Frequently Asked Questions

First US Warranty & First US Insurance

  • What are First US Warranty (FUSW) and First US Insurance (FUSI)?
    • First US Warranty (FUSW) is a leading provider of reinsurance programs and administration services tailored to the automotive industry. First US Insurance (FUSI) is a Property & Casualty Commercial Lines Insurance company specializing in working with automotive car dealerships.
  • What products and services does FUSW offer?
    • FUSW offers a range of products and services tailored to automotive dealerships, including reinsurance programs such as Controlled Foreign Corporation (CFC), Non- Controlled Foreign Corporation (NCFC), Retrospective Reinsurance, and Dealer Owned Warranty Companies (DOWC). Our suite of products includes Vehicle Service Contracts, Guaranteed Asset Protection (GAP) coverage, Tire and Wheel coverage, pre-paid maintenance programs, cosmetic dent repair coverage, paint and fabric coverage, theft coverage, and more. Additionally, we provide training programs for dealership personnel, including F&I Manager Sales and process training, Sales Associate Training, Sales Manager Training, and General Manager Training.
  • What sets FUSW and FUSI apart from competitors?
    • FUSW distinguishes itself through fair pricing, transparent fee structures, proactive risk management practices, and modern training programs. FUSI specializes in providing tailored Property & Casualty Commercial Lines Insurance solutions designed to meet the unique needs of automotive car dealerships.
  • How do FUSW and FUSI work together to support automotive dealerships?
    • FUSW and FUSI collaborate to provide comprehensive insurance and warranty solutions for automotive dealerships. FUSW handles reinsurance programs, claims handling, and training services, while FUSI specializes in providing Property & Casualty Commercial Lines Insurance coverage.
  • What types of insurance coverage does FUSI offer for automotive dealerships?
    • FUSI offers a range of insurance coverage options for automotive dealerships, including property insurance, liability insurance, garage insurance, workers’ compensation insurance, and business interruption insurance. Our policies are tailored to address the specific risks and exposures faced by automotive dealerships.
  • How can automotive dealerships benefit from partnering with FUSW and FUSI?
    • Automotive dealerships can benefit from partnering with FUSW and FUSI by gaining access to comprehensive insurance and warranty solutions designed to protect their assets and enhance profitability. Our team of experts works closely with dealerships to customize solutions that meet their unique needs and goals.
  • How does FUSW ensure compliance and regulatory adherence?
    • Compliance and regulatory adherence are top priorities at FUSW and FUSI. We stay abreast of industry regulations and work closely with dealerships to ensure compliance with state and federal laws governing automotive finance, insurance, and property & casualty coverage. Our team undergoes regular training and certification to maintain the highest standards of professionalism and compliance.
  • What ongoing support does FUSW and FUSI provide to their clients?
    • At FUSW and FUSI, we believe in building long-term partnerships with our clients. We provide ongoing support, training, and consultation to help dealerships maximize their performance, profitability, and risk management. Our team is here to support you every step of the way.
  • How can I contact FUSW and FUSI for more information?
    • For more information about First US Warranty and First US Insurance, please contact us directly. Our team is standing by to answer your questions and assist you in achieving your dealership’s goals.

