1. 1 March 4, 2014 Benefits of Collaborating In Claim Situations Why You Want To Be Involved Why You Want To Be Involved Presented by: Paul Kennedy Tiffany Schaak King and Neel, Inc. The Hartford King and Neel, Inc. The Hartford

2. 2 March 4, 2014 2 Your Hosts. Paul Kennedy is Vice President with King & Neel, Inc. in Honolulu, Hawaii, the agency he has been with since 2008. Prior to this he was with Chubb Surety for fifteen years during which time he gained valuable experience in domestic and international underwriting, account management of privately held small, medium and large contractors, publicly traded multi-national contractors, and Fortune 500 companies. Mr. Kennedy is a graduate of Trinity College in Hartford, Connecticut, where he earned his BA in Latin American Studies and Economics. Tiffany Schaak, is a claims attorney with The Hartford in Seattle, Washington. She serves on the Board of Directors of Pearlman Association and is a member of the Washington State Bar Construction Section, and former co-chair of the Bankruptcy Section of the American Bar Association, Tort and Insurance Practice Section. Ms. Schaak received a B.A. in finance from the University of Puget Sound, and a Juris Doctorate degree with honors from Seattle University School of Law. Additionally, she has earned the AFSB designation.

3. 3 March 4, 2014 3 Disclaimer

4. The Production Side of the House March 4, 2014 4 Perception Reality Vs.

5. The Environment of the Agent March 4, 2014 5 - Building Relationships - Knowing the Business Environment - Valued Business Partner

6. The Claims Side March 4, 2014 6

7. The Environment of Claims RegulationRegulation Minimize Exposure / Mitigate LossMinimize Exposure / Mitigate Loss Pay Valid Claims in a Timely MannerPay Valid Claims in a Timely Manner Pursue SalvagePursue Salvage March 4, 2014 7

8. Be Aware of where the other side is coming from.. Differences: Offense v. Defense Offense v. Defense Business v. Regulation Business v. Regulation Relationship v. One off Relationship v. One off Similarities: High Pressure High Pressure Service to the same product Service to the same product Problem Solving Problem Solving March 4, 2014 8

9. Here Comes the Claim… March 4, 2014 9

10. Expectations Of the Agent Awareness of: Awareness of: – the dual role the agent plays; – the level of comfort the agent has with the claim process. Open Communication – keep advised of developments Open Communication – keep advised of developments Work as a Team Work as a Team Of the Claim Representative Base information Base information Set Expectation – make sure client knows what we need and why we need it Set Expectation – make sure client knows what we need and why we need it Lead the Principal Lead the Principal Mind the Relationship Mind the Relationship March 4, 2014 10

11. Why You Should Lead March 4, 2014 11

12. Incentives As a professional agent, you can extract more from the claim teamAs a professional agent, you can extract more from the claim team A successful outcome for both clients A successful outcome for both clients Knowledge of outcomes and situations Knowledge of outcomes and situations March 4, 2014 12

13. Incentives Learn the claim process Learn the claim process Added value to your client Added value to your client Improve your relationships with carriersImprove your relationships with carriers March 4, 2014 13

14. When to be wary March 4, 2014 14

15. Areas of Caution Legal adviceLegal advice When there are divergent interestsWhen there are divergent interests When the Principal is not being cooperative When the Principal is not being cooperative When claim staff is taking a hard stanceWhen claim staff is taking a hard stance Cultural differences of carriers / alienating the underwriterCultural differences of carriers / alienating the underwriter March 4, 2014 15

16. Advance your practice Traditional Approach Forward the claim with initial position Forward the claim with initial position Advise your contractor client to seek counsel Advise your contractor client to seek counsel Proactive Approach Same first steps Same first steps Take it further: Take it further: – Explain the claim process to the contractor client – Align the interests of the surety and the contractor to the extent possible – Explore solutions with the claim staff – Get everyone on the same team March 4, 2014 16

17. Role of the Agent When the wheels fall offWhen the wheels fall off When your contractor customer is a claimantWhen your contractor customer is a claimant When you are approached by an owner or claimantWhen you are approached by an owner or claimant March 4, 2014 17

18. March 4, 2014 18 We are in this together. For the product to survive it needs to be valued from both a credit perspective and a promise perspective. Cultivating a relationship with a surety company’s claim department is a wise investment. The knowledge and connections gained will add value to your clients and enhance your business.

19. 19 March 4, 2014 19 YOUR QUESTIONS? If you do not have the opportunity to have your question addressed during the Seminar, you may contact the presenters directly: Paul KennedyTiffany Schaak King and Neel, Inc.The Hartford (808) 521-8311(206) 292-7870 Paul.Kennedy@ kingneel.comTiffany.Schaak@thehartford.com