|SB1805 Engrossed||- 2 -||LRB099 09021 MLM 29204 b|
agreement for the express purpose of securing the
policyholder's obligation under a large deductible
agreement, provided that if the assets are held by the
insurer those assets are not commingled with the
insurer's other assets; and
(2) limit the size of the policyholder's obligations
under a large deductible agreement to 20% of the total net
worth of the policyholder at each policy inception, as
determined by an audited financial statement as of the most
recently available fiscal year end.
(b) As used in this Section, "insurer" means any insurer
authorized to issue a workers' compensation policy covering
risks located in this State that has an A.M. Best Company
rating below "A-" and does not have at least $200,000,000 in
(c) As used in this Section, "large deductible agreement"
means any combination of one or more policies, endorsements,
contracts, or security agreements which provide for the
policyholder to bear the risk of loss of a specified amount per
claim or occurrence covered under a policy of workers'
compensation insurance and which may be subject to the
aggregate limit of policyholder reimbursement obligations.
(d) Except when approved by the Director of Insurance, any
insurer determined to be in a financially hazardous condition
pursuant to Article XII 1/2 or XIII of this Code by the
Director of Insurance in this State or the equivalent in any