<PAGE>

--------------------------------------------------------------------------------
                      OFFICE OF THE UNITED STATES TRUSTEE
--------------------------------------------------------------------------------
IN RE:                             )       DEBTOR IN POSSESSION OPERATING REPORT
                                   )
     BUSINESS INSURANCE GROUP      )   REPORT NUMBER 8               Page 1 of 3
                                   )          FOR THE PERIOD FROM:     01-Nov-00
                            DEBTOR )                           TO:     30-Nov-00
___________________________________)   _________________________________________
CHAPTER 11 CASE NO. SV00-14101-GM  )
___________________________________

<TABLE>
<S>                                                            <C>          <C>          <C>
1. Profit and Loss Statement                                      Please see Attached Schedule A

A. Related to Business Operations:
     Gross Sales                                               _____________
     Less Sales Returns and Discounts                          _____________
        Net Sales                                                           ____________
     Less: Cost of Goods Sold
        Beginning Inventory at Cost                            _____________
        Add: Purchases                                         _____________
        Less: Ending Inventory at Cost                         _____________
           Cost of Goods Sold                                               _____________
     Gross Profit                                                                        ____________

     Other Operating Revenue (Specify)                                                   ____________

Less: Operating Expenses
     Officer Compensation                                      _____________
     Salaries & Wages - Other Employees                        _____________
        Total Salaries & Wages                                              _____________
        Employee Benefits                                                   _____________
     Payroll Taxes                                             _____________
     Real Estate Taxes                                         _____________
     Federal and State Income Taxes                            _____________
        Total Taxes                                                         _____________
     Rent and Lease Exp. (Real and Personal Property)          _____________
     Interest Expense (Mortgage, Loan, etc.)                   _____________
     Insurance                                                 _____________
     Automobile Expense                                        _____________
     Utilities (Gas, Electric, Water, Telephone, etc.)         _____________
     Depreciation and Amortization                             _____________
     Repairs and Maintenance                                   _____________
     Advertising                                               _____________
     Supplies, Office Expenses, Photocopiers, etc.             _____________
     Bad Debts                                                 _____________
     Miscellaneous Operating Expenses (Specify)                _____________
        Total Operating Expenses                                            _____________

     Net Gain/(Loss) from Business Operations                                            ____________

B. Not Related to Business Operations                                                    ____________
     Income:
        Interest Income                                                     _____________
        Other Non-Operating Revenues (Specify)                              _____________
        Gross Proceeds on Sales of Assets                      _____________
        Less: Original Cost of Assets plus Expense of Sale     _____________
           Net Gain/(Loss) on Sale of Assets                                _____________
        Total Non-Operating Income                                                       ____________
     Expenses Not Related to Business Operations:
        Legal and Professional Fees                                         _____________
        Other Non-Operating Revenues (Specify)                              _____________
           Total Non-Operating Expenses                                                  ____________

     NET INCOME/(LOSS) FOR PERIOD                                                        ============
</TABLE>

--------------------------------------------------------------------------------
Revised April 1989              OPERATING REPORT                           UST-4
--------------------------------------------------------------------------------
<PAGE>

--------------------------------------------------------------------------------
                   DEBTOR IN POSSESSION OPERATING REPORT NO. 8
--------------------------------------------------------------------------------
                                                                     Page 2 of 3

2.    Aging of Accounts Payable and Receivable (exclude pre-petition debt from
      accounts payable):

                                       -----------------------------------------
                                        Accounts Payable    Accounts Receivable
                                       -----------------------------------------
Current         Under 30 days                    $0                          $0
Overdue         31-60 days                       $0                          $0
Overdue         61-90 days                  PLEASE SEE ATTACHED SCHEDULE B
Overdue         91-120 days                      $0                          $0
Overdue         121+ days                        $0                          $0
Total                                            $0                          $0
                                       -----------------------------------------

3.    Statement of Status of Payments to Secured Creditors and Lessors:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
                                                                                   Post-Petition
                       Frequency of                                              Payments Not Made
                       Payments per       Amount of                             --------------------
Creditor/Lessor       Lease/Contract     Each Payment     Next Payment Due       Number      Amount
----------------------------------------------------------------------------------------------------
<S>                   <C>                <C>              <C>                    <C>         <C>

