Wash. Admin. Code § 296-15-125 - Default by a self-insurer
(1) What is a
default? A default occurs when a self-insured employer no longer provides
benefits to its injured workers in accordance with Title 51 of the Revised Code
of Washington, or is determined to otherwise fail to meet the requirements of a
self-insured employer under Title 51 RCW. A default can be a voluntary action
of the self-insured employer, an action brought on by the employer's inability
to pay the obligation, or an action brought on by the department.
(2) What happens when the department first
learns a self-insured employer has discontinued meeting its obligations under
Title 51 RCW? The department will send notice to the self-insurer that if it
does not send confirmation within 10 calendar days that it intends to continue
to meet its obligations under Title 51 RCW, the department will determine that
the self-insurer has defaulted. If the self-insurer does not respond to the
department and resume meeting its obligations under Title 51 RCW within 10
days, the self-insured employer is determined to have defaulted.
(3) What happens when the department
determines that the self-insured employer has defaulted? The following actions
occur when a default by a self-insured employer is determined:
(a) The department assumes jurisdiction of
the claims of the defaulting self-insurer and begins to provide benefits to
those injured workers.
(b) If the
self-insurer is a private entity, or a public entity or group that has provided
surety consistent with WAC
296-15-121, the department makes
demand upon the surety provided by that self-insurer for the full amount of the
surety. The proceeds of the surety are deposited with the department and accrue
interest, which will be used to supplement the surety in providing benefits to
those injured workers.
(4) What happens to a self-insured employer's
certification when it defaults? The employer surrenders its self-insurance
certification when it defaults. Any remaining employment in the state would
need industrial insurance coverage through the state fund effective with the
default by the employer.
Notes
Statutory Authority: RCW 51.04.020, 51.14.020, 51.32.190, 51.14.090, and 51.14.095. 06-07-141, § 296-15-125, filed 3/21/06, effective 5/1/06.
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