XL Insurance - Environmental Division Northeast Waste Management Officials Association Environmental Workshop March 21st, 2007 Jayne Cunningham Vice President XL Environmental

XL Insurance - History Founded in 1986 by customers for customers, during the most severe liability crisis in insurance history In 2000, purchased ECS giving XL the second largest environmental market. A+ rated Carrier, offering a broad complement of specialty products

© 2005, XL Insurance, a member of the XL Capital group, All rights reserved XL Environmental − 1979 – Founded as Environmental Compliance Services, Inc. (ECS); based in Exton, PA. Began in the business offering a full range of Environmental Products to Environmental Waste Industry – GL, Auto, WC, Pollution Legal Liability, CPL for Waste Management Companies, Landfills, Waste Water Treatment Plants etc. − MGA for Reliance National. − June 1, $225 Million in premium. Acquired by XL Capital − 2006 – 2 nd largest environmental carrier, superior financial rating, reputation for customer service

© 2005, XL Insurance, a member of the XL Capital group, All rights reserved Insurance Products 1. Pollution & Remediation Legal Liability (PARLL) − Four-part coverage form to include: Third-Party Liability: Bodily Injury/Property Damage Remediation Expense: On-site & Off-site Legal Defense Expense (within Limits of Liability) Contingent Transportation

© 2005, XL Insurance, a member of the XL Capital group, All rights reserved Protection for Lender 2. Real Estate Lenders Policy (RELP) − Coverage for Lenders – Borrower defaults on loan resulting from Pollution Conditions that require remediation. − Policy covers “Lesser Of” the amount of the outstanding loan balance or the clean-up costs.

© 2005, XL Insurance, a member of the XL Capital group, All rights reserved Supplementary Product Offerings: Facilities - Environmental − Remediation Stop Loss Policy (RSL) − “Cap” expected remediation costs − Cover property Owners and/or Consultants − Not accepting new business without existing relationship. − Closure / Post Closure (CPC) − Financial mechanism available to government environmental agencies to pay for remediation and/or proper closure of disposal facilities under RCRA. − Not currently accepting new mono-line business submissions or requests.

© 2005, XL Insurance, a member of the XL Capital group, All rights reserved Coverage Specific to Brownfield Transactions − Pre-existing Conditions: − Unknown contamination issues − Toxic Tort associated with previous Operations − Bodily Injury Associated with Asbestos/Lead − Excess of Indemnity Trigger − New Operations: − Mold Coverage − Bodily Injury arising from Asbestos/Lead − Business Interruption/Loss of Rents

© 2005, XL Insurance, a member of the XL Capital group, All rights reserved Transactional business demands a coordinated approach… XL’s Institutional Advantages  Integrated group of Underwriters, Risk Control and Claims staff  Long term Staff Tenure, High Retention and Experience  Excellent Ratings of Financial Strength and Claims Paying Ability  Ability to Write Excess Capacity when large limits are necessary  Staff Counsel Reviews PSA’s and Other Contracts  Staff Risk Control Engineers Work Directly with Underwriters  Turn Around Time, as Fast as 1 Day  Insurance products for all parties to the transaction, including Lender