INDEPENDENT INSURANCE AGENTS OF TEXAS

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INDEPENDENT INSURANCE AGENTS OF TEXAS

• St. Paul Travelers
• Marketing Community Banks
• July 7, 2005

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Marketing Community BanksAgenda

• St. Paul Travelers
• Key member benefits
• SelectOne
• Approach
• Support

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St. Paul TravelersA company with staying power

• Stability, beginning with our formation in 1853
• Expertise in protecting financial institutions
  since we started offering coverage to this market
  in 1890
• Second largest commercial property-casualty
  insurer in the United States
• Strong claims-paying reputation, demonstrated
  through consistently high ratings from
  independent rating services

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St. Paul TravelersKey member benefits

• Our products are endorsed by the ICBA, ACB, and
  Big I Markets.
• ICBA group purchasing power with program
  incentives that support community banks.
• Educational resources, such as insightful
  loss-control articles and publications.
• One of the largest networks of independent
  insurance agents, offering easy access to these
  programs.
• Insuring one-third of all community banks in the
  United States.

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St. Paul TravelersSelectOne

• A branded product offering an extensive selection
  of products to cover many risks that community
  banks might face.
• Designed to address the most recent trends in
  community banking and offers a simplified
  approach to establishing a wide range of
  protection.
• Helps to reduce potential gaps and overlaps in
  coverage.

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St. Paul TravelersSelectOne A solution for
protection

• Directors and officers liability
• Employment practices liability
• Bankers professional liability
• Trust errors and omissions
• Fiduciary liability
• Financial Institution Bond

• Kidnap and ransom
• Computer theft
• E-commerce extortion threats
• Internet liability
• Computer property
• Property/casualty products
• Surety
• Identity theft

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Corporate ManagementDirectors and Officers
Liability

• Provides personal asset protection for directors
  and officers, including an automatic additional
  1 million in limits that cannot be eroded by
  payments already made to the bank for its
  indemnification obligations or its own liability,
  or by payments under any other insuring agreement
  of the policy
• Coverage for non-officer employees.

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Corporate ManagementEmployment Practices
Liability

• Includes protection for an extensive array of
  employment practices acts.
• Can be tailored to include directors, officers,
  employees, leased employees and the bank itself.

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Corporate ManagementBankers Professional
Liability

• For both lender liability and professional
  services liability protection, coverage extends
  to the bank, its directors, officers and
  employees.
• An expanded definition of lending acts applies,
  including loan servicing when the bank has an
  ownership interest in the loan.
• For professional services liability, the
  professional services offered need not be
  scheduled and the coverage applies to a wide
  range of professional services.

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Corporate ManagementTrust Errors and Omissions

• All trust liability protection is under one
  policy, with coverage extending to the bank, its
  directors, officers and employees.
• Applies to a wide range of trust acts, including
  executor, administrator or personal
  representative of estates, administrator of
  guardianships, manager of personal property.
• Includes coverage for the bank as trustee of any
  IRA or Keogh account.

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Corporate ManagementFiduciary Liability

• Extends to the bank, the plans, directors and
  officers of the bank, and any natural person
  trustee, director or officer of any
  bank-sponsored plan.
• Enhanced definition of covered plans, including
  plans not subject to Title 1 of ERISA. ESOPs
  have to be named.

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CrimeFinancial Institution Bond

• Written with no annual aggregate limit of
  liability when the single limit of liability is
  10 million or less.
• Property of customers and employees is covered
  during on-premises holdups and robberies without
  regard to the banks legal liability for the
  property.

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CrimeKidnap and Ransom

• Applies to losses from ransom, loss in transit of
  ransom, fees for crisis response firm services,
  rest and rehabilitation, legal liability,
  additional expenses, and personal accidents.
• Includes an expanded definition of covered
  persons, such as immediate family, stepchildren
  and adopted children, as well as guest.

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E-businessComputer Theft

• In the Financial Institution Bond, includes
  restoration costs for electronic information
  intentionally damaged or destroyed by employees.
• Also includes losses resulting from computer
  theft.
• Restoration costs are included for electronic
  computer instructions prepared or modified by a
  virus or hacker attack.

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E-businessE-commerce Extortion Threats

• Covers threats by natural persons who are not
  employees of the bank.
• Applies to crisis-response firm fees.
• Includes expenses incurred to investigate and
  mitigate e-commerce extortion threats.

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E-businessInternet Liability

• Failure to protect customers confidential
  information from unauthorized access on or
  through the Internet.
• Failure to prevent transmission of a computer
  virus to customers.
• Failure to provide Internet access to customers
  (by endorsement).

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E-businessComputer Property Protection

• Includes direct physical loss or damage to the
  banks computer hardware, portable computer
  hardware and software, including both purchased
  and custom-built programs and data.
• Loss resulting from intentional attacks by
  computer hackers or computer viruses directed at
  the banks system.

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Property and Casualty

• General liability
• Auto liability
• Workers compensation
• Property
• Foreclosed properties

• Trust properties
• Mail
• Repossessed auto and equipment
• Mortgage holders errors and omissions or
  impairment

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St. Paul TravelersThe right choice for banks

• Dedicated underwriters who understand the
  complexities of banking and the exposures they
  face.
• Skilled claim specialists offering convenient
  claim reporting 24 hours a day, 365 days a year.
• Local presence in the region.
• Currently insure 40 of ACB ICBA member banks
  in Texas.

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Marketing Community BanksThe Approach

• Relationships.
• Knowledge of the products.
• Direct writer vs. standard company.
• Be a consultant make recommendations.
• Pre-approved accounts.

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Marketing Community BanksSupport

• Underwriting Kesha Patel 105 Decker
  Court Suite 1100 Irving, TX
  75062 800-792-8758 Toll 972-374-4895
  Tel. [phone] Fax KPATEL_at_stpaultravel
  ers.com

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Marketing Community BanksSupport Cont.

• Claims Irving Office 800-792-8758
  Richardson Office 800-446-1579

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QUESTIONS?

• Thank you for your time today!