About The Trust
The Louisiana Home Builders Association General Liability Trust is a separate legal entity from the Louisiana Home Builders Association. Unlike a typical insurance company, the Trust is controlled by a Board of Trustees that are builders and indemnitees of the Trust.
Potential assessments are capped at 50% of the applicable contributions (similar to premium) of members for a particular trust year. The Trust has consistently produced positive incomes each year of its operation since 2003.
The Trust declares all income as payable to the members in the form of dividends. The dividend distributions are paid as determined by the Board. As of 12/31/10, the Trust has an accumulated member distribution payable of $12,238,000 and has paid over $3,200,000 in dividend distributions to date:
The Trust offers limits of $500,000 per occurrence / $1 million aggregate, $1 million per occurrence / $2 million aggregate and $2 million per occurrence / $2 million aggregate. The Trust maintains an agreement with an "A" rated carrier to reimburse the Trust amounts paid over $250,000.
Approved GL Trust agents are able to submit applications to the Trust's third party administrator, Midlands Management, located in Oklahoma City. As Administrator, Midlands implements the declared policies, procedures and directives of the Board and provides for the day-to-day administration of the Trust. Midlands is contracted to do all services including underwriting, issuance of the general liability indemnity agreements, accounting, audit, loss control and claims.