Kansas Administrative Regulations › Agency 51 - DEPARTMENT OF LABOR-DIVISION OF WORKERS COMPENSATION › Article 14 - SECURING PAYMENT OF COMPENSATION BY INSURANCE AND SELF-INSURANCE › Section 51-14-4 - Self-insurance

Current through Register Vol. 43, No. 28, July 11, 2024
An employer operating under the act shall only become qualified
				as a self-insurer through the process of applying to the division of workers'
				compensation for a self-insurance permit. An employer making an application
				shall, upon the request of the director, submit information that the director
				may require to effectively evaluate the financial status of the employer. An
				application for a self-insurance permit or a self-insured employer seeking a
				renewal permit, shall, if the director requests, pay the fees of a consultant
				approved by the division of workers' compensation to determine if the employer
				has the financial ability to become self-insured or to have his self-insurance
				permit renewed.
The applicant for a new permit or an employer seeking a renewal
				permit shall furnish to the division of workers' compensation a bond written by
				a surety company admitted to the state, and authorized by the Kansas insurance
				department to write surety bonds as required by the division. The bond shall be
				in an amount to adequately insure that if the employer should become insolvent,
				payments on all claims will be guaranteed to the injured workers.
The applicant for a new permit or an employer seeking a renewal
				permit shall furnish a certificate of excess insurance in an amount that may be
				required by the division of workers' compensation, and the division shall be
				notified by the self-insured and insurance carrier at least 20 days prior to
				the cancellation or non-renewal of any excess insurance policy. The excess
				workers' compensation insurance shall be in conformity with Kansas insurance
				statutes and regulations of the Kansas insurance commissioner.
An applicant for a new permit or an employer seeking a renewal
				permit shall set up financial reserves, furnish letters of credit or provide
				other security in amounts and in a manner directed by the division of workers'
				compensation to insure the payment of all workers' compensation claims as may
				be required by the Kansas workers' compensation act.
An employer shall furnish to the division of workers'
				compensation any other information the division may request which will aid in
				fairly and adequately evaluating an application for a new or a renewal permit
				for self-insurance.
The self-insurance permit of any employer shall expire on the
				anniversary date of the issuance of a self-insurance permit and any anniversary
				date thereafter, except when it has been renewed by the division prior to that
				date. The employer shall furnish any information that the division of workers'
				compensation may require to effectively evaluate an application to renew a
				self-insurance permit at least 45 days prior to the anniversary date of the
				original permit.
An employer whose original or renewal application for
				self-insurance has been denied, or who takes exception to insurance or reserve
				requirements may request a reconsideration by the division of workers'
				compensation. The request shall be made within 20 days of the receipt by the
				employer of the information which the applicant wishes reconsidered. If the
				employer desires to have a record of the hearing, the reporter's costs shall be
				assessed to the employer.