CAUSE NO. D-1-GV-12-001713 THE STATE OF TEXAS IN THE DISTRICT COURT OF VS. TRAVIS COUNTY, TEXAS GRAMERCY INSURANCE COMPANY 53RD JUDICIAL DISTRICT

SECOND APPLICATION TO APPROVE EARLY ACCESS

PAYMENTS TO GUARANTY ASSOCIATIONS TO THE HONORABLE JUDGE OF SAID COURT:

Comes now Resolution Oversight Corporation, Special Deputy Receiver of Gramercy

Insurance Company (the SDR and Gramercy, respectively), and files this Second Application

to Approve Early Access Payments to Guaranty Associations (the Application), and in support

thereof would respectfully show the Court as follows:

I. INTRODUCTION

1.1 The SDR files this Application for authority to make early access payments to the

insurance guaranty associations affected by the Gramercy receivership. The SDR seeks authority

to make early access distributions equal to 100% of the amounts paid by these guaranty

associations for Class 1 claims and a 10% distribution of amounts paid for Class 2 claims

II. AUTHORITY

2.1 The SDR is authorized to file this Application pursuant to TEX. INS. CODE ANN.

443.303, which provides for early access payments to insurance guaranty associations with the

approval of this Court.

2.2 The subject matter of the Application was referred to the Special Master appointed

in this proceeding in accordance with Paragraph III(28) of the Supplemental Order of Reference

to Master entered on August 26, 2013.

9/6/2016 3:25:15 PM Velva L. Price District Clerk Travis County

D-1-GV-12-001713Jessica Arzola

Second Application to Approve Early Access Payments to Guaranty Associations Page 2

III. BACKGROUND

3.1 Gramercy was placed in receivership in this proceeding on December 4, 2012. The

Court entered an Agreed Order Appointing Rehabilitator and Permanent Injunction

(Rehabilitation Order) on December 4, 2012, appointing the Texas Commissioner of Insurance

as Rehabilitator (the Rehabilitator). The Rehabilitator designated Resolution Oversight

Corporation as interim SDR of Gramercy on December 7, 2012, and as SDR on February 15, 2013.

On August 26, 2013, the Court entered an Order Appointing Liquidator and Permanent Injunction

(the Liquidation Order), placing Gramercy in liquidation and appointing the Commissioner as

Liquidator of Gramercy.

3.2 Gramercy is a property and casualty insurance company domiciled in Texas. It sold

commercial auto, cargo, nonstandard auto and builders risk policies in numerous states. It also

sold contractual liability insurance policies. It was licensed to issue policies in thirty seven (37)

states. Following entry of the Liquidation Order, the Commissioner designated Gramercy an

impaired insurer under TEX. INS. CODE ANN. Chapter 462, effective August 26, 2013.

Twenty-nine ( 29) state insurance guaranty associations have reported claims in accordance with

their states governing statutes as follows: Alabama, Arkansas, Arizona, Colorado, Florida,

Georgia, Idaho, Illinois, Iowa, Indiana, Kansas, Kentucky, Louisiana, Minnesota, Mississippi,

Missouri, New Mexico, Nevada, North Carolina, Oklahoma, Oregon, Pennsylvania, South

Carolina, South Dakota, Tennessee, Texas, Virginia, Utah, and Washington (collectively, the

Affected Guaranty Associations). All Affected Guaranty Associations have timely filed Proofs

of Claims (POCs) in the Gramercy estate. Claims were also referred to Montana, Maryland and

Wisconsin upon liquidation, but they have not reported any claims.

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3.3 On September 15, 2015, this Court entered the Order Approving First Early Access

Payments to Guaranty Associations and Request to Destroy Nonessential Records (The First

Early Access Application).

IV. FINANCIAL ANALYSIS REQUIRED BY STATUTE

4.1 Pursuant to TEX. INS. CODE ANN. 443.303, the SDR shall apply to the Court

for approval to make early access payments to a guaranty association having obligations in

connection with the liquidation at any time that it determines that an estate has distributable assets.

Deposits or assets advanced to the guaranty associations are treated as advances against

distributions to be made under TEX. INS. CODE ANN. 443.302.

4.2 TEX. INS. CODE ANN. 443.303(f) directs that an application for early access

payments shall, based on the best information available to the SDR at the time, provide the

following information:

(1) to the extent necessary and appropriate, the amounts reserved for the entire expenses of the liquidation [Class 1] through and after its closure and reserved for distributions for other claims falling within [Classes 2 and 3];

(2) the computation of distributable assets and the amount and method

of equitable allocation of early access payments to each of the guaranty associations; and

(3) the most recent financial information filed with the National

Association of Insurance Commissioners.

4.3 TEX. INS. CODE ANN. 443.303(a) defines distributable assets as all general

assets of the liquidation estate less reserves for all Class 1 expenses through and after closure and

less reserves for distributions on Class 2 claims other than those of the guaranty associations.

4.4 TEX. INS. CODE ANN. 443.303(i) provides that the SDR may not offset the

amount to be paid to a guaranty association by the amount of any specific deposit or any other

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statutory deposit held in that state unless the association has actually received the deposit or has

consented to the offset.

4.5 TEX. INS. CODE ANN. 443.303(g) provides that any guaranty association that

receives an early access payment agrees, upon depositing the payment in any account to its benefit,

to return to the SDR any amount of these payments that may be required to pay claims of secured

creditors and other claims falling within Classes 1, 2 or 3.

V. RESERVES FOR EXPENSES OF LIQUIDATION AND RESERVES FOR CLAIMS IN CLASSES 2 AND 3

5.1 SDRs Expense Reserve. Based on past expenditures, remaining activities,

uncertainty of asset collections and uncertainty of final determinations of non-guaranty association

claims, the SDR estimates a fair reserve for its expenses of liquidation through and after closing

to be $ 1.3 million.

