east - mn.gov

62-CV-11-9400

Property and Casualty Companies

QUARTERLY STATEMENT AS OF JUNE 30, 2013

OF THE CONDITION AND AFFAIRS OF THE

MINNESOTA SURETY AND TRUST COMPANY NAIC Group Code NAIC Co. Code 30996 Employe~s ID Number 41-0665921

Organized under the Laws of State of Domicile Minnesota

Country of domicile Unilad States

Incorporated/Organized: August 28, 1945 Commenced Business: August 28, 1945

Statutory Home Office 85 7th Place East, Suite 500, St. Paul, MN 55101-2198

Main Administrative Office 65 7th Place East, Suite 500, St. Paul, MN 55101-2198

Mail Address P.O. Box 133, Farmington, CT 06034

Primary Location of Books and Records 85 7th Place East Suite 500, St. Paul, MN 55101-2198

Internet Web Site Address htlp://mn.aov/commarcwtopics/enlorcement/liguidaUonsJsp

Statutory Statement Contact Rick Theisen (651) 297-4297

OFFICERS (None-Ccmpany in Liquidation)

OTHER OFFICERS None- Company In Liquidation)

DIRECTORS DR TRUSTEES None- Company In Liquidation)

State of Minnesota County of Ramsey } ss T h.a olficcus ol trks reportng enlily being dUy swotn, each depose snd 811( lhal they we I he describod offtce~r Cll said repOOino enl~y , 81\d lhM on the l&fl•)rtlng Pf!kJd sla~ above, ell ol the herell'l doscribed assets were llle ab901ulo proper1y or lhe or the said reporYng enUty, fn:le and dear rrom 30Y liens orclatmSJitlsreon, e~ceplos herein GtatOO, Wid \hal this Blalemon~ to~elhet Mill reloled exhlbils, schedules ood explanal.lonalhtveln OCinlaiood, ann&led or ref&ITed lo, Is: e run 91'KJ ~ue sta:l.ement or ell the assets and liabillles a1d ol the condition S1d affara ollhe sa'~ roporling entity as or the ropo~tno period &1atod aboYe, arrd of Ksiooome 8f1d dod1Jc4iorrs lh01e nom lor lhe period ondud, an<l ha•e been oo:nplelod ~ 8CCOidancev.1lh lhe NIIIC Ann~ Statement IOfdN<::Oon& a'ld Ac:c;ountJn.] Pr3Gl.K:es lWld Ptocedure& manual excep( 60 I he extenllhat:: (I) dole I aN m.ay d'ltw; or, (1) tnal ct~te rulos or regulallons r~tJro dUferences In !1~41' ·1 .Htt~o~l H> ··r,o.t fl'lP~,;~~a r·u~ ·Y'I1\ilt,;.. I'Yort-""Jtntf tkJ~•··.It'lnf r, m "·fl ~ .• ,~tnl?~ I ..f I~'~'• ··1·1 Furlhe r more,lheseopoollhis&llesta~onbylhe

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• 0' "' • ~ "'"''"'' • .,,_ ~- '""' ' • .,,, o Ok~ .0~~

-9kzn,k .l.~ Zo / 3 -t0~Rick:-'::::T~"""7c:f-'--n --'--'1'-- """'""-----Chief Examiner, Special Deputy Liquidator

62-CV-11-9400

STATEMENT AS OF JUNE 30, 2013 OF THE MINNESOTA SURETY & TRUST COMPANY

ASSETS CUtiC•tl Year

NeiAdmiHed Assets December 31

(Column 1 Prior Yoar Nel Nonadmitted minus Admitted

~=-------------------------------------------~·As~••~ls~--c~--~As~s~•~~--- I ~C~o~lu~m~n~2l~~As~se~l~•~t I iJv.,,ll! 988,4~ I 988.441 • _!, 107.197 2:'\ol\h·

