Section 408.43f. Group self-insurance; same industry requirement; approval; review; certificate.

f. (1) After considering an application for group self-insurance and all supportive data, the bureau shall either grant approval or advise the trustees of the self- insurers' group of the    requirements     to     be     met before approval is granted. In

determining whether private employers are in  the   same  industry,   the  bureau  may use  the    standard   industrial classification codes assigned to each employer applying for membership in the group. The bureau shall also consider all information   available on the nature of the business of each private employer and may  require   the  group fund to present additional evidence, either oral or written, to verify that all employers applying for membership in  the  group  fund  meet    the statutory requirement of being in the same industry. The group shall be given 30 days from the receipt of the bureau's notice in which to comply with the requirements of the bureau. The self- insured authority shall not become effective until the bureau has received proof that all requirements of the bureau for self-insured approval have been met.

(2)   The group may,  at   the  discretion  of   the  director,  be   granted additional time to meet the requirements for the  self-insured   program.  A request for an extension of time shall be made in writing by  the  group within the 30-day compliance period. If the bureau does not receive proof that all requirements for the self-insured program have been met within the time prescribed, the application shall be considered withdrawn.

(3)   On new and renewal applications, the bureau may require evidence that the proposed rate for each payroll classification  is  adequate   to cover expected losses for that payroll classification and evidence that the experience rating formula will be actuarially sound. The bureau shall take all of the following factors into account before   granting   approval for a group self-insurance program:

(a)   Past and anticipated losses.

(b)   Proper reserves for reported and unreported losses.

(c)   Past surplus and expected increase in benefit levels.

(d)  Administrative costs.

The bureau may contract with a consulting actuary, at the expense of the group fund, to determine if the proposed group self-insurance program will be  actuarially sound.

(4)   Upon meeting the requirements of the bureau, the group shall receive a formal certificate approving its status  as  a  self-insurer.   The certificate shall expire 12 months after the effective date  of  approval.

History: 1980 AACS; 1984 AACS; 1996 AACS.