Reinsurance Models

Choosing the reinsurance model that is right for your dealership

F&I Reinsurance Models Backed by Reputation and Expertise

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 or needs, Assurant Dealer Services has the right reinsurance model for you.

Assurant Dealer Services has it all

Choose your reinsurance 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

Flexible, Customizable Reinsurance Models Based on Evolving Needs

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 Dealer Services doesn’t promote one option over another. Instead, we offer 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.


We’ll help you choose the right participation model to meet your financial goals

Assurant Dealer Services provides a comprehensive participation portfolio

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

We offer:

  • First Extended Dealer Obligor
  • Controlled Foreign Corporation (CFCs)
  • Dealer Owned Obligor Company (DOOCs)
  • Retrospective (Retros) Programs
  • Non-Controlled Foreign Corporation (NCFCs)

We offer 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.


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
  • Non-Controlled Foreign Corporation (NCFC)
  • Controlled Foreign Corporation (CFC)
  • Dealer Owned Obligor Company
  • Dealer Obligor
  • Retrospective (Retro)

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.


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If you're not partnering with your F&I provider to monitor your F&I portfolio, you could be at risk of leaving profits on the table.

  • How are your loss ratios?
  • What's your average earn out per contract after claims? 
  • When was the last time you looked at your administration, obligor, ceding, and claims handling fees? 

With inflation pacing at a rate we haven't seen in decades, check out this blog on maximizing the potential of your reinsurance program.

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