XL Insurance - Environmental DivisionNortheast Waste Management Officials Association

Environmental WorkshopMarch 21st, 2007

Jayne Cunningham Vice President

XL Environmental

XL Insurance - HistoryFounded in 1986 by customers for customers, during the most severe liability crisis in insurance historyIn 2000, purchased ECS giving XL the second largest environmental market.A+ rated Carrier, offering a broad complement of specialty products

© 2005, XL Insurance, a member of the XL Capital group, All rights reserved

XL Environmental− 1979 – Founded as Environmental Compliance Services, Inc. (ECS); based

in Exton, PA. Began in the business offering a full range of Environmental Products to Environmental Waste Industry – GL, Auto, WC, Pollution Legal Liability, CPL for Waste Management Companies, Landfills, Waste Water Treatment Plants etc.

− 1985 -- MGA for Reliance National.

− June 1, 1999 -- $225 Million in premium. Acquired by XL Capital

− 2006 – 2nd largest environmental carrier, superior financial rating, reputation for customer service

© 2005, XL Insurance, a member of the XL Capital group, All rights reserved

Insurance Products

1. Pollution & Remediation Legal Liability (PARLL)− Four-part coverage form to include:

• Third-Party Liability: Bodily Injury/Property Damage• Remediation Expense: On-site & Off-site• Legal Defense Expense (within Limits of Liability)• Contingent Transportation

© 2005, XL Insurance, a member of the XL Capital group, All rights reserved

Protection for Lender

2. Real Estate Lenders Policy (RELP) − Coverage for Lenders – Borrower defaults on loan

resulting from Pollution Conditions that require remediation.

− Policy covers “Lesser Of” the amount of the outstanding loan balance or the clean-up costs.

© 2005, XL Insurance, a member of the XL Capital group, All rights reserved

Supplementary Product Offerings:Facilities - Environmental

− Remediation Stop Loss Policy (RSL)− “Cap” expected remediation costs− Cover property Owners and/or Consultants− Not accepting new business without existing relationship.

− Closure / Post Closure (CPC)− Financial mechanism available to government environmental

agencies to pay for remediation and/or proper closure of disposal facilities under RCRA.

− Not currently accepting new mono-line business submissions or requests.

© 2005, XL Insurance, a member of the XL Capital group, All rights reserved

Coverage Specific to Brownfield Transactions

− Pre-existing Conditions: − Unknown contamination issues− Toxic Tort associated with previous Operations− Bodily Injury Associated with Asbestos/Lead− Excess of Indemnity Trigger

− New Operations: − Mold Coverage− Bodily Injury arising from Asbestos/Lead− Business Interruption/Loss of Rents

© 2005, XL Insurance, a member of the XL Capital group, All rights reserved

Transactional business demands a coordinated approach…

XL’s Institutional AdvantagesIntegrated group of Underwriters, Risk Control and Claims staff Long term Staff Tenure, High Retention and ExperienceExcellent Ratings of Financial Strength and Claims Paying AbilityAbility to Write Excess Capacity when large limits are necessaryStaff Counsel Reviews PSA’s and Other ContractsStaff Risk Control Engineers Work Directly with UnderwritersTurn Around Time, as Fast as 1 DayInsurance products for all parties to the transaction, including Lender