Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Each member of a group self-insurer shall
execute an Indemnity Agreement and Power of Attorney Form S-4
(1-2016).
(b) The Indemnity
Agreement and Power of Attorney shall contain, in substance, the following
provisions:
(1) An agreement under which each
member of a group self-insurer agrees to assume and discharge, jointly and
severally, any compensation liability under Labor Code Section
3700 -
3705 of any and all other employers
that are parties to the group self-insurer indemnity agreement;
(2) The agreement provides that, in addition
to the rights of the group self-insurer to enforce the indemnity agreement in
the event of a failure of the group self-insurer to enforce such rights after
reasonable notice to the group self-insurer, the Director of Industrial
Relations independently shall have the right to enforce the indemnity agreement
on behalf of the group self-insurer including the joint and several liability
of group members for payment of all compensation liabilities under the
indemnity agreement and the liability of group members for any unpaid
contributions and assessments;
(3)
Provisions requiring that the Board of Trustees of the group self-insurer
designate and appoint a Group Administrator empowered to accept the service of
process on behalf of the group members and authorized to act for and bind the
group self-insurer and all group members in all transactions relating to or
arising out of the operation of the group self-insurer;
(4) Provisions for the right of the Director
of Industrial Relations to substitute an outside Conservator for the Group
Administrator;
(5) A provision
granting full power of attorney and signature authority to the Group
Administrator of the group self-insurer to execute documents, enter contracts,
accept service of process on behalf of the group self-insurer, and conduct the
general business of the group self-insurer, and, that said signature of the
Group Administrator shall bind each and every group member jointly and
severally. Note: A copy of S-4 (1-2016), Indemnity Agreement and Power of
Attorney is available from the Chief and is available at
http://www.dir.ca.gov/osip and
is contained in the Appendix following Article 12 of Chapter 8, Subchapter
2.
1. New
section filed 6-30-94; operative 6-30-94 (Register 94, No. 26).
2.
Amendment filed 3-2-2009; operative 3-2-2009 pursuant to Government Code
section 11343.4 (Register 2009, No. 10).
3. Amendment of subsections
(a) and (a)(5) filed 12-14-2016; operative 1-1-2017 pursuant to Government Code
section 11343.4(b)(3) (Register 2016, No. 51).
Note: Authority cited: Sections
54,
55 and 3702.10, Labor Code.
Reference: Sections
3700,
3701, 3701.5,
3702, 3702.1, 3702.2, 3702.3,
3702.5, 3702.7 and 3702.10, Labor
Code.
