We thank you for the business you place with the Fund and look forward to increased opportunities based on our expanded eligibility and pricing flexibility.

To: Agents Representing the SCHBSIF
Fm: Leigh Polhill, CPCU
Date: February 14, 2007
RE: Election of coverage after inception date of policy

I want to remind you of our procedure concerning principals (sole proprietors, partners, corporate officers and members of LLC/LLP) who choose to change their status after the inception date to be INCLUDED when previously EXCLUDED from Workers Compensation of coverage.

Per our Operations Guidelines which are provided to agents and members(insured’s), it states on page 7, item VIII B) the following:

An Election of Coverage form can be secured from your agent or from the SCHBSIF. Once an election has been filed, it remains in effect until a withdrawal of election is filed. If an election of coverage is requested after the inception of coverage, the election will be effective 30 days after receipt at the SCHBSIF.

Please understand that receipt in the agents office does not constitute receipt in our office. Please forward these requests with the appropriate election form as soon as you receive due to the 30 day delay imposed before coverage is provided.

If you have any questions, please do not hesitate to contact us. We thank you for the business you place with the SCHBSIF.

To: Agents Representing the SCHBSIF
Fm: Leigh Polhill, CPCU
Date: December 15, 2006
RE: Updated Contractors Supplemental Application

We have made revisions to our supplemental application and it has been posted on our website at www.schbsif.com under Commonly Used Documents. Please begin using this version of the supplemental application immediately and discard any copies of the old version. It is still a PDF document meaning you can enter and email from the website. Please be sure to print a copy as we need an original signature to bind.

While on our website take a look around. We have made numerous updates and are now even including our quarterly newsletter.

If you have any questions, please call me. We appreciate the business you place with the Fund and look forward to receiving new applications.

To: Agents Representing the SCHBSIF
Fm: Leigh Polhill
Date: November 6, 2006
RE: Master Builders of South Carolina and the SCHBSIF

We are pleased to announce that our Board of Trustees has voted to allow a 10% credit for 2007 to any builder who has attained the SC Master Builder designation. This is a professional designation created by the Home Builders Association of SC to help homeowners to identify exemplary builders who have a proven track record of stability, integrity and service to their buyers. To obtain Master Builder certification, a builder must be nominated by their peers and satisfy stringent review criteria in areas such as job and financial stability, consumer satisfaction, adherence to accepted building technology standards, customer service, and governmental compliance. They also must carry Workers’ Compensation Insurance and maintain Liability Insurance. For more information on this designation go to www.hbaofsc.com and look under Master Builders of SC.

We are pleased to offer builders shown on the HBA of SC website as having obtained their designation in 2006 this credit on their 2007 renewal policy. In addition, if a builder obtains this designation between January 1-June 30, 2007, we will allow the credit to apply to the entire 2007 fund year (prior months credited at audit). After July 1, 2007, the credit will apply to their 2008 renewal. Please have the builder contact us when they receive this designation.

We hope this will give you one more tool to allow you to write profitable business with the SCHBSIF. Remember, no rate increase for 2007 and credits for Master Builders!

To: Agents Representing the SCHBSIF
Fm: Leigh Polhill
Date: October 6, 2006
RE: NCCI Rate Increase effective 12/1/2006

On October 2, 2006 the State of South Carolina Administrative Law Court ruled on two aspects of Workers Compensation rates on appeal. The first ruling concerned the 32.9% voluntary loss cost rate level increase requested by NCCI on July 1, 2005 to be effective November 1, 2005. The second concerned a Corrective Action Order signed by the Director of the South Carolina Department of Insurance on October 10, 2005 to increase Assigned Risk rates at the same time voluntary loss costs are increased to maintain an overall 40.4% rate differential.

The Administrative Law Judge approved an 18.4% increase in the voluntary loss cost level to be effective December 1, 2006. In addition, he upheld the Corrective Action Order to increase Assigned Risk rates to maintain an overall 40.4% rate differential.

How does this affect the business you write with the SCHBSIF? We are not affiliated with NCCI, therefore, this rate increase will not be adopted. We are pleased to report that we will not be implementing any rate increase in connection with our renewals on January 1, 2007. There will be rate reductions for class codes 3724 (Millwright) and 5538 (Sheet Metal) which will be included in your new rate cards which are in the process of development. All other rates will remain the same.

Please keep us in mind for your qualified accounts currently with other carriers or written through the assigned risk. Our monthly reporting provision as well as our liberal interpretation of certain class codes can make us the competitive advantage for your agency.

If you have any questions, please do not hesitate to contact us. We thank you for the business you place with the SCHBSIF and look forward to additional opportunities to write profitable accounts.

Date: November 24, 2004
To: All Members and Agents Representing the SCHBSIF
From: Jeff Ranew
Re: Change in Classification for "Punch-List" Work

The SCHBSIF Board of Trustees has voted to change the classification used for "Punch List" work effective January 1, 2005. Currently, we are using code 9014-Building Operation by Owner/Lessee, however beginning with the 2005 policy year these individuals will be reclassified as 5347-Carpentry Installation Cabinet/Interior Trim. It is felt that this classification and rate more closely represents the varied exposure presented by the type work performed in this category.

If you have any questions, please contact the Policy Services Department at the Fund. We appreciate your understanding.

Date: October 26, 2004
To: Agents Representing the SCHBSIF
From: Jeff Ranew, Administrator
Re: Commissions on Bad Debt Recovery

Effective immediately we must discontinue the practice of paying commissions on bad debt recoveries. The Fund incurs substantial expense in the collection of these premiums including attorneys recovery fees, court and processing fees. This new policy will apply any time we must engage these services to collect premiums owed the Fund.