First US Warranty

  • What is First US Warranty (FUSW)?
    • First US Warranty (FUSW) is a leading provider of reinsurance programs and administration services tailored to the automotive industry. We specialize in setting up reinsurance programs such as CFC, NCFC, Retrospective Reinsurance, and Dealer Owned Warranty Companies (DOWC). Our comprehensive suite of services includes claims handling, premium pricing, risk management, and training programs designed to optimize dealership performance.
  • Who are your primary clients?
    • Our primary clients are automobile dealerships located within the United States. We work closely with Owners, C-Suite executives, and decision-makers within dealerships to provide transparent, fair pricing and effective risk management solutions.
  • What products and services does FUSW offer?
    • FUSW offers a range of products and services tailored to the automotive industry, including Vehicle Service Contracts, GAP coverage, Tire and Wheel coverage, pre-paid maintenance programs, cosmetic dent repair coverage, paint and fabric coverage, theft coverage, and more. Additionally, we provide training programs for dealership personnel, including F&I Manager Sales and process training, Sales Associate Training, Sales Manager Training, and General Manager Training.
  • What sets FUSW apart from competitors?
    • FUSW distinguishes itself through fair pricing, transparent fee structures, and proactive risk management practices. Unlike many competitors, we provide a micro-level analysis of dealership performance and take a proactive approach to risk mitigation. Our training programs are modern, comprehensive, and designed to enhance dealership performance effectively.
  • How does FUSW handle claims and administration?
    • FUSW handles claims and administration with efficiency and professionalism. Our team is dedicated to providing timely and accurate claims processing, premium pricing, and risk management services. We also offer Virtual F&I services, allowing dealerships to outsource F&I transactions to our experienced professionals.
  • What is Virtual F&I, and how does it work?
    • Virtual F&I is a service offered by FUSW that allows dealerships to outsource their F&I transactions to our team of experienced professionals. Our Virtual F&I Managers facilitate F&I transactions remotely, providing dealerships with flexibility and scalability to meet customer demands.
  • How can I get started with FUSW?
    • Getting started with FUSW is easy! Simply reach out to our team to schedule a consultation. We’ll work with you to assess your dealership’s needs and tailor a solution that meets your requirements. Whether you’re interested in reinsurance programs, administration services, or Virtual F&I, we’re here to help you succeed.
  • How does FUSW ensure compliance and regulatory adherence?
    • Compliance and regulatory adherence are top priorities at FUSW. We stay abreast of industry regulations and work closely with dealerships to ensure compliance with state and federal laws governing automotive finance and insurance. Our team undergoes regular training and certification to maintain the highest standards of professionalism and compliance.
  • What ongoing support does FUSW provide to its clients?
    • At FUSW, we believe in building long-term partnerships with our clients. We provide ongoing support, training, and consultation to help dealerships maximize their performance and profitability. Whether you have questions about claims processing, risk management, or training programs, our team is here to support you every step of the way.
  • How can I contact FUSW for more information?
    • For more information about First US Warranty and our services, please contact us directly. Our team is standing by to answer your questions and assist you in achieving your dealership’s goals.

Reinsurance Structures at First US Warranty

Controlled Foreign Corporation (CFC) Reinsurance:

  • What is a Controlled Foreign Corporation (CFC) Reinsurance program?
    • A Controlled Foreign Corporation (CFC) Reinsurance program allows automotive dealerships to establish a reinsurance entity offshore, typically in a jurisdiction with favorable tax laws. The dealership retains ownership and control over the reinsurer, enabling them to participate in underwriting profits and investment income.
  • How does a CFC Reinsurance program benefit automotive dealerships?
    • CFC Reinsurance programs offer tax advantages, asset protection, and the opportunity to capture underwriting profits and investment income. Dealerships can customize their reinsurance structure to align with their risk management and financial objectives.
  • What types of products can be reinsured under a CFC Reinsurance program?
    • A wide range of F&I products, including Vehicle Service Contracts, GAP coverage, Tire and Wheel coverage, pre-paid maintenance programs, cosmetic dent repair coverage, paint and fabric coverage, theft coverage, and more, can be reinsured under a CFC structure.

Non-Controlled Foreign Corporation (NCFC) Reinsurance:

  • What is a Non-Controlled Foreign Corporation (NCFC) Reinsurance program?
    • A Non-Controlled Foreign Corporation (NCFC) Reinsurance program operates similarly to a CFC program but is established in a jurisdiction where the dealership does not have majority ownership or control over the reinsurer.
  • How does an NCFC Reinsurance program differ from a CFC program?
    • The key difference lies in ownership and control. In an NCFC structure, the dealership does not have majority ownership or control over the reinsurer, which may impact tax implications and regulatory requirements.
  • What types of F&I products are eligible for NCFC Reinsurance?
    • NCFC Reinsurance can cover a wide array of F&I products, similar to those reinsured under a CFC structure, including Vehicle Service Contracts, GAP coverage, Tire and Wheel coverage, pre-paid maintenance programs, and more.

Retrospective Reinsurance:

  • What is Retrospective Reinsurance, and how does it work?
    • Retrospective Reinsurance involves the dealership assuming a portion of the risk upfront and reinsuring the remaining portion with a third-party reinsurer. Claims are settled retrospectively, with the reinsurer reimbursing the dealership for covered losses based on predetermined terms and conditions.
  • What are the benefits of Retrospective Reinsurance for automotive dealerships?
    • Retrospective Reinsurance allows dealerships to retain control over their claims experience while transferring a portion of the risk to a reinsurer. It provides flexibility in managing risk and cash flow, as well as potential cost savings over traditional insurance arrangements.
  • Which F&I products can be reinsured under a Retrospective Reinsurance structure?
    • Retrospective Reinsurance can be applied to a variety of F&I products, including Vehicle Service Contracts, GAP coverage, Tire and Wheel coverage, pre-paid maintenance programs, and other ancillary products offered by automotive dealerships.

