1. PROPERTY 101 CRL Training Conference NOVEMBER 18, 2015 Lindsay Grimes Vice President, Property Practice

2. MARSH 1 Agenda CRL Reinsurance Program Structure Underwriting a Statement of Values –RMS Formatting –COPE Data Commonly Misunderstood Coverages –Course of Construction –Historical Property

3. MARSH 2 Reinsurance Program Structure 2015-2016 All Risk Terrorism Equipment Breakdown

4. MARSH 3 Underwriting a Statement of Values RMS Formatting Risk Management Solutions (RMS) Version 15.0 Why is modeling important? –Program premium – Average Annual Loss (AAL) –Carrier attachment points and capacity – Probable Maximum Loss (PML) Why does the format matter? –Accuracy of modeling output –Faster modeling results –Input into carrier modeling software CRL Statement of Values Template

5. MARSH 4 Underwriting a Statement of Values COPE Data What is COPE data? Why is COPE data important? –Complete view of risk exposure –Differentiation of risks –Accurate and cost-effective underwriting decisions Primary COPE characteristics Secondary modifiers

6. MARSH 5 Commonly Misunderstood Coverages Course of Construction Limit $25,000,000 per location –Subject to total project value not to exceed $25,000,000 –Scheduled and non-scheduled locations –Including soft costs When to consider a stand alone Builder’s risk policy? –Project value exceeds $25,000,000 –Lower deductible needed –Project term is outside program period –Specific coverage terms required

7. MARSH 6 Commonly Misunderstood Coverages Historical Property Included within blanket program limit Requirements for historical property reproduction value –Location marked as historical property on Statement of Values –Detailed appraisal including reproduction cost ­Dated within 5 years from policy effective date Reproduction Cost –Like kind and quality materials compatible to those originally used ­Includes authentic materials if available –Cost of skilled labor –Restoration of property as nearly as possible to its original condition