5.2 The Affected Guaranty Associations Class 1 and Class 2 Claims. All Affected

Guaranty Associations report their expense and loss payments and claims reserves electronically

through the Uniform Data Standards (UDS) procedures of the National Conference of Insurance

Guaranty Funds. All of the 29 Affected Guaranty Associations have provided claims information

for Gramercy. As of May 31, 2016, the Affected Guaranty Associations reported the following

amounts on incurred on behalf of Gramercy:

a) Paid Class 1 claims of $8,850,921 (administration expenses of $ 3,114,752 and LAE of $ 5,736,169) and LAE Reserves of $ 824,378; and

b) Paid Class 2 claims of $ 14,234,656 and claims reserves of $ 6,732,995. None of the Affected Guaranty Associations provided reserve information for Class 1

Administration Expenses. The SDR estimated administration expenses based upon an analysis of

total administration expenditures to date in relation to total covered claims paid to date to arrive at

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an estimate of $ 1.5 million as a reserve for future administration expenses of the Affected

Guaranty Associations. All reporting on behalf of the Affected Guaranty Associations is subject

to supplementation as additional expenses and claims payments are incurred and this Application

does not constitute a final determination of the POCs filed by the Affected Guaranty Associations.

5.3 Non Guaranty Association Class 2 Claims. The Claims filing deadline for

Gramercy expired on February 26, 2015. The SDR received 704 Proofs of Claims (POCs). The

SDR claims staff is still in the process of reviewing the POCs received from claimants other than

the Affected Guaranty Associations. Gramercy issued commercial auto policies with $1 million

dollar limits to trucking companies. The SDR has identified POCs with over the cap claims on

these trucking policies and other programs, but it has not completed its determination of all the

POCs. While it is still early in the review process, the SDR has estimated the reserves for the non-

guaranty association Class 2 claims as $ 8,750,000. The SDR will revise this estimate as these

claims are further developed.

5.4 Class 3 Claims. The SDR has classified one (1) POC as a Class 3 claim, but the

SDR has not determined the validity or the amount of the claim. Pursuant to TEX. INS. CODE

ANN. 443.253(k), the SDR will not further process this claim until it appears reasonable likely

that assets will be available for a distribution to Class 3.

VI. DISTRIBUTABLE ASSETS

6.1 Unrestricted Assets. As required by TEX. INS. CODE ANN. 443.303(f)(3), the

SDR has included the most recent financial information filed with the National Association of

Insurance Commissioners Global Receivership Information Database as Exhibit 1. Exhibit 1

shows the financial position of Gramercy as of December 31, 2015.

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The SDR has also included a recent balance sheet for the estate, as of June 30, 2016, as

Exhibit 2. As of June 30, 2016, the unrestricted cash of the estate was $ 9,796,619, and the estate

has credits for early access payments of $ 6,166,578. There are also restricted statutory deposits

that have a total book value of $ 1,032,715, but for the reasons set forth in Section VII, the SDR

believes it is proper to include only $ 257,600 of these restricted funds in this calculation at this

time. Thus, the SDR has available assets of $ 16,220,797.

6.2 Class 1 Claims. Based upon the SDRs estimated liquidation expenses of

$1,300,000 and the Affected Guaranty Associations incurred Class 1 claims of $ 8,850,921, Class

1 reserves for their LAE of $ 824,378 and reserves for their Class 1 administration expenses of

$1,500,000, the SDR has determined that Class 1 claims through and including liquidation total

$12,475,299.

6.3 Class 2 Claims of the Non-Guaranty Association Claims. To determine

distributable assets, the SDR must not only reserve Class 1 expenses, it must also take into

consideration reserves for distributions on non-guaranty association Class 2 claims. As mentioned,

the SDR is early in the POC determination process but it has estimated reserves for the non-

guaranty association Class 2 claims as $ 8,750,000.

6.4 Recommendation for Early Access Payments. Claims are still being reopened by

the Affected Guaranty Associations and claims are being settled or otherwise resolved, all of which

will impact reserves. The SDR still has significant work remaining to determine the non-guaranty

association Class 2 claims, many of which are tied to open claims with the Affected Guaranty

Associations. Taking into account the Class 1 estimated expenses, the reserves for the non-

guaranty association Class 2 claims, and considering the potential for future reserve adjustments

for the Affected Guaranty Associations administration, expense and claim reserves, the SDR

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recommends that the estate make early access payments equal to 100% of paid Class 1 claims and

10% of paid Class 2 claims.

VII. EQUITABLE ALLOCATION OF EARLY ACCESS PAYMENTS

7.1 As discussed in the First Early Access Application, there were several statutory

deposits that were transferred or were to be transferred to their respective state guaranty

associations. The Louisiana Insurance Guaranty Association (LIGA), the New Mexico

Insurance Guaranty Association (NMIGA), the Nevada Insurance Guaranty Association

(NVIGA), the North Carolina Insurance Guaranty Association (NCIGA), and the South

Carolina Property and Casualty Insurance Guaranty Association (SCPCIGA) have recovered

their states statutory deposits. Further, since the filing of the First Early Access Application, the

SDR recovered the deposits in Texas and Oregon and deposited them as general assets of the estate.

Currently, Gramercy has deposits in 4 states with par values as follows:

Florida $ 215,000 (book value $218,014.77) Georgia $ 35,000 Missouri $ 250,000 (book value $257,600) Virginia $ 520,000

As noted, TEX. INS. CODE ANN. 443.303(i) provides that the SDR may not offset the amount

to be paid to a guaranty association by the amount of any specific deposit or any other statutory

deposit held in that state unless the association has actually received the deposit or has consented

to the offset.

7.2 The SDR is working with the Missouri Department of Insurance and the Missouri

Insurance Guaranty Association (MO-IGA) to have MO-IGAs claims paid from the deposit

since the deposit exceeds all of its claims. Accordingly, MO-IGA consents to the offset of the

deposit against its early access payments.

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7.3 The SDR is also working with the Florida Department of Insurance and the Florida

Insurance Guaranty Association (FIGA) to transfer the Florida statutory deposit to FIGA.

Accordingly, FIGA consents to the offset of the deposit against its early access payments.

7.4 The deposit in Georgia has not been released or transferred and it is for far less than

the amounts owed to the Georgia Insurers Insolvency Pool. The SDR has received notice of Class

1 expenses owed to the Virginia Property and Casualty Insurance Guaranty Association

(VAPCIGA). The Virginia Department of Insurance requires that the estate pay VAPCIGAs

claims before it will release the deposit to the SDR. Therefore, the insurance guaranty associations

for Georgia and Virginia will receive their early access payments.

