Administrative Rules of Montana
Department 24 - LABOR AND INDUSTRY
Chapter 24.29 - WORKERS' COMPENSATION AND OCCUPATIONAL DISEASE
Subchapter 24.29.6 - Plan 1 Self-Insurance
Rule 24.29.617 - INITIAL ELECTION-INDIVIDUAL EMPLOYERS
Universal Citation: MT Admin Rules 24.29.617
Current through Register Vol. 18, September 20, 2024
(1) An employer initially electing to be bound as a self-insurer shall provide the following:
(a) a completed application on forms provided
by the department;
(b) audited
financial statements for the last two years, or, an employer that does not have
audited financial statements prepared as a normal business practice may, with
the prior approval of the department and the concurrence of the guaranty fund,
substitute reviewed financial statements if the employer furnishes an increased
security deposit approved by the department with the concurrence of the
guaranty fund;
(c) proof that it
has been in business for a period of not less than three years; however, at the
discretion of the department, with the concurrence of the guaranty fund:
(i) a new employer created from the
reorganization of a self-insured employer may elect to self-insure even though
it has not been in existence for a period of three years. Such election must be
made on the effective date of creation of the new employer;
(ii) an employer in business less than three
years may be considered if its liability is guaranteed by a parent corporation
which has been in business for a period of not less than three years. The
department, with the concurrence of the guaranty fund, may accept a guarantee
from an employer in lieu of a parental guarantee;
(iii) an employer whose liability is
guaranteed by a parent corporation or an employer shall provide a resolution
and an agreement of assumption and guarantee of workers' compensation
liabilities on forms prescribed by the department and submit two years of
audited financial statements demonstrating the ability to pay compensation
benefits;
(d) evidence
that it has obtained an insurance policy of specific excess and if required,
aggregate excess insurance with policy limits, nature of coverage, and
retention amounts acceptable to the department, with the concurrence of the
guaranty fund, as required in ARM
24.29.616;
(e) a claims summary of claims incurred in
Montana from insurance companies who provided coverage for the preceding three
years;
(f) evidence that its
internal or contracted claims adjustment service is in compliance with ARM
24.29.804;
(g) evidence that it has a written safety and
loss control program;
(h) a
security deposit in an amount required by the department with the concurrence
of the guaranty fund;
(i) evidence
that internal policies and procedures are satisfactory to administer a
self-insurance program.
AUTH: 39-71-203, MCA; IMP: 39-71-403, 39-71-2101, 39-71-2102, 39-71-2103, MCA
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