California Self-Insurers Security Fund

1. California Self-Insurers� Security Fund Alternative Security Program Overview

2. Disclosure Securities or investments are offered through MMC Securities Corp (�MMCSC�), a registered broker-dealer, and member of FINRA/SIPC. Main office: 1166 avenue of the Americas, New York, NY 10036. Phone: 212.345.5000. MMCSC, Oliver Wyman, and Marsh Inc. are affiliated entities that are owned and operated by Marsh & McLennan Companies, Inc. MMCSC or any of its affiliates may have an independent business relationship with any of the companies described herein. Trademarks and service marks are the property of their respective owners. This material has been prepared for informational purposes only. It is not an offer to buy or sell any security or commodity or other financial instrument or to participate in any trading strategy. The implementation of or investment in the Alternative Security Program (�ASP�) involves a high degree of risk and should be considered only by institutional investors who can bear the economic risks of replacing collateral with a portfolio based approach utilizing synthetic collateralized debt obligations and credit default swaps (�credit derivatives�). Certain inherent risks of credit derivatives include, but are not limited to the following: counterparty default risk; correlation may exist between reference entities and counterparties not assumed in risk models; reference entities may exhibit greater correlation than assumed in risk models; estimated recovery rates may greatly differ from actual recovery rates; reference entities may default on their worker�s compensation payments without triggering an ISDA default; and depending on future market conditions, credit protection may not be available at renewal of the ASP or may only be available at excessive cost. ASP sponsors/Investors should not rely on rating agency ratings and should conduct their own analysis or due diligence � identical ratings for different financial products do not guarantee identical risk characteristics since default rates may vastly differ. Certain of the information contained herein concerning credit ratings and default rates is based upon or derived from information provided by third-parties and other industry sources as indicated herein. Results from simulations are for illustrative purposes only and certain assumptions have been made regarding simulations because some models are proprietary to their respective owners and cannot be replicated. No representation or warranty, express or implied, is made by MMCSC as to the accuracy or completeness of the information set forth herein, and nothing contained in this presentation is, or shall be relied upon as, a promise or representation, whether as to the past or the future. MMCSC has not independently verified any such information and assumes no responsibility for its accuracy or completeness. In addition, this presentation includes certain estimates and assumptions made by MMCSC which may or may not prove accurate. Certain assumptions have been made for modeling purposes only to simplify the presentation and/or calculation and are for illustrative purpose only; this does not reflect the performance of any specific scenario. Simulated performance is hypothetical and may not take into account material economic and market factors. Accordingly, there can be no assurance that estimated returns will be realized or that actual returns or performance results will not materially differ from those estimated herein. Therefore, recipients should not place undue reliance on these results. Past performance is not indicative of future results, which may vary. No person has been authorized to make any representation or give any information with respect to the ASP, other than the information contained herein. Prospective institutional investors should not rely on any information other than that contained in this presentation or any supplement to this presentation. Neither MMCSC nor any of its registered representatives, is making any representation regarding the legality of an investment herein by institutional investors. Prospective institutional investors are not to construe the contents of this presentation as legal, tax or business advice. Each institutional investor should consult with its own advisors as to legal, tax business, financial, and related aspects of investing in the ASP. This material may not be redistributed without the prior written consent of MMCSC.

3. Contents Self-Insurers� Security Fund Alternative Security Program (�ASP�) Assessments Financial Strength

5. Self-Insurers� Security FundOverview

6. Self-Insurers� Security Fund Board composition and staff

7. Self-Insurers� Security FundStructure

9. Alternative Security ProgramStructure

10. Alternative Security ProgramParticipation requirements

11. ASP participation expanded in 2010 due to improved credit ratings� Alternative Security ProgramSummary

13. Ratings improved with the economic outlook, raising the weighted average rating (WARF)� Alternative Security ProgramRating distribution

15. Although the ELP fee increased reflecting higher risk transfer costs, the DLF declined significantly� AssessmentsTotal

16. AssessmentsRates Although 2010 rates increased on average 5.5%, they remain significantly below those at ASP inception�

18. � and gross assets have increased 629% since ASP inception� Financial StrengthAssets

19. Financial StrengthRecent defaults A summary of the Fund�s claim reserves is as follows