N.D. Admin Code 92-01-02-23.2 - Employers to provide security instrument
The organization may require an employer to provide a bond, letter of credit, cash deposit, or other security instrument approved by the organization to guarantee payment of workers' compensation premium. The required security instrument is in addition to any other required installment payment obligations.
1. A security
instrument or cash deposit may be required if:
a. The employer does not have a permanent
place of business in this state;
b.
The employer is not a resident of this state;
c. The employer does not have a payment
history or previously underwritten account with the organization; or
d. The employer has a previous delinquency
with the organization.
2.
The security required by an employer may be the amount of premium calculated
for the applicable premium year. The security amount may be adjusted by the
organization based on changes in premium and anticipated payroll. The
organization may consider all aspects of an employer's account, including
premium, rate classifications, and premium and assessment delinquencies to
determine the security required.
3.
Failure to provide a security instrument as required by the organization
results in the employer being deemed uninsured and in default.
4. The organization may permit withdrawal of
the security if the employer has made all premium and assessment payments
timely for two policy periods and complied with all requirements of the
organization.
5. Once an employer
account is in a closed status, and any balance due on the account is paid, the
security instrument will be released.
Notes
General Authority: NDCC 65-02-08, 65-04-22
Law Implemented: NDCC 65-04-22
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