2.1 Pro~••uo\J ~10~1<> ~.7 rollllll•~• SIP1:H

31. •lu-ln"'q, "'' •l!lll<'~nt Jtlil~tl..n --'J'ir'iu.:t U•om 4•ollnOJ -

4 ~u.:.to$:e ~ J.l§i ..:.lea~ ~#Jiiii< ~T~l. _:__:To:~----~:·-- ·-·_ •I ~'!'~' ~d_I9 1 I~•~OU:il<lo ~llnr.o~ojo~;j •·~u•1111'-'!.JI ~ li'•Q(Wllos rokf lor silii (lo!J!i S ol1(;<jlll\nn"'_.j

s ~·~·.J1~ ~M~iiOE -PWfff'~"iiij.,.,.i!"''t!<iirJ<i.iiOi ~ -P';iii:j' 6 Col\lloc1 1<101" 70·.iMIIUS ------ •. - ---······--6Uuinrlli~rJ--rt'-'t"- ---- --·· · • 9 hutlliv· · 1 ~~ lfll:ufiiiQ-\ ---

10 's'roum • .,,,.,11, nwhiiii• H!"col,r~'!'!. ,!!UiJS:J~"'!i,i;,'hl 11 ~~~~ \\IITI m IQ!_ln~_!lol ~5SQ~ _ •• . ••

12 l\U11~1I~~ ~ 1 ~''!'.'";'1!~1~.~ t'!:!' I jl1r. ,ql,r !.."\!' II} 13 fore ~tlal•l• '<>lt• t~-> v<Xl cll(lor I " ow..II0•4 o"IY) 14 fnvrstmen•l•lr(ulf!l4iuo-a~l1 i!C"':IU9d. - · --- ___ HI~

15 Po om~"'' 111:<1 '""'~ill f"' t:o 1\!J.~:X~'«r•d ~•C!'Ir • v•· ,. JNIIO~ ~ 1n -~~ q/ •0Jvt10.!• __ _ --~

;Ill<!

1& 1 0~/!IW<l l.l''lllf' •"' ao•mr. holY!(&~ ~nd lllal.JIImeJI I! lloo>nrli>,H&fQIIuJ nr.f !101 yo/ d••u {"W'IJ~ r j__ "'l_:!!OU b'!!_unbol!<Jd ~'"""'"i •SL

16 fl.um~ur•me< •a·t~MUi~ffilif.ii.~"' .t6.Zfrm!B ~IJ'I:v,; ~"~'ti, ,~~<nmpo1uioL_ lfll/~1~11 f'fl~~~\'ll fl(Q/1\IUif•'.

17'1\m;~,;;~;;,~mlj!li't.jlo,~fiiiil" - . --=-_:_-=-. __ 18 1 r.:r. lntilt;;Ji,;r~ an~·lo qn o ~~to'i7iatol.>; rero,ll.1lilJl1l.lltU onlilror ~iun•oo 18 2 f{~·~~i;;fij, ~ ·- _---- - - ...::._---_ -=-=--=-= -- !li&®

19 Glnm~·~ rutd~ ln'o !1bl<l Qf on dOpa!l•l 20jioct'.,t Med.iiii;,,r.i'.tiV!'i"JII~Onl mso~a<e_ ·- ·--· _.::. = 21 .!2.'!!!"'0 ottJ uo~·P"~.Iudiu l~o'lV<llY~~·~~ ___ ·-

=---=--_

22 Ndl G.:JjuUntll'llltl o>><llli eN ltnl "' ' dvo ro tar ton fllcltil.'oJO loti" 23 R<luJ•tul e< lllii;l ll~l'ti!ll . j,., .'tiJII ·al\0 rll!!!~------ ---- -2~f!th\tu•atillJ•rdotiKirnmo~tli~",)N~-===·==-----2SAclll'~yn,m.,~~o~,!!';l•.~as~•" _ ·----- _ ··- - igg

Total otse~ ooe~ldli>il Sol~nt DI A.xoonlr:.. ~· ~~~~hr.! o\l)oo•••' 1d f'Jni9~1•Jd ~;;~U 26 Aocn_!lr.lt; (llllil 1110 llflo1b\ __ ·- _ . . .. .. _ .... 102.950 1.306 686, q63.681 27 f•~lfllll!lnre ko:n~Jm; ~fe!!ll\~ ~ce~u111~ 'l'ld l'rol!l<taul ~' o\rr.nu~ •• _ 28 T ot~ l (Lro(! 2B llll~ l in~ m 1;409.636 \02 9..'ll 1.306,till6 1.353.681

------------

__ @ 0 2.493 100

1oli ---2.693

62-CV-11-9400

STATEMENT AS OF JUNE 30, 2013 OF THE MINNESOTA SURETY & ffiUST COMPANY

l!J\Illl lrltS, SURPlUS AI'ID OTIIER l'UNIJS I ~,;wmtt 1. ~;n,

Slalllfi&IIIOilt py.,v ..

