2007-09-19 07:56:23 · 3 answers · asked by dudnaito 4 in Business & Finance ➔ Insurance
Just b/c it's non profit doesn't mean you can't draw a pay check, even a really large one!! And don't forget to give yourself bonuses either. All legal in non profit as long as the company doesn't show a profit, but they are allowed to have huge bank accounts and holdings, so truthfully, it looks like the only difference is you won't have to pay taxes on the company!
2007-09-19 08:07:07 · answer #1 · answered by ReBelle 5 · 0⤊ 0⤋
Not very.
Insurance companies are required to have reserves on open claims. You have to have enough money in reserves so that if every claim was settled at the same time- you have enough cash on hand to pay it. In addition, Insurance companies also have reinsurance. This kicks in when there is a catastrophe claim.
You would have to have some pretty hefty cash reserves to be able to do it.
2007-09-19 17:47:54 · answer #2 · answered by Boots 7 · 0⤊ 0⤋
Not. You need millions of dollars in reserves to start, AND, most car insurance companies pay out about $1.05 for every $1 they take in.
Not to mention, the state regulations are HARD to comply with, for a startup company.
2007-09-19 21:44:54 · answer #3 · answered by Anonymous 7 · 0⤊ 0⤋