Affinity::Requirements

Requirements

The following provides the Affinity membership with important policies and procedures as it relates to your financial obligations. It's important to note when the obligations are required to be in place to retain your membership in good standing position.

A. Premium Installments

1st Installment due to broker by July 1st
2nd Installment due to broker by October 1st
3rd Installment due to broker by January 1st
4th Installment due to broker by April 1st

*Failure to pay premiums would result in cancellation of coverage.

B. Security Collateral Requirement (either cash or letter of credit)

2/3rds of A Fund Yr. 1
2/3rds of A Fund Yr. 2
2/3rds of A Fund Yr. 3
Maximum 2A for the three most recent underwriting years. Will be adjusted annually up or down after your participation in 3 complete underwriting years.
Letter of Credit is required to be in place within 60 days of inception date for New Members.
Letter of Credit is required to be in place within 60 days of renewal date for all Members.

C. Experience Adjustment (i.e., Claims Indemnification Billings, A Fund Assessment Billing):

Quarterly Billing Dates	Based on Financial Statement Dates
July 1st	December 31st
October 1st	December 31st
January 1st	June 30th
April 1st	June 30th

Adjustments Billings Due Upon Receipt, with finance charges of 1.5% of unpaid balance levied monthly if unpaid after 60 days from billing date.

D. Compliance

All Members must be compliant with all financial requirements by 12/31 of each year or they would be subject to non-renewal the following year. Each member’s situation is reviewed at the January meeting to determine if a non-renewal notice is warranted. Judgment by the executive committee for recommending non-renewal of a member will be based upon the frequency and degree of non-compliance with all of the financial obligations as outlined above.

E. Financial Watch List Factors

Failure to provide updated financial statements annually to Affinity’s independent consultant.
Failure to comply with letter of credit requirements and verbiage.
Consistently late in assessment payments.
Drop below acceptable ratios as determined by Affinity’s independent financial consultant.
Member subject to bankruptcy proceedings.
Members on the Financial Watch list are required to provide updated financial information on a quarterly basis to the independent consultant.

The member will be notified of its inclusion on the financial watch list and the criteria used to make that determination. Failure to make corrective action in a reasonable time period will result in the member being subject to non-renewal.

Membership

Requirements

Responsibilities

Care has been taken to provide accurate and up to date information on this website. However, we cannot guarantee the accuracy, availability or timeliness of this site, and we disclaim all representations and warranties as to this site. All information provided herein is subject to change without notice. The content of this site is provided solely for informational purposes and should not be relied upon or used for any other purpose. Nothing herein constitutes the offer of insurance or membership in our captive. Any such offer can only be made after detailed individual analysis by us and our service providers. We disclaim any and all knowledge of and responsibility for the content of any sites linked to herein and the content of any sites linking to this website.