Formula for Calculation of Self-Insurers' Security
(a) The amount of security annually required by a self-insured employer shall be the greater of the reserves determined by the State Board of Workers' Compensation and the Georgia Self-Insurers Guaranty Trust Fund for all of the employer's outstanding claims, or twice the annual average of the employer's cumulative medical and indemnity benefits paid during the most recent three (3) year calendar period. In no event shall posted security for an actively self-insured employer be less than $250,000.
(b) In the event the employer's financial condition or claims audit, in the sound business judgment of the Board of Trustees of the Georgia Self-Insurers Guaranty Trust Fund and the State Board of Workers' Compensation, justifies a higher security than specified in (a) above, then more security may be required to secure the employer's self-insured workers' compensation obligations in this State. Such higher security requirement may only be appealed based on abuse of discretion by the State Board of Workers' Compensation and the Board of Trustees of the Georgia Self-Insurers Guaranty Trust Fund. However, one (1) year, after posting security in compliance with this rule, an employer may request review of its security requirement based on changed circumstances. The request for security review by an employer may not be made more than once every two (2) calendar years.
(c) In determining the amount of security for a self-insured employer, either the Georgia Self-Insurers Guaranty Trust Fund or the State Board of Workers' Compensation may request the employer to submit to an audit of its workers' compensation claims, both active and closed, and/or its financial condition.
(d) The foregoing provisions shall apply to all self-insured employers, both active and cancelled, for so long as there are any open self-insured workers' compensation claims or the Statute of Limitations for filing said claims has not run.
(e) Security shall be increased or decreased whenever the annual calculation described above results in a discrepancy of twenty percent (20%) or more of the security required. The State Board of Workers' Compensation and the Board of Trustees of the Georgia Self-Insurers Guaranty Trust Fund reserve the right to also review security on a case-by-case basis when justified by a deterioration of the employer's financial condition or claims status.