At Direct General, we recognize that your privacy and the unauthorized use of your nonpublic personal information (“personal information”) and information regarding your creditworthiness (“credit information”) are of significant concern to you. We want to assure you that Direct General is committed to keeping all such information you furnish to us through any medium, including the Internet, confidential. To help ease your concerns, we have set forth below a series of questions and answers that we believe addresses the most important issues related to your privacy and our use of your personal and credit information. You should be aware that occasionally we may revise this Privacy Statement, so we encourage you to stop by any of our neighborhood offices at any time and request a current copy. You may also visit our Web page periodically on the Internet at www.direct-general.com and review our Privacy Statement. In addition, you may request a current copy of our Privacy Statement by calling 800-627-8006 or by writing to ATTN: Privacy Statement, Client Services Administrator, Direct Administration, Inc., 15151 Florida Blvd., Baton Rouge, LA 70819.

We may collect information, including personal and credit information, about you when you obtain an insurance quote, apply for one of our products, use one of our services, or obtain other information from us. Depending on your state of residence and the nature of your transaction with us, the types of information we may collect could include: your name, marital status, date of birth, the names and dates of birth of other persons in your household, address, telephone number, social security number, driving records, the types of vehicles you drive, health information, income and tax data, employment, credit history, bank information, lienholder information, information about other insurance you have or have had, and/or your e-mail address. We collect information about you from telephone conversations with you; applications, or other information forms you provide us; information about your transactions with our affiliates, others, or us, such as claims and premium finance information; and information we receive from state agencies, such as state departments of motor vehicles and consumer reporting organizations. We do not collect personal or credit information about you unless you consent or we are otherwise permitted by law to obtain it.

As a general matter, we use your personal and/or credit information to: help underwrite and provide accurate insurance premium rate quotes; provide insurance claim services; provide premium financing services; provide or offer other personal financial and consumer products and services; and provide, maintain and improve customer service.

Our affiliated companies may share information about you with each other. Occasionally we also may share your personal information with unaffiliated third parties. However, we do not disclose any information about our customers or former customers to anyone, except as permitted or required by law. These disclosures are generally described as follows:

Among our Group of Companies. Companies within the Direct General Group may share information about you, including information that: identifies you; describes our transactions and experiences with you (such as your payment record and claims history), and credit information that helps us determine your insurance eligibility. Direct General provides a variety of products and services through several separate companies. To provide you with improved service and inform you of product opportunities that may be available to you, the companies within the Direct General Group may share such information about you among themselves. For example, some of our affiliated companies share or receive information to provide technical or operational support services - such as to prepare notices concerning your insurance policies or accounts with us or to provide data processing services. In addition, insurance policy information may be shared to assist in resolving a claim on your policy. Other of our affiliated companies may provide you information about other insurance products and non-insurance consumer products and financial services offered by them directly or through them acting as an agent on behalf of another organization.

Outside our Group of Companies. To better serve you, we sometimes contract with outside vendors who provide various services, such as printing and mail services, on our behalf. These third parties agree to safeguard and keep confidential our personal information about you and the products and services that you obtain from us. Those parties are required by law to restrict the use and disclosure of your personal information.

In addition, we may provide your personal information to other third parties who have a legitimate need for the information. These may include, for example, third party claims adjusters and investigators, actuarial consultants, reinsurers, governmental agencies, courts, and law enforcement authorities. We may also provide personal information to insurance industry statistical reporting organizations, but your individual identity will not be revealed through such statistical reports.

From time to time, we may also contract with parties outside our affiliated group so we can make available to you certain financial and other consumer products and services. For example, we may contract with a bank or other lending institution, tax return preparer or processor, or money transfer provider to make available to you various products and services they provide. We may also enter into joint marketing agreements with other financial institutions or third party service providers. In those cases, we may disclose to those companies the types of information we collect about you as described in response to question 1 above, (but not your bank account or credit card information). Those companies would be subject to confidentiality agreements with us as well as other legal restrictions on using your nonpublic information, unless you have affirmatively agreed or given your prior permission to them for other uses.

