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					                                                                                                                                                                     Insurance: Reinsurance Process
                                                                                                                                                                             Reinsurance Placment                                                                                                                                                                                                                                                                                                                                                                                                                                                        Do Not Mar k The Tracker
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Entry Resolved Until The
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         New BTR Or Ce rtificate Is
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Premium Payment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Losses: New Arising
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Received And Policy Can Be
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Proce ssed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             ClientCo Personal Insurance Sub-Process (CPI)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Ther e is a pe rcept ion t hat the te rms
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Tracker System Sub-Process                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Working funds and TPA loss                                                       A standard year endreport                                                Sufficient priority and fundingis                                                                                                                Create an Excel “cheat sheet” that                                              Automatic ge ner ation of premium

                                                                                                                                                                                                                      Numerous non-technology improvements…                                                                                                                                  8
                                                                                                                                                                                                                                                                                                                                                                                                     Underwriting documentation in                                          12
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Tracker is not yet fully                                         22                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     55        Product ‘X’ manual entries for                                                56       funds are difficult for Reinsurance                                     61       package needs to be developed                                  71        needed to assure that ProCede is                                     78
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Enhance existing reports to                              129       lists the names of insureds and                                        70       ce ssions should be t he standard                                                76
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                and condit ions underw riter s wr ite
                                                                                                                                                                                                                                                                                                                                                                                                     support of reinsurance not                                                       implemented. Needs attention,                                                                                                                                                                                                                                                    riter does
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           If underw100%                                                   r
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Note: Under w iter ’s                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      provide more complete data to                                                                                                                      practice for ART accounts. In or der to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                into our agr ee ment r eflect the                                                                                                                                                                                                                                                                                                                     C PI h ome offic e                                                                                                                                                                                                                                                             Un derwri ter Techni cal                                                                                                                           ART premium cessions to the                                                            Accounting to handle. These                                                      to provide information to the ART                                        enhanced to easily track and                                                                                                                     identifies if the loss file are                                                 be effective standard must be in place,
                                                                                                                                                                                                                                                                                                                                                                                                     always filed in CUW(i.e., cert,                                                  follow up, and training to be                                                                                                                                                                                                                                      n ot r espon d to em ail a                                                                                                                                                                                                                                                                                                                     Un derwr iter Techn ical                      Und er wri ter Tec hni cal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       detect the possibility of loss
                                                                                                                                                                                                                                                                                                                                                                                            I                                                                               I                                                                          I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 II                                                                                          I                                                                               II                                                                        I                                                                             I                                                                  I                                                                                I                                                                                        I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Re sponsibility To Notify

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             …targeting reduction of
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                de mands of the m ark et and can't be                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   captive are often processed late.                                                      features are standard inART                                                      captive for statutory reporting,                                         apply installment payments of                                                                                                                    precautionary, treaty, Fac or
                                                                                                                                                                                                                                                                                                                                                                                        C LA SS      correspondence, quotes)                                              C LA S S    successful                                                      C LA SS                                                                                                                                                                                                                                               Product ‘X’ If Template And                         Field subm its request                              un derwr iter deci des                                                                                                                                                                                                                                                           Assist an t (UTA) m akes                                                                                                                C LA S S                                                                               C LA S S                                                                         C L AS S                                                                 CL AS S                                                                       C LA S S   recoveries                                              C LA S S                                                                         C LA SS   e.g., cede d premium a percentage of                                           C LA S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                constr ained t o ease proce ssing                                                                                                                                           No             mon th en d repor t is                           Certificate Of Reinsurance                                                                                                                                        F it ex isting                                                                Und er writ er sets “l ine                  Assistant (U TA ) makes                       Assi stan t (UTA) m akes                                                                                                                                                                                                                                                                 captive programs                                                                 and replace ad hoc reports                                               ceded premiums                                                                                                                                   multi-year                                                                      gross written premiums
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Match, But Do Not Reflect                           for rein su rance to CPI                            wheth er reinsur an ce                                                                            Yes                                                                                                                                                                             ent ry in R ei nsuranc e
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           au to gener ated an d                                                                                                                                                                                               contract?                                                                            l imi t”                             en try in Reinsur an ce                       en try in Pr oduc t ‘X’
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            The Negotiated Deal                                      Wh itehou se                                     requ est fits i nto                                                                                                                                                                                                                                                            repo rtin g database (i f
                                                                                                                                                                               ClientCo Commercial Insurance (CCI)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           sen t to Zonals to                                                                                                                                                                                                                                                                                                                                 d at ab ase                                    syst em

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               low-value work steps
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     existi ng co ntract                                                                                                                                                                                                                                                                    n ecessary)
                                                                                                                                                                                                                                    52 improvements;                                                                                 II Class I
                                                                                                                                                                                                                                                                                                                            Class riter send s
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Usin g Sen d Au to Em ai l                                                                resolve
                                                                                                                                                                                                                           U nderw riter co nclu des                                                                         U nderw
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          sen d an em ail to the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    CCI
                                                                                                                                                                                     Un derwr iter
                                                                                                                                                                                 determ ines un derlier
                                                                                                                                                                                                                             Two categories: Class I and Class IInderw riter co mpl et es
                                                                                                                                                                                                                              n egotiati ons wi th             U
                                                                                                                                                                                                                                                               e Re ins ure
                                                                                                                                                                                                                                                                                                                               em ail w ith the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Un derwr iter
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         requesting resoluti on
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Re solve d?

