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Frequently Asked Questions
Community Transit Re
What is the legal formation of the captive?
CTR is a Transit Insurance Group Incorporated Cell “Group Captive” domiciled in Vermont.
What does Transit Insurance Group do?
TIG provides administrative and captive infrastructure to its independent cells. It also provides an avenue for Public Transit to work among themselves seamlessly to provide the type and limits of insurance required through membership in multiple captive cells.
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Can my current insurance broker be involved?
Yes! Your broker can reach out to us directly and we can work with them to see if this program will be right for you.
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Do I need to be a member of the Risk Purchasing Group Community Transit Insurance Program to participate in the captive?
No! You need to have a stable source of underlying insurance or the ability to hold a $1M self-insured retention. ​
Do I need to perform a procurement to join a captive?
Because the captive is owned by its members, you do not need to perform a procurement. As always, you should check with your legal counsel to determine any specific rules in your state regarding captives.
Who can join the captive?
Your entity must be either a Governmental Public Transit or a Not-for-Profit Transit operation to join.
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Will this program cover my other operations such as a day care or senior center?
No, this program will only cover Auto Liability and General Liability for the transit operations.
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Will I be required to adopt a specific Risk Management Program?
Currently we do not require a specific program, but there will be standards required for hiring, training, driver monitoring and other specific risk management profile items.
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What lines of business will be covered?
Auto Liability and General Liability for Transit operations.
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Will I have my own policy form?
Yes, you will actually be required to have a policy for us to “Reinsure” so we will review your form or can provide a sample document for you.
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Will I have to attend board meetings?
Any member who wishes to run for the Board of Directors is required to attend one board meeting a year in Vermont. All other members will be part of the membership meeting that is a virtual meeting once a year.
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What does my entity have to do to join?
Your board will have to adopt the by-laws and membership agreements for captive and designate your voting member. After that, your membership will be continuous.
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Will you be required to provide a large deposit for capitalization?
No, you will be charged your capitalization as part of your premium each year. In addition to the capital contribution, you will need to hold a Letter of Credit for the Sate of Vermont in the amount o f$300,000. This normally costs around $3,000 a year to purchase form your bank.
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Does Community Transit RE IC need a SAM Number?
No, A SAM registration is required for any entity to bid on and get paid for federal contracts or to receive federal funds. Community Transit RE will be a captive insurance company owned by the public and non-profit members. They will not bid on contracts and do not receive federal funds directly.