Current through Register Vol. 48, No. 3, March 22, 2024
A. File a Form 8, Proof of Compliance, Surety
Bond, with the Self-Insurance Division within the time provided in
R.67-1502B.
The amount of the bond is determined by the Commission based on an analysis of
the total self-insurance program including but not limited to an analysis of
the applicant's excess insurance, loss history, and financial
condition.
B. The minimum bond
amount is two hundred and fifty thousand dollars.
C. The following provisions shall apply to a
bond.
(1) The bonding company must be
licensed by the South Carolina Department of Insurance.
(2) The bond shall be deemed continuous
beginning with the date of contingent approval of the self-insurance program
and continuing until sixty days after a written notice of cancellation is
reviewed by the Self-Insurance Division.
(3) When the Self-Insurance Division receives
a bond cancellation notice, the self-insured is notified to replace the bond
before the expiration of the original bond. The Commission shall institute
revocation proceedings upon the failure to renew or replace the bond as
described in R.67-1513.
D. When a self-insurer loses or withdraws its
privilege of self-insurance, the bond remains with the Commission to guarantee
payment of any claims occurring during the self-insured period.
(1) The Commission may release the bond, or
any part thereof, when the Commission determines that all contingent liability
arising during the period of self-insurance has expired.
(2) The employer or fund may request the
release of a bond, or any part thereof, by writing to the Self-Insurance
Division. The Self-Insurance Division shall notify the employer or fund of its
administrative determination. If the employer or fund disagrees with the
administrative determination, the employer or fund may request a hearing by
filing a motion for a hearing according to R.67-215. The parties shall
proceed according to Article 6.
