Dealer Cell Dealers Open Lot Captive

Dealer Cell

The wait is over

Exclusive to Captives Insure, our revolutionary DealerCell program provides the coverage and flexibility that your best-in-class auto dealers desperately need, but that traditional insurance market can’t provide. DealerCell blends the integrated reinsurance/risk sharing mechanisms of a traditional group captive without sacrificing the control/ownership typically associated with a single-parent captive structure. With DealerCell, your Dealers Open Lot clients finally have the ability to earn an actual R.O.I. on their previous investments they’ve made into their risk management program by retaining 100% of their program underwriting profit without sacrificing any equity. With DealerCell, you can expect:

A+ XV AM Best policies issued on admitted paper
Premium stability
Integrated reinsurance
Non-CAT exposed dealerships/locations have no exposure to unrelated losses from other dealerships that are CAT exposed
Brokers receive 10% commission on gross written premium
The captive’s loss fund retains 50% of the premium paid for the policy and/or policies and keeps 100% of the captive’s underwriting profit
Complete control over the requests for surplus distributions
Annual surplus distributions from the carrier trust to the captive 90-120 days after expiration date of the reinsured policy and/or policies.
No requirement to change existing captive managers or existing captive insurance arrangements
Client has the ability to write other lines of insurance within their captive structure
No requirement of in-person offshore board meetings
Ability to form the captive after the policy has been bound
Physical Damage deductibles waived in a loss involving ten or more units
No exclusions for RV, ATV, Motorcycle, Farm Implement, or Heavy Equipment Dealers

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Included Coverages:

Dealers Open Lot - $20M per location limit ($10K per unit deductible)
General Liability (including Garage Liability and Garage Keepers Liability) - $1M/$2M limit
Workers’ Compensation
Commercial Auto Liability - $1M CSL
Commercial Property - $5M per occurrence limit

Captive Retentions/Reinsurance Attachment Points – Dealers Open Lot and Property Coverages

Each participating captive insurance company retains the first $500K per occurrence with DealerCell sharing the next $250K for non-CAT exposed locations with the carrier retaining the risk excess of $750K. per occurrence
CAT exposed locations of DealerCell participants share $250K excess $750K per occurrencefor CAT losses only with the carrier retaining excess of $1M per occurrence

Captive Retentions/Reinsurance Attachment Points – All other DealerCell coverages

Each participating captive insurance company retains the first $250K per occurrence with unrelated DealerCell participants sharing the next $100K per occurrence
Carrier retains all risk above $350K per occurrence

Program Qualifications/Requirements

Minimum premium of $1M (may be combined with all DealerCell coverages)
Submissions no less than 60 days prior to the desired effective date
Combined five-year loss ratios of <40%
Program start and common effective date of March 1 with a 12-month policy period
Boat/watercraft dealers are excluded