Rule 120-2-40-.10. Specific and Aggregate Excess Insurance

1. (1) The Agency shall maintain for each of its authorized Funds a specific and aggregate excess loss funding program acceptable to the Commissioner. If a Fund assumes no risk and is fully insured with an insurer licensed in Georgia or upon approval by the Commissioner with an eligible surplus lines insurer, the Commissioner may waive this requirement of a Fund operating for purposes of jointly purchasing group accident, disability, or supplemental medical insurance coverage for the benefit of the Fund's Members.
2. (2) The individual Fund retention for specific and aggregate excess coverage shall be as specified by the Agency Board of Trustees.
3. (3) The specific excess coverage limit for each Fund shall be at least $1,000,000.
4. (4) The aggregate excess coverage limit for each Fund shall be at least $1,000,000. At the discretion of the Commissioner, this requirement may be satisfied through alternative funding techniques including pledging of a Fund's unobligated surplus, spread loss programs or other programs which shall not unduly jeopardize the Fund's stability.
5. (5) The Commissioner may require an Agency to maintain such higher limits for specific and aggregate excess coverage as he deems necessary to afford adequate protection to the Fund members. Upon application, the Commissioner may approve such lower limits as he may determine would not endanger the stability of a Fund.
6. (6) Any policy written in accordance with this Rule shall be for a term of at least one year and shall contain provisions that: (a) cancellation or termination of the policy is not effective except upon sixty (60) days written notice by registered mail to the other party to the policy and to the Commissioner; and (b) the policy is automatically renewable at the expiration of the policy period except upon sixty (60) days written notice by registered mail by the party not renewing the policy, to the other party to the policy and to the Commissioner.

Editor's Note: In accordance with Ga. Laws 1967, p. 618, (Ga. Code Ann., Section 3A-124), the contents of the following Rules are not filed with or published by the Secretary of State; only the name and designation is filed, printed, and distributed. These Regulations are on file in the office of the Comptroller General and are open for public examination and copying. (See Editor's Note, p. 88.03.)

Authority: O.C.G.A. §§ 20-2-2016, 33-2-9; 36-85-16, 50-13-21.

History. Original Rule entitled "Specific and Aggregate Excess Insurance" was filed on April 10, 1987; effective April 30, 1987.

Amended: F. Aug. 4, 2025; eff. Aug. 24, 2025.