Best Practices for Service Providers / Accounting & Financial Reporting Issues Facing the Industry (GAAP, SAP, I

1. Best Practices for Service Providers / Accounting& Financial Reporting Issues Facing the Industry (GAAP, SAP, IFRS) Donald B. Rousso Paul Shanbrom Travis D. Clark Randall D. Ross #[insert hashtag here]

2. Preformation Matters • In General • Initial government incorporation in the jurisdiction of formation • Insurance application documents and related documents in the jurisdiction of formation • Capitalization • Entity structure and formation • Initial underwriting • Actuarial analysis/services • Analysis of reserves, permitted assets and compliance with regulatory agencies • Drafting of policies • Coordination of other business and financial affairs so as to maximize the efficiency of the insurance company as it relates to existing business interests • Acquisition of insurance and/or reinsurance • Determination of proper basis for accounting #[insert hashtag here]

3. Post Formation Matters • Accounting • Proper basis for accounting • Basic bookkeeping • Financial statement preparation (on a monthly or quarterly basis) • Annual audits by a certified public accountant • Moderation of NAIC and tax filings in conjunction with strategic partners, or through coordination of services with retained professionals • Submission of annual reports to the insurance regulators • Periodic audits and/or examinations by regulatory authorities as required • Underwriting and Policy Issuance • Benchmark coverage and related premiums • Preparation of documentation including applications, policy documents, renewal invitations and premium payment confirmations and related notices • Review of third-party (traditional) insurance documentation, including reinsurance agreements • Periodic underwriting review #[insert hashtag here]

4. Post Formation Matters (cont’d) • Claims • Supervision, including coverage review, appointment of legal counsel, production of settlement documentation, provision of quarterly claims reports, annual audit of claim settlements, and assistance with claims reserves and liaison with actuary • Reporting • Adjustment • Case Reserves • IBNR • Payment • Financial integration • Issues #[insert hashtag here]

5. Post Formation Matters (cont’d) Actuarial Capital adequacy and dividends, reserve valuations, premium rating, long-duration UEPR, captive parent self-insured liabilities, premium deficiency reserves Corporate • Corporate governance, including: • Registered office • Registered agent • Ownership and responsibility for financial statements • Corporate minutes/Corporate resolutions – annual and special • Coordination of general corporate law matters and compliance • Legal counsel in the captive domicile #[insert hashtag here]

6. Post Formation Matters (cont’d) General • Insurance regulators • Key service providers, including: • Actuary • Auditor • Accountant • Registered Office • Registered Agent • Legal counsel • Investment Advisor/Manager/Wealth Manager • Regular discussion and updates with owners and risk managers Other Areas • Annual licensing fees • Premium taxes and self-procurement taxes • Resident directors in jurisdictions requiring same • Dissolution, liquidation or other matters in connection with the cessation of insurance activities #[insert hashtag here]

7. Contact Information Donald B. Rousso, President Paul Shanbrom, Executive Vice President 2010 Main Street, Suite 650 Irvine, CA 92614-7294 Telephone: (949) 269-1400 drousso@altaholdings.com pshanbrom@altaholdings.com www.altaholdings.com Travis D. Clark 1025 Ridgeview Drive Suite 300 Reno, Nevada 89519 Telephone: (775) 826-5432 Travis@albrightpersing.com www.albrightpersing.com Randall Ross, ACAS, MAAA 7681 South Main Midvale, UT  84047 Telephone: 801-562-5748 rross@taylor-walker.com www.taylor-walker.com #[insert hashtag here]