Frequently Asked Questions
(click here to download a PDF version)1. Why the “News Release”
US Rail has just completed its partnership arrangement with a nationally recognized AM Best “A” Rated and Admitted Carrier, National Interstate. (www.nationalinterstate.com)
2. Why National Interstate?
• Licensed in every State
• 20 year transportation experience
• Admitted in every State—Participates in each state’s Guarantee Fund
• Commercial Auto now available to Liability Policy holders3. What is “so new” about this New Program?
• First Railroad Owned and Managed Speciality Insurance Company in the US.
• Reducing SIR for every claim–free year
• Ownership in the US Rail Insurance Company, Inc. as the reinsurer with every policy
• Flexible policy terms
• Quick turnaround pricing with completed application
• Dividends available to every policyholder
• Policies Issued on National Interstate Paper beginning 10/1/09
4. What is “US Rail Insurance Company, Inc. RRG”
and what does “RRG” mean?
• USRI (www.usrailinsurance.com) is a Specialty Insurance Company formed specifically for Railroads and railroad related industries.
• USRI is owned by each policyholder– a 1st for the Shortline Railroad History
• USRI is regulated by the State of Vermont as a Risk Retention Group (RRG)
• RRG (Risk Retention Group) is simply one insurance company formed as a “stock” insurance company in one state, but treated as Admitted in your state under the Risk Retention Act of 1985.
5. Will the addition of National Interstate change our RRG benefits?
• No, plus with National Interstate (www.nationalinterstate.com) issuing the policies and US Rail becoming a reinsurer, all policies will carry an A.M. Best “A” Rating.
• “A Rated” is one of several “rating levels” established following a review by an independent firm A.M. Best (www.ambest.com) “Assigned to insurers which meet our (A.M. BEST) standards for the quantitative and qualitative analysis of the company’s financial condition and operating performance.”
• USRI, even as a reinsurer, maintains the State of Vermont’s Insurance Departments regulations and continues to assure that all insurance is for railroads and railroad industries alone– unlike most “other” typical stock or mutual insurance companies which insure all matter and forms of insurance for all kinds of industries.
• All financial information, equity and authority still rests with the USRI Board of Directors and its stockholders (policyholders). All benefits remain as well as the security of National Interstate with its extensive Loss Control and alternative risk experience.
6. Do I have to pay any “extra” fees or assessment?• No, because USRI is treated as an Admitted Insurance Carrier in your state, you do not have to pay any “Surplus Lines Taxes or Fees” saving you 2-5% immediately.
• No assessments or extra charges will be charged to any policyholder or Class B stockholder (Policyholders).
7. What if the insurance company has greater losses than anticipated, do I have to pay?
• No, National Interstate and the reinsurers take that risk alone.
8. What about this “investment” and capital stock? How do I get this back?
• Every policyholder must be a stockholder
• The insurance company will buy your stock back, plus any declared dividends.
• 20% of the first year premium only will be assigned to “Capital Stock” …that is YOUR money for YOUR stock in US RAIL INSURANCE COMPANY, INC.—a reinsurer.
9. Can I use my current Agent or Broker?
• Of course! USI must however fully explain the structure and obtain copies of various documents… all copies will be provided your agent as well. USI will help your agent by
completing all the related information directly from you and providing him/her with copies.
• Issuing policies on National Interstate paper, will mean your agents no longer have to be specially licensed.10. What about Claims?
• Yes! Claims are the reason you buy insurance, all claims will be handled by familiar Railroad professionals, but under the direction and control of USRI, National Interstate and United Rail Claim Service, Inc.
• No mandatory contract or fees will be assessed or requirements to use a specific claim service. USI will oversee the management of all claims handling with one call from you. You will have access to your claim data via the Internet as soon as the file is established.11. Is USRI a “legitimate” Insurance Company?
• Absolutely! USRI is closely monitored for its financial security through the State of Vermont, Bureau of Insurance and you may call its Manager, USA Risk, Inc. (www.usarisk.com) at any time to verify its status. It was duly licensed in April of 2007 by the State of Vermont and all the remaining states shortly thereafter. As a policyholder and stockholder, you have immediate access to any financial information or legal status at any time.
12. Is it “endorsed” by the American Shortline and Regional Railroad Association or any
other Association?• No it is not, USRI has not requested an endorsement and the ASLRRA does not in normal course offer such endorsements. USRI wishes to remain independent of any influences and instead wants you and your fellow policyholders to focus on the safe operations and individual
railroad merits for coverage.
• You are asked, however, to join either your local association or the ASLRRA to avail yourself of the latest safety, technological, financial, and political knowledge affecting our
industry.
13. I have “heard” that FELA can’t be covered in a Risk Retention Group Insurance Company— Is that true?
• Absolutely not! Federal Employers Liability Act coverage is rightfully treated as a Liability Cover, and approved for and included in the coverage provided by USI and US Rail Insurance Company!
14. I have “heard” that the U.S. Rail Program is only $250,000 limit— is that true?
• Absolutely Not! USI Program through National Interstate & US Rail provides limits to $25,000,000 reinsured with A–Rated Reinsurers!
USI brings the US Shortline and Regional Railroad Industry, not just a “new program”, but an entirely “NEW TRAIN OF THOUGHT”
8265 N. Van Dyke | Port Austin, MI 48467 | Phone: (989) 738-6400 | (800) 247-2085 | Fax: (989) 738-6557
© 2007 United Shortline Insurance Services Inc. All rights reserved.
