Global Home USA Rev G3 Global Home USA Creating Benefits as Owning Your Own Home Warranty Company Global Home USA Simplicity Comple by jsm40037

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									         Global Home USA




Rev G3
Global Home USA

  Creating Benefits as Owning Your Own
        Home Warranty Company
Global Home USA

                Simplicity


           Complete Turn-key
                 Solution

   Creating a Profit Center that Didn’t
               Exist Before
Global Home USA
                    Opportunity


 Through the ownership of stock shares in your own
              Reinsurance Company,

   you become a home warranty producer which can
realize ALL the insurance profits of your own business.
  Global Home USA
              Evolution of the Product Concept

Since the early 60’s, institutions have participated
in the underwriting profits and investment income
             of insurance premiums.

Credit Insurance has evolved to Auto Warranties
 which is now expanding to Home Warranties.

Today, we have the Home Warranty product that
  can yield the same profits as what automobile
dealers and financial institutions have been doing
                 for over 40 years.
  Global Home USA

Today, you can invest in a Reinsurance Company

       That is FULLY reinsured for all of the business produced.

       That will realize all of the profits for YOU.

       With NO liability over and above the initial investment.
Global Home USA
Old Republic Home Warranty Plan



Home Protection Plan by Aon
             Current Products
Home Warranty of American



American Home Shield
Product Similarities
 Heating System
 Air Conditioning &
 Ductwork                     Garage Door Opener

 Internal Plumbing System     Central Vacuum System

 Internal Electrical System   Ceiling and Attic Fans

 Dishwasher                   Telephone Wiring

 Refrigerator                 Burglar & Fire Alarm

 Range/Oven                   Washer / Dryer Package

 Built-in Microwave           Swimming Pool

 Garbage Disposal             Spa                        Standard
 Water Heater                 Ice Maker
                                                            and
 Trash Compactor              Freezer – Stand alone

 Exhaust Fans
                                                         Optional
 Septic System                                         Coverage Plans
    Global Home USA


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                                                                                       S
differences are   Stoppages                   std           not cov         std          std               optional     std
      listed      Heat Pumps                  std             std           std        not cov               std        std
                  Septic System               std           not cov      buyer only      std               optional     std
                  Ceiling & Attic Fans        std           not cov       optional       std                 std        std

                  Product Comparisons
                  Water Well System
                  Faucets & Fixtures
                  Shower Heads
                                              std
                                              std
                                              std
                                                            not cov
                                                            not cov
                                                            not cov
                                                                          optional
                                                                          not cov
                                                                          not cov
                                                                                       optional
                                                                                         std
                                                                                         std
                                                                                                           optional buyer only
                                                                                                           optional
                                                                                                           optional
                                                                                                                        std
                                                                                                                        std
                  Trip Levers                 std           not cov       not cov        std               optional     std
                  Humidifier                  std           not cov       not cov      not cov             not cov      std
                  Electonic Air Filter        std           not cov       not cov      not cov             not cov    optional
                  Water Storage Tank          std           not cov       not cov      not cov             not cov      std
                  Water Softener              std           not cov       not cov      not cov             not cov    optional
                  Sewage Ejector Pumps        std           not cov       not cov      not cov             optional buyer only
       .          Whirlpool Jets              std             std           std          std               not cov    optional
                  Lighting Fixtures           std           not cov       not cov      not cov             not cov      std
                  Spa                       optional        optional      optional     optional            optional   optional
                  Swimming Pool             optional        optional      optional     optional            optional   optional
                  Garage Door Opener        optional        optional      optional     optional            optional     std
                  Washer & Dryer            optional        optional      optional     optional            optional buyer only
                  Central Vacuum System     optional        optional      optional     not cov               std      optional
                  Doorbells                 optional        optional      optional     not cov             optional   optional
                  Freezer - Stand alone     optional        optional      optional     not cov             not cov    not cov
                                                                                                                                  Based upon the policy
                  Ice Maker                 optional        optional      optional     not cov             not cov    not cov
                                                                                                                                   date noted. Copy
                  Telephone Wiring          not cov         not cov       optional     not cov               std      not cov    available upon request.
                                                                            Oct-00         Aug-02           Apr-03      Apr-02
Global Home USA

