Rent-A-Captive Insurance Company Development

Rent-A-Captive Insurance Company Development A Critical Analysis of the Benefits, Risks and  Implications of Creating an Off-shore  Rent-a-Captive Insurance Company in Bermuda. Contents (Jump to) Abstract Chapter 1    Methodology Chapter 2 –   Research Process Chapter 3 – Findings and Evaluation of Findings 3.1 Captive 3.2   Analysis of Benefits, Risks and Implications 3.3 Rent-A-Captive 3.4 Pestle Analysis 3.5 Porter’s Five Forces Abstract The potential for utilizing a rent-a-captive facility in Bermuda represents a method that is a business proposition to examination the risks, benefits and implications of utilizing this as a viable strategy. Inherent in equating any strategy are its suitability, ease of entry and exit as well as costs and weighing these against the learning curve and relative benefits that will accrue in best and worst case scenarios. To reach such a determination, the examination will employ a number of strategic as well as financial tools, along with the advantages and disadvantages of the methodology to determine its viability in a general, specific and overall sense. The use of any business strategy has either direct and or indirect implications which represent variables that must prove their worth in their ability to further the overall aims, objectives and purpose of the entity and to be particularly of benefit in adverse economic conditions and or unforeseen occurances. The preceding tough evaluative climate represents the acid test via which to effectively prove or disprove its potential worth to the enterprise. A ‘captive insurance company’ represents an entity that is set up for the limited purpose by parent insurance companies to finance risks from the main organization and or its subsidiaries (Bawcutt, 1997, pp. 8-9). Rather than representing a new concept, captive insurance companies have been around since the mid 1870s, borne out of ‘protection and indemnity’ clubs of that period which offered marine insurance in coverage of third party liabilities as well as expenses emanating from either operating or owning ships as a principle (Braithwaite and Drahos, 2000, p. 157). The preceding was a result of the passage of the Lord Campbell Act of 1846 (Alabama Law Review, 2004, p. 884), which â€Å"†¦ was enacted by the English Parliament †¦Ã¢â‚¬  and titled the ‘Fatal Accidents Act of 1846’ whose purpose was â€Å"†¦ to alleviate the harsh results †¦Ã¢â‚¬  from either serious injury or death on ships during that period (Alabama Law Review, 2004, p. 884). Claim liability potential was increased as a result of the flood of immigrants traveling to the United States as well as the higher value of cargos and injuries to crew members. The Protection and Liability Clubs pooled resources to cover claims arising from the passage of the act and minimize exposure for the primary insurance carriers such as Lloyd’s of London (Alabama Law Review, 2004, p. 884). Captive insurance companies can be utilized to provide insurance coverage for commercial purposes, as well as industrial and governmental entities to insure either all or part of the risks facing an organization (Geisel, 2004). Captive insurance companies also can be formed as a result of companies that have similar business risks joining together to pool said risks in a cost effective manner to have the needed insurance coverage for these types of areas (Geisel, 2004). The increased growth in this industry segment is a result of the change in the way businesses and organizations see the way to finance their risks as it represents a more flexible approach against potential losses, augmenting catastrophic risk that is covered via conventional means (Sammer, 2001). Critical to the preceding is understanding that insurance represents â€Å"coverage by a contract binding †¦Ã¢â‚¬  one party to â€Å"†¦ indemnify another against specified loss †¦Ã¢â‚¬  as a return for pr emiums paid covering said insurance (Houghton Mifflin, 2006). It, insurance, represents a form of ‘risk management’ that is a hedge against some type of financial loss that has a probable incidence of occurring, thus insurance represents the transfer of this risk from one entity to another as a result of the exchange of premiums calculated based upon the potential of occurrence. The preceding summary will provide an understanding of the purpose and niche regarding captive insurance companies as well as how they fit into the overall realm of the insurance industry represents important background information that is germane to the topic of ‘a critical analysis of the benefits, risks and implications of creating an off-shore rent-a-captive insurance company in Bermuda’. Chapter 1 – Methodology The methodology that will be utilized in this examination will consist of understanding the nuances involved in the process of single parent captives as well as rent-a-captives to determine the subtle and or obvious differences that represent either positive or negative factors which a company would need to be aware of as well as consider to have a full understanding of the process. Inherent in such is the understanding of the legal, business, regulatory, financial, operational and administrative facets of the process and how these impact upon each other in the utilization of a rent-a-captive facility. The preceding represents a broad based understanding as well as in depth with regard to the benefits, risks, implications and related factors. In equating such this examination will employ such tools as Porter’s Five Forces framework, a SWOT analysis, as well as a Pestle Analysis and a discussion of the Balanced Scorecard to aid in reaching a determination of the foregoing. The limitations to the methodology may be in that the tools of analysis are not directly suitable to analyze the process, and or they may be too many business, operational and or industry variables to enable equating if the process is or will be effective in all or most instances. The methodology is limited by the complexity of the problem in that the decision branch tree factor may be too large to adequately cover all of the potential nuances and aspects which might be important. As the basis for the study is the suitability of a certain structure for potential utilization, the methodology is thus simplified into gathering and comparison as a means to uncover the basics and related detail factors which appear in multiple sources. Chapter 2 Research Process The research process will consist of secondary measures utilizing books, journals and