                 SEE ATTACHED SCHEDULE C

----------------------------------------------------------------------------------------------------
</TABLE>

4.    Tax Liability:

                    Gross Payroll Expense For Period                          $0
                    Gross Sales for Period Subject to Sales tax               $0

<TABLE>
<CAPTION>
                                         -----------------------------------------------------------
                                                                             Post Petition Taxes
                                             Date Paid      Amount Paid *         Still Owing
                                         -----------------------------------------------------------
<S>                                              <C>            <C>            <C>
Federal Payroll and Withholding Taxes            N/A            $0             N/A
State Payroll and Withholding Taxes              N/A            $0             N/A
State Sales and Use Tax                          N/A            $0             N/A
Real Property Taxes                              N/A            $0             N/A
                                         -----------------------------------------------------------
</TABLE>

                  *     Attach photocopies of depository receipts from taxing
                        authority or financial institution to verify that such
                        deposits or payments have been made.

5.    Insurance Coverage

<TABLE>
<CAPTION>
                                         -----------------------------------------------------------
                                             Carrier/        Amount of      Policy      Premium Paid
                                              Agent          Coverage     Exp. Date      Thru Date
                                         -----------------------------------------------------------
<S>                                       <C>                <C>          <C>           <C>
Worker's Compensation                     See Schedule D
Liability                                 See Schedule E
Fire and Extended Coverage                See Schedule E
Property                                  See Schedule E
Theft                                     See Schedule E
Life (Beneficiary:_________________)      See Schedule E
Vehicle                                   See Schedule E
Other                                     See Schedule E
                                         -----------------------------------------------------------
</TABLE>

<PAGE>

--------------------------------------------------------------------------------
                   DEBTOR IN POSSESSION OPERATING REPORT NO. 8
--------------------------------------------------------------------------------
                                                                Page 3 of 3

6.    Questions:

      A.    Has the Debtor provided to any officers, directors, shareholders, or
            other principals compensation without the approval of the Office of
            the United States Trustee?

            ______: Yes Explain: ______________________________________
            ___X__: No

      B.    Has the Debtor, subsequent to the filing of the petition made any
            payments on its pre-petition unsecured debt, except as have been
            authorized by the Court?

            ______: Yes Explain: ______________________________________
            ___X__: No

7.    Statement of Unpaid Professional Fees (Post-Petition Only):

             -------------------------------------------------------------------
                                               Type            Post-Petition
                Name of Professional       Professional        Unpaid Total
             -------------------------------------------------------------------

             See Schedule F

             -------------------------------------------------------------------

8.    Narrative Report of Significant Events And Events Out Of The Ordinary
      Course Of Business:


9.    Quarterly Fees: (This Fee must be paid to the United States Trustee every
      calendar quarter)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                    Quarterly
   Quarterly       Disbursements       Quarterly                                                   Quarterly
 Period Ending      for Quarter           Fee        Date Paid     Amount Paid     Check No.     Fee Still Owing
----------------------------------------------------------------------------------------------------------------

<S>                <C>                <C>            <C>           <C>             <C>            <C>
     9/30/2000     $250.00            $250.00        11/4/00       $250.00         105            $0.00

----------------------------------------------------------------------------------------------------------------
</TABLE>

I, Alex Corbett, Chief Financial Officer, declare under penalty of perjury that
the information contained in the above Debtor in Possession Operating Report is
true and complete to the best of my knowledge.


Dated 1/11/01                                   Signed /s/ Alex Corbett
      -------------                                    -------------------------
<PAGE>

SCHEDULE A

                            SNIG, BIG, SNIA and SNIS
                             Schedule of Operations
                        One Month ended November 30, 2000
                        [Bankruptcy filed April 26, 2000]
                                   [unaudited]

<TABLE>
<CAPTION>
(In thousands)                                                                                                        Consolidated
                                                     SNIG          BIG        SNIA         SNIS       Elimination         Total
                                                    -------     -------      -------      -------     -----------     -------------
<S>                                                 <C>         <C>          <C>          <C>          <C>              <C>
Revenues:

Commission income                                   $    --     $    --      $    --      $   136      $       --       $     136