      Understanding Who We Are
Global Home USA
           Partners
 Global Home USA

             Doug Keys, CEO
             Jim Smith, CEO
          Founder of SouthwestRe
      Founder of Warranty Global Group

   Two decades Insurance Industry warranty
A member of theof experience in the Task Force
   business which and consultant on insurance
 Frequent speaker includes forming the fourth
  largest reinsured auto warranty company, 1st
   alternatives available in today’s regulatory
       Automotive Warranty, in the country.
                     climate.
Global Home USA


   Our Services
                   Claims Administration
                  Insurance Administration
                  Program Administration
Global Home USA

                    Facilities



 Service Delivery                Customer Service


                  Claims
                Adjudication
Global Home USA

 Approx 60,000 sq ft of dedicated space
 Over 150 Employees
 Innovative and cutting edge technology
 Disaster recovery

                                          Facilities
   Global Home USA

The Call Center is open 24/7/364 to meet your
customers’ needs
VoiP Technology
Certified trained Agents with 7 yr avg experience
Over 500,000 calls answered annually
Over 150,000 claims processed annually
90 second average speed of answer                   Customer Service
Less than 5% abandon rate
Multi-lingual capabilities
Phone, email, and internet capabilities
  Global Home USA
The claims audit process includes thorough
review of claims from entitlement, dispatch,
adjudication, and authorization for payment

Automated processes expedite payments to
Service Contractors

All escalations are resolved within 48 hours by
specialized, trained personnel                      Claims
Quality Assurance in place to maintain highest    Adjudication
levels of service
  Global Home USA
TeleMatrix utilizes a mixture of national,
regional, and independent service technicians
Network of service technicians in all 50 States
Negotiate contractual agreements with fixed
rates based on geographic location
Service providers are monitored and ranked
100% of all claims are scheduled with in 4        Service Delivery
business hours
90% of all claims are completed within 96
business hours
Global Home USA


   Our Services
                  Claims Administration
                  Insurance Administration

                  Program Administration
Global Home USA

               Industry Expertise


   Financial
                               Reinsurance
   Analysis


           Company Formation
 Global Home USA

             Colin Holder CEO
       Offering a full Management Svcs.
      Caribbean Insurance spectrum of
administrative services to ensure that
  Previously served as the Superintendent for the
      your company is formed and
Turks & Caicos Islands Department of Insurance for
                     7 safest and most
   managed in theyears
  stable reinsurance program in the
                 Terry Merriam
  country in order to generate profits
       Industry consultant for SouthwestRe
Former prosecuting attorney for the IRS regarding    Industry
            the reinsurance industry
                                                     Expertise
               Kirk Borchardt P.C.
           CEO Dealers Assurance Co.
          Professional Law Corporation
     Outside legal council and an expert in the
               reinsurance industry
  Global Home USA

Reinsure all your warranty claims through
the fully owned subsidiary, DAC Insurance

DAC has maintained an "A-" (excellent)
casualty insurance company rating with A.M.
Best since 1985

Because of the partnership with DAC, we
provide responsive, unique, secure and         Reinsurance
profitable solutions that are backed by an
established, credible insurance organization
  Global Home USA

SouthwestRe provides a full spectrum of
administrative services to ensure that your
insurance company is formed and managed
in the safest and most stable reinsurance
program in the country in order to generate
profits.
They currently manage over 800 Producer-
Owned Reinsurance and insurance               Company
companies with management of over $250        Formation
million in insurance premiums.
Provides domicile maintenance for today's
increasingly complex regulatory climate
  Global Home USA

Financial statement preparation
Financial reporting and analysis
Tax return preparation and planning
Insurance company valuation
Profit projections and on-going profit analysis
                                                  Financial
Risk exposure analysis
                                                  Analysis
Global Home USA


   Our Services
                   Claims Administration
                  Insurance Administration
                  Program Administration
Global Home USA

