SERVICE PROVIDERS AND FUNCTIONS
Professional service provider companies will be hired to handle the day to day running of the captive. These companies and their functions follow.
Captive Consultant – Captive Resources, LLC (“CRI”). The Captive Consultants, as independent contractors, assist the Board of Directors in seeing that the service providers carry out all of the Board’s decisions. The Captive Consultants are involved as non-voting members in all Board of Directors and Committee meetings and assist the Board in the planning of these meetings. CRI are the acknowledged leading provider of consulting services to member-owned group captive programs in the USA.
Captive Manager – Kensington Management Group, Ltd (“Kensington”). The Company is domiciled in the Cayman Islands and all official books and records of the portfolio must be maintained in Cayman. The Captive Manager keeps the accounting records of the captive and prepares financial statements, serves as the Assistant Corporate Secretary of the Company, and maintains the corporate and statutory records, including the minutes of all board meetings. Kensington is a sister company to CRI and is one of the leading independent managers in the Cayman Islands.
Credit Bank – Credit Suisse AG (“CS”). CS issues the outgoing Letter of Credit to the Policy Issuing Carrier to secure the Company’s obligations under the terms of the reinsurance agreement, and is the beneficiary of incoming letters of credit from the shareholders to satisfy their security collateral requirements. CS has a Moody’s rating of A1 and an S&P rating of A.
Operating Bank – Scotiabank & Trust (Cayman) Ltd. (“Scotia”). Scotia provides the Company’s operating bank accounts and term deposits. Scotia will also serve as the custodian of the Company’s investment portfolio. Scotia has a Moody’s rating of A1 and an S&P rating of A.
Auditors – PricewaterhouseCoopers, Cayman. The Auditors complete the annual financial audit of the Company and issue the audited statements.
Tax Advisors – Ernst & Young, Chicago. The Tax Advisors coordinate all required US tax filings for the Company and its shareholders.
Actuary – Pinnacle Actuarial Resources, Inc. The Actuary develops the loss projections upon which the premium for each member is based. In addition, they provide loss development and “Incurred But Not Reported” studies for purposes of the financial statements.
Policy Issuing Carrier – Arch Insurance Company (“Arch”). The Policy Issuing Carrier is a licensed and admitted “A” rated (or higher) insurance company which issues the policies for the program and takes care of all of the legal requirements of providing insurance for the shareholders. The Policy Issuing Carrier also provides the aggregate reinsurance for the program and has the ultimate authority in the determination of individual member pricing.
Excess Reinsurer – Arch Insurance Company (“Arch”). The Excess Reinsurer provides coverage for losses in excess of the Company’s retention, protecting the captive against the impact of a single large claim. The reinsurer also provides “basket and clash” coverage.
Claims Administrator – Sedgwick Claims Management Services. The Claims Administrator (TPA) handles the settlement of the claims under the policies. Specific claims handling instructions will be prepared in conjunction with CRI and implemented by the TPA. Additionally, CRI will assign a claims services manager from its staff to work with the captive members to coordinate claims review meetings, and follow targeted claims.
Risk/Loss Control Consultants – Various. This expertise is utilized to assist with developing standards and goals for each member’s loss control program. The loss control providers will work with each member to help them in achieving these goals, as well as report back to the Board, through annual assessment reports, regarding the loss control efforts of each member.