FREQUENTLY ASKED QUESTIONS


TABLE OF CONTENTS

What are the benefits of membership in ATTIC?

The benefits of membership in ATTIC are:

  • REMOVAL FROM THE CYCLICAL NATURE OF THE TRADITIONAL INSURANCE MARKET.  Through risk acceptance and risk sharing, each member is able to control its premium cost over a long period of time and is not subject to the cyclical nature of traditional insurance markets.  Each member is committed to a long-term partnering relationship with the other members and agrees to take an active role in loss control and management.
  • INCREASED CONTROL OVER CLAIM MANAGEMENT AND LOSS CONSULTING SERVICES.  ATTIC is a trucking company member-owned organization staffed by trucking industry professionals who work closely with members to control individual claim costs through active claim management.  In addition, ATTIC is very selective in its membership, selecting only trucking companies with safety and loss control programs exceeding the industry average.
  • REDUCED ADMINISTRATIVE COSTS.  ATTIC can reduce the "administrative costs" of traditional insurance companies by up to 50% because ATTIC staff supports only trucking company liability insurance business, has low marketing costs, and pays no commissions to outside sales agents.
  • PREMIUMS BASED ON INDIVIDUAL MEMBER'S OWN LOSS EXPERIENCE.  Through cooperative risk sharing arrangements tailored to each member's needs and actuarial loss experience, each member's premiums can be controlled more closely than with traditional insurance markets.
  • IMPROVED CASH FLOW.  Reserves are held by ATTIC and invested in sound investment markets for the benefit of the members.  In addition, members' losses become expenses only when paid, not when reserved or incurred.
  • COOPERATIVE MEMBER PARTNERING WILL INCREASE MEMBER PERFORMANCE.  Because ATTIC is very selective of its members and only accepts members who meet strict performance and safety compliance standards, each member can benefit from this partnering relationship to learn more about how to improve its business performance.
  • REGULAR LOSS CONTROL PROGRAM AUDITS.  ATTIC provides its members with regular consultation and auditing of their loss control and claims management programs and staff.
  • OTHER BENEFITS.  Other benefits include potential favorable tax implications, networking, and other member insurance programs.

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What is ATTIC's target market?

The target market (ATTIC considers this to be the optimal, but a company not meeting all of the attributes may still be considered) consists of trucking companies with the following attributes:

  • Minimum annual revenues of $30,000,000.
  • Minimum number of power units 250.
  • Minimum annual premium of $500,000 between liability and cargo coverages.
  • DOT Safety Rating as "Satisfactory".
  • Minimum of 4-year loss data available.
  • Maximum of 5% of revenue generated from hazardous materials, logging, high valued cargo, or other specialized exposures.
  • In-House Dedicated Safety Program and Claims Management.

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How are members of ATTIC chosen?

The foundation and ultimate success of ATTIC is the selectivity of its membership which is based on the strength of its Fleet Safety Standards and Rating System ("FSSRS").  The FSSRS will provide a benchmark for trucking companies seeking membership in ATTIC and create a rating system to be used to regularly audit the performance of trucking company members.  The FSSRS will provide a numerical score to safety management controls within a trucking company that will provide a basis for membership qualification and create goals for improvement by member companies.

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How is a member's rate determined?

ATTIC completed an actuarial analysis and financial feasibility study (discussed below) in order to determine manual rates for the charter group members and individual rate indications based on each of the company's five-year loss history.  The rating plan was approved by the Board of Directors and has been submitted and accepted by the State of Montana and the reinsurance market.

Each new member's rates will be determined through an actuarial analysis of the member's five-year loss history.  The loss history data is trended and developed by ATTIC's actuarial firm.  The rating development is designed to establish a premium sufficient to administrate and pay for the member's expected ultimate losses with credits provided for losses expected within a deductible layer and for investment income earned on the premium.

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Is ATTIC "A" rated?

Being a new insurer, ATTIC is not yet rated.  However, ATTIC has transferred the risks of all catastrophic loss potentials to "A" rated reinsurance companies.  ATTIC maintains reinsurance for all losses exceeding $500,000 - $500,000 excess of the first $500,000 (Layer One) and $4,000,000 excess of the first $1,000,000 (Layer Two).  This resinsurance structure and our 10+ year financial strength have allowed our members to meet the insurance requirements of over 10,000 shipping customers world wide.

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Who are ATTIC's Key Support Vendors?

ATTIC has contracted with quality professional support service agencies all with captive insurance and/or trucking insurance backgrounds to manage various components of ATTIC's operations.  Those agencies and their principal duties are:

  • Actuarial Services.  ATTIC contracts with Turner Consulting, Inc. of Atlanta, Georgia to provide actuarial analysis of loss data and financial performance.  George Turner specializes in trucking insurance programs, including individual and group captive entities.
  • AON Benfield of Chicago and London serves as ATTIC's reinsurance broker and consultant.  AON Benfield is the second largest reinsurance intermediary in the industry and is particularly well versed in the reinsurance needs of captive insurance companies.  AON Benfield successfully marketed ATTIC as a new trucking insurance product during a very "hard" low capacity reinsurance market and secured for ATTIC reinsurance treaties from both domestic and London "A" rated reinsurers.
  • Legal Defense Counsel.  ATTIC has approved ninety law firms to represent its insured in trucking accident litigation with at least one firm practicing in each of the lower 48 states.  All defense counsel have at least 10 years in insurance defense and trucking accident litigation and belong to the Transportation Insurance Defense Association or some other trucking defense organization.
  • Investment Managers.  ATTIC currently has over $15 million in invested assets managed by two investment firms.  PEAK Investment Management and D.A. Davidson & Company, both of Missoula, manage investments in full compliance with state requirements returning significant annual investment income.

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