online sources to provide a wide cross section of ideas, viewpoints, concepts, theories and practices to ensure that the salient foundational information is based upon the true and actual conditions present. Through a comparative analysis entailing systematic methodologies of collecting, review and analysis of data, the foregoing will provide for such an outcome. Yin (1994) advises that in conducting research, one should seek to equate the positioning of such against real life phenomenon by virtue of gathering a number of viewpoints to reach a balanced understanding. Yin (1994) also adds that the broader the examination, the better will be the grasp of the information and thus conclusions reached. Maxwell (1996) supports Yin’s (1994) approach and cautions that quality is more important than quantity, thus the research process will seek to weed out lesser sources in favor of more established ones through a comparative process. The preceding represents the suggested approach as put forth by Lieberson (1991), as well as King et al (1994). As the subject represents a pragmatic consideration whereby theory is less important, the comparative analysis of sources is easier as the base information should be relatively close, if not identical, depending upon the jurisdictional locale. Said variable renders the research process as relatively straight forward. Chapter 3 – Findings and Evaluation of Findings In examining the subject matter, background information as well as facts, details and information pertaining to the field of captive insurance companies is an important foundation to understanding the benefits of a rent-a-captive as a comparison. The forgoing includes an understanding of the jurisdiction in which the rent-a-captive is located. 3.1 Captive 3.1.1 Bermuda Bermuda’s entrance into the international insurance market got its start in 1947 when it was selected by C.V. Starr â€Å"†¦ as the location for his American International Company, Limited (Bermuda Market Solutions, 2005, p. 3). The captive concept was promulgated by Fred Reiss in the mid 1960s as â€Å"†¦ an insurer owned by a non-insurance parent †¦Ã¢â‚¬  (Bermuda Market Solutions, 2005, p. 3) which was established to finance the insurable exposures of the parent. Bermuda is the global leader in the captive insurance market, growing dramatically during the 1980s as a result of group captives that were created to permit smaller companies to align with those of similar interests to thus gain greater control over their insurance through the pooling of risks (Bermuda Market Solutions, 2005, p. 3). One of the largest of these was the OIL Insurance Ltd. that was formed by petroleum companies in the early 1970’s as a result of difficulties they were facing in the property insurance market. Table 1 – Total Insurance Assets for all International Insured’s (in billions) (Bermuda Market Solutions, 2005, p. 3) Bermuda, is the premier domicile for captive insurance companies as well as rent-a-captives with in excess of 1700 insurers (Lowtax.net, 2004). The captive insurance market has slowed over the last couple of years in contrast to its rapid growth pace of the late 1980s and 1990s with other locales offering similar advantages thus effectively bringing its share of the global market down to approximately one third of all captives from a high of 40% in the mid 1990s (Crombie, 2005). Locations such as the Cayman Islands, British Virgin Islands, Hawaii, Guernsey, and Barbados as well as Dublin, along with an addition 45 other jurisdiction as well as a number of states in the U.S. have slowed Bermuda’s growth and market share as a result (Crombie, 2005). Other factors in this trend have been (Crombie, 2005): the increased popularity of risk retention groups whose small size, in general, does not make them really suitable for location in Bermuda, increased marketing by new jurisdictions such as Hawaii and Vermont which have the advantage of being American states, developments in the varied types of corporate vehicles that are available, notably segregated account companies, and lastly, the ways in which some jurisdictions count their captives, including those that have formed and not removing them once they have been dissolved. Another important consideration is cost. Bermuda is expensive and thus since cost does matter to smaller captives as well as those operating on slimmer margins, there selection of locale takes this facet into account. Bermuda’s client base primarily consists of large U.S., European and South American companies whose presence has been in that location for some time (Crombie, 2005). The cost is offset by Bermuda’s reputation, quality of professional expertise as well as the ease of access thus minimizing the cost variable over the long term as a result of the foregoing and the locale’s stability. Another factor that must be considered with respect to Bermuda’s global positioning in terms of the attraction of new captives is the limited infrastructure on the island for residences, schools and traffic. Bermuda is basically more of an exclusive club which is based upon quality as opposed to quantity (Crombie, 2005). As the third largest insurance local after Ne w York and London, Bermuda’s new business formations in 2004 saw approximately 50% in the form of captives (Lowtax.net, 2004). The country is the number one location for segregated account companies with 83 that include 6,234 cells within cells as compared to 126 protected cell companies in all other locations as of 2003 (Lowtax.net, 2004). Table 2 – Captives by Domicile Year End 2002 (Towers Perrin, 2004) Table 3 – Leading Captive Domiciles (Elliott, 2005) The preceding represents data on captives as of year end 2002, thus accounting for the higher figures indicated above, showing captive numbers for domiciles mentioned as a comparison. 