Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 67.00 - Workers' Compensation Self-insurance Groups
Section 67.11 - New Members; Cancellation of Members; Insolvency or Bankruptcy of Members; Changes in Premium

(1) An employer seeking to join a group after the group has been issued a certificate of authority shall submit an application for membership, pursuant to 211 CMR 67.06(2)(c) 1. to the board of trustees, or its administrator, if so authorized by the board under 211 CMR 67.07(2)(b), and, unless the employer is a public employer, enter into the indemnity agreement required by 211 CMR 67.06(2)(c)3.b. Membership shall take place no earlier than the board's or the administrator's approval of such employer for membership in the group. If the administrator is permitted to approve members, such membership shall terminate at the next meeting of the board of trustees, unless ratified by the board, and recorded in the minutes. The application for membership and its approval shall be maintained as permanent records of the board of trustees. The administrator shall notify the Office of Insurance of the Department of Industrial Accidents within five business days of the name and address of the new member of the group, including in its notification the member's policy number.

(2) Individual members of the group shall be subject to cancellation by the group pursuant to the by-laws of the group. In addition, individual members may elect to terminate their participation in the group in accordance with such by-laws. The group shall notify the Commissioner and the Office of Insurance of the Department of Industrial Accidents of the termination or cancellation of a member within ten days and shall maintain coverage of each canceled or terminated member for 30 days after receipt of such notice, with the canceled or terminated member responsible for the premium for such period, unless the group is notified sooner that the canceled or terminated member has procured workers' compensation insurance, has become a self-insurer, or has become a member of another group.

(3) The group shall pay all workers' compensation benefits for which each member incurs liability during its period of membership. A member of a group containing private employers, which elects to terminate its membership or is canceled by the group, shall remain jointly and severally liable for the workers' compensation obligations of the group and its members which were incurred during its period of membership.

(4) A group member is not relieved of its workers' compensation liabilities incurred during its period of membership except through payment by the group or the member of required workers' compensation benefits.

(5) For a group containing private employers, the dissolution, insolvency or bankruptcy of a member shall not relieve the group or any member of the group of liability for the payment of workers' compensation benefits incurred during the insolvent or bankrupt member's period of membership.

(6) Whenever, as the result of the addition of new members, including affiliates of existing members, the in-force premium of the group shall grow by more than ten percent, the board of trustees shall submit to the Commissioner a list of the new members or additional affiliates of existing members, along with payroll data, estimated annual premium, and an interim report of the total in-force premium of the entire group. To determine whether or not the in-force premium has increased by 10%, the group shall compare the revised in-force premium with the in-force premium on the first day of the fund year, and when a later report is filed in accordance with 211 CMR 67.08(3)(a), with such later report. Any new member shall meet the eligibility standards prescribed in 211 CMR 67.06. A group shall have a continuing obligation to meet the minimum financial standards prescribed in 211 CMR 67.08.

(7) The group shall adjust its excess insurance or reinsurance coverage and security deposit or bond and fidelity bond as a result of such 10% or greater change in premium or payroll in accordance with the provisions of 211 CMR 67.06(2)(b)9., 67.08(2)(d) and 67.21(3). The Commissioner may require the group to make other changes as he or she considers appropriate to ensure that the group is able to meet its workers' compensation obligations.