We regret to inform you that, based upon relevant claims activity, Certain Underwriters at Lloyd's of London ("Underwriters") may not be offering renewal terms for the insurance currently issued by them to you. Alternatively, Underwriters may condition their insurance renewal upon a reduction of limits, elimination of coverages, increase in deductibles, or increase of more than 25 percent in the rate upon which the premium is based. In light of this, we intend to explore coverage options with other insurance carriers for your consideration.

Hopefully, we will be able to assist you in securing coverage at a competitive premium with the same retroactive date you enjoy under your current policy with Underwriters. However, a new insurance carrier may condition coverage upon retroactive date inception ("RDI"), which means your new insurer would only provide coverage for claims made during the policy period arising out of acts, errors or omissions which occurred on or after the inception date of your new policy. This would leave claims arising from prior acts uncovered.

In the event that only RDI coverage is available to you from other carriers, we would urge you to consider purchasing Extended Reporting Period ("ERP" or "Tail") coverage to the extent available from Underwriters pursuant to the following provisions contained in § IX of your current Lloyd's policy:

Extended Reporting Period Options

Automatic Extended Reporting Period

If Underwriters or the Assured shall cancel or elect not to renew this Policy , the Named Assured designated in Item 1 of the Declarations shall have the right following the effective date of such cancellation or non-renewal to a period of sixty (60) days (herein referred to as the "Automatic Extended Reporting Period ") in which to give written notice to Underwriters of Claims first made against the Assured during the Automatic Extended Reporting Period for any wrongful act occurring prior to the end of the policy period and otherwise covered by this Policy . The Automatic Extended Reporting Period shall not apply to Claims that are covered under any subsequent insurance You purchase or which is purchased for the Assured's benefit, or that would be covered by such subsequent insurance but for: (1) the exhaustion of the amount of insurance applicable to such Claims ; or (2) any applicable retention or deductible.

Optional Extended Reporting Period

In the event of cancellation or non-renewal of this Insurance by Underwriters or the Assured , the Named Assured designated in Item 1 of the Declarations shall have the right, upon payment in full and not proportionally or otherwise in part of one hundred percent (100%) of the Premium set forth in Item 5 of the Declarations to have issued an endorsement providing a 12 month Extended Reporting Period for Claims first made against any Assured and reported to the Underwriters during the Extended Reporting Period , subject to the conditions set forth in the definition of Extended Reporting Period herein.

Optional Retirement Extended Reporting Period

In the event of non-renewal of this Insurance because of retirement (where the Named Assured Permanently ceases to render Professional Services ) by the Named Assured designated in Item 1 of the Declarations , provided that the Named Assured is a sole practitioner, the Named Assured shall have the right to have issued an endorsement providing a 12 months Extended Reporting Period for Claims first made against any Assured and reported to the Underwriters during the Extended Reporting Period , subject to the conditions set forth in the definition of Extended Reporting Period herein.

The calculation of the additional Premium for the Extended Reporting Period endorsement shall be according to the following table:

For Assureds who have purchased insurance coverage under this program for a period of three consecutive years or less -- an additional premium of one hundred percent (100%) of the expiring annual policy premium.

For Assureds who have purchased insurance coverage under this program for a period of four consecutive years -- an additional premium of ninety percent (90%) of the expiring annual policy premium.

For Assureds who have purchased insurance coverage under this program for a period of five consecutive years -- an additional premium of eighty percent (80%) of the expiring annual policy premium.

For Assureds who have purchased insurance coverage under this program for a period of six consecutive years -- an additional premium of seventy percent (70%) of the expiring annual policy premium.

For Assureds who have purchased insurance coverage under this program for a period of seven consecutive years -- an additional premium of sixty percent (60%) of the expiring annual policy premium.

For Assureds who have purchased insurance coverage under this program for a period of eight or more consecutive years -- an additional premium of fifty percent (50%) of the expiring annual policy premium.

In order for the Named Assured to invoke the Extended Reporting option, the payment of the premium for the Extended Reporting Period must be paid to Underwriters within 30 days of the non-renewal or cancellation.

The Limit of Liability for the Extended Reporting Period shall be part of, and not in addition to, the Limits of Liability of the Underwriters for the Period of Insurance .

The quotation by Underwriters of a different premium or deductible or limits of liability or changes in policy language for the purpose of renewal shall not constitute a refusal to renew by the Underwriters .

The right to the Extended Reporting Period shall not be available to the Named Assured where cancellation or non-renewal by the Underwriters is due to non-payment of premium or failure of an Assured to pay such amounts in excess of the applicable Limit of Liability or within the amount of the applicable Deductible .

All notices and premium payments with respect to the Extended Reporting option shall be directed to Underwriters through the entity named in Item 9 of the Declarations .

At the commencement of the Extended Reporting Period the entire premium shall be deemed earned, and in the event the Named Assured terminates the Extended Reporting Period for any reason prior to its natural expiration, Underwriters will not be liable to return any premium paid for the Extended Reporting Period .

We will be in touch with you shortly regarding go forward insurance coverage options. In the meantime, please feel free to contact us with any questions or concerns you may have.