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Chapter 8. Office of the Director
Subchapter 2. Administration of Self-Insurance Plans
Article 13. Group Self Insurance

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§15470. General.

(a) In order to form and operate a group self insurer for private, for-profit employers, a mutual benefit corporation shall be formed pursuant to Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the California Corporations Code. The mutual benefit corporation shall be the group self insurer and shall be formed for the sole purpose of operating a group workers' compensation self insurance fund to pool compensation liabilities of two or more for-profit private employers.

(b) In order to form and operate a group self insurer for private, non-profit employers, a non-profit corporation shall be formed pursuant to Division 2 of Title 1 of the Corporations Code. The non-profit corporation shall be a non-profit charitable corporation, a non-profit public benefit corporation, a non-profit mutual benefit corporation, or a non-profit religious or apostolic corporation, as is appropriate based on the nature and purpose of the non-profit employer. The non-profit corporation shall be the group self insurer and shall be formed for the sole purpose of operating a group workers' compensation self insurance fund to pool compensation liabilities of two or more non-profit private employers.

(c) The group self insurer will make application to the Manager for a Certificate of Consent to Self Insure as provided in Section 15482 of these regulations and, if granted approval by the Director, shall be the holder of the Certificate of Consent to Self Insure.

(d) Each initial proposed group member shall make application to the Manager for an Affiliate Certificate of Consent to Self Insure as one of the qualifying group applicants pursuant to Section 15482.1 of these regulations. Once a Certificate of Consent to Self Insure has been approved and issued, each subsequent proposed member shall make application to the Manager for an Affiliate Certificate of Consent to Self Insure pursuant to Section 15482.2 of these regulations. If granted by the Director, each approved member of a group self insurer shall be the holder of an Affiliate Certificate of Consent to Self Insure under the Certificate of Consent to Self Insure granted to the group self insurer.

(e) The group self insurer shall post and maintain a security deposit with the Manager as set forth in Sections 15210 and 15496 of these regulations to secure the expected workers' compensation liabilities of the group self insurer.

(f) The group self insurer shall file a Self Insurer's Annual Report as set forth in Article 5 of these regulations and shall estimate compensation liabilities as set forth in Article 6 of these regulations.

(g) The group self insurer shall not transfer liabilities to a third party except to a carrier meeting the requirements of Section 15360(c) under a special excess workers' compensation policy as provided by Labor Code Section 3702.8(c) and/or as provided by Article 8, Section 15360 of these regulations.

(h) The group self insurer shall fall under the continuing jurisdiction of the Director and any Certificates or Affiliate Certificates of Consent to Self Insure issued to a group self insurer or a group member may be revoked as set forth in Article 10 of these regulations.

(i) Hearing and appeal procedures set forth in Article 11 shall be applicable to self insurance matters set forth in Section 15430 involving group self insurers or group members.

(j) Each group self insurer shall comply with recordkeeping and audit requirements in Article 9 and the claims administration requirements of Article 12 of these regulations.

(k) Each private group self insurer shall be subject to assessments as set forth in Article 4 of these regulations.

(l) A group self insurer issued a Certificate of Consent to Self Insure pursuant to Labor Code Section 3700 and these regulations are not intended to deem such a group self insurer to be an insurance company and be subject to regulations governing insurers contained in Title 10, California Code of Regulations, except as otherwise provided by statute and by Title 8, California Code of Regulations.


     Note: Authority cited: Sections 54, 55 and 3702.10, Labor Code. Reference: Sections 59, 3700, 3701, 3701.5, 3702, 3702.2, 3702.5 and 3702.10, Labor Code.  


 HISTORY 
   
1. New article 13 and section filed 6-30-94; operative 6-30-94 (Register 94, 
No. 26).

2. Amendment filed 3-2-2009; operative 3-2-2009 pursuant to  Government Codesection 11343.4 (Register 2009, No. 10).

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