ACInsurance, Inc.
Privacy Policy Notice
January 1, 2005

PURPOSE OF THIS NOTICE

Title V of the Gramm-Leach-Bliley Act (GLBA) generally prohibits any financial institution directly or through its affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of AC insurance, Inc.

The GLBA further requires that we inform you that you have a right to prevent us from sharing nonpublic personal information about you with a nonaffiliated third party for any purpose that is not specifically authorized by law. Your right to prevent us from sharing nonpublic personal information about you with a nonaffiliated third party for a purpose that is not specifically authorized by law is called your right to "opt-out" of such information sharing.

OUR PRIVACY POLICIES AND PRACTICES

1. Information we collect:

We collect nonpublic personal information about you from the following sources:

• Information we receive from you on applications or other forms
• Information about your transactions with us, our affiliates or others
• Information we receive from a consumer reporting agency

2. Information we may disclose to third parties:

We may disclose the following kinds of nonpublic personal information about you:

• Information we receive from you on applications or other forms, such as your name, address, social security number and driver license number.
• Information about your transactions with us, our affiliates or other, such as your insurance policy coverage, premiums and payment history.
• Information we receive from a consumer reporting agency, such as creditworthiness and driving history.

3. Nonaffiliated third parties to whom disclosures may be made:

A. Nonaffiliated third parties to whom disclosures may be made:

• Financial service providers, such as life insurers, automobile insurers, mortgage bankers and mortgage lenders.
• Others such as your customers requesting certification of your insurance coverage.

B. Notification of your right to opt-out of certain disclosures:

As we have indicated in this Privacy Policy Notice, we collect certain nonpublic personal information about you, and we may disclose that information to certain nonaffiliated third parties for purposes other than those expressly permitted by the Gramm-Leach-Bliley Act and the federal and state regulations implementing that Act. If you prefer that we not disclose nonpublic personal information about you to nonaffiliated third parties, you may opt out of those disclosures, that is, you may direct us not to make those disclosures (other than those disclosures that are expressly permitted by the Gramm-Leach-Bliley Act and its implementing regulations).

If you wish to opt out of such disclosures to nonaffiliated third parties, you may:

• Call us toll free at 800/792-5624 or
• E-mail us at info@acinsure.com

4. Affiliates with whom we share certain information protected by the Fair Credit Reporting Act, unless you tell us not to:

Information we can share with our affiliates, unless you tell us not to:

• Information we obtain from your insurance applications, such as your income, marital status.
• Information we obtain from a consumer report such as your credit score and driving record.
• Information we obtain from a person regarding its employment, credit or other relationship with you, such as your employment history.

  Our affiliated companies who may receive this information are:

• Financial service providers, such as: Mortgage lenders and brokers, insurance companies.
• Other affiliates, such as: your employer whom we insure requesting driver information.

5. Our practices regarding information confidentiality and security:

We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.

6. Our policy regarding dispute resolutions:

Any controversy or claim arising out of or relating to our privacy policy, or the breach thereof, shall be settled by arbitration in accordance with the rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

7. Reservation of the right to disclose information in unforeseen circumstances:

In connection with the potential sale or transfer of its interests, AC Insurance, Inc. and its affiliates, if any, reserves the right to sell or transfer your information (including but not limited to your address, name, age, sex and other information that you provide through other communications) to a third party entity that (1) concentrates its business in a similar practice or service; (2) agrees to be AC insurance, Inc.'s successor in interest with regard to the maintenance and protection of the information collected; and (3) agrees to the obligations of this privacy statement.

8. Acknowledgements:

As a general rule, we do not require signed acknowledgement of information about our privacy policy. The statement is available to anyone visiting our web site at www.acinsure.com and on occasion by mailing or hand delivery to our customers (past, present and potential).