Excess _ Surplus Lines Market

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					The Excess and Surplus
    Lines Market

  Presented by Colin Wills, Vice President
   Excess & Surplus Lines Market
• Red-Headed stepchild
• In 1981, E&S industry
  accounted for $2.2 billion of
  direct written premium.
• Today, responsible for $34
  billion in direct written
  premium.
• Business written out
  performed admitted market
  based on combined ratio
  comparison based on A.M.
  Best.
       Judging companies and brokers
•   AM Best rating is a good gauge. A++
    Superior is highest rating.

•   AAMGA - www.aamga.org




•   NAPSLO - www.napslo.org
                   Lloyds of London
• Started out in the 17th century at a
  coffee shop.
• Not a company but a society of
  members.
• Members are called Syndicates.
• There are 66 Syndicates ran by 46
  managing agents.
• General agents access the Lloyds
  market through brokers.
• There are 163 accredited Lloyd’s
  brokers.
           WV State Regulations
• If admitted carrier you
  represent will write risk
  it cannot be placed with
  non-admitted facility.
• Show WV E&S form
  and WV due diligence
  form.
• Export List
                WV E &S Export List
                          Effective February 1, 2005
AEROSPACE                                    •   BARS / TAVERNS / FRATERNAL or SOCIAL
•  AIRCRAFT:                                     CLUBS with Alcohol Sales
•  CHARTERED                                 •   BLASTING CONTRACTORS
•  ANTIQUE                                   •   BUILDING DEMOLITION
•  EXCESS PASSENGER LIABILITY                •   BUILDING MOVING OR RAISING
•  FIXED BASE OPERATIONS                     •   CARRIAGE RIDES
•  APPLICATORS LIABILITY                     •   CHILD DAY CARE CENTERS
•  AIRPORT REPAIR OPERATIONS (UMBRELLA)      •   CONCERTS / SPECIAL EVENTS
•  BALLOON HOT AIR                           •   COURIER SERVICES
•  HELICOPTERS                               •   CRANE RENTAL & RIGGING
GENERAL LIABILITY                            •   DANCE STUDIO / GYMNASTICS
•  ADULT DAY CARE                            •   DEMOLITION OF BUILDINGS OR STRUCTURES
•  AIR SHOWS - Spectator Liability           •   DETECTIVE / INVESTIGATIVE AGENCIES
•  ALARM SYSTEMS / FIRE SUPPRESSION -        •   DEVELOPMENTALLY DISABLED, SERVICES FOR
   Installation, Service & Repair            •   DRUG / ALCOHOL REHABILITATION CENTERS &
•  ALCOHOL / DRUG REHABILITATION CENTERS &       PROGRAMS
   PROGRAMS                                  •   EMPLOYMENT AGENCIES
•  ALCOHOL SALES                             •   EMPLOYMENT PRACTICES LIABILITY (EPLI)
•  AMUSEMENT DEVICES & RIDES                 •   ENVIRONMENTAL IMPAIRMENT / POLLUTION
•  AMUSEMENT PARKS & CARNIVALS                   LIABILITY
•  ANIMAL RIDES / ANIMAL RACING & TRACKS     •   ENVIRONMENTAL REMEDIATION
•  APPLICATORS - CHEMICAL: FERTILIZER,       •   EXCAVATION CONTRACTORS
   HERBICIDE, PESTICIDE                      •   EXCESS LIABILITY / UMBRELLA LIABILITY
•  ARTISAN CONTRACTORS - Residential             (Commercial)
•  ASBESTOS / LEAD PAINT REMEDIATION         •   EXHIBITIONS / CONCERTS / SPECIAL EVENTS
•  ATHLETIC CAMPS                            •   EXPLOSIVE MANUFACTURING/STORAGE OR
•  AUTOMOBILE DISMANTLING, WRECKING              SALES
   SALVAGE YARDS
                  WV E &S Export List
                             Effective February 1, 2005
•   FAIRGROUNDS / FAIRS                          •   PERSONAL CARE HOMES
•   FIRE SUPPRESSION / ALARM SYSTEMS -           •   PLASTIC MANUFACTURING AND SALES
    Installation, Service & Repair               •   POLYURETHANE INSULATED BUILDINGS
•   FIREARMS - SALES, DISTRIBUTION & REPAIR      •   POLLUTION LIABILITY & REMEDIATION
•   FIREWORKS                                        CONTRACTORS
•   FRATERNITIES / SORORITIES                    •   POWER PRESSURE WASHING
•   FUEL TANK INSTALLATION SERVICE & REPAIR      •   PRIVATE SCHOOLS
•   GENERAL CONTRACTORS                          •   QUARRIES
•   GO KART TRACKS / MOTORCROSS TRACKS           •   RAILROAD PROTECTIVE LIABILITY
•   GROUP HOMES                                  •   REAL ESTATE DEVELOPMENT
•   GUIDES & OUTFITTERS                          •   RECREATIONAL VEHICLE RENTAL - ATV / Jet Ski
•   HABITATIONAL (Apartments, Condominiums,          / Snowmobile
    Multiple Dwellings - Residential)            •   RECYCLING CENTERS
•   HEALTH / EXERCISE / SPAS / FITNESS CLUBS &   •   RESIDENTIAL CARE FACILITIES / RETIREMENT
    CENTERS                                          HOMES
•   INVESTIGATIVE / DETECTIVE AGENCIES           •   ROOFERS
•   KARATE & GYMNASTIC SCHOOLS                   •   SAWMILLS
•   LEAD PAINT / ASBESTOS REMEDIATION            •   SECURITY GUARDS
•   LIQUOR LIABILITY                             •   SKATING RINKS - Roller / Ice / Skateboard / roller
•   LOGGERS                                          Blade
•   MINING                                       •   SKI LIFTS AND TOWS
•   MOBILE HOME PARKS                            •   SNOW REMOVAL CONTRACTORS
•   MOTORCROSS / GO KART TRACKS                  •   SPECIAL EVENTS
