1. Specialty Life, Accident, Disability, And Special Risk Solutions
Managing General Underwriter for Lloyd’s of London
Specialty Life, Accident, Disability,
And
Special Risk Solutions
Inc. Magazine named Exceptional Risk Advisors as the 45th fastest growing private company on the prestigious Inc. 500 list for 2010.
Before we get started:
Please tell me a little more about your practice
- What does your practice look like today?
- Types of clients?
- Products?
- Strengths?
- Weaknesses?
-- What are your expectations for your practice growth a year from now?
What will make this meeting a success for you?
Introduce QuickStart – What advisors find to be most productive, is if that at the end of the meeting you determine we are a strong fit for your business, we find an initial case to work on so you can get a strong feel for the product design and how we operate. Would you agree that that would be an effective use of our time?

2. Managing General Underwriter:
Lloyd’s Syndicates delegate their
underwriting authority to ERA to write
policies on Lloyd’s behalf up to $125,000,000
Annual Audit
Function like an Insurance Company
Authority to set pricing
Authority to bind coverage
Underwriting decisions are made in house
Illustrations typically within 3 hours
- Handle all surplus lines & regulatory issues
Proprietary wording, match contract language
History of the Lloyd’s Building
Underwriting Flexibility
Mention the bell – How it is rung for a large loss.
Mention the book
Exceptional Risk Advisors Active Coverholder Status

3. Identifying Large Opportunities in the Excess Market Specialty Life Solutions Buy/Sell Disability Key Person Disability Exceptional Occupation DI High Limit Disability Income

4. Contract Performance Indemnity
Coverage Includes:
- Provides coverage for Accident & Sickness
- MUST be 3rd party owned to cover a contract
- Typically written in terms of 30,60, or 90 days, or up to 2 years
No medical underwriting, coverage can be placed in hours
Limits Available up to $50,000,000 any one person
Underwriting = 1 page application + copy of the contract
(Full application required for 1 to 2 year terms)
Uses: When the need for life insurance is IMMEDIATE!
Mergers & Acquisitions Loan Agreements
Cross Purchase Agreements Overseas coverage
Employment Contracts Entity Purchase Agreements
Cover death on a:
Not convertible
Non-renewable
No cash value
Discounts available with Medicals
Lloyd’s does not offer traditional life insurance

5. Real Case: $300 Million Deal
Risk Profile: - Private Equity driven $300,000,000 acquisition
Deal contingent upon placement of Key Person
Life and Disability protection on 48 year old CEO.
- Coverage amount required: $20,000,000
Solution:
$20,000,000 of Contract Performance Indemnity bound immediately (60 day policy)
$20,000,000 of Key Person Disability bound immediately (Pre-existing Cond. Excl.)
Pre-existing conditions exclusion removed upon receipt and review of medicals.
5 Year Disability Deal, lump sum benefit after 12 month elimination period.
Projected Compensation to Advisor
Mention: Unless specified otherwise, all of the policies we design are designed with “Own Occupation” definitions of disability.
CPI
Total Time on Risk
Premium
Commission to Advisor
60 days
$25,000
$3,750
Key Person Disability
5 years
$105,000 each year
$15,750 each year
Total Commission to Advisor:
$82,500

6. Slide Focus: Paying claims
War Story: $12M Key Man Claim for Neurosurgeon
– what we are here for at the end of the day
– that’s why we have jobs
Mention CE Opportunities – Lunch & Learn – Breakfast Breakouts
Discuss success of the 365 Program – Educating referral sources

7. Accidental Death & Dismemberment
Coverage:
Provides Accident coverage
Can be personally owned or corporate owned
Terms available from 1 day to 3 years
No medical underwriting- does not cover sickness
Benefits exceeding $125,000,000 per person
War and Terrorism coverage
24 hour worldwide coverage
Uses:
War Risk Coverage Catastrophic Travel Accident
Estate Planning Piloting
Scuba Diving Hang Gliding
Mountain Climbing Sky Diving
Race Car Driving Exclusion Buybacks on Traditional Policies

