The information packet mentioned above includes information listed below:

Description of Our Company’s Operations

· Brief description of our business operations

· Nature of our business

· Primary services we provide

· Proposed services being considered/planned

· Projection of our annual sales for 20__

· Estimated annual sales with source information

· Our locations

· Number of employees...by location

· Payroll dollars

· Listing of our insurable assets...detail by location

· Our company brochure with our marketing materials, internet web page, etc.

Copies of Current Insurance Policies (Excluding Premiums)

Historical Losses (Last 5 years)

· Currently valued...summary of paid & reserved amounts by period and by line of coverage

· Detailed explanation of all losses of $__,000 or more

· Copies of loss runs

Broker/Agent/Firm Qualification Form

All participants must complete this Qualification form to be eligible to participate in our selection process. Please provide answers to the following questions in the table that follows.

Question	Response
Overview of Your Company’s History
q What is your corporate mission statement?
q Describe your corporate philosophies.
q Explain your ownership structure
q How many years have you been in business?
Your Company’s Client Base
q Describe the diversity (industry) of your client base
q What transportation industry expertise does your firm possess?
q Describe your expertise regarding the railroad industry?
The Service Team that Will Support Our Company
q Illustrate the account team structure: o List the names of your proposed account service team and describe each member’s service role o Who will the day-to-day contacts be for the account? o How would your account team service our account better than your competitor?
q How do you guarantee the continuity between the account team and our staff?
q What type of service guarantee are you willing to offer us as an assurance that you will provide the level of service we expect?
q Attach resumes of the service team members. Include: o Qualifications o Expertise; technical/industry specific
Your Marketing
q Who are your top insurance markets, and what is your premium volume with each?
q How long have you had your relationship with each of the markets noted above?
q Describe the measures your firm takes to proactively stay abreast of changes in the marketplace - merger/acquisitions, pricing trends, etc.
q Explain how you would use different or alternative markets/programs to reduce costs and enhance our current Insurance and Risk Management programs

Your Risk Management Offerings
q Describe specific techniques and procedures, which may be used to assist us in identifying current and anticipated new exposures to accidental loss
q Explain and give an example of the skills and experience your firm has in designing insurance or other risk transfer techniques that fit with Company’s business.
q Describe the steps you would take in reviewing our current program and designing a new program.
q What specific improvements do you believe would be beneficial to our risk management program?
q How would you keep us informed of current developments in alternative markets and programs? Specifically, describe your captive experience.
q Give an example of a creative or innovative approach in program design you developed to meet a transportation service customer’s need client’s objectives.
Your Risk Control Services
q Loss Control: o Describe your loss control expertise as it relates to our industry. o Briefly explain your loss control practices for the following areas: ü Fleet safety ü Work injury ü Environmental ü Property ü Employee education/training
q Claims Cost Control: o Describe capabilities and procedures in the following areas: ü Claim handling procedures ü Medical management ü Cost containment ü Other o Do you have in-house web-based loss recording and analytical systems? If yes, describe and advise if these are available to us. If no, what services do you use?
q Claims Management: o Do you provide claims handling services? o How will you keep us informed in the claims settlement process? o How often will you review claims and reserves? o Can you assist in self-insured claims administration?
Your Information Technology
q Describe your commitment to keeping pace with technological advances.
q Do you have on-line access to carrier/TPA systems? If yes, are these same systems available to us?
q How will your information technology capabilities directly benefit us?
q Describe how your company communicates and shares information electronically.
Your Employee Benefit Services:
q Describe the process through which you would evaluate the effectiveness of our employee benefits program.
q What employee benefit services and resources does your firm provide that differentiate you from other brokers/consultants?
q Describe your firm’s ability to monitor legislative developments, compliance issues, and insurer solvency. How will this information be communicated to us?
q Describe how your firm would assist in the communication of our benefits program to current and prospective employees.
q Describe your local and national access to local health care networks and amount of negotiated discounts.
q Describe the innovative mechanisms your firm uses to minimize insurance and related fixed costs.
q Explain your fee arrangement and any commission structure with service providers.
References
q Provide five references that are reflective of your experience with service firms with revenues of $20-100 million who support the transportation industry. o List contact name, title and phone number of three (3) firms who you currently service o List contact name, title and phone number of two (2) firms who you previously serviced but are no longer clients

Exhibit C

– an outline of a typical risk management program’s document

COMPANY NAME

INSURANCE AND RISK MANAGEMENT POLICIES AND PROCEDURES

A. PURPOSE

The purpose of this document is to establish policies, procedures and responsibilities for the Insurance and Risk Management activities for Company Name its divisions and subsidiaries. The goal is to avoid losses that will significantly impact the financial condition of the Company and to reduce claims costs for both past and future claims.

B. POLICY RESPONSIBILITIES

1. This policy is issued and maintained by the Treasurer who is responsible for its interpretation and revision.

2. The policy will be communicated by the Treasurer to appropriate personnel, made available to Treasury staff on the G:/Treasury/Insurance directory, and revisions will be communicated by e-mail on a timely basis.

3. Exceptions and changes are reviewed and, if appropriate, approved in writing.

4. The Treasurer will review these policies and procedures at least annually.

C. ENFORCEMENT The Director of Risk Management and Treasurer are responsible for reviewing compliance with this policy.

D. AUTHORIZATION LEVELS All authorizations for contractual commitments and payments will be in compliance with the Corporate Financial Policies and Procedures Authorization Policy (“Authorization Policy”).

E. DUTIES AND GENERAL RESPONSIBILITIES The Corporate Risk Management function has authority, within the limits of the Company’s Authorization Policy, and responsibility for directing and coordinating all risk functions. It is responsible for:

· Risk Analysis

· Purchase of Insurance

· Claims management

· Selection of Insurance agents and brokers

· Coordinating information and acting in an advisory capacity with regard to Risk

Management matters (fire protection, safety, security, contracts and legal documents).

