TexasCHLforum.com

If I am a company such as [pre-paid legal] or CHLPP or _______, what I would very likely be doing is signing up with Lloyds or a similar re-insurer for a policy that covers my expenses should any of end customers actually use the policy I sold them....

Ex: 2000 of you CHL Forum folks buy my "Legal Insurance" plan for $150. I collect $300K. I have a policy with Lloyds that covers my expenses should any of my 2000 "customers" require coverage under the plan they bought from me. For this insurance I pay Lloyds $200K/year. My profit is $100K less operating costs (office, phone, marketing, etc)

Of course Lloyds costs will change based on the number of policies I sell and the experience/claims I have from my customer over time, but, when I read about this type of "insurance", I assume this is how it works behind the scenes. It's up to the plan ([pre-paid legal] for example) and the re-insurer to work out the detailed coverages and pricing.

I have NO IDEA if this is actually correct.... Just my assumption.

So if I call them and offer them their fee minus $30, what do you think they'll say?... $151 - 30 = $120