Self-Insurance Fund is Not a 'Reinsurer,' State Appeals Court Affirms

SHREVEPORT, La. - A self-insurance fund's unpaid claims arising from the insolvency of an excess insurer are "covered claims" under the Louisiana Insurance Guaranty Association Act, a Louisiana appellate court has affirmed. Louisiana Safety Association of Timbermen Self Insurers Fund v. Louisiana Insurance Guaranty Association, No. 43,615, La. App., 2nd Cir.).

In a Dec. 3 opinion, the Louisiana Court of Appeal, 2nd Circuit, ruled that the fund is an insurer, not a reinsurer, and therefore its claims are covered under the act.

The Louisiana Safety Association of Timbermen's Self-Insurers Fund is a group self-insurance fund formed in 1991 by the …