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C'Jr7 POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE Coverage for Acts of terrorism, as defined in the Terrorism Risk Insurance Act as amended, (the "Act), is included in the quote for your ( ) NEW or ( X ) RENEWAL policy- You are hereby notified that under the Act the definition of act of terrorism has changed. As defined in Section 102(1) of the Act The term "act of terrorism" means any act that is certified by the Secretary of the Treasury-in concurrence with the Secretary of State, and the Attorney General of the United States-4o be an act of terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of certain air carriers or vessels or the premises of a United States mission; and to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. Under your coverage, any losses resulting from certified acts of terrorism may be partially reimbursed by the United States Government under a formula established by the Act. However, your policy may contain other exclusions which might affect your coverage, such as an exclusion for nuclear events. Under the formula, the United States Government generally reimburses 85% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage- The Act contains a $100 billion cap that limits U.S. Government reimbursement as well as insurers' liability for losses resulting from certified acts of terrorism when the amount of such losses exceeds $100 billion in any one calendar year- If the aggregate insured losses for all insurers exceed $100 billion, your Coverage may be reduced. The portion of your annual premium that is attributable to coverage for acts of terrorism as defined in the Act is $1,472.00 and does not include any charges for the portion of losses covered by the United States government under the Act Name of Insurer: KEY RISK INSURANCE COMPANY Quote Number. 950-94-110 LEE COUNTY GOVERNMENT ® 2007 National Association of Insurance Commissioners