Notes to Statutory Financial Statements

TABLE OF CONTENTS

1.
   Organization
2.
   Summary of Significant Accounting Policies
   
A.
   Basis of Presentation
   
B.
   Disclosure of Certain Risks and Uncertainties
   
C.
   Cash
   
D.
   Investments
   
E.
   Real Estate and Electronic Data Processing Equipment
   
F.
   "Occurrence Plus" Policies
   
G.
   Premiums and Unearned Premiums
   
H.
   Policyholders Dividends
   
I.
   Reserve for Losses and Loss Adjustment Expenses
   
J.
   Federal Income Tax
3.
   Investments
4.
   Reserve for Losses and Loss Adjustment Expenses
5.
   Reinsurance
6.
   Related Party Transactions
7.
   Surplus and Dividends
8.
   Federal Income Tax
9.
   Postretirement and Supplemental Executive Retirement Plans
10.
   Commitments and Contingencies
11.
   Subsequent Events

TABLE OF CONTENTS

Cover Page

Letter to Policyholders

A Year of Market Turmoil

Princeton's Legacy Continues

2001 Financial Statements


© 2002 Princeton Insurance, a MLMIC Group company, 746 Alexander Rd., Princeton, NJ 08540-6305 877-PI-EASY2. All rights reserved.