New England Mortgage Insurance Exchange (NEMIE)

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New England Mortgage Insurance Exchange (NEMIE)

New England Insurance Trust (NEIT)

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NEW ENGLAND MORTGAGE INSURANCE EXCHANGE (NEMIE)

What is Captive Reinsurance?

Captive reinsurance is a mechanism through which an organization can participate in the operative results of the risks it insures with an insurance company. The organization forms a “captive” insurance company under state insurance laws to participate in the reinsurance.

How Does Captive Reinsurance Work?

The reinsurance company receives a specified portion of the premiums paid to the insurance company in exchange for assuming a specified portion of the risk of loss.

How Does The New England Insurance Trust (NEIT) Make Captive Reinsurance Possible?

The NEIT has received approval from the Vermont Insurance Department to form the New England Mortgage Insurance Exchange (“NEMIE”), a reciprocal insurance organization. In addition, the Trust has negotiated captive reinsurance agreements between NEMIE and Mortgage Guaranty Insurance Corporation (“MGIC”) through which Trust members can participate.

How Can My Financial Institution Participate?

To participate, your company must be a Trust member or Associate Trust member. In addition, you must submit an application for participation in NEMIE and agree to the terms of participation.

What Are The Terms Of The NEMIE Membership Agreement?

Essentially, your company is agreeing that it will maintain and make available to the Trust all records associated with loans insured by MGIC which are covered under the reinsurance program. In addition, you will agree to make any required disclosures to borrowers concerning the reinsurance arrangement that would include an acknowledgement from the borrowers that they are aware that their loans may be covered under a captive reinsurance agreement. These disclosures must be kept in your loan file.

Where Do I Get Such A Disclosure For Borrowers To Sign?

The Trust will provide a form for your use, but the Trust does not warrant it suitability or compliance with applicable law. That remains the lender’s responsibility.

When Can We Begin Participating?

Your financial institution can begin to participate on the first of the month following acceptance by the Subscriber’s Advisory Committee of NEMIE.

How Do I Get Started?

Contact Daniel Dubreuil Executive Vice President of Mathes Associates, Inc. at 1-800-234-3621 x102 or email to: ddubreuil@mathesassociates.com .