History of National Telcom Corporation An Association Captive

1
History of National Telcom Corporation An
Association Captive
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Introduction

• Review the Association
• Look at the set-up of the captive
• Pros and Cons

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The National Telecommunications Cooperative
Assoc.

• NTCA 1949 part of NRECA created to monitor REA
  loans until 1954 when it was spun off.
• NTCA started with 8 members, total membership
  today is 1,135. Dues revenue of approximately
  4,000,000.
• NTCA is a full-service association, offering a
  government affairs program legal and industry
  representation a broad range of educational
  services regular and special publications and
  public relations programs and a well-rounded
  complement of national and regional meetings.

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What Are the Benefits for an Association?

• An insurance program that protects members and
  offers potential financial incentive to an
  association.
• A risk management product or service.
• Additional sponsorship opportunities.
• Educational programs.
• Another form of visibility.

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What Need Was Being Filled?

• Business risk exposures underwriting was not
  rural telco-specific.
• Coverage and capacity for rural telcos was
  lacking.
• There was no cost control.
• There was no service entity dedicated solely to
  NTCA member needs.

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National Telcom Corporation

• NTCA developed a feasibility study in 1976.
• Licensed and domiciled in Vermont 1982.
• First policy written 1983.
• Telcom Insurance Services Corporation founded in
  1989.

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What was created?

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After More Than Twenty Years Is It Working?

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After More Than Twenty Years Is It Working?

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After More Than Twenty Years Is It Working?

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After More Than Twenty Years Is It Working?

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After More Than Twenty Years Is It Working?

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Achievements

• Rated by A.M. Best.
• Approximately 100,000 of hard and 1,000,000 of
  soft support of the Association annually.
• A full service agency that has developed a DO
  Program and a Bond Market for telecommunications
  companies.

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Future PlansMay Include

• Development of a traditional insurance company.
• Continued reliance upon the TISC agency model.
• Development of new programs with Association
  sponsorship and royalty opportunities.

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Mission Statement We will strive to exemplify
the highest standards of integrity, excellence in
personalized customer service, and leadership in
offering specialized, telecommunications-specific
coverage packages. We will partner with our
fellow members by providing educational programs
designed to assist them in their quest to protect
their corporate assets and provide stability for
the corporate entity through a variety of
insurance risk management programs.Achieving
success in these areas will fulfill the mission
of the NTCA originators and NTC shareholders by.
. . Bettering the World of Commercial Insurance
for Rural Telephony. . . One NTCA Member at a
Time. Contact information www.telcominsgrp.com
or 800-222-4664