Amwest Surety Insurance Company in Liquidation

Subject: July 2009 Update

On July 24, 2009, the Liquidator filed an application with the Liquidation Court seeking authorization to enter into agreements with the commissioners, directors, receivers or similar insurance officials of states other than Nebraska in which Amwest did business under which the affected insurance officials would surrender certain amounts on deposit and in exchange the approved Amwest claimants previously covered by such deposits would participate in Amwest's general asset distributions. The Liquidator believes that such agreements are specifically authorized under Section 44-4821(1)(w) of the Liquidation Act. The agreements would result in substantially increased general asset distributions to certain Class 3 policyholder claimants in certain states.

Hearing on the application will be held before the Liquidation Court at 575 South 10th Street, Lincoln, Nebraska, in Courtroom 33, on Thursday, September 17, 2009 at 9 a.m. central time. Claimants or their legal representatives may appear and be heard.

For additional information see a copy of Application No. 97, which is reproduced under NOTICES.

Subject: June 2009 Update

Interim Distribution: On June 25, 2009, the Liquidation Court authorized the Liquidator to pay an additional interim general asset distribution to Policyholder (Class 3) claimants with approved and confirmed claims. The distribution percentage for this distribution is 15% of the amount of approved and confirmed Policyholder claims. Approved interim distributions now total 40% of the amount of approved and confirmed Policyholder claims. Claims which have not been resolved and claims covered by special deposits are not included and will be addressed at a later date. The Liquidator continues to estimate that the ultimate general asset distribution to Class 3 Policyholder claimants will be no less than 50% of the amounts claimed. The Liquidator therefore expects to make one or more additional distributions to Policyholder claimants as soon as circumstances permit.

To view a copy of the Liquidator’s Application and the Liquidation Court’s Order, please see Application No. 95 (Liquidator’s Application to Pay Interim Distribution) and Order on Application No. 95 under NOTICES.

Distributions to claimants who have not confirmed their claim balances have not yet been approved. If you have not yet confirmed your claim balance, please contact the Liquidator immediately. See HOW TO REACH US.

CLAIMANTS ARE AGAIN CAUTIONED THAT THERE ARE A NUMBER OF FACTORS THAT WILL AFFECT THE DISTRIBUTION OF GENERAL ASSETS, MANY OF WHICH ARE BEYOND THE LIQUIDATOR'S CONTROL. AS A RESULT, THE ULTIMATE DISTRIBUTION AMOUNT MAY VARY MATERIALLY, EITHER UPWARD OR DOWNWARD, FROM THE LIQUIDATOR'S ESTIMATES.

Subject: April 2009 Update

Assignments: The suspension on approval of claim assignments has been lifted by the Liquidator.

Subject: October 2008 Update

Interim Distribution: On October 20, 2008, the Liquidation Court authorized the Liquidator to pay an interim general asset distribution to Policyholder (Class 3) claimants with approved and confirmed claims. The distribution percentage is 25% of the amount of approved and confirmed Policyholder claims. Claims which have not been resolved and claims covered by special deposits are not included and will be addressed at a later date. The Liquidator continues to estimate that the ultimate general asset distribution to Class 3 Policyholder claimants will be no less than 50% of the amounts claimed. The Liquidator therefore expects to make one or more additional distributions to Policyholder claimants as soon as circumstances permit.

To view a copy of the Liquidator’s Application and the Liquidation Court’s Order, please see Application No. 86 (Liquidator’s Application to Pay Interim Distribution) and Order on Application No. 86 under NOTICES.

Effective immediately, the Amwest Liquidator is suspending approval of claim assignments. The Liquidator will post notice on this website when the suspension has been lifted. This action is necessary in the interest of Amwest’s claimants, creditors and the general public.

Subject: November 2007 Update

Claim Confirmations: To be eligible for claim distributions, claimants must represent and warrant to the Liquidator and the Liquidation Court under penalties of perjury that they have not taken any action which has the legal effect of extinguishing Amwest’s liability for their claims, that they have not received any payment on their claims from third parties, or if they have received any partial payment or granted any partial release, they must disclose the dollar amount thereof. The Liquidator recently provided claim confirmations to all Policyholder (Class 3) claimants with claims greater than $1,000 and whose claims have either been approved by the Liquidation Court or which the Liquidator anticipates submitting for Court approval. No distributions will be made to claimants who do not complete, sign and return their claim confirmations, so they should do so as quickly as possible. Claimants having questions on the confirmation process or any other matter should contact Claimant Services. See this website at the tab “HOW TO REACH US” for contact information.

Claimant Address Changes: Some claim confirmations sent to the last known address of claimants have been returned undeliverable. Please keep Amwest informed of address changes. See this website at the tab “HOW TO REACH US” for contact information.

Dividend Estimate to Policyholder (Class 3) Claimants: As a result of continued progress in the liquidation, the Liquidator now estimates the general asset distribution to Policyholder (Class 3) claimants will be no less than 50%.

Subject: May 2007 Update

The Liquidator now estimates the general asset distribution to Policyholder (Class 3) Claimants will be approximately 40% - 50%.

