Washington Administrative Code › Title 200 - Enterprise Services, Department of › RISK MANAGEMENT › Chapter 200-160 - SELF-INSURANCE REQUIREMENTS AS TO PUBLIC BENEFIT HOSPITAL ENTITIES JOINT SELF-INSURANCE PROGRAMS › Section 200-160-140 - 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, as described in WAC 200-160-020(18), 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 48.190 RCW 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.