Committee advances bill raising cap on self-insurers’ guarantee fund and clarifying assessment authority

The Senate Committee on Insurance and Labor voted unanimously to pass House Bill 1015 (LC520978), a proposal sponsors and fund representatives said would raise the statutory cap on the Georgia Self Insurers Guarantee Trust Fund and clarify the board’s authority to assess members if reserves fall.

Senator Kirkpatrick presented the bill on behalf of Representative Werkheiser, describing the fund’s role in the workers’ compensation system for self-insured employers and saying the measure protects employees ‘‘in the event of a bankruptcy.’’

Bobby Potter, speaking for the Guarantee Trust Fund, and Matt Neninga, introduced by Potter as the fund’s executive director, answered committee questions. Potter said, "So the number has been moved from 15 to 25," referring to the statutory cap in millions. Neninga described the fund as a safety net and said the fund currently has roughly 100 active self-insured members and maintains security such as letters of credit and surety bonds for each member.

Committee members asked about how assessments would be used and whether members would be charged additional assessments. Neninga explained members post posted security first and that the pooled fund is used only when posted security proves insufficient. He said the fund averages about “one every couple of years” in member bankruptcies and that some past bankruptcies required use of pooled resources.

A motion to pass the bill was made and seconded; the committee voted unanimously to advance HB 1015 to the Senate floor.