Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-34 - GROUP SELF-INSURANCE FUNDS › Rule 120-2-34-.16 - Specific and Aggregate Excess Insurance Program

Current through Rules and Regulations filed through June 27, 2024
(1) The Fund shall maintain a specific and
				aggregate excess loss funding program acceptable to the Commissioner.
(2) A Fund shall submit a plan for funding
				excess losses which, in the opinion of the Commissioner, provides for stability
				and protection to the Fund members. Any subsequent changes relating to
				coverages, terms and/or conditions of coverage, including loss fund and
				retention level, shall be submitted to the Commissioner for approval shall be
				submitted thirty (30) days prior to their expected use. The Commissioner shall
				approve or disapprove submitted plans within thirty (30) days of receipt. If
				the Commissioner fails to approve or disapprove such plan within thirty (30)
				days, a Fund may use such plan. However, the Commissioner may require a Fund to
				resubmit the Fund's excess loss funding plan upon written request to the Fund
				or the Fund's administrator of record. Upon request, a Fund shall resubmit
				their excess loss funding program to the Commissioner for approval.
(3) The Fund may submit a plan which has been
				developed or reviewed by an actuary who is a Member of the Casualty Actuarial
				Society and a Member of the American Academy of Actuaries. Plans developed or
				reviewed by actuaries may utilize alternative funding techniques including
				pledging of a Fund's unobligated surplus, spread loss programs or other
				programs which, in the opinion of the actuary, shall not unduly jeopardize the
				Fund's stability.
(4) Any plan
				submitted by a Fund to the Commissioner for approval of an excess loss funding
				program which is not supported by detailed actuarial analysis by an actuary who
				is a Member of the Casualty Actuarial Society and a Member of the American
				Academy of Actuaries shall include:
(a)
				Specific Excess insurance with minimum coverage limits of $2,000,000 per
				occurrence or in such greater limits as may be required by the Commissioner in
				order to assure stability of the Fund; and,
(b) Aggregate Excess Insurance with minimum
				annual aggregate coverage limits of $1,000,000 or such greater limits as may be
				required by the Commissioner; and,
(c) An attachment point for the Specific
				Excess Insurance of no greater than $350,000 per occurrence. A Fund may apply
				for such higher attachment points that, in the opinion of the Commissioner,
				will not unduly jeopardize the Fund's stability. If a higher attachment point
				is requested, the application shall be made 30 days in advance of the intended
				change but does not mandate that such change be effectuated. And,
(d) An attachment point for the Aggregate
				Excess Insurance no greater than the Fund's normal annual premium plus
				investment income less the Fund's administrative expenses. A Fund may apply for
				a higher attachment point for the Aggregate Excess Insurance that, in the
				opinion of the Commissioner, will not unduly jeopardize the Fund's stability.
				If a higher attachment point is requested, the application shall be made 30
				days in advance of the intended change but does not mandate that such change be
				effectuated.