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 8 - Transfer of Liabilities
Section 15360 - Transfer of Claim Liabilities
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
A current or former self insurer may transfer claim liabilities to a third party as set forth in subsections (a) through (e) of this section.
(a) Self-insured workers' compensation claim liabilities cannot be transferred to another entity without first applying for and receiving permission from the Director. Except as provided in Labor Code Section 3702.8(c), the claim liabilities being transferred shall be assumed and guaranteed with the standard Agreement of Assumption and Guarantee of Liabilities as provided for in Section 15211.2 of these regulations, with an assumption resolution executed by the Board of Directors if a corporation, by the general partners if a partnership, or by the owners if a sole proprietorship of the entity taking over the liabilities.
(b) The Manager may authorize the contractual transfer of claim liabilities, other than through a special excess worker's compensation insurance policy, from a self-insurer to an admitted worker's compensation insurance carrier provided:
(c) Where a former self-insurer transfers liabilities to a carrier via a special excess workers' compensation insurance policy as provided in Labor Code Section 3702.8(c), but no carrier performance bond is posted, the self-insurer's security deposit shall be held for three years before release. Whether a performance bond is posted or not, the director shall not accept the special excess policy as meeting the requirements of Labor Code Section 3702.8(c)(3) unless the excess carrier or its parent company has an acceptable credit rating as set forth below:
(d) Claim liabilities of a member public agency of a pooling workers' compensation joint powers authority may be transferred if:
(e) Private group self insurers and/or their group members or former group members shall not transfer their claim liabilities except as provided by Labor Code Section 3702.8(c) and subsection (c) of this section, or as provided by either subsection (f) or subsection (g) of this section.
(f) A current or former group member's claims may be transferred to another private self insured group if the Bylaws of the two groups permit the transfer, and if the transfer is approved by the Manager.
(g) A current or former group member's claims may be transferred entirely to the individual member under its individual Certificate of Consent to Self Insure if all of the following apply:
1.
Amendment of article heading, repealer of section 15360, and renumbering and
amendment of former section
15361.5 to section 15360 filed
10-27-93; operative 11-26-93 (Register 93, No. 44).
2. Amendment
filed 6-30-94; operative 6-30-94 (Register 94, No. 26).
3. Amendment
filed 3-2-2009; operative 3-2-2009 pursuant to Government Code section
11343.4
(Register 2009, No. 10).
Note: Authority cited: Sections 54, 55 and 3702.10, Labor Code. Reference: Sections 129, 3700, 3700(b), 3701, 3702, 3702.5, 3702.6, 3702.8, 3703, 3705 and 3740- 3745, Labor Code.