Insurance Program

Kalib Loy • December 10, 2025

Insurance-Based Business Enhancement Through Private Trust Architecture

Bluhe Shire Trust is pleased to present a detailed explanation of our Insurance-Based Business Enhancement Program — a private trust-structured, Article I Section 10 contractual arrangement designed to provide institutional-grade business enhancement through asset-backed insurance underwriting. This program is engineered for sophisticated clients, professional entities, and compliant financial operations requiring leverage without debt, equity dilution, or recourse obligations.

This newsletter provides bank-level, attorney-ready details for institutional understanding.

1. Structural Overview of the Insurance Program

The Insurance-Based Enhancement Program is built on the following pillars:

  1. Client-funded insurance underwriting via a minimum $15,000,000 Program Fee.
  2. Trust-supplied Asset — cash, gold, silver, or other approved property — used as the insured underlying asset.
  3. Insurance policy purchased by the Client, which wraps the Trust’s Asset and establishes a maturity-value basis.
  4. Non-Recourse Enhancement — funds delivered to the Client upon insurance approval and underwriting completion.
  5. Enhancement targets up to $150,000,000, subject to insurer valuation and underwriting compliance.
  6. Trust compensation is fully derived from the insurance profit, not from the Client’s business revenue.

No equity dilution. No loan obligations. No operational interference.

2. Legal Foundation Under Article I, Section 10

All agreements are executed as private contracts, protected from statutory impairment.

Under A1S10:

  • Private contracts cannot be impaired by state statute
  • Trust agreements operate outside the public regulatory domain unless voluntarily elected
  • The Trust and Client retain full freedom of contract

This is important for banks because it clarifies:

  • Jurisdiction
  • Enforcement rights
  • Contractual independence
  • ICC arbitration authority

3. Insurance Asset Mechanics

3.1 Trust-Provided Asset

Bluhe Shire Trust provides an insurable asset that meets underwriting requirements. Typical assets include:

  • Cash holdings
  • Allocated gold or silver
  • Certified hard assets
  • Qualified financial property

This asset is not transferred to the Client—rather, it is utilized strictly for insurance underwriting purposes.

3.2 Insurance Policy Structure

The Client purchases an insurance policy naming:

  • Trust Asset → Insured Asset
  • Trust → Beneficial party for profit participation
  • Client → Entity authorized to receive the enhancement

Insurance underwriting may include:

  • Appraisal of Asset
  • Verification of authenticity
  • Risk assessment
  • Compliance and AML review
  • Insurer’s internal risk model

3.3 Enhancement Output

Upon successful underwriting:

  • Enhancement proceeds are issued to the Client
  • Structure is non-recourse
  • No repayment obligations exist
  • Enhancement is typically delivered through institutional channels

4. Compensation Model

Client Receives:

  • 100% of the business enhancement proceeds
  • Fully non-recourse advancement of enhancement value
  • No liens on operations
  • No equity obligations

Bluhe Shire Trust Receives:

  • 100% of the insurance profit, derived from the internal insurance yield, not from the Client’s revenues or operations.

This separation is critical for compliance:

  • The Trust does not monetize or lend funds
  • Profit originates from insurance margin, not financial speculation
  • The Client is not participating in Trust activities

5. Underwriting Timeline & Expectations

The Program’s operational goal is 180 days to enhancement delivery, contingent upon:

  • Insurer’s underwriting
  • AML/KYC clearance
  • Confirmation of Trust-provided Asset
  • Actuarial and valuation analysis

Delays may arise from:

  • Insurer backlog
  • International compliance requirements
  • Third-party verification schedules

6. Risk Considerations For Bank and Legal Teams

Risk is minimal because:

  • The Trust does not extend credit
  • No funds are transferred from the Trust to the Client
  • Enhancement is generated via insurance processes
  • The insurance company carries risk, not the Trust

Bank compliance teams should note:

  • No loan is being issued
  • No debt is created
  • No securities are being sold
  • No equity transfer occurs

7. Uses of Enhancement

Clients commonly use the enhancement for:

  • Project financing
  • Acquisitions
  • Infrastructure development
  • Commercial expansion
  • Capital restructuring

All uses are lawful and determined solely by the Client.

8. Closing Remarks

The Insurance Program is engineered for institutions, corporations, and sophisticated clients seeking non-recourse enhancement without operational compromise. Its compliance profile, trust architecture, contractual protections, and insurance-core mechanics make it an optimal structure for high-value financial strategy.

For legal teams requiring deeper documentation, Bluhe Shire Trust may provide:

  • Structural whitepapers
  • Legal frameworks
  • Underwriting flowcharts
  • Sample contractual addenda