LD 852
pg. 3
Page 2 of 4 An Act To Promote Alternatives in Group Self-insurance Page 4 of 4
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LR 1734
Item 1

 
paragraph F__may pay funds into the account as an
alternative to obtaining specific reinsurance.__A group
self-insurer who pays into the account shall continue to
make annualized payments into the account for at least 3
years.

 
C.__Only those injuries that occur on or after the date of
first payment to the account by the injured person's group
self-insurer are eligible for coverage pursuant to this
subsection.

 
D.__Payments into the fund must be made as follows:

 
(1)__The first year, payment by each participating
group must be in an amount equal to the average
premium payment for specific excess insurance made by
that group self-insurer for each of the 3 years
immediately preceding the first payment into the
account;

 
(2)__The Superintendent of Insurance may require that
payments for the 2nd and 3rd years be increased by a
maximum of 10% per year over the payment made the
first year; and

 
(3)__The superintendent may require that payments for
the 4th and 5th years be made by all groups in an
amount not to exceed each group's 3rd payment.

 
E.__Claims may be made against the account as follows:

 
(1)__A group self-insurer may make claims against the
account for reimbursement of losses in excess of
$500,000 arising out of one injury; and

 
(2)__A group self-insurer who makes a claim against
the account, commencing with the next anniversary
date of that group self-insurer's participation in
the account, shall pay into the account the lesser
of:

 
(a)__The amount claimed from the account; and

 
(b)__One year's contribution of an amount not to
exceed rates for reinsurance from that same time
period quoted by a reinsurer acceptable to the
Superintendent of Insurance;

 
If one year's contribution is insufficient to fully
reimburse the account for the claim amount, the group
self-insurer shall continue to make annual payments
to the account until the claim amount is repaid to
the account.


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