§5088. Excess insurance

            A. A risk management organization shall establish and maintain an aggregate loss fund or stop loss provision as part of the excess insurance policy placements in an amount of not more than one million five hundred thousand dollars for each risk underwritten. The trust fund for each risk underwritten shall maintain a cash reserve for each coverage year sufficient to cover payment of the entire aggregate loss fund, as defined in the applicable excess insurance policy or policies for that risk.

            B. Workers' compensation coverage shall provide statutory workers' compensation benefits coverage, including employers' liability coverage with minimum limits of one million dollars.

            C. The provisions of this Section regarding excess insurance shall apply only to self-insurance funds.

            D. Nothing in this Section shall be construed to reduce or limit a participating affiliate or subsidiary of a local housing authority member's rights or obligations with respect to its employees under the provisions of this Chapter.

            E. A risk management organization shall maintain at all times a contract or contracts of specific excess insurance of at least one million dollars per occurrence and a contract of annual aggregate excess insurance of at least two million dollars with respect to general liability claims.

            F. Excess insurance carriers selected by the risk management organization shall have a current A.M. Best rating of A-VII as of the date of commencement of coverage.

            G. The organization shall maintain at all times contracts of excess insurance with respect to all lines of coverage as may be approved by the board of trustees of the organization in such amounts as determined by the board of trustees of the organization.

            Acts 2022, No. 686, §1, eff. June 18, 2022.