Surplus Contributions

Surplus is the capital that insurance companies keep on hand to pay losses that may arise from unforeseen events. Most successful stock insurance companies build surplus through the retention of after-tax profits - driven in large part by the premiums paid by policyholders. Most new insurance companies are funded by, and managed for the profit of, outside investors.

PURE aims to keep its insurance premiums low. Accordingly, PURE members are required to make an annual surplus contribution in each of their first five years of membership. Surplus contributions are equal to 10% of their annual High Value Homeowners and Personal Watercraft premium and 4% of annual premium for all other lines of business.

While members should have no expectation of its return, surplus contributions enable PURE members to benefit over time through a combination of lower premiums, future dividends and deposits into Subscribers Savings Accounts.