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(a) A California non-profit, mutual benefit corporation for the sole purpose of operating a group workers' compensation self insurance fund to pool compensation liabilities of two or more private employers shall be established by the organizers or members of any applicant group self insurer pursuant to Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code. This non-profit, mutual benefit corporation shall be the "group self insurer".
(b) The group self insurer will make application for a Certificate to Self Insure to the Manager as provided in Article 2 of these regulations and, if granted approval by the Director, shall be the holder of the Certificate to Self Insure.
(c) Each proposed group member shall also make application for an Affiliate Certificate to Self Insure to the Manager, as provided in Article 2 of these regulations, and if granted by the Director, shall be the holder of an Affiliate Certificate to Self Insure under the Certificate to Self Insure granted to the group self insurer.
(d) The group self insurer shall post and maintain a security deposit with the Manager as set forth in Article 3 of these regulations to secure the expected workers' compensation liabilities of the group self insurer, based on the prior history of liabilities of all its members.
(e) 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.
(f) The group self insurer shall comply with the transfer of liability requirements of Article 8.
(g) The group self insurer shall fall under the continuing jurisdiction of the Director and any Certificates to Self Insure or Affiliate Certificates issued to a group self insurer or a group member may be revoked as set forth in Article 10 of these regulations.
(h) 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.
(i) The group self insurer shall comply with recordkeeping and audit requirements in Article 9 and the claims administration requirements of Article 12 of these 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).
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