AMERICAN KEYSTONE INSURANCE COMPANY

10/29/09 Update: Offer of Replacement Coverage for Selected American Keystone Residential Homeowners Policyholders In order to assist American Keystone policyholders, the Florida Department of Financial Services, as Receiver of American Keystone, arranged with Homeowners Choice Property and Casualty Insurance Company (“Homeowners Choice”) to provide an offer of replacement insurance coverage to selected American Keystone policyholders. The agreement with Homeowners Choice benefited the selected policyholders in that it offered a potentially smoother transition of the policies to another insurance company and also benefited the American Keystone creditors in that Homeowners Choice will pay the American Keystone estate set amounts under the agreement for policies retained by the insurer. Homeowners Choice offered this insurance coverage to American Keystone policyholders who had residential homeowners’ policies with Coverage A limits under $1 million. Homeowners Choice is an authorized insurer in Florida and has a Demotech, Inc., Financial Stability Rating of “A,” which meets the needs of most mortgage lenders. The Receiver and Homeowners Choice sent letters to all affected policyholders suggesting that they contact their agents to learn how they may take advantage of the Homeowners Choice offer. Homeowners Choice agreed to provide a limited representation agreement to all American Keystone agents in connection with their program to provide replacement insurance coverage. To view copies of the motion/order approving this agreement and to view the notices mailed to both agents and policyholders alerting them of the offer of coverage from Homeowners Choice, please click here. On February 14, 2013, the Receiver mailed Notices of Determination to 7,637 claimants. The amount recommended along with the class assignment are identified in the notice for all classes, 1 through 11. The Objection Filing Deadline is April 2, 2013. Objections were not accepted after that date. On November 5, 2013, the Receiver mailed 6,295 distribution checks, totaling $1,722,846.88, to claimants of the American Keystone estate. This amount, combined with the $9,100,000 in early access previously distributed to FIGA, represented payment of 100% of the Class 1-3 claims against the estate. The Receiver anticipates making another distribution to other classes of claimants in the future. On July 2, 2015, the Second Judicial Circuit Court in Leon County, Florida ("Court") entered an Order discharging the Receiver from any and all duties, obligations, and liabilities in the administration of the American Keystone estate as of 20:01 A.M. on June 30, 2015.