PROPOSED INSURANCE COMPANY
(A Cayman Islands Corporation)
1. CLASSES OF BUSINESS TO BE TRANSACTED
Refer to the current policies in force which are proposed to be insured and reinsured by the Captive. e.g. Fire, Boiler & Machinery, Business Interruption, AL/GL, Product Liability, Medical Malpractice Liability, Workmens Compensation, Marine - Hull, Cargo, etc., for both Domestic and Foreign operations, if applicable.
2. NATURE OF PROGRAM
Describe the composite structure of the parent, noting if it is privately held or quoted as a public company and providing, if possible, an organisational chart of the parent and its subsidiaries. Also provide the trading notes of the parent, e.g. the last annual report and/or 10-K, if applicable, with a detailed description of the services provided and products manufactured, distributed and sold.
Describe how the original capitalisation is to be constituted. This should include the name of the bank to be used for the maintenance of the Captives funds. It should also allow for the guideline ratio of Premiums Earned : Net Worth generally thought of as Five : One, although the Companys risk exposure is often considered more than this ratio.
Describe the various coverages, noting the underlying deductibles, retention of the "fronting company", where appropriate, per occurrence and in the aggregate where PMLs are available.
5. PROPORTION TO BE REINSURED
Confirm the comments, as noted in "4" above, and expand on the specific and aggregate excess of loss covers, their attachment points and exclusions, specifying the names of the reinsurers of each layer.
6. CLAIMS REPORTING AND RESERVES
Give details of the names of the claims handling agents, whether in-house of the fronting company or an independent accredited claims handling company, and the procedure(s) envisaged, as well as any available loss history.
7. VOLUMES OF PREMIUMS TO BE WRITTEN/EARNED
Give details of these, referring to 3-year pro-forma financial statements to be attached to the Business Plan.