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<br />.~ <br />lravelers ~ <br />~ <br /> <br />IMPORTANT DISCLOSURE NOTICE OF TERRORISM INSURANCE <br />COVERAGE <br /> <br />On November 26, 2002, President Bush signed into law the <br />Terrorism Risk Insurance Act of 2002 (the "Act"). The Act <br />establishes a short-term program under which the Federal <br />Government will share in the payment of covered losses caused by <br />certain acts of international terrorism. We are providing you with <br />this notice to inform you of the key features of the Act, and to let <br />you know what effect, if any, the Act will have on your premium. <br /> <br />Under the Act, insurers are required to provide coverage for certain <br />losses caused by international acts of terrorism as defined in the <br />Act. The Act further provides that the Federal Government will pay <br />a share of such losses. Specifically, the Federal Government will <br />pay 90% of the amount of covered losses caused by certain acts of <br />terrorism which is in excess of Travelers' statutorily established <br />deductible for that year. The Act also caps the amount of terrorism- <br />related losses for which the Federal Government or an insurer can <br />be responsible at $100,000,000,000.00, provided that the insurer <br />has met its deductible. <br /> <br />Please note that passage of the Act does not result in any change <br />in coverage under the attached policy or bond (or the policy or bond <br />being quoted). Please also note that no separate additional <br />premium charge has been made for the terrorism coverage <br />required by the Act The premium charge that is allocable to such <br />coverage is inseparable from and imbedded in your overall <br />premium. and is no more than one percent of your premium. <br /> <br />-- r <br />