Selecting the right insurance agency for your reinsurance program is a crucial decision for buy-here pay-here (BHPH) dealers. Partnering with a reputable insurance agency offers several benefits, but it’s important to carefully evaluate your options to ensure the best fit for your needs.
A reinsurance program is specifically designed for dealerships and businesses offering in-house financing on vehicles or equipment that is purchased or leased. Under this program, you act as the owner of the reinsurance company and work in partnership with a licensed insurance agency that serves as the administrator for your established reinsurance company.
Compliance Accountability for a Reinsurance Program
As the owner of the dealership, you are responsible for ensuring compliance with the legal insurance codes in your state. This is one of the most important reasons to select a reputable and experienced insurance agency for your reinsurance program. The structure of your program must adhere to industry guidelines, and working with the right agency ensures you stay on track.
Some insurance agencies may promise higher returns on insurance premiums, but this can result in higher costs in the long run. It's essential to be cautious when considering such claims. According to the Texas Insurance Code §101.105, violations of regulatory guidelines can lead to fines of up to $25,000 per violation for each day the violation continues. You can review the statute here: Texas Insurance Code §101.105.
The Insurance Carrier
AM Best is the leading authority in the insurance industry for rating the credibility and quality of insurance providers. They have the most comprehensive standards for assessing insurance companies.
When choosing an agency for your reinsurance program, start by looking for one that partners with AM Best A+ rated carriers. This ensures you’re working with a carrier that meets the highest standards of reliability and financial strength. Learn more about AM Best ratings here: AM Best Reinsurance Information.
Service and Experience
Another critical factor in choosing the right insurance agency for your BHPH reinsurance program is the level of service and experience they provide. The agency will work alongside you as the program administrator, handling essential tasks such as claims processing, generating monthly reports, verifying documentation, and managing customer service on behalf of both the policy carrier and your reinsurance company.
To ensure the success of your dealership and the satisfaction of your customers, it’s essential to partner with an agency that offers exceptional service and industry expertise.
Why Choose CP Insurance Associates?
With a solid foundation of experience in the industry, CP Insurance Associates has been helping dealerships like yours for 25+ years. We specialize in structuring BHPH collateral protection reinsurance programs that ensure compliance with regulatory guidelines while delivering top-quality service for you and your customers. Working exclusively with AM Best A+ rated carriers, we provide reliable protection for the collateral in your portfolio.
At CP Insurance Associates, we don’t just provide insurance—we partner with you to ensure your dealership’s long-term success. Our team is dedicated to offering personalized solutions that align with your business goals and operational needs. We work to simplify your reinsurance program and give you peace of mind. Let us help you build a stronger, more secure future for your dealership and your customers.
Ready to take your BHPH reinsurance program to the next level?
Contact us today for a free consultation and discover how CP Insurance Associates can deliver the protection and support your business deserves.
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