Gainsco to offer DE Insurance

[jmr3]

http://www.nyse.com/interface/jsp/NHDeta...ones=false

I am told that it will be up and running aroung 1/1/08

 

[LouZ]

....and it's going to be administered by Chris Maume from Prosure!

[JeffConklin]

LouZ wrote:

....and it's going to be administered by Chris Maume from Prosure!

Is that a good thing?? Not being a smart ass, just never heard of him.

[sms]

I could not get that link to work but Chris M. was at another company prior to Prosure (his own venture I believe) and has a ton of experience with DE and Race insurance. I have no connection except I am a satisfied customer of his.

[Brian Minkin]

This is from the Gainsco Web Site

 

3333 LEE PARKWAY, SUITE 1200 DALLAS, TEXAS 75219 PHONE: 972.629.4301 FAX: 972.629.4302 WWW.GAINSCO.COM NEWS GAINSCO ANNOUNCES NEW INSURANCE MARKETING UNIT

Dallas, Texas, October 23, 2007 – GAINSCO, INC. (AMEX: GAN) announced today the formation of GAINSCO Motorsports Insurance ("GMI"), which will market third-party insurance products to customers in the motorsports industry.

This new marketing unit will be managed by a new addition to GAINSCO and GMI, Christopher S. Maume, who currently operates as an insurance agent in the motorsports industry. "We are pleased to have someone with Chris’ level of passion and experience joining us at GAINSCO," said Glenn W. Anderson, President and Chief Executive Officer of GAINSCO. "This niche marketing opportunity enables us to develop a fee income business that capitalizes on our successful racing sponsorship and brand. We believe that Chris is the right person to lead this program for GAINSCO."

The Company believes motorsports insurance correlates closely with its sponsorship of the GAINSCO 99 Daytona Prototype racecar. The GAINSCO 99 racecar recently completed its season long campaign in the Grand-Am Rolex Sports Car Series by capturing the 2007 team and driver championships. GAINSCO became the primary sponsor of the No. 99 car and Bob Stallings Racing when the team entered competition in the Grand-Am Rolex Sports Car Series in mid-season 2005.

Andy Jordan, Senior Vice President of Corporate Marketing for GAINSCO, explained the brand connection with GMI. "At GAINSCO, we are continuing to build brand recognition through the strong association with the championship GAINSCO/Bob Stallings racing team. What is particularly exciting about this opportunity to provide insurance solutions inside the racing community is the way it extends and strengthens our brand."

"The GAINSCO/Bob Stallings racing team has been highly successful on the track," said Chris Maume, "and I look forward to growing this program and achieving the same success off the track as the GAINSCO 99 racecar does on it."

Most recently, Mr. Maume was President of ProSure Motorsports Protection ("ProSure"). ProSure sold the same type of motorsports-related products that Mr. Maume will market through GMI. As with ProSure, the business sold by Mr. Maume and GMI will be insured solely by unaffiliated third-party insurance companies.

Mr. Maume will operate from his current base in Atlanta, Georgia. He can be reached at (678) 643-8415.

--Page 2--

GAINSCO, INC. is a Dallas, Texas-based holding company established in 1978. The Company’s nonstandard personal automobile insurance products are distributed through independent retail agents in Florida and South Carolina (Southeast Region), Texas (South Central Region) and Arizona, Nevada and New Mexico (Southwest Region), and through an independent managing general agency in California (West Region). The Company’s motorsports insurance operations are represented by its specialty insurance agency, GAINSCO Motorsports Insurance. Its insurance company subsidiary is MGA Insurance Company, Inc.

Some of the statements made in this release may be forward-looking statements. Forward-looking statements relate to future events or future financial performance and may involve known or unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements.

These forward-looking statements reflect current views but are based on assumptions and are subject to risks, uncertainties, and other variables which should be considered when making an investment decision. Please refer to the Company's recent SEC filings, including the Annual Report on Form 10-K for the year ended December 31, 2006, for more information regarding factors that could affect the Company's results.

