Dear Progressive Customer:

We hope you and your family are well following the severe winter storm that hit Oregon earlier this month.

To give Oregonians in Lincoln, Tillamook, Clatsop, Columbia and Yamhill counties who were affected by the storm time to recover without the fear of losing insurance coverage, the Oregon Department of Consumer and Business Services has issued an emergency insurance order. The order designates a time period between December 3, 2007 and January 3, 2008 during which insurance policies cannot be cancelled or not renewed as a result of filing a claim or not paying the premium, unless the customer requests it.

We are writing to answer some questions you may have about the impact of the order on your Progressive policy. If you have any questions we haven't addressed below, or if you simply want clarification, please don't hesitate to contact us anytime, day or night, at the phone numbers listed below. We appreciate your business and want to help you in any way we can.

How will the emergency order affect my Progressive insurance policy?
During the period of the emergency order, December 3, 2007 through January 3, 2008, your policy will remain in effect unless you ask us to cancel it. The order applies to all Progressive policies, including those covering automobiles, motorcycles, boats, recreational vehicles and commercial autos.

What will happen if my policy is supposed to renew during this time period?
If your policy is scheduled to renew during the time period of the emergency order, we will send you a renewal offer and bill as usual. If you want to renew your policy, you can pay the bill when you receive it, or you can wait and pay the bill when the emergency order is lifted. Your payment will need to be received or postmarked by January 4, 2008. Essentially, the emergency order extends the due date of your insurance payments.

Does the order mean I will get free insurance coverage during this period?
No. You will still be responsible for paying for your insurance coverage, but you will not need to pay for it until the emergency order is lifted. Your payment will need to be received or postmarked by January 4, 2008. For this reason, we recommend that you continue to make your regularly scheduled payments if you are able to do so. This will avoid your having to pay a large lump sum after the order is lifted.

Will the order affect payments made by Electronic Funds Transfer (EFT), where payments are automatically deducted from my bank account?
If you've signed up for EFT, Progressive will continue to withdraw your insurance payment from your bank account as usual, unless you ask us to stop. If we attempt to withdraw a payment and there are insufficient funds in your account, however, your policy will remain in effect as long as payment is received or postmarked by January 4, 2008. If our attempt to withdraw funds during the period covered by the order results in any penalties or fees for insufficient funds, please contact us and we will make sure that you are not responsible for the fees.

Thank you for choosing Progressive.

If you have questions about the effect of the Oregon emergency order on your Progressive policy:

• Progressive Direct customers: 1-800-888-7764
• Progressive Agency customers: 1-800-925-2886