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            When UW respon ds
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              75%                79%
                                                                                                                                                                                                                                rein su rer -- t he           placem ent?
                                                                                                                                                                                                                                                                                       No         th e Non eReinsure        tem plate attach ed to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          C CI email s co ntr act
                                                                                                                                                Business Unit                        in clusion s in                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          w ith a reso lutio n                                                                                                                                                                                                                             U nderw riter sends                          U nderw riter Techn ical                     Un derwr iter receives                                                                      Un derwri ter Techni cal
                                                                                                                                                                                                                             r ei nsurer agr ees to                                                     tem plate           the Non eRein su re –                                                                                                                                                                                                                                                                                                                                                                                                                                                         U nderw riters cor rects                                                                                                                                   CPI und er wri ter buys                                                                                                                                                                   Certificate                                                                                                                     co verage and                                                                                                                                                                                                                                                                                                                                                                                                                                              ProCede lacks supervisor
                                                                                                                                                                                 reinsur an ce pro gram                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Prod uct ‘X’ Analyst                                                                                                                                                                                                                              b ind ing request to                          Assistant foll ows up                      r ei nsuranc e c er tificate                                                                    Assi st an t enters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Pe ople in the field must unde rstand
                                                                                                                                                                                                                                      bin d                                                                                  Prod uct ‘X ’ mailb ox                                                  The eReinsure function can be                                                                                                                                                                                                                                                                                                          Yes                                                               out stan din g                                    Man ual E ntry In to Prod uct ‘X’ O r                                                                reinsuran ce contr act                                                                                                                                                                     Conflicts                 Yes                                                                                             premi um am oun t to b e                                                                                                                                                                                                                                                                                                                                                                                                                               58       functions such as easily                                               41       they must constantly proactively
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Product ‘ X’ ent ry is be ing lumpe d                                     Reinsurance administration is not                                                                                                                                                           enters the r esolu tion                                                                             Elec troni c I npu t For Variou s                                                                                                            r ei nsurer an d awaits                            fo r rein su rance                           an d resolves any                                                                       certifi cat e i nform ation                                                                                                                                                                                                                                                                                                The loss ge ne ra tion sy st em cannot                                                                                                                 Schedule cession payments to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               res olve d?                                                                                                                                                                                                                                                                     The e xist ing reinsur ance accounting                                                                                                                                                                                                                                                                     determining production statistics
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          tran sacti on p robl em                                                                                                                                       indepen dently                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    manage -- t he y will not be "saved" by
                                                                                                                                                                                                                        Change Required                                 Class I Class II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   paid to Rein su rance
                                                                                                                                                                                                                                                                                                                                                                                             6       bypassedin transacting business                                        11        unde r the m ast er r esulting in no                             14       part of the SBUs’ underwriting                                                                                                                                                                                                                                                                  Sys tem s:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            51                                                                               62       gener ate loss cessions greate r t han                         67        Data entry errors are the greatest                                   73       coincide with the projected
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               II                                                                                I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            in Tr ac ker and marks                                                                              3 El ectron ic Entry Systems Not I n                                                                                                                cer tificate                                    certi fi cate                                con flicts                                                                              in to Pro duct ‘X ’                                                                                                                                                                                                                   structur e cannot e fficient ly handle
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                100% and Re insurance Accounting                                                                                                                                                                                          by specialist. Such function                                                    some one wat ching out for t hem in
                                                                                                                                                                                                                                                                                                                                                                                                     with reinsurers, negating benefits                                               syst em ide ntific ation of unde rlier                                    scorecard. There needs to be                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     A ccoun ting                                                                                                                                                                                                                                                                                            source ofproblems in the overall                                              receipt date of gross premium
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Total Work Steps: 92
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Produ ct ‘X ’:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 high transaction volum e ART                                                                                                                                                                                                                                                                    CL A SS                                                                          C LA SS

                                                                                                                                                                                                                                                                                                                                                                                            I                                                                               I                                                                          I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            II                                                                               II                                                                        I                                                                             I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    r esol ved                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  doe s not have a sim ple me chanism                                                                                                                                                                                       would improve staff utilization                                                 account ing.
                                                                                                                                                                                                                                                                                                                                                                                                     of eReinsure, e.g., electronic                                                   inclusion in re insur ance -- losses                                      more accountability for profit, not                                                                                                                                                                                                                                                             1. COC (approx 2 50/m onth)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              reinsurance process                                                           installments and address non-
                                                                                                                                                                                                                                                                                                                                                                                        C LA SS                                                                           C LA S S                                                                    C LA SS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       C LA SS    programs, e.g., NHL, Pre ferr ed Clubs                                C L AS S                                                                 CL AS S                                                                       C LA S S
                                                                                                                                                                                                                                                                                  Review Reinsurance Request s For                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              2. PEX (ap prox 120 /mo nth)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    to book L CF recove ries
                                                                                                                                                                       Approximately 16                                                                                                                                                                                                              audit trail                                                                      w ill not follow                                                          just gross                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             receipt one-over-one
                                                                                                                                                                       Existing Treaties.
                                                                                                                                                                       Estimate 20 By Year End.
                                                                                                                                                                                                                                                                                  Underliers And Suspe nd Unde rlier
                                                                                                                                                                                                                                                                                  Portion Of Request For Assumption By
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              50%                                                                                  Data Entered In to Produ cy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                ‘X’ Th rough Poli cy

                                                                                                                                                                                                                        Technology capabilities                           NO                 YES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Down load Fro m Po lic y                                                                                                                                                                                                                             No


                                                                                                                                                                                CC I r eq uests th at new                                                                                      U nderw riter en ter s the
                                                                                                                                                                                                                                                                                                                             Boun d Tran sacti on                                                                                                                                                                                                                                                                                                                                                                                                               Instruct UW To Contact
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Reinsurer To Have Certificate
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Is sui ng System
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Produ ct ‘X ’ Loader
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Us ing

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                3. The Treaty Data Entered
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Highlights work activities                                                                                                                                                                                                                                                          Un derwri ter Techni cal
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Assi st an t m akes an d                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               R
                                                                                                                                                                                                                                                                                                                               Repor t email is
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Amended, Endorsed, Or                                                                              I nto R ei nsu rance
                                                                                                                                                                                  tr eaty rein su rance                                                                                               ap prop riate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Database (no t Produc t ‘X ’).                                                                                                                                                                                                                                                                                                    fi les c opies and sends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Ad
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        related to lower value
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Updat ed; Confirm That Product
                                                                                                                                                                                                                                                                                                                                auto matical ly                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Hand led O n “Depos it And                                                                                                                                                                                                                                                                                                         ori gin al certific ate to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      r ec ei v
                                                                                                                                                                                                                        Physical infrastructure                           NO                 YES                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ill
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                ‘X’ W Work Dire ctly With

                                                                                                                                                                                org an izatio n be set up                    eReinsur an ce
                                                                                                                                                                                                                                                                            Yes                       transaction                                                                                                                                                                                                                                                                                                                                                                                                                                               Reinsurer To Corre ct Problem                                                                      Audi t” Bas is
                                                                                                                                                                                                                                                                                                                            gener ated an d sent to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Rein su rance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     a
                                                                                                                                                                                    by Rein su rance                                                                                              i nform ation in to
                                                                                                                                                                                                                                                                                                                              the eRein su rance
                                                                                                                                                                                     Adm ini st ration                                                                                            eR ei nsure system
                                                                                                                                                                                                                                                                                                                             Prod uct ‘X ’ mailb ox                                                                                                                                                                                                                                                                                                                                                                                                                           25%                                                                                                                                            added tasks such as                                                                                                                                                                                                                                                             Ac coun ting
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Some times CCI email payment re quest
                                                                                                                                                                                                                        Business distribution/strategy                    NO                 YES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                A revised ART bordereau will                                             Can't get the informationneeded                                               ProCede has nomanagement                                                                                                                           Bot h Reinsur ance Adm in and

                                          PROCESS MAP
                                                                                                                                                                                                                                                                                                                                                                                                     There is a needtodefine a                                                        Underwriter is not notifying the                                          Number of Reinsurance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          does not equal ProCe de balance for                                              reduce the number of questions
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 correcting errors, re-work,
                                                                                                                                                                                                                                                                                                                                                                                            132                                                                              3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        52                                                                              63                                                                       74                                                                             68                                                                                                                                                 82       Accounting miss reim bur se ment
                                                                                                                                                                                                                                                                                                                                                                                                     corporate strategy regarding                                                     underlier that fac has been                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              corr esponding contract. Requires                                                                                                                         directly from ProCede so must                                                 reporting capability. Must ask for                                  Number of Losses:
                                                                                                                                                                                                                                                                                                                                                                                                     placement of reinsurance on                                                      placed on the local admitted
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     KVI        Placements: 4225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               contact with CCI to re concile and                                               received from insurers and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         make copy of all disbursements                                                special IT reports. Develop
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               KVI         Approximately 100,000 annually
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          recove rables. W e lack

