NOTE TO CREDITORS RE BAR DATE

The KWELM Companies and BFMIC are in amended Schemes of Arrangement that require a Claim Form to be filed, together with full Supporting Information, in the event that a signed settlement agreement has not been completed by the Bar Date. The Bar Date for the purposes of KWELM and BFMIC is 11:59 pm Greenwich Mean Time on 29th September 2004. Scheme Creditors who do not make such a submission before the Bar Date will not be entitled to receive any payments under the Scheme in respect of claims which are not already established at the Amending Scheme Effective Date. Separate arrangements apply to Protected Policyholders. Details of the Scheme and the Bar Date procedure can be found on the KWELM website www.KWELM.com and the BFMIC website www.BFMIC.bm. Pages 270 to 274 of the KWELM Amending Scheme and pages 251 to 256 of the BFMIC Amending Scheme sets out examples of the Supporting Information required.

The Third Judicial District Court, State of Utah, Salt Lake County, Salt Lake Department issued an Order on the 21st June 2004 approving and setting a Final Claims Bar Date of 23:59 (GMT, London) on 29th September 2004 for SAIC’s Weavers Claims. If ALL Supporting Information has been submitted to KWELM or BFMIC under the KWELM or BFMIC Schemes pursuant to their Bar Date procedure then SAIC Creditors should tick the box on the Proof of Claim form. Claimants who do not submit a Proof of Claim form and ALL Supporting Information so as to be received by KMS, on behalf of the Liquidator of SAIC, before the Final Claims Bar Date will not be entitled to receive any payments from the estate of SAIC that are not already established at the Final Claims Bar Date. Proof of Claim forms and instructions for completing and submitting the Proof of Claim forms can be found on the SAIC website www.utinsreceivers.org

In addition, you will also need to provide Supporting Information, showing authority to give a release and entitlement to claim upon any policies that are not in your company’s current name. Examples of appropriate information may include certificates showing Change of Name, evidence of merger/acquisition, evidence of company structure/beneficial ownership, evidence of transfer of liabilities/novation agreements, reinsurance agreements, evidence of pool arrangements or copies of assignment documents etc.

Unless a signed settlement agreement has been completed by the Bar Date claimants must submit a Claim Form or Proof of Claim (in the case of SAIC) and full supporting information in order to have a claim evaluated. Any discussions with KWELM, BFMIC or SAIC (including discussions with KMS as their agent) which have not resulted in a signed settlement agreement will not alleviate the obligation upon claimants to formally submit full details of claims and Supporting Information before the Bar Date in the manner set out above.

Finally, we would also draw your attention to Clause 9.1.3 of the KWELM Amending Scheme and Clause 8.1.3 of the BFMIC Amending Scheme which provide that no Scheme Creditor shall have any right after the Bar Date to revise or provide further Supporting Information except in response to a specific request for such information by a Scheme Administrator/Liquidator or Scheme Adjudicator. It is not a requirement for the Scheme Administrators/Liquidators or the Scheme Adjudicators to request further information and therefore it is important that you provide all Supporting Information with your Claim Form. In the case of SAIC if you fail to provide adequate documentation to support your claim, your Proof of Claim may be rejected at the sole discretion of the Liquidator.