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...ce commissioner is one source. Surplus Lines Insurance companies are lic...outside study. Look for the CPCU (professional insurance) and RM (professional risk management) designations. ...

...iers Standard markets vs. surplus lines markets Communication ...s and sets your agency apart as a professional and ethical entity.

...iabilities on an insurer’s surplus. Although owners and top management... magazine for risk and insurance professionals.

...nd under what terms. Excess & Surplus Lines (E&S) carriers increase their wri... agency, while demonstrating your professionalism and your concerns to your cl...

...ibit 1) Assets, Liabilities, Surplus & Other Funds (Exhibit 2) I...there been significant or multiple declines in the company’s Best’s Rating in ...

... administrative paperwork. Deductible and self-insured plans will require a focus on cash management. Security requirements are generally met by providing bonds or letters of credit. In some cases, the proper form of security offsets the impact of a policyholder's losses or other liabilities on an insurer's surplus. Although owners and top management will be delighted with premium savings, they might be unaware that they need to be closely concerned with the process. The company's controller or human resources manager should involve the consultant or broker in educating management. CONCLUSION Medium-sized companies might ... medium-sized firms ask is "How large must my business be to use alternative risk financing?" Size isn't very important. The main criterion is losses. As a rule of thumb, alternative risk financing requires approximately $500,000 in annual incurred losses in one line of insurance — for example, Auto, General Liability, or Workers Compensation. Losses in this line should be reasonably predictable, and the firm should be reasonably able to accept risk. Internal management discipline and a willingness to commit the appropriate resources are also required ... management process. Captive risk financing carries somewhat higher non-loss costs and imposes greater administrative concerns than self-insurance and large-deductible plans. CHOOSING RISK FINANCING Here are the steps that a medium-sized company should follow in the financial evaluation of risk management alternatives: Work with a consultant or your broker to identify and analyze suitable alternatives. Project losses and costs, and compare the net present value of each of the risk financing alternatives to the cost of purchasing insurance. Simulate the variability of results. Be certain that you examine worst-case scenarios as well as expected ...

...' (Excellent) or better. Capital, Surplus, and MSVR: A high ratio of capital, surplus, and Mandatory Securities Valuation ...fits the coverage offers. Commercial Lines Clients and Prospects: There are v...

...high-liability exposures and thus surplus lines risks. The property may be a very low...

...d. Look at the carrier's ratio of surplus to liability, its ratings, interest ...ctible on a medical plan or a large liability judgment, or for funding opportu...