Specific excess insurance protects the KESA fund from any single occurrence.  This coverage applies whether one person or multiple persons are injured in the same occurrence.

KESA's specific excess insurance program consists of two carriers.  The primary excess policy is with ACE American Insurance Company, rated A+, XV by A.M. Best.  The policy has Statutory Limits (unlimited) in excess of a self-insured retention (SIR) of $2,500,000.  The second excess policy is with Lloyd’s of London, rated A, XV by A.M. Best.  This policy provides a layer of coverage with a limit of $1,500,000 in excess of $1,000,000.  This Lloyd's policy effectively reduces KESA's exposure on any occurrence to $1,000,000.  It gives KESA a self-insured retention (SIR) of $1,000,000.

 Example #1:  Occurrence of less than $1,000,000.

One person has a claim with a total payout of $800,000.

KESA pays the entire $800,000, as the total amount falls within our SIR.

Example #2:  Large occurrence less than the ACE policy $2,500,000 SIR.

Three people are injured in the same occurrence, each with a claim of $500,000 for a total of $1,500,000.

KESA pays the first $1,000,000.  The next $500,000 is covered by the Lloyd's policy. 

Example #3:  Large occurrence greater than the ACE policy $2,500,000 SIR.

Forty people are injured in a single occurrence, each with a claim of $100,000 for a total of $4,000,000.

KESA pays the first $1,000,000 (our maximum exposure on a single occurrence).  Lloyd’s pays their policy limit of $1,500,000.  ACE pays the remaining $1,500,000 of the $4,000,000.

KESA’s total exposure is $1,000,000.

Employers' liability:
Self-insured retention (SIR) --$1,000,000
Limits --  $2,000,000 each accident
              $2,000,000 disease-each employee
              $2,000,000 disease-policy limit