Erhard. BIM/ SIZZLING SUMMER SAVINGS No Charge Scheduled Maintenance-36 months or 36,000 miles '97 BMW 318ti Merton Segal: From basement to 600 employees. Casualty Insurance Company in 1990. Meadowbrook's Star Insurance Company was a start-from-scratch firm established in 1985 by Mr. Segal and officers of his company. Creation of the company became necessary when regular licensed insurance carriers stopped sup- porting Meadowbrook's programs. According to Mr. Segal, Star be- gan operation with a Michigan- only license and with only $750,000 in capital surplus. To- day, the company is licensed in 49 states and the District of Colum- >Dia. But you won't find them in the smallest state, Rhode Island, be- cause Mr. Segal doesn't think Defining A Captive A captive insurance company is a corporation organized pri- marily to provide insurance for its owners by assuming all or part of its owner's exposure to financial loss either as di- rect insurance or reinsurance. A pure captive is a captive with one single parent share- holder. Captives became a hot com- modity after 1965's Hurricane Betsy disaster, when insur- ance companies forced major corporations to assume high- er property deductibles. Many responded by forming captives as a vehicle to fund these high- er deductibles. When many insurance buy- ers couldn't find coverage at any price, even more captives were formed to provide such coverages as medical mal- practice, product liability, gen- era]. liability and professional liability for their parents. there's enough business to write there. Under the IPO, Meadowbrook and Star were merged into the Meadowbrook Insurance Group, Inc. The company has an A- rat- ing (excellent) from A.M. Best, the Standard and Poor's of the insur- ance industry. Meadowbrook's capital and sur- plus overall recently passed $100 million, and its assets surpassed $250 million. It is ranked 24th on the 1996 Business Insurance list of the 100 largest brokers of U.S. business, with 1995 revenue of more than $33 million. The company started out 41 years ago as a personal insurance agency in the state of Michigan. Today, it is the largest insurance service organization in Michigan. "We offer growth through Meadowbrook Insurance Agency traditional and the alternative risk services. Our client base is made up of Michigan 100-type compa- nies in addition to individuals, groups, and associations," said Mr. Segal. . "The overall strategy of the or- ganization from a marketing standpoint is that we've broken the country down into five regions: Northeast, we have an office in New York City; Midwest, we have our headquarters in Michigan; Mid-Atlantic area, we have offices in Kansas City; Southeast, we have offices and representation in Florida, although our actual Southeast base is in Montgomery, Ala.; and the West, where part of our marketing strategy was to ac- quire Crest. "We also have a major office in Bloomington, Minn.," Mr. Segal said. Meadowbrook Risk Manage- ment Ltd., an offshore captive management company formed in 1979, has offices in Bermuda and Barbados. The company acquired the Bermuda-based American In- demnity Insurance Company, REMOVING page 60 ),,,arm s ‘ in PAPLE 4065 Maple Just E. of Telegraph Bloomfield Hills ERHARD BMW (2413) 042-0565 OPEN SATURDAY SALES 10 A.M.-4 P.M. Michigan's Largest and Most Experienced BMW Dealer Family Owned and Operated Since 1964 SERVICE/PARTS/SALES Mon. 111 9 p.m *36 month closed end lease subject to approved credit with BMWFS. S2500 non-refundable down payment required. Title, licence, and tas acklitiottal. A security deposit of S350.(X) for 318ti. S400.(11 for 318i. S450.(X)Ibr 328ia. I 0.(XX) miles per year limit. S.15 cents per mile over limit. Option to purchase at lease end of SI6.32 I .50 for 318ti. SI8.027.45 for 318i, 522,899.20 Ibr 328ia.Total payments equal to ad price + 14; X 36. 3181i - Stk. 73 I 0-(X). 318i - Stk. 7739-(Xl. 328ia-Stk. 7742-00.Scheduled Maintenance provided by BMW of North America for a period of 36 months or 36,000 miles. Olier ends July 30. 1997.