Find out how we uncovered a $300k coverage discrepancy, have you had an annual review lately?

Situation: A client came to Frank Crystal because he felt that his current broker wasn’t actively advocating on his behalf. During our comprehensive Research & Analysis phase we uncovered several inconsistencies and errors when comparing the previous broker’s summary of insurance coverage with the actual policies.

Concerns:

• The client was at risk for a $300K out of pocket expense because he didn’t have liability coverage on his secondary home policy
• The client’s primary home was undergoing a major renovation, and the builder’s risk policy neglected to include contents coverage. Fire and theft are the greatest and most common risks during construction. In the event of a loss, valuable furnishings and sentimental belongings would not have not been covered

What FCC Did: Frank Crystal created a cohesive insurance program, filled previous policy gaps, and negotiated new rates.

Result: The new program resulting in added savings and increased coverage for the client. The client found the allies he was looking for at Frank Crystal and praised the team’s abilities.

Find out how we saved $50k for this 'gentleman’s farm'

Situation:

Frank Crystal & Company was called upon by a prominent family office to assess their personal insurance program. The family had an extensive portfolio of homes, farm properties, and automobiles.

Concerns:

• Farm properties were insured as revenue-generating, rather than a non-revenue generating "gentleman’s farm"
• Administration concerns – their insurance coverage was spread across multiple carriers

What we did:

Frank Crystal worked with carriers and the farm manager to conduct a pre-inspection of the property and any related operations.  After further review Frank Crystal consolidated the coverage.

Result:

With a clear picture of the farm’s risk exposures and activity, Frank Crystal was able to enhance coverage, and save the family over $50,000 in premiums. Placing the coverage with one insurance carrier also provided ease of administration.

We utilized our creativity and experience in this challenging placement of 12 homes in various disaster prone areas

Situation: The prospect needed assistance with quick placement of a very high value home in California which his personal insurance broker was unable to accommodate; the prospect also owned over a dozen properties all over the country.

Concern:

• Immediate placement of California home
• Additional 12 high-value homes around the country which required a variety of property insurance needs (i.e. homes in flood, earthquake, wind, etc.)
• Homes located in different catastrophe prone areas are a challenge to place

What We Did: 

Frank Crystal & Company responded without delay to the situation in California, efficiently and swiftly negotiating attractive terms of insurance for the home and providing the client with ongoing service and support. 

Frank Crystal & Company was able to offer a comprehensive insurance program that blanketed all of his properties under one policy, something the previous broker could not provide.

Result:  By using a unique blanket policy, all homes and associated coverage (flood, earthquake, etc.) were placed on one policy. With a blanket program in place, our client was able to secure enhanced and integrated coverage for all of his properties, while still consolidating his insurance portfolio,  simplifying administration of policies, and reducing his premium cost.

Pleased with the outcome, Frank Crystal was given the opportunity to review his entire personal and commercial insurance portfolio.

What’s a blanket program? Click here.

Is your social life putting you at risk? Hosting frequent events and fundraisers can pose liability concerns for homeowners

Situation: Frank Crystal & Company was called upon by a prominent wealth management firm to assess the personal insurance program for a high-profile client. Frank Crystal is a primary resource for the firm's personal risk management needs; a service the firm provides to its clients.

Within one day, Frank Crystal executives presented a thorough verbal critique to the advisors allowing them to confidently explain gaps in coverage to their client. After a successful meeting, Frank Crystal was asked to compile a comprehensive review and market comparison on behalf of the wealth management firm’s client.

Concerns:

• Extensive entertaining – concerns were raised regarding the client's risk management due to frequent fundraisers and events hosted at the client’s home.  The client hosts over 20 events each year.
• Liability coverage was insufficient.

What We Did:

Frank Crystal addressed each concern in a thorough Risk Management plan, clearly outlining how Frank Crystal executives would work with the wealth management firm and the events coordinators to properly manage the risk associated with each event, and request certificate of insurance from party vendors.

Frank Crystal was also able to provide significant savings by offering Liability Coverage under the wealth management firm's Group Excess program, replacing the individual policy.

Result:

The wealth management firm was able to effectively present their client with a cohesive risk management program at a reduced premium, portraying themselves as valuable advisors in the eyes of their client.

When fire strikes it can be scary, but for a NYC family with a special needs child it can be especially trying.

Situation: After an apartment fire a family needed to be placed in a temporary home immediately.

Concerns:

• There was a fire causing significant damage to the unit and the family needed to relocate during the rebuild & renovation process. 
• The family has a mentally challenged child and needed the temporary home to have a very similar floor plan, design, look and feel.

What FCC Did: Frank Crystal’s claims department worked with the carrier to find an apartment with a similar floor plan. Interior walls were painted to match the family’s permanent home and the child’s entire bedroom was replicated. Because the manufacturing and shipping of furniture often takes a few weeks, the claims department found similar furniture and negotiated a rental agreement.

Result: Claims department provided ongoing support and went above and beyond typical duties to ensure the family was placed in a comfortable living situation. The claim totaled $1.5 million, the client would have suffered a huge financial loss under his previous program.

See how the Frank Crystal's claims department helped restore a $7 million dollar farm house to its 1913 splendor.

