time.

The Court held the Fairness Hearing on January 26, 2007 at 11 a.m. in Newark, New Jersey. The court later approved the Settlement without modification on February 16, 2007. The Court indicated that it would consider the issue of Plaintiffs’ attorneys’ fees and expenses separately at a future date. We do not have any information concerning attorneys’ fees and expenses at this time.

The Court held the Fairness Hearing on January 26, 2007. You were not required to attend the hearing. Individuals and entities who wished to make a presentation to the Court at the hearing were required to have filed a notice of their intention to appear with the Clerk of the Court and mailed a copy to counsel in the case by January 11, 2007.

75) If my company files a written objection to the settlement, are we required to attend the Fairness Hearing?

You were not required to attend the hearing. In any event, the hearing was already held on January 26, 2007.

76) If my company submited a written request to be excluded from the Settlement Class. Can we object to the terms of the Zurich Settlement Agreement?

Policyholders who have asked to be excluded from the Settlement Class may not object to the settlement. Only Settlement Class Members who have chosen to participate in the Settlement Class may object to the settlement. In any event, the deadline for objections of January 11, 2007 has passed. You can no longer object to this settlement.

The deadline for opting-out of the settlement was January 11, 2007. If you did not mail your opt-out request by that deadline, there is nothing you can do to exclude yourself from the settlement.

79) What does a request for exclusion need to state?/Should I just write a letter to be excluded?

The deadline for opting-out of the settlement was January 11, 2007. If you did not mail your opt-out request by that deadline, there is nothing you can do to exclude yourself from the settlement.

A written request for exclusion needed to include (i) the policyholder’s name, (ii) the policyholder's address, and (iii) the policyholder's telephone number, information about each policy for which the policyholder seeks exclusion, including the following: (a) the Zurich insurer that issued each policy, (b) the policy number for each policy, (c) the broker used, (d) the face amount** of each policy, (e) the annual premium associated with each policy and (f) the effective date and expiration date for each policy.

80) I did not submit my company’s request for exclusion before the deadline. Can my company still be excluded from the settlement?

No. You must submit a written request by the deadline in order to be excluded from the Settlement Class.

81) My company submitted a request for exclusion, but has since changed its mind. Can my company still participate in the settlement?

Because the deadline for excluding yourself from the settlement has passed you can no longer change your mind and ask to participate in the settlement.

We are very sorry you received all those Notices. That happened because the court ordered Zurich to send 1 notice out for each policy purchased or renewed over the 11-year Class Period and Zurich's records indicate you had multiple polices during this period.

You do not have to do anything to receive the monetary relief you are entitled to as a holder of Zurich policies. You will automatically receive settlement checks for your eligible Zurich policies.

If you want to receive an aggregated settlement check, please send a letter to the Settlement Administrator requesting that one check be sent to your company. Please include the address where your company can receive the check. Your letter should also include a schedule listing all of the policies attached to one of the Claim Forms. The schedule should include all of the information requested on the Claim Form (i.e. policy number, dates, premium and broker).

85) I am a bondholder. I received (for example) 50 notices. What do I need to do?

We are very sorry you received all those Notices. However, pursuant to its settlement of this class action, Zurich was required by Court Order to send a Notice to every commercial insurance policy holder for every policy or bond it issued over an 11 year period.

Because you purchased multiple bonds from Zurich over that period of time, you received multiple Notices. We are sorry for the disruption. You do not have to do anything with the Notices or as a result of receiving them.

The Notices inform you that under this settlement you are entitled to receive some compensation - unless you do not want to participate in the settlement and you so inform the Court. Right now that compensation is set up to be delivered in multiple checks, just like the Notices. If you would like instead to receive just one, consolidated check, you can send a letter requesting that you receive a single settlement payment to the Settlement Administrator.

Your letter also should include the following information:
Contact’s name, phone number and email, Company name and address

86) My customer received a notice about a class action settlement? What are the Notices and the Class Action about?

The Notices are about the class action against Zurich and about 70 other insurance companies and 30 brokers regarding allegations of antitrust violations.

It is standard to provide class members with the names of all defendants in the action. In addition, Zurich had to include the broker defendants' names because they define part of the eligible class, the conspiracy claimants. In other words, the conspiracy claimants are those who purchased non-Zurich policies through a broker defendant.

You probably received them because your address was the only address that Zurich had for your bond holders. They are for Zurich's customers who were insured under bonds that you issued over the past 11 years. Zurich is under a Court Order to supply these Notices to all of its commercial insurance policy and bond holders for every policy or bond they purchased or renewed over the last 11 years to inform them of Zurich's settlement and that they are entitled to settlement compensation under the settlement.

The Settlement Administrator has notified all Class Members additionally by publishing a summary notice in five national publications and the largest daily newspaper in every state in the country.

There is nothing you need to do. Your clients who are Zurich Insureds will receive a Notice Packet about the settlement in the mail in the next week or two. The Notice will fully inform them of what steps they need to take to receive a distribution or to exclude themselves from the settlement.

