Financial Institutions Capabilities Overview

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Crystal & Company is the insurance brokerage of choice for leading financial institutions, corporations and nonprofi
Financial Institutions Capabilities Overview

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About Us Crystal & Company is the insurance brokerage of choice for leading financial institutions, corporations and nonprofit organizations. Founded in 1933

Entering our 85th year in business

A Family Enterprise

A family enterprise, spanning three generations of Crystal family ownership and management

450 Professionals

The firm is comprised of more than 450 colleagues

11 Offices

Across the United States

Market Access

We place over $1B premium in the global marketplace annually

Global Reach

As a founding member of Brokerslink, we serve clients in more than 95 countries around the world

Top 10 largest US independent brokers As ranked by Insurance Journal

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Accounting Firms Broker/Dealers

Who We Serve

Commercial Banks Family Offices

We provide services to a wide range of financial and professional clients. We employ result-oriented brokerage services where understanding a client’s business is the primary component in developing an individual brokerage plan.

Hedge Funds Investment Advisors Investment Banks Law Firms Mutual Funds Private Equity Firms Real Estate Investment Trusts Venture Capital Firms

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Our Financial Institutions Group provides risk management and insurance brokerage services to more than

500

500

150

300

Asset Management Firms

Securities Firms

Mutual Fund Groups

Hedge Funds

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Common Risk Areas

BOARDS

PROFESSIONAL SERVICES

Outside Boards

M&A Advisory

Directors & Officers

Banking Restructuring Advisory Financial Valuation

EMPLOYEES ASSETS & DATA Cyber Liability Fidelity Bond Property

Workers’ Compensation Fiduciary Liability Employment Practices Key Person Lire Kidnap & Ransom

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Common Claim Allegations for Asset Managers 

Mismanagement



Failure to redeem, invest, or mentor funds in a timely and orderly manner



Misstatement



Negligence



Manipulation or misrepresentation of historical performance



Misrepresentation made in the PPM or other communication



Excessive fees



Fraud (Defense costs provided until a final non-appealable adjudication in the underlying proceeding is reached)



Contracting with substandard vendors/sub-managers



Conflicts of interest / related party transactions



Breach of duty





Failure to supervise the investment advisor

Claims against individuals serving as directors on the boards of portfolio investments



Failure to provide adequate disclosure of the investment risks involved



Claims or Investigations by the SEC or state attorneys general alleging violations of rules or statutes.



Investing in assets or using strategies not mentioned in the PPM



Market timing / Late trading



Insider trading allegations (Defense costs provided until a final non-appealable adjudication in the underlying proceeding is reached)



Claims made by employees alleging discrimination, sexual harassment, or wrongful termination (Covered under Employment Practices Liability Extension)



Failure to follow investment guidelines



Failure to properly value assets



Failure to invest

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Program Administration Offering Our customer service package is tailored to each client’s needs. All client inquiries are recorded and prompt response is always provided. Certificates are provided on a same day basis, requests for contract review are handled on a priority basis, and endorsement requests are transmitted to insurers immediately. Each policy is reviewed diligently on an annual basis, and all necessary policy changes are presented promptly to underwriters. As an insurance broker, Crystal will provide the following administrative services:  Review of renewal policies for accuracy  Response to requests for policy changes/endorsements  Development and maintenance of a current schedule of insurance  Continuous monitoring of the financial condition of insurers  Assistance in preparation of premium allocation models  Assistance in analysis of loss and exposure activity and trends  Review of service agreements and other contracts for insurance requirements  Assistance in preparation of management reports on loss and underwriting trends  Assistance in maintaining current underwriting and exposure information  Assistance in assessment of potential risks associated with future acquisition activity

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Onboarding Process for Prospective Clients  Allow Crystal the opportunity to review your current E&O, D&O, EPL, Cyber, and Fidelity insurance program in order to provide a confidential analysis on the following criteria:  Insurer Selection (Financial rating, Policy language, Claims handling)  Program Pricing, Limits, and Deductibles  Coverage language short falls and recommendations for solutions  Renewal strategy preparation and marketing approach We want the opportunity to earn the business of our prospects and achieve this through our service offering, expertise, and attention to detail.

