Mont. Admin. R. 24.29.623 - RENEWAL REQUIRED
(1) An employer
who has been self-insured may renew the election each ensuing year, by meeting
all the requirements of these rules, except that the claims summary required in
ARM 24.29.617(1)(e)
must be a claims summary for the preceding year(s) for claims incurred as a
self-insurer in Montana. Application for renewal must be made 60 days prior to
the renewal date, or on such other date as determined by the department and the
guaranty fund.
(a) In addition to the other
information required in ARM 24.29.617, except as provided by (1)(b), the
employer shall submit an independent actuarial analysis for the preceding year,
completed by a qualified actuary as defined by the American Academy of
Actuaries. The analysis must include, but is not limited to, a reserve analysis
that includes all self-insured periods in Montana, through the most recent
calendar year. Except as provided by (1)(c), the results of the analysis must
be summarized at the low level, middle (or expected) level, and high level,
with the corresponding confidence level expressly stated for each.
(b) The department may waive the requirement
of (1)(a) with the concurrence of the guaranty fund.
(c) If the self-insurer believes a different
actuarial methodology other than that of confidence level is better for its
business needs, the self-insurer in association with its independent actuary
must present facts to the department that substantiate its position before it
receives approval from the department , with the concurrence of the guaranty
fund, to use that different methodology.
(2) An employer group which has elected to be
bound by plan no. 1 may renew the election for each ensuing year by meeting all
the requirements of these rules, except ARM
24.29.618(1)(c), (1)(d), (1)(e), (1)(f), (1)(g),
(1)(l), (1)(m), (1)(q), (1)(r), (1)(s), (1)(t),
(1)(u), and (1)(v). Application for renewal
must be made at least 60 days prior to the renewal date or on such other date
as determined by the department and the guaranty fund. In addition to the
information required in ARM 24.29.618, the employer group shall submit:
(a) a copy of the preceding year's audited
financial statements for the self-insured group;
(b) a claims summary for the preceding years
for claims incurred as a self-insurer in Montana; and
(c) an independent actuarial analysis for the
preceding year, completed by a qualified actuary, as defined by the American
Academy of Actuaries. Except as provided by (2)(d), the results of the analysis
must be summarized at the low level, middle (or expected) level, and high
level, with the corresponding confidence level expressly stated for each. The
analysis must include, but is not limited to:
(i) a reserve analysis that includes all
self-insured periods in Montana, through the most recent calendar year;
and
(ii) a premium/rate analysis
that projects the total premium need and average rate for the upcoming year
which is adequate to cover:
(A) all expected
workers' compensation liability costs, whether past, present, or future, with
respect to claims previously incurred or claims expected to be incurred in the
upcoming year; and
(B)
administrative expenses.
(d) If the self-insured group believes a
different actuarial methodology other than that of confidence level is better
for its business needs, the self-insured group in association with its
independent actuary must present facts to the department that substantiate its
position before it receives approval from the department , with the concurrence
of the guaranty fund, to use that different methodology.
(3) If a self-insurer does not renew its
election, the employer (s) shall elect to be bound by compensation plan no. 1,
plan no. 2, or plan no. 3 on the effective date of the termination of
permission to self-insure.
Notes
39-71-203, MCA; IMP, 39-71-403, 39-71-2104, MCA;
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