1.63(

1~150 __ 112.til!o

5.0~ --~

3017! ~ "w r';! l

19 • ~rr!:.

'l~~~d6d.vKIII'l~~----..!.!_ 1~!oct.holden;

1791111 1H IOI

17_!!~s~stnftllsb&ssebsnd~~~dueb~~~ --~-·--18 1

19~

'20 01)'iva!NM

21!:1'•,

, ~~~o:Mrf"t~ i:; ~,,t..,!I L;;._'!~~:..' ------21•·

28 1~bi..U ... ,tlft.i:'t~·llt'''·'tt!k'~~Lil_. .. :o:;'':.:··~··'----:!1) ~"'"'"tft:n ~ - - ~ -------~If ' +;CMrl'l"X'

PJ".!!!P:'-.~-f~~ ---------

.. ·~ .n .~.

34 !'!~-~~-~~~-~~~-!.,, __ , .... ~-· ·------ -~----~"'~lli'-~-~~C--'L----

~~~coomon{nlltll~~-n_'-l~~-------:t6J "tf' t.:!..H"~~~·~~·'u•1 1\

JT Supb.J&uregnpGI~~flaid•sj'l..ine29blY!•~.IHslntlS)P.I(Jt.4 lll'le3ll

62-CV-11-9400

STATEMENT AS OF JUNE 10, 1.01;'1. OF WE MINNESOTA SURETY Ko TRUST COMPANY

STATEMENT OF INCOM PriOf rear

CurMYJl Yoar Prior Year Endod ~ loO.te ~~

UNDER~ITING INCOME

i Lc~ loo .. uroo (Cl:lltll\1 OO:)(!mt ya31 $ l<\81' '1 Duet!

12 .\!lsvmed 2 ~ CJded 2 .. Hoi

31)0 JlOt$B~\pP4rrseiil'lctJIIGd :100 4 O'llor undeM'rtUno e;p•flSII!s lflt\Jrred 52,309 235764 -4700'l2

S Aogregate ~~~~~nt Jol underwri!ing ~liona 6 Total underwri:"g ded~ {LIIlC$ 2 ~hrough 5) 52,309 23551)3 4t7o,::m 1 f*4irom',ll oi~K«f!ckld ~~ 8 N~l undorv.Mng QUI {kml (lm f mlnu& Lh 0 • linG 7) ~ { .. ~ ~~- l it.: _•!11

IN'IEST!BIT IHCOIIE _!.)_:~ '~ :Alii

lOCi TI!'· iffi.f

62-CV-11-9400

STATEMENT AS OF JUNE 30,2013 OF THE MINNESOTA SURETY & TRUST COMPANY

CASH FLOW 3

PrlorYeat Cumml Year Pnor Year 10 Ended

10 Oate OaJs De<:omber 31

1 !'!!mlu_"'Scoll•."~-~~~~lnsur•nr.e 0 0 ' !_&llln •_9~M_nl~ aa:w

0

n:OSO - ZFo4 0 n! 1i! !"710 1 ~~·.n£lli~tll..li_·.t.~~,.

13 0116 97,J8D ~ !!>'_[(II.,. It l) raw ~- lliJnoft (161) {9611 Md los,s related u~tlllllt6

0 •.,~ 1(.~""'-'"' ~prald ~n.111 Sl'l)la~ 1\1'~~ Plllll!(l~a f.dl ~_tr:<ll:lt!ll u-,-t!lflhl ~-~ 6Jd_56 MD 541 J L2:t~~r_~:u;•t~_:t eM \\1U&In:t~ ktr lliJI ·1r.kln~

al~oaldloooic'•llo>i~f! --~---~----

~ ~u~;::~_ '"~ "'"'''llfl 1rtr.mle 18'"-' ll'lld 1~~·,fii0i~Oi-C. . .lax on ;;;;;,-llal _ _ _ Q'OII~ i '·R')

10 tvf!tl\!J16.5~•R~G1 _ 11 ... ...,>!ol•"'' "l""• I!IM (. lne 4 !Tin us una1U) .. I ~ 1'"-' U>lic.OI IJ11'id]!ril_i_ob_S<lld m;,lu~_d_orr_fJ'~j

Ill !lui,.,.. !2.'1SW<Io$ i?)~jriltlQ_~,-===-= --- - .. ·=--- __ Ht~!1'!!fJi'. tsOOrs · .... -- ------i~~l~~-of'"~rt1f ~ ~i£~· d~~tl~~.6f-~_tJ,~I t!f''" tt1Vdl~nanh -- ----lll l .w~' t.tvon<.:<'lll ir&·r~<ll ln•e :-,jj.;,:.~ (1 1ne•12Jc1VJ • - 120.000 251 ,liDO

1l r;o;r_!Jiil''!illlll'!' l l<:rtLJir&~"'l-lennonlyL,., __ _ 1' 1&<.•\b Ill-~ 1 J \INt~·~o 1->;m• lliR•<I •'>I,.;.;.'ICt lislY." , -,.-=,-,.,-r_.-,--9}' t ... ce~G: uu~ ~plifUf!!! ·•- __ I~ / ]i;041trll!_~!!)ll"· ll<~~·od ll}nas 1~1!_61_ - 1-----''-l---~-1----"-1

I~ II! ~1!1'! l~ !!W...'! l<)ln WtlraG!I~o.• and pronium noll!s !6 ,.;._; ol)l I"Q I~I••oWIIInlllJdnai~BII'i~l~ 1;!:1 ~line 141 120.000 .251 aon

Co<h l1 utn flnonr:rug JWI/1 ><• llolllllilll> lim.W«>

-J,98li - J:riiso 3.960 ~

64,906 \1!3.!6.'! ,_t4.1~!1

245 218 J43.i1H 3113.118

310.124 ~.'4d1 - --mm

62-CV-11-9400

STATEMENT AS OF JUNE 30,2013 OF THE MINNESOTA SURETY AND TRUST COMPANY

NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Accounting Practices Organization Minnesota Surety and Trust Company (the Company) was incorporated and commenced operations on August 28, 1945, under the Statutes of the State of Minnesota. The Company was a licensed property and casualty insurer under Minnesota Statutes Section 60A.06. Effective Noverr.ber 17, 2011, the Company's Minnesota Certific~te of Authority to operate as an insurer was revoked Effective November 22, 2011, the Company was ordered into liquidation.

The Company is a majority owned subsidiary of First Heartland Surety and Casualty Services Company (First Heartland). The Company was engaged in underwriting surety and bail bonds in the sates of Minnesota, North Dakota, Montana, Utah, South Dakota and Colorado. The coverage on the surety and bail bonds was marketed to customers though a network of independent insurance agents and brokers. The Company also provided trust services primarily to individuals in Minnesota.

The financial statements have been prepared in conformity with the accounting practices prescribed or permitted by the National Association of Insurance Commissioners and the Minnesota Department of Commerce.

B. Use of estimates in the Preparation of the Financial statements & Accounting Policy The Company records bail bond premiums on the net remittances method. As such, the difference between the fee, generally 10% of the bond, and the premium has not been recorded in these financial statements.

Premiums written are recorded on an annual basis to match the billing to the policyholder. Premiums on other than bail bonds are earned on a pro rata basis over the life of the insurance policy. Audit adjustments to premiums are recognized in the period that the adjustment becomes known. Unearned premium reserves are established for the portion of premiums billed applicable to the unexpired term of the premium.

Certain costs of acquiring new business, principally commissions premium taxes and other variable policy issuance and underwriting expenses, are expensed when due.

Unpaid claim and settlement expenses are based on estimates of reported and unreported claims and related seltlement expenses. The Company does not discount the reserve liability for future policy claims settlement expenses.

Investments in fixed maturity bonds are recorded at amortized cost under the valuation standards of the National Association of Insurance Commissioners. No provision is made for temporary declines in market values below amortized cost as the Company generally intends to hold these investments until maturity and does not expect to realize an significant losses. If, however, a permanent impairment occurs in a security, the Company writes the security down to the new value. Short-term investments are recorded at cost, which approximates market. Investments in common and preferred stocks are carried at estimated market values based on published market quotations.

Realized gains and losses are computed based on specific identification of the cost of the securities sold Unrealized gains and losses of common and preferred stock are included in surplus.

