The Participant is the party to the transaction that is the primary risk taker. They are generally either the insured company or an individual. In most cases, the Participant will be responsible for expenses and losses that are limited to a specified per occurrence amount, up to a program aggregate. The Participant will be credited with underwriting profits or losses. The Four Points Re Facility is a mechanism that legally enables the Participant to operate under insurance company laws and regulations and therefore take risk on a specific insurance transaction.

The Participant will obtain coverage from an insurance carrier who will issue the appropriate policy or policies. The carrier will have any required licenses to issue policies in the applicable jurisdictions. The carrier will pay all required premium taxes, fees, assessments, etc. The carrier will collect the premiums and cede all or a portion of the risk to the rent-a-captive, Four Points Re SPC, Ltd., after deducting amounts to cover certain program costs and the carrier’s profit.

If the policies issued contain insurance risk that the insured does not wish to bear through its participation in the Program, the risk may be retained by the policy issuing carrier, ceded by the policy issuing carrier to other reinsurers, or retroceded by Four Points Re, SPC, Ltd. to other reinsurers.

This is a contractual agreement between the Participant (the Insured) and the policy issuing carrier. It details the terms and conditions of the insurance coverage and meets any requirements of the applicable jurisdiction.