CLAIM PROFESSIONALS’ LIABILITY INSURANCE COMPANY
(A RISK RETENTION GROUP)
Claims Professionals’ Liability Insurance Company (A Risk Retention Group) (“CPLIC”) is being established by the National Association of Insurance Adjusters (NAIIA) as a Vermont-domiciled risk retention group. It will be organized as a stock company and will commence business as soon as it receives its Certificate of Authority.
Swiss Re will provide a 75% quota share of the first $1 million of exposure and 90% of the $1 million xs $1 million layer. Reinsurance for both layers combined is subject to no loss ratio cap.
The Loss Prevention & Safety program will be overseen by the Risk Management Committee of CPLIC. This committee, which has already been appointed, comprises leading claim professionals from the industry. Details of the Risk Management Program are included under Section IX.
7. Loss Experience
The feasibility study included in Section V projects losses for the first 5 years of operation of CPLIC.
8. Organizational Chart
An organizational plan is attached to this business plan (available on site).
Capitalization will be provided in cash. This will be a one time contribution and the amount will be equivalent to the most recent year premium paid by the policyholder. CPLIC will commence business with at least $1 million cash capital.