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SALUTATION

December 18, 2006

Honorable Matthew Denn Insurance Commissioner State of Delaware Rodney Building 841 Silver Lake Boulevard Dover, Delaware 19901

Dear Commissioner:

In compliance with instructions contained in Certificate of Authority No. 06.041, an examination

has been made of the affairs, financial condition and management of the INSURANCE

PLACEMENT FACILITY OF DELAWARE

hereinafter referred to as “Facility,” “Fair Plan,” or “IPFD”. The examination was conducted at

530 Walnut Street, Philadelphia, Pennsylvania. The report of such examination is respectfully

submitted herewith.

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