We appreciate your front line underwriting efforts to ensure members of the Fund are able to meet their premium obligations. If you have any questions, please contact Leigh Polhill, Marketing Representative or myself.

August 23, 2004
To: Agents Representing The South Carolina Home Builders Self Insurers Fund (SIF)
From: Jeff Ranew
Re: Agent of Record Procedure

The purpose of this memorandum is to reiterate the policy we will follow regarding the acceptance of Agents' Letters of Record.

Effective immediately, we will accept Acord Form36-Agent Broker of Record Change to honor a members' request to change representation. In absence of the Acord form we will accept a written request on the insured's company letterhead.

Upon receipt of the document we will grant the incumbent agent 10 business days to secure and deliver a letter of rescission to the SIF office. We will accept a change of representation only one time per policy year.

Commissions will be paid to the newly appointed agent beginning with the first day of the month following the expiration of the 10 day rescinding period. Commission adjustments as a result of Premium audit will be the responsibility of the last Agent of Record for the Fund year.

August 23, 2004
To: Agents Representing The South Carolina Home Builders Self Insurers Fund (SIF)
From: Leigh Polhill
Re: Certificates of Insurance

This is a reminder of the additional information that needs to be included on any Certificate of Insurance issued for a member of the SCBHSIF. Also remember, a copy of all Certificates must be faxed or mailed to the fund,

Principals (Sole Proprietor, Partner or Officers) included or excluded from coverage. There are certain agency management systems which offer a check a block for this. If not available for your version, please show this in the box titled Description of operations, ETC.
If a Waiver of Subrogation applies, the Certificate must also include the following:

Location of Job
Type of work performed

Length of Job

Contract # if available

We offer the Waiver of Subrogation at no charge to the member, but only on a per job basis.

If your Certificates of Insurance are missing the needed information, they will be returned to you for correction. Please distribute this bulletin to all agency personnel responsible for issuing Certificates of Insurance. If you have any questions, please let me know.

Date: June 28th, 2004
To: Insurance Agents Representing The South Carolina Home Builders Self Insurers Fund (SIF)
From: Leigh Polhill, Marketing Representative
Re: Out of State Exposure-Florida

You should have recently recieved a notice from Jeff Ranew about the issues with out of state exposures and the SIF. As a follow up to the Florida situation, an agent graciously provided a copy of a notice from the Florida Department of Insurance concerning the regulations that apply to any employer who has employees engaged in work in Florida. This notice is attached for your review.

If you have any questions please don't hesitate to call us at 800-678-8178

Important Notice to Workers Compensation Insurers, Insurance Agents, and State Insurance Regulatory Agencies

Re: Amendment to Section 440.10(1)(g), Florida Statutes, Requiring Florida Workers Compensation Policy or Endorsement for Employers who have Employees engaged in work in Florida

Effective October 1, 2003, Florida law requires any employer who has employees engaged in work in Florida to obtain a Florida's compensation workers' policy or endorsement utilizing Florida class codes, rates, rules and manuals for such employees. The Florida workers' compensation policy and endorsement must be in compliance with and approved under the provisions of Chapter 440 Florida statutes and the Florida Insurance Code. Pursuant to Section 440.107, Florida statutes(2003), an employer's failure to comply with this requirement will result in a stop-work order being issued on the employer's Florida operations. Failure to comply with the requirements of Section 440.10(1)(g), Florida statutes (2003) is also a felony of the second degree.

Effective October 1, 2003, in order to meet the requirements of Section 440.10(1)(g), Florida statutes, applying Florida approved National Council on Compensation Insurance underwriting rules and manuals, the workers' compensation policy Information Page covering employees engaged in work in Florida must list "Florida" in Section 3.A. and use Florida approved classification codes, rates and estimated payroll in Section 4. If a policy information page endorsement (WC 89 06 00 B) is used, the information must list "Florida" in Section 3.A. and used Florida approved classification codes, rates and estimated payroll in Section 4. For a workers compensation policy covering employees engaged in work in Florida, listing "Florida" in Section 3.C. of the Information Page does not meet the requirements of Section 440.10(1)(g), Florida Statutes.

Please be advised that insurers reflecting approved Florida classification, rates and estmated payrolls on workers compensation policy must have a Florida Certificate of Authority.

The Department of Financial Services is adopting administrative rules to impliment this law. The standards for determining whether construction and non-construction workers are "engaged in work" in Florida are specified in Section 440.10(1)(g), Florida statutes. The text od Section 440.10(1)(g), Florida statutes, is included in SB 50-A, can be located at www.leg.state.fl.us

Questions regarding this notice may be directed to Hayden Gray. He can be reached at 850-413-1776 or at grayh@dfs.state.fl.us .

June 17th, 2004
To: Agents Representing The South Carolina Home Builders Self Insurers Fund (SIF)
From: Jeff Ranew
Re: Out-of-State Coverage

We have recently learned of 2 unfortunate situations involving members of SIF who were doing work in Florida.

In each case representatives of the Florida Department of Insurance visited the jobsires a requested Certificates of Insurance that endorsed Florida benefits.

When certificates bearing this endorsement could not be provided a stop work order was issued and we have been told that significant fines may be levied.

Please remember that the SIF provides coverage for incidental exposures in other states, and provides benefits in accordance with South Carolina statutes and the regulations of the South Carolina's Workers' Compensation Commission. Additionally, coverage is provided only to members whose sole physical locations (offices) are in South Carolina and whose contracts of hire are drawn in South Carolina. We do not provide coverage for entities domiciled in other states.

We are unaware of similar problems having been encountered in other jurisdictions, but would suggest that you advise your clients that the laws and regulations of other states may be changed at any time.

Please feel free to contact me at 800-678-8178 if you have any questions.