Washington Administrative Code
Title 296 - Labor and Industries, Department of
Chapter 296-15 - Workers' compensation self-insurance rules and regulations
Section 296-15-181 - Funding the benefits of an insolvent self-insurer

(1) What happens when a self-insurer defaults on (stops paying) workers' compensation benefits and assessments? When a self-insurer stops paying workers' compensation benefits or assessments, and the default is not due to a claims administration decision, the department will take over its surety and claims.

(2) If a defaulting self-insurer has multiple types of surety, who determines the order in which surety will be used? The department has the sole authority to determine the order in which surety types will be used.

(3) What happens if the defaulting self-insurer's surety is exhausted? When surety is exhausted, the insolvency trust (all self-insurers except school districts, cities and counties) will be assessed quarterly to cover the claim costs paid on behalf of the defaulted self-insurer.

(4) Who is on the insolvency trust board? The insolvency trust board consists of the director or designee, three representatives of self-insured employers and one representative of workers. Representatives are nominated by the self-insured and labor communities and are appointed by the director for overlapping two year terms.

(5) What does the insolvency trust board do? The board advises the department on insolvency trust matters. The department makes all final decisions.

(6) What annual report is provided on the insolvency trust fund? The department provides an annual written status report on the insolvency trust fund as of the end of the previous calendar year to the workers' compensation advisory committee. The report is presented at the committee's first quarterly meeting no later than March 31.