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How is the security amount for the Guaranty Association determined? – Alabama Department of Workforce

How is the security amount for the Guaranty Association determined?

The security amount cannot be less than the greater of the following:

  1. The sum total of the two highest years of workers’ compensation insurance premiums paid by the applicant during the preceding three years.
  2.  The sum total of the two highest years of incurred workers’ compensation claims losses during the preceding three years.
  3. The excess insurance retention amount.
  4. $500,000