This excerpt taken from the GVHR 8-K filed Dec 30, 2008.
Item 1.01 Entry into Material Definitive Agreement
On December 29, 2008, Gevity HR, Inc. (the “Company”) renewed its workers’ compensation program and related policies with AIG Global Risk Management, acting on behalf of member insurance companies of American International Group (AIG) Commercial Insurance, effective January 1, 2009 for a one-year term. As with the Company’s 2008 workers’ compensation program, the Company shall maintain a $1 million per occurrence deductible and will make regular payments to AIG to cover program costs and estimated future claims costs. Maintenance of the $1 million deductible level, coupled with the Company’s favorable plan experience, results in lower program costs for the 2009 program. The 2009 program includes a reduction in monthly premium payments required to cover claims liabilities in the deductible layer from an annual amount of $56.0 million in 2008 to an annual amount of $39.2 million in 2009. Other premium and administrative expenses for the 2009 program payable monthly to AIG are initially estimated at an annual amount of $12.7 million compared to $16.0 million for the 2008 program. Certain premium amounts are subject to adjustment based upon differences between estimated and actual workers’ compensation wages incurred during 2009 and the resulting changes in manual premium.
The Company intends to file a redacted copy of the AIG binder in its next periodic report along with a request for confidential treatment.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.