(a) The security deposit of each private individual self insurer shall apply to all subsidiaries and affiliates included under the Master Certificate of Consent to Self Insure issued to that self insurer during its respective period of self insurance, and no portion of the overall security deposit for that self insured plan may be limited to any specific affiliate or subsidiary under the Master Certificate. In the event that a subsidiary or affiliate certificate holder seeks to post a separate security covering its self insured liabilities only, a separate individual Certificate of Consent to Self Insure covering its period of self insurance shall be issued to that self insured employer and liabilities shall be transferred to a separate Certificate of Consent to Self Insure through an Order Amending and Transferring Liabilities.
(b) For purposes of these regulations, Section 189 of the California Corporations Code shall be used to define "subsidiary corporation" and "holding corporation."
(c) 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.
(d) 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.
(e) 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.
|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.|
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