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

§15480. Termination of Membership in a Group.

(a) No group member in a group self insurer may be canceled or terminated from membership in a group self insurer unless at least 60 days advance written notice has been given to the group member and to the Manager.

(b) The group self insurer shall remain liable for all compensation liabilities of any group member resulting from any claim with a date of injury during the period of membership in the group self insurer, including the 60 day period required for termination of membership.

Exception 1: The group self insurer's liability for claims shall terminate on the date of issuance of a standard workers' compensation insurance policy issued by a admitted carrier.

Exception 2: A former self insurer's claims may be transferred to a carrier as set forth in Labor Code Section 3702.8(c) under a special excess workers' compensation policy.

(c) Notice to the Manager of termination of a group member from a group self insurer as set forth in subsection (a) of this section shall be good cause for revocation of the Affiliate Certificate issued to the group member on the termination date or the policy issue date as set forth in subsection (b) of this section.

NOTE: Authority cited: Sections 54, 55 and 3702.10, Labor Code. Reference: Sections 3700, 3701, 3701.5, 3702 and 3702.10, Labor Code.

HISTORY

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