Capabilities - Sovereign Nation Surety, Others
Sovereign Nations Surety Company; First Sovereign Lloyds Assurance; LTD, Mangus Lloyd’s Assurance, LTD, Tribal Re, Rolla Re, Treaty Re
Capabilities Statement
Our Indian Country surety and insurance products are created with tribal peoples and Indian tribes in mind. For the most part all of our products are limited to Indian Country risks. Smaller risks are backed by the discreet reserves of the underwriting companies. Larger risks are back by the discreet risks plus syndicates.
Sovereign Syndicate Number One backs insurance risks written throughout Indian Country. Sovereign Syndicate Number Two backs surety risks written through Indian Country. Investors in the syndicates are free to select or reject particular risks, or to limit participation in specific risks. Investors posting collateral, such as Irrevocable Letters of Credit (ILOCs) earn whatever interest their own financial institutions pay them through their private arrangements with their financial institutions. An ILOC can name the carrier as the intended beneficiary unless the investor prefers to work through one of our Indian Country trustees. In addition, investors earn an agreed premium from the sovereign companies that underwrites risks backed by those investors. Accounting is on a three-year cycle. If there are no claims, the investors get their agreed share of the premium. If there are claims, the investors receive a cash call in an amount that will satisfy claims.
Our primary surety and insurance companies do not operate within the jurisdiction of a state insurance commissioner. As such, we need not be Treasury Department listed (T-listed) and we are not members of the National Association of Insurance Commissioners (NAIC). Rather, our companies are licensed as insurers by tribal governments and the carriers are regulated by the Insurance Commissioners of the tribes and, as an umbrella organization, by the Tribal Association of Insurance Commissioners (TAIC). If your customer requires that you have a T-listed surety or insurer licensed by a state, then our offerings are not for you.
If the owner is an Indian tribe, or the principal is a tribally-owned contractor, we will insist upon a limited waiver of sovereign immunity as part of the indemnity agreement that must be executed prior to the issuance of any bonds.
We also work with reinsurers in Indian country. To the extent a reinsurance treaty is negotiated and transacted on tribal lands, it does not matter where the primary companies operate. For example, a state licensed insurance company can reinsure with a tribal reinsurance company. The business of the reinsurance company never leaves the tribal lands, regardless of where the primary carriers operate.
Rates:
You will find our rates to be more than competitive. Because risks written on Indian Country projects, or for tribally-owned contractors are not taxed by a state, there is an automatic savings in the premium you pay. Also, we cut out an intermediary. No broker or agent is required since these products are written on a direct basis. If you have an agent or a broker who wants to be involved, that is fine, but the rates might be a bit higher. Up to you.
If you seek a surety bond or an insurance product, or if you want to invest in one of our syndicates, please contact us using the “Contact Us” page on this website.