Net investment income                                    13          32            3          102              --             150
                                                    -------     -------      -------      -------      ----------       ---------
  Total Revenues                                         13          32            3          238              --             286
                                                    -------     -------      -------      -------      ----------       ---------
Expenses:

Interest expense                                      1,061          --           --           --              --           1,061

Bad debt expense                                         --          --           --          140(A)           --             140

General and administrative
  Other                                                  93           1           27          373              --             494
                                                    -------     -------      -------      -------      ----------       ---------
  Total Expenses                                      1,154           1           27          513              --           1,695
                                                    -------     -------      -------      -------      ----------       ---------

Income (loss) before income taxes and preferred
  securities dividends and accretion                 (1,141)         31          (24)        (275)             --          (1,409)

Income tax (benefit) expense                             --          --           (1)           1              --              --
                                                    -------     -------      -------      -------      ----------       ---------
Income (loss) before preferred securities
  dividends and accretion                            (1,141)         31          (23)        (276)             --          (1,409)

Preferred securities dividends and accretion           (992)         --           --           --              --            (992)

Expenses not related to business operations:
  Legal and Professional Fees                            77          --           --           --              --              77
  Other non-operating expenses                          (11)         --          (10)         (15)             --             (36)
                                                    -------     -------      -------      -------      ----------       ---------
                                                     (2,067)         31          (33)        (291)             --          (2,360)

Equity in net income (loss) from subsidiaries          (282)       (314)          --           --             607              11
                                                    -------     -------      -------      -------      ----------       ---------
  Net (Loss) Income                                 $(2,349)    $  (283)     $   (33)     $  (291)     $      607       $  (2,349)
                                                    =======     =======      =======      =======      ==========       =========
</TABLE>

(A)   Amount reflects a recording of an allowance for bad debt on collection of
      commissions receivable. Debtor continues to assert rights of offset and
      other methods to effectuate collection.

<PAGE>

Superior National Insurance Group, Inc in Bankruptcy
Aging of Accounts Payable and Receivable
As of November 30, 2000

<TABLE>
<CAPTION>
Superior National Insurance Group
                                    ---------------------------------------             ----------------------------------------
                                            Non-Intercompany Accounts                              Intercompany Accounts
                                    ---------------------------------------             ----------------------------------------
                                    Accounts Payable    Accounts Receivable             Accounts Payable     Accounts Receivable
                                    ---------------------------------------             ----------------------------------------
<S>                                     <C>                    <C>                        <C>                       <C>
Current Under 30 days                        252,332                 63,008                      284,897                   3,581
Overdue 31-60 days                         1,258,087                156,054                            0                 143,001
Overdue 61-90 days                             7,000                  3,568                            0                      --
Overdue 91-120 days                            7,000                 10,944                           --                      --
Overdue 121+ days                             18,728                 54,862                            1                 500,009
                                    ---------------------------------------             ----------------------------------------
Total                                   $  1,543,147           $    288,435[A]            $      284,899            $    646,591
                                    ---------------------------------------             ----------------------------------------

<CAPTION>
Business Insurance Group
                                    ---------------------------------------             ----------------------------------------
                                            Non-Intercompany Accounts                              Intercompany Accounts
                                    ---------------------------------------             ----------------------------------------
                                    Accounts Payable    Accounts Receivable             Accounts Payable     Accounts Receivable
                                    ---------------------------------------             ----------------------------------------
<S>                                     <C>                    <C>                        <C>                       <C>
Current Under 30 days                             --                     --                           --                      --
Overdue 31-60 days                                --                     --                           --                      --
Overdue 61-90 days                                --                     --                           --                      --
Overdue 91-120 days                               --                     --                           --                      --
Overdue 121+ days                             16,442                601,265                           --              14,963,854
                                    ---------------------------------------             ----------------------------------------
Total                                   $     16,442                601,265                           --              14,963,854
                                    ---------------------------------------             ----------------------------------------

