Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 67.00 - Workers' Compensation Self-insurance Groups › Section 67.11 - New Members; Cancellation of Members; Insolvency or Bankruptcy of Members; Changes in Premium

Current through Register 1525, July 5, 2024
(1) An employer
			 seeking to join a group after the group has been issued a certificate of
			 authority shall submit an application for membership, pursuant to
			 211 CMR
			 67.06(2)(c)  1. to the board
			 of trustees, or its administrator, if so authorized by the board under
			 211 CMR
			 67.07(2)(b), and, unless the
			 employer is a public employer, enter into the indemnity agreement required by
			 211 CMR
			 67.06(2)(c)3.b. Membership
			 shall take place no earlier than the board's or the administrator's approval of
			 such employer for membership in the group. If the administrator is permitted to
			 approve members, such membership shall terminate at the next meeting of the
			 board of trustees, unless ratified by the board, and recorded in the minutes.
			 The application for membership and its approval shall be maintained as
			 permanent records of the board of trustees. The administrator shall notify the
			 Office of Insurance of the Department of Industrial Accidents within five
			 business days of the name and address of the new member of the group, including
			 in its notification the member's policy number.
(2) Individual members of the group shall be
			 subject to cancellation by the group pursuant to the by-laws of the group. In
			 addition, individual members may elect to terminate their participation in the
			 group in accordance with such by-laws. The group shall notify the Commissioner
			 and the Office of Insurance of the Department of Industrial Accidents of the
			 termination or cancellation of a member within ten days and shall maintain
			 coverage of each canceled or terminated member for 30 days after receipt of
			 such notice, with the canceled or terminated member responsible for the premium
			 for such period, unless the group is notified sooner that the canceled or
			 terminated member has procured workers' compensation insurance, has become a
			 self-insurer, or has become a member of another group.
(3) The group shall pay all workers'
			 compensation benefits for which each member incurs liability during its period
			 of membership. A member of a group containing private employers, which elects
			 to terminate its membership or is canceled by the group, shall remain jointly
			 and severally liable for the workers' compensation obligations of the group and
			 its members which were incurred during its period of membership.
(4) A group member is not relieved of its
			 workers' compensation liabilities incurred during its period of membership
			 except through payment by the group or the member of required workers'
			 compensation benefits.
(5) For a
			 group containing private employers, the dissolution, insolvency or bankruptcy
			 of a member shall not relieve the group or any member of the group of liability
			 for the payment of workers' compensation benefits incurred during the insolvent
			 or bankrupt member's period of membership.
(6) Whenever, as the result of the addition
			 of new members, including affiliates of existing members, the in-force premium
			 of the group shall grow by more than ten percent, the board of trustees shall
			 submit to the Commissioner a list of the new members or additional affiliates
			 of existing members, along with payroll data, estimated annual premium, and an
			 interim report of the total in-force premium of the entire group. To determine
			 whether or not the in-force premium has increased by 10%, the group shall
			 compare the revised in-force premium with the in-force premium on the first day
			 of the fund year, and when a later report is filed in accordance with
			 211 CMR
			 67.08(3)(a), with such later
			 report. Any new member shall meet the eligibility standards prescribed in
			 211 CMR
			 67.06. A group shall have a continuing
			 obligation to meet the minimum financial standards prescribed in
			 211 CMR
			 67.08.
(7) The group shall adjust its excess
			 insurance or reinsurance coverage and security deposit or bond and fidelity
			 bond as a result of such
10%
or greater change in premium or
			 payroll in accordance with the provisions of
			 211 CMR
			 67.06(2)(b)9., 67.08(2)(d)
			 and 67.21(3). The Commissioner may require the group to make other changes as
			 he or she considers appropriate to ensure that the group is able to meet its
			 workers' compensation obligations.