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Novus is a stock insurance company owned exclusively by its
insureds. As stockholders, the physician-owners will have the
potential to profit from dividends and will have the right to
elect their Board of Directors. In this way, Bariatric Surgeons
will, for the first time, have an opportunity to benefit financially
from their efforts at quality insurance and loss control.
 The
company will require the investment of capital, which is in
addition to annual premiums it receives. Because Novus will
be a totally physician-owned company, the capital will come
from its physician-members. Each participating insured will
purchase shares of common stock. Every insured will purchase
the same number of shares. The amounts received from the sale
of the shares will provide the company’s initial capitalization.
The amount of the participants’ capital investments
will be determined as part of the company’s financial
feasibility process. The amount of contributed capital will
be established with the intent of providing adequate capital
to support the ongoing operations of the company. The capital
investment will be expressed as a percentage of each participant’s
mature claims-made premium rate. This is a one-time payment,
and will be required to be paid, in cash, at the time of joining
the program.
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