Specialty Life, Accident, Disability, And Special Risk Solutions Managing General Underwriter for...

Specialty Life, Accident, Disability,

AndSpecial Risk Solutions

www.ExceptionalRiskAdvisors.com

Managing General Underwriter for Lloyd’s of London

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

Exceptional Risk Advisors Active Coverholder Status

Identifying Large Opportunities in the

Excess Market

Specialty Life SolutionsBuy/Sell Disability

Key Person DisabilityExceptional 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 AgreementsCross Purchase Agreements Overseas coverageEmployment Contracts Entity Purchase Agreements

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.

CPI

Total Time on Risk

CPI

Premium

Commission to Advisor

60 days $25,000 $3,750

Key Person Disability

Total Time on Risk


Premium

Commission to Advisor

5 years $105,000 each year $15,750 each year

Total Commission to Advisor: $82,500

Projected Compensation to Advisor

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 AccidentEstate Planning PilotingScuba Diving Hang GlidingMountain Climbing Sky DivingRace Car Driving Exclusion Buybacks on Traditional Policies


Ideal Candidates:Contractual Obligations Private Equity Managers (& Funded Portfolio Company Key

Execs.)

C-Suite Executives (CEOs, CFOs, COOs) EntrepreneursSpecialty Physicians & Surgeons Technology Experts / R&D LeadersHedge Fund Managers

Coverage:- 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.

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


Total Time on Risk Average Premium Commission to Advisor

10 years(Two 5 year policy terms)

$118,000(each year)

$17,700(each year)


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


5 years $416,000 (each year) $62,400 (each year)



Real Case: $60 Million Company WithA Large Disability Exposure

High Limit Disability Income

Ideal CandidatesContractual Obligations Private Equity(& Funded Portfolio Company Key

Execs.)

C-Suite Executives (CEOs, CFOs, COOs) EntrepreneursSpecialty Physicians & Surgeons Technology Experts / R&D LeadersHedge Fund Managers

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

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


9 years(Three 3 year policy terms)

$39,000(each year)

$5,850(each year)



Exceptional Occupations

AthletesCollege AthletesProfessional AthletesKey Player Coverage

Entertainment IndustryActors & ActressesMusicians & SingersExecutive ProducersDirectorsAuthors & PublishersArtists

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

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

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


6 years(Two 3 year policy terms)

$187,000(each year)

$28,050(each year)



Real Case:

Specialty Risks

Kidnap & Ransom Contingency / Non-Appearance

QuickStartQ & A

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www.ExceptionalRiskAdvisors.com

Managing General Underwriter for Lloyd’s of London

Specialty Life, Accident, Disability, And Special Risk Solutions Managing General Underwriter for...

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