7.5 MO-IGA, NMIGA, NVIGA, NCIGA and SCPCIGA statutory deposits exceed

those associations incurred Class 1 claims and 10% of their paid Class 2 claims. Accordingly, no

distribution will be made to MO-IGA, NMIGA, NVIGA, NCIGA and SCPCIGA at this time.

LIGAs recovery of the statutory deposit exceeds LIGAs Class 1 claims but provides only partial

credit on its Class 2 claims so LIGA will receive a reduced payment for its Class 2 claims. FIGAs

credit for the statutory deposit provides only a partial credit on its Class 1 claims so FIGA will

receive a reduced payment for its Class 1 claims and will receive a 10% payment on its Class 2

claims.

VIII. PROPOSED DISTRIBUTION

8.1 The SDR proposes to distribute $ 4,692,887.65 from the receivership estate as

second early access payments to the Affected Guaranty Associations in the amounts set out on

Exhibit 3. The offsets discussed in Section VII and the prior early access payments are reflected

in Exhibit 3 as credits against the SDRs proposed payments to those Guaranty Associations. The

SDR agrees to make the distribution within thirty (30) business days after the date the Order is

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entered by the Receivership Court, unless an appeal or mandamus of the order is filed and/or an

order of stay is entered and has not expired. Once the SDR recovers and/or transfers the remaining

deposits and obtains better reserves for the non-guaranty association Class 2 claims, it will make

further recommendations for early access payments as warranted.

IX. NOTICE TO AFFECTED GUARANTY ASSOCIATIONS

9.1 The SDR has served this Application in accordance with TEX. INS. CODE ANN.

443.007 to all known parties in interest and all individuals and entities identified by the SDR in

the Certificate of Service, including the Affected Guaranty Associations, by email. Further, this

Application has been served in accordance with the provisions of TEX. INS. CODE ANN.

443.303 (e), which provides additional requirements:

Notwithstanding the provisions of Section 443.007, the liquidator shall provide these guaranty associations with at least 30 days actual notice of the filing of the application and with a complete copy of the application prior to any action by the receivership court. Any guaranty association that may have obligations arising in connection with the liquidation has: (1) the right to request additional information from the [SDR], who may not unreasonably deny such request; and (2) the right to object as provided by Section 443.007 to any part of each application or to any report filed by the [SDR] pursuant to this section.

The SDR provided the Affected Associations with a complete copy of the Application at least 30

days in advance of any action by the receivership court. The Application is set for submission

before the Special Master on October 17, 2016.

X. OFFER OF PROOF AND VERIFICATION

10.1 This Application is verified by the affidavit and certification pursuant to TEX. INS.

CODE ANN. 443.017(b) of Ernesto A. Garza, designated representative of Resolution Oversight

Corporation, solely in its capacity as SDR of Gramercy, which is attached hereto as Exhibit 4.

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PRAYER

WHEREFORE, PREMISES CONSIDERED, Resolution Oversight Corporation, solely in its

capacity as Special Deputy Receiver of Gramercy Insurance Company, respectfully prays that this

Court enter an order:

1. Granting the Application in all respects;

2. Authorizing the Special Deputy Receiver to distribute $ 4,692,887.65 from the

assets of the receivership estate to the Affected Guaranty Associations as early

access payments as set out in Exhibit 3;

3. Authorizing the SDR to make the early access payments within thirty (30) business

days after the date the Order is entered by the Receivership Court, unless an appeal

has been filed or an order staying the distribution has been entered and not yet

expired;

4. Ordering the Affected Guaranty Associations to return to the Special Deputy

Receiver any amount of the early access payment that may be required to pay

secured creditors and other claims as provided in TEX. INS. CODE ANN.

443.303(g);

5. Finding that the Order is not intended to constitute a final determination of the

Affected Guaranty Associations POCs;

6. Authorizing the Special Deputy Receiver to take any actions necessary to

implement the Order;

7. Finding that the Order constitutes a final judgment fully resolving all issues relating

to the Application, provided that this Court shall retain jurisdiction to issue further

orders pursuant to TEX. INS. CODE ANN. Chapter 443; and

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9. Granting the SDR such other and further relief to which it may be justly entitled.

Respectfully submitted,

THE STROUD FIRM, PLLC 16000 Pool Canyon Rd Austin, Texas 78734 Telephone: 512/293-8244 Email: rstroud@thestroudfirm.com

By: /s/ Rachel J. Stroud Rachel J. Stroud State Bar No. 19424700 Attorneys for the Special Deputy Receiver

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APPLICANT'S NOTICE OF SUBMISSION Pursuant to the terms of the Supplemental Order of Reference to Master entered by the District Court in this cause, the SDRs Second Application for Approval of Early Access Payments to Guaranty Associations is hereby set for written submission before the Special Master, Tom Collins, on Monday, October 17, 2016. The Special Master has established the following rules pursuant to Rule 171 of the Texas Rules of Civil Procedure: 1. Any objection must be filed with the Travis County District Clerk at least three (3) calendar

days before the submission date. 2. A copy of any objection shall be served by email by such date on: (a) The Special Master's Docket Clerk at specialmasterclerk@tdi.texas.gov; (b) The undersigned counsel. Rachel Stroud at rstroud@thestroudfirm.com; and

(c) All interested parties, including those listed on the Applicant's Certificate of Service.

3. The written objection must specifically list all reasons for objection with supporting

references to and discussion of statutory and case authorities. Reasons not stated in writing will not be considered orally.

4. If a matter is set for submission, an objecting party shall expeditiously coordinate with

Applicants counsel and the special masters docket clerk (specialmasterclerk@tdi.texas.gov) to obtain an oral hearing, unless the master determines that an oral hearing is not necessary. The objecting party shall serve a Notice of Oral Hearing on applicants counsel and all interested parties, including those listed on the Applicants Certificate of Service.

5. Failure to file timely a written objection before the Special Master constitutes a waiver of

the right to object to the Special Master's recommendation to the District Court. 6. Any Acknowledgment of Notice and Waiver to be filed by a Guaranty Association or other

interested party should be filed at least three (3) calendar days before the submission or hearing date.

