Letter to Members of the Georgia Self-Insurers Guaranty Trust Fund 11th Year Annual Report
TO: MEMBERS OF THE GEORGIA SELF-INSURERS GUARANTY TRUST FUND:
RE: Eleventh Year Annual Report
DATE: November 28, 2001
The eleventh year of operation for the Georgia Self-Insurers Guaranty Trust Fund is rapidly coming to an end. The current Board of Trustees consists of the following members: Stan Carter, Chairman (General Motors), John Ross (C.W. Mathews Contracting Company), Charles Hipps (Southwire Company), Jim Young (BellSouth Corporation), Steve Johnson (Wellstar), Sheldon Fram (Bankhead Enterprises), and Dr. Frank McElroy (Presbyterian Homes of Georgia, Inc.).
Thus far, the Georgia Self-Insurers Guaranty Trust Fund, with your support and cooperation has continued payment of workers’ compensation benefits, medical expenses and rehabilitation services to nearly 240 injured workers and their dependents. Approximately $10.6 million dollars of benefits have been paid to these workers or on their behalf. The Georgia Self-Insurers Guaranty Trust Fund has recovered approximately $3.6 million in reimbursement from the Subsequent Injury Trust Fund, Bankruptcy Courts, and excess insurance carriers. These funds have been recovered as the result of an aggressive program implemented by the Self-Insurers Guaranty Trust Fund to seek all remedies and relief available to it in mitigation of the cost of servicing the claims of insolvent members.
At the present time, the Self-Insurers Guaranty Trust Fund consists of 313 active members. This membership figure has remained constant for the last three years after declining from a membership high of 437 companies in 1995. The softening insurance market and declining rates have resulted in some members abandoning their self-insured program in favor of traditional insurance products. However, a significant firming of the insurance market during the last twelve months has resulted in a steady increase in new applications for membership. It appears clear that this trend will continue for the foreseeable future in light of the impact of September 11th on the insurance industry and its rate structure.
To date, twenty members of the Self-Insurers Guaranty Trust Fund have become insolvent since 1991. In 18 of these insolvencies, the Georgia Self-Insurers Guaranty Trust Fund has been called upon to take over the obligations of the employers. Over 220 of the open claims have been resolved and we are currently servicing only 27 open matters. Of the 20 bankruptcies, security being held by the Self-Insurers Guaranty Trust Fund was adequate to respond to liabilities in all but seven employer’s bankruptcies.
At the present time, the Trustees are happy to report that the Self-Insurers Guaranty Trust Fund’s total assets now exceed $8.9 million dollars.
We look forward to 2002 and an improvement in our nation’s business climate. Currently, the cumulative reserves as disclosed by our membership in their annual financial update forms are approximately $279 million dollars. The Trustees continue to evaluate each member’s financial status and loss information on an annual basis in an effort to monitor the Fund’s stability and make recommendations to the State Board of Workers’ Compensation where appropriate regarding security.
The members of the Board of Trustees appreciate your cooperation and participation in the continued operation and funding of this necessary endeavor.
Stan Carter, Chairman
Board of Trustees