Update on Sponsor Insurance For Clinical Trials June 26, 2008 Ty Howe, Life Sciences Practice Leader Boston office

1 Marsh Health Insurers Will they pay for subject injuries?  Specific facts of the situation will have a large bearing on whether health insurance will cover these medical costs. Will the current costs limit larger, long term medical costs?  Self insured plans are more likely to pay than insured plans  Some local plans will be more likely to pay than national plans (Aetna, United Health), due to local community standards  Sponsors have no ability to predict what percentage of medical expenses might be paid in a clinical trial

2 Marsh Clinical Trial Liability Insurance  A Liability policy, that may include Medical Expense coverage  Medical Expense insurance: No fault insurance for medical expenses incurred by a clinical trial participant  A sublimit within a clinical trial liability policy  Limits range from $0 to $10,000  New $250,000 excess option  Insurers include CNA, Berkley, Chubb, Medmarc, ACE  Profitable business: insurers will compete for accounts  International market is completely different from US market

3 Marsh Insurer’s mentality about claims  Yes, it is a liability policy, but…  As always, facts determine the insurer’s response  If the plaintiff’s argument will present a sympathetic set of facts to a jury, insurers will want to settle without proof of liability or even a lawsuit