The Basic PIC Structure

 

Who Should Consider a PIC?

  • Businesses in an insurance inadequate field
  • Privately held family business (all business types)
  • Highly compensated professionals
  • Revenues over $5 million per year
  • Businesses which are consistently profitable

Who can own the PIC?

  • Individuals
  • Trust(s)/FLP(s)
  • LLC(s)
  • Partnership(s)
  • Corporation(s)

Common business types participating:

Construction, finance, energy, healthcare, retail, transportation, general contracting, professional athletes, and many more...

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

  1. Insured pays premium to Enterprise Risk Strategies
  2. Enterprise Risk Strategies remits premium to ERS Insurance
  3. ERS Insurance issues policies to Insured with $1 million limit per policy
  4. ERS Insurance reinsures to PIC 1st layer of risk (first dollar through a set limit) [A]
  5. ERS Insurance places 2nd layer of risk (total limits net of 1st layer of risk) into reinsurance pool
  6. ERS Insurance cedes risk in reinsurance pool to PIC [B]