Engagement by the Member’s CEO and executive team with ACIG and the other Members by participating in at least the two main meetings of the year: the Annual Meeting in February and the Autumn Risk Management Workshop in October.
Purchase of common stock in a total amount of $75,000 when the commitment is made (non-refundable).
Purchase of a ten-year, interest-bearing debenture based on approximately 10% of the first-year premiums at the time insurance is placed.
Placement of business for a minimum of three years.
Commitment to achieve a 10% underwriting margin on net premiums to ACIG until capital target is met. ACIG uses retrospective rating plans with three-year terms.
During the fourth, fifth, and sixth years, business must be placed with ACIG or a maintenance fee of 2.5% of the average annual premiums during the 3 previous years of active participation is to be paid.
After six years, there are no further obligations to purchase insurance.
There are penalties for default, primarily a 50% reduction in equity interest.
Members are subject to calls for pro rata capital contributions - although only one capital call has ever been made and that was in 1985.
