TO OUR CUSTOMERS:                                                                           
May 2, 2006

OUR BROKER COMPENSATION

Thank you for your business.  As your Independent Insurance Broker, we purchase insurance products and services on your behalf that are available, affordable, and understandable.

Our role is to provide you with the best insurance value that combines coverage, service, and price.  We also provide personalized, quality service that includes professional insurance advice, ongoing policy maintenance and claims support. When any issue arises regarding your insurance coverage, we are your advocate, using our professional experience to best represent your individual interest.

Brokerage compensation is part of your insurance premium. For your benefit, we have listed below Insurers that we represent and have included the range of compensation each provides as a percentage of your overall premium. 

		Auto		All Other Lines of Business
American Home Assurance Co.		Not Written		20%
Aviva Insurance Company *		7.5% - 12.5%		15-20%
Economical Mutual Insurance Co. *		7.5% - 12.5%		15% - 20%
Elite Insurance Company		12.5%		Not Written
The Guarantee Company		Not Written		20% - 25%
ING Insurance Company *		7.5% - 12.5%		15% - 20%
Jevco Insurance Company		10% - 12.5%		Not Written
Kingsway General Insurance Co.		5% - 12.5%		9% - 20%
Lombard Insurance Co. *		7.5% - 12.5%		15% - 20%
Markel Insurance Co.		10%		Not Written
Nordic Insurance Co. **		7.5% - 11%		Not Written
Pafco Insurance Co. *		10% - 12.5%		Not Written
Pembridge Insurance Co. *		10% - 12.5%		20%
Perth Insurance Co. *		10% - 12.5%		20%
Pilot Insurance Co. *		10% - 12.5%		20% - 22.5%
Royal and Sun Alliance Ins. Co. *		7.5% - 12.5%		15% - 20%
St. Paul Guarantee Insurance Co.		Not Written		7.5% - 25%
Zurich Insurance Co. *		7.5% - 12.5%		15% - 20%

**commission is capped at $250.00 for personal automobile insurance

This commission percentage is paid annually for both new business and renewals.

Should there be an increase in the commission schedule we receive from your insurer, or, any other material change that affects compensation arrangements, we will notify you.

In order for us to maintain strong relationships with quality insurers, we work with each to provide the type of business they desire. The Insurers with an asterisk noted above recognize our efforts through a Contingent (Profit) Commission contract. Payment of this Contingent (Profit) Commission may depend on a combination of growth, profitability (loss ratio), volume, retention and increased services that we provide on behalf of the Insurer. Contingent (profit) Commission is not guaranteed. For detailed information on Contingent Commission, please go to the individual company’s website.

Your Insurer will be providing you with a Consumer Code of Rights and Responsibilities which will be forwarded to you with your new business policy. If you have any questions regarding this or any other aspect of your insurance please contact us.

Lyon & Butler Insurance Brokers Ltd.            

Ray Arndt