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 15220.4 - Deposit Assessments by the Security Fund for Participants of the Alternative Composite Deposit
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) The Security Fund shall collect an annual deposit assessment from all private self insurers participating in the alternative composite deposit as follows:
EXCEPTION: Private self insurers whose Certificate of Consent to Self Insure was revoked before January 1, 2003, shall remain subject to the assessments as provided by Labor Code Section 3745.
(b) Each private self insured employer participating in an alternative composite deposit with the Security Fund shall be required to annually pay the Security Fund deposit assessment.
(c) The Security Fund shall determine the pro-rata amount of the deposit assessment for each fully participating and partially participating private self insured employer based on all the following:
(d) Where the participating self insurer has more than one credit rating from the credit rating agencies and the ratings are not in agreement, the most recently published credit rating shall be used to calculate the deposit assessment.
(e) Excluded private self insured employers shall be required to participate in the assessments. The Manager shall determine the amount of each deposit assessment due from private self insured employers excluded from participation in any alternative composite deposit and submit it to the Security Fund. The Security Fund shall collect the deposit assessments from excluded employers.
(f) The Security Fund may repay any indebtedness incurred as contemplated by Section 15220.3 from the annual deposit assessment. At the time the annual deposit assessment is determined, it may not be known whether any such indebtedness will be incurred, or the amount or repayment terms thereof. Accordingly, a portion of the annual deposit assessment may be contingent upon the actual incurrence of such indebtedness and delayed until the amount and repayment terms are known.
(g) If the Manager increases the security deposit requirement of a participating self-insured employer after the Security Fund has issued the annual assessment for the alternative composite deposit, the amount of the increase may be addressed through a supplemental assessment or by the posting of additional deposit separately as a partially participating self-insurer.
1. New
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.
2. Certificate of Compliance as to 5-30-2003 order, including
amendment of NOTE, transmitted to OAL 9-29-2003 and filed 11-12-2003 (Register
2003, No. 46).
3. Amendment of subsection (c)(4), new subsections
(d), (f) and (g) and subsection relettering 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 subsection
(c)(4), new subsections (d), (f) and (g) and subsection relettering 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).
Note: Authority cited: Sections 3701, 3701.8, 3702.10 and 3745, Labor Code. Reference: Sections 3701, 3701.8, 3701.8(b), 3702.10 and 3745, Labor Code.