Idaho Administrative Code
Title IDAPA 17 - Industrial Commission
Rule 17.01.01 - ADMINISTRATIVE RULES UNDER THE WORKER'S COMPENSATION LAW
Section 17.01.01.301 - RULES GOVERNING QUALIFICATIONS TO WRITE INSURANCE OR SELF-INSURE
Universal Citation: ID Admin Code 17.01.01.301
Current through August 31, 2023
01. Insurance Carriers. In order to gain approval from the Industrial Commission to underwrite worker's compensation insurance under Section 72-301, Idaho Code, an insurance carrier shall comply with the following requirements: (3-23-22)
a. Deposit With State Treasurer. The carrier
must receive approval from the Director of the Idaho Department of Insurance to
underwrite casualty and surety insurance under Sections
41-506 and
41-507, Idaho Code, and shall
initially deposit security in the amount of two hundred fifty thousand dollars
($250,000) with the State Treasurer, under the provisions of Section
72-302, Idaho Code.
(3-23-22)
b. Application. To
receive approval from the Industrial Commission, an insurance carrier must
supply an application with: (3-23-22)
i. A
statement from the Director of the Idaho Department of Insurance documenting
compliance with Paragraph 01.a, above; (3-23-22)
ii. The latest audited financial statement of
said carrier; (3-23-22)
iii. The
name and address of the agent for service of process in Idaho;
(3-23-22)
iv. The name and address
of the Claims Administrator employing an Idaho licensed resident adjuster or
the insurance carrier's own in-house Idaho adjusting staff with authority to
make compensation payments and adjustments of claims arising under the Act.
Each Claims Administrator shall have only one (1) mailing address on record at
the Commission for claims adjusting purposes. If more than one (1) Claims
Administrator is utilized in Idaho, a list of every such Claims Administrator
and all corresponding policyholders shall be provided; (3-23-22)
v. A statement that the carrier will
distribute blank forms that are prescribed by the Commission to its insured;
(3-23-22)
vi. A statement that all
surety bonds covering the payment of compensation will be filed with the Idaho
State Treasurer for all employers insured. All carriers will use the continuous
bond form set out on the Commission's website. (3-23-22)
vii. A statement that renewal certificates on
said bonds will be issued and filed with the Industrial Commission immediately,
when and if renewed; (3-23-22)
viii. A statement that all surety contract
cancellations will be canceled in compliance with Section
72-311, Idaho Code;
(3-23-22)
ix. A statement that said
carrier will deposit, in addition to other security required by this rule,
further security equal to all unpaid outstanding awards of compensation;
(3-23-22)
x. A statement that said
carrier will comply with the statutes of the state of Idaho and rules of the
Industrial Commission and that payments of compensation shall be sure and
certain and not unnecessarily delayed; and (3-23-22)
xi. A statement that the carrier will make
reports to the Commission as are required.
(3-23-22)
02. Self-Insured Employers. In order to gain approval from the Industrial Commission to self-insure under Section 72-301, Idaho Code, an employer shall comply with the following requirements: (3-23-22)
a. Payroll. Have an average annual Idaho
Payroll over the preceding three (3) years of at least four million dollars
($4,000,000). (3-23-22)
b.
Application. Submit a completed application, available from the Industrial
Commission's Fiscal Department, along with the application fee of two hundred
fifty dollars ($250), to the Idaho Industrial Commission, Attention: Fiscal
Department. (3-23-22)
c.
Documentation. Submit documentation demonstrating the sound financial condition
of the employer, such as the most recent CPA reviewed or, if available,
audited, financial statement. (3-23-22)
d. Claims Adjusting. Designate in writing a
Claims Administrator employing an Idaho licensed resident adjuster including
name and address. Each Claims Administrator shall have only one (1) mailing
address on record at the Commission for claims adjusting purposes.
(3-23-22)
e. Previous Claims.
Provide a history of all worker's compensation claims filed with the employer
or the employer's worker's compensation carrier, as well as all compensation
paid, during the previous five (5) calendar years. (3-23-22)
f. Excess Insurance. Provide an insurance
plan that must include excess insurance coverage and copies of all proposed
policies of excess worker's compensation insurance coverage.
(3-23-22)
g. Actuarial Study.
Provide an actuarial study prepared by a qualified actuary determining adequate
rates for the proposed self-funded worker's compensation plan based upon a
fifty percent (50%) confidence level. (3-23-22)
h. Feasibility Study. Provide a
self-insurance feasibility study that includes an analysis of the advantages
and disadvantages of self insurance as compared to current coverage, and the
related costs and benefits. (3-23-22)
i. Custodial Agreement. Set up a custodial
agreement with the State Treasurer for securities required to be deposited
under Sections
72-301 and
72-302, Idaho Code.
(3-23-22)
j. Supplemental
Information. Provide supplemental information as requested. (3-23-22)
k. Initial Security Deposit. Prior to final
approval, deposit an initial security deposit with the Idaho State Treasurer in
the form permitted by Section
72-301, Idaho Code, or a
self-insurer's bond in substantially the form as the Commission's
self-insurer's compensation bond, available on the Commission's website, in the
amount of one hundred fifty thousand dollars ($150,000), plus five percent (5%)
of the first ten million dollars ($10,000,000) of the employer's average annual
Payroll in the state of Idaho for the three (3) preceding years; along with
such additional security as may be required by the Commission based on prior
claims history. (3-23-22)
l.
Initial Guaranty Agreement. The Commission may allow or, where financial
reports or other factors such as the high risk industry of the employer
indicate the need, require an employer that is organized as a joint venture or
a wholly owned subsidiary to provide a guaranty agreement from each member of
the joint venture or the parent company. This guaranty agreement confirms the
continuing agreement of each of the joint venture members or the parent company
to guarantee the payment of all Idaho worker's compensation claims of employees
of that joint venture or subsidiary employer. The guaranty agreement shall be
in substantially the same form as the current sample Indemnity and Guaranty
Agreement and, as applicable, the companion Consent of the Board of Directors,
available on the Commission's website. (3-23-22)
m. Written Approval. Obtain written approval
from the Industrial Commission. (3-23-22)
n. Idaho National Laboratory. An employer
meeting the requirements of Section
72-301A, Idaho Code, does not have
to comply with the requirements of Paragraphs 302.02.a., 02.f., 02.i., and
02.k., above. (3-23-22)
Disclaimer: These regulations may not be the most recent version. Idaho may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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