PMA is ready to solve all of your risk management challenges. We offer a full range of risk-financing products, from modest risk assumption, full risk transfer or increasing risk assumption. Outlined in this chart are the many risk-financing options offered by PMA. For more information on these options, contact your agent, broker or PMA representative.

PRODUCT	ADVANTAGES	CONSIDERATIONS
Fixed Cost Plans. Premiums are set at a specific dollar amount during the policy period and pay plans are determined based upon mutual needs. Under this option, the insured transfers risk to the insurer who pays all the claims under your program.	Insurer services Predetermined premium financing and budgeting Ease of administration	Low or no cash flow Inability to receive return premiums for favorable loss experience Adjustable premium on auditable exposures
Incurred Loss Retro. The ultimate cost of insurance is determined by the actual incurred loss experience for a specific policy year. The indicated retrospective premium is adjusted annually until all claims are paid and closed. The ultimate cost can be limited on a specific and maximum basis.	Insurer services Stop loss can be provided Favorable loss experience reduces ultimate cost	Low or no cash flow Challenging to budget Final cost not known for several years Adjustment process
Paid Loss Retro. The ultimate cost of insurance is determined using the same retrospective formula as an incurred loss retro. However, premiums are determined utilizing paid loss amounts rather than incurred (reserved) amounts. The program is adjusted annually until all claims are paid and closed. Premium deferral is introduced into the installment plan to provide the opportunity to reduce initial cash outlay to company expenses and an initial loss fund. The deferred premium amount is generally collateralized with a letter of credit. The ultimate cost can be limited on a specific or maximum basis.	Insurer services Stop loss can be provided Favorable loss experience reduces ultimate cost Improved cash flow	Challenging to budget Final cost not known for several years Loss fund may be required Collateral required
Large Deductible Program. Program functions similarly as a paid loss retro. The ultimate cost of insurance is the sum of the company expense (deductible premium), paid losses and loss adjustment expense. Typically, the estimated loss reimbursements are secured by a letter of credit equal to total expected losses; however, other methods of collateral are also available (cash, trust, combination).	Insurer services Favorable loss experience reduces ultimate cost Cash flow advantages greatly improved Reduced expenses	Challenging to budget Final cost not known for several years Loss fund may be required Collateral options include Letters of Credit, Cash and Trust Accounts
Prefunded Deductible Program. Program functions similarly as a traditional large deductible. The key difference is the method of collateralization. The insured is required to remit cash in the amount of the estimated loss reimbursements. This fund is used to secure the estimated liabilities and acts as a "working trust" to cover monthly reimbursements. The amount held is evaluated annually and adjusted according to predetermined development factors at the time of quoting.	Insurer services Favorable loss experience reduces ultimate cost Easier to administer than a Large Deductible Program Upfront discount of expenses to lower net cost	Final cost not known for several years Reduced cash flow benefits Estimated losses prepaid
Rent-a-Captive. Suited for clients interested in the benefits of a captive arrangement, but are considered too small for their own wholly owned captive. Insured "rents" another company's surplus and utilizes that company's captive. Insured purchases insurance policy from carrier. Expenses are deducted, leaving the balance as loss fund dollars. Loss fund is ceded to the captive facility to pay losses on behalf of the insured. Specific and aggregate reinsurance is purchased to further protect the captive. Claims are handled by a TPA. Underwriting profit and investment income are returned via dividend paid through a Preferred Share Series.	Insurer services Greater control of claims Quick entry into captive arrangement Return of underwriting profit and investment income Reduced cost in handling risk Lower capital cost	Risk participation Collateral required Run-Off Tax implications Requires increased Senior Management involvement
Wholly Owned Captive (Client-Owned). Clients that currently own their own captive facility, but are looking for or need a new policy issuing carrier. Client purchases an insurance policy that is re-insured by client's captive facility. Other features the same as rent-a-captive program.	Insurer services Greater control of claims Return of underwriting profit and investment income Support other lines of coverage	Risk participation Collateral required Run-Off Tax implications Capitalization requirements of domicile Requires increased Senior Management involvement