3.1.2 Rent-a-Captive Insurance Companies A rent-a-captive insurance company provides ‘captive’ insurance facilities to other companies for a fee and protects itself from any losses via individual programs that are further isolated from losses via other programs in the same company (Banham, 2001). Banham (2001) provides the analogy of thinking of a rent-a-captive insurance company â€Å"†¦ as a mall of stores †¦Ã¢â‚¬  and each store represents â€Å"†¦ the self insurance program of a particular company†. The rent-a-captive concept represents the fact that a company does not have to go through the procedures and regulations entailed with incorporating its own captive as it is able to lease one instead. The preceding represents a business rationale for creating an off-shore rent-a-captive insurance company, leasing out its existence. The concept of the rent-a-captive provides much of the same benefits that corporate owned captives do in that it provides (Banham, 2001): increased control regarding losses as a result of improved claims management, the ability to derive a profit from underwriting along with investment income from the funds that are set aside for claim reserves, various tax benefits, and avoidance of accounting and audit issues, which are the responsibility of the rent-a-captive sponsor. The advantages of the establishment of a rent-a-captive insurance company depend upon a number of factors on the part of the interested company. These aspects shall be discussed in the analysis of the benefits, risks, and implications of a rent-a-captive. 3.2 Analysis of Benefits, Risks and Implications In equating the reasons, as well as benefits, risks and implications of forming a rent-a-captive it is important to have an understanding of the reasons as to why captives are formed, thus providing an understanding of the benefits of a rent-a-captive. The following represent the foregoing (Elliott, 2005): To reduce and or stabilize cost Generally, the financing of risk under a captive lowers overall cost and aids in stabilizes costs long term as a result of being less susceptible to changes in the insurance market. Examples of cost savings are represented by the fact there is: no profit load, the reduction and or elimination of commissions to brokers, lower costs for administration, the owners in a captive share in all of the earnings through policyholder or shareholder dividends, a captive avoids costly insurance regulations as well as the exclusion of payments into residual market pools and premium taxes, savings in loss – cost is another area as captives serve to increase the awareness of risk management as well as cost awareness among top management. The savings benefits, in general, exceed the expense of both setting up the captive as well as administering it. Increase capacity and provide access to reinsurance A captive can access the capacity of reinsurance markets and might be able to provide more coverage limits than available within the retail market. An example of the preceding is whereby multiple insurers participate in what is termed as a slip to offer millions in added capacity which would not otherwise be available. A ‘slip’ is a binder that often includes more than one insurer. An example of the preceding is provided by Lloyd’s of London whereby the slip is passed from underwriting to underwriter to initial and subscribe to specific parts of a risk (captive.com, 2006). Control One of the reasons for the origin of captives is due to insurance buyers that were tired of the vagaries of the market regarding insurance and looked for more control concerning underwriting, rates, investments and claim settlements. Captives provided them with these benefits. Coverage An advantage of captives is that they can provide coverage to subsidiaries and other firms that might not otherwise be possible or available for such areas as professional liability, certain business risks and punitive damages. Rate and form freedom The benefits of special constructed wording can be written by captives as a guide for reinsurers to follow to thus provide coverage’s for obscure areas. Establishment of better than average claim experience As the claim history for a captive insured may be improved or batter than the overall class of business for an insurer in the commercial category, this aspect makes a sound argument for retention of that risk in this framework as opposed to the broader and poorer claims experience as a whole. Recapture of investment income and to accelerate and or manage cash flow The investment income derived from a captive may be completely or partially retained by the captive as opposed to staying with commercial insurers thus providing revenues that would otherwise be lost. Insurance accounting Special tax treatment accrues to insurance companies, such as tax deductible reserves for claims not paid and in the instance of life insurance reserves no taxes are paid on the internal build up of interest income. Tax deductibility Other tax advantages are possible such as in the case of multiple owners or insured as well as in the cases where the insured and shareholders are not the same. Another area is in the deductibility of premiums along with the deferred taxation of insurance income. Careful consideration of tax benefits need to be investigated prior to adding such advantages to the list of benefits. Perceived safety of formalized services As the books and records of captives are audited along with the claim reserves being under constant review by actuaries, investments managed by professionals and accounts that are maintained by managers that are independent, these services represent checks and balances with so many differing external factors checking the books and accounts that the system has extra measures of safety that in most cases is superior to other means whereby a number of these functions is performed in-house or by the same company. Favorable regulations Many captives are formed offshore to avoid certain unnecessary regulations concerning solvency. However, just as in onshore solvency regulations, offshore captive solvency regulations are designed to protect policyholders. In some instances this regulation is weak in offshore locales, which is not the case for Bermuda as well as the state of Vermont in the United States. Administrative tool for funding retentions In many instances, large organizations create captives to fund differences between their large corporate deductibles or retention and smaller deductibles or retention of its individual business units. Under the captive format the main organization is able to offer fixed cost rates that are above the smaller deductibles and balance the equation of as a result overall larger rate, thus spreading the deductible or retention and achieving savings. Risk management Captives provide the risk manager with more leverage than the annual cost allocation process. Innovative deals Captives can increase the access to certain deals, such as more creative loss portfolio transfers achieved by transferring liabilities from one balance sheet to another. Warehouse data Being in a captive can provide a tool for the collection of better as well as more data in support of its cost management efforts. An example of this is that a captive