                                                                                                                                                                                                                                                                                                                                                 87%                                        I
                                                                                                                                                                                                                                                                                                                                                                                        C LA SS      multinational risk
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          C LA S S    underlier
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                4/2002 - 12/2002
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    C LA S S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               follow up if not resolved be fore
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               pa yment is made                                                       I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     C LA SS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                likelihood of having toreconcile
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                accounts                                                     II
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              C LA S S   and tally manually
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            C LA SS    reporting extract/database
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                C LA SS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          st raightforw ard easy -to-unde rstand
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          pr oce dures

                                                                                                                                                                                                                        Product service/offerings                         NO                 YES                                                                                                                                                                                                                                                                                                                                 Th e Produ ct ‘X’                              Th e Produ ct ‘X’                         Pr oduc t ‘X’ Un it

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Prod uct ‘X’ Analyst
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  redundancies, “checking
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Product ‘X’ Analyst 1) inputs
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              An alyst ent er s t he                                                                                                                                                                                                                                                                   certificate number into
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Analyst files the                       receives th e w et ink           ver ifies i nfor mation on
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             in form ati on i nto the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Bou nd Tr an sacti on                   facultati ve rein su rance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          th e w et ink certi ficate            Certifica te                                                                                                                 the checkers,” etc…
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Product ‘X’ 2) marks
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      certificate to be paid 3)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Pro duct ‘X ’ An al yst                                                                                                                 Risk Management (ART)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          match es th e inpu tted Value-added atch? Low                                     value-added
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Ye s           Pr oduct ‘X’ system,                                                                                                                                                                                                                         Yes                                                                                                                                                                                                                                                                                                                                                                                                             en ter s transaction in
                    THE LAB’S FINANCIAL SERVICES PRACTICE AREAS                                                                                                                                                         Regulatory issues/approvals                       NO                 YES                                                                                                                                                                                                                                                                                                                            boo ks th e t ransaction ,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Report an d Su mm ary
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             of A greement in t he
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          certi ficate from
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        underw riter an d/or             in form at ion i n Pro duct
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 m                                                                                                                 copies certificate for Product
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    ‘X’ file 4) send certificate to                                                                                                                                                                                                                                                                                                                                              Pro duct ‘X ’                                                                                            ART Issue: No
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Rein . Settl em ent S upvr
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            an d wr ites t he date on
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            th e Bou nd Tr an s. Rpt.                        Proc essed Work bin                              r ei nsurer                              ‘X’           activities                                             activities                                                                Product ‘X’ admin 5) files
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      template & copy of cert                                                                                                                Within Tracker Product                                          8       Set a service standard to resolve                                                 42
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 CPI often sends copies of
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 certificates rather than the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Corr esponding
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Statistics, Due To Fact     receives email fr om
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Rein su rance
                                                                                                                                                                                                                                                                                                                                                       Fi rst thi ng i n th e                            The Pro duct ‘X ’                        Boun d Transactio n                                     The Prod uct ‘X ’                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          outstanding problems, returned                                                              requiredoriginal certificates. This                                                                                                                                      That Amount To Be                                                             Settl em ent Su perviso r
                                                                                                                                                                                                                                      Produ ct ‘X’                                                                                                                                                                                                                                                                                              The Pr oduct ‘X’                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                ‘X ’ A nalyst instructs                                                                                                                                                                                                                                                                                                                                              R isk M anagemen t of
                Insurance Banking Broker/Dealer Investment Management                                                                                                                                                                                                                                                                                mo rni ng t he assig ned
                                                                                                                                                                                                                                                                                                                                                      Prod uct ‘X ’ Analyst
                                                                                                                                                                                                                                                                                                                                                                                                      A nalyst match es each
                                                                                                                                                                                                                                                                                                                                                                                                       Bo und Transaction
                                                                                                                                                                                                                                                                                                                                                                                                                                                R ep orts and Sum mary
                                                                                                                                                                                                                                                                                                                                                                                                                                                  of A greement s ar e
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     A nalyst checks to see
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    if th e en try has already
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              An alyst verifies the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Inform ation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Note: If Certificate Already Exists In                                                                                                                                                                   underwriter tha t P roduct
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     calls, responses tovoice mails
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  C L AS S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 results in extra effort to obtain
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 the originals
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Paid Is In Installments
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          And Payme nts Ar e
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Unique Hoc          co ntract coverag e an d
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          forw ar ds paym ent
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       CPI's required payoff using
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Boun d Transaction                                                                                                                                                                                                                                                                                   Product ‘X’ Means That The Certificate                                                                                                                                       Product ‘X’ Unit             ‘X’ U nit w ill contact the                                                                                                                                                                                                                                                                                                                                                                                                    instr uctio ns to                                                                                  46        Develop a better automatedway                                        59
                                                                                                                                                                                                                                                                                                                                                     pri nts ou t the Boun d                              R ep ort t o the                       distrib uted to Produ ct                                been proc essed                                                                          correct?                                                                                                                                                                                                                                         Has Already Been Checked In Product                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              pr em ium amo unt to be                                                                                                                                                                                                                            individual facultative certificates
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Repo rt wi th PM INQ                                                                                                                                                                                                                                                                                 ‘ X’ And Marked To Be Paid. Product ‘X’                                                                                                                                                                    re ins ure r a nd have the                                                                                                                                                                                                                                                                                                                                                                                                       speciali st                                                                                               of tracking installment payments
                                                                                                                                                  Product ‘X’                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  p ai d                                                                                                                                                                                                                                  is less efficient than the summary
                                                                                                                                                  Entry (Unit)
                                                                                                                                                                                                                                                                                                                                                     Transaction s R eports
                                                                                                                                                                                                                                                                                                                                                           for th e day
                                                                                                                                                                                                                                                                                                                                                                                                           Su mm ary o f
                                                                                                                                                                                                                                                                                                                                                                                                           A greement
                                                                                                                                                                                                                                                                                                                                                                                                                                                     ‘X ’ analysts by
                                                                                                                                                                                                                                                                                                                                                                                                                                                reinsur er resp onsibi lity
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (using Prod uct ‘X’
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                an d C lient/WIP
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Can File The Extra Copy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                certifica te a me nded,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              endorsed, or corre cted
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              CL AS S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         for ART premiums
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            C LA S S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       spreadsheets provided by CCI
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        This is batched
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Prod uct ‘X ’ Analyst                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     once a month
                         Home Office: Institutional                                                                                                                                                                                                                                                                                                                                                                             Tracker
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            en ter s the discr ep an cy
                                                                                                                                                                                                                                                                                                                                                                                                                                                       Trac ker in fo rmatio n                                                                                                                                                  int o the Tracker                                                                                                                                                                                                                                                                 If th er e i s an issu e with                                                                                                             Within Tra cke r Pr oduct                                                                                                                                                                                                     C CI Prod uct ‘X’ Analyst
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      CC I receives o pen file                        C CI match es t he                                 C CI emails                                                                                                                                                                                                                       CCI (Treaty)
                                                                                                                                                                                                                                                                                                                                                                                                                                                          In sured Name
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      S ystem                                                                                                                                                                                                                                                                     th e bookin g in Prod uct                                                                         U W or                                     ‘X’ Ana lyst ins tructs                                                                                                                                                                                                      takes C orrespon din g
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Poli cy Nu mb er                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          If n o m atc h Pro duct ‘X ’                                                                                                          fro m Pro duct ‘X ’                         r ei nsuranc e c er t                             Rein surance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ‘X ’, the Pr oduct ‘X’                                                                      Product ‘X’                                underwriter to contact                                                                                                                                                                                                       Facul tat ive C er tificates
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Poli cy C lass
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   No                                                                                                  A nalyst en ters the                                                      UW                                                   pr ogram mer for cover                       marked paid with th e                            Accou ntin g th e file
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Rein suranc e                                                                                                                                                                                                                                                                                                                                                                                                                                             An alyst r everses th e                                                                          U nit                                   the reinsurer and ha ve                                                                                                                                                                                                      to Warren once th e RA
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Attac hi ng date                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              item into Tracker                                                                                                              cod es 004, 700, 7 05                       co rrespond ing record                           w ith record s t o be                                                                                                                                                                                                                Rein . Settlem en t
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Net Prem ium                                                                                                                                                                                                                                                                                                                                                                                                                                             en try and r eent er s t he                                                                     ha ndle?                                 the certificate a mended,                                                                                                                                                                                                      noti fies t hat payment                                                                                                                                                                             R ei nsuranc e
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (eR e), an d 706 (eR e)                         in th e open fi le                                   paid                                                                                                                                                                                                                       S upervisor r eceives
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Plac ements (lim its )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            transaction                                                                                                                      endorsed, or corre cted                                                                                                                                                                                                       i s co mpl et e (m ont hly)                                                                                                                                                                  S ett lement S upervisor                                                                                                                                                                                                                         Email request to C PI
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Probl em Desc .                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               emai l from CC I o f
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Underw riter in fo                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              for wards payment                                                                                                                                                                                                                            r eq uesti ng correcti on
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    contr act cover age an d
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Tracker                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      in st ructi ons to                                                                                                                                                                                                                         to Pr oduct ‘X’ recor d
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    p remiu m am oun t to b e
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 sp eci al ist


