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--__ ~- <br />1~'15CC~jiCO <br />,~ uo x <br />,_~ ~;-- <br />DISCLOSURE RIDER <br />Terrorism Risk Insurance Act of 2002 <br />The Terrorism Risk Insurance Act of 2002 created athree-year program under which the <br />Federal Government will share in the payment of covered losses caused by certain events of <br />international terrorism. The Act requires that we notify you of certain components of the Act, and <br />the effect, if any, the Act will have on the premium charged for this bond. <br />Under this program, the Federal Government will cover 90% of the amount of covered <br />losses caused by certified acts of terrorism, as defined by the Act. The coverage is available only <br />when aggregate losses resulting from a certified act of terrorism exceed $5,000,000.00. Insurance <br />carriers must also meet a variable deductible established by the Act. The Act also establishes a <br />cap of $100 billion for which the Federal Government or an insurer can be responsible. <br />Participation in the program is mandatory for specified lines of property and casualty <br />insurance, including surety insurance. The Act does not, however, create coverage in excess of <br />the amount of the bond, nor does it provide coverage for any losses that are otherwise excluded <br />by the terms of the bond, or by operation of law. <br />No additional premium has been charged for the terrorism coverage required by the Act. <br />Developers Surety and Indemnity Company <br />Indemnity Company of California <br />17780 Fitch, Suite 200 <br />Irvine, CA 92614 <br />(949) 263 3300 <br />www.InscoDico.com <br />ID-7498 (Rev. 5103) <br />