                 Customer Retention




Client Support                   Training & Installation




                 System & Controls
  Global Home USA

Complete retention process managed through
telemarketing and written correspondence.
Each customer will be contacted by postcard,
letter, and phone to achieve the highest level of
renewal.
        45% renewal history – 1st year
        25% renewal history – 2nd year              Customer
Payment will be collected and contracts             Retention
extended.
Agent commissions will be your profits.
  Global Home USA

We provide installation of the warranty
program in each of your offices

We provide on site training for all your
agents or employees

We provide training for the presentation of
the product to the home buyer and seller
                                              Training &
                                              Installation
  Global Home USA

We continually track production with
penetration graphs and summarized and
detailed office reports

We implement customer signature
requirements as accepted or declined which
will address errors & omissions and increase
sales
                                               Systems and
We will review profitability quarterly with      Controls
you, the owner
  Global Home USA


Regional and local offices with experienced
staff that brings over twenty years of
experience in the warranty industry

We will work closely to help manage your
company providing the flexibility to service
your agent and customer needs.                 Client Support
Global Home USA

      Understanding Our Product
 Global Home USA
                        Warranty Submissions




     Online                       Call            Fax/Print

•Website                    •1-866-445-3604    •1-866-315-4307
www.globalhomeusa.com
Global Home USA

    Understanding your Warranty Product


 Platinum Plan Platinum Plan Gold Plan
       $435          $435       $375
 Global Home USA
                     Platinum Plan
                          $435
                                     Agent Commission
                                            $40




Administration Fee
     $ 125
                                      Reserves
                                       $270
Global Home USA


  Building a Sample
       Proforma




    Platinum Plan
         $435
Revenues
               $435 Platinum Plan / 100 per warranties per month

Year                     1        Account Variables
Premiums Written
 New Policy             522,000   Base Policy Price     $435 Transactions / Month        $100
 1st Renewal                 0    1st time Renewals      45%
 2nd Renewal                 0    2nd time Renewals      25%
       Total            522,000

Administration Fees                                                     100 warranties
 New Policy             150,000   Administration Fees   $125              12 months
 1st Renewal                 0
 2nd Renewal                 0
       Total            150,000


Agents Commisson         48,000   Agent Commissions      $40

Amount to be Ceded      324,000
Revenues
          $435 Platinum Plan / 100 per warranties per month
 Year                   1         2         3         4         5        6 thru 8
 Premiums Written
  New Policy           522,000   522,000   522,000   522,000   522,000
  1st Renewal                -   234,900   234,900   234,900   234,900    234,900
  2nd Renewal                -         -   130,500   130,500   130,500    261,000
       Total           522,000   756,900   887,400   887,400   887,400    495,900

 Administration Fees
  New Policy           150,000   150,000   150,000   150,000   150,000              -
  1st Renewal                -    67,500    67,500    67,500    67,500     67,500
  2nd Renewal                -         -    37,500    37,500    37,500     75,000
       Total           150,000   217,500   255,000   255,000   255,000    142,500


 Agents Commisson       48,000    48,000    48,000    48,000    48,000              0

 Ceded @ Written       324,000   491,400   584,400   584,400   584,400    353,400
Claims
            $435 Platinum Plan / 100 per warranties per month
Year                     1             2          3          4          5       6 thru 8
Ceded @ Written         324,000      491,400     584,400    584,400   584,400    353,400
Ceded @ Earned                 0           0          0          0          0
  Total Ceded           324,000      491,400     584,400    584,400   584,400    353,400
Less Claims \ Losses    157,176      310,729     387,294    408,000   408,000    368,801
Underwriting Profit     166,824      180,671     197,106    176,400   176,400    (15,401)


