1 Welcome to California Product Training & Underwriting Risk Profile Webinar To join the audio portion of the call: Please dial: 1 (877) Participant Code: #

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3 Encompass Insurance CNA USP Home Auto Boat Encompass SPP

4 USP Product  Segment (Monoline) Policies  Auto, Home, Condo, Renters  Package Policy  Auto & Primary Property Needed to Qualify as a Package (Property = Home or Condo or Renter)  Can Include Boat, Dwelling Fire, Umbrella, etc.

5 USP Property Coverage Levels  Special  No Towing & Rental Reimbursement –  Competes with ISO HO3 with Options  Deluxe  Automatically includes Towing & Rental Reimbursement on auto  Enhanced HO3 with Higher Internal Limits Included  Unique Coverages  Elite  Automatically includes Towing & Rental Reimbursement on auto  Open Peril on home  Even Higher Internal Limits  All the Bells and Whistles What Is USP?

6 USP Product  USP Provides Great Flexibility to Meet the Changing Needs of the Clients!  Different coverage levels allow for support throughout the customers lifetime.  Ability to Have Different Auto & Property Coverage Levels on package  Special Auto with Elite Property

7  Annual Policy  Underwriting is Once And Done  Locked in rates for a year  One Application From Quote to Issue  Package Specific Benefits  Credit for existing insurance aka CFEI (package)  We will discuss details in a bit  Package discount  Less of a chance for gaps  One third less servicing time Encompass Benefits to Customer

8 Package Policy Benefits Convenience of:  One Bill  One Policy/Dec Page  One Agent  One Company  One Deductible Power of One!!!!!!

9 USP Package Advantage: One Deductible per covered loss Competition Encompass Auto # Auto # Boat Home 1,000 1,000 Total Ded. $2,500 $1,000 Claims Benefit USP

10 Sales Opportunities!  Package discount applies at inception  Ability to have different effective dates  Once and done  364 days out  Excess/gap coverage  Locked in on rates/underwriting CFEI aka Credit for Existing Insurance

11 About Our Auto Features..... CNA USP Home Auto Boat USP Desk Reference for Coverage has Features, Examples and Benefits Encompass SPP

12 Key Auto Coverages YES YES, IT’S AN ANNUAL POLICY!!  Rental Reimbursement  Towing  Emergency Transportation  Automobile Electronic Equipment  Trip Interruption  Loan/Lease Gap & Replacement Value

13 Miscellaneous Vehicles  All-Terrain Vehicles  Dune Buggies  Motorcycles  Trailers  Recreation Trailers  Golf Carts  Snowmobiles  Motor-homes

14 Auto Discounts & Credits  Youthful good student  Youthful driver’s training  Student away at school > 100 miles w/o vehicle  Anti-theft device / Passive restraint  Anti-Lock brakes system (ABS)  Mature defensive driver course  Corporate Car (counts for multi-car discount) Auto Coverages

15 About Our Property Features..... Unique Coverages & Internal Limits = More Sales Opportunities For Our Agency Partners! CNA USP Home Auto Boat Encompass

16 Aggregate Property Limit Blanket Limit Based on the Replacement Cost of Dwelling  Elite - 200% of Replacement Cost  Deluxe – 200% of Replacement Cost  Coverage B is limited to 20% of Aggregate  Special – No Aggregate Limit - Same as HO3 Sales Opportunities!

17 Aggregate Property Limit - Example (aka Location property limit) Dwelling Value: $200,000 USP (Elite) HO3 A $200,000 B $400,000 ($200,000 x 200%) 20,000 C 140,000 $400,000$360,000 D Outside of Limit $ 40,000 }

18 Sales Opportunities! Not subject to a dollar limitation!!  Elite:Unlimited $ - No Time Limit  Deluxe:15% of Aggregate - 1 Year Limit  Special : ISO HO 3 limits Additional Living Expense Loss of Use

19 Sales Opportunities!  Can exceed the policy amount to repair or replace property  Automatic on Elite up to 150%  Automatic on Deluxe up to 130%  Special capped at 125%  Elite - Replacement cost provided on dwelling whether or not damage is repaired or replaced. To available amount of coverage Broadened Replacement Cost on Dwelling – aka extended replacement cost

20 Sales Opportunities!  Coverage for increased monthly mortgage costs due to a covered loss Elite & Deluxe: $20,000 Special Not Available Mortgage acquisition costs are included in the $20,000 Mortgage Extra Expense

21 Sales Opportunities!  Theft of Jewelry & Furs Elite:$10,000 Deluxe:$ 5,000 Special$ 1,500  Mysterious disappearance on jewelry is automatically covered with no per item limit Up to: Elite:$10,000 Deluxe: $ 2,500 Special: Optional Higher Base Limits on Jewelry and Furs

22 Dwelling Fire Coverage Highlights  Coverages included not normally found in other dwelling fire forms  More coverage than DP-3  Property limit is 120% of the dwelling amount  Broadened replacement cost covers up to 120% of policy limit  Automatic contents coverage equal to 10% of dwelling value  Fair rental value equal to 20% of dwelling value (100% of listed contents for condos)  VMM on vacant dwellings covered w/$5,000 deductible

23 Unique Coverages & Endorsements Available Water Back Up of Sewer and Drains Identity Fraud Endorsement HomeWork Supplement Lifestyle Endorsement

24 Property Discounts and Credits  Package discount  Credit for existing insurance (CFEI)  Newer home credit (up to 12 years)  Protective devices (burglar alarms, fire alarms or sprinkler systems, fire extinguisher, deadbolts, smoke detectors)  In-vault credit for SPP  Higher deductible credits ($500 base) Savings

25 Reasons to Sell USP  Customer focused product with superior coverages  Less of a chance for gaps in coverage with package policy  Power of ONE  One Annual Policy - One Bill - One Agent – One Company  Once and done processing system  Higher retention  Stable company  Great claim service

26 Where Can I Find More Product Information?  USP Desk Reference  Order On Agent’s Desktop  USP 101  Train Your Agency on Agent's Desktop or  LRN  State Specific Coverage Comparisons  Market & Sell on Agent’s Desktop

27 QUESTIONS????