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Besides the premium, what will be the contribution to capital and surplus?

April 26, 2017Capital contribution Premium surplus

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Besides the premium, what will be the contribution to capital and surplus?

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• Typically, each member contributes $36,000 as capitalization. $100 is for a common share of stock and $35,900 is redeemable preference shares. Your company will earn investment income on the $35,900 for the entire period of time they are in the captive. Each member also posts a letter of credit to collateralize any possible assessment in the program, as well as to provide additional capital in the company. The amount of the letter of credit is specified in your proposal.