Chapter 8. Office of the Director
Subchapter 2. Administration of Self-Insurance Plans
Article 3. Security Deposit Requirements

§15211. Deposits for Subsidiary and Affiliate Self-Insurers.

(a) With the approval of the Manager, any subsidiary or affiliate private self insurer may post a separate deposit for its workers' compensation liabilities as part of the total security deposit posted to secure the liabilities under any Certificate to Self Insure issued to any self insured program. When approved, each subsidiary or affiliate self insurer posting its own deposit shall report its workers' compensation liabilities on the self insurer's annual report as a separate reporting location.

(b) Subsidiary and affiliated self insurers may be included in the security deposit of a holding corporation that has a certificate to self insure.

(1) For purposes of these regulations, Section 189 of the California Corporations Code shall be used to define "subsidiary corporation" and "holding corporation."

(2) For purposes of these regulations, legal entities with common ownership are sufficient to qualify for a common security deposit and may be included as co-principals on the same surety bond, or as named entities on a letter of credit, or as co-trustors on securities or a cash deposit.

(c) The Manager may require certification or other proof of stock ownership of the self-insured subsidiary corporation or corporations before allowing a self insurer to be included in the deposit of another self insurer.

(d) If the private holding corporation loses its power to elect a majority of the directors of a subsidiary self-insured corporation or corporations, the holding corporation and subsidiary corporation or corporations shall notify the Manager within 30 days of the event.

(e) Each type of security deposit posted by a private group self insurer shall be applicable to the liabilities of all members of the group self insurer and shall be amended, if necessary, to include all new members added to the group self insurer.

NOTE: Authority cited: Sections 54, 55 and 3702.10, Labor Code. Reference: Sections 129, 3700, 3700(b), 3701, 3702, 3702.5, 3702.6, 3703, 3704, 3705 and 3740-3745, Labor Code; and Section 189, Corporations Code.

HISTORY

1. Amendment filed 6-1-72; effective thirtieth day thereafter (Register 72, No. 23).

2. Amendment filed 11-19-75; effective thirtieth day thereafter (Register 75, No. 47).

3. Amendment filed 11-21-78; effective thirtieth day thereafter (Register 78, No. 47).

4. Editorial correction to remove duplicate history note (Register 78, No. 50).

5. Amendment filed 12-22-92; operative 1-21-93 (Register 93, No. 2).

6. Amendment of subsection (a) and new subsection (e) filed 6-30-94; operative 6-30-94 (Register 94, No. 26).

7. Editorial correction of History 6 (Register 96, No. 52).