R2011-153 ACCEPTING BID AND AUTHORIZING CONTRACT WITH TRAVERLERS COMPANIES, INC.

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1 GUIDE TO BEST'S FINANCIAL STRENGTH RATINGS - INSURER A Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations.The rating is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength,oper- ating performance and business profile. Financial Strength Ratings-Insurer Rating Descriptor Definition A++,A+ Superior Assigned to companies that have, in our opinion, a superior ability to meet their ongoing Insurance �? obligations. A,A- Excellent Assigned to companies that have,in our opinion,an excellent ability to meet their ongoing insurance obligations. B++,B+ Good Assigned to companies that have,in our opinion,a good ability to meet their ongoing insurance obligations. B,B- Fair Assigned to companies that have,in our opinion,a fair ability to meet their ongoing insurance obliga- tions.Financial strength is vulnerable to adverse changes in underwriting and economic conditions. C++,C+ Marginal Assigned to companies that have,in our opinion,a marginal ability to meet their ongoing insurance obliga- tions.Financial strength is vulnerable to adverse changes in underwriting and economic conditions. al' C,C- Weak Assigned to companies that have,in our opinion,a weak ability to meet their ongoing insurance obliga- J2 tions.Financial strength is very vulnerable to adverse changes in underwriting and economic conditions. D Poor Assigned to companies that have,in our opinion,a poor ability to meet their ongoing insurance obliga- tions.Financial strength is extremely vulnerable to adverse changes in underwriting and economic con- ditions. E Under Assigned to companies (and possibly their subsidiaries/affiliates) placed under a significant form of 1 Regulatory regulatory supervision,control or restraint-including cease and desist orders,conservatorship or reha- Supervision bilitation,but not liquidation-that prevents conduct of normal,ongoing insurance operations. F In Liquidation Assigned to companies placed in liquidation by a court of law or by a forced liquidation. S Suspended Assigned to rated companies when sudden and significant events affect their balance sheet strength or ' operating performance and rating implications cannot be evaluated due to a lack of timely or adequate information. Rating Outlooks Assigned to an interactive Financial Strength Rating to indicate its potential direction over an intermediate term,generally defined as 12 to 36 months. Positive Indicates possible rating upgrade due to favorable financial/market trends relative to the current rating level. Negative Indicates possible rating downgrade due to unfavorable financial/market trends relative to the current rating level. Stable Indicates low likelihood of a rating change due to stable financial/market trends. ' Rating Modifiers Modifier Descriptor Definition u Under Review Indicates the rating may change in the near term,typically within six months.Generally is event driven,with pos- itive,negative or developing implications. pd Public Data Indicates rating assigned to insurer that chose not to participate in A.M.Best's interactive rating process. s Syndicate Indicates rating assigned to a Lloyd's syndicate. Affiliation Codes ' Indicates rating is based on a type of affiliation with other insurers. g I Group p I Pooled r I Reinsured Not Rated Categories Assigned to companies reported on by A.M.Best,but not assigned a Best's Rating. NR-1:Insufficient Data. NR-2:Insufficient Size and/or Operating Experience. NR-3:Rating Procedure Inapplicable. NR-4:Company Request. NR-5:Not Formally Followed. Rating Disclosure A Best's Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations.The ratings are not assigned to specific insurance policies or contracts and do not address any other risk,including,but not limited to,an insurer's claims-payment poli- cies or procedures;the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud;or any specific liability con- tractually borne by the policy or contract holder.A Best's Financial Strength Rating is not a recommendation to purchase,hold or terminate any insur- ance policy,contract or any other financial obligation issued by an insurer,nor does it address the suitability of any particular policy or contract for ' a specific purpose or purchaser. In arriving at a rating decision,A.M. Best relies on third-party audited financial data and/or other information pro- vided to it.While this information is believed to be reliable,A.M.Best does not independently verify the accuracy or reliability of the information.For additional details,see A.M.Best's Terms of Use at www.ambest.com. Best's Financial Strength Ratings are distributed via press release and/or the A.M.Best Web site at www.ambest.com and are published in the Rating ' Actions section of BestWeek®.Best's Financial Strength Ratings are proprietary and may not be reproduced without permission. Copyright©2010 by A.M.Best Company,Inc. Version 041410 %BESr jsers\1mi11er\Proposa1s\Decatur Transit Management 2011.docx 9/9/11 5