/s/ Rachel J. Stroud Rachel J. Stroud

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CERTIFICATE OF SERVICE

I hereby certify that a true and correct copy of the foregoing document has been served on all interested parties in accordance with the Texas Rules of Civil Procedure and TEX. INS. CODE ANN. 443.007(d) this 6th day of September, 2016. Mr. Tom Collins, Special Master Texas Department of Insurance 333 Guadalupe, Tower III, 5th Fl., MC-305-1D Austin, Texas 78701 Email: specialmasterclerk@tdi.texas.gov Mr. Vicente Aguillon Ms. Kathy Gartner Ms. Margaret Jonon Texas Department of Insurance P.O. Box 149104 Austin, Texas 78714 Email: Vicente.Aguillon@tdi.texas.gov Email: Kathy.Gartner@tdi.texas.gov Email: Margaret.Jonon@tdi.texas.gov Ms. Cynthia Morales, Asst. Attorney General Attorney Generals Office P.O. Box 12548 Austin, Texas 78711-2548 Email: Cynthia.Morales@texasattorneygeneral.gov Ms. Sharon Williams Mr. Victor W. Zhao United States Department of Justice P.O. Box 875, Ben Franklin Station Washington, DC 20044-0875 Via Email: sharon.williams@usdoj.gov Via Email: victor.w.zhao@usdoj.gov Ms. Denise Azar, Chief Receiver Alabama Department of Insurance P.O. Box 303353 Montgomery, AL 36130-3353 Email: Denise.Azar@insurance.alabama.gov Mr. Steve Uhrynowycz, Deputy Receiver Arkansas Insurance Department Arkansas Property & Casualty Guaranty Fund 1023 West Capitol Avenue Little Rock, AR 72201 Email: Steve.Uhrynowycz@arkansas.gov Ms. Shelby Cuevas, Financial Affairs Division Arizona Department of Insurance 2910 N. 44th St. Suite 210 Phoenix, AZ 85018-7269 Email: scuevas@azinsurance.gov

Mr. Scott Lloyd Colorado Division of Insurance 1560 Broadway, Suite 850 Denver, CO 80202 Email: scott.lloyd@dora.state.co.us Mr. Dave Lonchar Ms. Rylynn Brown Mr. Charles Santana Delaware Insurance Department 841 Silver Lake Blvd Dover, DE 19904 Email: dave.lonchar@state.de.us Email: rylynn.brown@state.de.us Email: charles.santana@state.de.us Ms. ShaRon James, Director Mr. Bob Elias Division of Rehabilitation & Liquidation Florida Department of Financial Services 2020 Capital Circle SE, Alexander Bldg Ste 340 Tallahassee, FL 32301-0110 Email: ShaRon.James@myfloridacfo.com Email: Bob.Elias@myfloridacfo.com Mr. Mark Ossi, Deputy Division Director Georgia Insurance Department 2 Martin Luther King, Jr. Dr., Ste 610 Atlanta, GA 30334 Via Email: mossi@oci.ga.gov Mr. Jim Armstrong Iowa Insurance Division 330 Maple St. Des Moines, IA 50319-0065 Email: Jim.Armstrong@iid.iowa.gov Ms. Georgia Siehl, Bureau Chief/Chief Examiner Idaho Department of Insurance P.O. Box 83720 Boise, ID 83720-0043 Email: georgia.siehl@doi.idaho.gov Mr. Paul A. Miller, Office of the SDR Illinois Department of Insurance 222 Merchandise Mart Plaza, Ste 960 Chicago, Illinois 60654 Email: pmiller@osdchi.com

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Ms. Elizabeth Lovette Indiana Department of Insurance 311 West Washington St. Indianapolis, IN 46204-2787 Email: Liz@in-solv.com Mr. Ken Abitz, Dir-Financial Surveillance Div Kansas Department of Insurance 420 SW 9th Street Topeka, Kansas 66612-1678 Via Email: kabitz@ksinsurance.org Ms. Sharron Burton, General Counsel Kentucky Office of Insurance 215 W. Main St. Frankfort, Kentucky 40601 Email: Sharron.Burton@ky.gov Mr. Allan Pursnell, Deputy Commissioner Mr. Barry Karns, Receiver Louisiana Department of Insurance P.O. Box 94214 Baton Rouge, LA 70802 Email: apursnell@ldi.state.la.us Email: barryk@ldi.state.la.us Lynn Beckner, Chief Financial Analyst Maryland Insurance Administration 200 St. Paul Place, Suite 2700 Baltimore, MD 21202 Email: lynn.beckner@maryland.gov Ms. Sue Porter Minnesota Department of Commerce 85 7th Place East, Suite 500 St. Paul, MN 55101 Email: sue.porter@state.mn.us Ms. Diane Garber Missouri Department of Insurance PO Box 690 Jefferson City, MO 65102-0690 Email: receivership@insurance mo.gov Ms. Donna Whitley Mississippi Department of Insurance 501 North West St Jackson, MS 39201 Email: donna.whitley@mid.state ms.us Mr. Steve Matthews, Insurance Division Montana State Auditor's Office 840 Helena Ave. Helena, MT 59601 Email: smatthews@mt.gov

Mr. Raymond Martinez, Sr. Deputy Commissioner Mr. Rick Kilpatrick, Sr. Regulatory Specialist North Carolina Department of Insurance 401 Glenwood Avenue Raleigh, NC 27603 Via Email: ray martinez@ncdoi.gov Via Email: rick kilpatrick@ncdoi.gov Mr. Edward Moody North Dakota Insurance Department 1701 South 12th Street Bismarck, ND 58504 Email: emoody@nd.gov Ms. Peggy Jasa Nebraska Department of Insurance 941 "O" Street, Suite 400 Lincoln, NE 68508-3639 Email: peg.jasa@nebraska.gov Mr. Mickey VanCuren, Deputy Superintendent New Mexico Insurance Division P.O. Box 1269 Santa Fe, NM 87504-1269 Email: mickey.vancuren@state.nm.us Ms. Peggy Willard-Ross, Chief Ins Examiner Nevada Division of Insurance 1818 E. College Pkwy., Suite 103 Carson City, Nevada 89706 Email: pwillard@doi nv.gov Mr. Kelley Callahan, Asst. General Counsel Oklahoma Department of Insurance 2401 N.W. 23rd, Suite 28 Oklahoma City, OK 73152-3408 Via Email: kelley.callahan@oid.ok.gov Mr. Ryan Keeling, Manager/Chief Examiner Oregon Division of Insurance PO Box 14480 Salem, OR 97309-0405 Via Email: ryan.w keeling@oregon.gov Kyle Martin Sr. AAG Oregon Dept. of Justice Business Activities 1162 Court Street NE Salem, OR 97301-4096 Email:kyle.j.martin@doj.state.or.us Ms. Crystal McDonald, Liquidations Project Dir. Pennsylvania Department of Insurance 901 North 7th Street Harrisburg, PA 17102 Email: c-cmcdonal@pa.gov