can be the central repository for what is termed common disability cost management for instances when an organization elects to finance certain employee risk benefits as well as worker compensation risks. Strategic partner support Coverage can be made available by organizations for their various business partners as represented by key suppliers and or customers, as well as independent contractors, etc. when the normal market pricing and or terms are not favorable. The preceding may very well provide tax management as well as profit advantages. Profit In some instances captives are created to underwrite the risks of a customer or to provide third party insurance. Such undertakings can provide and or add value to an organization as a result of tying the customer to the owner. Some of the preceding areas represent clear financial aspects as well as non financial operating areas which can in certain instances turn out to be as important or more important than the financial considerations in creating or utilizing a captive. The understanding of the benefits, advantages and implications of a captive are integral in the discussion of a rent-a-captive in that the reasons and rationales that are found in the former also apply to the latter. As such, a discussion of the structuring of captives is an important aspect to be considered in this context, as such aids in the understanding of a rent-a-captive. There are three primary aspects of captives, the financial, operational and of course personnel. Captive financial resources consist of premiums along with capital and investment income. The premiums and or capital can consist of non-investment instruments such as a letter of credit and these financial resources must be sufficient to accomplish three tasks (Geisel , 2004). First is the facet of financing the legal obligation as part of the insurance and or reinsurance agreements. Secondly, the financial resources must be sufficient to finance a reasonable level attributed to adverse development, and lastly, the financial resources needed to fund the expenses of operating the captive. It is important to understand that captives, as well as rent-a-captives operate in a somewhat similar fashion as traditional insurers. It, the captive, directly issues policies to insured’s, and or reinsurers via a fronting insurance company (Geisel, 2004). It also collects the premiums and pays claims as well as setting reserves aside to pay for legal obligations stemming from its insurance and or reinsurance agreements, and pay for the captive’s operating expenses, and dividends (Geisel, 2004). One of the advantages is that captives usually utilize a captive management company to run the day to day operations, maintain books and serve as the liaison with the regulators and Board of Directors (Towers Perrin, 2004). Captives also can and often do utilize specialty service providers, accountants, legal council and actuaries to aid in the operational aspects thus eliminating the need for finding, retaining, and setting up office space to house these aspects, which represent a considerable cost savings in internal administration. In terms of managing costs, captives have the following benefits and or advantages (Elliott, 2005): Actuarial Bermuda requires an actuarial analysis as an aspect of the feasibility study concerning the area(s) of insurance and or reinsurance being contemplated for setting up a captive. The premiums as well as losses are thus based upon this information and when the actuarial review has established a level of confidence in these figures, the captive will thus make a better impression on regulators, tax advisors and reinsurers. Bermuda requires ongoing actuarial analysis. Expenses In most circumstances a captive should be able to operate in a more efficient manner than commercial insurance companies. The captive’s expenses should be in the area of below twenty percent of premiums, unless loss control dictates a higher ratio. Investment It is a general practice among captives to set premiums to reflect the time value of cash in the assumption that the investment returns will closely approximate the amortization of the premium discount over time. The captive investment policy should thus be in keeping with the assumptions that are utilized to set premiums. 3.3 Rent-A-Captive The foregoing analysis and details concerning captive insurance companies provides the needed foundational and structural information to better understand the nature of the entity and thus the implications, benefits and other facets associated with electing to utilize a rent-a-captive format. Given the preceding, the reasons and rationales for electing to choose a rent-a-captive format takes on increased meaning. Rent-a-captives represent the fastest growing segment of the captive category and the indications are that they will continue this trend and become even more broadly utilized in the future (International Risk Management Institute, 2004). Large corporations usually establish a captive to aid in the underwriting of its risk as well as to assume portions of its losses based upon the prospect of making or deriving a profit from these operations (Elliott, 2005). In essence, the corporation enters the business of insurance in an attempt to gain control over its losses as well as t o lower the cost of its insurance as a result of deriving a return of profit from underwriting and or investment income. Smaller companies lacking the financial resources to cover the costs of setting up and meeting requirements for a captive can derive much the same benefits through renting a captive as the alternative to receiving the indicated benefits from their insurance program(s). Rent-a-captive insurance companies are in general funded, created and â€Å"†¦ rented by insurers, brokers or groups of affiliated businesses† (International Risk Management Institute, 2004). The determination as to whether a rent-a-captive represents a viable as well as sound proposition is dependent upon a number of facets that can be summarized as follows (Geisel, 2004): size of the company considering utilizing a captive, or rent-a-captive, the amount of losses it ha

Essay --

