Report on Self Insurance Groups
An additional amount that self insurance groups (SIG) members may be required to pay if the money received as contributions and as income from investments is insufficient to adequately fund the SIG for payment of liabilities.
Contribution Like ―premium‖ paid by an insured employer for a given policy year, the
contribution‖ paid by a SIG member is the amount the employer pays into the
SIG in exchange for the SIG’s promise to pay the employer’s liabilities arising in a given program year.
The casual term for money returned to members by a SIG that has more money on hand than required for funding the payment of liabilities, deposits, and operating expenses. Group administrators avoid ―dividend‖ and prefer the formal term used in regulations, ―surplus contributions.‖
California’s term for Program Administrator, the entity that
administers the day-to-day operations of the SIG and possibly the entity that organizes and sets up the SIG. The Group Administrator is one of several key service provider roles. The Group Administrator may also perform other service provider roles unless restricted or prohibited.
Individual Self Insurance
Also called ―Stand Alone Self Insurance‖ (q.v.) or most commonly
Self Insurance,‖ but not including Group Self Insurance.
―Joint Powers Authority‖ is the name for a group of public sector employers engaged in group self insurance.
From an insurer’s perspective, ―loss‖ is the amount paid or payable as benefits in one or more workers’ compensation claims. Alternative meanings should be indicated by an adjective, such as ―underwriting loss,‖ which is an amount by which losses and loss adjustment expenses exceed premiums, or ―net operating loss,‖ which is an amount by which the sum of losses, loss adjustment expenses, and operating expenses exceed the sum of premiums or contributions and investment income.
A type of insurance contract in which an employer, insurance carrier, or SIG which has the initial liability for claims (known as the ceding company) purchases insurance to pay the amount of losses that exceed a stated level, known as the retention or attachment point. ―Specific excess reinsurance‖ is reinsurance where the reinsurer pays the liability on any claim that exceeds the attachment point,