Subscriber Savings Accounts
How it works
Every insurance company requires capital (often referred to as policyholder surplus) in order to prudently manage the risk of the policies issued. However, capital management strategies can vary greatly depending on the insurance company’s ownership model. As part of PURE's unique membership model, PURE may allocate a portion of its total capital to individual members through SSAs. This allocation provides benefits to both PURE and its membership.
Benefits to PURE
The funds held within SSAs remain on PURE’s balance sheet and are available to PURE to meet claim and expense obligations.1 This contributes to PURE’s financial strength and keeps its cost of capital low by reducing the reliance on expensive third-party capital. In addition, SSA allocations can reduce PURE’s taxable income, so they contribute to PURE’s ability to grow its capital in a highly efficient manner.
Benefits to Members
Because these funds remain on PURE’s balance sheet, they help to keep premiums low. They also provide an incentive for PURE to deliver great service to our membership because, in the event you leave PURE, the funds within your SSA at that time (less any premiums owed to PURE) will be returned to you (or your estate in the case of death). After 10 years of membership, you earn PURE Gold status2 and become eligible for annual cash distributions from your SSA.
Frequently asked questions
In a year when an SSA allocation is made, you will receive an email communication with more information in July of the following year. (For example, the 2020 allocation was made in July 2021.)
For the first nine years of membership, you cannot withdraw from it, nor can the balance be used to pay your premium. The funds within it will remain on PURE’s balance sheet to support PURE’s overall claims-paying ability, benefiting the membership as a whole.
After 10 years of membership, you earn PURE Gold status, and in recognition of your loyalty, you will be eligible for annual cash distributions from this account.
Your SSA balance can increase only as the result of future allocations. The balance does not earn interest and you cannot make deposits into this account.
SSA allocations are considered a return of premium so, unless you have a unique circumstance that enabled you to deduct the original cost of your PURE policies from your taxable income, an SSA allocation should not create a taxable event. However, PURE is not a tax advisor and suggests you consult your ﬁnancial planner or tax preparer with questions or for advice.
PURE Gold is a loyalty program recognizing members who have been with us for 10 years or more. These members are eligible for annual cash distribution of up to 20 percent of their total SSA balance. Distributions and their amount are made at the discretion of management (based on the performance of the business in that year,) and require regulatory approval.
To find out when you will earn PURE Gold status, access your account online.
You become a PURE Gold member on December 31 of your 10-year anniversary with PURE. (To find out when you become a PURE Gold member, visit your Profile Settings page in your account.) You will receive an email communication with more information about your distribution in July of the following year.
Distributions and their amount (up to 20 percent of an individual member’s total SSA balance) are not guaranteed. They will be made at the discretion of management based on the performance of the business in that year and require regulatory approval.
Still have questions?
1. The precise handling of SSA’s is subject to PURE’s Subscriber’s Agreement and Power of Attorney, with oversight from the Florida Office of Insurance Regulation. PURE’s operating results depend substantially upon the Company’s loss experience. Actual experience may deviate from expected results due to factors including frequency of losses or multiple large losses.
2. PURE Gold is the marketing name used to refer to Senior Members, a designation given to PURE members (policyholders) who have been a part of the membership for 10 years or more.
3. Since SSAs remain on PURE’s balance sheet and are available to PURE to meet its claim or expense obligations, your SSA balance could decrease in the extreme event that the funds were utilized for that purpose. This unlikely scenario has not happened in PURE’s history, nor do we have any reason to believe that it will occur in the future.