•   NEW VENTURES - NO PRIOR INSURANCE            •   SPECTATOR LIABILITY
•   NURSING HOMES                                •   TANNING SALONS
•   OUTFITTERS / GUIDES                          •   TAVERN / BAR / PRIVATE CLUBS / FRATERNAL
•   PAWN SHOPS                                       OR SOCIAL CLUBS WITH
                  WV E &S Export List
                            Effective February 1, 2005
•   TREE TRIMMING                              •   MINING EQUIPMENT - MFR / INSTALLATION /
•   TRUCKERS                                       SERVICE / REPAIR
•   UMBRELLA LIABILITY / EXCESS LIABILITY      •   PHARMACEUTICALS MFR & DISTRIBUTION
    (Commercial)                               •   PLAYGROUND EQUIPMENT MFR &
•   VACANT BUILDINGS                               INSTALLATION
•   WELDING                                    •   PRODUCTS RECALL
•   WHITEWATER RAFTING                         •   ROOFING
•   WINDOW WASHERS                             •   TANKS (FUEL)
•   WOOD WORKING OPERATIONS                    •   TIRE RECAPPING
•   CRIME                                      •   TOY MANUFACTURING
•   KIDNAP/RANSOM                              •   VITAMIN MFR & DISTRIBUTION
•   PRODUCTS / COMPLETED OPERATIONS
    DRIVEN ACCOUNTS:
•   AIRCRAFT & AIRCRAFT PARTS
•   ALCOHOLIC BEVERAGES MFR
•   AMMUNITION
•   AMUSEMENT DEVICES - MFR / INSTALLATION /
    REPAIR
•   DISCONTINUED PRODUCTS
•   EXPLOSIVES
•   FIREARMS
•   HEAVY EQUIPMENT MFR & REPAIR / REBUILD
•   INFANT FURNITURE
•   MEDICAL EQUIPMENT & PRODUCTS
                 WV E &S Export List
                          Effective February 1, 2005
•   PROFESSIONAL LIABILITY AND ERRORS &    •   NURSING HOMES
    OMISSIONS                              •   PODIATRISTS
•   ACCOUNTANTS                            •   POLICE PROFESSIONAL
•   ACTUARIES                              •   PROPERTY MANAGERS
•   AMBULANCE PERSONNEL & EMT's            •   PSYCHOLOGISTS / SOCIOLOGISTS /
•   ARCHITECTS                                 COUNSELORS
•   AUCTIONEERS                            •   PUBLIC OFFICIALS
•   BLOOD & PLASMA COLLECTION & BANKS      •   REAL ESTATE AGENTS & APPRAISAL
•   CHIROPRACTORS                          •   RESIDENTIAL HOME INSPECTORS
•   CLINICAL LABORATORIES                  •   SOCIAL SERVICE AGENCIES & SHELTERS
•   COMPUTER CONSULTANTS / PROGRAMMERS     •   SURVEYORS
•   COUNSELING PROGRAMS & INDIVIDUAL       •   TITLE & ESCROW AGENTS
    COUNSELORS                             •   X-RAY SPECIALISTS & TECHNICIANS
•   CYBER LIABILITY / INTERNET LIABILITY
•   DIRECTORS & OFFICERS LIABILITY
•   DRUG TESTING
•   EMPLOYMENT PRACTICES LIABILITY
•   ENGINEERS
•   ENVIRONMENTAL CONSULTANTS
•   FIDUCIARY LIABILITY
•   FOSTER CARE AGENCIES
•   HEALING ARTS
•   INSURANCE AGENTS & BROKERS
•   INVESTMENT ADVISORS
•   LAWYERS
•   MEDICAL LABS
•   MIDWIVES
•   MORTGAGE BROKERS / BANKERS
                  WV E &S Export List
                            Effective February 1, 2005
•   FIRE & ALLIED LINES                        •   INLAND / OCEAN MARINE
•   AMUSEMENT DEVICES / RIDES                  •   BRIDGES / TUNNELS
•   AMUSEMENT PARKS / CARNIVALS                •   COMMUNICATION TOWERS & EQUIPMENT
•   ASSISTED LIVING HOMES                      •   JEWELERS BLOCK
•   DIFFERENCE IN CONDITIONS                   •   LANDING DOCK LIABILITY
•   EARTHQUAKE                                 •   LOGGING EQUIPMENT
•   EXCESS FLOOD                               •   MINING EQUIPMENT
•   EXPLOSIVES MFR & DISTRIBUTION              •   RAILROAD
•   FRATERNITIES & SORORITIES                  •   RIGGERS LIABILITY / ON HOOK
•   FURNITURE MANUFACTURING                    •   UNDERGROUND EQUIPMENT (OIL & GAS,
•   GREENHOUSES – WIND AND HAIL                    TUNNELING, DRILLING)
•   HABITATIONAL (Apartments, Condominiums,    •   WATERCRAFT - COMMERCIAL
    Multiple Dwellings - Residential)          •   MISCELLANEOUS SPECIAL LINES
•   NUCLEAR ENERGY PROPERTY                    •   ASBESTOS EXPOSURES & CONTRACTORS
•   OLDER BUILDINGS (BUILT PRIOR TO 1975)      •   EMPLOYMENT RELATED PRACTICES LIABILITY
•   REMOTELY LOCATED PROPERTIES (Protection        (EPLI)
    Class 8, 9, 10)                            •   INTERNATIONAL EXPOSURES
•   RESTAURANTS                                •   KIDNAP / RANSOM
•   RIOT AND CIVIL COMMOTION                   •   OIL & GAS - ALL COVERAGES
•   SAWMILLS / PLANING MILLS                   •   PATENT INFRINGEMENT
•   TAVERN / BAR / PRIVATE CLUBS / FRATERNAL   •   PRIZE INDEMNIFICATION (i.e. Hole-in-One
    OR SOCIAL CLUBS                                Insurance)
•   VACANT BUILDINGS                           •   PRODUCTS RECALL
•   WOOD WORKING OPERATIONS                    •   RAIN / WEATHER INSURANCE
                                               •   SHORT TERM / SPECIAL EVENTS
                                               •   TENANT DISCRIMINATION LIABILITY
                                               •   UMBRELLA / EXCESS LIABILITY (Commercial)
                 WV E &S Export List
                           Effective February 1, 2005

