Loss Reserves to Surplus (currently .75:1)

This ratio is used to determine the affect that possible under reserving of losses would have on surplus. We know that we're not under reserved; our annual claims audits and actuarial analysis attest to this fact.

Although it may appear that the Fund has an abundance of surplus, it also is true that health care and medical rehabilitation costs are increasing much faster than the general rate of inflation. We do not have plans to alter our current dividend distribution plan in an effort to empty the Fund's surplus. Our goal always has been stability, and ample surplus is a cornerstone of stability.

A ratio less than 1.5:1 is considered a comfortable margin for possible errors in reserve adequacy and we are well below that.