Section 408.43g. Group self-insurers' admission of new members; termination of individual members; notice; records.

g. (1) After the inception date of   the  fund,  prospective   new members of the fund shall submit an application for membership to the board of trustees, or its designated representative, on a form approved  by the bureau. The board of trustees or its designated  representative  may approve the application for membership pursuant to the bylaws of the group self-insurers' fund. The original signed application for membership shall then be filed with the bureau in Lansing. Membership shall take effect after approval by the bureau.

(2)   After a group fund has completed 1 year of  operation,   application may be made to the director to authorize the  group  fund  to  accept  new members without prior bureau approval. The application shall be   submitted on forms provided by the

bureau and shall define all businesses that will be accepted in the same industry within the  group.  The   application  shall define the financial standards that  will  be   applied by   the   group   in accepting new members.

(3)    If approved, the group shall submit confirmation of membership to the bureau on form 650, group self-insurance fund notice of acceptance of membership, together with a copy of the individual membership application and the financial report provided by the member. If the employer is a partnership, the notice shall state the names and addresses of all the partners. If the employer is doing business under an assumed name, the notice shall state the assumed name and each Michigan location covered. If the employer is a corporation doing business through a number of divisions, the notice shall state the names of all the divisions of the corporation. The bureau shall be notified when any group fund receives a change of address of a member.

(4)   Individual members may elect to terminate their participation in a group self- insurers' program or be subject to cancellation  by   the   group pursuant to  the   bylaws of the group fund.  However,  termination  or cancellation shall take place not less than 20 days after the bureau  has received notice of the termination or cancellation from the group fund reported to the bureau on form 651, group self-insurance fund notice  of termination of membership. If the employer is a   partnership,   the   notice shall state the names and addresses of all the partners. If the employer is doing business under an  assumed  name,  the    notice   shall   state   the assumed name and the names of all parties doing business under the assumed name. If the employer is a corporation doing business under a number of divisions, the notice shall state the names of all the divisions of  the corporation. If a business changes names, notice shall  be  given stating both the new and former names.

(5)   The chairman of  the  board  of  trustees  or,  at  the  chairman's designation, the administrator shall be responsible for maintaining all records of the   fund.  The fund shall maintain all  of  the   following documents with respect to records:

(a) Forms 100, 101, 102, 701, and 107.

(b)  Redemption papers.

(c)   Excess workers' compensation policies.

(d)  Spreadsheets containing premium audit summaries.

(e)   Contracts with the group's claims service and administrator.

(f)  A complete set of claim loss runs as of the end of each fiscal year.

(g)   Certified audit reports.

(h)   Minutes of trustee and annual meetings.

(i)   Group renewal applications and related documents.

(j)         Individual    membership     applications       containing       signed       indemnity agreements.

The records shall  be  retained  for  not  less   than  30  years   and   the administrator or board of trustees shall know the location of the records at all times. All records of the fund are the property of the fund. If the records are held by the funds service company, the records shall immediately be surrendered to the fund upon the fund's request.

History: 1980 AACS; 1984 AACS; 1996 AACS.