September 25, 2012

1. The 3 P’s of Probate Production, Proficiency, Profitability Presented by: Helen A. Lally Navigators Management Company, Inc. September 25, 2012

2. BIOGRAPHY Helen Lally is Senior Vice President at Navigators Management Company, Inc. where she is responsible for the company’s commercial surety operation. Prior to joining Navigators, she was responsible for commercial surety at Great American Insurance Company, an underwriting officer at Safeco Insurance Company, and a vice president at Continental Insurance Company. Ms. Lally has worked in the surety industry for over 30 years. She has been committee chair for the Commercial Surety Committee of the Surety & Fidelity Association of America and currently serves on that committee. She is a member of the NASBP Commercial Surety Committee. Ms. Lally has facilitated and presented on underwriting and producing commercial surety on numerous occasions for both the SFAA and NASBP. She is a former instructor at the NASBP William J. Angell Surety School. 2

3. Facts and Figures Premium Production Stats • 2010 - $108,415,441 – L/R 16.2% • 2009 -$124,013,972 – L/R 13.2% • 2008 -$123,359,911 – L/R 7.1% • 2007 -$129,922,164 – L/R 29.2% • 2006 -$122,927,149 – L/R 11.5% Data provided by the Surety & Fidelity Association of America 3

4. Proficiency You need to know what you’re doing and your clients need to be comfortable with your knowledge of this business. They need to count on you. Here are a few tips to help you along the way.

5. Definitions Probate – the official proving of a will as authentic or valid in a probate court. 2) an officially certified copy of a will so proved. Probate – v. To establish the authenticity or validity of a will Probate court – a court that has jurisdiction over wills, estates, and guardianship of children September 25, 2012

6. Four Common Types of Probate Administrator – handles the affairs of a person who has died Executor – appointed by an individual through a will to handle the estate of the deceased Trustee – handles a trust established under a will or deed Guardian – handles the estate of a minor or a person who has been declared legally incompetent September 25, 2012

7. How Long Does Probate Take? • The length of probate depends on many factors: • size of the estate, debt associated with the deceased, existence of a will, the number of beneficiaries, etc. The most time consuming part of probate is getting all of the assets in and and selling or otherwise disposing of them in accordance with the will. • “It takes however long it takes.” September 25, 2012

8. Guardian Bond Duration In the case of a minor, the fiduciary is required to give bond for the faithful performance of their duties until the minor reaches the age of majority. In the case of an adult, the fiduciary is required to give bond for the faithful performance of their duties until the conservatee dies or the courts deem they no longer require supervision of their assets. September 25, 2012

9. Provided by the Superior Court of California, Alameda County

10. Uniform Probate Code The UPC was established in the late 1970s to eliminate some of the expense court costs associated with administering estates. It allows personal representatives to administer estates instead of lawyers. The UPC requires a fiduciary bond only in the following instances: a will requires one; a 3rd party with a financial interest in the estate requests one; a special fiduciary is appointed.

11. States that have adopted the Code Montana Nebraska New Mexico North Dakota South Carolina South Dakota Utah • Alaska • Arizona • Colorado • Florida • Hawaii • Idaho • Maine • Minnesota September 25, 2012

12. Profitability • Ask the right questions: • How is the fiduciary related/indebted to the estate? • How old is the minor? • Investigate the fiduciary and lawyers character. • Is there an ongoing business? • Is there a dispute between the heirs? Utilize the application provided by the surety and get answers to all of the questions up front. September 25, 2012

13. Profitability – cont’d Manage the premium collection – it’s the most common complaint with Probate – I can’t collect the premium – COLLECT IT UP FRONT. Who makes money billing $300 every year for 12 years? Manage the follow-up for the surety for annual accountings – set up the parameters with the surety for what they need each year; biannually or to close the file.

14. Production • How do I find this business? • Understand the nuances of the market you are targeting. • Is there a public guardian that the courts use on a regular basis? • Is there a court clerk that assists the principals in finding the bonds that I can talk to? • Find a surety partner that is committed to this business and your agency. September 25, 2012

15. Know what markets to target • 2010 GWP – • CA - $15,040,008 (8.4% LR) • NJ - $7,113,220 (18% LR) • FL - $4,810,277 (36.7% LR) • MD - $3,171,335 (11.1% LR) • CT - $1,896,100 (0% LR) • HI – 64,279 (0% LR) September 25, 2012

16. Find a Law Firm • www.martindale.com • Search tools • Search for practice areas – probate; fiduciary; wills; trusts • Get the attorney ratings • Other links from that site that provide information for you to be successful in gaining more knowledge of probate September 25, 2012

17. Find a Guardian Florida State Guardianship Association www.floridaguardians.com Washington Association of Professional Guardians www.wapg.org Professional Guardians Online Continuing Education www.professionalguardians.com September 25, 2012

18. Public Guardians California Association of Public Administrators, Guardians www.capapgpc.org Cook County Illinois Public Guardians www.publicguardian.org September 25, 2012

19. The 3 P’s of Probate YOUR QUESTIONS? If you do not have the opportunity to have your question addressed during the Seminar, you may contact the presenter directly: Helen A. Lally Navigators Management Company, Inc. hlally@navg.com 19 September 25, 2012