PROGRAM STRUCTURE
The basic structure will generally involve the following parties:
PARTICIPANT
The Participant is the party to the transaction that is the primary risk taker.
They are generally either the insured company or an individual. In most cases,
the Participant will be responsible for expenses and losses that are limited to
a specified per occurrence amount, up to a program aggregate. The Participant
will be credited with underwriting profits or losses. The Four Points Re Facility
is a mechanism that legally enables the Participant to operate under insurance
company laws and regulations and therefore take risk on a specific insurance
transaction.
POLICY ISSUING CARRIER
The Participant will obtain coverage from an insurance carrier who will issue
the appropriate policy or policies. The carrier will have any required licenses
to issue policies in the applicable jurisdictions. The carrier will pay all
required premium taxes, fees, assessments, etc. The carrier will collect the
premiums and cede all or a portion of the risk to the rent-a-captive, Four
Points Re SPC, Ltd., after deducting amounts to cover certain program costs and
the carrier's profit.
FOUR POINTS RE, SPC LTD.
Four Points Re, SPC, Ltd. is an insurance company licensed in the Cayman Islands.
It will enter into a reinsurance agreement with policy issuing carriers for
risks of Participants in the program.
CLAIMS ADMINISTRATOR
The policy issuing carrier may act as the claims administrator or this service
may be delegated by contract to a third-party administrator.
REINSURER(S)
If the policies issued contain insurance risk that the insured does not wish to
bear through its participation in the Program, the risk may be retained by the
policy issuing carrier, ceded by the policy issuing carrier to other reinsurers,
or retroceded by Four Points Re, SPC, Ltd. to other reinsurers.
REINSURANCE AGREEMENT
The reinsurance agreement between Four Points Re SPC, Ltd. and the ceding company
(the policy issuing carrier) specifies the portion of the Participants'
insurance risk that will be ceded to Four Points Re, SPC, Ltd.
INSURANCE POLICY
This is a contractual agreement between the Participant (the Insured) and the
policy issuing carrier. It details the terms and conditions of the insurance
coverage and meets any requirements of the applicable jurisdiction.
CLAIMS ADMINISTRATOR
The policy issuing carrier may act as the claims administrator or this service
may be delegated by contract to a third party administrator.
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