SAFETY NATIONAL CASUALTY CORPORATION PRIVACY STATEMENT

 

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                                  EXHIBIT 10-1

 

                      SAFETY NATIONAL CASUALTY CORPORATION

 

                               PRIVACY STATEMENT

 

OUR COMMITMENT TO OUR CUSTOMERS

 

Safety National Casualty Corporation ("Safety National") is proud to have

provided quality products and services to its customers for over 50 years. We

greatly appreciate the trust that you and all of our customers place in us. We

protect that trust by respecting the privacy of all of our customers, both

present and past. The following will explain our privacy practices so that you

will understand our commitment to your privacy.

 

WE RESPECT YOUR PRIVACY

 

When you apply to Safety National for any type of insurance, you disclose

information about you to us. The collection, use and disclosure of such

information is regulated by law. Safety National and its affiliates maintain

physical, electronic and procedural safeguards that comply with state and

federal regulations to guard your personal information. Our employees are also

advised of the importance of maintaining the confidentiality of your

information.

 

TYPES OF INFORMATION WE COLLECT

 

Safety National obtains most of our information directly from you, your agent or

broker. The application you complete, as well as any additional information you

provide, generally gives us most of the details we need to know. Depending on

the nature of your insurance transaction, we may need further details about you.

 

We may obtain information from third parties, such as other insurance or

reinsurance companies, medical providers, government agencies, information

clearinghouses and other public records. We may also obtain information about

you from your other transactions with us, our affiliates or others.

 

WHAT WE DO WITH YOUR INFORMATION

 

Information that has been collected about you will be retained in our files. We

will review your information in evaluating your request for insurance coverage,

determining your rates or underwriting risk, servicing your policy or adjusting

claims. We may retain information about our former customers and would disclose

that information only to affiliates and to non-affiliates as described in this

notice or as otherwise permitted by law.

 

TO WHOM DO WE DISCLOSE YOUR INFORMATION

 

We will not disclose any non-public, personal information about our customers or

former customers, except as permitted by law. That means we may disclose

information we have collected about you to the following types of third parties:

 

-     Our affiliated companies (members of the Delphi Financial group of

      companies).

 

-     Your agent or broker.

 

-     Parties who perform a business or insurance function for Safety National,

      including reinsurance, auditing, underwriting, claims administration or

      adjusting, investigation, loss control and computer systems companies.

 

-     Other insurance companies or agents as reasonably necessary concerning

      your application, policy or claim.

 

-     Insurance regulatory or statistical reporting agencies.

 

-     Law enforcement or governmental authorities in connection with suspected

      fraud or illegal activities.

 

-     Authorized persons as ordered by subpoena, warrant or court order, or as

      required by law.

 

We do not disclose any non-public, personal information about you to

non-affiliated companies for marketing purposes or for any other purpose except

those specifically allowed by law and described above.

 

INDEPENDENT SALES AGENTS OR BROKERS

 

Your policy may have been placed with us through an independent agent or broker

("Sales Agent"). Your Sales Agent may have gathered information about you. The

use and protection of information obtained by your Sales Agent is their

responsibility, not Safety National's. If you have questions about how your

Sales Agent uses or discloses your information, please contact them directly.

 

WC 99 99 28

 

 

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                                 [SNCC(R) LOGO]

 

                      SAFETY NATIONAL CASUALTY CORPORATION

                        2043 WOODLAND PARKWAY, SUITE 200

                            ST. LOUIS, MISSOURI 63146

                                  (314)995-5300

 

WC 99 99 00 (02 96)

 

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[SNCC(R) LOGO]   SAFETY NATIONAL                          WC 00 00 00 A (04 92)

               Casualty Corporation                                     

                 A Stock Company

 

WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY

 

In return for the payment of the premium and subject to all terms of this

policy, we agree with you as follows:

 

                                 GENERAL SECTION

 

A.    THE POLICY

 

      This policy includes at its effective date the Information Page and all

      endorsements and schedules listed there. It is a contract of insurance

      between you (the employer named in Item 1 of the Information Page) and us

      (the insurer named on the Information Page). The only agreements relating

      to this insurance are stated in this policy. The terms of this policy may

      not be changed or waived except by endorsement issued by us to be part of

      this policy.

