Rule 24.29.616 - EXCESS INSURANCE-WHEN REQUIRED(1) Specific excess insurance is required of an employer or an employer group electing coverage under plan No. 1.(2) Aggregate excess insurance is required by the department, with the concurrence of the guaranty fund, for an employer or an employer group unless substantive evidence is provided that it is not warranted. This evidence must include diversification of risk, industry type, financial resources, self-insured retention levels, policy limits of the specific excess policy, safety program, loss experience and other appropriate factors as determined relevant by the department, with the concurrence of the guaranty fund.(3) The contract or policy of specific excess insurance and aggregate excess insurance must comply with the following: (a) It is issued by a carrier admitted and licensed in Montana with a Best's Rating of A- or better and a financial size rating of VI or greater. Excess coverage issued by a carrier not rated by Best's will be considered for approval at the discretion of the department, with the concurrence of the guaranty fund.(b) A self-insurer that anticipates that it may have material changes to the provisions or coverage of its excess insurance policy must notify the department of that possibility at least 30 days before the effective date of the changes. (i) If there is a change in the provisions or coverage, the department has the authority to evaluate the changes related to the terms of the authorization to self-insure, and the department may, with the concurrence of the guaranty fund, make adjustments in the terms of that authorization accordingly.(ii) In the event of a temporary extension of authority, the department may condition the renewal of self-insurance authority upon a suitable change in the amount of security required from the self-insurer.(c) All excess policies must include department-approved endorsements for cancellation, commutation (if allowed), insolvency, and late claim reporting.(d) It must include an endorsement regarding late claim reporting penalty waiver.(e) All of the following will be applied toward the retention level in the excess insurance contract: (i) payments made by the self-insurer; (ii) payments made on behalf of the self-insurer from the proceeds of any security deposit as ordered by the department; and(iii) payments made on behalf of the insolvent self-insurer by the guaranty fund.(f) Copies of the certificates and policies of the excess insurance must be filed with the department for a determination that such certificates and policies fully comply with the provisions of the Workers' Compensation Act, the Occupational Disease Act, and ARM Title 24, chapter 29, subchapter 6.Mont. Admin. r. 24.29.616
NEW, 1996 MAR p. 1151, Eff. 5/1/96; AMD, 2012 MAR p. 1666, Eff. 8/24/12; AMD, 2018 MAR p. 2527, Eff.1/1/2019; AMD, 2024 MAR p. 1066, Eff. 5/11/2024AUTH: 39-71-203, MCA; IMP: 39-71-403, 39-71-2101, 39-71-2103, MCA