Cash and short-term investments include demand and savings deposits at several financial institutions. At times cash on deposit may exceed federally insured limits. For purposes of the statement of cash flows, the Company considers all highly liquid investments with a maturity of one year or less, when purchased, to be cash equivalents,

6

62-CV-11-9400

STATEMENT AS OF JUNE 30, 2013 OF THE MINNESOTA SURETY AND TRUST COMPANY

NOTES TO FINANCIAL STATEMENTS 2. ACCOUNTING CHANGES AND CORRECGTIONS OF ERRORS No change.

3. BUSINESS COMBINATIONS AND GOODWILL No change.

4. DISCONTINUED OPERATIONS The Company was ordered inlo liquldallon by lt.e Slate of Minnesota on November 22, 2011

5 INVESTMENTS During the period covered by these linencial statements, the Company had no mortgag<Jioans, real estate loans, debt restructuring, reverse mortgages, loan backed securities or repurchase agreements.

6. JOINT VENTURES, PARTNERSHIPS AND LIMITED LIA81LITY COMPANIES No change.

7. INVESTMENT INCOME No change.

8 DERIVIA TlVE INSTRUMENTS No change.

9. INCOME TAXES No change.

10 INFORMATION CONCERNING PARENT, SUBSIDIARIES AND AFFILIATES First Hetirtland owns 380,099 of the 500,000 Issued end outstanding shares of Company capital common stock. First Heartland also holds surplus notes in the Company In the amount of $215,000. 1 here were no intercompany transaction In the first quarter of 2013.

11.DEBT As or March 31, 2013 the Company had the following secured and unserured notes payable: 1) Promissory note payable to Ste~Mng State Bank In the amount of $303,784

12 RETIREMENT, DEFERRED COMPENSATION AND POST RETIREMENT BENEFIT PlANS No change.

13. CAPITAL AND URPLU, DIVIDEND RETRICTION AND QUAl-REORGANIZATION No change.

14. CONTINGENCIES No change

15 LEASES The Company is not a party to any leases.

16 INFORMATION ABOUT FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK No change

17. SALE, l'RANSFER AND SERVICING OF FINANCIAL ASSETS AND EXTINGUISHMENTS OF LIABILITIES None

18. GAIN OR LOSS TO THE REPORTING ENTITY FROM UNINSURED PlANS No change

19. DIRECT PREMIUM WRITIENIPRODUCED BY MANAGING GENERAL AGENTS/ADMINISTRATORS No change '

20. FAIR VALUE MEASUREMENTS Bonds: Fair values for bonds are determined using quoted mart.et prices from an orde~y mart.et at the reporting date lor those or similar Investments.

2013Statement Value 2013 Fair Value Bonds: S98B,441 $1,060,206

61

62-CV-11-9400

STATEMENT AS OF JUNE 30,2.013 OF THE MINNESOTA SURETY AND TRUST COMPANY

NOTES TO FINANCIAL STATEMENTS 21. OTHER ITEMS No Change

22. EVENTS SUBSEQUENT No change.

23. REINSURANCE No change.

24. RETROSPECTIVELY RATED CONTRACTS No change.

25. CHANGES IN INCURRED LOSSES AND LOSS ADJUSTMENT EXPENSES No change.

26. INTERCOMPANY POOLING ARRANGEMENTS No change.

27. STRUCTURED SETILEMENTS No change.

28. HEALTH CARE RECEIVABLES No change.

29. PARTICIPATING POLICIES No change.

30. PREMIUM DEFICIENCY RESERVES No change.

31 . HIGH DEDUCTIBLE$ No change.

32. DISCOUNTING OF LIABILITIES FOR UNPAID LOSSES No change.

33., ASBESTOSIENVIRONMENTAL RESERVE No change.

