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 15211.2 - Guaranty of Workers' Compensation Liabilities

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) At the discretion of the Chief, the
					 Workers' Compensation liabilities of a public, a private individual,
					 subsidiary, or affiliate self-insurer may be assumed and guaranteed in whole or
					 part by any other legal entity or person.
(b) The Guaranty of Workers' Compensation
					 Liabilities shall be written upon a form provided by the Chief (Form A-4
					 (1-2016)). The form is contained in Plate D of the Appendix following Section
					 15463 of these regulations and is
					 available on the website of the Office of Self-Insurance Plans at
					 http://dir.ca.gov/osip/.
(c)
					 Regardless of whether an individual private affiliate or subsidiary or the
					 self-insurer's parent company's financial condition is relied upon to qualify
					 the subsidiary or affiliate for self-insurance, the holding company, ultimate
					 parent corporation, controlling partners, owner, or other controlling entity
					 acceptable to the Chief shall execute a Guaranty of Workers' Compensation
					 Liabilities on behalf of the affiliate or subsidiary. In the event that the
					 holding company, ultimate parent corporation, controlling partners, owner, or
					 other controlling entity declines to execute a Guaranty of Workers'
					 Compensation Liabilities, the Chief may require an increase in the
					 self-insurer's security deposit requirement pursuant to Section
					 15203.1 of these
					 regulations.
(d) A corporate
					 guarantor shall provide a Board of Directors resolution which authorizes the
					 Guaranty of Workers' Compensation Liabilities of the affiliated or subsidiary
					 company or public agency. The board resolution shall grant signature authority
					 to the person or position title of the person signing the Guaranty of Workers'
					 Compensation Liabilities.
NOTE 1: The assumption resolution may be worded in such a
						manner as to be applicable to only the specific applicants to self-insure or
						the assumption resolution may list all present subsidiaries or affiliates and
						authorize the addition of future, unnamed additions to the assumption
						resolution as an attachment without execution of a new resolution.
NOTE 2: The Chief shall provide an acceptable model
						resolution to any party upon request. The current model assumption resolutions
						are contained in Plate E of the Appendix following Section
						15463 of these
						regulations.
(e) In the
					 event that a public self-insurer or individual private self-insurer
					 reincorporates, merges, or changes its identity, the surviving entity shall
					 execute a new Guaranty of Workers' Compensation Liabilities and a new
					 assumption resolution to cover the liabilities of the prior self-insurer as
					 part of the reapplication process to continue self-insurance of workers'
					 compensation liabilities.
(f) A
					 foreign entity (i.e. outside the United States) may execute a parental Guaranty
					 of Workers' Compensation Liabilities for a subsidiary or affiliate self-insurer
					 provided such foreign entity:
(1) executes in
					 the English language the Guaranty of Workers' Compensation Liabilities and the
					 assumption resolution; and
(2)
					 includes a statement in the Guaranty of Workers' Compensation Liabilities that,
					 in the event of the Director's need to enforce the Guaranty of Workers'
					 Compensation Liabilities executed by the foreign entity on behalf of a
					 self-insured subsidiary or subsidiaries, the foreign entity will:
(A) become subject to the jurisdiction of
					 California courts and administrative agencies; and
(B) become controlled by California law in
					 the resolution of any dispute under the assumption and guarantee
					 agreement.