(a) An affiliate or subsidiary may be
included under an application submitted by another affiliate or its parent
company by providing information and data on the affiliate or subsidiary on a
separate form prescribed by and available upon request from the Bureau. The
related entities will be included under one consolidated permit if the
application is approved. A written notification shall be provided by the
applicant to delete an affiliate or a subsidiary from a consolidated permit
after its issuance.
(b) An
applicant shall provide a written agreement adopted by its board of directors
on a form prescribed by the Bureau which states that the applicant guarantees
the payment of all claims incurred by the affiliates or subsidiaries. The
applicant shall further assume liability for the payment of an affiliate's or
subsidiary's claims incurred during its period of self-insurance upon
termination of the affiliate or parent-subsidiary relationship unless the
applicant is relieved of this liability by the Bureau. In determining whether
to relieve an applicant of a subsidiary's or affiliate's liability, the Bureau
will consider, among other things, the financial ability of the new owner of
the subsidiary or affiliate to pay the liabilities, the new owner's credit
worthiness and the adequacy of security held by the Bureau covering the
liability.
(c) The guarantor may
not terminate the agreement under any circumstances without first giving the
Bureau and the affected affiliate or subsidiary 45 days written notice. The
affiliate's or subsidiary's self-insurance status automatically terminates upon
expiration of the 45-day notice period.
(d) Except as provided in §
125.4(e), if an
affiliate or
subsidiary not included under a consolidated application as
outlined in subsection (a) wishes to self-insure, it shall submit an
application in its own name and provide its own audited financial statements in
the manner indicated in §
125.3 (relating to application).
The
Bureau may require the
parent company to furnish appropriate financial
information within 21 days of its receipt of written notification from the
Bureau of its need to do so, or by a later date if requested by the
applicant
and approved by the
Bureau.
(e) If
the
applicant is a
subsidiary of a
parent company that is not incorporated or
organized under the laws of a state of the United States, the
applicant may
submit its
parent company's consolidated audited financial statements and an
unaudited consolidated balance sheet of the
applicant's financial condition, or
other financial information on the
applicant that the
Bureau deems pertinent to
its review of the application, to satisfy the financial reporting requirements
of §
125.3(c),
provided the
parent company's audited financial statements comply with §
125.3(c)(3)(i) and
(ii).
