Structures
This is intended to allow the insured to take a layer, and mainly used if there is frequency of loss within the layer for the insured to take all of the loss up to an aggregate amount. Bonus: How is it accomplished.
Double Bonus: What do we use if it is not a frequency of loss, but an expectation of a number of losses we want the insured to retain.
Corridor
Bonus: Via a contractual indemnity policy replaying the main deductible
Double Bonus: Slider
This is what we call when we "guarantee" the renewal(s) rate as long as the client does not breach any caveats
Multiyear Deal. It's actually a Rate Commitment.
(Note, this is not a multi-year policy)
List the 5 most common forms of collateral- in order!
Letter of Credit (LOC)
Surety Bond- Travelers & Zurich
Cash- static
Working Cash- Funded Deductible / Loss Reimbursement Fund
Trust / Security & Pledge Agreement
This Practice in Major Accounts provides General Liability and Professional for medical type accounts- hospitals, nursing homes, etc.
Healthcare
There are 4 main balloons you should be considering when putting together a program
Structure/Limits
Rate/Pricing/Adequacy
Coverage- Terms & Conditions
Security- Form/Amount of Collateral
Define Loss Ratable
Losses limited to $25k, prior 5 years, must total at least $250k.
Stop Loss Aggregate.
Bonuses: Contractual Indemnity / General Liability policies used to exclude communicable disease
Basket Aggregate
This is the term for when you have a large deductible program that is greater than $5M
Mega Deductible. Need actuarial and CCM involved due to ACES being a primary pricing model and there are large limits involved.
This product line provides general liability pollution coverage
Environmental
You should ALWAYS consider offering these
OPTIONS!
This is what we call when we have one contract between Chubb/ESIS and the Client. We'd do this mainly to potentially offset the admin costs by accounting for revenue generated by ESIS.
Bundled Product
This is what Jenks would call free rate, but allows the insured to benefit from a small exposure growth where Chubb would not adjust the premium say within 0-5% growth.
Audit Collar or Swing.
There are 4 levels of authority with CCM- what are they
Credit analyst, Matt Guzek, North America Credit Committee, Global Credit Committee
This product line mainly provides products coverage for Medical Related Products as well as clinical trials
Life Science
Name 4 people on your large client relationship that will be a direct point of contact to Chubb from a relationship standpoint.
You!/Underwriter, GCE, MSL, Claims Client Executive
This rating plan is how Chubb accomplishes guaranteed cost when the program is Loss Ratable.
Incurred Loss Retro
This is built into the NOE and unique to Chubb. It happens if the insured cancels their policies mid-term.
Pro-rata Cancellation.
We can do programs that involve the insured having their own insurance company "reinsuring" the parent for the losses beneath the deductible.
Captives
This group provides Loss Portfolio Transfers, Structured Auto Programs- say a 3 year deal for the 5 xs 5 layer, and Prospective Deductible Buy Downs- meaning, you write a large deductible and they write a policy to replace the layer essentially making it guaranteed cost.
Chubb Alternative Risk Solutions (CARS)
This is a report in Worldview that gives insights into claims from a severity model perspective allowing the insured to review claims within a certain threshold that might be of concern to develop.
Bonus: What is the threshold.
4D predictive analytics
Bonus: $250k.
There are two ways, under a Workers Compensation Non Loss Ratable Guaranteed Cost program structure that you can manually adjust the premium.
On Liability At the end of the day, you can choose your own rate, using AARO.
Policy Writing Company and Schedule Credits/Debits.
This is where we would allow a broker to issue endorsement on behalf of Chubb- generally subject to a restrictive list of endorsements to limit Chubb from not knowing about things they could be providing coverage for. Most of the time, coverage is already in place under a blanket form.
Limited Agency Agreement
This is a program where the insured might transfer their historical losses to Chubb and pay A LOT of premium in order to transfer the liability in exchange for premium.
Loss Portfolio Transfer (LPT)
Excess Casualty, Multinational, A&H
There can be at least 10 points of contact with a client- name them.
Underwriter, Senior Management, GCE, MSL, Claims Client Executive / Claims Business Consultant, Loss Control, ESIS, Credit CCM, Legal, Actuarial, Premium Audit, Premium Adjustment Unit (PAU), Vendor Management, Chubb Claims, Senior Management, Other Product Lines, Branch Management/Field Operations/REO.