Wash. Admin. Code § 296-15-181 - Funding the benefits of an insolvent self-insurer
(1)
What happens when a self-insurer
defaults on (stops paying) workers' compensation benefits and
assessments? When a self-insurer stops paying workers' compensation
benefits or assessments, and the default is not due to a claims administration
decision, the department will take over its surety and claims.
(2)
If a defaulting self-insurer has
multiple types of surety, who determines the order in which surety will be
used? The department has the sole authority to determine the order in
which surety types will be used.
(3)
What happens if the defaulting
self-insurer's surety is exhausted? When surety is exhausted, the
insolvency trust (all self-insurers except school districts, cities and
counties) will be assessed quarterly to cover the claim costs paid on behalf of
the defaulted self-insurer.
(4)
Who is on the insolvency trust board? The insolvency trust board
consists of the director or designee, three representatives of self-insured
employers and one representative of workers. Representatives are nominated by
the self-insured and labor communities and are appointed by the director for
overlapping two year terms.
(5)
What does the insolvency trust board do? The board advises the
department on insolvency trust matters. The department makes all final
decisions.
(6)
What annual
report is provided on the insolvency trust fund? The department provides
an annual written status report on the insolvency trust fund as of the end of
the previous calendar year to the workers' compensation advisory committee. The
report is presented at the committee's first quarterly meeting no later than
March 31.
Notes
Statutory Authority: RCW 51.04.020, 51.14.020, 51.32.190, 51.14.090, and 51.14.095. 06-06-066, § 296-15-181, filed 2/28/06, effective 4/1/06. Statutory Authority: RCW 51.14.077, 51.14.120(7), 51.14.150(4), 51.14.160, 51.44.040(3), 51.44.070 and 51.44.150. 99-23-107, § 296-15-181, filed 11/17/99, effective 12/27/99.
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