Mich. Admin. Code R. 408.43f - Group self-insurance; same industry requirement; approval; review; certificate
Rule 13f.
(1)
After considering an application for group self-insurance and all supportive
data, the agency shall either grant approval or advise the trustees of the
selfinsurers' group of the requirements to be met before approval is granted.
In determining whether private employers are in the same industry, the agency
may use the standard industrial classification codes assigned to each employer
applying for membership in the group. The agency shall also consider all
information available on the nature of the business of each private employer
and may require the group fund to present additional evidence, either oral or
written, to verify that all employers applying for membership in the group fund
meet the statutory requirement of being in the same industry. The group has 30
days from the receipt of the agency's notice to comply with the requirements of
the agency. The self-insured authority may not become effective until the
agency has received proof that all requirements of the agency for selfinsured
approval have been met.
(2) The
group may, at the discretion of the director, be granted additional time to
meet the requirements for the self-insured program. A request for an extension
of time must be made in writing by the group within the 30-day compliance
period. If the agency does not receive proof that all requirements for the
self-insured program have been met within the time prescribed, the application
is considered withdrawn.
(3) On new
and renewal applications, the agency may require evidence that the proposed
rate for each payroll classification is adequate to cover expected losses for
that payroll classification and evidence that the experience rating formula
will be actuarially sound. The agency shall take all of the following factors
into account before granting approval for a group self-insurance program:
(a) Past and anticipated losses.
(b) Proper reserves for reported and
unreported losses.
(c) Past surplus
and expected increase in benefit levels.
(d) Administrative costs.
The agency may contract with a consulting actuary, at the expense of the group fund, to determine if the proposed group self-insurance program will be actuarially sound.
(4) Upon meeting the requirements of the
agency, the group shall receive a formal certificate approving its status as a
self-insurer. The certificate expires 12 months after the effective date of
approval.
Notes
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