Response Insurance Announces Withdrawal of Cancellations and Non-Renewals Due to Disaster Declaration

MERIDEN, Conn., Jan. 3, 2008 -- The Response Insurance Group of Companies, including the Washington licensed National Merit Insurance Company, announced it would voluntarily comply with Washington Insurance Commissioner Mike Kreidler's request related to its auto insurance customers in FEMA-declared disaster counties.

As a result, Response will withdraw insurance cancellations or non-renewals issued or effective between "one week prior" to Dec. 3, 2007, and is making adjustments to ensure that such notices will be delayed until after January 10, 2008, for auto policies in effect in FEMA-declared disaster counties of Washington. In addition, the Company will extend the time limit effected policyholders have to transmit any information or funds until January 10, 2008.

"Response is pleased to take this action, which we hope will help ease the pain of our customers impacted by recent weather conditions," stated Mory Katz, CEO of the Response Insurance Group.

The announcement relates to customers insured by National Merit Insurance Company, Response Insurance Company, Response Worldwide Insurance Company, Warner Insurance Company, and under the Company's Teachers' Insurance Plan(TM) program in Grays Harbor, Lewis, Mason, Pacific and Thurston counties.

The Response Insurance Group is a national direct-to-the-consumer auto insurer headquartered in Meriden CT and has a full-service claims office in Bellevue WA that covers 12 states. The Company was formed in 1995 and currently has customers in 42 states and Washington DC.