Marsh & McLennan has settled certain matters pending against it. Other brokers and insurers have also reached some settlements or are working on settlements. Zurich has also reached other settlements. However, none of the settlements, except for Zurich's, have resolved the Class Action which is being pursued by the Plaintiffs.

92) If I stay in this settlement and take the settlement payment, can I still receive a settlement payment under the other settlements?

Your participation in this settlement will not affect your ability to participate in any settlements with other defendant insurers and brokers. However, your participation in this settlement could prevent your company from participating in one other Zurich settlement.

93) I have heard about a settlement between Zurich and New York/Illinois/Connecticut. Please explain the difference between that settlement and the Class Action settlement.)

In the Three State Agreement, certain Zurich Insurers entered into an agreement with the Attorneys General for the States of New York, Illinois and Connecticut, and the Superintendent of the New York Department of Insurance. Under the Three-State Agreement, the Zurich Insurers agreed to create an $88,000,000 settlement fund that will be distributed to policyholders that purchased or renewed excess casualty insurance policies, other than workers’ compensation policies, issued by Zurich Insurers through Marsh & McLennan Companies, Inc., or Marsh Inc. from January 1, 2000 through September 30, 2004. Although these policyholders may also be eligible to participate in this, the Zurich Settlement, they are not able to receive settlement relief under both agreements for policies eligible under both agreements.

94) How do I know if my company is eligible for relief under the Three-State Agreement?

If your company is eligible under the Three State Agreement, it received a mailed Notice from Zurich in September 2006. You can obtain more information about the Three-State Agreement by calling 1-800-698-5042.

95) Can my company receive relief under the Three-State Agreement settlement and the Class Action Settlement

Your company may not receive settlement relief for the same policy under both settlement agreements.

96) If my company decides to take the settlement in the Three-State Agreement, do I have to do anything to opt out of the Class Action Settlement?

If your company mails in the release form for the Three-State Agreement, then it will receive the settlement applicable for its Three-State Agreement policies from that settlement, and not from this Class Action settlement fund. In other words, your company will automatically be opted out of the Zurich Settlement for your policies that are eligible under both the Three-State Agreement and the Zurich Settlement.

If your company wants to take the settlement in the Three State Agreement, it must mail in a release form for that agreement by January 17, 2007. You can obtain more information about the Three-State Agreement by calling 1-800-698-5042. Remember that your company may not receive settlement relief for the same policy under both the Three-State Agreement and the Zurich Settlement.

98) What happens if my Company does not elect to take the Settlement under the Three-State Agreement?

If your company does not elect to take the settlement under the Three State Agreement for its eligible policies, it will automatically be compensated for those double-eligible policies under this Class Action settlement. In any event, your company will automatically be compensated for those Zurich policies that are eligible only under this agreement. The bottom line is that insureds cannot be compensated under both settlements for policies that are eligible under both settlements. You can not recover twice for the same policies.

We can not tell you under which settlement your company will recover more money for those double eligible policies because we do not yet know how many policyholders will eventually decide to participate in either one of the settlements.

If your company has Three State Eligible Policies, you already received a Notice telling you how much your company will receive under that settlement.

As far as this settlement goes, the amount of recovery to Zurich policies depends on how many policyholders finally decide to not opt out.

Facts that may help you make your decision include the differences between the two settlements:

100) I have heard news reports about settlements between Zurich and certain State Attorneys General and Departments of Insurance. How is the Zurich Settlement related to those settlements?

Certain State Attorneys General and Departments of Insurance have investigated the alleged conduct that also gave rise to the claims made in this Class Action. The investigations involved Zurich, along with brokers and other insurers. Zurich has already settled a number of those investigations and is in the process of finalizing the settlement of others. The settlements with most of those attorneys general and regulators are collectively called the Multi-State Agreement and that agreement contributed $51.7 million to this settlement fund.

Two groups of settlements relating to government investigations could affect your participation in the Zurich Settlement.

Certain Zurich Insurers entered into a Multi-State Agreement, with several state attorneys general and state insurance departments, whereby the Zurich Insurers agreed to pay $51.7 million to the same class of members as the class action class along with settlement funds that will be provided under the class action settlement. That $51.7 million is being added to the class action settlement amount making the total Zurich Settlement Fund at least $121.8 million.

Certain Zurich Insurers entered into an agreement with the Attorneys General for the States of New York, Illinois and Connecticut, and the Superintendent of the New York Department of Insurance. Under that agreement, which is called the Three-State Agreement, the Zurich Insurers agreed to create an $88,000,000 settlement fund that will be distributed to policyholders that purchased or renewed excess casualty insurance policies, other than workers’ compensation policies, issued by Zurich Insurers through Marsh & McLennan Companies, Inc., or Marsh Inc. during about a 4.5 year period, from January 1, 2000 through September 30, 2004. Although these policyholders are also eligible to participate in the Zurich Settlement, they are not able to receive settlement relief under both agreements for policies covered by both agreements. In order to participate in the Three State Agreement, eligible policyholders must release their claims to this settlement fund for their double-eligible policies.

