Illustrative Member Scenarios

The following scenarios are illustrative only and assume a consistent $250,000 annual Total Premium. They are not quotes, projections, or guarantees. Actual results depend on claims experience, investment returns, program growth, and timing of distributions.

Scenario 1 — Clean Multi-Year Record

Member experiences manageable claims over five consecutive years. Independent Account equity continues to grow with retained underwriting residual and investment income. Distributions are measured. Over a longer horizon the member benefits from residual value that would have been retained by a traditional carrier, while still carrying the multi-year ownership profile of the structure.

Scenario 2 — One Moderate Loss Year

In Year 3 the member incurs a claim that exhausts a meaningful portion of the Independent Account layer but does not reach the Group Account. Subsequent clean years rebuild the Independent Account. The member’s long-term net cost of risk remains lower than the equivalent traditional-market spend because residual value continues to accrue in later years.

Scenario 3 — Exit After Four Years

Member participates for four years and then elects to leave. 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.