Your Rights, Our Duty… and those Others

The dealers we meet have shown us just about all the programs that call themselves “participating,” “dealer-owned” or “reinsurance.” But we have found that these programs do not compare favorably to Portfolio.

Instead of creating a laundry list about what’s wrong with the others, we choose to learn from them what is distinctive about Portfolio. We believe you want to hear how Portfolio does things differently to your benefit.

So here are a few observations about how your 100% ownership, and the rights inherent in that ownership, have guided our policies and practices of reinsurance management. They begin to describe the difference between Portfolio and the others.

Your Money

Portfolio knows it’s your money. Here’s the proof.


Portfolio knows the dealer reinsurance company deserves 100% of the underwriting profits and investment income. Others split the premiums or take part of your investment income.


Portfolio knows that you the dealer should choose the VSC reserve account manager and location so you can maximize investment return. Others attempt to steer the reserve account choice toward their control and financial institution of their choice.


Portfolio knows the premiums are the property of the dealer’s reinsurance company so there is no float. Fundings are made weekly. We recognize the time value of money to you. Others think that they can pay your premiums quarterly or “monthly,” 45 days after the close of the month! They squeeze the time value of your money for themselves.


Portfolio knows that you the dealer can maximize the return on investment and take advantage of business opportunities with properly structured loans from unearned premiums in the reinsurance company. Others do not allow loans except from your current profits, or under more onerous conditions.

More on Loans >


Portfolio knows that you the dealer should make the investment decisions to match your risk tolerance and to maximize investment income. Others do everything they can to keep control of the investments.

More on Investment Control and Performance >


Portfolio cedes the actual cash to the trust account. Others usually just issue a “report” showing your money is “somewhere.”

Mutual Trust

Portfolio believes that mutual trust is the foundation of the relationship. Here’s the proof.


Portfolio knows it is your money and that there is no reason to float claims and cancellation payments or interrupt investments. We encourage you to deduct claims and cancellations from your regular new business remittance. Others pay claims long after the business is remitted.


Portfolio knows that all fees must be fully disclosed from the beginning and that there must be no disguised, hidden or unexpected fees. Others don’t offer this full disclosure, but bury fees and costs in complicated contracts.


Portfolio has no hidden clauses that take the dealer’s funds if he or she decides to go elsewhere. Others penalize you if you decide to make a change.

Dealer Knows Best

Portfolio recognizes that the dealer knows what is best for the dealership. Here’s the proof.


Portfolio encourages you to be involved in critical claims decisions to ensure customer satisfaction. Others believe that this is solely their decision.


Portfolio works with you to customize net rates and F&I plans according to your regional needs to ensure maximum penetrations and profitability for the dealership and the reinsurance company. Others think that they know what rates and plans are best for the dealer.


Portfolio knows that you can best manage claims and that you deserve the majority of the contracts’ repair work. Others allow your customers to go elsewhere for claims repairs.

* Restrictions may apply in some states

Added Value

Portfolio knows that it must bring added value to the partnership with the dealer. Here’s the proof.


Portfolio knows that regular face-to-face meetings with you to review financial results will improve performance and maximize profits. Others believe that they can just send reports in the mail and hide from the dealer.


Portfolio has developed a way for all of a dealer’s aftermarket F&I products to have their premiums paid into the reinsurance company. Others try to keep these very profitable premiums for themselves.


Portfolio knows that you should have confidence in your company’s structure and be protected from legal and tax issues. Portfolio has directly faced the IRS and spent over a million dollars that resulted in two IRS Technical Advice Memoranda (TAMs) that showed our program’s structure and operations met IRS standards.(these are available for review upon request) Others piggyback on our rulings at the risk of jeopardy to the dealer.

More on TAMs >


Portfolio utilizes the best outside legal, investment and tax consultants in the industry. We believe in the flexibility and value of outside advisors, and don’t believe we need them as employees. For example, one of the nation’s largest and most respected automotive dealer CPA firms prepares the reinsurance company tax returns for Portfolio dealers because they keep current on tax laws and deliver accurate and timely value to the process every year. Others rely on in-house personnel to provide tax services and legal advice.