FOR IMMEDIATE RELEASE

August 2005

Millions in Cash Paid to Builders!

How often does your car insurance reward you for not having any accidents? How often do you get a distribution back from your homeowners insurance because you didn't have any claims? The answer is probably never. How often does your warranty company reward you for having few or no claims on your enrolled homes? If you are an Incentive member, the answer would be substantially different.

Residential Warranty Company, LLC established the Incentive program in 1986 as a way to reward our members for their good claims experience, to increase loyalty to the RWC family and to provide yet another reason to choose RWC over the rest of the competition. Since that date, RWC and affiliates have distributed over $13.7 MILLION in Incentive distributions back to Incentive members. That's 13.7 million thank you's for a job well done!

The Incentive program works like this: Both the Builder Member and RWC contribute an initial participation fee to open an account. From that point forward, RWC will re-direct a portion of the warranty fees paid by the Member into this account. The Incentive account accumulates these deposits over the first 5 years of Incentive membership.

If there are no or few warranty claims on homes enrolled by the Member, then distributions from the Incentive account are paid out over the next 5 years. In essence, the Member can receive back a substantial portion of the warranty fees paid, provided the Member's claims experience is good. To date, RWC, HOME and MHWC have rewarded Members for their good claims experience to the tune of $13.7 million! This is excellent proof that some of the finest builders in the nation are affiliated with RWC, HOME and MHWC.

If there is a warranted claim for which an indemnity is paid, funds from the Incentive account are used first. Remember that the account is funded by warranty fee dollars so if a claim happens, those dollars are used to pay the cost of the repair. The Incentive fund reduces the risk to the insurance company which backs the warranty; therefore, the cost of insurance is reduced. That savings in premium allows for the accumulation of warranty fee dollars in the Incentive Fund. But if a claim does occur, logically, it's those same premium dollars which are used first.

Other benefits of the Incentive program include:

• The annual re-registration fee of $295 is waived for Incentive Members, which saves an additional $800 in years 2-5 of membership.
• The value of the Incentive distributions greatly reduces the effective cost of the warranty fee.
• The Member enjoys a locked-in enrollment rate throughout the duration of their Incentive membership.

To qualify for the Incentive Program, a Member must enroll at least 20 homes per year or have an annual enrolled sales volume of $2 million. A free computerized analysis illustrating how the Incentive Program can work for you is available upon request. For more information call your local Account Executive or our Sales Department at 800-247-1812 ext. 2139.

Article updated 2-08