GVHR » Topics » AIG Early Release of Loss Fund Collateral

These excerpts taken from the GVHR 10-K filed Mar 16, 2009.

AIG Early Release of Loss Fund Collateral

 

As discussed in “Business - Vendor Relationships - Workers’ Compensation Insurance”, during the fourth quarter of 2008, the Company, AIG CI and CNA, amended their workers’ compensation insurance agreement related to policy years 2000-2002.  The amendment provided for an early release of $26.6 million of loss fund collateral held by AIG CI in January 2009. This return of funds reflects the favorable relationship between the amount of funding held for these policy years, the relative low number of open claims and the maturing values of the estimated future costs for such claims. In addition, during the fourth quarter of 2008, AIG CI agreed to defer $13.9 million of the 2008 loss fund collateral pay-in until after the June 2009 true-up when it will be determined whether or not the payment is required.

 

AIG Early Release of Loss Fund Collateral



 



As discussed in “Business - Vendor Relationships -
Workers’ Compensation Insurance”, during the fourth quarter of 2008, the
Company, AIG CI and CNA, amended their workers’ compensation insurance
agreement related to policy years 2000-2002. 
The amendment provided for an early release of $26.6 million of loss
fund collateral held by AIG CI in January 2009.
This return of
funds reflects the favorable relationship between the amount of funding held
for these policy years, the relative low number of open claims and the maturing
values of the estimated future costs for such claims. In addition, during the
fourth quarter of 2008, AIG CI agreed to defer $13.9 million of the 2008 loss
fund collateral pay-in until after the June 2009 true-up when it will be
determined whether or not the payment is required.



 



AIG Early Release of Loss Fund Collateral



 



As discussed in “Business - Vendor Relationships -
Workers’ Compensation Insurance”, during the fourth quarter of 2008, the
Company, AIG CI and CNA, amended their workers’ compensation insurance
agreement related to policy years 2000-2002. 
The amendment provided for an early release of $26.6 million of loss
fund collateral held by AIG CI in January 2009.
This return of
funds reflects the favorable relationship between the amount of funding held
for these policy years, the relative low number of open claims and the maturing
values of the estimated future costs for such claims. In addition, during the
fourth quarter of 2008, AIG CI agreed to defer $13.9 million of the 2008 loss
fund collateral pay-in until after the June 2009 true-up when it will be
determined whether or not the payment is required.



 



EXCERPTS ON THIS PAGE:

10-K (3 sections)
Mar 16, 2009
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