Majestic Insurance Company
On-Site Manager: Joe Holloway
Email Address: HollowayJ@caclo.org
Telephone Number: (415) 676-2126
Conservation Date: 04/21/2011
POC Final Filing Date: 01/31/2012
Closure Date: 11/20/2015
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Majestic: Frequently Asked Questions

On April 21, 2011 the California Insurance Commissioner was appointed Conservator of Majestic Insurance Company by order of the San Francisco County Superior Court ("the Court").

The California Insurance Commissioner as Conservator has applied to the Court for approval of a rehabilitation plan by which AmTrust North America will purchase Majestic's assets and obtain renewal rights to Majestic's policies, administer and reinsure all of its policies as part of the conservation proceeding. The implementation of the transaction will provide policyholders with coverage from an A rated insurance carrier to ensure that policy benefits are paid.

Q. Why did I receive this notice? [Identify the party]

A. You received this notice to inform you of the conservation and rehabilitation plan pertaining to Majestic Insurance Company.

You have been identified as being an interested party of Majestic Insurance Company and therefore received the mailing. It may be because you have an insurance policy with Majestic. Other possible parties: Reinsurer, Attorney for Majestic, Holder of LOC's.

Q. What is happening to my Majestic Insurance Company Policy?

A. The Insurance Commissioner as Conservator has asked the Court to approve a rehabilitation plan in which your insurance policy will be assumed by AmTrust North America, Inc. upon the closing of the transaction. If you have a policy with Majestic Insurance Company, you must continue to make your required premium payments to keep your policy benefits in force. If the Court approves the plan, AmTrust will become your insurer upon the closing of the transaction and court approvals. The anticipated closing of the transaction will be in June 2011.

Q. Who is AmTrust North America, Inc. ("AmTrust")?

A. AmTrust is an AM Best rated insurance company with a rating of A [Excellent]. The company offers a range of insurance products focusing on small to mid-sized businesses. from workers' compensation to commercial package insurance policies. For more information visit their website at: http://www.amtrustnorthamerica.com

Assuming court approval and completion of the transaction, AmTrust will assume all Majestic Insurance Company policies and pay all of Majestic's outstanding claims.

Q. Will my insurance claim payments continue to be paid?

A. Yes, it is important that you continue to make any required premium payments so your policy does not lapse.

Q. Why is this happening to Majestic Insurance Company?

A. Majestic Insurance Company was conserved by the California Insurance Commissioner on April 21, 2011 because the company was operating in a hazardous financial condition. The Commissioner was appointed the statutory conservator of Majestic Insurance Company to preserve and protect the assets of the Company for the benefit of policyholders, creditors and shareholders.

Q. Do I need to do anything with my policy?

A. You must continue to make your required premium payments to keep your policy benefits in force but you do not need to take any action to preserve your policy.

Q. Who do I call if I have additional questions?

A. Please continue to call Majestic Insurance Company at 800-216-7770 and also additional information can be obtained on the Majestic Insurance Company website at http://www.majesticinsurance.com and the Conservation & Liquidation Office at http://www.caclo.org

Q. I am not a policyholder. I am a creditor [vendor]. What does this plan mean for me?

A. Assuming that the transaction is court-approved, certain assets will remain with Majestic to be used in paying general creditors.

Q. I am a defense counsel/attorney for litigated claims of Majestic. What will happen to my invoices?

A. The Conservation will not cause a disruption or delivery in the payment of your invoices. Based on the Plan of Rehabilitation, the Conservator will continue to pay your invoices during the Conservation. Subsequently, AmTrust will assume all payments of your invoices. Please continue your work for the Company in the normal course of business.

We encourage you to periodically check either the CLO or Majestic web sites for updates.