Re Broker Binding Authority

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					May 16, 2006

                                    Re: Broker Binding Authority

To All Our Alberta Brokers:

We wish to take this opportunity to remind all Brokers that their binding authority for submitting new
business to Kingsway is 72 hours (3 working days) from the effective date of coverage, as noted in the
Company’s rate manual.

We are receiving many applications that are outside of this 72-hour window. Part of the Risk Sharing
Pool’s requirements for grid business is for the underwriting company to cede a risk within 15 days of the
policy inception date to ensure acceptance into the pool. Taking into consideration processing time, the
15 day processing time requirement can be difficult to meet if an application is not submitted promptly
upon binding.

In the event that binding is urgent or required over a weekend or holiday whereby the 72-hour time
frame may not be met, we suggest that a faxed copy of the completed application, the temporary liability
card, and the cheque or PAC information be sent immediately upon binding. In this case, the time frame
by which Kingsway must receive the original documents is extended to 5 working days.

Please direct this bulletin to your staff to ensure that this procedure is understood and followed. We
appreciate your cooperation in this matter.

Thank you for your continued support. If you have any questions, please contact us directly at 403-255-
9222 or 1-888-805-4647.

Yours truly,

Kim Hill
Spomenka Vujanovic

Personal Lines Underwriting Supervisors

Kingsway - Your Specialty Insurer, Our Operating Principles...Fair, Accurate, Courteous & Timely.

Kingsway General is a leading insurer of Transportation, Commercial Automobile, Non-Standard Personal Automobile and other
specialty insurance product lines and is a strong supporter of the independent insurance brokerage network. Kingsway General is a
wholly-owned insurance subsidiary of Kingsway Financial Services Inc. whose common shares are listed on the Toronto Stock
Exchange and the New York Stock Exchange.

                  Suite 200, 7101 – 5 Street S.E., Calgary, Alberta, T2H 2G2
      Phone: (403) 255-9222 or 1-888-805-4647 Fax: (403) 255-9224 or 1-888-705-4647