Oxendine Revokes Life Company's License, Fines Insurer $214,000

Insurance Commissioner John W. Oxendine announced recently that he has
revoked the certificate of authority of Trans World Assurance to operate in Georgia, and
has fined the company $214,000. In addition, the Commissioner has ordered the
company to refund monies collected from active duty members of the United States
Armed Forces related to products it has sold in Georgia since September 2007.

“Due to multiple violations of the state insurance code, I feel I have no option but
to revoke Trans World’s license to operate in the state,” Oxendine said. “What makes
these violations particularly egregious is that they targeted our men and women in
uniform.”

The Commissioner held a hearing May 5 and 6 of this year to investigate
allegations that the company sold a life insurance policy containing an illegal component
to military personnel between September 2007 and March 2008. The product, called
“Flexible Dollar Builder,” includes a provision known as an accumulation fund.

The Commissioner found that provisions of the accumulation fund violated Georgia’s
Military Sales Practices Regulation and the Unfair Trade Practices Act.

The company further violated regulations by selling life policies to service
members already covered under Service Members Group Life Insurance (SGLI) without
making the required assessment to determine whether the service member needed
additional life insurance.

Although the company may not sell new policies in Georgia, it must continue to
service existing contracts which were sold before September, 2007. The company must
also honor the contracts issued subsequent to September 1, 2007, until it has made the
refunds required by the order.

Oxendine: Insured Losses From Tuesday's Storms Estimated At $6 Million, Expectd To Rise

Insurance and Safety Fire Commissioner John W. Oxendine said insured losses from
Tuesday night’s storms in Cherokee and North Fulton Counties is estimated at $6 million, though that amount will probably rise as more damage reports come in.

“This morning (May 21, 2008) I documented damage in communities north of Atlanta that was quite extensive,” Oxendine said. “As we get more reports from insurance companies, I expect the loss amount will have to be adjusted upward.”

Oxendine reminds Georgians that they can call his Consumer Services Division at 404-
656-2070 or, outside the Metro area, 1-800-656-2298, if they have questions about a claim, or if they are experiencing difficulty reaching their insurance company. Phone lines are open from 8 a.m. to 7 p.m., Monday through Friday.

Consumers with damaged property can take the following steps to begin the claims-filing
process:

* Contact your insurance agent immediately if you have had damage to either your house
or car; do not delay. Your agent should provide you with claims forms and arrange for an
insurance adjuster to visit your property or look at your automobile.

* Secure your property. For example, if your roof was damaged or blown off, or a tree
has punctured the roof, cover the affected area with a tarp or plywood to protect your property
from further damage. Keep receipts of materials used for repairs; your insurance company will
reimburse you for repair costs.