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 3.1 - Alternative Composite Deposits
Section 15220 - Participation in Alternative Composite Deposits
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) All private self-insured employers, active or revoked, shall be annually determined by the Chief to be either eligible or non-eligible for participation in the alternative composite deposit program. Participation shall be as a fully participating self-insured employer or as a partially participating self-insured employer as provided in subsection (c)(1).
(b) All non-eligible self-insurers shall be deemed "excluded". The following self-insured employers shall be excluded from the alternative composite deposit program:
(c) All private self-insured employers determined by the Chief to be eligible shall be required to participate in the alternative composite deposit program.
(d) To qualify as a fully participating private self-insured employer, the employer shall meet all the following requirements:
In the event of multiple ratings for the same self-insured employer, the most recently published rating shall be utilized.
(e) The following self-insured employers shall qualify as partially participating members of the alternative composite deposit program:
(f) Excluded self-insured employers shall not be eligible for any portion of their security deposit to be covered by the alternative composite deposit. The excluded private self-insurer shall continue to secure its workers' compensation liabilities as required in Article 3 and to pay assessments as provided in Article 4 of this subchapter 2.
(g) Any private self-insured employer that is eligible only as a partially participating member or is excluded to participate in the alternative composite deposit shall post the balance of the amount of required security deposit with the Director pursuant to Labor Code Section 3701 and Article 3 of this subchapter 2.
(h) For cause, the Chief may downgrade an eligible private self-insured employer from:
Cause may include, but is not limited to, failure to submit the Self-Insurers' Annual Report and/or failure to estimate future claim liabilities on the Self-Insurers' Annual Report fully pursuant to Section 15300 as determined in an audit; failure to file a complete and timely Actuarial Study and Summary; upon written request by the Self-Insurers Security Fund to down grade an employer's status; inclusion of claim liabilities of subsidiaries or affiliates in their self-insurance program that have not been granted a Certificate to Self-Insure by the Director; failure to post a security deposit pursuant to Labor Code Section 3701 and these regulations; failure to meet the financial requirements for self-insurance pursuant to Section 15203.1; failure to submit a Guaranty of Workers' Compensation Liabilities pursuant to Section 15203.1; and/or, failure to pay any assessments, fees, and/or penalties pursuant to Labor Code Section 3702.9, this article, and/or Articles 4 or 9 of this subchapter 2.
1. New
article 3.1 (sections 15220-15220.8) and section filed 5-30-2003 as an
emergency; operative 5-30-2003 (Register 2003, No. 22). A Certificate of
Compliance must be transmitted to OAL by 9-29-2003 or emergency language will
be repealed by operation of law on the following day. For prior history of
sections 15220-15221, see Register 93, No. 2.
2. Certificate of
Compliance as to 5-30-2003 order transmitted to OAL 9-29-2003 and filed
11-12-2003 (Register 2003, No. 46).
3. Amendment of subsections
(b)(12) and (d)(3)(B) and amendment of NOTE filed 7-6-2004 as an emergency;
operative 7-6-2004 (Register 2004, No. 28). A Certificate of Compliance must be
transmitted to OAL by 11-3-2004 or emergency language will be repealed by
operation of law on the following day.
4. Amendment of subsections
(b)(12) and (d)(3)(B) and amendment of NOTE refiled 11-3-2004 as an emergency;
operative 11-3-2004 (Register 2004, No. 45). A Certificate of Compliance must
be transmitted to OAL by 3-3-2005 or emergency language will be repealed by
operation of law on the following day.
5. Certificate of Compliance
as to 11-3-2004 order transmitted to OAL 1-26-2005 and filed 3-8-2005 (Register
2005, No. 10).
6. Amendment 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 3701, 3701.8 and 3702.10, Labor Code. Reference: Sections 3701 and 3701.8, Labor Code; and Section 6527, Government Code.