•   AUTO PHYSICAL DAMAGE
•   AUTOMOBILE RENTAL
•   COAL HAULING TRUCKS
•   EXPLOSIVES HAULING
•   GASOLINE / PROPANE / BUTANE HAULING
•   LOGGING TRUCKS
•   LONG HAUL TRUCKS
•   TAXI SERVICES
•   TOW TRUCK OPERATIONS
•   USED AUTOMOBILE DEALERS
•   AGRICULTURE:
•   HAY IN OPEN OR BARN
•   DROUGHT
•   ANIMAL MORTALITY
•   POULTRY
                  Biggest ISSUES
• Agencies account current.
• Policy audits
• 25% Minimum earned and
  deposit premium forms.
• If insured does less than the
  policy shows, no return. If
  they do more THOUGH,
  they get billed.
          Workers Compensation
• Brickstreet -
  www.brickstreet.com
• All policy forms on their
  web-site and available to
  you.
• NCCI - National Council
  on Compensation Insurance
  - www.ncci.com
• 4% commission WOW!
• Commission not much but it
  could lead to other lines
  being written.
               Important Dates
• 1-1-06 Brickstreet
  adopts NCCI forms.
• 7-1-06 Brickstreet
  adopts NCCI class
  codes.
• 7-7-07 Brickstreet will
  adopt NCCI rates.
                  Apps & Forms
• Brickstreet app and BDI
  supplemental app.
• Employers Liability and
  Broad form
• Cost of broad form slide.
• Officer payroll
  requirements.
• Other states endorsement
  form.
• Payment options for 2007
  term.
• Cancellation request form
        Brickstreet WV Broad Form
Brickstreet reserves sole discretion to offer or refuse to offer limits above $500/500/500 for
    Employers Liability and WV Broad Form




                  Limits of Liabi lity   Excluding WV          Including WV
                  (000 omitted)          Broad Form            Broad Form

                  $100/500/100           Included              5.0%


                  $300/500/300           0.9%                  10.0%


                  $500/500/500           1.7%                  12.0%


                  $1,000/1,000/1,000     2.8%                  18.0%
               Brickstreet Officer Payroll
                     Requirements
                              NCCI Rules   West Virginia Workers
                                           Compensation Commission

Sole Proprietor Min Payroll   $30,300      $10,712


Sole Proprietor Max Payroll   $30,300      $44,488


Partner/LLC Member Min        $30,300      $10,712
Payroll

Partner/LLC Member Max        $30,300      $44,488
Payroll

P,VP, T, S Dir Min Payroll    $15,600      $10,712


P,VP, T, S Dir Max Payroll    $119,600     $44,488