USAA and the Hartford Team Up to Offer Insurance to400,000 USAA Small-Business Owners.

Business Editors & Insurance Writers

HARTFORD, Conn.--(BUSINESS WIRE)--Nov. 27, 2000

USAA and The Hartford Financial Services Group announced an exclusive alliance today that offers insurance protection to USAA members who own small

Business Credit Solutions

• Get a Credit Report
• Get a D&B D-U-N-S Number
• Monitor My Business Credit - FREE TRIAL!

Business Credit Advice

• Business Credit Basics
• Build My Business Credit
• Extend Credit to Customers
• Use My Credit to Get Loans

Known as the USAA Business Insurance Program, the new exclusive alliance replaces the USAA General Agency's previous small business insurance program, in which USAA brokered commercial coverage for its members with nine carriers, including The Hartford (NYSE:HIG). Currently, USAA members own about 16,500 policies through that program.

"We are very enthusiastic about our new alliance with The Hartford," said Steven F. Goldberg, senior vice president of underwriting and pricing for USAA's Property and Casualty Insurance Group.

"Almost 400,000 USAA members own small businesses. Our exclusive agreement with The Hartford, whose employees have provided top-notch insurance protection and customer service for decades, will help us ensure USAA meets its members' growing need for competitively priced business insurance and unparalleled service. Working hand-in-hand with The Hartford, we plan to dramatically increase service to USAA members who are small-business owners," Goldberg said.

Under the program, USAA will perform sales operations through a dedicated team of experienced commercial insurance representatives. USAA will also market the insurance to its members. The Hartford has formed dedicated teams to underwrite policies and perform policy service, claims processing and billing for the new alliance. Additionally, the policy jacket will be co-branded to prominently display the USAA and The Hartford logos.

"We're pleased to offer our industry-leading small business program through an alliance with USAA, a premier organization that shares our philosophy of excellence in customer service," said Judy Blades, president of business insurance at The Hartford. "We know that members who have a loyal and trusting relationship with an organization, as they do with USAA, are likely to seek other products and services from that organization, and we're happy to be USAA's partner for small business insurance."

The centerpiece of the agreement is The Hartford's Spectrum policy, which is available to more than 700 classes of business. The Spectrum policy provides today's small businesses with essential protections, such as business income coverage to help keep a company going if a loss shuts down operations and equipment breakdown coverage to pay for damaged equipment. Additionally, it includes employment practices liability insurance, a key coverage in a litigious society. Other available coverages are commercial auto and workers' compensation. The policy also can be economically expanded with a package of coverages tailored to specific industries.

One of the largest writers of small business insurance in the country, The Hartford's premium growth for that market is about five times the rate of the industry.

USAA has been serving military families since 1922 and has become one of America's leading insurance and financial services companies. The association, well known for its exceptional service, offers its 4.3 million members a comprehensive range of insurance, banking, and investment products and services designed to help them meet their financial needs. Headquartered in San Antonio, Texas, with offices throughout the United States and Europe, USAA owns or manages assets of more than $61.7 billion.

The Hartford (NYSE:HIG) is one of the nation's largest insurance and financial services companies, with 1999 revenue of $13.5 billion. As of Sept. 30, 2000, The Hartford had assets of $177.2 billion and shareholders' equity of $6.7 billion. The company is a leading provider of investment products, life insurance and employee benefits; automobile and homeowners products; commercial property and casualty insurance; and reinsurance.

                    USAA Business Insurance Program
                              AT A GLANCE

WHAT:        A comprehensive small business insurance program for USAA
             underwritten by The Hartford

FOR:         400,000 USAA members with small businesses

WHERE:       48 states and Washington, D.C.
             (Alaska and Hawaii are excluded)

WHEN:        Available countrywide immediately

HOW:         Marketed by USAA to its members via direct mail and
             telemarketing

COVERAGES:   Tailored property and liability options with limits to
             cover the needs of each small business, including:

                --  Building and business personal property up to $5
                    million

                --  Business liability limits up to $2 million

                --  Employment practices liability up to $1 million

                --  Commercial auto for up to 10 vehicles

                --  Workers' compensation for payrolls up to $500,000
                    annually

                --  Umbrella liability up to $10 million

                --  Loss of business income on an actual loss
                    sustained basis

                --  Equipment breakdown up to the property limit

                --  Theft due to computer fraud up to $100,000

                --  Variety of special endorsements customized for
                    industries

TARGETS:     Available to more than 700 classes of business,
             including:

                --  Small business program retailers

                --  Small manufacturers

                --  Artisan contractors

                --  High tech industries such as Web site design and
                    development, software development and Internet
                    tool providers

                --  Financial services companies such as security
                    brokers and mortgage brokers

                --  Cultural organizations such as museums, art
                    galleries and libraries

                --  Associations such as charitable foundations,
                    professional associations and civic associations

                --  Book and local newspaper publishers