Code of Colorado Regulations
1100 - Department of Labor and Employment
1101 - Division of Labor Standards and Statistics (Includes 1103 Series)
7 CCR 1101-4 - RULES GOVERNING THE ISSUANCE OF SELF-INSURANCE PERMITS UNDER THE WORKERS' COMPENSATION ACT
Part 5 - APPROVAL OR DISAPPROVAL OF THE APPLICATION

(1) An applicant or a self-insurance permit holder at the time of its annual review shall, if the Executive Director requests, pay the fees of a consultant approved by the Executive Director to determine if the employer has the financial ability to become self-insured or to have its self-insurance permit remain in force.

(2) The Executive Director will deny an application for self-insurance or revoke the self-insurance privilege if the applicant/permit holder is unable to demonstrate that the employer will be able to meet all obligations under the Act. The Executive Director may use but shall not be limited to the following factors in determining if the applicant/permit holder can meet those obligations:

(1) Notice of denial of an application or revocation of self-insured status will be mailed to the employer at the address on file at the Division. The notice will include the grounds for denial or revocation. Within fifteen (15) days of issuance of notification of denial of an application, the employer may request reconsideration by the Executive Director of the denial. The employer shall furnish with such request all information and documentation it wishes to submit for Executive Director consideration.

(2) When the Executive Director revokes a self-insured permit, the Director of the Division of Workers' Compensation shall promptly implement § 8-43-409, C.R.S., if necessary.

(3) The holder of a permit revoked by the Executive Director may not reapply for self-insured status for a minimum period of five (5) years from the effective date of revocation.

(4) The holder of a permit revoked by the Executive Director must continue to provide annual financial and/or claims data to the Executive Director until he/she is satisfied that all liabilities have been met.

(1) After considering the application and all supportive data, the Executive Director may grant approval, deny approval, or advise the employer of the requirements to be met before approval is granted. In the latter instance the employer shall be given thirty (30) days from the mailing of notice in which to comply with the requirements. Self-insurance authority is not effective until all requirements for self-insured approval have been met and a permit has been issued.

(2) The applicant may be granted additional time to meet the requirements of a self-insured. A request for an extension of time shall be made in writing by the applicant within the thirty (30) day compliance period. Failure of the applicant to meet the requirements as advised by the Executive Director within the time prescribed shall cause the application to be denied.

(3) Upon meeting the requirements, an applicant will receive a formal certificate approving its status as a self-insured employer and will be issued a block number. The certificate will be considered to be in force unless it is revoked at the Executive Director's discretion or discontinued at the request of the applicant/permit holder. Compliance with the annual review requirements as set forth by the Executive Director in Part 6 is a prerequisite to retaining a permit.