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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