The Liquidator's distribution estimates are based on the amount of general assets the Liquidator believes may ultimately be available for distribution to policyholder (Class 3) claimants. The estimates do not include assets (specific assets) which may be held for the benefit of some but not all claimants, such as bond collateral, principal recoveries and statutory deposits held in certain states. Dividend estimates have not yet been adjusted for specific assets. Some claimants have received and others will receive distributions in respect of specific assets, thereby reducing their claims against Amwest's general assets, but ultimately increasing the total amounts distributed to them in the liquidation. The effect of the specific assets could be substantial for some claimants. All distributions, whether specific or general, must be approved by the Liquidation Court.

There are also circumstances which may reduce or eliminate a claimant's distribution, even after a claim is approved, such as the claimant's recovery from or release of the bond principal. All claimants will be required to represent to the Liquidator that they have not received any such recoveries or made any such releases as a condition to receiving any distributions in the liquidation.

Some of the amounts on which general and specific distributions will be made will not be known until the end of the liquidation. Claimants are therefore advised that their claim amounts may be subject to modification.

NO INTERIM DISTRIBUTIONS ARE CONTEMPLATED AT THIS TIME. CLAIMANTS ARE CAUTIONED THAT THERE ARE A NUMBER OF FACTORS THAT WILL AFFECT THE DISTRIBUTION OF GENERAL ASSETS, MANY OF WHICH ARE BEYOND THE LIQUIDATOR'S CONTROL. AS A RESULT, THE ULTIMATE DISTRIBUTION AMOUNT MAY VARY MATERIALLY, EITHER UPWARD OR DOWNWARD, FROM THE LIQUIDATOR'S ESTIMATES.

CLAIMANTS ARE CAUTIONED THAT THERE ARE A NUMBER OF FACTORS THAT WILL AFFECT THE DISTRIBUTION OF GENERAL ASSETS, MANY OF WHICH ARE BEYOND THE LIQUIDATOR'S CONTROL. AS A RESULT, THE ULTIMATE DISTRIBUTION AMOUNT MAY VARY MATERIALLY, EITHER UPWARD OR DOWNWARD, FROM THE LIQUIDATOR'S ESTIMATES.

Subject: June 2005 Update

The Liquidator has received a number of requests for information on the progress of the liquidation of Amwest Surety Insurance Company (“Amwest”). Most of the questions involve the prospects for payment on claims and the time for the making of distributions on claims. The amount and timing of distributions is subject to several variables, some of which are outside of the Liquidator’s control. The Liquidator is diligently pursuing completion of those matters which are within his control.

The greatest number of claims are claims under policies, which have a statutory payment priority after administrative costs and certain employee claims. The Liquidator estimates, based on existing facts and circumstances, that there will be at least a twenty-five percent (25%) dividend paid on timely filed and approved policyholder claims. The Liquidator believes that no amounts will be available for payment on claims in statutory priorities which are subordinate to timely filed and approved policyholder claims.

The Liquidator will make claim distributions as soon as possible. It is impossible to predict with certainty when distributions will begin. Claimants should not expect final distributions until the latter part of 2006 at the earliest. The Liquidator intends to make at least one interim distribution.

Claim Priority: Claims are prioritized by the categories specified in the Nebraska Insurers Supervision, Rehabilitation and Liquidation Act (“Liquidation Act”) in effect on June 7, 2001, when Amwest was declared insolvent by the District Court of Lancaster County, Nebraska and was placed in liquidation. Claims in a higher class priority must be paid or reserved for in full before any claims in lower priority classifications can be paid. The largest number of claims are timely filed claims under policies (including bonds), which fall into Class 3, after Class 1 (claims of administration) and Class 2 (certain employee claims). Other claim priorities include claims of general creditors (Class 4), certain governmental claims (Class 5), late claims (Class 6), and certain claims of note holders and shareholders (Classes 7 and 8).

Claims Determinations: The Liquidation Court must approve all claims. The Liquidator makes a recommendation to the Liquidation Court as to the allowed amount of each undisputed claim. Disputed claims are determined by the Liquidation Court following a dispute resolution process involving a court-appointed referee. The Liquidation Court has thus far approved the Liquidator’s recommendation covering 2,268 undisputed Class 3 claims totaling more than $28 million. There are a number of substantial disputed claims that have not been resolved.

Asset Collection: The Liquidator is aggressively pursuing completion of lawsuits which have been instituted against third parties. The Liquidator believes he has a strong legal and factual basis for recovery in each case. As with any litigation, the ultimate result and timing of the completion of these cases is impossible to predict. While a successful conclusion to these cases would enhance the amounts available for claimants, the Liquidator cannot assure the claimants that he will prevail in any of these cases or reach satisfactory settlements.

Claim Assignments: The Liquidator has been contacted by third parties that purchase claims against insolvent companies. These firms purchase claims from claimants, sometimes at substantial discounts, based on their calculated expected ultimate distribution. These third parties have no connection with the Liquidator and they have no special knowledge or information from the Liquidator of the eventual outcome of Amwest’s liquidation. The Liquidator makes no recommendation that claimants do (or not do) business with these third parties.