Program Update Helps Local Dealers Meet the Needs of Communities and Employees
CHESTERFIELD, MO – Protective Asset Protection, a leading provider of F&I programs, services and dealer owned warranty company programs, announced an update to its retrospective (Retro) programs that will help local dealerships meet the needs of their communities and employees during COVID-19.
Protective is reducing the production requirements for its Retro programs. Beginning with the second quarter interest payment, the production requirements in all Retro programs will be reduced twenty-five percent (25%). In addition, the year-end production requirement will also be reduced. This reduction will be applied across the remainder of the year and all levels, impacting each level of potential payout. All other Retro agreement requirements and conditions remain unchanged, and this change does not impact any other dealer participation programs.
“Dealers are working harder than ever to serve their communities and remain open for new and used vehicle sales as well as the service and repair of these vehicles,” said Rick Kurtz, senior vice president of distribution. “In addition to equipping dealers with the best F&I programs possible, we want to do everything we can to help dealers and their employees during this unprecedented time of operating a business.”
Under the structure of a Retro program, payments to dealerships are retrospective commissions paid by Protective directly to a dealership. Underwriting profits are calculated and paid out to dealers on an earned basis, and these can be paid either through investment income or commissions and distributed in advance with a future offset and payback liability. Dealers should note that the dealer’s business corporation entity will most likely result in less income tax on Retros received than previous to the 2017 Tax Cuts and Jobs Act.
ABOUT PROTECTIVE ASSET PROTECTION
Protective Asset Protection is the originator of the DOWC and provides vehicle protection plans, GAP, and credit insurance through vehicle dealerships. Protective Asset Protection has been serving dealers for more than 55 years and currently provides products and services to automobile, marine, RV and powersports dealers. Protective Asset Protection is part of the financial services holding company, Protective Life Corporation.
ABOUT PROTECTIVE LIFE CORPORATION
Protective Life Corporation provides financial services through the production, distribution and administration of insurance and investment products throughout the U.S. Protective traces its roots to its flagship company, Protective Life Insurance Company – founded in 1907. Throughout its more than 110-year history, Protective’s growth and success can be largely attributed to its ongoing commitment to serving people and doing the right thing – for its employees, distributors, and most importantly, its customers. Protective’s home office is located in Birmingham, Alabama, and its 3,000+ employees are located in offices across the United States. As of March 31, 2019, Protective had assets of approximately $92 billion. Protective Life Corporation is a wholly owned subsidiary of Dai-ichi Life Holdings, Inc. (TSE:8750).