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 15470 - General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In order to
					 form and operate a group self insurer for private, for-profit employers, a
					 mutual benefit corporation shall be formed pursuant to Part 3 (commencing with
					 Section 7110) of Division 2 of Title 1 of
					 the California Corporations Code. The mutual benefit corporation shall be the
					 group self insurer and shall be formed for the sole purpose of operating a
					 group workers' compensation self insurance fund to pool compensation
					 liabilities of two or more for-profit private employers.
(b) In order to form and operate a group self
					 insurer for private, non-profit employers, a non-profit corporation shall be
					 formed pursuant to Division 2 of Title 1 of the Corporations Code. The
					 non-profit corporation shall be a non-profit charitable corporation, a
					 non-profit public benefit corporation, a non-profit mutual benefit corporation,
					 or a non-profit religious or apostolic corporation, as is appropriate based on
					 the nature and purpose of the non-profit employer. The non-profit corporation
					 shall be the group self insurer and shall be formed for the sole purpose of
					 operating a group workers' compensation self insurance fund to pool
					 compensation liabilities of two or more non-profit private employers.
(c) The group self insurer will make
					 application to the Manager for a Certificate of Consent to Self Insure as
					 provided in Section
					 15482 of these regulations and, if
					 granted approval by the Director, shall be the holder of the Certificate of
					 Consent to Self Insure.
(d) Each
					 initial proposed group member shall make application to the Manager for an
					 Affiliate Certificate of Consent to Self Insure as one of the qualifying group
					 applicants pursuant to Section
					 15482.1 of these regulations. Once
					 a Certificate of Consent to Self Insure has been approved and issued, each
					 subsequent proposed member shall make application to the Manager for an
					 Affiliate Certificate of Consent to Self Insure pursuant to Section
					 15482.2 of these regulations. If
					 granted by the Director, each approved member of a group self insurer shall be
					 the holder of an Affiliate Certificate of Consent to Self Insure under the
					 Certificate of Consent to Self Insure granted to the group self
					 insurer.
(e) The group self insurer
					 shall post and maintain a security deposit with the Manager as set forth in
					 Sections 15210 and
					 15496 of these regulations to
					 secure the expected workers' compensation liabilities of the group self
					 insurer.
(f) The group self insurer
					 shall file a Self Insurer's Annual Report as set forth in Article 5 of these
					 regulations and shall estimate compensation liabilities as set forth in Article
					 6 of these regulations.
(g) The
					 group self insurer shall not transfer liabilities to a third party except to a
					 carrier meeting the requirements of Section
					 15360(c) under a
					 special excess workers' compensation policy as provided by Labor Code Section
					 3702.8(c)
					 and/or as provided by Article 8, Section
					 15360 of these
					 regulations.
(h) The group self
					 insurer shall fall under the continuing jurisdiction of the Director and any
					 Certificates or Affiliate Certificates of Consent to Self Insure issued to a
					 group self insurer or a group member may be revoked as set forth in Article 10
					 of these regulations.
(i) Hearing
					 and appeal procedures set forth in Article 11 shall be applicable to self
					 insurance matters set forth in Section
					 15430 involving group self insurers
					 or group members.
(j) Each group
					 self insurer shall comply with recordkeeping and audit requirements in Article
					 9 and the claims administration requirements of Article 12 of these
					 regulations.
(k) Each private group
					 self insurer shall be subject to assessments as set forth in Article 4 of these
					 regulations.
(l) A group self
					 insurer issued a Certificate of Consent to Self Insure pursuant to Labor Code
					 Section
					 3700 and these
					 regulations are not intended to deem such a group self insurer to be an
					 insurance company and be subject to regulations governing insurers contained in
					 Title 10, California Code of Regulations, except as otherwise provided by
					 statute and by Title 8, California Code of Regulations.
1. New
						article 13 and section filed 6-30-94; operative 6-30-94 (Register 94, No.
						26).
2. Amendment filed 3-2-2009; operative 3-2-2009 pursuant to
						Government Code section
						11343.4
						(Register 2009, No. 10).
3. Amendment of article heading filed
						12-14-2016; operative 1-1-2017 pursuant to Government Code section
						11343.4(b)(3)
						(Register 2016, No. 51).
Note: Authority cited: Sections
						  54,
						  55 and
						  3702.10, Labor
						  Code. Reference: Sections
						  59,
						  3700,
						  3701,
						  3701.5,
						  3702,
						  3702.2,
						  3702.5 and
						  3702.10, Labor
						  Code.