What premium amount must risks develop over three years to qualify for the program?

To qualify for the program, the premium amount that risks must develop over three years is specifically set at $5,000. This threshold reflects the minimum financial commitment required to allow a risk to be eligible for participation in the program. The aim of establishing a premium cap is likely to create a suitable pool of risks that ensures participants are putting a significant amount of capital at stake, allowing the program to effectively manage and assess the viability of these risks over time.

In contrast, lower premium amounts like $3,000 may not provide sufficient funding or risk spread to engage the program appropriately, while higher amounts such as $10,000 or $15,000 could exceed the intended participation level necessary for risks, potentially limiting access to the program for smaller entities or those with lesser premium allocations. Thus, a premium of $5,000 is strategically chosen to strike a balance, promoting competent participation while ensuring regulatory standards are met.