<CAPTION>
Superior National Insurance Services
                                    ---------------------------------------             ----------------------------------------
                                            Non-Intercompany Accounts                              Intercompany Accounts
                                    ---------------------------------------             ----------------------------------------
                                    Accounts Payable    Accounts Receivable             Accounts Payable     Accounts Receivable
                                    ---------------------------------------             ----------------------------------------
<S>                                     <C>                    <C>                        <C>                       <C>
Current Under 30 days                      1,599,356                157,845                           --                 317,342
Overdue 31-60 days                            14,344                690,714                           --                   2,421
Overdue 61-90 days                            76,089                894,035                           --                      --
Overdue 91-120 days                          119,513              1,186,309                           --                      --
Overdue 121+ days                            559,960              9,083,034                           --                 657,624
                                    ---------------------------------------             ----------------------------------------
Total                                   $  2,369,262           $ 12,011,937[B]            $           --            $    977,387
                                    ---------------------------------------             ----------------------------------------

<CAPTION>
Superior National Insurance Administrators
                                    ---------------------------------------             ----------------------------------------
                                            Non-Intercompany Accounts                              Intercompany Accounts
                                    ---------------------------------------             ----------------------------------------
                                    Accounts Payable    Accounts Receivable             Accounts Payable     Accounts Receivable
                                    ---------------------------------------             ----------------------------------------
<S>                                     <C>                    <C>                        <C>                       <C>
Current Under 30 days                         51,276                     --                       36,026                      --
Overdue 31-60 days                               887                     --                      145,423                      --
Overdue 61-90 days                             2,382                316,421                           --                      --
Overdue 91-120 days                            3,721                489,634                           --                      --
Overdue 121+ days                             83,685              5,571,142                      829,569                  98,383
                                    ---------------------------------------             ----------------------------------------
Total                                   $    141,951           $  6,377,198[C]            $    1,011,017            $     98,383
                                    ---------------------------------------             ----------------------------------------

<CAPTION>
Consolidated
                                    ---------------------------------------             ----------------------------------------
                                            Non-Intercompany Accounts                              Intercompany Accounts
                                    ---------------------------------------             ----------------------------------------
                                    Accounts Payable    Accounts Receivable             Accounts Payable     Accounts Receivable
                                    ---------------------------------------             ----------------------------------------
<S>                                     <C>                    <C>                        <C>                       <C>
Current Under 30 days                      1,902,964                220,853                      230,923                 320,923
Overdue 31-60 days                         1,273,318                846,768                      145,423                 145,423
Overdue 61-90 days                            85,470              1,214,025                           --                      --
Overdue 91-120 days                          130,234              1,686,887                           --                      --
Overdue 121+ days                            678,815             15,310,304                      829,570              16,219,870
                                    ---------------------------------------             ----------------------------------------
Total                                   $  4,070,801           $ 19,278,835               $    1,295,916            $ 16,686,216
                                    ---------------------------------------             ----------------------------------------
</TABLE>

[A]   Amounts in accounts payable do not include interest due and accrued on
      bank loan and Trust Preferred Securities.

[B]   Amounts shown in accounts receivable do not include recorded amounts on
      allowance for bad debt on collection of commissions receivable, In which
      the Debtor continues to assert rights of offset and other methods to
      effectuate collection.

[C]   Amounts shown in accounts receivable do not include recorded amounts on
      allowance for bad debt on collection of claims admistration fee, In which
      the Debtor continues to assert rights of offset and other methods to
      effectuate collection.

