Amwest Surety Insurance Company, in Liquidation

Agent Relations

ATTENTION AGENTS: The following information pertains to all business.

Every person subject to the Liquidation Order (Order) and pursuant to Neb. Rev. Stat. §44-4822 (Reissue 1998) and who represents Amwest Surety Insurance Company (Amwest) as an agent shall, absent written waiver of this requirement by the Liquidator within fifteen days of such notice, give written notice of the Order by first class mail to the last address contained in the agent’s records to each policyholder or other person named in any policy issued through the agent by Amwest if such agent has a record of the address of the policyholder or other person. Such written notice shall include the name and address of the insurer, the name and address of the agent, identification of the policy impaired, and the nature of the impairment, including termination of coverage as provided by Neb. Rev. Stat. §44-4819 which provides in the pertinent part as follows:

(1) All policies including bonds and other noncancellable business in effect at the time or issuance of the order of liquidation shall continue in force until the earliest of:

(a) thirty days from the date of entry of the liquidation order;

(b) the expiration of the policy coverage;

(c) the date when the insured has replaced the insurance coverage with equivalent insurance in another insurer or otherwise terminated the policy; or

(d) the liquidator has effected a transfer of the policy obligation pursuant to subdivision (1) (j) of section 44-4821.

Notice by a general agent satisfies the notice requirement of this paragraph for any agents under contract to him or her. Each agent obligated to give notice pursuant to this paragraph shall file a report of compliance with the Liquidator. Any agent failing to give notice or file a report of compliance as required by Neb. Rev. Stat. §44-4823 (Reissue 1998) for whom the Liquidator has not waived such requirement may be subject to payment of a civil penalty of not more than $1,000 and may have his or her license suspended.

All agents, brokers, premium finance companies and other persons, other than insureds, responsible for the payment of premiums shall be obligated to pay to the Liquidator any unpaid earned premium of Amwest and all unearned commissions as of the date of the Order except as provided in sections 44-4819 and 44-4837. Section 44-4819 provides coverage for 30 days expiring midnight July 6, 2001 or until policy/bond replacement or cancellation if prior to midnight July 6,2001. Premium is due for the thirty-day period or any part thereof.

An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall not be obligated to pay the unpaid unearned premium due the insurer as the date of the Order, except as provided in sections 44-4819 and 44-4837, as shown on the records of the insurer, and any such unearned premium in the possession of such agent, broker, premium finance company or other person at such time shall be returned promptly by such agent, broker, premium finance company, or other person to the insured or other person from whom it was received.

All insureds of Amwest are obligated to pay to the Liquidator any unpaid earned premium due as of the date of the Order except as provided in sections 44-4819 and 44-4837.

Any person failing to comply with the provisions of Neb. Stat. Stat. §44-4833 is subject to the penalties provided therein, including imposition of civil penalties by the Director of Insurance of not more than for $1,000 for each act in violation of said statute.

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