Bank Card Protector Policy

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Bank Card Protector Policy

• Frates Insurance Risk Management
• By Thomas P Mulligan
• 405-290-5609
• Tom.mulligan_at_fratesinsurance.com

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THE PROBLEM

• Identity theft and fraud is becoming so
• potentially profitable it is increasing almost
  as fast as card use.

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Facts

• Recent Large Data Breaches
• Heartland Payment
• BJs Warehouse
• Hancock Fabrics
• A major research firm, is estimating that Bank
  Card fraud may hit 3 billion in 2011.
• Over 3 Million Americans were victims of Bank
  Card fraud over the last year.

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• 42 of bank customers have had their identity
  stolen in the last ten years.
• According to Visa, 87 of merchants are not
  computer compliant with the Anti-Fraud
  Technology.
• Card Skimmers are using Restaurants, Pay at the
  pump gas stations and ATMs.

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• As more banks have losses they will improve their
  security systems. They always have and they will
  again.
• However, it is not possible to prevent every
  security breach or fraud.

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• Implement new procedures and systems to
  prevent/mitigate fraud
• And
• buy the Bank Card Protector Policy.

THE SOLUTION
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The Bank Card Protector Policy

• The Policy has 3 Insuring Agreements
• FRAUD AT AN ELECTRONIC TERMINAL
• FRAUD INVOLVING TELEPHONE, MAIL ORDER AND
  INTERNET
• COMPROMISED CARDS EXTRA EXPENSE

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Policy Features

• Coverage includes
• Lost, stolen or counterfeit card including
  unauthorized use of card number
• Fraud on the Internet using Verified by
  Visa/Master Secure Code
• Costs to reissue compromised cards

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Bank Card Application
International Transactions
Phishing
Potential Loss Situations
White Card or Internet Transactions
Verified by Visa Or MasterSecure
Off-Line Transactions
Regulation E
Overdraft
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• All of these situations would be covered by the
  Bank Card Protector Policy. In addition the
  deductible is a per card deductible of 1,500 vs.
  most competitors 5,000 or higher.

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Extra Expenses

• When a Bank Card has been compromised, the extra
  expense to reissue a new card is covered.
  However, the bank must cancel the compromised
  card upon receipt of notification.

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Summary of the Bank Card Policy

• Benefits to Lenders
• Worldwide Coverage
• Extra expense to reissue compromised cards is
  covered
• Maximum loss per card is 10,000
• Low deductible- 1,500 per card
• Skimming Fraud (White Card) covered
• Insurer is A rated

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Program Structure

• This is a stand alone policy and will not be
  effected by losses in the Financial Institution
  Bond.
• Limits and Deductibles structured for the
  Bankcard industry.
• An easy to complete Application.

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Program Deductibles

• A 1,500 Per Card Deductible Maximum per
  occurrence deductible 10,000.
• Higher deductibles are available for reduced
  premium.

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Normal Policy Limits
Normal Policy Limits

• 10,000 per card limit
• 100,000 per occurrence limit
• 250,000 Annual Aggregate
• Other Limits can be negotiated.

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• Questions?