company to have the need to tap into funds that have been invested.

CompBlue will ""rent-a captive"" from an existing highly rated insurance carrier which will provide the coverage and strength necessary to get the product to market - under the name of CompBlue. CompBlue essentially purchases the insurance at wholesale and sells it to the public at retail. CompBlue collects the premiums from its customers, pays the wholesale cost to the carrier, and passes the net revenues from the margin on to its investors.

Reserves/Collateral enables CompBlue to write $4.06 in retail policies for every $1.00 in reserves. From the $4.06, $3.00 goes to pay buy the wholesale policy and $1.06 is retained by the LLC for operations and distribution to investors.

Within the framework of the wholesale policy, premiums paid for the coverage (wholesale cost of goods) are used to provide (1) income to the carrier, purchase administrative, infrastructure, and claims processing (approx. 25% of premium); plus re-insurance as required by law (approx. 10% of premium); (2) pay any losses from injuries to covered workers (19%-55%); with the remaining funds (10%-46% of premium) (3) being retained by the ""rent-a-captive"" as additional reserves/collateral for future policies (Retained Captive Earnings).

Each policy issued is collateralized once at inception, with the same collateral in force each year the policy is renewed. For example: $25k collateralizes a $100k policy in year one. That same $25k continues to collateralize it year by year. In 10 years that $25k has collateralized $1mm in premium. The high investor returns come from the power of renewing policies.