November 2, 2004


RE: Annual Report for 2004

As of October 31, 2004, the Georgia Self-Insurers Guaranty Trust Fund (“Fund”) has continued payment of workers’ compensation benefits, medical expenses, and rehabilitation services to nearly 350 injured workers and their dependents. Approximately $14,570,000 dollars of benefits have been paid to these workers or to their dependents on their behalf. The Fund has recovered over $5,200,000 in reimbursement from the Subsequent Injury Trust Fund, bankruptcy courts, and excess insurance carriers. These funds have been recovered as a result of an aggressive program implemented by the Fund to seek all remedies and relief available to it in mitigation of the cost of servicing the claims of insolvent members.

The Fund consists of approximately 279 active members. This membership figure has remained relatively constant for the last four (4) years after declining from a membership high of 437 companies in 1995. However, a significant firming of the insurance market since September 11, 2001 has resulted in a steady increase in applications for new membership. It appears clear that this trend will continue for the foreseeable future in light of the current insurance climate.

To date, forty-three (43) members of the Fund have become insolvent since 1991. In 24 of these insolvencies, the Fund has been called upon to take over the obligation of the employers. Over 300 of the open claims have been resolved, and we are currently servicing only 48 open matters. Of the 24 bankruptcies, security being held by the Fund was adequate to respond to liabilities in all but ten (10) employer bankruptcies.

As of December 31, 2003, the Self-Insurers Guaranty Trust Fund’s total assets exceed $9 million dollars and reserves for total liabilities are approximately $6 million dollars.

For more information about the Georgia Self-Insurers Guaranty Trust Fund, please visit our website at

The members of the Board of Trustees appreciate your cooperation and participation in the continued operation and funding of this necessary endeavor.


Charles Hipps,
Chairman Board of Trustees