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       CPI (Facultative)

                                                                                                                                                                               Setting up New Reinsurance Contracts                                                                                                                                                                                                                                                                                                                                                                        There is insufficient quality                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Rein su rance                                                                                                                                                                                           Rein su rance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 There is no central organizational                                                                                                                                          Booking issues in Product ‘X’,                                                                  Business Units are not measured                                                      Move from a wet ink reinsurance                                                    Underwriters must understand
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  16       assurance validation review of                                               34                                                                            27          Product ‘X’ is a very old system                                                  24                                                                                                32                                                                                 18
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  certificate to an electronic one,                                         31                                                                                         37        Underwriting needs tomake sure                                                                                                                                                                      Settlem en t Su pervi so r                                R ei nsuranc e                                                                                                                                 Settlem en t Su perviso r                               Speciali st c hecks
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 responsibility for reinsurance,                                                                                                                                             performedby the Product ‘X’ unit                                                                on reinsurance, so they have                                                                                                                                            their key role in putting data into                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          S pecialist add s to CC I
                                                                                                                                                                                                                                                                                                                                                                                                       S en d m em o b efor e                                                                               1. Fi le all                                                                   Product ‘X’ bookings by                                                                                                                                                and edits in Product ‘X’ are not all                                                                                                                                                                                                                                            reducing handling andfiling                                                                                                                                                    that contracts are booked                                                                                                                                                                          r ec ei ves em ail fro m C PI                       S ett lement S upervisor                                                                                                                              distri butes certific ate                          c er tificate for match in                    M atch?                          Yes
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 contributing to a disjointed                                                                                                                                                in CCI are a source of error and                                                                insufficient motivation to focus                                                                                                                                        the system correctly in the first
                                                                                                                                                                                   Receive cover note
                                                                                                                                                                                  fro m Broker, S BU o r
                                                                                                                                                                                                                             1. Review term s an d
                                                                                                                                                                                                                                  con ditio ns
                                                                                                                                                                                                                                                       Vali date the nam e of
                                                                                                                                                                                                                                                          t he reinsur er in                             Reinsurer
                                                                                                                                                                                                                                                                                                         nam e and                                   S et up Rein surer and
                                                                                                                                                                                                                                                                                                                                                                                                      BA PS cl osi ng an d day
                                                                                                                                                                                                                                                                                                                                                                                                       before l oss cl osing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      docu mentati on w ith
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       abstract in d rawer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                C LA S S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           underwriter and underwriter
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           assistant                                                                    I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       CL AS S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 operating environment                                                I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     C LA SS      correct or consistent
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  C LA S S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             potential improvement                                                                    I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  C L AS S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             on quality input                                                        II
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      C L AS S    operations, and processing time
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          C LA S S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     place                                                                         I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  C L AS S       correctly in the first place.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     that l ists c er tificates to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               p rocess
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        con firm s recei pt to CPI                                                                                                                            r ec ords to sp eci al ists
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                th at own accoun ts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Pro duct ‘X ’
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Bord er eau

                                                                                                                                                                                      Rein surance                           2. Assi gn c omp an y     Pro Cede or IC 6 using
                                                                                             NON-TECHNOLOGY IMPROVEMENT                         Re insurance                                                                                                                                               code                                     co mpani es i n ProC ede                            listing new c odes/                                                                           2. Foll ow up for th e

