Cancellation of Self-Insurance
If a self-insured company decides to cancel its self-insurance, it must notify the Georgia Self-Insurers Guaranty Trust Fund or the State Board of Workers' Compensation in writing of its intention to cancel its self-insurance, providing the effective date of the cancellation. Although self-insurance is cancelled, the employer will continue to be responsible for the claims for accidents which occurred while it was self-insured. Therefore, the Georgia Self-Insurers Guaranty Trust Fund will maintain the security presently on file and the employer will continue to be assessed based upon claims for which indemnity was paid. Stated below are the responsibilities of the employer that cancels its self-insurance.
Security: Letters of credit and surety bonds submitted to the State Board of Workers' Compensation or the Georgia Self-Insurers Guaranty Trust Fund will be maintained in our files for at least two years after the last claim is closed. At the time the security is returned, the file will be closed.
Member Information Update Forms: The employer that cancels its self-insurance must continue to complete the Member Information Update Form until its security has been returned and its file is closed.
Audits: A complete original bound copy of the financial statements for each fiscal year is required of all self-insured employers. The employer must continue to forward copies of the financial statements to the Georgia Self-Insurers Guaranty Trust Fund until its file is closed.
Assessments: The Georgia Self-Insurers Guaranty Trust Fund will continue assessing employers after self-insurance is cancelled, while indemnity and medical is being paid on open claims. The year after self-insurance is cancelled, an assessment will be sent to the employer regardless of whether medical or indemnity was paid the previous year.
Claims audits: The employer may be required to submit to a claims audit of the open workers' compensation claims which have dates of injury during the time of the employer's self-insurance.