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? www.ExceptionalRiskAdvisors.com

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

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

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

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

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

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

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

CEO of Large Corporation Risk Profile: - 42 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

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

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

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

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

Real Case: Professional Athlete Risk Profile: - Professional football player, Age 22 - 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

A-List Actress Earning $10M+ Annually Real Case: A-List Actress Earning $10M+ Annually Risk Profile: - 42 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

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

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. www.ExceptionalRiskAdvisors.com