Section 408.43s. Group funds; insufficient funding; creation of trust; appointment of trustees.

s (1) If the plan to achieve full funding for payment of all claims and expenses of the self-insurers group pursuant to rule 408.43j is not approved by the bureau, then the bureau may order the board of trustees of the self-insurers group to immediately assess the employer members of the group for the full amount of the deficiency and/or  order that  any  surplus funds distributed to group members during the previous 12  calendar  months from the date of discovery of the funding deficiency by the group fund be immediately returned.

(2) If the bureau determines that the self-insurers group  ceases   to provide ongoing and active coverage to its members and/or the requirements of this rule are not sufficient to secure all future liability established

by  the workers disability compensation act of 1969, then the bureau may

require additional assessment of the employer members of the  group   and request the director to create and establish the terms of a trust, at the expense of the self- insurers group, for the deposit and administration of any assessment received and/or all assets of the self-insurers  group.   The trustees   of   the   funds  appointed  under   section

511  of  the  workers' disability compensation act shall be appointed trustees of the  self- insurers group trust fund established under this rule.

History: 2003 AACS.