N.Y. Comp. Codes R. & Regs. tit. 12 § 317.9

Current through Register Vol. 46, No. 51, December 18, 2024

Section 317.9 - Terms and procedures applicable to under-funded group self-insurers

(a) Group self-insurers are required to maintain at all times sufficient trust assets within the trust fund to exceed claims and all other liabilities.

(b) Group self-insurers whose assets do not exceed liabilities are deemed to be under-funded and may be subject at any time to any or all of the following provisions, at the discretion of the chair:

(1) the chair may call for meeting with the group's board of trustees and/or group administrator to discuss the financial condition of the trust fund and to determine the appropriate course of action to restore the trust fund's financial stability in a timely manner;

(2) the chair may require an examination of the group self-insurer pursuant to section 317.4(a)(7)(iv) of this Part;

(3) the chair may require the submission of additional financial and/or actuarial documentation from the group self-insurer including, but not limited to, a report such as that described in section 317.7(b) of this Part;

(4) the chair may require a written plan from the group's board of trustees and/or group administrator in order to restore the trust fund's financial stability. Such written plan must be in a form and content acceptable to the chair including, but not limited to, a projected plan for member contributions for the next five years or such additional period of time as the chair may require;

(5) the chair may suspend the addition of any new members into the group and/or suspend the payment of any earnings on deposits or investments or assessments or any portion thereof until the group self-insurer is deemed to be adequately funded; or

(6) the chair may require additional security deposits to be held in accordance with section 317.5 of this Part;

(7) the group self-insurer may be required to immediately levy an assessment upon the group members or take such other action as may be appropriate in order to make up the deficiency.

(c) If the chair determines that the financial stability of the under-funded trust fund cannot be restored in a timely and appropriate manner; the chair may revoke the group's self-insurance status.

(d) The provisions of this Subpart shall not apply to groups consisting exclusively of municipal corporations.

N.Y. Comp. Codes R. & Regs. Tit. 12 § 317.9