34. SUBSCRIBER SAVINGS ACCOUNTS No change.

35. MULTIPLE PERIL CROP INSURANCE No change.

36. FINANCIAL GUARANTEE INSURANCE No change.

6.2

62-CV-11-9400

STA fEME NT AS Of JUNE lO, ZOIJ OF THE MINNESOTA SURETY ANO TRUST COMPANY

GENERAL INTERROGATORIES P1rt 1 ·COMMON INTERROGATORIES

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62-CV-11-9400


GENERAL INTERROGATORIES INVESTMENT

Were any of lhe stocks, bonds, or other assets of the reporting entity loaned, placed under option agreement, or otherwise 11 .1 made available

for use by another person? (Exclude securities under securities lending agreements.) Yes() No{X) 11.2 If yes, give lull and complete information relating thereto:

12 Amount of real estate and mortgages held In other Invested assets In Schedule BA: $0

14.1 Does the reporting entity have any Investments In parent. subsidiaries and affiliates? Yes() No(X)

14.2 If yes please complete the following :

14.21 Bonds

14.22 Preferred Stock

14.23 Common Stock

14.24 Short-Term Investments

14.25 Mortgage Loans on Real Estate

14.26 All Other

14.27 Total Investment In Parent, Subsidiaries and Affiliates

14.28 Total Investment In Parent included In Lines 14 .21 to 14.26 above

15.1 Has the reporting entity entered into any hedging transactions reported on Schedule DB? Yes() Nu(X)

15.2 If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? Yes() No()

Excluding Items In Schedule E- Part 3- Special Deposits, real estate, mortgage loans and investments held physically In 16 the reporting

entity's offices, vaults or safety deposit boxes, were all stocks, bonds and other securities, owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section 1.111- General Examination Considerations, F.

Outsourcing of Critical Functions, Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Hand boo~ Yes (X) No()

For all agreement thai comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the 16.1 following:

Name of Custodian(s) Custodian Address

Wells Fargo Bank NA

US BankNA

For all agreement that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, 16.2 complete the following:

Name of Custodian(s) Custodian Address

16.3 Has there been any changes, Including name changes, in the custodian(s) identified in 16.1 during the current quarter? Yes() No{X)

16.4 If yes, give full and complete Information relating thereto:

Identify all investment advisors, broker/dealers or individuals acting on behalf of brckerldealers that have access to the 16.5 Investment accounts,

handle securities and have authority to make investments on behalf of the reporting entity:

17.1 Have all the filing requirements of the Purposes and Procedures Manual or the NAIC Securities Valuation Oftice been followed Yes (X) No()

17.2 If no, list exceptions:

7.1

62-CV-11-9400


GENERAL INTERROGATORIES sponses 10 these Interrogatories should be based on changes that have occurred since prior year end llnlcss otherwise note.)

Part 2 PROPERTY & CASUALTY INTERROGATORIES

rting entity is a member ole pooling arrangement, did lhe agreomonl or U1e reporting e11~ty's participolioll chang Yes (I NoO NA(X)

