Date: July 17, 2009

To: Frederick Mutual Agencies
All Departments

From: Caroline F. Zihmer, Director of Underwriting

Re: Moratorium – Homeowner, Dwelling Fire, Businessowner and Artisan

Please be aware that we have filed and received approval for a weather related moratorium for our Homeowner, Dwelling Fire, Businessowner and Artisan programs. We have implemented Rule 903 which states the following:

When the National Weather Service issues a tropical storm watch or warning, a hurricane watch or warning, or a tornado watch or warning, a temporary moratorium will be implemented for all areas affected by said watch or warning for all new business, requests for additional coverage, and binding of coverage. The moratorium will be lifted 24 hours after the termination of the last watch or warning issued by the National Weather Service.

In the event that that National Weather Services issues a tropical storm watch or warning, a hurricane watch or warning, or a tornado watch or warning we will post the areas where binding is suspended on our website, www.fredmut.com as well as send an email to your agency.

Should you have any questions, please do not hesitate to contact our office. As always, your business partnership is greatly appreciated.