Mich. Admin. Code R. 408.43c - Financial, loss experience and liability exposure analysis; notice of denial or termination
Rule 13c.
(1) The
agency may decline to approve an application for, or may terminate the
self-insured authority, if an employer is unable to demonstrate a position of
reasonable solvency and the ability to pay benefits as prescribed in the act.
The agency analysis of each nonpublic employer application shall include a
review of the employer's financial position and operating results. Standard
financial ratio analysis and comparison to similar industry statistical data
will be considered in the financial position analysis. Other information
relevant to the applicant's financial ability, including, but not limited to,
the following, will be considered:
(a) The
historical operating results.
(b)
Evaluation of financial trends.
(c)
Banking relations.
(d) Contingent
liabilities.
(e) Pending
litigation.
(f) Corporate
guaranties.
(g) Management team
continuity and experience.
(h)
General and specific industry economic conditions.
(i) Legal structure.
(2) The agency's analysis of the employer's
loss experience and liability exposure shall include, but is not limited to,
the following:
(a) Claims for not less than 3
policy years broken down by paid, reserve, and total incurred
amounts.
(b) Number of
employees.
(c) Payroll code
classifications.
(d) Excess
liability insurance policy terms.
(3) The agency shall mail notice of a denial
or termination of self-insured authority to the employer. The notice must
include the grounds for denial or termination. The employer may request a
hearing in accordance with section 611(5) of the act, MCL 418.611, and
R 408.43n.
Notes
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.