Exit Provisions

Participation is designed for multi-year ownership economics; however, for a variety of reasons, Members may elect to exit. There are certain regulatory requirements for Ballast as a member-owned insurance company offering “long-tail” risk coverage—meaning, a claim could arise after the member departs.

Capital treatment on exit

When you leave the program, we hold back only the minimum equity required in your Independent Account as required by our insurance regulators. Investment income earned on your account, and any equity above that regulator-approved minimum, is available for withdrawal. The held-back minimum stays in place only as long as it is needed to support open claims or potential developing losses from your participation years; as those claims settle and close, the remaining balance is released to you.

No additional assessments

Because of the legal segregation of Independent Accounts, a departing member is not subject to additional capital calls or assessments for losses incurred by other members after the exit date.

Practical implications

Prospective members should evaluate participation with a multi-year horizon in mind. The structure prioritizes orderly runoff of liabilities and protection of remaining members over immediate liquidity of equity on departure.