Michigan Administrative Code › Department - Labor and Economic Opportunity › Workers Compensation Agency › Workers' Compensation Agency - General Rules › Part 3 - HEARINGS › Section R. 408.43g - Group self-insurers' admission of new members; termination of individual members; notice; records

Current through Vol. 24-12, July 15, 2024
Rule 13g.
(1)
				  After the inception date of the fund, prospective new members of the fund shall
				  submit an application for membership to the board of trustees, or its
				  designated representative, on a form approved by the agency. The board of
				  trustees or its designated representative may approve the application for
				  membership pursuant to the bylaws of the group self-insurers' fund. A copy of
				  the original signed application for membership must then be filed with the
				  agency in Lansing. Membership takes effect after approval by the
				  agency.
(2) After a group fund has
				  completed 1 year of operation, application may be made to the director to
				  authorize the group fund to accept new members without prior agency approval.
				  The application must be submitted on forms provided by the agency and shall
				  define all businesses that will be accepted in the same industry within the
				  group. The application must define the financial standards that will be applied
				  by the group in accepting new members.
(3) If approved, the group shall submit
				  confirmation of membership to the agency on form WC-650, or its electronic
				  equivalent, group self-insurance fund notice of acceptance of membership,
				  together with a copy of the individual membership application and the financial
				  report provided by the member. If the employer is a partnership, the notice
				  must state the names and addresses of all the partners. If the employer is
				  doing business under an assumed name, the notice must state the assumed name
				  and each Michigan location covered. If the employer is a corporation doing
				  business through a number of divisions, the notice must state the names of all
				  the divisions of the corporation. The agency must be notified when any group
				  fund receives a change of address of a member.
(4) Individual members may elect to terminate
				  their participation in a group selfinsurers' program or be subject to
				  cancellation by the group pursuant to the bylaws of the group fund. However,
				  termination or cancellation may occur not less than 20 days after the agency
				  has received notice of the termination or cancellation from the group fund
				  reported to the agency on form WC
-
651, or its electronic
				  equivalent, group self-insurance fund notice of termination of membership. If
				  the employer is a partnership, the notice must state the names and addresses of
				  all the partners. If the employer is doing business under an assumed name, the
				  notice must state the assumed name and the names of all parties doing business
				  under the assumed name. If the employer is a corporation doing business under a
				  number of divisions, the notice must state the names of all the divisions of
				  the corporation. If a business changes names, notice must be given stating both
				  the new and former names.
(5) The
				  chairman of the board of trustees or, at the chairman's designation, the
				  administrator shall be responsible for maintaining all records of the fund. The
				  fund shall maintain all of the following documents, or their electronic
				  equivalents, with respect to records:
(a)
				  Forms WC-100, 101, 102, WC-701, and WC-107.
(b) Redemption papers.
(c) Excess workers' compensation
				  policies.
(d) Spreadsheets
				  containing premium audit summaries.
(e) Contracts with the group's claims service
				  and administrator.
(f) A complete
				  set of claim loss runs as of the end of each fiscal year.
(g) Certified audit reports.
(h) Minutes of trustee and annual
				  meetings.
(i) Group renewal
				  applications and related documents.
(j) Individual membership applications
				  containing signed indemnity agreements.
The records must be retained for not less than 30 years and
					 the administrator or board of trustees shall know the location of the records
					 at all times. All records of the fund are the property of the fund. If the
					 records are held by the funds service company, the records must immediately be
					 surrendered to the fund upon the fund's request.