Dealer Owned Warranty Company (DOWC):

  • What is a Dealer Owned Warranty Company (DOWC)?
    • A Dealer Owned Warranty Company (DOWC) is a reinsurance structure that allows automotive dealerships to establish their own warranty company to underwrite and administer F&I products.
  • What are the advantages of a DOWC for automotive dealerships?
    • DOWCs offer dealerships greater control over their warranty programs, pricing, claims handling, and risk management. They can customize coverage options, set pricing strategies, and retain underwriting profits within the dealership.
  • Which F&I products can be administered through a DOWC?
    • DOWCs can administer a wide range of F&I products, including Vehicle Service Contracts, GAP coverage, Tire and Wheel coverage, pre-paid maintenance programs, cosmetic dent repair coverage, paint and fabric coverage, and more.

For more detailed information about each reinsurance structure and how it can benefit your automotive dealership, please contact our team at First US Warranty. We’re here to help you navigate the complexities of reinsurance and find the best solution for your business needs.

Virtual F&I Powered by First US Warranty

  • What is Virtual F&I, and how does it work?
    • Virtual F&I is a service offered by First US Warranty (FUSW) that allows automotive dealerships to outsource their Finance & Insurance (F&I) transactions to our team of experienced professionals. Through secure digital channels, our Virtual F&I Managers remotely facilitate F&I transactions, providing dealerships with flexibility and scalability to meet customer demands.
  • Is the dealership required to sell First US Warranty’s F&I Products to use the service?
    • No, the dealership is not required to sell First US Warranty’s F&I Products to use the Virtual F&I service. If you prefer to maintain your current F&I product provider, you can continue doing so. Our team will seamlessly integrate with your existing setup and offer support for selling other providers’ products, ensuring a smooth transaction process for your dealership and customers.
  • What are the key benefits of Virtual F&I for automotive dealerships?
    • Virtual F&I offers dealerships several advantages, including:
      • Expanded access to experienced F&I professionals, regardless of geographic location.
      • Scalability to handle fluctuations in F&I transaction volume, including busy periods or staff shortages.
      • Enhanced efficiency and cost-effectiveness compared to maintaining an in-house F&I department.
      • Access to real-time reporting and analytics for performance tracking and optimization.
  • How does Virtual F&I integrate with dealership operations?
    • Our Virtual F&I solution seamlessly integrates with dealership operations through secure digital platforms. Dealerships can schedule F&I transactions in advance or request ondemand support as needed. Our team works closely with dealership personnel to ensure a smooth and efficient transaction process for customers.
  • What types of F&I products can be facilitated through Virtual F&I?
    • Virtual F&I can facilitate a wide range of F&I products, including Vehicle Service Contracts, GAP coverage, Tire and Wheel coverage, pre-paid maintenance programs, cosmetic dent repair coverage, paint and fabric coverage, theft coverage, and more.
  • Is Virtual F&I compliant with industry regulations and best practices?
    • Yes, Virtual F&I is fully compliant with industry regulations and best practices governing automotive finance and insurance transactions. Our team undergoes regular training and certification to maintain compliance standards and uphold the highest levels of professionalism and integrity.
  • How does Virtual F&I ensure data security and customer privacy?
    • Protecting customer data and ensuring privacy are top priorities for Virtual F&I. We employ robust security protocols and encryption measures to safeguard sensitive information transmitted during F&I transactions. Additionally, our team adheres to strict confidentiality agreements and compliance guidelines to protect customer privacy at all times.
  • Can Virtual F&I be customized to meet the unique needs of our dealership?
    • Yes, Virtual F&I can be customized to align with the specific needs and preferences of your dealership. We work closely with dealership management to tailor our services, pricing structures, and reporting mechanisms to meet your business objectives and enhance customer satisfaction.
  • How can our dealership get started with Virtual F&I?
    • Getting started with Virtual F&I is easy! Simply contact our team at First US Warranty to schedule a consultation. We’ll assess your dealership’s needs, provide a personalized demonstration of our Virtual F&I solution, and discuss implementation strategies to ensure a seamless transition.
  • What ongoing support and resources are available to dealerships utilizing Virtual F&I?
    • Our team is dedicated to providing ongoing support, training, and resources to dealerships utilizing Virtual F&I. From technical assistance to performance optimization strategies, we’re here to help you maximize the benefits of Virtual F&I and enhance your dealership’s F&I operations.

For more information about Virtual F&I and how it can benefit your automotive dealership, please contact our team at First US Warranty. We’re committed to delivering innovative solutions that drive efficiency, profitability, and customer satisfaction in F&I transactions.