Washington Administrative Code › Title 200 - Enterprise Services, Department of › RISK MANAGEMENT › Chapter 200-150 - Self-insurance requirements as to nonprofit corporations › Section 200-150-03001 - Standards for solvency-Actuarially determined liabilities, program funding and liquidity requirements

Current through Register Vol. 24-14, July 15, 2024
(1) All
				joint self-insurance programs shall obtain an annual actuarial review as of
				fiscal year end which provides written estimates of the liability for unpaid
				claims measured at the expected level and the seventy, eighty, and ninety
				percent confidence level.
(2) The
				governing body of the joint self-insurance program shall establish and maintain
				primary assets in an amount at least equal to the unpaid claims estimate at the
				expected level as determined by the program's actuary as of fiscal year end.
				All joint self-insurance programs meeting this requirement shall be considered
				in compliance with the primary asset test. All joint self-insurance programs
				that do not meet the requirements of the primary asset test shall notify the
				state risk manager in writing of the condition. The state risk manager shall
				take corrective action, which may include the service of a cease and desist
				order upon the program, to require that the program increase primary assets in
				an amount equal to the unpaid claims estimate at the expected level as
				determined by the program's actuary as of fiscal year end.
(3) The governing body of every joint
				self-insurance program operating under this chapter shall establish and
				maintain total primary and secondary assets in an amount equal to or greater
				than the unpaid claim estimate at the eighty percent confidence level as
				determined by the program's actuary as of fiscal year end.
(4) All joint self-insurance programs
				authorized by chapter 109, Laws of 2015 shall meet the requirements of both the
				primary asset test and the total asset test. The governing body of all joint
				self-insurance programs that do not meet requirements of the total asset test
				shall notify the state risk manager in writing of the condition. The state risk
				manager shall require that the program submit a written corrective action plan
				to the state risk manager within sixty days of notification. Such plan shall
				include a proposal for improving the financial condition of the self-insurance
				program and a time frame for completion. The state risk manager shall approve
				or deny the proposed plan in writing within thirty days of receipt of the final
				plan submission.
Joint self-insurance programs operating under an approved
				  plan and making satisfactory progress according to the terms of the plan shall
				  remain under supervisory watch by the state risk manager until the terms of the
				  approved plan have been met. Programs under supervisory watch but not making
				  satisfactory progress may be subject to the following requirements:
(a) Increase in frequency of examinations,
				the cost of which shall be the responsibility of the program;
(b) Submission of quarterly
				reports;
(c) On-site monitoring by
				the state risk manager; or
(d)
				Service of a cease and desist order upon the program.