Boomerang members buy a deductible policy. Available deductibles of $10K or $25K.
Program Coverages • Auto Liability
• Auto Physical Damage • Workers' Compensation • General Liability
A portion, 20-25%, of each participant's premium is allocated to pay for losses above the deductible and up to $150,000.
If there is money left in the bucket, the members share the profit and investment income on a pro rata basis.
Loss Scenario Money Left Over
Four members contribute a total of $400k to be used to pay for all claims in the shared loss layer.
Initial Loss Layer Contributions
Actual Losses
Member 1: $60k
$20K
Member 1: $40k
$110k Positive Surplus
Member 2: $110k
$30K
Member 2: $80k
$60K
Member 3: $80k
Member 3: $20k
Individual Loss Layer Deficit (reduces return)
$20K
Member 4: $150k
Member 4: $170k
$310,000
$400,000
Return Calculation Available to Return Total Positive Shared Layer Balance Individual Shared Layer Balance Pro Rata Return
Total Positive Loss Fund Balance Pooled Loss Deficit Available to Return
$110k $20k $90k
Member 1: Member 2: Member 3: Member 4:
Return of $16.4k Return of $24.5k Return of $49.1k
No return
$90k
Loss Scenario No Money Left
Four members contribute a total of $400k to be used to pay for all claims in the shared loss layer.
Actual Losses
Initial Loss Layer Contributions
However, no one pays more!
Member 1: $90k
Member 1: $60k
Member 2: $90k
Member 2: $110k
Member 3: $40k
105% Loss Ratio in the layer
Member 3: $80k
If the entire fund is used, there is no money left to distribute to the members.
Member 4: $150k
Member 4: $200k
$400,000
$420,000
BENEFITS OF BOOMERANG
Lower upfront premium pay-in due to deductible credit
Alignment of interests with your insurance carrier United with other like- minded members with the same commitment to safety Gia Gerzeny gia.gerzeny@natl.com 800-929-1500 x5112
Cash Flow Savings
Alignment
Potential Lower Cost
Continuous Improvement
Share in underwriting profits & investment income Retain the smaller, more frequent, & more predictable losses
CONTACT US:
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This is a summary of the Boomerang program. Captives involve a risk of loss. Please see the actual Boomerang captive program agreements for full details. Individual results may vary. Coverage is summarized. Refer to the actual policy for a full description of applicable terms, conditions, limits and exclusions. Policies are underwritten by Great American Insurance Company, Great American Assurance Company, Great American Insurance Company of New York, Great American Spirit Insurance Company, National Interstate Insurance Company and Vanliner Insurance Company, authorized insurers in all 50 states and the DC; National Interstate Insurance Company of Hawaii, Inc., an authorized insurer in HI, MI, NJ, and OH; and Triumphe Casualty Company, an authorized insurer in all 50 states and the D.C. except in NY and WY. © 2025 National Interstate Insurance Company, 3250 Interstate Drive, Richfield, OH 44286. All rights reserved. 5802-NIS (03/25)
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