Dealers Assurance Company, Ohio(OH)-History, Products, Ratings, Benefits

Dealers Assurance Company (DAC) is a Property & Casualty insurance company that primarily serves the automotive and consumer goods industries.

DAC is domiciled in Ohio with a corporate office in Dallas, TX.

DAC is a subsidiary of iA Financial Group, one of Canada’s largest life and health insurance companies and F&I providers.

In this article, we will explore the history, products, ratings, and benefits of DAC.

History of Dealers Assurance Company(DAC)

Dealers Assurance Company was founded in 1935 as Mahoning Insurance Company, one of the first pure captive insurance companies in the USA.

The company changed its name to Dealers Assurance Company in 1986 and expanded its business to include service contracts for vehicles and consumer goods.

In 2017, DAC was acquired by iA Financial Group, a leading Canadian financial services provider with over C$196.2 billion in assets.

Products of Dealers Assurance Company

DAC offers both the first dollar and aggregate excess-of-loss contractual liability policies for administrator obligors that sell service, and pay claims for extended service contracts sold on vehicles or consumer goods.

Dealers Assurance Company’s products cover a wide range of risks, such as:

• mechanical breakdown
• accidental damage
• theft
• loss
• power surge

DAC also provides reinsurance solutions, compliance expertise, and support services to its clients.

Ratings of DAC

DAC is rated “A” (Excellent) with a stable outlook by AM Best, a global credit rating agency for the insurance industry.

This rating reflects Dealers Assurance Company’s strong balance sheet, operating performance, business profile, and enterprise risk management.

Dealers Assurance Company has been an AM Best Financial Size Category VII company since April 2014, with over $94 million in policyholder surplus.

Dealers Assurance Company is also SOC1® compliant, which means it adheres to the highest standards of internal controls and data security.

Benefits of Dealers Assurance Company

DAC provides many benefits to its clients, such as:

• A-rated paper: Dealers Assurance Company’s high rating by AM Best gives confidence and credibility to its clients and their customers.
• Industry knowledge: Dealers Assurance Company has over 85 years of experience in the insurance and service contract industry, and understands the needs and challenges of its clients.
• Helpful resources: Dealers Assurance Company provides everything required to get the products to market faster, including first-class support staff, reinsurance solutions, compliance expertise, and more.
• Lean and nimble: Dealers Assurance Company is flexible and responsive to its client’s needs and can adapt to changing market conditions and customer demands.

FAQs

What is an assurance company?

An assurance company is a type of financial institution that provides guarantees or certainty of a specific outcome or result.

An assurance company could be a life insurance/assurance company providing benefits upon the certain death of the insured but commonly refers to an accounting or auditing firm providing assurance services to businesses and organizations.

What is the difference between insurance and assurance?

Insurance and assurance are both methods of managing risk, but they are used in different contexts.

Insurance is a contract that provides financial protection against losses due to unforeseen events such as :

• accidents
• natural disasters
• illness

The individual or business pays a premium to the insurance company in exchange for coverage, and if the insured event occurs, the insurance company pays out a claim to cover the financial loss.

Assurance is a contract that provides a guarantee of a specific outcome, such as death.

The individual or business pays a premium to the assurance company in exchange for a predetermined sum of money at a specific time or upon the occurrence of a specific event.

Insurance covers an event that might happen, while assurance covers an event that will happen.

What is the role of assurance services?

Assurance services are independent professional services that improve the quality or context of information for decision-makers.

They reduce information risk by:

• verifying the accuracy
• reliability
• compliance of financial statements
• transactions
• systems
• processes

Assurance services help clients navigate the complexities, risks, and opportunities in their partner networks by proactively managing and monitoring risks presented by third-party relationships.

Moreover, Assurance services also help businesses increase the transparency, relevance, and value of the information they disclose to the market and their investors.

What are the three main types of assurance services?

The three main types of assurance services are audits, reviews, and compilations.

Audits are the most rigorous and comprehensive type of assurance service.

It provides an opinion on whether the financial statements are fairly presented and free from material misstatement.

Reviews are less extensive than audits.

They provide limited assurance on whether the financial statements are plausible and consistent with accounting standards.

Compilations are the least rigorous type of assurance service.

It involves preparing financial statements from client-provided information without expressing any assurance on them.

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