Why is a surplus contribution necessary in order to be insured by PROAIR RRG?
A. Under the LRRA a RRG is a member owned insurance company, in which all insureds must be owners and all owners must be insureds. Each new member/insured is required to contribute, in addition to premiums as normally determined, a capital contribution in the first policy year equal to 0.25% of the insured’s aircraft hull value, for which they will receive Common Stock and ownership rights.