<PAGE>

SCHEDULE C
NOVEMBER 30, 2000

SNIG

3. Statement of Status of Payments to Secured Creditors and Lessors:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                               Post-Petition
                                                 Frequency of                                                Payments Not Made
                                                 Payments per     Amount of                               -------------------------
Creditor/Lessor                                 Lease/Contract   Each Payment         Next Payment Due        Number         Amount
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>            <C>               <C>                       <C>       <C>
BancBoston Leasing Inc / Fleet Capital Leasing     Monthly       $235,337.00              12/1/00             None     $         --
Citizens Leasing Corporation                       Monthly       See BIG's schedule for details
Dell Financial Services                            Monthly       $  8,931.85             12/20/00               2      $  17,863.70
IKON Office Solutions, Inc. / IOS Capital          Monthly       $  1,395.65          11/23/00, 11/15/00        3      $   4,186.95
Neopost                                            Monthly       $    858.80         11/29/2000, 12/10/00       2      $   1,717.60
Neopost                                           Quarterly      $    167.07              12/24/00             None    $         --
Pitney Bowes Credit Corp.                          Monthly       $  4,810.67     12/10/00, 12/20/00, 12/1/00    2      $   7,903.94
Pitney Bowes Credit Corp.                         Quarterly      $  7,394.15         12/10/00, 11/10/00         1      $   1,512.53
Sharp Electronics Credit Co.                       Monthly       $    699.04              12/1/00              None    $         --
Stringer business Systems Inc.                     Monthly       $  2,163.51*             12/1/00               3      $   4,667.39
                                                                                 12/24/00, 12/6/00, 12/11/00,
Toshiba America Information Sys.                   Monthly       $  8,170.39         12/1/00, 12/18/00          3      $  21,942.26
Kilroy Realty Corp.                                Monthly       $153,583.82              12/1/00              None    $         --
Tiger Ventura County / c/o Sares-Regis Group       Monthly       $ 16,795.17      12/1/2000 - See Note A        3      $  50,385.51
Equity Office Properties (Chicago, IL)             Monthly       $ 20,026.42      12/1/2000 - See Note A        3      $  60,079.26
Bemiston Tower, Inc. / PM Realty Advisor           Monthly       $  5,343.67      12/1/2000 - See Note A        3      $  16,031.01
Trizec Kahn Properties                             Monthly       $226,076.40              12/1/00               1      $ 226,076.40
Bettman Real Estate Management                     Monthly       $  1,932.33              12/1/00            See Note B
MCLT LDB-7 Landmark Square                         Monthly       $  1,024.85      12/1/2000 - See Note A        3      $   3,074.55
Insignia ESG Inc. - Biltmore Co.                   Monthly       $ 12,437.51      12/1/2000 - See Note A        3      $  37,312.53
Equity Office Properties (Texas)                   Monthly       $  3,942.39      12/1/2000 - See Note A        3      $  11,827.17
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Amounts above do not include bank loan in default, which are partially secured
by stock of Superior National Insurance Group, Inc. and its subsidiaries.

*     Monthly payment is based on number of copies made for the previous month,
      therefore payment varies each month.

Note A: Notice of abandonment of lease was mailed to the landlord to inform the
        landlord that the Debtor is abandoning the premises and relinquishing
        all rights of possession.

Note B: Per the CLO, they have discontinued paying the lease as of 4/2000 and
        Superior has not occupied this office for a number of months.

BIG

3. Statement of Status of Payments to Secured Creditors and Lessors:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Post-Petition
                                         Frequency of                                                         Payments Not Made
                                         Payments per     Amount of                                      ---------------------------
      Creditor/Lessor                   Lease/Contract   Each Payment            Next Payment Due              Number         Amount
------------------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>            <C>                  <C>                        <C>             <C>
Citizens Leasing Corporation              Monthly        $206,798.26                 12/1/00                  None       $        --
Dell Financial Services                   Monthly        $ 52,321.29                 12/15/00                   3        $ 88,221.85
Principal Management Corporation /
   GCI CAPITAL, INC.                      Monthly        $ 30,827.28                 12/1/00                    1        $ 30,827.28
Mack Cali Realty / 500 Columbia Tpk
 Assoc., LLC                              Monthly        $  9,245.77         12/1/2000 - See Note A             3        $ 27,737.31
Transwestern CG Partner LLP / c/o
 Transwestern Property Co.                Monthly        $  5,908.75         12/1/2000 - See Note A             3        $ 17,726.25
SP Environmental Systems / Union Pacific
 Railroad Co.                             Monthly        $ 12,465.16         12/1/2000 - See Note A             3        $ 37,395.48
Kaiser-Francis Oil Company / c/o
 Realty Operating Company                 Monthly        $  3,778.00         12/1/2000 - See Note A             3        $ 11,334.00
Zodiac Development                        Monthly        $  9,454.31                 12/1/00                    2        $ 18,908.62
Koger Realty Services Inc.
 (Brentwood, TN)                          Monthly        $  2,418.60                 12/1/00             See Note A & B
Koger Realty Services Inc.
 (San Diego, CA)                          Monthly        $ 26,600.89                 12/1/00                    3        $ 79,802.67
Prospect Park 29 NTL Income Realty /
 c/o PCS Realty Advisors                  Monthly        $ 65,255.36                 12/1/00                  None       $        --
Colonial Property Trust                   Monthly        $  5,433.98                 12/1/00               See Note C
Fults Realty Corporation                  Monthly        $ 15,362.95                 12/1/00               See Note B
Woodland III Holding, LLC / c/o
 Wasatch Property Management              Monthly        $ 12,940.15                 12/1/00               See Note C
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Amounts above do not include bank loan in default, which are partially secured
by stock of Superior National Insurance Group, Inc. and its subsidiaries.