Less: Taxes               9,720       14,742      17,532     17,532    17,532     10,602
                             An Analysis performed by GPWA Actuarial Consultants
       Annual Expense         500       500         500       500         500    1,500
     Loss Per Policy                  concluded a $200 average loss ratio
Investment Income         7,028       16,818      28,308     39,979    52,150    168,325
Net Income
            $200        163,632      182,247     207,382    198,347   210,518    140,822
                         For 2004, the Texas Real Estate Commission shows a $172
Beginning Balance            0     163,632
                                                            policy
                                           average loss per553,261
                                               345,879             751,608    962,126
  Reserve Per Policy
           $270                    383,786 policies including all optional coverage
Ending Balance          163,632    $156,147,582 collected in premium 962,126 1,102,948
                                     345,879     553,261     751,608
                                   $66,147,427 spent on 681,455 claims
                                   $90,000,155 underwriting profits
Claims
             $435 Platinum Plan / 100 per warranties per month
Year                     1             2          3          4           5        6 thru 8
Ceded @ Written         324,000       491,400    584,400    584,400    584,400     353,400
Ceded @ Earned                  0           0          0          0          0
  Total Ceded           324,000       491,400    584,400    584,400    584,400     353,400
Less Claims \ Losses    157,176       310,729    387,294    408,000    408,000     368,801
Underwriting Profit     166,824       180,671    197,106    176,400    176,400     (15,401)


Tax Expense              (9,720)      (14,742)   (17,532)   (17,532)   (17,532)    (10,602)
Plan Administration          (500)     (500)      (500)     (500)    (500)    (1,500)
                                     State premium tax at 3% of ceded @ written
Investment Income         7,028        16,818     28,308     39,979     52,150     168,325
Net Income              163,632      Administration costs includes allocated 140,822
                                      182,247     207,382   198,347   210,518
                                       annual audit, resident agent fees, and credit
Beginning Balance               0      card
                                      163,632processing fees.
                                                  345,879   553,261   751,608   962,126


Ending Balance          163,632
                                     Income based upon 6% rate of962,126 for
                                      345,879    553,261     751,608
                                                                       return 1,102,948
                                       underwriting profits after expenses
Proforma
             $435 Platinum Plan / 100 per warranties per month
Year                     1            2          3            4             5        6 thru 8
Ceded @ Written         324,000      491,400    584,400      584,400      584,400     353,400
Ceded @ Earned                  0          0            0            0          0
  Total Ceded           324,000      491,400    584,400      584,400      584,400     353,400
Less Claims \ Losses    157,176      310,729    387,294      408,000      408,000     368,801
Underwriting Profit     166,824      180,671    197,106      176,400      176,400     (15,401)


Tax Expense              (9,720)     (14,742)   (17,532)     (17,532)     (17,532)    (10,602)
Plan Administration          (500)     (500)         (500)        (500)     (500)      (1,500)
Investment Income         7,028       16,818     28,308       39,979       52,150     168,325
Net Income              163,632      182,247    207,382      198,347      210,518     140,822


Beginning Balance               0    163,632    345,879      553,261      751,608     962,126


Ending Balance          163,632      345,879    553,261      751,608      962,126    1,102,948
Global Home USA
                      Gold Plan
                        $375
                                  Agent Commission
                                         $40
                      Gold Plan
                         $375


 Administration Fee
      $ 125
                                   Reserves
                                    $210
Global Home USA
                $375 Gold Plan / 100 per warranties per month
Year                       1            2          3            4             5          6
Ceded @ Written           252,000      387,000    462,000      462,000      462,000    285,000
Ceded @ Earned                    0          0            0            0          0
  Total Ceded             252,000      387,000    462,000      462,000      462,000    285,000
Less Claims \ Losses      125,741      248,583    309,835      326,400      326,400    295,041
Underwriting Profit       126,259      138,417    152,165      135,600      135,600    (10,041)


Tax Expense               (7,560)      (11,610)   (13,860)     (13,860)     (13,860)    (8,550)
Plan Administration            (500)     (500)         (500)        (500)     (500)     (1,500)
Investment Income           5,353       12,774     21,575       30,511       39,823    128,726
Net Income                123,552      139,081    159,380      151,751      161,063    108,635


Beginning Balance                 0    123,552    262,633      422,013      573,764    734,827


Ending Balance            123,552      262,633    422,013      573,764      734,827    843,462
Global Home USA
                      Platinum Plan   Gold Plan

