A third example of program administration is that of an underwriting manager that takes on a program that covers similar types of risks. Media Professional was organized in 1979, and first offered a media liability program accessible by agents and brokers countrywide. The firm uses two companies to back their programs. It employs underwriting criteria to accept business as directed by the reinsurance treaty or as delegated by the insurer. The submitting agent or broker must be licensed to do business in the insured's or applicant's state, and must conform to state regulations about submitting and binding admitted and nonadmitted business.
Stable reinsurance is behind the program and claims are handled in house.
No class is the same as any others. Each submission is reviewed individually. They have limited their failures because they have maintained their underwriting focus. An advantage of the program administrator as a single line class of business is that it brings expertise and experience dedicated to that particular niche. For many other insurance company competitors, these classes are only small parts of the overall business.