Self-insured employer regulations and contacts
A self-insured (also known as self-funded) workers compensation plan is one in which the employer assumes the financial risk for providing workers comp benefits to its employees.
audited financial statement done within last 6 months
in business for 5 years, or a guarantee from parent corporation
specific and aggregate excess insurance
(Note: both specific and aggregate excess coverage written together can provide protection against the catastrophic occurrence (specific excess) and the unusually heavy frequency of claims (aggregate excess).
surety bond of at least $500,000
claims administration facility or approved service company
The Board may consider the following factors in determining if the employer could qualify for self-insurance.
(a) Profit and loss history.
(b) Organizational structure and management background.
(c) Compensation loss history and proposed excess insurance coverage.
(d) Source and reliability of financial information.
(e) Number of employees.
(f) Excess insurance.
(g) Guarantee by parent company.
(h) Surety bond.
(i) Claims administration.
(j) Dunn and Bradstreet rating, if any.
There are no uniform rules that apply to excess insurance. Excess insurance provisions differ widely from one carrier to the next. Each carrier files their own forms with the Department of Insurance.
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