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ILLINOIS CAPTIVE & ALTERNATIVE RISK FUNDING INSURANCE ASSOCIATION
SyndicatesDefinitionThe Illinois Insurance Exchange is a marketplace comprised of investor formed underwriting syndicates, each providing capacity for their own portfolio. The minimum capital required for a syndicate to initiate underwriting on the Exchange is currently $5 million. Each syndicate participates in the Illinois Insurance Exchange Guaranty Fund by depositing $1 million of its capital in a custodial account held to contribute to the insurance obligations of a syndicate declared insolvent. The Exchange is an approved non-admitted entity in forty-two states, with additional authorities on a syndicate-by syndicate basis.Advantages:
Disadvantages:
While the Exchange was promulgated as a Lloyd s-type facility, what has evolved is a group of individual underwriting syndicates, utilizing the authorities earned by the Exchange, to provide capacity in a wide variety of programs or niche underwriting. Most syndicates offer access to their capacity through their captive Exchange Broker membership in order to meet the requirement that all business must be submitted through Exchange Brokers. Therefore, access to each syndicate may be accomplished through these affiliated brokers. As an excess and surplus line facility, the Exchange requires syndicates to work through surplus lines brokers located in the state of domicile of the risk and oftentimes, syndicates arrange exclusive geographical areas for certain surplus line brokers and access is available only through that broker. Back to ICARFIA Home page Send E-Mail to ICARFIA for more information 2003 Contact Information: Chad Kunkel
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