How the Pool Works

The CRA and EXCHANGE are two independent organizations each having the following:

• Board of Managers
• Executive Committee
• Underwriting Committee
• Loss Committee
• Other committees as necessary which establish the rules under which Clearing House works.

The Board of Managers and other Committees of each are elected or appointed annually in accordance with the by-laws.

Each member company is represented on the Board of Managers by a Representative and an Alternate who usually are the senior marine people of the member company.  The Committees are likewise composed of senior people of the member companies.  Every member has voice in the operations of the groups and has a means of advocating any changes which may be desired.

Members of technical committees are selected for their personal knowledge and experience. They are not company representatives, but rather act to preserve the integrity of the CRA or the Exchange by the fair and proper administration of the Articles of Agreement.

The rules under which AMICH, CRA and the EXCHANGE operate make sense for the following reasons.

• They establish a basic set of insuring conditions which can be freely reinsured;
• They are based on sound underwriting practices and are made by experienced underwriters;
• They create a climate in which members can freely exchange reinsurance without fear that they will be hurt by contradictory philosophies.
• They reflect least common denominator underwriting.

The Rules affect the member's reinsurance not his or her basic underwriting.

• The member is free to insure whatever he wishes and rate deemed appropriate.
• He would be unwise to write a risk that can't be reinsured or to charge less the reinsurance costs.
• Members must never decline to do something the broker requests because "the CRA or Exchange won't let me".
• The decision should depend on their own underwriting judgment or their own company policy.

If a member has a problem with the rules of the Exchange or the CRA, consult with AMICH.  Perhaps we can show you a way to achieve your purpose and still maintain your reinsurance.