Note A: Notice of abandonment of lease was mailed to the landlord to inform the
        landlord that the Debtor is abandoning the premises and relinquishing
        all rights of possession.

Note B: Per the CLO, they are in the process of moving and/or selling the
        furniture & fixtures at this location and expect to vacate this premise
        by the end of 11/2000. The CLO has discontinued paying rent for this
        lease as of 7/2000.

Note C: Per the CLO, they have discontinued paying the lease as of 4/2000 and
        Superior has not occupied this office for a number of months.

SNIA

3. Statement of Status of Payments to Secured Creditors and Lessors:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Post-Petition
                                         Frequency of                                                         Payments Not Made
                                         Payments per     Amount of                                      ---------------------------
      Creditor/Lessor                   Lease/Contract   Each Payment            Next Payment Due              Number         Amount
------------------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>            <C>                       <C>                   <C>                  <C>
NONE

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Amounts above do not include bank loan in default, which are partially secured
by stock of Superior National Insurance Group, Inc. and its subsidiaries.

SNIS

3. Statement of Status of Payments to Secured Creditors and Lessors:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Post-Petition
                                         Frequency of                                                         Payments Not Made
                                         Payments per     Amount of                                      ---------------------------
      Creditor/Lessor                   Lease/Contract   Each Payment            Next Payment Due              Number         Amount
------------------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>            <C>                       <C>                   <C>                  <C>
NONE

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Amounts above do not include bank loan in default, which are partially secured
by stock of Superior National Insurance Group, Inc. and its subsidiaries.

<PAGE>

Superior National Insurance Group, Inc. in Bankruptcy                 SCHEDULE D
Debtor in Possession Operating Report No. 8
Insurance Coverage - 5
As of November 30, 2000

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                                                 Amount of    Policy       Premium Paid
State          Carrier                  Agent                                    Coverage    Exp Date        Thru Date
-----------------------------------------------------------------------------------------------------------------------------
<S>            <C>                      <C>                                      <C>         <C>            <C>
Arizona        Liberty Mutual Group     Di Buduo & De Fendis                     Statutory   12-Jul-01      12-Jul-01
California     State Compensation
                Insurance Fund          Di Buduo & De Fendis                     Statutory   01-Jun-01      30-Nov-00
Colorado       Pinnacol Assurance       Di Buduo & De Fendis                     Statutory   01-Jun-01      01-Jun-01
Illinois       Liberty Mutual Group     Di Buduo & De Fendis                     Statutory   12-Jul-01      12-Jul-01
Indiana        Liberty Mutual Group     Di Buduo & De Fendis                     Statutory   13-Jul-01      13-Jul-01
Kansas         Travelers Insurance      Di Buduo & De Fendis                     Statutory   11-Aug-01      11-Aug-01
                Company
Missouri       Travelers Property &
                Casualty                Di Buduo & De Fendis                     Statutory   02-Jun-01      02-Jun-01
New Jersey     Granite State Insurance
                Company                 Di Buduo & De Fendis                     Statutory   02-Jun-01      02-Jun-01
Oklahoma       State Insurance Fund     Di Buduo & De Fendis                     Statutory   15-Nov-01      15-Nov-01
Pennsylvania   State Workmens'
                Insurance Fund          Di Buduo & De Fendis                     Statutory   03-Jun-01      03-Jun-01
Texas          Texas W/C Insurance
                Fund                    Di Buduo & De Fendis                     Statutory   18-Jul-01      18-Jul-01
</TABLE>

Note 1: The policies for Arkansas, Florida, Georgia, Louisiana, New Mexico, New
York, Oregon, Tennessee, Utah, and Wisconsin were all cancelled in
December 2000.

Note 2: Within all of the policies identified above the following entities are
covered for Workers' Compensation: SNIG, BIG, SNIA, and SNIS.

