California Code of Regulations
Title 8 - Industrial Relations
Division 1 - Department of Industrial Relations
Chapter 8 - Office of the Director
Subchapter 2 - Administration of Self-Insurance Plans
Article 13 - Group Self-Insurance
Section 15481 - Actuarial Studies and Summaries
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) The group administrator for current and former Self-Insured Groups that are required to file a Self-Insurer's Annual Report shall cause a qualified actuary to submit on the group's behalf to the Office of Self-Insurance Plans (OSIP) a complete actuarial study by program year of its historical loss development and actuarial summary not later than April 15 of each calendar year with a valuation date of December 31 of the immediately prior calendar year. The summary shall be prepared and submitted via an online platform provided by OSIP with a copy of the complete actuarial study attached.
(b) The actuarial study shall identify the group self-insurer's losses at the undiscounted 'expected level' also commonly known as the undiscounted 'actuarial central estimate' including each of the following components: incurred but not reported (IBNR) liabilities, Allocated loss adjustment expense (ALAE), Unallocated loss adjusted expense (ULAE) and case reserves. The expected losses shall be reported at both the gross and net amounts of excess insurance values. Included with the actuarial study shall be a separate page or pages with the following information for each program year reported on the Self-Insurer's Annual Report:
(c) The actuarial study shall identify the estimated future liabilities reported in the Private Self-Insurer Annual Report filed by the self-insurer's Third Party Administrator(s).
(d) The actuarial study and summary shall clearly identify any excess coverage by carrier, policy year and self-insured retentions, by year.
(e) The actuary shall declare in the study and the summary that the study and report may be used by the State of California and the Self-Insurers' Security Fund to set appropriate collateral and deposit amounts, and for any other regulatory purpose under these regulations.
(f) The actuarial study and summary shall specify that it is prepared for use by the Department of Industrial Relations, Office of Self-Insurance Plans and the Self-Insurers' Security Fund. The Office of Self-Insurance Plans and the Self-Insurers' Security Fund may share the study and report with consultants retained by the Department of Industrial Relations or the Self-Insurers' Security Fund for official purposes in accomplishing the purposes of these regulations.
(g) The actuarial study must include all of and only the group self-insurer's California self-insured liabilities for the master certificate holder and all affiliate or subsidiary certificate holders related to the master certificate.
(h) Failure by a group administrator to cause a timely actuarial study and summary to be submitted on the group's behalf shall constitute good cause grounds for revocation of the group self-insurer's self-insurance Certificate.
(i) The Chief may accept or reject any actuarial study or summary that does not fully satisfy the criteria of this section and require a second study and summary by another qualified actuary that does fully satisfy the criteria of this section to the Chief be completed and submitted to OSIP at the self-insurer's expense.
1. New
section filed 6-30-94; operative 6-30-94 (Register 94, No. 26).
2.
Amendment of section heading and section filed 3-2-2009; operative 3-2-2009
pursuant to Government Code section 11343.4 (Register 2009, No.
10).
3. Amendment of subsection (c) filed 9-19-2011; operative
10-19-2011 (Register 2011, No. 38).
4. Amendment of section heading
and repealer and new section filed 12-31-2012 as an emergency; operative
1-1-2013 pursuant to Government Code section 11346.1(d) (Register 2013, No. 1).
A Certificate of Compliance must be transmitted to OAL by 7-1-2013 or emergency
language will be repealed by operation of law on the following
day.
5. Certificate of Compliance as to 1-1-2013 order, including
nonsubstantive amendments, transmitted to OAL 7-1-2013 and filed 8-13-2013
(Register 2013, No. 33).
6. Amendment of subsections (a)-(a)(1),
(a)(3) and (a)(4)-(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 and 3702.10, Labor Code.