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Mr. Lee Hill, Chief Financial Analyst South Carolina Department of Insurance 1201 Main Street, Suite 1000 Columbia, SC 29201 Via Email: lhill@doi.sc.gov Ms. Johanna Nickelson South Dakota Division of Insurance 445 East Capitol Avenue Pierre, SD 57501 Email: Johanna.Nickelson@state.sd.us Mr. Bob Ribe, Insurance Division Tennessee Dept. of Commerce & Insurance 500 James Robertson Pkwy., 4th Fl. Nashville, TN 37243 Email: Bob.Ribe@tn.gov Mr. Todd Kiser, Deputy Commissioner Utah Insurance Department 3110 State Office Building Salt Lake City, UT 84114-6901 Email: toddkiser@utah.gov Mr. Greg Yeatts Virginia Bureau of Insurance P.O. Box 1157 Richmond, Virginia 23218 Email: Gregory.Yeatts@scc.virginia.gov Mr. James T. Odiorne, Deputy Commissioner Washington Office-Ins Commissioner 5000 Capitol Boulevard Tumwater, WA 98501 Email: jimo@oic.wa.gov Ms. Mary Sue Gilardi Wisconsin Office-Ins Commissioner P.O. Box 7873 Madison, WI 53707-7873 Email: marysue.gilardi@wisconsin.gov Ms. Leah Cooper West Virginia Insurance Commission P.O. Box 50540 Charleston, WV 25305-0540 Email: leah.j.cooper@wv.gov Jeff Rude, Deputy Ins Commissioner Wyoming Insurance Department East 122 West 25th Street, 3rd Fl. Cheyenne, WY 82002 Email: Jeff.Rude@wyo.gov

Ms. Barbara Cox The Nat'l Conference of Insurance Guaranty Funds 300 North Meridian St., Suite 1020 Indianapolis, IN 46204 Via Email: bcox@ncigf.org Mr. Paul M. Gulko Guaranty Fund Management Services One Bowdoin Square Boston, MA 02114-2916 Email: pgulko@gfms.org Mr. Chad Anderson Western Guaranty Fund Services 1720 South Bellaire Street, Suite 408 Denver, CO 80222 Via Email: canderson@wgfs.org Ms. Andrea Lentine, Executive Director Alabama Insurance Guaranty Association 2020 Canyon Road, Suite 200 Birmingham, AL 35216 Email: aiga01@bellsouth net Mr. Michael E. Surguine, Executive Director Arizona Insurance Guaranty Funds 1110 West Washington, Suite 270 Phoenix, AZ 85007 Email: msurguine@azinsurance.gov Mr. Barry Miller, Executive Director Delaware Insurance Guaranty Association 220 Continental Drive, Suite 309 Newark, DE 19713 Email: bmiller@deiga.com Ms. Sandra J. Robinson American Guaranty Fund Group Florida WC Insurance Guaranty Association Florida Insurance Guaranty Association P.O. Box 15159 Tallahasee, FL 32317-5159 Email: srobinson@agfgroup.org Mr. Michael C. Marchman, Executive Director Georgia Insurers Insolvency Pool 2177 Flintstone Drive, Suite R Tucker, GA 30084 Email: mmarchman@gaiga.org Mr. Tim Schotke, Executive Director Illinois Insurance Guaranty Fund 120 South LaSalle Street, Suite 1910 Chicago, IL 60603 Email: tschotke@iigf.org

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Ms. Janis B. Funk, Executive Director Indiana Insurance Guaranty Association 251 East Ohio Street, Suite 1070 Indianapolis, IN 46204-2143 Email: jfunk@quadassoc.org Mr. Steven Augspurger, General Counsel Iowa Insurance Guaranty Association 801 Grand Avenue, Suite 3700 Des Moines, IA 50309-8004 Email: augspurger.steven@bradshawlaw.com Mr. A. Scott Webster, Executive Director Kentucky Insurance Guaranty Association 10605 Shelbyville Road, Suite 101 Louisville, KY 40223 Email: scott.webster@kyinsuranceguaranty.com Mr. John Wells, Director of Operations & Logistics Louisiana Insurance Guaranty Association 2142 Quail Run Drive Baton Rouge, LA 70808-4126 Email: jwells@laiga.org Mr. John Spielberger, President MD Property & Casualty Ins. Guaranty Corp. 305 Washington Avenue, Suite 600 Towson, MD 21204-4715 Email: jspiel@pcigc.com Mr. Paul Steffen, Executive Director Minnesota Insurance Guaranty Association 7600 Parklawn Avenue, Suite 460 Edina, MN 55435 Via Email: paul@mniga.com Mr. Arthur Russell, Executive Director Ms. Rhonda Powell Mississippi Insurance Guaranty Assn. 713 South Pear Orchard Road, Suite 401 Ridgeland, MS 39157-5004 Via Email: arussell@msiga net Via Email: rpowell@msiga net Mr. Charles F. Renn, Executive Director Missouri Property & Casualty Ins Guaranty Assoc Missouri Life & Health Insurance Guaranty Assoc 994 Diamond Ridge, Suite 102 Jefferson City, MO 65109 Email: crenn@mo-iga.org Mr. L. Dean Fletcher, Administrator Nebraska Property & Liability Ins Guaranty Assoc P.O. Box 57006, Station C Lincoln, NE 68505 Email: ldf3436p@aol.com

