Section 67.05 - Certification to Act as a Self-insurance Group(1) No person, association, or entity shall act as a workers' compensation self-insurance group unless it has been approved by the Commissioner.(2) The Commissioner may decline to approve an application for a certificate of approval if the group is unable to demonstrate that it is able to meet all obligations and requirements of M.G.L. c. 152 and 211 CMR 67.00.(3) On finding that the proposed group has met all requirements of the law and of 211 CMR 67.00, the Commissioner shall issue the group a certificate of approval. Should the Commissioner find that the proposed group does not meet such requirements, he or she shall issue an order denying the group a certificate, setting forth the reasons for the denial. The certificate of approval shall not become effective until the group notifies the Office of Insurance of the Department of Industrial Accidents of the names and addresses of the members of the group, their policy numbers, and the effective date of such coverage. A group shall notify the Commissioner if the group fails to commence operations within 60 days of approval. Such notification shall be in writing and shall state the reasons therefor. A group shall forfeit its certificate of approval if it fails to commence operations, as constituted in the form approved by the Commissioner, within 90 days of its approval.(4) In addition to the filing requirements described in 211 CMR 67.06, the following factors, where applicable, shall be considered in determining whether or not the group will be able to meet its obligations: (a) ratio of net worth to annual self-insured retention;(b) ratio of current assets to current liabilities;(c) ratio of debt to net worth;(d) history of profitability of the members;(e) organizational structure, risk management programs and loss control programs, including services contracted for by the board of trustees or administrator;(f) background, experience and financial condition of the administrator;(g) composition of the board of trustees;(h) claims history of the members;(i) source and reliability of financial information;(j) ratio of net worth to annual premium contribution;(k) number of employees and payroll data by workers' compensation class code;(l) ability to meet the financial requirements prescribed in 211 CMR 67.08;(m) excess insurance coverages and proposed excess insurer;(n) relationship of self-insured retention and claims history to excess insurance coverages;(o) amount of the group's security bond or deposit;(p) guarantee by parent company;(q) SEC Form 10K or 10Q, where applicable;(r) reasonableness of administrative and other expenses;(s) any other factors which may affect the ability of a group to meet its workers' compensation obligations.Amended by Mass Register Issue 1320, eff. 8/26/2016.