The Time Is Now To Remove Advanced Practice Registered Nurse Scope of Practice Barriers As Americans enter into the dawn of the Affordable Care Act of 2014; and the open enrollment period has begun to allow access to the Health Insurance Marketplace as part of the U.S. healthcare reform 32 million Americans are expected to become newly insured. It is now the time that Advanced Practice Registered Nurse (APRNs) scope of practice barriers is abolished to allow APRNs the right to practice within the full extent of their education and training. APRNs include nurse practitioners; certified nurse midwives, certified registered nurse anesthetists, and clinical nurse specialists (Luterek, 2013). The Institute of Medicine (IOM) has encouraged the removal of the APRN scope of practice barriers, to legally permit the unrestricted ability to practice within the full degree of their education and training. The IOM noted that as millions of Americans are predicted to access healthcare services under the federal Affordable Care Act, APRNs should be in the forefront to provide that car e (ANA, 2011). Not surprisingly, Nurse Practitioners (NPs) have been providing exceptional health care since 1965 (NPWH). Today, over 125 thousand NPs practice nationwide (NPWH), and see greater than 600 million patient visits each year (ANA, 2011, p. 1). They are legally authorized to practice in all 50 states. NPs are regulated through their state's nurse practice act. They undergo extensive training and national board certification within a population specialty such as family, adult, gerontology, pediatrics, neonatal, acute care, women's health or psychiatric health demonstrating their expert knowledge and continued competence (NPWH). The national shortage of p... ...ope of Practice Barriers for Illinois Advanced Practice Nurses. Health and Medicine Policy Research Group. Chicago: Health and Medicine Policy Research Group. Retrieved February 8, 2014, from http://hmprg.org/assets/root/PDFs/2013/01/Nurse-Practice-Act-Position-Paper-Final.pdf NPWH. (n.d.). NP Facts. Retrieved February 10, 2014, from Nurse Practitioners in Women's Health Caring for Women: http://www.npwh.org/i4a/pages/index.cfm?pageid=3339 RWJF. (2013). Putting the Skills, Knowledge, and Experience of APRNs to Full Use Latest Charting Nursing's Future brief focuses on barriers to practice and how some institutions are overcoming them. Robert Wood Johnson Foundation. Robert Wood Johnson Foundation. Retrieved February 10, 2014, from http://www.rwjf.org/en/about-rwjf/newsroom/newsroom-content/2013/07/putting-the-skills--knowledge--and-experience-of-aprns-to-full-u.html

Pepsi Lipton

BRISK ® CASE STUDY Overview Customer Profile The Pepsi-Lipton Partnership is a joint endeavor between two major brands, Pepsi-Cola North America and Unilever. This entity is responsible for the Canadian promotions of Lipton, one of the leading beverages in the global market. Business Situation The company launched an entirely new Brisk ® Ready-to-Drink Iced Tea early last year. The brand recognized the emerging presence of a new media segment and required assistance in exploring the potential of direct-client communication using Mobile and Web technology.Addictive Mobile Corp. Solution Addictive Mobile Corp. combined marketing savvy with their licensed technology to design and power a Txt 2 Win Contest campaign, â€Å"Beat the Blues with Brisk ®Ã¢â‚¬ . The promotion incorporated both web and mobile mediums to enhance customer experience. 1 Benefits Brisk ® gained the ability to offer contestants premium web and mobile content while providing an amusing, interactive and inst antaneous entry method.Coke and PepsiThis trend setting use of wireless technologies created a consumer buzz while allowing the brand to track promotional results in real-time. PROFESSIONAL SOLUTION Traditional media assisted in forming initial contest awareness with high school party announcements, beverage cooler stickers and high traffic website banners. Consumers were informed they could enter the Brisk ® contest for chances to win a grand prize and one of the weekly draws, 1001 prizes in all. Participants sent an SMS message to the short code 27475 (BRISK) to automatically opt-in to the contest.Through a wireless dialog, the consumer learned they could gain an extra ballot each time they sent the text message â€Å"PLAY† once a day. Technology integration allowed entrants to send free SMS text messages to their friends from the website, www. brisk. ca. Selected participants were sent a winning code via text message and instructed to go online for prize redemption. 2 RE SULTS AMC’s mobile technology, compatible with all mobile carriers, permitted a wireless pathway for participation in the â€Å"Beat the Blues with Brisk ®Ã¢â‚¬  contest.There was a total of 50,000 entries (two months), fully automated, including selection and prize redemption. During the promotion, a 9% spike in sales was noticed, an average of 100 new members signed up each day while website traffic increased to 1. 7 million hits. Brisk ® now has a database of over 6,000 opt-in members, indispensable market research to compare and analyze. Brand affinity was strengthened through an engaging and personal method directed towards consumer identification. All within in a two months campaign. 3 Pepsi Lipton BRISK ® CASE STUDY Overview Customer Profile The Pepsi-Lipton Partnership is a joint endeavor between two major brands, Pepsi-Cola North America and Unilever. This entity is responsible for the Canadian promotions of Lipton, one of the leading beverages in the global market. Business Situation The company launched an entirely new Brisk ® Ready-to-Drink Iced Tea early last year. The brand recognized the emerging presence of a new media segment and required assistance in exploring the potential of direct-client communication using Mobile and Web technology.Addictive Mobile Corp. Solution Addictive Mobile Corp. combined marketing savvy with their licensed technology to design and power a Txt 2 Win Contest campaign, â€Å"Beat the Blues with Brisk ®Ã¢â‚¬ . The promotion incorporated both web and mobile mediums to enhance customer experience. 1 Benefits Brisk ® gained the ability to offer contestants premium web and mobile content while providing an amusing, interactive and inst antaneous entry method.Coke and PepsiThis trend setting use of wireless technologies created a consumer buzz while allowing the brand to track promotional results in real-time. PROFESSIONAL SOLUTION Traditional media assisted in forming initial contest awareness with high school party announcements, beverage cooler stickers and high traffic website banners. Consumers were informed they could enter the Brisk ® contest for chances to win a grand prize and one of the weekly draws, 1001 prizes in all. Participants sent an SMS message to the short code 27475 (BRISK) to automatically opt-in to the contest.Through a wireless dialog, the consumer learned they could gain an extra ballot each time they sent the text message â€Å"PLAY† once a day. Technology integration allowed entrants to send free SMS text messages to their friends from the website, www. brisk. ca. Selected participants were sent a winning code via text message and instructed to go online for prize redemption. 