Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 67.00 - Workers' Compensation Self-insurance Groups
Section 67.14 - Deficiencies; Assessments; Liquidation of Groups

Universal Citation: 211 MA Code of Regs 211.67

Current through Register 1531, September 27, 2024

(1) Every group's application and indemnity agreement shall contain provisions providing for the following:

(a) in the event that a group incurs a fund deficit in any fund year, such deficit shall be made up immediately with surplus from a prior fund year or administrative funds, or the members of the group shall be subject to automatic assessment without further action by the group;

(b) in the event a member fails to pay any premium, assessment, or other contribution to the group when due, the members of the group shall be subject to automatic assessment without further action by the group.

(2) If the group fails to assess its members within 30 days of the time it has knowledge of the deficiency, the Commissioner shall order it to do so. The group shall be presumed to have knowledge of the deficiency on the date it is due to file its certified opinion on loss reserves.

(3) If the group fails to make the required assessment of its members within 30 days after the Commissioner orders it to do so, or if the deficiency is not fully made up within 60 days after the date on which such assessment is made, then, after such longer period of time as may be specified by the Commissioner, the group shall be deemed to be insolvent.

(4) The Commissioner shall proceed against an insolvent group in the same manner as the Commissioner would proceed against an insolvent domestic insurer pursuant to M.G.L. c. 175, § 6. The Commissioner shall have the same powers and limitations in such proceedings as are provided under M.G.L. c. 175, § 6, except as otherwise provided under M.G.L. c. 152.

(5) In the event of the liquidation of a group, the Commissioner shall levy an assessment on its members for such an amount as he or she determines to be necessary to discharge all liabilities of the group, including the reasonable cost of liquidation.

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