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

§15473. Homogeneity of Group Members.

(a) Each group self insurer shall maintain homogeneity of its group members by one of the following methods:

(1) All group members shall have the same, predominant, two digit Standard Industrial Classification Code (SIC Code) as found in the Standard Industrial Classification Code Manual published by the United States Department of Commerce; or

(2) All group members are required in the by-laws of the group self insurer or by laws of the group applicant to be members in good standing in a specific industry trade association, and each trade association sponsored group self insurer is limited to one, designated three digit Standard Industrial Classification Code industry grouping.

NOTE: A trade association may sponsor more than one group self insurer, but each would be limited to a single 3 digit SIC Code industry grouping.

(b) The Manager shall also consider any other information available on the nature of the business of each group member and may require the group applicant or group self insurer to present additional information to verify that all group member applicants meet the requirements of subsection (a) of this section.

NOTE: Authority cited: Sections 54, 55 and 3702.10, Labor Code. Reference: Sections 3700 and 3702.10, Labor Code.

HISTORY

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