Charter Partners Performance Policy

As a respected member, partner, or risk expert of the Charter Partners community insurance program, I understand the importance of adhering to the Performance Policy and agree to uphold equal standards across the captive for all current and future members and partners.

Performance Policy

Should members experience any of the following incidents, they may be subject to a Performance Review Committee examination.

Incident

1. A loss ratio exceeding 40% within one year. 

a.     With consideration to a catastrophic event that exceeds the member’s seeded financial contribution to the captive.

2. Over two (2) at-fault incidents similar in nature that have not been addressed with improved safety practices and implementation.
   
   

3. A Captive Risk Assessment score below 85% without an identifiable plan for improvement and implementation.
   
   

4. An unfavorable frequency trend within a quarter that would expose the program to adverse impact.
   
   

5. Any combination of catastrophic claim and or frequency issues as noted above

Process

If any of the above incidents have been identified by a member or partner of the Charter Partners community, the following steps will take place:

1. Risk Management will identify trends/frequency and claims that will generate a notice of performance to the member with a copy to the ambassador/broker.
   
   

2. Member will have an opportunity to invite CP Risk Management to an on-site Risk Assessment/ Training within 21 days of notice.
   
   

3. If member opts not to participate voluntarily, a request for a Performance Review by the members’ pod committee will be submitted to/by CP and the appropriate ambassador.
   
   

4. Charter Partners will arrange a committee consisting of: 

   1. The broker/ambassador

   2. Both board representatives of the member’s pod

   3. The assigned risk manager

   4. A CP representative
      
      

5. Should more than 40% of committee attendees agree that a violation has occurred after a full review of the incident: 

   1. The committee will determine and agree upon the appropriate action and standard for resolution.

   2. The member will receive an on-site visit and Incident Assessment determined by the Risk Inspection Policy.
      
      

6. The member will take responsibility for resolving the performance violation by: 

   1. Submitting risk and safety improvements directly addressing the incident to the appropriate risk manager.

   2. Receive a secondary on-site visit within 6 months to 1 year.
      
      

7. The assigned risk manager will assess whether the member has adequately met the resolution standards and submit the assessment to the review committee.
   
   

8. Should the member 1) not meet the adequate standards for resolution within 6 months – 1 year or 2) experience a 2nd year with a loss ratio exceeding 40% loss ratio (with consideration to a catastrophic event that exceeds the member’s seeded financial contribution to the captive), the assessment will be brought to the next scheduled board meeting to determine which action is appropriate: 
   
   

   1. Continued and/or enhanced monitoring by the appropriate risk manager.

   2. Removal from the Charter Partners Captive insurance program.
      
      

9. Either action will be determined by a vote by eligible members of the Board of Directors, with removal from the captive requiring: 
   
   

   1. 100% approval by all voting members and;

   2. Consideration from advisors.
      
      
      Revised April 2024