Download Acrobat version of this document. Captive insurance companies offer a unique alternative to traditional relationships with insurance companies.
Policyholders have an opportunity to share risks and enjoy rewards for improved claims experience.
PRI will continue to provide comprehensive services and claims support in the usual and customary manner. Through sharing risk, a physician group's premium, loss results and net cost of insurance will be aligned. In addition, investments of physicians' funds, structured to preserve principal and deliver a competitive rate of return, will be earmarked for their own benefit. Dividends commensurate with performance can be declared and paid on a policyholder by policyholder basis, or alternatively surplus can be reinvested on a tax-advantaged basis. Other opportunities likely will develop, such as purchase tax-advantaged life insurance or annuity products.