10 of 20 Every member who is a partnership is required to remain at all times an equity capitalization of not less than: $7,500.00 or an amount equal to the combined deductibles of the errors and omissions insurance and fidelity bond policies, whichever is less. An amount equal to 15% of the broker's total annual premium volume. $5,000.00 or an amount equal to the total of the combined deductibles of the errors and omissions insurance and fidelity bond policies, whichever is greater. An amount sufficient to cover the total of the brokers accounts receivable in excess of ninety (90) days.
10 of 20 Every member who is a partnership is required to remain at all times an equity capitalization of not less than: $7,500.00 or an amount equal to the combined deductibles of the errors and omissions insurance and fidelity bond policies, whichever is less. An amount equal to 15% of the broker's total annual premium volume. $5,000.00 or an amount equal to the total of the combined deductibles of the errors and omissions insurance and fidelity bond policies, whichever is greater. An amount sufficient to cover the total of the brokers accounts receivable in excess of ninety (90) days.
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Transcribed Image Text:10 of 20
Every member who is a partnership is required to remain at
all times an equity capitalization of not less than:
$7,500.00 or an amount equal to the combined deductibles of the errors and
omissions insurance and fidelity bond policies, whichever is less.
An amount equal to 15% of the broker's total annual premium volume.
$5,000.00 or an amount equal to the total of the combined deductibles of the
errors and omissions insurance and fidelity bond policies, whichever is greater.
An amount sufficient to cover the total of the brokers accounts receivable in
excess of ninety (90) days.
Expert Solution
Step 1: Define the term partnership
A partnership is a formal business structure in which two or more individuals or entities collaborate and share the risks, rewards, and obligations of a commercial enterprise. Each partner in a partnership contributes resources to the running of the business, such as capital, skills, or labor. Partnerships are often controlled by a partnership agreement, which describes the partnership's terms and conditions, including profit-sharing arrangements, decision-making processes, and each partner's roles and obligations.
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