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 - Security Deposit Requirements
Section 15213 - Approved Securities
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Approved securities shall be only those securities which meet the following:
EXCEPTION 1. Securities issued by the State of California shall have a rating of B or better.
EXCEPTION 2. Securities in registered, physical form that meet all requirements of this section are acceptable until January 1, 1997 for posting by a self insurer. After that date, all securities shall be in book entry form.
(b) Any private self insurer desiring to post or have released approved securities shall provide the Manager with a complete description of the security or securities, including the following:
[NOTE: This is usually a bank or brokerage firm.]; and
(c) Approval by the Manager or Director, or other person authorized in writing by the Director, to the State Treasurer shall be required on all securities to be posted or released and the Manager shall transmit the approval order to the State Treasurer.
NOTE: The current model letter to request approval of securities is contained in Plate G of the Appendix following the last Article in these Subchapter 2 regulations.
(d) The Manager shall value approved securities at par value or market value, whichever is less, when computing the security deposit represented by the securities for any private self insurer. Each self insurer posting securities shall provide a statement of the current market value of the security or securities annually to the Manager on their Self Insurer's Annual Report as required by Section 15251(b)(6).
(e) No approved security shall be accepted for deposit at above its par value. Additional deposits of approved securities shall be required at any time when the market value of an approved security falls below its par value.
(f) The Manager may order called or matured securities to be redeemed by the State Treasurer and the resulting cash returned to or deposited in trust on behalf of the self-insured.
(g) Any self insurer with securities on deposit may request the release of the securities upon the posting of replacement security or upon the determination of the Manager that the securities represent surplus deposit above that required by Labor Code Section 3701 and these regulations.
*NOTE: The usual practice of the State Treasurer is to contact the delivery agent for the specific wire instructions for processing the securities transaction into or out of the State Treasurer's custodian account.
1.
Editorial correction to Form Nos. A4-30 and A4-31 (Register 74, No.
47).
2. Repealer and new section filed 12-22-92; operative 1-21-93
(Register 93, No. 2).
3. Amendment of subsections (a)(1) and (a)(2),
repealer and new subsection (a)(3), and addition of footnote to subsection
(a)(2) filed 12-23-96; operative 1-1-97 pursuant to Government Code section
11343.4(d) (Register 96, No. 52).
Note: Authority cited: Sections 54, 55 and 3702.10, Labor Code. Reference: Sections 59, 3700, 3701, 3701.5, 3702, 3702.6, 3702.10, 3703, 3705 and 3740 - 3745, Labor Code.