                                                                                                                                                                                       A ccoun tin g                           an d cover cod es       NAIC cod e, Fed er al ID ,                         m atch?                                                                                     co vers for t he mo nth                                                                           si gned c ontr act
                                                                                                                                               Adm inistration                       (ART A ccoun ts)                       3. Create the abstract             or both
                                                                                                                                                                                                                                                                                                                                                                                                     to Ac tuarial, Acctg , FIT                                                                        (NAIC 9 Mo. R ule)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      improvements (and benefits) | Phone: 201.526.1200 | Fax: 201.526.1216 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      typically outnumber technology
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Set u p con tract i n
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Rein su rance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     A dm ini str at ion sets up
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Special ist en ters final
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     dependent improvements by a
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Utilize document imaging to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Accounting -
                                                                                                                                                                                 Provide cop y o f cover
                                                                                                                                                                                                                                                                                                   Need to resear ch
                                                                                                                                                                                                                                                                                                                                                      Provide Rein surance
                                                                                                                                                                                                                                                                                                                                                        A ccoun tin g and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  26       CPI Vice President does not have
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           direct control of reinsurance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         13    efficiently archive andmanage
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               paper records inorder to more
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      39          Set up steering group todefine
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  and negotiate acceptable ART
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          ProC ed e an d in I6                            Pr oCede                                                    40     Responsibility for overall success
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             of reinsurance is ambiguous:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         38      In CPI there are problems with
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 changes made in the branches
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     c ompan y an d cover in
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        10        Create a policy and procedure
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  manual to document reinsurance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Se ttlem ent                                                                                                                                                                                                                                                                                                                                                                                                                                                                           d isbursemen t                           3 to 1 margin.
                                                                                                                                                                                  note to Reinsur an ce                                                                                                                                                                                                                                                                                                                                                                                    support resource, making it more                                                                                                                                       contracts from processing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Sup er visor posts                              in form at ion i n
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 I                                                                                                                                                                    I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 that are not communicated to the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      I                                                                               I
                                                                                                                                                                                                                                                                                                 discrepanc y and find                               r espon sible SBU w ith                                                                                                                                                                                                                                                                                            Best   quickly locate and retrieve                                                                                                                                                                                                                                                   SBUs vis a vis corporate                                                                                                                                                                                                                                Best         operations                                                                                                                      Unit
                                                                                                                                                                                  A ccoun tin g (Except                               ProC ede                      IC6                                                                                                                                                                                                                                                                                                         C LA S S   difficult to control the process                                           Practice documents when needed.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     C LA SS      efficiency, profitability standpoint                                                                                                                                            C L AS S                                                                          C L AS S     home office                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       appro val i n Pro Cede                                ProC ed e
                                                                                                                                                                                                                                                                                                     cor rect nam e                                   co mpan y and cover                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Practice
                                                                                                                                                                                     A RT Acco unts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               (date an d amm t. o f
                                                                                                                                                                                                                                                                                                                                                       cod es and ab st ract
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       wi re/ch eck)                     Contact The Lab
                                Reinsurance Process                                                                                                                                                                                                                                                                                                                        New and ART
                                                                                                                                                                                                                                                                                                                                                                           Cont racts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     201.526.1200
                                                                                                                                                                                                                                                                                                                                                                                                      Discuss and ag ree o n                   1. Generated                                          Com plete SIR and em ail                                                                                                                                                                                                                                                                                                                                                                   IC 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  CCI (Facultative)
                                                                                                                                                                                                                                                       Review cover no te to                                                                                                                                r oles and                                                                                to SBU M anager, FIT ,
                                                                                                                                                                                                                                                                                                                                                              Ne w or                                                                                                                                    Settlem ent, and
                                                                                                                                                                                                                                                        see how prem ium s                                                                                                                            respon si bili ties w ith                                                                                                                                                            We don't have the right set of                                                                                                                                         These step(programming codes
                                                                                                                                                                                                                                                                                                                                                              e xisting                New                                                                                   Premiums                 Reinsurance A dmin.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Actively encourage employees to
                                                                                                                                                                                                                                                         an d losses w ill be                                                                                                                            SBU regar ding                                                                                                                                                           20
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           measures in place to determine
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         2       Conduct transactions training                                        28
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  andmatching to cert and open
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     4                                                                                                                                                                                  43        The CPI email notificationprocess                                                                                                                        R ei nsuranc e                                                                                                                                                       Specialists m akes                                                                                                                                                         Speciali sts sends
                                                                                                                                                                                                                                                                                                                                                             contract?                                                                                                                                specifying premium s                                                                                                                                                       with all employees whoenter
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               complete paperwork corr ect ly and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  to Reinsurance Settlement is                                                                                                                                                                         Speci al ist s c reates                                                                                                                                                                                S pecialists subm its to
                                                                                                                                                                                                                                                             pro cessed                                                                                                                                   pr ocessin g o f                                                                                                                                                                 the volume andquality of work                                                                                                                                          file) should not be necessary if                                                                                                                                                                                                                                             accurately by showing the ramifications                                                                                                                                                                                                                                                                                              S ett lement S upervisor                                                                                                                                                    d isbur semen t in                                                                                                                                                     di sb ursement r eq uest                                     S pecialists not ifies
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         only. I dentify if
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 I                                                                                      Best     transactions into the system
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      I                                                                                                                                                                                                                                                                             Best
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        I         inefficient                                                                                                                                                                                        in dividu al insur an ce                                                                                                                                                                                 su perviso r & m anager

                              A                           B                          C
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                C LA S S   going through                                                                                                                                             C LA SS      upstream steps are done properly                                                                                                                                                                                                                                             of the decisions they make.                                                                                                                                             C LA SS                                                                                                                                                       distri butes prem ium                                                                                                                                                     Pr oCede based on                                                                                                                          Approved?              Yes      to eit her Treasury                     Wire               r ei nsurer o f wire
                                                                                                                                                                                                                                                                                                                                                                                                      premi ums and losses                                                                            backdating re quired                                                                                                                                            Practice                                                                                                                                                                                                                                            3. Product ‘X’ by Policy           Usually Quota                                                        Practice
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Excel “Bordereau” for                                                                                                                                                                                     for app roval (paper
                                                                                                                                                                                        7         Continually monitor wait times                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Shar e Tre aty                                                                                                                                                                                                                                                                                                                                                                                                             Excel r eco rds to                                                                                                                                                       co rrespond ing                                                                                                                                                         Dept (wire) or A/P                                            transfer email
                                                                                                                                                                                                  such as business unit processing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       each rein su rer                                                                                                                                                                                             recor d)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    appro priate Sp ec ialists                                                                                                                                                  statistical en tries                                                                                                                                                             (check)
                                                                                                                                                                                      Best        unit reconciliation for trends
                                                                                                                                                                                    Practice                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       C ontact u nderw riter In
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Com plete SIR and em ail                                                                                                                                                                                                                                                                                                                                                         D epos it                                                                     SBU and in fo rm them
                                                                                                                                                                                                                                                                                                                                                                                                                   Ceded                                                                                                                                                                                                                                                                                                                                                                                                                                                           P rem ium Or                               Product ‘X’ By
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       FI T, Claim s IT, Reins                                                                                                                                                                                                                                                                                                                                                      Product ‘X’                                  Policy                              to pr ocess pr em ium s                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             No
                                                                                                                                                                                                                                                                                                                                                                                                                 premiums                                                                            Adm in, Se ttlem ent, and
                                                                                                                                                                                                                                                                                                                                                                                                                 entered on
                                                                                                                                                                                                                                                                                                                                                                                                                                                          - Premiums
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Losses And
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    By Policy?                                                                      entry in Prod uct ‘X ’ at
                                                                                                                                                                                                                                                                                                                                                                                 Existing                                                 No         - Losses & Premiums                               SBU Mgr. specifying                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Treaty & Excess Loss                                                                                                                        Yes
                                                                                                                                                                                                                                                                                                                                                                                                                   subject                                  - Losses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Premiums                                                                                                                                                                                                                                                                                                                                                                                                                                                                              poli cy l evel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                                                                                                                                                                                                                  premium                                                                             losses and prem ium s.