· Communicating with Senior Management concerning all Risk Management matters.

· Corporate Risk Management does no accounting activity. All accounting activity for

Corporate Risk Management is done by the Stamford General Accounting Group.

F. CORPORATE RISK MANAGEMENT FUNCTION ACTIVITIES

I. Risk Analysis

a. Maintain close communications with all operating and staff functions to keep abreast of Company activities to ascertain the nature and extent of potential loss.

b. Analyze frequency and types of losses to determine the Company’s claim experience.

c. Advise operating and staff functions on insurance and loss prevention measures, administrative techniques (training), and development of information on risk situations.

II. Control Exposure to Loss

Working closely with other Company functions (Safety, Facilities, the property insurance company(s) and property loss consultants) advise the most suitable and economic arrangement of property protection and safety, both in building design and operating procedures.

III. Insurance Protection

a. Determine, on the basis of Company policy and approved budget, analysis of loss exposures and in discussion with Senior Management, those exposures to be insured and those to be retained at the time of insurance renewals. This includes a determination concerning the appropriate limits of coverage for liability and financial protection insurance to be purchased, the financial condition and business practices of insurance companies under consideration and the concentration of insurance company risk.

b. The Company’s insurance program is a global program managed by the Director, Risk Management. No insurance may be purchased outside of this global program.

c. Work with other corporate and operational personnel in developing insurable values for property.

d. Select qualified Insurance Broker(s) (See Client Service Agreement).

e. Gather exposure/renewal information, which is provided to the insurance companies through the Insurance Broker. (See Client Service Agreement)

f. Work with Insurance Broker to assess and monitor each insurance company’s financial condition both at renewal and on an on-going basis. (AM Best) (See Client Service Agreement)

g. Advise Senior Management of changes to an insurance company’s financial rating.

h. Work with the Insurance Broker to review the current insurance program, identify weaknesses, and monitor concentration of risk.

i. Evaluate acceptability of insurance premiums. (See Client Service Agreement)

j. Immediately notify the Insurance Broker and all relevant insurance companies of any major changes in the business (example: acquisitions or divestitures).

k. Develop, communicate and forward the company approve Insurance Section language for use in all third party contracts (leases, service, etc.) to all appropriate functions (Real Estate, Purchasing, Marketing, etc.). Only exceptions are to be reviewed by Corporate Risk Management.

IV. Claims Management

a. The Corporate Risk Management function selects and negotiates all Third Party Administrator (“TPA”) agreements and general liability Claims Handling Procedures.

b. Claims Reporting:

1) Appropriate department (Fleet, Safety, HR, Legal) will call and report general liability (Auto, General and Workers’ Compensation) claims to TPAs;

2) All other claims (Financial Protection, Crime, Property, etc.) will be reported to Corporate Risk Management for further processing with the insurance Broker and/or appropriate insurance company.

c. The TPAs will report the status of all open claims either monthly or quarterly, depending on the year of loss. Older claims will be reported quarterly.

d. Open claims reports will include at a minimum: new claims, current status of prior existing claims, and claims payments.

e. Corporate Risk Management working with the Insurance Broker will meet with and audit the company approved TPAs’ activity at least annually. The audit will verify that the TPA’s claims management activity is in compliance with the company’s Special Handling Instructions. (See attached).

f. Review all open claims reports provided by TPA when presented; immediately address and reconcile any issues of concern.

g. At least annually, audit all open claims in excess of $25,000 and a random sample of claims under $25,000 and loss reserves,

h. Participate in investigation of major losses, and authorize settlement of non-litigated claims (within Company Financial Policies and Procedures). Litigated claims are managed jointly with the Legal Department. The Legal Department has claims settlement authority on all litigated claims.

i. Review insurance company loss settlements and recoveries.

j. Claims payments:

1) Self-insured FTR claims – Under the existing services contract, the TPA has direct access to a company bank account and makes all claims payments from said account. Sr. Financial Analyst, Rochester, NY reconciles payments with bank statement on a monthly basis. TPA has full discretion to make an individual payment of up to $25,000 on any qualified claim or loss.

2) Self-Insured and Insured Citizens Claims – Company will fund a claims reserve account at the beginning of the year. TPA will make all payments from the claims reserve and reports all activity on a regular basis (monthly or quarterly). TPA will request reserve replenishment when it falls below a predetermined amount.

k. Work with other Company departments (Fleet, HR, Safety, Legal) on pertinent claims matters.

V. Annual Budget

a. Obtain and review insurance cost estimates from the Insurance Broker (see Client Service Agreement) and other sources (network groups, insurance industry publications, professional associations).

b. Work with Treasury and Accounting to develop the Insurance/Risk Management annual budget, including an allocation basis of costs to different business units.

c. Meet with Senior Management to review and obtain approval for the Insurance/Risk Management annual budget including expected insurance coverages, premiums and loss reserves for self-insured risks.

d. Provide the approved budget and allocations to General Accounting to set up the Insurance/Risk Management accruals.

e. Track actual Insurance/Risk Management premium expenses, claims payments and changes in loss reserves against budget and cumulative accruals.

G. LIST OF INSURANCE POLICIES

            Automobile Liability
            Commercial General Liability
            Workers’ Compensation
            Excess/Umbrella Liability
            Owners’ Contractors Protective Liability
            Non-owned Aircraft Liability
            Railroad Protective Liability
            Property Insurance
            Directors & Officers Liability
            Outside Directors Liability
            Fiduciary Liability
            Blanket Crime
            Special Contingency
            Bonds

Re: Risk Management & Insurance Broker/Agent Selection Proposal Invitation

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