Missouri Code of State Regulations › Title 8 - DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS › Division 50 - Division of Workers' Compensation › Chapter 3 - Self-Insurance › Section 8 CSR 50-3.010 - Rules Governing Self-Insurance

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule sets forth requirements and
				  standards for authority to self-insure an employer's liability under the
				  Workers' Compensation law.
(1) Definitions.
(A) For the purposes of this rule, the
				following terms shall mean:
1. Association-An
				organization of persons, businesses, firms, or corporations joined together for
				a certain or common purpose;
2.
				Estimated annual premium-The premium collected from a trust member that is
				computed by applying the appropriate payroll code classification rates to the
				trust member's annual payroll and multiplying the results by the experience
				modification factors of the trust member as developed by the advisory
				organization approved by the Department of Insurance, Financial Institutions
				and Professional Registration and including any other discounts and
				debits;
3. Executive
				director-Person designated by the board of trustees of that trust to oversee
				all operations of the trust and who is not an owner or employee of any service
				company;
4. Foreign corporation-A
				corporation for profit organized under laws other than the laws of this
				state;
5. Group-Not less than ten
				(10) private employers not commonly owned or ten (10) governmental entities of
				the same type;
6. Pure premium
				rate-That portion of the rate which represents the loss cost per unit of
				exposure including loss allocated and unallocated adjustment
				expenses;
7. Rate-The cost of
				insurance per exposure base unit, prior to any application of individual risk
				variations based on loss or expense considerations, and does not include
				minimum premiums;
8. Regular
				member-Those persons, businesses, firms, or corporations which meet all
				eligibility requirements and are approved for full membership into an
				association and which are also accorded all voting and membership privileges of
				the association;
9. Same industry-A
				group with employer members of a similar nature, in the same line of business,
				and using the same class codes pursuant to the uniform classification system
				filed by the advisory organization with the director of the Department of
				Insurance, Financial Institutions and Professional Registration in compliance
				with section
				287.955,
				RSMo;
10. Security-A surety bond,
				an irrevocable letter of credit, or escrow deposit to assure the fulfillment of
				payment or performance of any workers' compensation liability or obligation of
				an employer;
11. Service
				company-Any person, business, firm, or corporation that provides insurance or
				other workers' compensation administrative services, which includes, but is not
				limited to, plan administrators, claims administrators, loss control
				consultants, brokers, and agents;
12. Surplus or surplus monies-The amount by
				which the sum of total premium paid by trust members and investment income
				exceeds the sum of-
A. Losses and loss
				adjustment expenses paid;
B.
				Administrative expenses incurred;
C. Outstanding reserves for known injuries
				and occupational diseases;
D.
				Actuarially developed reserves for case reserve development and the cost of
				incurred but not reported injuries and occupational diseases; and
E. Previously paid surplus distributions;
				and
13. Trust-A
				combination of persons, businesses, firms, or corporations bound together to
				secure, jointly and severally, workers' compensation liability by holding the
				individual interests of each subservient to a common authority for the common
				interests of all. This shall also include the written instrument that creates
				the trust.