Assumptions:
- ERS Insurance is a Utah PIC insurance company
- Premium is $1 million
- Policies - $1 million limit per policy
- Enterprise Risk Strategies is the PIC Manager for both ERS Insurance and PIC
How it works
- Insured pays premium to Enterprise Risk Strategies
- Enterprise Risk Strategies remits premium to ERS Insurance
- ERS Insurance issues policy to Insured with $1 million limits
- ERS Insurance reinsures to PIC 1st layer of risk (first dollar through a set limit) [A]
- ERS Insurance places 2nd layer of risk (total limits net of 1st layer of risk) into reinsurance pool
- ERS Insurance cedes risk in reinsurance pool to PIC [B]