Governance & Partners
Parties & Roles
In this sectionParties & Roles
Each party’s role in the program is defined below.
| Party | Role |
|---|---|
| Customer (Member) | Pays premium and the initial Independent Account equity contribution. Receives coverage under the issued policy, claim reimbursements according to the loss payment order, and later distributions of underwriting residual and surplus. |
| Retail Broker | Represents the customer in placement and ongoing service, coordinates information between the member and the program, and assists with renewals and claims communication as needed. |
| Bearing Risk | Program sponsor and technology platform. Contributes the initial seed capital that anchors the Group Account in the early years. Maintains the distribution front-end through which members and brokers apply and onboard via https://bearingrisk.com (Captive Simple API). Sources and maintains each customer relationship and supports orderly exit when a firm elects to leave. |
| Captive Manager | Acts as manager of the program. Performs underwriting, premium recommendations, accounting, regulatory filings, and day-to-day program operations in accordance with the guidelines of the Tennessee domicile and the program’s participation documents. |
| Policy Issuer | Issues the official licensed, admitted policy and is the primary party that pays claims to third parties. Typically an A-rated carrier. Working with the Policy Issuer enables Ballast Mutual to support coverage in all 50 U.S. states while remaining domiciled in Tennessee. |
| Claims Handler | Handles day-to-day claims adjustment and investigation on behalf of the Policy Issuer. Members retain transparency and an advisory role on defense and settlement strategy for claims affecting their Independent Account. |
| Ballast Mutual | The member-owned insurance company that holds risk in the Independent Accounts and the Group Account, and that is the vehicle through which members share in underwriting residual and surplus over time. |
| Reinsurance (i.e. backup insurance) | External protection purchased to respond after the Group Account’s share of a loss has been used. It is designed to protect the program from catastrophic severity and to support the long-term financial health of Ballast Mutual. |
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