Amwest Surety Insurance Company
5230 Las Virgenes Road
Calabasas, California 91302

NOTICE

TO: All Policyholders, Principals, Obligees and Agents of Amwest Surety Insurance Company, a Nebraska Insurer

Please be advised that Amwest Surety Insurance Company ("Amwest") became the subject of an Order of Liquidation, Declaration of Insolvency and Injunction entered by the District Court of Lancaster County, Nebraska Court ("Court") on Thursday, June 7, 2001 under case number CI 01-2102 ("Order"). The Court found that Amwest is insolvent and appointed L. Tim Wagner, Director of Insurance of the State of Nebraska, as liquidator of Amwest to liquidate the business of Amwest (the "Liquidator"). The June 8, 2001 Notice of Legal Rights and Obligations is attached.

Cancellation of All Policies, including Bonds and Other Non-Cancellable Business

By issue of the Order, pursuant to Neb. Rev. Stat. 44-4818 and, further, pursuant to the terms of Neb. Rev. Stat. 44-4819, all policies, including bonds and other non-cancellable business in effect at the time of issuance of Order of Liquidation shall continue in force until the earliest of:

    1. thirty days from the date of entry of liquidation order (i.e., July 6, 2001 at 12:00 p.m. CDT);
    2. the expiration of the policy or bond coverage;
    3. the date when the insured has replaced the insurance coverage with equivalent insurance with another insurer or otherwise terminated the policy; or
    4. the Liquidator has effected a transfer of the policy obligation pursuant to subdivision (1)(j) of section 44-4821 (Reissue 1998).

If your bond contains a co-surety, in addition to Amwest Surety Insurance Company, or contains additional provisions for liability of another company by reason of endorsement, you are instructed to contact that company or those companies in regard to their liability, if any, to you under the terms of that bond. Otherwise, we urge you to attempt to obtain replacement insurance coverage or replacement surety bonds immediately.

You may wish to contact your state insurance guaranty association to determine whether your association has been activated.

Due to the Order, Amwest Surety Insurance Company will no longer defend or pay for the defense of its insureds and principals and, therefore, any insured or principal residing in such a situation should make arrangements to employ independent counsel to defend against any legal action which would otherwise be covered under an Amwest policy or bond.

The Liquidator will be petitioning the Court for an Order implementing a claims process and adopting a Proof of Claim form. All insureds, principals, obligees and agents of Amwest will be provided a Proof of Claim form for filing claims once this process has been implemented. Please keep the Liquidator informed of any address changes. The bar date (last day to file a timely Proof of Claim) is June 7, 2002.

During the interim any inquiries may be directed to Claimant Services at 5230 Las Virgenes Road, Calabasas, California 91302, toll free number (866) 789-8119 or direct telephone number (818) 871-3614. Additionally, Amwest Surety Insurance Company's web site (www.Amwest.com) is a source for news regarding the ongoing liquidation.

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