MR. WATSON: Let me tell you something. I have classes that give me this in any order I want them to. Give me the third characteristic

STUDENT: Officers.

MR. WATSON: Give me Number 1.

STUDENTS: Lodge.

MR. WATSON: Give me Number 4.

STUDENTS: Rituals.

MR. WATSON: Give me Number 2.

STUDENTS: Nonprofit.

MR. WATSON: Number 3.

STUDENTS: Officers.

MR. WATSON: Come on, give them to me. Number 4.

STUDENTS: Rituals.

MR. WATSON: Not only can you give them to me, but you will be able to give them to me in any order I want them.

Let me tell you something. Look at me now. I like to have a good time. When you are sitting there taking that state exam, you will have people all over the place taking the test. Right? You will see a guy with a bead of sweat up here. You will know he went to a different school. I want y'all to look over at him and say, "Dang, this is easy!" And it will be a like a guy turning on a faucet!

(Laughter.)

MR. WATSON: There are four characteristics of a fraternal organization, give them to me.

STUDENTS: Lodge, nonprofit, officers, rituals.

MR. WATSON: Now, a REINSURER. Tell me what you think a re-insurer does.

STUDENTS: Reinsures the insurance company.

MR. WATSON: It's an insurance company that insures insurance companies.

Let's try this. Swiss Re -- where do you think they are from? Switzerland. And what do you think they do? Insure insurance companies.

Let's try this. New York Life -- Let's say New York Life is insuring the Twin Towers and everybody in it. They would be bankrupt now, wouldn't they? So New York Life goes to a reinsurance company like Swiss Re, and they say, look, we will insure Jim's life for $3 million. Jim really wants a 5 million-dollar policy. So New York Life will insure 3 million of it and they want Swiss Re to insure for everything above that. Does that make sense?

STUDENTS: Yes.