      A Placement                                         C           Losses                                                                                                                                                                                                                                                                                                                                        basis?                                                                            Identify if backdating
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              re quired
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 There is a lack of understanding                                                                                                                                                                  Deposit Premium
                                                                                                                                                                                                                                                                        We often pay out money before it                                                                                                                                                                                                                                                                                   Incorrect Product ‘X’ entries stem
                                                                      – New Arisings                                                                                                    4         Underwriter is not giving                                    72
                                                                                                                                                                                                                                                                        is justified. It then has tobe
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           from not recognizing the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        17       of the Product ‘X’ process by the                                                                                                                                                                                                                                                                                                                                             4. Alternative Risk Transfer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Admin Informs Of
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Su pervi so r and
      B Premium Payment
                                                                                                                                                                                                  Reinsurance all applicable policy                                                                                                                                                                                                                                                                                                                                                                                                                                              Product ‘X’ processors. Need                                                                                                                                                                                                                                                                                                                                                                                                                                      Responsibility
                                                                                                                                                  Re insurance                                                                                                          backed out -- which is very messy                                                                                                                                                                                                                                                                                  underliers — booking all in the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Speci al ist determi nes if                                                                                                                                                                                                                                                                                                                                    Loss Proc ess receives                                                                                             Reins
                                                                                                                                                                                       I                                                                      I                                                                                                                                                                                                                                                                                                                  I                                                                                      I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Through Abstract
                                                                                                                                                                                                  numbers and companies                                                                                                                                                                                                                                                                                                                                                                                                                                                          additional training to develop                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Speciali st determi ne
                                                                      – Clash/Risk Treaty Losses                                                  Accounting                         C LA S S                                                                C L AS S   and time-consuming
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Com plete SIR and em ail
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                C LA S S   master                                                                      CL AS S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 greater understanding                                                                                                                                                                       Prepare fact sheet                                                                                                              Co mpl ete S IR an d                           S BU provides un ique
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Rein surance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      When Reinsurance Admin.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Provides new company and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Cri ter ion for repo rt                                                              U pon com pletion of                                                                       paym en t(s) an d
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Pr oduc t ‘X’ entr ies
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      E ntries
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      m ade?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      No   Make m anual en try                                 Sup er visor appro val                                                                                                   Check                      check from Acco unts                                                                                               Acco
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        to FI T, Reinsura nce                                                                                                                                                                                                                                                                            D uri ng fi rst prod ucti on                                        detaili ng settli ng                                                                                                          em ai l to R einsuran ce                         infor matio n and copy                                                                                                                       an d generati on i s                              Re ins . Acctg. forw ards         review , Reinsurance                                                                                                                      h ave been m ad e                                                                                                                                                                                                                                                                                                                                           Payabl e d ep ar tment
                                                                      – First/Subsequent Notifications                                                                                                                                                                                                                                                                                                                                                                                                    A dm inistration,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Sig noff on repor t and                           mon th valid at e t hat                                          criteri a fo r th e n ew                                                                          Ca n losse s
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Adm ini str ation , FIT,                          of d raft cont ract or
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Acc ount ing review s                         cover, Reinsurance Acctg.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      sends notification via email                         determ in ed by                                 the SIR to Reinsurance          Accounting sends a sign
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Losses              Settleme nt and Claim s IT                                                                                                                                                                                                             No                                                                                                                                                                                                                                    be                Yes                                                                                                     the term s and                             to inform SBU of company                                                                          A dm inistration, Claim s IT ,   off email to Claim s IT and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  fix files                              premi um s are sho win g                                          acc ount and p rovide                                                                                                               an d Cl ai ms IT                                 sign ed ori ginal                                                                                                                       Rein surance A cctg.
                                                                      – Alternative Risk Transfer                                                                                                                                                                                                                                                                                                                    Yes                                                                               specifying loss es only.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Identify if backdating                      Premiums                                                                                                                                                                                                                                              up correctl y o n repo rts                                           to R ei nsuran ce
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              genera te d?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           specifyi ng criteri a fo r                       con tract (if avai lable)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          con ditio ns of th e                          and cover so Product ‘X’                       U suall y b y p olicy and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            F IT, and Reins urance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Settlem ent
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          will verify production data
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          when received first time in
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               con tract                              entries can be processed (if
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Settl em ent                                                                                                                    losses onl y                                to Rein. Accou nti ng                                                                                                                         agent n umb er .                                                                  monthly loss reports
                                                                       Account Processing                                                                                                                                                                                                                                                                                                                                                                                                                     re quired                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    manually booked)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Review the tes t reports                        Report
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Also Include s Specs
                                                                                                                                                                                                                                                                        In the "tree level view" it is                                                                                                                                                                                                                                                                                                                                                                           and fix file s provided by                      discrep-                                                                                                                                                                                                                                                                                                                                                                                                                                                       For Pr oCede Used                                                                                                                                                                   Generated Premiums
                                                                                                                                                                                                  Better controls and systems                                                                                                                                                                                                                                                                                                                                                                                                                                                      FIT a nd/or Cla ims IT                        ancie s?                                                                                                                                                                                                                                                                                                                                                                                                                                                       By Reinsurance
                                                                                                                                                                                       44                                                                      45       difficult for Settlement todo                                                                                                                                                                                                                                                                              9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               No Match Is Ve ry
                                                                                                                                                                                                  implementations are needed in                                                                                                                                                                                                                                                                                    SBU                                                                     Design highly structured and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Administration                                                                                                                                                                                                                                                                                                                     Unlike ly
                                                                                                                                                                                                                                                                        installments, which is how many
                                                                                                                                                                                                  the reinsurance process. Without                                                                                                                                                                                                                                                                                                                                                         specialized training program                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           S pecialists receives
                                                                                                                                                                                     II                                                                      II
                                                                                                                                                                                                                                                                                                                                                                                            Existing Contracts
                                                                                                                                                                                                                                                                        of the new ART accounts are                                                                                                                                                                                                                                                                              Best                                                                                                                                                                                                                                                                                                                                    Calc ulate adjustm ent                                                           When i niti al gro ss lo ss                             R ei nsuranc e                             Rein surance                                                                            Re ins . A cctg. Subm its a
                                                                                                                                                                                      C LA SS     them financial health is at risk.                          C LA S S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Sup er visor receives                                                                                                                                                                                                                                                                                                                                                                                                                                    check from A/P Ch eck
                                                                                                                                                                                                                                                                        being written                                                                                                                                                                                                                Create allocati on base                                                   Practice                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Reinsur an ce                          SIR to Claim s IT providing                                                                                                                                                                                                                                                          S pecialist c ontacts                                                                                                                                                                                                                                                                                     Lo ss Pro cessor m akes
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Proc ess prem ium s                              to “tru e up” the                                                               co mes thr ough in                              Acco unti ng provides a                       Acco unti ng send s
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       from cont ract and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Accou nti ng verifies                        reinsurance generation                                                                                                                                                             clo se pr om pts in                                M at ch r epo rt to                                                                                                                                 21        Underwriter should enter in CUW                                                                                                                                                                                                        Loss Processo r & m ails
                                                                                                                                                                                                                                                                                                                                                                                                                                                  R eq uest al locatio n                                                                                                                                                                                                                                                                                                                                                                                                  entry in Prod uct ‘X ’ at                      d ep osi t prem ium s &                                                          pro ducti on m anuall y                           copi ed draft o r sign ed                    email to Rein surance                                                                                                                                                                                                                                                                                                                                                          Un derw ritin g area for                                                          Match?                                                                                                                                                                                                                  cop y o f check for fil e &

