Section 408.43b. Employer individual self-insurer; compliance with bureau requirements; notice; additional time; certification; renewal application.

b. (1) If the agency approves an initial application of an employer to be an individual self-insurer, then the approval shall be in writing. The approval letter shall contain the excess liability insurance terms, bond, letter of credit, and guaranties required by the agency as a condition of the self-insured authority. The employer has 30 days from the receipt of the agency’s notice in which to comply with the requirements of the agency. The self-insured authority shall not become effective until the agency has received proof that all requirements of the agency for self- insured authority have been met.

(2)   The employer may, at the discretion of the agency, be granted additional time to meet the requirements for the self-insured authority. An employer shall make a request for an extension of time in writing within the 30-day compliance period. If the agency does not receive proof that all requirements for the self-insured authority have been met within the time prescribed, then the application shall be considered withdrawn.

(3)   The agency will issue a letter certifying self-insured authority to the employer when the employer meets the requirements of the agency. The self-insured authority for all approved employers expires on the designated renewal date, which shall not be more than 12 months from the effective date of the authority. A self-insured employer shall submit a renewal application (form 402R) and requested documents, including a current financial statement and loss information, to the agency 30 days before the expiration of the self-insured authority. Upon receipt of a renewal application, the authority shall be extended until denied or approved for an additional 12 months.

History: 1980 AACS; 1998-2000 AACS; 2013 AACS.