Mr. Bruce W. Gilbert, Executive Director Nevada Insurance Guaranty Association 3821 West Charleston Boulevard, Suite 100 Las Vegas, NV 89102-1859 Email: bgilbert@niga-pc.org Ms. Becky Tafoya, Executive Director Ms. Vanessa Ramirez New Mexico Insurance Guaranty Association Integrion Group P.O. Box 27815 Albuquerque, NM 87125 Email: beckyt@integriongroup.com Email: vanessar@integriongroup.com Mr. Raymond F. Evans, Managing Secretary Mr. Mike Newton North Carolina Insurance Guaranty Association P.O. Box 176010 Raleigh, NC 27619-6010 Email: rfe@ncrb.org Email: rmn@ncrb.org Mr. Jeffry J. Cahill, Managing Secretary North Dakota Insurance Guaranty Association P.O. Box 2634 Bismarck, ND 58502-2634 Email: jsc46@bis.midco net Ms, Amanda Barbera, General Manager OK Property & Casualty Ins. Guaranty Assoc. 2601 Northwest Expressway, Suite 330E Oklahoma City, OK 73112 Email: abarbera@opciga.org Mr. David C. Johnson, Administrator Oregon Insurance Guaranty Association 10700 Southwest Beaverton Hwy, Suite 426 Beaverton, OR 97005 Email: djohnson.oiga@frontier.com Mr. Stephen Perrone, Executive Director PA Property & Casualty Ins Guaranty Assoc 1617 John F. Kennedy Blvd., Suite 1850 Philadelphia, PA 19103 Email: sperrone@ppciga.org Ms. Laura S. Keller, Claims Manager Pennsylvania WC Security Fund Pennsylvania Ins Dept Bureau of Special Funds 901 North 7th Street Harrisburg, PA 17102 Email: lakeller@state.pa.us

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Mr. J. Smith Harrison, Exec. Director/Secretary SC Property & Casualty Ins Guaranty Assoc P.O. Box 407 Columbia, SC 29202 Email: smitty@scwind.com Mr. Edwin F. Evans SD Property & Casualty Ins Guaranty Assoc Davenport, Evans, Hurwitz & Smith P.O. Box 1030 Sioux Falls, SD 57101-1030 Email: eevans@dehs.com Mr. David Broemel, Executive Secretary Ms. Jane Murphy Tennessee Insurance Guaranty Association 3100 West End Avenue, Suite 670 Nashville, TN 37203 Email: dbroemel@bakerdonelson.com Email: jmurphy@tiga.net Email: iniemann@tiga net Ms. Linda Meltzer Mr. Jessie Bowie Ms. Sara Lang Texas Property & Casualty Ins Guaranty Assoc 9120 Burnet Road Austin, TX 78758 Email: lmeltzer@tpciga.org Email:jbowie@tpciga.org Email:slang@tpciga.org Mr. Allen Muhlestein, Executive Director Utah Property & Casualty Ins. Guaranty Assoc. P.O. Box 1626 Sandy, UT 84091-1626 Email: allenm@utgf.org Mr. Allan Patek, Executive Director Wisconsin Insurance Security Fund 2820 Walton Commons West, Suite 135 Madison, WI 53718-6797 Email: allan@wisf-madison.org Ms. Wendy Pellow, Assistant General Counsel Texas Department of Licensing and Regulation 920 Colorado Austin, Texas 78701 Email: wendy.pellow@tdlr.texas.gov Mr. Thomas Dahl Topdanmark Livsforsikring A/S Borupvang 4 2750 Ballerup Denmark Email: tdv@topdanmark.dk

Mr. Rehmat Peerbhai Atlantis Underwriters 1250 S. Capital of Texas Hwy., Bldg 1, Suite 550 Austin, Texas 78746 Email: ray@amcousa.com Stonebriar Financial Services Partners, LLC c/o C T Brandt 3650 Schooner Ridge Alpharetta, GA 30005 Email: tdnarbmot@gmail.com Mr. Patrick Burke Trafalgar Group P.O. Box 346 Cave Spring, GA 30124 Email: pburke@trafgroup.com Mr. Clive Seymour (Atty Peak Acceptance) Hall Estill 320 S. Boston Ave., Suite 200 Tulsa, OK 74103 Email: Cseymour@HallEstill.com Ms. Leila Persaud Insurance Services Office 545 Washington, Blvd., 12th Floor Jersey City, NJ 07310-1686 Email: LPersaud@iso.com Ms. Darleen Nicole Sheppard 4224 Canal Street New Orleans, LA 70119 504-234-4880 Email: sheppardlaw@yahoo.com Mr. Julius Gernes (Atty for Acuity) Donna Law Firm, P.C. 7601 France Ave S, Ste 350 Minneapolis, MN 55435 Email: jgernes@donnalaw.com Mr. Scott M. Newmark (Atty for Helen Wilcox) Carner, Newmark & Cohen, LLP 600 S. Andrews Ave., Suite 301 Ft. Lauderdale, FL 33301 Email: smn@carnerlaw.com Mr. Aaron G. Koury Carpenter & Schumacher, P.C. Parkway Centre IV 2701 N. Dallas Parkway, Ste. 570 Plano, Texas 75093 Email: akoury@subrogatelaw.com

Page 6

Ms. Julie Pomerantz Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C. 106 East Sixth Street, Suite 300 Austin, Texas 78701 Email: jpomerantz@mwlaw.com Mr. Jeffrey S. Hammer Alvarez Sambol Winthrop 100 S. Orange Ave. Orlando, FL 32801 Email: jhammer@aswpa.com Mr. Mitchell L. Ginsburg Wayne Wright LLP 1524 S. Interstate 35, Suite 100 Austin, Texas 78704 Email: mginsburg@waynewright.com Mr. Jeff Scriber 324 South Main Street Jonesboro, AK 72401 Email: scriberfirm@gmail.com Mr. Frank Medina Law Offices of Francisco G. Medina 1111 North Loop West, Suite 820 Houston, TX 77008 Email: fgm@medinalaw.net Ms. Glenda M. August Glenda M. August & Associates 129 West Pershing Street New Iberia, LA 70560 Email: gaalaw@aol.com Mr. R. Sean McEvoy Casey Gilson P.C. Six Concourse Parkway, Suite 2200 Atlanta, GA 30328 Email: Rsm@caseygilson.com Mr. Jason Powers Law Office of Levin & Clinebell, employees of Government Employees Insurance Company 50 Briar Hollow Ln., Suite 505W Houston, TX 77027 Email: CHeads@geico.com Mr. Robert McCracken Roush McCracken Guerrero, LLP 1190 East Missouri Avenue, Suite 190 Phoenix, AZ 85014 Email: bob@rmglaw.com

