GLOSSARY

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FRONTING/ISSUING COMPANY

FRONTING/ISSUING COMPANY – A fronting company is a commercial insurance company licensed and admitted in the state(s) where a risk to be insured is located.  The captive contracts with the front to issue its policy to the insured(s).  The front then transfers all that risk to the captive and/or reinsurers through a reinsurance agreement known as a fronting agreement. Fronting companies provide various levels of involvement from simply providing the paper for the policies to complete underwriting and issuance.  Of course, their fees vary to match the depth of their services.  The result is insurance policies issued on admitted paper, but with the risk associated with the coverage retained by the captive.

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After experiencing tremendous losses due to a natural disaster uncovered by my commercial carrier, I knew it was time to form a captive and shopped around for a captive manager...we couldn’t be happier that we chose Elevate.

Joe M.

Communication is quick and effective, documents are always organized and available and my questions are always answered efficiently and professionally.

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We chose Elevate because of their reputation in our business community, and their services have exceeded expectations. We trust Elevate.

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I have worked with Jerry Messick and the Elevate Captive team since 2012. They have been instrumental in guiding us properly on how to implement and run a captive successfully. The due diligence and proactive service on the part of the Elevate team is unrivaled. Their product knowledge and how to use the instrument to our benefit, while providing sound risk management and compliance principles is another huge differentiating factor for their firm. In addition, the team of experts that Elevate has referred us to in the legal and financial advisory areas has turned out to be top notch. The Captive is only as good as the entire team. Finally, it has to be mentioned that we “just plain like” Jerry and Co.. Friendly, smart and easy to work with. A real pleasure.

John H.