Overview of CIBA Programs NorthStar Risk Management Walnut Creek, - - PowerPoint PPT Presentation

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Overview of CIBA Programs

Corporate Office: 655 North Central Avenue, Suite 2100, Glendale, CA 91203 t 818.638.8525 f 818.638.8551 www.cibaservices.com

NorthStar Risk Management

Walnut Creek, CA

CIBA Insurance Services, established in 1993, provides commercial real estate insurance programs to property owners, managers, associations and affinity groups. Program coverage limits are established, continuously monitored and adjusted, if necessary, to ensure that each participant’s purchased coverages are available to protect their commercial real estate investment.

Our Mission: To continue to be the industry leader in providing

• wners and managers of commercial real estate comprehensive

and competitively priced programs for risk management.

2 Revised April 15, 2010

Oregon California Nevada Utah Arizona New Mexico Oklahoma Iowa Nebraska Kansas Kentucky Colorado Texas Minnesota Wisconsin Michigan Illinois Indiana Ohio South Dakota Washington Idaho Montana Tennessee Georgia North Carolina Virginia South Carolina West Virginia Arkansas Missouri Maryland Delaware North Dakota District of Columbia Wyoming

States CIBA Programs is available Regional Offices

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Las Vegas Dallas Glendale Chicago Atlanta

Revised April 15, 2010

CIBA INSURANCE SERVICES AND ITS SUBSIDIARIES CIBA CLAIMS ADJUSTING GROUP, INC. LAW OFFICES OF BAKER & ASSOCIATES SUMMIT SURETY INSURANCE SERVICES Underwriting Inspections & Loss Control Coverage Placement Processing Support Sales & Marketing Support Insurance Certificate Monitoring Claims Adminstration Legal Claims Support Subrogation Surety & Bonding

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2008 2007 2006 2005 2004 2003 2002 2000 2001 2008 2007 2006 2005 2004 2003 2002 2000 2001 2008 2007 2006 2005 2004 2003 2002 2000 2001 2008 2007 2006 2005 2004 2003 2002 2000 2001 $23,400 $20,931 $17,569 $16,609 $15,455 $13,439 $10,037

Total Insured Values – All Programs

Policy year ending March 31 Value (in millions) $20,005 $17,000 $15,836 $12,918 $11,915 $9,218 $8,015 $4,961 $2,473

Total Insured Values – Residential Programs

Policy year ending March 31 Value (in millions) 212,709 204,000 183,000 160,000 147,593 135,667 117,972 82,385 39,660

Residential Program – Number of Apartment & Condo Units

Policy year ending March 31 Apartment and Condo Units $8,437 $6,400 $5,095 $4,651 $4,694 $6,237 $5,424 $5,076 $3,872

Total Insured Values – Custom & Industrial Programs

Policy year ending March 31 Value (in millions) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 50,000 100,000 150,000 200,000 250,000 $0 $2,000 $4,000 $6,000 $8,000 $0 $5,000 $10,000 $15,000 $20,000 $28,442 $6,345 $10,000 2008 2007 2008 2007 $2,488

Total Insured Values

Policy year ending September 30 Value (in millions) $5,197 $2,242

Total Insured Values – Residential

Value (in millions) $6,247 $0 $1,500 $3,000 $4,500 $6,000 $7,500 $9,000 2008 2007 63,538 35,189

Residential Program – Number of Apartment & Condo Units

25,000 50,000 75,000 100,000 125,000 150,000 2008 2007 $1,050 $246

Total Insured Values – Custom & Industrial

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $0 $1,500 $3,000 $4,500 $6,000 $7,500 $9,000 Value (in millions) Policy year ending September 30 2009 $31,777 2009 229,894 2009 $22,239 2009 $9,538

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The steady and controlled Program growth has allowed CIBA to continue its goal of maximizing the benefits of group purchasing and expanded coverage.

