Loss Scenario Money Left Over
Four members contribute a total of $400k to be used to pay for all claims in the shared loss layer.
Initial Loss Layer Contributions
Actual Losses
Member 1: $60k
$20K
Member 1: $40k
$110k Positive Surplus
Member 2: $110k
$30K
Member 2: $80k
$60K
Member 3: $80k
Member 3: $20k
Individual Loss Layer Deficit (reduces return)
$20K
Member 4: $150k
Member 4: $170k
$310,000
$400,000
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