CANCELLATION OF SELF-INSURANCE

TO: EMPLOYERS WHO CANCEL THEIR SELF-INSURANCE PRIVILEGES

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 you have cancelled your self-insurance, you will continue to be responsible for the claims for accidents which occurred while you were self-insured. Therefore, the Georgia Self-Insurers Guaranty Trust Fund and the State Board of Workers’ Compensation will maintain the security presently on file. 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 (2) years after the last claim has been closed. At the time, upon formal request by you, your security can be returned and your file will be closed.

MEMBER INFORMATION UPDATE FORMS

You must continue to complete and submit the form annually until your security has been returned and your file closed.

FINANCIAL STATEMENTS

A complete copy of financial statements for each fiscal year is required of all self-insured employers. You must continue to forward a copy of the financial statements to us until your security has been returned and your file closed.

ASSESSMENTS/PENALTIES

The Georgia Self-Insurers Guaranty Trust Fund will continue assessing employers after self-insurance is cancelled until your security has been returned and your file closed.

CLAIMS AUDITS

You may be required to submit to a claims audit of open and closed workers’ compensation claims, which have dates of injury during the time of self-insurance.

If you have any questions, please feel free to call the Georgia Self-Insurers Guaranty Trust Fund at (404) 872-6148, or the State Board of Workers’ Compensation at (404) 656-4893.