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      …deliver near-term financial & operating benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          …enable self-funding improvement
                                                                                                                                                                                                                                                                                                                                                                                                                 Corporate or                                                                                                             Premiums & Losses                                                                                                                                                                                             I nform FI T or Claim s IT of
                                                                                                                                                                                                                                                                                                                                                                                                                  SBU treaty?
                                                                                                                                                                                                                                                                                                                                                                                                                                     SBU                                                                   pr ovi de to                                                                                                                                                                                                                     Yes                                                                                                                                                                                                                                                No                                                                                                                                                     that the coll ater al is in                    crite ria, reques ting new                                                                                                                                                         repor ts fr om FIT                                 ProCede r eco rd                                                                                                                                              so everyone can see the                                                                                                                                                                                                                check wi th supp orti ng
                                                                                                                                                                                                                                                                                                                                                                                                                                                        from SBU                                                                                                                                                                                                                                                                                               the findings                                      Prod uct ‘X ’                                              the co mpany and                                calcu late fu ture                                                            calc ulate reinsur an ce                             o rigi nal (w hen                          Adm in request ing                                                                                                                                                                                                                                                                                                                                                                reconci liatio n                                                                                                                                                                                                                                                                                        records i n ch eck lo g
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Rein surance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          A ccoun tin g
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               c over l evel                              allo cat ion based o n                                                              and p rocess i n                                    avai lable) to                        co mpany and cover to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        pl ace as defined by
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           co ntr act terms
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          loss reports a nd
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      identify ing if fix file is
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      (mo nth ly/qu ar ter ly)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              CL AS S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         information without calling                                                                                                                                                                                                              docu mentatio n to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       reinsur er
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 t rue-up                                                                  Pro Cede and LINES                                Reinsur an ce Adm in .                         be set u p in I6                                                                              needed to date.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    745         1,110         1,440                                                                                                                                                                                                                                                                   No
                                                                                                                                                                                                                                                                                                                                                                          Ye s                                                                                                                    Improvements Opportunities                                                                                                     Total = 52                                                                                                                                                                                                                                                                                                                                                                                                                                                                Twelve month ROI: 3.5x
                                                                                                                                                                                                  Templates are not clear as to
                                                                                                                                                                                                  reinsurance premium split by
                                                                                                                                                                                                                                                              133       There needs tobe agreement
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         by Timeframe
                                                  Legend                                                                                                                                          master policy number and
                                                                                                                                                                                                                                                                        world wide on operational                                                      D evelop all ocation
                                                                                                                                                                                       I          underliers                                                  I         aspects of multinational risks
                                                                                                                                                                                                                                                                                                                                                       base from cont ract
                                                                                                                                                                                                                                                                                                                                                                                                     Cr eate allo cation table                                                                                                                                                                                                      P rovide Reinsurance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Claim s IT provide s test                                                                                                               Prin t repo rts and p ass                                                                   The underwriter must be fully                                                                                                                          CPI facultative Product ‘X’ entries

                                                                                                                                                                                     C LA S S                                                                C L AS S
                                                                                                                                                                                                                                                                                                                                                                                                         per Rein su rance                                                                                                                                                       E nte r genera tion criteria                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              re ports to Reinsurance                                                                                                                                                                                                    36        accountable for the quality of w     hat he /                   5        Track type and number of errors                                      64
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    A ccounting w ith tes t                                                                                              Resea rch the ca use and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      are often inaccurate which
                                                                                                                                                                                                                                                                                                                                                         an d forw ar d to
                                                                                                                                                                                                                                                                                                                                                                                                         Adm in istration                                                                                                                                                        in the pre-process or and                                                                                                                                                                                                                                                                                                                                                    Approximated Number of
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         $500K                 Benefits at full accrual                                                                  En ter generati on
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Accounting for
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      to sp eci al ists who                                 Documents
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Wire Tem p ate
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    l                           she does. It is critical to eve rything t hat                            make by branches, business units,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       requires unnecessary non value
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      I                                                                                                                                                      I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  report(s) and fix file(s ) for                                                                                            correct the error
                                                                                                                                                                                                                                                                                                                                                          Rein su rance
                                                                                                                                                                                                                                                                                                                                                                                                             appr oval
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Timeframe                       Complexity s
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Technology                            R4 08 progra m
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        prem ium s only                                                                                                                                                                                                                                                                                           K VI        Incoming Correspondents
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              coming into Claims:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         cri ter ia in the pr e-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  410                                                                     ve rification of data in te st
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    select r ep orts for t heir                         Wet Signature
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Cover Sheet                  C LA SS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                happens "downstream", e .g, getting
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                pre miums proce sse d promptly
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         or other specific areas                                            C LA S S   add follow-up
                                                                                                                                                                                                                                                                                                                                                         A dm ini str at ion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   pro cessor                                                                   generation and report                                                                                                                    r ei nsurers, sig n off,                           Wire Transfer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              100 - 130 per day                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         I nstructions
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     form ats                                                                                                                              an d pass on                                 Cover Letter to

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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Print of transaction

