POLICY STATEMENT
Fairmont Specialty^SM is committed to the privacy, security, and accuracy of its customers' personal information.
Personal information includes all information in our possession about or relating to our current and former customers.
Customers include all natural persons who are applicants, policy holders, beneficiaries of our policies, or claimants under our policies.  Fairmont Specialty^SM and its employees are expected to maintain the confidentiality of Fairmont Specialty^SM's customers' personal information at all times and to inform third parties to whom they disclose such information of Fairmont Specialty^SM's privacy policy with respect to the protection of that information.

DISCLOSURE OF PERSONAL INFORMATION
Employees with access to personal customer information must only disclose such information to those persons who need the information in order to conduct authorized insurance transactions in accordance with established practices and procedures.  The following transactions are authorized insurance transactions, when such functions are done by or on behalf of Fairmont Specialty^SM.

1. Processing insurance claims;
2. Underwriting insurance products requested by the insured;
3. Obtaining or maintaining reinsurance or stop loss or excess loss insurance;
4. Performing institutional risk control;
5. Taking measures to prevent actual or potential fraud;
6. Processing premiums (except for health information);
7. Administering insurance benefits or claims;
8. Servicing or processing and insurance product that a customer requests or authorizes;
9. Administering, carrying out, or enforcing a transaction that a customer requests or authorizes;
10. Participating in medical, scientific, or public policy research projects;
11. Providing conformation statement or other record of a transaction, or information on the status or
    value of an insurance product or service to the customer or the customer's agent or broker (except
    for health information) and;
12. Authorizing, settling, billing, processing, clearing, transferring, reconciling, or collecting amounts charged,
    debited or otherwise paid using a debit, credit, or other payment card; check or account number, or other
    payment means (except for health information).

Personal information may also be disclosed to rate advisory organizations, guaranty funds or agencies, agencies that are rating Fairmont Specialty^SM, persons that are assessing Fairmont Specialty^SM’s compliance with industry standards, and Fairmont’s attorneys, accountants, and auditors as needed. In certain circumstances, personal information may be disclosed to insurance regulators or law enforcement agencies. Personal information may also be disclosed as necessary to comply with laws, rules, or other applicable legal requirements and to respond to subpoenas, summons or judicial process.

Health information about our customers should never be disclosed to a third party unless that party needs the information to perform one of the functions described above on our behalf. Health information should not be disclosed to accountants and should only be disclosed to attorneys or auditors if they need such information to protect our rights or to conduct an audit. Health information may not be disclosed to a policyholder other than the customer without the express written consent of the customer.

Appropriate measures will be taken to ensure that third parties protect the confidentiality of customers’ personal information. Employees who interact with such third parties should periodically remind those third parties of their responsibilities with regard to the personal information of customers. If any employee discovers that third parties are improperly disclosing customers’ personal information, that employee must immediately inform his or her immediate supervisor.

It is the policy of Fairmont Specialty^SM never to sell a customer’s personal information. It is also the policy of Fairmont Specialty^SM never to distribute a customer’s personal information to a nonaffiliated third party for marketing purposes. All employees are expected to comply with these policies.

PROTECTION OF PERSONAL INFORMATION
Fairmont Specialty^SM takes the protection of its customers’ personal information very seriously. All employees with access to personal information are expected to take the utmost care to protect such information. Employees who have no business need to access a customer’s personal information are strictly prohibited from doing so.

Personal information about customers is maintained in an electronic form in Fairmont Specialty^SM Systems. Only employees who need to use such information for business purposes will be given access to these Systems. Such employees must only access the information they need in order to perform a legitimate business transaction.

Hard copies of documents containing personal information about a customer must be maintained in a monitored area. Only employees with a business purpose for using such documents will be given access to that area. Employees with a business purpose for accessing files are expected to do so only as needed to perform a legitimate business transaction and in compliance with Fairmont Specialty^SM’s privacy policies. When an employee is using a file that contains personal information about a customer, that employee must ensure that the file is properly secured at all times.

ACCURACY OF PERSONAL INFORMATION
It is very important that all of the personal information that we maintain about our customers be accurate and up to date. Employees responsible for collecting such information or for entering it into our systems must take care to ensure that the information is accurately recorded. If an employee learns that information in a customer’s file is incorrect, the employee must correct that information or take actions such that the personal information is not further utilized for any purpose.

EXCEPTIONS
It is very important that all of the personal information that we maintain about our customers be accurate and up to date. Employees responsible for collecting such information or for entering it into our systems must take care to ensure that the information is accurately recorded. If an employee learns that information in a customer’s file is incorrect, the employee must correct that information or take actions such that the personal information is not further utilized for any purpose.