We have created the Insured Participation Program to align the interests of the insured with the insurer. Only when these interests are aligned, can the insured truly expect to get the most leverage for their risk financing dollar. The Insured Participation Program is Chesapeake Bay Insurance Company's flagship program, which allows the insured to participate in the profits of the insurance company. In the traditional insurance market, insureds are encouraged to maintain sound risk management and loss control programs in order to keep losses to a minimum. However, in the traditional insurance market, keeping losses to a minimum benefits the insurance company much more than it does the insured. Chesapeake Bay Insurance Company has created this Insured Participation Program to align the interests of the insured with the insurer. Only when these interests are aligned, can the insured truly expect to get the most leverage for their risk financing dollar. The Insured Participation Program works best for coverages in which the insured wishes to finance a portion of the risk themselves, rather than transfer the entire risk to a third party. These coverages can include: Deductible and Retention Buy-Back Exclusion Reimbursement General Liability Workers Compensation And many more… Based on the Operational Risk Analysis M.R. Mead & Company LLC will determine whether Chesapeake Bay Insurance Company is able to underwrite any of the coverages. M.R. Mead & Company LLC will then send the potential insured application forms, and will approach the Underwriting Committee of Chesapeake Bay Insurance Company to seek appropriate coverages. To the extent the business is accepted, M.R. Mead & Company LLC will issue a binder and invoice the insured for the premium. Chesapeake Bay Insurance Company will enter into a profit sharing agreement with the insured. To participate in the program a prospective insured must submit financial statements and currently valued loss runs, along with current rating and premium calculations. Clients entering the program will be expected to meet the following general criteria: Five years of qualified loss experience, or equivalent for new companies Profitable financial condition An “in-place” loss control program or a willingness to install such a program Exposure to loss that is relatively predictable and a manageable risk of catastrophe Acceptable business philosophy and commitment to loss control A loss ratio usually equal to or better than the average of the industry for the insured Copyright © 2006 Chesapeake Bay Insurance Company