Surplus Requirements by Portfolio Size

Insurer's Surplus requirements, ${S_N}$, are dollar amounts of highly liquid assets, set aside before issuing policies, to cover the layer of operating losses between PLREs of 0.8500 and $SPLR_{N}$ [i.e. $S_{N}$ = Max(0,($SPLR_{N}$ - 0.8500) * Earned Premiums * Size)]. Table 1 Row 9 shows that $S_{NHI}$ = $S_{B}$ = $0.00 because $\Phi_{NHI}$(0.8500) = $\Phi_{B}$(0.8500) = 1.0000. $S_{PI}$ = $200,000,000 at $SPLR_{PI}$ = 0.9000, $S_{D}$ = $149,736,660 and $S_{E}$ = $56,000,000 because $SPLR_{D}$ = 1.22434 and $SPLR_{D}$ = 2.2500.