On September 4, 1998, the parties appeared by counsel before the Court on Lloyd's Objections to Report and Recommendations of Special Master Dalton. The Special Master entered his Report and recommendation as to Order of Security on July 23, 1998. It set out in great detail findings of fact and conclusions of law and a recommended order for this Court. The Special Master ordered Certain Underwriters at Lloyd's of London (Lloyd's) to post a new letter of credit or other pre-answer security in the amount of $10,787,035.00, pursuant to sections 375.281 and 375.789, RSMo 1994 and Article IX of the Reinsurance Agreements. The Special Master required security in the form of a clean, unconditional, irrevocable Letter of Credit, Cash Advance or combination thereof.

The Court has considered the arguments of the parties and the record below. It is hereby ordered that the Court adopts the Special Master's Report, Recommendations and proposed Order in their entirety as its own Order. Lloyd's shall post the required security within ten days of the date of this order.

SO ORDERED.

__(Signed)_________________________________

Judge Patricia S. Joyce

Date: ___9/28/98________________

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