Claim Professionals Liability Insurance Company, RRG
Declares Its First-Ever Dividend to Policyholders
Paying a Dividend Is a Milestone for CPLIC, RRG, the Only Liability Insurance Group for Claim Professionals by Claim Professionals
(Tustin, California—April 25, 2016)...Michael A. Hale, CEO and president of Claim Professionals Liability Insurance Company (CPLIC), Risk Retention Group (RRG), announced today that the board of directors has voted to pay a dividend to policyholders. This is the first time CPLIC, RRG has declared a dividend, making it the only claim professional liability insurer to pay a return to policyholders. A $25 dividend will be paid as a credit against policy renewal premiums beginning on May 1, 2016 through April 30, 2017. Class A share owners will receive four dividends per share, or $100, and Class B share owners will receive one dividend per share, or $25. A dividend will not be distributed to owners of Class C stock.
“This is a momentous event for CPLIC, RRG,” Mr. Hale said. “When we organized our risk retention group in 2004, we told policyholders that our goal was not to make money, but to protect our insureds with liability coverage specifically designed for claim professionals at the lowest cost possible. At that time, we said that after we built our reserves, any year in which we had a significant surplus of funds, we would reward our customers for purchasing stock in our group.” Because CPLIC, RRG is organized as a risk retention group, policyholders are required to purchase CPLIC, RGG stock in the group.
Liability Coverage Designed for Claim Professionals Alone
CPLIC, RRG was founded by claim professional firms to offer independent claim professionals comprehensive liability protection at the lowest possible price. “When we started, other insurance companies charged claim professionals the same premium as professions with higher risk profiles,” Mr. Hale explained. “CPLIC, RRG covers only claim professionals, and our goal is not to make a profit. Therefore, we can offer lower premiums, fewer exclusions, and smaller deductibles than other insurers in our field. And when there is a substantial surplus and more than adequate reserves, we will issue a dividend.”
CPLIC, RRG also is committed to providing excellent, personal service. Policyholders know the underwriting staff by name, and can receive a certificate of insurance in less than two hours—sometimes as quickly as 15 minutes. They can ask to speak to Mr. Hale at any time. “We have first-hand knowledge of the errors and omissions liabilities we face when adjusting property & casualty claims, and what it is like to be an independent claim adjuster,” Mr. Hale said. “We want to make it easy for our policyholders to protect the business they have built.”
About CPLIC, RRG
Created by and for independent insurance adjusters, appraisers, investigators, auditors, administrators and consultants. CPLIC, RRG provides errors and omissions (E&O) insurance on a claims-made basis. E&O liability insurance helps protect professionals handling insurance claims, providing peace of mind to policyholders that they do not have to assume the full cost of defending against an alleged negligent act or error on their own. General Liability Coverage on a claims-made basis is offered as well to claim professionals who meet the underwriting criteria and are willing to accept the risk management guidelines. The risk retention group is incorporated in Vermont and reinsured by an A+ rated company. For more information, visit www.cplic.net.