Frontier Communications 2007 Annual Report Download - page 97

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
CNA serves as our agent with respect to general liability claims (auto, workers compensation and other
insured perils of the Company). As our agent, they administer all claims and make payments for claims on our
behalf. We reimburse CNA for such services upon presentation of their invoice. To serve as our agent and make
payments on our behalf, CNA requires that we establish a letter of credit in their favor. CNA could potentially
draw against this letter of credit if we failed to reimburse CNA in accordance with the terms of our agreement.
The value of the letter of credit is reviewed annually and adjusted based on claims history.
None of the above letters of credit restrict our cash balances.
F-47