Each private subsidiary or affiliate applicant for a Certificate to Self Insure of an individual private self insurer shall provide an Agreement of Assumption and Guarantee of Liabilities executed by the holding company, ultimate parent corporation, controlling partners, owners, or other controlling entity in accordance with Section 15211.2 of these regulations. If the holding company, ultimate parent corporation, controlling partners, owners, or other controlling entity will not execute the Assumption and Guarantee agreement, the Director may:
(a) Require a deposit level of 200% of the master certificate holder's, subsidiary's or affiliate's estimated future liabilities for the payment of compensation, or higher, in lieu of the Agreement of Assumption and Guarantee of Liabilities; or
(b) Deny the application to self insure by the private applicant.
|Note: Authority cited: Sections 54, 55 and 3702.10, Labor Code. Reference: Sections 59, 3550, 3700, 3701, 3701.5, 3702, 3702.10 and 3705, Labor Code.|
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