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Independent Account Segregation
In this sectionIndependent Account Segregation
Each member’s capital, premium, and claims sit in a legally separate Independent Account. Rather than pooling everything immediately, a member's premium is proportionally allocated between their individual Independent Account and the collective Group Account.
Independent Account
Your equity contribution, allocated premium, and claims for your years of participation. Legally segregated. Residuals and investment income accrue to you.
Group Account
Shared safety net funded by a portion of all premiums plus Bearing Risk seed capital. Pays after the Independent Account layer is exhausted.
Operational and administrative expenses are paid first from the premium flow. Following expense allocations, distinct reserves are established within the accounts specifically to handle developing claims. Once multi-year underwriting results mature and it can be reasonably determined that surplus and capital stability allow for safe distributions, a portion of the accumulated invested capital and underwriting residual can be systematically returned to participants.
You keep the benefit of your own favorable experience, yet still enjoy the safety net of the broader group. Backup insurance via reinsurance is purchased for the whole program to cover claims above a predetermined threshold.