Situation:

A client owned a large vacation property, which was occasionally rented out as a luxury vacation and retreat location. In an unfortunate twist of fate, a fire completely destroyed the second largest structure on the property, an original 1913 farm house.

Concerns:

• The structure was original, making rebuilding the structure to its original state a challenge.
• The client feared that the charm of the farm house, and his vacation property, was destroyed.
• Due to age the farm house had several charming qualities/items which would be a challenge to replicate:
  • Concrete flooring had a specific finish and shrinkage cracks
  • Electrical fixtures were hand made locally
  • Iron work no longer manufactured

What We Did:

Frank Crystal held weekly meetings with the client and insurance carrier to fully assess the damage and discuss best course of action for rebuilding the farm house.

Samples of the concrete flooring were sent to a lab in order to determine the exact components of the original concrete in order to reproduce the authentic flooring. Sample slabs were made and a specialist was brought in to match the finish. Several versions of finish were tested until a match was found.

A historian was used to track the origins of the handmade electrical fixtures, and a restoration company in Boston was called upon to reproduce the fixtures. Iron posts and railings that survived the fire were recast in order to recreate damaged ones. Any salvaged bricks were placed in storage until the last leg of the restoration, when they were returned to the exterior ramps and pathways.

Result:

The farmhouse fire was the largest single loss for the carrier in 4 years, totaling $7 million dollars. The client was extremely pleased with the outcome and reconstruction of the farm house.

Frank Crystal helps successful entrepreneur secure $250 million in life insurance coverage

Situation: A client approached Frank Crystal & Company looking to acquire a significant amount of life insurance. Although the desired amount of life insurance supported the client’s financial circumstances, there were numerous underwriting challenges.

Concerns:

• The client wanted $250 million of life insurance
• Already had $60 million of life insurance coverage in place
• Underwriting challenges for such a large sum included the client’s recreational piloting activity, and significant international travel, among others.

What FCC Did: Frank Crystal carefully assessed carriers’ capacities and the reinsurance sources available in the marketplace and leveraged relationships with carriers to minimize the number of underwriting requirements – usually extensive for coverage of this scale. Frank Crystal used a combination of term and permanent life insurance from 12 different carriers.

Results: Over the course of several months Frank Crystal successfully secured an additional $190 million in life insurance, bringing the client’s total to $250 million. In spite of the client’s profile and strict guidelines from several carriers, all polices were place at the best rating class.

Frank Crystal salvages a 20 year old policy and helps this family fund a potential estate tax issue

Situation: A retired business owner and his spouse were referred to Frank Crystal after their wealth manager conducted a review of the couple’s assets.  The wealth manager found that 20 yeas prior, the clients had made a large lump sum payment into the $10 million dollar survivorship whole life insurance policy to fund a future potential estate tax issue.

The policy didn’t perform as expected and the values were insufficient to sustain coverage without additional premiums. The client was advised that the policy could recover on its own and the required cash flows would be funded by annual policy loans.

Concerns:

• The projected accruing loan and interest would eventually create a large lien against policy benefits and reduce the insurance amount significantly.
• Additionally, a very small portion of the insurance benefits were actually guaranteed.

What FCC Did: Frank Crystal evaluated several alternatives to leverage the client’s investment in the policy as well as the cash values which had accumulated over 20 years. Frank Crystal recommended that the client transfer all values, including the loan, to a new policy, which offered a fully-guaranteed insurance benefit for life, without dependency on environmental factors such as dividend assumptions and inherent rates.

Results: This solution provided a guaranteed death benefit and resulted in approximately 80% more insurance benefit at policy maturity than projected under the previous policy. The new policy required no additional out-of-pocket premiums and the transfer was affected without income tax consequences.

See how Frank Crystal leveraged market relationships and restored this life insurance policy with significantly higher guaranteed benefits and no additional premiums

Situation: An entrepreneur and investment company executive with net worth in excess of $50 million was referred to Frank Crystal by his family office’s trust manager. The family trust owned an older generation whole life insurance policy. The trust had stopped paying premiums many years earlier and due to the policy structure had accrued significant loans. The policy had also been part of a class action lawsuit and held excess cash value as a result of the settlement. Because the amount of insurance was incidental in the context of the client's overall estate plan, he contemplated surrendering the policy all together.

Concerns:

• Despite the excess cash value, the majority of the proceeds would have been taxable to the trust given the low cost basis.
• The client decided to maintain the policy but remained uncomfortable with the carrier’s projected dividends.
• Through other brokers he had investigated replacing the policy with a triple-A rated carrier that could provide additional policy guarantees.
• These attempts did not produce a compelling reason to change carriers due to the client’s medical history and profile.

What FCC Did: After thoroughly interviewing the client and reviewing his extensive medical history, Frank Crystal approached several markets.

Results: By properly positioning the client’s medical profile and by leveraging relationships with underwriters, Frank Crystal was able to secure a preferred rating from the same triple-A carrier that had previously offered only a rated premium. Additionally, but using a more contemporary policy design, with out having to pay additional premiums Frank Crystal was able to secure a guaranteed lifetime death benefit which was significantly higher than the guaranteed benefits of the older policy.