Stop-loss Insurance
Stop-loss insurance repays your reserve account if your unemployment claims exceed your deductible. Our highly effective claims management service provides our members with the lowest group insurance premiums and deductibles available.
For example: Let’s say your deductible is $20,000 per year. Now suppose next year you have claims of $30,000, which is much higher than usual. The $30,000 would be paid out from your reserve account, and then stop loss insurance would repay your account for $10,000 ($30,000 actual claims - $20,000 deductible = $10,000 stop loss payment).
Stop-loss insurance is not a "standard" coverage offered by insurance companies. In fact, we have been instrumental in its development, and we work closely with our carrier to improve its effectiveness.
The stop-loss coverage year extends from October 1 to September 30 of the following year. To be eligible for coverage, charges must be invoiced by the state for the 12 months of the coverage year and paid in full. Members who join after January 1 must wait until the next stop loss year to begin coverage.
Unemployment claims hit an all time high in 2009, and are expected to remain high for 2010. Stop-loss insurance can help you when you need it most.