USA Risk Group Introduces “GapAssist”TM, Eliminating The Need To Fully Fund Letters Of Credit For Gap Collateralization

Saint Thomas, Virgin Islands - November 5, 2004 USA Risk Group of the Virgin Islands (USVI) has just launched GapAssistTM. GapAssist TM eliminates the need to fully fund letters of credit for Gap collateralization in alternative risk transfer insurance transactions. GapAssist TM achieves this by integrating proprietary insurance underwriting and credit risk management techniques.

Insurance carriers have needed fully funded letters of credit for Gap collateralization to offset the statutory accounting charges associated with offering alternative risk transfer products to captives. This has forced captives to deposit cash equal to the full amount of the letters of credit with the issuing banks. These letters of credit have remained in force for years after the respective policies expiration dates, resulting in the pyramiding of letters of credit as each new year’s policy requires another letter of credit. As a result many captives now have a considerable amount of their working capital tied up in bank deposits to support these letters of credit.

GapAssist TM initially targets gap collateralization related to workers compensation insurance policies and for up to US$1,000,000. In this way, GapAssist TM allows companies with effective workers compensation loss control programs to enter into alternative risk transfer insurance transactions without having precious working capital idle.

USA Risk Group of the Virgin Islands (USVI) is a member company of USA Risk Group. USA Risk Group is one of the most innovative solutions provider in the alternative risk market. USA Risk Group enjoys a unique and comprehensive perspective based on its diverse presence in the on- and off-shore captive markets. Its perspective is free of conflicts of interest since USA Risk Group does not have a parent company looking to protect underwriting or brokerage revenues.

CONTACT INFORMATION:
Adam Forstot & Sheniqua Rouse
Tel: (340) 774-6688
Fax: (340) 774-6643