A surplus lines company will typically draft an insurance contract on unusual exposures, like the above, and have the unbridled luxury to offer an insurance policy and a premium rate not subject to insurance department regulation, as licensed primary insurers' policy forms and premium rates are. An example: Guaranteeing the health of Citation, the racehorse. Exposures may be presented to insurance companies on which they are unwilling to offer premium and risk coverage terms. I believe, therefore, that one of the biggest risks in the industry today is the credit risk of the re-insurers. In this scenario, if the primary company issues a $100 million policy and lays off $95 million to a re-insurer, and the reinsurer becomes bankrupt and is unable to fulfill its loss payment obligations, the primary company will be responsible for the loss claim under the policy. Given the capital of the primary insurer, the company may be prepared to retain the first $5 million of the risk and would "shop" the reinsurance market for one, two or even three re-insurers that would accept, for a premium, $95 million in excess of the first $5 million or a quota share of such risk, perhaps 90 percent or 95 percent of each loss on the entire contract. For example, a primary insurer insures an all-risk property contract for $100 million of coverage.