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Capitalization
How GEM is Capitalized
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GEM is capitalized through surplus contributions of its members. GEM members' equity totaled $18,468,803 million as of 12/31/08.
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GEM's membership categories and capitalization requirements
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There are three membership categories: Founding Member, Premiere Member, and Associate Member.
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There are fourteen Founding Members that made capital contributions to GEM prior to October 1, 2003. This membership class is no longer open.
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Premiere Members are those that join GEM after October 1, 2003 and make the required contribution to surplus.
To qualify for Premiere Member status, a pool must meet GEM underwriting standards and contribute capital, the same required by Founding Members. The surplus contribution requirement is 70% of the net written reinsurance premium ceded to GEM. The minimum capital requirement is $500,000, if the formula above produces a lower surplus contribution amount.
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The Associate Member class exists for organizations that meet GEM's underwriting requirements but do not have the financial capacity to make the required surplus contribution to become a Premiere Member.
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