1. “LACK OF GOOD JUDGEMENT INSURANCE” CRITICAL “BALANCE SHEET” PROTECTION PRESENTED BY: Thomas A. Cook, Jr., CIC Senior Vice President Vacation Resort Specialty Palm Beach Division October 28 - 30, 2013 Las Vegas, Nevada

2. LACK OF GOOD JUDGEMENT INSURANCE EQUALS DIRECTORS AND OFFICERS LIABILITY INSURANCE  We are a nonprofit organization – what kind of claims could we face?  What specifically is the D&O policy intended to do?  For me to be covered when does the “wrongful conduct or act” have to occur?

3.  Are you one of the persons insured?  Who can make claims against me that my resort policy should protect me?  When do I need to let my insurer know about a claim?

4.  OK – What isn’t covered?  I work for my association for free – why can’t I make a little profit?  What is considered to be a “claim” under a D&O policy?  Who is going to defend me and who pays what?

5. ***Insert presentation pages here for discussion lead by Scott McGinness ***

6. FLOOD INSURANCE REFORM The Biggert Waters Act of 2012 PRESENTED BY: Chad Dorsey, CRIS Vice President Vacation Resort Specialty Palm Beach Division October 28 - 30, 2013 Las Vegas, Nevada

7. Good Water!

8. Bad Water!

9. Biggert Waters Flood Insurance Reform Act of 2012  Passed by Congress in July, 2012  Extends the National Flood Insurance Program for 5 years  Calls on FEMA to change how NFIP is run  Raise rates to reflect true flood risk  Make the program financially stable  Flood insurance rates are to more accurately reflect the real risk of flooding

10. Why Reform NFIP?  Costs associated with flooding continues to increase  NFIP current rate structure is unsustainable  Rates have not reflected the true flood risk

11. F LOOD D ATA fema.gov

12. Effects of Flood Reform  Premium Increases  Average 10% effective Oct. 1  Increases of 25% possible for select policies  Non-primary/Non-Principal Residences  Severe repetitive loss properties  Business Properties  Business properties defined:  “… a building used for hospitality…”

13. Key Dates & Triggers  Jan. 1, 2013 (up to 25% increase possible)  Homeowners with subsidized rates on non- primary residences  Oct. 1, 2013 (up to 25% increase possible)  Business properties & repetitive loss properties  Oct. 1, 2013 (5% increase)  Non preferred risk policies subject to the reserve fund assessment