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 13 - Group Self-Insurance › Section 15481 - Actuarial Studies and Summaries

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The group administrator for current and
					 former Self-Insured Groups that are required to file a Self-Insurer's Annual
					 Report shall cause a qualified actuary to submit on the group's behalf to the
					 Office of Self-Insurance Plans (OSIP) a complete actuarial study by program
					 year of its historical loss development and actuarial summary not later than
					 April 15 of each calendar year with a valuation date of December 31 of the
					 immediately prior calendar year. The summary shall be prepared and submitted
					 via an online platform provided by OSIP with a copy of the complete actuarial
					 study attached.
(1) The analysis and results
					 of the actuarial study shall be presented to the group self-insurer's Board of
					 Trustees and made available, in a written or electronic form, to the Board of
					 Trustees and to any present or former group member requesting a copy. The study
					 shall be presented to the Group Administrator and the Board of Trustees not
					 later than March 31 following the end of the group self-insurer's program
					 year.
(2) In the absence of an
					 actuarial study or summary for any Self-Insured Group that fully satisfies the
					 criteria of this section received by the deadline set forth above, the Chief
					 shall establish a security deposit amount on behalf of the group as the Chief
					 determines appropriate based on consideration of all financial and loss
					 information available to the Chief at the time.
(3) The actuarial study and summary shall be
					 prepared and submitted by an actuary meeting each of the following
					 qualifications:
(A) The actuary must be
					 independent with no common ownership or financial interest in the entity that
					 is the subject of the actuarial study and summary, and
(B) Within the past ten (10) calendar years
					 the actuary must have a minimum of five (5) years of experience making
					 California workers' compensation actuarial projections, and
(C) The actuary must have a designation of
					 Fellow of the Casualty Actuarial Society (FCAS), or be a member of the American
					 Academy of Actuaries (MAAA), or be a member of the Society of Actuaries who is
					 qualified to sign a statement of actuarial opinion on loss
					 reserves.
(4) The
					 qualified actuary or his/her employing actuarial firm shall maintain a minimum
					 of one million dollars ($1,000,000) of professional liability and errors and
					 omissions insurance coverage. Evidence of this coverage and limits must be
					 submitted as a part of the actuarial study.
(5) Group self-insurers shall not be required
					 to file an actuarial study or actuarial summary in years when their current
					 year filed Self-Insurer's Annual Report reports either:
(A) ten (10) or fewer open claims,
					 or
(B) less than one million dollars
					 ($1,000,000) of total estimated future
					 liabilities.