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2. 2 Commercial General & Excess Liability Paul T. Williams, Jr. PresidentJuly 12, 2012 Bidders’ Conference

3. 3 Agenda  Overview of the General and Excess Liability Program  Program Structure  Who is insured and when?  Claims Numbers Participants and their roles Claim Reviews Reserves  Broker Services – what is DASNY looking for?

4. 4 DASNY Serves Two Primary Functions  Finance – for private and public clients  Construction – for public clients only, including:  SUNY  CUNY  NYC Health & Hospitals Corporations and Office of County Medical Examiner  NYC Court Facilities and NYS Office of Court Administration  NYS Departments of Health and Education  NYS Department of Mental Hygiene (OMH, OPWDD, and OASAS)  Different functions create different exposures

5. 5 Program Structure SIR- $100,000 Primary Layer - $5,000,000 Umbrella Layers SIR $10,000 First Layer-$25,000,000 Second Layer -$20,000,000 Third Layer -$30,000,000  Total Limit of Insurance $80,000,000

6. 6 Chart of Named Insureds  In accordance with our Bond Documents  Memorandum of Understanding  Agreement to Obtain Insurance on Behalf of  The following are Named Insureds on the policy as their interest may appear

7. 7 State University of New York (SUNY) and The State of New York  During and after construction for liability arising out of their operations at dormitory and attendant and related facilities which have been financed or constructed by the Dormitory Authority on behalf of the State University of New York pursuant to financing agreements and where DASNY has agreed to obtain insurance on behalf of these entities.

8. 8 City University of New York (CUNY)  During the course of construction operations, for liability arising out of such construction operations on facilities which are being provided by DASNY on behalf of CUNY pursuant to financing and construction agreements and where DASNY has agreed to obtain insurance on behalf of CUNY

9. 9 City University Construction Fund (CUCF)  During the course of construction operations, for liability arising out of such construction operations on facilities which are being provided by DASNY on behalf of CUNY and where DASNY has agreed to obtain liability insurance on behalf of CUCF. Following construction for liability arising from the use and occupancy of any facility which has been financed or constructed by DASNY where DASNY retains an ownership or financial interest

10. 10 Special Acts School Districts  For liability arising out of their operations at the below designated locations which have been financed or constructed by DASNY and where DASNY has agreed to obtain liability insurance on their behalf in such financing agreements or other written agreements:  Little Flower School  Hopevale UFSD  Berkshire UFSD  George Jr. Republic UFSD  Randolph Academy UFSD  Greenburgh Eleven UFSD  Greenburgh-Graham UFSD  Deductible is $25,000

11. 11 New York State Department of Health  For liability arising out of their operations at the below designated locations which have been financed or constructed by DASNY and where DASNY has agreed to obtain liability insurance on their behalf in such financing agreements or other written agreements  Roswell Park Cancer Institute  Helen Hayes Hospital  New York State Veterans’ Homes at:  Oxford  St. Albans (NYC)  Batavia  Montrose  David Axelrod Institute

12. 12 DASNY Liability Arising out of and during the course of Construction  For work being performed for the following clients:  Court Facilities  Health and Hospital Corporation  New York State Department of Education  Department of Environmental Conservation

13. 13 Claims Management  Total Open Liability Claims: 143  Construction Related 83  Premise Liability 60 OOP (Owner-Out-of-Possession) 37 SUOW (SUNY as Owner) 4 AI (Additional Insured) 9 NI (No Interests) 10  Average # of new claims (monthly): 5 – 7

14. 14 Third-Party Administrator (TPA)  DASNY contracts directly with a Third Party Claims Administrator (TPA).  The TPA will assist Risk Management with managing and investigating claims within the $100,000 SIR.

15. 15 Investigation  First priority is to conduct an investigation.  The TPA begins and conducts their investigation after assignment by Risk Management.  TPA works closely with DASNY’s Project Management Unit and Office of Counsel, DASNY’s Clients, the Attorney General’s office and Corporation Counsel for the City.

16. 16 Outside Counsel  The TPA, in consultation with the Office of Counsel and the Risk Management Unit, assigns the case to outside counsel with consideration given to the location of the claim event, prior experience, and similar factors (7outside firms).

17. 17 Notification to Broker/Carrier  Notification is forwarded to the insurance broker’s designated claims consultant and the primary insurance carrier’s designated representative at the time of assignment to the TPA.  Those parties are responsible for notifying the appropriate excess liability carrier(s).

18. 18 Notice of Tender Letters  TPA may assist in obtaining contract information.  Contractors and carriers are placed on notice either by Risk Management or by the outside law firm.  Claim and Demand Process

19. 19 Claims Review  Weekly Claims Meetings  Risk Management, the TPA, Office of Counsel and the designated broker conduct weekly claims meetings. Participation in-person or by phone  Each claim is reviewed approximately every 90 days.

20. 20 Reserves  TPA does initial setting of reserves based on injury, defense, liability, etc.  The reserves are monitored and updated during the Claim Review process.  Labor Law Cases: Reserves that are initially set based on type of injury will be reduced to $0.00 when defense/indemnity is assumed.

21. 21 Broker Services  Policy Placement  Aggressive marketing effort  Access to financially sound domestic, foreign, and international carriers as needed to meet program limits  Policy terms and conditions at least equal to expiring  Carrier services commensurate with the program  Review policies, endorsements, and other documents for accuracy  Prepare renewal plans and specifications in advance

22. 22 Broker Services Continued…  Technical Assistance  Throughout the year, monitor industry and carrier news for events of significance  Keep DASNY abreast of opportunities to improve coverage or premium  Advocate with carriers on behalf of DASNY  Assist in the interpretation of policy documents  Document processing  Claims  Carrier notifications  Advocate on behalf of DASNY  Assist in the oversight of TPA activities  Participate in regular claims meetings  Advise on the development of claims strategies

23. 23 Broker Services Continued…  Loss Control Services  Work with DASNY and carrier to develop loss control goals and plan of service  Provide technical assistance as needed

24. 24 Criteria for Selection  Experienced, dedicated team  Ability to access markets of sufficient size, rating  Depth of knowledge and resources  DASNY programs  Technical insurance applications  Claims and loss control services  High quality, timely service  Licensed and insured

25. 25 Criteria for Selection  The Authority is committed to diversity and equal employment opportunities among its contractors, including insurance brokers.  The Authority will make a good faith effort to achieve MWBE participation for insurance broker services to ensure that qualified MWBE firms are included in the selection process.  It is the goal of the Authority to utilize qualified brokers that have a demonstrated history of hiring, training, developing, promoting and retaining minorities and women.  Please see the RFP for more specifics

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