Called a Producer Owned Reinsurance Corp or
PORC. This is a small Reinsurance company owned by the producer (Dealer)
and other stockholders of the dealers choosing.
Dealer keeps all underwriting profits (profits after claims are paid)
and investment income. All funds are kept in a
U.S. bank in the name of the dealers Reinsurance Corp.
Investments are handled by the banks trust
department. Small insurance companies have favorable tax regulations. If
qualify, premiums under $1,200,000 will be taxed on investment income only (about 1,500 contracts per year), inexpensive to set up, (under $5,000 capital) and are very valuable long term investments. For
more information and/or a 5-year Sales and Claims run out projection, call Dennis at 800-428-2350.