ch an oxplanallon.

porting entity reinsured any risk w~h any other mportlng Bntity and agreed to release svch entity from liabil~y. In whole or in part

oss thai may occur on tho risk, or portion thereof, reinsured? Yes ( ) No (X)

ch an ••pl•natinn.

y or the reporting entity's prtmary relnsuraru:e oontrads boon canceled? Yo•() No (X)

vo ful and compleJo inlonmation lherelo

r tholiabiliios lor unpaid losses and loss adjustment expenses other than certain worl<er.;' oompensalion tabular reseMls

el Slalemenllnstruotions pertaining lo dlsdosum of discounUng lor definition ol'tabular rnserves,') discounted at a rate

t greater lhan zorn? Yoe (I No(X)

plete lhe following schedule:

Total Disoounl taken During Period

neJ Maxinum 2 J Discount

4 3 Unpaid

fnlors&t lliuount Rale Losses L.p~~E_I 6

I 8

~E: I 10

IBNR TD:AL Unpaid Losses I Unp~ IBNR I 11

TOTAL

Percenleges

5 1 A&H loss percent %

52 ASH cosl conlainmenl percent %

53 A&H expense percanl excluding oosl conter1menl expense %

as a custodian lor hoallh sll'lfngs accounts? Yes() No (X l ase provide lh& amount of CIJstodiaf funds held as or lhe reportlrl!J dale $

t as an admlnislralor ror heallh savings accounts? Yos() No (X)

ase prnltde the balanoo or"'" funds administered "ollhe roporting dale $

(Re

1. lllh& repo

I! yes, alla

HBs the re

from any l

tryes. atta

3.1 Haw Bn

3 2 tr yes, gi

4.1 Are any o

(soo Annu

or interes

4 2 II yes com

Line of ~usiOperaling

6.1 Do you 8d

6.211 yes, ple

6.3 Do you ac

6.4 rr yes, ple

7.2

62-CV-11-9400


SCHEDULE F-CEDED REINSURANCE

NONE SCHEDULE T • EXHIBIT OF PREMIUMS WRITTEN

NONE P/\RT 1 · LOSS EXPERIENCE

NONE

NONE PART· 3 LOSS AND LOSS ADJ USTMENT CXPtNSCRESERVCES SCHEDULE

NONE SCHEULE A- VERi fiCATION

NONE SCHEDULE B- VERIFICATION

NONE SCHEDULE BA- VERIFICAQTION

NONE

9, 10, 13, 14, S101

62-CV-11-9400


SCHEDULE 0 ·VERI FICATION 1 PliorYear

Bonds and Stocks Year to Date Endad December 31

1~ ~oo:_kl!d~•!!td_ ~"!!"2 ':!1~ ~r~'!d! ·~a_tt~(~ !A?·~·~~~~~~ a!•'!. ~I'!"'. _________ • ____ • __ . ____ 1~oz.~g~ _____ 1.~~~~~-

2~ c:_o~O!~njs_a';,d ffl ~~~~ • • • •" ______ . _. _ . . __ .. • . • • ... ... • . • • . • " . • ... • •. _ .. . 3 Acaual or discount --------------~---- ----~------ -----M·------ --·--

5;. !.ol!l e.·~~'!) 2" ~~~- '!"'.11- - - - - - - - - - - - - - - - - • - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~·0!'8 S;. ~'!.~~n_!id.!''!'i~ !_or_bo.!'~ ~n~ '!"'.:'.:' ~ ~~ . __________ • ____________ ••. • __ • .J22,~0~ •• __ . 1S~3_f1.1_

7_ D~a!!'O_!II!,•I_!!In_o!_ll'!"!.'"!!' _______ •• _. ______ • _________________ •• ____ • _J t •• __ • __ J3. 8)21aJ f~rojl~ "!"~8'2,9'!. ct!a~g~ 1'2, ~~"!!i~l!_d _ !)'/!'~.'':~ ________ ______ • ______ • _ 9~~ut;!c:'r!!'n!~·~•.91!!_er_lh!nJe!!'~r!'Y_im_pa_~!'.''!";2!1~"'2~ _ •• _ •••• ___ •• ___ • _ •• _

[~. ~"!_ad_l-J~~ C;!''!Yi'!,ll :!·~·."'.!'<!!ld_O~CU."!_R\.P"..!"'!I \!-I~O!_l_:2_! ::1~5 }•!•!-g_j" "" • • •" • • • • " • • • 1.!_. ~~u;t !!>I~ '!"~ad.m~~ :_~u~ls _____________ __ • ___ _ • ___ • ___ • ___ • _ t--------1-------1 11. Stalemonl value at end or current period (Line 10 minus Line II) 967,855 1,107,197

