Subscriber Savings Accounts (SSAs)

At the end of each year, after accounting for all losses and all expenses, PURE deposits the remaining premium (if any) paid by members into Subscriber Savings Accounts held in the name of each active member.

These deposits are returned to Members if and when they are no longer insured by PURE. Until that time, these funds can be used as surplus to pay losses and help PURE build its financial strength.

The key advantage for PURE and its members is that PURE does not have to pay tax on the "savings" deposited into these accounts; so the balance available as surplus can build much more rapidly than retained earnings in a typical insurance company. Provided members paid their premiums with "after-tax" dollars, there should never be a taxable event for a member either.*

As a point of reference, United Services Automobile Association (USAA) reported that approximately $6 Billion (or more than half of USAA's surplus) was held in Subscriber Savings Accounts at year-end 2005.

* PURE does not provide tax advice. Please consult your tax professional with any questions.