The coronavirus pandemic has affected virtually every facet of American life and severely impacted the markets and economy. Congress and the federal government have acted to help individuals and businesses get through this difficult time. Most recently, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act on March 27, 2020. The… Read More

Making your financial advisor selection is similar in many ways to the way you select any service professional: you want someone who is capable, dependable, and honest. Those traits are all at the core of choosing a financial advisor, as well as some additional considerations. To decide whether someone is worth your trust, your instinct… Read More

Concern remains elevated about the coronavirus behind an epidemic in China and dozens of other countries. The number of people newly diagnosed with the illness caused by the virus appears to be on the decline in the epicenter of Hubei Province, China, though it is still high. International health officials are still worried about growing… Read More

Auto dealers today are using their reinsurance companies to accomplish goals that earlier, less flexible reinsurance models couldn’t help with. Traditionally, dealers only expected reinsurance premiums to cover the costs of warranty claims and cancellations. However, reinsurance administrators now offer reinsurance programs with greater flexibility — not only in terms of what types of financial… Read More

One of the most overlooked — and least understood — aspects of auto dealer reinsurance is the investment policy statement (IPS). It may seem like dry, legalistic fine print, but it’s actually the one document that will most affect how well your reinsurance company meets your needs. And just as it’s important to understand any… Read More

Creating your own reinsurance company involves several players, including your agent, reinsurance program administrator, and financial advisor. The stakes are high and the reinsurance process is somewhat complicated, so it pays to be aware of the common mistakes other dealers make  — and avoid repeating them. Not understanding your investment policy statement (IPS) One of… Read More

In the past, if your vehicle manufacturer ran what is known as a retro account (which some people confuse with actual reinsurance), they paid you a certain amount for each warranty you sold. You received that money as ordinary income, either at the dealership or personal level, and it was taxed accordingly. Essentially, all you… Read More

Automobile dealer reinsurance is a specialized financial product that helps auto dealers fulfill their warranty obligations for vehicle service and powertrain contracts, GAP insurance, tire and wheel protection, and several other finance & insurance (F&I) products. In addition, it allows the dealers to gain greater control over the financial aspects of their business. In essence,… Read More