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

§15481. Actuarial Certification of Losses.

(a) At least every other year, each group self insurer shall have an actuarial analysis done of its historical loss development and a projection of anticipated loss development. The actuary performing this study shall be either:

(1) Associate or Fellow of the Casualty Actuary Society; or

(2) Member of the American Academy of Actuaries.

(b) The analysis and results of the study shall be presented to the group self insurers' Board of Trustees and made available in written form to the Board of Trustees and to any group member requesting a copy. The study shall be commenced immediately following the close of the ninth month of each calendar year and the written report presented to the Board of Trustees by January 1 of the new calendar year.

(c) The written actuarial report shall be provided to the Manager by March 1 of each required year it is prepared by the group administrator.

(d) The Board of Trustees shall ensure that funding of claims losses for the group shall be based on the actuarial projection at the 80% confidence level.

NOTE: Sample By Laws. A sample of bylaws for a Group Self Insurer to assist groups in developing a set of by-laws is in the appendix following these regulations.

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

HISTORY

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