436-050-0190 Using Self-Insured Employers' Security Deposit/Self-Insured Employer Adjustment Reserve/Self-Insured Employer Group Adjustment Reserve/Director-Ordered Assessments of Private Employer Members of Self-Insured Employer Groups (1) Default, decertification, or cancellation of self-insurance certification. In the event a self-insured employer defaults, or is unable to make all payments due under ORS chapter 656: (a) The director will, on behalf of the self-insured employer, assure continued payments in accordance with ORS 656.407, 656.443, and 656.614 and in such a manner as to ensure minimum delay in the processing of injured workers’ claims. (b) If the self-insured employer provides an ISLOC as all or part of its security deposit, and the director demands payment under that ISLOC as provided in OAR 436-050-0165(3)(a)(G), the director may use the funds provided by the ISLOC to the extent necessary to assure continued payments and in such a manner as to ensure minimum delay in the processing of injured workers’ claims. (c) The director may refer the self-insured employer’s claims for processing to an assigned claims agent selected under ORS 656.054, or designate the service company responsible for continuing to process the employer’s claims. (d) If a self-insured employer group consisting of private employer members defaults, cancels its self-insurance certification, or is decertified by the director under ORS 656.434, the director may order private employer members of the group to pay an assessment for the group’s continuing claim liabilities, under ORS 656.430(7)(a)(D)(i). Failure of the group’s members to pay director-ordered assessments under this rule will subject members to civil penalties under ORS 656.745. (2) Changes in liability or financial viability. In the event a self-insured employer reorganizes its business, assumes additional liability, acquires new operations, buys an additional business, merges with another business, files bankruptcy, emerges from bankruptcy, or otherwise changes its operation in any manner that affects its workers’ compensation claims liability, or financial viability as determined under OAR 436-050-0150 or OAR 436-050-0260, the employer must notify the director of the modification of business within 30 days of the event. Failure to comply with this rule may result in the assessment of civil penalties, revocation of the employer’s certification, or both. Statutory/Other Authority: ORS 656.407, ORS 656.434 & ORS 656.726(4) Statutes/Other Implemented: ORS 656.407, ORS 656.443 & ORS 656.614 History: WCD 7-2022, amend filed 11/07/2022, effective 01/01/2023 WCD 7-2017, amend filed 12/14/2017, effective 01/01/2018 WCD 5-2016, f. 11-28-16, cert. ef. 1-1-17 WCD 10-2014, f. 8-15-14, cert. ef. 9-15-14 WCD 6-2012, f. 10-4-12, cert. ef. 1-1-13 WCD 1-2008, f. 6-13-08, cert. ef. 7-1-08 WCD 12-2003, f. 12-4-03, cert. ef. 1-1-04 WCD 5-2001, f. 6-22-01, cert. ef. 7-1-01 WCD 7-1989, f. 12-22-89, cert. ef. 1-1-90 WCD 9-1987, f. 12-18-87, cert. ef. 1-1-88 WCD 9-1985, f. 12-12-85, cert. ef. 1-1-86 WCD 5-1985, f. 12-10-85, cert. ef. 1-1-86, Renumbered from 436-051-0322 WCD 7-1983, f. 12-22-83, cert. ef. 12-27-83 WCD 4-1982, f. 2-10-82, cert. ef. 2-15-82