610 Freedom Business Center | Suite 110 King of Prussia, PA 19406 ph 610.992.0022 | fax 610.992.0021 www.aamga.org

March 5, 2017 Dear AAMGA member: It’s time to bring everyone up to date with the latest developments on the potential merger of the AAMGA and NAPSLO. Here are the highlights: Background Presently, the management of the AAMGA is contracted with Accolade Management Services, LLC, which provides full service management solutions to associations, foundations and corporate entities. Bernie Heinze, President and CEO of Accolade Management, has served as Executive Director of the AAMGA since 2000. The AAMGA and NAPSLO have long maintained open channels to coordinate the programs and services we offer to members. As part of this dialogue, the leadership of the AAMGA and NAPSLO advanced into consolidation discussions over the last 12 months. A joint Merger Committee was formed, consisting of an equal number of AAMGA and NAPSLO representatives, to further explore the feasibility and benefits of a merger. The AAMGA Board determined that a successful merger would result in the consolidation of the executive director role for the two organizations, with Brady Kelley of NAPSLO assuming that position. In the event of an unsuccessful merger, the AAMGA would immediately explore two options for its future governance: (1) conversion of AAMGA management from the current contractual arrangement, to a structure in which the management staff would be employees of the AAMGA or (2) maintain the current contractual arrangement and immediately conduct an RFP (Request For Proposal) search for a management firm to lead the AAMGA forward. We are pleased to report that the Merger Committee unanimously approved a Letter of Intent that outlines the basic structure of the proposed merger, key attributes of the merged organization and an outline for how the merger will be considered, voted upon and implemented. On February 10th, the AAMGA Board provided its preliminary approval, which will be considered by the NAPSLO Board this week and is subject to final approval by both Boards no later than April 14th.

Benefits Anticipated from Successful Execution We are very excited about the developing proposal and the benefits it will offer to all members.

A Heritage of Integrity and Professionalism

610 Freedom Business Center | Suite 110 King of Prussia, PA 19406 ph 610.992.0022 | fax 610.992.0021 www.aamga.org

1. A single, rebranded organization representing today's universe of wholesale, specialty and surplus lines insurance market professionals. It will be uniquely capable of promoting the value of wholesale distribution with a stronger, unified voice. 2. A renewed energy and sense of purpose, which will revitalize our joint membership as we join forces. 3. A simplified offering of programs and services, eliminating the current overlaps resulting from the two existing organizations. 4. Refinement and consolidation of the existing networking events offered by the AAMGA and NAPSLO designed to more economically meet the needs of members. The expected outcome is significant cost savings (time and travel), that strengthens the value of networking forums focused on the delegated underwriting and transactional brokerage communities. 5. A weightier influence in our legislative and regulatory advocacy for the wholesale, specialty and surplus lines industry, relying on our consolidated voice to project power and a unity of purpose. 6. Improved synergy in committee and volunteer activities. 7. Leveraging the strengths of both organizations in the delivery of an expanded curriculum of education and professional development that meets, and frequently exceeds, individual needs through all phases of career development. 8. A unified AAMGA UFO and NAPSLO’s Next Generation focused on building future leaders and perpetuation of talent and expertise for the wholesale, specialty and surplus lines industry. 9. Maximized college outreach and talent recruiting initiatives for members. 10. Synergy and cost savings through consolidation of the management of two existing organizations. The focus of the spring meeting will be on delegated authority, relationship building, and leadership with the greater intimacy found at existing AAMGA Annual Convention and the NAPSLO Mid-Year Leadership Forum. It will include a venue for people in the program business to get together and provide support for additional organizations in the underwriting space such as The USA Alliance and NAGA. Moving Forward In another important development, the AAMGA Board has completed a legal analysis and validation of the voting requirements for the consolidation of the AAMGA and NAPSLO. The analysis was conducted by independent legal counsel retained by the AAMGA Board. The research uncovered a significant finding; under applicable Missouri law which governs the Bylaws of the AAMGA, the voting requirement is a two-thirds vote. Accolade has been informed of this material development and the Board of Directors has decided to proceed with the merger under this premise. A Heritage of Integrity and Professionalism

610 Freedom Business Center | Suite 110 King of Prussia, PA 19406 ph 610.992.0022 | fax 610.992.0021 www.aamga.org

A copy of the proposal and all the additional documents will be available late next week on a website created for that purpose. The website address is WSIA.org. You will begin receiving additional communications from the Merger Committee as we move through this process. In the interim, until the membership vote has occurred, the Board, Committees, and Accolade will continue their business as usual operations. Thank you for your support as we continue this journey toward a stronger and sustainable organization. We have come a long way since 1926. Our members and leaders together navigated around and over one obstacle after the next. It is our turn to lead our membership into the future with confidence and a fresh, positive outlook. I am counting on your help to reach that destination, and finish the mission. We will keep you posted on future developments, as they become available. Separate communications will be directed to the AAMGA UFO and NAPSLO Next Gen to address issues unique to those organizations. It’s been my pleasure to serve as your President in such exciting times. Thank you.

A Heritage of Integrity and Professionalism