Non-Rated Captive Insurer Clause Samples

Non-Rated Captive Insurer. The loan documents provide that terrorism coverage may be written by a non-rated captive insurer, subject to certain conditions, including the requirement that certain covered losses not reinsured by the federal government under TRIPRA and paid to the captive insurance company (other than covered losses caused by nuclear, biological, chemical or radiological acts of terrorism) shall be reinsured with a cut-through endorsement by an insurance company which shall be rated at least S&P “A” and ▇▇▇▇▇’▇ “A2”. At loan origination, a stand-alone terrorism insurance policy with Underwriter Lloyds, having an S&P “A+” and a Best’s “A:XV” rating, was in-place.