Underwriting Not By the BookMetropolitan Underwriting DiscussionJanuary 2012

Gene Lunman - MetlifeWilliam E. Moore – Swiss Re America Holding Corporation

| Metropolitan Underwriting Discussion | January 2011 2

Clerical E & O

Underwriting error

– Material – Not material

– Large amount – small amount

Pattern of behavior

Expected number of exceptions

Treaty Language

| Metropolitan Underwriting Discussion | January 2011 3

Scope– Frequency– Competitors audits

Bias – Non bias

Standards – clients vs. reinsurers

Random sampling vs. targeted sampling– Old age– Substandard– Large face amount

Number and type of exceptions

– Acceptable vs. not acceptable

Resolution– Reprice– Ignore– Give back

Underwriting Audits

| Metropolitan Underwriting Discussion | January 2011 4

Exceptions to standard and substandard– Meet the competition

– Make up for product without competitive pricing

– Normal course of business

– Judgment– Guidelines– Manual– Bilateral or unilateral

Case Underwriting

| Metropolitan Underwriting Discussion | January 2011 5

Tradeoffs vs. exceptions– Judgment?

Preferred Underwriting

| Metropolitan Underwriting Discussion | January 2011 6

Who pays? How are they used?

Table Shave Programs

| Metropolitan Underwriting Discussion | January 2011 7

Reinsurer's rights

Client's rights

Factors that effect placement – Jumbo – Auto bind

Prior issues

– Audits

– Patterns of behavior

– Reasonable and customary

Fac cases and disclosure

The Claim

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