There are circumstances where we are lawfully allowed or required to share information about you. These circumstances include: among our affiliates, for example, if the information relates to your identification (such as your name and address) or to your transactions and experiences with us (such as your payment record and claims history); with a third party, for example, if it is necessary to provide services to effect, administer or enforce a transaction requested by you; with any of our affiliated companies that provide such services to you; with regulatory authorities; and when otherwise required by law or legal process. In those circumstances, it is our policy to share your information only to the extent required or allowed by law.

However, you have the right to prevent our sharing certain information about you in certain circumstances.

Sharing credit information among Direct General affiliates. If you choose to, you can instruct us not to share among our affiliates certain credit information about you contained in consumer reports such as your credit history. If you prefer that we not share your credit information among our affiliated companies (unless the information is otherwise required or allowed by law to be shared), then please call us toll-free at 800-627-8006 with your specific instructions.

Sharing personal information with third parties or among Direct General affiliates. If you prefer that we not share your personal information with third parties or among our own affiliated companies (unless the information is otherwise required or allowed by law to be shared), then please call us toll-free at 800-627-8006.

In either case, please have all of your policy, finance agreement, and other account numbers available when you call. If you are a new customer, please allow five (5) business days after the date of your transaction with us before you call. You understand that if you call and ask us not to share your credit information or your personal information, you may not receive valuable information about financial and other consumer products and services (possibly including certain types of discounts on, or other special offers related to, non-insurance products and services) that could be of interest to you and your family.

One joint account holder or policyholder can bind the decision not to share on joint accounts and insurance policies, including other covered persons. For example, if you and your spouse are joint insureds on an auto policy and you choose not to share, your decision will bind your spouse only for the joint accounts or joint policies. Individual accounts and policies of a spouse will not be affected by the other spouse’s decision not to share information with respect to their individual accounts and policies.

We maintain physical, electronic, and procedural safeguards that comply with industry standards to protect your personal and credit information.

It is important to us that all information about you in our files is accurate. You can help us by providing up-to-date information and notifying us of any inaccuracies in your information. You can notify us by writing to Direct Administration, Inc., Customer Service Department, 15151 Florida Boulevard, Baton Rouge, Louisiana, 70819; or by calling our Customer Service Department at 800-627-8006. Please provide all of your policy, finance agreement, and other account numbers when you write, or have these numbers available when you call.

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We hope that this information has answered any questions you may have about why we need to collect certain information about you and how we strive to protect that information. Maintaining your trust and confidence is an important part of our commitment to providing superior customer service to you.

The Direct General Group of Companies

Our Privacy Policy applies to all companies within the Direct General Group of Companies:

Direct General Corporation
Direct Insurance Company
Direct General Insurance Company
Direct National Insurance Company
Direct General Insurance Company of Louisiana
Direct General Insurance Company of Mississippi
Direct Life Insurance Company
Direct General Life Insurance Company
Direct General Financial Services, Inc.
Direct General Premium Finance Company
Direct General Insurance Agency, Inc. (Arkansas)
Direct General Insurance Agency, Inc.*
Direct General Agency of Georgia, Inc.
Direct General Agency of Kentucky, Inc.
Direct General Insurance Agency of Louisiana, Inc.
Direct General Insurance Agency, Inc.(Mississippi)
Direct General Insurance Agency of North Carolina, Inc.
Direct General Insurance Agency of South Carolina, Inc.
Direct General Insurance Agency of Tennessee, Inc.
Direct General Insurance Agency, Inc.(Texas)
Right Choice Insurance Agency, Inc.
Direct Administration, Inc.
Direct Adjusting Company, Inc.
Direct General Consumer Products, Inc.**

In addition to your in-person transactions with us, Direct General also is concerned with and sensitive to privacy issues related to your use of the Internet. We are committed to protecting the privacy of any information we receive from you on the Internet, and to the appropriate use of that information. Any information received from visitors to our web site will not be used for direct marketing or solicitation of business or for any other purpose. Direct does not release personal information obtained from the use of our web site to any other party unless we are permitted or required to do so by law. Information may only be accessed within Direct General by personnel who have a legitimate business reason to access it. Currently we do not save any information that you temporarily provide to us when you log on to our web site. Our web site is made available solely for the purpose of providing information about Direct General, its available products and services, job opportunities, and e-mail access to certain members of our staff. If our Internet Privacy Policy should change in the future, this Statement will be revised to reflect those changes.

Privacy 01/06                                                          2006 Direct General Corporation