8. Key Person Disability Coverage: Ideal Candidates:
Benefit limits exceeding $100,000,000 per insured
Lump Sum benefits beginning after 6, 12, 18, or 24 months
Monthly Benefits beginning after 30, 60, and 90 days
Policy Terms up to 5 years
Individual or Multi-life plans
Ability to manuscript policy wording to match a client’s
contractual obligation or specific needs.
Ideal Candidates:
Contractual Obligations Private Equity Managers (& Funded Portfolio Company Key Execs.)
C-Suite Executives (CEOs, CFOs, COOs) Entrepreneurs
Specialty Physicians & Surgeons Technology Experts / R&D Leaders
Hedge Fund Managers

9. CEO of Large Corporation
Risk Profile: year old CEO of video game distributor
Earning $5,000,000 per year
Stockholder Requirement: $25,000,000 of
Key Person Life & Disability to protect their equity investment
Solution: - Policy Structure: Exceptional Risk Advisors designed a Key Person Disability policy
to pay a lump sum benefit of $25,000,000 after a 12 month elimination period
Underwriting was completed using the recent medical information and financial
statements required to underwrite the life insurance
Projected Compensation to Advisor
Total Time on Risk
Average Premium
Commission to Advisor
10 years
(Two 5 year policy terms)
$118,000
(each year)
$17,700
Total Commission to Advisor:
$177,000

10. Real Case: $60 Million Company With A Large Disability Exposure
Risk Profile: - A privately-held technology firm with 4 partners
All with equal equity values (25% each)
Average age of partners over 5 years – 53
Looking to fund Buy/Sell agreement for a disability of a partner
Solution: - Policy Structure: Per the buy-sell agreement, the partners’ policies were
designed to pay a $15,000,000 lump sum after a 12 month elimination period
- Life insurance requirements were used to underwrite the disability exposure
5 year policy
Projected Compensation to Advisor
Total Time on Risk
Average Premium
Commission to Advisor
5 years
$416,000 (each year)
$62,400 (each year)
Total Commission to Advisor:
$312,000

11. High Limit Disability Income
Coverage:
Monthly benefits up to $500,000 per month
Elimination periods of 90, 180, and 365 days
“Own Occupation” definitions of Disability
Benefit periods up to 60 months
Lump sum benefits exceeding $25,000,000
Policy Terms up to 5 years
Individual or Multi-life plans
Residual benefit rider & COLA available
Ideal Candidates
Contractual Obligations Private Equity(& Funded Portfolio Company Key Execs.)
C-Suite Executives (CEOs, CFOs, COOs) Entrepreneurs
Specialty Physicians & Surgeons Technology Experts / R&D Leaders
Hedge Fund Managers 11

12. Real Case: Plastic Surgeon
Risk Profile:
- 46 year old plastic surgeon earning $1,300,000 annually
$15,000 per month of traditional disability benefits
Less than 15% of income is insured
Solution:
$55,000 per month for 60 months (90 day Elimination Period)
$2,000,000 after 5 years of monthly benefits
Benefit Aggregate: $5,300,000
“Own Occupation” definition of disability
Included Residual and COLA riders
Projected Compensation to Advisor
Total Time on Risk
Average Premium
Commission to Advisor
9 years
(Three 3 year policy terms)
$39,000
(each year)
$5,850
Total Commission to Advisor:
$52,650