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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        sc reens)
           Class I                Class II                   Best                                                                                                                                                                                                                                                                                                                                                                                                                                                                Low                    None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             $250K
                                                           Practice                                                                                                                                                                                                                                                                                                                                                                                                                       [1–2 months]
                                                                                                                                                                                        5         Underwriter documentation is
                                                                                                                                                                                                                                                                        Number of New Treaties or
                                                                                                                                                                                                                                                                                                                                           Provide service level agreements
                                                                                                                                                                                                                                                                                                                                           to customers to demonstrate
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 E nte r genera tion criteria
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 in the pre-process or and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             39%                     En ter gen er ati on
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      c riteri a i n L33535%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Claims IT
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               There is a quality control issue in
      Short Term             Long Term                 Applicable               Key Volume                    Assorted                                                                            often incorrect or incomplete in                           K VI       Treaty Renewals: 244 in 2002
                                                                                                                                                                                                                                                                                                                                           confidence in reinsurance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Time delay in settling premium                                                                                                                                                                                                                                                                                                                                                   11        Conduct performance survey to                                                  1       the underwriting area which can                                         54
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                There were useful functions
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Settlement needs to be able to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Work to reduce the number of
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 15       Ensure that any automated                                              75
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Disbursement processing is tied
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       R4 08 progra m                                      pro gram
     Improvement            Improvement               Best Practice              Indicator                    Systems                                                                             support of reinsurance                                                                                                                   organization's ability to deliver                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Create treaty-specific reports to                                                   There is too much incorrect front                                                                                                                                                                                                                                                                                                                                                          included in the predecessor to                                           get wet signature cover sheet out                                            reports that are required tobe                                                                                                                      to Loss close, but would be better
                                                                                                                                                                                     C LA S S                                                                                                                                       Best
                                                                                                                                                                                                                                                                                                                                  Practice excellent service levels.                                                                                                                      Secondary                                                                                                                                                                                                                                                                                                                                                                                                                                                   25     base determination — which is                                               33
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 calculate values and assist in
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     end entry, e.g., incorrect
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     30                  En ter generati on                                                                                                                             gauge satisfaction levels of                                                           be addressed through better                                                                                                                                                                                                                                                                                software has drill downcapability
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                ProCede which are not available                                          of ProCede. Currently using old                                              created outside the accounting                                                                                                                      if the Loss record is processed as
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Moderate                 Some                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         I                                                                               II                                                                      II                                                                                                                                                                                                                                  I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             negotiated with SBU by                                                                                                                                                                                                                                                                                                                                                                     reinsurers                                                                             training and management of                                                                                                                                                                                                                                                                                 to eliminate manual analysis
                                                                                                                                                    Financial                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    processingloss transactions, e.g.,                                                  commission rates, andnoclean                                         cr iteria i n L335                                                                                                               Best                                                                                                                                                                                                                                                                                                                               Best                                                              B est

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      I                                                                               I                                                                                     I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                in ProCede                                                               open file                                                          Pr actice software                                                                                                                                            it occurs, not monthly
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [3–6 months]
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    C LA S S                                                                         C L AS S                                                                 C LA S S                                                                                                                                                                                                                          C LA SS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Reinsurance Administration.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Builder's Risk
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           $0K                                       way to book adjustments
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Practice                                                                                              underwriting associates activities                                                                                                                                                                                                                                                             Practice
                                                                                                                                                  Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     C L AS S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Often a long negotiation process
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    C L AS S                                                                              C LA S S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               pro gram

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Long Term                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           -150                                                    -160
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                High                    Major
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [6+ months]                                                                            E nte r genera tion criteria
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    in the pre-processor                                26%                                                                                                                                                                                                                                                                                                                                                                                                                                              $-250K                            -225           -240
       Activity           Low Value-Added               Decision             Comment/Additional            Connection to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Major backlog in responding to                                                             There i s n o li nk betw een Prem ium and                                                                                                                                                                                                                                                                                                                                                                                                                                                  CCI sometimes asks Settlement to                                                       ProCede lacks the ability torun                                                                                                                           Accuracy ofdata, e.g., Product ‘X’                                            Pr oCede report s do not break out cash                            Pr oCede not designe d for the nee ds                                           We nee d to unde rstand anticipate
      Description        Activity Description                                   Information               Unmapped Area                                                                      Checklists are generated at the                                                                                                                 Product ‘X’ Analyst may not be                                                                                                                                                                                                                                                                                                      There is a lack of communications                                                                                                                                                                                                                                           Eliminate checking Summary of                                                                                                        1             2            3              4           5             6              7             8              9                                                                                                                                                                                                                                                                                                             Late contract signings create                                                                                                                          disburseme nts/re ceipt s between
                                                                                                                                                                                        1                                                                       7       Underwriters don't use                                       9                                                                                                                                                                                                                                                                                                                                  15                                                                             19         System Initiated Requests (SIRs)                                                  50       Rei nsuran ce Ac cou nting . R ei nsu rance                                              13                                                                                 30      International affiliates difficult to                                      29       Calculating premium basis is                                                        6          10            11
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Tie in part underwriting/ 12                                                                                48        pay the same policy in two                                                    66       reports on demand by specialist                                        47                                                                       83        entries is critical to processing.                                   69
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       premiums and losses -r eport only net
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 49       of an accounting supe rv isor. The re                                  23       what is being consider ed bef or e the
                                                                                                                                                                                             beginning of the process to                                                                                                                     performing checks consistently,                                                                                                                                                                                                                                                                                                     of the important features of                                                     results in delay in implementing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Acc oun ting can not determ ine wheth er the                                                    Agreement since it comes from                                                                                                                                                                                                                                                                                                                                                                                                                                                     for desk audits. FIT developed                                                   rushed and often erroneous                                                                                                                                                                                                is no supe rvisor scre en. Tools                                                Under write r doe s the deal, to
                                                                                                                                                                                             ensure compliance and                                                      eReinsurance to full advantage --                                    e.g., entry already processed,                                                                                                                                                                                                                                                                                                      underlying reinsurance                                                                                                                                                      in sured has p aid th e gros s prem ium before                                                  the same database as the Bound                                                      include in premium base due to                                                      getting more complicated, e.g.,                                                              management compensation                                                                                               different months. Requires                                                                                                                                              transactions, particular when                                            Accountingdoes not have the                                                   amount. Creates re conciliations

                                                                                                                                                                                                                                                              I                                                                     I                                                                                                                                                                                                                                                                                                                                   I                                                                           II                                                                                            II                                                                                                  I                                                                               I                                                                                     I        how to extract data for exclusions Month
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              I                                                                                     II                                                                                I                                                                        I                                                                            II                                                                 II                                                                                I
                                                                                                                                                                                      Best                                                                              do transaction the "old way"                                                                                                                                                                                                                                                                                                                                                                                                                                                              error correction fixes and                                                                 m aki ng a prem ium c es sio n to th e in sured's                                                                                                                                   lag in getting information                                                                                                                                          Best         levels to reinsurance objectives                                                                                      additional follow-up with CCI to                                                       report can only be run by FIT, and                                                                                                                        time andresource to "police"                                                  problems between Treasurer 's Dept                                 av ailable in pre mium account ing                                              influence whe re possible, t he be st
                                                                                                                                                                                    Practice consistency through the process.                                                                                                                creating downstream issues
                                                                                                                                                                                                                                                             C L AS S                                                              C LA SS                                                                                                                                                                                                                                                                                                                             CL AS S   agreements                                                          C L AS S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  continued incorrect transactions
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  C LA SS                                                                                         C L AS S   Transaction Report                                                     C L AS S                                                                              C LA S S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         C L AS S                                                                                   C LA SS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               only on monthly basis
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     C LA SS    people are out of the office                                  CL AS S                                                                       C LA SS                                                            CL A SS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          system s not pre sent in Pr oCe de
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                C LA SS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          ope rat ional approach
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             c ap tive - sign ific ant c ash fl ow iss ue                                                                                                                                                                                                                                                                                                                                                                                                                                               resolve                                                                                                                                                                                                                                          accuracy                                                                      and General Le dger (GFS)


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