OPA/CERCLA VESSEL CERTIFICATES OF FINANCIAL RESPONSIBILITY AS OF 06/04/96 First Line 1509 575 METHOD OF GUARANTY Dry Cargo Tanker Tank Barge MODU Passenger Fishing Utility TOTALS 2152 0 30 8 30 Shoreline 902 505 0 1 28 11 1 1448 WQIS 245 28 1391 24 109 204 812 2813 Financial Guaranty 248 630 1002 139 5 Self-Insurance 80 46 1574 115 49 25 187 2076 Surety Bond 11 45 9 0 0 0 7 72 Other Insurance 189 10 2 0 2 549 61 813 TOTALS 3184 1839 3978 279 223 797 1340 11640 Dry cargo includes bulk carriers, containerships, reefers, ro-ro's, etc. Tanker includes crude carriers, product carriers, chemical tankers, OBOS, LPG and LNG carriers Fishing includes fishing and factory vessels Utility includes deck barges, tug/tow boats, OSVS, research vessels, and oil spill response vessels Other Insurers include Heddington Insurance, Ocean Marine Mutual P&I, Gyosen Chuokai, Highlands Insurance Sphere Drake, Travelers, ILU and Lloyds The 1839 tank vessels total 83,428,503 gross tons and approximately 166,857,006 deadweight tons. SHORELINE AND FIRST LINE ASSETS Question. Do Bermuda based Shoreline and First Line have sufficient assets in the United States to cover their guarantees? Answer. Both firms have met the financial risk criteria that have been used for years not only by the Coast Guard but also the Maritime Administration and the Federal Maritime Commission in approving insurers. There is no requirement for any insurance guarantor or insurance company to have sufficient assets in the U.S. to cover their guaranties. Both Shoreline and First Line, however, are required to adhere to applicable solvency requirements of Bermuda where they are both domiciled and regulated. SHORELINE AND FIRST LINE ASSET LOCATION Question. If so, what are these assets and where are these assets located? Answer. Both firms have met the financial risk criteria that have been used for years not only by the Coast Guard but also the Maritime Administration and the Federal Maritime Commission in approving insurers. There is no requirement for any insurance guarantor or insurance company to have sufficient assets in the U.S. to cover their guaranties. Both Shoreline and First Line, however, are required to adhere to applicable solvency requirements of Bermuda where they are both domiciled and regulated. Question. DIRECT ACTION ON SHORELINE AND FIRST LINE How would a claimant take direct action on Shoreline or First Line located in Bermuda? Answer. All guarantors must have a U.S. agent for service of process and receipt of claims. This is the long standing requirement for all guarantors, including foreign based Protection and Indemnity Clubs and other foreign based insurers. Shoreline's agent is the law firm of: Hill, Betts & Nash One World Trade Center New York, NY 10048 First Line's agent is: 1025 Vermont Ave., NW |