14. Exceptional Occupations
Athletes
College Athletes
Professional Athletes
Key Player Coverage
Entertainment Industry
Actors & Actresses
Musicians & Singers
Executive Producers
Directors
Authors & Publishers
Artists
Stay conservative on sports parameters below: Note commission
Professional Basketball :
-Player no more than 2 seasons away from current contract expiry
-Player not older than 30 years of age
-Sum insured not to exceed $5 Million (higher sums insured to be referred)
College Basketball:
-Player projected to be drafted in upcoming draft in Round 1-2
-Sum insured not to exceed $5 Million for a Round 1 pick (higher sums insured to be referred)
-Sum insured not to exceed $1 Million for a Round 2 pick (higher sums insured to be referred)
Professional Baseball:
-Player no more than 2 seasons away from current contract expiry or arbitration
-Player not older than 32 years of age
College Baseball:
-Player projected to be drafted in the upcoming draft in Round 1-5
-Sum insured not to exceed $2.5 Million for a Round 1 pick (higher sums insured to be referred)
-Sum insured not to exceed $1 Million for a Round 2 pick
-Sum insured not to exceed $500 Thousand for a Round 3 pick
-Sum insured not to exceed $500 Thousand for a Round 4 pick
-Sum insured not to exceed $500 Thousand for a Round 5 pick
Professional Football:
-Player must be active on a team roster with a non-guaranteed contract
-Player not older than 29 years of age
-Sum insured not to exceed $5 Million (higher sums insured to be referred)
College Football:
-Player projected to be drafted in the upcoming draft in Round 1-3
-Sum insured not to exceed $5 Million for a Round 1 pick (higher sums insured to be referred)
-Sum insured not to exceed $1 Million for a Round 2 pick
-Sum insured not to exceed $500 Thousand for a Round 3 pick
Professional Hockey:
-Player no more than 2 seasons away from current contract expiry
-Player not older than 30 years of age (possible off-ice coverage for older players)
College Hockey:
-Player projected to be drafted in the upcoming draft in Round 1
Professional Golf:
-Player must be ranked in the top 100 players of the PGA or LPGA Tour

15. Real Case: Professional Athlete
Risk Profile: - Professional football player, Age Contract: $5M remaining over three years Solution: - $5,000,000 lump sum after 12 months of disability
Policy included 24 hour worldwide, on and off field
coverage for accident and sickness
- Policy Term – One Year
Looking for younger athletes
Contract renewals
Projected Compensation to Advisor
Total Time on Risk
Average Premium
Commission
1 year
(Year to Year)
$60,000
$9,000*
Total Commission to Advisor:
$9,000
*commissions for sports cases fluctuate on a case by case basis

16. A-List Actress Earning $10M+ Annually
Real Case:
A-List Actress Earning $10M+ Annually
Risk Profile: year old Hollywood starlet
Earning $10,000,000+ annually
No traditional disability coverage in-force
Leads extravagant lifestyle
Solution: - $500,000 a month for 60 months (90 day elimination period)
Lump sum payout of $20,000,000 after 60 months
Policy Aggregate: $50,000,000
Projected Compensation to Advisor
Total Time on Risk
Average Premium
Commission to Advisor
6 years
(Two 3 year policy terms)
$187,000
(each year)
$28,050
Total Commission to Advisor:
$168,300

17. Specialty Risks Kidnap & Ransom Contingency / Non-Appearance
Professional Football:
-Player must be active on a team roster with a non-guaranteed contract
-Player not older than 29 years of age
-Sum insured not to exceed $5 Million (higher sums insured to be referred)
College Football:
-Player projected to be drafted in the upcoming draft in Round 1-3
-Sum insured not to exceed $5 Million for a Round 1 pick (higher sums insured to be referred)
-Sum insured not to exceed $1 Million for a Round 2 pick
-Sum insured not to exceed $500 Thousand for a Round 3 pick
Professional Hockey:
-Player no more than 2 seasons away from current contract expiry
-Player not older than 30 years of age (possible off-ice coverage for older players)
College Hockey:
-Player projected to be drafted in the upcoming draft in Round 1
Professional Golf:
-Player must be ranked in the top 100 players of the PGA or LPGA Tour

18. QuickStart Q & A Thank You!
Managing General Underwriter for Lloyd’s of London
QuickStart
Q & A
Thank You!
Visit Exceptional Risk Advisors at:
The International Forum
AALU
NAILBA
JHA Conference
International DI Society
I am sure you have colleague’s whom can benefit from this presentation; can you think of anyone that should learn about us?
Your firm sounds like it could benefit from our CE Program. Can we set a time for next week and discuss how our CE Program can benefit your firm.