Mr. Mark D. Bradshaw The Bradshaw Hogle Firm 1013 South Stapley Dr. Mesa, AZ 85204 Email: mark@bradshawhogle.com David Crawford David Crawford, P.A. One North Marshall Street Winston-Salem, NC 27101 Email: drcrawfordpa@aol.com Maribel Ingram Monique Raicovich ETI Financial Corp P.O. Box 829522 Pembroke Pines, FL 33082-9522 Email: Maribel@etifinance.com Email: Monique@etifinance.com Ms. Pam Mims Assistant General Counsel AmWINS Group, Inc. 4725 Piedmont Row Dr., Suite 600 Charlotte, NC 28210 Email: Pamela.Mims@amwins.com Email: Diane.Gibides@amwins.com Mr. Ian M. Leifer Mid-Century Ins Co P.O. Box 268994 Oklahoma City, OK 73126-8994 Email: ian.leifer@hpcs.com Mr. Robert Duke The Surety & Fidelity Association of America 1101 Connecticut Ave., NW Suite 800 Washington, D.C. 20036 Email: RDuke@surety.org Mr. Anthony Icenogle Icenogle & Sullivan PLLC 6805 Capital of Texas Hwy., North Suite 220 Austin, Texas 78731 Email: Aicenogle@icesully.com Mr. Chester Powell The Hartford P&C Claim Central Recovery Operation P.O. Box 14272 Lexington, KY 40512-4272 Email: chester.powell@thehartford.com

Page 7

Ms. Michele Barnes Motors Insurance Corp. P.O. Box 105706 Atlanta, GA 30348 Email: Michele.Barnes@ally.com Ms. Dawn Grasso Lazer Spot 6525 Shiloh Road, Suite 900 Alpharetta, GA 30005 Email: dgrasso@lazerspot.com Ronald W. Parnell The Law Office of Ronald W. Parnell, PC P.O. Box 81085 Conyers, GA 30013 Email: rwp@rwpsubro.com Edward Michel David Tippett Legal Department, Section 47 State of LA Dept of Transportation and Development P.O. Box 94245 Baton Rouge, LA 70804-9984 Email: Ed.Michael@LA.GOV Email: David. Tippett@LA.GOV Sharon A. Lavalle Georgia Farm Bureau P.O. Box 7777 Macon, GA 31209-7777 Email: salavelle@gfb.org Ms. Lisa Chastain Law Office of Driskell & Wright 105 Decker Drive, Suite 150 Irving, TX 75062-2211 Email: CHASTAL1@nationwide.com Ms. Kathryn K. Roberts Mary A. Miller & Associates, LLC 3300 Holcomb Bridge Rd., Suite 100 P.O. Box 1588 Norcross, GA 30091-1588 Email: KRoberts@gasubro.com Andrew C. Wright Buck Keenan, LLP 700 Louisiana, Suite 5100 Houston, TX 77002 Email: wright@buckkeenan.com J.D. Smith Ward Smith, PLLC 1000 Second Avenue, Suite 4050 Seattle, WA 98104-1023 Email: JD@WardSmithLaw.com

Damon A. Vespi The Vespi Law Firm 547 Union Blvd. Totowa, NJ 07512 Email: dvespi@vespilegal.com Jennifer Meinerz Northland Insurance Company One Tower Square, MS05A Hartford, CT 06183 Email: jmeinerz@Northlandins.com Ms. Linda Maxwell AmTrust North America P.O. Box 650767 Dallas, TX 75265-0767 Email: Linda.Maxwell@amtrustgroup.com Mr. Thomas Stewart Great West Casualty Company Attn: Claim G00034 2030 Falling Water Road, Ste 300 Knoxville, TN 37922 Email: t.stewart@gwccnet.com Mr. John L. Thompson (Atty for Companion) Munsch Hardt Kopf & Harr, P.C. 3800 Lincoln Plaza 500 N. Akard Street Dallas, Texas 75201-6659 Email: jthompson@munsch.com Ms. Monica Bickar Sedgwick Claims Management Services, Inc. 5700 Lomardo Center Rock Run North, Seven Hills, OH 44131 Email: Monica.Bickar@sedgwickcms.com Ms. Marie Harper National Subrogation Services, LLC 100 Crossways Park West, Suite 415 Woodbury, NY 11797 Email: mharper@NationalSubrogation.com Ms. Linda Kuusela South Atlantic Insurance Accounting Dept. 7551 Wiles Rd., Suite 201 Coral Springs, FL 33067 Email: linda@satlanticins.com Ms. Kerrie Mowdy RIS Insurance Services 5922 NE Win Sivers Dr., Suite 105 Portland, OR 97220 Email: kerriem@risnet.com

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Ms. Rox-Anne Mulrenin Ms. Jacqueline Frost Ms. Jennifer Pantelakos CCS Commercial, LLC P.O. Box 7249 Portsmouth, NH 03802-7249 Email: Rmulrenin@ccsusa.com Email: JFrost@ccsusa.com Email: JPantelakos@ccsusa.com Ms. Elizabeth Weller Linberger Goggan Blair & Sampson, LLP 2323 Bryan Street, Suite 1600 Dallas, Texas 75201 Email: Dallas.bankruptcy@lgbs.com Ms. Mary McFaden Legal Dept Premium Assignment Corporation (A Sun Trust Company) P.O. Box 8800 Tallahassee, FL 32314-8800 Email: mary mcfaden@suntrust.com Mr. Bruce P. Mayer Law Offices of Bruce Phillip Mayer 709 Knox Street Houston, TX 77007 Email: brucemayer@sbcglobal net Mr. Ray Bauso Pennsylvania Property & Casualty Guaranty Assoc 1617 John F. Kennedy Blvd., Suite 1850 Philadelphia, PA 19103 Email: Rbauso@ppciga.org Mr. Rob Oliver Sharpe & Oliver, L.L.P. 550 Westcott Street, Suite 230 Houston, TX 77007-5096 Email: macknife@macknife net Mr. Stephen Garner Mr. Matthew Chaney The Garner Law Firm 7660 Woodway Drive, Suite 390 Houston, TX 77063 Email: stephen.garner@texassubro.com Email: matthew.chaney@texassubro.com Mr. Hector De Leon (Attorney for Party in interest Kemper Cost Management, Inc.) De Leon & Washburn, P.C. 901 S. MoPac Expressway Barton Oaks Plaza V, Suite 230 Austin, TX 78746 Email: hdeleon@dwlawtx.com

