Home  
    FAQ
Frequently Asked Questions
   

Claim Professionals Liability Insurance Company
(A Risk Retention Group) ("CPLIC")
Welcome to the CPLIC website.  To learn more about CPLIC please view the entire article below by clicking here or browse the following frequently asked questions:
 

New E&O Insurance Information

Claim Professionals Liability Insurance Company, (A Risk Retention Group)

Claim Professionals Liability Insurance Company, (A Risk retention Group). (CPLIC) was created by the National Association of Independent Insurance Adjusters (NAIIA) to provide Errors & Omissions and General Liability coverage to all claim professionals who meet the underwriting criteria and will accept CPLIC's risk management guidelines. CPLIC was incorporated in Vermont on September 1, 2004 and received a license to conduct it's insurance business from the Vermont Insurance Commissioner effective September 19, 2004. CPLIC operates as a risk retention group under the federal Liability Risk Retention Act ("LRRA")of 1986 as a member. Under the LRRA,  every CPLIC insured must be an investor in CPLIC and every CPLIC investor must be insured. As a Risk Retention Group, CPLIC can reach out to qualified claim professionals everywhere in the United States and offer to them broader coverage with fewer exclusions, lower deductibles, and in most cases, lower premiums, but most of all, a perpetuating entity of claim professionals, run by claim professionals for the benefit of claim professionals.

To maintain the amount of capital required to satisfy the regulators in Vermont, CPLIC's state of domicile, we asked each claim professional or firm of claim professionals to look at the amount paid for the most recent year's Errors & Omissions and General Liability coverage and place on deposit with NAIIA $1,000, which represents one share of Class B stock for each $1,000 in premium paid, rounded up to the next $1,000. For instance, if your total premium paid was $2,100, you would need to invest $3,000. If your total premium paid on your current or most recent coverage  was $900 you would need to invest $1,000. No one is allowed to invest more or less than calculated based on their premium. This formula will insure relative equality among CPLIC's shareholders. At the time CPLIC was formed, each person who had deposited money with the NAIIA was first given the opportunity to review CPLIC's actuarial prepared financial statements and pro formas. Since CPLIC commenced operation in September 2004, investors who elected to convert their money on deposit to stock in the company, are now entitled to vote that stock and to participate in dividends that may become available. It is anticipated that the cost of CPLIC stock, or the investment required to get in, will increase rapidly. Therefore, if you want to express your independence by owning a part of your own insurance company and having a say in your future protection, it is suggested that you join CPLIC today.  Full information will be provided to all of those that deposit, and to trigger the receipt of that information, please fax a copy of your current or most recent E & O policy declaration page, along with confirmation of your transmittal to CPLIC, attn: Michael Hale at (714) 731-4605.
  On-line Application form is available here.

Feel free to direct any questions to Michael Hale, President of CPLIC, at 1-800-221-1236. We must protect our collective future.

Back to Top

 
     
 
Claim Professionals Liability Insurance Company,(A Risk Retention Group). (CPLIC) was created by the National Association of Independent Insurance Adjusters (NAIIA) to provide Errors & Omissions and General Liability coverage to all claim professionals who meet the underwriting criteria and will accept the risk management guidelines of CPLIC.

 

The vehicle used to provide Errors & Omissions and General Liability coverage to eligible claim professionals is a risk retention group created under the federal Liability Risk Retention Act of 1986, as amended ("LRRA").

 

Simply, it calls for every insured to be an investor in CPLIC and every investor to be insured by CPLIC. 

Back to Top

 

As a Risk Retention Group, CPLIC can reach out to qualified claim professionals everywhere in the United States. 

 

We offer broader coverage with fewer exclusions, lower deductibles, and in most cases, lower premiums, but most of all, a perpetuating entity of claim professionals, run by claim professionals for the benefit of claim professionals.

 

Make a commitment to professionalism.  Read all of the information available on this site.  Print and complete the application, subscription agreement and shareholders agreement found on this site.  Send with your current declaration page to our address above.  If you need consideration in less than 30 days you may fax the application and current declaration page to 714-731-4605. We will tell you if you qualify, how much your premium will be and how much investment you will be required to make within a week of receipt

Application Form

 

Stock certificates will be issued to your firm on the following basis:  1 share of class A stock for each $1400 invested.  Class A stock is available to members of the National Association of Independent Insurance Adjusters only.  One share of class B stock for each $1000 invested.  Class B Stock is available to all independent claim professionals except members of the NAIIA.

Back 

 

If you are an NAIIA member your investment will be 4 shares at $1400 each.  All others will be 4 shares at $1000 each.
 

 

When the company does go forward, if you elect to convert your money on deposit to stock in the company, you will be entitled to vote that stock and also be entitled to participate in dividends that may be available. 

Back to Top

 

If you want to express your independence by owning a part of your own insurance company and having a say in your future protection, it is suggested that you act now to put your money on deposit with CPLIC. 

 

Feel free to direct any questions to Michael Hale, CEO, NAIIA Risk Retention Group Coordinator at 1-877-572-7542, fax 714-731-4605,  or e-mail to Michael.Hale@cplic.net .

 

 We wish to utilize this space to publicly recognize those who have worked so hard on the CPLIC project. The NAIIA Member response has been superb with numerous talented volunteers contributing to the formation of CPLIC. In fact,  we have saved  considerable sums of money by ably accomplishing so much on our own.

First and foremost, we all owe immeasurable gratitude to Michael Hale. But for his idea, expertise and about 3,000 hours of his time, CPLIC wouldn’t exist!

We also owe our many diverse, knowledgeable volunteers a great debt of gratitude for their pro bono efforts. Some of these folks have contributed countless hours to the project. You know whom you are, and you should take great satisfaction in a job well done (sure, there will be more to do, but much has been accomplished). All on the following NAIIA committees have contributed what they could, and we are humbly appreciative for their efforts.  We can only thank them for their professionalism, their wisdom and their belief in CPLIC.

 

CPLIC Committees

 

Back to Top