Or. Admin. Code § 436-050-0200 - Self-Insured Certification Cancellation; Revocation
(1)
Effective
period of self-insurance certification. A self-insured employer's
certification remains in effect until:
(b) Canceled by the self-insured employer
with the approval of the director.
(2)
Cancellation of self-insurance
certification. If a self-insured employer wishes to cancel its
self-insurance certification or cancel the self-insurance coverage of any
entity included under its self-insurance certification:
(a) The employer must submit a written
request to the director. The request must include:
(A) The arrangements that have been made to
process present and future claims for which the employer is
responsible;
(B) A statement of all
present and future claims liabilities for all liabilities incurred during the
period of self-insurance; and
(C)
Any reports and moneys due the director under ORS
656.506,
656.612, and
656.614.
(b) The request under subsection (a) must be
submitted at least 60 days before the desired date of cancellation. If the
request to cancel is submitted fewer than 60 days before the desired date of
cancellation, or otherwise does not meet the requirements of this section, the
director may set a cancellation date later than the date requested.
(c) If the self-insured employer will
continue to have subject workers after the cancellation date, the employer must
demonstrate compliance with ORS
656.017, before the desired date
of cancellation, by causing one of the following to be filed with the director:
(A) Proof of coverage provided by an insurer
under ORS 656.407, filed by the
insurer;
(B) Notice of client
coverage provided by a worker leasing company under OAR
436-180-0110, filed by the
worker leasing company; or
(C) A
copy of an assigned risk binder issued by the Plan Administrator of the Oregon
Workers' Compensation Insurance Plan under OAR
836-043-0044, filed by the Plan
Administrator.
(d) If the
self-insured employer fails to provide the director evidence of coverage under
subsection (c) before the desired date of cancellation, the self-insurance
certification, including reports and moneys due the director under ORS
656.506,
656.612, and
656.614, will remain in
effect.
(3)
Responsibility for processing claims. If a workers' compensation
insurance policy and a self-insurance certification on file with the director
are both in effect for the same employer for the same time period, the
self-insured employer is responsible for processing claims that occur during
the time period.
(4)
Revocation of self-insurance certification. The director may
revoke the self-insurance certification of any self-insured employer that fails
to comply with ORS 656.407,
656.430, and these rules;
defaults under ORS 656.443; or commits any
violation for which a civil penalty may be assessed under ORS
656.745. Except as provided in
ORS 656.430(9),
notice of certificate revocation will be issued in accordance with the
provisions of ORS 656.440.
(5)
Release of security after
self-insured certification cancellation; revocation. If the
certification of a self-insured employer has been canceled or revoked, the
director may accept a policy of paid-up insurance in lieu of the self-insured
employer's security deposit.
(a) The director
may accept a policy of paid-up insurance under the following conditions:
(A) The policy must be issued by an insurer,
as defined in OAR 436-050-0005;
(B) The policy must provide that the insurer
agrees to assume, without monetary limit, all responsibilities and liability of
the self-insured employer under ORS chapter 656 for the period the self-insured
employer's certification was in effect;
(C) The policy must not be subject to
cancellation; and
(D) The policy
must not contain provisions or endorsements that do not comply with ORS chapter
656 or OAR chapter 436, including provisions that limit when a claim may be
reported.
(b) The
director may consider the following factors when determining whether to accept
a policy of paid-up insurance:
(A) The amount
of the insurer's surplus, as reported on column 1, line 37 of the Liabilities,
Surplus, and Other Funds page of the insurer's Annual Statement under OAR
836-011-0000, relative to the
amount of security the self-insured employer is required to maintain under OAR
436-050-0180; and
(B) The amount of the insurer's total
adjusted capital relative to the insurer's authorized control level risk-based
capital, as reported on column 1, lines 28 and 29 of the Five-Year Historical
Data page of the insurer's Annual Statement under OAR
836-011-0000.
(c) Upon accepting a policy of paid-up
insurance, the director will release the self-insured employer's security
deposit in writing.
Notes
Statutory/Other Authority: ORS 656.726(4)
Statutes/Other Implemented: ORS 656.434 & 656.440
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