The premise of selling service contracts to your BHPH/LTO customers has always been an upfront money issue. Meaning by selling a service contract to your customer you “front” the money to the service contract company before you get the money back from the customer, and then hope your customers make all of his/her payments. Unless they can afford to purchase it upfront, this creates a negative cash flow for the Dealership.
Our reinsurance program lends itself to underwriting extended service contracts with BHPH/LTO dealers. The premiums can be collected as the customer makes payments instead of “fronting” the cost to a service contract company. It will allow the BHPH/LTO dealer (as well as Franchise dealers) to place the premiums in their reinsurance company with complete control of the funds (i.e. no trust account required).
This program generates a lot of premium dollars; as such, we encourage owner(s) of creditor entities to avail themselves of our reinsurance participation program. The reinsurance participation program will allow the owner(s) of the creditor to better manage the risks, handle claims more efficiently (to protect program funds) and do so in the confines of a U.S. Taxpaying 831(B) (re)insurance company. If you already have a reinsurance company, then you know the beneficial tax laws regarding such companies. If you don’t already have an 831(B) taxpaying insurance company, then we can explain the benefits of forming and operating such a company. We do “turnkey” formation and management of the reinsurance companies (we can also take over management of your current company). We offer preferred share programs as well.
Our reinsurance program lends itself to underwriting extended service contracts with BHPH/LTO dealers. The premiums can be collected as the customer makes payments instead of “fronting” the cost to a service contract company. It will allow the BHPH/LTO dealer (as well as Franchise dealers) to place the premiums in their reinsurance company with complete control of the funds (i.e. no trust account required).
This program generates a lot of premium dollars; as such, we encourage owner(s) of creditor entities to avail themselves of our reinsurance participation program. The reinsurance participation program will allow the owner(s) of the creditor to better manage the risks, handle claims more efficiently (to protect program funds) and do so in the confines of a U.S. Taxpaying 831(B) (re)insurance company. If you already have a reinsurance company, then you know the beneficial tax laws regarding such companies. If you don’t already have an 831(B) taxpaying insurance company, then we can explain the benefits of forming and operating such a company. We do “turnkey” formation and management of the reinsurance companies (we can also take over management of your current company). We offer preferred share programs as well.
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