Mich. Admin. Code R. 408.43s - Group funds; insufficient funding; creation of trust; appointment of trustees

Rule 13s.

(1) If the plan to achieve full funding for payment of all claims and expenses of the self-insurers group pursuant to R 408.43j is not approved by the agency, then the agency may order the board of trustees of the self-insurers group to immediately assess the employer members of the group for the full amount of the deficiency or order that any surplus funds distributed to group members during the previous 12 calendar months from the date of discovery of the funding deficiency by the group fund be immediately returned, or both.

(2) If the agency determines that the self-insurers group ceases to provide ongoing and active coverage to its members or the requirements of this rule are not sufficient to secure all future liability established by the act, or both, then the agency may require additional assessment of the employer members of the group and request the director to create and establish the terms of a trust, at the expense of the selfinsurers group, for the deposit and administration of any assessment received or all assets of the self-insurers group, or both. The trustees of the funds appointed under section 511 of the act, MCL 418.511, must be appointed trustees of the self-insurers group trust fund established under this rule.

Notes

Mich. Admin. Code R. 408.43s

2003 AACS; 2021 MR 23, Eff. 12/10/2021