- The “standard” book consists of the higher limits purchased by most motorists ($50/$100, $100/$300, $250/$500). Because this book is relatively small and the loss experience is good, Green Light has appetite to retain a significant but fixed portion of any claim. Recommend a reinsurance program, by type and limits, that would help Green Light meet its objective.

 

Recommend a reinsurance program, by type and limits, for the workers compensation plan for insurance.

 

Recommend a reinsurance program, by type and limits, for the BOP plan for insurance.

 

Green Light Insurance company (Green Light) is a small writer of personal and commercial auto insurance policies. Green Light is based in Miami-Dade County FL, and began business in 2015. Being a relatively new company, maintaining policyholder surplus is an ongoing concern. Green Light has a somewhat eclectic business mix that consists primarily of minimum-limit personal auto policies, known in the industry as "non-standard" auto. Green Light also has some small "standard" personal auto policyholders and a commercial auto book comprised of taxicabs and limousines. The company wants to grow in both lines of business and geographic presence, beginning in Florida, eventually to Georgia. Green Light is developing plans to expand with these policies: Umbrella to selected commercial and personal auto insureds, conditioned on these accounts having at least $250,000 per person/$500,000 aggregate/$100,000 property damage limits. Workers' compensation for the taxicab and limousine businesses. Ride-share policies for Uber and Lyft drivers Business Owners Policy ("BOP") aimed at restaurants, nail salons, and gyms and fitness centers. A package policy of business auto and CGL for food trucks (expected CGL limit of $500,000 per occurrence, $500,000 aggregate with products/completed operations.