Section 260-RICR-50-05-1.9 - BONDS AND/OR SECURITIES1.9.1Bond and Security StandardsA. A surety bond posted as security by a certified employer to secure self insured workers' compensation liabilities with the director shall be on a bond form approved by the director. Any extension agreements, increase riders, decrease riders, name change riders, or release of surety shall also be on forms approved by the director.B. Any new surety bond provided as security for a certified employer's workers' compensation self insurance liabilities to the director, or any extension rider, increase rider, decrease rider, or name change rider on an existing or new surety bond provided as such security, shall pay up to the full amount of the penal sum for the payment of workers compensation liabilities of the certified employer without deducting any of the surety's costs for legal, administrative, or claims handling expenses related to the certified employer's workers' compensation claims. Such costs or expenses shall be in addition to the compensation benefits and services paid from the penal sum of the bond as set forth in this section.C. Each cancelled surety bond remains responsible to pay the unpaid workers' compensation liabilities of the certified employer for claims with dates of injury that occurred during the period of coverage of the surety bond up to the cancellation date. Cancellation eliminates liability accruing after the date of cancellation, but the bond remains in full force and effect to cover liability accrued from and including the date of issuance of the bond up to the date of cancellation.D. Any bond may be released of its liability only if it is replaced by another acceptable security in the full amount that may be required by the director at that time and the director executes a signed, written release document for the surety bond which will accompany the original bond that will be returned to the surety company.1.9.2Call Order of Security PostedA. If a certified employer has more than one type of security posted with the director to secure different periods of the employer's self insured workers' compensation liabilities, the security in effect on the date of injury is liable for claims related to the injury.B. Should there be more than one security posted for the same period of the employer's self insured workers' compensation liabilities, each security posted is jointly and severally liable for the entire liability for claims related to the injury. The director may in his or her discretion require payment from the security posted.260 R.I. Code R. 260-RICR-50-05-1.9
Amended effective 11/28/2018