American Family Customers in Storm-ravaged States Receive Additional Time to Pay Insurance Premiums

Madison, Wis. (June 25, 2008) — Recent tornadoes, windstorms, heavy rains and flooding have caused hardship for many American Family customers. American Family extends its concern for the safety and well-being of all who found themselves impacted by the severe weather. These events also have limited some customers’ access to mail delivery or otherwise affected their ability to remit their insurance premiums and conduct other time sensitive transactions.

State insurance regulators in several of American Family’s operating states have ordered insurance companies to refrain from canceling insurance policies for nonpayment due to flooding-related circumstances. In addition to complying with the regulator bulletins in those states, American Family is voluntarily extending this practice to six other states in which it operates.

American Family agents and employees are examining company records to identify customers who may be at risk of cancellation because of the widespread flooding and severe weather and are taking steps to help these customers maintain their insurance coverage.

Regulators in the following states have issued orders to insurance companies:

• Illinois has issued a directive to allow customers in the affected counties additional time to manage their insurance affairs. This state mandate applies to all customers affected by weather-related events. Customers with payments due from June 10 until Aug.18 have an additional 60 days to pay their bill. Additionally, all other time-sensitive transactions will be given a 60 day extension. American Family has voluntarily extended the business practice to the rest of the state. The Illinois Division of Insurance can be contacted to file a complaint for any disaster-related dispute or issue using the departments toll-free hotline at 1-866-445-5364 or online at http://www.idfpr.com/doi/Complaints/Complaints.asp. The following information was added on July 9, 2008: We will not cancel or non-renew affected property due to an increase in the risk originally accepted or the geographic location of the risk. If you feel an exception may be made to policy requirements or rating or underwriting rules because you are impacted by the storms, please contact us at 1-800-692-6326 (1-800-MY-AMFAM) to discuss your situation.
• Indiana has issued a 60-day policy cancellation moratorium for non-payment of premium in specified counties. The effective date for this cancellation moratorium is from May 30 to August 17. American Family has voluntarily extended the business practice to the rest of the state.
• Iowa has issued a directive to allow customers in the affected counties additional time to manage their insurance affairs. This state mandate applies to all customers affected by weather-related events in May and June. Customers have until Aug. 31 to make premium payments and to complete other time-sensitive transactions. American Family has voluntarily extended the business practice to the rest of the state.
• American Family is initiating a voluntary moratorium on cancellations or nonrenewals in the states of Kansas, Minnesota, Missouri, Nebraska, Ohio and Wisconsin. In those states, the moratorium took effect June 1 and is in place until further notice.

American Family’s local claims offices and catastrophe teams are responding to flood damage reported by customers in these nine states. While standard property and business insurance policies do not cover flood damage, American Family and many other insurance companies participate in the federal government’s National Flood Insurance Program (NFIP), which contracts with insurance companies to sell and service its policies.

American Family and other insurers also further the disaster relief process by issuing the claim denial letters required by the Federal Emergency Management Agency for federal relief funds.

The company expresses its support for the victims of the flooding and its appreciation for the tremendous outpouring of volunteers. American Family recently donated $30,000 to local American Red Cross chapters for disaster relief efforts in Wisconsin, Indiana, Iowa and Kansas.

QUESTIONS AND ANSWERS FOR AMERICAN FAMILY CUSTOMERS:

How do I report an auto or homeowners insurance claim? To report a claim, contact our 24-hour Claim Customer Care Center at 1-800-MY-AMFAM (692-6326) or your American Family Insurance agent.

How do I report a flood insurance claim? To report a claim under a flood insurance policy, contact your American Family Insurance agent.

How do I inquire about the status of disaster-related disruptions of my Medicare service? Check with your state department of insurance. In Illinois, the latest information on Medicare is available on the Division of Insurance’s Web site, www.idfpr.com, or by calling the division’s Senior Health Insurance Program, toll-free, at 1-(800) 548-9034.