2 RE SULTS AMC’s mobile technology, compatible with all mobile carriers, permitted a wireless pathway for participation in the â€Å"Beat the Blues with Brisk ®Ã¢â‚¬  contest.There was a total of 50,000 entries (two months), fully automated, including selection and prize redemption. During the promotion, a 9% spike in sales was noticed, an average of 100 new members signed up each day while website traffic increased to 1. 7 million hits. Brisk ® now has a database of over 6,000 opt-in members, indispensable market research to compare and analyze. Brand affinity was strengthened through an engaging and personal method directed towards consumer identification. All within in a two months campaign. 3

Sentence Structure Chart All 13 English Tenses

Learning English verb tenses can be challenging for non-native speakers because there are so many rules to remember. By using a chart, you can simplify the task of learning all 13 tenses by breaking them down into different sentence structures. The following tips will also help you improve your English skills as you practice tenses. Change Auxiliary Verbs Remember that each tense changes in the auxiliary verb, rather than the main verb. The main verb is either in its simple form (do/did, play/played, make/made), the  present participle  (going, playing, watching, eating) or the past participle (had, done, thought, etc.). I am watching TV right now.You are watching TV right now.He is watching TV right now. Be Careful with Present Simple and Past Simple Positive The only tenses that do not take an  auxiliary verb  are the present simple and past simple. She teaches Russian on Tuesdays.They played soccer yesterday. Use Time Expressions In order to choose the correct tense, make sure to check the time expressions used before you conjugate. You need to know when something happens before you can decide which tense to use.  In this first example, right  now implies the  present continuous tense. Were learning English right now. ​ In the second example, the phrase for three years indicates duration of time in  the present perfect tense. He has lived in New York for three years. Keep Verbs Together Keep the auxiliary and main verb  together in positive and negative sentences. The only word that should ever come between the auxiliary and main verb is in a question (the subject) and adverbs of frequency. She has worked her for a long time.Peter didnt understand the question. Exceptions: What were they doing at 7 p.m.?He hasnt often traveled abroad.   Differences Between Action and Stative Verbs Only action verbs are used in continuous and perfect continuous tenses. Stative verbs, verbs that state how something is or appears, are not used in the continuous and perfect continuous tenses. In the first example, the verb playing indicates action. They are playing tennis at the moment. In this second example, want implies a state of being (not wanting). They want to play tennis at the moment.   Learn Tense Types There are four types of tenses: simple, continuous, perfect, and perfect continuous. Its helpful to learn groups of tenses together based on the principal function of each type. Heres an overview: Simple tenses focus on complete events.Continuous tenses focus on action at a specific moment in time and cannot be used with stative verbs.Perfect tenses focus on what has been completed from one time to another.Perfect continuous tenses focus on how long something has been happening from one time to another.   Check Your Understanding   Decide whether the following statements about tenses in English are true or false.   Each English tense  has an  auxiliary verb.Positive, negative, and questions always include an auxiliary verb.Continuous tenses focus on completed events.Its possible to place an adverb of frequency such as usually between the auxiliary and main verb.Perfect tenses focus on an action or a state that begins at  one point in time and continues to the next.Perfect continuous tenses focus on how long an action or continues from one point to the next. Answers True: All tenses in English have an auxiliary verb. However, auxiliary verbs are dropped in the positive form of the present simple and past simple.False: Drop auxiliary verbs in present simple and past simple positive sentences.False: Continuous tenses focus on actions happening at a specific moment in time.True: Its possible to place adverbs of frequency between the auxiliary and main verb.True: Perfect tenses focus on events and states over periods of time.False: Stative verbs are not used in continuous forms.  Ã‚   Tense Tables Need more review? These tables outline the positive,  negative, and question forms of the 13 verb tenses. Positive Forms Tense Subject Helping Verb Main Verb (String) Objects / Time / Place Present Simple I - eat breakfast at 8 in the morning. You - eat breakfast at 8 in the morning. He - eats breakfast at 8 in the morning. She - eats breakfast at 8 in the morning. It - eats breakfast at 8 in the morning. We - eat breakfast at 8 in the morning. You - eat breakfast at 8 in the morning. They - eat breakfast at 8 in the morning. Present Continuous I am learning English online right now. You are learning English online right now. He is learning English online right now. She is learning English online right now. It is learning English online right now. We are learning English online right now. You are learning English online right now. They are learning English online right now. Past Simple I - went to the store yesterday. You - went to the store yesterday. He - went to the store yesterday. She - went to the store yesterday. It - went to the store yesterday. We - went to the store yesterday. You - went to the store yesterday. They - went to the store yesterday. Past Continuous I was cooking dinner when you came home yesterday. You were cooking dinner when you came home yesterday. He was cooking dinner when you came home yesterday. She was cooking dinner when you came home yesterday. It was cooking dinner when you came home yesterday. We were cooking dinner when you came home yesterday. You were cooking dinner when you came home yesterday. They were cooking dinner when you came home yesterday. Future