We work for clients looking to set up their own Captive Insurance Company, by creating their own Protected Cell under Hartwell’s insurance license.
How it works
Create cell
We create Cell Captives in order to take client risk.
Hartwell, using its long experience in the insurance market, will set up the entire Cell from start to finish.
Hartwell issues the policy by and on behalf of the unique cell company.
The client has an insurance policy and knows that all of their premiums pass into a unique cell designated for that specific client.
Run cell
Hartwell via its management company (Strategic Risk Services) runs the cell.
We tend to use Unincorporated Cell structures as these are the least burdensome to the client. The client is the sole cell participant and beneficiary but does not specifically own the cell.
Hartwell continues to advise and run the cell relieving the client of any and all administrative burdens.
All claims are paid out of the cell funds (Premium which is deposited into the Claim Account).
The client can pay in as much or as little premium as they choose but the cell must be sensibly funded for it to be of benefit.
All Profits are kept within the cell unless the client wishes to release them via a Profit Commission.
Upon winding up of the cell – handled by Hartwell – profits are distributed back to the client.
Profits
All Profits are kept within the cell unless the client wishes to release them via a Profit Commission.
Upon winding up of the cell – handled by Hartwell – profits are distributed back to the client.
Timelines and Processes
1. Discussion
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Initial discussion between Client/Broker and Hartwell
2. Information
Underwriting information presented to Hartwell including:
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Expiring insurance policy
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Exposure information (eg. Schedule of Values)
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Loss History (5 years if possible)
3. Indication
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Hartwell indication given within 24 hours
4. Firm Order
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Client issues “Firm Order”
5. Cell Application
Hartwell drafts and completes documentation for Cell Application including:
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TN Department of Insurance Cell Application Form
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Cell Participation Agreement
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Business Plan
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Cell Agreement
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Insurance Policy
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Third Party Administration Agreement
6. DOI Approval
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DOI authorises Protected Cell
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Cell now active
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Agreements signed
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Bank Accounts created
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Policy issued