S101


SCHEDULED- PARr1B Showing the Aajuisitions, Dispositions and NDn-Trading Activity

Uunng the Curren! Quart« fDr all Bonds and Preferred Slock by R~lll~;t Class

1 3 5 6 Boo4</Alljusted Bollk/Aif.,.ted Book/All~sted

~ingValue Acquisnims Dispositions Nor>-TracWl!l Carrying Value Boo k/Adjusled Book1Adjus1l!d Cafl}'ingValue Begirming of During Current During Current Activity During End of Fist Canying Value End Canying Value End December l 1 Pror

Current Quarter Oua<11!r Duarter Current Quarter O.arter of Second Oua<11!r of Third Quarter Year

BONDS -------------+-----~ ------ ------ ------ ------ ------- --- ----- --------

I. ""otal Bonds 987,m 586 988.441

S. ---Class ------1

3. Class 2 --- - ------- -----·

10. Class3

11. Class4

12.. C1au 5

13. Cess 6 ---- -- r --------

14 Total Prel!>rred Stock

Its. Total Bonds & Preferred Stock

S102

STATDIENT AS OF Jl.WE JO, 2013 Of 1oW£SCT-' SIJR£TY AN:I TRUSTt(M'ANY

SCHEDULED- PART 4

n..oL(\o".tl!

.... HI«:

~- ~'!W1C..W l_,f_. 1'.. ...... - :.- ~ l*'l~lo.l~~ ~ ~ ~-

.-'l.&c~· a..." c.,.....,.,., Tolllf.-. '~ c .. r.OC", ~._ ... r,"'""" .. ' ~·· -e-...,._,., 11,..,

1° 1 .. l-:li _,_,_ !UI..C..v ~Ctlr ~

r,. .. _ 1,......... .._ .. __ .:.-.-_

'

Ol N

0 :::

62-CV-11-9400


Schedule DA • ParT 1

NONE Stl1crlulo DA · Verificat ion

NONE Schedule DB • Part A Verification

NONE

Schedule DB- Part B Vcriflr.ntion

NONE Schedulo DB· Part C ·Section 1

NONE S<:hedull! DB · Part C - Secllan 2

NONE Sthcdull! DB -Venne lion

NONE Schedule E Vc1 il1 allun

NONE Schcdul~ A -Pan 2

NONE Schedule A· Part 3

NONE Schedule B -Part 2

NONE Schedule BA • Part 2

NONE

5103, 5104, 5105, 5106,5107, 5108,E01,E02,E03

62-CV-11-9400


Schedule BA- Part 3

NONE Schedule D - Part 3

NONE

Schedule D · Pmt 4

NONE Schedule DB • Port A • Section 1

NONE Schedule DB • Pt. A • Sn. 1 • Footnote (n)

NONE Schedule DB· Pt. B • Section 1

NONE Schedule DB- Pl. B • Sn. 1 -Footnotes

NONE Schedule DB • Part D

NONE Schedule OL · Part 1

NONE Schedule DL · Part 2

NONE

Schedule E- Part 2

NONE

E03, E04, E05, E06, E07,E08, E09, E10

62-CV-11-9400


SCHEDULEE-PART1-CASH 1 2 3 4 5 f)....,. o ...... ll~ BlEnd ol Ea~h Moolll During Curr~l ' i 9

Amount of Amount of 6 7 8 Interest Interest Received Accrued at During Current

Rate of Current Statement Second Depository Location Interest Quarter Date First Month Monlh lhirc.l Month

~!l!!!l_l_lll_§_~te -~-~~--··--- AU5l>ll, IIRilnesotJ _.,,,_ ...... .•. 7.~69 --127,....... 33 412 127,385 XXX WeH_s.. f..?,!Ji.Q_ _ ~iiiirie-ii'PofiG:"'L Minnesota ·- -·--· 136.q~! --3.§~~ XXX

-- XXX Sterling Stale Bank - I:IUF Austin. Mlr lll<l5llli.l

- - - 179,001 179,001 179,001 XXX 0199999 Totals - Open Deposnorle& 322:403 306.446 310,0:.!4 100(

0499999 Casn tn Company's Offrce 200 200 200 <XX

0599999 Total 322,603 306.646 310,224 XXX

E 11

Schedule Y

*Plunkett and Associates is owned by Peter Plunkett (75%) and Warren Plunkett (25%)

east - mn.gov

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