Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 63

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 63
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 jurisdictions in which our operating insurance subsidiaries are domiciled or conduct business.

The following is a summary
of the principal insurance regulatory considerations in the United States, Canada, Bermuda and the United Kingdom, being the
jurisdictions in which we conduct the majority of our business.

<div align='center'>United States</div>

General

Our U.S. operating insurance
subsidiaries are subject to extensive regulation throughout the United States. Although there is limited federal regulation of the
insurance business in the United States, each state has a comprehensive system for regulating insurers operating in that state.
The laws of the various states establish supervisory agencies with broad authority to regulate, among other things, licenses to transact
business, premium rates, trade practices, market conduct, agent licensing, policy forms, underwriting and claims practices, insurance
policy termination, reserve adequacy, permissible investments, governance and insurer solvency. States also regulate investment activities
on the basis of quality, distribution and other quantitative criteria. Further, most states compel participation in and regulate composition
of various shared market or residual market mechanisms. States have also enacted legislation that regulates insurance holding company
systems, including acquisitions, dividends, the terms of affiliate transactions and other related matters. Our U.S. operating insurance
subsidiaries are domiciled in Arkansas, California, Connecticut, Delaware, New Hampshire, New Jersey and New York.

Insurance companies are
also affected by a variety of state and federal legislative and regulatory measures and judicial decisions that define the scope of the
risks and benefits for which insurance is sought and provided. These include redefinitions of risk exposure in such areas as product
liability, environmental damage and workers’ compensation. In addition, individual state insurance departments may limit premium
rates for some classes of insureds and prevent the insurance companies from charging rates adequate to reflect the level of risk assumed
by the insurer for those classes. Such developments may result in adverse effects on the profitability of various lines of insurance.
In some cases, these adverse effects on profitability can be minimized, when possible, through the repricing of coverages if permitted
by applicable regulations, or the limitation or cessation of the affected business, which may be restricted by state law.

Most states have insurance
laws requiring that for certain lines of property and casualty insurance rate schedules, policy or coverage forms, and other information
be filed with each such state’s regulatory authority. In many cases, such rates and/or policy forms must be approved prior to use.
A few states have considered or enacted limitations