with Will I will come to class tomorrow You will come to class tomorrow He will come to class tomorrow She will come to class tomorrow It will come to class tomorrow We will come to class tomorrow You will come to class tomorrow They will come to class tomorrow Future with Going to I am going to fly to New York next week. You are going to fly to New York next week. He is going to fly to New York next week. She is going to fly to New York next week. It is going to fly to New York next week. We are going to fly to New York next week. You are going to fly to New York next week. They are going to fly to New York next week. Future Continuous I will be working at 5 pm tomorrow evening. You will be working at 5 pm tomorrow evening. He will be working at 5 pm tomorrow evening. She will be working at 5 pm tomorrow evening. It will be working at 5 pm tomorrow evening. We will be working at 5 pm tomorrow evening. You will be working at 5 pm tomorrow evening. They will be working at 5 pm tomorrow evening. Present Perfect I have taught English for many years. You have taught English for many years. He has taught English for many years. She has taught English for many years. It has taught English for many years. We have taught English for many years. You have taught English for many years. They have taught English for many years. Present Perfect Continuous I have been watching TV for three hours. You have been watching TV for three hours. He has been watching TV for three hours. She has been watching TV for three hours. It has been watching TV for three hours. We have been watching TV for three hours. You have been watching TV for three hours. They have been watching TV for three hours. Past Perfect I had eaten lunch before you came home yesterday. You had eaten lunch before you came home yesterday. He had eaten lunch before you came home yesterday. She had eaten lunch before you came home yesterday. It had eaten lunch before you came home yesterday. We had eaten lunch before you came home yesterday. You had eaten lunch before you came home yesterday. They had eaten lunch before you came home yesterday. Past Perfect Continuous I had been working for three hours before he arrived. You had been working for three hours before he arrived. He had been working for three hours before he arrived. She had been working for three hours before he arrived. It had been working for three hours before he arrived. We had been working for three hours before he arrived. You had been working for three hours before he arrived. They had been working for three hours before he arrived. Future Perfect I will have finished the report by three o'clock tomorrow afternoon. You will have finished the report by three o'clock tomorrow afternoon. He will have finished the report by three o'clock tomorrow afternoon. She will have finished the report by three o'clock tomorrow afternoon. It will have finished the report by three o'clock tomorrow afternoon. We will have finished the report by three o'clock tomorrow afternoon. You will have finished the report by three o'clock tomorrow afternoon. They will have finished the report by three o'clock tomorrow afternoon. Future Perfect Continuous I will have been studying English for five hours by four o'clock this afternoon. You will have been studying English for five hours by four o'clock this afternoon. He will have been studying English for five hours by four o'clock this afternoon. She will have been studying English for five hours by four o'clock this afternoon. It will have been studying English for five hours by four o'clock this afternoon. We will have been studying English for five hours by four o'clock this afternoon. You will have been studying English for five hours by four o'clock this afternoon. They will have been studying English for five hours by four o'clock this afternoon. Negative Forms Tense Subject Helping Verb + Not Main Verb (String) Objects / Time / Place Present Simple I don't visit my friends every day. You don't visit my friends every day. He doesn't visit my friends every day. She doesn't visit my friends every day. It doesn't visit my friends every day. We don't visit my friends every day. You don't visit my friends every day. They don't visit my friends every day. Present Continuous I am not studying math at the moment. You aren't studying math at the moment. He isn't studying math at the moment. She isn't studying math at the moment. It isn't studying math at the moment. We aren't studying math at the moment. You aren't studying math at the moment. They aren't studying math at the moment. Past Simple I didn't play soccer last week. You didn't play soccer last week. He didn't play soccer last week. She didn't play soccer last week. It didn't play soccer last week. We didn't play soccer last week. You didn't play soccer last week. They didn't play soccer last week. Future with Will I won't cook dinner tomorrow. You won't cook dinner tomorrow. He won't cook dinner tomorrow. She won't cook dinner tomorrow. It won't cook dinner tomorrow. We won't cook dinner tomorrow. You won't cook dinner tomorrow. They won't cook dinner tomorrow. Future with Going to I am not going to fly to Chicago next week. You aren't going to fly to Chicago next week. He isn't going to fly to Chicago next week. She isn't going to fly to Chicago next week. It isn't going to fly to Chicago next week. We aren't going to fly to Chicago next week. You aren't going to fly to Chicago next week. They aren't going to fly to Chicago next week. Future Continuous I won't be sitting at a computer next week at this time. You won't be sitting at a computer next week at this time. He won't be sitting at a computer next week at this time. She won't be sitting at a computer next week at this time. It won't be sitting at a computer next week at this time. We won't be sitting at a computer next week at this time. You won't be sitting at a computer next week at this time. They won't be sitting at a computer next week at this time. Present Perfect I haven't seen Tom since 2008. You haven't seen Tom since 2008. He hasn't seen Tom since 2008. She hasn't seen Tom since 2008. It hasn't seen Tom since 2008. We haven't seen Tom since 2008. You haven't seen Tom since 2008. They haven't seen Tom since 2008. Present Perfect Continuous I haven't been studying for very long. You haven't been studying for very long. He hasn't been studying for very long. She hasn't been studying for very long. It hasn't been studying for very long. We haven't been studying for very long. You haven't been studying for