CIBA I Program CIBA II Program

Revised April 15, 2010

CIBA COMMERCIAL PROPERTY AND LIABILITY PROGRAMS INDUSTRIAL RESIDENTIAL CUSTOM (HPR) Warehouses Light Manufacturing Retail Strip Centers Distribution Centers Industrial Parks Self Storage Office Buildings Fire Resistive Shopping Centers Office Buildings High-Rise Condominiums Apartments Homeowners Associations Condominiums (Condo Associations) Mixed-Use Buildings Active Adult Communities

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CIBA COMMERCIAL PROPERTY PROGRAM COVERAGES BROAD BASIC PROPERTY COMPREHENSIVE PROPERTY GENERAL LIABILITY All Risk Excluding Earthquake and Flood Boiler and Machinery Loss of Rents Crime (Optional) Lessor’s Risk (OL&T) Pollution Remediation Lead, Asbestos and Formaldehyde Liability Broad Basic Property Earthquake and/or Flood

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PROGRAM COVERAGES MARCH 31, 2010 TO MARCH 31, 2012 PROGRAM LIMITS PROPERTY All Risk Excluding Earthquake & Flood Residential Program $1,000,000,000 Per Occurrence, Automatic Reinstatement Industrial & Custom (HPR) Program $1,000,000,000 Per Occurrence, Automatic Reinstatement Asbestos Up to $25,000 Per Occurrence Mold $10,000 Per Occurrence Boiler & Machinery Residential $50,000,000 Per Occurrence Industrial & Custom (HPR) Program $50,000,000 Per Occurrence LIABILITY Lessor’s Risk Primary General Liability $1,000,000 Per Occurrence / $2,000,000 Per Location Aggregate Pollution Remediation & Pollution Liability (Including Lead, Asbestos & Formaldehyde) $250,000 Per Occurrence / $500,000 Shared Annual Aggregate Hired & Non Owned Auto – Business $1,000,000 Per Accident / Subject to $2,000,000 General Aggregate OPTIONAL COVERAGES Earthquake & Flood (3-31-10 to 3-31-11) Residential A Up to $5,000,000 Per Location Limit Residential B Up to $5,000,000 Per Location Limit Industrial & Custom A Up to $5,000,000 Per Location Limit Industrial & Custom B Up to $5,000,000 Per Location Limit Flood Only (3-31-10 to 3-31-11) Up to $5,000,000 Per Location Limit Dedicated Excess General Liability Layer 1 $10,000,000 Per Location Per Occurrence / Annual Aggregate Dedicated Excess General Liability Layer 2 $15,000,000 Per Location Per Occurrence / Annual Aggregate Shared Excess General Liability Layer 3 $50,000,000 Per Location Per Occurrence / $100,000,000 Shared Annual Aggregate Crime Up to $25,000 Per Occurrence / $250,000 Shared Annual Aggregate HOA/Condo D&O Up to $10,000,000 Annual Aggregate Available

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Between CIBA Program and ISO General Forms Residential Property & Other Coverages

POLICY BENEFIT CIBA ISO Property Coverage

Roadways, Walks, Patios, or Other Paved Surfaces Covered Excluded Retaining Walls Covered Excluded Underground Pipes, Flues, or Drains Covered Excluded Foundations of Buildings & Structures Covered Excluded Fences Included in Policy Limit; All Risk $1000 Debris Removal $5,000,000 Limit 25% Loss Fire Fighting $100,000 Limit $1000 Limit Pollutant Clean-up $100,000 Limit, Except Asbestos Removal $10,000 Limit Asbestos Removal & Testing $25,000 Limit From Covered Peril Excluded Trees, Shrubs & Plants Up to $250,000 Limit $1,000 Limit Signs Included in Policy Limit $1,000 Limit Increased Cost of Construction Up To $10,000,000 Limit $10,000 Limit Vacant Buildings Available With Higher Deductibles 60 Days With Named Peril Service Interruption $1,000,000 Including T&D (Within 5 Miles) Conditionally Excluded Extended Period of Indemnity — Loss of Rents 12 Months 30 Days Mold/Fungus $10,000 Limit From Covered Peril Conditionally Excluded Collapse Covered Conditionally Excluded Boiler & Machinery $50,000,000 Limit Conditionally Excluded

Additional Coverages Included With Liability

Pollution Remediation (Including Lead, Asbestos & Formaldehyde Liabilty $250,000 Per Occurrence Limit; $500,000 Program Aggregate Excluded Hired & Non Owned Auto—Business Use $1,000,000 Per Accident / Subject to General Aggregate Excluded

Note: Individual CIBA Policy Holder Coverages May Vary

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CIBA’s Earthquake & Flood optional coverages began in 1994 and have developed into a stable program for owners and managers of commercial real estate and their lenders. The Program is structured into six separate coverage towers with the following shared annual aggregate limits:

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CIBA I Industrial & Custom CA A $250,000,000 Residential CA A $250,000,000 Industrial & Custom CA B $250,000,000 Residential CA B $250,000,000 Industrial & Custom OS $250,000,000 Residential OS $250,000,000

CA = California OS = Other States

Exposure base, TIV, and sublimits are closely monitored by EQ zone to ensure that no single zone’s sublimits less deductibles or 30% PML exposure exceeds the towers aggregate limit. The current Primary Carriers include: Lexington Lloyds of London Westchester Ironshore Earthquake and Flood deductibles and sublimits are rated and established based on the Earthquake and Flood zone of the property. Earthquake and Flood coverage can be purchased with location sublimits or a primary account sublimit over multiple locations. Minimum deductibles per location apply.

