American Property Casualty Insurance Association

“Form 990, Part VI, Question 6 There are 3 classes of membership as follows: a) Regular Members, whose membership is granted upon application and approval by the PCI Board of Governors to all companies doing business in the USA which are engaged in writing property, casualty, or surety insurance; b) International Associate Members, whose membership is granted upon application and approval by the PCI Board of Governors to all property, casualty, or surety companies which are not organized or licensed to write insurance in the USA; c) Reinsurer Members, whose membership may be granted upon application and approval by the PCI Board of Governors to companies authorized and/or approved in the USA to provide reinsurance to companies writing property, casualty, or surety insurance upon such terms and conditions as are established by the PCI Board of Governors; d) Notwithstanding the above, a company that is part of a group in which at least (i) one company is a PCI member; and (ii) fifty-one percent of the property-casualty premium of the group is written by existing PCI member companies, may be accepted as a member of PCI without the approval of the Board of Governors in the same category of membership as the other companies in the group; Description of Classes of Persons and the Nature of Their Rights Form 990, Part VI, Question 7a Regular members shall be entitled to serve on committees and the Board of Governors, and to vote in all matters coming before the membership. However, in the event two or more regular members belong to the same company group only one such regular member shall be entitled to vote at any PCI meeting, including but not limited to, any Board, Committee, or Task Force meeting. International Associate Members shall not be entitled to serve on any committee or on the Board of Governors and shall not have the right to vote on any matter coming before the membership. Reinsurance members shall not be entitled to serve on the Board of Governors and shall not have the right to vote on any matters coming before the membership but may serve on committees established under Article XI, Section 4 of the Articles, and may have the same voting rights on committee matters as other members of such committees. THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 FORM 990, PART VI, QUESTION 11 The organization's Form 990 is reviewed for accuracy by the chief financial officer, chief operating officer and general counsel after the return is prepared and reviewed by Ernst & Young. The Form 990 is then reviewed by the Board audit committee prior to filing.”

“Form 990, Part VI, Question 12c The Conflicts of Interest policy is a section of the PCI Code of Conduct, which is circulated to all employees and includes a written acknowledgement that the employee has read the code, which is required to be signed and returned to the employee's personnel file. THERE IS AN ONLINE TEST THAT MUST BE COMPLETED AND PASSED. The Conflict of interest policy is posted on an internal employer intranet for easy reference for all employees. A separate conflict of interest policy is given to all directors. In addition, directors are given an annual conflict of interest disclosure statement that is required to be signed and returned to PCI.”

“FORM 990, PART VI, QUESTION 15A The process for determining the compensation of the Chief Executive Officer included a review and approval by the Board Executive Committee, and an independent market study of the compensation package versus that of data for comparable positions.”

“Form 990, Part VI, Question 15b The process for determining the compensation of the officers includes a review and approval by PCI's Benefits & Compensation Committee, and an independent market study of the compensation packages versus that of data for comparable positions.”

“Form 990, Part VI, Question 19 PCI does not make its governing documents or conflict of interest policy available to the public. The Form 990 and the Financial statements are available upon request.”

“Part XI, Line 9 OTHER COMPREHENSIVE INCOME: $2,925,537”