Protective Asset Protection made another move this week aimed at helping dealerships during COVID-19.

After rolling out online training this spring, the provider of F&I programs, services and dealer owned warranty company programs announced an update to its retrospective (retro) programs that are designed to assist local dealerships meet the needs of their communities and employees.

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 by 25%.

In addition, the company said 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, according to a company news release.

“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 at Protective Asset Protection.

“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,” Kurtz continued.

Under the structure of a retro program, the company explained 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.

Protective pointed out that operators 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.

For more information about Protective Asset Protection call (800) 323-5771 or visit