Reinsurance Models

Choosing the model that is right for you and your dealership

F&I Reinsurance Participation that Amplifies Returns

Whether you’re looking for a long-term investment strategy or need cash flow now, Assurant has the income-development expertise and wealth-building structures you’re looking for. We invented F&I. And we’ve been reinventing it since the beginning. That’s why we understand - and offer - all five participation models. So regardless of your preference, we have the right model for you.


Assurant Dealer Services has it all. Choose your model, based on:

  • Your long- or short-term need for cash
  • Your comfort level with tax benefits and consequences
  • Your desire for control of the claims process
  • Your preference for off-shore or domestic investment
  • Your risk/return tolerance

Times change, goals change and we make sure our dealer clients can change their reinsurance position with them.

It’s important for dealers to take a well-rounded view when evaluating participation structures. Each participation structure offers unique benefits to dealers, which is why Assurant doesn’t promote one option over another. We provide a variety of participation vehicles and are flexible and transparent in how we partner with dealers to find the best one that meets their needs.

Furthermore, we continue to help dealers adjust their position as their needs change, without any switching costs or loss of productivity at the dealership.

Assurant forms, manages and cedes to a variety of reinsurance participation vehicles.

We offer First Extended Dealer Obligor, CFCs, DOOCs and Retros. And we have six NCFCs, with aggregate invested assets exceeding $1 billion. Historically, our NCFCs have returned over $1 billion to dealer partners in the form of redemptions and dividends. And owing to recent organizational enhancements, we expect these plans to begin paying qualified dividends to shareholders this year.

Schedule a simple pro forma consultation to see if you are getting the most value out of your current plan.

Nearly all of our dealer clients are involved in some type of auto F&I reinsurance program.

Understanding Your Reinsurance Options

Non-Controlled Foreign Corporation (NCFC)

  • Long-term business strategy for dealers seeking the highest potential return
  • Multiple owners provide risk sharing and risk distribution
  • Capability to reinsure major product lines
  • Exotic stock structure segregates profits by producer
  • Larger asset-base yields larger investment options

Controlled Foreign Corporation (CFC)

  • Long-term business strategy for dealers seeking more control in directing their investment strategy
  • Offers more control in directing investment strategy but restrictions apply for CFCs seeking 831(b) treatment such as maximum annual premium
  • Dealer is normally a single producer
  • Capability to reinsure major product lines

Dealer Owned Obligor Company

  • A risk model that's best for dealers who desire more control over their investments
  • Provides potential tax deferrals as well as free cash availability above anticipated claims.
  • Insured by Virginia Surety Company in the event DOOC is unable to fulfill its obligations.

Dealer Obligor

  • The ultimate cash-flow vehicle: the dealer can control funds immediately
  • Dealer decides how to use the cash
  • Dealer is responsible for any future claims liability
  • Resource Automotive acts as the administrator
  • Immediate tax consequences
  • Tax due on cash flow, not on profits

Retrospective (Retro)

  • Potential for additional profit with little or no additional risk
  • Admin Obligor (also known as Third-Party Obligor)
  • Program risk completely separate from dealer's balance sheet
  • Potential underwriting revenue
  • Potential investment income
  • Dealer receives a quarterly activity statement
  • Profit distribution is paid annually

Description of tax treatment is based on client feedback and should not be construed as tax advice. Participants should retain competent professional advisors to validate any expected tax treatment.