Course Agenda

Part One

1. Understanding Why Insurance Brokers, Financial Guarantors and Non-Insurance Captives are Strategically Important to the Insurance Industry; Identifying the Sectors and the Credit Risks they Pose
   1. Financial Guarantors
   2. Insurance Brokers
   3. Captive Finance and Leasing Companies
   4. Captive Asset Managers and Funds
   5. Captive Securities Brokers and Investment Banks
   6. Captive Real Estate Subsidiaries
2. Standard Buy-Side Transactional Risks
   1. Security
   2. Lending
   3. Trading
   4. Investing
3. Regulatory Risks
   1. Regulatory Empowerment and Authorization
   2. Regulatory Oversight
   3. Levels and Types of Regulatory Intervention
4. Disclosure Risks
5. Rating Agency and Access Risk
6. Macro/Sector Risks
   1. Competitive Environment
   2. Product and General Business Risk
   3. Distribution Risk
   4. Structural Risk
7. Financial Guarantors
   1. Types and Evolution
   2. Contract Types and Purpose
   3. Liability Types and Risks
   4. Disclosure
   5. Incorporation and Regulation
   6. Notional vs. Fractional Risk and VAR
   7. The Role of the Rating Agencies
   8. Capital Models
   9. Structure and Leverage
   10. Management and Diversification
   11. General Sector Issues
8. Early Warning Signs/Red Flags
9. Summary Case and Assignment

Part Two

1. Case Review: Discussion and Illustration of Case Assignment
2. Discussion:
   1. FGIC
   2. AMBAC
   3. MBIA
   4. FSA
   5. Radian
   6. ACA
3. Expanded Discussion of Use and Strategy of Financial Guarantors
   1. Traditional Risks
   2. Structured and Alternative Risks
   3. Outlook and Direction of the Industry
4. Credit Risk Scoring Methodology for Financial Guarantors
   1. Surety Writers
   2. Monolines

Part Three: Insurance Brokers

1. Role, Strategy and Diversification
   1. Functions
   2. Litigation and Realignment
   3. Trends and Outlook
2. Inherent Credit Risks and Early Warning Signs
3. Credit Scoring Insurance Brokers
4. Case Assignment

Part Four

1. Case Review
2. Credit Scoring Captive Finance and Leasing Companies
   1. Finance Companies
   2. Leasing Companies
   3. Premium Finance Companies
3. Credit Scoring Captive Asset Managers and Funds
   1. The Asset Manager / Investment Advisor
   2. Separate Accounts and Segregated Accounts
   3. Regulated Funds
   4. Unregulated Funds
4. Credit Scoring Captive Securities Broker-Dealers
5. Credit Scoring Captive Real Estate Subsidiaries
6. Credit Scoring Captive Service Companies

Part Five: Structural Issues and Documentation Fundamentals

1. Intercompany Considerations and Structure
2. Regulatory Reach and Attachment
3. Preference, Disgorgement and Equitable Subordination
4. The Credit Agreement
5. The ISDA and CSA
6. Collateral Issues