Reserving guidelines and frequency of review of reserves - Reserves are established by adjusters andreviewed by management. A reserve calculation worksheet is used to document the file.

Diary system and frequency of review of files - The computer system contains a automated diary system used by adjusters. Adjusters set their own diaries, which are subject to periodic management review. Diaries may not be set longer than 30 days unless approved by management. Internal auditors review a sampling of each adjusters files quarterly although individual files may be reviewed more often if highlighted on one of our quality control reports or data integrity reports which are run monthly to ensure compliance with internal guidelines.