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 125.4 - Application for affiliates and subsidiaries

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An affiliate or subsidiary may be
				  included under an application submitted by another affiliate or its parent
				  company by providing information and data on the affiliate or subsidiary on a
				  separate form prescribed by and available upon request from the Bureau. The
				  related entities will be included under one consolidated permit if the
				  application is approved. A written notification shall be provided by the
				  applicant to delete an affiliate or a subsidiary from a consolidated permit
				  after its issuance.
(b) An
				  applicant shall provide a written agreement adopted by its board of directors
				  on a form prescribed by the Bureau which states that the applicant guarantees
				  the payment of all claims incurred by the affiliates or subsidiaries. The
				  applicant shall further assume liability for the payment of an affiliate's or
				  subsidiary's claims incurred during its period of self-insurance upon
				  termination of the affiliate or parent-subsidiary relationship unless the
				  applicant is relieved of this liability by the Bureau. In determining whether
				  to relieve an applicant of a subsidiary's or affiliate's liability, the Bureau
				  will consider, among other things, the financial ability of the new owner of
				  the subsidiary or affiliate to pay the liabilities, the new owner's credit
				  worthiness and the adequacy of security held by the Bureau covering the
				  liability.
(c) The guarantor may
				  not terminate the agreement under any circumstances without first giving the
				  Bureau and the affected affiliate or subsidiary 45 days written notice. The
				  affiliate's or subsidiary's self-insurance status automatically terminates upon
				  expiration of the 45-day notice period.
(d) Except as provided in §
										125.4(e), if an
				  affiliate or subsidiary not included under a consolidated application as
				  outlined in subsection (a) wishes to self-insure, it shall submit an
				  application in its own name and provide its own audited financial statements in
				  the manner indicated in §
										125.3 (relating to application).
				  The Bureau may require the parent company to furnish appropriate financial
				  information within 21 days of its receipt of written notification from the
				  Bureau of its need to do so, or by a later date if requested by the applicant
				  and approved by the Bureau.
(e) If
				  the applicant is a subsidiary of a parent company that is not incorporated or
				  organized under the laws of a state of the United States, the applicant may
				  submit its parent company's consolidated audited financial statements and an
				  unaudited consolidated balance sheet of the applicant's financial condition, or
				  other financial information on the applicant that the Bureau deems pertinent to
				  its review of the application, to satisfy the financial reporting requirements
				  of §
										125.3(c),
				  provided the parent company's audited financial statements comply with §
										125.3(c)(3)(i) and
				  (ii).
The provisions of this §
												125.4 amended under sections
						305(a) and 435(a) of the Workers' Compensation Act (77 P. S. §§
													501 and
						991(a)) and section 2205 of
						The Administrative Code of 1929 (71 P. S. §
													565).
This section cited in 34 Pa. Code §
												125.2 (relating to definitions);
						34 Pa. Code §
												125.3 (relating to application);
						34 Pa. Code §
												125.6 (relating to decision on
						application); 34 Pa. Code §
												125.9 (relating to security
						requirements); and 34 Pa. Code §
												125.15 (relating to workers'
						compensation liability).