<PAGE>

November 30, 2000                                                     Schedule E

<TABLE>
<CAPTION>
                                                                                                           Policy Exp.  Premium paid
Company                   Agent               Type of Insurance                Amount of Coverage             Date       thru date
-------                   -----               -----------------                ------------------          -----------   -----------
<S>                       <C>                 <C>                              <C>                         <C>           <C>
SNIG, BIG, SNIS, & SNIA   DiBudio & DeFendis  Commercial General Liability
                                               Package
                                               General Liability               $1 million per occurence     11/13/01      11/13/01
                                                                               $2 million aggregate
                                                                               excluded
                                               Advertising Injury              $1 million per claim
                                               Employee Benefit Liability      $2 million aggregate

SNIG, BIG, SNIS, & SNIA   DiBudio & DeFendis  Automobile
                                               Liability                       $1 million                   11/13/01      11/13/01
                                               Medical                         $5,000
                                               Uninsured Motorist              $500,000
                                               Physical Damage                 Actual value less $500
                                                                                deductible

SNIG, BIG, SNIS, & SNIA   Carpenter Moore     Directors & Officers (run-off)
                                               Reliance                        $5,000,000                   5/1/03        5/1/03
                                               Lloyd's of London               $5,000,000 xs $5,000,000
                                               Gulf Insurance Company          $10,000,000 xs $10,000,000
                                               Executive Risk Indemnity        $10,000,000 xs $20,000,000
                                               Philadelphia Indemnity          $10,000,000 xs $30,000,000

SNIG, BIG, SNIS, & SNIA   DiBudio & DeFendis  Commercial Umbrella              $10 million per occurence    11/13/01      11/13/01
                                                                               $10 million aggregate

SNIG, BIG, SNIS, & SNIA   DiBudio & DeFendis  Excess Liability                 $10 million per occurence    11/13/01      11/13/01
                                                                               $10 million aggregate

SNIG, BIG, SNIS, & SNIA   DiBudio & DeFendis  Difference in Condition          $10 million per occurrence   1/22/01       1/22/01
                                                                               $10 million aggregate
                                                                               *$25,000 deductible, minimum
                                                                               and 5% of total insurable
                                                                               property.

SNIG, BIG, SNIS, & SNIA   DiBudio & DeFendis  Difference in Condition Excess  $10 million                   1/22/01       1/22/01

SNIG, BIG, SNIS, & SNIA   DiBudio & DeFendis  Accident Policy (Life/Travel)   $1 million to $3 million      1/15/01       1/15/01
                                                                              (depends on rank of
                                                                              officer)

BIG only                  DiBudio & DeFendis  Professional Liability Run Off  $10 million per loss          12/10/04      12/10/04
                                              BIG companies only/acts b/f     & in the aggregate
                                              12/10/99
                                              * $500,000 deductible
</TABLE>

Note: The Debtor is currently in the process of obtaining coverage on the
      following policies that expired on 12/10/2000 (Employer Practice
      Liability, Fiduciary Liability, Fidelity Bond, and Professional Liability
      Run off - SNIG only)

<PAGE>

SCHEDULE F
NOVEMBER 30, 2000

SNIG, BIG, SNIS, SNIA

<TABLE>
<CAPTION>
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                                                            Type                                        Post-Petition
                Name of Professional                    Professional                                    Unpaid Total
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<S>                                             <C>                                                     <C>           <C>
Quinn Emanuel Urquhart Oliver & Hedges LLP      Special Litigation Counsel                              $670,119      See Note A
Riordan & McKenzie                              Corporate Counsel                                       $ 60,602      See Note A
Christopher Maisel                              Access Facilitator                                      $381,937      See Note A
Paul, Weiss, Rifkind, Wharton & Garrison                                                                $ 62,562      See Note A
Tillinghast-Towers, Perrin                      Actuaries                                               $ 32,261      See Note A
Latham & Watkins                                Counsel for Official Committee of Unsecured Creditors   $224,351      See Note A

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</TABLE>

* Unpaid amount is through 9/30/00, with the exception of Quinn Emanuel which is
  through 10/31/00.

Note A - All fees were approved for payment by the Bankruptcy Court in
         December 2000 and subsequently paid in December 2000 and January 2001,
         except Riordan & McKenzie in which fees have been paid through
         retainer.