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Once members understand the
benefits and potential pitfalls of group self-insurance,
BRS can help them begin the formation process.
- Members
must come from similar industries and share
the first two digits of their Standard Industrial
Classification (SIC) code or first three digits
of their North American Industry Classification
System (NAICS) numbers.
- Groups must be
large enough to handle the insurance risks
they are agreeing to cover. They must have
an aggregate net worth of $5 million ($10
million preferred) and average annual consolidated
group net income greater than $500,000.
- The initial core
group members must submit two years of audited
financial statements and affiliate members
must submit one year of reviewed financial
statements.
- Members must agree
to share risk jointly and severally.
- Members must undergo
a feasibility study and submit an operating
plan for approval by the state.
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