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What You Need To Know Before You Start
DealerRE is the administrator dealers can’t live without

Owning a reinsurance company is one of the best ways to build wealth and protect your assets as a dealer today. When we build wealth, the goal is to protect it and ensure that the rules of the game (Government Regulations) are followed to remain compliant. During one of the sessions at the NIADA conference in Las Vegas, experts discussed the key guidelines your reinsurance company should follow to remain compliant with the IRS and keep your wealth building. Here are 5 very important components when choosing a reinsurance administrator.

• When it comes to reinsurance administrators- all are not created equal
Reinsurance is not “set it and forget it”
• Your Reinsurance provider should be a Wealth Creation Partner
• As well as an Expense Containment Partner- someone who works on your behalf
• And, a Resource of information for important business decisions

The set up and onboarding process is key to the success of your reinsurance company. Here are a few questions that should be asked when considering owning your own warranty company (reinsurance) ?

Is there an “arm’s length” transaction so that I am IRS compliant?
Do they provide on-going training?
How easy is it to get in touch with my account manager?

The IRS frowns upon a set-up where the dealer has direct access to the funds because while that money is unearned, it is considered the customer’s money. And, how your reinsurance administrator helps you get started makes all the difference. We hope this gives you knowledge and confidence in how your Reinsurance company should operate to allow you to continue building wealth and remain compliant. If you have more questions on compliance, set-up or just reinsurance in general, please do not hesitate to reach out. We are here to educate dealers and help them maximize their profit and protect their assets.


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