Western Independent Banker - March/April 2009 - (Page 34)

retentions on your D&O policy. When the hard market begins to recede and your bank’s condition returns to normal you can negotiate your deductibles and retentions back to appropriate levels. 2. Be prepared to accept restricted terms. If your bank falls into some of the categories listed above, we advise against taking your bank to market and moving coverage to a different insurance carrier. It will be difficult to obtain acceptable terms from other insurance carriers and you may create a coverage gap at a time when continuous coverage is essential. 3. Be generous with underwriting information. Have your broker set up a face-to-face visit or teleconference with your underwriter. Be prepared to address your bank’s adverse conditions and to share detailed plans to correct the deficiencies. Do not attempt to gloss over or minimize your problems—be straightforward and to the point in these discussions. Underwriters are much akin to bank examiners and will be appreciative of your honest evaluation of your bank’s problems and your management’s strategy to bring your institution back to fi nancial stability. 4. Understand the underwriter’s viewpoint. Financial institution insurance underwriters are held accountable for underwriting losses just like loan officers are held accountable for bad loans. Put yourself in the underwriter’s shoes when negotiating renewal terms and you should both leave the discussions with a higher level of respect for each other’s positions. The ultimate goal here is to get through the renewal with agreeable terms for both parties. Keeping the lines of communication open with your insurance underwriter during these unprecedented economic times are a critical component of your insurance renewal process, especially if your fi nancial institution is subject to one of the underwriting red flags discussed earlier. If you or your insurance broker are in need of assistance with any insurance issues please don’t hesitate to get in touch with our fi rm. Our services are provided at no charge to the membership of Western Independent Bankers. Patrick Corey is agency principal of Independent Bankers Insurance Services, Inc. (IBIS), in Chandler, Ariz. He can be reached at 480-663-3778 or www. ibisinsurance.com. IBIS is a WIB-endorsed Value & Income Program partner. Bank Compensation Consulting leads the industry with its approach to servicing its clients with state of the art plan design that assists banks in attracting, retaining and rewarding their leaders through: compensation consulting; design and implementation of customized Executive and Director beneﬁt plans; Bank Owned Life Insurance (BOLI); and ownership succession planning. The company has a core group of professionals who have over a decade of experience working with more than 500 banks nationwide and providing ongoing plan administration and monitoring. Kathy Smith, President Kelly Earls, JD, CPA Principal www.bcc-usa.com 5000 Legacy Drive, Suite 230 ~ Plano, Texas 75024 972-781-2020 or 800-781-2099 34 373660_Click.indd 1 3/13/08 9:23:07 PM 409910_Bank.indd 1 www.wib.org Western Independent Banker PM 1/15/09 4:10:07 http://www.ibisinsurance.com http://www.ibisinsurance.com http://www.clickrsvp.com http://www.bcc-usa.com http://www.wib.org

Table of Contents Feed for the Digital Edition of Western Independent Banker - March/April 2009

Western Independent Banker - March/April 2009 Contents A Message from the President & CEO Profitable Liquidity: Yes, You Can Non-Performing Assets: The Keep Versus Sell Decision Is BOLI the Way to Go? The Troubled Asset Relief Program and Its Eff ect on Executive Compensation TARP Money or Not, Secondary Offerings Belong in Your Plan 52nd Annual Conference Private Equity: Another Capital Option Strengthening Your Bank’s Bottom Line by Adapting to Difficult Times Managing Your Branch Network Capital Dealing with a Hard Insurance Market WIB Service Corporation Report WIB Calendar New Members Index of Advertisers Advertiser.com

Western Independent Banker - March/April 2009

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