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 3.1 - Alternative Composite Deposits › Section 15220 - Participation in Alternative Composite Deposits

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) All private self-insured employers,
					 active or revoked, shall be annually determined by the Chief to be either
					 eligible or non-eligible for participation in the alternative composite deposit
					 program. Participation shall be as a fully participating self-insured employer
					 or as a partially participating self-insured employer as provided in subsection
					 (c)(1).
(b) All non-eligible
					 self-insurers shall be deemed "excluded". The following self-insured employers
					 shall be excluded from the alternative composite deposit program:
(1) Any former private self-insured employer
					 that possesses a revoked Certificate of Consent to Self-Insure and is no longer
					 required to submit a Self-Insurer's Annual Report pursuant to Section
					 15251 of this subchapter 2 because
					 all known claims costs have been reported and all known claims are
					 closed.
(2) Any current or former
					 private self-insured employer to the extent it has sold off all or any portion
					 of its workers' compensation liabilities under a special excess workers
					 compensation insurance policy to an admitted carrier and has continued to post
					 security deposit to secure such sold off liabilities for 3 years from the
					 policy issuance date.
(3) All
					 private group self-insurers of workers' compensation liabilities as provided
					 for in Article 13 of this subchapter 2.
(4) Any private self-insured employer to the
					 extent that it transfers any or all of its existing self-insured workers'
					 compensation liabilities to either:
(A) a
					 fully insured employer, such as in the merger, reorganization, sale or spin off
					 of a division or subsidiary; or,
(B) a carrier through a contractual sell off
					 that is not a special excess workers' compensation insurance policy pursuant to
					 Labor Code Section
					 3702.8(c) and
					 (d).
(5) Any current or former private
					 self-insured employer that has defaulted on the payment of its self-insured
					 workers' compensation liabilities and whose liabilities have been turned over
					 to the Security Fund by the Director.
(6) Any current or former private
					 self-insured employer that has failed to post the full amount of security
					 deposit required by Section
					 15210 for more than 60 consecutive
					 days.
(7) Any former private
					 self-insured employer that has posted a surety bond that contains no provision
					 to release the carrier's liabilities under the surety bond.
(8) Any private self-insured employer that
					 does not meet the minimum credit rating criteria for participation in the
					 alternative composite deposit contained in subsection (d)(2).
(9) Any current or former private legally
					 self-insured employer that is a member of a public sector healthcare joint
					 powers authority pursuant to Government Code Section
					 6527.
(10) Any self-insured employer that has been
					 specifically excluded by written request of the Security Fund. Notwithstanding
					 other requirements of this section, the Security Fund may submit a written
					 request to the Chief that any private self-insured employer otherwise excluded
					 from participation in the alternative composite deposit program be included,
					 and the Chief, upon such written request, may grant the request; the written
					 request shall identify the private self-insured employer and shall state the
					 reasons that such private self-insured employer should be included in the
					 alternative composite deposit.