102) Are there any circumstances in which a policyholder may obtain relief under both the Three-State Agreement and the Zurich Settlement?

Yes. A policyholder who obtains relief for some policies under the Three-State Agreement may make a claim for relief under the Zurich Settlement but only for purchases or renewals of different policies, i.e., those that are not covered by the Three-State Agreement. Policyholders who choose to obtain settlement relief for purchases or renewals of excess casualty insurance policies, other than workers’ compensation policies, issued by Zurich Insurers through Marsh & McLennan Companies, Inc., or Marsh Inc. from January 1, 2000 through September 30, 2004, must decide to do so under either the Three-State Agreement or the Zurich Settlement. Policyholders cannot receive compensation under both settlements for double-eligible policies.

103) How can I sign up for/get more information on the Three State Agreement settlement?

104) Will my company have to pay taxes on any funds that it receives as a result of the settlement?

I am not qualified to give you tax advice. You should talk to your own accountant or tax professional to determine whether or not your receipt of monetary relief under the Zurich Class Action Settlement, Three-State Agreement, or Multi-State Agreement will have tax consequences for you.

The Court has appointed Whatley, Drake & Kallas, LLC and Miller Faucher and Cafferty LLP to represent Settlement Class Members as Co-Lead Counsel. Several other firms have also been appointed as Class Counsel.

107) Is my company responsible for paying the fees and expenses of Class Counsel?

Settlement Class Members are not responsible for paying Class Counsel’s fees and expenses. Class counsel will file an application with the Court for attorneys’ fees and expenses and the Court will decide the amount of attorneys’ fees and expenses to be awarded. Zurich has agreed to pay Class Counsel’s fees and expenses, subject to Court approval. We do not yet have any information on whether or not the Court will approve attorneys’ fees and expenses.

108) Will attorneys’ fees and expenses be deducted from the settlement relief?

The attorneys’ fees and expenses will not reduce the settlement relief available to Settlement Class Members.

Settlement Class Members are not required to hire their own attorneys, but may choose to do so at their own expense. Settlement Class Members who do not hire their own counsel will be represented by the Class Counsel appointed by the Court.

110) Can my company communicate directly with Co-Lead Counsel or the State Attorneys General who are parties to the Multi-State Agreement?

111) All of my companies records were lost in a fire. Can you give me policy information from my company?

I am not able to give you that information at this time. If you double-check your company’s records and still cannot find your policy information, you may be able to get help identifying your company’s policies from your company’s insurance broker.

Please send a letter to the settlement administrator along with some official documentation concerning the policyholder’s death. Examples of documentation include an original death certificate or documentation from the court appointing an executor for the policyholder’s estate.

Dissolution/Out of Business:
Although I am not a lawyer and I am not familiar with the circumstances of your company's dissolution, examples of documentation include:

This list is not exhaustive. Your company's attorney or accountant may be able to help you. You should also review your company's files to see if you have any documents that reference your company's dissolution/sale/acquisition/merger. If you find something like that, you can mail it to the Settlement Administrator, along with your contact information, including phone number and e-mail address. The Settlement Administrator will contact you if there are any questions.)

113) The insured company has been sold/ out of business/dissolved/acquired/merged. What should I do?

Please send a letter to the settlement administrator along with some official documentation concerning the company’s dissolution (or acquisition or merger).

114) Broker Defendant Acquired My Broker: I purchased a policy through a broker that is not a Broker Defendant. However, a Broker Defendant later purchased my broker's business. Am I eligible for the settlement?

Did you purchase your policy through the original broker at any time between August 26, 1994 and September 1, 2005?

Several objectors to the Zurich Settlement have filed appeals from the Court’s order approving the Zurich Settlement. The appellate court has scheduled oral argument for April 20, 2009. The proceeds of the Zurich Settlement cannot be distributed until the appeals are resolved. It is unknown when this appeal will be resolved. Further, until this appeal is resolved, neither the Settlement Administrator knows the value of the distribution.

The Court’s February 16 decision to approved the Settlement has been appealed. The appellate court has scheduled argument for April 20, 2009. The proceeds of the Zurich Settlement cannot be distributed until the appeals are resolved. It is unknown when this appeal will be resolved. Further, until this appeal is resolved, neither the Settlement Administrator nor Counsel knows the value of the distribution.

Unfortunately, the deadline to file a claim was imposed by the Court. If you choose to file a claim, it will be marked “late” and the Court will make a decision as to whether that claim is eligible.

The deadline to file a Claim has passed. All Claim Forms were due by June 12, 2007. If you would like to view a Claim Form, you can click on the link to the left.

You will need to call our toll-free telephone number and speak to a customer service representative.
That number is 1-866-722-3544. You can also send an email to zurichadmin@completeclaimsolutions.com.

If the Settlement Administrator has any questions concerning the information provided on your Claim Form or if anything further is needed, the Settlement Administrator will contact you directly.