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Armstrong Group given permission to quote DeKalb County insurance after presentation on captive option
Summary
The Armstrong Group asked to be allowed to quote county insurance and outlined both traditional carrier bids and a captive-insurance model; commissioners approved a motion to allow the firm to provide quotes and requested loss-run and proposal materials.
The Armstrong Group was granted permission to provide quotes for DeKalb County's insurance after the firm's representative described two approaches: soliciting conventional carrier quotes and an alternative "captive" insurance arrangement.
Josh Armstrong, representing the Armstrong Group, introduced Ty Myers as the firm's vice president and said the Auburn-based commercial insurance firm had begun writing local business in September and wanted the opportunity to quote the county's coverage. "I'm not looking to become your agent by you guys signing any contract," Armstrong said. "I'm just giving you guys two options. Option A, normal. Option B, some something new that you're going to start seeing a lot of."
Armstrong explained the captive format as a structure where the owners create their own policy, actuaries set rates, and reinsurance backs part of any losses. He said that in a good year any surplus could be returned to owners and that captives are most commonly used when premiums exceed about $400,000.
Commissioners asked about a past episode in which a letter to Travelers had been signed to allow quoting. A commissioner said one problem was that the previous letter had been signed without permission; Armstrong responded that the letter in question was intended only to permit quoting and that "at no time did Mr. Hartman sign any letter to transfer the rights of agency ownership over to anybody." Participants said they did not object to competitive bids and that allowing another firm to quote would provide more options.
A committee member moved to allow the Armstrong Group to quote the county's insurance and another commissioner seconded the motion. The chair called for ayes and the ayes were voiced with no opposition stated; the motion carried by voice vote. Commissioners asked Armstrong to email loss runs and the information needed for a formal quote.
Next steps: Armstrong will submit the requested documents and prepare an in-depth proposal, including historical claims-versus-premium data, for the commissioners to review.
