(A) Definitions.
As used in this rule:
(1) "Applicant" means an employer who is
applying for the privilege to pay compensation directly pursuant to section
4123.35 of the Revised
Code.
(2) "Certified financial
statements" means financial statements that have been audited by a certified
public accountant, in accordance with generally accepted accounting principles,
and include the certified public accountant's audit opinion.
(3) "Reviewed financial statements" means
financial statements that have been subject to procedures performed by a
certified public accountant in accordance with the statements on standards for
accounting and review services as contained in the professional standards
promulgated by the American institute of certified public accountants and in
effect on the date of the applicant's application for the privilege to pay
compensation directly. Such statements must include full footnote disclosure,
prepared and submitted in accordance with generally accepted accounting
principles.
(B) When the
bureau grants a waiver of requirements under this rule, the bureau may require
the applicant to furnish security in addition to the security required under
rule
4123-19-03 of the Administrative
Code. The amount of such additional security shall be in the form and amount as
determined by the administrator and paid prior to the granting of
self-insurance. In the event of the default of the self-insuring employer, the
bureau shall first seek reimbursement from the additional security, which shall
be first liable and exhausted, before payment is made from the self-insuring
employers' guaranty fund under section
4123.351 of the Revised Code.
(C) The bureau shall waive the
requirement set forth in division (B)(1)(a) of section 4123.35 of the Revised
Code that an applicant have five hundred employees in the state of Ohio
if:
(1) The applicant meets, without
waiver, all of the bureau's requirements with respect to divisions (B)(1)(c) to
(B)(1)(h) of section 4123.35 of the Revised Code;
(2) The applicant submits to the
bureau audited financial records for the current year and previous four years;
and
(3) The applicant meets at least one
of the following requirements:
(a) The applicant has a substantial
employee count outside the state of Ohio, as determined by the bureau;
or
(b) The applicant has obtained and
agrees to maintain excess insurance as set forth in section 4123.82 of the
Revised Code in an amount and with a retention level determined by the bureau
to be appropriate.
(D)(C) The bureau may
waive the requirement set forth in division (B)(1)(b)
(B)(1)(a) of
section 4123.35 of the Revised Code that
an applicant operate for at least two years in Ohio if, upon review of the
applicant's request for waiver and application, the bureau determines such
waiver is appropriate.
(E)(D) The bureau may
waive the requirement of division (B)(1)(e)
(B)(1)(d) of
section 4123.35 of the Revised Code that
an applicant submit certified financial statements if the applicant submits
reviewed financial statements and the bureau determines such waiver is
appropriate. The bureau may use the services of a commercial credit reporting
bureau to assist in the evaluation of an applicant's ability to meet its
workers' compensation obligations.
(F)
(E) The bureau may
waive the requirement of division (B)(2)(b) of section
4123.35 of the Revised Code that
an applicant that is a public employer submit financial statements reflecting
the unreserved and undesignated year-end fund balance in the applicant's
general fund if the bureau determines such waiver is appropriate. The
administrator may require a supplemental schedule reflecting the public
employer's unreserved and undesignated year-end fund balance in the public
employer's general fund.
(G)
(F) The bureau may
waive the requirement of division (B)(2)(f) of section
4123.35 of the Revised Code that
an applicant that is a public employer submit an annual financial audit
released by the auditor of state within seven months after the end of the
public employer's fiscal year if the employer submits an annual financial audit
released by the auditor of state within nine months after the end of the public
employer's fiscal year.
Notes
Ohio Admin. Code
4123-19-03.1
Five Year Review (FYR) Dates:
12/22/2022 and
12/01/2027
Promulgated
Under: 119.03
Statutory
Authority: 4121.12,
4121.121,
4123.30,
4123.05
Rule
Amplifies: 4123.35,
4123.58
Prior
Effective Dates: 04/28/2014,
08/18/2017
Effective: 8/18/2017
Five Year Review
(FYR) Dates: 05/31/2017 and
06/01/2022
Promulgated
Under: 119.03
Statutory Authority: 4121.12, 4121.121, 4123.30,
4123.05
Rule Amplifies: 4123.35, 4123.58
Prior Effective
Dates: 4/28/14
