CAPTIVE INSURANCE
Under relevant state laws regulating SCICs , this structure establishes a legal segregation of the SCIC ’ s assets and liabilities into a number of separate cells and a central core . Each cell is entirely self-contained and distinct from the other cells as well as the core .
BENEFITS OF A SPONSORED CAPTIVE INSURANCE COMPANY AND PROTECTED CELL
A sponsored captive insurance company provides the protected cell with the following :
• Personalized insurance coverage for both typical and specialty risks
• Identification and filling of gaps in traditional insurance policy coverage
• Underwriting and investment profits captured for the owner
• Tax treatments that the owner can access that are reserved for insurance companies , as well as providing efficient and effective financial management tools .
AGRICAP CORE CAPTIVE INSURANCE POLICY SUITE
AgriCap provides a unique policy suite designed for the agriculture industry , offering the following benefits to the protected cell :
• Custom policy forms to cover gaps in traditional insurance policies and markets
• Agricultural business income protection against severe weather occurrences that limit productivity and , hence , income and / or costs for a farm enterprise or agribusiness trade region
• Coverage against income loss resulting from unfavorable weather events
• Insurance policies for other property & casualty risks and ESG coverage requirements to meet the needs of the entity / owner
AGRICAP ASSURANCE COMPANY CORE POLICY SUITE ( AAC ) The latest AgriCap Core policy suite consists of the following :
• AgriCap All-Risk Crop Insurance Program ( protection against commodity production yield loss )
• AgriCap Contingent Business Income Insurance Program ( protection against yield / revenue loss as a result of adverse weather )
• AgriCap Custom Property and Casualty Insurance Programs
• AgriCap Custom ESG Insurance Programs OVERVIEW OF PROTECTED CELL DEVELOPMENT STEPS
Here is a brief overview of the steps of protected cell development . The steps are as follows :
1 . AgriCap collaborates with an entity to create an insurance policy that covers the entity ’ s unique risks based on information supplied by the entity or information received from external sources .
2 . AgriCap will draft a protected cell proposal . The entity will then review AgriCap ’ s proposal and pro forma . The entity will then decide whether or not they want to continue with the process .
3 . If the entity decides to proceed , they will be required to sign a Formation Agreement with payment of $ 3,500 to start the process .
4 . A captive insurance application will be completed by the entity , AgriCap , and Captive Planning Associates ( AgriCap ’ s captive manager ). After further review , the entity may again choose to move forward or to terminate the process .
5 . A captive insurance application will be completed by AgriCap and the entity . Captive Planning will be responsible for creating the insurance entity and submitting it for approval to the state of domicile ( Utah ).
6 . The captive is received , reviewed , and approved by the state of domicile ( Utah ). AgriCap will then authorize a firm order for reinsurance to be issued to the reinsurance market .
7 . All fees will be paid by the newly established protected cell . The entity owner will then receive insurance and reinsurance . +
grinnellmutual . com
TRUST US TO HELP THEM TAKE ROOT
Your customers keep lawns and landscapes flourishing . We protect them with coverages to help their lawn and landscaping businesses flourish , too .
Trust in Tomorrow . ® Contact us today .
AUTO | HOME | FARM | BUSINESS
“ Trust in Tomorrow .” and “ Grinnell Mutual ” are registered trademarks of Grinnell Mutual Reinsurance Company . © Grinnell Mutual Reinsurance Company , 2022 .
13