Funding for losses is set by the captive’s independent actuary, Pinnacle Actuarial Services. Over a period of time (three to five years), the captive pay-in premium should decrease if losses are less than the amount being funded for. Conversely, if losses exceed funding, the premium will need to be increased. If a dividend is declared by the Board of Directors, it may be used to offset premium in the year it is declared, or returned to the shareholder. It is the Board’s decision.