Forward-looking statements are relevant only as of the dates made, and the Company undertakes no obligation to update any forward-looking statement to reflect new information, events or circumstances after the date on which the statement is made. All written or oral forward-looking statements that are made by or are attributable to the Company are expressly qualified in their entirety by this cautionary notice. Actual results may differ significantly from the results discussed in these forward-looking statements.

--END--

Release Date: Tuesday, October 23, 2007 – FOR IMMEDIATE RELEASE

Company Contacts: Christopher S. Maume, Manager-GMI, 678.643.8415

Andy Jordan, Sr. Vice President-Corp Marketing, 972.629.4445

Scott A. Marek, Asst. Vice President-IR, 972.629.4493

Email address: ir@gainsco.com

Website: www.gainsco.com

[Phokaioglaukos]

No news yet on Gainsco, but there is now an agent in our area writing WSIB policies and the Great Lakes Reinsurance policy that Chris Maume once sold through Snellings-Walters is available again.

You can see some of the info in this thread: http://forums.rennlist.com/rennforums/sh...p?t=383358. If you are impatient, jump to page 5 of that thread where there is the new info.

[ToddPhilly]

I spoke with Lori at Snellings Walters last week, and she said that the DE insurance program is not yet available, but they are expecting to begin writing policies any day now.  I'm on her callback list as soon as they become available.  I will post info as soon as I receive it.

Anyone have any new info on Gainsco or Prosure?

[michael lang]

Chris I have been following this thread and also the one on Rennlist, with all this talk about track insurance it has made me look again at what I have and made me  think that I don't have enough of the right kind of insurance. I know we all don't plan on anything  happening but unfortunately there really are things that we just cannot control. I've been looking several companies and am not waiting for them to get back to me. I just wanted to thank you for being so thorough here and also on Rennlist. It might have just saved me or someone else following a headache & possibly alot of money.

 

[ninjabones]

Getting ready for the big dance at zone 2 VIR.... after spending all the time, energy and $$$$ getting the car set up for this season (really my first dedicated season with multiple DE events planned), I figured this year was probably worth it for me to get DE insurance.  Coverage is for 10 DE events (not days).

After reviewing all the info on Rennlist and some info here, I narrowed the field down to WSIB.  Premium is 3% of insured amount with $2,500 deductible.  Jean at WSIB has been extremely pleasant, informative and responsive.  The policy looks pretty comprehensive with underwriting by Lloyd's of London.

Thought I'd throw this out to the forum and see what they had to say about whether the insurance was worthwhile and if I should investigate any other carriers. 

[George3]

I too have been following the Track Insurance threads on various boards and I'm really concerned about how comprehensive the coverages will be this year.  It seems the insurance companies had to pay out a lot of claims and the policies did not prove to be as profitable as they orginially projected.

The option the insurance companies had was to either:  a) Raise the premiums in order to better cover their losses, or,  b) Maintain the same policy premium, but decrease the effective coverage to the insured by adding more exclusions to the policy.

The latter is the choice I believe many of them will follow for several reasons.  By raising the premiums too high they will lose a significant amount of customers who will eventually decide to become self insured. 

So by adding more exclusions to their policy and maintaining a level premium amount, they can add legal techno-babble language to the policy that few track enthusiats can fully understand.  This will serve to better limit the insurance companies risk exposure.

Bottom line:  The coverages effectively would not be the same as in previous past policies.

Looking at the realities, there is a higher probability of having an off, or worse, in wet weather conditions than in dry conditions.  To better manage the risk, some drivers may elect to limit their track time in wet weather conditions, or procure a significantly less costly wet weather track vehicle.  So, if the lesser car had an incident the losses would be sustainable.

This not to say an incident cannot occur in dry conditions, but it is only one part of this complicated decision-making equation.

The jury is still out whether I pull the trigger on track insurance this year, or not.  Last year for me it was a no-brainer to do so, however, the rules of the game have changed.