(a) Each individual private self insurer holding an active or revoked Certificate of Consent to Self Insure shall submit annually to the Manager two copies of the employer's current, certified, independently audited financial statement complete with all notes and schedules. If the individual private self insurer or former self insurer did not prepare a current, certified, independently audited financial statement of its financial condition, or of a parent or holding company's financial condition if an Agreement of Assumption and Guarantee of Workers' Compensation Liabilities (Form A4-6 (Rev.11/97)) has been executed on its behalf by that parent or holding company pursuant to Section 15211.2 of these regulations, the self insurer or former self insurer shall advise the Manager in writing and submit a financial statement prepared by an independent certified public accountant. Failure to submit a qualifying financial statement pursuant to this section may result in an increased security deposit requirement pursuant to subsection (c) and/or revocation of the Certificate of Consent to Self Insure for good cause pursuant to Labor Code Section 3702.
(b) Any joint powers authority which is solely responsible for the self insurance claims of its public members shall submit annually to the Manager a consolidated report of its financial condition and/or, if available, a current, certified, independently audited financial statement complete with all notes and schedules.
(c) Impairment of solvency of a current or former private individual self insured employer, indicated by a marked reduction in financial strength or the lack of the minimum net worth requirement set forth in subsection (e) of this section, or the lack of an independently prepared, audited financial statement, is good cause for an increased security deposit pursuant to Section 15210.1 of these regulations and/or involuntary revocation of a Certificate of Consent to Self Insure, an Affiliate Certificate, or a Subsidiary Certificate pursuant to Labor Code Section 3702.
(d) After July 1, 1994, all private individual employer applicants for a master Certificate of Consent to Self Insure shall demonstrate and maintain a current net worth of at least $5,000,000 and average net income for the preceding 5 years of at least $500,000.
(e) Any private self insurer granted a Certificate to Self Insure prior to the July 1, 1994 that has continued as a self insurer shall demonstrate and maintain a net worth of at least $2,200,000 and an average net income for the preceding 5 years of at least $300,000.
|Note: Authority cited: Sections 54, 55 and 3702.10, Labor Code. Reference: Sections 59, 3700, 3701, 3702 and 3702.10, Labor Code.|
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