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NAMIC Insurance Company, Inc. incorporated November 21, 1986, and commenced operations July 1, 1987, in response to the lack of insurance availability and affordability during the liability crisis of the mid 1980’s.
The company was formed to:
- Provide professional liability coverages (directors & officers liability, insurance company professional liability, and agents errors & omissions) to members of the National Association of Mutual Insurance Companies and their agents.
- Be a stable, long-term market for professional liability insurance products with premiums reflective of the NAMIC members’ exposure and operations.
- Create and manage a reinsurance pool that provides the capacity for adequate limits of liability.
- Encourage loss prevention and provide assurance of high quality service to all policyholders and the members of the reinsurance facility.
NAMICO, an Indiana domiciled stock property and casualty insurance company, is licensed to write all property and casualty lines of business; but is limited by its Articles of Incorporation to professional liability coverages. Shareholder approval is required to enter into other lines of business. In 1997, the shareholders autorized NAMICO to reinsure a fidelity bond program designed exclusively for mutual insurance companies.
The sale of stock closed March 31, 1991. There are currently 694 shareholders. Current per share value of stock as of December 31, 2004 is $165.96.
Coverage Eligibility Requirements
- NAMIC membership is required.
- Become a participant in the NAMIC Reinsurance Facility (if authorized).
- Coverage is subject to underwriting review and acceptance.
Service Carrier Support
- NAMICO is an admitted carrier in IN and KY, and authorized as a surplus lines carrier in IA, IL, KS, MN, MO, ND, NE, OH, PA, SD and WI.
- Since January 1, 1994, Scottsdale Insurance Company became NAMICO’s servicing carrier in all other states.
- Approximately half of the written premium is written on NAMICO paper and half on Scottsdale Insurance Company.
Reinsurance Facility
- Quota share reinsurance arrangements between NAMICO, Scottsdale and members of the reinsurance facility allow the company to offer policy limits up to $5 million.
- Additional limits of liability are placed with highly rated facultative reinsurance carriers.
Agency
NAMIC Insurance Agency is the exclusive agent of NAMICO. In return for insurance placements, NAMIC Insurance Agency received commission from NAMICO.
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