Revised April 15, 2010

BrProperCoverages

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CrPrThr SubrCovereClaim ProperContrServices Permits BrInsurToInformation CertProgram PrSeminars PrGr$25,000 SponsoreCommerSeminars

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Property Inspections

• Inspections performed within 60 days of binding a location to verify application

information and property conditions

• An Inspection Report is prepared for underwriting and loss control files and provided to

the Broker and Customer

Loss Control

• Reviews all underwriting reports for accuracy and completeness
• Determines if loss control recommendations are warranted
• Forwards a copy of the report with comments to insured’s Broker
• Follows up on any outstanding loss control recommendations within 90 days

Revised April 15, 2010

CIBA’s Client Loyalty Program is location specific. Insureds with locations that have been in the CIBA Program for at least one renewal will receive a credit on subsequent renewals, if coverage is uninterrupted, of up to 3%.

Renewal Years Location In Program Location Renewal Premium Credit

ONE 1 % TWO 2 % THREE 3 % (maximum)

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Credit calculated and applied to property and liability insurance premium billed to the Broker. Earthquake and terrorism premium and all fees excluded.

Revised April 15, 2010

Association Fee

Each new associate is assessed a one-time Association Fee of $250 upon the initial location bound for coverages. This fee allows for up to four locations to be included in the Program and covers the claims adjusting, legal defense and loss control costs. Each additional location will be assessed a one time $25 fee.

Inspection Fee

In order to ensure the accuracy of applications and to provide loss control recommendations, each location joining the Program is assessed an Inspection Fee. Each location is assessed an initial Inspection Fee of between $175 and $750, depending on the number of buildings included in the location. Initial Inspection Fees for accounts with multiple locations are discounted and quoted separately. Each location is subject to a Re-inspection Fee of $70 per year, charged at renewal for carrier mandated re- inspections.

Insurance Certificate Monitoring Fee (ICM)

The Insurance Certificate Monitoring (ICM) Program is a valuable and cost effective way for Property Owners and Managers to control their insurance costs from potential subrogation in the event of a loss caused by a tenant, condominium unit owner or service provider. The Program provides verification of compliance with insurance requirements of leases, CC&R’s and service agreements. ICM services are billed on a flat fee basis based on the number of insurance certificates and locations to be

• monitored. ICMfee credits are available based on tenant compliance upon renewal of the ICMservices.

The ICMservices are also available for locations not currently in the CIBAProgram.

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Ratings as of April 13, 2010

AMBEST NO. INSURANCE COMPANY RATING FINANCIAL SIZE CATEGORY

Primary Carriers - CIBA I Program 3/31/10 to 3/31/12

78528 Ironshore Insurance Ltd. A- XI 02350 Lexington Ins. Co. A XV 48932 Lloyds of London A XV 04433 Westchester Surplus A+ XII

Excess & Specialty Carriers - CIBA I Program 3/31/10 to 3/31/12

12523 Arch Specialty Ins Co A XV 02148 Empire Indemnity Ins. Co. A XV 13131 Endurance American Ins. Co. A XV 11883 First Mercury Ins. Co. A- VIII 02210 Great American Ins. Co. of NY A XIII 10604 Homeland Ins. Co. of New York A XIII 78528 Ironshore Insurance Ltd. A- XI 78390 Lancashire Insurance Co. (UK) Ltd. A- XII 12619 Landmark American Ins. A XII 85202 Lloyds of London A XV AMBEST NO. INSURANCE COMPANY RATING FINANCIAL SIZE CATEGORY

Excess & Specialty Carriers - CIBA I Program 3/31/10 to 3/31/12

11034 Maiden Specialty A IX 18259 Munich Re A+ XV 12170 Princeton E&S Ins. Co. A+ XV 12562 QBE Specialty A X 00503 Shelter Re A- VIII 12553 Tokio Marine Global Ltd. A+ VI 03128 United National A X 00347 Westport Insurance Corp A XV 04433 Westchester Surplus Lines Ins Co A+ XII

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