Lumpkin Cnty. v. Georgia Insurers Insolvency Pool

The trial court properly determined that Lumpkin County was not entitled to coverage for pending workers' compensation claims under the Georgia Insurers Insolvency Pool Act, since the County's net worth exceeded $25M.

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Following the trial court’s grant of summary judgment to the Georgia Insurers Insolvency Pool GIIP, Lumpkin County appeals, contending that, following the insolvency of the County’s regular insurer, GIIP is required to step in and cover the pending workers’ compensation claims against the County. Specifically, the County argues that the trial court erred in finding that it is not entitled to coverage under the GIIP because the County’s net worth exceeds $25 million. See O.C.G.A. § 33-36-3 4 G. Alternatively, the County argues O.C.G.A. § 33-36-3 unconstitutionally violates the County’s due process rights. For the reasons set forth below, we affirm.

1. Viewed in the light most favorable to Lumpkin County, the record shows that the County carried workers’ compensation insurance through Southeast U.S. Insurance Company SEUS. At the time of its insolvency on October 27, 2009, SEUS was handling pending workers’ compensation claims against the County. Thereafter, the County submitted the pending claims to GIIP, a legislatively-created nonprofit entity governed by the Georgia Insurers Insolvency Pool Act, O.C.G.A. § 33-36-1, et seq. hereinafter the “Act”. The GIIP is “responsible for the investigation, adjustment, compromise, settlement, and payment of covered claims;1 for the investigation, handling, and denial of noncovered claims; and for the management and investment of funds administered by the pool.” Emphasis added O.C.G.A. § 33-36-2. The Act also provides certain exceptions from GIIP coverage under O.C.G.A. § 33-36-3 4 G, which states in relevant part:

Lumpkin Cnty. v. Georgia Insurers Insolvency Pool

The trial court properly determined that Lumpkin County was not entitled to coverage for pending workers' compensation claims under the Georgia Insurers Insolvency Pool Act, since the County's net worth exceeded $25M.

Share with Email

Thank you for sharing!

Trending Stories

More From ALM

Subscribe to Daily Report