How Much Money are You Leaving on the Table?

    • Do I have to reinsure my product sales?

    • A.

      No, you do not have to reinsure your product sales. Dealers who do not reinsure product sales will be required to report their product sale revenue as part of their operating profit and loss. Conversely, these Dealers can deduct claims paid in future tax years.

    • Q. Why should I reinsure?

    • A.

      Many Dealers are not fond of the typical income treatment of product sales when not reinsuring. These Dealers will typically form a reinsurance company so that their product sales can be taxed on an earned basis.

    • Q. Do DOWC contracts carry insurance?

    • A.

      Dealers can opt for an insured or a self-insured model. Typically administration fees are lower in the self-insured model because of the cost associated with third party contract liability policies. This decision is usually statutory by nature, as certain states require contracts to be insured while others do not.

    • Q. Are DOWC contracts legal to sell in my state?

    • A.

      DOWC® contracts are 50-state compliant. We partner with the two largest product administrative attorneys to provide Dealers with statutory and regulatory requirements, ensuring that all state-specific criteria are met.

    • Q. Can I really access my unearned premium dollars?

    • A. The simple answer is “yes.”