EMS offers various forms of Profit Participation Programs to include the following:
Profit Participation
Retrocessional Profit Participation or Profit Sharing Programs
MS has Retro programs that allow dealers to qualify for a percentage or all of the underwriting profit for a given period based on production. This program does not create any financial risk for the dealer, but it also doesn't provide any relief through tax deferment.
Tire & Wheel
Various Tire & Wheel protection options to choose from all programs include Complete Road Hazard Protection, and others may also include Roadside Assistance and /or Cosmetic Wheel Repair.
“All in one” Bundled Programs
Dealers can choose the number of products to include within their offerings. These programs offer a wide diversity of services which represents a value to many consumers and these programs are great for blanket reinsurance programs as well. The various coverage options include Key Replacement, Tireand Wheel Coverage, Dent & Ding, Headlight Restoration, Roadside Assistance, Theft Deterrent Programs, Towing, Windshield Repair or Replacement Products, Paint Sealant Programs, and/or Fabric and Upholstery Protection Programs.
Paint and Fabric Warranty Programs
Paint Sealant Coverage: This product provides protection from harsh environmental mfactors such as UV Rays, Road Salts, Love Bugs and Acid Rain just to name a few. This chemical is applied by your dealer and includes a repair and replacement warranty against any covered damage occurring on the vehicle’s painted surfaces.
Interior Upholstery Protection: This treatment product is applied by the dealer and provides warranty protection for the interior upholstery of the vehicle against rips, tears, burns, stains, and odors.
Dealer or "Self" Insured Programs
The Dealer insures 100% of any underwriting losses occurring from insured product liability. The dealer owns 100% of any underwriting profits and has complete control over the. investment of reserves and profit. Administrative fees and ceding expenses are minimal. There are no tax benefits under this program. Typically there is an unknown liability present on the balance sheet with this type of formation and can be an obstacle to overcome should the dealer wish to sell the dealership or obtain funding.
Ding & Dent
One of EMS premiere packages for the dealer and customer alike. Dings and Dents are a given and unavoidable, however this coverage will help keep the customer & vehicle looking new for longer period of time. This is a great program offering for lease vehicle customers.
Retrocessional Profit Participation or Profit Sharing Programs
BackEnd has Retro programs that allow dealers to qualify for a percentage or all of the underwriting profit for a given period based on production. This program does not create any financial risk for the dealer, but it also doesn't provide any relief through tax deferment.
EMS offers two types of Reinsurance Programs.
Producer Owned Reinsurance Company (PORC) - This formation allows for the dealer to own 100% of the underwriting profit created by the dealership, as well as, have some direction over the investment of earnings and premium. A PORC creates no liability exposure for the dealer and does offer tax relief through deferred profits. Programs include moderate administrative fees and ceding costs Dealer Owned Warranty Company (DOWC) A dealer owned warranty company is a domestic warranty company owned by the dealer principal, with day-to-day operations handled by an Administrator. The owner(s) control the program branding and select which F&I products are offered in their stores. The dealer has total visibility into all investments and transactions.
Dealer or "Self" Insured Programs
The Dealer insures 100% of any underwriting losses occurring from insured product liability. The dealer owns 100% of any underwriting profits and has complete control over the investment of reserves and profit. Administrative fees and ceding expenses are minimal. There are no tax benefits under this program. Typically there is an unknown liability present on the balance sheet with this type of formation and can be an obstacle to overcome should the dealer wish to sell the dealership or obtain funding.
Note: All Services are also available to Fiduciaries, Finance Companies, Credit Unions, Insurance Providers and Finance Brokerages. We offer Private Label, White Label and Producer Branded programs as well. Ask for Details.
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