Letter to Members of the Georgia Self-Insurers Guaranty Trust Fund Regarding Information Needed on Excess Policies
TO: Members of the Georgia Self-Insurers Guaranty Trust Fund
RE: Specific Excess Workers' Compensation Insurance
DATE: May 23, 2000
This memorandum is being sent to all companies that are self-insured and are members of the Georgia Self-Insurers Guaranty Trust Fund. Because of the number of problems we have detected with the excess insurance policy information that has been supplied to the Fund and the State Board of Workers' Compensation, we are clarifying the requirements for specific excess workers' compensation insurance. PLEASE SHARE THIS MEMO WITH THE INSURANCE COMPANY OR BROKER THAT SUPPLIES YOUR COMPANY WITH EXCESS INSURANCE COVERAGE.
1. Your company is required to purchase specific excess workers' compensation coverage. Proof of this coverage must be sent to the Georgia Self-Insurers Guaranty Trust Fund or the State Board of Workers' Compensation annually.
2. The workers' compensation limits of the policy must be "statutory".
3. The self-insured specific retention amount must be "per accident".
4. All of the items below must be stated on each and every policy, declaration page, or certificate of insurance associated with the policy.
a. The insurance company that issued the policy
b. The effective date of the policy
c. The expiration date of the policy
d. The self-insured specific retention amount of the policy followed by "per accident"
e. The workers' compensation limits of the policy, which must be "statutory".
f. A statement that the policy is a specific excess workers' compensation policy
g. The companies insured by the policy (Exception: It is permissible to state the self-insured's name followed by "and subsidiaries" instead of naming each subsidiary as an insured.
5. The specific excess workers' compensation policy must include an endorsement which states the following:
IN THE EVENT OF THE BANKRUPTCY OR INSOLVENCY OF THE NAMED INSURED: If the Georgia Self-Insurers Guaranty Trust Fund is called upon to expend monies on behalf of the insolvent or bankrupt member insured under this policy in order to pay workers' compensation benefits, medical expenses or other costs pursuant to O.C.G.A. 34-9-1, et seq., we will reimburse the Georgia Self-Insurers Guaranty Trust Fund those amounts according to the terms of the policy. This provision is subject to the policy terms, retention(s) and limit(s). The Georgia Self-Insurers Guaranty Trust Fund will be treated as the insured for purposes of reimbursement pursuant to this endorsement.
If your policy does not comply with the items above, please supply us with a revised endorsement, policy, declaration page or certificate of insurance no later than July 15, 2000.
If you have any questions, please contact us at (404) 872-6184 or the State Board of Workers' Compensation at (404) 656-4893.
Thank you for your cooperation.
John P. Reale