Chubb Multinational Solutions February 2011

Disclaimer The information in this presentation is provided for illustrative and general information purposes only. The material presented is not, nor does it purport to be, a complete or exhaustive analysis of legal liability exposures or risks. The availability of insurance coverage depends on the particular facts and circumstances of any claim and the language of the policy as issued. Advice with respect to particular insurance needs or actual or potential legal liability must be obtained from your insurance broker or your lawyer. Actual breed of mite which caused loss may not be as pictured.

Recent Headlines The New York Times: Only 40% of American Companies have any type of Travel Risk Management Program Foreign Trade Council and World at Work: 64% of worldwide travelers develop some illness abroad and 1 in 30 travelers may require emergency care while traveling abroad. The Economist: Kidnapping is on the rise around the world, largely led by political unrest.

Agenda Introduction Capabilities Admitted vs. Non-Admitted Who needs “multinational insurance”? New Global Extension International Auto Foreign Voluntary Worker’s Comp International D&O Kidnap & Random Conclusion

Chubb’s Global Network Branch Offices in 29 countries Affiliate relationships with 120 insurance companies in 100 countries. Correspondent broker relationships in over 60 countries Local underwriters, claims analysts, and loss control experts in more than 120 offices

Correspondent Broker Services 100+ independent, full-service, multilingual agents Situated around the globe with ability to provide information on local market requirements Provide international experience and local presence Act on instructions from controlling agent

Proactive Loss Control 25% of Chubb’s loss control risk engineers are located outside North America Leading edge of jurisdictional emerging issues and trends Well-versed in local laws, regulatory requirements, building codes and international standards Provided at no cost to the insured

Admitted vs. Non-Admitted Admitted CoverageNon-Admitted Coverage Written and issued by a company licensed to do business in the country where the risk is domiciled. Country laws and legislation specify whether admitted insurance is a requirement. In most foreign countries, premiums for admitted policies are tax deductible, and loss payments on local policies are considered non-taxable events. Provides local certificates of insurance. Gives insureds access to existing terrorism or cat pools (e.g. Cat Nat in France, Consorcio in Spain, and Pool Re in the UK). May be more expensive. Ability to allow insurer to subrogate. Issued by a company not licensed to do business where the risk is located. May be cost-effective. Absolute control in the design of the policy and coverage terms. Accelerated program implementation. However: No access to government pools Penalties of non-compliance may include monetary fines Jail time related to non-admitted insurance in various third world countries has been reported (e.g. China)

MasterKey Global Extension Easy-to-apply policy endorsement that can be used with multiple liability product platforms Advancements or Reimbursements DIL/Excess and DIC Collectibility provision Currency provision

Key Selling Points Flexible rates that reflect unique legal and/or social climate Fills gaps left by domestic- only policies Provides a separate tower of liability limits Protects the insured’s distribution network Advances funds for defense

Loss Scenario – Foreign GL Our insured stored food products at a public warehouse in Rotterdam, Holland. The warehouse owner reported that there was an infestation of mites at the location caused by contaminated product that our insured placed in the storage facility. Because of the infestation, all outgoing shipments were blocked by the owner. Chubb claims determined that our insured’s product was the cause of the infestation and the claim settled for slightly less than $300,000 to pay for the infestation to other stored goods.

Who Needs Multinational Insurance? Clients who generate any revenues from sources outside Canada Clients with employees traveling outside Canada Clients with fixed assets outside Canada

International Automobile Coverage DIC and Excess Liability insurance up to $1,000,000 Requires that compulsory automobile insurance be purchased locally No compulsory self-insured liability retention required Broad definition of covered automobiles

Loss Scenario – International Auto While visiting Ireland on a business trip, our insured borrowed a car from a colleague. While driving, our insured hit a house and killed a man. The owner’s local policy declined the claim due to poor maintenance of the auto – the tire treads were too low. Total loss exceeded $200,000.

Foreign Voluntary Workers Comp Bodily injury by accident or disease in the course of temporary foreign employment Primary coverage provided for employees on a 24 hour basis MEDEX travel assistance services included No war or terrorism exclusion

MEDEX Services Worldwide medical referrals Emergency medical evacuations Repatriation Assistance with the coordination of rehabilitation after an evacuation Arrangement of emergency medication, blood & vaccine transfers Continuous updates to family, home physician &/or employer when appropriate

Loss Scenario – FVWC A U.S. Employee for a communications firm was in London, England for a business trip. While walking down the street, and not being familiar with the surroundings, the employee was looking in the wrong direction when hit by a bus. The employee received immediate care and Chubb Claims set a reserve of $700,000.

Admitted D&O Coverage Locally issued limits up to $5M Canadian-issued policy acts as a “global umbrella” sitting over the local underlying coverages Aggregated deductibles and limits are available, where permitted DIC/DIL cover fills potential coverage gaps

Why a Multinational D & O Policy? Regulatory enforcements of admitted requirements are on the rise Executives sitting on international subsidiary boards require adequate protection Canadian/US policy terms not always tailored for lawsuits brought abroad

Kidnap/Ransom and Extortion Insurance Financial protection in the event an organization suffers a kidnapping or other extortion loss. Insurance provided for:  Fees for independent negotiators  Rewards paid to informants  Salary continuation  Reasonable medical expenses

Loss Scenario The owner of a family-run business was abducted while traveling overseas. The kidnappers demanded a $3 million ransom payment. A security consulting firm was immediately called in to deal with the situation. The consultants negotiated a ransom of $625,000, delivered the payment, and recovered the victim unharmed. Total Loss was $675,000

Top Five Reasons to Choose Chubb 1. Collectibility Provision 2. Coinsurance Deficiency Up to Full Policy Limits 3. Foreign Voluntary Workers Compensation Insurance 4. Worldwide Services 5. Correspondent Broker Services