Mr. Brent Cole Pilot Flying J General Liability Claims Adjuster Risk Mgmt 5508 Lonas Road Knoxville, TN 37909 Email: Brent.Cole@pilottravelcenters.com Mr. Dan Wilson 9307 Broadway, Suite 328 Pearland, TX 77584 Email: dan@hw-lawfirm.com Mr. Jeff Reddall Comerica Bank Building One Sugar Creek Center Blvd., Suite 925 Sugar Land, Texas 77478 Email: jeff@reddall-law.com Ms. Kaitlyn Graham Subrogation Division, Inc. 136 South Main Street Spanish Fork, Utah 84660 Email: Kaitlyn.Graham@subrodiv.com Mr. Keith Miller Miller Norman Law Office, Ltd. 403 Center Avenue Moorhead, MN 56560 Email: klmiller@mnalaw.com Mr. W. Shane Osborn Javitch, Block & Rathbone, LLC 275 W. Campbell Road, Suite 450, Richardson, Texas 75080 Email: WOsborn@JBandR.com Mr. Vincent Carter Travelers Insurance Company P.O. Box 2954 Milwaukee, WI 53201-2954 Email: vcarter2@travelers.com Mr. Dick Crnkovich Imperial PFS P.O. Box 220 Puyallup, WA 98371 Email: dick.crnkovich@ipfs.com /s/ Rachel Stroud Rachel Stroud Email: rstroud@thestroudfirm.com

EXHIBIT 1

EXHIBIT 1

EXHIBIT 2

EXHIBIT 2

Less Previous Total ProposedClass 1 Early Class 1 and

Class 1 Paid Access Payment Proposed Class 1 Class 2 Paid Class 2 Less Class 2 Proposed Class 2 Partial Class 2(LAE & Admin) or Statutory Deposit Early Access (Losses & UEP) Early Access Statutory Deposit Early Access Early Access

IGA at 100% Offset Payment Payment of 10% Offset Payment PaymentAL $190,726.97 ($100,030.26) $90,696.71 $174,176.00 $17,417.60 $17,417.60 $108,114.31AR 5,847.02 (2,272.82) 3,574.20 7,500.00 750.00 750.00 4,324.20AZ 46,248.26 (6,270.65) 39,977.61 0.00 0.00 0.00 39,977.61CO 2,715.00 (2,419.00) 296.00 500.00 50.00 50.00 346.00FL 1,735,934.72 (1,330,554.36) 405,380.36 5,587,051.34 558,705.13 558,705.13 964,085.49GA 1,114,452.65 (454,438.78) 660,013.87 928,850.46 92,885.05 92,885.05 752,898.92IA 74,720.12 (35,005.15) 39,714.97 11,024.93 1,102.49 1,102.49 40,817.46ID 1,679.00 (1,679.00) 0.00 15,762.89 1,576.29 1,576.29 1,576.29IL 523,466.19 (324,183.14) 199,283.05 1,144,071.93 114,407.19 114,407.19 313,690.24IN 191,276.31 (102,699.74) 88,576.57 112,000.22 11,200.02 11,200.02 99,776.59KS 78,132.65 (40,224.00) 37,908.65 205,065.27 20,506.53 20,506.53 58,415.18KY 11,778.96 (9,367.29) 2,411.67 9,000.00 900.00 900.00 3,311.67LA 88,809.93 (88,809.93) 0.00 943,388.75 94,338.88 ($24,204.31) 70,134.57 70,134.57MD 0.00 0.00 0.00 0.00 0.00 0.00 0.00MN 23,569.90 (22,279.52) 1,290.38 390,000.00 39,000.00 39,000.00 40,290.38MO 82,493.83 (82,493.83) 0.00 117,328.09 11,732.81 (11,732.81) 0.00 0.00MS 383,636.27 (176,745.41) 206,890.86 382,890.00 38,289.00 38,289.00 245,179.86MT 0.00 0.00 0.00 0.00 0.00 0.00 0.00NC 27,799.54 (27,799.54) 0.00 2,854.25 285.43 (317,177.72) 0.00 0.00NM 7,136.50 (7,136.50) 0.00 100,000.00 10,000.00 (103,672.11) 0.00 0.00NV 28,784.93 (28,784.93) 0.00 329,269.36 32,926.94 (196,215.07) 0.00 0.00OK 18,625.70 (6,024.09) 12,601.61 37.58 3.76 3.76 12,605.37OR 76,366.02 (57,555.83) 18,810.19 119,741.97 11,974.20 11,974.20 30,784.39PA 88,457.22 (29,057.86) 59,399.36 125,500.00 12,550.00 12,550.00 71,949.36SC 133,916.84 (133,916.84) 0.00 476,150.00 47,615.00 (371,083.16) 0.00 0.00SD 3,839.50 (2,653.00) 1,186.50 0.00 0.00 0.00 1,186.50TN 479,598.17 (240,786.22) 238,811.95 209,204.33 20,920.43 20,920.43 259,732.38TX 3,363,251.65 (2,122,497.00) 1,240,754.65 2,809,088.24 280,908.82 280,908.82 1,521,663.47UT 240.81 (240.81) 0.00 0.00 0.00 0.00 0.00VA 10,051.80 10,051.80 0.00 0.00 0.00 10,051.80WA 57,364.55 (18,809.00) 38,555.55 34,200.59 3,420.06 3,420.06 41,975.61WI 0.00 0.00 0.00 0.00 0.00 0.00 0.00

$8,850,921.01 ($5,454,734.50) $3,396,186.51 $14,234,656.20 $1,423,465.63 ($1,024,085.18) $1,296,701.14 $4,692,887.65

EXHIBIT 3

Gramercy Insurance Company in Receivership R-553Guaranty Association Early Access Payment Schedule

Class 1 and Class 2 Guaranty Association Liabilities Through 5/31/16 UDS Reporting

Original signed by

Original signed by