                         $435           $375


          Reserves         270           210
Administration Fees        125           125
Agent Commissions           40           40
              Price        $435         $375


         Proforma       $1,102,948    $843,462
Global Home USA

   Understanding your Insurance Structure
Global Home USA

    Our product provides alternate profit sharing structures:
           • Controlled Foreign Corporation
           • Non-Controlled Foreign Corporation

    With less expensive domiciles of incorporation:
            • Grand Caymans
            • Turks & Caicos
            • Bermuda



To realize the greatest profits for your Home Warranty Business.
    Global Home USA
                NCFC                                               CFC
 (Non-Controlled Foreign Corporation)                (Controlled Foreign Corporation)

  • 1st year maximum 35 members for non-           • Typically a single member, but can have
              qualified investors                                      more.

 • Unlimited for qualified investors (200,000
    annual income or 1 million net worth)

• Can add 15 non-qualified investors per year
• No voting stockholder’s position can exceed       • Single member produces 100% of the
    25% of the insurance company value.                          premium.
• Zero percent tax rate on investment income     • Investment income is taxed at corporate tax
   • Underwriting profit for funds held in the                          rate.
             insurance company.                    • Underwriting profit is not taxed while it is
                                                         held in the insurance company.
• Dividends are taxable at a personal income             • Dividends are taxed at 15%
                    level
    Global Home USA
                NCFC                                             CFC
 (Non-Controlled Foreign Corporation)              (Controlled Foreign Corporation)

• Almost always when anticipated premium is     • Found with premiums under $1.2 million.
              over $1.2 million.


  • NCFC’s do not file a U.S. corporate tax       • CFC’s file a U.S. corporate tax return
                  return.

   • * Domiciled in Turks & Caicos, BWI           • * Domiciled in Turks and Caicos, BWI



                  • Turks and Caicos 14 years experience in relationship.
             • Colin Holder, resident agent, 7 years Insurance Commissioner.
           • Minimum capital requirement and very well regulated by the British.
• BWI is governed by the British and both are British insurance companies, but all funds are
                                 held in U.S. bank accounts.
Global Home USA
Underwriter        Dealers Assurance Company
                   Covers all losses above reserve levels
                   Owned and operated by Southwest Re
                   A.M. Best A- rated insurance company

Direct Writer      Warranty Global Group
                   Provides the Global Home USA warranty
                   Provides the first layer of insurance reserves
You the Investor   Producer Owned Reinsurance Co (PORC)
                   Where your warranty premiums are invested
                   Initial investment of 2,000 shares @ $1 per share
Global Home USA
    Dealers Assurance Company (DAC)
                       Underwriter


        Warranty Global Group
           Direct Writer & Administrator Obligor




                    NCFC
               Reinsurance Company

                            Investor (45%)

                            Investor (67%)

                            Investor (58%)

                            Investor (73%)
Global Home USA
New Profit Opportunity
           100 % underwriting profit and 100% investment income


Capital Requirement
           $5,000 which includes 2,000 shares @ $1 per share


 Underwriting Exposure
           Fully insured at reserve levels.

 Termination Provision
           Provided at any time at your request
Industry Concerns
       Learning the Market


           Claims Handling


           RESPA


        Contingent Liability
Global Home USA
                $335

         $355
                                 Price
                              Sensitivity
 $375




        $395
                       $435
Industry Concerns
       Learning the Market


           Claims Handling


           RESPA


        Contingent Liability
  Global Home USA

Customer Contract Policy

 “Obligations under this Agreement are
   provided by Warranty Global Group
  Inc. The Administrator performance
 under this Agreement is insured by an
   insurance policy issued by Dealers
          Assurance Company”
Global Home USA


      With your endorsement
  We will continually work with you
 to manage your insurance company
  creating a new profit opportunity
  while reducing your financial risk
Global Home USA

                  Simplicity


             Complete Turn-key
                   Solution

     Creating a Profit Center that Didn’t
                 Exist Before
Global Home USA
      Working with you
        to create the
         benefits of
          owning a
          warranty
          company

								
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