18 AAC 75.245 - Self-insurance

(a) In order to demonstrate financial responsibility through self-insurance, an applicant shall maintain in the United States, working capital and net worth, each in an amount at least equal to the applicable amount required under 18 AAC 75.235(a), or a lesser amount necessary to supplement other forms of proof which, when combined, are at least equal to the applicable amount required under 18 AAC 75.235(a). In determining working capital or net worth, the department will consider all current contractual requirements to which the applicant is bound. For the purposes of this subsection,
(1) "working capital" means the amount of current assets located in the United States,
(a) other than those assets that are petroleum inventory that may be affected by an oil discharge from a facility covered by the self-insurance; and
(b) less all worldwide current liabilities; and
(2) "net worth" means the amount of all assets located in the United States, less all worldwide liabilities.
(b) The proof of financial responsibility required under (a) of this section must be supported by the following, which must be submitted with the application for approval, and which must be later supplemented as described:
(1) annual audited financial statements for consolidated holdings in the United States for the fiscal year ending immediately before each initial or renewal application, certified by an independent certified public accountant; if the financial statements do not specify what portion of the applicant's working capital and net worth are located in the United States, the statements must be supplemented by an affidavit from the applicant's chief financial officer or treasurer, or a sworn statement by the certified public accountant who prepared the audit, certifying that the working capital and net worth located in the United States are each in an amount equal to the applicable amount required under 18 AAC 75.235(a);
(2) subsequent quarterly affidavits attesting that the amounts of working capital and net worth are each equal to the applicable amount required under 18 AAC 75.235(a); and
(3) any additional information the department considers necessary.
(c) Instead of the information required under (b) of this section, a self-insuring applicant may provide the department with a copy of the applicant's Form 10K as filed with the United States Securities and Exchange Commission for the fiscal year preceding application or renewal, and each Form 10Q subsequently filed with that commission, subject to the following conditions:
(1) if the applicant's fiscal year ended six months or more before initial application, the applicant's Form 10Q for the first quarter of the current fiscal year must also be submitted with the initial application; and
(2) if the applicant's United States Securities and Exchange Commission forms do not specify what portion of its working capital and net worth are located in the United States, those forms must be supplemented by an affidavit from the applicant's chief financial officer or treasurer, or a sworn statement by the certified public accountant who prepared the form, certifying that the working capital and net worth located in the United States are each in an amount equal to the applicable amount required under 18 AAC 75.235(a).
(d) Repealed 4/6/2016.
(e) Instead of the information required under (b)(1) and (c) of this section, the applicant may submit annually to the department a copy of its Form No. 6 as filed with the Federal Energy Regulatory Commission for each fiscal year, starting with the fiscal year that ended immediately preceding application and subsequent quarterly affidavits under (b)(2) or (c)(2) of this section.
(f) The affidavits required under (b)(2) of this section must be signed as follows:
(1) in the case of a corporation, by the treasurer or chief financial officer;
(2) in the case of a partnership, by a general partner;
(3) in the case of a sole proprietorship, by the proprietor;
(4) in the case of a municipal, state, federal, or other public facility, by an authorized public official or employee;
(5) in the case of a combined application, by a representative of each party to the application;
(6) in the case of a joint venture, by the operator; and
(7) in the case of a limited liability company, by a member.
(g) A self-insurer shall notify the department within 10 days after the self-insurer knows, or has reason to believe, that the amount of the self-insurer's working capital or net worth has fallen below the applicable amount required under 18 AAC 75.235(a) or the lesser amount necessary to supplement other forms of proof.
(h) Unless it is earlier replaced by another form of financial responsibility approved by the department, termination or cancellation of self-insurance that serves as proof of financial responsibility under AS 46.04.040 may not take effect until 60 days after the self-insurer sends written notice to the department's Juneau office by certified mail.
(i) The department will, in its discretion, revoke a certificate issued under 18 AAC 75.240 if any document required under this section is not submitted to the department on or before the following due date:
(1) a Form 10K is due within four calendar months after the end of the applicant's fiscal year;
(2) a Form 10Q is due two calendar months after the quarter ends;
(3) a Form No. 6 is due no later than four calendar months after the end of the applicant's fiscal year;
(4) an annual audited financial statement is due within four calendar months after the end of the applicant's fiscal year; and
(5) a quarterly affidavit is due within two calendar months after the quarter ends.
(j) Upon written request, the department will, in its discretion, grant a reasonable extension of a time limit set in (i) of this section if the request is received at least 15 days before the document is due.
(k) A self-insurer must submit a renewal application no later than four calendar months after the end of the applicant's fiscal year. The initial application to demonstrate self-insurance may be submitted at any time.

Notes

18 AAC 75.245
Eff. 5/14/92, Register 122; am 11/26/94, Register 132; am 12/8/95, Register 136; am 11/27/2002, Register 164; am 4/6/2016, Register 218, July 2016

Authority: AS 46.03.020

AS 46.04.040

AS 46.04.045

AS 46.04.055

AS 46.04.070

State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.


No prior version found.