CRL UNDERWRITING MANAGEMENT MEETING Property Considerations NOVEMBER 16, 2011 Greg Mann Managing Director, Marsh USA Lindsay Grimes Assistant Vice President, Marsh USA Atlanta, GA

Property Schedules Demographic Information Basic description of the location of the property Unique Location Identifiers Location Number Location Name Full Address Street Number Street Name City County State Zip Code Country Geographic Location Longitude Latitude April 25, 2017

Property Schedules Values Detailed breakdown of values by asset class Building Contents (Personal Property) Equipment Vehicles Business Income Additional asset classes added based on exposure April 25, 2017

Property Schedules Primary Characteristics Basic COPE (Construction, Occupancy, Protection, Exposure) information regarding the risk of the property Occupancy Code Construction Class Construction Description Year Built Square Footage Number of Stories Basement Number of Buildings Flood Zone Sprinkler Type April 25, 2017

Property Schedules Secondary Characteristics Detailed COPE (Construction, Occupancy, Protection, Exposure) information regarding the risk of the property Building Foundation Construction Quality Roof Framing Shape of Roof Type of Roof Covering Year Roof Covering last Replaced Building Maintenance Exterior Cladding EIFS Wind Pool Eligibility Distance to Saltwater April 25, 2017

Property Schedules RMS Modeling RMS 11.0 Edition Released February 28, 2011 Most carriers have now implemented Major Changes Tenfold increase in damage estimates caused by wind Inland Filling Model revisions - higher wind speeds extending further from the coast Increased building vulnerability based on detailed analysis of historical claims data More emphasis on construction quality, building codes and code enforcement Research on the durability of roof systems and resulting roof performance Separate storm surge modeling that simulates surge and wave activity as it relates to storm size, intensity, and speed, as well as geographic features of exposed areas Typical range of change in results is between plus 20 percent to plus 100 percent for wind New model assumes worst case for missing information April 25, 2017

Builder’s Risk Advantages versus Disadvantages Advantages of adding builder’s risk project to primary property policy All property exposure under one policy Control terms and cost (remove contractor’s overhead and profit) Build in coverage for existing structure for renovations or additions Disadvantages of adding builder’s risk project to primary property policy Shared limits Greater risk of third party controlling operations (contractors are difficult to control/monitor) Potential limited coverage for soft costs and delay in start-up Potential for coverage gap based on annual policy term rather than construction period term Potential higher deductibles Non-expert underwriters may improperly rate the exposure (difficult to underwrite) April 25, 2017

Historical Valuation Many appraisals now provide historical replacement cost figures Current historical property valuation wording On historical property, valuation will be based upon the following requirements: The Named Insured shall provide written notice to the Company , which specifically identifies where the property is located, when it was built, it’s total square footage with an attached appraisal based upon reproduction value that was conducted within the past five (5) years. At the time of loss, the basis of valuation for historical property, when the Named Insured has not complied, will be replacement cost as defined in K. below. Where the Named Insured has complied with the requirements, the basis of valuation will be Reproduction Cost, if not replaced, at actual cash value. “Reproduction Cost” is defined as the cost to repair, rebuild or replace with material of like, kind and quality compatible to those originally used, including the cost of skilled labor and/or authentic materials necessary to restore the Property as nearly as possible to its original condition. Additional products available for historical properties and fine arts April 25, 2017