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Assigned
Risk
Servicing
Carriers
Effective
January 1, 2008, the Bureau initiated a bid process and selected four carriers: Liberty Ins Corp (30%), Travelers Indemnity Co (30%), Continental Western Ins Co (20%), and Technology Ins Co (20%) for three years from 1/1/2008 to 12/31/201.
Liberty Mutual
Involuntary Market Operations
PO Box 8090
Wausau, WI 54402-8090
800.653.7893
Travelers
PO Box 3556
Orlando, FL 32802-3556
800.443.4404
Continental Western
Berkley Risk Administrators Company,
LLC
PO Box 59143
Minneapolis, MN 55459-0143
800.449.7707
Technology Insurance Company
AmTrust Group
PO Box 740042
Atlanta, GA 30374-0042
888.239.3909
Servicing Carrier Allowance
The
Servicing Carrier Allowance (SCA) compensates a servicing
carrier for the expenses it incurs in processing residual
market pool business. These expenses include: loss adjustment,
general, other acquisition, taxes and assessments, and contingencies
and return. Producer fees (commissions) are directly paid
by the Pool, and hence, not included in the SCA. SCA's are
generally payable on "collected" premium only.
|
Year
|
Allowance |
|
1/1/1991 |
26.00% |
|
1/1/1992 |
25.00% |
|
1/1/1993 |
24.40% |
|
1/1/1994 |
24.10% |
|
1/1/1995 |
21.40% |
|
1/1/1996 |
21.50% |
|
1/1/1997 |
23.79% |
|
1/1/1998 |
23.79% |
|
4/1/1999 |
27.70% |
|
1/1/2000 |
27.70% |
|
1/1/2001 |
29.41% |
|
1/1/2002 |
25.73% |
|
1/1/2003 |
25.46% |
|
1/1/2004 |
25.61% |
|
1/1/2005 |
24.29% |
1/1/2006 |
24.29% |
1/1/2007 |
24.65% |
1/1/2008 |
23.14% |
The Bureau conducted a bid process to select servicing carriers effective January 1 for the years 2001, 2005, and 2008. Based on the bids, the estimated weighted average SCA beginning in 2008 is 23.14%. However, the ultimate weighted average SCA will vary for each year due to the variable aspect of the policy count and premium volume, as reflected in the table above. The SCA is a combination of a flat policy fee, and a percentage of final net premium collected, based upon policy count and premium volume..
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