Chapter 8. Office of the Director
Subchapter 2. Administration of Self-Insurance Plans
Article 2. Certificate to Self Insure

§15203.1. Agreement of Assumption and Guarantee of Subsidiary's or Affiliate's Liabilities.

(a) Each private subsidiary or affiliate applicant for a Certificate to Self Insure shall provide an Agreement of Assumption and Guarantee of Liabilities executed by the parent company, general partners, or owners having controlling ownership in accordance with Section 15211.2 of these regulations.

If the parent entity, general partner(s), or owners having controlling ownership will not execute the Assumption and Guarantee agreement, the Director may:

(1) 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

(2) Deny the application to self insure by the private applicant.

(b) Private group self insurers shall provide an individual Agreement of Assumption and Guarantee of Liabilities of Workers' Compensation Liabilities For Group Members for each group member or a single agreement listing all group members and all subsidiary or affiliates of each group member executed by the group administrator of the group applicant. If the group self insurer or group applicant will not execute the Agreement of Assumption and Guarantee of Liabilities of Workers' Compensation Liabilities For Group Members for each group member, the Director:

(1) may require a deposit level of 200% of the group self insurer's estimated future liabilities for the payment of compensation, or higher, in lieu of the Agreement of Assumption and Guarantee of Liabilities; or

(2) may deny the application to self insure by the private group applicant or group member.

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.

HISTORY

1. New section filed 11-21-78; effective thirtieth day thereafter (Register 78, No. 47).

2. Amendment of section heading and text filed 12-22-92; operative 1-21-93 (Register 93, No. 2).

3. Amendment filed 6-30-94; operative 6-30-94 (Register 94, No. 26).