by John Darer® CLU ChFC MSSC RSP CLTC
Berkshire Hathaway unit, National Indemnity Company has re-launched its Periodic Payment Reinsurance Product with several improvements
What is Periodic Payment Reinsurance ( sometimes referred to as a "Reinsurance Structured Settlement")
Perioidic Payment Reinsurance is a useful settlement tool that may be used when an insurance company is paying the claim that is being settled, or dispute resolved. Self-insureds are generally not eligible.
The National Indemnity periodic payment reinsurance product can provide periodic payments as reinsurance of ANY insurance claim.
There is no need to satisfy IRC 130, so there is a solution to a wider universe of active and prospective claims that do not involve physical injury physical sickness or worker's compensation. [the IRC 104 claims that make up most traditional structured settlements]. The possibilities are limited only by the imagination of the underwriters of insurance of any kind.
The National Indemnity Company 3-Party Reinsurance Agreement has the feel of a qualified assignment agreement. It provides for a complete release for the defendant and original insurer and names National Indemnity Company as "Exclusive Obligor".
Every party is left in the same position from a legal and tax perspective as if an assignment had occurred. Of interest to the Chief Financial Officers and claims executives out there, the original insurer can immediately expense the premium and does not need to hold a contingent liability.
A 2-party periodic payment reinsurance agreement is also available where risk sharing is desired and there is no claimant sign off.
The credit risk adjusted expected value of the settlement proceeds counts. The plaintiff gets the direct protection of National Indemnity Company, Berkshire Hathaway's flagship carrier and one of the most well capitalized insurers in the world with over $167 Billion* in statutory surplus (i.e. around 40% of Berkshire Hathaway Inc.'s net worth).
National Indemnity Company is rated A++ by A.M.Best and they LOVE long tail liabilities. So if you are a claims adjuster, claims manager or insurance company executive, let's speak about how we can use periodic payment reinsurance to help resolve some of your serious cases across ALL lines of business.
For more information about structured settlement solutions using periodic payment reinsurance, please call me, John Darer®, toll-free 888-325-8640, or mobile 203-561-6560
- Updated 2020 Source: • Policyholder surplus of leading U.S. reinsurers 2019 | Statista, Published May 28, 2020