1. 2010 PLUS International Conference THE REAL ESTATE E&O PUZZLE: HOW DO WE EVALUATE EXPOSURES?

2. 2010 PLUS International Conference The Round-Up… MODERATOR: Fredric W. Trester, Esq., Partner, Manning & Kass, Ellrod, Ramirez, Trester LLP PANELISTS: Inga Goddijn, Managing Director, Markel Matthew Nangle, President, ProGroup International Amanda Whitted Sedliak, CIC, Senior Vice President, Capitol Special Risks, Inc. Richard Sheridan, Vice President, ACE USA Claims

3. 2010 PLUS International Conference Whats On Tap… Real Estate Market Trends and Emerging Exposures Underwriting Considerations and Available Coverages Insurance Coverage Risk Management Claims Handling Take-aways Questions & Answers

4. 2010 PLUS International Conference Real Estate Market Trends and Emerging Exposures What is different about the real estate market today? The Housing Market Short Sales & REO Sales Loan Modifications

5. 2010 PLUS International Conference Real Estate Market Trends and Emerging Exposures What are the specific exposures? Real Estate Brokers (Commercial and Residential) Property Managers Mergers & Acquisitions

6. 2010 PLUS International Conference Real Estate Market Trends and Emerging Exposures What are the specific exposures for each category? Appraisers Mortgage Brokers Title Agents

7. 2010 PLUS International Conference Underwriting Considerations and Available Coverages What is the impact on the underwriting process? In prior years, key questions included: Length of time in business / licensed? Are home warranties included? Are home inspections done prior to closing? Are standard contracts & seller disclosure statements used? Does the agency engage in dual agency transactions?

8. 2010 PLUS International Conference Coverage Questions on a Real Estate Professional Supplemental App: What should underwriters look for today? Percentage of sales involving foreclosed homes Percentage of sales that are short sales Percentage of sales from agent owned property Do any brokers or agents have an ownership interest in a construction or development company? Is any broker or agent actively engaged in fix & flip activities?

9. 2010 PLUS International Conference Coverage Questions on a Real Estate Professional Supplemental App: What is important to know regarding short sales? Of the total number of short sale deals, how many have closed in the past 12 months? What specific training is provided to staff regarding short sale transactions? What specific procedures or policies are in place for the handling of short sale transactions? Do you recommend, in writing, that all short sales be reviewed by an attorney & CPA for potential legal and tax implications?

10. 2010 PLUS International Conference Underwriting Considerations and Available Coverages What is a reasonable expectation of coverage? SIRs / Deductibles Choice of Counsel Retro Dates and Prior Acts Coverage Agent-Owned Property Pending and Prior Litigation Endorsement

11. 2010 PLUS International Conference Underwriting Considerations and Available Coverages What is a reasonable expectation of coverage? BI/PD Business Brokerage Pollution and Environmental Third Party Discrimination Syndicators and Promoters

12. 2010 PLUS International Conference Underwriting Considerations and Available Coverages What is a reasonable expectation of coverage, based on the definition of Professional Services? Restrictive: Residential Real Estate Sales for others for a fee Broad: A comprehensive listing of activities including sales, consultation, title, escrow, leasing, property management, tenant representation, appraisal, auctioneering, business brokerage, relocation assistance, expert witness, notary public, industry related committee participation, management consulting and internet-related activities.

13. 2010 PLUS International Conference Insurance Coverage What are the coverage issues arising out of the changing market? The implications of undisclosed services Independent (Cumis) Counsel Fraud and Deceit

14. 2010 PLUS International Conference Risk Management Whats the role of risk management in this new environment? Training Coverage Discounts Hotlines

15. 2010 PLUS International Conference Claims Handling What is the impact on claims handling practices today? Early Resolution Mediation Managing Counsel

16. 2010 PLUS International Conference Take-aways Better Communications Between Brokers and Underwriters Regarding Coverages Brokers and Agents Must Know Which Carriers Offer What Coverages to Avoid Surprises to Their Clients The Spirit of the Coverage Remains the Same for Real Estate Malpractice Insurance

17. 2010 PLUS International Conference Questions & Answers

18. 2010 PLUS International Conference Many Thanks to … Fredric Trester Inga Goddijn Matthew Nangle Amanda Sedliak Richard Sheridan