**Zurich-American Insurance Companies**

**Special Risk Division**
**Manhattan Region**
**444 Madison Avenue**
**New York, New York 10005**
**(212) 635-9150**

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**July 31, 1987**

**Mr. Dick Michel**
**Vice President**
**Johnson & Higgins**
**125 Broad Street**
**New York, N. Y. 10004**

**RE: I.B.M.**
**5/21/86 - 5/21/87 FINAL ADJUSTMENTS**

**Dear Dick,**

As per our recent conversation, attached are the revised audit adjustments for IBM 86-87 term. We have amended the following:

- All policies (CGL, BAP, GA and MA) should have a "going in" commission of 39.4% (subject premium) and a 4.5% on audit.

- To avoid double charge for Texas and Massachusetts autos, both the GA and MA auto policies will be adjusted utilizing "0" exposure bases. The BAP using total submitted audited payroll exposure, will reflect total auto earned standard premium.

- The Max ELP Endorsement was incorrect and replaced by the attached. In view of this, Max ELP calculation has been revised.

Dick, please review and let me know if you have questions.

Sincerely,

**Owkie Kwik**
**Account Executive**

**OK:lb**

**Attachment**

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**Zurich Insurance Company/American Guarantee and Liability Insurance Company**
**Zurich American Insurance Company of Illinois**
**Zurich American Life Insurance Company**

**MM 009807**