Status Report as of June 1, 2011

Greetings,

It is with pleasure that I can report to you that your Board of Trustees has completed an agreement with Safety National Insurance for the transfer and assumption of the Association's claims liabilities. This means that Safety National has assumed the liability for all claims of Hospitality Comp since 1982.

With the approval of this agreement by the Oklahoma Workers' Compensation Court, release of the Joint and Several liability inherent in self insurance group membership will be provided to our members for all the claims liabilities for all the years of the Association. The Board of Trustees considered this to be perhaps the most important issue to be resolved in the selection of a company for the claims liabilities assumption.

The Board of Trustees is honored to have been allowed for 28 years to be your company's provider of Workers' Compensation Insurance for your valued employees.

As Chairman, I wish to acknowledge the outstanding work of the Board of Trustees and staff to accomplish the closing of the fund in such a timely manner. Much work has been done in the past twelve months. I am very proud of the foresight of the Trustees and the execution accomplished by the staff.

Sincerely,

Richard Hunt

Chairman, Board of Trustees