Ohio Administrative Code › Title 4123 - Bureau of Workers' Compensation › Chapter 4123-17 - General Rating for the State Insurance Fund › Section 4123-17-61.1 - Sponsorship certification requirements

Current through all regulations passed and filed through July 1, 2024
(A) The following certification requirements
			 shall apply to all sponsoring organizations that seek to make application for
			 either the group rating plan , as provided for in rule
			 4123-17-61
			 of the Administrative Code, or the group retrospective rating plan as provided in rule
			 4123-17-73
			 of the Administrative Code, known collectively as group programs.
(B) The sponsoring organization must have
			 been in existence for at least two years prior to the last date upon which the
			 group's application for coverage may be filed with the bureau of workers'
			 compensation as provided in rule
			 4123-17-62
			 of the Administrative Code.
(C)
			 The organization must be formed for a purpose other than that of obtaining
			 group workers' compensation coverage. The bureau shall require the organization
			 to demonstrate this through submission of required evidence and documentation.
			 As long as all of the other criteria of this rule are satisfied, a parent
			 corporation may be a sponsoring organization and, if it qualifies under the
			 criteria of this rule, a member of a group of its subsidiary corporations for
			 purposes of group programs. A sponsoring organization may sponsor more than one
			 group.
(D) The formation and
			 operation of a group program in the organization must substantially improve
			 accident prevention and claims handling for the employers in the group. The
			 bureau shall require the group to document its plan or program for these
			 purposes, and, for groups reapplying annually for group coverage, the results
			 of prior programs.
Following the conclusion of 
									each policy
				year, the bureau will report annually on the aggregate performance of all
				groups.
(E) A sponsoring
			 organization shall satisfy all of the requirements for a sponsoring
			 organization as required under section
			 4123.29 of the Revised Code and
			 in this rule. A sponsoring organization shall submit to the bureau information
			 to demonstrate that the organization meets the requirements for sponsorship.
			 The bureau shall review the information and shall register the sponsoring
			 organization if it meets the requirements. A sponsoring organization shall be
			 registered and be certified by the bureau prior to marketing to or soliciting
			 employers for membership in a group under the group programs.
(1)
									. 
									Once the bureau certifies a sponsoring
			 organization, the sponsoring organization shall be permitted to sponsor a group
			 retrospective rating program under rule
			 4123-17-73
			 of the Administrative Code, 
									as well as groups in the current group
			 experience rating program under this rule
			 beginning 
									the next rating year.
The bureau shall review the certification of a sponsoring
				organization at least once every three years or on a more frequent basis as
				determined by the bureau.
(2) A sponsoring organization that seeks to
			 be certified by the bureau shall provide to the bureau the following:
(a) The sponsoring organization's workers'
			 compensation policy number and proof of active workers' compensation coverage;
(b) The name of the sponsoring
			 organization's third party administrator, if applicable;
(c) A copy of the sponsoring organization's
			 marketing materials (web site, brochures, etc.), including a description of the
			 services related to group rating as well as other services provided by the
			 sponsor;
(d) A list of all
			 sponsoring organizations affiliated with the sponsoring organization. For the
			 purpose of this rule, an "affiliated" organization is an organization in which
			 members are brokered, borrowed, shared, or co-opted for inclusion in the
			 certified sponsoring organization's group. All affiliated organizations are
			 required to be certified sponsors as provided in this rule.
(e) A copy of the sponsoring organization's
			 articles of incorporation;
(f) A
			 copy of the sponsoring organization's mission statement;
(g) A completed application form, signed by
			 the sponsor, which includes disclosure of nine-hundred-ninety filings with the
			 Internal Revenue Service and counts of all members (both group and non-group);
(h) A copy of the sponsor's safety
			 plan.
(i) With reasonable notice,
			 the bureau may request that a sponsor provide for the bureau's inspection at
			 the sponsor's designated location any of the following: additional financial
			 information, dues structure, revenue sources, a table of organization, a
			 comprehensive membership roster, by-laws, and/or a list of corporate officers.