Dealer Reinsuranceby Elite FI Partners
Contract breakdown

Look inside each reinsurance contract.

Every contract has a story behind the premium.

The amount collected is not automatically dealer profit. This tool helps visualize where the money may go before any underwriting result develops.

Remaining for reserve participation: $252, 21% of premium.
The premium a customer pays for one contract. Must be greater than $0.
Illustrated flat administration cost for one contract.
4%
0%15%
Slide to set the share of premium retained for risk transfer.
Illustrated flat Clip cost per contract.
Illustrated flat roadside assistance cost per contract.
Illustrated flat agency commission per contract.
50%
0%100%
Slide to set the share of premium expected to be used for claims.

Starting values are an editable example, not industry averages. Change any field to see the allocation update.

Contract allocation overview

The share of the total contract premium.

Allocation of the $1,200 contract premium: Ceding fee $48 (4%), Administration $150 (13%), Clip $25 (2%), Roadside assistance $25 (2%), Agency commission $100 (8%), Expected claims $600 (50%), Remaining for reserve participation $252 (21%).Ceding fee: $48, 4% of contract premiumAdministration: $150, 13% of contract premiumClip: $25, 2% of contract premiumRoadside assistance: $25, 2% of contract premiumAgency commission: $100, 8% of contract premiumExpected claims: $600, 50% of contract premiumRemaining for reserve participation: $252, 21% of contract premium

Follow the premium

A flow-of-money view from the premium collected to the amount remaining for reserve participation.

$0$1,200 premium
Ceding fee
Risk transfer, insurance support, and applicable compliance costs
4%
$48
Administration
Contract processing, claims administration, technology, and reporting
13%
$150
Clip
Illustrated Clip cost included in the contract
2%
$25
Roadside assistance
Illustrated roadside assistance cost included in the contract
2%
$25
Agency commission
Commission paid to the agency on the contract
8%
$100
Expected claims
The estimated cost of providing the coverage purchased by customers
50%
$600
Remaining for reserve participation
The amount remaining after the illustrated fees and expected claims. This may support reserves, underwriting results, and investment activity depending on the program.
21%
$252

Enter sample contract economics to see how a single product premium may be divided among administration, ceding, and other program costs, expected claims, and the amount remaining to support the dealer’s reinsurance reserve. This is an educational illustration of what may be happening behind each contract; actual fees, claims, reserve requirements, and accounting methods vary by program, and nothing is sent anywhere.

What this contract illustration shows

Of the $1,200 product premium entered, $348 is allocated to the illustrated program fees, $600 is assigned to expected claims, and $252 remains for reserve participation. That remaining amount may still be subject to actual claims development, cancellations, reserve requirements, taxes, professional expenses, and other program-specific costs. It is not automatically profit or distributable cash.

Fees affect every contract

Small per-contract differences can become significant across hundreds or thousands of contracts.

Claims provide customer value

Claims are not simply a cost to avoid. They represent the protection the customer purchased.

The remaining amount still carries obligations

Reserve participation does not mean the money is immediately earned, available, or distributable.

Claims are shown as a cost because they are paid out, but they represent the coverage your customer bought, which is a good thing. The amount remaining after fees and claims is what may support the reserve you participate in over time; it is not a guaranteed or immediately distributable result. This tool is educational and is not tax, legal, or accounting advice, and it does not estimate returns.

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