Liberte Investors Inc (FAC)

Description:

First Acceptance Corporation is a Delaware Corporation. It is a retailer, servicer and underwriter of non-standard personal automobile insurance based in Nashville, Tennessee. The Company's real estate and corporate segment consists of activities related to the disposition of real estate held for sale, interest expense associated with debt, and other general corporate overhead expenses. It currently writes non-standard personal automobile insurance in 12 states and is licensed as an insurer in 13 additional states. Non-standard personal automobile insurance is made available to individuals who are categorized as 'non-standard' because of their inability or unwillingness to obtain standard insurance coverage due to various factors, including payment history, payment preference, failure in the past to maintain continuous insurance coverage, driving record and/or vehicle type, and in most instances who are required by law to buy a minimum amount of automobile insurance. The Company's core business involves issuing automobile insurance policies to individuals who are categorized as 'non-standard,' based mainly on their inability or unwillingness to obtain insurance coverage from standard carriers due to various factors, including their need for monthly payment plans, failure to maintain continuous insurance coverage or driving record. It uses a single 'product template' as the basis for its rates, rules and forms. Product uniformity simplifies its business and allows speed to market when entering a new state, modifying an existing program or introducing a new program. In addition, its retail agents, underwriters and claims adjusters only need to be trained in one basic set of underwriting guidelines and one basic automobile policy. In addition to non-standard personal automobile insurance, it also offers its customers optional products that provide ancillary reimbursements and benefits in the event of an automobile accident. Those products generally provide reimbursements for medical expenses and hospital stays as a result of injuries sustained in an automobile accident, automobile towing and rental, bail bond premiums and ambulance services. The non-standard personal automobile insurance business is highly competitive. The Company's significant competitors are the Berkshire Hathaway insurance group (which includes GEICO), the Bristol West insurance group, the Direct General insurance group, the Infinity insurance group, the Affirmative insurance group, the Progressive insurance group, the Safe Auto insurance group, the Permanent General insurance group, and the AIG insurance group. The Company's primary advertising strategy combines local print media advertising, such as the Yellow Pages(r), with low-cost television and radio advertising. It and its insurance company subsidiaries are regulated by governmental agencies in the states in which it conducts business and by various federal statutes and regulations.