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New Enhancements: Pre-Claim Defense  Under a typical D&O/E&O Policy, coverage for Defense Costs is provided once a Claim alleges a covered Wrongful Act (i.e., error, omission, breach of duty, etc.) against an Insured. If a matter that does not allege a covered Wrongful Act is noticed to the Insurer, a D&O/E&O Policy may not provide coverage for the Defense Costs.  Pre-Claim Defense Costs coverage provides for the reimbursement of Defense Costs which are incurred from the time a matter is noticed to the Insurer until the time it becomes a covered Claim under the policy. If the matter never arises to a covered Claim, then the coverage is not triggered and no reimbursement for the costs is provided.

Potential Scenario for pre-Claim Defense Costs Coverage Formal demand or proceeding is made against an Insured alleging a Wrongful Act and the matter becomes a covered Claim

Matter is not a covered Claim but is noticed to the Insurer as a potential Claim

Matter is discovered or inquiry is received by an Insured

“Pre-Claim”

“Claim”

Pre-Claim Coverage is provided for the reimbursement of Defense Costs incurred from the time the matter is noticed to the Insurer until the time it becomes a covered Claim

Coverage applies regardless of whether coverage for pre-Claim Defense Costs is included

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New Enhancements: Mock Exam Reimbursement With the increase in SEC activity over the past few years, many asset managers have taken pro-active steps to be sure they are prepared for a sweep or audit. Insurers agree that a practice exam is beneficial and have started rewarding their clients for taking initiative. SAMPLE COVERAGE LANGUAGE: A. The Insurer will reimburse the Insured Entity for the cost of mock regulatory compliance examinations of the Insured Entity conducted, during the Policy Period, by a compliance consulting firm approved by the Insurer. Any such examination shall not be conducted without the prior written consent of the Insurer (such consent not to be unreasonably withheld). B.

The Insurer’s maximum reimbursement payment for each mock regulatory compliance examination shall be fifty percent (50%) of the cost of such examination or ten percent (10%) of the annual premium charged for this Policy, whichever is less. The Insurer’s maximum reimbursement payment total for all mock regulatory examinations in the aggregate shall be $25,000.

Approved Vendors: Some Insurers have an approved panel of providers while others will review whoever the client chooses to use. Insurers are flexible here and will make accommodations!

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New Enhancements: Pre-Tender Defense Scenario No. 1 (Without Pre-Tender Defense Costs) - $250,000 Retention Effective Date

Claim Made

90 Days

Expiration Date

Claim Reported

No Coverage for Pre-Tender Defense Costs (i.e. The Insurer shall not be liable for any admission, assumption, settlement, stipulation, or Defense Costs to which it has not consented.)

Coverage for Defense Costs

Uncovered Loss Scenario No. 2 (With Pre-Tender Defense Costs) - $250,000 Retention Effective Date

Claim Made

90 Days

Claim Reported

Coverage for Pre-Tender Defense Costs (The Insurer shall recognize Pre-Tender Defense Costs for the 90 days preceding the notice of Claim as eroding the applicable Retention up to 50% of such Retention)

Up to $125,000 Retention Erosion

Coverage for Defense Costs

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Crystal & Company is the home for talented insurance professionals: creative, committed to their clients and driven to deliver extraordinary results. The company drives the strategy and execution behind insurance and employee benefits programs for businesses that want to be smart about risk. Crystal & Company is the insurance brokerage of choice for leading financial institutions, corporations and nonprofit organizations.

INSURANCE FIRM OF THE YEAR

BEST NORTH AMERICAN INSURANCE PROVIDER

2015 & 2016

2014, 2015 & 2016

Finance Monthly

hedgeweek

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Work Hard. Earn Trust. Deliver Results. Our value is delivered in the ownership and responsibility we demonstrate each day.

VISIT US

CONTACT US

32 Old Slip New York, NY 10005

Graig Vicidomino (646) 810-3564 [email protected]