Merge members buy a deductible policy. Available Deductibles of $5K, $10K, & $25K.
Program Coverages • Auto Liability*
• Auto Physical Damage* • Workers' Compensation • Cargo / WLL* • General Liability
*Losses are basketed on these lines; Basket deductible feature available on deductibles of $10k+.
A portion of each participant’s premium is allocated to pay for losses in the $90K shared loss layer.
If there is money left in the bucket, the members share the profit and investment income on a pro rata basis.
*If losses exceed premium allocated to the layer, Vanliner assumes the risk.
Loss Scenario Money Left Over
Four members contribute a total of $200k to be used to pay for all claims in the shared loss layer.
Initial Loss Layer Contributions
Actual Losses
Member 1 - $30k
$15K
Member 1 - $15k
$60k Positive Surplus
Member 2 - $50k
$20K
Member 2 - $30k
$25K
Member 3 - $45k
Member 3 - $20k
Individual Loss Layer Deficit (reduces return)
$10K
Member 4 - $75k
Member 4 - $85k
$150,000
$200,000
Return Calculation Available to Return Total Positive Loss Fund Balance Individual Loss Fund Balance Pro Rata Return
Member 1 – Return of Member 2 – Return of Member 3 – Return of Member 4 – No return Total Positive Loss Fund Balance − Pooled Loss Deficit − Available to Return −
$60k $10k $50k
$12.5k $16.7k $20.8k
$50k
Loss Scenario No Money Left
Actual Losses
Initial Loss Layer Contributions
However, no one pays more!
Member 1 - $45k
Member 1 - $30k
Member 2 - $40k
Member 2 - $50k
Member 3 - $50k
110% Loss Ratio in the layer
Member 3 - $45k
If the entire fund is used by one or more members, there is no money left to distribute.
Member 4 - $75k
Member 4 - $85k
$200,000
$220,000
BENEFITS OF MERGE
Lower upfront premium pay-in due to deductible credit
Cash Flow Savings
Alignment of interests with insurance carrier
Alignment
United with other best-in-class Moving & Storage operators
Share in underwriting profits & investment income
Potential Lower Cost
Continuous Improvement
Retain the smaller, more frequent, & more predictable losses
Control
This is a summary of the Merge program. Captives involve a risk of loss. Please see the actual Merge 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 Vanliner Insurance Company, an authorized insurer in all 50 states and the D.C. © 2024 Vanliner Insurance Company, 3250 Interstate Drive, Richfield, OH 44286. All rights reserved. 5612-VNL (06/24)
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