Current through Register Vol. XLI, No. 50, December 13, 2024
Section 85-18-5 - Application for Self Insurance5.1. An employer may apply for self-insured status by filing with the Commissioner an application for self-insured status in theform prescribed by the Commissioner. If an employer relies on the audited financial statements of its parent to be granted self-insured status, the relationship between the employer and the parent must be documented on the application, and the parent company must provide a parental guaranty in a form acceptable to the Commissioner. The required parental guaranty must be received and accepted by the Commissioner before the application for self-insured status can be processed.5.2. A disclosure of the employer's management and financial structures and the employer's audited financial statements for each of the three (3) fiscal years preceding the date of application must be attached to the application. If a parent business is to insure the employer's self-insured workers' compensation risk, the parent's disclosure of management and financial structures, and its audited financial statements for the three (3) years preceding the date of application must also be attached to the application. The employer shall disclose to the Commissioner all of the business entities acquired, bought, transferred or merged by or into the employer applicant. Failure to disclose this information at the time the application is filed without good cause, as determined in the sole discretion of the Commissioner, may result in rejection of the application a. The employer's application, the requiredaudited financial statements and other information must be signed and sworn to by: 1. Either the president alone or vice-president and secretary or assistant secretary if the employer making application is a corporation or limited corporation;2. All of the partners if the employer making application is a partnership;3. If the employer making application is a limited liability company ("LLC"), then by all of the general members;4. The owner if the employer making application is a sole proprietorship; or5. The appropriate officer(s), partner(s), member(s) or owner(s) of the parent shall also sign and swear to the application and information included therewith, as described in this subdivision, if the employer making application is relying on the financial statements of the employer's parent in making the application. b. If the employeris a government agency, the criteria used to determine financial stability and guaranties may be modified to accommodate for governmental accounting and other issues related to a going concern. Any modifications allowed in these cases will take into consideration the risk to the self-insured employer community.5.3. The employer making application may provide the Commissioner with any additional information deemed relevant to its financial stability. After reviewing the application and information included therewith, the Commissioner may request additional information from the employer or parent. The applicant must provide the information within the requested time frame in order for the application to be processed.5.4. The employer applying for self-insured status shall pay to the Commissioner a non-refundable application processing fee at the time each application is filed. The minimum application fee is $2,500.00. If it is determined that the cost of processing the application will exceed $2,500.00, the application fee may be modified by the Commissioner. If the original application cannot be processed or is considered to be invalid, future applications made by the same employer are subject to additional filing fees.5.5. An employer who insures its West Virginia workers' compensation risks through coverage from a private carrier may apply at anytime to self-insure its workers' compensation risk. If the application is approved by the Commissioner and Industrial Council, the self-insured status will be effective on the first day of the calendar quarter following the month in which the application was approved. An employer new to the state of West Virginia, who has never had any West Virginia workers' compensation obligations, may apply for self-insured status in anticipation of engaging in employment operations in West Virginia which will subject the employer to such obligations: Provided, That until the employer's application is granted, the new employer shall be required to secure its West Virginia workers' compensation obligations through a private carrier. a. The Commissioner will evaluate the application and assess whether the employer qualifies for self insured status. The Commissioner will make a recommendation to the Industrial Council within ninety (90) days of receiving the completed application and any additional requested information. The Industrial Council, at its next regularly scheduled meeting, will render a decision approving or disapproving the application.b. Each approved applicant for self-insured status is required to secure its West Virginia self-insured workers' compensation liability in accordance with the provisions of 85 CSR 19, "Risk Pools," and this rule.5.6. Employers applying for self-insured status must continue to make timely premium payments to their West Virginia private carrier, if applicable, until self-insured status is approved by the Industrial Council and the status is effective.