Pennsylvania Code › Title 34 - LABOR AND INDUSTRY › Part VIII - Bureau of Workers' Compensation › Chapter 125 - WORKERS' COMPENSATION SELF-INSURANCE › Subchapter A - INDIVIDUAL SELF-INSURANCE › Section 125.2 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this
					 subchapter, have the following meanings, unless the context clearly indicates
					 otherwise:
Act
-The Workers' Compensation Act
					 (77
					 P. S. §§
											1-1041.4,
					 2501-2506 and
					 2701-2708).
Active self-insurer
-A self-insurer that is
					 not a runoff self-insurer.
Actuary
-A member in good standing of the
					 Casualty Actuarial Society or a member in good standing of the American Academy
					 of Actuaries.
Adequate accident and illness prevention
					 program
-A determination by the Bureau under Chapter 129 (relating to
					 workers' compensation health and safety) that a self-insured employer's
					 accident and illness prevention services fulfill the program and service
					 requirements as stated in that chapter.
Affiliates
-Employers which are closely
					 related through common ownership or control.
Aggregate excess insurance
-Insurance under
					 which the insurer pays on behalf of or reimburses a self-insurer for its
					 payment of benefits on claims incurred during a policy period in excess of the
					 retention amount to the insurer's liability limit.
Applicant
-An employer requesting
					 permission to initiate or to renew self-insurance, an employer requesting
					 permission for it and its affiliates or subsidiaries to initiate or to renew
					 self-insurance, or a parent company requesting permission for its subsidiaries
					 to initiate or to renew self-insurance.
Authorized retention amount
-A retention
					 amount that is equal to or is less than a self-insurer's maximum quick assets
					 exposure amount or the current standard retention amount, whichever is less, or
					 the special retention amount approved by the Bureau.
Bureau
-The Bureau of Workers' Compensation
					 of the Department.
Cash flow protection amount
-The maximum
					 amount of benefits a self-insurer pays over a 2-year period on an occurrence
					 without reimbursement from an insurer under a specific excess insurance policy
					 with a per year per occurrence cash protection plan.
Catastrophic loss estimation
-The greater
					 of the following:
(i) The largest
				  number of employees anticipated to work at one time during a work day at the
				  largest location in this Commonwealth in terms of the applicant's employment,
				  or the employment of any of its affiliates or subsidiaries under a consolidated
				  permit under §
										125.4 (relating to application for
				  affiliates and subsidiaries), multiplied by the current Statewide average
				  weekly wage multiplied by 500.
(ii)
				  The current Statewide average weekly wage multiplied by 5,000.
Claims service company
-An individual,
					 corporation, partnership or association engaged in the business of servicing a
					 self-insurer's claims, including the adjusting and handling of claims, the
					 payment of benefits and the provision of required reports.
Commonwealth
-The term includes the
					 following:
(i) The government of the
				  Commonwealth, including the following:
(A) The
				  courts and other officers or agencies of the unified judicial system.
(B) The General Assembly, and its officers
				  and agencies.
(C) The Governor, and
				  the departments, boards, commissions, authorities and officers and agencies of
				  the Commonwealth.