California Code of Regulations › Title 8 - Industrial Relations › Division 1 - Department of Industrial Relations › Chapter 8 - Office of the Director › Subchapter 2 - Administration of Self-Insurance Plans › Article 3 - Security Deposit Requirements › Section 15214 - Cash in Trust

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Cash shall be presented to the Manager in the form of a corporate check,
					 cashier's check, certified check or money order and shall be made payable to
					 "The Department of Industrial Relations In Trust For [the legal name of the
					 self insurer]." A wire transfer of funds to a bank, or financial institution if
					 approved in advance by the Manager may be used.
NOTE 1: Cash deposits shall be deposited by the Office of
						Self-Insurance Plans on the same day received or on the following business day
						with a bank or financial institution meeting the credit standards contained in
						Section 15215(e) into an
						interest bearing savings account or into a callable or brokered certificate of
						deposit not exceeding one year in duration with an automatic rollover upon
						maturity. A savings account or certificate of deposit shall be set up in such a
						manner to show the deposit is held in trust for the private self insurer by the
						Department of Industrial Relations, as the depositor, and the private self
						insurer has no ability to control any part of the savings account or
						certificate of deposit. The savings account, original certificate or other
						evidence of the deposit or account shall be held by the bank or financial
						institution who shall be the custodian of the deposit, pending written
						instruction from Self-Insurance Plans signed by the Manager to deliver
						documentary evidence of the deposit or account, to the Office of Self Insurance
						Plans.
NOTE 2: A private self insurer desiring to deposit cash
						to be held in trust as part of its security deposit should contact the Manager
						in advance of sending a cash deposit to the Office of Self-Insurance Plans. The
						private self insurer may advise the Manager in writing of any preference for a
						bank or financial institution into which the cash is to be deposited by the
						Department and length of the deposit term. However, the selection of the bank
						or financial institution and length of term of the deposit is at the discretion
						of the Manager.
(b)
					 Certificates of deposit may be deposited with prior arrangements made with the
					 Manager and subject to approval of the Manager as with any other registered
					 securities pursuant to Section
					 15213 of these
					 regulations.
(c) By order of the
					 Manager, documentary evidence of the savings account or certificate of deposit
					 shall be provided by the bank or financial institution to the Office of Self
					 Insurance Plans. The savings account or certificate of deposit shall be
					 released only upon written order of the Director and the Manager or other
					 person designated by the Director.
(d) The Manager shall provide the private
					 self insurer depositing cash with a written receipt for the deposit.
(e) The private self insurer may request and
					 the Manager shall authorize the payment of any interest on the cash deposit to
					 be sent to the self insurer from the bank or financial institution.
1. New
						section filed 12-22-92; operative 1-21-93 (Register 93, No. 2).
2.
						Amendment filed 9-19-2011; operative 10-19-2011 (Register 2011, No.
						38).
3. Editorial correction of NOTE 1 (Register 2011, No.
						44).
Note: Authority cited: Sections
						  54,
						  55 and
						  3702.10, Labor
						  Code. Reference: Sections
						  59,
						  3700,
						  3701,
						  3701.5,
						  3702,
						  3702.6,
						  3702.10,
						  3703,
						  3705 and
						  3740-
						  3745, Labor
						  Code.