 

B.    WHO IS INSURED

 

      You are insured if you are an employer named in Item 1 of the Information

      Page. If that employer is a partnership, and if you are one of its

      partners, you are insured, but only in your capacity as an employer of the

      partnership's employees.

 

C.    WORKERS COMPENSATION LAW

 

      Workers Compensation Law means the workers or workmen's compensation law

      and occupational disease law of each state or territory named in Item 3.A.

      of the Information Page. It includes any amendments to that law which are

      in effect during the policy period. It does not include any federal

      workers or workmen's compensation law, any federal occupational disease

      law or the provisions of any law that provide nonoccupational disability

      benefits.

 

D.    STATE

 

      State means any state of the United States of America, and the District of

      Columbia.

 

E.    LOCATIONS

 

      This policy covers all of your workplaces listed in Items 1 or 4 of the

      Information Page; and it covers all other workplaces in Item 3.A. states

      unless you have other insurance or are self-insured for such workplaces.

 

                                    PART ONE

                         WORKERS COMPENSATION INSURANCE

 

A.    HOW THIS INSURANCE APPLIES

 

      This workers compensation insurance applies to bodily injury by accident

      or bodily injury by disease. Bodily injury includes resulting death.

 

      1.    Bodily injury by accident must occur during the policy period.

 

      2.    Bodily injury by disease must be caused or aggravated by the

            conditions of your employment. The employee's last day of last

            exposure to the conditions causing or aggravating such bodily injury

            by disease must occur during the policy period.

 

B.    WE WILL PAY

 

      We will pay promptly when due the benefits required of you by the workers

      compensation law.

 

C.    WE WILL DEFEND

 

      We have the right and duty to defend at our expense any claim, proceeding

      or suit against you for benefits payable by this insurance. We have the

      right to investigate and settle these claims, proceedings or suits.

 

      We have no duty to defend a claim, proceeding or suit that is not covered

      by this insurance.

 

D.    WE WILL ALSO PAY

 

      We will also pay these costs, in addition to other amounts payable under

      this insurance, as part of any claim, proceeding or suit we defend:

 

      1.    Reasonable expenses incurred at our request, but not loss of

            earnings;

 

      2.    Premiums for bonds to release attachments and for appeal bonds in

            bond amounts up to the amount payable under this insurance;

 

      3.    Litigation costs taxed against you;

 

      4.    Interest on a judgment as required by law until we offer the amount

            due under this insurance; and

 

      5.    Expenses we incur.

 

E.    OTHER INSURANCE

 

      We will not pay more than our share of benefits and costs covered by this

      insurance and other

 

(c) 1991 NATIONAL COUNCIL ON COMPENSATION INSURANCE.                Page 1 of 6

 

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                                                           WC 00 00 00 A (04 92)

 

      insurance or self-insurance. Subject to any limits of liability that may

      apply, all shares will be equal until the loss is paid. If any insurance

      or self-insurance is exhausted, the shares of all remaining insurance will

      be equal until the loss is paid.

 

F.    PAYMENTS YOU MUST MAKE

 

      You are responsible for any payments in excess of the benefits regularly

      provided by the workers compensation law including those required because:

 

      1.    of your serious and willful misconduct;

 

      2.    you knowingly employ an employee in violation of law;

 

      3.    you fail to comply with a health or safety law or regulation; or

 

      4.    you discharge, coerce or otherwise discriminate against any employee

            in violation of the workers compensation law.

 

      If we make any payments in excess of the benefits regularly provided by

      the workers compensation law on your behalf, you will reimburse us

      promptly.

