reasonable probability of impacting X.L. It takes time and effort for the Insureds to prepare such notices, for X.L. to review, evaluate and investigate them and for Insureds to compile information for X.L. to assist in this process and keep X.L. apprised of developments. It also makes the underwriting process more difficult and affects the result since the underwriters need to take into account the Insured's perception that it has claims which may impact X.L.

**D. How to Give Notice**

In order to protect your rights, we strongly recommend that you send notice directly to X.L. at the address listed in Item 8(a) of the Declarations. Notice must be in writing and should be addressed to the "Claims Department" (or sent to the attention of Pamela Martin, Vice President - Claims Manager). Notice may be given by facsimile at (441) 295-7524. Notice by such means particularly is encouraged under the special provisions of Section IV.K(2)(b) of the policy (requiring notice within 40 days of the commencement of certain pollution Occurrences). It is helpful (but not necessary) to send a copy of the notice to the broker of record as well, but notice to the broker is not notice to X.L. (unless and until your broker forwards it to X.L.). X.L. will acknowledge and adjust claims directly with you (or your designated representative under Item 5 of the Declarations) while copying all correspondence to your X.L. broker (in Bermuda).

Submission of loss data or information concerning claims or occurrences in connection with initial or renewal underwriting is not notice of Occurrence or Integrated Occurrence under Section V.D of the policy. Underwriting submissions offer too little information about too many claims to serve the purposes of notice of Occurrence or Integrated Occurrence. It is necessary for the Insured to provide separate formal written notice thereof (preferably with an explicit reference to Article V of the Policy) to the Claims Department or Manager.

Should you have any questions, please let us know so that we might clarify the matter.

Very truly yours,

Robert J. Cooney  
President and  
Chief Operating Officer