Loss Scenario No Money Left
Actual Losses
Initial Loss Layer Contributions
However, no one pays more!
Member 1 - $45k
Member 1 - $30k
Member 2 - $40k
Member 2 - $50k
Member 3 - $50k
110% Loss Ratio in the layer
Member 3 - $45k
If the entire fund is used by one or more members, there is no money left to distribute.
Member 4 - $75k
Member 4 - $85k
$200,000
$220,000
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