$1,000,000.00 CLIENT PROTECTION BOND

Approved forwarders are protected against loss by Allied's Client Protection Bond.

I. Who may file a claim?

Approved forwarders may file a claim. An approved forwarder is one of the following:

A. Any member in good standing with Allied Finance Adjusters Conference, Inc.

B. Any non-member who possesses an official registered number assigned him by the Client Protection Bond Committee and issued to him through the Chairman of that Committee.

C. Any non-member who writes the association and asks to be covered by the Client Protection Bond.

II. Against whom may a claim be filed?

Any member of Allied Finance Adjusters Conference, Inc. who is a member in good standing at the time the loss occurred.

III. How soon must a claim be filed?

Notice of discovery of loss must be filed with the Client Protection Bond Committee Chairman within 30 days of the discovery date of the loss and in no event more than 90 days after the occurrence of the loss.

A. No suit for recovery under the terms of this Protection Bond shall be filed for a period of 6 months from the date of reporting the loss, unless formal notice of rejection of the claim has been sent to the claimant prior to the expiration of such period. Thereafter, suit shall be filed within one year from the date of reporting the loss, or 6 months from the date of rejection of claim, whichever is sooner.

B. This Bond does not apply to loss sustained due to war, insurrection, rebellion, or revolution, or to any act or condition incident thereto. This Bond does not apply to loss due to accounting or arithmetical errors. This Bond does not apply due to loss as a result of surrender of money, securities, or other property, the surrender of which is a result of a threat to do bodily harm to any person or to cause damage to the property, or premises of any Allied member. This Bond does not apply to a loss, in whole or in part, the proof of which, either to its factual existence or to its amount, is dependent upon an inventory computation or a profit and loss computation.

This Bond does not apply to any claim for loss of potential income, including but not limited to loss of interest, dividends, fees, or expenses.

IV. What is covered?

The principal of the claim as forwarded, if collected within the members' assigned risk area. Allied's liability is limited to maximum $10,000.00 on any one defaulting agency; if claims on any one agency exceed $10,000.00, that sum will be prorated among the approved forwarders.

In no event shall Allied's liability under this section exceed the lowest published loan value of any collateral both for the month and the region of repossession in which the loss occurred based on the date discovery of the loss is reported to the Client Protection Bond Chairman.

V. What proof is required?

A. Full identification of the claim including name and address of the creditor, name and last known address of the debtor, full description of collateral including serial number.

B. Full name and address of forwarder and member to whom the account was forwarded.

C. Dates of forwarding and proof by copy of the original hold harmless letter.

D. Definite proof of loss including original or photo static copies of identifiable receipts, cancelled checks, or admission in writing of collection by the member to whom account was forwarded.

E. Sworn affidavit that the proceeds have not been remitted.

F. If the approved forwarder shall hold or be entitled to benefit of any valid and enforceable insurance or surety against this loss. Allied shall be liable only for so much of any loss covered as exceeds the amount of any such other insurance.

VI. How and where should a claim be filed?

All claims must be filed on official claims forms furnished by Allied Finance Adjusters Conference, Inc. through the Client Protection Bond Chairman.

VII. How are claims processed?

All claims require review by all members of the Client Protection Bond Committee. A minimum period of 60 days should be allowed. All claimants will be notified of any action taken.

Only members in good standing are covered under this program. Please make certain you are using a current Allied Directory. If your Directory is not current, please request a new one.

VIII. Duration of Coverage

Approved forwarders and clients are protected under this program provided all qualifications above have been fulfilled.

IX. Subrogation

Allied reserves the right to subrogate against any defaulting member once a bona fide loss has been paid to a creditor from the Allied Client Protection Bond.

Allied Reserves the right to impose fines against any member found to be in violation of the spirit of trust covered by this Bond. Fines will be determined by the Bond Trust Committee after complete review of any "out of trust" situation.