October 30, 2006

Bill Hoffman
Affiliated Adjusters, Inc
2340 FM 407, Suite 103
Highland Village, TX 75077

Re: Successful conclusion of your assignment for the City of Biloxi concerning the settlement of our Flood and Windstorm Claim due to the extraordinary damages associated with Hurricane Katrina.

Dear Bill:

It is with great pleasure I write to you expressing my appreciation of the remarkable manner in which your firm handled the above captioned insurance claim for our City. The morning after Katrina passed the City of Biloxi found itself in a unique situation. We had experienced a catastrophic loss of municipal assets and we were under-insured. Needless to say, it was imperative that we maximize the claim coverage of all assets (buildings, contents, vehicles, equipment, etc.) through our insurance providers.

Insurance issues are generally disaster and site specific with the complications of interpretation by both insurer and insured. The determination of the entitlement to insurance proceeds is a difficult process for any entity. The analysis of the insurance policies with data, declarations, endorsements, exclusions, schedules and other attachments or amendments is a highly technical procedure to deal with.

The other major challenge the city had to face was the preparation and delivery of the project worksheets for FEMA to insure maximum reimbursement of federal funding to cover the cost of repair and replacement of damaged and destroyed assets. We had to describe the hazard (flood or wind) that caused the disaster damage to the asset in the property description. FEMA would cover the total damage cost less insurance recovery on an asset by asset basis.

This is where you came into the picture. The issues you dealt with in the city's insurance claim were probably unprecedented of any others in the country. According to FEMA cost estimates, the City of Biloxi incurred more than $70 million in damage to municipal assets (our estimates are much higher). Your firm combines the qualifications which one most desires of technical training, background and experience, good judgment, accuracy in word and action, quick understanding and adaptability in all communications in the consulting capacity to our city.

Specifically, I would like to state the areas that were significantly important to the settlement of our claim:

  1. The question whether the damage was caused by wind or flood.
  2. Disputing the insurance company's engineering reports to prove the cause of the damages and the timeframe in which the damages occurred.
  3. Working with the Statement of Values that were in place prior to the storm.
  4. Proving our position with the use of weather reports and engineering support.
  5. Working with the adjusters on the first layer of coverage who did not distinguish between the damage caused by wind or flood.
  6. Proving the amount of damage caused by wind and flood by preparing detailed estimates on every insured asset of the City of Biloxi.

To us who have struggled with the aftermath of this terrible storm, your help and encouragement has ever been a source of strength. Without the assurance and confidence of your public adjustment skills, we could never have brought this claim to 100% recovery of insurance entitlements. I have been impressed by your worthwhile character, your constant application and interpretation of regulatory and legal requirements, and your disciplined work ethic.

I am glad to say that I know you to be a man of unusual ability, and irreproachable character. I have watched your development in the working relationship with my Director of Administration, David Staehling, with a great deal of interest. I wanted you to know that in my opinion, you are a tremendous credit to the public adjusters industry as it relates to insurance claim resolution. I felt that you should be commended for your exceptional qualities and abilities related to performing your job properly and efficiently.

Respectfully yours,
A.J. Holloway
City of Biloxi