MAY FILED. Department of Insurance State of Idaho. Attorneys for the Department ofinsurance , Idaho Certificate ofauthority No.

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1 LAWRENCE G. WASDEN Attorney General RICHARD B. BURLEIGH, ISB No Deputy Attorney General State ofidaho Department ofinsurance 700 W. State Street, 3^'' Floor P.O. Box Boise, Idaho Telephone: (208) Facsimile: (208) FILED MAY Department of Insurance State of Idaho Attorneys for the Department ofinsurance BEFORE THE DIRECTOR OF THE DEPARTMENT OF INSURANCE STATE OF IDAHO In the Matter of: AMERICAN MODERN INSURANCE GROUP, INC., NAIC Group No. 0361; AMERICAN MODERN HOME INSURANCE COMPANY, NAIC No , Idaho Certificate ofauthority No. 1092; Docket No ORDER ADOPTING REGULATORY SETTLEMENT AGREEMENT AMERICAN MODERN SELECT INSURANCE COMPANY, NAIC No , Idaho Certificate ofauthority No. 3615; AMERICAN FAMILY HOME INSURANCE COMPANY, NAIC No , Idaho Certificate of Authority No. 1566; AMERICAN SOUTHERN HOME INSURANCE COMPANY, NAIC No , Idaho Certificate ofauthority No. 3644; ORDER ADOPTING REGULATORY SETTLEMENT AGREEMENT - Page 1

2 and AMERICAN WESTERN HOME INSURANCE COMPANY, NAIC No , Idaho Certificate ofauthority No On or about May 5, 2015, the Idaho DepartmentofInsurance ("Department") received notice ofa proposed regulatory settlement agreement involving American Modem Insurance Group, Inc., and its following insurance company subsidiaries: American Modem Home Insurance Company, American Modem Select Insurance Company, American Family Home Insurance Company, American Southem Home Insurance Company, and American Westem Home Insurance Company (collectively, the "AMIG Companies"). The Director ofthe Department ("Director"), having reviewed the same, makes the following findings and conclusions: 1. The Director has jurisdiction in the state ofidaho over matters involving insurance regulation, pursuant to the Idaho Insurance Code, Idaho Code et seq. 2. AMERICAN MODERN HOME INSURANCE COMPANY is an Ohiodomiciled insurer holding Idaho Certificate ofauthority No and is authorized to transact insurance in the state ofidaho. 3. AMERICAN MODERN SELECT INSURANCE COMPANY is an Ohiodomiciled insurer holding Idaho Certificate ofauthority No and is authorized to transact insurance in the state ofidaho. 4. AMERICAN FAMILY HOME INSURANCE COMPANY is a Florida-domiciled insurer holding Idaho Certificate ofauthority No and is authorized to transact insurance in the state of Idaho. ORDER ADOPTING REGULATORY SETTLEMENT AGREEMENT - Page 2

3 5. AMERICAN SOUTHERN HOME INSURANCE COMPANY is a Floridadomiciled insurer holding Idaho Certificate ofauthority No and is authorized to transact insurance in the state ofidaho. 6. AMERICAN WESTERN HOME INSURANCE COMPANY is an Oklahomadomiciled insurer holding Idaho Certificate ofauthority No and is authorized to transact insurance in the state ofidaho. 7. Beginning in approximately October 2012, the AMIG Companies voluntarily reported to the insurance regulators oftheir domiciliary states an issue with respect to potential charges in excess ofthe filed and/or approved rates for their lender-placed products and corrections to their commercial single interest products. Since that time, the AMIG Companies have provided regular status reports to the Ohio Department ofinsurance regarding its implementationofa corrective action plan. 8. On or about April 28, 2015, the AMIG Companies and the insurance regulators of Ohio, Indiana, and Washington (the "Lead States") entered into a Regulatory Settlement Agreement ("Agreement"), a copy ofwhich is attached hereto as Exhibit A. The Agreement provides, generally, for certain changes to the AMIG Companies' practices and procedures, for repayment to eligible borrowers ofidentified and verified charges that exceeded filed and/or approved rates for applicable lender-placed products, and for the payment ofan administrative penalty to be allocated among states adopting to the Agreement, as more specifically set forth in the attached Agreement. 9. The Director finds that the terms ofthe Agreement are appropriate and adoption ofthe Agreement is in the best interests ofthe state ofidaho. ORDER ADOPTING REGULATORY SETTLEMENT AGREEMENT - Page 3

4 10. The Director having signed the State RSA Adoption Form, found at Exhibit 4 to the Agreement, on May 13, 2015, and the Agreement becoming effective on July 14, 2015, based on its adoption by a requisite number ofjurisdictions, the Director now wishes to memorialize the Agreement by entry ofthis order. NOW, THEREFORE, in consideration ofthe premises, IT IS HEREBY ORDERED that the Agreement is hereby approved, adopted, and fully incorporated herein by reference. The AMIG Companies shall comply with all terms and conditions ofthe Agreement in accordance with its provisions. DATED this M. day of May, STATE OF IDAHO DEPARTMENT OF INSURANCE THOMAS A. DONOVAN Acting Director NOTIFICATION OF RIGHTS This Order constitutes a final order ofthe Director. Any party may file a motion for reconsideration ofthis final order within fourteen (14) days ofthe service date ofthis order. The Director will dispose ofthe petition for reconsideration within twenty-one (21) days ofits receipt, or the petition will be considered denied by operation oflaw. See, Idaho Code (4). Pursuant to Idaho Code and , any party aggrieved by this final order may appeal it by filing a petition for judicial review in the district court ofthe county in which: (1) the hearing was held; or (2) the final agency action was taken; or (3) the aggrieved party ORDER ADOPTING REGULATORY SETTLEMENT AGREEMENT - Page 4

5 resides or operates its principal place of business in Idaho; or (4) the real property or personal property that was the subjectof the agency decision is located. An appealmust be filed within twenty-eight (28) days of: (a) the service date of this final order; or (b) an orderdenying a petition for reconsideration; or (c) the failure within twenty-one (21) days to grant or deny a petition for reconsideration, whichever is later. See, Idaho Code The filing of a petition for judicial review does not itselfstay the effectiveness or enforcement ofthe order under appeal. CERTIFICATE OF SERVICE 1 HEREBY CERTIFY that on this day ofmay, 2015,1 caused a true and correct copy ofthe foregoing ORDER ADOPTING REGULATORY SETTLEMENT AGREEMENT to be served upon the following by the designated means: Ohio Department ofinsurance Mary Taylor, Lieutenant Governor/Director 50 West Town Street, Suite 300 Columbus, OH Ohio Department ofinsurance Angela Dingus, Market Conduct Division Chief 50 West Town Street, Suite 300 Columbus, OH angela.dingus@,insurance.ohio.gov ^ first class mail I I certified mail I Ihand delivery I I via facsimile I I first class mail I I certified mail I Ihand delivery I I via facsimile ^ via Indiana Department ofinsurance Stephen W. Robertson, Commissioner 311 W. Washington Street, Suite 103 Indianapolis, IN ^ first class mail I Icertified mail I Ihand delivery I I via facsimile Washington Department ofinsurance Mike Kreidler, Commissioner P.O. Box Olympia, WA ^ first class mail I I certified mail I Ihand delivery I I via facsimile ORDER ADOPTING REGULATORY SETTLEMENT AGREEMENT - Page 5

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