Chris Lack, Partner at Exceptional Risk Advisors, has built the largest sports facility in Lloyd’s for player purchased policies. However, he easily switched gears and spoke with us on how and when to use the Excess Lines Market for life insurance solutions.
There are two specialty life products Lack reviews during the interview: 1) Accidental Death & Dismemberment (AD&D) and 2) Contractual Performance Indemnity (CPI). For life insurance advisors, there is no substitute for great advance planning - traditional life insurance provides comprehensive accident and sickness coverage and is often more cost effective to obtain. It should be noted that these two life insurance solutions are only used when the traditional markets can not or will not fulfill. At Exceptional Risk Advisors, our goal is to compliment and supplement the traditional market with additional limits and products, and never to compete with it.
Accidental Death & Dismemberment is coverage as an alternative, supplement, or short-term solutions for individuals who cannot obtain sufficient amounts of traditional life insurance. Benefit amounts exceed $100 Million per person, 24-hour worldwide coverage, and policy terms ranging from 1 day to 3 years.
To help illustrate, we recently bound a case for a 33-year-old billionaire who began base-jumping during life insurance underwriting. Investors required $20 Million in key person insurance on recent investments into the client's privately held business. We bound $20 Million of accidental death including 5 base-jumps per year.
Contractional Performance Indemnity is coverage that is readily available for contractual situations which present an urgent need to cover death or disability risks. Benefit amounts up to $50 Million per person, 24-our worldwide coverage, and streamlined underwriting with 24-hour cycle time.
For example, a few years ago we bound a case for a 38-year-old CEO of a national Neuromonitoring Group purchasing a $7 million G7 jet. The client put down $1 million, but didn't want to wait the 30+ days for the traditional life insurance coverage required by the lender to be in place. Within 4 days, we designed a custom CPI solution for the CEO of $6 million in life insurance for 120 days or until traditional life insurance was obtained.