Current through Register Vol. 46, No. 12, March 20, 2024
(a) Group
self-insurers are required to maintain at all times sufficient trust assets
within the trust fund to exceed claims and all other liabilities.
(b) Group self-insurers whose assets do not
exceed liabilities are deemed to be under-funded and may be subject at any time
to any or all of the following provisions, at the discretion of the chair:
(1) the chair may call for meeting with the
group's board of trustees and/or group administrator to discuss the financial
condition of the trust fund and to determine the appropriate course of action
to restore the trust fund's financial stability in a timely manner;
(2) the chair may require an examination of
the group self-insurer pursuant to section
317.4(a)(7)(iv)
of this Part;
(3) the chair may
require the submission of additional financial and/or actuarial documentation
from the group self-insurer including, but not limited to, a report such as
that described in section
317.7(b)
of this Part;
(4) the chair may
require a written plan from the group's board of trustees and/or group
administrator in order to restore the trust fund's financial stability. Such
written plan must be in a form and content acceptable to the chair including,
but not limited to, a projected plan for member contributions for the next five
years or such additional period of time as the chair may require;
(5) the chair may suspend the addition of any
new members into the group and/or suspend the payment of any earnings on
deposits or investments or assessments or any portion thereof until the group
self-insurer is deemed to be adequately funded; or
(6) the chair may require additional security
deposits to be held in accordance with section
317.5 of this
Part;
(7) the group self-insurer
may be required to immediately levy an assessment upon the group members or
take such other action as may be appropriate in order to make up the
deficiency.
(c) If the
chair determines that the financial stability of the under-funded trust fund
cannot be restored in a timely and appropriate manner; the chair may revoke the
group's self-insurance status.
(d)
The provisions of this Subpart shall not apply to groups consisting exclusively
of municipal corporations.