very long. They haven't been studying for very long. Past Perfect I hadn't eaten lunch before I arrived. You hadn't eaten lunch before I arrived. He hadn't eaten lunch before I arrived. She hadn't eaten lunch before I arrived. It hadn't eaten lunch before I arrived. We hadn't eaten lunch before I arrived. You hadn't eaten lunch before I arrived. They hadn't eaten lunch before I arrived. Past Perfect Continuous I hadn't been sleeping very long when I woke him. You hadn't been sleeping very long when I woke him. He hadn't been sleeping very long when I woke him. She hadn't been sleeping very long when I woke him. It hadn't been sleeping very long when I woke him. We hadn't been sleeping very long when I woke him. You hadn't been sleeping very long when I woke him. They hadn't been sleeping very long when I woke him. Future Perfect I won't have prepared the report by Friday. You won't have prepared the report by Friday. He won't have prepared the report by Friday. She won't have prepared the report by Friday. It won't have prepared the report by Friday. We won't have prepared the report by Friday. You won't have prepared the report by Friday. They won't have prepared the report by Friday. Future Perfect Continuous I won't have been driving for very long this time tomorrow. You won't have been driving for very long this time tomorrow. He won't have been driving for very long this time tomorrow. She won't have been driving for very long this time tomorrow. It won't have been driving for very long this time tomorrow. We won't have been driving for very long this time tomorrow. You won't have been driving for very long this time tomorrow. They won't have been driving for very long this time tomorrow. Question Forms Tense Question Word Helping Verb Subject Main Verb (String) Objects / Time / Place? Present Simple How often do I eat dinner in a restaurant? How often do you eat dinner in a restaurant? How often does he eat dinner in a restaurant? How often does she eat dinner in a restaurant? How often does it eat dinner in a restaurant? How often do we eat dinner in a restaurant? How often do you eat dinner in a restaurant? How often do they eat dinner in a restaurant? Present Continuous What am I doing right now? What are you doing right now? What is he doing right now? What is she doing right now? What is it doing right now? What are we doing right now? What are you doing right now? What are they doing right now? Past Simple Where did I go last week? Where did you go last week? Where did he go last week? Where did she go last week? Where did it go last week? Where did we go last week? Where did you go last week? Where did they go last week? Future with Will When will I help me with my homework tomorrow? When will you help me with my homework tomorrow? When will he help me with my homework tomorrow? When will she help me with my homework tomorrow? When will it help me with my homework tomorrow? When will we help me with my homework tomorrow? When will you help me with my homework tomorrow? When will they help me with my homework tomorrow? Future with Going to Where am I going to stay in New York next week? Where are you going to stay in New York next week? Where is he going to stay in New York next week? Where is she going to stay in New York next week? Where is it going to stay in New York next week? Where are we going to stay in New York next week? Where are you going to stay in New York next week? Where are they going to stay in New York next week? Future Continuous Where will I be staying tomorrow night? Where will you be staying tomorrow night? Where will he be staying tomorrow night? Where will she be staying tomorrow night? Where will it be staying tomorrow night? Where will we be staying tomorrow night? Where will you be staying tomorrow night? Where will they be staying tomorrow night? Present Perfect How long have I lived in your current house? How long have you lived in your current house? How long has he lived in your current house? How long has she lived in your current house? How long has it lived in your current house? How long have we lived in your current house? How long have you lived in your current house? How long have they lived in your current house? Present Perfect Continuous How long have I been studying today? How long have you been studying today? How long has he been studying today? How long has she been studying today? How long has it been studying today? How long have we been studying today? How long have you been studying today? How long have they been studying today? Past Perfect Where had I eaten lunch before I arrived this afternoon? Where had you eaten lunch before I arrived this afternoon? Where had he eaten lunch before I arrived this afternoon? Where had she eaten lunch before I arrived this afternoon? Where had it eaten lunch before I arrived this afternoon? Where had we eaten lunch before I arrived this afternoon? Where had you eaten lunch before I arrived this afternoon? Where had they eaten lunch before I arrived this afternoon? Past Perfect Continuous How long had I been working before Tom telephoned yesterday? How long had you been working before Tom telephoned yesterday? How long had he been working before Tom telephoned yesterday? How long had she been working before Tom telephoned yesterday? How long had it been working before Tom telephoned yesterday? How long had we been working before Tom telephoned yesterday? How long had you been working before Tom telephoned yesterday? How long had they been working before Tom telephoned yesterday? Future Perfect How many books will I have finished by the end of next year? How many books will you have finished by the end of next year? How many books will he have finished by the end of next year? How many books will she have finished by the end of next year? How many books will it have finished by the end of next year? How many books will we have finished by the end of next year? How many books will you have finished by the end of next year? How many books will they have finished by the end of next year? Future Perfect Continuous How long will I have been working by the end of the day? How long will you have been working by the end of the day? How long will he have been working by the end of the day? How long will she have been working by the end of the day? How long will it have been working by the end of the day? How long will we have been working by the end of the day? How long will you have been working by the end of the day? How long will they have been working by the end of the day?