 

G.    RECOVERY FROM OTHERS

 

      We have your rights, and the rights of persons entitled to the benefits of

      this insurance, to recover our payments from anyone liable for the injury.

      You will do everything necessary to protect those rights for us and to

      help us enforce them.

 

H.    STATUTORY PROVISIONS

 

      These statements apply where they are required by law.

 

      1.    As between an injured worker and us, we have notice of the injury

            when you have notice.

 

      2.    Your default or the bankruptcy or insolvency of you or your estate

            will not relieve us of our duties under this insurance after an

            injury occurs.

 

      3.    We are directly and primarily liable to any person entitled to the

            benefits payable by this insurance. Those persons may enforce our

            duties; so may an agency authorized by law. Enforcement may be

            against us or against you and us.

 

      4.    Jurisdiction over you is jurisdiction over us for purposes of the

            workers compensation law. We are bound by decisions against you

            under that law, subject to the provisions of this policy that are

            not in conflict with that law.

 

      5.    This insurance conforms to the parts of the workers compensation law

            that apply to:

 

            a.    benefits payable by this insurance;

 

            b.    special taxes, payments into security or other special funds,

                  and assessments payable by us under that law.

 

      6.    Terms of this insurance that conflict with the workers compensation

            law are changed by this statement to conform to that law.

 

      Nothing in these paragraphs relieves you of your duties under this policy.

 

                                    PART TWO

                         EMPLOYERS LIABILITY INSURANCE

 

A.    HOW THIS INSURANCE APPLIES

 

      This employers liability insurance applies to bodily injury by accident or

      bodily injury by disease. Bodily injury includes resulting death.

 

      1.    The bodily injury must arise out of and in the course of the injured

            employee's employment by you.

 

      2.    The employment must be necessary or incidental to your work in a

            state or territory listed in Item 3.A. of the Information Page.

 

      3.    Bodily injury by accident must occur during the policy period.

 

      4.    Bodily injury by disease must be caused or aggravated by the

            conditions of your employment. The employee's last day of last

            exposure to the conditions causing or aggravating such bodily injury

            by disease must occur during the policy period.

 

      5.    If you are sued, the original suit and any related legal actions for

            damages for bodily injury by accident or by disease must be brought

            in the United States of America, its territories or possessions, or

            Canada.

 

B.    WE WILL PAY

 

      We will pay all sums you legally must pay as damages because of bodily

      injury to your employees, provided the bodily injury is covered by this

      Employers Liability Insurance.

 

      The damages we will pay, where recovery is permitted by law, include

      damages:

 

      1.    for which you are liable to a third party by reason of a claim or

            suit against you by that third party to recover the damages claimed

 

(c) 1991 NATIONAL COUNCIL ON COMPENSATION INSURANCE.                Page 2 of 6

 

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WC 00 00 00 A (04 92)

 

            against such third party as a result of injury to your employee;

 

      2.    for care and loss of services; and

 

      3.    for consequential bodily injury to a spouse, child, parent, brother

            or sister of the injured employee; provided that these damages are

            the direct consequence of bodily injury that arises out of and in

            the course of the injured employee's employment by you; and

 

      4.    because of bodily injury to your employee that arises out of and in

            the course of employment, claimed against you in a capacity other

            than as employer.

 

C.    EXCLUSIONS

 

      This insurance does not cover:

 

      1.    liability assumed under a contract. This exclusion does not apply

            to a warranty that your work will be done in a workmanlike manner;

 

      2.    punitive or exemplary damages because of bodily injury to an

            employee employed in violation of law;

 

      3.    bodily injury to an employee while employed in violation of law with

            your actual knowledge or the actual knowledge of any of your

            executive officers;

 

      4.    any obligation imposed by a workers compensation, occupational

            disease, unemployment compensation, or disability benefits law, or

            any similar law;

 

      5.    bodily injury intentionally caused or aggravated by you;

 

      6.    bodily injury occurring outside the United States of America, its

            territories or possessions, and Cana