**J.J. Conerty**
June 6, 1995
Page 2

**XL**

With regard to the retroactive coverage, such coverage is only in force for an occurrence if, at the effective date of Retroactive Coverage (December 21, 1992), the Insured was unaware of any of the injury, damage or liability comprising the subject occurrence. Therefore, please understand that no coverage would be provided for pre inception, i.e., pre December 21, 1991 injuries, if at December 21, 1992, the Insured was aware of any of the injuries arising from this occurrence.

Exclusion IV(a) voids coverage in respect of injury damage or liability taking place prior to the inception date, or if applicable the retroactive date of the policy. Subject to that exclusion, and pursuant to Condition V(i), such coverage as is provided by X.L. engages excess of and does not contribute with other coverage available to the insured.

X.L. expressly reserves the right to assert any and all of the above-enumerated policy defenses as well as any others that are or may become applicable. X.L. recognizes your right to disagree and take contrary positions.

X.L. also may make follow up inquiries from time to time as to the status of this matter.

We appreciate your co-operation and should you have any questions, please do not hesitate to contact us.

Very truly yours,

Ana Fortuna
Senior Claims Analyst

AF/lms

cc: Joanne Gosling - J&H Intermediaries