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Core Principles

CARING COMMUNITIES CORE "GROSKOPF" PRINCIPLES

• Covenant -Caring Communities primary duty is to meet all of its contractual obligations to all of its Policyholders.

• Disciplined Operation -An absolute commitment to disciplined underwriting practices, setting insurance premiums on an actuarially sound basis, procuring reinsurance protection against large losses, and conservative asset management.

• Skin in the Game - All Participating Members must be Caring Communities’ Policyholders, have made a long term strategic commitment to the Company and have contributed sufficient capital to fulfill the Company’s primary duty.

• Accountable Risk Management –• Accountable Risk Management – Holding Members accountable for implementing proven risk management practices and participating in top quality educational programs to improve resident quality of life.

• Engaged CEOs -Direct involvement of Member CEOs in Caring Communities’governance and attendance at Membership meetings.