1. KPA E&S Underwriting Facility Keystone Program Administrators (KPA) JUNE 2013

2.   KPA is a wholly-owned subsidiary of Keystone Insurers Group.  We are a fully functional Program Administrator and authorized E&S UW facility.  P&C and Surplus Lines Licensed in all Keystone States.  KPA was developed as an alternate E&S solution to write unique and unusual business that does not meet your core markets or our specialty program appetites. Keystone Program Administrators (KPA)

3.  Key Benefits to KIG partners:  Immediate access to an alternative market.  Quick quote turnaround given our binding authority.  Increased hit ratios.  Underwriting expertise.  Access to online e-flyers, product cards.  Strong commission structure: 15% - no volume requirements. Keystone Program Administrators (KPA)

4. KPA E&S Underwriting Facility Market for challenging classes of business. We are not a market for risks requiring extensive loss prevention services, heavy products exposures, professional liability or E&O. PAPER: Western Heritage Insurance Company AM Best Rating: A+XV (Superior) LINES OF BUSINESS: GL, Property, Crime, Inland Marine ENHANCED COVERAGES Increased GL Limits, HNOA, Property Extension, Liquor Liability, Employee Benefits, Equipment Breakdown STATES: PA, IN, OH, KY, TN, NC, VA, GA Keystone Program Administrators (KPA)

5. SPECIAL CLASSES (higher hazard) - Amusement Devices - Apartments - Bars and Taverns - Contractors: o Alarm Installation o Demolition Contractors o Landscape and Gardening o Resident Artisan Contractors o Roofing o Tree Trimmers Daycare Centers Exercise and Health Clubs Home Healthcare Nightclubs Pest Control Service Restaurants Security/Patrol Agencies Special Events Vacant Buildings Keystone Program Administrators (KPA) STANDARD CLASSES - Commercial Dwellings - Gasoline Service Stations - Hotel/Motel - Kennels - Mercantile- including furniture and home furnishings - Offices and Banks - Swimming Clubs 2012 Western Heritage Top Classes Written in Keystone States States General Liability Rating: The Special Classes utilize proprietary rates. The Standard Classes utilize current ISO Loss Cost and 1.65 LCM.

6. PROBLEM: Your account does not meet the carrier/program guidelines due to ineligible operations or a high hazard exposure. EXAMPLES: Grocery store with liquefied petroleum gas (LPG) sales. LRO- ineligible tenant; high hazard type occupancy. Restaurant with amusement devices. Apartment or Dwelling with a vacant building or pool. Public marina with boat rentals. Convenience store with 24 hour operations. Hotel/motel with recreational equipment rentals. Contractor is engaged in roofing work. Churches or Schools; haunted house fundraising activities. Special Events; athletic event, concert, parade, car show, etc. (We also may consider entertaining New Ventures / No prior coverage). SOLUTION: KPA E&S Underwriting Facility Keystone Program Administrators (KPA)

7. Requirements to place business with KPA  Partner must be in good standing with Keystone.  Sign KIG Partner Acknowledgement form.  Must complete Partner Banking Form for payment sweep (if not already set up).  Partners must successfully complete our program webinar training/orientation session to access KPA Programs.  All submissions and policy transaction requests are received and handled completely electronically. Keystone Program Administrators (KPA)

8. KPA E&S Underwriting Facility SUBMISSIONS  Complete applications.  Complete supplemental application when required.  A Western Heritage application is preferred but other supplemental applications may be acceptable.  Prior carrier information along with expiring premium (if possible).  Loss history for the past three years, including an explanation of the loss.  Email submission to Jeff Moran, Senior Lead Commercial Underwriter: jmoran@keystoneinsgrp.com jmoran@keystoneinsgrp.com  KPA strives for a 3 day or sooner quote turnaround time. Keystone Program Administrators (KPA)

9. KPA E&S Underwriting Facility Quotations are valid for 60 days. BIND ORDER REQUIREMENTS Signed proposal (Partner). Signed application (Insured). Signed supplemental application (Insured). Signed terrorism form (Insured). Payment (full pay or appropriate down payment will be made via agent’s “sweep” account with Keystone). Any quote conditions or “subject to” requirements must be satisfied prior to binding. New applications are required every three years or sooner; if there is a material change in the risk; if required in the Special Class Guidelines, or requested by a Keystone Underwriter. Keystone Program Administrators (KPA)

10. Consider partnering with KPA and start to leverage these direct, immediate benefits: Immediate access to an alternative market. Quick quote turnaround. We can provide premium indications and help pre-qualify new business prospects. Increase your hit ratios. When a new business opportunity arises, the focus from the start of the underwriting process will be to develop a joint plan to win business together. We bring underwriting expertise to the table. E&S underwriting expertise to solve your risk placement problems quickly. Marketing Advantages. To make it easier for you to market our E&S Special Classes, we have access to online e-flyers and product cards that can be customized with your agency contact information. Strong commission structure. 15% Keystone Program Administrators (KPA)

11. KPA E&S Underwriting Facility KEY TAKE-AWAYS  KPA E&S Underwriting Facility is an alternative market for a wide variety of non-standard, unique classes.  Complements our pre-existing specialty programs or core markets.  Provides agency growth opportunities through this facility you otherwise would not have access to.  Speed to market creates greater binding opportunity.  All business is considered core business.  We pay full 15% Commission. Keystone Program Administrators (KPA)

12. KPA E&S Underwriting Facility We look forward to doing business with you. Questions? Jeff Moran, Senior Lead Commercial Underwriter Phone 570.473.2700 jmoran@keystoneinsgrp.com Keystone Program Administrators (KPA)