(a) Where the Chief has required an increase in security deposit due to the impaired financial status of an individual private self-insurer and the self-insurer wishes to appeal the Chief's decision, upon receipt of the written appeal, the Chief shall order a detailed, third-party financial evaluation of the self-insurer in order to determine the employer's financial strength. The cost of the third party financial evaluation report shall be paid by the self-insurer.
(b) Upon receipt of the evaluation report, the appeal will be considered by the Chief, and if not resolved between the Chief and the self-insurer, addressed pursuant to Article 11 of these regulations and Labor Code Section 3701.5(g).
Note: Authority cited: Sections 54, 55 and 3702.10, Labor Code. Reference: Sections 3701 and 3701.5(g), Labor Code.
1. New section filed 6-1-72; effective thirtieth day thereafter (Register 72, No. 23).
2. Repealer and new section filed 11-19-75; effective thirtieth day thereafter (Register 75, No. 47).
3. Repealer and new section filed 12-22-92; operative 1-21-93 (Register 93, No. 2).
4. Amendment of section and Note filed 3-2-2009; operative 3-2-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 10).
5. Amendment of section heading and section filed 12-14-2016; operative 1-1-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 51).