|
Governance/Regulation
How is INEX governed?
INEX is governed by the INEX Board of Trustees under the management
of an Executive Committee. The Executive Committee is
comprised of three(3) public trustees. Among other responsibilities, the Board
and the Executive Committee establish the qualifications and requirements
for INEX underwriting participants and INEX brokers.
Financial Strength
How is the financial security of INEX participants regulated?
INEX offers underwriting freedoms not found elsewhere in the states,
but it is regulated much the same as traditional insurance operations-with
some additional built in safeguards.
All participants file financial statements and actuarial certifications
with the Illinois Insurance Department, just as other licensed
insurance companies do. In addition, participants are subject
to reserve and surplus ratio regulations as mandated by the
Board.
All participants also contribute to the INEX
Insurance Exchange Guaranty Fund, a non-statutory guaranty fund maintained
to pay certain claims in the event of syndicate insolvencies.
Operations/Participation
What types of underwriting facilities are best suited for INEX?
Facilities seeking easy, efficient
entry to excess and surplus lines capabilities in a large number of
states are ideal. INEX is also optimal for investors seeking integrated
insurance-financial risk structures that until INEX, could only be transacted
offshore.
What is the criteria for approval as an underwriting participant
on INEX?
Potential participants must have experienced management, documented
business plans, and adequate capitalization. Capitalization requirements
range from a minimum of $30,000 to $15 million for applicants
interested in writing multi-line E and S business consistent with
The NAIC Surplus Lines Model Act. Also, the applications of all
qualified candidates are subject to the approval of the Board
of Trustees and the Executive Committee.
How much does it cost to apply and to participate at INEX?
After a non-refundable $1,500 application fee, listed participants
pay an annual fixed operating assessment fee of $150,000, plus
a percentage of gross premiums written.
In addition, all participants are required to establish a $1 million
custodial account for the INEX Insurance Exchange Guaranty Fund,
a non-statutory guaranty fund maintained to pay certain claims
in the event of syndicate insolvencies. This deposit may be included in
the participant's surplus.
Special assessments may also be levied in extraordinary circumstances
at the discretion of the INEX Board of Trustees.
How do investors become underwriting participants?
Interested investors should complete the Application for Admission
As An Underwriting Participant. The Board typically acts on each
completed application within 30 days.
Can any broker take advantage of INEX?
Yes, any Illinois licensed insurance
broker can place business with INEX.
What is the maximum liability as an underwriting participant at
INEX?
Participants assume liability solely based on the risks they choose
to underwrite. Individual participants are not liable for the
risks of other participants. However, a participant's Guaranty
Fund account is exposed to liability equal to $500,000 per insolvency,
up to a maximum limit of $1 million.
What if I want to stop participating as an underwriting member?
An underwriting participant may cease underwriting and become
an inactive member responsible for payment of the fixed operating
assessment only; or file a petition to withdraw with the INEX
Board of Trustees and pay the appropriate withdrawal fees outlined
in the INEX Regulations.
Does the INEX Guaranty Fund protect only Illinois insureds?
No. The Guaranty Fund protects policyholders in all states in
which INEX has authority to transact business, up to an aggregate
limit of $15 million per one insolvency, $300,000 per claimant
and $10,000 for unearned premium.
What are the competitive advantages to membership on INEX?
|
