A hallmark of United Educators has been its ownership and control by educational institutions. The earnings will be held as capital in the member SSAs. A reciprocal insurer may be either assessable or non-assessable. Following conversion, United Educators will continue to operate as a non-assessable entity, and the liabilities and responsibilities of an existing policyholder will be unchanged. As is the case today, a policyholder will be responsible only for paying its premiums, reimbursing deductibles, and paying any self-insured retentions.
All insurance involves a sharing of risk.
By definition, insurance brings together individuals or organizations to share or pool risks. A non-assessable reciprocal cannot go back and ask its subscribers for additional funds to pay losses. United Educators will remain a limited liability organization that relies on its own assets and reinsurance to pay all claims. United Educators' policy coverages will remained unchanged. By following established procedures, United Educators will preserve the many advantages associated with being a Risk Retention Group under Vermont law.