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EXHIBIT B

RECEIVERSHIP APPEAL PROCEDURE

THIS PROCEDURE GOVERNS APPEALS AND CHALLENGES OF ANY DECISION MADE BY THE RECEIVER OF HOW INSURANCE COMPANY, HOME WARRANTY CORP. AND HOME OWNERS WARRANTY CORP.

A. APPLICABILITY OF PROCEDURE

1. For purposes of this procedure, the term "Deputy Receiver" includes the Special Deputy Receiver and any other duly Authorized Representative of the Receiver. In order to challenge or seek review of any "appealable decision" of the Deputy Receiver, including any decision concerning a claim against HOW Insurance Company, Home Warranty Corp., and Home Owners Warranty Corp. (collectively referred to as "Companies") you must adhere strictly to the following steps and deadlines. Failure to fully adhere to this procedure will result in a waiver of your appeal, and the Deputy Receiver's decision as to your claim or any other matter will become final and non-appealable.

2. A decision of the Deputy Receiver is an "appealable decision" only if:

a. it concerns a specific claim made against the Companies, whether or not arising under a warranty/insurance document issued by HOWIC; or

b. it affects, or may affect, a financial interest, contract right or legal entitlement of the person making the appeal.

3. The date by which an appeal must be presented is governed by the "DATE OF DECISION" of the matter being appealed. The DATE OF DECISION is:

a. with respect to the Deputy Receiver's decision on a specific claim, the date shown on the NOTICE OF CLAIM DETERMINATION;

b. with respect to any non-claim matter, the day the Deputy Receiver announces his decision; or

c. with respect to any non-claim matter that is not announced, the date the decision is made.

4. There are two levels of appeal which may be available to you: appeal to the Deputy Receiver and appeal to the State Corporation Commission ("the Commission"). You may not appeal to the State Corporation Commission without first appealing to the Deputy Receiver in the manner described below.

B. APPEAL TO THE DEPUTY RECEIVER: DEADLINE: 30 DAYS FROM DATE OF DECISION

1. Decisions by the Deputy Receiver must be appealed within thirty (30) days following the DATE OF DECISION.

2. Once the Deputy Receiver concludes his review of a specific claim, the claimant will be sent a NOTICE OF CLAIM DETERMINATION advising him or her of the disposition of his or her claim. Such a notice may have been sent to you before, or with, this "RECEIVERSHIP APPEAL PROCEDURE".

3. Within thirty (30) days after the DATE OF DECISION regarding the matter being appealed, you must file with the Deputy Receiver and the Deputy Receiver must receive a "NOTICE OF APPEAL" containing a narrative or documentary explanation of the reason for your appeal and including all documents supporting your appeal. No particular form is necessary for this notice of appeal (a letter may be sufficient) but whatever you send must be clearly labelled "NOTICE OF APPEAL" on the first page. It must also contain:

a. a copy of the NOTICE OF CLAIM DETERMINATION or, if in writing, a copy of the other matter being appealed;

b. a full and detailed explanation of your appeal;

c. adequate documentation to support it; and

d. the following or a substantially similar jurat so that the appeal is sworn:

State of __________________________)

County of ________________________)

BEFORE ME, the undersigned authority, on this day personally appeared ________________________________________________ known to me to be the person whose name is subscribed to the foregoing NOTICE OF APPEAL, and having by me been first duly sworn, upon his (her) oath deposed and stated that the facts therein contained are true and correct to his (her) knowledge or belief.

Given under my hand and seal of office on this _______________ day of ___________________________, 199_____.

(Notary Seal) ....................................... ___________________________________________________

(Notary's name)

Notary public in and for

State of ___________________

REPORT TO HOME OWNERS - Page 16

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