(a) An employer may apply for authorization
to self-insure the employer's obligations under the Act if the employer has
(1) been in business within this state for at
least the five years immediately preceding the filing of the present
application for self-insurance authorization;
(2) safety and loss control
programs;
(3) in combination with
the employer's parent company or subsidiary companies of the employer, a
minimum of 100 employees either in this state or in another state or states;
and
(4) a tangible net worth of at
least $10,000,000.
(b)
An employer that meets the application requirements may qualify to self-insure
the employer's obligations under the Act if the employer provides satisfactory
proof to the board that the employer has
(1)
the financial ability to meet current and future obligations under the
Act;
(2) available claims
facilities through the employer's staffed adjusting facilities located within
this state through independent, licensed, resident adjusters with power to
effect settlement within the state; for purposes of this paragraph, insurance
companies with a certificate of authority from the division of insurance,
Department of Commerce, Community, and Economic Development, and with staff
adjusters in this state, are considered independent, licensed, resident
adjusters; and
(3) agreed to post
any security deposit required.
(c) The board may waive the requirement in
(a)(1) of this section if the employer
(1)
has self-insured the employer's workers' compensation obligations in another
jurisdiction for at least the five years immediately preceding the filing of
the present application for self-insurance authorization; or
(2) is a wholly-owned subsidiary and the
employer's parent company has been in business for at least the five years
preceding the filing of the present application for self-insurance
authorization and guarantees the subsidiary's obligations under the
Act.
(d) An employer
that is a majority or wholly-owned subsidiary must have the employer's
obligations under the Act guaranteed by the employer's parent
company.
