R&Q Quest (SAC) Limited (R&Q Quest) is a segregated accounts company registered under the Segregated Accounts Companies Act 2000 in Bermuda. A segregated account is opened for a client's insurance program which stands alone and does not share risk with any other of our programs, thus guaranteeing that underwriting profit is determined solely by its own loss experience. There is no pooling of risks or funds with any of our other rent-a-captive participants. A segregated account has statutory division from every other segregated account so that there is no way that one account can attach to the assets and liabilities of another account.
R&Q Quest offers its rent-a-captive services on an unbundled basis. We provide the rent-a-captive facility in Bermuda, along with the related accounting and reporting requirements only. The client will be responsible for the underwriting, loss control and claims administration, or else have these services contracted with a third party. We are able to facilitate introductions to appropriate third parties to perform these functions if required.
We work with the client to determine a suitable investment program for the funds held in the loss fund and are flexible as to where the funds are invested, provided we are satisfied with the security of such investments.
A Cooperation and Indemnification Agreement is executed between R&Q Quest and the client (or the program sponsor) which summarizes the obligations of each party and provides for the return of any underwriting profits and investment income earned on the program.
R&Q Quest reinsures the Fronting carrier for the portion of the risk the client wishes to retain. R&Q Quest cannot retain any risk in the rent-a-captive facility therefore all risks must be fully collateralized by premium, additional capital contributions or by way of a Letter of Credit.
R&Q Quest has the ability to issue policies direct to an Insured, where allowed by local regulation, which facilitates the use of Deductible Reimbursement Policies.
The funds received would be held in a separate bank or investment account in the name of the Segregated Account (the client can choose the name). Claims would be reimbursed based on requests from the client or their appointed agent.
Profit distributions back to the client would be reviewed on an annual basis after the expiration of the policies for the underwriting year in review, based on an examination of the loss reserves at that time.