CAR NAMES COMMERCIAL CARRIERS:

Commonwealth Auto Reinsurers has advanced its new commercial auto limited servicing carrier program by selecting the six carriers that will service this residual market business beginning next January. The six carriers are St. Paul Travelers, Hanover, Arbella, Commerce, Pilgrim and Safety.

All producers should be notified by July 1, 2005, of their servicing carrier assignments. CAR officials hope that the assignment distribution will equitably assign producers to servicing carriers in terms of volume, loss ratio and major classification type while minimizing market disruption. For voluntary agents who currently have multiple servicing carrier relationships, assignments will be made based on the largest volume of ceded premium where possible. Exclusive Representative Producers assigned to non-servicing carriers will be assigned to servicing carriers with the goal of improving equity. Voluntary agents representing only one servicing carrier and ERPs assigned to servicing carriers will be assigned to those carriers in most instances to minimize market disruption while maintaining equity.

Producers will not be able to request a particular carrier, although a producer may file an appeal of an assignment only for a legitimate business purpose.